Exploring the Influence of personalization, Anthropomorphism, User experience, and Well-being on shopping behavior in AI-/IoT-based Autonomous vehicles and Smart home marketplaces On average, people spend at least one hour in urban areas experiencing heavy traffic congestion and often even more time in their cars. Smart autonomous vehicles (AVs) promise to offer individuals greater freedom and security in the future. Prof. Dr. Lars Meyer-Waarden, a Marketing Professor at the Toulouse School of Management, presented his research on “Exploring the Influence of personalization, Anthropomorphism, User experience, and Well-being on shopping behavior in AI-/IoT-based Autonomous vehicles and Smart home marketplaces” at the Sasin research seminar. Based on a systematic literature review in management science spanning 1987 to 2023 on AI, intelligent systems, and smart technologies, Prof. Meyer-Waarden identified several priorities in AI research:

1. The impact of user experience and technology acceptance factors on consumer behavior and well-being
2. AI-based services and service recovery
3. Big data analytics and product/service personalization
4. New AI based business models and market places
5. Ethical issues (e.g., anthropomorphism, privacy concerns, and loss of technology control)

Despite the importance of smart technologies as managerial and societal priorities, many consumers remain hesitant to adopt AI-based solutions (Laukkanen, 2016; Talke & Heidenreich, 2014). Research highlights that 89% of users fear losing control and autonomy when delegating decision-making to AI (Forrester, 2019). Additionally, 89% express concerns about data security and privacy, though 35% are willing to trade their data for a 10% discount on their insurance premiums (Forrester, 2019). For example, Mercedes has been selling self-driving Level 3 AVs in Europe since 2022, while fully autonomous Level 5 AVs—without steering wheels or brakes—are expected in Europe starting in 2030 (European Council, 2023). Prof. Meyer-Waarden’s research team and PhD students conducted a qualitative exploratory study on AI-/IoT-based smart devices. Using AI-based topic modeling methods, they examined consumers’ perceptions of semi- and fully autonomous devices (e.g., AVs and smart homes). Combined with a bibliometric analysis, the study identified key factors influencing adoption: performance, ease of use (assistance), security, psychological and physical well-being, dependence, privacy concerns, loss of control, and technology risks. Prof. Meyer-Waarden stated: “Based on this initial analysis, we identified relevant concepts to develop a research model grounded in the perceived value framework. When perceived risks are lower than benefits, adoption of the technology increases.” Subsequent quantitative studies included:

• Online scenario-based experiments in Germany (N=301)
• Longitudinal, intra-subject studies involving real user experiences in semi-autonomous Level 2 vehicles (Mercedes-Benz EQC) under real urban and highway traffic conditions in Stuttgart, Germany
• Virtual reality simulations of fully autonomous Level 5 vehicles in the Smart Mobility Lab at DHBW Stuttgart.

The study, conducted with 138 participants over four months, explored driver acceptance factors before and after exposure to semi- and fully autonomous scenarios. Additionally, EEG and Galvanic Skin Response (GSR) measurements provided insights into participants’ emotional states and psychological well-being. The study also assessed whether personalization benefits could mitigate privacy concerns, consistent with the privacy calculus theory. The research demonstrated how user experience (UX) can reduce perceived risks and enhance well-being in various semi- and fully autonomous scenarios. Results showed that semi-autonomous situations increased driver well-being, perceived technology performance, and ease of use while decreasing technology and privacy risks. Conversely, higher levels of full automation were associated with increased driver anxiety, heightened perceived risks, and reduced well-being. However, repeated exposure to autonomous technologies helped diminish privacy concerns over time. Additionally, increased Frontal Alpha Asymmetry (FAA) values observed during semi-autonomous Level 2 and fully autonomous Level 5 simulations indicated a more positive emotional state as UX increased. Anthropomorphism further enhanced human-like connections, fostering trust in the technology. Finally, product and service personalization in AV smart technology marketplaces reduced privacy concerns, consistent with the privacy calculus theory (Awad & Krishnan, 2006). In conclusion, users’ well-being and intention to adopt AVs improved after using semi-autonomous Level 2 vehicles but declined after experiencing fully autonomous Level 5 vehicles. The research highlights the following key findings:

1. Emotional State Indicators: Increasing Frontal Alpha Asymmetry (FAA) values observed during simulations suggested a more positive emotional state as user experience (UX) progressed, indicating a reduction in stress over time.
2. Performance- and Effort Expectancy: Expectancy improved before and after Level 3 automation but dropped at Level 5. Greater experience with AVs reduced uncertainties about performance- and effort expectancy.
3. Privacy Concerns: Privacy concerns declined after Level 2 driving but rose after Level 5 driving, negatively impacting trust and behavioral intention to use AVs.
4. Trust and Well-being: Technology trust, defined as perceptions of reliability and helpfulness, positively influenced well-being and intention to use AVs. Trust increased after Level 2 driving but decreased after Level 5 UX.
5. Intention to Use AVs: Intention to use AVs increased after Level 2 but declined after Level 5 UX due to perceived complexity and perceived loss of control to AI. This also affected negatively well-being.
6. Well-being: Well-being improved after Level 2 but decreased after Level 5 UX. It was found to positively affect behavioral intention to use AVs up to Level 2 but not beyond Level 5.
7. User Experience and Technology Fear Reduction: GSR (Galvanic Skin Response) signals showed that with increased UX of the vehicle, technology fear decreased. The trend correlates with FAA values, which suggested improved emotional states as UX increased.
8. Anthropomorphism fosters human-like connections and thus trust.

In summary, the research emphasizes that semi-autonomous vehicles should be promoted as user-friendly and non-threatening, creating psychological and physical security and thereby enhancing user well-being (e.g., joy and happiness). Joy and happiness were identified as key factors in shaping perceptions of AVs. When users perceive autonomous cars as non-intimidating, their willingness to adopt the technology increases. Product and service personalization effectively reduce privacy concerns, consistent with the privacy calculus theory. AV simulators are recommended as tools to familiarize customers with the technology, helping to overcome fear and improve user experience. From a methodological perspective, future research on AI-based technologies should go beyond picture or video-based scenarios that lack realism and instead utilize more realistic simulators to capture authentic user experiences. As smart technologies continue to shape the future of marketplaces, users prioritize ease of use, privacy and technology security, and trust as key factors for adoption. Personalization reduces privacy concerns and builds trust, with well-being proving to be five times more critical for fostering trust and promoting smart technology usage. Dr. Meyer-Waarden highlighted that communication strategies for autonomous vehicles should emphasize security, as customers value minimizing losses over potential technological benefits, in line with the framing theory (Kahneman & Tversky, 1986). Enhanced user experience (UX) reduces reluctance to adopt smart technologies, while anthropomorphism fosters human-like connections, thereby building trust. Personalization and well-being mitigate data disclosure concerns, addressing the privacy-personalization paradox. Ultimately, emphasizing safety benefits over hedonic ones is essential, as users expect higher safety standards from smart technologies than from human interactions. Looking ahead, Prof. Dr. Meyer-Waarden and his colleagues from DHBW Stuttgart, along with his PhD students, will conduct further field experiments on smart driving using AV simulators at DHBW Stuttgart and smart living within a smart living lab at the University of Heilbronn. This research aims to explore how personalization influences user experiences, reduces security concerns, and enhances well-being and technology adoption. Additionally, the research will delve deeper into the moral and ethical issues surrounding AI-based smart technologies, including topics such as moral decision-making, user protection, data privacy, and CO2 reduction, aligning with the UN’s sustainability goals. Other recent research projects focus on the perceptions and adoption of the brain implemented chips of Elon Musk’s Neuralink, AI-based smart homes, AV, AI-based service home and restaurant robots, the use of ChatGPT as a shopping assistant to enhance personalization and reduce users’ information overload, the impact of big data on firm performance, transformative marketing. Some of the papers (including the research presented at the Sasin Research Seminar) are currently under revision in top academic journals, but working papers can be requested. For more information about this research project called “Citizen Trust in AI (CITAI)” look at this LinkedIn post, Google scholar and Prof. Dr. Meyer-Waarden’s website. Feel free to contact Prof. Dr. Meyer-Waarden at lars.meyer-waarden@tsm-education.fr to request all articles on the topic.