Price and loyalty remain crucial to consumers, even when taking AI recommendations
Per latest research from PSE Consulting, 32% of shoppers said the price was the biggest driver when deciding between product or brand recommendations made by AI.
• less than 3 min read
AI may be instrumental in helping customers research before they make a purchase, but the final decisive factor is still a good, old-fashioned deal.
Per the latest research from PSE Consulting on how AI is reshaping e-comm behavior across the US, UK, France, and Germany, 32% of shoppers said price was the biggest driver when deciding between product or brand recommendations made by AI.
The study, which included responses from more than 4,250 consumers, also found that just 14% blindly took an AI assistant’s top recommendation.
In fact, 89% said knowing the retailer was important, while 92% said they checked reviews before making a purchase decision.
Among all the countries, the UK emerged at the top of those that were most brand and loyalty driven.
“AI is enhancing consumer decision-making, not replacing it,” Chris Jones, managing director at PSE Consulting, said in a statement. “Consumers are happy to delegate discovery and shortlisting to an AI assistant. But trust remains critical when it comes to the final purchase. If the brand is not recognised and there are no reviews to validate it, the AI recommendation does not close the sale.”
Brand recognition and loyalty have been key in a market where consumers remain cautious. In fact, a recent report by LoyaltyLion found that 91% of shoppers felt that being part of a loyalty program drove them to make repeat purchases from e-commerce brands.
Meanwhile, in a study by Ibotta, 64% of consumers believed that price was ultimately more important than the brand itself.
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About the author
Jeena Sharma
Jeena covers the business of luxury and fashion, reporting on the brands and strategies shaping the global retail landscape.
Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
By subscribing, you accept our Terms & Privacy Policy.