Article navigation
Purpose

Prior research shows that AI involvement in physical luxury design often triggers negative consumer responses, but whether this effect extends to virtual luxury remains unclear. Given the rapid growth of virtual luxury and its potential to reshape authenticity and value cues, this study examines consumer responses to AI-designed virtual luxury products.

Design/methodology/approach

Across four primary studies and one follow-up study, we compare consumer responses to virtual luxury products designed by AI with those designed by traditional human designers.

Findings

Unlike in physical luxury, consumers evaluate AI-designed and human-designed products similarly, with no significant differences in brand attitudes or purchase likelihood. A double-edged-sword mechanism underlies this pattern, as AI design increases perceived brand innovativeness but decreases perceived brand authenticity, and these opposing effects offset each other. Luxury purchase frequency further moderates the effect: compared with human design, AI design enhances brand attitudes and purchase likelihood among frequent luxury consumers, but diminishes these outcomes among infrequent consumers, who place differential emphasis on innovativeness versus authenticity.

Originality/value

This study extends AI-in-luxury research to the context of virtual luxury, develops a dual-path framework based on perceived brand innovativeness and perceived brand authenticity, and identifies luxury purchase frequency as an important boundary condition. It also provides insight into communication strategies for AI-designed virtual luxury products.

Licensed re-use rights only
You do not currently have access to this content.
Don't already have an account? Register

Purchased this content as a guest? Enter your email address to restore access.

Pay-Per-View Access
$39.00
Rental

or Create an Account

Close Modal
Close Modal