ChatGPT in Consumer Decision-Making

Generative AI (GenAI) applications like ChatGPT, Bing, Bard, and perplexity.ai are experiencing a surge in popularity. Since OpenAI's introduction of ChatGPT in 2022, GenAI has rapidly diffused, leading experts to anticipate profound shifts in human behavior, particularly in consumer actions. It is expected that GenAI is becoming an integral part of the customer journey, with a significant portion of consumers, including 59% of Germans and 80% of Americans, open to using it for shopping.

The broad usability and user-friendly nature of GenAI contribute to its appeal, with initial empirical findings showing efficiency gains. However, GenAI applications are transforming the way we search for and process information. Effectively collaborating with GenAI necessitates new skills, such as prompting and fact-checking, to navigate its outputs, which often convey professionalism and authenticity but lack transparency in sourcing and interpretation, sometimes resulting in hallucinated results.

This study seeks to investigate the influence of GenAI applications on consumers' information search and retrieval processes in purchase decision-making. Employing a multi-method approach, we aim to compare participants' behaviors in information search and retrieval using Google, the dominant web search engine, and ChatGPT, the leading GenAI application. We will measure decision-making efficiency (speed) and effectiveness (optimal choice) through an experimental study. Additionally, we will conduct a qualitative, phenomenological study to delve into customers' perceptions of how their information search and retrieval behaviors have evolved due to the availability of GenAI applications. Through this research, we aim to gain deeper insights into consumers' motivations for using GenAI in purchase decisions and illuminate the factors driving efficiency and effectiveness when engaging with GenAI in decision-making processes.

Key facts:

• GenAI applications like ChatGPT are increasingly shaping consumer decision-making, with a significant portion of consumers open to using them for shopping.
• Despite their broad usability, GenAI applications lack transparency in sourcing and may provide wrong information, potentially affecting decision-making outcomes.
• This study employs a multi-method approach to investigate how GenAI influences consumers' information search and retrieval processes in purchase decision-making, aiming to uncover motivations and factors driving efficiency and effectiveness in decisions with GenAI