The Effect of Voice AI on Consumer Purchase and Search Behavior

40 Pages Posted: 5 Nov 2019 Last revised: 29 Mar 2021

See all articles by Chenshuo Sun

Chenshuo Sun

New York University (NYU) - Leonard N. Stern School of Business

Zijun (June) Shi

Hong Kong University of Science & Technology (HKUST)

Xiao Liu

New York University (NYU) - Leonard N. Stern School of Business

Anindya Ghose

New York University (NYU) - Leonard N. Stern School of Business

Xueying Li

affiliation not provided to SSRN

Feiyu Xiong

affiliation not provided to SSRN

Date Written: October 25, 2019

Abstract

Voice-activated shopping devices (voice AI), such as Amazon’s Alexa or Alibaba’s Tmall Genie, as a new channel for shopping, are gaining popularity worldwide. It has become important to understand how voice AI adoption affects consumer shopping behaviors. We use large-scale archival data containing consumer-level browsing and purchase records from one of the world’s largest online retailers, Alibaba, to empirically investigate this problem. We show that consumers on average spend 19.5% more money and browse 13.6% more pages as a result of adopting voice AI, corresponding to approximately US$ 493 million increase in annual sales revenue. The effect on purchase is stronger for younger consumers and male, and the effect on browsing is more salient for female. Although the positive effects could shrink over time, they still remain significant after eight weeks. Moreover, the voice channel does not cannibalize other purchase channels (PC and mobile); rather, it has a positive spillover effect on PC. Lastly, the impact of voice AI adoption on purchase is stronger for products that do not require active search or comparison, such as product categories with low substitutability or high purchase frequency. Our results demonstrate that the adoption of voice AI has enhanced the growth of e-commerce. The findings provide useful implications for both e-commerce companies and businesses that harness voice-assisted shopping.

Keywords: Voice assistant, voice shopping, e-commerce, causal impact, heterogeneity, channels

Suggested Citation

Sun, Chenshuo and Shi, Zijun (June) and Liu, Xiao and Ghose, Anindya and Li, Xueying and Xiong, Feiyu, The Effect of Voice AI on Consumer Purchase and Search Behavior (October 25, 2019). NYU Stern School of Business, Available at SSRN: https://ssrn.com/abstract=3480877 or http://dx.doi.org/10.2139/ssrn.3480877

Chenshuo Sun (Contact Author)

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 W 4th Street
Suite 9-160
New York, NY 10012
United States

Zijun (June) Shi

Hong Kong University of Science & Technology (HKUST) ( email )

Clearwater Bay
Kowloon, 999999
Hong Kong

Xiao Liu

New York University (NYU) - Leonard N. Stern School of Business ( email )

Suite 9-160
New York, NY
United States

Anindya Ghose

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

Xueying Li

affiliation not provided to SSRN

Feiyu Xiong

affiliation not provided to SSRN

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1,328
Abstract Views
4,427
rank
18,515
PlumX Metrics