Title: AI's role in sensitive purchases: reducing embarrassment but compromising customer loyalty

Authors: Alexandra Theben; Claudia Rebeca Carballo Salazar; Julia von Schuckmann; Alberto Carrio Sampedro

Addresses: UPF Barcelona School of Management, Carrer Balmes 132-134, 08008 Barcelona, Spain ' TUM School of Management, Technical University of Munich, Arcisstr. 21, 80333 Munich, Germany ' UPF Barcelona School of Management, Carrer Balmes 132-134, 08008 Barcelona, Spain ' UPF Barcelona School of Management, Carrer Balmes 132-134, 08008 Barcelona, Spain

Abstract: This study examines the dual impact of AI service providers in sensitive retail contexts, focusing on consumer embarrassment and customer loyalty. In a scenario-based experiment (N = 216), we compare AI and human service interactions to assess effects on store return intentions, perceived privacy control, and service satisfaction, with embarrassment as a mediating factor. Results show that AI interactions reduce embarrassment but simultaneously lower return intentions and satisfaction. Consumers perceiving higher data-sharing risks are less likely to return, while those more knowledgeable about AI report greater satisfaction and loyalty. These findings highlight both the emotional benefits and strategic challenges of integrating AI into retail service encounters.

Keywords: artificial intelligence; consumer behaviour; customer loyalty; sensitive purchases.

DOI: 10.1504/IJTMKT.2026.155246

International Journal of Technology Marketing, 2026 Vol.20 No.3, pp.305 - 321

Received: 15 May 2025
Accepted: 08 Dec 2025
Published online: 29 Jul 2026 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article