The paradox of technology: Negativity bias in consumer adoption of innovative technologies

Abstract

Abstract Innovative technologies often feature inherently conflicting properties. This poses a challenge for marketers because negative properties not only weigh heavily on consumers' technology adoption decisions but potentially do more so than positive ones. To shed light on the paradox of technology and its underlying processes, the present research develops a conceptual model drawing on technology adoption and valence perception theories about the prevalence of negativity bias in consumers' technology adoption decisions with its unique effect through the serial chain of consumers' perceptions of risk and trust regarding the technology. Results of three studies ( N = 1309) demonstrate that the effect of negative valence consistently outperforms that of positive valence in consumers' technology adoption intentions (Studies 1–2) and decisions (Study 3). Furthermore, results show that the disproportionate effect of negative (vs. positive) valence can be explained by the proposed serial causal chain through consumers' perception of risk of the technology and trust in the technology (Studies 2–3) while ruling out company trust and consumer knowledge as alternative drivers of the effects (Study 3). These findings contribute to the pertinent literature on consumer psychology in decisions to adopt novel technologies in that they quantify and explain the potential outcome stemming from the ambiguous properties of novel technology. Moreover, this study finds negativity bias to be an often overlooked consumer bias with implications for marketing practice and useful for understanding and lowering resistance towards artificial intelligence technology.

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