Episode Details
Back to Episodes
What It Now Takes For a Shopper To Switch Brands, Using AI
Description
Most shoppers are now using AI tools to shop, and they’re increasingly discovering new brands and products inside a chat window. That raises a practical question for anyone buying or selling commerce media: what does it actually take to get a shopper to switch to a brand they’ve never heard of when an AI assistant recommends it?
In this episode, I’m sharing highlights from the new consumer study I collaborated on with Bazaarvoice, What Is a Brand Worth When AI Does the Shopping? We looked at price sensitivity, brand familiarity, consumer trust, product reviews, category risk, private label, and what happens when AI puts incumbent and challenger brands side by side. The findings suggest that AI shopping may be less of a race to the bottom than brands fear — but it does raise the bar for proving that a premium is actually worth paying.
This episode is sponsored by GrowthLoop
Timeline
[01:41] - How much of a discount does it really take to make shoppers switch to a dupe?
[02:30] - Why shoppers aren’t automatically choosing the cheapest option when AI presents them with multiple products
[04:15] - The surprising strength of brand familiarity when AI makes the recommendation
[06:15] - Why category risk changes how willing shoppers are to try an unfamiliar brand
[07:30] - The role of reviews, photos, and video in making an unfamiliar AI-recommended brand credible
[08:31] - What private label can teach challenger brands about competing against established national brands
[09:11] - Why brands and retailers need to make their proof points findable by both shoppers and AI models
Links & Resources
- Here's the link to download the full Bazaarvoice consumer study that I co-authored: What Is a Brand Worth When AI Does the Shopping?
- Learn about Bazaarvoice, a platform that collects, syndicates, and optimizes UGC across retailers, all in one place.
- Read my related articles:
- Check out Basket Case, a project I’m part of with The Drum and QSIC, an irreverent and lively podcast series where we talk shop.
- I'm sharing comedy skits on Instagram about retail media! Follow along: @retailmediabreakfastclub
- Subscribe to Retail Media Breakfast Club's daily newsletter
- Follow Kiri Masters on LinkedIn