Several artificial intelligence (AI) assistants have come on the market over the last few years. Many started on smartphones; for example, iPhone’s Siri and Google Now for Android respond to user questions and commands (“What will the weather be like today?”; “Add Dawn detergent to my shopping list.”; or “Play jazz music.”). More recently the AI assistant battle moved to the home where Amazon Echo, Google Home, and more recently, Apple HomePod have created speakers with built-in microphones and artificial intelligence.
Amazon has been particularly aggressive, thinking that this might simplify shopping—resulting in more customers. They envision commands like, “Order a three-pack of paper towels” or “We need Crest toothpaste” will result in orders placed on Amazon. Making shopping easier and more convenient adds value and may help Amazon sell more stuff. You can read a short article about this, “Consumers Starting To Buy More Through Voice Assistants,” (MediaPost, April 10, 2017).
Consider grocery shopping while looking at the model of Consumer Behavior shown in Exhibits 5-2 and 5-8. How would this model change if consumers moved from in-store shopping to using AI assistants from Amazon?