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Mint
3 days ago
- Business
- Mint
Here's a tip to companies: Beware of promoting AI in products
It seems like it's the latest marketing strategy: Push the idea that your product or service has artificial intelligence in it. But recent research suggests that approach could backfire and actually turn off consumers. The effect is especially pronounced for offerings perceived to be riskier buys, such as a car or a medical-diagnostic service, say the researchers, who were from Washington State University and Temple University. 'When we were thinking about this project, we thought that AI will improve [consumers' willingness to buy] because everyone is promoting AI in their products," says Dogan Gursoy, a regents professor of hospitality business management at Washington State and one of the study's authors. 'But apparently it has a negative effect, not a positive one." In multiple experiments, involving different people, the researchers split participants into two groups of around 100 each. One group read ads for fictional products and services that featured the terms 'artificial intelligence" or 'AI-powered," while the other group read ads that used the terms 'new technology" or 'equipped with cutting-edge technologies." In each test, members of the group that saw the AI-related wording were less likely to say they would want to try, buy or actively seek out any of the products or services being advertised compared with people in the other group. The difference was smaller for items researchers called low risk—such as a television and a generic customer-service offering. Decisions seemed to come more from the heart than the head—that is, they were based mostly on emotions, say the researchers. Those with a negative view didn't trust AI-enabled products and services, especially if they didn't understand what AI in the offering does or if the offering poses any sort of safety risk. And that prevented them from making a clear assessment about whether they wanted to make a purchase. Gursoy says that he and colleagues are now working on additional projects to identify the cause of negative attitudes toward AI, though they speculate that concern for privacy is one. For example, the researchers found that enthusiasm for an AI-enabled refrigerator was weaker than for all the other products in the low-risk category. It could be that people just don't see the point of AI in a fridge, Gursoy says. 'Consumers simply see fewer compelling benefits," says Gursoy. 'A 'smart' fridge often carries a premium price tag, requires regular software updates and may raise privacy concerns if it tracks your groceries or eating habits." Meanwhile, a separate, forthcoming study from market-research firm Parks Associates that used different methods and included a much larger sample size came to similar conclusions about consumers' reaction to AI in products. 'We straight up asked consumers, 'If you saw a product that you liked that was advertised as including AI, would that make you more or less likely to buy it?' " says Jennifer Kent, the firm's vice president of research. Of the roughly 4,000 Americans in the survey, 18% said AI would make them more likely to buy, 24% said less likely and to 58% it made no difference, according to the study. 'Before this wave of generative AI attention over the past couple of years, AI-enabled features actually have tested very, very well," Kent says. While Gursoy's research didn't provide any insight into whether younger people are more receptive to AI in products and services than older people, Kent says her firm's study did. Among younger respondents (age 18 to 44), 24% to 27% said they would likely buy a product advertised as including AI, compared with 18% overall. Among respondents age 65 and older, 32% said they would be less likely to buy a product advertised with AI, compared with 24% overall. In any case, companies have to do a better job of making the argument for AI in their products, both Gursoy and Kent say. 'While AI-enabled appliances are appealing in theory," says Gursoy, 'the specific advantages of AI must be obvious and worthwhile to justify the investment." Sean Captain is a writer in New York. He can be reached at reports@
Newsweek
13-06-2025
- Newsweek
Has Disney World Become Too Expensive?
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. In recent years, headlines have frequently highlighted rising prices at Disney World. Social media videos documenting the cost of a day at the parks—often leaving viewers stunned by the total bill—have gone viral, regularly garnering millions of views. As the summer travel season begins, many Americans are finalizing vacation plans. But ongoing economic concerns are having a noticeable impact. A recent WalletHub survey found that 45 percent of Americans say tariffs are affecting their travel plans, while 63 percent cite inflation as a limiting factor. With prices up and financial anxiety high, where does that leave the "most magical place on Earth"? Newsweek spoke with Disney visitors and a business expert to explore how pricing at Disney World in 2025 is influencing vacation decisions. What Is The Cost of a Disney World Vacation? The cost of a Disney World vacation can vary significantly. The park's vast size, seasonal pricing, and optional add-ons mean no two trips cost the same. Visitors must factor in expenses like airfare, transportation, accommodations, park tickets, line-skipping passes, and food. Florida dad Craig Stowell recently went viral after sharing a video on Instagram detailing his family's one-day visit. He reported spending $1,400 for himself, his wife, and their three children—including tickets, parking, meals, snacks, and souvenirs. "I grew up as a Disney kid," Stowell told Newsweek. "My mother took me and my two siblings every year when we came to Florida to visit our grandma. Back then, a day at Disney was much more affordable for a young family with three children." Influencer and content creator Erin Chau shared a similar sentiment. "Definitely more expensive than I anticipated," Chau told Newsweek via email. "Although pricey, I enjoyed every second of the experience and understand that there are high costs to ensure everything runs smoothly." In response to affordability concerns, Disney has launched several promotional offers, including discounted children's tickets, free dining for kids, parking deals, and room packages. What Is the Impact on Customers? "An increasing number of visitors now view Disney vacations as unaffordable, which is likely to reduce visit intentions and return rates," said Dogan Gursoy, Regents Professor and Taco Bell Distinguished Professor in Hospitality Business Management at Washington State University. While Disney's brand still appeals to high-income travelers and first-time visitors, Gursoy said concerns about value are growing—especially among middle-income families. "Price increases are likely reshaping consumer perceptions of the experience, shifting it from a family-friendly tradition to something more akin to a luxury purchase," he told Newsweek. Gursoy explained that the psychological impact of rising costs is intensified by the "reference price" effect, where guests compare current prices to what they remember paying in the past. This can make sharp increases feel unjustified, fueling online backlash. Photo-illustration by Newsweek/Getty Disney is also facing heightened competition. Gursoy noted that Universal's Epic Universe, opening in May 2025, will feature new attractions tied to major franchises, competitive pricing, and aggressive discounts. "SeaWorld is also targeting cost-conscious travelers with deep discounts and bundled deals," he added. "If these competitors deliver strong guest satisfaction, Disney may find its pricing power more limited than expected, especially in a strained economic environment." Gursoy also warned of a potential socioeconomic divide within the parks, as rising costs increasingly price out lower-income families. "Escalating ticket prices and growing fees for conveniences like line-skipping are marginalizing these groups—often forcing them to shorten their stays, stay off-property, or forgo Disney altogether," he said. "This trend threatens to reshape the broader Central Florida tourism economy." Do Customers Still Think Disney World Is Worth It? Despite rising prices, many visitors still see Disney World as worth the cost. According to Disney's most recent earnings call, bookings for the fiscal third quarter of 2025 were up 4 percent year over year, and up 7 percent for the fourth quarter. While Disney doesn't publicly release attendance figures, the 2024 Theme Index report, cited by Magic Guides, shows Magic Kingdom visits rose from 12.7 million in 2021 to 17.7 million in 2023. For some, the expense only enhances the anticipation. "Trips will definitely need to be farther apart, as the price is quite expensive," Chau said. "But it makes saving up for the trip all the more important and exciting because you know you worked hard for it." Stowell, however, has a more skeptical view. "My oldest son just turned 15," he said. "He has his learner's permit and is saving for his first car." "To put it in perspective, one day at Disney for our family of five cost as much as a first car. Which would you rather have: a car or a day at Disney?"
