Abstract

The advancement of technology, such as artificial intelligence (AI), enables new and efficient ways for customers to bring solutions to their personalized preferences in leisure industry. AI is associated with almost all products or services including leisure, such as travel, vacation, and entertainment. AI can reason with people's social media comments and posts, and may reveal their needs, preferences, trends and values. AI has opened up a great opportunity for advertisers to send personalized messages to consumers. While AI is having a major influence in leisure services, consumer reactions for AI advertising has been understudied in the literature. To enhance understanding about the effect of AI advertising messages, this qualitative study included in-depth interviews investigates consumer reactions to AI-based advertisement messages among social media users. A total of 23 interviews were conducted with social media users aged 18 and over, using purposive sampling method. When determining the sample size in this study, researchers applied saturation as a guiding principle during data collection (Glaser & Strauss, 2017). Qualitative data analysis procedures, as suggested by Braun and Clarke (2006), were applied to this study. Findings indicate that attractiveness, spending time, entertainment, and compatibility in customization are significant factors in determining customer satisfaction and purchase intention. 
Furthermore, current study participants indicate that price, quality, payment opportunities provided by AI advertisements are highly significant. The results of the current study suggest that artificial intelligence based advertising message was a significant variable, especially when time scarcity, personalization and indecision were high. Knowing the factors that explain consumer reactions to personalized promotional posts in leisure services, such as travel, vacation and entertainment can help in planning strategies for gaining effective results among millennials. Based on findings, managerial implication for customized AI advertisements is formulated.