To Tell or Not to Tell: The Effects of Disclosing Deepfake Video on US and Indian Consumers’ Purchase Intention

Abstract

Marketing communicators are utilizing artificial intelligence–driven technology to create seemingly real communications featuring synthetic humans. This research aims to determine the consequences of disclosing the use of synthetic, or “deepfake,” video avatars in marketing. Based on schema congruity theory and the persuasion knowledge model, this research investigates whether disclosing an avatar as synthetic impacts consumers’ perceptions of source credibility and subsequent purchase intention. It also examines the role of social cynicism on consumers’ perceptions of source credibility and purchase intention. This study employs a posttest only, control group experimental design (n = 318) with participants from the United States (low social cynicism) and India (high social cynicism). Using partial least squares structural equation modeling analysis, findings indicate that disclosure of a synthetic avatar negatively impacted purchase intention due to reduced perceptions of source trustworthiness. Results show that for women and higher-income individuals, disclosure has a greater negative effect on purchase intention. However, there was no significant support for social cynicism moderating the mediation effects of the three dimensions of source credibility on purchase intention. Discussion includes implications for researchers, practitioners, and policymakers interested in synthetic human avatar use in marketing communications.