Impact of artificial intelligence on consumer buying behaviors: Study about the online retail purchase

Xulong Dai, Qian Liu

Article ID: 7700
Vol 8, Issue 9, 2024

VIEWS - 46 (Abstract) 11 (PDF)

Abstract


Artificial Intelligence (AI) has become a pivotal force in transforming the retail industry, particularly in the online shopping environment. This study investigates the impact of various AI applications—such as personalized recommendations, chatbots, predictive analytics, and social media engagement—on consumer buying behaviors. Employing a quantitative research design, data was collected from 760 respondents through a structured online survey. The snowball sampling technique facilitated the recruitment of participants, focusing on diverse demographics and their interactions with AI technologies in online retail. The findings reveal that AI-driven personalization significantly enhances consumer purchase intentions and satisfaction. Multiple regression analysis shows that AI personalization (β = 0.35, p < 0.001) has the most substantial impact on purchase intention, followed by chatbot effectiveness (β = 0.25, p < 0.001), predictive analytics (β = 0.20, p < 0.001), and social media engagement (β = 0.15, p < 0.01). Similarly, AI personalization (β = 0.30, p < 0.001), predictive analytics (β = 0.25, p < 0.001), and chatbot effectiveness (β = 0.20, p < 0.001) significantly influence consumer satisfaction. The hierarchical regression analysis underscores the importance of ethical considerations, showing that ethical and transparent use of AI increases consumer trust and engagement. Model 1 explains 45% of the variance in consumer behavior (R2 = 0.45, F = 154.75, p < 0.001), while Model 2, incorporating ethical concerns, explains an additional 10% (R2 = 0.55, F = 98.25, p < 0.001). This study highlights the necessity for retailers to leverage AI technologies ethically and effectively to gain a competitive edge, improve customer satisfaction, and drive long-term success. Future research should explore the long-term impacts of AI on consumer behavior and the integration of emerging technologies such as augmented reality and the Internet of Things (IoT) in retail.


Keywords


artificial intelligence; consumer behavior; online retail; personalization; ethical AI

Full Text:

PDF


References


Bhagat, R., Chauhan, P., & Bhagat, N. (2022). Influence of AI on consumer purchase intentions through personalized recommendations. Journal of Retailing and Consumer Services, 64, 102746.

Bedi, P., Bedi, P., & Singh, J. (2022). AI-driven personalization and consumer loyalty: A comprehensive study. International Journal of Retail & Distribution Management, 50(3), 339–354. https://doi.org/10.1108/IJRDM-09-2021-0347

Das, G., Pradhan, S., & Chaudhury, S. (2022). Impact of AI and social media engagement on online buying behavior: A framework. Journal of Business Research, 139, 339–348.

Jain, R., & Khurana, A. (2022). Enhancing consumer experience with AI-powered chatbots in online retail. Journal of Business Research, 138, 378–389.

Jain, R., & Gandhi, A. (2021). The impact of AI on impulse buying behavior in fashion retail: An empirical study in India. Journal of Fashion Marketing and Management, 25(4), 543–560. https://doi.org/10.1108/JFMM-02-2020-0014

Jangra, V., & Jangra, D. (2022). Ethical implications of AI in online shopping: Safeguarding consumer data. Ethics and Information Technology, 24(1), 83–99. https://doi.org/10.1007/s10676-021-09582-9

Mussa, M. (2020). Predicting consumer purchase behavior using AI: A comprehensive analysis. Journal of Retailing and Consumer Services, 57, 102224.

Mussa, M. H. (2020). The impact of Artificial Intelligence on Consumer Behaviors an Applied Study on the Online Retailing Sector in Egypt. Journal of Shopping and Economics, 10(4), 128–145. https://doi.org/10.21608/jsec.2020.128722

Nichifor, E., Trifan, E., & Nechifor, A. (2021). The impact of chatbots on consumer journeys in online retail. International Journal of Retail & Distribution Management, 49(7), 950–966. https://doi.org/10.1108/IJRDM-10-2020-0421

Raji, M. A., Olodo, H. B., Oke, T. T, et al. (2024). E-commerce and consumer behavior: A review of AI-powered personalization and market trends. GSC Advanced Research and Reviews, 18(3), 066–077. https://doi.org/10.30574/gscarr.2024.18.3.0090

Ruby, R., Gokulakrishnan, K., & Sasikumar, D. (2023). AI technologies and online impulse buying behavior: A bibliometric analysis. Journal of Retailing and Consumer Services, 67, 103006.

Sharma, P. (2023). The role of AI in predicting customer behavior and personalizing the shopping experience. Journal of Business Research, 144, 256–270. https://doi.org/10.1016/j.jbusres.2022.11.006

Tiutiu, A., & Dabija, D. C. (2023). Ethical considerations and customer-friendly technology in AI-driven social media engagements. Technology in Society, 75, 102190. https://doi.org/10.1016/j.techsoc.2023.102190

Wen, H., Zhang, L., Sheng, A., et al. (2022). From “Human-to-Human” to “Human-to-Non-human”—Influence Factors of Artificial Intelligence-Enabled Consumer Value Co-creation Behavior. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.863313

Xiong, L. (2022). Impact of AI and the digital economy on consumer online shopping behavior. Computers in Human Behavior, 130, 107197. https://doi.org/10.1016/j.chb.2021.107197




DOI: https://doi.org/10.24294/jipd.v8i9.7700

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Xulong Dai, Qian Liu

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.