MEASURING THE IMPACT OF AI-BASED PERSONALIZATION ON CONSUMER PURCHASE DECISIONS
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Keywords

AI-based Personalization
Consumer Purchase Decisions
Online Media Industry
Mixed-Methods Research
Data Privacy Regulations

How to Cite

Hamza, M. (2023). MEASURING THE IMPACT OF AI-BASED PERSONALIZATION ON CONSUMER PURCHASE DECISIONS. Global Journal for Management and Administrative Sciences, 4(2), 11–29. Retrieved from https://gjmasuok.com/index.php/gjmas/article/view/190

Abstract

It is important for marketers who are working to increase consumer involvement and purchase intention in the digital environment to have an understanding of the effectiveness of AI-based Personalization. The purpose of this study was to assess the relationship between AI-based personalization and consumer purchase decisions, taking into account various demographic factors. A mixed-methods research design was used, combining both qualitative and quantitative approaches to gain comprehensive insights into consumer perceptions and experiences related to personal marketing efforts. The target population included people who use online media for purchasing, and the unit of analysis was the online purchasing industry. A sample of 100 participants was selected using convenience sampling. The data collection instrument consisted of closed questionnaires for quantitative data and a review of previous relevant studies for qualitative data. Participants gave consent before completing the questionnaires to ensure that ethical considerations were met. The data collection process involved distributing the survey questionnaire through various digital channels, such as WhatsApp, to reach the target population. Additionally, the research findings strongly support the presence of a significant positive relationship between AI-based personalization and consumer purchase decisions on online media platforms. Both qualitative and quantitative analyses indicated that consumers perceived personalized marketing efforts as more relevant and attractive, leading to a greater likelihood of making purchase decisions. Furthermore, a notable and positive connection was observed between scores derived from AI-driven personalization and scores indicating consumer choices regarding purchases. The investigation did not detect noteworthy variations in AI-driven personalization scores when considering various levels of education or gender. This implies that approaches involving personalized marketing have a substantial impact on consumer actions across a wide range of demographic categories. These outcomes offer valuable insights for both the academic and business realms within the domain of online marketing. AI-powered Personalization stands as a tool that marketers can utilize to enhance their promotional endeavors and enhance the bond between consumers and brands. The discoveries underscore the Significance of customized marketing tactics aimed at crafting more immersive and pertinent consumer interactions, ultimately leading to heightened conversion rates and improved decision-making concerning purchases.

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