Impact of AI-Powered Personalization on Consumer Buying Behaviour
DOI:
https://doi.org/10.66635/mvpzb953Keywords:
Artificial Intelligence (AI, Personalization, Consumer Buying Behaviour, Digital Marketing, Recommendation Systems, Purchase Intention, Perceived RelevanceAbstract
Artificial Intelligence (AI) has transformed modern marketing by enabling highly personalized consumer experiences across digital platforms. This study examines the impact of AI-powered personalization on consumer buying behaviour, focusing on how personalized recommendations, perceived relevance, trust, and privacy concerns shape purchase intentions. A descriptive research design was adopted, and data were collected from 150 respondents using a structured online questionnaire. The analysis involved descriptive statistics, Pearson correlation, t-tests, and regression techniques to evaluate the relationships among key variables.
The results reveal that AI-driven personalized recommendations exert a significant positive influence on consumer purchase intentions. Consumers perceive AI-generated suggestions as useful and relevant, which enhances their overall engagement with digital marketing content. Perceived relevance was also found to be a strong predictor of trust in AI-based marketing systems, indicating that personalized content not only improves decision-making convenience but also strengthens consumer–brand relationships.
However, the study highlights that privacy concerns negatively impact consumer acceptance of AI personalization. Respondents with higher levels of concern about data tracking and information sharing demonstrated lower trust and reduced willingness to engage with personalized marketing messages. Regression analysis showed that personalized recommendations account for 38.4% of the variance in purchase intention, confirming their strong predictive influence.
Overall, the study concludes that AI-powered personalization is an effective driver of consumer behaviour, provided it is implemented with ethical data practices and transparency. The findings contribute valuable insights for marketers, businesses, and policymakers seeking to leverage AI responsibly while maximizing customer engagement and trust in the evolving digital ecosystem.
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