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VOL. 9, ISSUE 4 (2024)
The impact of AI-driven customization on customer engagement in online retail
Authors
Nishi Seth, Dr. Umesh Sharma
Abstract
This study examines how AI-driven
personalization affects engagement in online retail, specifically how five key
features of AI-related personalization drive customer engagement through
personalized product suggestions, dynamic pricing, targeted emails, customized
landing pages, and AI-powered chatbots. Using a quantitative method, data from
120 subjects were collected from a survey designed to elicit responses on all
the research items. Descriptive and inferential statistics, namely correlation
and regression analysis, will be used. The results indicate that personalized
product recommendations were the most influential AI feature, with a strong
positive correlation to customer engagement (r = 0.76). Other features, such as
targeted email marketing and dynamic pricing, also showed significant positive
relationships with engagement, though with lower impacts. AI-powered chatbots,
though useful, demonstrated the least influence on engagement. Regression
analysis showed that all AI-driven features of customization are statistically
significant, which means the AI can significantly enhance the experience of
online shopping. However, the study points out some limitations and challenges
like customer concerns with dynamic pricing and the limitations of chatbots.
The study concluded that AI-driven personalization significantly enhances
customer engagement in online retailing, but the retailers have to balance the
innovation with the satisfaction of customers to maximize the effectiveness of
such a system.
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Pages:39-43
How to cite this article:
Nishi Seth, Dr. Umesh Sharma "The impact of AI-driven customization on customer engagement in online retail". International Journal of Advanced Education and Research, Vol 9, Issue 4, 2024, Pages 39-43
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