The Impact of AI-driven Marketing Personalisation on Consumer Purchase Decisions: A Mixed-Methods Analysis

Abstract

Advertising is a fundamental aspect of modern business that helps companies promote their products and services to potential customers. The effectiveness of advertising campaigns is a key concern for marketers and business owners, as they seek to maximize the return on investment (ROI) of their advertising budgets. In this paper, we examine the effectiveness of advertising from a consumer perspective, and also investigated how artificial intelligence (AI) driven data integration create a synergistic relationship between customer experience personalization, data management and analysis, and competitive intelligence in the Ghanaian market. A quantitative research design is employed to examine consumer’s perception of online products and the target sample size for this research is 120 participants. The results revealed that there was an admission of fear in respect of personalization and privacy, some discarding the customization of ads, but others expressed concern over the collection of data. Also, we found that competitive intelligence shows moderate correlations with all other variables, while AI competitive advantage shows the strongest relationships with other variables. Additionally, it was clear that ads on the internet were seen as more powerful than traditional, however, traditional media is still relevant to marketing efforts. The study shows that personalised marketing increases the likelihood of purchase by creating a sense of being understood by the brand. Finally, approximately 41% (r² = 0.407) of the variance in customer experience personalisation can be explained by AI implementation – thus, there is a need to develop integrated strategies that consider AI, data management and analysis and personalisation as interconnected capabilities.