The Role of AI Chatbots and Virtual Shopping Assistants in Shaping Festive Season Purchase Decisions

Abstract

Artificial Intelligence (AI) is transforming the retail industry, with virtual shopping assistants and chatbots enhancing online shopping through personalized recommendations, real-time support, and seamless navigation. As digital retail becomes essential for customer engagement, especially during festive seasons, AI tools play a significant role in creating convenient, tailored shopping experiences. Despite the growing role of AI in retail, limited research exists on its impact on consumer trust, satisfaction, and purchasing decisions during major shopping events like festivals. Given that festivals are some of the largest shopping events, understanding the role of AI in influencing consumer behaviour is essential for businesses aiming to boost engagement and drive sales. In recent times, companies predominantly focus on youngsters, considering their tech-savvy nature and active engagement with AI-driven platforms, that plays a vital role in festive season purchasing decisions. Therefore, the present study aims at examining the impact of AI-driven interactions on satisfaction, trust, and purchase intentions during festivals among students between the age group of 17 - 23 years of arts and science colleges in Madurai. It is proposed to collect primary data using convenient sampling method using Google form. The collected data will be analysed using Microsoft Excel, Percentage Analysis, and Garret Ranking and provide suggestions for the companies to strengthen customer engagement and loyalty by offering insights into effective AI integration, enabling a more personalized, efficient, and satisfying shopping experience for customers.