THE INFLUENCE OF AI-DRIVEN MARKETING ON CUSTOMER ENGAGEMENT AND BRAND LOYALTY: A PLS-SEM ANALYSIS OF SMARTPHONE CONSUMERS IN ERBIL

Abstract

This research explores the relationships between aspects of AI powered marketing at chatbot interface, personalization, and recommendations and how they impact Xiaomi smartphone users’ perceptions of customer engagement (cognitive, affective, and behavioral), and brand loyalty in the City of Erbil. This relationship has been evaluated using survey data from a heterogeneous sample of consumers utilizing Partial Least Squares Structural Equation Modeling PLS-SEM and found a good model fit. The analysis confirms the significant positive impact of AI powered marketing on customer engagement in each of its three dimensions. Additionally, all three dimensions of engagement were found to be positive significant predictors of brand loyalty with affective engagement being the dimension with the most significant direct effect. The analysis of total effects also reinforced previous research on the role of perceived personalization as a strong predictor of brand loyalty. The findings add to the growing body of research in digital marketing and consumer behavior as well as provide useful managerial recommendations to brand managers competing in the highly competitive, technology driven marketplace.