Examining The Impact of AI and Digital Marketing On Consumer Purchase Intention

See discussions, stats, and author profiles for this publication at: https://www.researchgate.
net/publication/380037183
Examining the Impact of AI and Digital Marketing on Consumer Purchase

Intention Examining the Impact of AI and Digital Marketing on Consumer
Purchase Intention
Chapter · April 2024

DOI: 10.4018/979-8-3693-2363-2.ch012
CITATIONS READS
0 2,655
4 authors:
Aditi Khandelwal Ratisha Yadav

The IIS University The IIS University
48 PUBLICATIONS 57 CITATIONS 8 PUBLICATIONS 1 CITATION
SEE PROFILE SEE PROFILE
Ankita Chaturvedi A.V. Senthil Kumar

The IIS University Bharathiar University
61 PUBLICATIONS 74 CITATIONS 176 PUBLICATIONS 586 CITATIONS
SEE PROFILE SEE PROFILE
All content following this page was uploaded by Ratisha Yadav on 24 April 2024.
The user has requested enhancement of the downloaded file.

220
Chapter 12
Examining the Impact of AI
and Digital Marketing on
Consumer Purchase Intention
Aditi R. Khandelwal Ankita Chaturvedi
0000-0003-3503-1985 https://orcid.org/0000-0002-0739-5792
https://orcid.org/Orcid IIS University (Deemed), Jaipur, India
IIS University (Deemed), Jaipur, India
A. V. Senthil Kumar
Ratisha Yadav https://orcid.org/0000-0002-8587-7017
https://orcid.org/0000-0002-6193-1007 Hindusthan College of Arts and Science, India
IIS University (Deemed), Jaipur, India
ABSTRACT
This study examines the impact of Artificial Intelligence (AI) and Digital Marketing on Consumer
Purchase Intention. Through a sample of 400 respondents from North-West India, comprising both
males and females across different age groups, data was collected via an online survey questionnaire.
Statistical analyses, including independent t-tests, one-way ANOVA, and regression, were employed to
assess the relationships between these variables. The findings indicate that gender does not significantly
influence purchase intention, while age groups exhibit slight variance. However, the presence of AI
and Digital Marketing significantly impacts consumer purchase intention, highlighting the importance
of adopting AI-driven digital marketing strategies for businesses. Ethical considerations surrounding
data privacy and transparency are crucial in leveraging AI effectively. Overall, this study underscores
the transformative potential of AI and Digital Marketing in shaping consumer behavior and driving
purchase intention, providing insights for businesses aiming to navigate the dynamic digital landscape
effectively. The practical implications of the study’s findings are significant for organizations seeking to
improve their digital marketing efforts.
DOI: 10.4018/979-8-3693-2363-2.ch012
Copyright © 2024, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.

Examining the Impact of AI and Digital Marketing on Consumer Purchase Intention
INTRODUCTION
Artificial Intelligence (AI) and digital marketing have revolutionized consumer engagement and buying
behaviour in today’s fast-paced, digitally-driven business environment. AI-driven solutions have made
it possible for companies to offer customized experiences to each customer, including chatbots, recom-
mendation algorithms, and personalized content distribution (Ng, 2019). Concurrently, digital market-
ing platforms have expanded to include a diverse range of channels, ranging from email marketing and
social media to search engine optimization and content marketing (Chaffey & Ellis-Chadwick, 2019).
Businesses may face new opportunities as a result of the possibility of a major impact on consumers’
purchase intentions through the integration of AI and digital marketing methods. Artificial intelligence,
or AI for short, has grown to be a crucial component of contemporary corporate operations. Artificial
Intelligence (AI) comprises a diverse range of technologies, such as machine learning, natural language
processing, and data analytics, all of which have found extensive use in the field of marketing. With
the use of artificial intelligence (AI), companies can provide customers with tailored and data-driven
experiences like product suggestions, chatbots for customer support, and predictive analytics for targeted
advertising (Kapoor et al., 2017). Customers’ views, attitudes, and ultimately their intention to buy are
greatly influenced by this personalization and data-driven decision-making.
However, during the past 20 years, digital marketing has experienced a spectacular metamorphosis
that has been shaped by the ever-expanding digital ecosystem. Digital marketing is a wide variety of
operations that include email campaigns, social media advertising, content marketing, and search engine
optimization (SEO). According to Chaffey (Chaffey & Ellis-Chadwick, 2019), the use of artificial intel-
ligence (AI) in digital marketing tactics has resulted in increased marketing efficiency and the ability
for organizations to engage with consumers in more relevant and targeted ways. As a result, it’s become
more important to comprehend how AI and digital marketing work together to influence consumer buy-
ing intentions. In marketing literature, the idea of consumer buying intention is essential. It is a crucial
step before actual purchase behaviour and refers to a consumer’s inclination or propensity to acquire a
good or service (Engel et al., 1995). Purchase intentions of consumers are impacted by several variables,
such as personal preferences, perceived value, trust, and perceived risk. By improving customization,
offering real-time information, and optimizing the entire customer experience, the incorporation of AI
into digital marketing strategies might impact these variables and eventually influence consumers’ desire
to purchase (Hajli, 2015).
AI technology integration with digital marketing strategies has completely changed how businesses
communicate with customers by providing previously unheard-of levels of personalized and targeted
communication. Large volumes of consumer data, including internet activity and demographic data, are
analyzed by AI-powered algorithms to provide actionable insights into personal preferences and purchas-
ing patterns. The relevance and efficacy of marketing campaigns can be increased by using strategies
like machine learning and the processing of natural language, which allow marketers to customize their
offerings and messaging to appeal to the particular requirements and preferences of each consumer
category. The potential of AI to provide hyper-personalization is one of the main factors determining its
effectiveness in influencing consumer purchase intention. Through the use of AI algorithms, marketers
can provide customers with highly personalized information and recommendations, making their shop-
ping experience more immersive and engaging. AI-powered solutions may effectively affect consumer
behaviour at many phases of the buying process. A few examples of these stages include personalized
product suggestions, dynamic pricing tactics, and targeted advertising campaigns. Customers are therefore
221

more likely to find value in the products and services that are made available to them, which increases
buy intent and conversion rates for companies.
The influence of AI-driven marketing techniques has been further amplified by the substantial expan-
sion of touchpoints that firms may engage with consumers through a growing number of digital channels.
customers now have unparalleled access to information and options at their fingertips because of the
growth of social media, mobile applications, and e-commerce platforms. As a result, marketers must
effectively break through the clutter and grab customers’ attention. Artificial intelligence (AI)-driven
solutions, such as chatbots, virtual assistants, and predictive analytics, enable marketers to send timely
and relevant messages over a variety of channels, building stronger relationships with customers and
increasing purchase intention through tailored interactions and suggestions. Though digital marketing and
AI have enormous potential to increase customer purchase intention, there are also ethical, transparent,
and privacy problems with their extensive use. Data privacy and security are major concerns as businesses
gather and examine ever-larger volumes of customer data to power their AI algorithms. More account-
ability and openness in data practices are required as consumers grow more skeptical of how companies
use and distribute their personal information. In addition, the use of AI to influence customer behaviour
presents moral conundrums about consent, manipulation, and justice, underscoring the significance of
moral standards and laws to properly oversee AI-driven marketing techniques. From these perspectives,
it is clear that consumer purchase intention and the larger marketing landscape are significantly impacted
by the convergence of AI and digital marketing. In the digital age, businesses can effectively impact
consumer behaviour and drive purchase intention by utilizing AI to create personalized, relevant, and
ethical marketing experiences. However, overcoming the obstacles and complications of adopting AI
calls for a calculated strategy that strikes a balance between creativity and moral obligation. This study
aims to investigate the complex relationship between artificial intelligence (AI), digital marketing, and
consumer purchase intention. It also provides insights into how best practices for marketers can use AI
to drive business growth and success by illuminating the mechanisms through which AI-driven strate-
gies shape consumer behaviour.
The research questions of this paper are as follows: firstly, how does the use of AI in digital marketing
tactics affect Consumer Purchase Intention? secondly, what is the extent of the disparity in Consumer
Purchase Intention between males and females? thirdly, what is the extent of the variation in Consumer
Purchase Intention across various age groups? finally, do both AI and Digital Marketing have a positive
impact on Consumer Purchase Intention?
The purpose of this study is to clarify the complex relationship between customer purchase intention
and AI-driven digital marketing. Purchase intent is a crucial component for companies since it has a
direct impact on revenue creation and sales. Businesses may make well-informed decisions regarding
their marketing strategy and AI technology investments by having a thorough understanding of how AI
and digital marketing approaches impact purchase intention.
LITERATURE REVIEW
Artificial Intelligence (AI)
(AI) is the ability of a computer system or robot controlled by a computer to do tasks that are typically
completed by highly intelligent individuals. It is frequently employed in the endeavour to develop ar-
222

tificial intelligence (AI) systems with cognitive capacities akin to those of humans, such as the ability
to reason, produce insightful results, understand data, and learn through experience (Copeland, 2022).
The goal of computer science’s artificial intelligence field is to build intelligent computer systems
that can behave in ways that are similar to those of humans. When a machine executes a task, it is per-
ceived as intelligent when done by a human. In the context of business, artificial intelligence (AI), and
particularly machine learning, can be characterized as the steadily decreasing cost of prediction Milgrom
et al. (2018) Since the meaning of artificial intelligence still differs depending on the respondent’s per-
spective, artificial intelligence is more commonly referred to as intelligent code. While those who are
more interested in marketing like to use the term artificial intelligence, computer scientists frequently
tend to talk about intelligent code (Future Computed,2018).The concept of artificial intelligence (AI)
refers to the development of computer programmes that can do tasks that ordinarily require human in-
telligence. Examples include the capacity for voice and image recognition, the ability to make difficult
decisions on challenging problems, and the capacity for language interpretation. (Oxford University
Press, 2019).A machine with awareness and a mind that possesses multi-domain intelligence is known as
strong AI (Artificial General Intelligence). Narrow AI, or weak AI, is focused on a limited set of activi-
ties; driverless vehicles are an example of this Bright edge (2018). Furthermore, some writers speculate
that computers might be more advanced or intelligent than people; hence, a new title for AI—Artificial
Super Intelligence—would be coined, though it is purely theoretical at this point. Rosenberg (2018)
reports that the Constellation study, which examines investment across all industry segments, projects
that over 100 billion euros would be invested annually in artificial intelligence by 2025, compared to
only 2 billion in 2015.The marketing sector will not be an exception, and AI investment will rise. Chui
et al. (2018) found that supply chain management, production, marketing, and sales have the biggest
effects on the potential value of AI use. McKinsey & Company analyzed more than 400 AI use cases in
19 industries and 9 business functions. Due to the frequent and digital connections between businesses
and customers, consumer industries like retail and high-tech tend to see greater potential in AI applica-
tions for marketing and sales. This is because these interactions provide richer datasets for AI techniques.
Because e-commerce platforms can easily gather user data, such as click-through rates or the amount
of time spent on a page, and can personalize offers, prices, and items for each client, these platforms
stand to gain from artificial intelligence. dynamically and instantaneously. The report presents examples
where leveraging consumer data to personalize promotions—for instance, daily use of individual offer
personalization—can result in a significant boost in sales.
Digital Marketing
Digital marketing is the process of promoting products or services by the use of digital media, smartphones,
display adverts, and other digital technology, mainly the Internet. Businesses use digital channels like
social media, search engines, email, and websites to interact with both current and potential customers.
Digital marketing techniques include, but are not limited to, search engine optimization (SEO), search
engine marketing (SEM), influencer marketing, content marketing, content automation, digital promo-
tional campaigns, and data-driven advertising (Desai, 2019).
Digital Marketing is referred to as “the component of marketing that utilizes the web and online-based
digital technologies such as desktop computers, mobile phones, and other digital media and platforms to
promote products and services”. As a result, “the component of marketing” denotes a crucial component
of marketing among many other components; “utilizes the Internet and online-based digital technolo-
223

gies” denotes the use of online platforms, hardware/software tools, and other digital media networks
by Digital Marketing to make marketing more efficient and effective in terms of time; and “to promote
products and services” indicates that the main objective of Digital Marketing is to effectively advertise
commodities electronically. Numerous digital marketing strategies and techniques, such as the use of
an electronic appliance or online databases to showcase, promote, or sell goods or services, as well as
businesses that have found success through the use of the internet. Websites, pages on social network-
ing sites, targeted ads, and emails are commonly used to draw in new clients and retain existing ones.
The term “consumer purchase intention” describes a person’s perceived likelihood or propensity to acquire
a specific good or service in the future (Hawkins & Mothersbaugh, 2019). This idea captures the state
of mind and level of willingness of the consumer to make a purchase, which can be impacted by a range
of elements like the attributes of the product, the perception of the brand, individual requirements, and
outside stimuli. Businesses must comprehend consumer buying intentions to create efficient marketing
plans and raise customer satisfaction levels.
Purchase intention is the probability that a customer intends to purchase, or is willing to purchase, a
particular brand in the future (Huang et al., 2011). According to the TPB, a higher intention corresponds
to a higher likelihood of carrying out the behavior. Previous research indicates that customers’ opinions
about a particular brand have a direct bearing on their propensity to purchase in the context of influencer
marketing (Pradhana et al., 2016). According to Erkan and Evans (2018), online consumers’ purchase
intentions are significantly influenced by E-word of mouth (E-WOM), which is more successful when
it originates from well-known individuals.Purchase intention is strongly influenced by several measure-
ments in prior research, including brand attitude, brand image, quality, brand knowledge, characteristics,
and brand loyalty (Tariq et al., 2013). Kudeshia and Kumar (2017) emphasize that a customer’s inten-
tion to buy can also be influenced by the volume of E-WOM. According to Lee et al. (2011), a greater
degree of perceived legitimacy for online reviews is associated with a greater intention to buy. Due to
the aforementioned, marketers often believe that purchasing intention is a major factor in determining
purchase decisions (Raza et al., 2014).
Use of Artificial Intelligence (AI) in Digital Marketing
Over the past 20 years, digital technology has fundamentally altered both consumer and corporate adver-
tising. Herhausen et al. (2020) proposed a larger definition of “digital marketing,” which encompasses
machine learning, artificial intelligence (AI), imaginative goods, electronic commerce, handheld devices,
and the Internet of Things (IoT). It also encompasses all behaviour, establishments, and protocols enabled
by digital technology. Future demand for digital products and artificial intelligence will drive up the
standard for digital marketing. Peyravi et al. (2020) claim that technical developments have changed the
character of the global economy, spurred the process of globalization, and increased worldwide rivalry.
Artificial intelligence is already driving the highly competitive marketing world of today, as businesses
embrace plans to leverage the technology to achieve significant advancements. AI is being used in
marketing to forecast customer behaviour by utilizing consumer data, machine learning, and additional
computer techniques. Additionally, the study suggests integrating modern AI technology into customer
relationship management (CRM), customization, automation, and marketing operations to make them
224

more digitally advanced. According to Bhalerao and Bagale’s (2019) survey of 12,800 digital market-
ing professionals, artificial intelligence (AI) can account for up to 24% of the evaluation of response
mechanisms and brand loyalty. E-commerce companies have also adopted AI-related technologies like
machine learning and deep learning. According to the study, artificial intelligence (AI) is being used by
more than half of global marketers for transaction monitoring, market trend analysis, and customization.
Artificial intelligence (AI) systems have become one of the most important tools and techniques that help
merchants in the electronics industry increase their profitability due to the benefits and advantages that
are currently available. In 2019, chatbots have become a major source of income for online retailers, and
as such, they have been integrated into many online store designs and layouts.AI is currently being used
in several important marketing tasks, such as managing customer data, assessing consumer behaviour,
spotting potential trends for advertising campaigns, assessing the efficacy of clever promotions and what
needs to be changed soon, promoting the use of voice-based search methods, etc. Artificial Intelligence
is also widely used in social media to collect extremely accurate data about customer preferences and
attributes. It also improves the results of computerized searches. Online search results have significantly
changed as a result of artificial intelligence (AI). The pages that appear on the first page of search results
are now additional significant, beneficial, and pertinent to the query. As a result, a large body of research
known as SEO (Search Engine Optimization) has emerged (Hassan, 2021).
AI can be used in several typical ways in digital marketing [Syam and Kaul (2021), Roetzer and Ka-
put (2022), Venkatesan and Lecinski (2021)].Artificial intelligence (AI) plays a crucial role in modern
marketing strategies by enabling personalized experiences and efficient resource allocation. AI systems
analyze consumer data, such as browsing and purchase histories, to customize advertisements and web
content for individual users. Moreover, AI algorithms segment customers based on their traits and actions,
allowing marketers to target specific customer segments with tailored campaigns. By conducting senti-
ment analysis on social media posts, online reviews, and customer feedback, AI helps gauge customer
satisfaction and identify areas for improvement. Additionally, AI predicts Customer Lifetime Value
(CLV) by identifying high-value clients and optimizing marketing campaigns. It also assists in mapping
the customer journey across multiple channels, enabling marketers to enhance the overall customer ex-
perience. Predictive analytics algorithms forecast buyer behavior, aiding in improving conversion rates
and informing marketing strategies. AI-powered ad targeting optimizes advertisement placement based
on consumer behavior data, while predictive email marketing algorithms predict customer engagement.
Chatbots, driven by AI, provide real-time personalized assistance to customers, improving satisfaction
and response times. Lastly, AI algorithms enable dynamic pricing and revenue management by optimizing
prices in real time based on competitor pricing, market dynamics, and customer behavior, thus maximiz-
ing revenue. The use of algorithms to optimize campaigns, which can analyze enormous volumes of
data to identify the most efficient methods for reaching a target audience, is another application of AI
in digital marketing. This entails evaluating previous campaign results, figuring out the ideal times to
contact clients, and selecting the most potent creative and messaging. AI systems can examine various ad
formats, websites, and email correspondence to determine which components are most useful in increas-
ing conversion rates and enhancing the effectiveness of marketing campaigns. As a result, AI algorithms
can assist advertisers in reaching their target audience more successfully and making better judgments.
Since people are looking for more accessible ways to get information, the advent of voice search has
also contributed to the rising use of AI in digital marketing. Voice search queries can be analyzed by
AI algorithms, which can then provide pertinent information in response. This helps advertisers better
225

understand the wants and preferences of their target audience. Conversion rates can rise and the whole
customer experience can be enhanced as a result.
Benefits of Using AI in Digital Marketing
Enhancing and gathering more data on consumer behaviour is one benefit of integrating AI into digital
marketing, claims Murgai (2018). Users leave bits and pieces of their data behind when they interact
with websites. Every step of the process—whether they buy, leave a comment, or just browse online—
captures data. These large quantities are now being processed by AI systems, which are also learning
about the “digital personality” and “internet activity” of individuals. These days, systems gather and
store all kinds of data to analyze consumer patterns and build automatic instruments and customer
profiles that are targeted at particular market niches. Another benefit that Guru et al. (2023) point out
is that incorporating AI into PPC (Pay-Per-Click) advertising campaigns, helps discover new marketing
strategies to promote new or existing products. The marketer will benefit from successfully obtaining a
competitive edge because certain competitors might not have access to these channels. The researcher
also concludes that some components—such as machine learning techniques, big data, and the Internet of
Things (IoT)—are auxiliary AI processes that support efficient digital marketing operations. Therefore,
to get a competitive edge in the market, industries in the modern period seek to employ AI to gather
comprehensive consumer information and take the necessary steps to optimally serve customers’ wishes.
AI is also useful for anticipating and providing clients with long-term value. Google AdWords, SEO,
and Analytics are a few of the most popular AI strategies. The efficacy of the content is assessed with
the use of Google Analytics. It keeps track of the data that users access and share, assesses the worth of
websites based on the content they include, and offers comprehensive user statistics. It provides useful
information to support the development of the most realistic solution (Bag et al., 2021). According to
research by Tiago Ribeiro and José Luís Reis (2020), the main benefits that might be expected are lower
expenses and higher revenues. The advantages of AI include speed, quick results, accuracy, increased
efficiency, and relief by lowering the quantity of labour that humans must perform and avoiding waste
of their energy. In terms of importance, usability, and customer experience, consumers gain from AI’s
integration into digital marketing, while businesses and marketers profit from being able to forecast
consumer behaviour, identify market trends, and create hyper-personalized content. Through process
automation and optimization, artificial intelligence (AI) offers the opportunity to enhance people’s qual-
ity of work and the efficacy of corporate strategy at the operational level.
Drawbacks of Using AI in Digital Marketing
While artificial intelligence provides marketers with powerful, context-specific tools, if it is not used
with enough thought and care, marketers run the risk of losing control of the marketing process, giving
up control of their own market “knowledge,” and becoming disconnected from the cycle. Kozinets and
Gretzel (2020) claim that an organization’s vulnerability to potentially detrimental changes increases
with its reliance on artificial intelligence (AI) systems, algorithms, and big technical corporations’ pro-
grams. Because algorithms are always hidden from view and are continuously changing, marketers are
powerless over them. Ultimately, tech companies develop and experiment with these algorithms to meet
their own financial goals and satisfy their customers. Another disadvantage, according to Veleva and
Tsvetanova (2020), is a lack of customer trust. Artificial intelligence (AI) efforts to collect and record
226

personal data from people online give rise to privacy concerns, especially over the accuracy of the col-
lected data. Because AI is being utilized in digital marketing, consumers will become very wary of this
type of advertising and frequently decline to take part in such activities. Because of this, the significance
of customer trust and its influence on digital marketing techniques has grown, and scholarly research on
the topic has been substantial. Security is arguably one of the biggest obstacles to the deployment of AI.
Companies frequently forget that the information they store belongs to their clients, not to them. Experts
should be kind if they want to use the provided information. Therefore, to maintain customer satisfaction,
businesses must protect the information that consumers provide them, be forthright and honest about
it, obtain consent before using the information again, and ascertain the interests of the customer. But
data may do more than just open doors; it can drive up costs for all businesses. Businesses are finding it
harder to handle their data as a result of rising data storage prices and data volume. Marketers thus face
competition from one another for the same possibilities. It can be challenging for a business to decide
which data to keep and which to trash. The risk of losing crucial data or data that could help with cus-
tomer retention exists when employing such a strategy for the marketing department (Mozeryte, 2019).
Consumer Knowledge of AI’s Application in Digital Marketing
Although artificial intelligence (AI) is being used more and more in digital marketing, some consumers
do not appear to be aware of these advancements in technology. According to Contissa et al. (2018),
customers are largely in the dark about how AI systems operate and barely even realize how they are
being tracked and managed. Furthermore, people are powerless to question the techniques being em-
ployed. These technologies have the potential to strengthen customers’ defenses against unscrupulous
marketing and unfriendly business practices, which could lead to an effective consumer response. The
findings of Chen et al. (2021) also show how consumers’ perceptions of AI are nuanced and dynamic,
centred on feelings and practicality as well as important similarities and distinctions between AI and
humans. Artificial intelligence in digital marketing is seen by consumers as mostly inevitable and ac-
ceptable, having little to no impact on their perceptions about specific brands or companies or their
decisions to buy. Customers understand that data collecting helps artificial intelligence (AI) to deliver
more personalized service through personalization, yet they feel taken advantage of because AI is in-
herently illogical. Data collection scenarios are tinged with this tension. These feelings of exploitation
are fueled by perceived and actual loss of autonomy, which has serious cognitive consequences. One
such example is the German customer who, despite not having any Amazon Alexa devices, requested
recordings of Alexa answering voice commands and requested his personal information from Amazon.
After learning of the client’s allegation, a local magazine made an effort to locate the customer whose
privacy had been infringed (Puntoni et al., 2020).
Techniques for Enhancing AI’s Impact on Digital Marketing
AI is about to usher in a new era of increased productivity, efficiency, and profitability for businesses.
Thiraviyam (2018) asserts that a successful marketing plan that supports an online business’s success
requires making the right decisions. An effective marketing strategy must maintain client communication
and stay up to date with social trends. Artificial intelligence systems used in digital marketing strategies
are so effective that a marketer may successfully operate his business and sell his products or services.
Predictive analytics and probability modeling are also suggested by the study as methods for forecasting
227

consumer behaviour. Statistical rankings known as probability models are employed to determine which
prospective buyers are inclined to accept an offer. It connects anticipated behaviour with client proper-
ties. With this model, the program will automatically recommend ways to accomplish the desired results
after the target market and campaign objectives are specified. Furthermore, Nadanyiova et al. (2021)
suggest that digital marketing should be successfully integrated with firm practices based on concepts
and trends that are evolving in line with the high-tech industry’s changing conditions. It entails tailoring
the promotional materials to the particular preferences of the target audience for the brand. It would be
ideal to learn more about digital marketing to have a competitive advantage. It would be beneficial to
compare and contrast how AI affects digital marketing and how consumers view it in various sectors.
Impact of AI and Digital Marketing on Consumer Purchase Intention
AI has the potential to transform digital marketing by streamlining various tasks in personalized advertis-
ing, customer segmentation, and chatbots, but its adoption requires significant financial investments and
the need for continuous learning and professional development. However, the over-reliance on AI can
erode human contact and authenticity, ultimately leading to negative effects on customer involvement and
brand loyalty. (Bashang & Puttanna, 2023). AI has potential benefits in marketing, including improved
customer engagement, loyalty, and efficiency. Organizations should focus on specific use cases and ad-
dress security concerns related to customer data. Rapid AI development creates new opportunities, such
as facial/object recognition technology in marketing. As AI continues to evolve, organizations need to stay
current with the latest trends and best practices. AI can help accurately analyze customer data, improve
audience segmentation, deliver personalized marketing messages, and make advertising campaigns more
efficient (Ocak, 2023). According to Popescu (2023), As digital technology advances daily and further
advances by artificial intelligence, social media has become a central hub for businesses. Artificial
Intelligence holds great promise for digital marketing. AI can enhance client experiences, efficiency,
and customization. But there are obstacles to overcome, including knowledge, data quality, privacy is-
sues, integration, and expense. AI may significantly improve campaign efficacy, customer engagement,
targeting, and personalization, among other aspects of digital marketing. It is essential to take ethical
considerations into account while using AI. AI-powered solutions have the potential to revolutionize
digital marketing. Marketers need to embrace these tools, modify their approaches, and think about the
ethical ramifications to stay up to date with the rapidly evolving digital landscape. AI is becoming more
prevalent and important in digital marketing, and it has the power to completely transform the sector.
This essay offers a thorough analysis of the consequences, advantages, moral dilemmas, and potential
developments around the application of AI to digital marketing tactics. The integration of current re-
search and exploration of potential avenues yields significant insights for scholars, professionals, and
decision-makers who are keenly interested in the convergence of artificial intelligence and marketing.
Digital marketing is a significant factor that positively impacts purchase intention, as indicated by
literature and empirical studies. The rise of technology and its integration into consumers’ lives has
made digital marketing a key component for generating purchase intentions. The utilization of innovation
platforms reinforces consumers’ trust and encourages them to try new approaches to online shopping.
Businesses can benefit from personalization to satisfy their customers and promote customer retention,
increasing revenue. An optimal layout, quality content, and sharing of opinions are essential factors for
promoting purchase intentions. Though AI in digital marketing is still in its early years. there are already
ethical and privacy issues to be aware of. The most popular AI technique for predicting, data analysis,
228

user experience, and content personalization is machine learning. The application of AI is a major ben-
efit for improving user experience and raising marketing campaign efficacy. Most respondents said they
trust AI and think it will only get better; they also said that using it transparently is crucial. Businesses
can use consumer data to better understand their customers and provide individualized experiences
without abusing or invading their privacy (Simion & Popescu, 2023). According to Velev and Zlateva’s
(2023) conceptual paper on artificial intelligence application in digital marketing, AI transforms digital
marketing by analyzing vast amounts of data, personalizing experiences, and predicting behavior. It
enables marketers to target the audience with relevant content and maximize marketing effectiveness.
To guarantee the proper application of AI technologies, ethical issues including data privacy, openness,
and fairness must be taken into account. The study did, however, conclude that the mediating role of
CRM does not encourage a favourable impact on purchase intention. Additionally, digital marketing has
no beneficial effects on CRM.On the other hand, e-consumers are found to be more receptive to quality
content generation and an optimal layout of digital marketing, as these factors have a greater impact
on purchase intention. Updating customers consistently on various services is also seen as an effective
way to promote high-purchase intention. Overall, businesses should prioritize their digital marketing
strategies to generate purchase intentions and promote customer retention (Dastane, 2020). According
to (Theodoridis & Gkikas, 2018), artificial intelligence (AI) is a powerful tool in Computer Science
that has benefits for digital marketing. Personalized content, targeted audiences, adaptive services, ap-
propriate timing, and good data administration and handling are now essential components of successful
digital marketing. When it comes to posting communications at the appropriate time, in the appropriate
language, and with the appropriate substance, artificial intelligence (AI) helps. AI in digital market-
ing applications leads to high revenues. Industries invest money in research centers or build in-house
laboratories to optimize digital marketing efficiency. Customers enjoy qualitative content, services, and
experience. Additionally, implementing AI into marketing creates more job opportunities and decreases
unemployment. Digital marketing is more active than ever and can generate sales on its own. Through
data production and processing that can result in new knowledge, there is a rare opportunity to save the
planet’s resources while giving customers the things they truly need.
H1: There is a significant difference in Consumer Purchase Intention between males and females.
H2: There is a significant difference in Consumer Purchase Intention among different age groups.
H3: AI and Digital Marketing have a significant impact on Consumer Purchase Intention.
The research model of this paper is shown in Figure 1.
229

Figure 1. Research Model
The graphic illustrates how four independent variables digital marketing, and artificial intelligence
(AI) interact with one another about how they affect the dependent variable, which is customer purchase
intention. As a result, the figure highlights the complex dynamics involved in consumer decision-making
processes by demonstrating how AI and digital marketing all contribute to understanding customer
purchase intention.
METHODOLOGY
Research Design
The current study is exploratory and empirical in nature. When there is little current information on the
issues of concern or how similar concerns might be addressed, exploratory research is conducted. Explor-
atory research in the field is required to learn more about a current issue or an intriguing phenomenon.
Empirical research is research that gains knowledge about a specific problem or condition through experi-
ments and observations. And it uses real-life experiences and observations to test a working hypothesis.
Analytical Unit
The level of data acquired for analysis is specified by the unit of analysis. We aim to find out the impact
of AI and Digital Marketing on Consumer Purchase Intention in this study and Males and Females both
were the unit of research.
Sampling and Data Collection
The survey included four states: Rajasthan, Haryana, Uttar Pradesh, and Punjab, and it included a sample
of 400 male and female respondents from North-West India. The sample population and size were de-
230

termined via stratified sampling, with 100 respondents from each state included for a total sample size
of 400.An online survey questionnaire was used to get the respondents’ vital information. Comprising
two sections, the questionnaire was consciously designed. The respondents’ age, qualifications, occupa-
tion, and family income were all obtained in the first section. Three 5-point Likert scale questions about
consumer purchase intention, digital marketing, and artificial intelligence were added in the second
half.300 questionnaires were sent out to participants in North-West India. 408 answers were obtained
from them. Only 400 responses—after the data was cleaned up—were kept for data analysis, since the
other 8 were judged to be either incomplete or filled out by participants in error.
Data Analysis Procedure
For the data analysis purpose, IBM SPSS 22 was used. A factor analysis was performed in Table 1 to
see whether the dimensions employed to assess the impact of AI and Digital marketing on consumer
purchase intention were consistent or not. The varimax rotation approach was used, coupled with Kaiser
normalization. The Kaiser-Meyer-Olkin (KMO) test results were 0.795 (AI), and 0.677 (Digital Market-
ing) & 0.799 (Consumer purchase intention), which is suitable for instrument loading on all dimensions.
Cronbach’s alpha coefficient was used to calculate internal consistency. For the AI, Digital marketing,
and consumer purchase intention dimensions, the alpha values were 0.694; 0.875, and 0.765which
falls under the acceptable level of internal consistency. The researcher applied Regression, T-test, and
ANOVA to test the hypotheses.
Table 1. Reliability and Validity Test
Factor
Variables Measures
Loading
AI positively enhances daily life in terms of efficiency, convenience, and well-being. .789
I trust the decisions made by AI systems, believing they are reliable and make
.635
Artificial Intelligence (AI) informed choices.
Cronbach alpha value= AI is a threat to privacy. .637
0.694
Kaiser-Meyer-Olkin I am more likely to trust and engage with companies that incorporate AI in their
.867
(KMO)= 0.795 customer interaction.
AI has shifted my approach and perception of online shopping. .625
I am ready to share my personal information with AI. .770
Digital marketing provides a wide range of feedback and information on products
.765
Digital Marketing and helps to searchfor the best product.
Cronbach alpha value= I believe that the return on investment (ROI) from digital marketing efforts
0.875 .799
ismeasurable and worthwhile.
Kaiser-Meyer-Olkin
(KMO)= 0.677 I noticed that e-mail often contains digital marketing messages and advertisements. .704
Chatbots and virtual assistants enhance the quality of digital marketing. .656
In the future, I would intend to become an online shopper. .779
Consumer Purchase
I prefer to buy the products recommended by the AI by using search histories. .671
Intention
Cronbach alpha value= While browsing a product, I plan to conduct the purchase process online. .678
0.765
I tend to buy products in the future endorsed by influencers on social media. .754
Kaiser-Meyer-Olkin
(KMO)= 0.799 The perceived quality of a product plays a crucial role in shaping my decision to
.804
make a purchase.
231

Table 2. Respondents Characteristics
Demographic Characteristics Frequency Percentage

18-27 253 63.3
27-37 94 23.5
Age
37-47 36 9
47& above 17 4.3
Male 143 35.8
Gender
Female 257 64.3
High School 113 28.3
Bachelor’s degree 226 56.5
Qualification
Master’s degree 55 13.8
Other 6 1.5
Unemployed 256 64
Employed 54 13.5
Occupation Self- employed 33 8.3
Business 24 6
Others 33 8.3
3 lakh- 5 lakhs 190 47.5
5-7 lakh 90 22.5
Family Income
7-9lakh 59 14.8
9lakh and above 61 15.3
Data Analysis and Results
The demographic characteristics of the respondents are outlined in Table 2. 63.3 percent of the partici-
pants overall were between the ages of 18 and 27, 23.5% were between the ages of 27 and 37, and 9%
were between the ages of 37 and 47. The remaining 4.3% fell into the category of people above 47. The
respondents to the study were divided in terms of gender, with 35.8% identified as male and 64.3% as
female.
In terms of educational background, 28.3 percent of participants had finished high school, 56.5 percent
had bachelor’s degrees, 13.8 percent had master’s degrees, and 1.5 percent had other degrees.47.5 percent
of the respondents stated that their family’s annual income fell between 3 and 5 lakhs. Furthermore,
22.5% of the respondents indicated a family income of 5 to 7 lakhs annually, 14.8% were in the 7 to 9
lakh income range, and the remaining 15.3% claimed a family income of 9 lakhs or more.
Hypotheses Testing
The choice of focusing just on age and gender is a result of the desire to identify the major determinants
of consumer purchase Intention. The goal is to separate these variables to ascertain whether gender mat-
ters and whether age groups have a greater influence. A comprehensive analysis of the body of research
232

served as the basis for this strategy, highlighting the importance of these variables in comprehending
consumer purchase intention.
The justification for using age as a variable is its ability to reveal trends about preferences and con-
sumer purchase intention at various phases of life. Researchers can identify subtle patterns in consumer
purchase intention by breaking down age groupings. By comprehending the impact of age on client
choices, firms may successfully customize their marketing methods.Likewise, adding gender into ac-
count as a variable enables the investigation of potential differences in the purchasing habits of men and
women. This difference recognizes the likelihood that consumer purchase intention may be influenced
by preferences, perceptions, and motivations that are gender-specific. Marketers can improve the reso-
nance of their targeting techniques with a variety of consumer segments by examining gender dynamics.
In addition, the study includes two independent variables: digital marketing and artificial intelligence
(AI) in addition to demographic factors. These elements are acknowledged for having an influential
impact on consumer participation and purchase intentions in the modern economy. The study intends
to clarify their combined influence on customer purchase intentions by examining the relationship be-
tween independent factors (AI and digital marketing) and demographic variables (age and gender). In
addition to offering practical suggestions for firms to improve their marketing efforts and successfully
target their intended consumer categories, this all-inclusive strategy also delivers insights into consumer
purchase intention.
H1 There is a significant difference in Consumer Purchase Intention between males and females.
An Independent T-test was applied to check the difference in Consumer Purchase Intention between
males and females.
Table 3. Group Statistics
Group Statistics
Gender N Mean Std. Deviation Std. Error Mean
Male 143 3.6547 .37669 .03150
Female 257 3.6875 .39422 .02459
(Source: Processing of Primary Data in SPSS)
233

Table 4. Independent Sample Test
Independent Samples Test

Levene’s Test
for Equality t-test for Equality of Means
of Variances
95% Confidence
Sig. Mean Std. Error Interval of the
F Sig. T df Difference
(2-tailed) Difference Difference
Lower Upper
Equal
variances .625 .430 -.812 398 .417 -.03286 .04048 -.11245 .04673
Consumer assumed
Purchase Equal
Intention variances
-.822 304.978 .412 -.03286 .03996 -.11150 .04577
not
assumed
The results of the statistical analysis indicate that there is no significant difference in consumer
purchase intention between males and females. This conclusion is supported by both Levene’s test for
equality of variances (F = 0.625, p = 0.430), which suggests that the assumption of equal variances is
met, and the t-test for equality of means (t = -0.812, df = 398, p = 0.417 for equal variances assumed; t
= -0.822, df = 304.978, p = 0.412 for equal variances not assumed). The mean difference in consumer
purchase intention between males and females is not statistically significant, with a mean difference
of -0.03286 (95% CI [-0.11245, 0.04673]). Therefore, it can be concluded that gender does not have a
significant impact on consumer purchase intention in this sample.
H2 There is a significant difference in Consumer Purchase Intention among different age groups.
One-way ANOVA was applied to check the difference in Consumer Purchase Intention among dif-
ferent age groups.
Table 5. Descriptive

95% Confidence Interval for
N Mean Std. Deviation Std. Error Mean Minimum Maximum
Lower Bound Upper Bound
18-27 253 3.6473 .38701 .02433 3.5994 3.6952 2.20 5.00
27-37 94 3.6783 .41016 .04230 3.5943 3.7623 3.00 4.60
37-47 36 3.7722 .36458 .06076 3.6489 3.8956 3.00 4.40
47&above 17 3.8824 .21282 .05162 3.7729 3.9918 3.60 4.20
Total 400 3.6758 .38789 .01939 3.6377 3.7139 2.20 5.00
234

Table 6. ANOVA Table
Consumer Purchase Intention Sum of Squares Df Mean Square F Sig.

Between Groups 1.266 3 .422 2.845 .038
Within Groups 58.766 396 .148
Total 60.033 399
Table 7. Post hoc Tests

Tukey Ba,b
Subset for alpha = 0.05
Age N
1 2
18-27 253 3.6473
27-37 94 3.6783 3.6783
37-47 36 3.7722 3.7722
47&above 17 3.8824
Means for groups in homogeneous subsets are displayed.
a. Uses Harmonic Mean Sample Size = 39.529.
b. The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error levels are not guaranteed.
The descriptive statistics and ANOVA results reveal insights into consumer purchase intention
across different age groups. The mean purchase intention scores vary slightly across age groups, with
the highest mean score observed in the oldest age category (47 and above), followed by the 37-47 age
group, and then the 27-37 age group, while the lowest mean score is in the 18-27 age group. However,
the differences in means are not substantial. The ANOVA results indicate a significant difference in
purchase intention scores among the age groups, as evidenced by a significant F-ratio (F = 2.845, p =
0.038). Post hoc tests using Tukey’s HSD reveal that the mean purchase intention scores for the 47 and
above age group are significantly higher compared to the 18-27 age group. No other significant differ-
ences are observed between age groups. These findings suggest that while there are some differences
in purchase intention across age groups, the overall variation is relatively small, indicating a generally
consistent level of intention to purchase among consumers, regardless of age.
H3 AI and Digital Marketing have a significant impact on Consumer Purchase Intention.
Regression was applied to analyze the impact of AI and Digital Marketing on consumer purchase
intention.
235

Table 8. Model Summary
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .233 a
.054 .049 .39953
a. Predictors: (Constant), Digital Marketing, Artificial Intelligence
(Source: - Processing of Primary Data in SPSS)
Table 9. ANOVA Table
ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 3.624 2 1.812 11.352 .000b
1 Residual 63.372 397 .160
Total 66.996 399
a. Dependent Variable: Consumer Purchase Intention
b. Predictors: (Constant), Digital Marketing, Artificial Intelligence
(Source: - Processing of Primary Data in SPSS)
The R square value in Table 8 is .054 indicating that the independent factors have a 5.4% impact on the
Consumer purchase intention. This demonstrates that Artificial Intelligence and Digital marketing have
only a 5.4% impact on consumer purchase intention. According to the ANOVA table 9 the significance
p-value is .000, which is less than 0.05 so the beta coefficients have a significant value.
Table 10. Coefficient Value
Coefficients
Unstandardized Coefficients Standardized Coefficients
Model t Sig.
B Std. Error Beta
(Constant) 2.555 .239 10.696 .000
1 Artificial Intelligence .209 .057 .180 3.650 .000
Digital Marketing .106 .043 .122 2.463 .014
a. Dependent Variable: Consumer Purchase Intention
Table 10 displays the t-value and corresponding p-value for the Artificial Intelligence (p (.000) <0.05
Digital Marketing (p .014 <0.05, respectively. This indicates that both AI and Digital Marketing models
are appropriate for the study. Similar to the standard error of model fit that was previously covered, the
standard error of the coefficients in the regression output should be as small as possible. It illustrates
how inaccurate your value estimation may have been. For instance, in this model relative to the coef-
ficients.209& and .106 for AI and Digital marketing its standard error is .057& and .043 which is small.
236

The equation for linear regression based on Table 10 is as follows:
Consumer Purchase Intention = 2.555+.209(AI)+.106(Digital Marketing)
CONCLUSION
The present study concludes by exploring the complex interplay among Artificial Intelligence (AI),
Digital Marketing, and Consumer Purchase Intention. The results provide insight into how these variables
interact to affect customer behaviour and, in turn, the operations of enterprises. First, our research showed
that the intention of consumers to make purchases is not significantly influenced by their gender. This
implies that people show comparable amounts of propensity to buy whether they are men or women.
Put another way, customers’ decisions to purchase goods or services are not substantially influenced by
disparities in gender. Second, we discovered that there is some variation in purchase intentions between
age groups, with older age groups displaying marginally higher intentions than younger ones. Nonethe-
less, there was little overall difference in purchase intention between the various age groups. This sug-
gests that consumers generally keep a consistent level of intention when it comes to buying purchases,
irrespective of their age.
Finally, it was demonstrated that the existence of AI and digital marketing significantly affected con-
sumers’ intentions to make purchases. Although the R-squared result suggests a relatively small impact
(5.4%), the regression study highlights the importance of artificial intelligence and digital marketing
in influencing consumer behaviour. This implies that companies using AI-powered digital marketing
techniques are in a better position to recognize and satisfy customer preferences, which will ultimately
encourage customers to make a purchase and increase their chances of success.
Practically speaking, these results emphasize how critical it is for companies to adopt AI-driven
digital marketing strategies. Businesses may improve customer experiences overall, target certain audi-
ences with marketing techniques, and obtain insightful knowledge about consumer purchase intentions
by utilizing AI technologies. For example, chatbots may help clients in real time, increasing satisfaction
and response times, while AI-powered recommendation algorithms can offer tailored product recom-
mendations. However, companies must manage privacy issues and ethical dilemmas related to AI use
in digital marketing. Customer awareness of data privacy issues is growing, and firms must prioritize
upholding consumer confidence. Therefore, to cultivate customer loyalty and confidence, accountability
and transparency in data gathering and utilization procedures are crucial. Businesses also need to keep
up with the newest trends and best practices in digital marketing as AI technologies develop further.
To fully utilize AI to propel corporate growth and maintain competitiveness, it is essential to engage
in ongoing learning and professional development. The study’s overall findings highlight how AI and
digital marketing have the power to drastically alter customer behaviour and encourage purchase inten-
tion. In the constantly changing digital landscape, organizations can seize new chances for growth and
innovation by adopting these technologies ethically and responsibly.
237

Practical Implications
The study’s conclusions have several beneficial implications for companies that operate in the digital
space. First of all, companies need to use gender-neutral marketing tactics since it is widely acknowl-
edged that gender has no impact on consumers’ intentions to make purchases. Companies can prioritize
personalized marketing efforts based on consumer preferences and behaviour data, rather than concen-
trating on gender-specific targeting.
Second, slight differences in buy intentions among age groups indicate that companies ought to
modify their marketing plans to target particular age groups’ inclinations. Businesses can increase the
efficacy of their marketing strategies by creating tailored campaigns that resonate with their target audi-
ence by recognizing the distinct requirements and preferences of various age groups. Adopting AI-driven
digital marketing tactics is crucial, as demonstrated by the notable influence of AI and digital marketing
on consumer purchase intention. AI technologies can be used by businesses to analyze consumer data,
customize marketing messages, and improve customer satisfaction in general. Businesses can obtain a
competitive advantage in the market and increase customer engagement and loyalty by investing in AI-
driven digital marketing campaigns.
Additionally, when putting AI-driven digital marketing strategies into practice, organizations need to
give ethical issues and data privacy top priority. To keep the trust and loyalty of customers, data gather-
ing and utilization procedures must be transparent and accountable. Businesses can improve their brand
reputation in the marketplace and forge closer bonds with their clients by emphasizing ethical business
practices.
The study’s practical consequences emphasize the significance of implementing AI-driven digital
marketing strategies, customizing marketing campaigns for particular age groups, and giving ethical
issues priority when collecting and using data. Businesses can effectively manage the ever-changing
digital landscape and increase consumer engagement, loyalty, and ultimately purchase intention by put-
ting these tactics into practice.
Limitations
Although the study offers insightful information about how Artificial Intelligence (AI) affects Digital
Marketing and Consumer Purchase Intention, it must be acknowledged that it has limits. A notable
limitation of the study is its regional emphasis, which is limited to four states in North-West India. The
conclusions’ capacity to be broadly applied may be limited by the possibility that they won’t hold in all
cultural and geographic circumstances. Subsequent investigations may broaden the purview to embrace a
more heterogeneous and inclusive cohort, encompassing numerous geographies, customs, and consumer
tendencies. The use of self-reported data collected via an online survey form represents another draw-
back. Response accuracy could be affected by social desirability bias, recollection bias, and respondent
honesty, among other things. Furthermore, the study ignored other potential variables that might have
a major impact in favour of concentrating on age and gender as demographic determinants impacting
consumer purchase intention. Subsequent investigations may examine an expanded array of demographic
and psychographic elements to furnish a more all-encompassing comprehension of consumer conduct
inside the digital marketing domain.
Regression analysis and other quantitative techniques were mostly used in the study to investigate the
connections between AI, digital marketing, and consumer purchase intention. Although these statisti-
238

cal tools provide insightful information, they might not have the same depth and subtlety as qualitative
methods. Subsequent investigations may integrate qualitative approaches like focus groups, interviews,
or case studies to provide comprehensive contextual data and reveal subtle viewpoints from consumers
and professionals in the field.
Future studies could examine how AI technologies are evolving quickly and are dynamic in nature.
The report offers a quick overview of the situation as it is, but continued developments in AI might
bring new techniques and tools that completely change the way digital marketing is done. Remaining at
the forefront of the sector will need constant observation of new developments in AI and their effects
on consumer behaviour.
Additionally, as different circumstances may provide different results, future research might look into
the role of AI in particular industry sectors or firm sizes. Examining how artificial intelligence affects
digital marketing in the e-commerce, healthcare, or service sectors may offer sector-specific insights
and help develop customized marketing plans.
REFERENCES
Bashang, S., & Puttanna, K. (2023). The Role of Artificial Intelligence in Digital Marketing: A Review. In-
ternational Research Journal of Engineering. Management Science, 2(3), 125–133. doi:10.56472/25835238/
IRJEMS-V2I3P118
Bayu, I. B., & Sulistyawati, E. (2020). Pengaruh Brand Equity Terhadap Niat Beli Konsumen Dimediasi
Brand Preference. EJurnal Manajemen Universitas Udayana, 8(5), 2697. doi:10.24843/EJMUNUD.2019.
v08.i05.p04
Bhalerao, D., & Bagale, D. G. (2019). Artificial Intelligence (AI) in Digital Marketing: Future Shifts in
Businesses. Think India Journal, 22(39), 42–48.
Brightedge (2018). Future of Marketing and AI Survey. Brightedge. https://videos.brightedge.com/
research-report/brightedge-2018-future-of-marketingandai-survey.pdf. [Retrieved 2019-04-24].
Chaffey, D., & Ellis-Chadwick, F. (2019). Digital Marketing: Strategy, Implementation, and Practice
(7th ed.). Pearson.
Chen, H., Chan-Olmsted, S., Kim, J., & Mayor Sanabria, I. (2021). Consumers’ perception on artificial
intelligence applications in marketing communication. Qualitative Market Research, 25(1), 125–142.
doi:10.1108/QMR-03-2021-0040
Chui, M., Manyika, J., Miremadi, M., Henke, N., Chung, R., Nel, P., & Malhotra, S. (2018). Notes from
the AI Frontier: Insights from Hundred Uses of Cases. McKinsey & Company.
Contissa, G., Lagioia, F., Lippi, M., Micklitz, H.-W., Palka, P., Sartor, G., & Torroni, P. (2018), “Towards
Consumer-Empowering Artificial Intelligence”, Proceedings of the Twenty-Seventh International Joint
Conference on Artificial Intelligence, doi: https://doi.org/10.24963/ijcai.2018/714
. Copeland, B.J. (2022), “Artificial intelligence | Definition, Examples, and Applications”, Encyclopedia
Britannica, 11 September.
239

Dastane, O. (2020). Impact of digital marketing on online purchase intention: Mediation effect of cus-
tomer relationship management. Journal of Asian Business Strategy, 10(1), 142–158. doi:10.18488/
journal.1006.2020.101.142.158
Desai, V., & Vidyapeeth, B. (2019). Digital marketing: A review. International Journal of Trend in
Scientific Research and Development, 5(5), 196–200. doi:10.31142/ijtsrd23100
Engel, J. F., Blackwell, R. D., & Miniard, P. W. (1995). Consumer Behavior (8th ed.). Dryden Press.
Erkan, I., & Evans, C. (2018). Social media or shopping websites? The influence of eWOM on consum-
ers’ online purchase intentions. Journal of Marketing Communications, 24(6), 617–632. doi:10.1080/
13527266.2016.1184706
Hajli, N. (2015). The role of social support on relationship quality and social commerce. Technological
Forecasting and Social Change, 95, 197–202.
Hassan, A. (2021). The Usage of Artificial Intelligence in Digital Marketing: A Review. Applications of
Artificial Intelligence in Business, Education and Healthcare, 954, 357–383. doi:10.1007/978-3-030-
72080-3_20
Hawkins, D. I., & Mothersbaugh, D. L. (2019). Consumer Behavior: Building Marketing Strategy.
McGraw-Hill Education.
. Herhausen, D., Miočević, D., Morgan, R.E. and Kleijnen, M.H.P. (2020), “The digital marketing ca-
pabilities gap”, Industrial Marketing Management, Vol. 90 No. 2020, pp. 276–290, doi: https://doi.org/.
doi:10.1016/j.indmarman.2020.07.022
Huang, Y. C., Wu, Y. C. J., Wang, Y. C., & Boulanger, N. C. (2011). Decision making in online auctions.
In E. Rausch (Ed.), Management Decision, Emerald Group Publishing, 49 (5), 784-800.
Kapoor, K. K., Tamilmani, K., Rana, N. P., Patil, P., Dwivedi, Y. K., & Nerur, S. (2017). Advances
in social media research: Past, present and future. Information Systems Frontiers, 20(3), 531–558.
doi:10.1007/s10796-017-9810-y
Kaushik, A. (2017, March 30). Artificial Intelligence: Implications On Marketing, Analytics, And You.
Occam’s Razor by Avinash Kaushik. https://www.kaushik.net/avinash/artificial-intelligence-machine-
learning-implications-marketing-analytics/
Kozinets, R. V., & Gretzel, U. (2020). Commentary: Artificial Intelligence: The Marketer’s Dilemma.
Journal of Marketing, 85(1), 156–159. doi:10.1177/0022242920972933
Kudeshia, C., & Kumar, A. (2017). Social eWOM: Does it affect the brand attitude and purchase inten-
tion of brands? Management Research Review, 40(3), 310–330. doi:10.1108/MRR-07-2015-0161
Laskowski, N., & Tucci, L. (2022, July 1). What Is Artificial Intelligence (AI)? TechTarget. https://www.
techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence
Lee, J., Park, D. H., & Han, I. (2011). The different effects of online consumer reviews on consumers’
purchase intentions depending on trust in online shopping malls: An advertising perspective. Internet
Research, 21(2), 187–206. doi:10.1108/10662241111123766
240

Libai, B., Bart, Y., Gensler, S., Hofacker, C. F., Kaplan, A. M., Kötterheinrich, K., & Kroll, E. B. (2020).
Brave New World? On AI and the Management of Customer Relationships. Journal of Interactive Mar-
keting, 51, 44–56. doi:10.1016/j.intmar.2020.04.002
Milgrom, P. R., & Tadelis, S. (2018). How artificial intelligence and machine learning can impact market
design. NBER WORKING PAPER SERIES. National Bureau of Economic Research. doi:10.3386/w24282
Nadanyiova, M., Majerova, J., & Gajanova, L. (2021). Digital marketing, competitive advantage, market-
ing communication, social media, consumers. Marketing and Management of Innovations, 5(4), 92–103.
doi:10.21272/mmi.2021.4-08
Ng, A. (2019). Artificial Intelligence. Annual Review of Economics, 11(1), 1–21. PMID:31523059
Ocak, A. (2023). AI (Artificial intelligence) applications in marketing: A literature-based study. In
Proceedings of the International Cappadocia Scientific Research Congress, Nevşehir-TÜRKİYE,1-14.
Popescu, A. (2023). The role of artificial intelligence in digital marketing strategies. Annals of the
“Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 3/2023, ISSN 2344-3685/ISSN-
L 1844-7007.
Preyravi, B., Nekrosiene, J. and Lobanova, L. (2020), “(Re Volu Lionised Technologies Formarketing:
Theoretical Review With Focus On Artificial Intelligence”, Business: Theory and Practice, 21(2), 827-
834. doi: https://doi.org/. 12313. doi:10.3846/btp.2020
Puntoni, S., Reczek, R. W., Giesler, M., & Botti, S. (2020). Consumers and Artificial Intelligence: An
Experiential Perspective. Journal of Marketing, 85(1), 002224292095384. doi:10.1177/0022242920953847
. Raju, P. V. M., Reddy Nadikattu, A. K., & Battina, D. S. (2022). Role of Artificial Intelligence in Digital
Marketing-A Review. NeuroQuantology, 20(8), 4188-4194. doi: . NQ44452. doi:10.14704/nq.2022.20.8
Raza, M. A., Ahad, M. A., Shafqat, M. A., Aurangzaib, M., & Rizwan, M. (2014). The determinants
of purchase intention towards counterfeit mobile phones in Pakistan. Journal of Public Administration
and Governance, 4(3), 1. doi:10.5296/jpag.v4i3.5846
Roetzer, P., & Kaput, M. (2022). Marketing Artificial Intelligence: AI, Marketing, and the future of
business. Matt Holt Books.
Rosenberg, D. (2018). How marketers can start integrating AI in their work. Harvard Business Review.
Simion, P. C., & Popescu, M. A. M. (2023). Assessing the use of artificial intelligence in digital market-
ing: Evidence from Romanian companies. Sciendo., doi:10.2478/picbe-2023-0101
Syam, N., & Kaul, R. (2021).Machine Learning and Artificial Intelligence in Marketing and Sales: Es-
sential reference for practitioners and data scientists. Emerald Publishing; 225.
Tariq, M. I., Nawaz, M. R., Nawaz, M. M., & Awais, B. (2013). Customer perceptions about branding
and purchase intention: A study of FMCG in an emerging market. Journal of Basic and Applied Scien-
tific Research, 9572(2), 127–143.
241

Theodoridis, P. K., & Gkikas, D. C. (2018). How Artificial Intelligence Affects Digital Marketing. In
International Conference on Advanced Information Systems Engineering, 480-493. Springer, Cham.
https://doi.org/10.1007/978-3-319-91704-7_36
Thiraviyam, T. (2018), “(PDF) Artificial intelligence Marketing”, ResearchGate, April, available at:
https://www.researchgate.net/publication/328580914_Artificial_intelligence_Marketing
Velev, D., & Zlateva, P. (2023). Issues of artificial intelligence application in digital marketing. In R.
J. Dwyer (Ed.), Digitalization and Management Innovation II. IOS Press., doi:10.3233/FAIA230716
Veleva, S. S., & Tsvetanova, A. I. (2020). Characteristics of the digital marketing advantages and disad-
vantages. IOP Conference Series. Materials Science and Engineering, 940(1), 012065. doi:10.1088/1757-
899X/940/1/012065
Venkatesan, R., & Lecinski, J. (2024). The AI Marketing Canvas, Stanford University Press; 269.
Zilic, A., & Jandric, P. (2021). The Impact of Artificial Intelligence on Digital Marketing. Journal of
Marketing Management, 12(1), 1–16.
242
View publication stats

Examining The Impact of AI and Digital Marketing On Consumer Purchase Intention

Uploaded by

Copyright:

Available Formats

Examining The Impact of AI and Digital Marketing On Consumer Purchase Intention

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Examining The Impact of AI and Digital Marketing On Consumer Purchase Intention

Uploaded by

Copyright:

Available Formats

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

Examining the Impact of AI and Digital Marketing on Consumer Purchase

Chapter · April 2024

Aditi Khandelwal Ratisha Yadav

SEE PROFILE SEE PROFILE

Ankita Chaturvedi A.V. Senthil Kumar

SEE PROFILE SEE PROFILE

The user has requested enhancement of the downloaded file.

Artificial Intelligence (AI)

Consumer Purchase Intention

Use of Artificial Intelligence (AI) in Digital Marketing

Benefits of Using AI in Digital Marketing

Drawbacks of Using AI in Digital Marketing

Consumer Knowledge of AI’s Application in Digital Marketing

Techniques for Enhancing AI’s Impact on Digital Marketing

Impact of AI and Digital Marketing on Consumer Purchase Intention

The research model of this paper is shown in Figure 1.

Figure 1. Research Model

Sampling and Data Collection

Data Analysis Procedure

Table 1. Reliability and Validity Test

Table 2. Respondents Characteristics

Demographic Characteristics Frequency Percentage

Data Analysis and Results

Table 3. Group Statistics

Table 4. Independent Sample Test

Independent Samples Test

Consumer Purchase Intention

Table 6. ANOVA Table

Consumer Purchase Intention Sum of Squares Df Mean Square F Sig.

Table 7. Post hoc Tests

Consumer Purchase Intention

H3 AI and Digital Marketing have a significant impact on Consumer Purchase Intention.

Table 8. Model Summary

Table 9. ANOVA Table

Table 10. Coefficient Value

The equation for linear regression based on Table 10 is as follows:

Consumer Purchase Intention = 2.555+.209(AI)+.106(Digital Marketing)

View publication stats

You might also like