Beyond the Algorithm - How AI-Driven Personalized Ads Shape Consumer Loyalty and Brand Engagement
(2024) BUSN39 20241Department of Business Administration
- Abstract
- Purpose: The primary aim of the study is to investigate the influence of AI-driven personalized advertising on customer loyalty and brand engagement within the B2C market. The research will also examine how consumer perceptions of privacy and transparency in the use of AI impact these relationships.
Theoretical perspective: The study’s literature review explores AI-driven personalized advertising, emphasizing its role in transforming customer engagement through machine learning and data analysis. It builds on previous literature on consumer perceptions, privacy concerns and the importance of transparency. The impact of AI personalization on customer loyalty and brand engagement based on previous studies is also highlighted.
... (More) - Purpose: The primary aim of the study is to investigate the influence of AI-driven personalized advertising on customer loyalty and brand engagement within the B2C market. The research will also examine how consumer perceptions of privacy and transparency in the use of AI impact these relationships.
Theoretical perspective: The study’s literature review explores AI-driven personalized advertising, emphasizing its role in transforming customer engagement through machine learning and data analysis. It builds on previous literature on consumer perceptions, privacy concerns and the importance of transparency. The impact of AI personalization on customer loyalty and brand engagement based on previous studies is also highlighted.
Methodology: This study adopts a relativist ontology and social constructionist epistemology to explore consumer interactions with AI-driven personalized advertising. Using qualitative methods, combining semi-structured interviews with purposive sampling to gather in-depth insights from participants aged 18-30. Thematic analysis and grounded theory principles are used to analyze data, ensuring a comprehensive understanding of consumer interactions with AI-driven personalized advertising.
Findings/Conclusions: This study finds that AI-driven personalized advertising enhances customer loyalty and brand engagement but is tempered by privacy concerns and varying AI literacy. Transparency and ethical practices are vital for trust. High product quality and customer service remain essential for loyalty, beyond the influence of personalized ads.
Practical implications: Brands should enhance transparency and ethical standards in AI-driven personalized advertising to build trust and consumer loyalty. Providing consumers with more control over their data and ensuring relevant non-intrusive ads can improve engagement and satisfaction, aligning personalization efforts with consumer privacy preferences. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9166381
- author
- Skillius, Ebba LU and Jacobsson, Amanda LU
- supervisor
- organization
- course
- BUSN39 20241
- year
- 2024
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- AI-driven personalized advertising, Customer loyalty, Brand engagement, Privacy concerns, Transparency
- language
- English
- id
- 9166381
- date added to LUP
- 2024-06-25 13:27:06
- date last changed
- 2024-06-25 13:27:06
@misc{9166381,
abstract = {{Purpose: The primary aim of the study is to investigate the influence of AI-driven personalized advertising on customer loyalty and brand engagement within the B2C market. The research will also examine how consumer perceptions of privacy and transparency in the use of AI impact these relationships.
Theoretical perspective: The study’s literature review explores AI-driven personalized advertising, emphasizing its role in transforming customer engagement through machine learning and data analysis. It builds on previous literature on consumer perceptions, privacy concerns and the importance of transparency. The impact of AI personalization on customer loyalty and brand engagement based on previous studies is also highlighted.
Methodology: This study adopts a relativist ontology and social constructionist epistemology to explore consumer interactions with AI-driven personalized advertising. Using qualitative methods, combining semi-structured interviews with purposive sampling to gather in-depth insights from participants aged 18-30. Thematic analysis and grounded theory principles are used to analyze data, ensuring a comprehensive understanding of consumer interactions with AI-driven personalized advertising.
Findings/Conclusions: This study finds that AI-driven personalized advertising enhances customer loyalty and brand engagement but is tempered by privacy concerns and varying AI literacy. Transparency and ethical practices are vital for trust. High product quality and customer service remain essential for loyalty, beyond the influence of personalized ads.
Practical implications: Brands should enhance transparency and ethical standards in AI-driven personalized advertising to build trust and consumer loyalty. Providing consumers with more control over their data and ensuring relevant non-intrusive ads can improve engagement and satisfaction, aligning personalization efforts with consumer privacy preferences.}},
author = {{Skillius, Ebba and Jacobsson, Amanda}},
language = {{eng}},
note = {{Student Paper}},
title = {{Beyond the Algorithm - How AI-Driven Personalized Ads Shape Consumer Loyalty and Brand Engagement}},
year = {{2024}},
}