AI-Driven Personalized Advertisements on Social Media and Purchase Intention in Fashion Industry

Abstract

This study was conducted to investigate the impact of AI-powered personalized ads on social media platforms in the fashion industry, with the moderating role of AI. A 452 valid sample was used to evaluate the influence of personalized media content, customer engagement on social media, customer privacy, and how AI moderates the relationship between customer satisfaction and purchase intention. The study conducts scale reliability analysis using Cronbach Alpha’s coefficient, EFA, CFA, and SEM, showing that all 6 factors with 20 observed variables were accepted. According to the gathered data, factors positively affecting purchase intention consisting of personalized media content, customer privacy, customer engagement on social media, and customer satisfaction. AI moderates the relationship between customer satisfaction and purchase intention. Findings reveal that enterprises in the fashion industry can promote customer satisfaction. Then, it leads to purchase intention by prioritizing personalized advertising that leverages the assistance of AI on social media platforms.