Impact of AI-Powered Personalization on Customer Engagement: Exploring the Moderating Role of Customer Demographics

Abstract

This thesis examines AI-powered personalization's impact on customer engagement dimensions—absorption, dedication, and vigor. It explores trust's mediating role and the moderating effects of demographics (age and gender). Using a sample of 192 respondents and regression techniques for the analysis, the study finds significant positive relationships between AI personalization and customer engagement, with trust mediating these effects. Age and gender also moderate these relationships. The findings align with previous research, highlighting AI personalization's importance and the need to consider trust and demographics. The study suggests businesses leverage AI personalization, build customer trust, and account for demographic differences to optimize and maximize engagement of customers.