THE IMPACT OF AI-DRIVEN PERSONALIZATION ON ONLINE PURCHASE INTENTIONS: THE MEDIATING ROLES OF CONSUMER TRUST AND PERCEIVED RELEVANCE

Abstract

This study investigates the impact of AI-driven personalization on online purchase intentions, focusing on the mediating roles of consumer trust and perceived relevance. Grounded in the Stimulus-Organism-Response (SOR) theory, the research conceptualizes AI personalization as a technological stimulus that influences consumers' internal evaluations, ultimately shaping their behavioral intentions. Data were collected through a structured questionnaire from 429 university students in three public sector universities in the Hazara Division, Pakistan. Using Hayes’ PROCESS Macro (Model 4) for parallel mediation analysis, the results revealed that AI-driven personalization significantly enhances purchase intentions both directly and indirectly through consumer trust and perceived relevance. Confirmatory factor analysis confirmed the distinctiveness of the study constructs, and the four-factor model demonstrated the best model fit. The findings offer important theoretical contributions by extending the application of SOR theory in AI and e-commerce contexts, and practical implications for digital marketers and platform designers aiming to enhance consumer engagement. The study concludes that trust and relevance are critical mechanisms through which AI personalization drives online consumer behavior.

Keywords: AI-Driven Personalization, Online purchase intentions, Consumer trust, Consumer perceived relevance, Stimuli-organism-Response theory