BEAUTY GETS SMARTER: AI PERSONALIZATION FOR NEXT-LEVEL SHOPPING

Abstract

This research endeavors to dissect the influence of Artificial Intelligence (AI) on consumer purchase decisions within the beauty industry in Makassar, specifically through the lens of personalization. The contemporary digital epoch, characterized by the exponential proliferation of AI technologies, has fundamentally reshaped the dynamics of business-consumer interactions. Personalization, emerging as a pivotal marketing paradigm, is poised to achieve unprecedented efficacy through the strategic deployment of AI. Employing a quantitative framework grounded in survey methodology, this study amassed data from a cohort of 207 beauty product consumers residing in Makassar. A structured questionnaire, utilizing a five-point Likert scale, served as the instrument for variable measurement. Data analysis was executed via Structural Equation Modeling Partial Least Square (SEM-PLS), facilitated by WarpPLS software Version 8.0. The empirical findings unequivocally demonstrate a positive and statistically significant relationship between AI and purchase decisions, both directly and indirectly, mediated by personalization. These outcomes underscore the augmented purchase propensity engendered by AI-driven personalization within the beauty sector. This research contributes substantively to the extant body of knowledge concerning AI's role in marketing, with a particular focus on the interplay between personalization and purchase decisions. From a managerial perspective, the study advocates for the strategic integration of AI to amplify personalization efforts in marketing initiatives, thereby optimizing consumer purchase outcomes.