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Description
The rapid rise of online marketplaces in Indonesia has prompted businesses to adopt artificial intelligence (AI)-powered personalization tools to enhance user experience and foster loyalty. This research aims to analyze the effectiveness of AI personalization features—specifically chatbots and recommendation engines—in increasing customer satisfaction and loyalty. By examining how these tools shape user perceptions and behavior, the study contributes to a better understanding of customer-centric AI applications in the Indonesian digital business landscape. The research adopts a quantitative approach using online surveys distributed to users who have interacted with AI features on e-commerce platforms. The study focuses on two independent variables (chatbots and recommendation engines) and two dependent variables (customer satisfaction and customer loyalty). Data will be analyzed using regression and structural equation modeling to test a set of hypotheses that investigate the relationships between personalization tools, satisfaction, and loyalty. The study expects to find that both chatbots and recommendation engines have a positive influence on customer satisfaction, which in turn enhances customer loyalty. It is anticipated that recommendation engines may play a more dominant role due to their ability to deliver highly relevant and personalized suggestions. The results are expected to show that personalization not only improves user experience but also builds stronger emotional connections between customers and brands. This study provides actionable insights for digital marketers and developers in Indonesia’s online marketplace sector. By understanding which personalization tools drive satisfaction and loyalty, businesses can better allocate resources to strengthen customer relationships.