Analysis of Consumer Impulsive Buying Behavior Towards Usage of Artificial Intelligence on E-commerce Platform

Abstract

This study explores how artificial intelligence (AI) influences consumer's spontaneous or unplanned purchases in electronic commerce. The development and increasing use of various types of automated systems in e-commerce such as, but not limited to, chatbots, personalized product recommendation and real-time offers, provide new opportunities for influencing consumer's purchase decisions through automation. By investigating how these AI based tools directly or indirectly affect consumers' psychological states (e.g., convenience, urgency, customization), which stimulate unplanned or emotionally-based purchasing behaviours, this study seeks to contribute to a better understanding of how external AI based stimulus can generate internal response and subsequent behaviour. As part of its methodology, the study uses a mixed methodological design including both an online survey and qualitative interviews to investigate the level at which consumers engage with AI. The study is based upon the Stimulus-Organism-Response (S-O-R) model; Instant Gratification theory; and Cognitive Dissonance theory, among other psychological models, to examine how the AI generated stimulus leads to internal response and consequently affects the consumer's purchasing behaviour. Therefore, it is expected that AI will have a significant effect on the likelihood of spontaneous purchases due to both promotional activities and customised product recommendations. In addition, younger adults and those who possess greater discretionary income will likely be more susceptible than older adults and lower-income individuals. Furthermore, this study will examine the ethics associated with the use of AI in marketing and identify potential negative consequences (i.e., over-spending/loss of financial control). Ultimately, the purpose of this study is to help companies understand AI's role in their business practices and make informed decisions about ethical AI usage; therefore providing further knowledge regarding the long-term impacts of AI on consumer behaviour.