AI-DRIVEN PERSONALIZATION IN DIGITAL MARKETING AND CONSUMER PURCHASE INTENTION: THE MODERATING ROLE OF CONSUMER TRUST

Abstract

This study aims to investigate the effect of AI-driven personalization on consumer purchase intention and the moderating role of consumer trust. The research specifically focuses on the context of university students in Peshawar, Pakistan. The research employs cross-sectional design grounded in a positivist philosophy. Data was collected via a self-administered online questionnaire using convenience sampling. Multiple linear regression and moderation analysis were conducted using SPSS to test the proposed hypotheses. The empirical results reveal that AI-driven personalization has a statistically significant and positive direct effect on consumer purchase intention. Furthermore, the study confirms that consumer trust positively moderates this relationship. This study addresses a critical gap by empirically isolating and testing the specific moderating role of consumer trust within an integrated theoretical model. The findings provide guidance for digital marketers and policymakers, highlighting that the effectiveness of AI personalization and consumer trust.