Exploring the Mediating Effects of Emotional Arousal and Perceived value in the Relationship between Artificial Intelligence and Customer Purchasing Intentions

Abstract

Artificial intelligence (AI) is rapidly transforming the business landscape, and one key area of impact is in customer buying behavior. This paper aims to explore the relationship between AI and customer buying intention by adopting the S-O-R model. Specifically, we investigate how three dimensions of AI stimulus accuracy, engagement, and guidance affect emotional arousal and perceived benefit, which in turn influence customer buying intention towards AI-suggested products. Our study, which surveyed 226 millennials from four major cities in Sindh, Pakistan, reveals that AI has a significant impact on customer buying intention and is emerging as a strong predictor of purchase behavior. In addition, both mediators show strong mediation in the model. By using advanced statistical techniques such as SPSS, our results provide valuable insights for digital marketers seeking to leverage AI in their strategies. Overall, this research sheds light on the complex interplay between AI and consumer behavior and has important implications for the future of marketing.