Artificial Intelligence in E-Commerce: Exploring the Purchase Decisions through Logistic Regression Analysis

Abstract

The rapid integration of Artificial Intelligence (AI) within the online retail industry has sparked considerable interest in comprehending its effects on consumer purchase decisions. The present study aimed to examine how different variables influence purchasing choices within the realm of online shopping platforms, employing a logistic regression analysis. By analysing the data collected from 120 respondents in Chennai, the study investigated the influence of factors such as product recommendations, chatbots and virtual assistants, customer reviews and ratings, product customization options, and promotions and discounts. The results revealed that factors including Product Recommendations, Chatbots and virtual assistants, and Promotions and discounts exert a notable positive influence on purchase decisions, highlighting the importance of personalized recommendations, efficient customer assistance, and well-executed promotional campaigns. However, Customer reviews and ratings and Product customization options did not show a significant impact on purchase decisions. These results provide practical implications for businesses seeking to enhance customer engagement and drive sales. By implementing effective strategies related to the identified influential factors, organizations can improve customer satisfaction and increase conversion rates in the competitive e-commerce landscape.