Analyzing the Impact of AI-Based Personalization and E-Service Quality on Customer Retention in E-Commerce: The Mediating Role of Customer Satisfaction

Salsabila Maisah Andani

Abstract


The rapid digital transformation has driven e-commerce enterprises to adopt Artificial Intelligence (AI) technologies to sustain customer loyalty in a hyper-competitive market environment. This study aims to analyze the impact of AI-based personalization and e-service quality on customer retention, with customer satisfaction serving as a mediating variable. Employing a quantitative approach, the study utilizes Structural Equation Modeling-Partial Least Squares (SEM-PLS). Data were gathered through an online survey administered to 200 active e-commerce users in Indonesia. The findings demonstrate that both AI-based personalization and e-service quality exert a positive and significant effect on customer satisfaction, which subsequently leads to higher customer retention. Furthermore, customer satisfaction is empirically proven to partially mediate these relationships. These insights offer actionable managerial implications for platform managers to optimize recommendation algorithms alongside operational service reliability.


Keywords


Artificial Intelligence, E-Commerce, E-Service Quality, Customer Retention, Customer Satisfaction.

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DOI: https://doi.org/10.55311/aiocsit.v6i1.433

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