The impact of artificial intelligence on GenZ’s customer engagement and purchase intention: evidence from cosmetics online shopping in Ho Chi Minh City

Abstract

AI's rise in the digital age is as swift as the technological currents that carry it. More e-commerce platforms are integrating AI to bring unique and novel experiences to customers, thereby increasing their engagement and boosting their purchasing intentions. This has opened up a breakthrough opportunity for online shopping platforms, but it also raises some key questions that to what extent does AI impact the Purchase Intention of Gen Z customers in shopping for cosmetic products while browsing for cosmetic products based on Perceived Value, and how do interactive experiences and user interaction affect their intention and purchase value? This research aims to investigate the relationship between AI and Gen Z Purchase Intention, particularly exploring the role of Customer Engagement in the context of Ho Chi Minh City. The study contributes to the understanding of AI’s influence on online buying, mainly in the cosmetics industry. During the survey, data was collected from 266 respondents, including students and working individuals aged 14 to over 27 years old in Ho Chi Minh City. The research model was tested using the statistical tool SmartPLS 3.0 and was based on previous research and related theoretical frameworks such as the S-O-R and TAM models. The authors' discussions and conclusions help to achieve the study's main objectives. The research paper emphasizes the reliability and validity of the collected data, aiming to offer valuable insights into the research topic. The empirical findings indicate that AI technology, through providing Insight Experience and Interactive Experiences to customers, positively influences their Purchase Intention, through Hedonic Value and Utility Value. Additionally, the research concludes that Interactive Experience positively affects Customer Engagement, and Customer Engagement has a positive effect on Purchase Intention. The paper also includes in-depth discussions and outlines directions for future research.