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"Research is what I'm doing when I don't know what I'm doing." ~ Wernher von Braun

AI in Consumer Behavior

Abstract

E-commerce is one of the fastest changing industries and consumers try to purchase most of the goods online. Following the internet revolution, retail and promotion, daily data generation led to a point where marketers could not

further process, using the traditional statistical ways, the new demands of vast data volume. The use of big data analytics emerged, and the rise of AI came along with predictive analytics including machine learning and data mining solutions. Artificial Intelligence has both evolved and affected the way marketing is implemented. AI is proven to be a sophisticated way of analyzing and processing data as well as decision making. The privilege of its use is considered an asset to the business executives who understand its potential. Considering AI as a tool, it may provide massive data processing and prediction accuracy. Referring to marketing science, marketers have witnessed the benefits of AI by predicting consumers behavior. Since consumers behavior varies, brands struggle for customer satisfaction, they invest time and money to highlight their products or services potentials, better define their market share, and classify customers’ needs. Marketers have been in pursuit of customer satisfaction using AI tools to read web metrics and optimize reach and conversions strategies. Machine learning, natural language processing, expert systems, voice, vision, planning, and robotics are the main AI branches that companies use to stay ahead of the competition. Business objectives aim to attract new customers, predict consumer behavior, along with the capability to personalize and predict demand using “smart” systems which allow them to increase sales, mitigate the decision-making risk and increase customer satisfaction, customer loyalty, and sales predictions. This chapter tries to map the stages of AI contribution to consumer behavior describing the essential marketing milestones.

Keywords

Artificial intelligence; User behavior; Digital marketing; Machine learning; Decision making 
Gkikas D. C., Theodoridis P. (2022) AI in Consumer Behavior. In: Virvou M., Tsihrintzis G.A., Tsoukalas L.H., Jain L.C. (eds) Advances in Artificial Intelligence-based Technologies. Learning and Analytics in Intelligent Systems, vol 22. Springer, Cham. https://doi.org/10.1007/978-3-030-80571-5_10


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