Exploring drivers of brand loyalty in luxury e-commerce: The role of AI chatbots

Many luxury brands have adopted artificial intelligence (AI) chatbots to offer personalized online shopping services. Underpinned by cognitive appraisal theory, this study examines sequential psychological mechanisms in AI chatbot-driven online luxury shopping experiences in information-seeking and problem-solving contexts. A between-subjects design (AI chatbot usage purposes: information- seeking vs. problem-solving) was employed, and 416 responses were collected in the United States. PLS-SEM was used for data analysis. The results reveal that AI chatbot service authenticity and perceived parasocial interaction increase pleasure and satisfaction, prompting online luxury purchase intention and brand loyalty. However, AI chatbot usage purposes did not serve as a moderator. This study contributes to AI chatbot service literature by adopting a consumer-centric approach to understanding the impact of AI-powered service agents on consumer engagement and commitment to luxury e-retailers. Furthermore, this research suggests that luxury brands develop an advanced level of personalization through AI chatbot services as an online retailing strategy to target Millennial and Generation Z consumers who desire a personalized touch. This study helps luxury brands enhance the effectiveness of chatbot services and achieve long-term profitability by leveraging AI-powered chatbots aligned with the brand’s identity and image.