ARTIFICIAL INTELLIGENCE TRANSFORMATIONS IN MARKETING: THE NEXUS BETWEEN CHATBOTS' PERCEIVED USEFULNESS, PERCEIVED CREDIBILITY, AND BRAND LOYALTY IN E-COMMERCE

Abstract

The fashion industry employs AI-driven marketing techniques such as Chatbot technology to increase its brand presence in the digital space for 27 hours a day, seven days a week, and has a fair chance to gain an edge over competitors. Chatbots are gaining momentum, serving as a promotional tool that assists and maintains customer experiences. Thus, the current study aims to identify the impact of Chatbots' Perceived Usefulness (CPU) and Chatbots' Perceived Credibility (CPC) on Brand Loyalty (BL) in the fashion retail industry of KP, Pakistan. Data were analyzed using descriptive statistics, correlation analysis, and regression analysis to identify a structural relationship between the study’s variables. The findings revealed a significant and positive relationship between CPU, CPC, and BL. AI-driven chatbot fosters trust, confidence, and provides consistency by empowering customers and increasing conversion rates. Therefore, chatbot marketing is vital in stimulating customer engagement and credibility in brand loyalty. The practical implications are manifold, especially in consumer goods and digital platforms, which should prioritize enhancing product usefulness through user-centric design and features that deliver tangible benefits, while bolstering credibility through transparent communication and reliable performance. It also focuses on building functionally effective chatbots that respond accurately, promptly, and intuitively to user needs—this yields stronger brand loyalty. Augmenting these with design elements that enhance trust (empathetic tone, transparency) will add incremental value.

Keywords: Chatbot Perceived Usefulness, Chatbots Perceived Credibility, Fashion Industry, Brand Loyalty.