Effectiveness of Artificial Intelligence-Based Online Promotional Tools on Consumer Purchase Behaviour: A Study in Madurai City

Abstract

Artificial Intelligence (AI) has emerged as an important technology in digital marketing, enabling businesses to provide personalized advertisements, product recommendations, AI-powered social media promotions, chatbots, and AI-generated promotional content. The present study, titled “Effectiveness of Artificial Intelligence-Based Online Promotional Tools on Consumer Purchase Behaviour: A Study in Madurai City,” aims to examine consumers’ perceptions towards AI-based online promotional activities and analyse their influence on consumer purchase behaviour. The study is based on both primary and secondary data, with primary data collected from 100 consumers through a structured questionnaire. The collected data were analysed using the Statistical Package for the Social Sciences (SPSS). The findings reveal that consumers have a high level of positive perception towards AI-based online promotional activities, with an overall mean score of 3.80. AI-based online advertisements providing relevant information recorded the highest mean score of 4.02, while trust in AI-based recommendations recorded the comparatively lower mean score of 3.54. Multiple regression analysis indicates that AI-based online promotional tools have a significant positive influence on consumer purchase behaviour, explaining 61.2% of the variation in purchase behaviour (R² = 0.612). Personalized advertisements emerged as the most influential promotional tool, followed by AI-based product recommendations and AI-powered social media promotions. The study concludes that effective and responsible use of AI-based promotional tools can enhance consumer engagement and influence purchase decisions. Businesses should therefore focus on personalization, transparency, data privacy, accuracy, and reliability while implementing AI-driven promotional strategies.