Leveraging Artificial Intelligence for Personalized Marketing: Enhancing Consumer Engagement and Driving Sales

Abstract

This study investigates the impact of Artificial Intelligence driven personalized marketing on consumer engagement and sales performance, examining the mediating role of engagement and the moderating effects of product involvement and consumer demographics. Using a quantitative, cross-sectional approach, data from 200 respondents exposed to AI-powered marketing on digital platforms were analyzed. Findings reveal that AI-driven personalization significantly enhances cognitive, emotional, and behavioral engagement. Consumer engagement partially mediates the relationship between personalization and sales, with stronger effects observed for high-involvement products. Additionally, demographics such as age, income, and education influence marketing effectiveness. The insights align with theories such as the Elaboration Likelihood Model and involvement theory. This research offers practical recommendations to leverage AI, tailor strategies by demographics and product types, and address privacy concerns to foster consumer trust and loyalty.