AI-Powered Personalization, Customer Engagement, and Purchase Intention Under the Shadow of the Privacy Paradox: A Moderated-Mediation Study of E-Commerce Consumers in a Developing Economy
DOI:
https://doi.org/10.64060/IJPSSDV2i22Keywords:
Artificial intelligence, AI-Powered Personalization, Customer Engagement, Purchase Intention, Privacy Concern, Privacy Paradox, E-Commerce, Consumer BehaviorAbstract
Artificial intelligence (AI) has metamorphosed e-commerce by enabling highly personalized shopping experiences through data-driven recommendations, targeted advertisements, and predictive content delivery. Regardless of the widespread adoption of AI-powered personalization, the assumption that greater personalization automatically leads to stronger purchasing outcomes remains insufficiently examined. This study develops and proposes a moderated-mediation framework to investigate the relationship between AI-powered personalization and purchase intention. Drawing on the Stimulus–Organism–Response (S-O-R) framework and Privacy Calculus Theory, the study conceptualizes AI-powered personalization as the stimulus, customer engagement as the organismic state, and purchase intention as the behavioral response. Furthermore, privacy concern is introduced as a moderating variable that influences how consumers interpret personalized experiences, determining whether personalization is perceived as beneficial and relevant or intrusive and privacy-threatening. This research is situated within the context of e-commerce consumers in a South Asian developing economy, where empirical evidence on integrated moderated-mediation models remains limited. By combining personalization, engagement, and privacy perspectives within a single framework, the study contributes to both theory and practice, offering valuable insights for digital marketers seeking to balance personalization effectiveness.
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Copyright (c) 2026 Taliha Sajjad (Author)
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