IMPLEMENTATION OF ARTIFICIAL INTELLIGENCE AND DIGITAL MARKETING ON MILLENNIALS' PURCHASE INTENTION ON THE TIKTOK SHOP PLATFORM THROUGH E-WOM AS A MEDIATING VARIABLE

Abstract

This study examines the impact of Artificial Intelligence (AI) and Digital Marketing (DM) on Purchase Intention (PI) among millennial consumers on TikTok Shop, with Electronic Word-of-Mouth (e-WOM) as a mediating variable. Using Structural Equation Modeling-Partial Least Squares (SEM-PLS), this research empirically validates the relationships between AI, DM, e-WOM, and PI. The findings indicate that AI-driven personalization and DM strategies significantly influence e-WOM, which in turn enhances PI. AI applications, such as chatbots and personalized recommendations, improve consumer engagement, prompting them to share positive experiences through e-WOM. Similarly, DM strategies, including influencer marketing and interactive social media campaigns, increase consumer discussions and brand credibility, strengthening e-WOM’s role as a persuasive mechanism. The mediation analysis confirms that e-WOM serves as a crucial intermediary, bridging the gap between AI, DM, and PI. These results provide theoretical contributions by integrating AI, DM, e-WOM, and PI into a comprehensive model, highlighting their synergistic effects in social commerce environments. From a managerial perspective, businesses should prioritize AI-driven automation, targeted digital marketing, and e-WOM optimization to enhance consumer engagement and drive purchasing behavior. As social commerce evolves, leveraging technology-enhanced marketing strategies will be essential for businesses to maintain competitive advantage and consumer loyalty.