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VOL. 7, ISSUE 2 (2025)
A comprehensive literature review on artificial intelligence‑driven personalization in e‑commerce: Re‑defining consumer behavior and cultivating brand loyalty
Authors
Nandini Borade, Dr. Sameer Kulkarni, Dr. Bhawna Sharma
Abstract
Artificial intelligence has accelerated a decisive shift in e‑commerce
personalization, moving brands from static segmentation to fluid, moment‑to‑moment
tailoring of discovery, evaluation, and purchase experiences. Across recent
work, five engines of change consistently emerge: recommender systems that
balance relevance with serendipity; chatbots that compress resolution time
while sustaining tone and memory; dynamic pricing that trades efficiency for
perceived fairness; trust frameworks that mediate transparency and
explainability; and the privacy paradox that highlights consumer ambivalence
toward data use. These capabilities raise engagement, basket size, and repeat
visits when aligned with trust signals—transparency, meaningful consent, and
graceful escalation to humans. Yet the gains remain uneven and fragile.
Evidence on long‑run loyalty and customer lifetime value is thin, cross‑cultural
comparatives are sparse, and operational standards for “just‑enough”
explainability are unsettled. Ethical tensions surface where over‑personalization
triggers reactance, opaque pricing erodes equity perceptions, and consent
design nudges opt‑in without lasting confidence. This thematic review
synthesizes convergent insights and exposed fault lines, arguing that
sustainable loyalty depends less on algorithmic sharpness than on governance:
standardized KPIs, longitudinal designs, fairness audits, and consent UX tested
over time and context. The path forward is a rigorous blend of metrics and
meaning—measuring lift and retention while honoring control and clarity—so
personalization feels like service, not surveillance.
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Pages:147-152
How to cite this article:
Nandini Borade, Dr. Sameer Kulkarni, Dr. Bhawna Sharma "A comprehensive literature review on artificial intelligence‑driven personalization in e‑commerce: Re‑defining consumer behavior and cultivating brand loyalty". International Journal of Management and Economics, Vol 7, Issue 2, 2025, Pages 147-152
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