AI-Powered Personalization Capability, Customer satisfaction and Customer Loyalty: Evidence from Beauty and Personal Care Industry in Thailand
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Abstract
This study aims to investigates the relationships between AI-powered personalization capability, customer satisfaction, and customer loyalty in Thailand's beauty and personal care industry. Using structural equation modeling on data from 239 firms, the research found that AI-powered personalization capability has significant positive direct effects on both customer satisfaction and loyalty. Customer satisfaction also demonstrated a strong positive influence on loyalty. The analysis confirmed that customer satisfaction significantly mediates the relationship between AI-powered personalization capability and customer loyalty, with an indirect effect of 0.34, accounting for 45% of the total effect. The study revealed that AI-powered personalization capability and customer satisfaction together could predict customer loyalty by 72%. The findings provide empirical evidence for the importance of AI-driven personalization in enhancing customer relationships in the beauty and personal care sector. This research offers valuable insights for managers in implementing AI technologies and developing customer-centric strategies, particularly for small and medium-sized enterprises in the Thai market.
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