Role of AI-Based Marketing Activities in Shaping Brand Experience, Preference, and Loyalty

AI has evolved at a breakneck pace, enabling a paradigm shift in digital marketing, where customer engagement has taken a new turn, and brands are reaching out to consumers in ways never before possible sharing a unique experience. This personalized engagement boosts brand favorability and loyalty through AI marketing solutions, such as personalized suggestions, chatbot interactions, and predictive analytics. Drawing on empirical evidence, this study looks at the effects of AI-led marketing on brand experience, preference, and loyalty, thereby contributing to our understanding of consumer engagement with AI-led marketing. A quantitative research approach of the study was employed in the study using a closed-ended structured questionnaire administered to 210 respondents. Key study variables were summarized by descriptive statistics, and Pearson's correlation analysis was used to measure relationships among AI-driven marketing, brand experience, brand preference, and brand loyalty. The direct effects of AI-based marketing strategies were evaluated using multiple regression analysis, and mediation effects of brand experience were tested using Structural Equation Modeling (SEM). The study shows that the brand experience induced by AI-driven marketing can significantly positively affect brand preference and brand loyalty. Through the mediation analysis, brand experience is the defining factor that links AI-based marketing and brand preference and loyalty. The study emphasizes AI's role in building consumer engagement and long-term brand relationships. It also explains some of the focus areas to be explored by future research like longitudinal effects, cultural differences, and ethical concerns while integrating emerging technologies such as augmented and virtual reality.