Web cookies and AI chatbots as conversion catalysts: the mediating role of customer personalization in e-entrepreneurship

Purpose The study examines the impact of web cookies and artificial intelligence chatbots on customer conversion rates in the e-entrepreneurship environment, with customer personalization serving as a mediating variable. The research aims to understand how these digital marketing tools work individually and synergistically to enhance conversion rates, addressing a gap in existing literature that has primarily focused on these technologies in isolation rather than their integrated effects. Design/methodology/approach A quantitative research design was employed using questionnaire surveys distributed to internet users engaged in online shopping in Pakistan. The sample comprised 374 respondents recruited through a convenience sampling approach targeting active online shoppers across social media platforms and online communities. Analysis was conducted using Statistical Package for the Social Sciences (SPSS) 20, employing Pearson’s correlation, regression analysis and Hayes’ (2009) bootstrapping method for mediation analysis. Findings All six hypothesized relationships were supported. Web cookies showed a strong positive relationship with conversion rate. Chatbots demonstrated an even stronger relationship with conversion rates. Both technologies positively influenced customer personalization–web cookies. Mediation analysis revealed that customer personalization significantly mediates the relationships between both web cookies and conversion rate and chatbots and conversion rate. Practical implications For e-entrepreneurs and marketers, results indicate that implementing web cookies and chatbots should prioritize creating personalized customer experiences rather than merely collecting data. Organizations should develop integrated strategies that leverage both technologies to enhance personalization across the customer journey. The strong mediation effects suggest that investments in personalization capabilities will yield higher returns than focusing solely on technology deployment. Originality/value This study makes a novel contribution by examining the integrated impact of web cookies and chatbots on conversion rates, addressing a significant gap where previous research examined these technologies in isolation. The research uniquely positions customer personalization as a mediating mechanism, providing empirical evidence for how digital tools translate into actual purchase behavior. Further, this research provides insights from an emerging market perspective (Pakistan), contributing to the geographical diversity of digital marketing literature while offering practical implications for global e-commerce strategies.