Consumer adoption of innovation

: the impact of AI on e-satisfaction in the cosmetic sector with a focus on GenZ consumers

Abstract

In the highly competitive landscape of the cosmetic industry, the shift towards valuing the entire shopping experience has become paramount. Brands are forced to build interactive relationships with their consumers, which requires a new way of strategic thinking. The rise of AI brings new opportunities to address this change. In fact, the integration of AI into E-commerce, is setting new standards of consumer expectations towards their shopping experience and shapes their E-satisfaction. As digital natives, GenZ represents an important demographic population for analyzing the acceptance of AI, and consequently the impact of AI on GenZ's E-satisfaction when shopping online for cosmetics. Through a comprehensive literature review on the topics of AI, marketing, shopping experience, and E-satisfaction, hypotheses were formulated, and variables were identified to form the basis of our conceptual framework. A mono-method approach was chosen in which primary data was collected from 168 valid GenZ respondents via an online survey. Descriptive statistics and statistical tests (simple and multiple linear regression) using SPSS, were conducted to identify the variables impacting GenZs E-satisfaction. The results indicate a positive correlation between the use of AI and GenZ E-satisfaction, especially in hedonic online shopping contexts where personalization promotes the inclusivity of cosmetic brands. In addition, the study shows a positive impact of AI on GenZ's emotions during the online shopping experience. Overall, these findings provide important insights into the evolving landscape of online cosmetics shopping and underscore the need for brands to revise their strategies to provide experiences that go beyond the product's offering.

Date of Award	8 May 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Mónica Amâncio da Silva Borges (Supervisor)