THE IMPACT OF AI-DRIVEN PERSONALIZED ADVERTISING ON CONSUMER PURCHASE INTENTION: EVIDENCE FROM SHOPEE USERS IN HO CHI MINH CITY

Abstract

Artificial intelligence (AI)-enabled personalized advertising has become a critical strategy for enhancing customer engagement in digital commerce. However, the psychological mechanisms through which perceived personalization translate into purchase intention remain insufficiently understood. Drawing on the Stimulus–Organism–Response (S–O–R) framework, this study examines how AI-enabled perceived personalization influences purchase intention through perceived relevance, perceived usefulness, and perceived trust. A quantitative survey was conducted with 520 Shopee users who had previously been exposed to AI-enabled personalized advertising, and the proposed model was analyzed using partial least squares structural equation modeling (PLS-SEM). The findings indicate that perceived personalization significantly enhances perceived relevance, perceived usefulness, and perceived trust, while its direct effect on purchase intention is insignificant. Instead, purchase intention is primarily driven through indirect cognitive pathways, with perceived usefulness emerging as the strongest predictor of consumers’ purchase intention. These findings suggest that the effectiveness of AI-enabled personalized advertising depends less on algorithmic sophistication itself than on consumers’ evaluations of its relevance, utility, and trustworthiness. This study extends the S–O–R literature by providing an integrated explanation of the cognitive mechanisms linking AI-enabled perceived personalization and purchase intention within an emerging e-commerce market. The findings also offer practical implications for digital retailers seeking to design AI-enabled advertising strategies that create meaningful customer value and strengthen purchase intention.