Exploring the impact of AI-based innovations in consumer products on consumer loyalty

Chauhan, Monica (2025) Exploring the impact of AI-based innovations in consumer products on consumer loyalty. Doctoral thesis (PhD), Manchester Metropolitan University.

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Abstract

Organisations are increasingly exploring the use of Artificial Intelligence (AI) to innovate in relation to the features of the products and services they deliver to consumers. This research explores the impact of AI enabled innovations within a brand on the consumer perceived brand innovativeness and ultimately brand loyalty, drawing on the theoretical foundation of the Brand Value Chain (BVC). In particular, the impact on brand innovativeness of awareness of the use of AI to enable new functionality (amplifying innovations) or to enable easier use of existing products and services (simplifying innovations) is examined. Also, the extent of awareness of specific new (AI enabled) named features (specific AI knowledge) and general level of awareness of AI features (general AI knowledge) and its impact on relationships is explored. A conceptual model based on research questions and hypotheses derived from the research gaps related to the above is developed and examined. The research extends theory by using the BVC model and addressing these gaps. To test the model, a quantitative structural equation-based methodology is adopted. The Amazon brand was selected in relation to data collection, based on its strong brand credentials, and its track record of innovation including differing types of AI-enabled innovations. Data collected from 209 UK Amazon Brand App users via an online survey were analysed using PLS-SEM. The results confirm that AI amplifying and simplifying innovations increase the perception of brand innovativeness. Additionally, brand innovativeness was found to be positively related to brand loyalty, as was brand attitude, however, brand attitude did not act as a partial mediator between brand innovativeness and brand loyalty following mediation analysis. Further, there is evidence to suggest that specific AI Product Knowledge positively moderates the relationship between Amplifying AI innovations and Brand Innovativeness, and between Brand Innovativeness and Brand Loyalty, making a valuable new theoretical contribution. The findings of this study provide justification for managers to invest in AI enabled product innovations as this directly improves consumer perceived brand innovativeness and increases brand loyalty. Managers are able to use the findings in this study to focus their marketing efforts on educating consumers about their specific new AI enabled product features and functions, which in turn will strengthen the perception of brand innovativeness and brand loyalty driven by AI enabled innovations.