OIDA International Journal of Sustainable Development
Open-access peer-reviewed journal
https://doi.org/10.64211/oidaijsd190704
AI-driven customer engagement in entrepreneurial platforms: a conceptual model for driving brand loyalty in the digital start-up era
Shwetha S 1,*, Noor Afza 2
1,2 Department of Business Administration, Tumkur University, Tumkuru, Karnataka, India.
2 Department of Business Administration, Tumkur University, Tumkuru, Karnataka, India.
*Corresponding author: 1 Shwetha88ms@gmail.com
Abstract: As the development rate of AI began to gain momentum in this digital era, it has initiated a revolution in the field of marketing, which none could ever think of. The moment it was deemed possible to alleviate such tiresome operations and create real-time, personalized experiences, technologies related to AI began changing the existing trend by which brands interact with their consumers. In this regard, start-ups are expected to reap the benefits of such developments at a larger scale, unlike other more established and resource-intensive companies or groups of enterprises. They can leverage technologies related to AI, which, by being cost-effective, will help them formulate strategies that do not only reach the targeted consumers but also engage them on a deeper, more significant level. The capability to operate at larger scales without charging such costs provides start-ups with a stepping stone towards developing a competitive advantage compared to others. The marketing solutions offered by technologies related to AI, such as the automation of customer service through chatbots, recommendation engines, and predictive analytics, have already proved its worth with respect to enhancing customer experiences. Nevertheless, in spite of the speedy increase in their uptake, there remains a conceptual void about their long-run contribution to customer engagement and brand loyalty in the entrepreneurial and start-up environment. The majority of what has been written to date centers on either the technical competence of AI or the marketing performance results of AI in the short run; in other words, there has been no noticeable attention to the lion’s share of AI-applications–namely, their contribution to long-run consumer brand relationships. This current study undertakes the development of a conceptual model that integrates AI marketing applications with customer engagement and brand loyalty constructs in the digital start-up environment. The conceptual model is grounded in service-dominant logic and relationship marketing theories with value being seen as something that should be produced between firms and customers over time that should be appropriate for all individuals. It implies an improvement in different aspects of engaging activities such as interactive communication, offers, and services by marketing machinery fueled by AI. This, in turn, has given rise to the concept of a mediating influence on brand loyalty and AI adoption. There has also been consideration of the start-up context as a moderating factor in this model to incorporate the aspects of entrepreneurial flexibility and innovation culture.
It also allows for various situations through the direct and indirect routes of association. The direct route is used to address situations in which the application of AI tools will be subject to brand loyalty through enhanced perceptions of innovativeness and distinction of brand. The indirect route allows for situations in which, apart from a handful of cases, the application of AI tools in association with brand loyalty is subject to enhanced quality of engagement, which is further measured through strands of emotional attachment, behavior-based engagement, and advocacy. The moderating impact of the start-up environment might help in recognizing the possibilities that might explain how some exceptions, wherein the supply and accessibility of resources and the role of firm founder might be treated as moderating factors. From a theoretical perspective, this paper intends to draw upon the knowledge acquired from studies related to AI marketing, customer engagement, and brand loyalty and shape them into an integrated framework to enhance application in relation to the field of entrepreneurial sciences. Further, this paper, following its earlier contribution to the recognition and understanding of AI in terms of the dynamics of start-ups’ operations. This research provides insightful contributions, in operational terms, for start-ups seeking insight into how to effectively use AI applications so that marketing processes can benefit while employing ethical strategies that reduce the digital gap for the different segments of customers, both technology-inclusive and technology-exclusive, so they can benefit from the adaptiveness of AI applications in creating exclusive customer experiences. Such conceptual analysis has significantly contributed to knowledge as it allows the reader to be enriched with further insight as they come to grasp, through an in-depth manner, how the process of marketing with AI helps in creating customer loyalty in an environment where resources and innovations are scarce. This is through the identification of key mechanisms and contingencies involved so that such knowledge may be promoted for its application in later stages as it enables the operation of start-ups with the promise and complexity of AI.
Keywords: AI, Brand Loyalty, Customer Engagement, Entrepreneurial Marketing, Tools for Digital Marketing
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