The role of artificial intelligence in consumers’ brand preference for retail banks in Hong Kong

Abstract

Artificial intelligence (AI) technologies are increasingly integral to our world, as they serve as the foundation for new value propositions and distinctive customer experiences. AI is crucial for offering better customer experiences, which strengthen the consumer–brand relationship and brand differentiation. Based on the stimulus–organism–response model, this study examined the influence of AI on brand preference for retail banks in Hong Kong. Structural equation modeling was used to analyze 300 responses collected from a questionnaire survey of Generation Z subjects. The findings indicate that AI marketing efforts affected brand experience, brand preference, and repurchase intention. Among AI marketing efforts, information, accessibility and customization exerted influences on brand experience, while interaction had no significant impact on it. Brand experience also mediated the relationship between AI marketing efforts and brand preference. The study will help retail banks to design AI marketing activities and formulate better marketing and branding strategies for customer acquisition and retention.

Augmented reality is the new digital banking – AR brand experience impact on brand loyalty

“…This comprehensive view underscores the integral role that brand encounters play in shaping consumer perceptions, behaviours, and loyalty. The relationship between a brand and its consumers emerges as a critical nexus, encapsulating behavioural, cognitive, emotional, and social dimensions (Andreini et al, 2019;Ho and Chow, 2023).…”

“…The relationship between a brand and its consumers emerges as a critical nexus, encapsulating behavioural, cognitive, emotional, and social dimensions (Andreini et al. , 2019; Ho and Chow, 2023).…”

Decoding Gen Z: AI's influence on brand trust and purchasing behavior

“…This demographic, known for its critical engagement with technology, values the precision of AI systems in their interactions with brands (Guo and Luo, 2023 ). Research across various sectors, including e-commerce and retail, highlights that when AI is perceived as accurate and reliable, it significantly enhances consumers' trust in brands (Ho and Chow, 2023 ; Nazir et al, 2023 ).…”

Are Chatbots the Key to Success in Customer Service for Logistics Companies? A Statistical Study of 10 of the Most Important Companies in South America

“…Previous research has examined the effectiveness of chatbots in customer service across a variety of industries, including retail (Jones and Comfort, 2022;Rese et al, 2020;Tran et al, 2021;Kwangsawad and Jattamart, 2022;Jiang et al, 2022;Tan and Liew, 2022;Fan et al, 2023), healthcare (Mierzwa et al, 2019;Bates, 2019;Vaidyam et al, 2019;Abd-Alrazaq et al, 2020;Almalki and Azeez, 2020;Calvaresi et al, 2021;Rathnayaka et al, 2022;Puspitasari et al, 2022), tourism (Pillai and Sivathanu, 2020;Ivanov, 2020;Zhang et al, 2020;Rafiq et al, 2022;Pereira et al, 2022;Jones and Comfort, 2022) and finance (Adhim and Mulyono, 2023;Hwang and Kim, 2021;OECD, 2021;Alt et al, 2021;Nguyen et al, 2021;Jang et al, 2021;Lappeman et al, 2022). Ho and Chow (2023) measures the effectiveness of AI-Enabled chatbots in Customer Service using AnyLogic Simulation, through scenario analysis provides managerial implications for the average time in the system, response rate, satisfaction level, and cost savings, helping the companies to understand the impact of adopting AI-enabled chatbots in their customer service.…”