Contents I. Introduction
AI has taken a central place in digital marketing today as one of the most important drivers that has revolutionized the marketing practice among today’s firms. Designed initially to assist in performing repetitive tasks, AI has evolved into an advanced tool that is capable of analyzing complex consumer information and generating insights with exceptional accuracy [1]. Today, artificial intelligence can be found in many forms of digital marketing, such as system forecasts, consumer categorization, targeting, and personalized and fluctuating prices [2]. The importance of data analysis is reflected not only in the fact that it helps to handle the great volumes of data generated through online contacts but also in the attempts to reveal the underlying patterns of customer behaviour, which comprises their preferences, tendencies, approaches, and choices. It is of particular importance when coming up with marketing strategies that will work [3]. Digital marketers encounter a challenge due to limited AI technology, even though there is so much data out there. The problem with mainstream conventional approaches to managing information is that they could be more effective when it comes to processing the tremendous volume and complexity of data used in digital marketing [4]. It is difficult for marketers to manage vast amounts of information that is collected, gain meaningful insights into business, and respond quickly to customer interactions [5]. Additionally, the lack of AI reduces the ability of marketers to accurately target specific categories of customers and relate themselves and their marketing tactics to various preferences. These limitations may lead to ineffective marketing strategies that cannot appeal to customers, unproductive management of resources, and overall impact on the profit and growth of the ventures [6]. To this end, this research intends to analyze in detail the impact and effectiveness of AI on customer behaviour and the effectiveness of various forms of electronic marketing strategies. The stated goals are: To assess the level to which AI technologies contribute to obtaining and analyzing data about consumers to help understand existing behaviours [7]. The aim here is to examine how effective or ineffective the use of artificial intelligence tools is in promoting marketing strategies, with the aim of engaging more customers and getting them to make purchases [8]. The purpose is to gain further insight into how the application of AI may help in better allocating marketing resources and lead to a higher ROI in digital marketing. In this case, the thesis development is firmly based on the idea that the use of AI technology enhances the understanding and interaction with customer behaviour through the analysis of complex data and the effective use of targeting strategies. By incorporating artificial intelligence (AI) into marketing strategies, the complexities of large datasets can be navigated, and deep knowledge of consumer psychology can be provided [9]. It assists marketers in engaging their target market in far more effective, persuasive, and compelling ways [10]. Therefore, it results in lucky customers’ satisfaction and their repeated business, which in return escalates the everlasting economic revenue [11]. The Five Stages of Consumer Behavior describes a rational sequence that a customer commonly embarks through the purchasing decision process [12]. In this case, the proposed model serves as a framework for doing justice to the process of sensing a need and assessing a purchase [13]. Problem Recognition: The sequence begins when a consumer knows about a need or a problem. This recognition can be self-induced and may stem from the person’s needs or wants, or it could be influenced by an advertisement or someone recommending a certain product. At this point, the client develops a sense of the lack of something, which generates motivation to fill this void. Information Retrieval: Following this, the customer goes through another phase that begins by admitting the problem before trying to retrieve information about it [14]. This involves looking for potential data and information that can be used to develop ideal solutions. It can be carried out passively, involving casual talks and exposure to commercials or actively, where the person directly tries to look for information through the internet or read testimonials and reviews about products. Often, the scope of this investigation depends on factors, including but not limited to the consumer’s awareness, the issue’s complexity, and the perceived risk associated with the purchase. Alternative evaluation: Once the relevant information is gathered, the consumer assesses the available options that are available to them after that. In assessing its customers, there are disparities, which depend on certain elements such as customers’ tastes, pricing of the products, features that the clients are willing to pay for, and loyalty to certain brands, among other factors. Decision-making criteria are employed in selecting available options, which involve jurying the degree to which each product or service meets the decision makers’ specific needs and expectations. Purchase choice: By understanding several courses of action, the client gets to a decision to purchase. For some, there might still be a distinctive call to decide between brands, providers, or items [15]. Therefore, aspects like the terms of sale, return policy and the possibility of further negotiations might still influence the decision at this level. Even if, at the end of the assessment process, the customer may have a favourable inclination toward a specific product, many factors may make the decision, for instance, purely based on promotion or change in their financial status. Post-Purchase Behavior: The final stage occurs post-purchase, whereby the buyer reflects negatively or positively on the decision. Some of the benefits that might be realized in the likelihood of satisfying customers and consequently ensuring repeat customers and brand loyalty may be realized. On the other hand, when the consumer feels dissatisfied, it can lead to situations where they regret having made the purchase and will, therefore, spread negative word-of-mouth. It is crucial to undertake this stage because it directly influences future sales and brand image among the targeted consumers [16].
