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Decoding the Digital Mind: Exploring the Psychological Drivers of Consumer Behavior in the Age of AI and Personalization
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Author(s): S. Thandayuthapani (Kristu Jayanti College, India)and P. Thirumoorthi (Periyar University, India)
Copyright: 2025
Pages: 28
Source title:
Decoding Consumer Behavior Using the Insight Equation and AI Marketing
Source Author(s)/Editor(s): Arjun J Nair (St. Lawrence College, Canada), Sridhar Manohar (Chitkara Business School, Chitkara University, Punjab, India), Amit Mittal (Chitkara Business School, Chitkara University, Punjab, India)and Nitin Patwa (SP Jain School of Global Management, UAE)
DOI: 10.4018/979-8-3693-8588-3.ch007
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Abstract
This study explores how AI-driven personalization transforms consumer behavior by analyzing the psychological mechanisms influencing decision-making, preferences, and purchasing habits. Using quantitative surveys, qualitative interviews, and experimental analyses, it examines consumer reactions to recommendation systems and personalized experiences. Findings reveal a complex interplay between technology and psychology, highlighting benefits like enhanced decision-making and user experience, alongside concerns regarding autonomy, privacy, and algorithmic bias. The research addresses ethical issues and proposes a framework for balancing marketing efficacy with consumer wellbeing, offering insights for marketers, AI developers, and policymakers to foster a more equitable digital landscape.
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