The impact of AI-driven personalization in digital marketing on brand loyalty among Algerian online consumers: Examining the mediating role of customer engagement

Abstract

This study examines the impact of AI-driven personalization in digital marketing on brand loyalty among Algerian online consumers, aiming to determine whether customer engagement mediates this relationship. Using a quantitative approach, data was gathered from 400 consumers across diverse backgrounds via a structured online survey. The questionnaire measured variables related to AI-driven personalization, customer engagement, and brand loyalty. Descriptive and inferential statistical analyses, including multiple linear regression and mediation analysis using the PROCESS Macro Model 4 with bootstrap resampling, were conducted using IBM SPSS 27. Results indicate that AI-driven personalization has a significant impact on increased brand loyalty and customer engagement. Moreover, customer engagement partially mediates the personalization–loyalty relationship, with the indirect effect exceeding the direct effect. Demographic analysis revealed significant differences in brand loyalty according to gender and online shopping frequency, while no significant differences were found by age or educational level. The study confirms that AI-driven personalization fosters brand loyalty, particularly when it activates consumer cognitive, emotional, and behavioral engagement. These findings highlight the necessity of integrating AI personalization strategies with engagement-building initiatives in digital marketing practice. AI-driven personalization emerges not only as a marketing tool but also as a strategic lever for building sustainable brand loyalty. In conclusion, investing in personalized digital experiences is vital to strengthening brand loyalty and enhancing consumer-brand relationships in Algeria.