The Power of Trust and AI: Unlocking Customer Loyalty Via Engagement

Abstract

This study explores the influence of customer trust and artificial intelligence (AI) on customer loyalty, with customer engagement acting as a mediating variable, among visitors to IKEA Kota Baru Parahiyangan. A quantitative approach was used, employing both descriptive and verification methods. The research examines the direct and indirect effects of customer trust and AI on loyalty through engagement. Data were collected via a questionnaire from 200 respondents who had visited IKEA Kota Baru Parahiyangan. The analysis was conducted using Structural Equation Modeling Partial Least Square (SEM-PLS) with SmartPLS 3.0 software. The results reveal that both customer trust and AI significantly affect customer engagement. Furthermore, customer trust and AI directly influence customer loyalty. Customer engagement also mediates the relationship between trust and loyalty, as well as between AI and loyalty. Based on these findings, IKEA should enhance customer trust by ensuring transparency and providing personalized services. Additionally, leveraging AI can boost engagement and foster long-term loyalty. By integrating trust-building strategies with AI-driven innovations, IKEA can deliver a more immersive and satisfying customer experience. This research highlights the importance of combining trust-enhancing practices and AI technology to strengthen customer relationships and sustain long-term loyalty in the retail sector.