Artificial Intelligence as an Innovation Strategy: The Role of Service Performance on Customer Satisfaction and Commitment

Anelisa Memela (), Omphile Ntelekoa (), Neo Ligaraba () and Suvera Boodhoo ()
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Anelisa Memela: University of the Witwatersrand
Omphile Ntelekoa: University of the Witwatersrand
Neo Ligaraba: University of the Witwatersrand
Suvera Boodhoo: University of the Witwatersrand

Journal of Emerging Trends in Marketing and Management, 2025, vol. 1, issue 3, 51-63

Abstract: Companies are using Artificial Intelligence (AI) as an innovation strategy to drive valuable competitive advantage to enhance their innovation strategy. This study investigates the impact of AI service performance, AI information quality, AI system quality on customer satisfaction and commitment amongst young female customers of a fashion e-retailer. Data were collected through a self-administered survey and analyzed using partial least squares structural equation modelling (PLS-SEM) in SmartPLS 4.0. The findings show that AI service performance significantly influences AI information quality, customer satisfaction, and customer commitment, but does not significantly influence AI system quality. The results highlight the central role of AI information quality in driving positive customer experiences with AI-enabled service platforms. The study advances innovation and service quality literature by demonstrating how AI-based service attributes contribute to relational outcomes in online fashion retail. Fashion e-retailers should prioritize intuitive, interactive, and high-quality AI service interfaces to enhance customer satisfaction and encourage long-term commitment.

Keywords: Artificial Intelligence; Service performance; Innovation; Information quality; System quality; Digital. (search for similar items in EconPapers)
JEL-codes: M51 M54 (search for similar items in EconPapers)
Date: 2025
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