THE IMPACT OF ARTIFICIAL INTELLIGENCE ON CONSUMER BEHAVIOR IN FASHION RETAIL - A STUDY IN OMAN
DOI:
https://doi.org/10.70301/Keywords:
Artificial Intelligence (AI), omnichannel, Phygital, touchpoint beacons, augmented reality, consumer shopping behavior, fashion retail sector, enhanced serviceAbstract
This study investigates the influence of Artificial Intelligence (AI) technologies on consumer behavior and subsequent shopping patterns within the context of Oman's Fashion Retail Sector (FRS). Leveraging the capabilities of AI specifically Enhanced Consumer Service (ECS), Product Discovery (PD), Phygital/Touchpoint Beacons (PTB), and Augmented Reality (AR) the research aims to empirically model their combined impact on purchase decisions. Data were collected through a quantitative survey from 291 valid consumer responses, predominantly comprising young (21-30 years), highly educated individuals who identified as Promotion-driven and Trend-influenced shoppers. Using Structural Equation Modeling (SEM), the findings confirmed that all four AI-driven technological drivers exert a strong, positive, and statistically significant relationship with consumer shopping patterns, thereby validating the research framework. Crucially, the analysis of total effects revealed that AI’s impact is most pronounced in facilitating Enhanced Consumer Service (0.5142), suggesting its primary immediate value lies in improving service interaction rather than merely simplifying product search. The study concludes that AI serves as a transformative tool for FRS retailers in Oman, necessitating strategic investment in omnichannel integration and personalized service technologies to meet the demands of the tech-savvy, cost-conscious consumer base. The results provide actionable insights for practitioners seeking to optimize their AI integration strategies for competitive advantage in the local market.
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Copyright (c) 2025 Ajaya Sankar (Author)
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