AI-Driven Hyper-Personalization and Brand Loyalty in fashion E-Commerce: Mediating Roles of Shopping Emotion and Purchase Intention on Zalora, Indonesia

Abstract

Artificial intelligence (AI) has spread rapidly through e-business, letting firms build hyper-personalized experiences that are thought to strengthen brand relationships. The psychological mechanisms behind this effect, however, remain poorly understood in emerging markets such as Indonesia. This study uses the Stimulus–Organism–Response (S-O-R) framework to test whether AI-driven hyper-personalization on Zalora shapes brand loyalty through two sequential mediators: shopping emotion and purchase intention. We adopted a quantitative causal design and collected primary data from 249 Indonesian Zalora users via purposive sampling, then analyzed it with Partial Least Squares Structural Equation Modelling (PLS-SEM). Hyper-personalization raised both shopping emotion and purchase intention by a wide margin, and purchase intention proved a strong predictor of brand loyalty. Shopping emotion, however, showed no significant effect on purchase intention, so the proposed serial mediation was not supported. These results refine digital commerce theory by showing that cognitive-evaluative routes outweigh affective ones. For practice, the findings help fashion platforms design effective personalization strategies, and they speak to Sustainable Development Goal (SDG) 8 by showing how data-driven retail ecosystems in e-business can support lasting economic growth in Indonesia.