Building Customer Loyalty in Indonesian Social Commerce: AI-Driven Personalization, Perceived Financial Value, and Seller Digital Competence Through Customer Experience

Abstract

The rapid growth of social commerce has transformed consumer purchasing behavior by integrating artificial intelligence (AI), digital interaction, and platform-based shopping experiences. In this environment, customer loyalty is no longer determined only by product quality and price, but also by personalized services, perceived economic benefits, seller capabilities, and overall customer experience. This study aims to examine the influence of AI-driven personalization, perceived financial value, and seller digital competence on customer loyalty, with customer experience as a mediating variable among TikTok Shop users in Indonesia. A quantitative explanatory research design was employed using primary data collected through an online questionnaire. The study involved 300 TikTok Shop users who had completed at least one purchase transaction within the previous six months. Respondents were selected using purposive sampling, and data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results indicate that AI-driven personalization, perceived financial value, and seller digital competence have positive and significant effects on customer experience and customer loyalty. Furthermore, customer experience significantly influences customer loyalty and partially mediates the relationships between the three independent variables and loyalty. Among the predictors, perceived financial value demonstrates the strongest direct effect on customer loyalty, highlighting the importance of economic benefits in digital shopping decisions. The study concludes that sustainable customer loyalty in social commerce is shaped through the integration of intelligent personalization, financial value, seller digital capability, and meaningful customer experiences.