AI-powered digital assistants in luxury shopping: examining customer experience factors and multisensory cues in China

Purpose This study examined direct and indirect associations between AI-powered digital assistants and customer luxury brand online shopping experience (CLBOSE), as well as potential mediating effects of customer engagement, brand image, and customer perceived value, and the potential moderating effect of multisensory cues. Design/methodology/approach Quantitative data were collected through an online survey of a random sample of 399 luxury brand customers in China. Data were analyzed using structural equation modeling. Findings AI-powered digital assistants were positively associated with brand image, customer engagement, and perceived value, which, in turn, were associated with CLBOSE. AI-powered digital assistants were not associated with CLBOSE but significant indirect effects were observed via customer engagement and brand image. Customer perceived value showed a negative mediation effect. Multisensory cues were associated with CLBOSE though there was no evidence of moderation. Originality/value The study contributes to stimulus-organism-response theory by applying it to a novel digital retail context. AI-powered digital assistants may have benefits for customers and managers, though positive effects on customer experience are by no means guaranteed.