Evaluating customer usage and satisfaction in Bahrain towards AI-enabled e-commerce websites

Abstract

With the development of technology, online shopping has become popular, especially in countries with high internet penetration rates. In Bahrain, the internet penetration rate reached 99 percent, which directly impacts the e-commerce market's revenue, which is projected to reach USD 1.434 million in 2022. The use of artificial intelligence in e-commerce helps businesses to target customers better and generate sales. Knowing that customers are using the AI features as predicted and satisfied with them is very significant for online businesses to assist them while adjusting their marketing strategies. This study aimed to measure customer usage and satisfaction in Bahrain towards the AI features in the two largest global e-commerce platforms – Amazon and Alibaba. The study focused on the most common AI features used in e-commerce websites: recommendation systems, chatbots, virtual assistants, search engines, image recognition technology, augmented reality, and product reviews. It also examined if customer’s demographic attributes, namely, age, gender, and highest education level, influence the levels of customer usage and satisfaction. The IS Success Model was adapted to formulate the research model and hypotheses. Using a CSAT survey, data were collected from a random sample of 126 Bahraini customers. The findings were analyzed using Pearson coefficient, T-Test paired samples, and one-way ANOVA. The results showed differences in usage, customer satisfaction, and purchase experience. It also demonstrated that the demographic attributes and different business strategies might affect the use, customer satisfaction, and purchase experience. Managerial implications are discussed based on the results of the study.