IMPACT OF BEHAVIOURAL PREDICTING AI TOOLS IN DIGITAL FASHION RETAIL MARKETING. TARGETING, RE-TARGETING, HYPER-TARGETING!

Abstract

The global fashion retail industry is in process of transformation like never before, and it is powered by Artificial Intelligence (AI). The study examines the complex role of AI in behavioral predictive targeting, re-targeting and hyper targeting in digital marketing within the fashion retail business through the prism of two different perspectives: industry professionals and customers. The study used a mixed-method, cross-sectional survey design, which enabled the researcher to gather data on 500 Pakistani fashion retail professionals and 500 Pakistani fashion retail customers using a structured questionnaire. The data analysis, which is based on descriptive statistics, is conducted in SPSS and discusses the adoption of AI, perceived benefits, and challenges, accepting such benefits as product recommendations and visual search. The article also recognizes such major challenges as data privacy issues, high implementation prices, and the ethical issues of AI bias, and also presents the customer experience of AI-generated features and advertising platforms. Thus, the results indicate that there is a general opinion among the industry experts that AI is strategically essential, especially in product the recommendation, targeting, visual search, as well as predictive audience development.