The Influence of Artificial Intelligence on Customer Retention in the Asian E-Commerce Market

Zi Jian Oh; Abayomi Tunde Odebunmi; Yun Ern Teoh; Wei Min Thoe; Yu Jing Toh; Yu Xuan Toh; Anees Janee Ali; Daisy Mui Hung Kee

doi:10.32535/apjme.v8i1.3865

The Influence of Artificial Intelligence on Customer Retention in the Asian E-Commerce Market

Zi Jian Oh, Abayomi Tunde Odebunmi, Yun Ern Teoh, Wei Min Thoe, Yu Jing Toh, Yu Xuan Toh, Anees Janee Ali, Daisy Mui Hung Kee

Abstract

Artificial intelligence (AI) has become a key driver in enhancing customer retention in e-commerce. This study examines the influence of AI-driven personalization, efficiency and convenience, and customer trust and loyalty on customer retention in Lazada’s Asian market. A quantitative research approach was employed, with data collected through an online survey of 150 Lazada users using convenience sampling. The survey measured key constructs using a five-point Likert scale, and IBM SPSS Statistics 27 was used for analysis. The regression results indicate that customer trust and loyalty (? = 0.694, p < 0.001) have the strongest impact on customer retention, followed by personalization (? = 0.166), while efficiency and convenience (? = 0.062) have a minimal effect. The model explains 82.5% of the variance in customer retention (R² = 0.825), demonstrating strong predictive power. These findings highlight the importance of fostering trust and personalized experiences in AI-driven e-commerce strategies. While efficiency and convenience enhance the shopping experience, they play a lesser role in long-term retention. The study suggests that businesses should prioritize AI-driven trust-building strategies and culturally adapted personalization techniques to strengthen customer loyalty and sustain retention in competitive e-commerce environments.

Keywords

Artificial Intelligence (AI); Asia Market; Customer Loyalty; Customer Retention; E-Commerce; Lazada

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DOI: https://doi.org/10.32535/apjme.v8i1.3865