Marketing communications in the age of AI: An S-O-R framework of how algorithmic recommendations shape consumer engagement and sustainable choices

Online shopping has undergone a revolution with the development of artificial intelligence. The aim of this research is to understand the decision-making of consumers as a complete, holistic approach. To evaluate this, we proposed a conceptual research model based on the S-O-R framework by utilizing two mediators: the Click-Through Rate (CTR) as consumers’ engagement propensity and serendipity perception (SP), conceptualized as unexpected discoveries. We analyzed data from 412 consumers using PLS-SEM with a 5000 bootstrap resample approach. The outcomes reveal that AI recommendations significantly impact decision-making by consumers. AI recommendations showed a significant direct effect on CTR and SP, which affect sustainable purchase intention (SPI). Remarkably, there were significant mediating roles of CTR and SP between SPI and AI recommendations. This study has several practical and theoretical contributions. Initially, this research highlights the importance of providing precise and customized suggestions for enhancing customer engagement. Secondly, following this theoretical framework, in an emerging AI-influenced economy, marketers must reevaluate how to engage customers effectively. Third, to boost CTR and customer engagement, companies must prioritize enhancing customer experiences on their respective sites by adding serendipitous features. Fourth, AI recommendations should be integrated into comprehensive promotional campaigns to create a unified customer experience.