The Role of Artificial Intelligence in Personalizing Customer Experience in Nigeria’s Online Grocery Retail Market

Abstract

The growing demand for seamless and tailored online shopping experiences has led to the integration of Artificial Intelligence (AI) technologies in retail, particularly in emerging markets like Nigeria. This study investigated the role of AI-driven personalization, specifically product recommendations, chatbots, and dynamic pricing, in enhancing customer satisfaction, trust, and loyalty in Nigeria’s online grocery retail sector. A quantitative cross-sectional survey was conducted with 400 online grocery shoppers across Lagos, Abuja, and Port Harcourt. Data were collected using a structured questionnaire and analysed using descriptive statistics, confirmatory factor analysis, and structural equation modelling. The results indicated that AI personalization significantly improves customer satisfaction (β = 0.54, p < 0.001), which in turn enhances trust (β = 0.41, p < 0.001) and loyalty (β = 0.48, p < 0.001). Additionally, AI features independently influence trust and loyalty, underscoring their strategic importance in digital retail. These findings highlight that ethically implemented, context-aware AI systems can strengthen customer engagement, foster trust, and drive long-term loyalty. The study contributes to the growing body of knowledge on digital transformation in African markets and provides practical insights for online retailers seeking to enhance customer experience through AI personalization.