Artificial Intelligence in Branding: The Influence of AI-Quality on Brand Perception and Consumer Loyalty
Keywords:
Artificial Intelligence, AI-Quality, Brand Perception, Brand Loyalty, Consumer Behavior, Structural Equation ModAbstract
This study investigates the relationship between artificial intelligence (AI) quality, brand perception, and brand loyalty, with a focus on how consumers assess AI-generated content within branding contexts. AI quality was conceptualized across four dimensions: creativity, relevance, technical and content —and tested for its influence on brand perception (trust, awareness, recall, and sentiment) and, ultimately, on brand loyalty. A quantitative design was employing a structured survey of 110 consumers in the Philippines who were knowledgeable about AI-assisted brand communication. Data analysis included descriptive statistics, validity and reliability tests, multiple regression, and structural equation modeling (SEM) to evaluate direct and mediated relationships. Results suggest that AI quality significantly predicts brand loyalty, with technical performance and creativity being the most influential factors. Conversely, content and relevance have weaker direct effects, indicating that these aspects alone may not ensure long-term loyalty. SEM analysis further corroborates that brand perception acts as a mediator in the relationship between AI quality and loyalty, particularly through trust, recall, and sentiment. This study contributes to AI marketing research by validating the mediating role of brand perception and offers practical insights for Philippine businesses to prioritize robust and creative AI outputs while cultivating consumer trust.
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