Algorithmic Touchpoints: Investigating AI’s Role in Shaping Customer Experience and Relationship Quality at Zara

Abstract

This research intends to understand how artificial intelligence (AI) impacts customer experience and their relationship quality with Zara UK in the fashion retail context. The study utilizes Customer Relationship Management (CRM) Theory and the Task-Technology Fit (TTF) Model. It seeks to examine relationships between AI (e.g., chatbots, personalization recommendations, smart fitting rooms) either enhance customer shopping experience and build customers' relationships with Zara. A quantitative survey was conducted with 312 Zara customers from major cities in the UK, and the data was analysed using the SPSS PROCESS macro. The findings show that AI usage resulting in enhanced customer experience has significant impact on relationship quality. Here, customer experience plays a mediating role between AI use and the relationship construct. Therefore, when AI tools are designed geared towards customers' needs, the interaction benefits can improve customer convenience and build on their trust and loyalty with Zara. So, the findings could provide practical implications for fashion retailers looking to implement a digital strategy, whilst keeping in mind digital versus personal interaction experiences