THE IMPACT OF DYNAMIC AI-DRIVEN PRICING PERCEPTION ON CONSUMER TRUST AND PURCHASE INTENTION IN INDONESIAN E-COMMERCE: A PLS-SEM APPROACH

Description

Abstract— The quick uptake of AI in e-commerce has transformed pricing strategies with AI-based dynamic pricing systems that adjust prices in real-time based on consumer behaviour and market conditions. These algorithms improve personalisation and income optimisation, but they also cast question on customer fairness and trust. This study examines the effect of perceived AI-based dynamic pricing on purchase intentions in the Indonesian e-commerce scenario using perceived price fairness and trust as explanatory mechanisms. A structural model incorporating direct and indirect interactions is developed and tested using partial least squares structural equation modelling (PLS-SEM).Indonesia Being the biggest digital economy in South-east Asia, it offers a pertinent emerging market environment with rapid e-commerce growth and great price sensitivity. The results should provide light on whether AI-driven pricing influences purchase intention directly or indirectly through the development of trust and fairness perception. The work offers management implications for creating transparent and trust-enhancing pricing strategies in developing digital marketplaces and advances the application of Price Fairness Theory and Trust Theory to AI-mediated marketplace contexts.

Steps to reproduce

The dataset was collected through an online questionnaire distributed to respondents. The questionnaire measured variables related to Social Media usage and Digital Collaboration. Responses were exported and compiled into an Excel spreadsheet for analysis.

Institutions

• Binus University

  Jakarta, Jakarta

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