AI-Powered Personalization and Privacy Concern as Drivers of E-Loyalty: The Mediating Role of Online Trust in TikTok Shop

Abstract

This study examines the effects of perceived AI personalization and privacy concern on e-loyalty through online trust among 200 TikTok Shop users in Indonesia. Data were collected using purposive sampling and analysed with PLS-SEM through SmartPLS 3. The results show that perceived AI personalization significantly reduced online trust and e-loyalty, while privacy concern also negatively affected both variables. Online trust had a positive effect on e-loyalty and partially mediated the effects of perceived AI personalization and privacy concern. The model explained 36.1% of the variance in online trust and 46.1% of the variance in e-loyalty. These findings suggest that highly personalized recommendations may be perceived as intrusive when users become more aware of behavioural tracking and personal-data collection.