AI-DRIVEN SOCIAL MEDIA MARKETING AND CONSUMER PURCHASE INTENTION: EVIDENCE FROM ELECTRONICS BRANDS IN PAKISTAN

This research investigates the role of AI-based social media advertising in shaping consumer purchase intention for electronic home appliances in Pakistan. The study also examined the moderating role of perceived risk and how consumers react to AI-driven marketing initiatives in a developing country like Pakistan. A structured survey questionnaire was employed in a quantitative research design to study 224 consumers in Karachi, Pakistan. Measurement scales were modified based on previous research and were used to measure such constructs as the quality of the content, personalization, customer engagement, trust towards AI, perceived risk and intention to purchase. The collected data were analyzed using SmartPLS, Structural Equation Modeling (SEM) was used to test the hypothesized relationships.The findings reveal that the quality of the content, AI-driven personalization, customer engagement and trust in AI-driven marketing has positive and significant impact on the purchase intention. Perceived risk moderates these relationships, weakening the effects when high (e.g., for personalization), highlighting risk's role in attenuating AI-related benefits. Furthermore, consumers' beliefs about security and uncertainty would reduce the success of an AI-based marketing approach in the home appliance industry. The study was conducted among consumers in Karachi, Pakistan, and therefore, the generalizability of the findings may be restricted to the country. Future studies may extend to other parts of the world, adopt longitudinal designs, and examine other moderating factors, including cultural values and digital literacy. Practitioners can use these insights to understand the need to mitigate risk perceptions by proposing clear communication channels, safe money transfers, and high-quality after-sales service when implementing AI-based marketing activities. Social media applications like Facebook, Instagram and TikTok provide valuable opportunities for brands to exploit AI to drive consumer engagement, but trust and perceived risk are key factors that determine success. The proposed study addresses the paucity of literature on AI-driven social media marketing in emerging economies. By focusing on electronic home appliances in Pakistan, this study offers a new contextual perspective and introduces perceived risk as a moderator, expanding the theory and providing information that marketers can consider when digitally transforming markets. Keywords: Content Quality, Personalization through AI, Customer Engagement, Trust in AI- Driven Marketing, Perceived Risk, Purchase intention.