SMART RETAILING IN INTERNET COMMERCE: AN AI-ENABLED CUSTOMER-CENTRIC SERVICE FRAMEWORK
DOI:
https://doi.org/10.69980/jns7m743Keywords:
Artificial Intelligence, Internet Commerce, Smart RetailingAbstract
This conceptual paper examines AI-enabled smart retailing as a customer-facing service transformation in Internet commerce rather than as a narrow technological or operational innovation. Drawing on a selective, theory-driven synthesis of services marketing, smart retailing, AI-enabled marketing, customer experience, service-dominant logic, human–AI interaction, and responsible-AI research, it develops a three-layer framework linking AI-enabled service capabilities, customer-experience mechanisms, and Internet-commerce outcomes. The framework identifies three capability groups—algorithmic personalisation and decision support, AI-mediated service interaction, and predictive service intelligence—and four evaluative mechanisms: decision value, interaction quality, transaction confidence, and algorithmic legitimacy. These mechanisms shape customer satisfaction, engagement, service-recovery effectiveness, platform trust, relationship quality, continuance intention, value co-creation, and inclusive service value. Human–AI governance, including privacy protection, transparency, fairness, customer control, human review, and digital accessibility, is treated as a boundary condition that determines whether AI-enabled services are perceived as trustworthy and customer-centred or as intrusive, opaque, unfair, and exclusionary. The paper contributes to Internet-commerce research by repositioning AI as a service-enabling capability and by explaining how customer evaluations translate AI applications into commercial and relational outcomes. It also proposes a focused research agenda for empirical testing across e-commerce websites, mobile applications, online marketplaces, social-commerce platforms, and omnichannel systems.
References
1.Adanyin, A. 2024. “Ethical AI in Retail: Consumer Privacy and Fairness.” arXiv preprint arXiv:2410.15369.
2.Akaka, M. A., and S. L. Vargo. 2015. “Extending the Context of Service: From Encounters to Ecosystems.” Journal of Services Marketing 29 (6/7): 453–462. https://doi.org/10.1108/JSM-03-2015-0126.
3.Anderson, L., A. L. Ostrom, C. Corus, R. P. Fisk, A. S. Gallan, M. Giraldo, M. Mende, et al. 2013. “Transformative Service Research: An Agenda for the Future.” Journal of Business Research 66 (8): 1203–1210. https://doi.org/10.1016/j.jbusres.2012.08.013.
4.Anica-Popa, I., L. Anica-Popa, C. Rădulescu, and M. Vrîncianu. 2021. “The Integration of Artificial Intelligence in Retail: Benefits, Challenges and a Dedicated Conceptual Framework.” Amfiteatru Economic 23 (56): 120–136.
5.Cambria, E., Y. Li, F. Z. Xing, S. Poria, and K. Kwok. 2020. “SenticNet 6: Ensemble Application of Symbolic and Sub-symbolic AI for Sentiment Analysis.” In Proceedings of the 29th ACM International Conference on Information & Knowledge Management, 105–114. ACM.
6.Chatterjee, S., R. Chaudhuri, and P. Mikalef. 2022. “Examining the Dimensions of Adopting Natural Language Processing and Big Data Analytics Applications in Firms.” IEEE Transactions on Engineering Management 71 (7): 3001–3015. https://doi.org/10.1109/TEM.2022.3179981.
7.Davenport, T., A. Guha, D. Grewal, and T. Bressgott. 2019. “How Artificial Intelligence Will Change the Future of Marketing.” Journal of the Academy of Marketing Science 48 (1): 1–19. https://doi.org/10.1007/s11747-019-00696-0.
8.Davis, F. D. 1989. “Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology.” MIS Quarterly 13 (3): 319–340.
9.Dhama, A., A. Kaur, E. S. Döngül, and N. Singh. 2024. “Artificial Intelligence and Sustainable Green Fashion Industry.” In Handbook of Artificial Intelligence Applications for Industrial Sustainability, 74–91. CRC Press.
10. Fan, X., J. Xun, L. Dolega, and L. Xiong. 2025. “The Role of Augmented and Virtual Reality in Shaping Retail Marketing: A Meta-analysis.” Sustainability 17 (2): 728. https://doi.org/10.3390/su17020728.
11.Fisk, R. P., A. M. Dean, L. Alkire, A. M. Joubert, J. Previte, N. Robertson, and M. S. Rosenbaum. 2018. “Design for Service Inclusion: Creating Inclusive Service Systems by 2050.” Journal of Service Management 29 (5): 834–858. https://doi.org/10.1108/JOSM-05-2018-0121.
12.Ghosh, I., M. K. Sanyal, and R. K. Jana. 2020. “An Ensemble of Ensembles Framework for Predictive Analytics of Commodity Market.” In 2020 4th International Conference on Computational Intelligence and Networks (CINE), 1–6. IEEE. https://doi.org/10.1109/CINE48547.2020.9050070.
13.Huang, M. H., and R. T. Rust. 2021. “A Strategic Framework for Artificial Intelligence in Marketing.” Journal of the Academy of Marketing Science 49 (1): 30–50. https://doi.org/10.1007/s11747-020-00749-9.
14.Huang, M. H., and R. T. Rust. 2022. “A Framework for Collaborative Artificial Intelligence in Marketing.” Journal of Retailing 98 (2): 209–223. https://doi.org/10.1016/j.jretai.2021.03.001.
15.Jarek, K., and G. Mazurek. 2019. “Marketing and Artificial Intelligence.” Central European Business Review 8 (2): 46–55. https://doi.org/10.18267/j.cebr.213.
16.Jia, X., X. Zhao, W. Tao, and S. Ahn. 2024. “From Exclusion to Connection: The Role of Anthropomorphic Chatbots in Shaping Customer Responses Post-social Exclusion.” Journal of Internet Commerce 23 (3): 205–232. https://doi.org/10.1080/15332861.2024.2375965.
17.Kaplan, A. 2020. “Retailing and the Ethical Challenges and Dilemmas behind Artificial Intelligence.” In Retail Futures: The Good, the Bad and the Ugly of the Digital Transformation, 181–191. Emerald Publishing Limited.
18.Kohli, A. K., B. J. Jaworski, and N. Shabshab. 2019. “Customer Centricity: A Multi-year Journey.” In Handbook on Customer Centricity, 14–42. Edward Elgar Publishing.
19.Korenyuk, D. 2024. “Strategic Challenges in Retail Sales.” Foreign Trade: Economics, Finance, Law 136 (5): 87–97.
20.Kumar, S., R. Jain, and A. Sharma. 2025. “Anthropomorphic Artificial Intelligence Drives Consumer Behavior: Comprehensive Literature Review and Research Agenda.” Journal of Internet Commerce 24 (4): 185–223. https://doi.org/10.1080/15332861.2025.2542138.
21.Kumar, V., A. R. Ashraf, and W. Nadeem. 2024. “AI-powered Marketing: What, Where and How?” International Journal of Information Management 77: 102783. https://doi.org/10.1016/j.ijinfomgt.2023.102783.
22.Lemon, K. N., and P. C. Verhoef. 2016. “Understanding Customer Experience throughout the Customer Journey.” Journal of Marketing 80 (6): 69–96. https://doi.org/10.1509/jm.15.0420.
23. Ligthart, A., C. Catal, and B. Tekinerdogan. 2021. “Systematic Reviews in Sentiment Analysis: A Tertiary Study.” Artificial Intelligence Review 54: 4997–5053. https://doi.org/10.1007/s10462-021-09973-3.
24.Mahmoud, A., S. Tehseen, and L. Fuxman. 2020. “The Dark Side of Artificial Intelligence in Retail Services Innovation.” In Advances in Intelligent Systems and Computing, 201–210. Springer. https://doi.org/10.1108/978-1-83867-663-620201019.
25. Martin, N., C. Matt, C. Niebel, and K. Blind. 2019. “How Data Protection Regulation Affects Startup Innovation.” Information Systems Frontiers 21 (6): 1307–1324. https://doi.org/10.1007/s10796-018-9878-3.
26.Mikalef, P., and M. Gupta. 2021. “Artificial Intelligence Capability: Conceptualization, Measurement Calibration and Empirical Study on Its Impact on Organizational Creativity and Firm Performance.” Information & Management 58 (3): 103434. https://doi.org/10.1016/j.im.2020.103434.
27.Mikalef, P., N. Islam, V. Parida, H. Singh, and N. Altwaijry. 2023. “Artificial Intelligence (AI) Competencies for Organizational Performance: A B2B Marketing Capabilities Perspective.” Journal of Business Research 164: 113998. https://doi.org/10.1016/j.jbusres.2023.113998.
28. Mirza, J. B., M. M. Hasan, R. Paul, M. R. Hasan, and A. I. Asha. 2025. “AI-driven Business Intelligence in Retail: Transforming Customer Data into Strategic Decision-making Tools.” AIJMR-Advanced International Journal of Multidisciplinary Research 3 (1).
29. Mishra, S., A. Mishra, A. Dubey, and Y. K. Dwivedi. 2024. “Virtual Reality in Retailing: A Meta-analysis to Determine the Purchase and Non-purchase Behavioural Intention of Consumers.” Industrial Management & Data Systems 124 (1): 212–252. https://doi.org/10.1108/IMDS-05-2023-0336.
30.Mogaji, E., and N. P. Nguyen. 2022. “Managers’ Understanding of Artificial Intelligence in Relation to Marketing Financial Services: Insights from a Cross-country Study.” International Journal of Bank Marketing 40 (6): 1272–1298. https://doi.org/10.1108/IJBM-02-2022-0074.
31.Nguyen, A., S. Lamouri, R. Pellerin, S. Tamayo, and B. Lekens. 2022. “Data Analytics in Pharmaceutical Supply Chains: State of the Art, Opportunities, and Challenges.” International Journal of Production Research 60 (22): 6888–6907.
32.Nguyen, K. M., N. T. Nguyen, N. T. Q. Ngo, N. T. H. Tran, and H. T. T. Nguyen. 2024. “Investigating Consumers’ Purchase Resistance Behavior to AI-based Content Recommendations on Short-video Platforms: A Study of Greedy and Biased Recommendations.” Journal of Internet Commerce 23 (3): 284–327. https://doi.org/10.1080/15332861.2024.2375966.
33.Nwabekee, U. S., F. Okpeke, and A. E. Onalaja. 2025. “Modeling AI-enhanced Customer Experience: The Role of Chatbots and Virtual Assistants in Contemporary Marketing.” World Scientific News 203: 54–77.
34.Obermeyer, Z., B. Powers, C. Vogeli, and S. Mullainathan. 2019. “Dissecting Racial Bias in an Algorithm Used to Manage the Health of Populations.” Science 366 (6464): 447–453. https://doi.org/10.1126/science.aax2342.
35. Pantano, E. 2020. “Non-verbal Evaluation of Retail Service Encounters through Consumers’ Facial Expressions.” Computers in Human Behavior 111: 106448. https://doi.org/10.1016/j.chb.2020.106448.
36.Parasuraman, A. 2000. “Technology Readiness Index (TRI): A Multiple-item Scale to Measure Readiness to Embrace New Technologies.” Journal of Service Research 2 (4): 307–320.
37.Parasuraman, A., V. A. Zeithaml, and L. L. Berry. 1988. “SERVQUAL: A Multiple-item Scale for Measuring Consumer Perceptions of Service Quality.” Journal of Retailing 64 (1): 12–40.
38.Sarna, N. J., F. A. Rithen, U. S. Jui, S. Belal, A. Amin, T. K. Oishee, and A. M. Islam. 2025. “AI Driven Fraud Detection Models in Financial Networks: A Review.” IEEE Access.
39.Seranmadevi, R., and A. Kumar. 2019. “Experiencing the AI Emergence in Indian Retail: Early Adopters Approach.” Management Science Letters 9 (1): 33–42.
40.Shah, D., R. T. Rust, A. Parasuraman, R. Staelin, and G. Day. 2006. “The Path to Customer Centricity.” Journal of Service Research 9 (2): 113–124. https://doi.org/10.1177/1094670506294666.
41.Tax, S. S., S. W. Brown, and M. Chandrashekaran. 1998. “Customer Evaluations of Service Complaint Experiences: Implications for Relationship Marketing.” Journal of Marketing 62 (2): 60–76. https://doi.org/10.1177/002224299806200205.
42.Vargo, S. L., and R. F. Lusch. 2004. “Evolving to a New Dominant Logic for Marketing.” Journal of Marketing 68 (1): 1–17. https://doi.org/10.1509/jmkg.68.1.1.24036.
43.Voorhees, C. M., P. W. Fombelle, Y. Grégoire, S. Bone, A. Gustafsson, R. Sousa, and T. Walkowiak. 2017. “Service Encounters, Experiences and the Customer Journey: Defining the Field and a Call to Expand Our Lens.” Journal of Business Research 79: 269–280. https://doi.org/10.1016/j.jbusres.2017.04.014.
44.Wirtz, J., P. G. Patterson, W. H. Kunz, T. Gruber, V. N. Lu, S. Paluch, and A. Martins. 2018. “Brave New World: Service Robots in the Frontline.” Journal of Service Management 29 (5): 907–931. https://doi.org/10.1108/JOSM-04-2018-0119.
45.Zhang, J. J. Y., A. Følstad, and C. A. Bjørkli. 2023. “Organizational Factors Affecting Successful Implementation of Chatbots for Customer Service.” Journal of Internet Commerce 22 (1): 122–156. https://doi.org/10.1080/15332861.2021.1966723
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Dr. Dipneet Saini, Dr. Neelam Sharma

This work is licensed under a Creative Commons Attribution 4.0 International License.




