A STUDY ON THE IMPACT OF ARTIFICIAL INTELLIGENCE-DRIVEN DIGITAL MARKETING ON CUSTOMER ATTRACTION IN CHENNAI CITY RESTAURANTS

Abstract

Artificial Intelligence (AI) has transformed digital marketing by enabling businesses to deliver personalised, data-driven, and automated customer experiences. In the restaurant industry, AI-driven digital marketing tools such as personalised advertisements, chatbots, social media analytics, recommendation systems, customer data analytics, and automated marketing communication are increasingly being used to attract and engage customers. The present study aims to examine the impact of AI-driven digital marketing on customer attraction in Chennai City restaurants.

The study adopted a descriptive research design and utilised both primary and secondary data. Primary data were collected through a structured questionnaire administered to 180 restaurant customers in Chennai City using the proportionate random sampling technique. The collected data were analysed using Percentage Analysis, Mean Score Analysis, Independent Sample t-Test, Chi-Square Test, Analysis of Variance (ANOVA), Correlation Analysis, and Multiple Regression Analysis.

The findings reveal that customers possess a high level of awareness and favourable perceptions regarding AI-driven digital marketing practices. Personalised advertisements, social media analytics, recommendation systems, and customer data analytics significantly influence customer attraction and restaurant selection decisions. The study also found significant associations between demographic variables and customer awareness of AI-driven digital marketing. Correlation analysis indicated a strong positive relationship between AI-driven digital marketing factors and customer attraction dimensions. Multiple regression analysis confirmed that social media analytics, personalised advertisements, and customer data analytics are the most influential predictors of customer attraction and restaurant selection decisions.

The study concludes that AI-driven digital marketing has a significant positive impact on customer attraction in Chennai City restaurants. Effective adoption of AI-powered marketing strategies enhances customer awareness, engagement, visit intention, and restaurant preference, thereby improving restaurants' competitive advantage and supporting business growth in an increasingly digital environment.