Factors affecting customer engagement and brand loyalty in vietnam fmcg the moderation of artificial intelligence

A 435 valid sample was used in this study to assess the influence of self - congruity, social influence, economic benefits, information seeking, brand warmth, brand activism, social medi

1

Research rationale

Increasingly, brands recognize that their revenue relies on selling more to existing customers, making cross-selling a strategic goal, as seen with Wells Fargo's impressive household cross-selling ratio of 5.70 financial products, which accounts for over 80% of its revenue Consequently, both academics and industry professionals are focusing on consumer engagement, as building brand loyalty and a strong brand image are crucial in today's globalized and competitive market However, many businesses face challenges, such as uncertainties regarding the investment in brand development and the effectiveness of attracting and retaining loyal customers Brand loyalty emerges from positive customer experiences, leading to satisfaction with product quality and brand benefits Effective consumer engagement drives increased sales, competitive advantage, and stronger relationships between businesses and consumers By maintaining customer engagement throughout the buying process, brands can enhance loyalty and meet the expectations of B2B customers.

Brand loyalty is fostered through strong bonds and relationships between brands and customers, as suggested by Gustafsson et al (2005) It develops when consumers are satisfied with a brand's products and services, leading to trust and repeat purchases, thereby reducing the likelihood of switching to competitors Research indicates that customer satisfaction and trust significantly influence loyalty (Hwang et al., 2020), while customer engagement is positively correlated with brand loyalty (Kosiba et al., 2018) Loyalty reflects a deep commitment to consistently repurchase from a brand (Oliver, 1999), whereas customer engagement encompasses the relationship beyond transactions (So et al., 2016) Highly engaged customers show increased affection for a brand, reinforcing their loyalty (So et al., 2014; Vivek et al., 2012) Additionally, managing product and brand levels can enhance brand trust, ultimately driving loyalty (Chaudhuri & Holbrook, 2001) Engaged consumers exhibit satisfaction, loyalty, emotional connections, trust, and commitment, influenced by their interactive experiences with online brand communities (Brodie et al., 2013) Thus, it is reasonable to assert that consumer engagement positively impacts brand loyalty, which serves as our primary hypothesis for testing.

Social media platforms provide users with significant opportunities to engage with businesses, prompting companies to invest in these channels to enhance their overall communication strategies In Sri Lanka, Facebook stands out as the most popular social media platform among marketers, solidifying its status as the leading social networking site.

The economy is constantly evolving, with consumer styles and preferences shifting in response to the latest trends, largely influenced by social media Coty’s CEO, Camillo Pane, highlighted the rapid pace of brand production, noting that the business landscape is becoming increasingly complex This is especially relevant for FMCG companies, which can no longer rely solely on loyal customers as they once did As consumer tastes continue to change with the evolution of the Internet, it raises the question of whether customer engagement remains consistent or if the trend-driven preferences impact brand loyalty.

1995 or later are referred to as Generation z, also known as digital natives, iGeneration, screenagers, post-millennials, homeland generation, and tweens (Bassiouni and Hackley,

Born into a hyper-connected world, this generation has never experienced life without the internet They are characterized by their high levels of education, technological savvy, and frequent engagement with technology.

2016) (Priporas et al., 2017) Generation z presents a problem for marketers because of the way they behave in comparison to Generations Y and X.

The younger generation demands more from their favorite brands, prioritizing overall experience over brand loyalty (Williams and Page, 2011) We are currently witnessing a golden era of AI, where advancements in technology make once sci-fi concepts accessible to the public The COVID-19 pandemic has accelerated AI's integration into the economy, enhancing interest in technology and customization across sectors Brands are now adopting innovative strategies to engage customers, exemplified by digital initiatives like Parfums-Givenchy’s launch on Animal Crossing Additionally, platforms like TikTok are revolutionizing the beauty industry, enabling marketers to connect with consumers through AI-powered products, augmented reality, and 3-D experiences, creating an inviting digital landscape.

Vietnam is approaching a critical juncture in its development, as highlighted by the World Bank Faced with labor and capital shortages, the country must focus on enhancing productivity to drive GDP growth, necessitating a substantial boost in domestic innovation capacity Since 2010, the significance of research, technology, and innovation has markedly increased in Vietnam's socioeconomic development Positioned in one of the world's most dynamic regions and attracting substantial foreign investment, Vietnam is poised for a transformative growth trajectory.

Vietnam has made significant strides in AI readiness, climbing seven positions in the Government AI Readiness Index 2022 to rank 6th among ASEAN countries and 55th globally, according to Oxford Insights Given these advancements, it is crucial for businesses to leverage AI innovation as a vital tool for enhancing customer engagement and fostering brand loyalty.

Limited research exists on the moderating role of AI innovation in the relationship between social customer engagement and brand loyalty, particularly in Vietnam This study is essential to enhance the existing knowledge base and provide valuable insights for Vietnamese brands striving for leadership in the economy.

Research objective

To explore and analyze which factors impact customer engagement on social media platforms, the effect of customer engagement on brand loyalty, the moderating role of artificial intelligence (AI).

- Which factors belong to brand attributes affecting customer engagement on social media platform?

- How customer engagement impacts to brand loyalty in Vietnam FMCG?

- How artificial intelligence moderates the relationship between customer engagement and brand loyalty?

Research methods

This study dedicated time to reviewing research publications and proceedings to enhance the purposefulness, novelty, urgency, and feasibility of our research Additionally, we received valuable insights from subject-matter experts to further inform our work.

The research employed a quantitative methodology, utilizing Google Forms for an online survey to efficiently gather diverse data Data analysis was conducted using Smart-PLS software version 4, with responses measured on a 5-point Likert scale ranging from strong disagreement to strong agreement.

Object and scope of research

Research object includes factors affecting customer engagement on social media platforms of young generation, and brand loyalty in Vietnam FMCG industry. Ỉ.4.2 Research scope

Young generation from 18 to 30 years old, living in Ho Chi Minh city different gender, age group, income, and education level.

Study was conducted in Ho Chi Minh city from October 2023 to December 2023.

Research novelty

The study aims to provide valuable insights into customer engagement, brand loyalty, and the role of artificial intelligence While extensive research has been conducted on social media customer engagement by various global experts, previous studies predominantly concentrated on key factors like information seeking, social influence, entertainment, and economic benefits (Jayasingh, 2019; André, 2015; Azar et al., 2016).

Our research introduces two significant innovations First, we will reconstruct the research model by incorporating essential elements from prior studies while also analyzing new, relevant factors that align with contemporary consumer trends, such as self-congruity, brand activism, brand warmth, and social media marketing Additionally, the moderating variable of Artificial Intelligence (AI) plays a crucial role in our research model.

The contribution of research

On the theoretical aspect, this research summarizes crucial theories and information related to customer engagement, research models and research methods.

A recent study investigates the key factors influencing customer engagement on social media platforms and examines how this engagement affects brand loyalty within Vietnam's fast-moving consumer goods (FMCG) sector Additionally, the research highlights the moderating role of artificial intelligence (AI) in enhancing customer engagement and fostering brand loyalty.

Chapter 1 outlines the research rationale, objectives, scope, and novelty, while detailing the study's contribution The study is structured into five sections: Section 1 introduces the research topic, objectives, methodology, and contributions; Section 2 provides a critical review of the theoretical framework and related studies; Section 3 elaborates on the research model, data, and econometric methods; Section 4 presents empirical results and discussions; and Section 5 concludes with research implications, limitations, and future directions.

7

Theoretical basis

2 ỉ I Customer engagement on social media platforms

Customer engagement is a fundamental concept in marketing that refers to the positive influence experienced by customers during interactions with brands (Brodie et al., 2011; Hollebeek et al., 2014) As social beings with emotions and high communication capabilities, customers engage in various activities driven by their curiosity and interests, leading to increased satisfaction and fulfillment (Brodie et al., 2013; Dessart et al., 2015, 2016) This dynamic interaction enhances the overall customer engagement experience, making it essential for brands to foster meaningful connections with their audience.

Customer engagement is fundamentally built on three key components: cognitive, emotional, and behavioral (Brodie et al 2011, Brodie et al 2013) Numerous researchers have expanded on these concepts as the world evolves (Phillips & McQuanie, 2010) This study will briefly explore these three elements, as they will serve as the foundation for the subsequent chapters.

Since the advent of the Internet, social media platforms like Yahoo, Facebook, and Twitter have emerged, playing a crucial role in connecting brands with their target customers These platforms facilitate meaningful interactions and strengthen relationships between businesses and consumers.

In today's digital landscape, platforms enable customers to engage with targeted posts through comments and chats, enhancing communication between brands and consumers This interaction allows businesses to effectively meet consumer needs and deliver their products and services efficiently (Obilo et al., 2021).

Recent developments in social media platforms, such as TikTok Shop and Facebook Markets, have significantly enhanced user engagement Research by Han and Kim (2016) highlights that targeted social media platforms, particularly in the clothing sector, have seen the highest levels of consumer spending and positive feedback regarding these new features.

The dramatic rise in social media usage among individuals, corporations, and governments has transformed it into a platform where consumers can voice their opinions on products and services (Kaplan & Haenlein, 2010) This online "soapbox" not only fulfills personal expression but also significantly influences brand choices, especially among the younger generation who are swayed by their peers (Chen et al., 2011) As social media activity surges due to recommendations and user-generated content, marketing literature increasingly focuses on the importance of consumer engagement within this digital landscape (Dessart et al., 2015).

The 4.0 Revolution has set up an important milestone when AI is strongly affected to human’s lifestyles In definition ofAI, according to Russell & Norvig (2002) is system which mimic some or any parts of human features (voices, learning, some skills and mindsets, etc.) in order to support human or replace human in some minor or less important/ need processes (Dwivedi, Hughes et al., 2021) These are also the same as the two classifications of AI followed by Hossein Hassani and his partners (2020): Al and AI- enabled machine and technology-oriented approach.

AI now is appeared in Text-driven Chatbot services (i.e., Bot Ban Hang made in Vietnam, ALIME of Taobao, etc.), voice-driven digital assistants (i.e., Maika in Vietnam, Alexa, Siri, etc.).

AI chatbots are virtual services that utilize real datasets from various sources to provide personalized recommendations and directions for customers (Xu et al., 2020) They are widely used by brand administrators to understand individual customer needs, expectations, trends, and characteristics through real-time surveys Additionally, chatbots can serve as a secondary advisor when administrators are unavailable or offline (Kim et al.).

In 2020, chatbots significantly enhanced customer engagement, contributing to 26% of all shopping transactions and generating a revenue of $430.9 million (Forbes, 2019; Grand View Research, 2021).

Chatbots, developed through past data collection, currently exhibit less flexibility than humans in market consumption, leading to a negative correlation between customer acceptance and the revenue generated by these AI systems (Castelo et al., 2019; Schmitt, 2020) This highlights the urgent need for researchers and digital engineers in R&D to enhance chatbot capabilities to be more human-like Studies by Zhu et al (2022) and Sung et al (2021) demonstrate that improved training experiences for artificial intelligence can significantly increase customer acceptance.

Relevant theories

2.2.Ỉ Theory of reasoned action (TRA)

Ajzen and Fishbein developed TRA in 1967, and it underwent more research and modification in the 1970s.

Behavioral intention is the root cause of behavior most directly (what one intends to do or not to do).

Attitude, which reflects an individual's evaluation of a behavior, and subjective norm, representing the perception of what significant others believe one should do, both play crucial roles in shaping behavioral intention Each factor can serve as a key determinant of specific behaviors.

A person's attitude is shaped by their beliefs regarding the likelihood of various outcomes and their evaluations of those outcomes as positive or negative Additionally, subjective norms are affected by an individual's perceptions of what important people in their lives expect them to do and their motivation to align with those expectations.

Figure 2.1 Theory of reasoned action

The Technology Acceptance Model (TAM), developed by Davis in 1989, has been extensively tested and widely applied in various contexts Grounded in the Theory of Reasoned Action (TRA) and broader social psychology principles, TAM elucidates users' intentions to adopt technology, as established by Fishbein and Ajzen in 1970.

The article focuses on two key concepts: perceived usefulness and perceived ease of use Perceived usefulness is defined as the extent to which an individual believes that utilizing a specific system will enhance their job performance In contrast, perceived ease of use refers to the belief that using a particular system will require minimal physical or mental effort.

Stakeholder theory posits that a company's success hinges on meeting both economic objectives, such as profit maximization, and non-economic goals, including corporate social performance, by addressing the needs and preferences of its stakeholders (Pirsch, Gupta, & Grau, 2007).

Every company has core and secondary stakeholders, with primary stakeholders including owners, employees, clients, and suppliers Secondary stakeholders encompass a broader range of interested parties such as customers, the media, lobbyists, governments, courts, competitors, and the general public To ensure a company's ongoing existence, financial stability, and competitive edge, it is crucial to meet the needs of these stakeholders, fostering trust and loyalty among target customers (Mitchell, Agle, & Wood, 1997).

Self-congruity theory suggests that customer behavior is significantly impacted by the alignment between a customer's self-concept and their perception of a brand Customers tend to favor brands that resonate with their self-image, leading to more positive attitudes towards these congruent brands compared to those that do not align as closely.

Helgeson & Supphellen, 2004) Therefore, a customer is more likely to have a positive opinion of a brand if their self-concept is more in line with that of the brand.

Actual self-congruity, ideal self-congruity, social self-congruity, and ideal social self-congruity stem from four distinct self-concept types: actual self, ideal self, social self, and ideal social self, as identified by Sirgy in 1982 Research indicates that the most compelling evidence for both actual and ideal self-congruity is present in studies focused on self-congruity.

2.2.5 Uses and gratification theory (UGT)

The "Uses and Gratifications" (U&G) theory is a socio-psychological framework that posits individuals make active, rational, and goal-oriented choices regarding media consumption By identifying the gratifications or rewards sought by users, this theory seeks to understand why engaged individuals utilize various aspects of social media Historically, U&G has been applied to traditional media forms such as television, magazines, and radio Since the early 2000s, its relevance has extended to the digital landscape, providing insights into internet usage, virtual communities, and, more recently, social networks.

Review of previous research

Customer brand engagement in social networking sites and its effect on brand loyalty: To understand why customers interact with Facebook brand pages, Jayasingh

In a 2019 study, the uses and gratification theory, social influence theory, and technology adoption models were employed to analyze customer interactions with brand pages on Facebook Utilizing both qualitative and quantitative methods, researchers collected data from 100 brands' Facebook activities and conducted online surveys with 334 respondents The study revealed that the primary driver of customer engagement with brand pages is the need for information, while social influence and economic incentives also play significant roles in enhancing participation on social networking sites Furthermore, a notable correlation was found between customer engagement and brand loyalty, leading to the development of a new framework for understanding customer brand interaction behavior on platforms like Facebook.

Figure 2 4 Research model of Jayasingh

Nguyen, Nguyen & Duong (2020) explored the relationship between social media marketing, customer engagement, and purchase intention through a survey of 300 participants who are active on social media Utilizing regression analysis, the study found a significant correlation between social media marketing and both customer engagement and purchase intention Additionally, it revealed that social media marketing serves as a mediating factor in the relationship between customer engagement and purchase intention This research contributes a model that assists researchers and practitioners in understanding the impact of social media marketing on the purchasing intentions of Vietnamese consumers.

Figure 2 5 Research model of Nguyen, Nguyen & Duong

Ajiboye, Harvey, and Resnick (2019) conducted a systematic literature review to analyze customer engagement behavior (CEB) on social media platforms, identifying five key antecedents: social links, ownership-value, information search, involvement, and functionality These factors are crucial for driving business interactions on social media Their review represents the first comprehensive secondary data analysis of CEB origins in this context Additionally, the authors highlighted three epistemological tensions within the existing literature and provided recommendations for future research to deepen the understanding of CEB in relation to social media.

Figure 2 6 Research model of Ajiboye, Harvey & Resnick

Factors affecting customer engagement on online social networks: self- congruity, brand attachment, and self-extension tendency: Rabbanee, Roy & Spence

A study conducted in 2020 explored the relationship between self-congruity with a brand and brand attachment, highlighting the influence of real, ideal, and social self-concepts The research involved 282 students from a large Australian university and 342 additional participants, revealing that brand attachment is significantly impacted by two of the three self-congruity orientations This attachment subsequently affects users' engagement on social networking sites, such as liking, sharing, and commenting on Facebook Furthermore, the study identified self-extension tendency as a moderating factor in the relationship between self-congruity and brand attachment.

Figure 2 7 Research model of Rabbanee, Roy & Spence

A study by Bernritter (2015) examined the factors influencing online brand endorsements among 91 University of Amsterdam students using a 7-point Likert scale The findings revealed that brand warmth positively affects online endorsements, while brand symbolism plays a moderating role in this relationship However, neither brand competence nor brand symbolism directly influences customers' online brand endorsements.

Figure 2 8 Research model of Bernritter

Table 2 1 Summary of previous research

Customer brand engagement in social networking sites and its effect on brand loyalty - Jayasingh (2019)

Entertainment, trust, economic benefits, brand love, social benefits, social influence, information seeking - Customer engagement

The relationships of social media marketing, customer engagement and purchase intention - Nguyen, Nguyen

Social media marketing - Customer engagement

Customer engagement behavior on social media platforms: A systematic literature review - Ajiboye, Harvey &

Ownership value, information search, involvement, social links, functionality

Factors affecting customer engagement on online social networks: self- congruity, brand attachment, and self extension tendency - Rabbanee, Roy &

Self-congruity - Brand attachment - Self-extension tendency

Signaling warmth: How brand warmth Customer Brand symbolism, brand

Independent - Mediating - Moderating variables and symbolism affect customers' online brand endorsements - Bernritter

Research gap

While numerous experts have extensively examined customer participation on social media, there remain gaps in the research Most studies have focused on well-established factors such as information seeking, social influence, entertainment, and financial benefits (Jayasingh, 2019; André, 2015; Azar et al., 2016) However, with the rapid advancement of technology, particularly in artificial intelligence, this area has not been sufficiently explored in relation to consumer engagement on social media platforms.

Proposed research model

2.5.1 Research model information seeking, seif-congruily, brand activism, social media marketing, brand warmth, social impact, economic advantage are several of our team's 8 recommended elements that drive customer engagement on social media platforms Additionally, study examined the relationship between online customer involvement and brand loyalty, using artificial intelligence as a moderating factor To ensure the impartiality and applicability of this research, all these elements were supported by reliable references from earlier studies and sound advice from experts in the field Study additionally modified and added several significant aspects to the research to diversify it and possibly increase the reliability and value of the findings and recommendations.

Table 2 2 Summary of reference variables

The independent, dependent, mediating and moderating variables

Jayasingh (2019) Customer brand engagement in social networking sites and its effect on brand loyalty.

Recent studies have highlighted the significant influence of social media marketing on consumer behavior, particularly in the context of purchase intention and brand loyalty Choedon & Lee (2020) found that social media marketing activities enhance purchase intention through brand equity and social brand engagement, specifically within Korean cosmetic firms Similarly, Laksamana (2018) demonstrated that social media marketing positively impacts purchase intention and brand loyalty in Indonesia's banking industry These findings underscore the critical role of social media in shaping consumer decisions across various sectors.

Hennig (2021) Brand Activism as an Extension of Brand Identity and its Implications for Employer Branding.

Gray (2019) Brands take a stand for good: The effect of brand activism on social media engagement.

Rabbanee, Roy & Spence (2020) Factors affecting customer engagement on online social networks: self-congruity, brand attachment, and self extension tendency.

Xue et al (2020) Do brand competence and warmth always influence purchase intention? The moderating role of gender.

Kolbl el al (2020) Do brand warmth and brand

The independent, dependent, mediating and moderating variables

Sign Reference source competence add value to customers? A stereotyping perspective.

Jayasingh (2019) Customer brand engagement in social networking sites and its effect on brand loyalty.

Jayasingh (2019) Customer brand engagement in social networking sites and its effect on brand loyally.

Vo, Nguyen & Dang (2022) The role of social brand engagement on brand equity and purchase intention for fashion brands.

Rhajbal, Hilmi & Rhajbal (2021) Brand attachment, customer trust and customer engagement: What ranking of these links in the relational chain?

Helme-Guizon & Magnoni (2019) Customer brand engagement and its social side on brand- hosted social media: how do they contribute to brand loyalty?

Yin & Qiu (2021) AI technology and online purchase intention: Structural equation model based on perceived value.

Hwangbo et al (2020) Effects of 3d virtual “try-

The independent, dependent, mediating and moderating variables

Sign Reference source on" on online sales and customers' purchasing experiences.

Study proposed research hypotheses to demonstrate the connection between social customer engagement, brand loyally, and artificial intelligence by relying on evidence from other studies in this field.

Information seeking: is a process of obtaining information about products (Gironda

Customer engagement in online brand communities, particularly on platforms like Facebook, is significantly driven by the ability to seek and receive information about businesses, products, or brands (Korgaonkar, 2014; Azar et al., 2016) Consumers often follow brand pages to access product reviews, learn about offerings, and gather pre-purchase information (Whiting & Williams, 2013) For instance, in the fashion industry, social media allows customers to stay updated on new collections and promotions Research by Fernandes & Remelhe (2016) and Gao & Feng (2016) supports the notion that information seeking positively impacts customer engagement, leading to the hypothesis that enhanced access to brand information fosters greater online interaction.

Hypothesis Hl Information seeking has a positive effect on customer engagement in Vietnam FMCG

Self-congruity refers to the alignment between a brand's personality and a customer's self-concept, influencing their relationship with the brand (Kim, Lee & Ulgado, 2005) Customers often choose brands to express their ideal selves on social networking sites, allowing for self-expression that may not be possible in real life (Schau and Gilly, 2003) Those with strong emotional connections to self-expressive brands are more likely to participate in electronic word-of-mouth (eWOM) activities Customers develop positive attitudes toward brands that reflect their values, enabling them to convey their core beliefs and self-identity For example, Apple's iPhone, with its youthful and cool brand image, has gained popularity among young consumers Overall, customers are more likely to remain loyal to brands that align with their self-image, such as those embodying elegance or glamor.

Research from 2020 highlights that self-congruity has a positive effect on customer engagement on social networking platforms, especially Facebook Additionally, a study by Andonova, Miller, and Diamond in 2015 found a significant correlation between self-congruity and online customer engagement Based on these findings, the proposed hypothesis is established.

Hypothesis H2 Self - congruity has a positive effect on customer engagement in Vietnam FMCG

Brand activism is a values-driven strategy where businesses showcase their awareness of societal issues, influencing consumer decisions significantly; 64% of global customers support or oppose brands based on their stance on social and political matters As the importance of brand activism rises, companies are increasingly focusing their advertising campaigns on societal issues rather than just their products This approach fosters high customer engagement, with 70% of consumers willing to provide feedback on a brand's social responsibility efforts Social media plays a crucial role in amplifying brand visibility, positively impacting purchasing decisions, sales, and brand awareness Customers are particularly drawn to brands that prioritize eco-friendly practices and engage in nonprofit activities, reflecting their preferences through social media interactions Research indicates that brand activism enhances social brand engagement, highlighting its significance in today's market.

Hypothesis H3 Brand activism has a positive effect on customer engagement in Vietnam FMCG

Social media marketing is a prominent online marketing strategy that leverages societal culture to meet communication and branding objectives (Tuten, 2009) It has become the most favored form of digital marketing, inspiring theorists and marketers to explore related fields Recently, customer engagement has gained significant attention within this domain Social media offers various marketing activities, including customer relationship management, support, buyer research, lead generation, sales promotion, paid advertising, and branding According to Stelzner (2013), effective social media communication can enhance brand messaging, website traffic, search rankings, and customer loyalty Industry experts acknowledge that online social networks not only attract customers but also enhance product quality and brand identity (Forbes, 2015) Harris and Rae (2009) assert that social media marketing will play a crucial role in enhancing customer interaction and marketing strategies, particularly for businesses in Vietnam.

Research indicates that social media marketing significantly enhances social customer engagement (2020) and positively influences customer brand engagement (Kim & Ko, 2012) Additionally, Choedon & Lee (2020) found that social media activities contribute to increased social customer engagement Based on these findings, the proposed hypothesis is established.

Hypothesis H4 Social media marketing has a positive effect on customer engagement in Vietnam FMCG

Brand warmth encompasses qualities such as sincerity, friendliness, helpfulness, and enthusiasm, which significantly influence customer perceptions and behaviors (Fiske et al., 2002; Kervyn, Fiske & Malone, 2012) When customers perceive a brand as having good intentions, like environmental protection, they are more likely to view it as warm Research indicates that warmth is crucial in shaping people's emotional and behavioral responses, leading to favorable impressions (Fiske, Cuddy & Glick, 2007; Cuddy, Fiske & Glick, 2008) Customers interact with brands in a human-like manner, often likening online endorsements, such as liking a brand page, to forming friendships (Aggarwal & McGill, 2007) Consequently, warm and likable brands are more frequently recommended to others (Sherman, Lansford & Volling, 2006) This suggests that warmth is a key driver of online customer recommendations, with customers more inclined to engage with brands on social media that exhibit warmth (Bernritter, 2015) Thus, it is hypothesized that brand warmth positively impacts social customer engagement.

Hypothesis H5 Brand warmth has a positive effect on customer engagement in Vietnam FMCG

Social influence significantly impacts customer behavior on social networking sites (SNS), as it shapes their decisions to embrace and engage with specific brands (Curran and Lennon, 2011) Users leverage brands to construct their self-identity, and by 'liking' a brand on platforms like Facebook, they enhance their social engagement and influence others (Schau & Gilly, 2003) The presence of friends within a brand community often drives users to explore and support these brands, as they are motivated by social pressure and the desire to connect with peers (Coulter & Roggeveen, 2012; Gironda & Korgaonkar, 2014) Research indicates a positive correlation between social influence and customer brand engagement on social media, underscoring the importance of social dynamics in fostering brand loyalty (Jayasingh, 2019; André, 2015).

Hypothesis H6 Social influence lias a positive effect on customer engagement in Vietnam FMCG

Economic benefits pertain to the degree to which community members seek utilitarian rewards, such as financial incentives, time savings, promotional offers, merchandise, and awards, by actively participating in the community.

In recent years, Facebook brand pages have emerged as a powerful tool for businesses, offering financial incentives and various advantages to enhance brand-customer interactions (Tsai & Men, 2013) Brands leverage social media by providing promotions and incentives, such as shopping vouchers and personal points, through engaging activities like minigames and media campaigns Additionally, livestreaming on Facebook allows customers to interact with brands while accessing exclusive discounts Research by Azar et al (2016) and Jayasingh (2019) highlights that these economic benefits significantly boost customer engagement with brands on social platforms Thus, the proposed hypothesis is that economic incentives enhance brand engagement on Facebook.

Hypothesis H7 Economic benefits have a positive effect on customer engagement in Vietnam FMCG

Brand attachment (BAT) is an emotional bond between consumers and specific brands, rooted in Bowlby's attachment theory It comprises three key components: brand affection, which encompasses the positive emotions a brand evokes; brand passion, representing the intense favorable feelings associated with a brand; and brand connection, the sense of being linked or associated with the brand Research indicates that increasing "likes" on a company's Facebook page can boost sales, as customers often share images or stories about the brand to express their enthusiasm Additionally, commenting on a brand's Facebook page allows for further visibility among peers, enhancing consumer engagement through actions like liking, sharing, and commenting.

Hypothesis H8 Brandattachment has a positive effect on customer engagement in Vietnam FMCG

Social customer engagement involves fostering meaningful connections between customers' emotions and thoughts, enabling them to actively shape a brand's image without the necessity of physical transactions.

Social customer engagement encompasses customers' cognitive, emotional, and behavioral investments in brand interactions on social media, which are reflected through behaviors such as commenting, following, sharing, and liking The outcomes of customer participation on social media can be categorized into five main types: brand impacts, product effects, customer effects, content effects, and market effects Engaging with a brand community enhances customers' perceived value, leading to increased satisfaction and loyalty This familiarity and fondness for a brand foster brand loyalty, as demonstrated by Jayasingh (2019), who found a positive correlation between customer brand engagement and brand loyalty.

Hypothesis H9 Social customer engagement has a positive effect on brand loyalty in Vietnam FMCG

Artificial intelligence (AI): is characterized as intelligent action and behavior displayed by machines, computers, or robots for the benefit of people and organizations.

Research process

Research methodology

A preliminary qualitative analysis assessed the respondents' comprehension of the research topic and questionnaire in the online survey This evaluation served as the basis for refining the study by adding, modifying, and eliminating any incorrect elements that could impede the research process.

To enhance the quality and effectiveness of the research, a group discussion was conducted with eight customers from various social classes, including students and workers, in Ho Chi Minh City before the official survey This study aimed to evaluate the acceptability of the scales in the questionnaire and to ensure that the academic terminology used was easily understandable through the insights gained from the group discussion.

During the group discussion, the research team thoroughly reviewed the scales in the model with respondents, explaining their definitions and observed variables Overall, participants provided positive feedback on the factors identified in the study To enhance the survey's effectiveness, the team was motivated to revise the questionnaire by adding clarifications, making it easier for respondents to complete Additionally, new components were introduced to diversify the model and improve the study's applicability.

A quantitative preliminary survey was conducted involving eight residents of Ho Chi Minh City, including both students and employees The study utilized a Google Form online survey featuring a 5-point Likert scale to assess the respondents' comprehension of the research components, ranging from "Completely disagree" to "Agree."

5 - Completely agree) This provided study the chance to make a more appropriate adjustment.

I feel that in order to know more about a brand or store, I must like its page

I use Facebook to post questions because Facebook users provide me with better information than an Internet search

I think reading Facebook feed is informative

Content on social media is quite interesting

I find it easy to express my opinion on the brand's social media

Information on the brand's social media is up to date

Brands greatly contribute to the community

Brands have gender - focused campaigns This campaign seems to benefit the society

The personality of the brand is consistent with how I see myself

The personality of the brand is a mirror image of me

People who use the brand are like how I see myself

The brand is sincere The brand is enthusiastic The brand is friendly

I will share information and preferences about the brand with friends and family

I interact with the brand on Facebook to state my interests and preferences to my friends

My interaction with the brand on Facebook allows me to increase my social involvement

I interact with the brand on the fanpage to articulate my own concerns and preferences to my friends

It should be removed since it is quite similar with the first one

I interact with brands on Facebook in order to access discounts and promotions

To participate in competitions and games to win prizes

To get reward/free gifts

I share the brand's product experience on social networks

I participate in interaction activities with the brand on social networks

I follow the brand’s fanpage on social media

I am more likely to buy brands I follow

I will recommend the brand to others

If I lose a product of the brand, I will buy another product from the same brand

It is a brand that I enjoy using

I am very attracted to this brand

I would be upset if I could not find this brand

AI answers my questions as a customer service assistant

AI can recommend what I want based on my browsing habits

AI can help me accurately retrieve the goods I want by inputting voice

3D virtual try - on is quite good

This technology is primarily found on brand websites rather than social media platforms, making its removal advisable It is regarded as innovative and useful in enhancing user experience.

Variable Question Feedback recommendation in the future.

The study titled "The relationship between social customer engagement and brand loyalty of the Vietnamese young generation: The moderation of artificial intelligence" employed quantitative research methodologies to analyze the correlation between various variables This approach involved collecting numerical data through a Google Form, which garnered 416 responses from diverse participants in Ho Chi Minh City over a month-long period, encompassing different genders, age groups, income levels, and educational backgrounds Section 3.3.2 specifically discusses the results of the descriptive statistics Following data collection, the research team will thoroughly review the gathered data to assess the reliability of the proposed parameters using Cronbach's Alpha, and will apply partial least squares structural equation modeling (PLS) for further analysis.

- SEM) was then put to the test using Smart - PLS software version 4.

Design of research sample

There must be 200 observations for the research (Gorsuch, 1983) A minimum observation-to-variable ratio of 5:1 is also suggested by the sample-to-variable ratio 2018 (Hair et al.).

To ensure objectivity and accuracy, study decided to collect the data from 416 respondents in Ho Chi Minh City.

The survey sample reveals that 59.6% of respondents are female, surpassing the male proportion A significant majority, 54.3%, are employed as office staff, while students make up 29.8% and other workers account for 15.9% The age distribution shows that 40.4% of participants are between 23-30 years old, followed by 33.7% aged 18-22, and nearly 26% are aged 31 and older In terms of income, 53.4% of respondents earn between 11-15 million VND, while 33.7% have an income of 6-10 million VND, and nearly 13% fall into the higher income bracket.

Study allocated a significant amount of time to reading academic publications, research articles, and other online resources during the research process to find a reliable source of data for our study.

To gather essential data for our study, we utilized a Google Form featuring a Likert scale The survey's primary data is divided into two categories: the first section focuses on descriptive information regarding demographics, including gender, age group, income, and education levels, while the second section aims to explore the relationships among various variables.

3.3.4 Method of data analysis and processing

This study utilized a quantitative research methodology, employing SEM (Structural Equation Modeling) to test a complex structural model with both direct and indirect interactions The decision to use this approach was made to avoid systematic errors that could arise from using multiple regression techniques.

Structural Equation Modeling (SEM) emerged as a sophisticated tool for researchers to explore relationships between variables, building on earlier methods like multiple regression and exploratory factor analysis This study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to enhance the accuracy of predictions by minimizing errors affecting the dependent variable and improving the R² value, thereby providing more reliable results (Hair et al., 2016).

Official research model

After engaging in discussions with eight participants from diverse social classes in Ho Chi Minh City, our team incorporated valuable insights and expert advice to refine the study, focusing on key observable factors and elements.

Artificial intelligence is revolutionizing the shopping experience, particularly through the rise of 3D virtual try-on technology, which offers significant benefits for brands This technology enhances customer engagement by allowing users to virtually try on products, especially in the fashion industry, leading to increased shopping satisfaction For instance, L’Oreal's collaboration with Facebook to showcase new lipsticks on Instagram exemplifies how brands are leveraging this innovation Although still emerging in the Vietnamese market, the potential for virtual try-on technology to drive brand success is substantial as it continues to gain traction.

After consulting with experts, our study has decided to eliminate the variable "3D virtual try-on is quite good" due to its limited prevalence in Vietnam, which resulted in unexpected data collection errors Additionally, this technology is primarily utilized on brand websites rather than social media platforms, making its relevance to our research questionable.

In conclusion, 10 factors including dependent, independent, mediating, and moderating variables are used in our research There are 30 observed variables in total All of them have 3 observed variables.

I feel that in order to know more about a brand or store, I must like its page

Jayasingh (2019) Customer brand engagement in social networking sites and its effect on brand loyalty

I use Facebook to post questions because Facebook users provide me with better information than an Internet search

I think reading Facebook feed is informative

Content on social media is quite interesting

Choedon & Lee (2020) The effect of social media marketing activities on purchase intention with brand equity and social brand engagement: Empirical evidence from Korean cosmetic firms

I find it easy to express my opinion on the brand's social media

Information on the brand's social media is up to date

Brands greatly contribute to the community

Hennig (2021) Brand Activism as an Extension of Brand Identity and its Implications for Employer Branding

Brands have gender - focused campaigns

Gray (2019) Brands take a stand for good: The effect of brand activism on social media engagement.

This campaign seems to benefit the society

The personality of the brand is consistent with how I see myself

Rabbanee & Spence (2020). Factors affecting customer engagement on online social networks: self-congruity, brand attachment, and self-extension tendency.

The personalityof the brand is a mirror image of me

People who use the brand are like how

Xue et al (2020) explore the impact of brand competence and warmth on purchase intention, emphasizing the moderating role of gender Additionally, Kolbl et al (2020) examine whether brand warmth and competence provide value to customers from a stereotyping perspective Together, these studies highlight the significance of emotional and functional brand attributes in influencing consumer behavior.

I will share information about the brand with friends and family

Jayasingh (2019) Customer brand engagement in social networking sites and its effect on brand loyalty

I interact with the brand on Facebook to slate my interests and preferences to my friends

My interaction with the brand on Facebook allows me to increase my social involvement

I interact with brands on Facebook in order to access discounts and promotions

Jayasingh (2019) Customer brand engagement in social networking sites and its effect on brand loyalty

To participate in competitions and games to win prizes

To get reward/free gifts

I share the brand's product experience on social networks Vo, Nguyen & Dang (2022) The role of social brand engagement on brand equity and purchase intention for fashion brands

I participate in interaction activities with the brand on social networks

I follow the brand's fanpage on social media

I am more likely to buy brands I follow Helme-Guizon & Magnoni

(2019) Customer brand engagement and its social side on brand-hosted social media: how do they contribute to brand loyalty?

I will recommend the brand to others

If I lose a product of the brand, I will buy another product from the same brand

It is a brand that I enjoy using Rhajbal, Hilmi & Rhajbal (2021).

Brand attachment, customer trust and customer engagement: What ranking of these links in the relational chain?

I am very attracted to this brand

I would be upset if I could not find this brand

AI answers my questions as a customer service assistant Yin & Qiu (2021) AI technology and online purchase intention: Structural equation model based on perceived value

AI can recommend what I want based on my browsing habits

AI can help me accurately retrieve the goods I want by inputting voice

42

The scale-testing result

4 Ỉ.I Test the reliability scale and convergence scale

The study evaluates the reliability of the measurement scale using Cronbach's Alpha and composite reliability coefficients For the convergence scale, the Average Variance Extracted (AVE) must exceed 0.5, and outer loadings should be greater than 0.4 Results indicate that all factors in the research meet these criteria, with Cronbach's alpha coefficients ranging from 0.651 to 0.880, exceeding the 0.6 threshold Additionally, composite reliability coefficients fall between 0.805 and 0.926, surpassing the minimum of 0.7 The AVE coefficients range from 0.574 to 0.812, all above 0.5, and most outer loadings of the observed variables are greater than 0.7, with only one variable (IS1) below this threshold but still above 0.4, confirming the scale's convergence validity.

Table 4 1 Results of reliability test and convergence scale

The results confirm that discriminant validity is achieved, as indicated by the Fornell-Larcker criterion Specifically, the data presented in Table 4.2 demonstrates that the square root of the Average Variance Extracted (AVE) for each indicator exceeds the correlations between constructs, thereby validating the scale's discriminant validity (Fornell and Larcker, 1981).

.AI BAC BAT BL BW EB IS sc SCE SI SMM

Table 4.3 presents the HTMT values for the scales between concept pairs, which range from 0.029 to 0.898, all remaining below the 0.9 threshold This indicates that the scales satisfy the criteria for discriminant validity.

Table 4 3 Heterotraite - monotrait ratio (HTMT)

AI BAC BAT BL BW EB IS SC SCE SI SMM

The conformity test results presented in Table 4.4 indicate that the SRMR index of the estimated model is 0.078, which is less than the threshold of 0.082 This suggests that the measurement model aligns well with the collected dataset.

Table 4 4 The conformity of measurement model

Research model after testing by Smart - PLS 4

Figure 4.1 structural model and test results of PLS-SEM

Source: Authors, 2024The results of the structural model testing are displayed as above after testing the scale The variables generally guarantee the validity and reliability of the model.

Hypothesis testing - Multivariate regression by bootstrap 5000 samples

Testing the structural model revealed that most hypotheses were accepted with a statistical significance of 5%, except for H1 and H3, which were rejected The accepted hypotheses—H2, H4, H5, H6, H7, H8—indicate that Self-congruity, Social media marketing, Brand warmth, Social influence, Economic benefit, and Brand attachment positively influence Social Customer engagement in the FMCG sector Additionally, H10 was accepted, highlighting the positive moderating role of Artificial Intelligence in enhancing the relationship between Social Customer engagement and brand loyalty in FMCG Furthermore, the study found that Artificial Intelligence positively impacts brand loyalty within the FMCG industry.

Table 4 5 Testing hypotheses in the research model

AI X SCE -> BL 0.089 0.089 0.003 HI0: Support

Discussions

The findings indicate that in the FMCG sector, most hypotheses were accepted at the 5% significance level, with the exception of H1 and H3, prompting further investigation into these discrepancies Key factors such as self-congruity, social media marketing, brand warmth, social influence, economic benefit, and brand attachment significantly enhance social customer engagement Specifically, self-congruity positively impacts social customer engagement, as supported by Lee et al (2020), who noted that self-acceptance boosts user involvement on platforms like Facebook Self-congruity involves aligning a brand's values and image with the consumer's self-identity, fostering strong customer interactions and leading to increased brand engagement, loyalty, and trust among customers who identify with the brand's personality or goals (Kim et al., 2005; Gilly, 2003; Andonova et al.).

Social media marketing significantly enhances social customer engagement by fostering a dynamic platform for brand connection According to Nguyen et al (2020), it positively influences social consumer involvement By consistently delivering authentic content and engaging with customers in real time, brands cultivate a sense of community that encourages participation and strengthens customer relationships (Tuten, 2009; Kim &).

Brand warmth plays a crucial role in enhancing social customer engagement by fostering emotional connections between customers and brands When brands convey warmth, they instill a sense of familiarity and trust, which leads to stronger, lasting relationships and heightened customer engagement.

This study's findings align with previous research, highlighting the role of social influence in enhancing Social Customer Engagement (Coulter & Roggeveen, 2012; Gironde & Korgaonkar, 2014; Jayasingh, 2019; André, 2015) Economic benefits also positively impact this engagement (Tsai & Men, 2013; Azar et al., 2016; Jayasingh, 2019) Additionally, brand attachment significantly influences customer engagement, as it fosters a strong emotional bond, leading to increased loyalty and frequent interactions (Lee et al., 2015; Kabadayi & Price, 2014; Gummerus et al., 2012) Engaged customers are more likely to remain loyal, recommend the brand, and make repeat purchases when they feel valued (Jayasingh, 2019) Furthermore, Jayasingh (2019) underscores the importance of information in driving customer engagement on platforms like Facebook, a notion supported by other studies (So et al., 2021; Jaakkola & Alexander, 2014).

The study reveals that AI significantly enhances brand loyalty and positively moderates the relationship between social customer experience (SCE) and brand loyalty These findings align with previous research conducted by Capatina et al (2020), Pillai & Sivathanu (2020), Bag et al (2022), and Bedi & Singh (2022).

In the Vietnam FMCG market, establishing a robust connection between the brand and its customers is crucial Customers engage with brands not just by purchasing products but also through interactions on social media platforms This engagement enhances brand value and fosters customer loyalty.

The FMCG sector faces intense competition and demands continuous innovation, making the integration of AI a crucial differentiator for brands seeking to enhance customer loyalty By leveraging AI, businesses can optimize strategies and seize new opportunities, ultimately leading to a deeper understanding of the strategic advantages of AI investment Moreover, AI serves not only as a technical support tool but also as a vital component influencing brand loyalty It enhances the customer experience through personalized services, anticipates needs, and resolves issues swiftly and accurately.

The study revealed significant findings, highlighting that self-congruity, social media marketing, brand warmth, social influence, economic benefits, and brand attachment all positively affect social customer engagement, with economic benefits and brand attachment having a slightly greater impact Furthermore, social customer engagement was found to enhance brand loyalty, while artificial intelligence serves as a positive moderator in the relationship between social customer engagement and brand loyalty.

Summary of research result

In a recent survey, female respondents comprised 59.6% of the sample, outnumbering males The majority of participants, 54.3%, were employed as office staff, while students made up 29.8% and other workers represented 15.9% Most respondents were aged 23-30 (40.4%), followed by those aged 18-22 (33.7%), with nearly 26% being 31 years or older Income levels revealed that 53.4% of respondents earned between 11-15 million VND, and 33.7% reported an income ranging from 6 million VND.

10 mils VND The others with high income levels account for nearly 13%.

The study revealed significant findings regarding the factors influencing social customer engagement (SCE) Key elements such as self-congruity, social media marketing, brand warmth, social influence, economic benefits, and brand attachment all positively impact SCE, with economic benefits and brand attachment having a slightly greater effect Additionally, SCE was found to enhance brand loyalty Furthermore, artificial intelligence plays a positive moderating role in the relationship between SCE and brand loyalty, underscoring its importance in modern marketing strategies.

Administrative implication

This study offers a new and valuable perspective on the link between brand loyalty and customer engagement on social media, particularly within Vietnam's FMCG sector.

This study aims to fill research gaps in social customer engagement by confirming that factors such as self-congruity, social media marketing, brand warmth, social influence, economic benefit, and brand attachment have a positive impact on social customer engagement Furthermore, it supports both Self-Congruity Theory (SCT) and Uses and Gratification Theory (UGT), highlighting the importance of these theoretical frameworks in understanding consumer behavior.

Social media marketing and social influence significantly enhance customer engagement in fast-moving consumer goods (FMCGs) Social Cognitive Theory (SCT) provides insights into how customers perceive and interact with brands on social platforms, emphasizing the importance of fostering a sense of unity between businesses and consumers Additionally, the Uses and Gratification Theory (UGT) highlights the specific satisfactions that customers seek from their interactions with companies, making it a vital tool for attracting potential clients By understanding that consumers actively select media to fulfill their needs, businesses can tailor their marketing strategies and communication methods to better align with their audience's preferences and desires.

Vietnam aims to position artificial intelligence (AI) as a key technology in the Fourth Industrial Revolution, guided by a national policy focused on AI research, development, and applications set to be implemented by 2030, as endorsed by the Government on January 26, 2021.

By 2030, the nation aspires to become a hub for AI invention, development, and applications in ASEAN and beyond.

In order to reorganize and promote AI innovation ecosystem, the Government of Vietnam should concentrate on a few crucial strategic initiatives, such as:

• improving the operational and managerial processes of organizations working in the science and technology (S&T) sector;

• boosting state spending levels, giving funds to national S&T projects and goods top priority, and encouraging businesses to invest in S&T development;

• coordinating the creation of a robust S&T national market with the enforcement of intellectual property laws in order to promote innovation and technology R&D;

• enhancing the use of Vietnamese research and technology in worldwide markets.

A recent study identified six key variables that positively influence customer engagement: self-congruity, social media marketing, brand warmth, social influence, economic benefits, and brand attachment Notably, this research successfully demonstrated the significant effects of self-congruity and brand warmth on enhancing customer engagement.

Self-congruity is essential for effective market segmentation, providing valuable insights for marketing managers in positioning and advertising research (Sirgy et al, 1997) By understanding the psychological profiles of their target customers, marketers can better position their products to resonate with consumer preferences beyond mere demographics Developing a congruence model allows marketers to identify product attributes—such as self, ideal, social, or ideal social—that foster the highest congruity (Johar & Sirgy, 1989) Prior to launching a brand, it is crucial for marketers to ensure that early adopters align with their target market Additionally, they must monitor brand personality shifts caused by deceptive congruity, real-ideal image gaps, or innovative consumer behaviors While focusing on the target market is vital, marketers should also consider the influence of non-targeted users on their brand.

A recent Jungle Scout survey of over 1,000 American customers reveals a growing demand for accountability and transparency from businesses Notably, 43% of consumers hold a more favorable view of brands that actively engage in social change, with over half of purchasing decisions influenced by brand activism This activism can manifest in various ways, such as supporting LGBTQ entrepreneurs, implementing transparent employee policies, offering cruelty-free products, and committing to environmental initiatives like the Climate Pledge on Amazon Examples include Adidas' Pride Pack, which celebrates LGBTQAI+ expression, and Olay's #FacetheSTEMgap campaign, providing $500,000 in support for women in STEM By offering eco-friendly products or packaging, brands can enhance their online reviews and boost sales, reflecting the increasing consumer preference for environmental responsibility.

Figure 5 1 Brand activism posted on social media

★★★★★ ECO friendly materials, Super functional and at a great price!!

Reviewed in the United States on February 17, 2019

I sought a sustainable alternative to plastic that maintains the same disposability, efficiency, and functionality, and I found it! This product not only surpasses plastic in performance but is also microwave-safe, unlike most plastic options After testing it with greasy foods like burgers, salads with dressings, and even creamed green beans, I was impressed by its durability—there were no leaks or disintegration, which are common concerns with natural fiber products I will definitely purchase these again and highly recommend them!

To build a lasting relationship with customers and enhance brand perception, companies should prioritize brand warmth and attachment Focusing on conveying good intentions, such as kindness and warmth, in brand communications can significantly improve emotional value Additionally, increasing engagement on social media platforms, like boosting "likes" on Facebook and encouraging customers to share experiences, can strengthen brand attachment Implementing policies that invite consumer interaction on social media further fosters a sense of community Ultimately, emphasizing warmth and attachment not only enhances emotional connections but also improves the functional value of the brand by showcasing expertise.

To effectively engage customers, brands must leverage social media marketing and social influence, as consumers seek information from relatable and trustworthy sources While businesses invest heavily in building brand trust, social influence enables a more organic approach through customer evaluations and feedback To enhance this strategy, brands can adopt several key steps.

Establishing a solid foundation of trust with past clients through effective communication and soliciting their valuable feedback and recommendations can significantly enhance organic marketing and boost brand recognition over time For instance, encouraging customers to share their makeup looks on social media while tagging cosmetic brands, as well as fashion brands, can foster greater engagement and visibility.

Great brands excel in providing extensive information about their products and services, utilizing features, reviews, and FAQs to educate customers Encouraging dialogue and promptly addressing inquiries on websites and social media can significantly attract customers Even well-known brands face criticism on social platforms, but the essential strategy is to respond courteously.

Economic benefits play a significant role in enhancing social customer engagement, as consumers are more inclined to interact with brands when financial incentives, promotions, or rewards are offered Brands can effectively boost customer engagement on platforms like Facebook by utilizing minigames or providing vouchers, thereby fostering a stronger connection with their audience.

Recent research has demonstrated that AI plays a significant moderating role in enhancing the relationship between customer engagement and brand loyalty In today's competitive landscape, businesses must continuously innovate and adopt advancements to succeed AI has transitioned from a future possibility to a present reality, influencing not just technological progress but also the way brands connect with their customers.

In a competitive market where many have already embraced artificial intelligence, businesses must find ways to survive and thrive This article offers key recommendations for companies in the FMCG, fashion-beauty, and food and beverage industries looking to adapt to the evolving AI landscape.

• Personalized customers’ experience with data

Limitation and future orientation

The study has yielded significant findings; however, it is limited by its focus on the FMCG market in Vietnam, overlooking factors like consumer culture and corporate strategy Future research should incorporate additional variables to enhance the research model Furthermore, the reliance on cross-sectional data restricts the ability to observe behavioral changes over time, suggesting that employing time series data collection would provide valuable insights into the evolution of brand loyalty.

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