Marketing and Advertisement Strategies driven by Psychology and Ai Technology

Abstract

Marketing ideas are formulated around factors that influence consumer decision making. Cognitive biases and emotional triggers play key role in shaping purchasing decisions. In order to increase engagement, psychological theories integrate with AI marketing. Data was collected from Scopus, PubMed, google scholar, IEEE Xplore and web of science. 42 Research papers were shortlisted that aligned with the inclusion criteria. Papers that focused on psychological factors driven by AI and neuromarketing and case studies related to these strategies were included. AI driven personalized advertisements displayed correlation with marketing effectiveness, consumer loyalty and consumer engagement. Cognitive dissonance positively correlated with skepticism towards AI marketing. Frequent online shoppers were influenced by algorithm-based advertisement and consumer loyalty correlates with entertainment highlighting themes like persuasion and emotional contagion. Consumer demand patterns influenced AI driven pricing models. Unconscious memory associations impacted buying behavior in a case study on Coca Cola. Behavioral biases (hyperbolic discounting, loss aversion and social proof), impulse buying, anchoring effect and decision fatigue determined consumer decision making. Neuromarketing (EEG, fMRI) techniques are employed by companies like iPhone-6, Campbell soup, Fritto lays chips which yielded an increase in sales. AI advertising and neuromarketing demonstrate a good influence on consumer behavior but lapses could be observed in knowledge regarding subconscious decision making, ethical concerns related to AI marketing and algorithm driven advertising. Transparency in AI/ VR driven advertising, algorithm marketing and psychological aspects influencing customer autonomy can be explored further for better insights. Ethical implications can also be delved into.