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Effectiveness of AI Chatbots and Conversational Commerce on Customer Loyalty in the Indian Retail Sector: A Study on Reliance in Chhattisgarh
Subject area: Management and Commerce · Area of research: Artificial Intelligence in Marketing
DOI: https://doi.org/10.64388/IREV9I11-1717457
Abstract
This study examines the effectiveness of AI chatbots and conversational commerce in influencing customer loyalty and brand trust at Reliance Retail, India's largest organized retail conglomerate. Using a quantitative research design, primary data was collected from 100 respondents in Raipur, Chhattisgarh, who actively use Reliance's digital platforms (JioMart, AJIO, Reliance Digital). Through descriptive statistics, reliability analysis, and regression modeling, this research tested two hypotheses: (H1) Technical chatbot effectiveness significantly influences customer loyalty, and (H2) AI-driven personalization significantly impacts brand trust. Findings reveal that chatbot effectiveness explains 71.2% of customer loyalty variance (R² = 0.712, p < 0.001), while AI-driven personalization explains 75.3% of brand trust variance (R² = 0.753, p < 0.001), with both effects statistically significant. The findings indicate that personalization is the dominant driver of trust-building, while technical efficiency primarily influences transaction loyalty. The study contributes to filling empirical research gaps on AI adoption in organized retail, providing evidence-based recommendations for optimizing chatbot design, including expanding multilingual support, implementing proactive engagement strategies, and strengthening privacy protections. The research demonstrates that AI chatbots function as bridges between operational efficiency and relationship-building, requiring strategic balance between automation and human empathy to sustain long-term customer relationships in the Indian retail context.
Keywords
AI Chatbots, Conversational Commerce, Customer Loyalty, Brand Trust, Reliance Retail, Indian Retail Sector, Technology Acceptance
How to cite this paper
@article{1717457,
author = {Abhishek Lahre, Prof. (Dr.) Monica Sainy},
title = {Effectiveness of AI Chatbots and Conversational Commerce on Customer Loyalty in the Indian Retail Sector: A Study on Reliance in Chhattisgarh},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {9},
number = {11},
pages = {629-635},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1717457.pdf},
abstract = {This study examines the effectiveness of AI chatbots and conversational commerce in influencing customer loyalty and brand trust at Reliance Retail, India's largest organized retail conglomerate. Using a quantitative research design, primary data was collected from 100 respondents in Raipur, Chhattisgarh, who actively use Reliance's digital platforms (JioMart, AJIO, Reliance Digital). Through descriptive statistics, reliability analysis, and regression modeling, this research tested two hypotheses: (H1) Technical chatbot effectiveness significantly influences customer loyalty, and (H2) AI-driven personalization significantly impacts brand trust. Findings reveal that chatbot effectiveness explains 71.2% of customer loyalty variance (R² = 0.712, p < 0.001), while AI-driven personalization explains 75.3% of brand trust variance (R² = 0.753, p < 0.001), with both effects statistically significant. The findings indicate that personalization is the dominant driver of trust-building, while technical efficiency primarily influences transaction loyalty. The study contributes to filling empirical research gaps on AI adoption in organized retail, providing evidence-based recommendations for optimizing chatbot design, including expanding multilingual support, implementing proactive engagement strategies, and strengthening privacy protections. The research demonstrates that AI chatbots function as bridges between operational efficiency and relationship-building, requiring strategic balance between automation and human empathy to sustain long-term customer relationships in the Indian retail context.},
keywords = {AI Chatbots, Conversational Commerce, Customer Loyalty, Brand Trust, Reliance Retail, Indian Retail Sector, Technology Acceptance},
month = {May},
doi = {https://doi.org/10.64388/IREV9I11-1717457}
}