Beyond Personalization: The Influence of Generative AI Chatbot on Consumer Decision Quality

Abstract

The present research study examines the relationship between generative AI chatbot effectiveness and consumer decision quality among Indian consumers. Past research has largely focused on chatbot adoption and usage, while less attention has been given to whether interaction with these tools is associated with the quality of consumers' final decisions. To address this gap, a quantitative cross-sectional study was conducted using primary data from 300 consumers selected through purposive sampling. Data were collected through a structured questionnaire using a five-point Likert scale. Generative AI Chatbot Effectiveness was considered the independent variable and Consumer Decision Quality the dependent variable. Descriptive statistics, cross-tabulation, chi-square, reliability analysis, Pearson correlation and simple linear regression were used for analysis. The reliability results were strong. Cronbach's alpha was 0.897 for chatbot effectiveness and 0.887 for decision quality. The KMO value was 0.88 and Bartlett's test was significant (p < .001), indicating that the data were suitable for further analysis. The cross-tabulation showed clear differences across usage groups. Weekly users had 53.0% reporting high decision quality, while occasional users had only 20.0%. This association was significant, χ²(6) = 38.287, p < .001, with Cramer's V = .253. Pearson's correlation was also strong and positive (r = .693, p < .001). The regression analysis further showed that chatbot effectiveness significantly predicted decision quality (B = .702, p < .001). The model explained 48.0% of the variance (R² = .480; F(1, 298) = 275.224, p < .001).The findings indicated that generative AI chatbots are useful in consumer decision-making. Their usefulness depends on how effectively they provide relevant information and help consumers compare and evaluate options. Overall, the results indicate that betterquality chatbot interaction is positively associated with higher consumer decision quality. Keywords: Generative Ai Chatbot, Consumer, Decision Quality, Influence, Personalization