Artificial Intelligence Innovation – Reshaping Customer Experience and Marketing in the UK Retail Sector (2024)

AI in Customer Service Marketing Dissertation UK Retail – This dissertation explores the impact of artificial intelligence (AI) on customer service and marketing strategies in the UK retail sector. With AI becoming a key driver of innovation, this study aims to understand how it is reshaping customer experiences and marketing practices. The research focuses on both the benefits and challenges of AI adoption, using a mixed-methods approach to gather insights from customers, retail managers and industry case studies.

A survey of 250 UK retail customers was conducted and the findings show that AI-driven tools like chatbots and personalised recommendations are widely appreciated for their efficiency and convenience. For example, 80% of respondents reported being satisfied or very satisfied with AI-powered customer service, citing faster response times and 24/7 availability as key benefits. However, some customers expressed concerns about the lack of human touch and data privacy issues, highlighting areas for improvement.

Interviews with 12 retail managers revealed that AI is increasingly used for targeted advertising, dynamic pricing and predictive analytics. Retailers like Tesco and ASOS have successfully integrated AI to personalise marketing offers, leading to a 20% increase in sales for some brands. Despite these successes, managers also identified challenges such as high implementation costs and the need for staff training, which can slow down AI adoption.

Three UK retailers (Tesco, ASOS and John Lewis) were analysed as case studies. These case studies demonstrate how AI has improved operational efficiency and customer engagement. For instance, Tesco’s use of AI chatbots reduced customer query response times by 50%, while ASOS saw a significant boost in sales due to AI-driven product recommendations. However, the case studies also highlight the importance of balancing innovation with ethical considerations, such as ensuring transparency in how customer data is used.

This study concludes that AI is playing a crucial role in reshaping the UK retail sector. It offers significant advantages, including improved customer satisfaction, increased sales and more efficient marketing strategies. However, challenges such as data privacy concerns, implementation costs and the need for human oversight must be addressed to fully realise AI’s potential. The findings suggest that retailers who strategically invest in AI while addressing these challenges will be better positioned to thrive in an increasingly competitive market. This research contributes to the growing body of knowledge on AI in retail and provides practical recommendations for UK retailers looking to adopt AI-driven innovations.

• 10,000 words – 42 pages in length
• Excellent us of literature
• Good analysis of subject area
• Well written throughout
• Ideal for marketing communications students
• Includes questionnaire

1 – Introduction
Background and Context
Dissertation Rationale
Research Aim and Objectives
Research Questions
Dissertation Structure
Summary

2 – Literature Review
Artificial Intelligence (AI) in Retail
AI in Customer Service
Chatbots and Virtual Assistants
Personalisation and Customer Experience
Case Studies of UK Retailers
AI in Marketing Strategies
Targeted Advertising
Dynamic Pricing
Personalised Marketing
Case Studies of UK Retailers
Benefits of AI Adoption in Retail
Improved Operational Efficiency
Enhanced Customer Experiences
Increased Sales and Revenue
Competitive Advantage
Cost Savings
Challenges and Limitations of AI Adoption
Data Privacy and Security Concerns
High Implementation Costs
Resistance to Change
Ethical Considerations
Lack of Human Touch
Technical Challenges

3 – Methodology
Research Philosophy
Research Approach
Rationale
Research Design
Data Collection Methods
Survey
Interviews
Case Studies
Data Analysis Methods
Quantitative Data Analysis
Qualitative Data Analysis
Sample Size
Ethical Considerations
Limitations of the Methodology

4 – Analysis and Findings
Demographics
Age Distribution
Shopping Preferences
AI in Customer Service
Customer Satisfaction with AI-Driven Services
Personalisation and Customer Experience
Case Study: Tesco’s AI Chatbot
Future Trends in AI-Driven Customer Service
AI in Marketing Strategies
Targeted Advertising
Dynamic Pricing
Case Study: ASOS’s AI-Driven Marketing
Challenges and Limitations of AI Adoption
Data Privacy and Security Concerns
High Implementation Costs
Resistance to Change
Ethical Considerations
Discussion of Findings

5 – Conclusion
Key Research Conclusion
AI in Customer Service
AI in Marketing Strategies
Challenges and Limitations
Implications for Retailers
Enhancing Customer Service
Personalisation and Data Privacy
Targeted Advertising and Dynamic Pricing
Addressing Ethical Concerns
Recommendations for Future Research
Exploring the Impact of AI on Different Retail Sub-Sectors
Investigating the Role of AI in Small and Medium-Sized Retailers
Examining the Long-Term Impact of AI on Customer Loyalty
Addressing Ethical and Social Implications of AI
Contribution to Knowledge
Final Thoughts

References

Appendix
Questionnaire
Survey Questions