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Abstract

Purpose: This study examines the effects of artificial intelligence-based advertising, ad personalization, and digital shopping experience on consumer trust, with privacy concerns as a mediating variable in purchases of MSME products on TikTok Shop.


Research Design and Methodology: A quantitative associative-causal design with a cross-sectional survey was employed. Data were collected from 260 consumers who had purchased MSME products on TikTok Shop and had been exposed to personalized advertisements. Purposive sampling was applied, and the data were analyzed using PLS-SEM with SmartPLS 4.


Findings and Discussion: AI-based advertising and ad personalization positively and significantly influence privacy concerns, while digital shopping experience negatively affects privacy concerns and positively affects consumer trust. Privacy concerns significantly reduce consumer trust, whereas AI-based advertising has no significant direct effect on trust. These findings support Privacy Calculus Theory, indicating that consumers balance personalization benefits against perceived data risks.


Implications: MSMEs and TikTok Shop administrators should combine personalization with transparent data practices, stronger privacy protection, transaction security, and improved digital shopping experiences. Future studies should examine other platforms, consumer segments, and longitudinal settings.

Keywords

AI-powered advertising ad personalization digital shopping experience privacy concerns consumer trust

Article Details

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Abbas, M., Amrial, A., & Tjambolang, T. A. (2025). Artificial Intelligence-Based Advertising, Ad Personalization, and the Digital Shopping Experience: Their Impact on Consumer Trust Amid Privacy Concerns When Purchasing SME Products on TikTok Shop. Advances in Human Resource Management Research, 3(2), 117–128. https://doi.org/10.60079/ahrmr.v3i2.1120
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