Evaluating the Effectiveness of AI-Driven Personalized Recommendations in Enhancing Guest Experiences in Jeddah's Restaurants
Keywords:
Artificial Intelligence, Personalized Recommendations, Customer Satisfaction, Customer Engagement, Loyalty, Repeat Patronage, Restaurant Industry, Jeddah, Hospitality Technology, Data-Driven Insights, Consumer BehaviorAbstract
The restaurant industry achieves superior customer satisfaction, stronger engagement, and increased loyalty by implementing artificial intelligence (AI)-driven personalized recommendation systems. As part of this research, the team assessed AI-driven restaurant recommendation systems in Jeddah's venue industry to measure their effects on satisfaction, engagement, and customer loyalty. Three hundred customers from ten restaurants that operated AI recommendation systems for six months or longer among high-end and mid-range restaurants participated in this survey. Researchers used an online questionnaire to analyze the data by performing descriptive statistics, correlation, and regression analysis. On the contrary, satisfaction exhibited a small to no relationship with customer engagement (r = 0.04) and a slightly antagonistic relationship with loyalty (r = –0.05). The study results indicated that the correlation between customer engagement and loyalty (r = -0.08) was a weak negative correlation. While the research proved that AI can enhance dining experiences, it was shown that it faces challenges in keeping customer loyalty in the long run. The study data contained essential information to help managers of restaurants and developers of AI systems improve their recommendation systems.
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