The AI advertising dilemma: does artificial creativity build or break brand loyalty?

Abstract

This dissertation investigated the relationship between perceived value, perceived trust, and perceived innovation of AI-generated marketing content and their impact on brand loyalty. The study focused on Coca-Cola’s 2024 AI-generated advertisement that recreated its classic “Holidays Are Coming” commercial, to explore consumer perceptions of AI-generated marketing materials. 24 participants were recruited through convenience sampling. Structured questionnaires using Likert scales were used to collect data, and multiple linear regression analysis was conducted to examine the predictive relationships between the independent variables: perceived value, perceived trust, and perceived innovation, and the dependent variable: brand loyalty. The findings revealed that the three predictors together have a significant positive effect on brand loyalty. However, individually, only perceived value significantly predicted brand loyalty, whereas perceived trust and perceived innovation did not demonstrate statistically significant relationships. These results indicated that consumers are cautious about trusting and perceiving such content as innovative, however, they appreciate the functional and emotional value conveyed by AI-generated marketing content. This research contributes to the growing body of literature on the application of AI in marketing, particularly in understanding how AI-enabled creativity influences consumer attitudes toward established brands. From a practical perspective, the findings emphasized the importance of marketers to integrate AI technologies thoughtfully to ensure that such innovations enhance perceived value without undermining authenticity or trust. This dissertation has limitations, first are by its small sample size, Western participant composition, and focus on a single brand. Future research should extend this inquiry by incorporating larger, more diverse samples, examining additional industries, and exploring qualitative insights through focused group discussions to deepen understanding of consumer perceptions of AI-generated marketing content.