DIGITAL TRANSFORMATION AND CUSTOMER LOYALTY IN E-COMMERCE: EXAMINING THE MEDIATING ROLE OF CUSTOMER SATISFACTION THROUGH TRUST AND PERSONALIZATION

Abstract

This study examines the influence of digital transformation (DT) on customer loyalty (CL) within the Saudi Arabian retail context by integrating the effects of artificial intelligence driven personalisation, secure digital platforms, and customer trust on consumer behaviour in an increasingly competitive e-commerce environment. A mixed-methods research design was adopted, combining partial least squares structural equation modelling applied to survey responses collected from 280 consumers in Saudi Arabia with a thematic analysis of 28 in-depth qualitative interviews. The empirical findings indicate statistically significant positive associations between DT, perceived personalisation, and CL, while customer satisfaction (CS) functions as a mediating mechanism linking digitally enabled experiences to CL. Insights derived from the qualitative analysis offer practical value by enhancing understanding of how consumers perceive and interpret digital functionalities, transactional security, and personalised experiences, and how these factors shape enduring relationships with online retailers.