HARNESSING THE POWER OF ARTIFICIAL INTELLIGENCE IN E- COMMERCE: A STRATEGIC TOOL FOR REDUCING APPAREL RETURNS

Authors: Dr. Ity Sahu & Himanshu Khatik

ABSTRACT

Artificial Intelligence (AI) is today an integral part of new media ecosystem. E- commerce is reaching new heights with its implementation. With the two-fold objectives, this study aims to describe the status quo of technology and its role in modernizing e-commerce and present a shopper-centric business model that can be practically applied to reduce product returns to an optimum extent. AI is observed as a major force for innovation for e- commerce retailers. This study is concerned with describing present AI advancements, its historical evolution in e- commerce and a future perspective of its implementation through a conceptual model.

Keywords: Artificial Intelligence, E-commerce, Voice Assistants, Business Model.

REFERENCES

  • alexa. (2019). Retrieved 2020, from Alexa: An Amazone.com Company: https://www.alexa.com/
  • Alexander Osterwalder, Y. P. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. NJ: John Wiley& Sons.
  • Alexander Peysakhovich, A. L. (2019). Towards AI that Can Solve Social Dilemmas. 2018 AAAI Spring Symposium Series, Stanford University . california, USA.
  • amazon alexa. (2019). Retrieved 01 24, 2020, from developer.amazon: https://developer.amazon.com/en-GB/docs/alexa/ask-overviews/build-skills-with-the-alexa-skills-kit.html
  • amazon.com. (n.d.). amazon go grocery. Retrieved 03 2020, from amazon: https://www.amazon.com/b/ref=s9_acss_bw_cg_agojwo_2a1_w?node=20931388011&pf_rd_m=ATVPDKIKX0DER&pf_rd_s=merchandised-search-2&pf_rd_r=ESFK9T3D39KX7BEEREKP&pf_rd_t=101&pf_rd_p=af2fd307-caca-4918-828c-dd8277d81050&pf_rd_i=16008589011
  • Andrew, A. M. (2006). An evolutionary view of innovation. The international journal of cybernetics, systems and management sciences.
  • Anna Watson, B. A. (2018). The impact of experiential augmented reality applications on fashion purchase intention. International Journal of Retail & Distribution Management.
  • Bressoud, E. (2013). Testing FMCG innovations: experimental real store versus virtual. Journal of Product & Brand Management, 286-292.
  • Bruce Curry, L. M. (1994). Intelligent Computer Models for Marketing Decisions. Management Decision.
  • Carayannopoulos, S. (2018). Using chatbots to aid transition. The International Journal of Information and Learning Technology, 118-129.
  • Chopra, K. (2019). Indian shopper motivation to use artificial intelligence Generating Vroom’s expectancy theory of motivation using grounded theory approach. International Journal of Retail & Distribution Management.
  • Chris Smith, B. M. (2006). The History of Artificial intelligence. Retrieved december 2019, from Washington Education Website: https://courses.cs.washington.edu/courses/csep590/06au/projects/history-ai.pdf
  • Christoph Zott, R. A. (2011). The Business Model: Recent Developments. Journal of Management , 1019-1042.
  • Clifford, C. (2017, 07 24). Retrieved 2019, from CNBC : https://www.cnbc.com/2017/07/24/mark-zuckerberg-elon-musks-doomsday-ai-predictions-are-irresponsible.html
  • Clifford, C. (2017, 07 26). Retrieved 2019, from CNBC: https://www.cnbc.com/2017/07/26/mark-zuckerberg-defends-a-i-again-continuing-debate-with-elon-musk.html
  • Courtney, M. (2017). Carelesstalkcostsprivacy(censorshipdigitalassistants. Engineering&Technology , 50-53.
  • Crosman, P. (2018, 06 13). American Banker. Retrieved 01 2020, from American Banker: https://www.americanbanker.com/news/mad-about-erica-why-a-million-people-use-bank-of-americas-chatbot
  • Daniel Belanche, L. V. (2019). Artificial Intelligence in FinTech: understanding robo-advisors adoption among customers. Industrial Management & Data Systems.
  • David Opresnik, M. T. (2015). The Value of Big Data in Servitization. Department of Management, Economics and Industrial Engineering, 174-184.
  • Detelina Marinova, K. d.-H. (2016). Getting Smart: Learning From Technology-Empowered Frontline Interactions. Journal of Service Research, 1-14.
  • Dhruv Grewal, A. L. (2017). The Future of Retailing. Journal of Retailing.
  • Dobre, N. B. (2014). Big Data and Internet. Switzerland: Springer International Publishing.
  • EFTHIMIOS ALEPIS, C. P. (2017). Monkey Says, Monkey Does: Security and. IEEE Access
  • Eric T. Bradlow, M. G. (2017). The Role of Big Data and Predictive Analytics in Retailing. Journal of Retailing.
  • Erika Rawes, K. W. (2020, 01 16). What exactly is Alexa? Where does she come from? How does she work? Retrieved 01 22, 2020, from digital trends: https://www.digitaltrends.com/home/what-is-amazons-alexa-and-what-can-it-do
  • Faubion, B. (2016, 05 13). Effect of Automated Advising Platforms on the Financial Advising Market. Retrieved 2020, from https://core.ac.uk/download/pdf/72841372.pdf
  • Felix Dominik Weberan, R. S. (2019). State-of-the-art and adoption of artificial intelligence in retailing. jDIGITALPOLICY,REGULATIONANDGOVERNANCE , 264-279.
  • Gallayanee Starwind Yaoyuneyong, W. A. (2018). Virtual dressing room media, buying intention and mediation. Journal of Research in Interactive Marketing, 152-144.
  • Gallayanee Yaoyuneyong, J. F. (2016). Augmented Reality Marketing: Consumer preferences and attitudes towards hypermedia print ad. Journal of Interactive Advertising, 16-30.
  • Heung-Yeung Shum, X. H. (2018). From Eliza to XiaoIce: Challenges and Opportunities with Social Chatbots. Frontiers of Information Technology & Electronic Engineering, , 10-26.
  • Hoy, M. B. (2018). Alexa, Siri, Cortana, and More: An Introduction to Voice Assistants. Medical Reference Services Quarterly, 81-88.
  • Hudson, P. (n.d.). flexmr. Retrieved 01 05, 2020, from blog.flexmr: https://blog.flexmr.net/ai-consumer-behaviour
  • Inman, J. H. (2017). Shopper- Facing Retail Technology: A Retailer Adoption Decision Framework Incorporating Shopper Attitudes and Privacy Concerns. Journal of Retailing, 7-28.
  • J.Teece, D. (2010). Business Models, Business Strategy and Innovation. Long Range Planning, 172-194.
  • James Uhomoibhi, C. O. (2019). A study of developments and applications of mixed reality cubicles and their impact on learning. The International Journal of Information and Learning Technology.
  • Jin, G. Z. (2018). ARTIFICIAL INTELLIGENCE AND CONSUMER PRIVACY. NATIONAL BUREAU OF ECONOMIC RESEARCH.
  • Kelly, j. I. (2019, 02). invoca. Retrieved 2020, from blog.invoca: https://blog.invoca.com/future-of-marketing-predicting-consumer-behavior-ai/
  • Kenneth C. Gehrt, M. N. (2012). “Emergence of online shopping in India: shopping orientation segments. International Journal of Retail & Distribution Management, 742-758.
  • Koksal, I. (2018, 10 10). Forbes. Retrieved 01 2020, from A. Forbes Website: https://www.forbes.com/sites/ilkerkoksal/2018/10/10/whos-the-amazon-alexa-target-market-anyway/#71f1493b2eb5
  • Lanitis, A. (2009). Facial Biometric Templates and Aging: Problems and Challenges for Artificial Intelligence. AIAI-2009 Workshops Proceedings. Cyprus, Cyprus.
  • Levy, m. (2009). technologies in use of second language learning. The Mordern Language Journal, 769-782.
  • Little, J. D. (1961). A Proof of Queing Formula: L = λW. Operation Research, 383-387.
  • Malec, J. J. (1994). Patent No. 5,295,064. Washington DC.
  • Marc Bain, S. S. (2016, 12 29). qz.com. Retrieved 2019, from Quartz: https://qz.com/873556/returned-gifts-are-creating-an-environmental-disaster/
  • Mark McCaffrey, P. H. (2018). pwc. Retrieved 01 22, 2020, from pwc website: https://www.pwc.com/us/en/services/consulting/library/consumer-intelligence-series/voice-assistants.html
  • Mark Yi-Cheon, Y. S.-C. (2017). Is augmented reality technology an effective tool for e-commerce? An interactivity and vividness perspective. Journal of Interactive Marketing, 89-103.
  • Mason, M. S. (2011). the practice of business models. Industrial Marketing Management, 1032-1041.
  • Matjaž Perc, M. O. (2019). Social and juristic challenges of artificial. palgravecommunicatoins
  • Maxwell, K. (2010, 03 23). macmillandictionary. Retrieved 2019, from macmillan dictionary.com/buzzword: https://www.macmillandictionary.com/buzzword/entries/augmented-reality.html
  • Ms. S. Karthika, P. P. (2017). HOLOLENS. International Journal of Computer Science and Mobile Computing, 41-50.
  • Nadia Magnenat-Thalmann, M. M. (2006). Interactive Virtual Hair-Dressing Room. Computer-Aided Design and Applications, 535-545.
  • Norvig, S. J. (1995). Artificial Intelligence – A Mordern Approach. New Jersey: Alan Apt.
  • Orendorff, A. (2019, 02 27). shopify.com. Retrieved 2019, from shopifyplus: https://www.shopify.com/enterprise/ecommerce-returns
  • Pandey, K. (2019, 04 15). How AI is Revolutionizing Global Logistics and Supply Chain Management. Retrieved 2019, from readwrite: https://readwrite.com/2019/04/15/how-ai-is-revolutionizing-global-logistics-and-supply-chain-management/
  • PATSAKI, E. A. (2017). Digital Object Identifier 10.1109/ACCESS.2017.2747626. IEEE Access.
  • Peter M. Guadagni, J. D. (2008, 01 01). A Logit Model of Brand Choice Calibrated on Scanner Data. marketing Scince , 203-238.
  • Pornpimon Kachamas, S. A. (2019). Application of Artificial Intelligent in the Prediction of Consumer Behavior from Facebook Posts Analysis. International Journal of Machine Learning and Computing.
  • Preeti Tak, S. P. (2017). “Using UTAUT 2 model to predict mobile app-based shopping: evidences from India”, . Journal of Indian Business Research, 248-264.
  • Quentin André, Z. C. (2017). Consumer Choice and Autonomy in the Age of Artificial Intelligence and Big Data. CUSTOMER NEEDS AND SOLUTION, 28-37.
  • Rakhi Thakur, M. S. (2015). “A study on the impact of consumer risk perception and innovativeness on online shopping in India. International Journal of Retail & Distribution Management, 148-166.
  • Retail, A. (2018). Consumer Returns in the retail industry. Appriss Retai.
  • Richards, N. C. (2018, 03 28). linkedin. Retrieved 01 2020, from linkedin.com/pluse: https://www.linkedin.com/pulse/how-virtual-reality-can-influence-consumer-behaviour-neale-langille
  • Robinson, W. K. (2015). Economic theory, divided infringement and enforcing interactive patent.
  • Rose, B. (2020, 01). Alexa, how are digital shoppers affecting retail? north America.
  • Schütte, R. (2017). Information Systems for Retail Companies. Advanced Information Systems Engineering: 29th international conference CAiSE, Essen (pp. 13-25). Berlin: Springer International Publishing.
  • Staff, A. (2017, 02 10). This Fashion Brand’s First to Market With an Alexa-Based Personal Stylist.
  • Szatylowicz, K. (2019, 01 14). crobox. Retrieved 01 05, 2020, from blog.crobox: https://blog.crobox.com/article/ai-consumer-behavior
  • Velkar, K. (2019, 10 25). Econsultancy. Retrieved 01 24, 2020, from Econsultancy website: https://econsultancy.com/how-can-voice-assistant-alexa-influence-purchase-decision-for-fmcg-products/
  • Vincze, J. (2017). Virtual Reference Librarians (Chatbots). Library Hi Tech News, 5-8.
  • walker, s. (2018, 08 13). Virtual Reality Marketing: Is The Next Big Opportunity Already Here? digitaldoughnut .