The Impact of AI-Based Recommendation Systems on Customer Retention in Online Food Delivery Services (Response)

AI-based recommendation systems play a key role in customer retention within the Online Food Delivery (OFD) industry. This study analyzes the impact of AI recommendation systems on customer retention with purchase decisions as a mediator. This quantitative study uses data from 413 users of OFD platforms (GoFood, GrabFood, ShopeeFood), analyzed using PLS-SEM. The results show: (1) AI recommendations have a significant impact on customer retention, (2) AI recommendations positively affect purchase decisions, and (3) purchase decisions serve as a significant mediator. These findings affirm that personalized recommendations enhance customer satisfaction and reduce decision-making complexity. The implications of the study provide guidance for OFD platforms to optimize AI recommendation strategies. Study limitations include the focus on the OFD industry and the exclusion of external factors such as price. Suggestions for future research include exploring the role of trust in AI or conducting longitudinal studies.