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Does AI Chatbot Service Quality Impact Customer Loyalty?: Examining Satisfaction and Attitudes

Does AI Chatbot Service Quality Impact Customer Loyalty?: Examining Satisfaction and Attitudes

. Rupali (Amity Business School, Amity University, Noida, India), Natasha Sharma (Amity Business School, Amity University, Noida, India), Prerna Arora (Amity Business School, Amity University, Noida, India), and Paritosh Mishra (Amity Business School, Amity University, Noida, India)
Copyright: © 2024 |Pages: 27
DOI: 10.4018/979-8-3693-1503-3.ch002
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Abstract

Artificial intelligence (AI) has emerged as a catalyst for change in numerous sectors. AI chatbots have been shown to be able to enhance customer engagements and loyalty. This research endeavor aims to explore the nuanced facets of AI-chatbot service quality dimensions and their substantial impact on favorable customer behavioural outcomes such as their attitudes, satisfaction, and loyalty. The study utilized data collected from people in Delhi-NCR region of India who have used AI-powered chatbot services previously. Results showed that every dimension of service quality has a positive association on satisfaction. However, only three dimensions impacted customer attitude significantly. In addition, the outcome of analysis showed that customer loyalty was positively and significantly impacted by user satisfaction towards AI-chatbots and attitude. This study offers a novel and impactful strategy to enhance our understanding of chatbot's potential to significantly alter the way online companies interact with and market to their customer base.
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Introduction

In a time characterized by swift technological progress, Artificial Intelligence (AI) has arisen as a catalyst for change in numerous sectors. Among its standout applications, AI-powered chatbots have redefined the landscape of customer service and engagement. As businesses progressively embrace AI-driven chatbots to engage with their clientele, it becomes crucial to evaluate how these digital assistants affect customer loyalty, contentment, and perception (Rios-Campos et al., 2023). The origin of chatbots traces back to as early as 1921, coinciding with the introduction of robotics. However, it was in the year 2000 that the significance of chatbots became more apparent, particularly highlighted by the emergence of the SmarterChild intelligent agent on AOL Instant Messenger, which notably facilitated searches for stock information and weather updates (Agarwal & Wadhwa, 2020). Over time, the acceptance of this idea increased notably in 2011 with the introduction of Apple's Siri, a voice assistant (VA) incorporating chatbot technology. Subsequently, these voice assistants have swiftly found widespread adoption across various domains (Johnson et al., 2012). The enthusiasm surrounding chatbots has grown, primarily driven by the notable advancements in artificial intelligence (AI) (Rahman et al., 2017).

In the contemporary age, where consumers increasingly dedicate their time to digital environments, businesses prioritize maintaining an online presence at all times and across various platforms to stay connected with their customers. Owing to advancements in digital technology and the escalating competition, companies are consistently striving to attract and retain customers. The 'modern customer in 2021' seeks to minimize the time spent and anticipates the ability to contact a company at any time and from any location, irrespective of the time, place, or communication channel (McLean & Wilson, 2016). Through the utilization of a chatbot, a customer develops increased trust in an organization, resulting in enhanced customer loyalty (Ameen et al., 2021).

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