Chatbot Social Commerce
Chatbot Social Commerce
https://www.emerald.com/insight/1754-2731.htm
TQM
35,5 The effects of chatbots’ attributes
on customer relationships with
brands: PLS-SEM and importance–
1156 performance map analysis
Received 28 February 2022 Francesca Magno and Giovanna Dossena
Revised 14 June 2022
Accepted 21 July 2022 Universita degli Studi di Bergamo, Bergamo, Italy
Abstract
Purpose – Many firms are investing in digital services to improve customer experiences. Virtual service
agents, or “e-service agents” (“e-agents”) such as chatbots, are examples of these efforts. Chatbots are types of
virtual-assistant software programs that interact with users through speech or text. This paper aims to
investigate whether the perceived hedonic and utilitarian attributes of chatbots can influence customer
satisfaction and, consequently, their relationships with brands.
Design/methodology/approach – Data were collected through a questionnaire-based survey among a
sample of Italian consumers. A convenience sampling technique was used. Data were then analyzed through
Partial Least Squares Structural Equation Modeling to provide a prediction-oriented model assessment. The
findings were then complemented with an importance–performance map analysis (IPMA) to gain more detailed
insights and actionable guidelines for managers.
Findings – The findings highlighted that the perceived hedonic and utilitarian attributes of chatbots
positively influenced customer satisfaction and improved customer relationships with the brands. However,
the IMPA highlighted that the performance levels of two most important attributes – system quality and
experience with chatbot – could be improved resulting in additional improvements of customer satisfaction.
Practical implications – This study suggests the importance of firms’ investments in and adoption of
e-agents to strengthen consumer–brand relationships and of considering both the hedonic and utilitarian
attributes of their e-agents.
Originality/value – This article attempts to enrich and consolidate the growing body of literature concerning
the impacts of new technologies – and, specifically, chatbots – in service marketing.
Keywords Chatbots, e-service agents, New technologies, Customer satisfaction, Consumer–brand interaction
Paper type Research paper
1. Introduction
Technological advancements are changing the ways through which firms can manage their
customer interactions and, consequently, the customer experience (Chung et al., 2020).
Among the emerging technologies, Artificial Intelligence (AI) is considered a particularly
disruptive technology capable of radically changing firm–customer relationships in every
sector (Campbell et al., 2020). Kaplan and Haenlein (2019, p. 15) define AI as a “system’s ability
to correctly interpret external data, to learn from such data, and to use those learnings to
achieve specific goals and tasks through flexible adaptation systems.” The underlying idea of AI
is that, thanks to the use of software and hardware, firms can analyze data and provide real-
time interactions with customers, making technology-based interactions more human and
customer-centric (Hoyer et al., 2020; Libai et al., 2020). Therefore, many marketing
opportunities can derive from AI applications (Martınez-Lopez and Casillas, 2013).
Consequently, many firms are investing in digital services to improve customers’
experiences. Virtual service agents, or “e-service agents,” such as chatbots (an AI application),
© Francesca Magno and Giovanna Dossena. Published by Emerald Publishing Limited. This article is
The TQM Journal published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce,
Vol. 35 No. 5, 2023
pp. 1156-1169 distribute, translate and create derivative works of this article (for both commercial and non-commercial
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1754-2731
DOI 10.1108/TQM-02-2022-0080 may be seen at http://creativecommons.org/licences/by/4.0/legalcode
are examples of these efforts (Trivedi, 2019). A chatbot is an instant-chat service able to Effects of
operate similarly to an offline service agent (Chung et al., 2020). The most popular chatbots chatbots’
include personal assistants like Alexa, Siri and Cortana. Indeed, a chatbot interacts in a
familiar way with consumers, and its responses can consist in voice or text messages, images
attributes
and so on. Like those of offline service agents, the roles of chatbots are becoming central in
determining customer satisfaction. Indeed, chatbots represent the brand in customer
relationships (Chung et al., 2020; Zarouali et al., 2018).
However, despite the increasing relevance of this topic, academic research into the role of 1157
chatbots in influencing customer satisfaction still remains scant (Hoyer et al., 2020).
Specifically, there is a need to assess how chatbots should be designed to satisfy customers
and improve their attitudes toward the brands represented. This study addresses this gap
and investigates whether perceived hedonic and utilitarian attributes of chatbots can
influence customer satisfaction and, consequently, the customer–brand relationship. For this
purpose, a model comprising both the hedonic and utilitarian attributes of chatbots is
developed and estimated. Moreover, to gain more detailed understanding and enrich the
practical implications of the findings, the estimation of the model is complemented with
importance–performance map analysis (IPMA).
The remainder of the paper is structured as follows. First, a review of previous studies on
how chatbots affect customer satisfaction is provided. Next, the research model and
hypotheses are presented, followed by a description of the methods and results. A discussion
of the findings and conclusions completes the paper.
3. Methods
To achieve our research goals, we conducted a questionnaire-based survey among a sample
of Italian consumers. Data collection took place in April 2021. The questionnaire was
distributed online through the personal networks of the authors, relying on a convenience
sampling technique. Overall, we received 275 questionnaires; however, 19 were excluded
from the analysis because respondents had no experience with chatbots. Hence, the final
sample was composed of 256 participants. Table 1 summarizes the main characteristics of the
TQM Utilitarian
(cognitive) elements
35,5
Information quality
H1
System quality
Experience with H3
Figure 1.
The research model chatbot
Gender
Women 152 (59.4%)
Men 104 (40.6%)
Age
<20 years 4 (1.6%)
20–29 years 63 (24.6%)
30–39 years 96 (37.5%)
40–49 years 82 (32.0%)
50þ years 11 (4.3%)
Education
Middle school degree 4 (1.6%)
High school degree 97 (37.9%)
Bachelor/Master’s degree 138 (53.9%)
Doctoral and other postgraduate degrees 17 (6.6%)
Occupation
Student 45 (17.6%)
Employee 137 (53.5%)
Self-employed 31 (12.1%)
Unemployed 5 (2.0%)
Other 38 (14.8%)
Why did you interact with a chatbot?
Asking information 89 (34.6%)
Buying products/services 41 (16.0%)
Asking for assistance 91 (35.6%)
Making complaints 35 (13.8%)
To what sector do your most frequent chatbots belong?
Fashion 21 (8.4%)
Personal (health)care 16 (6.2%)
Technology 72 (28.0%)
Telecommunications 75 (29.4%)
Table 1. Travel and entertainment 34 (13.1%)
Sample description Financial and insurance services 38 (14.9%)
sample. Participants reported using chatbots mostly to ask information or ask for assistance. Effects of
Chatbots that were mostly used by participants belonged to telecommunications and chatbots’
technology, while chatbots from industries such as personal (health)care and fashion were
rarely mentioned. While these data reflect the respondents’ actual experience, they also
attributes
suggest that the results of our analysis cannot be directly generalized to all industries.
The questionnaire included multiple-item measures for each construct developed from
previous studies. Specifically, information quality, system quality and customer experience
with the chatbot were measured, using four, five and three items, respectively, from the study 1161
by Trivedi (2019). Customer satisfaction was determined on the basis of four items from
Chung et al. (2020). Finally, three items from Algesheimer et al. (2005) were used to measure
brand relationship quality. Respondents were asked to refer to their latest experience with a
chatbot and then give their ratings. All items were measured on five-point Likert scales, with
extremes being 1 5 totally disagree and 5 5 totally agree. Consistently with the original
scales, constructs were modeled as reflective. Table 2 shows the complete list of items.
Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM)
(Hair et al., 2020). The analysis was conducted using the software SmartPLS 3 (Ringle et al.,
2015). PLS-SEM is a nonparametric method and, unlike covariance-based structural equation
modeling, makes no distributional assumptions (Hair et al., 2017). This method is suitable
when the purpose is the assessment of a model’s predictive power, the main focus of this
study (Hair et al., 2019).
The “standard” PLS-SEM estimations was then complemented with an IPMA. This is a
well-established method of analysis to assess customer acceptance of specific features of the
offering and is based on the assumption that “consumer satisfaction is a function of both
expectations related to certain important attributes and judgments of attribute performance”
(Martilla and James, 1977, p. 77). Available studies particularly emphasize how IPMA can
provide managerially relevant insights, helping organizations to prioritize important
attributes to work on (Phadermrod et al., 2019). Specifically IPMA has been extensively
applied to quality improvement (Roy et al., 2020) and to technology design, such as in the case
Outer
Construct Items loadings
Information quality IQ1: (Brand) chatbot provided me with the necessary information 0.966
IQ2: (Brand) chatbot provided responses to queries as I expected 0.907
IQ3: (Brand) chatbot provided sufficient information 0.912
IQ4: The information provided by (brand) chatbot was helpful 0.883
regarding my questions or problems
System quality SQ1: I found it easy to become skillful at using (brand) chatbot 0.831
SQ2: I believe that (brand) chatbot is easy to use 0.865
SQ3: Using (brand) chatbot required minimal mental effort 0.726
SQ4: (Brand) chatbot was quick in response 0.856
SQ5: Chatbots from (brand) are reliable 0.751
Experience with the EWC1: I enjoyed using (brand) chatbot 0.859
chatbot EWC2: The experience of using (brand) chatbot was interesting 0.831
EWC3: I am happy with the experience of using (brand) chatbots 0.900
Customer satisfaction CS1: I am satisfied with the chatbot 0.921
CS2: The chatbot did a good job 0.907
CS3: The chatbot did what I expected 0.879
CS4: I am happy with the chatbot 0.945
Brand-relationship BRQ1: This brand says a lot about the kind of person I am 0.694
quality BRQ2: This brand’s image and my self-image are similar in many 0.868
respects Table 2.
BrQ3: This brand plays an important role in my life 0.815 Measurement scales
TQM of mobile applications’ features (Chen et al., 2016). Prior applications of IMPA have shown
35,5 that direct measures of attributes’ importance – i.e. measures obtained from participants’
ratings using Likert scales – can provide biased findings (Oh, 2001). Thus, indirect measures
of importance such as those derived for example from correlation or multiple regression
analysis have been recommended (Azzopardi and Nash, 2013). Therefore, in this work, we
used an indirect measure of importance, which is equal to the total effects on the target
construct, provided by the PLS-SEM analysis.
1162 IPMA has been recently applied in the context of PLS-SEM to enable researchers to gain richer
and more precise insights from their findings because it simultaneously considers both the path
coefficients estimates and the average values of the latent variable scores (Ringle and Sarstedt,
2016). In our study, the “standard” PLS-SEM analysis allowed to understand the magnitude of the
effects of the three independent variables information quality, system quality and experience with
chatbot on customer satisfaction. However, this analysis did not evaluate the average values of
these three independent variables. In other words, it did not consider whether, according to
participants’ ratings, chatbots performed well or not in terms of information quality, system
quality and experience. The joint evaluation of these constructs’ importance (i.e. of their effects of
customer satisfaction) and performance (i.e. of their average values) enabled us to completement
“standard” PLS-SEM results with relevant insights to guide managerial action (Hair et al., 2018).
The final output of the IPMA is a map in which the x-axis shows the importance and the
y-axis the performance of each attribute. In particular, the performance latent results from the
rescaling of each attribute’s average scores on a scale from 0 to 100 (where 0 and 100 indicate
the lowest and highest levels of performance, respectively). The map can further be divided
into four areas through the addition of a vertical line representing the mean importance value
and a horizontal line depicting the mean performance value. As a result, each attribute will be
placed within one specific area characterized by a certain level of importance (low or high) and
a certain level of performance (low or high) (Hair et al., 2018).
Finally, we extended IPMA on the indicator level, meaning that we examined the
importance and performance of each of the items used to measure the three independent
variables (Table 2). This additional level of analysis made it possible to identify more specific
areas of intervention (Hair et al., 2022; Ringle and Sarstedt, 2016).
4. Results
4.1 Measurement model assessment
All constructs’ measurement models were specified as reflective. Hence, they were evaluated
based on outer loadings, internal consistency reliability, convergent validity and discriminant
validity (Hair et al., 2020). As shown in Table 2, outer loadings were above the recommended
value of 0.707, with only one exception, which was nonetheless very close to that value (BRQ1,
0.694). Hence, the underlying factor explains more than 50% of each indictor’s variance. Next,
the internal-consistency reliability was assessed (Table 3). For all latent variables, the values of
Cronbach’s alpha, exact reliability, ρA and composite reliability were greater than 0.70, showing
that the internal-consistency reliability was met (Dijkstra and Henseler, 2015; Hair et al., 2017).
Moreover, convergent validity was assessed because, for all constructs, the values of the average
variance extracted (AVE) were greater than 0.50 (Hair et al., 2019). Finally, discriminant validity
was met as well because the square root of each construct’s AVE was greater than its highest
correlation with any other construct, as requested by the Fornell–Larcker criterion (Fornell and
Larcker, 1981) (Table 4).
Brand-
relationship Customer Experience with Information System
quality satisfaction the chatbot quality quality
Brand- 0.796
relationship
quality
Customer 0.748 0.913
satisfaction
Experience with 0.709 0.716 0.864
the Chatbot
Information 0.694 0.902 0.623 0.918
quality Table 4.
System quality 0.682 0.704 0.612 0.711 0.808 Discriminant validity:
Note(s): Correlations among constructs are shown below the diagonal; the square roots of the AVEs shown on Fornell-Larcker
the diagonal criterion
TQM HP Path 95% confidence
35,5 number Effect coefficients t values intervals
Figure 2.
Model estimates
Figure 3.
The results of IMPA
(construct level)
performance of the two most important attributes (information quality and experience with
chatbot) is below the average value of performance, indicating that there is room for
improvement. Specifically, a one-unit increase in information quality’s performance (from the
current level of 61.65–62.65) would increase customer satisfaction by 0.72 points (from the
current level of 58.94–59.66). A one-unit increase in customer experience’s performance would Effects of
increase customer satisfaction by 0.23 points. Therefore, chatbot designers should prioritize chatbots’
actions to increase information quality.
Finally, Table 6 shows the results of the IPMA on the indicator level. These data highlight the
attributes
specific aspects to improve. Among the items that measure information quality, IQ3 shows a
high level of importance and a relatively low level of performance, suggesting that designers
could focus on the improvement of the quantity of information provided by the chatbot. On the
contrary all system quality’s items have high levels of performance and low levels of importance. 1165
These findings indicate that currently there is no urgency to enhance these aspects.
To complete the PLS-SEM analysis we evaluated the model explanatory power.
The coefficients of determination R2 of the endogenous constructs were high. Specifically, for
customer satisfaction, R2 was 0.854, and for brand-relationship quality, R2 was 0.559. Hence, we
concluded that the model had high explanatory power. Finally, we assessed the model’s
predictive power using the PLSpredict routine instead of the blindfolding procedure, as suggest
by recent methodological works (Sarstedt et al., 2022a, b). We ran PLSpredict with 10 folds and
10 repetitions. The findings showed that, for all items except one (BRQ1), the PLS-SEM
estimation generated a lower prediction error (root mean squared error) compared with the
linear-model benchmark. In addition, all the items measuring brand relationship quality had a
value of Q2predict higher than 0. This analysis confirmed that the model had suitable predictive
power (Shmueli et al., 2019).
Importance Performance
Indicator (0.00–1.00) (0–100)
IQ1: (Brand) chatbot provided me with the necessary information 0.210 64.440
IQ2: (Brand) chatbot provided responses to queries as I expected 0.199 63.362
IQ3: (Brand) chatbot provided sufficient information 0.192 57.974
IQ4: The information provided by (brand) chatbot was helpful regarding my 0.184 60.129
questions or problems
EWC3: I am happy with the experience of using (brand) chatbots 0.096 57.543
EWC1: I enjoyed using (brand) chatbot 0.091 53.879
EWC2: The experience of using (brand) chatbot was interesting 0.090 55.819
SQ1: I found it easy to become skillful at using (brand) chatbot 0.017 60.129
SQ4: (Brand) chatbot was quick in response 0.013 77.371
SQ2: I believe that (brand) chatbot is easy to use 0.011 76.940
SQ5: Chatbots from (brand) are reliable 0.009 76.724 Table 6.
SQ3: Using (brand) chatbot required minimal mental effort 0.007 80.172 The results of the
Note(s): *The items are ordered according to their levels of importance IPMA (indicator level)*
TQM satisfaction. However, as noted in our analysis, this unexpected finding may be related to a
35,5 sort of ceiling effect. Regarding the hedonic (affective) elements, our study confirms the role of
the emotional experience in determining customer satisfaction. Information quality and
emotional experiences with chatbots are crucial in determining customer satisfaction and,
finally, enhancing the brand relationship. Therefore, while e-service agents are typically the
results of technological advancements, firms must not forget what consumers truly require
from service agents: the quality of information and an emotional experience. Consumers do
1166 not expect technical perfection, but, overall, consumers appear interested in the quality of the
information received and in the emotions derived by their relationships with chatbots. The
results confirm the trend to humanize the technology. Therefore, firms are encouraged to
consider both the utilitarian and hedonic aspects of the consumer experience carefully when
designing their chatbots. In addition, from the managerial point of view, the results also
confirm the need to integrate elements of TQM with elements related to TM. Thus, it becomes
essential in the perspective of continuous improvement of customer services to take into
account the growing importance of the impacts of these new technologies.
Of course, this study presents several limitations. More data should be collected to
corroborate the results. In the future, it will be useful to deepen the analysis by comparing the
estimations in different sectors to identify whether the roles of chatbots change in relation to
the sector (e.g., the advanced technological versus the traditional sectors). Customer
perceived importance of chatbots’ attributes may also vary depending on the industry. For
example, system quality may register higher importance in the health-care industry (May and
Denecke, 2022). It also will be useful also to repeat the survey in the future in different
countries to capture potential differences.
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Corresponding author
Francesca Magno can be contacted at: [email protected]
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