Customer experiences in the age of artificial intelligence

Artificial intelligence (AI) is revolutionising the way customers interact with brands. There is a lack of empirical research into AI-enabled customer experiences. Hence, this study aims to analyse how the integration of AI in shopping can lead to an improved AI-enabled customer experience. We propose a theoretical model drawing on the trust-commitment theory and service quality model. An online survey was distributed to customers who have used an AI- enabled service offered by a beauty brand. A total of 434 responses were analysed using partial least squares-structural equation modelling. The findings indicate the significant role of trust and perceived sacrifice as factors mediating the effects of perceived convenience, personalisation and AI-enabled service quality. The findings also reveal the significant effect of relationship commitment on AI-enabled customer experience. This study contributes to the existing literature by revealing the mediating effects of trust and perceived sacrifice and the direct effect of relationship commitment on AI-enabled customer experience. In addition, the study has practical implications for retailers deploying AI in services offered to their customers.

[2]  J. Kandampully,et al.  Building stronger hospitality brands through online communities , 2018, Journal of Hospitality and Tourism Technology.

[3]  M. Cortimiglia,et al.  Influence of perceived value on purchasing decisions of green products in Brazil , 2016 .

[4]  G. Schewe,et al.  ENHANCING TRUST OR REDUCING PERCEIVED RISK, WHAT MATTERS MORE WHEN LAUNCHING A NEW PRODUCT? , 2014 .

[5]  V. Clulow,et al.  Retail centres: it's time to make them convenient , 2009 .

[6]  John Edwards,et al.  Personalised online sales using web usage data mining , 2007, Comput. Ind..

[7]  Yan Li,et al.  Service quality, perceived value, and citizens' continuous-use intention regarding e-government: Empirical evidence from China , 2020, Inf. Manag..

[8]  A. Gustafsson,et al.  The Effects of Customer Satisfaction, Relationship Commitment Dimensions, and Triggers on Customer Retention , 2005 .

[9]  S. Searby,et al.  Personalisation — An Overview of its Use and Potential , 2003 .

[10]  Yi-Shun Wang,et al.  The stickiness intention of group-buying websites: The integration of the commitment-trust theory and e-commerce success model , 2016, Inf. Manag..

[11]  BenbasatIzak,et al.  The effects of personalizaion and familiarity on trust and adoption of recommendation agents , 2006 .

[12]  Gordon L. Fullerton,et al.  The Impact of Brand Commitment on Loyalty to Retail Service Brands , 2009 .

[13]  Q. B. Chung,et al.  Making a case for speech analytics to improve customer service quality: Vision, implementation, and evaluation , 2019, Int. J. Inf. Manag..

[14]  Victor A. Barger,et al.  Mobile banking and AI-enabled mobile banking , 2018, Journal of Research in Interactive Marketing.

[15]  E. Izogo Determinants of attitudinal loyalty in Nigerian telecom service sector: Does commitment play a mediating role? , 2015 .

[16]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[17]  W. Goldstein,et al.  Consumer Choice and Autonomy in the Age of Artificial Intelligence and Big Data , 2017, Customer Needs and Solutions.

[18]  Graeme McLean,et al.  Hey Alexa ... examine the variables influencing the use of artificial intelligent in-home voice assistants , 2019, Comput. Hum. Behav..

[19]  Nick Hajli,et al.  Towards an Ethical and Trustworthy Social Commerce Community for Brand Value Co-creation: A trust-Commitment Perspective , 2019, Journal of Business Ethics.

[20]  Gary Horrocks,et al.  Impact on Artificial Intelligence , 2019, AI Development and the ‘Fuzzy Logic' of Chinese Cyber Security and Data Laws.

[21]  Uthayasankar Sivarajah,et al.  Investigating the effects of smart technology on customer dynamics and customer experience , 2018, Comput. Hum. Behav..

[22]  Online Customer Experience , 2014 .

[23]  Linda Ng Boyle,et al.  Extending the Technology Acceptance Model to assess automation , 2011, Cognition, Technology & Work.

[24]  Tim C Kietzmann,et al.  Artificial intelligence (AI) and its implications for market knowledge in B2B marketing , 2019, Journal of Business & Industrial Marketing.

[25]  Katherine N. Lemon,et al.  Understanding Customer Experience Throughout the Customer Journey , 2016 .

[26]  Suraksha Gupta,et al.  Influence of innovation capability and customer experience on reputation and loyalty , 2016 .

[27]  Jean-Noël Kapferer,et al.  The specificity of luxury management: Turning marketing upside down , 2009 .

[28]  T. Keiningham,et al.  A longitudinal examination of customer commitment and loyalty , 2014 .

[29]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[30]  Andrea Ferrario,et al.  In AI We Trust Incrementally: a Multi-layer Model of Trust to Analyze Human-Artificial Intelligence Interactions , 2019, Philosophy & Technology.

[31]  K. Butcher,et al.  Effects of quality and corporate social responsibility on loyalty , 2014 .

[32]  S. Roy,et al.  Generic technology-based service quality dimensions in banking: Impact on customer satisfaction and loyalty , 2011 .

[33]  H. Teo,et al.  The effects of retail channel integration through the use of information technologies on firm performance , 2012 .

[34]  Pin-Fenn Chou,et al.  AN EVALUATION OF SERVICE QUALITY, TRUST, AND CUSTOMER LOYALTY IN HOME-DELIVERY SERVICES , 2014 .

[35]  Kok Wei Khong,et al.  Path analysis of atmospherics and convenience on flow: the mediation effects of brand affect and brand trust , 2012 .

[36]  James W. Keefe,et al.  What is Personalization? , 2007 .

[37]  M. Gilly,et al.  eTailQ: dimensionalizing, measuring and predicting etail quality , 2003 .

[38]  S. Roy,et al.  Constituents and consequences of smart customer experience in retailing , 2017 .

[39]  Dhruv Grewal,et al.  How artificial intelligence will change the future of marketing , 2019, Journal of the Academy of Marketing Science.

[40]  Edward Shih-Tse Wang,et al.  Perceived quality factors of location-based apps on trust, perceived privacy risk, and continuous usage intention , 2017, Behav. Inf. Technol..

[41]  Rytis Maskeliūnas,et al.  Relationship between Convenience, Perceived Value, and Repurchase Intention in Online Shopping in Vietnam , 2018 .

[42]  Ernest Emeka Izogo,et al.  Customer loyalty in telecom service sector: the role of service quality and customer commitment , 2017 .

[43]  Vittorio Chiesa,et al.  Commercializing Technological Innovation: Learning from Failures in High-Tech Markets* , 2011 .

[44]  w-hen Dodd A GLOSSARY OF PSYCHOLOGICAL TERMS , 1941 .

[45]  Nils Urbach,et al.  Structural Equation Modeling in Information Systems Research Using Partial Least Squares , 2010 .

[46]  Kristopher J Preacher,et al.  Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models , 2008, Behavior research methods.

[47]  C. Prentice,et al.  The impact of artificial intelligence and employee service quality on customer satisfaction and loyalty , 2020, Journal of Hospitality Marketing & Management.

[48]  Mohammad Hossein Jarrahi,et al.  Artificial intelligence and the future of work: Human-AI symbiosis in organizational decision making , 2018, Business Horizons.

[49]  Susan Wiedenbeck,et al.  On-line trust: concepts, evolving themes, a model , 2003, Int. J. Hum. Comput. Stud..

[50]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[51]  N. Paparoidamis,et al.  Building Customer Loyalty in Intercultural Service Encounters: The Role of Service Employees’ Cultural Intelligence , 2019, Journal of International Marketing.

[52]  V. Zeithaml Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence: , 1988 .

[53]  S. Halbouni,et al.  An empirical study of the drivers of management accounting innovation: a UAE perspective , 2014 .

[54]  C. Droge,et al.  Service quality, trust, specific asset investment, and expertise: Direct and indirect effects in a satisfaction-loyalty framework , 2006 .

[55]  Jay Kandampully,et al.  Towards a unified customer experience in online shopping environments , 2016 .

[56]  Paurav Shukla,et al.  Customer commitment to luxury brands: Antecedents and consequences , 2016 .

[57]  Nathalie T. M. Demoulin,et al.  Adoption of in-store mobile payment: Are perceived risk and convenience the only drivers? , 2016 .

[58]  M. Ahammad,et al.  Antecedents and consequences of online customer satisfaction: A holistic process perspective , 2017 .

[59]  Salvatore Parise,et al.  Solving the crisis of immediacy: How digital technology can transform the customer experience , 2016 .

[60]  S. Shyam Sundar,et al.  When expert recommendation contradicts peer opinion: Relative social influence of valence, group identity and artificial intelligence , 2020, Comput. Hum. Behav..

[61]  John Sheridan An exploration into the potential impact in adopting a personalisation strategy and how it could affect the customer’s experience on a company’s own website , 2017 .

[62]  Heeseok Lee,et al.  Effects of Web retail service quality and product categories on consumer behavior: a research model and empirical exploration , 2004, 37th Annual Hawaii International Conference on System Sciences, 2004. Proceedings of the.

[63]  Mariapaola Saponaro,et al.  Challenges and Opportunities of Artificial Intelligence in the Fashion World , 2018, 2018 International Conference on Intelligent and Innovative Computing Applications (ICONIC).

[64]  J. Ritchie,et al.  The service experience in tourism , 1996 .

[65]  Susan Rose,et al.  Online customer experience in e-retailing: an empirical model of antecedents and outcomes , 2012 .

[66]  Matthias Scheutz,et al.  Sacrifice One For the Good of Many? People Apply Different Moral Norms to Human and Robot Agents , 2015, 2015 10th ACM/IEEE International Conference on Human-Robot Interaction (HRI).

[67]  Yogesh Kumar Dwivedi,et al.  Achieving superior organizational performance via big data predictive analytics: A dynamic capability view , 2019, Industrial Marketing Management.

[68]  Marko Sarstedt,et al.  Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research , 2014 .

[69]  Keng Siau,et al.  Building Trust in Artificial Intelligence, Machine Learning, and Robotics , 2018 .

[70]  Alan K. Mackworth,et al.  Artificial Intelligence - Foundations of Computational Agents , 2010 .

[71]  Shun Yin Lam,et al.  The Effects of Store Environment on Shopping Behaviors: a Critical Review , 2001 .

[72]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[73]  G. Mortimer,et al.  Re-examining online customer experience to include purchase frequency and perceived risk , 2015 .

[74]  Wonsun Shin,et al.  Who avoids location-based advertising and why? Investigating the relationship between user perceptions and advertising avoidance , 2016, Comput. Hum. Behav..

[75]  Katherine N. Lemon,et al.  Customer Experience Creation: Determinants, Dynamics and Management Strategies , 2009 .

[76]  Katherine N. Lemon,et al.  Customer Engagement Behavior: Theoretical Foundations and Research Directions , 2010 .

[77]  Veda C. Storey,et al.  Business Intelligence and Analytics: From Big Data to Big Impact , 2012, MIS Q..

[78]  Daniel Burton Shank,et al.  Feeling our way to machine minds: People's emotions when perceiving mind in artificial intelligence , 2019, Comput. Hum. Behav..

[79]  C. Prentice,et al.  The role of airport service quality in airport and destination choice , 2019, Journal of Retailing and Consumer Services.

[80]  Oriol Iglesias,et al.  The role of brand experience and affective commitment in determining brand loyalty , 2011 .

[81]  Joanna McGrenere,et al.  Beyond performance: Feature awareness in personalized interfaces , 2010, Int. J. Hum. Comput. Stud..

[82]  Tan Hoi Piew,et al.  The Effects of Shopping Orientations, Online Trust and Prior Online Purchase Experience toward Customers’ Online Purchase Intention , 2010 .

[83]  John G. Lynch,et al.  Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis , 2010 .

[84]  C. Dennis,et al.  The Impact of Trust on Acceptance of Online Banking , 2006 .

[85]  M. Holbrook,et al.  A multidimensional service-value scale based on Holbrook’s typology of customer value: Bridging the gap between the concept and its measurement , 2017 .

[86]  Patrick Spieth,et al.  WHY INNOVATIONS FAIL — THE CASE OF PASSIVE AND ACTIVE INNOVATION RESISTANCE , 2013 .

[87]  Gjoko Stamenkov,et al.  Quo vadis, (e-)service quality? Towards a sustainability paradigm , 2019 .

[88]  M. Sarstedt,et al.  A new criterion for assessing discriminant validity in variance-based structural equation modeling , 2015 .

[89]  Dietmar Jannach,et al.  Measuring the impact of online personalisation: Past, present and future , 2019, Int. J. Hum. Comput. Stud..

[90]  D. Mahr,et al.  Unraveling the personalization paradox: The effect of information collection and trust-building strategies on online advertisement effectiveness , 2015 .

[91]  Ramnath K. Chellappa,et al.  Personalization versus Privacy: An Empirical Examination of the Online Consumer’s Dilemma , 2005, Inf. Technol. Manag..

[92]  T. Keiningham,et al.  The interplay of customer experience and commitment , 2017 .

[93]  John D. Lee,et al.  Trust in Automation: Designing for Appropriate Reliance , 2004, Hum. Factors.

[94]  Dennis F. Galletta,et al.  Extending the technology acceptance model to account for social influence: theoretical bases and empirical validation , 1999, Proceedings of the 32nd Annual Hawaii International Conference on Systems Sciences. 1999. HICSS-32. Abstracts and CD-ROM of Full Papers.

[95]  M. Mugiono,et al.  THE EFFECT OF SERVICE QUALITY ON CUSTOMER RETENTION THROUGH COMMITMENT AND SATISFACTION AS MEDIATION VARIABLES IN JAVA EATING HOUSES , 2018, Jurnal Aplikasi Manajemen.

[96]  A. Ball,et al.  Is personalization of services always a good thing? Exploring the role of technology‐mediated personalization (TMP) in service relationships , 2009 .

[97]  V. Virtanen,et al.  An Empirical Study of the Drivers of Consumer Acceptance of Mobile Advertising , 2007 .

[98]  G. Zaltman,et al.  Relationships between Providers and Users of Market Research: The Dynamics of Trust within and between Organizations , 1992 .

[99]  Youn-Kyung Kim,et al.  Shopping value orientation: Conceptualization and measurement , 2014 .

[100]  S. Réhman,et al.  The moderating role of trust and commitment between consumer purchase intention and online shopping behavior in the context of Pakistan , 2019, Journal of Global Entrepreneurship Research.

[101]  L Poole David,et al.  Artificial Intelligence: Foundations of Computational Agents , 2010 .

[102]  Houcine Akrout,et al.  Trust and commitment within a virtual brand community: The mediating role of brand relationship quality , 2018, Inf. Manag..

[103]  Elizabeth Paz-Pacheco,et al.  Trust and Commitment , 2016 .

[104]  Robert Willis,et al.  An examination of the gender gap in smartphone adoption and use in Arab countries: A cross-national study , 2018, Comput. Hum. Behav..

[105]  Ellen Enkel,et al.  Applied artificial intelligence and trust—The case of autonomous vehicles and medical assistance devices , 2016 .

[106]  C. Dell’Era,et al.  Innovation strategies in retail services: solutions, experiences and meanings , 2017 .

[107]  Detmar W. Straub,et al.  Specifying Formative Constructs in Information Systems Research , 2007, MIS Q..

[108]  Daniel L. Sherrell,et al.  Examining the influence of control and convenience in a self-service setting , 2010 .

[109]  Yogesh Kumar Dwivedi,et al.  Artificial Intelligence (AI): Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy , 2019, International Journal of Information Management.

[110]  Ting Li,et al.  Willing to pay for quality personalization? Trade-off between quality and privacy , 2012, Eur. J. Inf. Syst..

[111]  A. Parasuraman,et al.  Reassessment of Expectations as a Comparison Standard in Measuring Service Quality: Implications for Further Research , 1994 .

[112]  D. Iacobucci,et al.  A Meditation on Mediation: Evidence that Structural Equations Models Perform Better than Regressions , 2007 .

[113]  D. Ketchen A Primer on Partial Least Squares Structural Equation Modeling , 2013 .

[114]  Kim Hua Tan,et al.  Loyalty toward online food delivery service: the role of e-service quality and food quality , 2018, Journal of Foodservice Business Research.

[115]  Kia Javanmardian,et al.  Confronting the risks of artificial intelligence , 2019 .

[116]  Carol C. Bienstock,et al.  Measuring Service Quality in E-Retailing , 2006 .

[117]  Riadh Ladhari,et al.  The role of emotions in utilitarian service settings: The effects of emotional satisfaction on product perception and behavioral intentions , 2017 .

[118]  Michelle A. Morganosky,et al.  Cost‐ versus convenience‐oriented consumers: Demographic, lifestyle, and value perspectives , 1986 .

[119]  Nathalie Demoulin,et al.  Waiting time influence on the satisfaction‐loyalty relationship in services , 2007 .