Understanding the Influence of AI Chatbots on Customer Satisfaction: A Case Study of Pakistan's E-Commerce Industry

Abstract

Purpose: Chatbots are virtual helpers to communicate with customers like an actual customer service representative. This study looks at how AI chatbots influence customer satisfaction in online shopping support systems. It is particularly looking at the impact of customer perceptions of information quality, waiting time, pleasure, and arousal on satisfaction with AI chatbot interactions. Design, methodology and approach: The study used a quantitative, explanatory research design. The data was collected through a structured questionnaire which was adapted from the one used by Ruan and Mezei (2022).Constructed on a likert scale. First, 200 people were invited, who are online shoppers and use AI chatbots during the shopping process. Of the 184 data returns, 181 responses were used after checking and cleaning the data. Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS was used to analyse the relationships between variables. Results: The results indicate that the impact of AI chatbots on perceived information quality, perceived waiting time, pleasure and arousal is positive and strong. Out of the four mediation factors, pleasure and arousal are significant and positively influencing the customer satisfaction. The factors of information quality and perceived waiting time, however, did not significantly affect customer satisfaction. Originality/Value: This research joins a small number of studies that take both functional and emotional aspects of customer satisfaction with AI chatbots into account. It is all about online clothing retail business and examines the case study of Karachi, Pakistan and offers evidence as well as recommendations for brands considering implementing conversational AI in their customer service.