AI-POWERED CUSTOMER SERVICE: IMPACT OF CHATBOTS ON CUSTOMER SATISFACTION AND RETENTION

Abstract

Purpose – The purpose of this study is to investigate the ways in which Customer Satisfaction mediates the relationship between Chatbot Service Quality and Customer Retention.

Design/methodology/approach – The analysis was conducted on data collected from 173 respondents across 28 service sector organizations in Gilgit-Baltistan. Regression analysis was employed to examine the validity and dimensionality of the study variables.

Findings – The outcomes suggest that Chatbot Service Quality is essential for predicting Customer    Retention. Customer Satisfaction serves as a mediator between Chatbot Service Quality and Customer    Retention.

Research limitations/implications – The data were restricted to a cross-sectional design within the Gilgit-Baltistan setting, making it potentially unsuitable for generalization across Pakistan. Moreover, the sample size is smaller in comparison, yet the results are not negatively impacted.

Originality/value – There is currently insufficient study conducted in Pakistan on the relationship between Chatbot Service Quality and Customer Satisfaction. This study represents a thorough investigation into how Customer Satisfaction affects the connection between Chatbot Service Quality and Customer    Retention.

Keywords:

Chatbot Service Quality, Customer Satisfaction, Customer Retention, Gilgit-Baltistan Pakistan