Media richness of chatbot

Problem Statement

In the recent year, with the rapid development of chatbots, chat commerce becomes a new trend in e-commerce. More and more enterprises or retailers would like to develop a chatbot which can communicate with their customers.However, people aren’t familiar with chatbot and wouldn’t want to interact with it because of knowing it is a bot or thinking it isn’t smart.Therefore, it’s a key point to know which feature of chatbot would increase people’s intention to use or intention to purchase something in chatbot.

 

Project Goals

  • Exploring which reason could make people want to purchase merchandise in chatbot.
  • Finding which features of chatbot could make people feel close with chatbot and that could increase their purchase intention.

 

Theory development and hypotheses

Through literature reading, I find that if decrease psychological distance between customers and retailers, that would increase customers’ purchase intention. Therefore,I deduct that decreasing psychological distance between customers and chatbot would increase customers’ intention to purchase in chatbot.
Media richness theory states that communication consists of a variety of cues that convey both information and help a receiver resolve ambiguity and uncertainty by providing a social, emotional, or task-related context(Otondo, 2008). Chatbot is a new communication media.Thus, we could explore media richness of chatbot to realize the communication capability of it has. Media richness consists of immediate feedback, personal focus, multiple of cues(Daft & Lengel, 1987) , the explanation are as follow:

  • Immediate feedback: the capability of responding instantly and revise problems
  • Personal focus: adding emotion or personality in communication would comprehensively express message to others
  • Multiple of cues: a series of information cues including voice, body language ,texts , numbers, and symbols

Hypotheses

Gunawardena(1995)consider that immediacy could make people feel interaction with others by decreasing time of intermediary communication. This method could decrease psychological distance between human and human.Therefore,I inferred that when immediate feedback is increased, the psychological distance between human and chatbot would be decreased.

  • H1:Chatbot’s immediate feedback negatively affects psychological distance between human and chatbot.
  • Previous thesis shows that  sense of humor and pleasure could decrease psychological distance between human and human in interpersonal communication,and enhance relationship(Graham, 1995).  
    Hence,I inferred that when personal focus is increased, the psychological distance between human and chatbot would be decreased.

  • H2 :Chatbot’s personal focus negatively affects psychological distance between human and chatbot.
  • According to social presence theory, the richer the multiple information of  media provides,the more socio-emotional communication would happen(Hiltz, Johnson & Turoff , 1986).Thus,I inferred that when multiple of information cues are increased, the psychological distance between human and chatbot would be decreased.

  • H3 : Chatbot’s multiple of information cues negatively affects psychological distance between human and chatbot.
  • Decreasing psychological distance would make people feel close to each other.
    Ng (2013) indicated intimate emotional connections will motivate people’s intention to purchase.Therefore,I inferred that the psychological distance between human and chatbot decrease, human would feel  more intimate with chatbot and the close connection would increase their purchase intention.

  • H4:  Psychological distance between human and chatbot  negatively affects humans’ purchase intention.
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    Research methods

    In my research,I use questionnaire to investigate which chatbot’s feature could decrease psychological distance between human and chatbot.
    Many companies have begun to use chatbots as assistants for their websites, such as eBay, H&M, Macy's, etc. eBay is an online retailer that many people know, and its chatbot is placed on Facebook Messenger, which is easier for users to reach and has variety of products online. Thus, this study chose eBay ShopBot as a bot for experiencing.

    I use SPSS 24.0 to analysis respondents’ basic information and the descriptive statistics of chatbots’ user experience and use SmartPLS 3.2.7 to conduct confirmatory factor analysis to make sure those measurements are valid in my thesis. Through path analysis and path coefficient, we could determine the  correlation and influence between independent variable and dependent variable in my research model.

     

    Research findings

    This empirical study conducted a questionnaire survey of the users who have experienced the eBay ShopBot. In total, 380 questionnaires were obtained. 43 questionnaires were determined as invalid ,leaving 337 valid responses. The following tables are participant’s background and path coefficient:

    Participant background

    Male respondents are 126, accounting for the 37.4% of the total ; female respondents were 211, accounting for 62.6% of the total.

     

    From the table, the respondents from 21~30 years old  at most ,there are 225 people,accounting for 66.8% of the total.

     

    According to education proportion, the most one is college accounting for 62% of the total

     

    In this research, students takes most part accounting for 68.2% of the total.

     

    Regarding whether the participant has used chatbot, this study demonstrated  174 people have experience using chat bots, accounting for 51.6% of the total, more than half of participants have the experience.

     

    Path coefficient

    Through our path cofficient, immediacy feedback,personal focus ,multiple of information cues of chatbot have significant negative impact on psychological distance. Psychological distance has significant negative effect on purchase intention. Thus,H1~H4 are all supported.

    According to our findings, there are three important attributes of chatbot that make user feel more closer to chatbot and feel more comfortable using it:

    • respond message immediately
    • a variety of cues to interact with users
    • has personality with it

    When user feel closer with chatbot , they would like to purchase things in chatbot.When user feel closer with chatbot , they would like to purchase things in chatbot.Thus,enterprises who want to develop chatbots should consider immediate feedback,personality of chatbot and a variety of method to interact with human.They could also pay more attention on which features could decrease distance of human feel and increase their desire of purchasing.

     

    Way forward

    The participants of this research consists of students so it couldn’t present normal public’s opinion. Also, my research method is online questionnaire,so I only could measure people’s perspective of using eBay ShopBot.I suggest that we could invite different age groups to participate questionnaire and conduct  interview to realize more different ideas when they use chatbot.