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Journal of Business Research 144 (2022) 703–716

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Journal of Business Research


journal homepage: www.elsevier.com/locate/jbusres

Engaging the Avatar: The effects of authenticity signals during chat-based


service recoveries
Carol L. Esmark Jones a, *, Tyler Hancock b, Brett Kazandjian c, Clay M. Voorhees a
a
Department of Marketing, University of Alabama, 107 Alston Hall, Tuscaloosa, AL 35487, United States
b
Department of Marketing and International Business, University of Toledo, 2801 W. Bancroft Street, Toledo, OH 43606, United States
c
Department of Marketing, Towson University, 123 Stephens Hall 8000 York Road, Towson, MD 21252, United States

A R T I C L E I N F O A B S T R A C T

Keywords: Marketing practitioners and consumers can benefit from more efficient communication by using online chats for
Retailing customer service. However, consumers desire a genuine experience and if the online chat experience is not
Customer Service believed to be authentic, it can detract from the benefits offered by using these new technologies. In four studies,
Loyalty
including one electroencephalogram (EEG) measurement study, the authors show that firms can increase
Satisfaction
Service Recovery
perceived authenticity of chat agents by sending signals via the avatars used in the chat system. The results
Chatbot indicate that avatar authenticity can be enhanced when the avatar is female, and these effects are amplified when
Avatar the avatar is dressed professionally or a different race than the consumer. This increased authenticity is shown to
drive engagement, loyalty, and satisfaction. The results offer fresh insight on how the use of avatars could help
firms improve customer perceptions of service for either human- or bot-supported chat experiences.

1. Introduction effectiveness on the frontlines (Wedel and Kannan, 2016).


Initially, firms and researchers focused on enhancing the authen­
With the increase in technological capabilities and competition, ticity of the chat-based interactions by ensuring that interactions were
many companies are investing in new channels to handle service in­ personalized for each customer by leveraging data in real-time (Hyken,
quiries. One area of emphasis is leveraging online chats to handle 2017). This ability to provide baseline excellence in these interactions
customer service complaints as they are the preferred method for cus­ that can be customized based on data has allowed chat-services to scale
tomers to contact a company (J.D. Power, 2017). These venues allow from simple recovery interactions to handling more complex service
firms to deploy either human or AI-powered chat representatives with issues. This commitment to overall service excellence through the core
the goal of providing efficient service recoveries that meet customer chat communication can promote provider/consumer co-creation in
needs and save on the cost of traditional channels (Ho, Hancock, and service recoveries (Dong et al., 2008) and enhance the customer support
Miner, 2018). These cost savings are a main driver of the shift to online process (Chung et al., 2018). Traditionally, consumers prefer a live agent
chats. When using live agents for online chats, costs are reduced as to AI and satisfaction is higher when users perceive an agent to be “real”
agents can handle multiple customers at one time (TELUS, 2015). Online (J.D. Power, 2017). However, the objective quality of chat-based in­
chat services that are managed by AI-bots are virtually free to run once teractions that are driven by AI has become so excellent that it now ri­
implemented (Wirtz et al., 2018) and have been heralded as saving firms vals or exceeds the service experience that human agents can provide
$8 billion annually. While these cost savings cannot be ignored, the through chat (Hyken, 2017).
signals sent by online chat agents must be positive and the service Despite increases in the overall efficacy of bot-based service, con­
experience must engage consumers through the recovery process. sumers remain hesitant to completely commit to chat-based service.
Despite the importance of ensuring a quality and authentic experience, These chat-based interactions are often perceived as being too stan­
academic research still has many opportunities to uncover how simple dardized and artificial (Liebrecht and van Hooijdonk, 2019) and con­
signals and other low-cost changes to the chat experience can positively sumers may feel that chat agents are a “shell” of a person rather than a
impact consumers, which can help calibrate chat experiences for ideal real individual (De Ruyter et al., 2018). This hesitation may be

* Corresponding author.
E-mail addresses: cejones28@ua.edu (C.L. Esmark Jones), tyler.hancock@utoledo.edu (T. Hancock), bkazandjian@towson.edu (B. Kazandjian), cmvoorhees@ua.
edu (C.M. Voorhees).

https://doi.org/10.1016/j.jbusres.2022.01.012
Received 11 January 2021; Received in revised form 3 January 2022; Accepted 6 January 2022
Available online 18 February 2022
0148-2963/© 2022 Published by Elsevier Inc.
C.L. Esmark Jones et al. Journal of Business Research 144 (2022) 703–716

particularly salient in online customer chats where consumers want Our findings have important implications for theory and practi­
customized service solutions and remedies that they do not feel artificial tioners and answers calls for research into the use of avatars in mar­
service agents can deliver (Price, 2018). Early research in this area keting (Miao et al., 2021). During chat-based service recoveries, firms
suggests that simply changing the conversational tone of a chat agent to can increase engagement, satisfaction, and loyalty by leveraging avatars
be more “human like” can increase engagement, effectiveness, and that are female and these effects can be further bolstered if the avatar is a
perceptions of personalization (Liebrecht and van Hooijdonk, 2019). different race than complaining consumer. Users also find the experi­
Thus, in the evolution of online chat management, firms have started to ence more authentic depending on what the representative is wearing.
deliver functional excellence through the use of AI-powered algorithms More realistic perceptions result when the avatar depicts a female
and increased engagement based on linguistic style, however, one dressed professionally or a male dressed casually. The findings of this
important aspect of the chat experience has been relatively unexplored: research help to contextualize avatar design that would impact a chat
the agent’s avatar. service recovery being perceived as more or less authentic, thus leading
Whether managed by a human or computer, most online customer to varying levels of engagement, loyalty, satisfaction, and a successful
chat services use avatars, which are defined as visual representations of service.
a user in virtual environments (Seinfeld, Feuchtner, Maselli, & Muller,
2020). Avatars can provide a direct signal regarding the authenticity of 2. Conceptual background
the agent to consumers and is likely the first signal a consumer will
experience as they develop an opinion of a chat agent. Given the 2.1. Communication accommodation theory
strength of this signaling effect of avatars, proper calibration is critical,
yet the effectiveness of avatars in driving better engagement is mixed, Research investigating online customer service has examined service
which might be due to the lack of research regarding effective design quality (Yang et al., 2004) and service delivery (Hodge et al., 2019).
(Miao et al., 2021). Firms have incredible flexibility in the extent to However, this literature examines neither the variables impacting how
which they deploy avatars for both human or AI-based agents and more authentic an online customer service representative is perceived to be
research is needed on how the characteristics one might assign to the nor the resulting relationships to loyalty and satisfaction. In the context
avatar of a customer service agent can increase functionality and of online chat agents, authenticity captures the extent to which a chat
customer use (Duffy, 2003). As a result, as firms seek to further enhance user believes the representative is a real person with individuality
consumer perceptions of online chat experiences, understanding the (Wentzel, 2009), empathy (MacInnis et al., 2002), and naturalness (Zhu
ability of an avatar and its design to impact consumer reactions is and Meyers-Levy, 2009). When a person communicates with someone,
important. the style and level of communication accommodation may greatly differ
Despite the need to signal more authenticity to consumers, the depending on their gender, sex, race, origin, and social class. The more
literature provides little insight on how to effectively design avatars similar two people are perceived to be, the less accommodation is
(Miao et al., 2021) and how design elements might impact consumers’ necessary because they already understand each other’s communication
perceptions of service. The potential signaling effects of a chat agent methods and styles (Giles et al., 1991). Giles et al. (1991) developed
have been found for avatar display choices as well as communication communication accommodation theory (CAT) to explain the tendency
cues (Blut et al., 2021; Wuenderlich and Paluch, 2017) and the real people have to adjust their communication style depending on who they
impact of these cues can be contingent on consumer characteristics like are addressing. Communication accommodation theory identifies two
consumer involvement (Holzwarth et al., 2006). These earlier studies types of communication behaviors: convergence and divergence.
show the promise of improving customer perceptions of service based on Convergence corresponds to the tendency of people to adapt to the other
the representation of a chat agent, but more foundational work is person’s communication characteristics (Giles et al., 1991), much like
needed. adults talking in a baby voice to toddlers. By accommodating the
There is minimal knowledge about how more common characteris­ communication style to fit the form of the message preferred by the
tics like an avatar’s gender, race, and dress can impact the evaluations of receiver, the communication process becomes more effective and cre­
customer service representatives. These signals play a critical role in the ates group cohesion (Liu et al., 2019). The adaptation of communication
way consumers initially perceive an agent based on their visual char­ also exists between consumers and businesses. It is common for com­
acteristics. Homophily theory suggests that exposing consumers to an panies to try to adapt to their consumers’ preference for communication
avatar that has similar traits would result in higher evaluations of the by hiring people with similar ethnic backgrounds (Holland and Gentry,
experience (Lazarsfeld and Merton, 1954). However, more recent 1999).
research suggests that consumers might move beyond this similarity When communicating with a seemingly similar person is not
preference in a customer service setting and alter evaluations based on possible, people might accentuate their differences to ease the commu­
gender (Snipes et al., 2006), race, and dress. As a result, there is tension nication process by setting parameters for each party (Gallois and Giles,
between traditional assumptions that we desire service from “someone 2015). This process, called divergence, may be enacted if a customer
like us” and beliefs regarding what types of people can provide more wants to distinguish him/herself or establish a different status from
authentic experiences in a customer service recovery role. Understand­ others to help facilitate effective communication (Dragojevic et al.,
ing these evaluations is critical for firms as they strive to calibrate both 2015; Giles et al., 2010). People may also use divergence tactics to
static and dynamic traits of their chat services. accentuate differences in communication styles to assert themselves in a
To provide more complete insight into these evaluative processes, we particular light (Giles and Ogay, 2007). Using communication diver­
leverage theories of genderlect (Tannen, 1990) and communication gence in business is risky, as it can negatively affect consumer percep­
accommodation (Giles and Ogay, 2007) to show that variables related to tions of a service provider’s quality and capacity for empathy (Balaji
the avatar impact the user’s perception of the service representative’s et al., 2017) and word of mouth intention (Van Vaerenbergh and
authenticity and that these perceptions affect engagement, satisfaction, Holmqvist, 2014). However, when used appropriately, divergence can
and loyalty. Specifically, this research focuses on some of the more be a useful communication tool in advertising (Lehnert et al., 2014).
direct and easily adjusted characteristics that firms can alter regarding Despite its potentially negative effects, CAT makes the case that diver­
their avatars: gender, race, and dress (professional versus casual). In gent communication can lead to better interactions with consumers
doing so, we provide new insight into how avatars used in online chat when meeting expectations established for communication roles.
experiences could be presented to consumers to increase engagement, Communication accommodation theory supports both the benefits of
thereby leading to more loyalty and satisfaction thus, properly facili­ having consumers communicate with people who are similar to them
tating service recoveries. but also with people who are different. Consumers’ ability to adapt their

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communication has important implications for the service industry. Perceived differences of an agent based on demographic signals is
Conversing with others perceived to be similar facilitates more pro­ likely contingent on the focal consumer too. Learned communication
ductive and concise communication (Gallois and Giles, 2015). While differences between men and women may shape the perceived authen­
companies can benefit from encouraging employees to communicate ticity of a chat experience. Tannen (1990) posits genderlect theory to
with consumers of similar ethnic backgrounds (Ludwig et al., 2013), it explain how different genders communicate by examining the preferred
does not mean that companies must find employees who perfectly match speech styles of men and women. A study by Coates (1986) suggests that
every consumer demographic. Interestingly, consumers speaking to a men and women communicate differently which could impact authen­
representative who is considered different may adapt their communi­ ticity. For example, women may attempt to establish a connection
cation behavior to inject much more detailed information into the through communication, while men attempt to establish and reinforce
conversation (Gallois and Giles, 2015). The additional information status and control a conversation. Women are perceived to be more
provided by a consumer should help the service agent to provide a better polite, cooperative, and facilitative in a conversation. Therefore, women
recovery response to the consumer request because CAT recognizes the are perceived to be more relationship goal-oriented and more likely to
advantage of convergence and divergence. As CAT does not specify reduce inequalities (Coates, 1986). Thus, consumers (both male and
when and what characteristics best facilitate communication, it is female) may feel that communicating concerns to a female customer
crucial to determine whether convergence or divergence in communi­ representative is more desirable as a female is capable of deeper ac­
cation is more effective in an online service chat setting. commodation in a conversation. While some research shows increased
trust and credibility of a virtual sales agent when genders are congruent
2.2. Perceptions of authenticity (Beldad, Hegner, & Hoppen, 2015), this preference for gender congruity
when communicating is stronger for women than it is for men (Rudman
Chatbots, or AI-powered simulated conversation (Ho, Hancock, and and Goodwin, 2004). This perception seems consistent with common
Miner, 2018), have advanced to a level where users of an online chat marketing practices since 68% of customer service representatives are
service feature cannot distinguish between a chatbot or a live agent. One women, and customer service is the ninth leading occupation for women
study found that 38% of users on a chat were not sure if they were (Occupations, 2013).
communicating with a human or AI, and an additional 18% were Additionally, the application default for the two most popular
incorrect in identifying their conversation partner as real or bot customer service/personal assistant AIs, Siri and Alexa, is female
(Wuenderlich and Paluch, 2017). Much research about chatbot (Gunkel, 2012). This suggests that consumers may perceive greater
communication (e.g., Liebrecht and van Hooijdonk, 2019; Van Pinxte­ convergence in communication with female customer service repre­
ren et al., 2020) suggests the application of interpersonal communica­ sentatives. However, research does not examine the impact of a female
tion theories and patterns to increase authenticity and increase the versus male image when communicating with online chat representa­
user’s engagement with chat services. tives. According to communication accommodation theory and its
However, the process of signaling an authentic interaction with av­ offshoot of muted group theory (Ardener, 1975), women are more likely
atars becomes a bit more complex. On one hand, when consumers to converge with men’s way of communication than men with women’s
experience anthropomorphic characters, they tend to view those char­ due to the status historically attributed to men (Tannen, 1990). Women
acters more favorably as they become more human-like (Mori et al., can communicate with other women, but when communicating with
2012) and users also react less strongly to anthropomorphized digital men, women are more likely and able to adjust their communication
assistants, which helps them to make a satisfying choice (Pizzi, Scarpi, & style than men are to change theirs to fit that of women. In general, men
Pantano, 2020). On the other hand, prior studies have shown consumers are more likely to use divergent communication strategies and women
dislike technology that looks very human-like but moves robotically are more likely to accommodate (Willemyns et al., 1997).
(Mori, 1970). These instances decrease familiarity and cause uneasiness, Since the perceived adaptation of language style to the preferences
a phenomenon known as the uncanny valley (Hsu, 2012). These findings and expectations of others helps to create positive attitudes (Sparks and
suggest consumer preference for and reaction to an online chat agent is Areni, 2002), reduce perceptions of service bias (Harris et al., 2003),
likely going to hinge on perceptions of authenticity of the agent. We encourage communicative understanding (Mariani et al., 2019), and
define authenticity perceptions as “the extent to which a user feels the limit cultural and social criticism (Marlow and Giles, 2010), perceived
agent is a real individual with the capability to feel and experience convergence may promote cohesion in encounters and may act to
empathy while communicating in a natural manner.” Authenticity per­ reinforce communication congruence (Beldad et al., 2015). Moreover,
ceptions are operationalized by how real the user believes the customer according to the relevant literature, convergence is also tied to genu­
representative to be through assessments of individuality (Wentzel, ineness, warmth, and authenticity (Sparks, 1994; Welkowitz and Kuc,
2009), empathy (MacInnis et al., 2002), and naturalness (Zhu and 1973), whereas divergence is seen as less authentic (Sparks, 1994). All of
Meyers-Levy, 2009). this suggests that women are more likely to converge in communication
When communicating with a service representative online, not much and should be perceived as more authentic:
is known about the representative except what can be seen. The most
H1: Avatar gender will have an impact on perceptions of authenticity
notable similarities and differences are likely to occur between the
such that female avatars will be perceived as more authentic than
perceived race and gender of the representative and of the user.
male avatars.
Research on person construal suggests that humans categorize faces
based on race and gender almost instantaneously and this categorization
process can serve as the basis for subsequent evaluations of an individual
(Volpert-Esmond and Bartholow, 2019). These fundamental signaling 2.3. Engagement
effects of human characteristics are supported by schema congruity
theory (Mandler, 1982), which has been applied to explain why Customer engagement is defined as a customer’s resource investment
matching an anthropomorphized product characteristic to the promoted in an interaction with a brand (Kumar et al., 2019) and can be viewed as
human schema can increase perceptions of a product being human a state versus an enduring process applied to a specific encounter and an
(Aggarwal and McGill, 2007). Similarly, using gendered words like “he” overall relationship (Brodie et al., 2011). In a customer service recovery
or “she” can increase humanness and gender congruity (the product is communication context, engagement implies that two parties come
male and the user is male) can increase product evaluations (Van den together and that the consumer is therefore actively interacting with a
Hende and Mugge, 2014). As a result, leveraging the signaling effects of service provider to find a solution. This is different from involvement,
gender with chat agents could shape authenticity. which is defined as “doing to” in a single line of action, as opposed to

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engagement, which involves “doing with” and is more reciprocal (Fer­ loyalty. This aspect of engagement addresses how communicators
lazzo, 2011). In resolving a customer service issue, engaging the perceive their conversational partners’ behavior and its effects on future
customer is critical as it increases the likelihood that the firm and con­ encounters between the two groups. Thus:
sumer can co-create a solution that restores the relationship. Specif­
H3: Engagement will have a positive relationship with a) loyalty and
ically, when consumers are engaged in an online customer service
b) satisfaction.
interaction, firms can benefit from more cohesive collaboration
(Sawhney et al., 2005), increasing the odds of enhancing the consumer
relationship (Vivek et al., 2012).
To bolster engagement in the customer service interaction, firms can 2.5. Interactions between Gender, Race, and dress
capitalize on the convergence of similarity to enhance communication
and establish effective interactions with customers (Giles et al., 1991). Tannen (1990) describes gender differences in communication as
For instance, customers that communicate with service representatives cross-cultural indicating that genders communicate differently regard­
conveying similar qualities (e.g., age, gender, socioeconomic status) less of culture. Women are more likely to converge and accommodate
need to adapt less to reach communication convergence and may require communications than men across many contexts and cultures (Gallois
less strain to communicate effectively (Giles et al., 2007). As this process and Pittam, 1996), however research using CAT has pointed out the
is less strained, a consumer can confidently convey information without greater difference in communication and bias when groups are different
fear of misinterpretation. The more similar the consumer is to the avatar, on two categorical elements (e.g., race and gender) in comparison to one
the more likely they both are to accommodate overall communication, categorial group difference (Hornsey and Gallois, 1998). While there’s a
thus leading to an easier convergence of communication styles. The greater likelihood of divergence between parties of different races (Giles
more dissimilar the two parties are, the more likely divergence is to and Ogay, 2007), therefore making convergence even more necessary
occur, as is over-accommodation, leading to condescending communi­ (Ayoko, Hartel, & Callan, 2002), group membership based on ethnicity
cation perceptions (Giles and Ogay, 2007). When communication con­ alone does not fully explain intercultural accommodation. Research
verges, it is perceived as warm (Sparks, 1994; Welkowitz and Kuc, 1973) examining communication by ethnicity or race must account for other
or genuine, whereas divergence is seen as less authentic (Sparks, 1994). group memberships, such as gender (Gallois and Pittam, 1996).
The more similar the speech style used is perceived to be more authentic However, little research has examined the interaction of race and
and should increase the likelihood a consumer will engage with the gender in relation to communication. One study showed that the nega­
representative (De Looze et al., 2014). Since genuine communication tive evaluations of an ethnic out-group were reversed when the out-
helps to immerse the individual in content (Neubaum & Krämer, 2017) group speaker was female, possibly on account of the out-group fe­
and promotes investment of effort in interactions (Hollebeek, 2011), it male being perceived as less of a threat (Gallois and Pittam, 1996). This
will lead to greater interactivity with the avatar (Ferlazzo, 2011) during could be due to women being more likely to use convergence strategies
a service recovery. Therefore: (Willemyns et al., 1997) which is even more essential to bridge the gap
in communication between different races. Ultimately, there is a greater
H2: Perceptions of authenticity will have a positive relationship with need for convergence across different races (Ayoko et al., 2002), which
engagement. women are more likely to do (Willemyns et al., 1997) in order to achieve
many positive evaluations such as to be accepted, gain approval
(Hornsey and Gallois, 1998), improve confidence, be more liked, and
2.4. Loyalty and satisfaction show interpersonal involvement (Hornsey and Gallois, 1998). Further,
as indicated for hypothesis one, convergence is associated with
When convergence is high, greater engagement can influence the authenticity (Sparks, 1994; Welkowitz and Kuc, 1973) where divergence
likelihood that a consumer will continue communicating effectively is perceived as less authentic (Sparks, 1994). Therefore, the positive
with the representative during a recovery, achieving a more favorable relationship between a female avatar and authenticity should be stron­
outcome than if less engagement had occurred. An individual on the ger when the avatar is perceived as a different race than the chat service
receiving end of a high level of accommodation is likely to develop a user.
greater sense of self-esteem and satisfaction than a receiver of low ac­ Formally:
commodation (Giles et al., 1979). As a customer takes on an active role
H4: The race congruence of an avatar moderates the effects of gender
to fill a need, effective engagement can lead to relationship enhance­
on authenticity to the extent that when an avatar is of a different
ments (Hollebeek, 2011) and brand commitment (Raïes et al., 2015).
race, female (versus male) avatars will have a more positive effect on
Therefore, the user’s level of satisfaction with the experience can be
authenticity and this effect is diminished when avatars are of similar
further enhanced (Maxham and Netemeyer, 2002). Additionally, just as
race.
easier accommodation can lead to more communication, customer
engagement can positively impact the company’s continued use through As previously established, research suggests that men and women
future loyalty (So et al., 2014). speak and communicate differently (Coates, 1986). It may be that how
As companies implement chat services to facilitate consumer each gender communicates through clothing has an impact on authen­
engagement, proper procedures should be taken to determine the ticity as well. Muted group theory (Kramarae, 1981) would support this
necessary accommodations to facilitate communication during a re­ notion, suggesting that women need to dress professionally to
covery as well. Positively rated conversations will most likely lead to compensate for their muted voice. Men, on the other hand, can dress
“further communication between the interlocutors and other members more casually as their voice has always been heard. Muted group theory
of their respective groups” (Gudykunst, 2005). However, these con­ might also suggest that a female in a customer service job is perceived as
sumers may be less likely to accommodate more differences as the being in a more professional career because of women’s history in the
necessary resources may lead to a reduced level of engagement in future workplace. A man in a customer service job, by contrast, may be
communication. Since more similar communicators provide easier ac­ perceived as being in a more casual job role compared to other male
commodation, it is assumed that this process will be rated as more counterparts. Therefore, it would seem realistic that a woman should
positive. The consumer may then choose to seek out the provider in the dress professionally and a male more casually for the same job.
future and speak favorably of the service recovery encounter (Homburg Additionally, CAT research has shown that males might consider a
and Fürst, 2005). Therefore, a consumer will be more likely to engage woman doing the same job as an undermining of power, a phenomenon
with the communicator in the future and with a heightened sense of referred to as workplace gender non-accommodation (Boggs and Giles,

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1999). When men feel women threaten certain parts of their job, they (Kramarae, 1981), women are seen as more genuine communicators,
may start to adopt non-accommodating behavior to signal to women presumably leading to greater engagement with the female avatars.
they aren’t wanted, such as using gendered talk (Boggs and Giles, 1999) However, instead of engagement explaining the relationship between
or dressing more casually. By dressing more casually, a male service authenticity and loyalty and satisfaction, it could be that effectiveness or
provider may choose to engage in communication divergence to efficiency is mediating the relationship between authenticity and the
differentiate and distinguish himself from others, and this incongruity final dependent variables. As women are better communicators, they
can enhance perceived authenticity. On the other hand, a female service would be seen as being more efficient or effective. As such, efficiency
provider may choose to maintain more formal attire and reinforce the and effectiveness are both investigated as potential alternative expla­
congruity of the customer’s expectations to increase authenticity. nations to engagement.
Finally, research on person construal suggests that signals an indi­
vidual sends with their attire can also alter how others categorize them 4.1. Procedure
(Quadflieg et al., 2011). In the context of an online chat with a service
firm, consumers expect to interact with a service professional, so A total of 139 participants took the survey through an online U.S.
viewing a professionally dressed avatar won’t alter their construal consumer panel (72.7% between the ages of 21–40, and 54.7% female;
process, which should allow the default gender effects to play out (i.e., 11 additional participants (4 from the female condition, 7 from the male
female avatars signal more authenticity). However, if consumers are condition) were deleted due to missed attention checks). Participants
exposed to an avatar that is casually dressed, this inconsistent signal were given a brief overview of the study and asked for their consent.
could detract from the gender categorization effects, reducing the Once participants agreed, they were given instructions and randomly
authenticity gains for female avatars. Taken together, it is predicted that shown one of two manipulated scenarios: a customer service online chat
female representatives are seen as more authentic when dressed pro­ with an image of a female or male representative (see Web Appendix A
fessionally, and the differences between male and female avatars is for full scenarios). Each participant was exposed to a service failure
reduced when avatars are dressed casually. Thus: where they had bought a pair of shoes online that were late in arriving,
and they found a customer service chat feature with the following chat
H5: The clothing of an avatar moderates the effects of gender on
bubble (then one of the two scenarios was presented). Participants were
authenticity to the extent that when an avatar is professionally
not told if the avatar represented a real person or a chatbot, as the
dressed, female (versus male) avatars will have a more positive effect
purpose was to capture the signaling effects of the avatar.
on authenticity and this effect is diminished when avatars are
Participants were then asked to answer survey questions regarding
featured in casual dress.
authenticity (α = 0.94; MacInnis et al., 2002; Wentzel, 2009; Zhu and
Meyers-Levy, 2009) (all constructs, items, and reliabilities are available
3. Overview of the studies in Table 1; descriptive statistics and correlations are available in Web
Appendix B), effectiveness (α = 0.91; Bolton et al., 2007), efficiency (α
Three studies were conducted to fully unravel the influence of = 0.92; Mathwick et al., 2001), engagement (α = 0.77; Hausman, 2004),
authenticity perceptions on consumer loyalty and satisfaction (see Fig. 1 loyalty (α = 0.94; Homburg and Fürst, 2005), and satisfaction (α = 0.91;
for variables tested in each study). Study 1 aims to examine the mech­ Maxham and Netemeyer, 2002).
anism by which authenticity perceptions lead to loyalty and satisfaction. The authenticity items captured the individuality (Wentzel, 2009),
Moreover, alternative explanations of efficiency and effectiveness are empathy (MacInnis et al., 2002), and naturalness (Zhu and Meyers-Levy,
ruled out to show that engagement is ultimately superior to explaining 2009) of the customer service agent. For engagement, the items focused
the proposed relationships. Study 2 further examines gender’s impact on on capturing the investments that consumers made in the interaction
engagement through word and character count as well as electroen­ and the effort taken to co-create a solution to their customer service
cephalogram (EEG) measurements of participants in a chat experience. issue, capturing the idea that engagement is best measured as the con­
Lastly, Study 3 examines the moderating effect of the avatar’s race being sumer’s investment of resources into an interaction (Kumar et al., 2019).
different or similar to the user and the impact on the perception of Finally, satisfaction and loyalty captured the overall happiness of con­
authenticity in Part A, while Part B examines the interaction of gender sumers based on the interaction as well as their intentions to support the
and the avatar being dressed either professionally or casually. firm through positive word of mouth and repurchase in the future.
Discriminant validity was assessed among the constructs using Fornell
4. STUDY 1: Examination of authenticity and its impact on and Larcker’s (1981) criterion. All of the constructs achieved discrimi­
engagement nant validity, as the average variance extracted for each construct was
greater than the squared correlations between any pairs of constructs
Study 1 examines H1-3, and the serial mediation effect of avatar (see Web Appendix B for the correlations between constructs and AVEs).
image on loyalty and satisfaction, as evidenced through authenticity and In addition to the primary measures of interest, a realism question
engagement. The avatar image is expected to have a relationship with was asked on a 1 = not realistic to 7 = very realistic scale, and partic­
authenticity perceptions such that an image of a real1 female repre­ ipants found the scenario more than moderately realistic (M = 5.53, SD
sentative will have higher perceptions of authenticity than a male = 1.29). A reading check question was also asked about halfway through
representative (H1). Authenticity is then predicted to have a positive the survey to ensure participants were paying attention; any participants
relationship with engagement (H2), and engagement will have a posi­ who failed the reading check question were redirected out of the survey
tive relationship with loyalty (H3a) and satisfaction (H3b). and their responses were not used. Further, participants were asked a
In addition to these proposed effects, we also supplement our manipulation check question regarding the gender of their avatar (i.e.,
mediation models by assessing the extent to which alternative expla­ whether they had been assigned a man or woman) and cases with
nations could capture the process. Specifically, according to communi­ incorrect responses were not used for analysis.
cation accommodation theory (Tannen, 1990) and muted group theory
4.2. Results

1
A similarly designed study found that an image of a real woman (M=3.86) To test H1-3, the data were examined with 5,000 bootstrap samples
was significantly more authentic than a detailed cartoon image (M=3.36, using model 81 of PROCESS version 3.5 for SPSS (Hayes, 2017). In an
p<.05) and a simple cartoon image (M=3.16, p<.01). Therefore, real images of effort, to provide a conservative test of mediation, the results presented
men and women were used for the manipulations. are based on a model where engagement, efficiency, and effectiveness

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Fig. 1. Conceptual model.

are simultaneously considered as competitive mediators in the serial t = -0.09, 95% CI: [-0.25, 0.22]) and loyalty (c’= 0.11, t = 0.62, 95% CI:
mediation process (see Fig. 1, study 1).2 Given the theoretical focus on [-0.24, 0.46]) were not significant3. However, the indirect effects are
the role of engagement, we first discuss these results, in isolation, and consistent with the notion that a female avatar leads to more loyalty
then present the robustness tests involving efficiency and effectiveness. (a1b1d1L = 0.04, 95% CI: [0.001, 0.12]) and satisfaction (a1b1d1S = 0.04,
H1 predicts that a female avatar will be perceived as more authentic 95% CI: [0.01, 0.10]) serially through authenticity and engagement.
than a male avatar (female = 1 and male = 0). The results show a sig­ Additionally, the indirect effects of avatar gender on loyalty (a1b4L =
nificant effect of avatar gender on authenticity (a1 = 0.53, t = 2.56, p < 0.28, 95% CI: [0.07, 0.53]) and satisfaction (a1b4S = 0.17, 95% CI:
.05; see Web Appendix C for all path coefficients in Study 1). These [0.04, 0.31]) mediated through authenticity alone were significant. All
results support H1, showing that an avatar depicting a female repre­ other indirect effects were insignificant.
sentative is perceived as more authentic than a male avatar image.
H2 predicts a positive relationship between authenticity and 4.3. Alternative explanations
engagement, and the results also support this hypothesis (b1 = 0.33, t =
5.18, p < .001). H3 predicts that engagement will have a positive rela­ In addition to the hypothesized effects, we included competing me­
tionship with a) loyalty and b) satisfaction. Both variables of H3 are fully diators of efficiency and effectiveness for simultaneous assessment with
supported, where higher levels of engagement lead to more loyalty (d1L PROCESS model 81. The results revealed that authenticity did not have a
= 0.25, t = 2.64, p < .01) and satisfaction (d1S = 0.22, t = 3.40p < .001). significant relationship with efficiency (b2 = -0.15, t = -1.65, p = .10) or
The direct effects (c’) of avatar image (X) on satisfaction (c’= − 0.01, effectiveness (b3 = -0.12, t = -1.19, p = .24). Moreover, participants who

2 3
Data analyzed with avatar gender as the independent (X) variable, To compare the DVs simultaneously, a MANOVA of avatar gender onto
authenticity (M1), engagement (M2), effectiveness (M3), and efficiency (M4) as loyalty and satisfaction showed a significant effect of avatar gender on loyalty
mediators, and loyalty as the dependent (Y) variable. A second analysis was run (F(1,137)= 4.20, p<.05, ηp2= 0.05) but not onto satisfaction F(1,137)= 1.46,
with satisfaction as the dependent (Y) variable. Female was coded as 1 and Male p= .23, ηp2= 0.01) suggesting that the effect of avatar gender is stronger for
as 0. loyalty.

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Table 1
Constructs, items, and reliabilities.1
Construct & Definition Items
Reliability Study 1/3A/3B

Authenticity Individuality (Wentzel, 2009)


The extent to which a user feels the service agent is a real individual with the capability to
feel and experience empathy while communicating in a natural manner0.94 / 0.94/ 0.93 – When I think of the employee, I see a person with a unique set of
characteristics
– I have a good idea about who and how the employee really is
– I would think of the employee as a unique individual rather than as an
anonymous salesperson

Empathy (MacInnis et al., 2002)

– I could relate to the employee in the chat box


– I felt the employee was right there in the experience
– I was experiencing the same thoughts and feelings as the employee

Naturalness (Zhu and Meyers-Levy, 2009)

– I would feel that the customer service representative is: unnatural/natural


– I would feel that the customer service representative is: inorganic/organic
– I would feel that the customer service representative is: artificial/real
Efficiency Mathwick et al. 2001:
Extent to which a user believes the chat feature is an efficient use of time
0.92 / na/ na – Using this chat feature would be an efficient way to manage my time
– Using this chat feature would make my life easier
– Using this chat feature would fit with my schedule
Effectiveness Bolton et al., 2007: I think the chat experience and representative set-up:
Extent to which a user believes the chat feature accomplishes what it should
0.91/na/ na – Does not work/ works very well
– Is a bad idea/ is a good idea
– Is not very effective/ is very effective
Engagement Hausman, 2004: While communicating with the customer service
Consumer investment in the customer service interaction to assist the agent in finding a solution. representative, I would actively:
0.77 / 0.80/ 0.81
– Give advice regarding recovery options
– Help to correct my purchase
– Encourage suggestions for appropriate response
– Participate extensively in planning future actions
– Discuss options for improvements
– Consider the claims made by the representative
Loyalty Homburg and Fürst, 2005: How likely would you be to:
How likely the user would be to say nice things and use the company again
0.94 / 0.95/ 0.93 – Say positive things about the company to other people
– Recommend this company to someone who seeks your advice
– Encourage friends and relatives to do business with this company
– Consider this company to buy shoes from in the future
– To more business with this company
Satisfaction Maxham and Netemeyer, 2002: After the customer service encounter,
The level of satisfaction the user had with the experience I would feel
0.91/ 0.92/ 0.85
– Satisfied with my overall experience
– As a whole, not satisfied with the customer service representative (r)
– Satisfied with the overall quality of the encounter
1
All items measured on a 1–7 Likert type scale.

perceived the experience as more efficient did not have higher levels of engagement and, ultimately, satisfaction and loyalty. More specifically,
loyalty (d2L = 0.12, t = 1.16, p = .25) or of satisfaction (d2S = 0.004, t = the results showed that authenticity led to increased loyalty and satis­
0.06, p = .96). Similarly, participants who found the representative as faction as explained through engagement, supporting serial mediation.
more effective did not feel more loyalty (d3L = -0.05, t = -0.56, p = .58) As a robustness check, we also tested an alternative model where
or satisfaction (d3S = -0.03, t = -0.49, p = .62). effectiveness and efficiency were included as mediators. These results
Mediated paths (from avatar gender to satisfaction and loyalty) revealed that neither efficiency nor effectiveness had significant re­
involving efficiency or effectiveness were not significant with respect to lationships in the model, providing additional support for the proposed
mediation. Taken together, the non-significant paths of efficiency and effects. Taken together, the results suggest that a female image makes
effectiveness to satisfaction and loyalty, along with the non-significant the online chat experience seem more authentic, which leads to more
serial mediation effects regarding efficiency and effectiveness, suggest engagement, and ultimately to more loyalty and less satisfaction.
that engagement is the more complete predictor of loyalty and satis­ Companies should consider this when determining how best to design an
faction in regard to explaining the relationship with authenticity. automated online customer service chat feature aimed at aiding in ser­
vice recoveries, specifically by using a female image of an actual person
4.4. Discussion to increase authenticity and encourage engagement with the represen­
tative, thereby increasing loyalty to, and satisfaction with, the
The results show that a female image has significantly higher per­ experience.
ceptions of authenticity than a male image, which increased

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5. STUDY 2: A closer look at engagement 239) and is the best method for measuring engagement (iMotions,
2019).
The purpose of Study 2 is to further examine different avatar images Participants showed up to the biometrics lab and were informed
as well as the variable of engagement. Study 2 consists of two experi­ about the EEG instrumentation and data collection process. Each
ments that examine the effects of avatar gender on two alternative participant was then fitted with the EEG headset and connectivity was
measures of engagement. Part A assesses engagement by measuring the tested to ensure strong EEG readings. Participants completed a nine-
number of letters and words (Dixson et al., 2017) consumers generate in minute baseline task (supplied by ABM) prior to receiving the manipu­
response to a customer service representative. Part B measures lations. After the baseline task, participants received manipulations
engagement through an EEG monitoring brain activity. similar to that of Part A. Participants were told their shoe shipment was
late and that they found an online service chat feature. Participants
5.1. Part A: Procedure watched a short video depicting the website and were shown either a
female or male avatar (video stills available in Web Appendix D). They
A total of 170 participants were recruited from a U.S. online con­ were then shown a screenshot of their avatar and asked to type their
sumer panel (62.4% between the ages of 21–40, and 60% female). problem to the avatar. Participants then answered several additional
Participants were given a brief overview of the study and asked for their and demographic questions.
consent. Once participants agreed, they were given instructions similar EEG was continuously recorded, but engagement data were only
to the set-up of Study 1. They were told they had bought shoes that were used from the manipulated portions (e.g., when the avatar was being
late and found an online customer service chat feature. They were then shown to the participant and a response was requested; data were not
randomly shown one of two video scenarios that depicted a computer used from the instructions or survey demographic portions). Data were
screen, the opening of a generic website, and the opening of a customer exported from the iMotions software. iMotions collects frequency-based
service chat feature that randomly showed an image of one service signals from the brain that are associated with engagement and gener­
representative (male or female; see Web Appendix D for video stills). At ates engagement scores reflecting alertness and direction of attention
the end of the video, when participants were shown one of two customer towards stimuli, with higher numbers indicating more engagement.
service representatives, their representative was depicted as typing and Engagement is constantly measured and multiple engagement scores are
saying, “Hi, I am [Stephanie/James]. How can I help you today?” Par­ given every second per participant. Engagement values were averaged
ticipants were again shown an image of their customer service agent and across all epochs to get a global engagement score per participant. While
asked, “Please respond to the customer service representative by de­ values of engagement can have extreme levels at 0 or 1, the data
tailing the problem you have.” Participants then typed their problem to collected here ranges from 0.21 to 0.57, M = 0.39, SD = 0.09.
the customer service representative and completed the survey by
answering additional and demographic questions. The latter were used 5.4. Part B: Results
to determine whether the participant had correctly perceived the gender
of the avatar. Missed perceptions were not used. An ANOVA was conducted with avatar gender as the independent
variable and engagement scores as the dependent variable. The results
5.2. Part A: Results show a significant relationship between the avatar’s gender and
participant engagement (F(1,66) = 4.09, p < .05). Specifically, female
The number of characters and words for each response was counted. avatars had a higher score of participant engagement (M = 0.41) than
ANOVAs were used to test whether a female avatar led to more male avatars (M = 0.37). These results support the findings in Part A,
engagement as measured through the character and word count of the showing that people will engage more with a female avatar than a male.
participant’s response. The first analysis examined a dependent variable Gender of the participant was not a significant predictor of engagement
of word count and results showed a significant impact (F(1,168) = 4.61, (F(1, 66) = 0.72, p = n.s.) and when conducted, the interaction of avatar
p < .05) where participants typed more words (M = 19.11) to a female gender and participant gender was also not significant (F(3,64) = 0.07,
avatar than they did to a male avatar (M = 16.11). The second analysis p = n.s.).
examined character count and yielded similar results (F(1,168) = 5.31,
p < .05); participants typed more characters (M = 94.14) to a female 5.5. Discussion
avatar than to a male (M = 78.20).
Participant gender had a significant main effect on word count (F Study 2 strengthens the previous findings by applying different
(1,168) = 4.39, p < .05), Mfemale = 18.74, Mmale = 15.75) and character measures of actual engagement using word/character count to a
count (F(1,168) = 4.02, p < .05, Mfemale = 91.47, Mmale = 77.28). customer service scenario in Part A and brain activity via EEG mea­
However, interactions of avatar gender by participant gender were not surements in Part B. Study 2 shows that participants engaged with fe­
significant, showing that while female users typically engage more with male avatars significantly more than male avatars, providing support for
an avatar than male users, both male and female users engage more with H1. The studies strengthen previous findings by showing it is not just
a female avatar than a male avatar. intent to engage but actual behavior and brain activity in response to the
stimuli.
5.3. Part B: Procedure (EEG lab study)
6. STUDY 3: Examination of gender and race of the Avatar
In Part B, a similar process was used, but in addition to the traditional
measures, EEG data were acquired from 68 undergraduate participants The purpose of Study 3 is to replicate and extend the previous
(65.8% female) from a major Southeastern university for minimal findings with regard to avatar image on perceptions of authenticity,
course credit. During data collection, all participants wore a B-Alert × engagement, loyalty, and satisfaction. Study 3 further examines the
10 EEG headset that operated at 256HZ (256 samples per second) and impact of gender of the avatar with race congruence (Part A) and
collected EEG from electrodes at sites Fz, F3, F4, Cz, C3, C4, POz, P3, and whether the avatar is professionally or casually dressed (Part A Part B).
P4. The EEG output from the data collection reported engagement scores H1 predicts a main effect of gender, with females being more authentic
from all utilized participants, which were afterward averaged to create than male avatars. H4 suggests that the gender of the avatar will not be
one mean engagement score for each participant. EEG has been used and as important if the race of the avatar is the same as that of the partici­
validated for measuring engagement as it reflects “information-gath­ pant, but if the race is different, a female avatar will be seen as more
ering, visual scanning, and sustained attention” (Berka et al., 2007, page authentic. H5 suggests that the type of clothing worn by the avatar will

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impact the relationship between gender and authenticity, such that the
relationship between gender and authenticity will be negated when the
avatars are in casual clothing.

6.1. Part A: Procedure

A total of 237 participants took the survey through an online U.S.


consumer panel (70% between the ages of 21–40, and 52.7% female).
Participants were given a brief overview of the study and were asked for
their consent. Once participants agreed, they were given instructions
and randomly shown one of four manipulated scenarios (male or female
avatar; white or African American avatar). As in Study 1, each partici­
pant was told they had bought a pair of shoes online that were late in
arriving, and they found a customer service chat feature with the
following chat bubble (then one of the four scenarios was presented).
Participants were then asked to answer survey questions regarding
authenticity (α = 0.94; MacInnis et al., 2002; Wentzel, 2009; Zhu and
Meyers-Levy, 2009) (all constructs, items, and reliabilities are available
in Table 1; descriptive statistics and correlations are available in Web
Appendix B), engagement (α = 0.80; Hausman 2004), loyalty (α = 0.95;
Homburg and Fürst 2005), and satisfaction (α = 0.92; Maxham and
Netemeyer, 2002). Discriminant validity was assessed among the con­
structs using Fornell and Larcker’s (1981) criterion. All of the constructs
achieved discriminant validity as the average variance extracted for
each construct was greater than the squared correlations between any
pairs of constructs (see Web Appendix B for the correlations between
constructs and AVEs).
A realism question was asked on a 1 = not realistic to 7 = very
realistic scale, and participants found the scenario more than moder­
Fig. 2. Study 3 Results.
ately realistic (M = 5.49, SD = 1.36). A reading check question was
asked about halfway through the survey to ensure participants were
H2 predicts that authenticity will have a positive relationship with
paying attention; any participants who failed the reading check question
engagement and is also supported in Study 3 (d1 = 0.30, t = 5.81, p <
(n = 43; ranging from 8 to 15 missed in each cell) were redirected out of
.001). Gender did not have a direct relationship with engagement (a12 =
the survey and their responses were not used. Further, participants were
-0.20, t = -1.42, p = n.s.). H3 examines the positive relationship between
asked a manipulation check question regarding their avatar (what race
engagement and loyalty (H3a) and satisfaction (H3b). The results show
and gender they received) and cases with incorrect responses (n = 8;
that engagement does have a positive relationship with loyalty (b2L =
ranging from 1 to 3 missed in each cell) were not used for analysis. After
0.28, t = 4.47, p < .001) and satisfaction (b2S = 0.28, t = 6.25, p < .001).
the data were collected, responses were coded to show if the avatar race
Authenticity also had a significant relationship with loyalty (b1L = 0.49,
was different than the participant’s self-reported race.
t = 9.07, p < .001) and satisfaction (b1S = 0.31, t = 8.13, p < .001).
As in Study 1, neither of the direct effects of avatar gender on
6.2. Part A: Results satisfaction (c’S = 0.04, t = 0.40, 95% CI: − 0.15, 0.23) or loyalty (c’L =
0.14, t = 1.02, 95% CI: − 0.13, 0.41) were significant. However, the
To test H1-4, the data were examined using model 83 of PROCESS for indices of moderated mediation effects on both loyalty (a31d1b2L =
SPSS (Hayes, 2017).4 H1 predicts a main effect of gender, with female -0.10, 95% CI: − 0.20, − 0.03) and satisfaction (a31d1b2S = -0.10, 95% CI:
(coded 1) representatives being perceived as more authentic than males − 0.18, − 0.03) are significant, showing that the indirect effects of avatar
(coded 0). A significant effect (a11 = 1.52, t = 6.93, p < .001) shows that gender on satisfaction and loyalty are different across race congruence.
female avatars are perceived as more authentic than male avatars, thus Specifically, the indirect effect of female avatars leading to more loyalty
supporting H1. Difference in race (different race coded 0; same race (0.13, 95% CI: 0.05, 0.24) and satisfaction (0.13; 95% CI: 0.06, 0.23)
coded 1) also had a significant effect (a21 = 0.56, t = 2.54, p < .05) on serially through authenticity and engagement is only significant when
authenticity. H4 predicts that the gender (female/male) and race the avatar is of a different race. The indirect serial mediation effect of
(different/same) of an avatar will interact to impact authenticity. The avatar gender on loyalty (0.04, 95% CI: − 0.01, 0.10) and satisfaction
results show a significant interaction (a31 = -1.11, t = -3.48, p < .001) (0.04, 95% CI: − 0.01, 0.10) is not significant when the avatar is of the
between gender and race similarity (see Fig. 2A for interaction). The same race. The mediation effects of avatar gender on satisfaction (-0.06,
conditional effect of gender on different values of the moderator show 95% CI: − 0.14, 0.02) and loyalty (-0.06, 95% CI: − 0.14, 0.02) through
that gender is not significantly related to authenticity when race is the engagement only were not significant, showing that authenticity is
same (0.41; 95% CI: − 0.05, 0.86), but is significant when the race of the necessary to explain the indirect effect avatar gender and race similarity
avatar is different from the race of the user (1.52, 95% CI: 1.09, 1.95) on satisfaction and loyalty.
where females are seen as more authentic than males. The results sup­
port H4.
6.3. Part B: Procedure

4
Data analyzed with avatar gender as the independent (X; 0=male, 1 = fe­ A pretest was conducted to ensure avatar clothing was perceived as
male) variable, avatar race similarity (W; 0=different race, 1=same race) as the professional or casual, as opinions about clothing appearance can vary.
moderator variable, authenticity (M1) and engagement (M) as mediators, and Participants were shown 1 image of either a man or woman in profes­
loyalty as the dependent (Y) variable. A second analysis was run with satis­ sional attire or casual attire (same scenarios used for the main study as
faction as the dependent (Y) variable. shown in Web Appendix E). They were then asked how much they

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agreed that the customer service representative was dressed profes­ H2 predicts that authenticity will have a positive relationship with
sionally. Those in a scenario where the agent was dressed professionally engagement and is also supported in Study 3B (d1 = 0.31, t = 6.25, p <
agreed significantly more (M = 6.55) than those where the agent was .001). Gender did not have a direct relationship with engagement (a12 =
dressed casually (M = 2.59, F(1,65) = 184.44, p < .001) and the 0.13, t = -1.00, p = 32). H3 examines the positive relationship between
manipulation was deemed successful. The gender of the avatar manip­ engagement and loyalty (H3a) and satisfaction (H3b). The results show
ulation did not impact professional dress perceptions (F(1,65) = 0.75, p that engagement does have a positive relationship with loyalty (b2L =
= .39). 0.22, t = 3.01, p < 0.01) and to satisfaction (b2S = 0.15, t = 2.55, p <
A total of 192 participants took the survey through an online U.S. 0.05). Authenticity also had a significant relationship with loyalty (b1L
consumer panel (sent to nominally compensated participants in the U.S. = 0.53, t = 9.54, p < .001) and satisfaction (b1S = 0.35, t = 7.86, p <
with a 90% or greater approval rate; 71.9% between the ages of 21–40, .001).
and 54.2% female). Part B was similar in procedure to Part A, with the None of the direct effects of avatar gender on satisfaction (c’S = 0.07,
exception of the four shown manipulations. Participants were exposed to t = 0.65, 95% CI: − 0.14, 0.28) or loyalty (c’L = -0.12, t = -0.92, 95% CI:
a service failure in which they had ordered a shirt and that the wrong − 0.38, 0.14) were significant. However, the indices of moderated
shirt was sent. They used an online chat feature to correct the mistake mediation effects on both loyalty (a31d1b2L = -0.05, 95% CI: − 0.13,
and were shown either a professionally dressed man or woman or a − 0.0006) and satisfaction (a31d1b2S = -0.04, 95% CI: − 0.09, − 0.0001)
casually dressed man or woman (scenarios are included in Web Ap­ are significant, showing that the indirect effects of avatar gender on
pendix E). satisfaction and loyalty are different across avatar dress. Specifically, the
Participants were then asked to answer survey questions regarding indirect effect of female avatars leading to higher loyalty (0.04, 95% CI:
authenticity (α = 0.93; MacInnis et al., 2002; Wentzel, 2009; Zhu and 0.0002, 0.09) and satisfaction (0.03; 95% CI: 0.0007, 0.06) serially
Meyers-Levy, 2009) (all constructs, items, and reliabilities are available through authenticity and engagement is only significant when the avatar
in Table 1; descriptive statistics and correlations are available in Web is professionally dressed. The indirect serial mediation effect of avatar
Appendix B), engagement (α = 0.81; Hausman, 2004), loyalty (α = 0.93; gender on loyalty (-0.02, 95% CI: − 0.07, 0.02) and satisfaction (-0.01,
Homburg and Fürst, 2005), and satisfaction (α = 0.85; Maxham and 95% CI: − 0.04, − 0.01) is not significant when the avatar is dressed
Netemeyer, 2002). After participants answered all survey items, a casually.
thought listing was given to participants which told them the purpose of
the study and asked them if they had any other thoughts about the 6.5. Discussion
impact of avatars in online customer service. All the thought listings
were reviewed for any abnormalities, and no obvious problems were The results from Study 3 support H1-H5. The results replicate find­
evident. ings from Study 1 by showing that higher perceptions of authenticity in a
Discriminant validity was assessed among the constructs using For­ customer service online chat recovery experience led to greater
nell and Larcker’s (1981) criterion. All of the constructs achieved engagement between the participant and service representative. Higher
discriminant validity, as the average variance extracted for each levels of engagement led to more loyalty intentions and satisfaction on
construct was greater than the squared correlations between any pairs of the part of the user. Study 3 adds to the previous findings by confirming
constructs (see Web Appendix B for the correlations between constructs the main effect of gender and adding moderators of race congruence and
and AVEs). A realism question was asked on a 1 = not realistic to 7 = professional dress. Females are overall perceived as more authentic than
very realistic scale, and participants found the scenario more than males in Part A; however, when the avatar is of the same race, the gender
moderately realistic (M = 5.47, SD = 1.32). A reading check question of the avatar does not impact perceptions of authenticity of the recovery
was asked about halfway through the survey to ensure participants were experience. When the avatar is of a different race, a male avatar gives the
paying attention; any participants who failed the reading check question perception of a less authentic experience than a female avatar. Similarly,
(n = 42; ranging 9–14 from each cell) were redirected out of the survey, the main effect of gender on authenticity was significant in Part B again
and their responses were not used. Participants were also asked to showing females to be perceived as more authentic. Additionally, a
identify the gender of their representative, and incorrect responses (n = professionally dressed female is seen as more authentic than profes­
2) were not used. sionally dressed male. However, this difference in gender was not
evident when the avatars were casually dressed. A post hoc ANOVA was
6.4. Part B: Results run with a 4-category IV (male or female; professionally or casually
dressed) on authenticity. Pairwise comparisons add to the findings by
To test the hypotheses, the data were examined using model 83 of showing that the professionally dressed female (M = 4.95) was signifi­
PROCESS for SPSS (Hayes, 2017).5 The main effect of gender (a11 = cantly more authentic than the professional male (M = 4.42, p < .05)
0.54, t = 2.00, p < .05) on authenticity was significant, again supporting and casual female (M = 4.41, p < .05). However, the professionally
H1, but the main effect of dress was not (a21 = 0.24, t = 0.92, p = .36). dressed female was not significantly more authentic than the casually
The interaction of gender by dress was significant (a31 = -0.78, t = -2.09, dressed male (M = 4.65, p = .26).
p < .05) (see Fig. 2B for graph). The conditional effect of gender at
different values of the moderator show that gender is not significantly 7. Discussion
related to authenticity when the dress of the avatar is casual (-0.24; 95%
CI: − 0.75, 0.27) but is significant when the dress of the avatar is pro­ Across five studies, the results demonstrate that consumers have
fessional (0.54, 95% CI: 0.01, 1.07). The results support H5. When clear preferences regarding the traits of avatars when interacting with
dressed professionally, female avatars signal more authenticity than chat agents after a service failure. Specifically, the most consistent
males; but when dressed casually male and female avatars are perceived finding was that consumers view agents represented by female avatars
similarly. as generally more authentic. Male avatars only offer similar signaling
benefits when avatars are dressed casually or when races are congruent.
Study 1 showed that a female avatar depiction is preferential to a male
5
Data analyzed with avatar gender as the independent (X; 1=female, avatar in terms of increasing authenticity. When authenticity is
0=male) variable, dress (W; 0=professional, 1=casual) as the moderator vari­ increased, engagement is increased, resulting in higher loyalty and
able, authenticity (M1) and engagement (M) as mediators, and loyalty as the satisfaction. Study 1 also showed that efficiency and effectiveness were
dependent (Y) variable. A second analysis was run with satisfaction as the not better mediators in explaining authenticity’s impact on both loyalty
dependent (Y) variable. and satisfaction. Study 2 further examined the engagement mechanism

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by showing that participants engaged more with female representatives 2014). Thus, consumers may feel that they are heard and actively
than males as operationalized with character and word count measures involved in the service recovery and may feel more satisfied in the
(Part A) and measurements of EEG (Part B). Lastly, Study 3 demon­ resolution of the service failure. This insight furthers understanding of
strated that the preference for female avatars is contingent on two fac­ communication accommodation theory and genderlect theory by
tors. Part A showed that the gender effect was stronger when the service showing how genders perceive each other with the inclusion of race
representative’s race was different from the user. Part B of Study 3 differences. Research has shown that high accommodation can lead to
showed that dress impacts the relationship between gender and satisfaction (Giles et al., 1979) and the findings here build on that
authenticity, such that the highest authenticity scores were seen with an premise by showing that engagement can also increase satisfaction.
avatar of a professionally dressed woman. When an avatar is shown These findings also show that CAT premises hold in online settings,
featuring a woman dressed casually, perceptions of authenticity whereas the majority of CAT research takes place face to face.
decrease to the point that they are similar to a male avatar. While genderlect theory would suggest women are more capable of
The findings of these studies have important and clear implications convergence and therefore genuine experiences, our findings show that
for managers, who can use said findings to focus on creating more clothing impacts how authentic each gender is perceived to be. A pro­
meaningful interactions with consumers, as well as implications for fessionally dressed female was seen as the most authentic when
marketing, services, and retailing scholars. We discuss these implica­ compared to a professionally dressed male or a casually dressed female.
tions in the following sub-sections. However, a casually dressed male was not significantly different than a
professionally dressed female. This adds to CAT (Boggs and Giles, 1999)
7.1. Managerial implications by showing that males behaving in non-accommodating ways in certain
contexts are actually seen as more authentic and influence a customer’s
Removing the “Shell.” A primary barrier to the adoption of, and perceptions of avatar’s individuality. Lastly, research has suggested that
satisfaction with, AI-based chatbots is that consumers perceive them as customer engagement positively impacts future loyalty (So et al., 2014).
simply “shells” compared to human agents (de Ruyter et al., 2018). The present research supports that notion by showing that more
Thus, if firms can increase this perception of authenticity for their engagement with an online customer service representative can lead to
chatbots through the use of properly calibrated avatars, they could glean increased loyalty and satisfaction.
the benefits of AI technologies without sacrificing consumer perceptions
of their service. Addressing this core issue was the focus of this research, 8. Limitations, future research, and conclusion
and the results are relatively simple yet powerful. All factors held con­
stant, accompanying an online service recovery chat session with a vi­ While the current research has novel findings with important im­
sual representation of a female agent will increase authenticity and plications, it is not without its limitations and opportunities for future
increase engagement, satisfaction, and loyalty. These effects are research. To keep consistency, the studies only used a service failure
amplified when the female agent is dressed professionally or is of a depicting a late delivery. Therefore, future studies should focus on in­
different race from the consumer. At scale, this suggests that having a teractions that take place in other customer service settings such as
professionally dressed, minority woman as the primary representation product questions, delivery information, or real-time Q&A. Future
of a virtual agent would result in the highest customer evaluations. research could also examine authenticity at different points in the ser­
Increasing Authenticity. This research consistently demonstrates that vice experience. Authenticity might be less important when asking a
increasing authenticity with online chat services can enhance engage­ simple pricing question as opposed to needing a refund or more complex
ment, which spills over to increase satisfaction and loyalty after a service solutions. Our avatar depictions were clearly perceived as either male or
recovery. These results extend earlier research into chatbots and AI, female. Future research could examine avatars that are gender ambig­
reinforcing how critical it is for AI interactions to appear as “real” as uous. The studies also only looked at variables of gender, dress, and race.
possible to promote co-created solutions. As marketers continue to roll Other variables could be examined in future research such as similarity
out new chat service features and customer service innovations to the between avatar and user in dress styles, attractiveness, facial expres­
market, market tests should focus on understanding perceptions of sions, accessories, age, or professionalism of a photo. Many people said
authenticity as primary indicators of marketplace adoption, as our re­ in the open-ended thought listings how a professional photo looked like
sults suggest that this is more important than classic metrics of efficiency a stock photo and made them think the representative was not a real
and effectiveness. person but a chatbot. Some said lifestyle photos would make the
representative seem more real and relatable. Future research should
7.2. Theoretical implications examine quality and professionalism of the avatar photo to see if there
are differences in how realistic and relatable it makes the service
Theoretically, these findings have implications for communication experience feel (e.g., professional business photo versus a representative
accommodation theory (CAT) and genderlect theory. Genderlect theory smiling with their dog). Future research could also examine homophily
discusses how the two genders have different communication and in other product and service contexts to examine the impact on social
speech styles (Tannen, 1990). According to CAT, women are more likely desirability bias, which some firms may want to avoid. Additionally,
to accommodate communication styles and converge than men and prior research has shown the ability of AI chatbots to communicate by
divergence is more likely to occur when two parties are of a different using natural language to increase perceived authenticity (Rese, Ganster
race (Giles and Ogay, 2007). However, the theories do not discuss the and Baier, 2020). Future studies could explore an interaction between
interaction between either race and gender or clothing and gender in the physical appearance of a chat agent and the language used when
promoting problem-solving. The present research extends these as­ communicating a response.
sumptions of communication convergence from face-to-face communi­ This research used clothing items in the manipulations; the hedonic
cation to images used as avatars. The findings here show that gender and or utilitarian nature of the product should be studied moving forward to
race interact so that gender is not as important when both parties are of determine when/how consumers interact with technologies and to
the same race. However, when the race of the avatar is different, males generalize our findings to more shopping experiences and motivations.
are seen as less authentic than a female conversation partner for an Similarly, as the studies only used a delivery delay scenario regarding
online customer service setting. Additionally, this adds to theory by shoes, future research could examine gender differences by product. It
showing that increasing authenticity in communication is important for might be that while a female is preferred for an order status question, a
increased engagement as a consumer perhaps feels less strain in particular gender might be preferred more for stereotypically masculine
conversing and is more confident in being understood (De Looze et al., or feminine products. For example, users might prefer to get information

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Carol L. Esmark Jones is an Associate Professor of Marketing at the University of Ala­
bot–repercussions of chatbot disclosure in different service frontline settings,”
bama. She received her Ph.D. from the University of Tennessee and her research has been
forthcoming in the Journal of Service Management.
published in the Journal of Business Research, the Journal of Retailing, Journal of the Academy
Neubaum, G., & Krämer, N. C. (2017). Opinion climates in social media: Blending mass
of Marketing Science, Journal of International Business, Journal of Operations Management,
and interpersonal communication. Human Communication Research, 43(4), 464–476.
Psychology and Marketing, Marketing Letters, and more. Among her research interests are
Occupations. (2013). U.S. Department Of Labor (2013, August 11). Retrieved June 5,
privacy, embarrassment, and retailing.
2019, from https://www.dol.gov/wb/stats/occupations.htm#Lofw.
Pizzi, G., Scarpi, D., & Pantano, E. (2020). Artificial intelligence and the new forms of
interaction: Who has the control when interacting with a chatbot? Journal of Business Tyler Hancock is an Assistant Professor of Marketing at the University of Toledo. He
Research. received his Ph.D. from Mississippi State University and his research has been published in
Price, D. (2018). Yes, chat bots are incredibly efficient. But your customers hate them. Industrial Marketing Management, Journal of Consumer Marketing, Journal of Research in
Inc.com. Retreived May 7, 2019, from https://www.inc.com/dom-price/yes-chat- Interactive Marketing, and Journal of Consumer Behavior. Tyler’s research interests include
bots-are-incredibly-efficient-but-your-customers-hate-them.html. customer relationships, technology use, salesperson-technology interface, social selling,
and online marketing.

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C.L. Esmark Jones et al. Journal of Business Research 144 (2022) 703–716

Brett Kazandjian is an Assistant Professor of Marketing at Towson University. He received the Journal of Marketing, Journal of Marketing Research, Journal of the Academy of
his Ph.D. in Marketing from Mississippi State University. His research interests include Science, Strategic Management Journal, Journal of Retailing, Journal of Service Research,
retailing, marketing strategy, and big data analytics. His work has been published in the among others. Clay’s research focuses on the explanation and management of the dy­
Journal of Business Research. namics of social exchange and social influence. Under this theoretical umbrella, he focuses
on projects related to customer experience management and relationship marketing, often
in service contexts. Recently he received the Emerging Service Scholar award from the
Clay M. Voorhees is a Professor and the Morris Mayer Endowed Teaching Excellence in
American Marketing Association.
Marketing. He is also part of Center for Services Leadership (CSL) Global Faculty at the W.
P. Carey School of Business, Arizona State University. His research has been published in

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