Journal of Business Research xxx (xxxx) xxx–xxx

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Journal of Business Research

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

Chatbot e-service and customer satisfaction regarding luxury brands

Minjee Chunga, Eunju Koa, , Heerim Jounga, Sang Jin Kimb
⁎

a
Department of Clothing and Textiles, Yonsei University, Seoul, Republic of Korea
b
Department of Business Administration, Changwon National University, Changwon-si, Gyeongsangnam-do, Republic of Korea

ARTICLE INFO ABSTRACT

Keywords: This study was undertaken to analyze whether luxury fashion retail brands can adhere to their core essence of
Chatbot providing personalized care through e-services rather than through traditional face-to-face interactions, parti-
Communication cularly through Chatbot, an emerging digital tool offering convenient, personal, and unique customer assistance.
Digital marketing The authors use customer data to test a five-dimension model measuring Chatbot for customer perceptions of
Luxury brand
interaction, entertainment, trendiness, customization, and problem-solving. The study reveals that Chatbot e-
Service agents
service provides interactive and engaging brand/customer service encounters. Marketers and managers in the
luxury context can adopt the instrument to measure whether e-service agents provide desired outcomes and to
determine whether they should adopt Chatbot virtual assistance.

1. Introduction credible advice, and convey parasocial benefits (Holzwarth,

As customers spend more time in digital environments, brands are
moving into digital services. Technological advances now allow virtual
service agents or “e-service agents” to enhance customer experiences
and fulfill expectations through real-time interactions (Hagberg,
Sundstrom, & Egels-Zandén, 2016). We contribute to the digital service
research by studying e-service agents, particularly Chatbot agents, as a
novel and entertaining way to satisfy clients, similar to the services of
general offline service agents (Lowry, Romano, Jenkins, & Guthrie,
2009) who traditionally determined the success of service exchanges
(Bailey & McCollough, 2000), represented the brand (Balmer & Greyser,
2006), enhanced customer/brand relationships (Fionda & Moore,
2009), provided useful information, and gave customers personally
engaging and enjoyable overall shopping experiences (Kim, Kang, &
Taylor, 2018; Kim & Ko, 2012). Indeed, service agents still influence
87% of in-store purchase decisions, while 77% of consumers tend to
purchase from familiar salespersons (Insider-Trends, 2017).
Brand managers and marketers strive to provide deep, intense, and
tangible experiences that reinforce consumer preferences and aware-
ness of the brand over its competitors (Atwal & Williams, 2009). When
interactions with service agents meet customer expectations (Kang,
2006), the result is likely to be customer satisfaction, loyalty, positive
word of mouth, favorable purchase intentions, and ultimately, company
profits (Reynolds & Beatty, 1999). Agents tend to inform customers
about current trends and possibilities for customization; they help solve
problems (Locker, 1995), save time, provide accurate information, give
Janiszewski, & Neumann, 2006).
Traditional service agent interactions involve direct face-to-face
customer/employee interactions, but social networks are now fulfilling
customer needs for immediate responses outside the actual facility.
Customers who have used both online and offline services are now
finding online service to be effective, accessible, and both time and
cost-saving (Escobar, 2016). The proliferation of digital services and
digital marketing channels has given brands new opportunities to sa-
tisfy customers (Calantone, Di Benedetto, & Rubera, 2018; Correa,
Hinsley, & De Zuniga, 2010; Perrey & Spillecke, 2011). The luxury
sector is following the trend by adopting digital services that offer 24-
hour customer service through Chatbot, an online chat system (Dhaoui,
2014; Godey et al., 2016; Ko, Phau, & Aiello, 2016). In this study, we
analyze how e-service agents can affect communication quality and
overall customer satisfaction for high-end SPA and luxury fashion
brands that use Chatbot for e-service.
The Chatbot concept goes well with luxury retail brand values of
providing superior service for consumers who are willing to pay more
(Retail Dive, 2017). Chatbot offers a new layer of support to the service
quality dimension by assuring that personalized service is available to
meet customer needs anytime and anywhere. In addition, Chatbot is
designed to drive future luxury brand/consumer relationships. For ex-
ample, Louis Vuitton offers a Chatbot service that provides information
about global offline stores, access to personal service agents regarding
product care, and conversational interfaces that show the craftsmanship
behind the products (Forbes, 2017a, 2017b, 2017c). Our objectives are

⁎
Corresponding author.
E-mail address: ejko@yonsei.ac.kr (E. Ko).

https://doi.org/10.1016/j.jbusres.2018.10.004
Received 9 November 2017; Received in revised form 29 September 2018; Accepted 1 October 2018
0148-2963/ © 2018 Elsevier Inc. All rights reserved.

Please cite this article as: Chung, M., Journal of Business Research, https://doi.org/10.1016/j.jbusres.2018.10.004
M. Chung et al.
to verify the effect of marketing efforts provided by Chatbot in the
luxury retail context. We develop a measurement for examining how
information accuracy, information credibility, and communication
competence impact customer perceptions in the digital service context.
The study provides insights into how e-service agents affect luxury
consumer perceptions. In alignment with previous studies, we show
that digital service assistance tools can allow positive brand/customer
interactions. Luxury fashion retail brands are becoming more aware
that they must interact with customers through the digital environment
and are adopting Chatbot as a marketing strategy. Thus, it is essential to
study Chatbot service in luxury contexts to determine effects on cus-
tomer satisfaction.
2. Literature review
2.1. E-service agents
Service agents are key to solving customer problems (Chakrabarty,
Widing, & Brown, 2014) and determining success or failure in evoking
purchase behaviors through positive verbal and nonverbal interactions
(Bailey & McCollough, 2000; Godes et al., 2005). Honest, friendly,
authentic salesperson/customer relationships are essential for ensuring
that both customers and service agents have positive experiences
(Bailey & McCollough, 2000; Gautam & Sharma, 2017; Reynolds &
Beatty, 1999).
As companies become globalized in the new era of digital marketing
and artificial intelligence, brands are moving to the online world to
better connect with audiences, and service agent roles are changing
(Bolton et al., 2013). As artificial intelligence improves and digital
marketing becomes more essential, companies across diverse insurance,
banking, retail, travel, healthcare, and education industries are suc-
cessfully using robotic virtual characters that assist customers through
desktop interfaces (Forbes, 2017a, 2017b, 2017c). Chatbot is an ex-
ample of a virtual conversational service robot that can provide hu-
man–computer interaction (Lee, Oh, & Choi, 2017; Zhang, Liu, Wang, &
Zhu, 2017).
New technology tools allow companies to simultaneously meet
customer expectations, fulfill company goals, and create value (Choi,
Ko, & Kim, 2016; Woodside & Ko, 2013). E-service agents are con-
sistently available personal assistants who help build crucial customer
relationships, allow more efficient use of customer time, and provide
better understandings regarding product performance (Lee & Choi,
2017; Mimoun, Poncin, & Garnier, 2017; Zhang et al., 2017). Moreover,
as accuracy improves, users can enjoy intelligent social dialogues with
virtual agents (Godey et al., 2016). Thus, fashion brands such as Bur-
berry, Louis Vuitton, Tommy Hilfiger, Levi's, H&M, and eBay are re-
cognizing the bright promise and increasing popularity of e-service
agents (Lee & Choi, 2017). (Table 1). For all that the potential to ad-
vance related literature and practical use for marketing communication,
there is limited research on e-service agents and thus we aim to con-
tribute here by studying e-service agents.
2.2. Marketing efforts of e-service agents
E-service agents can provide essential marketing efforts that influ-
ence decision-making processes (Crosby & Johnson, 2002; Gautam &
Sharma, 2017). In customer–salesperson interactions, salespersons en-
hance customer trust by showing empathy and listening to customer
concerns (Aggarwal, Castleberry, Ridnour, & Shepherd, 2005). Such
marketing efforts are particularly important for fashion brands that
must exchange information about tailored fashion trends or customized
services (Forbes, 2017a, 2017b, 2017c). E-service agents can reduce the
physical and temporal distance from fashion brands by giving custo-
mers easy access to product information (Darke, Brady, Benedicktus, &
Wilson, 2016; Zhang & Dholakia, 2018).
Digitalization studies of e-service agents have measured IT service
2
Journal of Business Research xxx (xxxx) xxx–xxx
quality and social network service (SNS) activities according to inter-
action, entertainment, customization, trendiness, innovativeness, and
problem-solving dimensions (Kim & Ko, 2012; Kim, Park, Lee, & Choi,
2016; Ladhari, Souiden, & Dufour, 2017). In addition, social media
marketing efforts have shown that interaction, entertainment, custo-
mization, trendiness, and word-of-mouth can enhance brand equity and
increase customer response (Godey et al., 2016; Morra, Gelosa, Ceruti,
& Mazzucchelli, 2018). However, research on e-service agents is rela-
tively scant, especially regarding online communication with brands.
We aim to fill the gap by examining interaction, entertainment, tren-
diness, customization, and problem-solving as marketing efforts in the
context of e-service agents.
2.2.1. Interaction
Brand associates must be courteous, helpful, and trustworthy if in-
teractions are to be positive (Dabholkar, Thorpe, & Rentz, 1996). Cus-
tomers consult with salespersons to save time, get advice, feel valued,
enjoy interactions, and ease purchasing procedures (Holzwarth et al.,
2006). However, technology has enabled brands to use social media for
casual interactions that build and strengthen customer relationships
and provide information (Kim & Ko, 2010). As a result, customer in-
teractions with virtual service agents are similar to their interactions
with real-world human agents for influencing purchase decisions,
saving time, gathering advice, or gaining parasocial benefits
(Holzwarth et al., 2006).
2.2.2. Entertainment
Successful companies know the importance of incorporating fun and
entertainment into everyday workplace practices and services (Redman
& Mathews, 2002). Entertainment is a hedonic way of introducing
useful and valid information, increasing value perceptions and inten-
tions to adopt digital tools such as the mobile Internet and social media
(Muntinga, Moorman, & Smit, 2011; Nysveen, Pedersen, &
Thorbjørnsen, 2005). For example, Burberry produced a video alluding
to the Billy Elliot movie to incorporate visual information, increase
customer interest, and connect customers with the brand. Conse-
quently, enjoyment, fun, and relaxation determine whether customers
will respond positively to virtual service agents (Godey et al., 2016;
Muntinga et al., 2011).
2.2.3. Trendiness
Many customers want current brand-and product-related informa-
tion to ensure that products appropriately convey their trendy lifestyles
(Muntinga et al., 2011; Zolkepli & Kamarulzaman, 2015). Many use
social media to search for new products, to learn about current trends,
and to see reviews (Godey et al., 2016). They seek the latest news and
search hot discussions to find new products that suit their tastes. Al-
though in-store salespersons were once the main sources of information
about fashion trends, technology changes are allowing online and brick-
and-mortar experiences to work together (Forbes, 2017a, 2017b,
2017c).
2.2.4. Customization
Customization is the process of modifying, personalizing, and tai-
loring products to satisfy individual preferences (Wang & Li, 2012).
Customized service meets individual preferences, builds stronger brand
affinity, and ensures loyalty (Godey et al., 2016; Perna, Runfola,
Temperini, & Gregoni, 2018). Luxury brands particularly provide pro-
ducts and services targeting specific customer needs and wants, rather
than trying to appeal to the general public. For instance, Gucci sends
personalized online messages to introduce customized products to
target customers (LinkedIn, 2012). Now, virtual agents can offer cus-
tomized assistance through direct chats.
2.2.5. Problem-solving
Because proper handling often determines perceptions of retail
M. Chung et al.
Table 1
Chatbot usage by fashion brands.
No. Brand Interaction & service
1 Salvatore - Good explanation of the material
Ferragamo - Detailed product recommendation based on
customer preferences
- Demonstration of the brand's craftsmanship
2 Burberry - Employees interact with customers eye-to-eye
- Good explanation of the material
- Recommendation based on the profile's preferences
3 Louis Vuitton - Employees greet customers at the entrance
- Employees have good knowledge about the brand
- In-store demonstration of the brand's
craftsmanship
4 Prada - Good knowledge about the brand and material
- Recommendation based on the profile's preferences
5 Gucci - Good knowledge about the collection but failed to
ask for the customer's preference.
- Service in Chinese
6 Tommy Hilfiger - No deep knowledge about the collection
- No fluency in Korean or English
service, retail brand associates are often trained to immediately and
sincerely handle customer problems, complaints, returns, and ex-
changes (Dabholkar et al., 1996; Kim et al., 2016). Furthermore, cus-
tomers who have unmet quality expectations can feel anger and even
shame in reactions to feeling restrained (Izard, 1977).
2.3. Communication quality
If customers are to perceive that they have experienced quality
communication and to respond positively to the information trans-
mitted (Maltz, 2000), the exchange must meet parameters important in
human communication (Mohr & Sohi, 1995). We align our assumptions
with studies of bot agents such as Twitter to assume that quality com-
munication requires accuracy, credibility, and competence (Edwards,
Edwards, Spence, & Shelton, 2014; Zhao & Rosson, 2009).
Customers trust the reliability and completeness of communication
when it is accurate (Barry & Crant, 2000; Mohr & Sohi, 1995). They
perceive that information is credible and persuasive when they have
good relationships with communicators (Edwards et al., 2014; Yuan,
Kim, & Kim, 2016). That is, customers must perceive that computer-
mediated communicators listen to their concerns, accurately diagnose
their issues, and provide the needed information (Clokie & Fourie,
2016; Spitzberg, 2006; Zhao & Rosson, 2009).
To ensure their unique market positions, luxury brands must form
communication strategies that adhere to their core brand image (Liu, Li,
Mizerski, & Soh, 2012). To evoke positive perceptions of intimacy,
understanding, and communication quality, interactions must be
smooth, accurate, and complete (Emmers-Sommer, 2004; Maltz, 2000;
Mohr & Sohi, 1995). Consumers will positively appraise “the believ-
ability of a communicator” (O'Keefe, 1990, p. 130–131) if the in-
formation is delivered efficiently and appears to be competent, credible
(Zhao & Rosson, 2009), and expert (Snavely & McNeill, 2008;
Spitzberg, 2006; Webster & Sundaram, 2009). Thus, we examine ac-
curacy, credibility, and communication competence as communication
quality properties in the context of online interaction.
2.4. Satisfaction
Customer satisfaction occurs when customers find that products or
services meet or exceed their positive expectations (Chiou & Droge,
2006; Santini, Ladeira, & Sampaio, 2018). Luxury branded products
particularly evoke expectations that products will perform as promised,
Journal of Business Research xxx (xxxx) xxx–xxx
Brand characteristic Agent characteristic
- Although other customers enter, the employee assists only one customer Woman
at time. She politely asks other customers to wait until she can serve Thirties
them. Qualified expert
- Service in English.
- In-store catalogue display. Woman
- When service is delayed, the employee asks customers to wait. She then Twenties,
removes her shoes and kneels to continue assisting customers. Non-expert
- A staff member was always near to help the customer Man
- When the interaction concluded, employees provided cards with Thirties
product and contact information. Qualified expert
- Although the website is available in Korea, brand purchases must be Woman
made in-store. Twenties,
Qualified expert
- Provides fewer personalized services than other luxury stores. Woman
- Service in Chinese. Thirties,
Qualified expert
- Store has a VR panel where customers can virtually try on clothes. Woman
Twenties,
Non-expert
Foreigner
which then forms purchase intentions (Taylor & Baker, 1994;
Wiedmann, Hennigs, & Siebels, 2009). In the case of online customers,
satisfaction might be indicated by their choice to continue using par-
ticular websites without changing to other retailers.
3. Hypotheses development
3.1. Marketing efforts of e-service agents and communication quality
To provide accurate, credible, time-saving information and para-
social benefits (Holzwarth et al., 2006), service agents must provide
rich, expert, intense, and efficient communication, using few words and
symbols (Barry & Crant, 2000). Good service agent/customer commu-
nication focuses on customer needs for trendiness, customization, and
problem-solving (Locker, 1995). Customer-oriented salespersons can
adapt to customer needs and are thus most likely to establish positive
customer relationships (Chakrabarty et al., 2014) that reduces un-
certainty, allows efficient information search, and provides enjoyment
(Haas & Kenning, 2014). Entertainment also encourages further inten-
tions to use technology. That is, customers must derive enjoyment if
they are to use virtual service agents and social media for obtaining
brand-related information (Muntinga et al., 2011).
Similar to service agents, e-service agents are essential for enhan-
cing customer–brand relationships. Brand marketers use online com-
munication to build positive customer relationships, increase profits,
and inform customers about products and services (Kim & Ko, 2012). If
consumers are to perceive quality communication, their online re-
lationships with service agents must be smooth, satisfying, timely, ef-
fective, and accurate (Emmers-Sommer, 2004; Maltz, 2000; Mohr &
Sohi, 1995; Vos, 2009).
Luxury brands are finding that interactive marketing positively af-
fects customer/brand relationships (Godey et al., 2016). One inter-
active method is through online social media to reinforce customer
relationships (Ko et al., 2016), acquire information, transmit brand
personality, and share opinions about new products. To help luxury
brands understand which factors are essential for communicating with
customers, we focus on luxury brands and posit that e-service agents
can perform marketing efforts that are related to communication
quality, which requires accuracy, credibility, and competence:
H1. E-service agents can provide marketing efforts that evoke
communication accuracy.
3
M. Chung et al.
H2. E-service agents can provide marketing efforts that evoke
communication credibility.
H3. E-service agents can provide marketing efforts that evoke
communication competence.
3.2. Communication quality and satisfaction
Customer satisfaction is more likely when salespersons convey
trustworthy, relevant, current, and in-depth product information (Jian,
Shi, & Dalisay, 2014; Setia, Venkatesh, & Joglekar, 2013), which re-
duces uncertainty (Adjei, Noble, & Noble, 2010; Hutter, Hautz,
Dennhardt, & Füller, 2013; Mohr & Sohi, 1995), evokes positive atti-
tudes toward service agents, motivates psychological connections and
satisfaction, and makes consumers willing to purchase and repurchase
premium-priced brands (Annie Jin, 2012; McAlexander, Schouten, &
Koenig, 2002; Yuan et al., 2016).
Twitterbots can be similar to human agents in providing credible
communication and customer satisfaction, but they convey information
through digital tools and computer-mediated communication (Edwards
et al., 2014; Lowry et al., 2009). For example, fashion brands are using
Chatbot e-service agents to interact with customers, provide timely
answers to customer questions, and deliver wide and deep information
to reduce uncertainty and provide customer satisfaction (Chen & Xie,
2008; Mimoun et al., 2017). But Chatbot agents in luxury brands, like
human agents, must be accurate, credible, and competent. Thus:
H4. Perceived communication accuracy positively influences
satisfaction.
H5. Perceived communication credibility positively influences
satisfaction.
H6. Perceived communication competence positively influences
satisfaction.
4. Research method
4.1. Conceptual model
Fig. 1 shows the conceptual model designed for this study. In-store
communication measurements were applied to the online context to
identify how e-service agents' marketing efforts affect communication
Fig. 1. Conceptual model.
4
Journal of Business Research xxx (xxxx) xxx–xxx
outcomes.
4.2. Measurement and procedure
We gathered 29 items used in previous studies to measure mar-
keting efforts according to interaction, entertainment, trendiness, cus-
tomization, and problem-solving (Coelho & Henseler, 2012; Kim & Ko,
2012; Lee & Choi, 2017). These items were previously adopted to verify
how brands affect customer relationships through virtual environments.
To measure communication quality, we developed 14 items from
McCroskey and Teven (1999), Mohr and Sohi (1995), and Spitzberg
(2006). We measured overall satisfaction using previous constructs
(Joosten, Bloemer, & Hillebrand, 2016; Lee & Choi, 2017). All items
were measured on a five-point Likert scale (1 = strongly disagree,
5 = strongly agree).
We focused on how young consumers residing in South Korea per-
ceive e-service agents for luxury brands. European luxury brands are
enjoying increasing popularity among young Korean shoppers, growing
as much as 60% in recent years (The Korea Herald, 2018). Luxury
products are strong symbols of social status among Korean women.
Moreover, customers from ages 20 to 30 seek imported high-end pro-
ducts in accordance with the latest trends (The Korea Bizwire, 2017),
especially through online stores (The Korea Herald, 2018).
We surveyed 161 Korean students from a large urban university in
Korea. Participants were required to have previously interacted with
online luxury brand agents, and to have ultimately purchased a luxury
product. After we eliminated incomplete surveys, 157 questionnaires
remained for analysis. Respondents were 20 to 30 years-old, averaged
29; most (68.8%) were women (n = 108). We designed the ques-
tionnaire to gather data about experiences with Chatbot services for the
luxury brand Burberry, which actively offers Chatbot as a new service
tool. Respondents viewed a screenshot of a conversation between a
customer and Chatbot, the brand's service agent. They then answered
questions about the Chatbot's marketing efforts, communication
quality, and satisfaction.
5. Empirical results
Exploratory and confirmatory factor analyses were used to empiri-
cally validate the scale. Composite reliability (CR) coefficient and the
average variance extracted (AVE) were used to test scale reliability
(Table 2). Validity was based on the AVE values. Measures appeared to
M. Chung et al. Journal of Business Research xxx (xxxx) xxx–xxx

Table 2
Standardized CFA loadings.
Items Standardized regression weight Cronbach's α

Interaction: composite reliability = 0.828; average variance extracted = 0.548

The service agent has the knowledge to answer customers' questions. 0.792 0.867
The service agent is never too busy to answer customers' requests. 0.873
The service agent gives customers individual attention. 0.743
The service agent is consistently courteous with customers. 0.744

Entertainment: composite reliability = 0.832; average variance extracted = 0.554

It is fun and enjoyable to share a conversation with the service agent. 0.808 0.872
I was absorbed in the conversation with the service agent. 0.756
The conversation with the service agent was exciting. 0.795
I enjoy choosing products more if they are recommended by the service agent than if I choose them myself. 0.814

Trendiness: composite reliability = 0.0847; average variance extracted = 0.582

The service agent gives the newest information. 0.873 0.897
Using the brand's service agent is very trendy. 0.788
The service agent provides up-to-date contents. 0.869
It is fashionable to use the brand's service agent. 0.790

Customization: composite reliability = 0.817; average variance extracted = 0.529

The brand offers products and services that I couldn't find in another company. 0.763 0.850
If I changed companies, the products and services would not be as customized as I have now. 0.824
I feel that using this Chatbot and transacting with this service agent meets my personal needs. 0.713
The service agent provides information about products according to my preferences. 0.773

Problem solving: composite reliability = 0.814; average variance extracted = 0.525

The service agent willingly handles returns and exchanges. 0.786 0.793
When a customer has a problem, the service agent shows a sincere interest in solving it. 0.724
The conversational agent is able to handle customer complaints directly and immediately. 0.602
I have confidence that the service agent has the ability to get the job done. 0.698

Accuracy: composite reliability = 0.917; average variance extracted = 0.687

The communication with the service agent is timely. 0.897 0.95
The communication with the service agent is accurate. 0.909
The communication with the service agent is adequate. 0.882
The communication with the service agent is complete. 0.882
The communication with the service agent is credible. 0.884

Credibility: composite reliability = 0.835; average variance extracted = 0.560

The conversational agent is honest. 0.778 0.859
The conversational agent is trustworthy. 0.680
The conversational agent is honorable. 0.814
The conversational agent is moral. 0.823

Communication competence: composite reliability = 0.734; average variance extracted = 0.367

My interactions with the service agent are more productive than face-to-face interactions with in-store agents. 0.633 0.758
Using service agents is more efficient than other forms of communication. 0.659
Service agents save a tremendous amount of time. 0.565

Satisfaction: composite reliability = 0.858; average variance extracted = 0.503

I am satisfied with the service agent. 0.736 0.884
I am content with the service agent. 0.754
The service agent did a good job. 0.733
The service agent did what I expected. 0.747
I am happy with the service agent. 0.720
I was satisfied with the experience of talking with the service agent. 0.805

χ2 = 776.559, df = 629 (χ2/df = 1.235, p = .000), IFI = 0.967, TLI = 0.963, CFI = 0.967, RMSEA = 0.039.

Table 3
Results for correlation matrix.
IN EN TR CU PS AC CR CC SA

Interaction (IN) 0.624a

Entertainment (EN) 0.716b 0.630a
Trendiness (TR) 0.637 0.643 0.691a
Customization (CU) 0.591 0.632 0.674 0.592a
Problem solving (PS) 0.565 0.687 0.509 0.600 0.498a
Accuracy (AC) 0.348 0.351 0.354 0.344 0.325 0.794a
Credibility 0.764 0.742 0.757 0.767 0.734 0.250 0.602a
(CR)
Communication competence (CC) 0.119 0.071 0.115 0.079 0.171 0.323 0.271 0.385a
Satisfaction (SA) 0.616 0.515 0.639 0.647 0.776 0.365 0.788 0.155 0.562a
Mean 3.10 3.19 3.36 3.12 2.70 2.91 3.08 2.30 3.09
S.D. 1.00 1.00 1.13 0.95 0.76 1.36 0.90 0.80 0.90

a
AVE (Average Variance Extracted).
b
Correlation between variables.

5
M. Chung et al.
be reliable: the reliability coefficient for service agents' marketing ef-
forts was 0.87 for interaction, 0.87 for entertainment, 0.90 for trendi-
ness, 0.85 for customization, and 0.80 for problem-solving. Cronbach's
alpha values exceeded 0.7. The average variance extracted exceeded
0.5, confirming validity for all cases except communication compe-
tence. Reliability coefficients were: accuracy = 0.95, cred-
ibility = 0.86, communication competence = 0.76, satisfaction = 0.88.
Table 2 shows the results of confirmatory factor analysis, AVE, and CR.
Correlation analysis was then conducted to observe correlations be-
tween variables used in further analysis (Table 3).
To test the hypotheses, we used structural equation modeling
(SEM). The overall fit indices showed an acceptable fit to the data
(χ2 = 349.376, df = 224, χ2/df = 1.560) at a significant level
(p = .000), and fit indices within accepted standards (IFI = 0.958,
TLI = 0.952, CFI = 0.957, RMSEA = 0.060). The path coefficients re-
vealed that marketing efforts positively impacted accuracy (β = 0.374,
p < .001) and credibility (β = 0.964, p < .001), but not competence
(β = 0.174, n.s.). Accuracy (β = 0.860, p < .05) and credibility
(β = 0.938, p < .001) positively affected satisfaction. Competence had
no impact on satisfaction.
Marketing efforts failed to significantly affect communication
competence and thus failed to bring satisfaction. Participants might
have perceived that Chatbot service is more competent than offline
service. Although they perceived that Chatbot failed to provide di-
versity of information, efficiency, and time-saving, they perceived ac-
curacy and credibility. Consider that luxury brand customers tend to
devote much time and careful consideration to their purchases. Thus
the luxury context may cause customers to perceive that saving time
minimizes their effort. Fig. 2 is an illustration of the relationship be-
tween variables of the research model.
6. Conclusion
Technology now allows artificial intelligence to provide marketing
efforts through e-service agents, with effects on customer perceptions of
communication quality and brand satisfaction. In this study, we show
that customer satisfaction with luxury retail brand e-service agents
requires perceptions of having received quality communication. We
show how digital service assistance tools can help build positive cus-
tomer relationships even though e-service agents do not fully
Fig. 2. Results for Structural Equation Modeling (SEM).
Model Fit: χ2 = 349.376, df = 224 (χ2/df = 1.560, p = .000), IFI = 0.958, TLI = 0.952, CFI = 0.957, RMSEA = 0.060
Note: The path coefficients are standardized path coefficients, ***p < .001, **p < .01, *p < .05.
6
Journal of Business Research xxx (xxxx) xxx–xxx
communicate with customers. Our study results can be a guideline for
fashion brands to ensure appropriate marketing efforts through e-ser-
vices.
Luxury customers expect exclusive experiences. Although offline
brand performance is essential, digital contexts can enhance compa-
ny–customer connections, customer satisfaction, and shopping experi-
ences. To strengthen online communications, fashion brands are ad-
vised to provide accurate and reliable information to ensure positive
marketing efforts.
6.1. Implications
This study has several theoretical implications. First, the study is
one of the earliest to examine digital contexts to show that online
service agents provide convenience and quality communication that
positively affect customer perceptions of marketing efforts. Despite the
rich prior research on service agents, our work on e-service agents is
relatively seminal and establishes a basis for further development in
associated theories. Second, our empirical approach demonstrates that
e-service agent performance can be measured according to interaction,
entertainment, trendiness, customization, and problem-solving com-
ponents of marketing in the digital context. Future research on cus-
tomer relationships in virtual environments can further develop our
findings showing that e-service agent performance enhances commu-
nication.
Last, the vast, complex, highly competitive luxury brand industry
faces shifting consumption patterns. Brands are keeping pace with new
opportunities by providing e-service agents, but empirical research has
rarely examined whether they provide quality communication.
Nevertheless, customers have increasingly positive perceptions and
intentions to interact with Twitterbots, perceiving them as competent,
time-saving information-gathering tools (Edwards et al., 2014). By
showing that e-service agents provide quality communication that po-
sitively impacts customer satisfaction, our study enriches the luxury
fashion literature.
The findings have managerial implications particularly for the
luxury retail segment. First, we focused on consumers 20 to 30 years-
old residing in South Korea, a strong segment of luxury consumers, to
capture their perceptions of e-service agent services. Our findings show
that luxury fashion brands can use Chatbot to develop digital customer
M. Chung et al.
assistance tools that increase customer engagement, provide unrest-
ricted availability, offer highly customizable flexibility, and give simple
and natural customer experiences. Chatbots can work with other digital
tools such as applications to smooth customer communications with
luxury brands. Moreover, our results can be applied to other fashion
brands such as SPA or Masstige who wish to maintain positive re-
lationships with core customers through e-service agents. Furthermore,
fashion brands can use online communication history to derive in-
spiration for future customized products.
Second, customer–service agent communication precedes trust. Our
findings indicate that luxury brand marketers should ensure that one-
to-one interactions are accurate and credible so that customers will
perceive optimized personal service and rapid response. In addition to
carefully training employees to be credible brand ambassadors, luxury
brands are advised to consider the five quality dimensions—interaction,
entertainment, trendiness, customization, and problem-solving—when
building programs for e-service agents. Third, e-service agent tech-
nology is currently limited in communication subtleties. As part of the
luxury experience, luxury brand customers might desire to interact with
actual service agents. We recommend that fashion brands offer e-ser-
vice agents for convenience, while offering offline service agents for
richer brand/customer interactions and customer equity.
Appendix A. Stimuli development for luxury brand chatbot service
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