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Archives of Business Research – Vol. 12, No. 1
Publication Date: January 25, 2024
DOI:10.14738/abr.121.16362.
Quang, H. T. (2024). Determinants of Customers' Continuance Intention to Use Chatbots in e-Commerce. Archives of Business
Research, 12(1). 78-92.
Services for Science and Education – United Kingdom
Determinants of Customers' Continuance Intention to Use
Chatbots in e-Commerce
Huy Tran Quang
Department of Business Administration,
University of I-Shou, Kaohsiung, Taiwan
ABSTRACT
Artificial intelligence (AI) has revolutionized the e-commerce experience and
opened up new ways for businesses to communicate with customers through
chatbots. This study aims to investigate how factors of chatbots influence
continuance intention in e-commerce. A quantitative approach was adopted to
explore the impact of interactivity, compatibility, information quality, service
quality on perceived usefulness, perceived enjoyment of chatbots. It also aims to
explore the determinants of continuance intention in chatbot use. Empirical data is
collected from 476 participants through an online survey using Google Form and
analyzed using regression analysis by IBM SPSS software. The results of the study
shows that compatibility, information quality, service quality positively affect
perceived usefulness and perceived enjoyment of chatbot. Perceived usefulness
and perceived enjoyment are found to have significant influence on continuance
intention. The study contributes to the literature of consumer behavior regarding
technology adoption. It also contributes to the refinement of the TAM and presents
practical insights to managers, chatbot designers, and customer service units in
improving chatbots and enhancing continuance intention.
Keywords: Chatbot, Continuance Intention, Perceived Usefulness, Perceived Enjoyment.
INTRODUCTION
AI chatbots are experiencing rapid growth in their application within the e-commerce industry
[1], [2]. Modern AI-powered chatbots surpass their predecessors in terms of sophistication,
capability, and effectiveness. Unlike earlier versions that merely provided basic responses,
these chatbots enhance the interaction between humans and technology [3]. From 2018 to
2027, the chatbot market revenue worldwide is estimated to grow from $40.9 million to $454.8
million in U.S. dollars, over 10 times bigger than the start. In the e-retailing service industry,
chatbots frequently provide a search or decision support role, offering quick, innovative,
interactive, and engaging customer care interactions. A chatbot can be communicated with
verbally or through text. They facilitate the development of important client connections and
reduce consumers' ambiguity and distress, facilitating a more efficient utilization of time and a
more comprehesnsive understanding of products or services [4]. Although prior studies have
aimed to look into the use and importance of chatbots in service interactions [5], [6], a few
studies look at what factors help chatbots interact with customers more effectively and
efficiently [7]. The limited research on chatbots have predominantly been from a business
management perspective, overlooking key factors in chatbot value from the standpoint of the
customer [8]. From the standpoint of the supply side, integrating artificial intelligence (AI) in
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Quang, H. T. (2024). Determinants of Customers' Continuance Intention to Use Chatbots in e-Commerce. Archives of Business Research, 12(1). 78-92.
URL: http://doi.org/10.14738/abr.121.16362
e-commerce can provide significant benefits to organizations and platforms. However, a
significant obstacle to the adoption of chatbots is the challenge of accurately comprehending
client perceptions from the demand side [9]. Therefore, it is reasonable to say there is a call for
a greater insight of consumers' attitudes and behavior towards chatbots in the context of online
shopping, taking into account the impact of the chatbots' unique characteristics. This study
presents a conceptual model that investigates the determinants of perceived usefulness,
perceived enjoyment of chatbot and continuance intention. The findings enhance the current
understanding in the realm of e-commerce research on chatbot adoption for online consumer
behavior intention. This research focuses on determining the factors influencing perceived
usefulness and enjoyment of chatbots, as well as investigating the determinants of customer
continuance intention in chatbot use.
This study is based on the Technology Acceptance Model (TAM), a commonly utilized
theoretical framework in the field of information systems research to understand users'
acceptance of technology. The TAM [10], is a modified version of the Theory of Reasoned Action
(TRA) that emphasizes two main concepts: perceived utility and perceived ease of use.
Perceived usefulness pertains to users' subjective evaluations of how much a technology will
improve their performance and productivity, whereas perceived ease of use pertains to users'
subjective evaluations of how user-friendly a technology is. The TAM has been applied in
various contexts to understand users' adoption and usage behavior of different technologies,
such as e-commerce, mobile applications, and social media. It has been utilized for the purpose
of forecasting and explain users' attitudes and conduct towards technology adoption and usage,
as well as to identify factors that influence users' perceptions of usefulness and ease of use.
Venkatesh and Bala developed an addition version of TAM in which perceived usefulness and
perceived enjoyment is acknowledged as a key factor in end-user adoption. This study is
grounded in the TAM and its addition version by Venkatesh and Bala [10].
Figure 1: TAM model (David, 1989)
The research adopts the definition of e-commerce from Asokan (1998) [11], which
conceptualized e-commerce as the process of engaging in business transactions, including
buying and selling, using a network, usually the internet. In the past decade, e-commerce has
developed and transformed in many aspects due to the advancement of technology. Smart
technologies and fast communication have significantly enhanced the product and the industry
itself considerably [12]. As the competitive in the commerce industry keeps getting fiercer,
several organizations are implementing forms of artificial intelligence as a mean of
differentiation. Global technological trends and expansion have influenced e-consumers
purchasing behaviors and intentions, encouraging more changes in the way customer engage
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Archives of Business Research (ABR) Vol. 12, Issue 1, January-2024
Services for Science and Education – United Kingdom
in the shopping process. Therefore, although there has been ample research on different
aspects of the e-commerce industry, it continues to be a topic worthy of attention from scholars.
A chatbot is defined as computer software that imitates human interaction by utilizing natural
language capabilities. With the aid of chatbots, human-computer interaction is performed and
has a greater impact now than it did a decade ago on practically every aspect of daily life. Early
chatbots supported users in browsing a corporate website or making purchases in an efficient
manner [13]. One noteworthy and well-known example of a virtual assistant is Anna, who
served as an online representative for IKEA on their website. Anna interacted with visitors,
answering their questions about IKEA products and services through an avatar and chat
module [13]. Using a chatbot to communicate with customers is a business strategy that may
be included among the most current advancements in artificial intelligence technology [14]. In
the context of e-commerce, chatbots have offered various distinctive commercial advantages.
First, the chatbots can understand clients' requirements and implement automated customer
service to efficiently address their needs [15]. Moreover, the AI-powered chatbot can
consistently engage with clients in a pleasant manner as it is not susceptible to negative
emotions or work-related exhaustion, unlike a human [16]. Furthermore, chatbots have the
capability to effectively handle numerous consumer discussions simultaneously, hence
enhancing the efficiency of customer care. Chatbots are acknowledged for their ability to
enhance engagement due to their communicative, data-driven, and predictive nature. The sense
of receiving service at the proper time were found to be increased by chatbots, which were
proven to be able to improve the online customer experience [17].
Interactivity has emerged as an important element in an online service system [18]. Fan and
others believe that it is a key driver for turning the physical shopping experience into a digital
one [19]. As society has transitioned to an "always-on" culture where individuals may engage
in online activities at anytime and anywhere, the idea of "interactivity" has been gaining
prominence [20]. This study adopts the definition of Fiore and others, which refers to
interactivity as the capacity of customers to alter the structure and content of the mediated
environment simultaneously [21]. It is suggested that a chatbot that provides high level of
interactivity will contribute to a better user experience, which is an indicator of repurchase
intention [22]. By incorporating interactive elements such as personalized responses, dynamic
visuals, and engaging conversation flows, the chatbot creates a sense of entertainment and
satisfaction for the users, making them perceive interactivity as pleasant and useful, and want
to engage in the shopping process next time.
Compatibility is referred to as the degree to which the technology aligns with the user's prior
knowledge and requirements while maintaining consistency with established principles [23].
A study by Mostafa and others found compatibility to be a predictor of customers’ initial trust
with chatbot, which can lead to usage intention [24]. A compatible chatbot understands and
addresses the users' queries, provides relevant information, and offers appropriate solutions.
This alignment enhances the users' perception of the chatbot's usefulness, as it effectively
meets their needs and helps them achieve their desired outcomes. A chatbot that is compatible
with the users' communication style, language, and preferences can make it feels natural and
easy for users to interact with, leading to a more enjoyable and satisfying experience. The
chatbot's ability to understand users' inputs accurately and provide relevant responses
contributes to their sense of enjoyment during the conversation.