Date of Award

8-2024

Document Type

Thesis

Degree Name

Master of Science in Information Systems and Technology

Department

Information and Decision Sciences

First Reader/Committee Chair

Dr. Nima Molavi

Abstract

This culminating experience project investigated the impact of chatbot interactions on customer perceptions, ethical considerations, and transparency within the hospitality and tourism industry. The research questions are: Q1: how do the specific visual and verbal aspects contribute to shaping customer perceptions within the context of chatbot marketing efforts? Q2: what steps can companies take to address and mitigate ethical concerns surrounding interactions with chatbots? Q3: To what extent does the level of transparency and explainability in chatbot interactions influence customer trust and satisfaction? The findings are: Q1: the study revealed that visual and verbal aspects of chatbot design significantly shape customer perceptions, with visually appealing chatbots and a friendly tone of voice being positively correlated with higher satisfaction levels. This indicates that strategic design elements enhance customer satisfaction and trust. Q2: the study identified transparency, robust data protection measures, and ethical design practices as crucial steps to address ethical concerns. Transparency about chatbot identity and capabilities, secure data handling, and ethical guidelines embedded in ai algorithms help mitigate ethical risks and build customer trust. Q3: the study found that transparency and clear explanations in chatbot interactions significantly enhance customer trust and satisfaction. Customers who are aware they are interacting with an ai and

who receive clear explanations for chatbot actions report higher levels of trust and satisfaction.

Conclusion for each research question is as follows: Q1: it was concluded that businesses must carefully consider visual and verbal design elements in chatbot marketing efforts to positively influence customer perceptions, satisfaction, and trust. Q2: it was concluded that addressing ethical concerns through transparency, data protection, and ethical ai design is crucial for maintaining customer trust. Proactive measures in these areas help build a responsible and trustworthy chatbot interaction framework. Q3: it was concluded that transparency and explainability are key to enhancing customer trust and satisfaction. Clear communication about the chatbot's identity and actions fosters reliability and positive user experiences.

The future scope for research questions is as follows: Q1: future research could explore the long-term impact of visual and verbal design elements on customer loyalty and the effectiveness of various design variations. Q2: further research could investigate evolving ethical challenges in ai-driven customer service and the impact of emerging regulations on ethical chatbot deployment. Q3: future research could assess the impact of transparency practices on customer trust over time and explore cross-cultural variations in response to transparent chatbot interactions.

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