Customer Brand Engagement through Chatbots on Bank Websites- Examining the Antecedents and Consequences

Chatbots are virtual conversation agents that offer innovative features to connect with customers and thus offer a promising avenue to engage customers. Currently many private and nationalized banks are deploying chatbots for connecting and communicating with customers. This technology is expected to dominate the banking sector in the future by improving customer service. However, the success of banking chatbots will be effective when customers are satisfied with the chatbots and engage in using them. To probe in to the question, this study investigates the antecedents and consequences of customer brand engagement in using banking chatbots, with the lens of diffusion of innovation theory. The antecedents include interactivity, time convenience, compatibility, complexity, observability, and trialability. The consequences are satisfaction with the brand experience and customer brand usage intention. The theorized model has been validated with 470 Indian banking chatbot customers usable responses. The results suggest that trialability, compatibility, and interactivity positively influence customer brand engagement through a chatbot, thereby influencing satisfaction with the brand experience and customer brand usage intention. The paper presents theoretical and managerial implications which enable banks to strengthen customer engagement, satisfaction and brand usage intention through chatbots.