Invoca, date The Harris Pool, date see Nanji, 2019) show that most consumers are unsatisfied or frustrated with AI-powered service and prefer personal interactions with employee service. Based on Berry et al.’s (2006) service experience typology, AI-powered service can be referred to as functional experience. providing convenience to customers by using 24-h auto-messaging services). AI-powered service permeates in business operations as a cost-effective means to enhance organisational efficiency and is used to improve service delivery (e.g. Recent literature ( Wirtz et al., 2018 Xiang et al., 2015) suggests that artificial intelligence (AI) plays an imperative role in influencing customers' service experience. Employee service plays a key role in differentiating customers' perceptions of the organisation's service quality ( Prentice, 2016). In labour intensive industries, humanic experience accounts for a major portion of customer response ( Liao, 2007 Loveman, 1998 Prentice, 2016 Prentice et al., 2020). Such perceptions influence customers' relationship with the organisation ( Cronin et al., 2000 Prentice, 2013b, 2016 Zeithaml et al., 1996). (2006) indicate that these experiences play different roles in customers' cognitive and emotional perceptions of the organisation's service quality. Mechanic experience is the result of customer interaction with sensory components of the service, such as sights, smells, sounds, and other ambient elements. Functional clues are pertinent to the technical quality of the service offering, indicating the reliability and competence of the service. Humanic experience is the result of employee behaviours towards customers. Each clue contributes to customers' service experience with the organisation hence, is referred to as humanic, functional, and mechanic experience respectively. (2006) classify these services into humanic, functional, and mechanic clues. These touchpoints include customers' interactions with different service clues ( Lemon and Verhoef, 2016). Service experience involves multiple touchpoints along the customer journey (pre-, during and post-purchase/consumption). loyalty).Ĭreating a positive service experience has become a key strategy to achieve competitive advantages for service organisations ( Berry, 1995). No research has investigated if customers’ service experience drives customer engagement and subsequent outcomes (e.g. Cambra-Fierro and Melero-Polo, 2017 Leckie et al., 2016 Prentice et al., 2018). Previous research has primarily focused on understanding the influence of each domain of these antecedents on customer engagement (e.g. political, economic, social, technological). brand characteristics, firm reputation, firm information use and processes), and the external forces (e.g. satisfaction, trust, identity, consumer goals), firms (e.g. (2010) provide a comprehensive conceptual customer engagement framework from perspectives of customers (e.g. These implications prompt the necessity of identifying the antecedents or drivers of customer engagement. Despite various definitions and conceptualisations, the level of customer engagement has implications for organisational outcomes such as firm performance, customer purchase and loyalty, as well as shareholder value ( Beckers et al., 2017 Pansari & Kumar, 2017 Prentice et al., 2018 So et al., 2016). Discussion of these findings and implications derived from this study concludes this paper.Ĭustomer engagement has emerged in the literature over the last decade, generally indicating customers' connection and participation with the brand and the organisation in the marketing literature ( Hollebeek, 2011a So et al., 2014). Emotional intelligence has a significant moderation effect on customer engagement. These service experiences also have significant partial mediation effects on customer loyalty. The findings indicate that customers prefer employee service. The results show that whilst both service experience with employees and AI are significantly related to customer engagement and loyalty, only certain dimensions make significant unique variances in the outcome variables. The study was conducted with hotel customers in Australia. Customers’ emotional intelligence is proposed as a moderator between service experience and customer engagement. Drawing on this observation, the current study examines how customers' service experiences with employees and AI influence customer engagement and loyalty. Reports show that most consumers prefer human interactions with service employees. Artificial intelligence (AI) permeates in service organisations as a tool to enhance operational efficiency and improve customer experience.
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