Engaging the Avatar: The effects of authenticity signals during chat-based service recoveries

Marketing practitioners and consumers can benefit from more efficient communication by using online chats for customer service. However, consumers desire a genuine experience and if the online chat experience is not believed to be authentic, it can detract from the benefits offered by using these new technologies. In four studies, including one electroencephalogram (EEG) measurement study, the authors show that firms can increase perceived authenticity of chat agents by sending signals via the avatars used in the chat system. The results indicate that avatar authenticity can be enhanced when the avatar is female, and these effects are amplified when the avatar is dressed professionally or a different race than the consumer. This increased authenticity is shown to drive engagement, loyalty, and satisfaction. The results offer fresh insight on how the use of avatars could help firms improve customer perceptions of service for either human- or bot-supported chat experiences.