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Rumi
Rumi
A thesis submitted
Submitted by
RUMI ROY
Scholar ID: 21-50-106
(2021 - 2023)
A Study on the Factors Influencing Consumers’
Purchase Intention Regarding the Usage of Chatbots in
E-Commerce
A thesis submitted
Submitted by
RUMI ROY
Scholar ID: 21-50-106
Assistant Professor
(2021 - 2023)
©NATIONAL INSTITUTE OF TECHNOLOGY, SILCHAR, 2021-23
ALL RIGHTS RESERVED
DECLARATION
I declare that the presented thesis represents largely my own ideas and work in my own
words. Where others’ ideas or words have been included, I have adequately cited and listed
in the reference materials. I have adhered to all principles of academic honesty and integrity.
No falsified or fabricated data have been presented in the thesis. I understand that any
violation of the above will cause for disciplinary action by the Institute, including revoking
the conferred degree, if conferred, and can also evoke penal action from the sources which
have not been properly cited or from whom proper permission has not been taken.
Date:
---------------------
Rumi Roy
Scholar ID- 2150106
Department of Management Studies
National Institute of Technology, Silchar
CERTIFICATE
It is to inform that this certified work done in this thesis entitled ‘A Study on the Factors
Influencing Consumers’ Purchase Intention Regarding the Usage of Chatbots in E-
Commerce’ submitted by Rumi Roy, bearing registration no 2150106 for award of degree
MBA is absolutely based on his own work carried out under my supervision and that this
work/thesis has not been submitted somewhere else for any degree/recognition.
Date:
--------------------------------
Dr. Saurabh Verma
Associate Professor
Department of Management Studies
National Institute of Technology, Silchar
ACKNOWLEDGEMENT
A fruitful work is incomplete without paying a word of thanks to all the people who are
directly or indirectly involved in its completion. The satisfaction that accompanies the
successful completion of task would be incomplete without mentioning those persons who
made it possible, whose encouragement and consistent guidance crowned my efforts with
success.
I am deeply indebted to my respected teacher Dr. Saurabh Verma, Assistant Professor,
Department of Management Studies, National Institute of Technology, Silchar for his
sincere guidance, discussion, good planning, fulfilment of purposes, sufficient preparation,
careful supervision, constant monitoring and evaluation of the project without which I would
not have been able to complete my project and project report successfully. This is my honest
effort to express my gratitude to my respected teacher cum guide in this project.
Date:
---------------------
Rumi Roy
Scholar ID- 2150106
Department of Management Studies
National Institute of Technology, Silchar
ABSTRACT
This study aims to investigate the role of chatbots in the online shopping experience and
explore the effect of consumers' trust in chatbots on their purchase intention. The research
employed a descriptive approach, and a convenience sample of 243 participants from India's
North-East was selected. The study identified eight research variables and demographic data
using a questionnaire on a five-point Likert scale. The results showed that perceived
usefulness, perceived enjoyment, and price consciousness are indicators of a positive
attitude towards chatbots. Perceived risk and convenience of use did not significantly affect
attitudes. Trust in chatbots was found to play a crucial role in customers' positive attitude
and purchase intention. The study also revealed that customers enjoy new technologies and
innovations, which positively impact their mindset and intention to buy. The main mediator
between attitude and purchasing intention was trust. The hypothesized model was supported
by partial least squares structural equation modeling (PLS-SEM) analysis. The study
provides useful insights for online merchants and marketers to enhance their chatbot
strategies and meet customers' demands and expectations.
SECTION : C
Bibliography 33-37
APPENDIX 39-41
LIST OF TABLES
SL. NO. TABLE NAME PAGE NO.
3.1 Coding of Likert Scale 15
LIST OF FIGURES
SL. NO. FIGURE NAME PAGE NO.
1.1 TAM Model 3
3.1 Hypothesized research model 12
3.2 G*Power graph 15
4.1 Research model with values 24
CHAPTER
1
INTRODUCTION
1.1. Introduction
Despite of the fact that chatbots have been around for a while, the development of computers
with AI and the Internet of everything has sparked a technological renaissance. Most people
agree that Joseph Weizenbaum's computer software ELIZA, which he developed in 1966,
was the first chatbot. Chatbots were once regarded as an interesting but largely worthless
technology. Now, chatbots are ready to transform the way we interact and are entering every
industry that requires human interaction. The rise of chatbots has revolutionized the way
consumers interact with online retailers during their shopping journey. The usage of apps
that converse with consumers in a natural way and closely resemble Human interaction is
known as "chatbots," and it is currently one of the fastest-growing trends in artificial
intelligence (AI). With real-time chatbots, businesses may improve customer experiences
and live up to expectations of interactions in an online shopping environment (Chiahui Yen
and Ming-Chang Chiang, 2020). It is anticipated that the market for chatbots would grow
from $2.6 billion in 2019 to $9.4 billion in 2024, with chatbots used for customer care
specifically predicted to enjoy the largest growth between 2019 and 2026 (Nguyen, 2020).
Eeuwen was the first to assess consumer perceptions of chatbot technology from the
perspective of mobile commerce. In his classification of chatbots, Messina's term
"conversational commerce" (c-Commerce), which he described as "utilizing chat,
messaging, or other natural language interfaces (i.e., voice) to communicate with people,
brands, or services," was used (C. Messina, 2016). Out of the five factors considered by
Eeuwen, perceived usefulness, integration, and online security concern were significantly
associated with consumer attitudes towards chatbots used for mobile shopping, whereas
perceived ease of use and attitude towards mobile advertising were not. Future researchers
are encouraged by Eeuwen's work to concentrate on other factors including enjoyment, risk,
and trust (M.v. Eeuwen, 2017). A further study looked to see how attitudes and intentions to
1
use chatbots for shopping are associated with perceived usefulness, perceived ease of use,
perceived enjoyment, price consciousness, perceived risk, trust, and personal innovativeness
(Dharun Lingam Kasilingam,2020).
A key problem in marketing management is consumer purchase intention because it affects
the customer's ultimate choice. Purchase intention measures the possibility of a consumer
making a purchase based on the factors that influence and motivate them to make a purchase
(Abou Ali et al., 2020). A prior study showed that the chat in real time revealed how the
factors affecting the use depend on the context for starting the chat conversation, either for
helping browsing or supporting decision-making. The main goal is to persuade the customer
to buy an item or service rather than just speak with them and use their services in order to
actively affect them to improve their customer journey (McLean and Osei-Frimpong ,2019).
According to a previous research, subjective pleasure and perceived social presence have a
significant beneficial effect on consumers' purchasing intentions (Han, 2021). Compared to
unskilled salesmen, chatbots are four times more productive, and their skills are on par with
those of expert consumer buying staff (Luo et al., 2019).
With the increasing use of chatbots in e-commerce, it has become crucial to investigate the
factors that impact consumers' purchase intentions when using chatbots during online
shopping. Understanding these factors can help online retailers to develop effective chatbot
strategies that can enhance the customer experience and increase sales. This study set out to
determine the factors influencing users' attitudes and intentions to make purchases when
using chatbots for online purchasing, and their impact on customer satisfaction, trust, and
loyalty toward the online retailer. By shedding light on these important factors, this study
can provide valuable insights for online retailers and urging marketers to refine their chatbot
tactics and better meet the needs and expectations of their customers.
2
discovered that the model is useful for describing and forecasting user behavior across a
variety of various technologies and scenarios (Fred D. Davis, 1989).
1. What are the main factors that influence consumers' purchase intention when using
chatbots during online shopping?
2. To what extent do consumers' attitudes toward chatbots affect their purchase intention
during online shopping?
3. How does the level of consumers' trust in chatbots affect their purchase intention during
online shopping?
3
4
CHAPTER
2
A REVIEW OF THE LITERATURE
The study of pertinent academic literature for the research is the primary subject of this
chapter. It examines earlier studies in order to fully comprehend the current issue. The review
looks at a range of factors, methods, issues, theoretical frameworks, and ideas that are
pertinent to this research. Its objective is to offer a thorough evaluation of the body of
literature in order to direct future studies and advance our understanding of the topic.
Simply said, people will accept the technology if they find chatbots beneficial. It is important
to comprehend the value of chatbot technology because it can provide flexibility,
convenience, and time savings (Dharun Lingam Kasilingam,2020). So, it is appropriate to
research how attitudes and purchase intentions are affected by perceived usefulness when
employing chatbots for mobile purchasing.
Consequently, the following hypotheses were presented:
5
Perceived ease of use affecting attitude towards chatbots:
Perceived ease of use is defined as "the extent to which a person believes that using a
particular system would be devoid of effort." The word "ease," which means "freedom from
hardship or excessive effort," implies this. (Fred D. Davis, 1989). Moreover, As stated by
Davis, even if potential users believe a certain application to be helpful, they can also think
that using the system is difficult and that the performance advantages outweigh the effort.
Customers are more inclined to utilize chatbots for mobile shopping if the necessary
technological setup is already in place. The infrastructure consists of user-friendly interfaces,
messenger programs that work with different phones, and internet-enabled phone plans.
Making online purchasing simple for customers can remove any entry barriers imposed on
by technical complexity (Yang, K. (2010)). In other words, users of the technology will be
willing to adopt it if it is simple to understand and use. According to the study's findings,
people's attitudes towards chatbots were significantly influenced by the variables perceived
usefulness, perceived ease of use, perceived enjoyment, price consciousness, perceived risk,
and personal innovativeness (Dharun Lingam Kasilingam,2020). Prior research indicated
that the simplicity of use would have a great impact on users' perception of technological
devices and should be given careful consideration (Agrebi & Jallais, 2015; Dai & Palvi,
2009; Goyal et al., 2013; Khalifa & Ning Shen, 2008; Tsu Wei et al., 2009; J. H. Wu &
Wang, 2005; Yuan et al., 2014; Zahir Irani et al., 2013; Zhang et al., 2012). To understand
users' expectations, researchers must investigate how easily users perceive a technology for
them to use. Perceived ease of use is a key element in this study because chatbots are strongly
related to the technology in regard to functionality.
H2: The attitude towards chatbots is significantly influenced by perceived ease of use.
If an action provides individuals with happiness and enjoyment, they may engage in it. This
suggests that individuals might adopt technology if they find it enjoyable to use. This
indicates that individuals may use technology because it is enjoyable to use (Fred D. Davis,
1989). One of the most crucial factors influencing user adoption of mobile games is
6
perceived enjoyment. Because it affects internet activity and e-commerce, it is essential to
evaluate whether this perceived enjoyment also has an impact on chatbot users (Ha, Yoon,
and Choi,2007). According to one study, "attitude towards mobile commerce, subjective
norm, and perceived enjoyment are positively impacting customers' mobile technology
purchase intentions."( C. Kim, W. Li, D.J. Kim,2015). Engagement in mobile purchasing is
significantly influenced by enjoyment (H.P. Lu, P. Yu Jen Su, 2009). Additional research in
the area of technology adoption has shown that perceived enjoyment has a favourable effect
on consumer attitudes and behaviour (H. Dai, P.C. Palvi,2009). The findings of another
suggest that perceived enjoyment and social norm are significant preconditions for
embracing technology with network externalities (A. Dickinger, M. Arami, D. Meyer, 2017).
Consequently, the following hypotheses were presented:
When mobile bank users experience financial losses as a result of phishing or hacking,
financial risk may result from privacy riskThe study's findings revealed that perceptions of
benefit, attitude, and perceived usefulness all positively influenced the intention to use online
banking, whereas perceptions of benefit, privacy risk, and financial risk negatively impacted
that intention (M.C. Lee,2009). Perceived risk has been treated as an antecedent in previous
7
research, which has a direct and significant impact on a customer's perception of value, their
attitude, and purchase intention (Forsythe and Shi, 2003, Sweeney et al., 1999). Users of
chatbots may be subject to all of the aforesaid risk factors. Customers' purchase intention
would suffer if chatbots fail to live up to the customers' risk expectations.
H5: Price consciousness will impact the attitude of consumers toward chatbots.
8
belief system may be fundamentally shaped by trust, which ensures that internet vendors
won't act opportunistically (D. Gefen, V.S. Rao, N. Tractinsky, 2003).
Intention is directly and indirectly influenced by the trust. Its indirect impact is the creation
of a favorable attitude towards internet purchasing (P.A. Pavlou, 2003). Because chatbots
are a new technology on the market, users' attitudes are greatly influenced by their level of
trust. Past research on the interactions between online buyers and sellers has shown that trust
has a beneficial impact on behavioural intention (Lee and Turban 2001; Gefen, Karahanna,
and Straub 2003; Lu, Zhao, and Wang 2010).
On online retail platforms, customers engage with vendors directly, very often via chatbots
that act as intermediaries to match sellers and customers and facilitate transactions.
Consumers' subjective opinion that chatbots have undersatndig and experience, as well as
goodwill and honesty, is known as "trust in chatbots." (Beldad, Hegner, and Hoppen 2016).
Additionally, studies have revealed that consumer intentions to utilise products are positively
influenced by agent trust (Wang and Benbasat 2005).
Consequently, the following hypotheses were presented:
Humans have an attitude evaluation system that measures the effects of a given behaviour
(A. Athiyaman 2002). Taking on a social interaction approach or by looking at prospective
causes impacting their adoption of chatbot-based technology, previous research has
investigated millennials' attitudes regarding chatbots (De Cicco et al., 2020; Richad et al.,
2019). Attitudes towards using chatbots are positively influenced by their perceived ease of
use (PEOU) and perceived utility (PU). The behavioral intention to use chatbots is
favourably impacted by attitude about using them (Grazia Murtarelli, Carolina Collina and
Stefania Romenti, 2022). Chatbots on websites change how consumers perceive the value of
utilitarian and hedonic commodities, respectively. Chatbots can raise brand recognition by
minimizing the impact that familiarity has on a customer's intention to purchase
(Letizia Lo Presti, Giulio Maggiore, Vittoria Marino, 2021). The willingness to recommend
friends use chatbots to buy things and the willingness to use chatbots to buy products in the
future are measures of purchase intention (Yen & Chiang 2020). Attitude has a big impact
9
on people's intentions and behaviors. So, it is crucial to investigate the association between
human consumers' attitudes toward chatbots as well as their intention to make a purchase.
Consequently, the following hypotheses were presented:
H7: Consumers' attitude toward chatbots and their intention to make a purchase are
significantly correlated.
1. A number of studies have been done before on chatbots regarding their different
characteristics but this study will focus on the consumer’s trust as a mediating
factor between attitude and purchase intention of consumers during online
shopping.
2. There is a lack of comprehension on how distinctive types of chatbots influence
purchase behavior and how chatbots can be used to optimize the online shopping
experience for consumers. The study will identify whether these factors establish
a positive impact on consumers that leads to positive consumer behaviour.
10
CHAPTER
3
REPORT ON THE PRESENT
INVESTIGATION
The popularity of chatbots in the retail sector is driving the necessity for this study. Many
businesses utilize chatbots to improve the online buying experience and offer
personalized customer support. However, it is unclear what influences customers' intent
to buy when they use chatbots for online purchasing. For businesses to create efficient
chatbot strategies that increase consumers' buying intentions and enhance their overall
shopping experiences, an understanding of these elements is crucial. The study will also
ascertain how consumers' purchasing intentions during online shopping are impacted by
their trust in chatbots. The study's findings will assist businesses in fostering customer
loyalty and increasing purchase intent rates by helping them establish trust in their
chatbot systems.
The main goal of this study is to pinpoint and examine the key elements that have the
greatest impact on consumers' decisions to make a purchase while utilizing chatbots for
online shopping. Additionally, the study tries to comprehend chatbots' function in the
online shopping process and how it affects customers' choice-making procedures. The
study also seeks to ascertain the effect of consumers' faith in chatbots on those intentions
when online buying. In addition, demographic variables like age and gender will be
evaluated to see how they affect customers' purchase intent when chatbots are used
during online shopping.
Numerous studies on chatbots' various qualities have already been conducted, but this
study will concentrate on customer trust as a mediating element between attitudes and
11
buy intentions of consumers during online purchasing. Lack of knowledge exists around
how various chatbot kinds affect consumer purchasing decisions and how to employ
chatbots to improve consumers' online shopping experiences. The study will determine
whether or not these variables have a favourable effect on customers and encourage good
consumer behaviour. Additionally, earlier research were done elsewhere in India but not
in the country's north-eastern states.
12
3.5. Objectives:
While conducting this research, the following objectives are being considered:
3.6. Hypotheses:
Following hypotheses are made to satisfy the objectives of the study:
The current study is based on descriptive research to investigate the Factors influencing
consumers’ purchase intention activated by the use of chatbots during online shopping. The
13
study is being conducted in the North-East region of India. Future research can be built on
the findings of descriptive research.
The survey was conducted using a convenience sample since it works well for gathering
target population participants who satisfy particular requirements. The sample components
were chosen based on their ease of accessible, age, and willingness to participate. Since
information is gathered from a random sample, the margin of error is small. This approach
saves time and money.
3.7.2. Questionnaire:
A five-point Likert scale was used to evaluate the responses that were gathered from the
questionnaire. The numbers "1" and "5" here stand for "strongly disagree" and "strongly
agree," respectively. The questionnaire's questions were based on the study's variables. The
questionnaire's questions were taken directly from the literature. The total number of
variables in the study is eight, where five of them are independent variables, one of them is
mediating variable and the other two are dependent variables. Perceived usefulness,
Perceived ease of use, Perceived risk, Perceived enjoyment, and Price consciousness are the
independent variables. While Attitude and purchase intention are dependent variables
and Trust is the mediating variable. The questionnaire also asked for demographic details,
such as the respondent's name, age, and gender. Data was gathered with the aid of a
questionnaire created with Google Forms. Using Google Forms is practical since it enables
us to conveniently contact a large number of people. Data collection takes less time using
this method than with conventional methods.
There were two sections in the survey questionnaire. Responses in the first section ranged
from strongly opposing to strongly agreeing on a Likert scale of 1 to 5. The respondents'
demographic data was gathered in the second section. The respondents' demographic profile
was purposefully positioned near the bottom of the survey before the researchers requested
any personally identifying information in order to elicit the participants' thoughts. This tactic
can support retaining participants' interest and participation throughout the entire survey
(Hair Jr et al., 2018).
14
TABLE 3.1: Coding of Likert Scale
1 “Strongly Disagree”
2 “Disagree”
3 “Neutral”
4 “Strongly Agree”
5 “Agree”
There is an infinite population, and the sample size of 243 respondents are being selected for
the study by using the “G-power” software (shown in Fig. 3). Participants are divided into
young (under 35) and old (over 35) groups, as in India people under the age of 35 are
considered as young generation.
The data have been analyzed using a descriptive study design with a quantitative
methodology. The partial least squares structural equation modeling (PLS-SEM) tool was
used to test the assumptions. Because of its flexibility with regard to data needs, model
complexity, and association criteria, PLS-SEM (Smart PLS 3.0) is mostly used for the study.
15
To ensure the validity of the results, a thorough review must be conducted (Hair et al., 2017;
Hair et al., 2013). Cronbach's coefficients and the composite reliability (CR) should be used
to assess the internal validity should be used to assess the reliability index, the average
variance extracted should be used to assess the convergent validity, and HTMT ratio should
be used to assess the discriminant validity. As per Hair et al. (2019), employing these
strategies will ensure the reliability and validity of the research findings.
The data analysis was broken down into several parts. The suggested metrics of the model
were carefully tested for reliability and validity. Fornell-Larcker criteria, Cronbach's alpha
values, and average variance extracted (AVE) values had to be determined. The second step
was utilising the bootstrapping method to calculate the route coefficients. Finally,
blindfolding was used to test the determining factor (R square value) & Q square value. Last
but not least, the mediators of the variables were investigated by looking at their particular
direct, indirect, and total effects.
16
CHAPTER
4
DATA ANALYSIS
4.1 Demographics
4.1.1 Gender
As seen from the collected data, the majority of those surveyed are male. 63.09% of the
total respondents’ accounts for male, i.e., 171 are male, while 36.90% of the respondents
are female, i.e., 100 are female.
4.2.2 Age
As it is evident below, the majority of the participants in the research are people
being of the age category of less than 35 years which accounts for 92.62% of the total
respondents, i.e., 251respondents and the rest of the respondents being of the age category
of more than 35 years accounting for 7.38% of the total respondents, i.e., 20
respondents.
No. Percentage
Gender
Age
17
4.2. Measurement model:
In this work, partial least squares structural equation modelling (PLS-SEM) was used to
analyse the survey results, the process was enabled by SmartPLS-3.0. The two procedures
for evaluating the sufficiency of the measurement model are reliability and validity. Internal
consistency reliability is measured by Cronbach's alpha, which demonstrates how closely
connected and consistent a construct's pieces are with one another higher values represent a
higher internal consistency and reliability; values range from 0 to 1. Values for the composite
reliability and Cronbach's alpha range from 0.839 to 0.948, indicating that the items in each
construct are highly related to each other. The average variance extracted (AVE) is the
indicator that convergent validity has been achieved, which quantifies how closely
connected and consistent the items on a scale or construct are with one another. Higher
values indicate higher convergent validity; values range from 0 to 1. Here, all the constructs
also have good convergent validity, with AVE values beginning from 0.767 to 0.906, which
are higher than the suggested level of 0.5. This indicates that each construct's items
effectively measure the construct they are intended to measure.
18
PEU1: Chatbot shopping doesn't demand a lot of 3.190
mental effort.
PEU2: Overall, I believe employing "chatbots" for
purchasing is simple. 3.901
Perceived Risk (Featherman. M.S., & Pavlouv . P.A., 0.856 0.903 0.824
2003)
2.270
PR1: My choice to shop via chatbots includes a
significant level of risk.
PR2: Using chatbots, in my opinion, would cause 2.270
payment ambiguity.
Price Consciousness (Taylor.S., & Todd. P.A., 1995) 0.839 0.925 0.861
PC1: The main factor impacting my shopping 2.095
decisions is a low price.
2.095
PC2: I value low prices for a range of products.
Purchase Intention (‘Pavlou.P. A., & M. Fygenson., 0.873 0.922 0.797
2006’)
2.099
PI1: I'll buy products from this website.
3.118
PI2: I'll probably buy more things from this website
in the future. 2.418
19
TT2: When using chatbots, I'm confident that my 2.814
personal data will be kept confidential.
TT3: I'm not concerned about giving chatbots my
credit card details. 1.589
Table 4.3. AVE's square root and several constructs are correlated using the Fornell-Larcker
criterion:
AT PEU PE PR PU PC PI TT
AT 0.924
PEU 0.665 0.918
PE 0.734 0.759 0.952
HTMT is a statistical tool used to evaluate a study's discriminant validity. The values off-
diagonal represents correlations between the constructions, while the diagonal values are
1.0. The HTMT ratio should be less than 0.85 to indicate that the construct measured by each
variable is distinct from the items determined by all other variables in the study, (‘Henseler,
J., Ringle, C. M., & Sarstedt, M. 2015’). All of the HTMT ratios were less than 0.85, as
shown in Table 3, suggesting excellent discriminant validity.
20
Table 4.4. HTMT: Heterotrait-monotrait ratio representation: -
AT PEU PE PR PU PC PI TT
AT
PEU 0.725
PE 0.784 0.819
PR 0.131 0.157 0.177
PU 0.796 0.777 0.747 0.188
PC 0.393 0.302 0.377 0.402 0.318
PI 0.697 0.617 0.611 0.271 0.600 0.527
TT 0.688 0.400 0.532 0.064 0.459 0.342 0.592
4.3.Structural model:
Using the bootstrapping process, the model's associations' statistical significance was
evaluated in Smart PLS 3.0. The P-Value should always be less than 0.05. Since all of the
values in Table 4 are less than 0.05, a significance level of 5% will be approved. The T-
statistics for Attitude Towards Chatbots to Purchase Intention (6.895) and Attitude Towards
Chatbots to Trust (12.396) are both significant (p 0.001), significant, and indicate that there
are dependable and strong correlations between these latent variables. Yet, only two
values—0.246 and 0.514—are higher with regard to perceived Ease of use and perceived
Risk, respectively. The significance of hypotheses H7 and H6b regarding attitudes towards
chatbots and trust towards chatbots with regard to purchase intention when utilizing chatbots
can be shown with a significance level of 0.002 and 0.000 respectively. The p-values suggest
that most of the relationships between the variables in the table are significant and the
hypothesis are supported, except for the relationships between PEU and AT and between PR
and AT, which are not significant i.e., H2 and H4 with P-values of 0.246 and 0.514
respectively and as a result, the hypothesis will be rejected.
These findings support the hypothesized correlations between the latent variables and
indicate that most of the direct effects in the model are statistically significant.
21
Purchase
Intention
Attitude 0.609 0.049 12.396 0.000
Towards
Chatbots ->
Trust
Perceived Ease 0.078 0.067 1.162 0.246
of Use ->
Attitude
Towards
Chatbots
Perceived 0.362 0.061 5.911 0.000
Enjoyment ->
Attitude
Towards
Chatbots
Perceived Risk - -0.034 0.052 0.653 0.514
> Attitude
Towards
Chatbots
Perceived 0.406 0.059 6.889 0.000
Usefulness ->
Attitude
Towards
Chatbots
Price 0.100 0.041 2.439 0.015
Consciousness -
> Attitude
Towards
Chatbots
Trust -> 0.209 0.069 3.049 0.002
Purchase
Intention
Interpretation:
The Standardised Root Mean Square Residual (SRMR) values for the Saturated Model and
the Estimated Model are shown in the table.
The SRMR is a goodness-of-fit metric used in PLS-SEM that assesses the difference
between the fitted model and the observed data. It evaluates the average difference,
standardized by the average residual correlation, between the correlation matrix that was
seen and the one that the model suggested.
A lessen SRMR score signifies a greater match between the model and the observed data.
An SRMR value of less than 0.08 is the generally accepted cut-off for a satisfactory fit.
22
The Saturated Model has a lower SRMR value of 0.050, which suggests a better fit to the
data when the SRMR values of the two models in the table are compared. The Estimated
Model, on the other hand, has a higher SRMR score of 0.071, which denotes a less
satisfactory match.
Overall, the Saturated Model is probably a superior description of the data, even though both
models may fit the data to some extent.
Interpretation:
The R² coefficient in PLS-SEM is used to measure the percentage regarding the exogenous
latent variables' ability to explain the endogenous latent variable's variance. Higher values
of the R² coefficient suggest a stronger link between the variables and range from 0 to 1.
The exogenous latent variables within the model accounts for 64.7% of the variance in the
attributable latent variable for attitudes towards chatbots, with an R² value of 0.647. Similar
to the Purchase Intention latent variable, which has an R² value of 0.417, the exogenous
latent factors account for 41.7% of the variance in Purchase Intention. Last but not least, the
Trust latent variable has an R² value of 0.371, indicating that the exogenous latent factors
account for 37.1% of its variation.
Overall, these R² values indicate a moderate to strong association between the exogenous
latent factors and the endogenous latent variables, with the relationship between Attitude
Towards Chatbots and Trust being the strongest.
The relevance of exogenous variables to model performance has been assessed using the
blindfolding process. The percentage of the endogenous latent variable's variation that the
model's exogenous latent variable or variables explain is represented by Q² (Hair et al.,
2017).
23
The Q² value is shown in the given table. Latent exogenous variables in the model described
53.9% of the variance in attitudes towards chatbots, according to the Q² value for attitudes
towards chatbots, which is 0.539. The exogenous latent variables are responsible for 32.4%
of the variance in purchase intention, according to the Q² value for purchase intention, which
is 0.324. Last but not least, Trust's Q² value is 0.280, meaning that external latent factors
account for 28.0% of its variation. These Q² values show that the model's exogenous latent
variables can only be moderately good at explaining the variation in the endogenous latent
variables.
Coefficient T P Coefficient T P
Statistics Values Statistics Values
24
Attitude Towards 0.624 10.880 0.000
Chatbots ->
Purchase Intention
Attitude Towards 0.609 12.396 0.000 Attitude 0.497 6.895 0.000
Chatbots -> Trust Towards
Chatbots ->
Purchase
Intention
Trust -> Purchase 0.209 3.049 0.002
Intention
Interpretation:
The values of the total effects among the latent variables for attitude towards chatbots, trust,
and purchase intention are shown in the above table. An independent variable's association
with a dependent variable as a whole, so the total effect is the umbrella term for both direct
and indirect effects.
The overall effect of chatbot attitudes on purchase intention is 0.624, which suggests a
significant and statistically significant connection. The T-statistic of 10.880 and the p-value
of 0.000 support the significance of this overall effect. As seen in the preceding tables, this
total effect includes the direct effect of 0.497 and the indirect effect of 0.127 (via Trust). An
equally substantial and statistically significant association is seen by the total effect of
attitude towards chatbots on trust, which is 0.609 in this case. The T-statistic of 12.396 and
the p-value of 0.000 support the significance of this overall effect. Since there are no
additional variables that serve as a mediating factor in this relationship, the total effect just
takes into account the direct impact of attitude towards chatbots on trust. The final statistic
in the table is the overall trust's effect on consumers' propensity to buy, which is 0.209. With
a T-statistic of 3.049 and a p-value of 0.002, this shows a strong and statistically significant
relationship.
The value of the direct relationship between the latent variables representing attitudes
towards chatbots and purchase intentions is represented in the table. It shows how much the
independent variable directly influences the dependent variable.
Here, the direct effect between the latent variables for Attitude Towards Chatbots and
Purchase Intention is 0.497, indicating a favourable & statistically pertinent correlation. The
T-statistic of 6.895 and the p-value of 0.000 further support the significance of this direct
effect.
25
Table 4.9. Specific Indirect Effect:
Interpretation:
The table shows the value of the specific indirect connection that exists between the purchase
intention and attitude towards chatbots latent variables via the trust latent variable.
This table shows a specific indirect impact of 0.127 between the latent variables for Attitude
Towards Chatbots and Purchase Intention via the latent variable for Trust. This indicates that
the association between Attitude Towards Chatbots and Purchase Intention is partially
mediated by the latent variable Trust. The indirect impact of attitudes towards chatbots on
purchase intention through trust is positive and statistically significant at the current level of
analysis.
26
CHAPTER
5
FINDINGS AND CONCLUSION
5.1. Findings:
The results offer considerable support for the proposed model. Some of the major findings
are: Attributes of chatbots notably perceived usefulness, perceived enjoyment, and price
consciousness are indicators of a positive attitude toward chatbots. Another finding includes
that perceived ease of use doesn’t have a strong impact on the attitude, also perceived risk
does not satisfy the level of significance of its relationship with the attitude factor. Moreover,
trust in chatbots plays an important role in customers having a positive attitude towards the
chatbots and making a positive purchase intention. Another thing is that customers tend to
enjoy new technologies and advancements, which shows that perceived enjoyment has a
significant positive impact on the attitude and purchase intention of the customers towards
the use of chatbots during online shopping. However, trust toward chatbots (TT) has weak
to moderate positive correlations with all other constructs except for Perceived Risk (PR),
where the correlation is weakly negative. Overall, the correlations suggest that Attitude
toward chatbots (AT), Perceived ease of use (PEU), Perceived enjoyment (PE), & trust
towards chatbots (TT) may be important factors for technology adoption and acceptance,
while Perceived Risk (PR) may hinder technology adoption. Here it can be seen that trust is
serving as a mediator between consumers’ attitude towards the chatbot technology and their
purchase intention activated by means of it.
The given below table represents the designed hypothesis & whether these are supported or
not with the current study.
27
Table 5.1. findings of the hypothesis:
Hypothesis Result
H2: The attitude towards chatbots is significantly PEU AT NOT ACCEPTED
influenced by perceived ease of use.
5.2. Conclusion:
Trust is among the most crucial elements that directly influence how people think about
chatbots for online commerce. Trust, as well as risk, usually go together. As technology is
more widely trusted, the PR related to it is notably lessened. When employing chatbots for
online purchases, people rely on trust and perceived risk, but this investigation highlights
the prominence of perceived enjoyment and perceived usefulness. Additionally, trust is
essential for people who shop online when deciding what to buy. This study shows a link
between perceived risk and a negative attitude toward chatbots used for buying. The risk is
nevertheless a substantial worry despite the absence of a significant association.
In a previous study, it was discovered that perceived usefulness, perceived ease of use, and
perceived enjoyment had a substantial effect on consumer attitudes toward chatbots, as well
as that trust in chatbots had a large impact on customers' buying intentions (Ahmad, A. R.,
Musa, R., & Hashim, H. A., 2021). According to Ryu and Feick's findings in a different
study, customers' attitudes toward technology were majorly affected by perceived
usefulness, perceived ease of use, and perceived enjoyment. They also discovered that
customer sentiments towards technology were negatively impacted by perceived risks (Ryu,
28
G., & Feick, L., 2007). In a different study, it was discovered that customers' opinions
towards chatbots were significantly improved by their trust in the technology. Additionally,
they discovered that perceptions of practicality and ease of use had a significant impact on
how customers attitude towards chatbots (Huang, K. T., Cheng, Y. H., & Wang, S., 2019).
The TAM is a well-known paradigm for comprehending the elements that affect users'
adoption and acceptance of technology. According to the paradigm, perceived utility (PU)
and perceived ease of use are the main factors that influence how well users embrace and
make use of technology. In this study, as indicators of a positive attitude towards chatbots,
characteristics including perceived usefulness, perceived enjoyment, and price
consciousness are identified. This result is in conformity with the TAM's emphasis on
perceived usefulness as a key factor in technology adoption. According to a study by
Venkatesh and Davis, consumers' inclination to use technology was highly impacted by its
perceived usefulness (Venkatesh, V., & Davis, F. D., 2000). The fact that perceived ease of
use has little effect on attitude further supports the TAM's assertion that PEU is a necessary
but insufficient prerequisite for acceptance of technology. The TAM suggests that users'
attitudes toward utilizing technology will be influenced by how easily they think it can be
used. However, it might not be the only element that affects how well-liked they are.
In a nutshell the research findings discussed confirm the TAM's constructs and offer more
proof of the model's applicability in comprehending technology adoption and acceptance.
29
5.3. Suggestions:
1. Future research should be done to examine how price sensitivity affects consumer
attitude towards chatbots. This study can investigate the connection between consumers'
perceptions of prices and chatbots. It can investigate the elements that affect consumers'
opinions of the utility of chatbot technology and how economic considerations affect
their choice to use it.
2. Examining how customers' purchase intentions are affected by their trust in chatbots:
This study can concentrate on how customers' purchasing intentions are affected by their
faith in chatbots. It can investigate the elements that help people trust chatbots, like their
dependability, security, and privacy features.
The study's theoretical conclusions suggest that companies looking to boost sales through
chatbots should concentrate on establishing good attitudes about chatbots and cultivating
customer trust. This might be accomplished by creating chatbots that are easy to use, offering
information that is precise and clear, and making sure that chatbots are trustworthy and
secure. Additionally, while building and adopting chatbots, firms should take into account
any potential constraints of perceived usability and perceived risk. Overall, the study offers
insightful information on the elements that influence user behaviour towards chatbots and
can guide the creation of more successful chatbot strategies.
The study shows that trust acts as a mediator in the relationship between attitude towards
chatbots and purchase intentions. This confirms other studies that highlighted the
significance of attitudes and trust in anticipating customer behaviour. Additionally, the study
shows that attitudes regarding chatbots have an indirect impact on purchase intentions
through trust, highlighting the significance of trust in the link between attitudes and buy
intentions. Finally, the study advances knowledge in the field by investigating the intricate
connections between the latent variables using a total effects method. This method offers a
more thorough grasp of the connections between the structures being studied, which can help
direct further study and theory building.
30
5.5. Practical implications:
In order to increase customers' purchase intent when utilizing chatbots, businesses should
concentrate on enhancing their attitudes and trust toward chatbots. The study also shows that
perceived risk has a greater coefficient than perceived usability, suggesting that customers
are more worried about the possible risks of employing chatbots than usability. Companies
must therefore solve these issues in order to decrease customers' perceptions of risk and
boost their confidence in chatbots. The study also emphasizes the value of statistical analysis
in identifying the links between variables, which can assist businesses in building and
deploying chatbot-based services by allowing them to make data-driven decisions.
According to the mediation analysis's results, customers' opinions of chatbots have a big
impact on their intent to make purchases, both directly and through trust. Hence, building
and retaining trust with customers should be a top priority for businesses because it is crucial
to the decision-making process when making a purchase.
Therefore, marketers must take all necessary precautions to attempt and reduce the risk
involved with implementing chatbots. An impression of a high level of transaction security
and safety would lead to a strong intention to make a purchase from an e-commerce
company. This current study even indicated a favourable and strong connection between
customers' attitudes toward chatbots and price consciousness. When customers use e-
commerce platforms to search for and purchase goods, they are more focused on finding
products at affordable rates.
The results of this study could be impacted by participants' social desirability bias because
the survey was carried out digitally using an online questionnaire. Future research may
employ a range of techniques to examine how consumers feel about chatbots on e-commerce
sites.
31
In order to be relevant to business goals, this study examined how chatbots are used in e-
commerce from the standpoint of the consumer. There are numerous business applications
for chatbots. It would be instructive to comprehend how mobile chatbot applications are used
and adopted from different perspectives, such as B2B will be enlightening.
32
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38
APPENDIX
QUESTIONNAIRE
Name
Email
Gender Male
Female
Age Less than 35
More than 35
39
Please rate the following statement related to perceived Enjoyment:
PE1: Using chatbots for shopping is fun Strongly Disagree
for me. Disagree
PE2: I enjoy using chatbots when Neutral
purchasing online. Agree
PE3: The actual application of chatbots for Strongly Agree
shopping is a pleasant experience.
40
Please rate the following statement related to Attitude towards Chatbots:
AT1: Chatbots can be useful when Strongly Disagree
shopping. Disagree
AT2: I think it would be enjoyable to shop Neutral
using chatbots. Agree
AT3: I like using chatbots for shopping. Strongly Agree
Please rate the following statement related to Purchase Intention triggered by the use of
chatbots:
PI1: I'll buy products from this website. Strongly Disagree
PI2: I'll probably buy more things from Disagree
this website in the future. Neutral
PI3: I'll seriously consider buying products Agree
from this website. Strongly Agree
41
A Study on the Factors influencing consumers’ purchase
intention regarding the usage of Chatbots in E-commerce
ORIGINALITY REPORT
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