How does Generation Z experience digital customer service? : Exploring customer trust toward chatbots in European countries.

Abstract: Background: The concept of the chatbot has been around for nearly 60 years. However, service providers have recently increased the integration of chatbots in distinct industries due to the growth in digitalization and advanced technology. Not only that, chatbots can support service providers in becoming more efficient and reducing overhead costs. As a result, this transformation in service offering has influenced customers in various forms. Thus, this study explores Generation Z's perceptions and experiences using chatbots, with a focus on the influence these systems have on their trust. There is little information about this topic, and this study should aid organizations in learning how to better meet customer expectations, which could lead to more promising customer satisfaction in the future. Purpose: The purpose of this study is to investigate customer perceptions and trust in chatbots which is a form of advanced technology in a customer service setting. The aim is to gather empirical evidence from customers' social reality to answer the research question of this investigation. Method: This research conducted an exploratory qualitative study with an inductive research approach. Semi-structured interviews were conducted with 15 respondents from Generation Z, located in Sweden, Norway, the Netherlands, and Germany to achieve a broad perspective regarding their experiences with chatbots. The respondents were selected using the snowball and networking sampling method. The research paradigm of this study is interpretivism, which supports the examination in exploring and gaining knowledge about this phenomenon. Conclusion: The aim of this study was achieved, and the gathered empirical evidence presents further knowledge regarding customers' experiences with chatbots. This study and other relevant examinations prove that the increase of digitalization in customer service settings has an influence on customer experience. Primarily, the empirical findings indicate that there is an overall lack of trust in advanced technology due to the issue of privacy. Although Generation Z has grown up alongside the worldwide digital transformation, they remain cynical and distrustful of the future of technology. Thus, it occurs that there is a lack of customer trust in chatbots. However, this is confirmed by the fact that customers are sharing low pre-expectations towards chatbots. As a result, customers experience a more dissatisfied feeling towards the service provider. On the other hand, the empirical findings reveal that customers' loyalty remains unaltered towards businesses.