Using Chatbots in Customer Service: A Case Study of Air New Zealand

The use of chatbots in a customer-service context is one instance of the application of digital technology to generate a competitive advantage for business. Chatbot service offers precise, instant and tailored responses for customer enquiries through a range of communication channels to many users simultaneously. However, there are concerns about customers’ perceptions of whether chatbots offer a human-like experience in customer-service interactions. The focus of this study is to investigate customers’ perceptions of the use of Air New Zealand’s chatbot customer service and its effects on customer satisfaction. This exploratory study adopted qualitative methodology using semi-structured interviews for the collection of primary data from 11 users of Air New Zealand’s chatbot service, Bravo Oscar Tango (Oscar). The results show that the chatbot service is appropriate for solving routine customer problems, providing standardised information for frequently asked questions (FAQs) and resolving non-complex customer issues. Generally, respondents were satisfied with Oscar’s service quality. However, customers perceived that the customer-service interactions lack the human-like qualities of a human customer-service agent for resolving complex customer queries. The quality of the chatbot service did not substantially impact on customers’ overall satisfaction with Air New Zealand.