ASSESSING THE EFFICACY OF CHATBOTS IN THE CUSTOMER EXPERIENCE OF ONLINE BUSINESSES IN NOVALICHES QUEZON CITY: BASIS FOR STANDARDIZATION

Abstract

This study examines the effectiveness of chatbots in enhancing customer experience within the online food industry of Novaliches, Quezon City. As businesses adapt to a consumer landscape that values instant communication and personalized interactions, chatbots have become an essential marketing tool. However, challenges such as impersonal responses, privacy concerns, and a preference for human interaction remain. The study evaluates chatbot performance in terms of service quality, system quality, and information quality, aiming to establish standards for their optimal use in the local online food business sector. This study utilized a mixed methods research design to assess the effectiveness of chatbots in the online food industry of Novaliches, Quezon City. A total of 30 respondents, including customers and business owners/employees, participated in the survey. Purposive sampling was employed to gather insights into the current usage and perceived effectiveness of chatbots in enhancing customer experience. The study revealed that while customers perceive chatbots as moderately effective (with mean scores of 3.18 for customers and 3.52 for owners/employees), business owners and employees hold a more favorable view, particularly regarding service, system, and information quality. However, both groups identified miscommunication as a major challenge, supported by a p-value of 0.008034. To address these concerns, the study proposes step-by-step standardization measures to improve chatbot utilization for both customers and businesses in the online food industry. Based on the findings, the study recommends maintaining and enhancing chatbot usage, continuously monitoring and analyzing customer feedback, optimizing chatbot systems for consistent and accurate responses, and improving functionality to address identified issues such as miscommunication. In conclusion, this research provides valuable insights into the effectiveness of chatbots in enhancing customer experience within online food businesses in Novaliches, Quezon City. The recommendations aim to refine chatbot utilization and improve their overall impact on service quality, system performance, and customer satisfaction in the local food industry.