Analyzing the Impact of Live Chat Service Implementation on Customer Online Shopping Satisfaction

Abstract

A live chat service is a tool embedded in an online shopping website that allows online vendors to instantly communicate with consumers. Empirical quantification of how live chat affects customer satisfaction in an online shopping scenario facilitates the calculation of the return of investment of the implementation of the live chat service. To this end, this paper obtained 84405 pieces of purchase-and-comment data during 2010-2012 from a major online shopping websites in China, which implemented its live chat service in January, 2012. Results suggest that implementing live chat service can indeed improve customer satisfaction. Meanwhile, such effect is more pronounced for third-party brands, experience goods purchases, high perceived risk products, and cross-buying. This study contributes by pioneeringly conducting before-and-after comparison based on real implementation data, as well as offering critical suggestions to online shopping website managers regarding the decision and optimization of live chat service implementation.