Enhancing Customer Experience Through Artificial Intelligence-Powered Chatbots: A Case Study of Shoprite, Niger State
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1.1 Background of the Study
Customer service in the retail industry is evolving, with many businesses embracing Artificial Intelligence (AI) technologies to enhance customer experience. AI-powered chatbots are increasingly used to provide instant customer support, handle inquiries, process transactions, and personalize customer interactions (Ogundele & Adebayo, 2024). These chatbots use Natural Language Processing (NLP) and machine learning to understand customer queries and provide relevant responses, significantly improving service efficiency and customer satisfaction (Anwar et al., 2025).
Shoprite, one of the leading retail chains in Nigeria, has implemented AI-powered chatbots to assist customers with inquiries, product recommendations, and even checkout processes. This case study explores the role of AI chatbots in enhancing customer experience at Shoprite in Niger State, focusing on how these technologies improve service delivery and drive customer loyalty in a competitive retail environment. The study aims to examine the effectiveness of AI-powered chatbots in providing personalized, efficient, and cost-effective customer service.
1.2 Statement of the Problem
The retail industry in Nigeria faces challenges related to providing timely and efficient customer service due to high customer volume, long waiting times, and limited staff. Shoprite in Niger State has adopted AI-powered chatbots to address these challenges, but there is limited research on how effective these systems are in improving customer experience, reducing waiting times, and increasing customer loyalty. Therefore, it is important to assess the impact of AI chatbots in customer service and their ability to meet customer expectations.
1.3 Objectives of the Study
1. To evaluate the effectiveness of AI-powered chatbots in enhancing customer service at Shoprite, Niger State.
2. To assess the impact of AI chatbots on customer satisfaction, response time, and service efficiency.
3. To identify the challenges and barriers faced by Shoprite in implementing and maintaining AI-powered chatbots.
1.4 Research Questions
1. How effective are AI-powered chatbots in providing timely and accurate customer support at Shoprite, Niger State?
2. What impact do AI chatbots have on customer satisfaction, response time, and service efficiency?
3. What challenges does Shoprite face in adopting and maintaining AI-powered chatbots for customer service?
1.5 Research Hypothesis
1. AI-powered chatbots significantly improve customer service efficiency, reducing response time and increasing customer satisfaction at Shoprite.
2. The use of AI-powered chatbots results in improved customer loyalty and repeat business for Shoprite.
3. Shoprite faces challenges such as technical issues, customer acceptance, and training requirements in the implementation of AI-powered chatbots.
1.6 Significance of the Study
This study is important because it assesses the real-world impact of AI-powered chatbots in a retail setting, specifically in Nigeria. By focusing on Shoprite in Niger State, the study provides insights into the benefits and challenges of implementing AI technologies in customer service, contributing to the growing body of research on AI in retail. The findings will be valuable to other retailers looking to adopt AI for customer service enhancement.
1.7 Scope and Limitations of the Study
The study focuses on the use of AI-powered chatbots at Shoprite in Niger State. It does not extend to other retail chains or broader AI applications in customer service. Limitations include potential biases in customer feedback, technological constraints, and the difficulty in isolating the impact of AI chatbots from other factors influencing customer satisfaction.
1.8 Operational Definition of Terms
1. AI-Powered Chatbots: Software applications that use artificial intelligence to simulate human-like conversations with customers.
2. Customer Satisfaction: A measure of how well customer expectations are met or exceeded in the context of service delivery.
3. Natural Language Processing (NLP): A subfield of AI that focuses on enabling machines to understand, interpret, and generate human language.
4. Customer Loyalty: The tendency of customers to repeatedly purchase from the same retailer due to satisfaction and trust in the brand.
5. Response Time: The duration between a customer’s inquiry and the chatbot's response, which affects overall service efficiency.
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