The Effect of Artificial Intelligence on Customer Service in Retail Businesses: A Case Study of Supermarkets in Nasarawa State
- Project Research
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- NGN 5000
Background of the Study
Artificial intelligence (AI) has become a transformative force in customer service, enabling businesses to deliver personalized, efficient, and consistent experiences. In retail, AI applications such as chatbots, recommendation systems, and predictive analytics have significantly enhanced customer engagement and satisfaction.
Supermarkets in Nasarawa State operate in a competitive environment where superior customer service is a key differentiator. However, many of these businesses still rely on traditional methods, which can be time-consuming and inconsistent. Research by Onuoha and Hassan (2025) highlights that AI tools can address these challenges by automating routine tasks, providing personalized recommendations, and enabling real-time problem-solving. This study explores the effect of AI on customer service in retail businesses in Nasarawa State.
Statement of the Problem
Retail businesses in Nasarawa State face challenges in maintaining consistent and high-quality customer service due to factors such as staff shortages, limited training, and fluctuating customer demands. While AI has the potential to transform customer service, its adoption remains limited due to high implementation costs and lack of awareness.
Research by Adebayo and Eze (2024) indicates that supermarkets using AI experience significant improvements in customer satisfaction and operational efficiency. This study investigates the effect of AI on customer service in Nasarawa State's supermarkets and identifies barriers to its adoption.
Objectives of the Study
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To evaluate the impact of artificial intelligence on customer service in retail businesses in Nasarawa State.
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To identify the challenges faced by supermarkets in adopting AI for customer service.
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To propose strategies for enhancing the adoption of AI in customer service.
Research Questions
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How does artificial intelligence impact customer service in retail businesses in Nasarawa State?
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What challenges hinder the adoption of AI for customer service in these businesses?
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What strategies can improve the use of AI in customer service?
Research Hypotheses
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Artificial intelligence does not significantly improve customer service in retail businesses in Nasarawa State.
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Challenges significantly hinder the adoption of AI for customer service.
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Proposed strategies do not significantly enhance the adoption of AI in customer service.
Scope and Limitations of the Study
This study focuses on supermarkets in Nasarawa State, examining the impact of artificial intelligence on customer service. Limitations include variations in AI adoption levels and potential biases in customer feedback.
Definitions of Terms
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Artificial Intelligence (AI): Technology that simulates human intelligence to perform tasks such as decision-making, problem-solving, and learning.
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Customer Service: The support and assistance provided to customers before, during, and after a purchase.
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Retail Businesses: Commercial establishments that sell goods directly to consumers.
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