AN ANALYTICAL STUDY OF CUSTOMER ENGAGEMENT THROUGH CHATBOT MARKETING IN THE DIGITAL ENVIRONMENT

Abstract

The rapid advancement of artificial intelligence (AI) and digital technologies has significantly transformed the way businesses interact with customers, making chatbot marketing an essential component of modern digital marketing strategies. Chatbots facilitate real-time communication, personalized recommendations, instant customer support, and enhanced customer engagement across websites, mobile applications, and social media platforms. The present study, "An Analytical Study of Customer Engagement Through Chatbot Marketing in the Digital Environment," aims to examine customers' awareness of chatbot marketing, their usage behaviour, purchase intention, and privacy and security concerns. The study adopted a descriptive research design based on both primary and secondary data. Primary data were collected from 180 respondents using a structured questionnaire through the convenience sampling technique. The collected data were analysed using Percentage Analysis, One-Way ANOVA, Independent Samples t-test, Kruskal–Wallis H Test, and Mann–Whitney U Test with the support of SPSS software. The findings reveal that respondents possess a satisfactory level of awareness regarding chatbot marketing. Age significantly influences awareness of AI-powered chatbots and knowledge gained through social media, while other awareness dimensions do not vary significantly across age groups. Gender has only a limited influence on chatbot usage behaviour, with a significant difference observed only in respondents' ability to communicate with chatbots without technical knowledge. The study also reveals that occupation does not significantly influence customers' purchase intention towards chatbot-assisted shopping experiences. Further, the area of residence significantly influences respondents' concerns regarding the misuse of personal information and the need for transparency in customer data usage, whereas other privacy and security dimensions remain similar across residential groups. Overall, the study concludes that chatbot marketing positively contributes to customer engagement by improving communication, convenience, and digital customer experiences. However, issues relating to privacy, data security, transparency, and digital awareness continue to influence customer acceptance and trust. The study recommends that businesses strengthen AI-driven chatbot capabilities, enhance cybersecurity measures, improve transparency in data handling, and provide user-friendly chatbot services to build customer confidence and foster long-term customer engagement in the digital environment.