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Return on Interactivity: The Impact of Online Agents on Newcomer AdjustmentAs service offerings grow in both range and complexity, how service providers and their customers interact is becoming increasingly important. In response to the challenge of optimizing these interactions, companies have introduced sophisticated online "socialization agents," whose purpose is to help new customers more effectively adjust to and function within the service environment. The objective of these online agents, or virtual employees, is to help customers evaluate new or unfamiliar service offerings, as well as help companies achieve greater levels of service delivery and financial performance. To investigate this, the authors analyze the process by which online agents help both new and current customers adjust to and function within new, unfamiliar, or complex service contexts. They examine the impact of an online agent on account performance in the banking industry. They find that both interaction style and content of the online agent significantly influence the newcomer adjustment process over time, which in turn influences firm-level performance.Keywords: online agents, agent-customer interaction, socialization, newcomer adjustment, service delivery, virtual employees
93O nline virtual agents are increasingly becoming an integral element for managing firm-customer relationships, particularly in the area of improving selfservice capabilities. Some customers actually prefer virtual agents to live representatives because they may provide them with a sense of empowerment and control over the service process (Clarkson 2010). Moreover, younger generations of customers might actually prefer to interact with online agents rather than human agents in service settings (Graeber and Dolan 2007). At the same time, online agents provide a mechanism in which firms can proactively engage customers and involve them in the service experience beyond basic frequently asked-question (FAQ) interactions.Recent innovations in virtual agent technology can foster more effective and efficient one-on-one customer interactions, but at a fraction of the cost of live agents, enabling companies in various industries (e.g., retail, travel planning, insurance, financial services) to capture market intelligence, increase cross-selling opportunities and revenues, participate in online social networks more actively, automate the delivery of relevant information to prospects and customers, share knowledge interactively with customers, and integrate information flow across internal systems and departments (Clarkson 2010;Graeber and Dolan 2007). More important, virtual agents can help firms provide a consistent and enhanced customer experience that can be closely associated with the brand, in which case the virtual agent him-or herself effectively becomes the brand.Accordingly, the use of intelligent virtual agents has ...