HOW THE ROBO INTERACT WITH CONSUMERS:

FUTURE PHYSICAL STORES

Abstract
Artificial Intelligence (AI) technology has been increasingly used to enhance consumer interaction
and improve customer experience in various industries. AI-based human-computer interaction
technology is being proposed to realize experiential education for students in the course of
consumer behavior. The development of AI has brought more opportunities to many fields,
especially after the cooperation between AI and business. AI not only realizes daily interaction but
also allows people to enjoy immersive experience technology through related devices. The AI
system is adopted by the recommendation engine of Amazon to help and improve the original
recommendation services, so that consumers can choose very attractive-related recommendation
products. Currently, this technology is also considered a very reliable shopping consultant.AI-
enabled customer engagement holds the promise of a company learning more from each
interaction and finding more ways to create value for customers. However, there are concerns
about data privacy or only being able to communicate with a company through a bot, especially in
industries where customer interactions and data privacy are critical, such as banking or healthcare.
Smart companies are using generative AI to enhance, not automate, the customer experience.
Research shows AI can help boost customer satisfaction when it’s used to offer customers more
personalized solutions or to help human employees provide better service than they would without
the technological assist. I customer service for higher customer engagement has been implemented
in various industries. For example, a fast-growing bank in Asia reimagined customer service by
revamping existing channels, improving straight-through processing in self-service options,
launching new, dedicated video and social-media channels, and supporting servicing channels by
AI-powered decision making.

Keywords
Artificial intelligence AI, Machine learning Systematic literature review Research agenda
Introduction

The integration of Artificial Intelligence (AI) technology in customer service and engagement has
emerged as a transformative tool in various industries, enabling companies to create personalized
and proactive experiences for their customers. AI-enabled customer service goes beyond automation,
aiming to enhance the customer experience by providing tailored solutions and supporting human
employees in delivering better service. The use of generative AI has been shown to increase
customer satisfaction and engagement by offering customized services and solutions. This article
explores the benefits and challenges of AI technology in customer service, drawing on examples
from various industries. The integration of AI in customer service involves the use of AI-powered
decision-making, enhancing self-service options, and real-time tracking of performance against
customer engagement targets. While AI offers significant benefits in enhancing customer
experiences, addressing challenges related to complexity, uncertainty, and maintaining consumer
trust is crucial. The article highlights the importance of balancing AI and human interaction
effectively to deliver exceptional customer experiences in the evolving landscape of customer
service. By leveraging AI technology to create personalized and proactive experiences, companies
can learn from each interaction and create more value for their customers, ultimately driving
business growth and success. Robots equipped with natural language processing capabilities can
interact with customers in physical stores, providing information, guiding them to specific products,
and even processing payments. This integration of AI and robots elevates customer service to new
levels of efficiency and convenience. In the future, physical stores are expected to incorporate more
AI and robotics to enhance the shopping experience, such as personalized recommendations, virtual
shopping assistants, and predictive inventory management. Retailers should consider deploying
robots in a balanced manner, using them to augment human capabilities rather than replace them,
and developing realistic expectations about the evolutionary nature of AI technology. The
integration of AI and robots in retail has revolutionized the way businesses interact with customers
and how consumers shop. AI technology, which includes machine learning algorithms and deep
learning techniques, has enabled retailers to personalize shopping experiences, optimize operations,
and increase sales. Robots equipped with natural language processing capabilities can interact with
customers in physical stores, providing information, guiding them to specific products, and even
processing payments. This integration of AI and robots elevates customer service to new levels of
efficiency and convenience. In the future, physical stores are expected to incorporate more AI and
robotics to enhance the shopping experience. Personalized recommendations, virtual shopping
assistants, and predictive inventory management are just a few examples of how AI is reshaping the
future of shopping. Retailers should consider deploying robots in a balanced manner, using them to
augment human capabilities rather than replace them, and developing realistic expectations about the
evolutionary nature of AI technology.AI-powered technologies can analyze vast amounts of
customer data to personalize product recommendations, predict buying behavior, and even tailor
marketing campaigns.
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METHODOLOGY

The integration of AI and robots in retail has brought about significant changes in the way businesses interact with customers and
how consumers shop. In the future, physical stores are expected to incorporate more AI and robotics to enhance the shopping
experience. Here's a methodology on how robots interact with customers in AI-powered physical stores:
 AI-powered customer interactions: Robots equipped with natural language processing capabilities can interact with
customers in physical stores, providing information, guiding them to specific products, and even processing payments. This
integration of AI and robots elevates customer service to new levels of efficiency and convenience.
 Personalized recommendations and virtual shopping assistants: AI-powered technologies can analyze vast amounts of
customer data to personalize product recommendations, predict buying behavior, and even tailor marketing campaigns
Virtual shopping assistants powered by natural language processing can interact with customers through chatbots, providing
real-time assistance and product recommendations
 Inventory management and predictive analytics: AI-based forecasting and planning tools can help retailers proactively
address out-of-stock situations, using accurate and real-time insights into consumer preferences, market trends, competition,
weather impact, and more to boost the supply chain from manufacturing to logistics and delivery schemas
 Automation of routine tasks: Automation can handle most of the routine tasks in retail, such as handling returns and
complaints, clearing products nearing expiration, and dealing with low-stock situations
This reduces human intervention and frees up employees to focus on more customer-centric tasks.
 Self-checkout counters: AI-powered self-checkout counters can help combat inefficiencies, including tackling long queues
at checkout counters
This not only speeds up the checkout process but also reduces staffing requirements at counters.
 Shelf monitoring and price comparison: Robots like ERIS can scan retail store shelves and price tags to detect out-of-
stock items and identify mispriced items, providing data extraction and on-the-go edge analytics and sending instant error
alerts to store operators and managers
 Inclusive shopping experience: AI robots can help increase retail store inclusiveness by facilitating the shopping process
for people with disabilities

Balancing technology and human interaction: While AI can provide valuable insights and recommendations based on data analysis,
nothing can replace the warmth and personal touch of human interaction. Retailers should strike a balance between technology and
human interaction for a truly exceptional customer experience.
Ethical considerations: The use of robots in retail raises ethical concerns, particularly regarding the capture of personal information
through sensors. Retailers should be transparent about their data collection practices and ensure that they comply with data privacy
laws.
In conclusion, the integration of AI and robots in retail is revolutionizing the shopping experience by providing personalized
recommendations, virtual shopping assistants, and efficient inventory management. As technology continues to advance, physical
stores are expected to incorporate more AI and robotics to enhance the shopping experience further. However, it is essential to
maintain a balance between technology and human interaction to provide a truly exceptional customer experience.

Literature Survey

Johanna Hyllander & Hanna Fors (Published in 2020):- The physical store experience
The study used the "Experience Economy 4E construct" along with three dimensions of perceived experiential value as a theoretical
framework. The research was conducted through six semi-structured interviews and analyzed using thematic analysis, generating
insights into positive and negative feelings that affect customer satisfaction and store attractiveness. The results showed that
experiential offerings from brick-and-mortar fashion retailers create perceived experiential value, which in turn leads to customer
satisfaction and store attractiveness. Educational experiences, esthetic experiences, and social interactions were identified as primary
value-creating sources.
Jonathan Z. Zhang Chun-Wei Chang, and Nesli View
(Published in 2021):- How Physical Stores Enhance Customer Value: The Importance of Product Inspection
Depth
The authors investigate the role of physical stores in today's multichannel environment, emphasizing their ability to enhance
customer value by providing the physical engagement needed for customers to purchase deep products. Using a multimethod
approach, the authors find that buying deep products in the physical store transitions customers to a high-value state more than other
product/channel combinations, supporting the hypotheses derived from experiential learning theory. The research suggests that
multichannel retailers use a combination of right-channel and right-product strategies for customer development and provides
implications for experiential retail designs.
Erica van Herpen Eva van den Broek, Hans C.M. van Trijp, Tian Yu (Published in 2021): - Can a virtual
supermarket bring realism into the lab? Comparing shopping behavior using virtual and pictorial store
representations to behavior in a physical store (Published in 2020): - The authors investigate the role of physical stores in
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today's multichannel environment, emphasizing their ability to enhance customer value by providing the physical engagement
needed for customers to purchase deep products. Using a multimethod approach, the authors find that buying deep products in the
physical store transitions customers to a high-value state more than other product/channel combinations, supporting the hypotheses
derived from experiential learning theory. The research suggests that multichannel retailers use a combination of right-channel and
right-product strategies for customer development and provides implications for experiential retail designs.
Axel Wedebrand.0, Charlotta Ödling (Published in 2021):- The role of physical store in an omnichannel
strategy:- The retail landscape is evolving due to digitalization, and understanding consumer behavior in this multichannel
environment is crucial for fashion retailers. Physical stores are facing an existential crisis, and Generation Z, as the digital native
generation, has limited research on their attitudes towards omnichannel retailing and the physical store. This study aims to explore
the value of the physical store in the eyes of Generation Z in an omnichannel strategy within the context of fashion retailing .
Camila Bascur and Cristian Rusu (Published in 2020):-Customer Experience in Retail: A Systematic Literature
Review:- The customer experience (CX) is a crucial concept for businesses seeking a competitive advantage. This systematic
literature review examines the CX in retail, focusing on (1) definitions, (2) dimensions, (3) evaluation methods, and (4) potential
heuristics. The review analyzed 67 articles, revealing that (1) definitions vary, (2) dimensions depend on context, (3) evaluation
methods are incomplete, and (4) no heuristics are evident for CX evaluation in retail .
Dhruv Grewal, Stephanie M. Noble, Anne L. Roggeveen & Jens Nordfalt(Published in 2019):-The future of
store-in Technology:-This paper introduces a conceptual framework for understanding new and futuristic in-store technology
infusions. First, we develop a 2 × 2 typology of different innovative and futuristic technologies focusing on their level of
convenience and social presence for the consumer. Next, we offer a series of propositions based on the idea that convenience and
social presence can trigger vividness by enhancing consumer involvement, imagery, and elaboration, which ultimately leads to
enhanced sales. Finally, the paper then focuses on four moderating areas—consumer traits, product/service dimensions, mental
models and social networks—to understand how they might impact the vividness experienced via the technology.
Manish Jhalani, Vyom Krishna, Yogesh Vijayan(Published in 2020):- Retailers are adapting to changing consumer
behavior by using technology to improve the in-store shopping experience, focusing on customer delight rather than just satisfaction.
Digital disruption has made it necessary for retailers to become tech companies, with more changes expected in the next five years
than in the past fifty.
Asia R. Locket (Published in 2018): - Small retail businesses are using online marketing strategies to connect with consumers
and the community, increase sales, and remain competitive. Strategies include social media platforms and strategies, online
marketing strategies and challenges, online content strategies, and follow-up strategies.
Yuanyi Chen, Zengwei Zheng, Chen Sinong, Lin Sun:- Mining Customer Preference in Physical Stores From
Interaction Behavior
The paper proposes a novel approach to mine customer preference in physical stores from their interaction behaviors and
demonstrates its utility through a store-type recommendation model. The model considers both learnt customer preference and
temporal influence, and experimental results show its superiority in recommending interesting stores and helping retailers better
understand customer preference.
Darrell Rigby:- The Future of Shopping:- The Threat Threshold for Physical Retailers

As e-commerce sales for U.S. retailers climb, store-based companies face treacherous landscape ahead. In books, the path above
15% digital penetration first brought consolidation; then Borders closed stores, filed for bankruptcy, and liquidated. The largest
store-based retailer, Barnes & Noble, lost money in fiscal 2011 and struggled to raise additional funding. Physical retailers of music,
videos, and consumer electronics face similar challenges. Even apparel and accessories, once considered too experiential to sell
online, could approach tipping points in the next five years.
Anne Moes⁎ and Harry van Vliet:- The online appeal of the physical shop: How a physical store can benefit from
a virtual representation-This study examines the impact of visual materials, including regular photos, 360-degree photos, and
virtual reality photos, on consumers' shopping experience, purchase intention, visiting intention to the physical shop, and online visit
satisfaction for a fashion store.
Tao Chen, Premaratne Samaranayake, XiongYing Cen1Meng Qi, Yi-Chen Lan:-
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The Impact of Online Reviews on Consumers’ Purchasing Decisions: Evidence From an Eye-Tracking Study.
The study used eye-tracking to investigate the impact of online product reviews on consumers' purchasing decisions. The results
showed that consumers' attention to negative comments was significantly greater than that to positive comments, especially for
female consumers. The study also found a significant correlation between consumers' visual browsing behavior and their purchase
intention. Consumers were not able to identify false comments, and the study provided insights into the underlying mechanism of
how online reviews influence shopping behavior, revealing the effect of gender for the first time from the perspective of attentional
bias. Practitioners need to pay attention to negative comments and resolve them promptly by customizing product/service
information, considering consumer characteristics, including gender.
Ahmed Rageh Ismail, Melewar, Lynn,Arch G. Woodside:- Customer experiences with brands:- This paper aims to
provide a theoretical foundation for understanding customer experiences and its impact on brand loyalty through a review of existing
literature. It also presents twelve propositions on the antecedents and consequences of customer experience within a service-centered
marketing context, contributing to further theory development and effective customer-brand relationship management.
Timothy Morey,Theodore “Theo” Forbath, and Allison Schoop:-Customer data: Designing For Transparency
and trust:- This paper aims to provide a theoretical foundation for understanding customer experiences and its impact on brand
loyalty through a review of existing literature. It also presents twelve propositions on the antecedents and consequences of customer
experience within a service-centered marketing context, contributing to further theory development and effective customer-brand
relationship management.
Andre Schwager and Chris Meyer:-Understanding the customer experience :- Customer experience management
(CEM) is a process that involves monitoring past, present, and potential customer experiences through various methods, such as
surveys, interviews, and online forums. This data is collected at touch points and involves every function in the organization, not just
customer-facing groups. A cross-functional CEM system can help companies identify growth opportunities and areas for
intervention.
Sonja Dreyer, Daniel Olivotti, Benedikt Lebek & Michael H. Breitner :-Focusing the customer smart services:-
This article presents a structured literature search identifying 109 relevant publications on smart services, clustered in 13 topics and
across five phases of the lifecycle. The results show diverse knowledge on various topics, with implications for future research on
economic aspects, customer involvement, and machine learning.
Liss Jenneboer, Carolina Herrando, Efthymios Constantinides:- The Impact of Chatbots on Customer Loyalty: A
Systematic Literature Review:- This study examines the impact of chatbots on customer loyalty and provides insights into the
dimensions of system quality, service quality, and information quality that are crucial for a good customer experience. The results
show that human-like chatbots lead to greater satisfaction and trust among customers, which can lead to greater adoption of the
chatbot. The study also discusses the implications of the findings, including the potential for personalization to lead to privacy
concerns among some customers.
Priyanka MeenaPraveen Sahu, Customer Relationship Management Research from 2000 to 2020: An Academic
Literature Review and Classification:- This article provides a structured literature search on smart services, identifying 109
relevant publications and categorizing them into 13 topics and five phases of the lifecycle. The results show diverse knowledge on
various topics, with implications for future research on economic aspects, customer involvement, and machine learning.
Hussein A. Al-HomeryHasbullah AshariAsmala Ahmad:-Customer Relationship Management: A Literature
Review Approach:- This paper provides a comprehensive review of customer relationship management (CRM) literature,
analyzing trends, popular research topics, and tools used in studies. It examines the development of CRM research over 21 years,
discussing critical areas, types of studies, sources of papers, and under-researched areas. The study also presents classifications
within primary studies and review papers, focusing on data collection tools, sampling techniques, and keywords used in literature.
Alreany C. TabuenaArellano UniversityShiella Mae L. NecioKyle Kirsten MacaspacMaria Paula E.
Bernardo:- Digital Marketing Strategies and Its Impact on Online Business Sellers During the COVID-19 Crisis:- The literature
review examines the impact of COVID-19 on digital marketing strategies, highlighting the shift towards digitalization and the
increased use of social media as a marketing platform. The study also discusses the importance of understanding consumer
preferences and lifestyles to effectively use digital marketing channels.
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Conclusion
The integration of AI and robots in retail has revolutionized the way businesses interact with customers and how consumers shop.
Robots equipped with natural language processing capabilities can interact with customers in physical stores, providing
information, guiding them to specific products, and even processing payments. This integration of AI and robots elevates customer
service to new levels of efficiency and convenience. In the future, physical stores are expected to incorporate more AI and robotics
to enhance the shopping experience, such as personalized recommendations, virtual shopping assistants, and predictive inventory
management. Retailers should consider deploying robots in a balanced manner, using them to augment human capabilities rather
than replace them, and developing realistic expectations about the evolutionary nature of AI technology AI-powered technologies
can analyze vast amounts of customer data to personalize product recommendations, predict buying behavior, and even tailor
marketing campaigns Virtual shopping assistants powered by natural language processing can interact with customers through
chatbots, providing real-time assistance and product recommendations. Robots can handle routine tasks like handling returns and
complaints, clearing products nearing expiration, and dealing with low-stock situations, reducing human intervention and freeing
up employees to focus on more customer-centric tasks AI-powered self-checkout counters can help combat inefficiencies,
including tackling long queues at checkout counters AI-based forecasting and planning tools can help retailers proactively address
out-of-stock situations, using accurate and real-time insights into consumer preferences, market trends, competition, weather
impact, and more to boost the supply chain from manufacturing to logistics and delivery schemas Personalization is a skill that
every brand tries to master. With better information on consumers, retailers can craft messages and offers that are unique to every
customer. But customer profiles need to be based on more than purchase history and interactions. AI takes care of blind spots by
mapping information from internal marketing systems, browsing patterns, and social media to develop holistic profiles that
retailers can use to tailor shopping experiences to individual preferences. In conclusion, the integration of AI and robots in retail is
revolutionizing the shopping experience by providing personalized recommendations, virtual shopping assistants, and efficient
inventory management. As technology continues to advance, physical stores are expected to incorporate more AI and robotics to
enhance the shopping experience further. However, it is essential to maintain a balance between technology and human interaction
to provide a truly exceptional customer experience.
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third places from
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virtual. conference
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Annual Conference,
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