Abstract
Background/Context - Evolving global circumstances have catalysed both the creation and integration of emerging information technologies in the retail sector. Currently, there is a progressive increase in demand for innovative and omnichannel experiences among customers. Therefore, brands in the South African retail industry are incorporating technologies such as e-commerce platforms, chatbots and virtual reality experiences to remain relevant in a highly competitive landscape. Moreover, new competitors such as Amazon, as well as Walmart's entrance into the space, are disrupting the South African retail landscape. Increasingly, South African retail brands are being required to develop a differentiating factor to retain their customers and acquire new ones. In the Global North, various industries have been exploring the use of digital humans to enhance their business operations, including those involved in the customer experience process.
Objective / Purpose – Against this backdrop, this study aims to explore the perceived potential benefits and challenges associated with utilising digital humans for online customer experiences in retail, among Baby Boomers, Generation X, Y, and Z in South Africa.
Methods - Utilising a qualitative approach, data were collected using a non-probability purposive sample of twelve virtual semi-structured interviews and analysed using thematic analysis.
Results / Findings – Four themes emerged from the analysis, namely, (1) functionality and usability, (2) anthropomorphic appeal and design satisfaction, (3) human connection and dependency concerns and (4) risk and trust implications. A key finding indicates that generational differences in perceived challenges were evident. South African Gen Y and Z emphasised the need for enhanced functionality in DHs. At the same time, Boomers and Gen X expressed concerns about overreliance on AI, ethical risks, and a lack of trust.
Conclusion / Implications – The findings provide brands in South Africa's retail sector with an opportunity to make informed decisions about deploying DHs, based on the factors that influence customer perceptions. The study makes several contextually relevant recommendations to assist retailers in South Africa to ethically leverage DHs, and areas for further research.