Customer Experience Management – Session 7 (AI vs. Human Service & Sales Funnel Efficiency)

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25 vocabulary flashcards capturing key concepts from the lecture on consumer preference for AI vs. human providers, anthropomorphism effects, zoonotic AI research, and sales-funnel efficiency with chatbots.

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25 Terms

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Customer Experience Management

The strategic process of designing and reacting to customer interactions to meet or exceed expectations and increase satisfaction, loyalty, and advocacy.

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Anthropomorphism

The attribution of human traits, emotions, intentions, or appearances to non-human entities such as AI agents or robots.

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Uncanny Valley Hypothesis

A theory proposing a non-linear relationship between a robot’s human likeness and its likability, where entities that appear ‘almost human’ evoke feelings of eeriness or creepiness.

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Zoonotic AI

AI-powered services embodied as animals rather than robots, e.g., owl chatbots or dog-like virtual assistants.

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Prototypicality

The extent to which an object or representation matches a mental prototype; high prototypicality in AI design eases consumer acceptance.

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Cognitive Load Theory

A psychological theory stating that mental effort is limited; increased cognitive load (e.g., linking an animal avatar to a task) can reduce adoption of AI services.

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Match-up Hypothesis

The idea that marketing effectiveness improves when the characteristics of a spokesperson or design (e.g., animal avatar) are congruent with the task or product.

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AI Aversion

Consumer reluctance to adopt AI-provided services, often due to perceived inability of AI to address unique customer characteristics.

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Symbolic Consumption

Purchasing decisions made for the symbolic meaning of products (e.g., tattoos, art), where consumers often prefer human creators over AI.

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Morally Relevant Trade-offs

Decisions involving moral implications where consumers distrust AI because it is seen as programmed to maximize outcomes regardless of ethics.

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Failure Tolerance (AI)

The finding that consumers are generally more forgiving toward service failures by AI/chatbots than by human agents.

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Lead

A visitor who has self-identified interest in a company’s offering, typically via forms or chat (4% conversion in the HubSpot example).

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Qualified Lead

A lead assessed to have genuine purchase potential, rated 7-10 on a 10-point scale (40% of leads in the case study).

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Opportunity (Sales)

A qualified lead that progresses to a meeting with a sales representative (12.5% of qualified leads in the example).

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Customer (Converted)

A prospect who completes a purchase; 20% of opportunities convert in the HubSpot funnel.

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Sales Funnel (HubSpot)

The staged process from visitors to customers: Visitors → Leads → Qualified Leads → Opportunities → Customers.

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Conversion Rate

The percentage of individuals that move from one funnel stage to the next, e.g., leads to qualified leads.

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Cost of Acquisition (CoA)

Total expense incurred to obtain one paying customer, including lead cost, salespeople salaries, and support costs.

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Chatbot

An automated conversational agent that can handle customer queries, qualify leads, and potentially reduce acquisition costs.

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One-time Fixed Cost (Chatbot)

An upfront investment for installing a chatbot; unlike human reps, it incurs no ongoing per-customer labor cost.

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Efficiency (Sales Funnel)

The ratio of resources spent to customers gained; improved when conversion rates rise or costs drop (e.g., via chatbots).

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Hedonic Task

An activity pursued for pleasure or enjoyment; zoonotic AI can outperform robotic AI when animal traits match hedonic tasks.

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Robotic Embodiment

An AI representation using a machine-like or humanoid robot form, generally easier for consumers to link to utilitarian tasks.

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Cognitive Difficulty (Embodiment Linking)

Mental effort required to connect an AI’s form (e.g., animal avatar) with its function; higher difficulty lowers adoption.

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Pigs & Chicken Framework

A model classifying business offerings by revenue contribution (small vs. large) and transaction frequency (one-time vs. recurring).