Virtual agents in retail web sites: Benefits of simulated social interaction for older users

This study investigates the benefits of simulated social interaction (social presence) through virtual agents for older users' experience in retail Web sites, particularly with respect to age-related barriers to the adoption of online retailing. In Study 1, through four focus group interviews, we identified six social-psychological barriers to the adoption of online shopping among older users (mean age of 73 years). These included barriers relating to perceived risks, trust, social support, familiarity, experience, and search. In Study 2, a laboratory experiment with older users (mean age of 69 years) demonstrated that embedding a virtual agent that serves search and navigational/procedural support functions in the online store leads to increased perceived social support, trust, and patronage intention for the online store. Mediational analyses further revealed that the effect of virtual agents: (1) on trust is mediated by perceived social support; and (2) on patronage intentions is mediated in part by trust and perceived risks. The study provides important implications on the design of virtual agents for older users of e-commerce applications, and on building online trust and e-service patronage through virtual agents. (C) 2012 Elsevier Ltd. All rights reserved.