Many customers may prefer humans over robots in service encounters. This hesitation is categorized as what?

The preference of customers for human interaction over robotic or automated responses in service encounters is best described as algorithm aversion. This term specifically refers to the reluctance to trust or utilize algorithm-driven solutions, which often include robotic assistants, in situations where human oversight is generally valued. Customers may feel that human agents offer a level of empathy, understanding, and flexibility that automated systems lack.

This aversion can stem from experiences where algorithms fail to meet expectations or where interactions with robots feel impersonal. In industries where personal customer service is a significant value proposition, this hesitance can significantly impact customer satisfaction and loyalty.

Other terms presented might relate to various facets of technology interactions but do not encapsulate the specific discomfort with relying on algorithms for service. Automated bias refers more to preconceived notions about technology, while technology resistance implies a broader rejection of technology itself, and service skepticism focuses on questioning the quality of service rather than the medium delivering it. Thus, algorithm aversion most accurately captures the nuances of consumer preferences in this context.