The North London outfit host Olympiakos in Group B this week, and the Spanish midfielder insists that a win would be the perfect response for his side.
"We have played probably against some of the best teams in the league and haven't been battered or overplayed at all," said Arteta.
"I think we've been better than Chelsea in the 90 minutes so that's very positive. But obviously after a defeat, the first one of the season at home, it hurts.
"We will bounce back because we know how important it is now to get the three points in the Champions League."
Following the defeat, Arsenal now sit seventh in the Premier League table.