Transcript
Presenter: H.P.D Jayathilaka 2007ICT031 22.03.2011
y Source y y y y y y
: Journal of Retailing, Volume 78, Number 1, Spring 2002 , pp. 41-50(10) Press : Pergamon Press Publisher : Elsevier Language : English Document Type : Research article Affiliations : Drexel University, 19104, Philadelphia, PA, USA Publication date: 2002-03-01
Srini S. Srinivasan Associate Professor, Marketing Drexel University, Philadelphia, PA 19104, USA
Kishore Ponnavolu Partner McKinsey & Company
Rolph Anderson Marketing - Professor Drexel University, Philadelphia, PA 19104, USA
y Introduction y Objectives of the Research y Concept of customer loyalty y Eight factors potentially influencing e-loyalty y Consequences of e-loyalty y Methodology and results y Conclusion
U.S. Census Bureau s Monthly Retail Trade Survey 2010
y E-retailing y E-commerce y Advantages
y compare and contrast product & services y minimal expenditure of personal time or effort
y E-loyalty
y Understanding of the antecedents of e-loyalty y Identify managerially actionable factors that impact in
e-loyalty
y Investigate the nature of their impact
y Focused on repeat purchase behavior y Behavioral or Attitudinal dimensions
y True Loyalty y Spurious Loyalty
y Preferential, Attitudinal and Behavioral response
toward one or more brands in a product category over a period of time.
y As a customer s favorable attitude toward the e-retailer
that results in repeat buying behavior
y Conduct Interviews
y Individuals y Online Customers y Executives in e-commerce y Professional e-commerce web designers
- 42 - 15 - 15 - 12
y Online shopping behavior y Between 90 min to two hours
1. 2. 3. 4. 5. 6. 7. 8.
Customization Contact interactivity Cultivation Care Community Choice Convenience Character
y Ability of an e-retailer to tailor products, services, and
the transactional environment to individual customers
y Increases the probability of their wish to buy y Perception of increased choice by enabling a quick
focus on customer wants
y Lead to a better real match between customer and
product
y Dynamic nature of engagement, between an e-retailer and
customers
y Problems
y hard to navigate y insufficient information y response time for inquiries
y Solutions
y interactive search process y Better navigational process y Increase information
y The extent to e-retailer provides relevant information
and incentives to customers
y Frequency of desired information and cross-selling
offers y E.g.:
y Amazon.com - related to their past purchases y Paul Frederick
email notifications about offers
y Attention that an e-retailer pays to all the pre and post-
purchase customer interface activities
y immediate transactions y long-term customer relationships
Solutions
y No breakdown in service - Minimize disruptions y Informed about the availability of products y Status of orders
y An online social entity comprised of existing and
potential customers y Exchange of opinions and information regarding offered products and services
y Virtual communities of customers
y y y y y
comment links chat rooms buying circles Individual customers on group Shared interest
y Offer a wider range of product categories and a greater
variety of products y Alliances with other virtual suppliers Benefits
y Reduce Opportunity cost y Reduce Time y One-stop shopping
y Refers to the extent to which a customer feels that the
web site is simple, intuitive, and user friendly Features of convenience website
y short response time y provide fast completion of a transaction y Minimizes customer effort
y overall image or personality that the e-retailer projects
to consumers through the use of inputs
y text, style, graphics, colors, logos, and slogans or themes
on the website
jewelry retailer - high quality graphics
Behavioral consequences
non-loyal
Loyal
y Direct implications of loyalty
y positive word-of-mouth y willingness to pay more y negatively related to their search for alternatives
y Website hosting survey y Random sample of 5,000 customers y An e-mail invitation y Respondents would be automatically entered in a
drawing for a prize of $500 y produced 1,211 usable responses 24%
01
Generate the initial pool of scale items
Conducted in-depth discussions - 30 Individuals
02
online shoppers, site administrators, information technology professionals
03
Six academic researchers then evaluated pretested with 25 random online shoppers
04
y Avoid using the same set of responses to refine the
scale items and evaluate the hypotheses
y an exploratory data set (n - 180) y a confirmatory data set (n - 180) y model estimation data set (n - 851)
y An exploratory factor analysis - determine whether
the scale items loaded as expected y Calculated Cronbach s alphas for scale items y LISREL measurement model
y unrestricted model y restricted model
LY E-loyalty; C1 Customization; C2 Contact interactivity; C3 Cultivation; C4 Care; C5 Community; C6 Choice; C7 Convenience; C8 Character Consequence of e-loyalty - seemingly unrelated regressions
SRi WMi WPi
-Search for alternatives by individual i; -Word-of-mouth of individual i; - Willingness to pay of individual i;
y Identified 8 factors that potentially affect e-loyalty y Highest elasticity with respect to Character and
Care y Positive impact on positive word-of-mouth and willingness to pay more
y Managerial perspective
y Establish early warning systems y Use the scale items to benchmark e-retailing activities y Competitors to identify their comparative strengths and
weakness
y Research perspective
y provides an early conceptualization
of the relevant antecedents of e-loyalty y provide a basis for the further study
y Does not take individual-level variables
Eg:
y customer inertia y reposed trust y Satisfaction
y e-retailing depends to a large
extent on the characteristics of the products and services being marketed
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