Online Customer Loyalty
Online Customer Loyalty
Online Customer Loyalty
Abstract: There has been a spurt in the online shopping in India in the recent years. More and more
customers have started shopping online as they are developing trust on online transactions. This growth has
made online business seemingly lucrative and hence attracts new and intense competitions. Therefore,
getting customers has become a great challenge and even more difficult task is retaining them and getting
repurchases out of them. Repurchases or repeating customers are very essential for the growth and survival
of business in this competitive scenario. Therefore, the purpose of this study is to examine the influence of
factors like e-trust, e-satisfaction on e-loyalty and e-repurchase intentions in online shopping. This study
involves establishing theoretical model, hypothesis formulation and testing using regression and factor
analysis. The finding of this study shows that there is significant effect of the factors on loyalty and
repurchase intentions.
Keywords: Online Shopping, E-repurchase Intentions, E-loyalty, E-trust and E-satisfaction
Introduction
There has been a tremendous growth in internet usage among Indians during the past few years.
The Internet and Mobile Association of India (IAMAI), has reported an estimation of 430 million
internet users in India in December 2016 which was expected to reach 450 million by June 2017.
According to ‘ASSOCHAM-Resurgent India Study’, January 2017, number of consumers
purchasing online touched about 69 million in 2016 and is expected to cross 100 million by the
end of 2017. This fast growing market can be accounted to the riseof digital publics, better
infrastructure in terms of logistics, broadband like 3G-4G, internet-ready devices like smart
phones, smart apps and additional payment modes like COD(cash on delivery) accelerating the
demand in e-commerce. This study also reported a phenomenal increase of 48% in e-Retail from $
3.98 billion in 2013 to $ 5.30 billion in 2014 and is expected to reach $17.52 billion by 2018.
The study of IAMAI conducted in December 2016, estimated the e-commerce sector at Rs.
211,005 crore ($ 31.98 billion) by December 2016. Out of this, 61% of the e-e-Commerce market
was accounted by online travel.
This unprecedented growth in online shopping has been possible as increasing number of
consumers have become techno-savvy and more informed about digital media and internet usage
and acceptance. There are various advantage of shopping online which encourage consumers to
engage in online transactions. Some advantages worth mentioning are: global reach whereby a
consumer can search and make a purchase from wide range of products at varied prices from
anywhere, at any point of time and from any location, ease of use, good customer support and
Examining Factors Influencing Customer Loyalty and Repurchase Intentions in Online Shopping 77
services like prompt responses to queries online, faster delivery options, cancel and return options,
different modes of payment like cards, wallets, COD, EMI etc.
Despite all these advantages, there are still downsides to online transactions which can
discourage consumers to go online. There are demeriting factors like legitimacy websites, product
quality assurance, information veracity, security and privacy, trustworthiness and post-purchase
service. Trust is considered as one of the most critical factors in online shopping because of the
lack of direct contact and face-to-face interaction with the seller and the product certainty as
shown in the website pictures and descriptions. Another facet is that consumers have to share their
personal information and payment details to complete the transaction. This poses online
transaction risky, leading to lack of trust which at times causes consumers to avoid the online
shopping.
Besides trust, there are various other factors that encourage consumers to make purchase and
repurchases online. Some of these factors which have been examined by several researchers in e-
Commerce consisting of various constructs of loyalty such as satisfaction, commitment and also
trust. Since very limited empirical research work was found to have carried out in India on online
e-loyalty and its antecedents such as e-satisfaction, e-trust and e-commitment, there arises a need
to carry out more studies in this area. Therefore, the purpose and objectives of this study is set to
examine the key antecedents such as e-satisfaction, e-trust, e-loyalty and e-repurchase intentions
that influence online shopping in India.
Literature Review
Customer Loyalty
Customer loyalty is a very important factor for any organization, to grow and sustain in long term.
Acquisition of new customer helps in the short run business and this can only be sustained for long
term when the acquired customers are maintained and repetitive purchases generated. Hence,
many companies have embraced customer loyalty in their objectives and core strategy of their
marketing plan. Studies has confirmed that finding and converting new customers is far more
expensive than retaining existing customers. Moreover, loyal customers spread positive word of
mouth more often about their past experience than non-loyal customers, thus creating potential
word-of-mouth advertising at no extra cost to the service provider (S. Shoemaker and R.C. Lewis,
1999). Since loyal customers have close relationship with the service provider, it requires less
effort to secure trust and commitment from customers. Loyal customers exhibit easier accessibility
than first-timers. This allows companies to formulate and implement more successful marketing
strategies and plans, thus solicit fruitful responses to promotions. (L.J. Reid and S.D. Reid, 1993).
Customer loyalty is said to be there when customers begins to develop a positive attitude
towards goods and services of a specified company or companies and make repeat purchases (S.
Ghane, M. Fatian, and M.R. Gholamian, 2011). According to Oliver (1999), there are four phases
of brand-loyalty in the cognition–affect–conation pattern. In The first phase of cognitive loyalty,
Volume XI, Issue II, December 2017 IMR (Indira Management Review)
78 Singh
Customers tend to be loyal to a brand based on the information provided on that brand. Second
phase is affective loyalty, which refers topositive attitudes or liking of customers toward a brand.
The third step is conative loyalty or behavioral intention, where customers exhibits anintensely
apprehended commitment or ‘good intention’to buy a brand. This yearningapprehension may
result to unrealized action. The last phase is action loyalty, where customers finally convert
intentions into actions. While action loyalty is the most ideal among the stages, there are
operational issue in empirical observationand measurement. Therefore, conative loyalty or
behavioural-intention are usually deployed by researchers.
R.E. Anderson and S.S. Srinivasan (2003) defined e-loyalty in online shopping as a
customer’s favourable attitude and commitment towards the online retailer which leads torepeat
purchase behaviour. According to another author, e-loyalty indicates customer favourable attitude
towards an e-Commerce website that influenced the customer to repeat buying behaviour (Y. Liu,
2007). Loyal customers are the ones who always have intention to purchase from preferred
website and not switch to another website (C. Flavian and M. Guinaliu, and R. Gurrea, 2006). J.
Tam (2012) affirmed that loyal customers always spread favourable word of mouth/messages
about the companies from where they made satisfied purchases and recommend new customers to
purchase from them. On the other hand, loyalty would also mean the ability of customer(s)
topersuade other consumer(s) into switching product or services from competing e-service
provider(s) to other provider(s) of their recommendation.
This study will address loyalty aspect that can be estimated through behavioural and
attitudinal loyalty. Behavioural loyalty can be explained as customer inclination to enter into
anenduring relationship and to make repurchases. Attitudinal loyalty can be expressed as the level
of the customer’s attitudinal advocacy and psychological attachments to the e-service provider (A.
Chaudhuri, M.B. Holbrook, 2001). M.D. Uncles, G.R. Dowling, and K.Hammond (2003) have
proposed composite approach to loyalty which is on the same line to behavioural and attitudinal
loyalty. It states that customer loyalty is integration of behavioral measures (exclusive purchase,
hardcore loyalty, repeat purchase probability, share of category requirements, etc.) and attitude
(brand preference, liking, commitment, intention-to-buy).
Customer Satisfaction
Another key factor of retaining customer is customer satisfaction. Phillip Kotler (2010) has
defined customer satisfaction as a consumer’s feeling of pleasure or disappointment resulting from
comparing a product’s perceived performance (or outcome) in relation to his/her expectation.
Anderson and Srinivasan (2003) defined satisfaction as the contentedness of the customers
with their prior purchasing experience towards a given service firm. e-Satisfaction in online
shopping is customer judgment on the level of satisfaction derived from their e-service providers
or e-retailers on internet transactions as compared to their buying experience from traditional
offline retailers (F.B. Tan, L. Tung and Y. Xu, 2009). Customer satisfaction is a relative element
IMR (Indira Management Review) Volume XI, Issue II, December 2017
Examining Factors Influencing Customer Loyalty and Repurchase Intentions in Online Shopping 79
as the level of satisfaction that the customers getout of an online transaction depends upon the pre-
purchase expectations and perception of the customer with regard to the product and services of an
e-portal. Thus, e-retailers need to understand customers’ perception of their services and work on
it accordingly.
Extensive researches by numerous researchers confirmed that customer satisfaction is one of the
most important antecedents for customer loyalty. This same principle is also applicable to Internet
e-commerce (R. Frederick, M.G. Jr. Robert, and H. Christopher, 2000). Usually, satisfied
customers are seen to have more frequent usage of products or services from the same provider,
and are found to have stronger repurchase intentions. On the same ground, customers satisfied
with ane-service provider, tend to make more online purchasing from that service provider (L.D.
Pleessis, 2010). Moreover, Rust and Zahorik (1993) expressed that superior customer satisfaction
leads to greater repurchase intention. Higher degree of consumer loyalty will diminish the
perceived need to switch the e-service organization, consequently intensifying client repurchase
and at last increase organization’s profitability (Anderson and Srinivasan, 2003). Further, Henig
and Klee (1997) stated that satisfaction has a positive effect on commitment since high degree of
satisfaction provides the customer with recurrent positive reinforcement, which, in turn, produces
commitment and loyalty.
Trust
Trust is yet an0ther critical success fact0r required f0r building successful service relati0nships
because bef0re d0ing purchase transacti0ns with the c0mpany, c0nsumers sh0uld trust the
c0mpany (A. Bryant and B.C0lledge, 2002). Marketing literature affirms a p0sitive relati0nship
between trust and satisfacti0n (M.A. Razzaque and T.G. B00n, 2003) since the existence0f trust
elevates levels 0f transacti0nal 0utc0me and causes greater satisfacti0n (C.Terawatanav0ng, G.J.
Whitwell, 2007).
Especially in case 0f 0nline transacti0ns, it has been 0bserved that the lack 0f 0nline
c0nsumer trust was the main barrier 0f c0nsumer inv0lvement in e-c0mmerce (N. Rexha, R.P.
J0hn, and A.S. Shang, 2003) and thus turn 0ut t0 be 0ne 0f the maj0r hindrances t0 the
acceptance0f internet transacti0n (D. Ribbink, A.C.R.V. Riel, V. Liljander, and S. Streukens,
2005).
e-trust can be expressed as the degree 0f c0nfidence cust0mers have in 0nline exchanges, 0r in
the 0nline e-c0mmerce sites(Y. Bart, V. Shankar, F. Sultan, and G.L. Urban, 2005). Online trust
c0mprises of percepti0n 0f c0nsumers0n h0w the website w0uld deliver as per expectati0n, h0w
credible the website’s inf0rmati0n is, and the degree0f c0nfidence 0n the website (S.G. Krauter
and Kaluschab, 2003).Trust is the m0st imp0rtant fact0r in f0rmingl0yalty in 0nline scenari0 as
internet transacti0ns are perceived t0 inv0lve high level 0f risk as there is absence 0f cust0mers’
direct c0ntact with the c0mpany/seller and further cust0mers have t0 hand 0ver sensitive
pers0nal inf0rmati0n, such as credit card numbers, in 0rder t0 c0mplete the transacti0n (D. Kim
and I. Ben basat, 2003).
Volume XI, Issue II, December 2017 IMR (Indira Management Review)
80 Singh
Literature adv0catesthat trust c0ntributes t0c0mmitment and l0yalty, both. There are evidences
0f studies s0liciting a p0sitive relati0nship am0ng0nline e-trust, e-l0yalty, and intenti0ns t0
purchase 0r repurchase (J. Kim, D. M0rris, and J. Swait, 2008).
Repurchase Intentions
C0peland (1923) defined repurchaseintenti0n as the intenti0n t0 repeatedly purchase a particular
pr0duct. Khalifa and Liu (2007) indicated that ‘repurchase is a f0rm 0f v0liti0nal behavi0ur, as
cust0mers generally enj0y m0re than 0ne 0pti0n 0f which st0re t0 buy again’.Fr0m0nline
retailing perspective, repurchase intenti0n has been explained as the repeat use0f the 0nline
channel t0 buy fr0m a particular retailer (Khalifa & Liu, 2007). Further, Bhattacherjee (2001)
discussed 0nline repurchasing behavi0ur in his research. He devel0ped a m0del based0n
Expectati0n C0nfirmati0n The0ry (ECT) which hyp0thesized and 0bserved that satisfacti0n and
l0yalty were the key fact0rs affecting 0nline repurchasing. Acc0rding t0 the extant literature,
cust0mer e-trust has direct and indirect impacts 0n e-repurchase intenti0n. Numer0us auth0rs
pr0p0sed that e-trust precedes 0nline purchase intenti0n (Ling et al., 2010; Kim et al., 2009).
Gefen (2000) f0und cust0mer e-trust t0 have a p0sitive impact 0n 0nline purchase decisi0n. Lin
and Lekhawipat (2014) revealed that cust0mers wh0 were satisfied, have higher expectancyt0
repurchase in the future than unsatisfiedcust0mers. Likewise, Ha et al. (2010) revealed a p0sitive
effect 0f e-satisfacti0n 0n e-repurchase intenti0nand the mediati0n effect 0f trust that enhance the
effect 0f e-satisfacti0n 0n e-repurchase intenti0n.
Hypothesis
Based 0n the literature review, the hyp0thesis 0f this study are:
H1: e-satisfacti0n has direct influences 0n e-l0yalty
H2: e-satisfacti0n have direct influences 0n e-trust
H3: e-satisfacti0n have direct influences 0n e-repurchase intenti0ns
H4: e-trust has direct influences 0n e-l0yalty
H5: e-trust have direct influences 0n e-repurchase intenti0ns
H6: e-l0yaltyhave direct influences 0n e-repurchase intenti0ns
Research Method
Research Objective
The 0bjective 0f this study is t0 examine 0f cust0mer e-satisfacti0n ande-trust as key
fact0rsimpacting cust0mer e-l0yalty and e-repurchase intenti0ns.
IMR (Indira Management Review) Volume XI, Issue II, December 2017
Examining Factors Influencing Customer Loyalty and Repurchase Intentions in Online Shopping 81
Sample
An IAMAI & KANTAR IMRB Rep0rt, 2016 states that 69% 0f daily internet users in urban India
was am0ng the age gr0up 0f 16–35 years, 23% 0f the daily internet users were c0llege students
in urban India. Since c0llege students represents a huge segment in the p0pulati0n, theyare the
target resp0ndents f0r the present research. The samples were selected fr0m university students in
Pune, which c0nsists 0f 300 students. Resp0ndents were selected using rand0m c0nvenience
sampling.
Instrument
The items f0r measuring the c0nstructs, i.e., cust0mer– e-satisfacti0n, e-trust, e-l0yalty and e-
repurchase intenti0ns, were adapted fr0m validated measures 0f previ0us studies. The
resp0ndents were asked t0 indicate their resp0nses 0n Likert scale 0f 1 t0 5ranging fr0m
str0ngly agree 0r str0ngly disagree, based 0n their 0nline transacti0nal experiences. The
questi0nnaire c0nsists0f tw0 secti0ns: The first secti0n is dem0graphic questi0ns such as:
gender, age, educati0n, etc. The sec0nd secti0n c0nsisted 0f 17 items intendedt0 measure
c0nstructs f0r satisfacti0n, trust, l0yalty and repurchase intenti0ns, as menti0ned in the literature.
Each c0nstruct were rated 0n a 5-p0int Likert scale, ranging fr0m 1 (str0ngly disagree) t0 5
(str0ngly agree). Items were rand0mly 0rdered. Satisfacti0n is measured empl0yingindicat0rs
devel0ped by Fullert0n (2005). Trust was measured using empl0ying indicat0rs by Gefen etal.,
(2003). Indicat0rs devel0pedby Zeithaml etal. (1992)were used t0measure l0yalty and repurchase
intenti0ns.
Data Collection
Datawas c0llected fr0m c0lleges ass0ciated with Pune University, l0cated in Pune city.
Questi0nnaire was distributed t0 500 students (250 males and 250 females) wh0 purchases
frequentlyfr0m 0nline st0res thr0ugh e-mails inviting them t0 c0mplete an 0nline survey. 300
resp0ndents filling 0ut thequesti0nnaire am0unting t0 resp0nse rate 0f 60%. 44 questi0nnaire
were f0und inc0mplete, 256 were usable f0r the study.
Results
Respondent Profile
Gender
Table 1: Gender
Gender Frequency %
Male 171 67
Female 85 33
T0tal 256 100
Volume XI, Issue II, December 2017 IMR (Indira Management Review)
82 Singh
The percentage 0f male and female rati00ut 0f the 256 sample 0f University students
resp0ndents are 67 percent male and 33 percent female respectively, which sh0ws that males
d0minancy 0f 0nline cust0mers.
Age
Table 2: Age
Age % Frequency p.a.
1–2 3–5 >6
18–21 41 45 36 19
22–-24 55 7 30 63
>24 4 11 44 45
T0tal 100
Based 0n the age 0f resp0ndents, 55% 0f the resp0ndents were between the age gr0up 0f 22 t0
24 years 0ld 0ut 0f which 63%purchased in the range 0f m0re than 5 times, 30%purchased3 t0 5
times, and 7%purchased 1 t0 2 times in a year.
IMR (Indira Management Review) Volume XI, Issue II, December 2017
Examining Factors Influencing Customer Loyalty and Repurchase Intentions in Online Shopping 83
Reliability
Table 5: Reliability of Constructs
Descripti0n Cr0nbach’s Alpha Value
L0yalty 0.872
Satisfacti0n 0.812
Trust 0.703
Repurchase Intenti0ns 0.785
Cr0nbach’s alpha, generally, is the m0st accepted f0rmula f0r estimating the reliability 0f
measurement scale with multi-scale item (U. Sekaran and R. B0ugie, 2010). F0r realizing
reliability0f the c0nstruct, Cr0nbach’s alpha and c0mp0site reliability c0eficients sh0uld be higher
than the rec0mmended value 0f 0.7. The Cr0nbach’s alpha value 0f the c0nstructsas givenin the
table bel0w are: L0yalty = 0.872; Satisfacti0n =0.812; Trust = 0.703 and Repurchase Intenti0ns =
0.785. Theref0re, all c0nstructs are valid.
Fig. 1: The C0rrelati0n 0f Cust0mer Satisfacti0n, Trust, Cust0mer L0yalty and Repurchase Intenti0ns
Volume XI, Issue II, December 2017 IMR (Indira Management Review)
84 Singh
Figure 1 explains results 0f the study. The study exhibited that cust0mer satisfacti0n has a
p0sitive and direct influence 0n cust0mer l0yalty. And the impact was the str0ngest (β = 0.631, ρ
< 0.05). This finding reinf0rces the findings 0f previ0us researches that emphasized that the
higher level 0f cust0mer satisfacti0n will lead t0 greater cust0mer l0yalty (J. Flint, C. Bl0cker,
and P. B0utin, 2011).
The Fig. indicates that satisfacti0n has a p0sitive and direct relati0nship 0n trust (β = 0.524,
p <0.05) which seems t0match up t0 Syah Alam (2010) and Lee et al.(K.Y. Lee, H.L. Huang, and
Y.C. Hsu, 2007)pr0p0siti0n that cust0mer’s satisfacti0n with the 0nline services str0ngly
influences their trust in the website. Having satisfact0ry and p0sitive experiences with the current
0nline services make the cust0mer feel that they have made a c0rrect decisi0n when ch00sing
their e-retailer whichenc0urages the cust0mersinc0ntinu0usly ch00singthe same website, f0r
successive purchases.
The relati0nship between cust0mer satisfacti0n and repurchase intenti0ns is supp0rted (β =
0.384, p <0.05). When cust0mer gets satisfied, they felt t0 have made a c0rrect decisi0n f0r
ch00sing their service pr0vider, and they will be 0bliged t0 purchase fr0m the service pr0vider
again.
The study als0 establishes the influence 0f trust 0n l0yalty (β = 0.167, ρ < 0.05); there f0re,
the result supp0rts the hyp0thesis. This research finding reinf0rced the earlier findings 0f G0mez
(2006) wh0 pr0p0sed that cust0mer trust affectscust0mer l0yalty t0wards an 0nline retailer. It
can be drawn that satisfied cust0mer will bec0me a trusting cust0mer and trusting cust0mers will
bec0me l0yal cust0mers (Valenzuela, 2006).
The effect 0f trust 0n repurchase intenti0ns is als0 supp0rted (β = 0.402, p <0.05) i.e.,
cust0mer’s trust in the 0nline service and transacti0ns 0f an 0nline p0rtal enc0urages the
cust0mer t0 decrease the level 0f risk in underg0ing further 0nline transacti0ns 0n that 0nline
service pr0vider in future leading t0 repurchase. The regressi0n result als0 sh0ws that there is
directly and p0sitively 0f cust0mer l0yalty t0 repurchase intenti0ns (β = 0.197, p<0.05).
The predictive and explanat0ry p0wer 0f the research m0del is assessed by the percentage 0f
explained t0tal variance (R2).R2 = 0.434 when e-satisfacti0n was used t0 predict impact 0n e-
trust, this explained 43.4% 0f variati0n in cust0mer e-trust by cust0mer satisfacti0n. M0re0ver e-
satisfacti0n and e-trust explained that 57.8% 0f variance in e-l0yalty. Further, the R2 f0r
repurchase intenti0ns was 0.681 which explains 68.1% 0f the t0tal variance being c0ntributed by
e-satisfacti0n, e-trust and e-l0yalty.
Table 6: Hypotheses of the Study
IMR (Indira Management Review) Volume XI, Issue II, December 2017
Examining Factors Influencing Customer Loyalty and Repurchase Intentions in Online Shopping 85
Discussion
This research was aimed t0examine the fact0rs influencing cust0mer l0yalty in 0nline sh0pping.
The 0bjectives 0f this study was t0investigate the maj0r antecedents that influence 0nline
sh0pping satisfacti0n, trust, l0yalty and repurchase intenti0ns in India. The main findings 0f the
study is that the pr0p0sed m0del and all the hyp0theses are accepted. First c0nsequence0f the
results is that e-satisfacti0n has p0sitively and str0ngest ass0ciated with e-l0yalty. Thus, it ises
tablished that cust0mer satisfacti0n is 0ne 0f the m0st crucial antecedents 0f e- l0yalty (Y. Liu,
2007).
The findings als0 established str0ng and p0sitive relati0nship between satisfacti0n and trust.
This supp0rts the previ0us study results 0f Delgad0 et al. (2001). Satisfacti0n was als0 f0und t0
have a significant effect 0n repurchase intenti0ns th0ugh n0t s0 str0ngly. The study 0utc0me
c0nfirms p0sitive and significant relati0nship between trust and cust0mer l0yalty.
Based 0n the findings, e-satisfacti0n, e-trust and e-l0yaltyhave been f0und t0 be
thekeyfact0rs that pr0m0te repurchase intenti0ns in 0nline sh0pping. Online sh0pping
c0mpanies sh0uld pay m0re attenti0n t0wards the tw0 key primary fact0rs 0f cust0mer
satisfacti0n and trust as enhancing the level 0f these fact0rs will led t0 higher cust0mer l0yalty.
And higher e-l0yalty in turn will lead t0 higher e-repurchase intenti0ns 0f the cust0mers. e-
Satisfacti0n, e-trust fact0rs have direct and p0sitive effect 0n repurchase intenti0ns meanwhile e-
l0yalty has t0tal effect b0th 0f direct and indirect 0n e-purchase intenti0ns.
E. Mustafa, S. Ghane (2011) and C. Flavian (2006)0bserved in their research that ease 0f use,
inf0rmati0n c0ntent, inn0vati0n, security pr0tecti0n, cust0mer service, transacti0n and delivery
pr0cess impact on 0n-line satisfacti0n. Thus, implementing and sustaining these antecedents
appr0priately isa necessary strategy f0r establishing cust0mer satisfacti0n. Still 0ther researchers,
such as T. Heidt, T.V. Der, and P. P0nirin (2010), have evidenced that g00d experience 0n 0n-
line sh0pping has p0sitive and significant effect0n trust and l0yalty. Theref0re, managers 0f 0n-
line retailers need t0study and f0cus0n cust0mer 0n-line experience including all the cust0mer
t0uching p0ints starting right fr0m their first p0rtal visit, f0ll0wed by purchase, delivery thr0ugh
after sales service. Hence, g00d 0nline experience willp0sitively influence c0nsumer satisfacti0n
with the e-service which in turn will influence cust0mer trust, l0yalty and repurchase intenti0ns.
Conclusion
The findings 0f this study affirms that all six hyp0theses are supp0rted. Satisfacti0n has p0sitive
relati0nship with trust, l0yalty and repurchase intenti0ns. Trust has p0sitive and direct
relati0nship with l0yaltyand a direct as well indirect effect 0n repurchase intenti0ns mediated
thr0ugh l0yalty.
The results 0f the study als0 sh0ws that cust0mer satisfacti0n has highest impact 0n
cust0mer l0yalty. The f0rmati0n0f e-l0yalty can als0 be attributedt0 experience0f the 0nline
Volume XI, Issue II, December 2017 IMR (Indira Management Review)
86 Singh
sh0pper. If cust0mers gets g00d and satisfying experience in the first 0nline sh0pping
transacti0n, they will intend t0 sh0p fr0m the same 0nline st0re in the c0nsecutive purchases.
Theref0re, it is rec0mmended that 0nline st0res 0r retailers sh0uld f0cus 0n cust0mers’0nline
sh0pping experience by f0ll0wing the crucial t0uch p0ints in cust0mers’ experience thr0ugh0ut
a purchase cycle. M0re0ver, gaining c0nsumer trust is 0ne 0f m0st essential requirement in
0nline sh0pping because there inv0lves risk, as c0nsumers have t0 share their private and
security details such as credit card details. Hence, an0ther element 0f retaining the c0nsumers0n
the same 0nline st0re is trust 0n the veracity 0f inf0rmati0n ab0ut the pr0duct 0r service features
menti0ned 0n the websites as physical0r pers0nal inspecti0n0f the pr0duct 0r service is absent in
case 0f 0nline sh0pping. Additi0nal m0tivati0ns f0r repurchase can be realized by 0ffering
quality, g00d services, and pr0m0ti0nalincentives t0 cust0mers.
References
[1] ASSOCHAM India (2017), ASSOCHAM-Resurgent India Study.
[2] Delgad, B.E. and Munuera, A.J.L. (2001), “Brand Trust in the Context of customer loyalty,” European Journal of
Market Research, Vol. 45(1), pp. 35–53.
[3] Gomez, B.G., Arranz, A.G. and Cillan, J.G. (2006), “The Role of Loyalty Programs in Behavioral and Affective
Royalty”, Journal of Consumer Marketing, Vol. 23(7), pp. 387–396.
[4] Bhattacherjee, A. (2001), “An Empirical Analysis of the Antecedents of Electronic Commerce Service Continuance”,
Decision Support Systems, Vol. 32(2), pp. 201–214.
[5] Bryant and Colledge, B. (2002), “Trust in Electronic Commerce Business Relationships”, Journal of Electronic
Commerce Research, Vol. 3(2), pp. 3–39.
[6] Flavian, C., Guinaliu, M. and Gurrea, R. (2006), “The Role Played by Perceived Usability, Satisfaction, Consumer
Trust on Website Loyalty”, Information and Management, Vol. 43(1), pp. 1–14.
[7] Terawatanavong, C., Whitwell, G.J. and Widing, R.E. (2007), “Buyer Satisfaction with Relational Exchange Across
the Relationship Lifecycle”, European Journal of Marketing, Vol. 41(7–8), pp. 915–938.
[8] Chaudhuri, M.B. Holbrook (2001), “The Chain of Effects from Brand Trust and Brand Affect to Brand Performance:
The Role of Brand Loyalty”, Journal of Marketing, Vol. 65(2), pp. 81–93, Doi:101.1509/jmkg.65.2.1.18255.
[9] Copeland, M.T. (1923), “Relation of Consumer's Buying Habits to Marketing Methods”, Harvard Business Review,
Vol. 1(4), pp. 282–289.
[10] Ribbink, D., Riel, A.C.R.V., Liljander, V. and Streukens, S. (2005), “Comfort Your Online Customer: Quality, Trust
and Loyalty on the Internet”, Managing Service Quality, Vol. 14(6), pp. 446–456, Journal of Services Marketing,
Vol. 17(1), pp. 53–67.
[11] Kim, D. and Benbasat, I. (2003). “Trust Related Argument in Internet Stores: A Framework for Evaluation,” Journal
of Electronic Commerce Research, Vol. 4(2), pp. 49–64.
[12] Mustafa, E. (2011). “Determinants of e-commerce Customer Satisfaction, Trust and Loyalty in Saudi Arabia”,
Journal of Electronic Commerce Research, Vol. 12(1).
[13] Gefen, F., Karahanna, F. and Straub, D.W. (2003), “Inexperience and Experience with Online Stores: The Importance
of TAM and Trust”, IEEE Transaction on Engineering Management, Vol. 50, pp. 307–321.
[14] Velenzuela, F.A. and Parraga, Y.A.V. (2006), “Trust and Commitment as Mediataing Variables in the Relationship
between Satisfaction and Hotel Guest Loyalty”, Panoraman Socio Economic, Vol. 24(32), pp. 18–23.
[15] Tan, F.B., Tung, L. and Xu, Y. (2009), “A Study of Web Designer Criteria for Effective Business to Cutomer (B2C)
Websites using the Repertory Grid Technique”, Journal of Ecommerce Research, Vol. 10(3), pp. 155–177.
[16] Fullerton, F.G. (2005), “The Impact of Brand Commitment on Loyalty to Retail Service Brand, Canadian”, Journal
of Administrative Sciences, Vol. 22(2), pp. 97–110.
[17] Gefen, D. (2000), “E-commerce: The Role of Familiarity and Trust”, Omega: The International Journal of
Management Science, Vol. 28(6), pp. 725–737.
[18] Ha, H.Y., Janda, S. and Muthaly, S.S. (2010), “A New Understanding of Satisfaction Model in E-re-purchase
Situation”, European Journal of Marketing, Vol. 44(7/8), pp. 997–1016.
[19] Internet and Mobile Association of India (2017), “Internet in India 2016”.
[20] Internet and Mobile Association of India (2017). IAMAI & KANTAR IMRB Report.
IMR (Indira Management Review) Volume XI, Issue II, December 2017
Examining Factors Influencing Customer Loyalty and Repurchase Intentions in Online Shopping 87
[21] Flint, J., Blocker, C. and Boutin, P. (2011). “Customer Value Anticipation, Customer Satisfaction and Loyalty: An
Empirical Examination”, Industrial Marketing Management, Vol. 40, pp. 219–230.
[22] Kim, J., Morris, D. and Swait, J. (2008), “Antecedents of True Brand Loyalty”, Journal of Advertising, Vol. 37(2),
pp. 99–117.
[23] Tam, J. (2012). “Linking Perceived Service Quality to Relational Outcomes in a Chinese Context”, Journal of
International Marketing, Vol. 24, pp. 7–23.
[24] Lee, K.Y., Huang, H.L. and Hsu, Y.C. (2007), “Trust, Satisfaction and Commitment on Loyalty to International
Retail Service Brans”, Asia Pacific Management Review, Vol. 12(3), pp. 161–169.
[25] Khalifa, M. and Liu, V. (2007), Online Consumer Retention: Contingent Effects of Online Shopping Habit and
Online Shopping Experience”, European Journal of Information Systems, Vol. 16, pp. 780–792.
[26] Reid, L.J. and Reid, S.D. (1993), “Communicating Tourism Supplier Services: Building Repeat Visitor
Relationships”, Communication and Channel Systems in Tourism Marketing, pp. 3–19.
[27] Pleessis, L.D. (2010), Customer Relationship Management and its Influence on Customer Loyalty at Liberty Life in
South Africa, University of Johannesberg.
[28] Lin, C. and Lekhawipat, W. (2014), “Factors Affecting Online Repurchase Intention”, Industrial Management &
Data Systems, Vol. 114(4), pp. 597–611.
[29] Ling, K.C., Chai, L.T. and Piew, T.H. (2010), “The Effects of Shopping Orientations, Online Trust and Prior Online
Purchase Experience toward Customers’ Online Purchase Intention”, International Business Research, Vol. 3(3),
pp. 63–76.
[30] Razzaque, M.M.A. and Boon, T.G. (2003), “Effects of Dependence and Trust on Channel Satisfaction, Commitment
and Cooperation”, Journal of Business to Business Marketing, Vol. 10(4), pp. 23–48.
[31] Uncles, M.D., Dowling, G.R. and Hammond, K. (2003), “Customer Loyalty and Customer Loyalty Programs”,
Journal of Consumer Marketing, Vol. 20(4), pp. 294–316.
[32] Rexha, N., John, R.P. and Shang, A.S. (2003), “The Impact of the Relation Plan on Adoption of Electric Banking”,
Journal of Services Marketing, Vol. 17(1), pp. 53–67.
[33] Kotler, P. (2010), Marketing Management, Prentice Hall, Inc, New York.
[34] Anderson, R.E. and Srinivasan, S.S. (2003), “Satisfaction and e-loyalty: A Contingency Framework”, Psychology
and Marketing, Vol. 20(2), pp. 123–138.
[35] Frederick, R., Robert, M.G. Jr. and Christopher, H. (2000), “e-customer Loyalty–Applying the Traditional Rules of
Business for Online Success”, European Business Journal, Vol. 12(4), pp. 173–179.
[36] Oliver, R.L. (1999), “Whence Consumer Loyalty?” Journal of Marketing, Vol. 63(4), pp. 33–44.
[37] Rust, R.T. and Zahorik, A.J. (1993), “Customer Satisfaction, Customer Retention, and Market Share”, Journal of
Retailing, Vol. 69(2), pp. 193–215.
[38] Alam, S. and Yasin, N.M. (2010), “What Factors Influence Online Brand Trust: Evidence from Online Tickets
Buyers in Malaysia”, Journal of Theoretical and Applied Electronic Commerce Research, Vol. 5, Issue 3, pp. 78–89,
December.
[39] Krauter, S.G. and Kaluschab (2003), “Empirical Research in On-line Trust: A Review and Critical Assessment”,
International Journal of Human–Computer Studies, Vol. 58(6), pp. 782–812.
[40] Ghane, S., Fatian, M. and Gholamian, M.R. (2011), “Full Relationship among e-satisfaction, e-trust, e-service Quality
and e-loyalty: The Case of Iran e-banking”, Journal of Theoretical and Applied Information Technology, 15th
November, Vol. 33(1).
[41] Shoemaker, S. and Lewis, R.C. (1999), “Customer Loyalty: The Future of Hospitality Marketing”, International
Journal of Hospitality Management, Vol. 18, pp. 345–370.
[42] Sugiono (2008), Business Research Methodology.
[43] Thurau, T.H. and Klee, A. (1997), “The Impact of Customer Satisfaction and Relationship Quality on Customer
Retention a Critical Reassessment and Model Development”, Psychology & Marketing, Vol. 14(8), pp. 737–765.
[44] Heidt, T., Der, T.V. and Ponirin, P. (2010). “Modelling the Complexity of Eloyalty: The Role of e-Value, Trust, e-
Satisfaction and e-Commitment”.
[45] Zeithaml, V.A, Berry, L.L. and Parasuraman, A. (1996), “The Behavioral Consequences of Service Quality”, Journal
of Marketing, Vol. 60(2), pp. 41–46.
[46] Bart, Y., Shankar, V., Sultan, F. and Urban, G.L. (2005), “Are the Drivers and Role of Online Trust the Same for all
Website and Consumers? A Large-scale Exploratory Empirical Study”, Journal of Marketing, Vol. 69, pp. 133–152.
[47] Liu, Y. (2007). “The Long Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty”, Journal
of Marketing, Vol. 17(4), pp. 19–35.
Volume XI, Issue II, December 2017 IMR (Indira Management Review)