Customer Loyalty in E-Commerce

Customer Loyalty in E-Commerce

3-1-2002 | David Gefen
Customer loyalty is crucial for online vendors due to the high cost of acquiring new customers and the difficulty in retaining them. This study examines whether customer loyalty in e-commerce can be achieved through increased customer trust, which is influenced by service quality. The research found that customer loyalty to an online vendor increases with perceived service quality, both directly and through increased trust. However, the five dimensions of service quality in SERVQUAL collapse into three dimensions in an online environment: tangibles, a combined dimension of responsiveness, reliability, and assurance, and empathy. The first dimension (tangibles) is the most important in increasing customer loyalty, while the second (responsiveness, reliability, and assurance) increases customer trust. Customer trust, along with service quality and cost-to-switch, contributes to loyalty. Perceived risk did not significantly affect loyalty. The study also found that service quality dimensions, such as reliability, responsiveness, and assurance, are more important than empathy in building trust. The research model and hypotheses were tested using PLS, showing that customer trust significantly increases loyalty, while perceived risk does not. The study suggests that service quality and customer trust are key factors in creating loyal customers in e-commerce, even in the absence of human service providers. The results indicate that the dimensions of service quality in online environments may differ from those in traditional settings, and further research is needed to validate these findings across different online markets and industries.Customer loyalty is crucial for online vendors due to the high cost of acquiring new customers and the difficulty in retaining them. This study examines whether customer loyalty in e-commerce can be achieved through increased customer trust, which is influenced by service quality. The research found that customer loyalty to an online vendor increases with perceived service quality, both directly and through increased trust. However, the five dimensions of service quality in SERVQUAL collapse into three dimensions in an online environment: tangibles, a combined dimension of responsiveness, reliability, and assurance, and empathy. The first dimension (tangibles) is the most important in increasing customer loyalty, while the second (responsiveness, reliability, and assurance) increases customer trust. Customer trust, along with service quality and cost-to-switch, contributes to loyalty. Perceived risk did not significantly affect loyalty. The study also found that service quality dimensions, such as reliability, responsiveness, and assurance, are more important than empathy in building trust. The research model and hypotheses were tested using PLS, showing that customer trust significantly increases loyalty, while perceived risk does not. The study suggests that service quality and customer trust are key factors in creating loyal customers in e-commerce, even in the absence of human service providers. The results indicate that the dimensions of service quality in online environments may differ from those in traditional settings, and further research is needed to validate these findings across different online markets and industries.
Reach us at info@study.space