Factors Affecting E-Commerce Customer Loyalty in Pakistan

Abstract

In the globalization era, marketing opportunities are boundless for local or international firms. Marketing is very challenging task and is changed with the passage of time and with the business environment. It is very general that new businesses face number of challenges and one of the biggest challenges is to market their business among market pioneers. With the globalization, several businesses shifted from brick to click because it is cost efficient and it is convenient for both, firm and customers. Also, the eastern individuals can easily get access to the western markets which is only possible because of internet and e-marketing. Firms advertise their products promotion on websites. Consumers will probably feel satisfied by administrations of online stores in the event that they have framed positive internet shopping dispositions. Numerous online stores help their clients make an inspirational behavior toward web shopping by means of suggestion and client rating instruments. E-shopping has a large number of dimensions. It is very positive phenomena that each and every single dimension of e-marketing is beneficial for the business and its growth. Previous empirical studies have shown that e-business achievement will probably happen when customer satisfaction is achieved.The main objective of our study is to investigate the factors that influence customer loyalty in twin cities of Pakistan. We restrict our study to Islamabad and Rawalpindi. Our study is based on survey questionnaire followed by Eid (2011). We use causal study to find out the e-commerce determinants on customer satisfaction and trust which leads to e-commerce customer loyalty. The data were collected from the respondents using a five-point Likert scale, ranging from strongly disagree to strongly agree. Also, scale dependability analysis for the survey is performed by identifying the Cronbach’s alpha value.The findings of our study show that customer satisfaction and customer trust have high statistical but differential impacts on customer loyalty. Additionally, user interface, service information quality, perceived security, and service feedback have differential but highly significant impact on the loyalty of e-commerce customers. The findings have important practical implications, in particularly, for those firms that provide e-commerce services in Pakistan. It assists the firm managers to understand the key factors of e-commerce to focus on improving satisfaction, trust, and loyalty of their online customers, which, in turn, enhances their e-commerce services and business success. Moreover, B2C e-commerce interface, information quality, security, and feedback services strongly influences customer satisfaction, trust, and loyalty. Human computer interaction and developing quality of user interface design of e-commerce websites give priority to achieve successful IT education. Moreover, no study of this kind existed in Pakistan, it will improve our knowledge in understanding the relationship between these constructs in Pakistan

Keywords: B2C E-commerce, Customer Trust, Customer Satisfaction, Customer Loyalty

JEL Code: M31