E-commerce - Cape Peninsula University of Technology

E-commerce - Cape Peninsula University of Technology E-commerce - Cape Peninsula University of Technology

digitalknowledge.cput.ac.za
from digitalknowledge.cput.ac.za More from this publisher
02.06.2013 Views

iv ABSTRACT Where customers have freedom of choice, their level of satisfaction will determine if they are loyal, long-term and profitable customers. If customers are not satisfied they will take their business elsewhere. The increase in the level of satisfaction in key element areas would increase overall customer satisfaction and increase customers' future behaviours such as purchasing on the Internet and recommending the e-retail websites to others. This thesis also explains in the previous chapters that early adopters of e­ retailing exhibited more of the elements of service transactions than goods transactions and that these elements best explain the e-retailer-consumer relationship. Creating the trust between a customer and its service provider {e-retailer} is one of the key factors in ensuring customer loyalty and retention. Other challenges that were discussed include controlling customer data, integrating on-offline orders, delivering goods cost effectively and handling of returns. Strategies e-retail businesses implement and use in improving product and service quality, gain market share and maintain greater customer loyalty were discussed in this research. If the e-retail businesses can continue to improve consumers' satisfaction they will be rewarded with continued improvement in overall customer satisfaction, customer loyalty and retention and increase profitability. While the Internet certainly poses new challenges for e-retailers, and offers them invaluable new tools, a spate of new research suggests that there is no reason for traditional retailers to consider themselves doomed. The big question is: how does Internet technology assist e-retail businesses to create loyal e-customers?

STATEMENT OF OWN WORK ACKNOWLEDGEMENTS ABSTRACT CHAPTER 1: INTRODUCTION v TABLE OF CONTENTS 1.1 BACKGROUND TO RESEARCH PROBLEM 1.2 SIGNIFICANCE OF THE RESEARCH 1.3 STATEMENT OF RESEARCH PROBLEM 1.4 RESEARCH QUESTIONS 1.5 AIMS AND OBJECTIVES OF RESEARCH 1.6 DELINEATION OF STUDY 1.7 OVERVIEW OF CHAPTERS CHAPTER 2: LITERATURE REVIEW 2.1 2.2 2.3 2.3.1 2.3.2 2.4 2.4.1 2.5 2.5.1 2.5.2 2.5.3 INTRODUCTION E-RETAILlNG AND CUSTOMER LOYALTV THE EMERGENCE OF E-COMMERCE E-commerce technologies Internet technology and service quality INTERNET TECHNOLOGY USE IN E-RETAIL ACTIVITIES IN DEVELOPED AND DEVELOPING COUNTRIES Internet technology use for retail activities in South Africa E-RETAILlNG AND BUSINESS STRATEGY E-retail opportunities E-retail challenges to retailers E-retail challenges to e-customers Page ii iii iv 2 2 2 3 3 3 4 5 6 8 10 15 19 20 24 27 29 32

iv<br />

ABSTRACT<br />

Where customers have freedom <strong>of</strong> choice, their level <strong>of</strong> satisfaction will<br />

determine if they are loyal, long-term and pr<strong>of</strong>itable customers. If customers<br />

are not satisfied they will take their business elsewhere.<br />

The increase in the level <strong>of</strong> satisfaction in key element areas would increase<br />

overall customer satisfaction and increase customers' future behaviours such<br />

as purchasing on the Internet and recommending the e-retail websites to<br />

others.<br />

This thesis also explains in the previous chapters that early adopters <strong>of</strong> e­<br />

retailing exhibited more <strong>of</strong> the elements <strong>of</strong> service transactions than goods<br />

transactions and that these elements best explain the e-retailer-consumer<br />

relationship. Creating the trust between a customer and its service provider<br />

{e-retailer} is one <strong>of</strong> the key factors in ensuring customer loyalty and<br />

retention. Other challenges that were discussed include controlling customer<br />

data, integrating on-<strong>of</strong>fline orders, delivering goods cost effectively and<br />

handling <strong>of</strong> returns. Strategies e-retail businesses implement and use in<br />

improving product and service quality, gain market share and maintain<br />

greater customer loyalty were discussed in this research.<br />

If the e-retail businesses can continue to improve consumers' satisfaction<br />

they will be rewarded with continued improvement in overall customer<br />

satisfaction, customer loyalty and retention and increase pr<strong>of</strong>itability. While<br />

the Internet certainly poses new challenges for e-retailers, and <strong>of</strong>fers them<br />

invaluable new tools, a spate <strong>of</strong> new research suggests that there is no<br />

reason for traditional retailers to consider themselves doomed. The big<br />

question is: how does Internet technology assist e-retail businesses to create<br />

loyal e-customers?

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!