E-commerce - Cape Peninsula University of Technology

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

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Chapter 4: Data analysis and interpretation RQ 2: Can e-retailers easily overcome the challenges of e-retailing? Page 67 The e-retail businesses interviewed stated that improving customer loyalty and satisfaction, improving product and service quality, increasing profitability are the reasons for their move into e-retailing.. The key role players admitted that it is very difficult, practically to implement quality of service and product maintenance. However, the only way the company can foresee achieving an efficient quality of service, is by being "picky" in measuring how close the company is, as opposed to whether the company is actually achieving that is the way forward. In as much as companies focus on service quality, giving customer's value for their money so that they can come back was also identified as important. The key role players mentioned that since they are all in the same industry going for the same customers, studying the market reaction and frequent checking of the market share helped them in ensuring that their market share does not drop. One ofthe key e-retail business respondent mentioned that they had to go back and re-look at their business processes, change them if necessary, re­ learn, re-motivate and re-teach them to staff. To ensure customer retention and loyalty, this e-retailer believes that a service provider must "educate" its own users about the potential benefits resulting from the supplied service. E-retail businesses that also have traditional shops acknowledged that the business is working towards providing their online customers with variety of products and services offered on the traditional shop (integration). Out of stock and delivery problems are issues these e­ retailers stated they also need to overcome to enhance the retention of their existing customers and help attract new ones. (Hence, research question 1 is answered.)

Chapter 4: Data analysis and interpretation Page 68 Further research should be conducted with e-retailers on how these improvements in their business operations impact on e-customers trust on the services they provide. As Reichheld, Markey and Hopton (2000) noted; "E-satisfaction directly and positively affects e-Ioyalty. Trust is proposed as another important antecedent of loyalty"... Ra 3: What are the effects of business strategies on e-retailing? It emerged from the research that most of the e-retailers have a department with responsibility for business development that studies business strategies as well as what is happening to keep the company up to date. They come up with strategies and initiatives to help improve product and service quality for the company. With that they are able to maintain their lead in the market without being off the track with new strategies that could be tested and implemented. This also helps to improve services thereby gaining the loyalty of the customers. Once the customers are happy, it means that the business is achieving its set objectives. It was also evident in the e-retailers response that listening to customer complaints and ideas helps e-retailers to understand their needs and endeavour them. Another important factor identified is making good quality products and services available to customers at the right time, place and at a price that give value for money. Some of the key role players indicated that they had to make changes to the existing business structure and operations. They stated that because customers collect goods from their traditional shop, they were obliged to make changes to the shop as customer needs increased. In general there was no conclusive opinion about the effect e-retailing might have on their traditional retail shop's future expansion plan.

Chapter 4: Data analysis and interpretation<br />

RQ 2: Can e-retailers easily overcome the challenges <strong>of</strong> e-retailing?<br />

Page 67<br />

The e-retail businesses interviewed stated that improving customer<br />

loyalty and satisfaction, improving product and service quality,<br />

increasing pr<strong>of</strong>itability are the reasons for their move into e-retailing..<br />

The key role players admitted that it is very difficult, practically to<br />

implement quality <strong>of</strong> service and product maintenance. However, the<br />

only way the company can foresee achieving an efficient quality <strong>of</strong><br />

service, is by being "picky" in measuring how close the company is, as<br />

opposed to whether the company is actually achieving that is the way<br />

forward. In as much as companies focus on service quality, giving<br />

customer's value for their money so that they can come back was also<br />

identified as important. The key role players mentioned that since they<br />

are all in the same industry going for the same customers, studying the<br />

market reaction and frequent checking <strong>of</strong> the market share helped<br />

them in ensuring that their market share does not drop. One <strong>of</strong>the key<br />

e-retail business respondent mentioned that they had to go back and<br />

re-look at their business processes, change them if necessary, re­<br />

learn, re-motivate and re-teach them to staff. To ensure customer<br />

retention and loyalty, this e-retailer believes that a service provider<br />

must "educate" its own users about the potential benefits resulting from<br />

the supplied service.<br />

E-retail businesses that also have traditional shops acknowledged that<br />

the business is working towards providing their online customers with<br />

variety <strong>of</strong> products and services <strong>of</strong>fered on the traditional shop<br />

(integration). Out <strong>of</strong> stock and delivery problems are issues these e­<br />

retailers stated they also need to overcome to enhance the retention <strong>of</strong><br />

their existing customers and help attract new ones. (Hence, research<br />

question 1 is answered.)

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