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E-commerce - Cape Peninsula University of Technology

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Chapter 1: Introduction Page 2<br />

the new Intemet-based opportunities that might better satisfy the unique<br />

needs and desires <strong>of</strong> their customers.<br />

1.1 BACKGROUND TO THE RESEARCH PROBLEM<br />

Retailers understand the importance <strong>of</strong> continuous and consistent delivery <strong>of</strong><br />

good service quality as fundamental to customer loyalty. It is now possible to<br />

meet various business objectives by satisfying customers' taste every time<br />

with Intemet technology. An examination <strong>of</strong> retail environments that support<br />

business success reveals the importance <strong>of</strong> the Intemet. There is a potential<br />

for retailers to improve customers shopping experience by implementing<br />

appropriate e-retail strategies.<br />

1.2 SIGNIFICANCE OF RESEARCH<br />

This research will help e-retailers to understand retailing and various ways to<br />

create a loyal customer environment that enhances online customers'<br />

patronage.<br />

1.3 STATEMENT OF RESEARCH PROBLEM<br />

One <strong>of</strong> the challenges for retailers is to understand the new technologies and<br />

to ascertain how to use them to ensure customer loyalty. For e-retailers to<br />

survive in this new environment, the Internet, a constant improved e-retail<br />

approach will be required to improve quality <strong>of</strong> customer service. Improved<br />

customer service creates a foundation for customers' loyalty that leads to<br />

repeat patronage. This study identifies and examines factors affecting<br />

customer loyalty in e-retail environment.

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