28.10.2016 Views

gender differential paper IJCRB

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

ijcrb.webs.com<br />

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

JUNE 2011<br />

VOL 3, NO 2<br />

Literature review<br />

Customer value in e-Commerce<br />

Since a customer has more than enough stores to choose from online, what are the key values an<br />

online store in computer industry can offer to win the customer? The most relevant studies that<br />

take customer value as one of the main concepts in the e-Commerce and online marketing<br />

context in computer industry in Malaysia. Screening alternatives to form consideration set,<br />

providing information for selecting from consideration set are transaction cost, entertainment,<br />

social interaction, and personal security (Alba et al. 1997). Retailer risk (NS), product price,<br />

valence of experience (Chen & Dubinsky, 2003) are also can include to consideration set in<br />

online marketing in computer industry. Usefulness, ease of use, and enjoyment of the site is very<br />

important (Childers et al. 2001, Davis et al. 1992) in online marketing in computer industry for<br />

customer. Satisfaction, effectiveness, and efficiency are the over all value of the customer (Toe<br />

et al. 2003).<br />

Customer Loyalty<br />

Zeithaml (2000) states that previous studies viewed customer loyalty as being either behavioral<br />

or attitudinal. The behavioral approach is that customers are loyal as long as they continue to buy<br />

and use a good or service (Woodside et al., 1989; Parasuraman et al., 1988; Zeithaml et al.,<br />

1996). Reichheld (2003) states that the strongest evidence of customer loyalty is the percentage<br />

of customers who were enthusiastic enough to refer a friend or colleague to a particular good or<br />

service. The attitudinal approach is that customers feel a sense of belonging or commitment to<br />

the good or service. Baumann et al. (2005) noted that Day (1969) four decades ago introduced<br />

the concept that loyalty has both behavioral and attitudinal dimensions.<br />

The behavior approach includes criteria such as repeat purchase, share-of-wallet, and word of<br />

mouth referrals, whereas the attitudinal approach consists of criteria like commitment, trust or<br />

emotional attachment. Baldinger and Rubinson (1996) examined the link between attitude and<br />

behavior and found that 'the stronger the attitudinal commitment..., the more likely consumers<br />

were to remain loyal' thus the use of an attitudinal measure would also indicate the behavioral<br />

dimension of loyalty.<br />

Loyal customers are undoubtedly important because they contribute to the profitability of the<br />

service providers (Anderson and Mittal, 2000; Anderson and Sullivan, 1993). They visit a<br />

website more frequently than a newly acquired customer and can be served at a reduced<br />

operating cost. They provide free word-of-mouth advertising and are likely to pay regular prices.<br />

In a recent update on e-loyalty, Reichheld and Schefter (2000, p.107) observed that contrary to<br />

current beliefs 'price does not rule the Web; trust does. According to the authors, referrals are<br />

extremely important in e-services and may count for half of the acquired customers for some<br />

services. Furthermore, referred customers were found to ask for advice and guidance from the<br />

loyal customers who recommended the service to them, thus reducing the company's costs for<br />

providing help.<br />

The Impact of the Internet on Marketing for the Computer Industry<br />

It is theorized here that the internet has commenced a transformation of the global and domestic<br />

markets and it did this by effectively shaping and reshaping relationships within the supply chain<br />

and by creating changes that are systematic in the method by which consumers to their shopping,<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 220

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

Saved successfully!

Ooh no, something went wrong!