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Online shopping is the process of purchasing goods and services from sellers who sell on the internet (Jusoh & Ling, 2012). The number of internet users is increasing which shows the popularity of the internet. A great number of opportunities for the e- vendors have risen. E-commerce modifies the business pattern, influencing the manufacturers, distributors and customers to utilize the internet as a means for communication and transaction and hence creating new base for a competitive strategy (Celuch, Godwin, & Taylor, 2007). With reference to marketing, it is observed that many companies are conducting business online and treating their websites as a showroom for displaying their products and services. In e- commerce, customers strive for utilitarian benefits like comparing prices and also hedonic benefits like visually appealing website designs since they give enjoyment of the online shopping experience (Bilgihan, Okumus, Nusair, & Bujisic, 2014; Biligihan & Bujistic, 2015; Loiacono, Watson, & Goodhue, 2002).
Online shopping displays different characteristics from traditional shopping (Burke, 2002; Eroglu, Machleit & Davis, 2003; Koernig, 2003). Online shopping can provide better product selection, accessibility and convenience since there is no restriction of space and time (Brynjolfsson and Smith, 2000). There are fewer tangible and intangible transaction costs in online shopping process (Blake, Neuendorf, & Valdiserri, 2005). However, in e-commerce, it is more difficult to build a social connection between firms and customers since there is a lack of physical environment (Schijns, 2003). Marketing managers are interested to know the level of trust or loyalty which can be used to increase customer retention. Attracting new customers costs online vendors at least 20 percent to 40 percent more than it costs vendors who are engaged in doing business in the similar traditional market (Reichheld & Schefter, 2000). Loyalty is a physical and emotional commitment given by the customers in exchange for meeting their expectations. A loyal customer has trust in the product/service and intends to purchase it repeatedly in the future. Trust of the consumer plays the main role in determining the willingness of the customers to purchase the product. Trust is an important antecedent for engaging in online business since it increases the simplicity with which online stores can act opportunistically (Reichheld & Schefter, 2000). Loyal customers always have intention to buy from the same website and are averse to switching (Flavian, Guinaliu & Gurrea, 2006).
Although for a company not all customers are the same. Those who spend more money and purchase more often are the most important ones. In an online environment, in spite of being satisfied by a particular website, customers are still likely to search another alternative sites and switch to them. Since customers can simply compare information and search other websites that offer similar products and services (Anderson and Srinivasan, 2003: Terblanche and Boshoff, 2010). A number of studies have stated the important role of website technology factors and service quality in affecting customer e- satisfaction and e- loyalty pertaining to the customers’ attitude, behavior and psychological state acquired from how they perceive their online shopping experiences (Szymanski and Hise, 2000; Anderson and Srinivasan, 2003 ; Ribbink, Van Riel, Liljander & Streukens, 2004; Flavian et al., 2006).