Examining the Value, Satisfaction, and Loyalty Relationship Under Online Framework Using PLS-ANN

Examining the Value, Satisfaction, and Loyalty Relationship Under Online Framework Using PLS-ANN

Himanshu Sharma (University of Delhi, India), Anu G. Aggarwal (University of Delhi, India), and Abhishek Tandon (University of Delhi, India)
DOI: 10.4018/978-1-7998-3473-1.ch154
OnDemand PDF Download:
No Current Special Offers


Electronic commerce has gained popularity over the years and forced the businesses to go online in order to achieve competitive advantages. Digitalization has led to the dynamicity of markets and this poses a question on the loyalty of customers towards these e-commerce websites.This chapter attempts to examine the relationship between website service quality (WSQ), social media reviews (SMR), customer value (CV), customer satisfaction (CS), and website loyalty (LOY); with the moderating effect of switching cost. Also, the most influential predictor in each cause-effect relationship is determined. The hypothesized conceptual framework is validated using a two-stage approach. In the first stage, the hypotheses are tested and path loadings are generated using PLS-SEM approach. Also, the moderating effect is studied using PLS. Second stage utilizes the advantages of artificial neural network (ANN) to obtain the best explanatory variable in each independent-dependent association.
Chapter Preview


The digital era has revolutionized the way of conducting businesses by converting brick-and-mortar firms into brick-and-click or pure-click firms. This has forced the firms to restructure their corporate strategies, which now consider customer-retailer interaction in online framework. With abundant options available for online shoppers in each domain, the e-tailers are facing a fierce market competition to gain a major market share in the economy. The dynamicity of markets resulting from these technological advancements poses a question on the loyalty of customers towards these e-commerce websites. Online retailers have shown interest in studying the variables influencing the e-loyalty among browsers. This has motivated extant researches to focus on exploring greater insights into the website loyalty frameworks. According to a report, customers who express continuance intention to shop from a website spend 67% more than new customers, and 60% will recommend the website to his family and friends in return of their loyalty (Statista, 2018). Thus, even though the topic of loyalty in online framework is less explored, recent researchers are finding this field of study attractive.

Loyalty may be defined as “the preferential, attitudinal and behavioral response toward one or more object category expressed over a period of time by a consumer” (Hirschman, 1970). Researchers have explained loyalty in both attitudinal and behavioral measures (Hill & Alexander, 2017). The attitudinal loyalty is represented by a preference desire towards an object, whereas the behavioral measures concentrate on the proportion of time the customer purchase same object in the present of other objects in same category. The advent of internet technologies has shifted the loyalty concept towards online framework. Website loyalty may be defined as the attitude of a consumer towards a website and his willingness to make a revisit as well as recommend that website to his family and friends (Kabadayi & Gupta, 2005). The success of an e-business can be judged on the basis of its stable customer base, which in this digital world can be attained with the help of a user friendly and well-built website, that makes the shopping experience of customers smooth and enjoyable. The advancements in the information and communication technology (ICT) has showered the online customers with many blessings such as in-depth knowledge regarding the retailer and his offerings, information about the suppliers, comparing prices from various sites, availing discounts and various incentives available for membership holders, and many more advantages. All these benefits inculcate uncertainty in shopper behavior and pose a challenge for marketers to create a loyal group of customers (Veloutsou & McAlonan, 2012).

Previous studies have evaluated loyalty in terms of the level of satisfaction achieved by the shopper while using the website (Anderson & Srinivasan, 2003; Anderson & Swaminathan, 2011). A desirable customer experience while using the website leads to its success, which eventually results in formation of a favorable attitude towards that platform in the presence of other alternatives (Ayo, Oni, Adewoye, & Eweoya, 2016). However, a delighted customer may show intent to make a revisit as well as suggest the site to his family or friends or peers, which leads to a loyalty intention. Moreover, a purchaser will stick to a site only if he perceives it to be beneficial in return of his investments, and is thought to create value for customers, which may be either monetary or non-monetary (Kumar Roy, M. Lassar, & T. Butaney, 2014). Thus, this study considers two antecedents of website loyalty namely customer satisfaction and customer value.

Key Terms in this Chapter

Switching Cost: Monetary and non-monetary factors that compel a customer to shift his website preference.

Customer Satisfaction: The deviation between the expectation and actual outcome for a customer.

Website Loyalty: It means a customer willing to make online purchase through same platform while buying.

Customer Value: In context of online platform, a potential customer will make a purchase only if the item is consistent with his monetary and non-monetary requirements; and also provides some incentives.

Social Media Reviews: The reviews regarding a product/service provided by experienced customers over social media platforms.

Website Service Quality: The variable consisting of information and system quality related to a website.

Complete Chapter List

Search this Book: