The determinants of loyalty in online commerce-an exploratory study in India

Abstract

Internet based commerce has exploded over the last decade and a half. A large set of studies have been undertaken in the West to understand the drivers of customer loyalty in the online space. With consumer preferences varying across regions and geographies, this study aims at understanding the impact of trust and satisfaction as antecedents of behavioral and attitudinal loyalty for the consumers in a developing country. 175 respondents were surveyed on different elements involved in online purchase during the three phases of information-search and evaluation, purchase and post-purchase. The findings revealed a strong positive impact of trust and satisfaction on behavioral and attitudinal loyalty. Attitudinal loyalty was found to positively influence behavioral loyalty. Further, satisfaction was found to have a strong positive relationship with trust. Deviations from western findings were observed for impact of website design, assortment and security on satisfaction. The study highlights generalization of certain determinants of satisfaction, trust and loyalty while pointing towards context specificity of others. Findings should also assist the practicing community to better understand the drivers of satisfaction, trust and loyalty and thereby help them take the right steps for improving customer retention.