IJMSS Vol.

03 Issue-11 (November, 2015) ISSN: 2321-1784

International Journal in Management and Social Science (Impact Factor- 4.358)
E- LOYALTY AND E- SATISFACTION of
E-commerce
1
MR. P.PHANI BHASKAR, 2DR. D. PRASANNA KUMAR,
1
Research Scholar, 2Associate Professor,
Department of Management, KL University, Vaddeswaram, Guntur district, AP, India.

Abstract: With the introduction of E-commerce and on-line consumer shopping trends the
importance of building and maintain E-loyalty in electronic market places has come into picture in
marketing theory and practice. Managing customer trust, satisfaction and loyalty attitudes of E-
commerce services is very important for the long-term growth of businesses. As the competition in
e-commerce is intensified, it becomes more important for online shopping. This paper makes an
attempt to find loyalty and satisfaction of customers in organized E-commerce sites. The samples are
collected from users who regularly do the transactions in E-commerce sites in Vijayawada and
Guntur. Andhra Pradesh, India. The study suggest that E-retailers and E-sellers ought to build a
brand and promote its brand awareness through sales promotion, advertising and other marketing
activities, if brand awareness is high it’s brand loyalty will also increase. Whether it’s comes to retail
outlets or E-commerce sites. Finally satisfaction influences positively and significantly the e-loyalty of
the cyber consumers.

Keywords: E-commerce, on-line, E- loyalty, customer retention and satisfaction.

Introduction
In recent years, electronic commerce growth and the use of the internet in the consumer decision
Making process ensures that traders to make greater use of this tool. While consumer behavior in E-
commerce seems to be a complex subject, the consumer expectations are changing, challenging
traditional patterns of supply of commercial websites. E-commerce has become one of the essential
features in the internet era. Online shopping become the third most popular internet activity
immediately following e-mail using and web browsing. A brand is generally a name and a symbol. It
is an important means which helps creating a positive image on consumers and being different from
rival products. Loyal customers are loyal consumers of the brand and perform repeat purchases and
recommend the brand to those around. Changing life styles, strong income growth and favorable
demo graphs are the drivers of the fast growth of this sector. Loyalty is at the heart of business firms
and companies make great efforts in order to maintain their customer’s loyalty. These efforts
become increasingly difficult and serve in the online business to customer environment since online
companies such as e-stores or e-retailers are facing competition not only from other similar sites but
also from offline companies that offer similar products and services Yen & Good. (2007).Despite the
importance of loyalty to business success in online consumer marketing, little theoretical research
has been so far in this field. Most of the research has been confined to practitioner- oriented
suggestions on how to build loyalty to commercial websites (smith, 2000; Reichfeld & Schefter,
2000).

A unique factor in e-loyalty is the critical role of the first impression created by a website as well as
its ease of use. Easy navigation, fast page loads, server reliability, quick shopping and checkout
processes and a personalized interface. A website has to be designed for a targeted customer
segment, which means that the content of the site has to match the preferences of its targeted
customer group. Global e-marketers should consider offering language-changing options since a
website can be accessed from all over the world. An e-business has to be aware of the fact that a lot
of customers are suffering from time constraints buyers of different products often follow different
buying patterns. An e-business has to know whether most of its buyers come to the website with or
without any intent to buy. If customers visit a site without any intent to buy, placing good offers on
the first page is important on the other hand, for an e-business whose customers visit the site with
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IJMSS Vol.03 Issue-11 (November, 2015) ISSN: 2321-1784
International Journal in Management and Social Science (Impact Factor- 4.358)
the intent to buy, establishing a website with an effective search function is important. At a global
level, e-loyalty is generally very strongly related to the profitability and long-term growth of a firm.
Small increases in customer retention rates can dramatically increase profit. Loyal customers visit
their favorable websites twice as often as non-loyal customers. Loyal customers spend more money,
35 to 40% of revenue will come from repeat visitors.

Literature Review

As long as repeat business is important and as long as customers have chance to go somewhere else.
E-commerce sites must deliver high level of customer satisfaction for a company to be successful, in
a compressive market place that offers meaningful consumer choice alternatives firms that do well
by their customer are rewarded by business. According Allagui and Temessek (2005), the theoretical
foundations of loyalty to a company of the internet are similar to those of traditional loyalty. It is
defined as continuing relationship established between the consumer and a brand as long as repeat
business is important and as customers have the chance to go somewhere else, employees must
deliver high level of customer satisfaction for a company to be successful

E-loyalty

Word of mouth
Word of mouth can be defined as the act of communicating formally or informally with other
consumers about products and services of the company, including recommendations and defending
the company against attacks from other consumers. it is featured by a high credibility. To
advertising, consumers are generally skeptical of the sincerity and credibility of the message and saw
that the belief that behind every advertisement there is a commercial interest that takes precedence
over any design. A loyal customer will disclose to others of good assessments and encourage them
to attend the same company or buy the same brand. It is therefore to free publicity for the
company.

Intention of Repeat purchase

If loyalty is defined as an uninterrupted sequence many purchases of the same brand, it is estimated
according to the marketing literature that a minimum of three to four successive repeat purchase
enough to talk about loyalty. Behavior on the internet is much less stable over time. Indeed, the
cyber consumer has more alternatives to choose from, the cost of change is relatively small and
information about the sites is available at low cost. Relational loyalty must be manifested by a co-
operative relationship in the long run. The consumer is no longer a mere purchaser of the product or
user of the site, but a true partner with whom we can cooperate and be willing to make sacrifices in
the short run.

Online Retailing
Consumers to search for evaluate and order products through the internet for many customers the
advantages of this form of retailing are the 24 hour access the ability to comparison shop in home
privacy and variety. A 2012 global online survey by Nelsen suggests that about 875 million
consumers across the world prefer to shop online. The report confirms that 85% internet users
shopped online. According to Google, India more than 100 million internet users, half of whom make
online purchases and the number is growing ever year. On line retail in India is projected to grow to
200 billion dollars by 2025.

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IJMSS Vol.03 Issue-11 (November, 2015) ISSN: 2321-1784
International Journal in Management and Social Science (Impact Factor- 4.358)
Modes of Advertisement
Through the proper and regular advertisements we can develop the awareness into the general
public who are in the rural areas of India. So that it will leads to increase the sales in urban and as
well as rural areas of India.

 Signboards, billboards, hoardings and banners

 Print Media
 Television
 Radio Advertisement
 Social networking
Brand image
Brand image is the soul of the product or service. It is usually translate to customers, makes them
believe in the products in a certain level and further helps them to make a purchase decision.
Consumers often make use of sense of brand image to improve the quality of the product or service
and decide their behavior. So the quality of brand image indirectly cause consumer cognition of the
product or service quality. This is why enterprise work hard on it and maintain their brand image. As
it emphasizes that brand should have its own distinction and it should be meaningfully. It leads to
brand satisfaction.

Brand satisfaction
Satisfaction is necessary but not sufficient component of loyalty, satisfaction is a prior of loyalty with
increases in satisfaction leading to increasing in E-loyalty. The motion of satisfaction is considered
here as an indirect source of e-loyalty. Brand Satisfaction can either refers to transactional measures
focusing on a discrete incident construct resulting from a service of transactions. It is an antecedent
of e-trust, with increases in satisfaction leading to increases in e-trust. It leads to e-loyalty.

E-loyalty
A deeply held commitment to rebut or repertories a preferred product/ service consistently in the
future. The consumer brand relationship is critical to the building of loyalty. It is important for
several reasons. First, it reduces the cost of production because the sales volume is higher. Second,
companies with loyal customers don’t have to spend as much money on marketing the product. This
type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may
cost less to serve, and can bring new customers to the firm. Businesses have to exert significant
effort to facilitate e-loyalty. You need to convince potential customers that your product has a
significant advantage over other products to justify consistent purchases of your product. It leads to
E-satisfaction.

E- Satisfaction
Research has shown that consumer behavior is difficult to predict even for experts in the field. It
studies features of individual consumers such as demographics and behavioral variables in an
attempt to understand people’s wants. It also tries to assess influences on the consumer from
groups such as family, friends, reference groups and society in general. The state of satisfaction
depends on a number of both psychological and physical variables which correlate with satisfaction
behaviors such as other products against which the customer can compare the products to shopping
sites which match the predominant motives of customer have higher patronage and different
product categories have different motives. Once the customer satisfy with one e-retailer or brand he
never changes to another one normally but his behavior may change if attracts. So the process
makes the re purchase again and again. Satisfaction has generally been presented as an emotional
state arising from the non confirmation of positive or negative initial expectations for the experience
of possession or consumption (Oliver, 1980). In addition this definition of popular satisfaction and is
often confused with the conceptualization of perceived quality, found no echo in research in the
field of ecommerce and the web sites in general.
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IJMSS Vol.03 Issue-11 (November, 2015) ISSN: 2321-1784
International Journal in Management and Social Science (Impact Factor- 4.358)
Research Methodology
The present study is focused on the shopping behavior dimensions of consumers who visit the
organized Ecommerce sites, while conducting the survey taken care to include respondents from
different type of customers, educational back ground and income level. Apart from that data
collected from employees of KL University.

Primary data: The method of data collection done by the way of survey from 150 customers of
Vijayawada and Guntur cities who done their transactions regularly through Ecommerce site.
Secondary data: collected from the books, news paper and Journals & Articles which published on E-
loyalty.

Limitation of Research paper

 The research is confined to Vijayawada and Guntur cities; however the results may differ in
other cities of AP and India
 A Sample size of 150 respondents has been taken from Vijayawada & Guntur.

Analysis of Data
Table 1: Gender of respondents
Particulars Frequency Percent Valid percent Cumulative percent
Male 69 46 46 46
Female 81 54 54 100
Total 150 100 100

 The above table shows that 46% of male and 54% of female respondents, it shows that more
women are making purchasing as compared to men

Table 2: Age of respondents

Age Frequency Percent Valid percent Cumulative percent
18-25 20 13 13 13
26-35 65 44 44 57
36-45 45 30 30 87
45-55 15 10 10 97
56 and above 5 3 3 100
Total 150 100 100

 Majority of respondents are in age group of 26-45 (74%) years.

Table 3: competitors

Name Amazon Flip kart snap deal

Discounts & offers Good Excellent Good
Promotion Ok Excellent Good
Product information Ok Good Excellent
Price Ok Good Excellent
Delivery Good Good Excellent

 Information collected from the users who regularly do the on-line transactions in and
around Vijayawada and Guntur and employees of KL University.

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IJMSS Vol.03 Issue-11 (November, 2015) ISSN: 2321-1784
International Journal in Management and Social Science (Impact Factor- 4.358)
Table 4: Market share
Name Flip kart Snap deal Amazon Other brands
Launched 2007 2010 2013 ---
Market share 2015 44% 32% 15% 9%

 Morgan Stanley report of 2015.

Market share of E-commerce sites by 2015.

45%
40%
35%
30%
25% 2007
20% 2010
15% 2013
10%
5%
0%
Flip kart snap deal Amazon others

Findings:

E-commerce has its existence from last 8 to 10 years. Now it reached to 70 billion dollars business in
India, it may go to 200 billion dollars by 2025. The regular advertisements in TV and newspapers they
reached almost all customers in India. With the brand loyalty they set up in E-commerce industry
now this growing fast especially in transport and logistics, employment opportunities also increasing
with rapid growth of E-commerce sites. They are recruiting huge number of employees on contact
basis. In every three months 5-6 start-up companies are coming and already established company
are setting up their offices in many places, recently Gati recruited 400 employees in 40 days of time.
Commencement of E-commerce companies jobs are increasing in Distribution, packaging and
delivering compare to software employment rate is 8-10%, but in this industry it is almost 25% in
every month. Presently 1.5 lakh of employees are working and getting around 10-12 thousand as
salary per month. Presently life style and home appliance related transactions are going in on-line in
future it leads to food items coming into in picture.

“E-commerce is not a balloon”

Looking to E-commerce business many people say that “E-commerce is a balloon; today not
tomorrow it will burst, but it’s not seeing the situation. Presently from metros and big city people
are only doing on-line transactions, by coming or in future technology development on-line sales will
increase and it will help the industry. Now many people who are working in big positions in MNC are
also looking into E-commerce companies to work. From last 8 months flip kart, Amazon; snap deal
and etc companies are taken around 5000 people for employment.

AP and Telangana
Presently the companies are concentrating on AP and Telangana. All the big companies are setting
up storage fulfillment go downs in Hyderabad. Amazon, flip kart and 60% of companies are coming
into E-commerce want to start their business in AP and Telangana.

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IJMSS Vol.03 Issue-11 (November, 2015) ISSN: 2321-1784
International Journal in Management and Social Science (Impact Factor- 4.358)

As above mentioned data shows that usage of on-line is increased in twin cities of Vijayawada and
Guntur. Because of the education and employment of the people are uses to do their transactions
more on e-commerce sites. People from the age group of 26 to 45 are using more than the others,
because of the income and also the technology. Many people are doing their transactions on online
from purchasing of hair oil to shoe which we normally use from the head to bottom for our daily use.
The analysis tells us who are the major or key players in E-commerce business in India to cater the
services to the public. Retail in India is a $500 billion market, consumption is $1.4 trillion, and retail is
a subset of consumption,"

Problems facing by customers

Although the invention of E-commerce took place in 2007. Till the customers are facing the problem
of deliveries. Not daily but often we see the issue of deliveries like customer has received the stones
instead of the mobile which he ordered. Someone in Telangana received Mango’s instead of Mobile.
With proper tracking of the orders from booking to delivery we can eliminate the problems.

Further study

After the introduction of E-commerce in all sectors its leads to affect the sales of retail outlets. This is
more on retail sector in all industries. After the introduction of the Ecommerce / online shopping
sites like Flip kart, snap deal and Amazon the retail outlets are facing the problem of walk-ins/ foot
prints. The retail industry facing the low margins, high rental, increasing expenditure like employee
salaries, electrical bills and etc. The retail industry as to think it of how to get out of this and how
best they provide the good services to their loyal customers. Retailers want high margins with low
investments and the customers want more benefits with less expenditure. Further study will be on
how the “brand loyalty changed to E-loyalty” in the retail industry after the introduction of E-
commerce.

Conclusion

The retail is part of the service sector. The world has moved on from the age of customer
satisfaction to the age of customer delight and organizations are remodeling their strategies around
the customer and his needs with the aim of bringing him back and keeping him for life. This study
can provide insights to the modern E-commerce sites on how the consumer in Vijayawada and
Guntur their satisfaction and loyalty. An important factor which can lead to increase loyalty is
customer relationship management activities like loyalty discounts, gifts and schemes.
Understanding of shopper’s behavior is the key to success for the retailers. They always look for the
benefits of shopping in an e-store over the retail outlets in terms of self esteem, variety, comparison
of brands and discounts available and also seek value for the money they spent.

The effect of e-trust and e-satisfaction on affective and continuous commitment was taken into
consideration. It suggests that e- retailers should pay much attention to the influence of brand
awareness, perceived quality and e-loyalty on purchase intention. The consumers can identify a
brand name when they want to buy a new article. E-commerce sites and management ought to build
a brand and promote its brand awareness through sales promotion, advertising and other marketing
activities if brand awareness is high, its brand loyalty will also increase. To reflect the outcome of our
research, customer satisfaction against a commercial site is positively influenced by the emotional
state in internet shopping. When the perceived risk associated with purchasing on the website,
consumers do take risks seriously at the time of making decision of purchasing online. This
satisfaction, as determined by the emotional state and perceived risk, generates consumer loyalty to
the merchant site.
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IJMSS Vol.03 Issue-11 (November, 2015) ISSN: 2321-1784
International Journal in Management and Social Science (Impact Factor- 4.358)
From the primary data collected it can be concluded that consumers who are doing their transaction
through on line with E-commerce sites are satisfied with the above mentioned three E-sites. One or
two issues are happened in recent times, with the proper tracking of the goods and services by on-
line from the starting point to end point that means order booking to delivery. The E-commerce
industry will fly like a kite with thread. Retail industry in India is at the cross roads but the future of
the customer market is providing as the market is growing ,government policies are becoming more
favorable and emerging technologies are facilitating operations in India. Almost all large companies
worldwide are looking to establish a base or stake in the Indian market, in this scenario the Indian
retail sector itself must seize the initiate to release the dreams of contributing to a prosperous and
booming economy.

Red alert on E-commerce

While doing on-line transactions we should take care of the logos, photos and details of the sites for
once or twice. Sometimes we get codes for discounts; we have to make the purchases very carefully
mostly we should use our personal computer and also the use of debit/credit cards. The aim of this
study was to understand the effect of social marketing on brand loyalty to E-loyalty and customer
satisfaction.

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International Journal in Management and Social Science (Impact Factor- 4.358)
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