The study was undertaken to categorize and assess the relative importance of various factors in determining customers' evaluation of the overall online shopping experience (customer satisfaction) and their intention to provide continued patronage (remain loyal) to the pertinent online stores. Furthermore, the study also investigated the effects of customer loyalty and satisfaction on revenue. Various hypotheses were formulated and tested using empirical methods. The results from the study imply that web site design factors may lead to discretionary customer loyalty but have no significant effect in fostering customer satisfaction. Discretionary customer loyalty is a product of shopping convenience; thus, web site designers ought to focus efforts on design mechanisms that generate shopping convenience. Even though web site design factors have no significant effects on customer satisfaction, there is a strong positive relationship between customer satisfaction and loyalty. In particular, the results of the study imply that factors pertaining to the acquisition of the product needed by the customer and support during product use are very important in determining customer satisfaction and loyalty. Thus, web-based stores need to shift focus from aesthetic concerns of web site design to product offering and to providing outstanding customer service and support after the purchase of the product. This is what will keep customers satisfied and willing to continue the relationship with a company over the long term. The results of the study indicate that an increase in customer loyalty has a positive impact on sales revenue. The underlying implication is that loyal customers have a strong impact on company profits because they buy more and cost less to serve. In order for web-based stores to achieve long-lasting customer value, they need to nurture customer relationships through electronic customer relationship management (ECRM). This will enable a company to determine the most valuable customers and to follow the important customer-centered concept of achieving increased share of customer instead of increasing share of market. This is desirable because increasing share of customer is much more profitable than price manipulation and discounting associated with attempts to increase market share.
Library of Congress Subject Headings
Electronic commerce; Consumer satisfaction; Customer loyalty; Web sites--Design
Information Sciences and Technologies (MS)
Department, Program, or Center
Information Sciences and Technologies (GCCIS)
Otim, Samuel, "The Determinants and implications of customer satisfaction and loyalty in web-based commerce: An Empirical analysis" (2004). Thesis. Rochester Institute of Technology. Accessed from
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