Does online relationship marketing enhance customer retention and cross-buying?

One characteristic of online consumer behavior is the low cost of searching for alternatives. Therefore, customer loyalty is more difficult to achieve in the online context than in the offline one. Although studies have discussed the effectiveness of relationship marketing, nearly all studies examining such constructs have been in the context of ‘offline’ consumer behavior. With regard to the ‘online’ context, the integration of Internet technology with the customer loyalty concept is rarely discussed in the relationship marketing literature. Furthermore, empirical research that integrates the actual purchase behavior of customer retention and cross-buying is relatively sparse. In response to this, the current study develops and empirically tests a model that examines the relations among relationship-bonding tactics, perceived relationship investment, perceived relationship quality, customer loyalty, customer retention, and cross-buying. Using survey data from 766 online customers of a securities corporation, the results demonstrate the effectiveness of relationship marketing as it positively influences online customers' perception, then their loyalty, and ultimately, their actual purchase behavior.     

Building brand relationships online: A comparison of two interactive applications

Due to its potential for interactive communication, the Internet is considered a promising tool for relationship marketing. However, the effects of interactive communication on marketing effectiveness may depend on several factors related to each individual consumer, such as Internet experience. In this study, two of the most common applications for interactive communication—personalized Web sites and customer communities—were compared for their ability to develop consumer-brand relationships as measured by the Brand Relationship Quality (BRQ) framework of Fournier (1998). No main effects of the applications were observed. However, significant effects of Internet applications were found when Internet experience was included as a moderating variable. Specifically, it was found that personalized Web sites developed stronger consumer-brand relationships for respondents with extensive Internet experience than for respondents with limited Internet experience. Conversely, it was found that customer communities developed stronger relationships among respondents with limited Internet experience than among respondents with extensive Internet experience. Implications for marketing management and future research in this area are discussed.     

Customer Loyalty and Privacy on the Web

ABSTRACT

This study examines from simulation the effects of the privacy sensitivity of customers, the personalization practices or standards of retailers and the difficulty in locating favorable sites on the loyalty of consumers to a Web site. The key finding of the study is that customer privacy sensitivity is a critical success factor that significantly impacts loyalty to a retailer. Customers have higher loyalty to sites that request the least information, while they have lower loyalty to sites that request the most information. Web retailers considering expanded personalization of products or services to customers, through increased personal information, need to rethink their practices. The study also found that difficulty in locating a favorable site is a success factor that impacts retailer loyalty, and that customers have higher loyalty to difficult to locate favorable sites on the Web. These findings are important at a time when consumers are empowered with Web technology to immediately shop competitor sites.     

Promotional strategies on the World Wide Web

Business managers that use the Internet as a major component of their marketing communications strategy face great challenges. The popularity of the Internet with consumers and businesses drives thousands of firms to promote their products and services using World Wide Web (known hereinafter as the Web) sites. Technology has created a competitive arena that enables exposure to consumers worldwide, who can now easily communicate with each other. This potential for exposure has dramatic implications for any business considering the Internet as a promotional vehicle. The growing popularity of Internet sites, where users may discuss their feelings about companies and products, allows an increased scrutiny of all aspects of business. If companies do not deal effectively with this scrutiny, brand equity is vulnerable to erosion. Therefore, all contingencies inherent in promotional efforts on the Internet must be weighed carefully. Businesses which examine the ramifications of on-line exposure are better able to create and maintain a positive Internet presence which facilitates effective Web site promotion. Planning, implementation and control must be integrated into the on-line marketing communications of businesses, regardless of business size.     

Creating Retail Web Sites for Different Consumer Shopping Orientations

Abstract

As the number of Web sites continues to expand and consumers increase their use of the Internet, companies must find ways to convert visitors to buyers and boost return visits to their sites. Most sources that offer guidelines for developing Web sites assume that all Internet shoppers are the same. An examination of customers' shopping orientations would, however, indicate that this is unlikely to be the case. To develop a more effective Web site, it is important to consider the shopping orientations of the target market. This article describes five different shopping orientations and offers ways to address these differences when creating a Web site.     

What are the Building Blocks of Customer Brand Loyalty in Department Stores? A Multi-Level Mediation Analysis

Building customer brand loyalty through branding strategies to sustain competitiveness in the retail industry has gathered momentum among researchers. The purpose of this study is to examine the role of brand personality and consumer brand identification on customer brand loyalty via the mediating variables of perceived service quality, perceived value, brand trust, brand commitment, and word-of-mouth communication among Malaysian department stores' customers. Using a self-structured questionnaire, 381 usable responses are considered for data analysis by applying a covariance-based structural equation modeling approach. The results of exploratory factor analysis show that sincerity, followed by sophistication and competence, are the most significant dimensions used to predict brand personality in department stores. The outcomes also reveal that brand personality indirectly influences customer brand loyalty via consumer brand identification. Furthermore, perceived service quality, perceived value, brand trust, word-of-mouth communication, and brand commitment mediate the effects of consumer brand identification on brand loyalty. Finally, the proposed competing model implies that the indirect impact of brand personality and consumer brand identification is inevitable in building department stores' brand loyalty.     

Web retailing adoption: exploring the nature of internet users Web retailing behaviour

The interaction of consumers and marketers within the Web environment, particularly for retailing/purchasing is a growing area of importance. This paper focuses on examining Internet users adoption of the Web for retail usage. It uses the Technology Acceptance Model Davis (Int. J. Man-Mach. Studies 38 (1993) 475) as a theoretical foundation to explore adoption of this technology for retail usage. The study also adds what are argued to be key consumer characteristics such as Opinion Leadership, Impulsiveness, Web Shopping Compatibility, Internet Self-Efficacy, Perceived Web Security, Satisfaction with web sites, and Shopping Orientation to understand the adoption of Web retailing by Internet users’. A Web based survey was developed and administered, yielding 392 responses. The findings indicate that TAM is a valid theoretical framework to understand users adoption of the Web for retail purposes. Also Internet users’ perceived usefulness and perceived ease of use were effected differentially by Opinion Leadership, Web Shopping Compatibility, Internet Self-Efficacy, Perceived Web Security, Impulsiveness, Satisfaction with web sites, and Shopping Orientation.     

Cognitive Lock‐In Effects on Consumer Purchase Intentions in the Context of B2C Web Sites

The perspective of power law of practice and human capital model asserts that cognitive search costs, cognitive transaction costs, and cognitive switching costs are three lock‐in mechanisms that a business‐to‐consumer (B2C) Web site holds to retain customers. Whether the ability of customer value or the lock‐in mechanism is more dominant for retaining online shoppers has received recent attention, but remains unresolved in the literature. This study sheds light on perceived value and cognitive lock‐in to develop a research model to predict consumer purchase intentions. Empirical results obtained from a survey of customers of a B2C Web site are used to examine the proposed model. Implications of cognitive lock‐in and product cues for increasing purchase intentions are also discussed.     

An Exploratory Assessment of Web Site Performance

Abstract

This paper presents findings of an exploratory case study that was undertaken to assess Web performance evaluation in three petroleum energy firms in the Southwest. Findings indicate that firms with clearly defined Web site objectives will tend to have much more comprehensive strategies for Web site performance evaluation. Contrary to our expectations, perceptions of Web expertise was not significantly related to perceived Web site performance. However, there was a clear relationship between perceived Web development expertise and the perceived ability to improve sites. Additionally, our findings suggest a lack of senior management guidance in Web related initiatives has contributed to an inability to successfully link Web performance measures to organizational objectives.     

CUSTOMER SERVICE IN THE INTERNET‐ENABLED LOGISTICS SUPPLY CHAIN: WEBSITE DESIGN ANTECEDENTS AND LOYALTY EFFECTS

This article extends the existing research on logistics customer service‐loyalty relationships to the online logistics supply chain environment by examining potential website determinants of logistics customer service quality. A structural equation analysis of 373 online shopping transactions suggests that perceived quality of all logistics customer service activities (perceived cycle time, in‐stock availability, and customer responsiveness) varies inversely with: (1) perceived ease of use, and (2) content vividness of the website; and positively with product information content. However, only retailer customer responsiveness assessment was found to have any significant influence on consumer intended loyalty behavior in Internet‐enabled supplies chains.     

Customer perceived value,satisfaction, and loyalty: The role of switching costs

It is a marketplace reality that marketing managers sometimes inflict switching costs on their customers, to inhibit them from defecting to new suppliers. In a competitive setting, such as the Internet market, where competition may be only one click away, has the potential of switching costs as an exit barrier and a binding ingredient of customer loyalty become altered? To address that issue, this article examines the moderating effects of switching costs on customer loyalty through both satisfaction and perceived‐value measures. The results, evoked from a Web‐based survey of online service users, indicate that companies that strive for customer loyalty should focus primarily on satisfaction and perceived value. The moderating effects of switching costs on the association of customer loyalty and customer satisfaction and perceived value are significant only when the level of customer satisfaction or perceived value is above average. In light of the major findings, the article sets forth strategic implications for customer loyalty in the setting of electronic commerce. © 2004 Wiley Periodicals, Inc.     

What motivates customers to shop in smart shops? The impacts of smart technology and technology readiness

With the rapid diffusion of smart technologies, a new retail mode, the smart shop, has received increasing attention from both academia and practitioners in the 5G era. However, previous studies on smart shops have largely focused on the effects of smart technologies on technology adoption rather than customer shopping behaviors. To fill this gap, this study applies the hedonic information systems acceptance model (HISAM) to identify the utilitarian and hedonic motivations affecting consumer shopping intention. In addition, we characterize a second-order formative construct, technology readiness, as a technology-related personality to test its moderating role in the research model in the marketing context when consumer behaviors may differ due to individual characteristics. Using structural equation modeling (SEM), we applied SmartPLS 3.2.8 to analyze 298 valid samples. The results show that perceived ease of use significantly affects perceived usefulness and perceived enjoyment, in turn, these three factors directly influence shopping intention. Additionally, perceived ease of use will have a stronger impact on perceived usefulness and shopping intention when the customer has a high level of technology readiness. Finally, theoretical and practical suggestions and future research directions are also discussed.     

Blogging: A new play in your marketing game plan

The emergence, proliferation, and ubiquity of the Internet have not only transformed businesses, but also altered the relationship between businesses and the customer. Recent advances in technology have helped to migrate this relationship to an interactive level where technology contributes to brand building by creating and sustaining a long-term relationship with the customer. Media fragmentation and customer indifference to traditional marketing tools are forcing marketers to seek new opportunities so the marketing message not only captures customers’ attention, but also tries to engage them with the company. This paper discusses blogs within the context of creating this new, more enduring relationship with the customer. Blogs are discussed within the framework of Web 2.0, the next generation of the Internet, which is comprised of user-generated content and social computing. The use of blogs by several companies as tools to better engage the customer in the creation, delivery, and dissemination of marketing messages is also demonstrated.     

The role of national institutions in the effects of consumers’ perceived customer orientation and firm innovativeness

Many multinational corporations force global customer orientation and firm innovativeness. However, little is known about how or why they benefit from perceived customer orientation and firm innovativeness in one country but not in another. The authors fill this gap by referring to information processing and institutional theories. They contribute to research by analyzing the roles of country development and dimensions of national culture in the direct and indirect effects of perceived customer orientation through firm innovativeness on consumer product purchase intention across 53 countries. The results of multilevel structural equation modeling show different explained variances of the institutions and varying moderations for the differently strong effects of perceived customer orientation and firm innovativeness. Institutional theory strongly complements behavioral theorizing. The findings have direct implications for managers interested in understanding how perceived customer orientation and firm innovativeness interact and attract consumers in different country contexts.     

Consumer trust in the online retail context: Exploring the antecedents and consequences

This empirical paper explores the antecedents and consequences of trust in the online retail context and examines the moderating role of consumers' familiarity with a Web site in the relationship between Web site quality and trust. Data were collected with an online questionnaire. The research highlights the importance of the Web site interface in consumer online behavior by systematically examining how different quality features affect consumer trust. A multidimensional view of Web site quality with the following dimensions is developed: Web site usability, security and privacy assurance, and product information quality. Trust is shown to lead to positive consequences, such as the formation of positive attitudes and behavioral intentions toward the Web site. The study also identifies the moderating role of Web site familiarity in the relationships between aspects of Web site quality and trust. The implications for e‐retailers in terms of Web site design and marketing communications strategy are explored. © 2010 Wiley Periodicals, Inc.     

How online trust evolves over time: The role of social perception

Using customer service scenarios in an online retail context, the current study examines how cognitive and affective trust develop over time and how service failure negatively impacts trust, along with the trust restoration opportunities provided by recovery. Study 1 findings reveal that the relationship between Web site social perception and affective trust is stronger for repeat visitors than for first-time visitors. Study 2 findings indicate that failure timing and recovery duration play important roles in service failure situations. Overall, the results demonstrate that consumer cognitive and affective trust develop through the number of interactions with a retail Web site over time and that increased Web site social perceptions facilitate the trust-building process.     

电子商务与顾客价值的创造

电子商务对顾客价值的影响呈现一种"双刃剑"效果,网络和电子商务在有助于顾客价值的创造、感知和实现的同时,也在一定程度上削弱了企业原有的某些顾客价值创造能力,增加了企业构建顾客价值优势的难度。企业应注重潜在顾客价值和顾客感知价值的提升,注重互联网络服务营销潜能的开发,加强与顾客的交流与沟通,借助于网络整合与优化企业价值链,实现顾客价值的提升。     

关系维持对顾客与自助服务技术关系构建倾向的影响

近年来,大数据、互联网、人工智能的应用推动了自助服务技术的快速发展,传统的顾客与服务人员的互动越来越多地转变为顾客与自助服务技术的互动。能否依靠顾客与自助服务技术的关系促进顾客持续使用,已经成为自助服务营销成败的关键。为阐明自助服务关系维持策略对顾客构建关系倾向影响的作用机制,基于社会交换理论和关系营销理论,以旅游网站为研究对象,选取536名在线自助游顾客作为被试进行实证研究。研究发现,旅游网站资源互补性、服务质量、新颖性的相互作用构成关系维持策略,关系投资和关系质量是关系维持策略对顾客构建关系倾向影响的完全中介变量。因此,旅游网站为更好地与顾客构建关系,一要注重关系维持策略在顾客关系管理中的应用,注重资源互补性、服务质量、新颖性等使用价值的增强与完善,这是促使顾客持续使用网站旅游服务资源的核心与关键;二要注重关系维持策略的整体性和系统性,从提供完整服务包的角度出发,对资源互补性、服务质量和新颖性进行运营管理,传统网站新服务项目的开发以及新兴网站旅游资源的建设已经成为目前旅游网站吸引顾客的关键;三要注重关系维持策略的营销,将营销宣传的关注点从形象宣传转向功能宣传,通过加强顾客对关系维持策略中资源互补性、服务质量和新颖性的功能认知,增强顾客对旅游网站关系投资和关系质量的感知,进而提高顾客与旅游网站构建关系的倾向。     

The role of perceived control and gender in consumer reactions to download delays

An empirical study finds that perceived control strongly mediates the effects of perceived speed of a Web site download on consumers' attitudes and intentions to use the Web site. Moreover, results show that men are more likely to react positively to the perceived speed of a Web site download, whereas women are more likely to base their reactions on perceptions of control in the context of download delays. In contrast to past online research, the gender differences are intrinsic in two ways—they are context independent, and they are not caused by length of Internet experience, extent of Internet usage, or type of Internet connections.     

Role of customer orientation in an integrative model of brand loyalty in services

This study attempts to model the development of brand loyalty by examining the simultaneous effects of customer orientation, perceived quality, brand associations, and satisfaction on brand loyalty. Data are used from retail banking and discount store retailing services to examine the direct and indirect effects of customer perceptions of customer orientation and quality on brand loyalty. It was found that customer orientation has a direct effect on brand loyalty and indirect effects through customer satisfaction, perceived quality, and brand associations as mediators. Further, perceived quality has a direct effect on brand loyalty as well as an indirect effect with satisfaction as a mediator. The results suggest that effective management of brand loyalty would require tracking of customer perceptions of a firm's customer orientation, quality and brand, in addition to measuring customer satisfaction.