E-commerce: the impact of internet technology on retailing

Abstract

Where customers have freedom of choice, their level of satisfaction will determine if they are loyal, long-term and profitable customers. If customers are not satisfied they will take their business elsewhere. The increase in the level of satisfaction in key element areas would increase overall customer satisfaction and increase customers' future behaviours such as purchasing on the Internet and recommending the e-retail websites to others. This thesis also explains in the previous chapters that early adopters of eretailing exhibited more of the elements of service transactions than goods transactions and that these elements best explain the e-retailer-consumer relationship. Creating the trust between a customer and its service provider {e-retailer} is one of the key factors in ensuring customer loyalty and retention. Other challenges that were discussed include controlling customer data, integrating on-offline orders, delivering goods cost effectively and handling of returns. Strategies e-retail businesses implement and use in improving product and service quality, gain market share and maintain greater customer loyalty were discussed in this research. If the e-retail businesses can continue to improve consumers' satisfaction they will be rewarded with continued improvement in overall customer satisfaction, customer loyalty and retention and increase profitability. While the Internet certainly poses new challenges for e-retailers, and offers them invaluable new tools, a spate of new research suggests that there is no reason for traditional retailers to consider themselves doomed. The big question is: how does Internet technology assist e-retail businesses to create loyal e-customers?