Online Loyalty Comes At A Price

31 May, 2006 by Martin Kelly

What price loyalty? Online, the answer appears to be the lower the price, the higher the loyalty.

Overall, however, research indicates that online shoppers are less promiscuous than their bricks and mortar compatriots.

According to research uncovered by Amantha Imber of ad agency, Leo Burnett, repeat purchases account for approximately half of e-tailer’s sales.

Among other findings:

Online shoppers tend to switch suppliers less often than bricks and mortar shoppers, despite the ease in which online comparisons between e-tailer prices can be made.

Customer satisfaction with an e-tailer is not generally predictive of loyalty to the e-tailer.

The greater the perceived economic barriers to switching e-stores (eg prices being higher on other sites), the more likely that customers will exhibit loyalty to the e-store, even when satisfaction is low.

The more familiar a customer is with an e-store’s web layout and services provided, the more likely they are to exhibit loyalty to the store, even if they have been dissatisfied with the service.

*Source: Balabanis, G. Reynolds, N. & Simintiras, A. (2006). “Bases of e-store loyalty: Perceived switching barriers and satisfaction. Journal of Business Research, 59, 214-224.

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Events

'REAL TIME - Sydney, March 30'

When: March 30, 2012
Where: Amora Hotel Jamison
Program: Real Time
Bookings: $499 + gst Early Bird

BOOK now to get the Early Bird rate for the No Vacancy accommodation industry conference in Sydney.

Real Time is the theme of No Vacancy 2012, reflecting the fact that we live in a world where everything happens now, or not at all.

In no business is this more obvious than tourism. Booking lead times are now measured in hours not days or weeks.

To succeed requires a new way of doing business, a fresh mentality and a fair amount of nerve.

The program is packed with the information you'll need to thrive in today's just-in-time world with a focus on distribution, marketing, innovation, consumers and technology.

Speakers confirmed so far include the following, and there are a few more on the way...

Rachel Argaman, CEO, Toga Hospitality
Dave Audley, Heading of Consulting, Experian Hitwise
Quentin Briard, GM Australia & NZ, Club Med
Daniel Bridges, Head of Travel, Trade Me (NZ)
Julio Bruno, Global Vice President Sales, TripAdvisor
James Cassidy, HomeAway.com.au
Robbie Cooke, CEO, Wotif.com
Will Deague, CEO, Art Series Hotels
Dean Dransfield, Director, Dransfield Hotels and Resorts
Bob East, CEO, Mantra Resorts
Leah Lipman, Area Director Reveneue Management Australasia, IHG
Simon McGrath, CEO, Accor Australia
Bryon Merzeo, Analyst, STR Global
Bernard O’Keefe, Group Online Marketing Manager, Hamilton Island
Todd Parker, Founder, Parker Travel Collection
Nikolai Pitchforth, Head of Online Travel, Google
Brett Pointon, Founder, Oaks Hotels and Resorts
Anton Stanish, GM, The Stayz Group
Janet Wilson, Managing Director, Nationwide Hospitality

It'll be a great day. As usual, the focus will be on distribution, marketing, sales, innovation and technology for both hoteliers and Online Travel Agents.

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Returning September 17, 2012

The date has been set for TRAVELtech 2012 - Monday, September 17.

Meanwhile, thanks to everyone who attended TRAVELtech: Best of Enemies in Sydney recently.

It was a fantastic event, lots of fun with a touch of controversy.

Please check out the photographs or use this link to see great 360 degree panorama shots of the conference from Panedia.

TRAVELtech is Australia's original web travel, marketing and distribution event, featuring a compelling program, great speakers and fantastic networking.

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