Online Loyalty Comes At A Price

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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