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The impact of e-loyalty on the business of SME's

Thesis (MTech (Information Technology))--Cape Peninsula University of Technology, 2006. / This study investigates the impact that e-Ioyalty has on the business
success of SMEs. E-Loyalty is defined as a customer's favourable attitude
towards an on-line business which ultimately culminates in repeat
purchasing behaviour. Eight factors (the 8Cs - customisation, contact
interactivity, care, community, convenience, cultivation, choice, and
character) have been identified as having a potential impact upon eloyalty.
Trust and satisfaction play an important role in generating e-loyalty
for electronic business, an aspect which will be elaborated upon
within the ambit of the study. Although there is no universal definition of
an SME, the definition given by the South African National Small Business
Act (Act 102 of 1996) was adopted in this research. Furthermore, an indepth
overview of business success was also presented. Business
success can be described as more than profit-generation. A myriad of
factors investigated influence the success of a business, more particularly;
the study focuses on success factors pertaining to 'e-business'.
An online survey was conducted on two SME e-business websites i.e.,
www.buycomputers.co.za and www.take2.co.za. Data collected from
176 online customers demonstrate that all these factors treated separately
impact e-Ioyalty. However, when these factors are grouped together, only
four of these constructs (i.e., 'Customisation', 'Choice', 'Cultivation', and
'Character') have a significant impact on e-Ioyalty. Furthermore, the data
also returned that e-Ioyalty has an impact on two customer-related
outcomes: 'word-of-mouth promotion' and 'willingness to pay more'. More
specifically, the 'loyal' customer is 'less willing to pay more'. The high cost
of attracting new customers on the Internet and the relative difficulty in
retaining them make customer loyalty an essential asset for many online
vendors.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:cput/oai:localhost:20.500.11838/1377
Date January 2006
CreatorsNaidoo, Kruben
PublisherCape Peninsula University of Technology
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Rightshttp://creativecommons.org/licenses/by-nc-sa/3.0/za/

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