What makes Internet users visit cyber stores again? key design factors for customer loyalty

ABSTRACT

Retaining customer loyalty is crucial in electronic commerce because the value of an Internet store is largely determined by the number of its loyal customers. This paper proposes a multi-phased model of customer loyalty for Internet shopping, which fully takes the characteristics of the Internet and cyber shopping into consideration. In order to validate the model, we conducted a web-based survey of the customers of various Internet stores, and the data was processed using structural equation analysis. The results indicate that several factors can effectively increase customer loyalty towards an Internet store and that the relative importance of the identified factors varies according to the level of involvement with the product purchased through the store. We suggest several managerial implications in developing Internet stores for higher customer loyalty based on these results.

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INDEX TERMS

Primary Classification:
  H. Information Systems
  H.1 MODELS AND PRINCIPLES

Additional Classification:
  H. Information Systems
  H.4 INFORMATION SYSTEMS APPLICATIONS
      H.4.3 Communications Applications

          Nouns: Internet

  K. Computing Milieux
  K.4 COMPUTERS AND SOCIETY

General Terms:
Design, Human Factors, Management, Measurement, Performance, Theory

Keywords:
Internet shopping, customer interface, customer loyalty, electronic commerce, involvement, transaction cost, trust