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Customer Loyalty towards M-Commerce

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Customer’s preference to choose one brand over another for a need is described as customer loyalty (Chirico & Presti, 2008). As Loyalty describes the behavioral dimensions of repetitive customer also describes the providers (Pirc, 2008). E-Commerce which has taken India by storm has led itself into an evolution phase and has transformed into Mobile commerce. In this paper we investigate the customer loyalty of Gen-Z customers. Gen-Z are the people who are born after 1990.They are digitally competent, connected, socially responsible, impatient, less brand loyal and prefer green products. As 37% of Indian online users are from this cohort, we wanted to understand their loyalty behavior towards M-Commerce with respect to E-Travel (online travel ticketing). Because 70% of the total E-Commerce space is occupied by the E-Travel. We investigate 8C’s (customization, contact interactivity, care, community, convenience, cultivation, choice, and character) which identifies the impact of customer loyalty along with mobile technology which acts as catalyst for a successful transaction. The main objective of the study is to measure and develop a model to measure customer loyalty towards M-Commerce. This study dwell on Gen-Z customers in Coimbatore between the age group of 17-25. Survey is being conducted in a natural environment and the scale used is the five point Likert Scale in which 1- strongly disagree and 5- strongly agree. We use stratified sampling method in this study. The researcher identified 4 factors that affected m-loyalty. Of the total 10 factors mobile technology, character, customization and care was found to have an impact on M-loyalty. And M-loyalty was found to have impact on word of mouth factor and search factor. Redbus bagged the first position in minds of people when it comes to bus services and whereas in flight services Makemytrip bagged the first position. Managerial implication is that online retailers can focus the 10 factor model to take necessary action plans as and when there seem to be an attrition in customers or friction in expansion of the customer base.

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Customer Loyalty towards M-Commerce

  2. 2. Presentation Plan  Introduction  Need for the study and Research Gap  Theoretical Framework  Objectives  Research Methodology  Findings  Implication and Limitations  References
  3. 3. Introduction  M-Commerce is mobile commerce which is used by internet abled devices.  In July 2014, we had about 15 percent of transactions coming from mobile. In a year, it has gone from 15 percent to 70 percent.  India's mobile commerce market could balloon to $19 billion by 2019, up 850 percent from its current size of $2 billion.  Surging smartphone sales in the world's second most populous country amid a tidal wave of low-cost handsets is the key driver  Projections by Cisco put the number of smartphone users in India at 651 million by 2019, a near five-fold jump from 140 million by end-2014.  Gen-Z are the people who are born after 1990.They are digitally competent, connected, socially responsible, impatient, less brand loyal and prefer green products. 37% of Indian online users are from this cohort
  4. 4. Need for the study  Understanding variables that influence the customer loyalty to buy through online, needs more attention  Mushrooming of e-commerce players have created a commoditized market, this helps to create strategies to sell.  Earlier studies paid much attention in developed nations where internet penetration was very high.  The researcher want to see how far the variables are relevant in India and how much they influence  To develop a model to find the customer loyalty towards M-Commerce
  5. 5. Why Coimbatore?  Coimbatore is the 2nd largest city in Tamil Nadu, top 10 fast growing city in India  Has population of 35 lakhs (Census 2011)  It’s an educational hub of the region, having 7 universities, 54 engineering colleges, 2 medical colleges, 5 research institutes, 35 polytechnics Colleges and more than 70 Arts and Science Colleges and a large number of schools.  Literacy rate is 84. 31 (Census 2011)  Strong and more number of Network Operators  Has more youngster population
  6. 6. Literature Review  “Emerging value propositions for M-Commerce”. (2001) a paper by Irvine Clarke .et al explains M-Commerce as the capacity to purchase goods anywhere through an internet enabled device.  Shankar and all (2010) enumerated m- commerce to create a shift in the sales image where instead of consumers arriving in the company for purchasing, it is the seller who influences the consumer’s environment without any disturbances through mobile devices.  Researchers have varied beliefs when it comes to difference between e-commerce and m-commerce. Abdelkarim and Nasereddin (2010) pondered that m- commerce to be a subset of e-commerce where sellers carry out business with the usage of mobile devices. But, Vrechopoulos and all (2003) consider m- commerce to be an successor of e-commerce based on internet that offers service and product through internet enabled devices.  However, Feng and all. (2006) contradicted that m-commerce was more superior e-commerce. Their argument was that m-commerce had diverse interfaces with users, usage situations, and value chain, in comparison to e-commerce.
  7. 7. Literature Review  According to William J. Schroer, Generation Z are those born: 1995-2012 and coming of age: 2013-2020  Art Raymond in his article explains gen z working and spending habits as 1. Z’s are digitally connected and competent. 2. Z’s prefer to multi-task 3. Z’s are socially responsible 4. Z’s like flexibility 5. Z’s are not brand loyal. 6. Z’s are impatient  Customer’s preference to choose one brand over another for a need is described as customer loyalty (Chirico & Presti, 2008). Loyalty not only explains about the behavioral dimensions of repetitive customers but also the behavior of provider (Pirc, 2008). Loyalty of customers is investigated with customer satisfaction (Ponirin, Scott, & Heidt, 2009), trust (Rosemary & Sohi, 1997), corporate image (Islam, 2008) and with corporate reputation (Tsai & Yang 2010; Nguyen & Leblanc 2001; Shamma & Hassan 2009.
  8. 8. Theoretical Framework choice care Conven ience characte r Contact interactiv ity cultivati on com mun ity Mobile technol ogy M- Loyalty safety Custom ization
  9. 9. OBJECTIVES :  To develop a model to find the customer loyalty towards M-Commerce  To find most preferred bus services and flight services websites.  To understand the relationship between gender and frequency of travel.
  10. 10. METHODOLOGY RESEARCH METHODOLOGY Research design Exploratory Design Study location Coimbatore Sampling method STRATIFIED Sampling Instrument Pre structured Questionnaire Pilot study 21 Respondents Sample size 201 Respondents Tools used spss Statistical test used Regression, Crosstabs
  11. 11. Bus Services RANK Flight Services RANK RED BUS 1 MAKEMYTRIP 1 ABHI BUS 2 EXPEDIA 2 BUS INDIA 5 YATRA 3 SETC 4 CLEARTRIP 4 GOIBIBO 3 •Ranking for Bus Services and Flight Services Apps/Websites:
  12. 12. averagebudget Total100-300 1000- 1200 300- 500 500- 800 800- 1000 gender male 6% 17% 16% 38% 23% 134 female 4% 25% 13% 39% 18% 67 Total 11 40 27 77 42 201 •A Crosstab between Gender and Average budget to travel a common route:
  13. 13. Findings  Researchers found that customer loyalty towards m-commerce was impacted by factors like Customization, Care, Character, and Mobile Technology.  And M-Loyalty impacted factors like search and word of mouth.  Customization(ability to tailor make the product/experience based on a customer) has positive impact on m-loyalty.  Care(Information about product and efforts for ensuring no breakdown during browsing) has positive impact on m-loyalty.  Character (image or personality that the e-retailer projects using of inputs such as text, style, graphics, colors, logos, and slogans or themes on the website) has positive impact on m-loyalty.  Mobile Technology( internet connectivity and mobile screen size) has positive impact on m-loyalty.  Search( compare rates, explore more about products) was impacted by m- loyalty.  WOM( recommendation, sharing positive information) was impacted by m- loyalty.
  14. 14. Implications  Companies can focus on enhancing the website/app experience by increasing the filter options so that customer can focus easily on their needs.  M-commerce companies can focus on enhancing the user interface of the apps so that it is run in even in 2g internet  Companies can focus on the color, logo, icons and slogans so that its very attractive and impacting in customers mind.  Companies should constantly monitor competitors activity and should try to emulate or strive to perform better in order to maintain loyalty.  Companies should launch lucrative schemes for loyal customers in order to expand the customers base.
  15. 15. Limitations  Analysis was based on one particular city.  The study was conducted with respect to e-travel customers.
  16. 16. REFERENCES  1. Clarke, Irvine, I,II. (2001). Emerging value propositions for M-commerce. Journal of Business Strategies, 18(2), 133-148. Retrieved from  2. Abdelkarim, A., & Nasereddin, H. (2010). Mobile Commerce. Journal of Mathematics and Technology.  3. Ladda, S. (2015, February 1). E Commerce in India - Accelerating growth. Retrieved December 21, 2015, from india-accelerating-growth.pdf  4. Natanson, E. (2015, July 22). India's mobile commerce revolution. Retrieved December 21, 2015, from  5. Raymond, A. (n.d.). FDMC Best Pratices in Woodworking Technology and Business. Retrieved December 21, 2015, from  6. Chirico, P. & Presti, A. L. (2008). A customer loyalty model for services based on a continuing relationship with the provider. Journal of Marketing, 3, 168-171.
  17. 17. REFERENCES  7. Pirc, M. (2008). Determinants, contexts, and measurements of customer loyalty. Economics and Business, 46, 127- 152.  8. Sharif, M. S., Shao, B., Xiao, F., & Saif, M. K. (2014). The impact of psychological factors on consumers trust in adoption of M-commerce. International Business Research, 7(5), 148-155  9. M-commerce poised to take off. (2001). Malaysian Business, 09  10. Mishra, S., PhD. (2014). Adoption of M-commerce in india: Applying theory of planned behaviour model. Journal of Internet Banking and Commerce, 19(1), 1-17.  11. Day G.S., 1970, Buyer Attitudes and Brand Choice Behavior, New York, The Free Press  12. Jacoby J. e Chestnut R.W., 1978, Brand Loyalty. Measurement and Management, New York, Wiley  13. Wernerfelt B., 1991, Brand Loyalty and Market Equilibrium, "Marketing Science", Summer, 229-245  14. Keaveney S.M., 1995, Customer Switching Behavior in Service Industries: An Exploratory Study, "Journal of Marketing", April, 71-82
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  19. 19. THANK YOU  