FACTORS AFFECTING CUSTOMER LOYALTY IN ONLINE RETAIL SHOPPING ENVIRONMENT IN PAKISTAN

Abstract

Online retail shopping is a rapidly growing sector within e-commerce. With an increase in convenient technological platforms, online retail shopping has become the preferred method of shopping for millions of customers around the world. This is mainly because of its perceived convenience, time saving ability, and cost effectiveness. At the same time, a number of factors are important in influencing an individual’s decision to shop for retail goods online. Factors such as website design, content, product range, ease of delivery, pricing, online security, and user privacy, etc. have all been seen to have positive impact on customer’s decision to shop for retail goods online. These factors are also important determinants of customer satisfaction, and loyalty, with online retail stores. However, research on the rise of online retail shopping and factors that influence online retail customers has been absent from Pakistan’s e-commerce industry. Furthermore, the underdeveloped state of online security and user privacy in Pakistan and their effect on the development of online retail environment is also understudied. This study aimed to fill this gap by conducted a primary quantitative research with customers of online retail shops in Pakistan. After surveying a sample of 275 online retail customers, this research has analyzed data using multilinear regression test, independent T-test, and ANOVA to find that in Pakistan online security and user privacy have a positive impact on customer loyalty towards online retail stores. It also finds that customer satisfaction from online retail shopping has a positive effect on customer loyalty towards online retailers in Pakistan. Lastly, the research finds that demographic charasteristics of the customer such as gender, age, and marital status have a strong statistical relation to their loyalty with online retailers.