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E-Service Quality and Consumer Loyalty

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E-Service Quality and Consumer Loyalty E-service Quality and Consumer Loyalty A Study on Consumer Electronic Retail Industry Authors: Mohammad Younus Hossain Mahadi Hossain Supervisor: Karl-Johan Bonnedahl Student Umeå School of Business Autumn semester 2011 Master Thesis 15hp Abstract This paper investigated the relationship between e-service quality and consumer loyalty in the context of consumer electronic retail industry in Sweden. E-service quality is found to be a prime determinant of consumer loyalty which is very important for the growth of any business regardless of the industry. On this study, we have selected four most important dimensions of e-service quality which are: Reliability, Responsiveness, Ease of use, and Security. We adopted a quantitative approach for this study and our survey took place in the area of Umea University. We reached a total of 200 respondents who are used to with purchasing electronic products online. After collecting the data we analyzed it with the help of statistical tools and then interpreted the results in connection to our theoretical framework. We found that all the four dimensions of e-service quality have strong relationship with consumer loyalty which means that they have considerable impact on building and maintaining the loyalty of consumers in electronics retail industry. We found out that the consumers give the highest priority to the organization of website contents and security of transaction. If the company present the e-retailing website convincingly and ensure safety of transaction, the consumers are more likely to show loyalty towards that company. We also found that reliability is less important than the three other factors according to multiple regressions analysis result; though all the four factors found to be significant according to simple regression. This study fulfills the lack of industry-specific study on the relationship between e-service quality and loyalty for consumer electronic goods industry. However, the study suggests a number of future research possibilities including reassessment of the e-service quality dimensions, measurement of the impact of social media on the relationship between e- service quality and consumer loyalty and so on. Key words: Internet, consumer electronics retail market, service quality, e-service quality, satisfaction, consumer loyalty. i | P a g e Acknowledgment We want to thank all those who have given us enormous support and encouragement time to time when we are writing our Master Thesis, we would not be able to write without you. First of all, we would like to give thanks to the almighty Allah to give us the opportunity of writing thesis. From our hearts, we are grateful to our parents and family members for their continuous support and encouragement. They always have been beside us through the thick and the thin. We would like to give special thanks to our Supervisor Karl-Johan Bonnedahl who has given us a lot of time with patience. Without his guidance and support this thesis would never be possible. Finally we are thankful to all of our friends, we are also grateful to our participants who helped us to collect our data by giving their valuable times. Mohammad Younus Hossain Mahadi Hossain 5th December, 2011. ii | P a g e TABLE OF CONTENTS CHAPTER ONE ..................................................................................................................... 1 INTRODUCTION .......................................................................................................................... 1 1.1 Background of the Study .......................................................................................................... 1 1.2 Problem Formulation ................................................................................................................ 3 1.3 Research Question .................................................................................................................... 4 1.4 Need for the Study .................................................................................................................... 4 1.5 Purpose of the Study ................................................................................................................. 5 1.6 Disposition of the Research ...................................................................................................... 6 CHAPTER TWO .................................................................................................................... 7 METHODOLOGY ......................................................................................................................... 7 2.1 Choice of Study ........................................................................................................................ 7 2.2 Choice of Theory ...................................................................................................................... 7 2.3 Research Philosophy ................................................................................................................. 8 2.3.1 Epistemological assumptions .......................................................................... 9 2.3.2 Ontological assumptions ................................................................................. 9 2.4 Practical Preconception ........................................................................................................... 10 2.5 Research Approach ................................................................................................................. 10 2.6 Research Strategy ....................................................................................................................11 2.7 Research Design ..................................................................................................................... 12 2.7.1 Population ................................................................................................... 13 2.7.2 Sampling ..................................................................................................... 13 2.7.3 Sample size .................................................................................................. 14 2.7.4 Answering alternatives ................................................................................. 14 2.8 Design of Questionnaire ......................................................................................................... 14 2.8.1 Testing of the questionnaire ...........................................................................15 2.9 Possible Error .......................................................................................................................... 15 2.10 Ethical Consideration ............................................................................................................ 16 2.11 Credibility Criteria ................................................................................................................ 16 2.11.1 Validity ...................................................................................................... 16 2.11.2 Reliability ................................................................................................... 17 2.11.3 Generalizability ........................................................................................... 17 CHAPTER THREE .............................................................................................................. 18 LITERATURE REVIEW .............................................................................................................. 18 3.1 E-service and E-Store ............................................................................................................. 18 iii | P a g e 3.2 Consumer Decision Making Process ...................................................................................... 18 3.3 Concept of Service Quality and E-Service Quality ................................................................ 19 3.3.1 Service quality ............................................................................................. 19 3.3.2 E-service quality .......................................................................................... 20 3.4 Dimensions of E-Service Quality ........................................................................................... 21 3.5 The Expectancy Disconfirmation with Performance Model ................................................... 24 3.6 Satisfaction .............................................................................................................................. 25 3.7 Consumer Loyalty ................................................................................................................... 25 3.7.1 SECURITY ................................................................................................. 27 3.7.2 RESPONSIVENESS .................................................................................... 27 3.7.3 RELIABILITY ............................................................................................ 28 3.7.4 EASE OF USE ............................................................................................. 28 CHAPTER FOUR ................................................................................................................ 29 RESUTLS AND ANALYSIS ........................................................................................................ 29 4.1 Questionnaire Construct.........................................................................................................
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