E-Commerce,Trust And E-loyalty

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 1

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 2

Table of Contents

1.0. CHAPTER ONE: Introduction ................................................................................................ 5

1.1. Background of the study ...................................................................................................... 5

1.2. Research Aims and Objective ............................................................................................... 7

1.3. Problem statement .............................................................................................................. 7

1.4. Purpose statement ............................................................................................................... 8

1.5 Significance of the Research ................................................................................................. 8

1.6. Scope, Limitations, and Delimitations of the Study ............................................................. 9

1.7. Research Questions .............................................................................................................. 9

2.0. CHAPTER TWO: LITERATURE REVIEW ........................................................................ 10

2.1. Introduction ........................................................................................................................ 10

2.2 Influential aspects in Online Shopping ................................................................................ 11

2.2.1 Demographic factors ........................................................................................................ 11

2.2.2. Normative familiarity factors .......................................................................................... 11

2.2.3. Shopping orientation aspects ......................................................................................... 11

2.2.4. Shopping motivational aspects ....................................................................................... 12

2.2.5. Online experience aspects .............................................................................................. 12

2.2.6. Psychological perception aspects ................................................................................... 12

2.3. The E-Commerce dispute ................................................................................................... 13

2.4. E-Commerce and Trust ....................................................................................................... 14

2.5. E –Loyalty: .......................................................................................................................... 15

2.6. The financial side of E-loyalty ............................................................................................. 16

2.7. Trust and E-Loyalty ............................................................................................................. 17

2.7.1. Trust Dimensions: ............................................................................................................ 18

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2.8. Measures Undertaken by Businesses ................................................................................ 18

2.9. Learning regarding Loyalty ................................................................................................. 19

2.10. Literature Review Summary ............................................................................................. 20

3.0. CHAPTER THREE: RESEARCH METHODOLOGY ........................................................ 21

3.1. Introduction ........................................................................................................................ 21

3.2. Research Methodology ...................................................................................................... 21

3.3. Research Methodology Justification .................................................................................. 21

3.4. Research Strategy ............................................................................................................... 22

3.5. Data Collection Methods .................................................................................................... 23

3.5.1. Primary Sources............................................................................................................... 23

3.5.6. Secondary ........................................................................................................................ 23

3.6. Research Instrument .......................................................................................................... 24

3.7. Data Collection ................................................................................................................... 24

3.8. Questionnaire Design ......................................................................................................... 25

3.9. Sample Size and Population ............................................................................................... 25

3.10. Sample and sampling technique ...................................................................................... 26

3.11. Data analysis ..................................................................................................................... 26

3.12. Reliability and validity ...................................................................................................... 26

3.13. Ethical Consideration ....................................................................................................... 27

3.14. Data management ............................................................................................................ 27

4.0. CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION ................................... 28

4.1. Introduction ........................................................................................................................ 28

4.2. Data analysis, interpretation and discussion ..................................................................... 28

5.0. CHAPTER FIVE: DISCUSSION .......................................................................................... 39

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 4

5.1. Introduction ........................................................................................................................ 39

5.2. Discussion ........................................................................................................................... 39

6.0. CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS ....................................... 46

5.1. Introduction ........................................................................................................................ 46

5.2. Conclusion .......................................................................................................................... 46

5.3. Recommendations ............................................................................................................. 48

Appendix One: Questionnaire....................................................................................................... 50

References ..................................................................................................................................... 51

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1.0. CHAPTER ONE: Introduction

This chapter discusses the background to the study, in particular it focuses on the E-

commerce and how information as well as communication technologies have changed the way in

which various companies as well as organizations conduct business online. This chapter also

discusses the research aims and objectives, problem and purpose statement and also in-depth it

covers what has been done and existing research gaps which the research study attempted to fill.

Moreover, this chapter also covers the research significance, scope, limitations and delimitations

of the study as well as research questions.

1.1. Background of the study

Information along with communication technologies are continuing at a persistent pace,

affecting roughly all features of daily lives. Nowadays, computers as well as the Internet

comprise of indispensable fraction of the present society. It is approximated that there exist

roughly two billion (which is 28.7% of the total world population), internet customers in the

planet. Since 2000 to the year2010, the figure of Internet consumers around the globe augmented

by 444.8 %( Anandarajan et al, 2002). Internet application in all life localities has turned into

more ordinary eventually. The employment of Internet for business purposes has as well greatly

amplified. Boosted online shopping and retailers who've fiercely gone into internet usage have

caused a brilliant transformation of the business scene and hence increased activity (Babin et al,

2009). Online retailing is all about the electronic interaction which involves consumers and their

relationship with retailers which happens online. According to research the entire e-commerce

volume transactions within the US was about 3,704$ billion in the year2008. All this provides

that persons can integrate their perception of their associated risks and the uncertainties in the

conditions which intensify the trend of the business all at the same time (Newell, 2009).

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Computers as well as the Internet tend to transform the way people live, the approach they use

while communicating the way they obtain education in addition to the approach they make trade

(Jasmine et al, 2012). Nowadays, many businesses rely on computers as well as Internet while

conducting their day-by-day operations. There is however a lack of trust between the retailers

and the customers, and this leads to a case of no profits and the industry trends are proof of this

(Omar, 2010).

The Internet encompasses many reimbursements and returns to businesses. It serves them

in lots of ways. As a way of business, the Internet operates as a market to convey buyers and

sellers together for accomplishing sales. The World Wide net as a contact medium offers a

cheap, simple and quick way for interrelating with clientele, suppliers as well as other

businesses. The Web of a company helps improve credibility, assemble feedback, advance client

service, and ease business procedure (Anandarajan et al, 2002). Businesses, for instance, the

hospitality industry and tourism relies mostly on information. whilst tourism services happen to

be produced and inspired within a physical humanity in a local or regional context, buying a

tourism product decision is usually rooted in information got through express or liaison market

canals; preceding knowledge; gossip; and opinions of trust as well as service superiority. In this

situation, information along with communication technologies is capable of providing the

customers with the information by seeking facts as fraction of their buying process. Information

as well as communication technologies are capable of considerably enhancing the way wherein

tourism along with hospitality enterprise conducts their trade (Babin et al, 2009). These

expertises can reduce expenses, improve operational competence, assist in accessing global

markets and mainly importantly develop service excellence and customer familiarity in

hospitality and tourism ventures (Karake-Shalhoub, 2002). The Internet is capable of creating a

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 7

direct connection between the hospitality industry associates and customers, and as well,

websites can offer information concerning the services as well as generate an instant verification

reply to a query for instance room accessibility (Becker & IGI Global, 2008). Regardless of these

obvious benefits and returns, the business owners of small hospitality do not employ the Web

and Internet to its entire advantage (Palmer, 2010) The need to conduct research has arisen from

the different views of customers which are based on the different attitudes and online ambiance

that has characterized the business (Palmer, 2010). Given these concerns, this dissertation

scrutinizes factors influencing the embracing of e-commerce in businesses by means of the

website in order to preserve with customer prospects and competition.

1.2. Research Aims and Objective

Research Aim

The main aim of the study was to delve the affiliation amid the trust and loyalty in E-

commerce.

Research Objectives

 To examine the affiliation amid E-loyalty and trust.

 To investigate the issues that manipulates trust.

 To discover the mechanisms that guide to enhance service quality and trust in e-

commerce.

 To investigate the paths through the way E-loyalty could be improved.

1.3. Problem statement

E-commerce is a concept which many researchers over the years have done thorough

research studies on it. In a research study conducted by Westland (2009), on importance of E-

commerce in the current business world, he concluded that E-commerce today has changed the

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 8

way in which various organizations as well as companies conduct their business (Westland,

2009). Though, past research studies have been on the aspect of E-commerce, there still research

gaps which need to be filled. Past research studies done on this primarily concentrated on the

importance of E-commerce, risks associated with it and how it has transformed online business,

no research study has been done on the aspect of E- loyalty and trust. This is the reason as why

this research study attempted to examine in depth aspect of E-loyalty and consumer trust in E-

commerce and how it is developed as well as maintained.

1.4. Purpose statement

The main aim of the study was to examine the affiliation amid the trust and loyalty in E-

commerce a case study of England. Primarily, the study intended to prove the mere fact that E-

loyalty and trust are important aspects in E-commerce. Additionally, the study investigated the

issues which manipulate trust and the paths through which E-loyalty could be improved.

Moreover, the study intended to discover the mechanisms which guides as well as enhances

service quality and trust in e-commerce.

1.5 Significance of the Research

E-commerce is an important concept which has transformed the way in which businesses

are conducted online. With new technologies, various businesses worldwide are becoming more

competitive with many rivalry companies entering the market in different industries. To maintain

the competitive nature of various industries as well as survive in the market, companies have

their focus mainly on customer retention and growth (Becker and IGI Global, 2008). Therefore,

this study will help various organization, companies, firms and E-marketers to develop as well as

implement important factors which contribute to consumer E-loyalty and trust. Additionally, the

research will help various E-marketers to understand effectively the aspect of E-commerce and

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how organizations can successful meet the needs of the clients though service and product

quality.

1.6. Scope, Limitations, and Delimitations of the Study

The scope of the study was actually limited to the main objective which was to examine

in depth the affiliation amid the trust and loyalty in E- commerce a case study of England. To

effectively, achieve the research aim, the research examined the concept of E-loyalty and trust in

E-commerce deeply. The study was associated with a number of limitations among them time

and financial constraints which actually limited the number of participants hence only 150

respondents were involved. Additionally, the research study encountered other weaknesses

associated with research methodology among them inability to provide appropriate data in

relation to the phenomenon under study.

1.7. Research Questions

In order to achieve the research aim as well as objectives, the following research

questions were used in the study with many others.

 What are the major factors which greatly contributes to E-loyalty and trust among online

consumers?

 How do businesses and E-marketers achieve consumer E-loyalty and trust?

 In your own opinion what are the mechanisms which guides and enhances service quality

and trust in e-commerce?

 Is E-loyalty and consumer trust an important aspect in Ecommerce?

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2.0. CHAPTER TWO: LITERATURE REVIEW

This chapter covers past studies done on the concept of E-commerce and what the

literature review says. Additionally, it will examine the literature as well as past studies done on

the concepts of E-loyalty and trust, trust dimensions E-Commerce Trust Enhanced Factors

among other topics as well as areas of study considered to be important to the research topic

2.1. Introduction

The rendering of transactions through the internet is referred to as E-commerce

(Marshak, 2009). Anyone is capable of making exploitation of e-Commerce together with a

different party despite room and time. WWW (World Wide Web) is the mainly admired media

within e-Commerce conducts. The internet service endless development presented by e-

Commerce net system is probable to cause great blow on the altitude of sale as well as customers

contentment (Marshak, 2009). Online expertise provides an economical, extremely competent

way to exhibit merchandise, draw customers, as well as handle acquisition orders. Nevertheless,

getting all the e-commerce strategy parts to work efficiently tend to be a taxing experience. For

each company, which has it correctly, numerous others are besieged to improve their Websites

and associated infrastructure. Internet utilization by small business enterprises has risen: The

amount of entrepreneurial companies with Internet admission nearly two folded over a period of

two-years, from 21.5% in 1996 to 41.2% in 1998(Jasmine et al, 2012). Like many like 35% of

small companies, preserve their personal Web sites. Research demonstrates that smaller

associations that employ the Web encompass higher yearly revenues, typically $3.79 million

during 1998, contrasted to $2.72 million of every small venture (Marshak, 2009).

Smaller business enterprises employ the Internet to conduct a range of operations,

comprising customer-based recognition, advertising, customer sales, and transactions of

business-to-business, e-mail, as well as private domestic networks for workers. 78% of small

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business enterprise proprietors who have a Website have stated the aptitude to reach novel and

potential clientele as their major reason for owning one (Marshak, 2009).There usually is no

relation between the consumers and the sellers if the one considers the business model, and this

poses a risk, and inevitably make the buyers to look closely into their transactions and buying

behavior (Marshak, 2009).

2.2 Influential aspects in Online Shopping

2.2.1 Demographic factors

They include customers age, gender, education, income, and culture. In gender

differences, research indicates that males are supposed to use more on online purchasing in

comparison to females (Marshak, 2009). In addition, high-income earners are supposed to

procure more online in comparison to low-income earners. In addition, culture affects online

shopping in that, for instance, western culture persons more probable utilize the internet to hunt

for data and shop while eastern culture persons use it for contact and work associated research.

2.2.2. Normative familiarity factors

Normative attitudes are apprehensive with the probability that significant referent persons

or groups for instance, the individual’s spouse, friends, family or co-workers endorse or criticize

of executing a given conduct. Such attitude can sway the person’s intents and dealings even

when in reference to online purchasing.

2.2.3. Shopping orientation aspects

Shopping orientations comprise; ethical, economic, personalizing, apathetic,

convenience-oriented, recreational, highly involved, as well as psych socializing (community

oriented buyers) (Gao, 2005). The rapid boost in online purchasing interactivity through

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wealthier orientations will speed up the reception of online purchasing among shoppers with

diverse orientations.

2.2.4. Shopping motivational aspects

They include hedonic or human factors or computer factors (utilitarian). Customers with

human factor inspirations are apprehensive with the purchasing experience itself furthermore

they are essentially looking for amusement, enjoyment as well as shopping by means of sensory

stimulation. Contrary, clientele with utilitarian inspirations are apprehensive with purchasing

goods in a competent and timely approach to accomplish their targets with the least of irritation

(Becker & IGI Global, 2008).

2.2.5. Online experience aspects

This aspect is apprehensive about the consumers’ feelings whilst performing online

actions, which can take part in a noteworthy responsibility when it comes to shopping intention.

According to research, three emotional scopes compose user sentiments experienced within an

environment. They include arousal, pleasure, and dominance. They can influence an individual’s

choice in approaching or avoiding an environment (Jasmine et al, 2012).

2.2.6. Psychological perception aspects

Among the emotional aspects, which have been established to negatively affect clients’

online shopping deeds include; risk, which is the biased belief of undergoing a defeat in search

of a preferred outcome; the reimbursement of online shopping- it is connected with the clients’

perceived expediency of a meticulous coordination. This sequentially affects the buyer attitude.

In addition, WWWA( World Wide Web Apprehensiveness) which is the individuals opposition

to or the WWW terror as a canal of communication when it comes to online information

searching and communication connections which are not environment precise has been

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established to psychologically sway customers’ online purchasing behavior. According to

research, women have a faintly higher altitude of WWWA as compared to men therefore spend a

little money online (Bryman and Bell, 2007).

2.3. The E-Commerce dispute

E-commerce being the marketing, endorsing, purchasing, as well as selling of

merchandise and services by electronic means, particularly through the Internet has turned to be

the new gesticulate in transacting trade(Palmer, 2010). E-commerce includes various approaches

of Internet employment:

• E-tailing (fundamental storefronts), that is a location for doing shopping as well as making

procurements.

• EDI (Electronic data interchange). It is the business-to-business swap of data.

• Business-to-business purchasing and selling

• E-mail as well as computer faxing.

• making sure the safety of information transactions.

It is the incorporation of business procedures electronically through information as well as

communication technologies.

According to Research, online trade marketing is presently experiencing roughly a 200%

yearly growth speed, with online transfer doubling each 100 days. Little businesses made $3.5

billion within e-commerce dealings in 1997, and protrusions for online dealings for the

commencement of the subsequent decade vary extensively as of $25 billion toward above $300

billion dependent on the source (Palmer, 2010).Little firms encounter an amount of obstructions

when chasing the e-commerce direction. These include preliminary start-up expenses, difficulty

in drawing and keeping technically skilled workers to overhaul the site as well as customers,

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founding of adequate safety for a little business (or its clientele) data, and customer trust. The

immediate obstruction facing companies, which seek to implement e-commerce fully, is the

charge. Experts approximate that a little business would require an initial asset of $10,000 in

order to open an e-commerce location and approximately 20% of the induction funds to uphold it

yearly (Babin et al, 2009). The technical barricades involve equally personnel as well as data.

2.4. E-Commerce and Trust

Trust tends to be a basis in conducting trade activities. Business dealings amid two or

more parties can merely happen if they believe each other. Similar to a mechanism, faith serves

to even, satisfactory transactions like anticipated by the parties (Clarke & Flaherty, 2005).

Numerous of disciplines comprise their own descriptions about belief particularly within the

psychology field during the early ages (Gao, 2005). However, afterwards, trust illustrates the

awareness of other disciplines (Sindell, 2001), together with the entity of curiosity in e-

Commerce. Within this situation, trust is classified as the characteristic of trusting in

dependability of others, who happen to fulfil every of the responsibilities as expected. The theory

developed by Chiu (2006) states that trust reveals the assurances and dependence that goes

between the customer and the dealings he will have with the partner. When trust is available, the

business is boosted, and this will inspire as well as convince the vendor towards a second and

subsequent purchase (Baker, 2005). Trust has to be constructed, and this comes through a

prerequisite of amalgamated factors. Sellers, the websites and the customer’s form the three view

points through which this trust can be studied (Clarke, & Flaherty, 2005). The aspects of the

seller shall be in founded on the size of the business and its reputation. For the website, though, it

shall be assessed against the important factors that include privacy, security, navigation, and

other internet usage issues (Clarke & Flaherty, 2005). The customer perspective has been noted

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 15

by Garbarino and Johnson (2003) as to be measured based on their personal experience, and the

also the acquaintance between the website and several similar characteristics. Clarke & Flaherty,

(2005) however argues that very few researchers have done work on the fact of constructing trust

on the online business environment amongst customers despite the few exceptions.

2.5. E –Loyalty:

Sindell (2009) defines Customer Loyalty “as when an organization receives the ultimate

reward after having interacted with its customers in a good way.”The Customer loyalty institute

provides that the term customer loyalty means and is all about attracting the right customer,

getting the people to buy, if not do so more often, and when they do buy in higher quantities as

well as bring the seller even more customers. Sindell (2009) stated that one of the basic

marketing goals of a business shall be to gain customer loyalty for the sake of profits. There

usually is a very heavy cost when one is trying to gain a new customer base and this more or less

leads to losses. For this reason, Sindell (2009) mentioned that businesses employ effort and the

time to acquire and keep or maintain a dedicated client base. These are the ones who assist them

to achieve profitability in the long term and a steadfast flow of business. E- Loyalty ought to be

the retailers’ undisclosed weapon over the web (Sindell, 2009). During the hustle to put up

internet businesses, scores of executives’ focus all their concentration on attracting clientele

rather than preserving them. This tends to be a huge mistake because the distinctive money

matters of e-business lead to customer loyalty being more vital than ever. Its in the same spirit

that Sindell (2009), mentioned that a loyal customer base ensures frequent purchases and also

uplifts progressive publicity through word of mouth. Retailers should recognize that cost does

not regulate the web, but trust on the other hand, does. Gao (2005) further adds that most of the

online businesses are not concerned with E-loyalty which has seen many of them fail in their

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 16

businesses. This is supported by Sindell (2009), who argues that service quality as well as trust is

important elements in E-commerce which leads to consumer satisfaction, trust and e-loyalty. He

concludes his study with what are shared values of the given website and the privacy actions that

will affect the consumer’s conduct, promise, as well as trust. E-loyalty also is inclined to being a

competitive requirement: in every business, some corporation will comprehend how to control

the probability of the net to create outstanding value for clientele, and that corporation tends to

confine many profitable relations at the cost of slow-footed competitors. Without the fastening of

loyalty, still the best-calculated e-business replica will collapse.

2.6. The financial side of E-loyalty

At the commencement of a liaison, the outlays essential to obtain a customer are

frequently considerably superior in e –commerce as compared to traditional retail canals. In attire

e tailing, for instance, novel customers rate 20% to about 40% extra for untainted-play internet

corporations as compared to traditional vendors with equally physical as well as online stores

(Clarke & Flaherty, 2005). That denotes that the defeats in the premature stages of interactions

are larger. During future years however, profit growth hastens on an even quicker rate. In attire e

tailing, recur customers expend more than double as much within 24-30 months of their

associations than they accomplish in the primary six months (Gao, 2005). Moreover, because it

is comparatively simple for Web provisions to expand their variety of merchandise, they can

trade extra and extra kinds of merchandise to loyal clientele, broadening on top of deepening

relations eventually. The evidence signifies, actually, that Web clientele tend to merge their

procurements with one chief dealer to the degree that buying from the dealer’s site becomes a

component of their every day routine. This trend is particularly obvious within the business-to-

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 17

business segment. Lasting business proceeds over the net are simply attained when greater

customer faithfulness is achieved (Sindell, 2010).

2.7. Trust and E-Loyalty

According to Chiu (2006), research study he concluded that one of the major factors

related to customer satisfaction was the concept of perception. Similarly, Clarke & Flaherty

(2005), also in their research study stated that consumer trust is an important aspect in E-

commerce because it enhances a long term standing relationship between the consumer and the

company or the seller. According to their research trust is considered as an important element in

online deals, as it decreases the issues of panic and insecurity in the consumers. Since online

clientele cannot glance at a trade clerk inside the eye, cannot evaluate the physical room of a

shop or office, as well as cannot perceive and touch goods. They are forced to depend on images

as well as assurances, and in circumstances where they do not trust the corporation presenting

those descriptions and promises, they will shop somewhere else. Chiu (2006), has in the same

light mentioned regarding the success of an online supplier as not only lying on the online

presence or in the price issue but on the consumer’s perceived standard/ quality. This is the

reason Chiu (2006), said that a customer's perceived risk of online transactions is mostly high,

and this is why trust is important if one is to create consumer loyalty. In his research Chiu

(2006), indicates that there exist a positive correlation between E-loyalty and consumer trust.

Mostly, online consumers are usually lured to buy from a particular business or company

depending on the developed consumer trust and confidence. Lack of trust as well as confidence

in most cases deviates most of the consumers from purchasing goods or products from a given

specified company (Gao, 2000). The risk associated with customers can be confronted by trying

to develop a relationship with the customer. When customers happen to rely on an online

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 18

merchant, they tend to be much more prone to share individual information. That information

facilitates the business to outline a more close relationship with clientele, offering goods and

services customized to their personality preferences, that consecutively increases reliance and

reinforces trustworthiness. Such a righteous circle can rapidly interpret into a sturdy advantage

above competitors.

2.7.1. Trust Dimensions:

Factors that will determine trust have been clarified in the numerous previous studies

(Sindell, 2009). According to Sindell, (2009) his study reveals that in order to establish loyalty

between the consumers the sellers, there is a need to develop tools continually that will provide

fully the commitment of the consumer. It’s basically about building consumer’s confidence.

Consistent with Westland (2009), trust the main constituent in the trade transaction, is essentially

constructed on the following foundation, explicitly ability, generosity (benevolence), and

integrity. The online mechanisms of trust have been used by the businesses so that they can

convince and assure the consumers regarding the safety of the online business (Jasmine,etal

2012). Gao (2005), stated that by offering quality website content that will include the technical

respects and enhance the customer to interact with other websites increases the business's

reputation.

2.8. Measures Undertaken by Businesses

Newell (2009) stated that the security measures play a great gratuitous for the E-

Business. Newell (2009) mentioned that SLL is an important as well as effective technique

which can be used by various banks as well as online companies to reduce online risks as well as

ensure customer security. Many of the companies have embraced this issue among them Amazon

which is one of the fastest growing online business company using Ribbik. This aside, there are

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two other methods currently being implemented including cryptographic methods as well as

digital certificates (Westland, 2009). On the same regard Omar,(2010) stated that these issues are

bring forth a great reliability in giving extraordinary recognition certificates for persons as well

as businesses. Palmer (2010), stated that the then SET protocol brought to light extraordinary

elements to formulate by the companies working online.

2.9. Learning regarding Loyalty

Whilst the internet might appear like a nameless space, actually it is extremely easier to

follow customers, their buy histories, as well as their favorites online than within a traditional

trade setting (Sindell, 2010). Customers inside ‘brick and mortar’ provisions leave no evidence

of their conduct unless they purchase something and still then, the statistics are frequently

sketchy. Nevertheless, in virtual provisions, their shopping procurement patterns are apparent.

Every progress they make is capable of being documented by electronic means, in every click

they make. If a client leaves a website once the price display appears, this is a fair gamble that

they are price susceptible. If he or she jumps from one page to another without constantly

initiating a deal, he is most likely bothered at being incapable of finding what he or she wants.

By presenting such rich information, the internet presents companies exceptional opportunities

for attaining to identify their customers thoroughly and for modifying offerings to reach their

preferences. Very few corporations however, are really doing a lot to recognize that potential.

Research indicates that 20% constantly track client retention meticulously, let alone attempt to

learn analytically from client defection patterns. As an alternative, they are obsessed on erecting

their Web capability and escalating their guest calculations, click-throngs, as well as on-line

sales(Palmer, 2010). Consequently, they overlook prospects for outpouring and cross trading as

well as end up confining a much slighter share of client’s overall procurements than they could

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 20

have. Research shows, in reality, that the normal Website attains fewer than 30% as compared to

its full sales probability, with each client.

2.10. Literature Review Summary

This chapter discussed the dimension of E-commerce, loyalty and trust. E-commerce has

become famous in the recent years with businesses as well as companies using the internet to

conduct their individual businesses. This chapter discussed influential aspects in online shopping

among them demographics, internet familiarity, normative attitudes, shopping orientation,

purchasing motivation, personal characters, online skill, psychological opinion, and online

purchasing experience. Additionally, the chapter discussed deeply the dimensions of trust and

trust enhanced factors. Trust and E-loyalty was seen as important concepts when conducting

online activities by various companies.

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3.0. CHAPTER THREE: RESEARCH METHODOLOGY

3.1. Introduction

This chapter describes in detailed the research methodology, justification for the research

methodology, research strategy, data collection sources, research instrument, questionnaire

design, sample size, data analysis, credibility and validity, ethical considerations and data

management.

3.2. Research Methodology

The research study called for a well-planned research structure and format that would

reflect the real objectives of the research (Zikmund, 2003). The methodology of choice fulfils

this function because it gives an objective perspective to the study. The foundation is important

for collection of research data and its subsequent analysis. A good research methodology as

described by Zikmund (2003), is one of the important factors which contributes to a successful

research study. It is therefore important for a researcher to ensure that a given research

methodology adequately addresses the research questions well as objectives. If the objectives

and research questions are not effectively addressed by a given research methodology then all the

efforts and resources spent in the research study can all go to waste. In a research conducted by

Bell (2006), he argues that a good research methodology should clearly outline the way in which

the researcher is going to conduct his or her research study. Bell (2006), summarized in his study

that an effective research methodology should specify the research objectives to the research

questions as well as adequately specify the methods which will be used to collect data and the

research instruments (Griffin, 2009).

3.3. Research Methodology Justification

The research study utilized quantitative research methodology. The application of a

quantitative research approach gives the researcher an opportunity to construct research models

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and presents an effective and efficient research method that makes it possible to give appropriate

recommendations at the close of the research study (William, et al, 2011). Bell (2006), defines

quantitative research methodology as an empirical investigation of social events though the use

of statistical methods. Primarily, quantitative research attempts to develop as well as employ

statistical theories in elation to a given research phenomena (Bell, 2006). Therefore, quantitative

research can be seen as a research methodology which provides the researcher with an

opportunity to incorporate a large sample size. Since the quantitative research methodology is

investigative in nature, the methodology was chosen primarily because it helped the researcher to

understand the relationship between three variables thus E-loyalty, Trust and service quality.

3.4. Research Strategy

There are various research strategies which a researcher can choose from when

conducting a given research study. In this study, the researcher utilized survey research strategy

which actually is seen as an important and efficient way of gathering data for research study.

According to Zikmund (2003), survey research strategy is perceived to be an effective way of

gathering data by many researchers because clear research objectives and questions forms the

foundation for gathering data from the respondents. For this strategy to be effective and ensure

successful completion of a given research study, it is always important to have in place a well

developed research plan and analysis. This is important because it ensures that the interpreted

results actually reflects the data collected as well as is in relation to the research findings

(Schindler, 2010). The survey strategy was chosen over other research strategies such as

grounded theory, ethnography among others primarily because the survey strategy is cheaper and

easy to administer compared to other strategies. Additionally, survey strategy is usually

considered to be instrumental especially when it comes to giving descriptions and characteristics

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of a larger population group. Moreover, survey strategy gives the researcher room to pose

questions to the respondents which in turn ensures accuracy and reliability of data collected.

3.5. Data Collection Methods

In any study, effective research method determines the results of a research. Therefore, it

is important for a researcher to choose the most appropriate data collection methods. As such, a

researcher has to fully utilize the available sources and use them in the process of decision-

making (Bell, 2006). In this research study, two main data collection sources were used for this

study.

3.5.1. Primary Sources

Primary sources of information are reliable and accurate because they tend to provide

first hand information to the researcher. This stipulates from the mere fact that, the researcher

himself collects the data which gives him or her opportunity to gather data only related to the

research study. Since the data collects the data by himself, this kind of data collection method is

time consuming and cumbersome too. It requires a lot of time and commitment unlike secondary

sources of information. In this study questionnaires and interviews were used to collect primary

data from the respondents. The researcher printed out various questionnaires which were

distributed to the respondents through emails, Royal Post mail and physical distribution to the

respondents. Primary sources of information helped the researcher trace up to date consumer

behavior patterns easily. Primary sources are important because they contain important

information that is updated and agreeable to current research on a certain topic of study.

3.5.6. Secondary

Secondary sources are important for two main reasons. First, they provide statistical

knowledge of past research studies and presents useful theories and frameworks related to the

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topic of study (Bell, 2006). Secondly, they present to the researcher a useful summary of patterns

concerning the study topic and a basis for primary research (Bell, 2006). For this research study,

the secondary sources which were used consisted of books, journals and library sources.

3.6. Research Instrument

The tools selected for a research study have to reflect and align with the objectives of that

particular study. Therefore, a researcher should ensure that the tools serve the purpose of the

study and lead to effective collection of study information in line with the objectives. As such,

time and available resources are vital factors for consideration (Zikmund, 2003). For this

research study, two research instruments were used thus face to face in-depth interviews and

printed questionnaires. A total of one hundred fifty questionnaires were printed and distributed to

all the research participants. The questionnaires were distributed to the respondents through

emails, Royal Post Mail and physical distribution by the researcher. Questionnaires were used in

the study, because they easy to administer and cheap too. Furthermore, questionnaires provide

the researcher with an opportunity to directly interact with the respondents hence ensuring that

the data collected is collected and reliable. The questionnaires and the research developed basing

on the SERVQUAL service quality model of perception and expectation. The research study

utilized an open-ended questionnaire for data collection because it was easy to understand

questions. Bell (2006), argues that an interview is an important data collection instrument which

in most cases helps the researcher to accurate and reliable data. Though, a time consuming an

interview is an efficient way of collecting data.

3.7. Data Collection

The one hundred and fifty questionnaires were printed and distributed to the respondents.

The respondents were required to fill the questionnaires and return it within a period of two

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weeks. For those respondents who could not access the internet on time, the researcher collected

the questionnaires in person. During data collection, online customers were required to respond

to the questionnaire twice: once for perception and twice for expectation. For the online

questionnaires they were distributed online to different customers through a URL titled “Survey

Monkey.” For interviews, the respondents were given an appropriate response time thus 8-10

minutes to accurately respond to the specified research questions. All the respondents were

contacted in advance for preference time for the interviews. The researcher strictly adhered to the

questionnaires and the research questions to minimize respondent confusion as well as ensure

reliability and accuracy of the data being collected. The questionnaires printed were

comprehensive primarily to provide maximum response rate from the involved respondents.

3.8. Questionnaire Design

Open ended research questions were used hence the responses were analyzed in two

different sections. The first section covered the profiles of contacted respondents while the

second section covered the objectives of the study.

3.9. Sample Size and Population

Information for the study was collected from users of electronic commerce, who were

issued with the questionnaires to provide their response. Data collection was conducted both

online and offline. From the total 150 questionnaires, 50 were distributed online, another 50,

were face-to-face interviews and the other 50, were sent to respondents through the postal

service. For comprehensive data collection, the interviews were incorporated in different regions

of England.

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3.10. Sample and sampling technique

Sampling is a technique which involves the selection of a given sample size from a

population target. There are various sampling techniques which can be used to select a given

sample size. For this study simple random sampling was used to select the research participants

in which the respondents were selected without basing on any given qualities as well as

characteristics. The technique was chosen primarily because it is easy to use, cheap to administer

as well as efficient.

3.11. Data analysis

Data collected was analyzed through the use of descriptive statistics. This was done

through the use of figures, tables, percentages and pie charts. Deductive approaches were used in

obtaining data as well as in the establishment of theory. A 0.05 level significance was used to

determine the accuracy and reliability of the data collected as well as that of the overall research

findings.

3.12. Reliability and validity

The researcher ensured that the outcome of the study is valid and reliable for future use in

similar studies by other researchers. In a research study conducted by Bell (2006), he stated in

any research study the validity and reliability of a study depends on the dependability and

legality of the outcomes. This is perceived to be important because it ensues that the study is

genuine as well as all the research objectives and questions have been adequately met as

required. To ensure reliability as well as accuracy of the study, legal and reliable data collection

methods were used. Additionally, all the interviews were immediately recorded for accuracy and

reliability of the respondent’s responses. This was important because it helped the researcher to

minimize any errors resulting from misinformation recording. Data analysis was done accurately

and according to the data gathered without interference of personal views and opinions. In any

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 27

research survey there is always complete and partial response. For this research study, the

researcher ensured that the research questions are answered accurately and effectively as desired.

All the research participants were required to respond to the research questions with the 100%

response. Incase of errors all the, the researcher ensured all the errors have been corrected and

the data gathered truly reflects the views and opinions of the respondents. For low responses, the

researcher was required to repost back to the respondents within a stated time frame of two days.

This ensured that the respondents accurately participate in the research study as well as their

responses are accurate.

3.13. Ethical Consideration

The collected information was confidential hence used only for the intended research

purpose. All the respondents remained anonymous in order to ensure that confidentiality is

maintained. In addition, all the respondents were informed about the research study hence all the

respondents were selected upon their personal consent to partake in the research study without

any form of payment. All the respondents were informed in advance about the purpose of the

study and why they should undertake it. All the participants were given room to answer the

research questions as they desire without fear of reprisal, though all the research questions were

purely designed in relation to the topic of study.

3.14. Data management

Data which was collected was stored using excel system this was important because it

minimized lose o data. After, the data was collected, it was verified to ensure that all the research

questions have been adequately answered and all are relevant to the research study. A codebook

was developed which ensured that all the good research practices have been adequately used.

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4.0. CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION

4.1. Introduction

This chapter covers the data analysis, results interpretation and discussion

4.2. Data analysis, interpretation and discussion

The survey consisted of 100 respondents who were selected randomly and who asked to

respondent to questionnaires provided both online and offline by our researchers in the study.

The researchers distributed the questionnaires the online, postal service and face-to-face

methods. At the end of the survey, all the 100 questionnaires were returned and the data collected

was fully analyzed as below.

SECTION A: PROFILE

What is your age?

Age bracket

Response

Percentage

Under 15 years

15-25 years

25-35 years

35-45 years

Over 45 years

Total

100

Bar chart

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The above bar chart shows the age brackets of the respondents of the study. The study

was carried out in a relatively wider parameter as respondents were randomly selected from

different cities in England. The research was aimed at realizing the mutual relationship that

exists between the online trust and the consumers in the organizational market within England.

From the response of the respondents in the survey, it was evident that it involved teenagers,

young professionals and adults who were rated as regular users of the online services in their

business transactions. Majority of the respondents were in the age bracket of 15 years to 45 years

whom the study identified as regular users of online business activities

State your gender

Male Female

Gender

Response

Percentage

Male

Female

Total

100

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Pie Chart

The pie chart above shows the gender distribution of the respondents who were randomly

selected to participate in the study. The representation ration was almost equal as the male had

55% of the respondents while the female were represented by 45%. The respondents were

selected from different locations in England in order to provide an over view of the development

of E-commerce in the UK economy and business industry at large. This was also aimed at

realizing the online retailing process among the respondents in different locations in England.

Researchers were much interested in finding out the electronic interaction that exists between the

consumer and retailers through relationship development.

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State your city

Location

Respondents

Percentage

London

Leicester

Cardiff

Manchester

Total

100

The table above shows the respondents location in the four selected cities in England.

They were selected randomly from the four cities named above with London registering the

highest number of respondents (40 respondents) in the study. The random selection of

respondents from across the four cities aimed at the researcher’s objective of realizing the level

of trust and loyalty in E-commerce among the retailers and consumers in England.

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What are the major factors which greatly contributes to E-loyalty and trust among online

consumers?

The respondents in the survey pointed out that the E-commerce, internet marketing and

online-shopping have become the commonly used terms in the business industry. All the

business executes and consumers in the organizational market have identified E-commerce as a

potential opportunity in consumer-retailer online purchasing. E-loyalty and trust were pointed

out as key factors that influence online consumers in the process of purchasing products online.

It was pointed out by the respondents that the potential size of the world-wide market is as a

result of the exponential growth of internet adoption by consumers in their routine purchases via

online.

How do businesses and E-marketers achieve consumer E-loyalty and trust?

The respondents viewed E-loyalty as strong concept which has a significant impact on

consumer attitude, brand and product loyalty in the business industry. It was evident that the

companies ought to work on strategies that aim at reducing the differential advantage that exist

in the leading brands in the market, rise the differentiation of the own brands and encourage

spurious loyalty from all the consumers who prefer online purchasing. Business and E-marketers

have a crucial role to play in the market as they must understand the levels of consumers’ trust in

order for them to understand the e-consumers’ behavior and decision making in the market.

Respondents also stated that the consumers determine the cognitive value of service basing on

their experience with the service delivered previously after transactions.

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In your own opinion in E-loyalty and consumer trust an important aspect in Ecommerce?

Response

Percentage

Strongly Agree

Partially Agree

Neutral

Partially Disagree

Strongly Disagree

Total

100

E-loyalty and consumer trust were pointed out by majority of the respondents (80) in the

survey as vital aspect in the online E-commerce. Customer trust was defined as the beliefs that

are held by the online consumer as regards the behavior of the e-supplier currently and in the

future. The main of having trust between the supplier and the consumer is that it encourages

online purchasing. The respondents said that trust has also affected the attitude of customer’s

attitudes towards doing using e-commerce. In addition, the respondents said that loyalty has

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 34

contributed to the continuation and maintenance of a valued relationship which is brought about

by trust.

As a consumer which organizational E-commerce aspects or elements do consider to be

important?

In response to the above question, respondents pointed out different views regarding e-

commerce aspects that they value as being vital towards online transactions. Most of the

elements pointed out had been previously highlighted in the SERVQUAL service quality model

of perception and expectation on consumer behavior on websites. Key aspects pointed by

majority of the respondents were reliability of the transactions, responsiveness, security,

tangibility, assurance and confidence both on the company and consumers. The above aspects

play a crucial role in the assessing process of consumer perceptions and expectations in relation

to the quality of service delivered within the trading cycle. At this stage, the level of service

quality is highlighted basing on the gap between perceived and expected services to the online

consumers. Tangibility as an aspect revolves around the physical facilities, the equipment and

personnel appearance within the company. Reliability as an element highlights the overall

performance among the company’s personnel towards service dependably and accurately that

facilitates online activities among the consumers. Respondents agreed that responsiveness in a

company shows the willingness among the personnel to service delivery to customers promptly.

Customer’s assurance promoted the knowledge and courtesy among the employees and their

aptitude that warrants them trust and confidence towards their clients. The mentioned above

elements provides an overview on the customer perception on the service/product that is being

offered, the company’s performance levels as viewed by the online customers, views and

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 35

comments of consumers on services and products on sale and the firm’s employee impression

towards customer expectations and satisfactions in the market.

To what extent do you think the following factors would possibly make you purchase a

product or use a service online from a particular organization or company?

Products quality, Price, Security, Convenience, Service Quality, Product Quantity and

experience

Response

Percentage

Not important

Not at all important

Neutral

Fairly Important

Very important

Total

100

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From the table above, it was evident according to the respondents of the study that the above

mentioned factors play a crucial role towards the consumer’s decision on any purchase in the

market. 60% of the respondents stated that Products quality, Price, Security, Convenience,

Service Quality, Product Quantity and experience were very vital factors on the consumer

decision both in the UK and across the globe. Over 70% of the respondents agreed that these

factors have a responsibility in the purchasing decision of the consumers over the internet.

Security and convenience were pointed out by the respondents are the most vital aspects that

determine the consumers purchasing capability as security over the internet has been a major

concern to the customers over a longer period. Price and service quality was rated as the second

most aspects considered by the customers as they play a relatively important role on the

consumer decision on the online purchasing. Product quality, experience and product quantity

were rated as third elements on the line of decision making among the consumers in the market.

What are the issues which manipulates trust among consumers?

The respondents argued that the main aim of public relations is to manipulate the public

opinion towards products and services by customers in the organizational market. This is to say

that most of what we read, see and hear is in essence just PR. Most of the advertisements are not

bad; however, they normally use different tactics so as to manipulate customer behavior. But

most of the time we don’t realize that we are not being manipulated. Most of the respondents

agreed that the advertisements in the media and what we hear from others have affected their

trust and loyalty towards products and services. Advertisements are almost everywhere, in web

pages, TV, Bill boards just to mention but a few. More often than not, we view such

advertisements as a nuisance because they interrupt the normal flow of a program. However,

there is the notion by the respondents that these ads play a role in influencing our purchasing

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 37

power because we assume we are in total control of what we chose. All in all, advertisements

have an impact and have succeeded in influencing our purchasing power and attitudes towards

certain products and services. Therefore, how a product is advertised will influence consumer

behavior and attitude of the consumers. By influencing the attitudes and behavior of the

consumers, it will also end up influencing their loyalty towards a product or service.

Respondents admit that advertisements exist because companies have products that they want to

sell, so they have to advertise so as to make it known about it so that at the end of the day, the

customer can buy it. It is also important to note that we as customers absorb what we want and

not what is being said to us.

What is your opinion on the paths through which E-loyalty could be improved by various

companies and E-marketers online?

Respondents of the study agreed that there is need for ensuring e-loyalty among all the e-

marketers over the internet. All the companies ought to ensure that they work towards increasing

customer loyalty towards their products and services. In order to this, some of the following

ideas can be put into practice by companies so as to earn e-loyalty among customers.

First and foremost, the company should always thank the customers for doing business with

them either in writing by word of mouth. This will be in regard to the product or service being

offered. For example, those products that cost more are appreciated in writing and those that cost

less should be appreciated by word of mouth. Secondly, it is important as a company to

constantly stay in contact with both the past, existing and new customers. In so doing, they will

also remember you in future. The company can do this by making phone calls, sending note or

post cards and emails. Companies should also consider maintaining personal contact with its

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 38

customers. As a company, you should consider giving the customer more than what they expect

by anticipating their needs and fulfilling them.

For instance, answer their questions long before they ask. The thing that a company can

do to win the loyalty of the customer is by taking time to listen what they are saying and make an

effort of asking if they do not volunteer. It is also vital for the company to mind the manners and

language they use. It is advisable to use words like please and thank you. This makes the

customer feel appreciated and wanted. Ensure you keep time when it comes to attending to

meetings. It is also important to return email messages and phone calls from customers. It is also

important to be consistent in delivery of products and services. It’s vital to make promises that

you can satisfy and fulfill. It is better to promise to do something in a week and then deliver it

within two days than to promise to deliver within two days and end up delivering in a week. As a

company it is good to share information with the customers freely. This will make them

appreciated and valued. Issue information; give articles that might be of importance to the

customers. It is important as a company to send back business to a customer where possible. It

was also suggested that the companies selling over the internet should contact demonstrations

and explanations as to how their products and services work is essential after selling a product or

when giving a service to a customer. Enjoy yourself when dealing with the customers while

considering them as your second or extended family.

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 39

5.0. CHAPTER FIVE: DISCUSSION

5.1. Introduction

This chapter in depth discusses the research findings

5.2. Discussion

It is widely known that e-commerce is among the important aspects of running a business

successfully. Through the use of e-commerce, managers have realized that they can reach many

consumers at the same time from different locations in the world. The use of e-commerce has

made businesses to be effective and efficient because customers can get the products in time.

One of the mechanisms that guides and enhances service quality and trust in e-commerce is trust.

Trust is important because the consumer and the producer believe in each other hence doing

away with the fear of being conned or stolen from. Therefore, the consumer and the mansager

should try as much as possible to build trust among them as this will ensure good business ties.

The manager should also ensure that the websites they are using are worth to be trusted. This will

make the website to have good conditions and those using it feel a lot more comfortable when

dealing with all kinds of businesses. From the research survey conducted, many of the

respondents agreed uniformly that the emergence of E-commerce has revolutionized the business

industry as nearly all the activities have been transformed into new shapes. Online shopping has

made it efficient and effective for consumers and market retailers to transact freely with the

manufacturers in the market.

The respondents stated that the use of internet in the E-commerce has led to many

concerns in the E-loyalty and trust and the factors that manipulates trust among the consumers

and retailers while operating in the organizational market. Most consumers across the globe have

developed interest in E-commerce a fact that has made the internet more attractive to all the e-

business and e-retailers in the market. However, several factors were pointed out by respondents

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 40

which played a vital role in the contribution of the consumers E-loyalty and trust in their online

activities. They notably pointed out that these factors are ever changing as they embrace e-

commerce that in turn influences the efficiency, service and support provided while transacting

online. E-customer loyalty in cyberspace was pointed out by the respondents as undergoing

evolution as compared to the previous traditional methods of marketing products. There are

numerous changes on how the products are driven in the market, how the marketer controlled

concept on distribution, overall consumer control and the technological concept in the business

industry. In this case, the market is facing the challenge of understanding the drivers and

dynamics regarding consumer loyalty in the online purchasing. The major factors that were

pointed out in the survey include price, security, trust, convenience and experience. Price was

pointed out clearly among all the respondents in the study as they believed that the ‘stronger the

perceived price/value for the consumers in e-retailer, the greater the attitude of purchasing’. The

rapid rise in the use of internet by consumers has led to the question on the online exchange rates

on currencies being used in transacting business at relatively lower prices at the outlets.

Respondents stated that the believe the primary function of various online stores is to provide

product related information such as product prices and price discounts, which enables the

customer’s search and access to the costs. Price is also viewed as the primary purchasing

determinant for all the online buyers, followed by price incentives that acts as motivation to the

e-shoppers in the market. However, it was noticed that online prices have risen over time which

was the key concern for the respondents. Security is the second factor that greatly contributes to

E-loyalty and trust among online consumers. It was evident that majority of the respondents

believed that consumer perception on the internet security positively influences the customer’s

trust while conducting their purchases.

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 41

Online security has been a concern to majority of the online consumers as it had been

considered that lack of security inhibits the adoption of on-line purchasing behavior.

Respondents said that online trust is developed basing on the confidence as well as relationship

with the company or the business which the consumer constantly interacts with. Purchase on the

internet among the respondents was stated by many respondents to be dependent on existing

relation as well as consumer willingness to take up the risk. The respondents stated that it was

important for a consumer to have proper knowledge on all the dimension of trust while

transacting on-line. E-commerce relies also on the consumer reputation and size in the e-seller

organization. Trust was pointed out as an aspect that increases the consumer’s intention to

purchase a product online from various companies using their web pages. Most of the

respondents perceived that company E-loyalty as well as trust was positively related to

consumer’s long term purchase as well as re-purchase relationship.

Convenience is the third factor that the respondents pointed out as a determiner in the E-

loyalty and trust among online consumers in England. They agreed that high perceived

convenience on an E-tailer web page positively influence the consumers’ attitude to purchase

products online. Convenience was viewed as the primary factor that affects e-consumers buying

decision as this demonstrated that e-shoppers are convenience oriented. In the study, two aspects

of convenience were pointed out namely e-satisfaction and ease of use. E-satisfaction revolves

around the site designing and convenience as their role is vital towards the purchasing decision

of a consumer. Ease of use was closely linked with the consumer time saving as well as decision

on whether to purchase. It was concluded that e-customer satisfaction was an essential criteria

which greatly affected consumers purchasing attitudes as well as their perceived e-retailer

attitudes. The last factor was the experience that the consumer had in the online purchasing.

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 42

From the study conducted, it was also evident that the customers’ favorable and

unfavorable experiences, with the inclusion of their positive and negative emotions on a given

brand could impact on the perceived service quality in the industry. The respondents also argued

that the marketers and businesses should take into consideration all the aspects of customer

perceptions on service quality as to a given extent; it can be influenced by the degree of their

prior experience with a particular service. There is all the need of both the businesses and

marketers to also work closely with the customers by engaging in different activities that occur

before and after transacting. Some of these activities may include thanking the customers for

transacting with their company as these aids in the valuation of the product/service; staying in

close relationship with both existing as well as current customers through note cards, phone calls,

newsletters and emails among others; providing quality services to their customers more than

their expectations; listening to customers’ views and propositions regarding their products and

services; paying attentions to all the customer demands and making realistic promises to their

clients in the market; sharing product/service information to the customers and providing

referrals to them in case of any.

From the study, conducted many of the respondents were of the view that, loyalty in E-

commerce was a concept defined as the continuous purchase of the same product from the same

website. From the research survey trust and loyalty were highly regarded as key concept in any

online business because they were positively related to organizational high volume of sales as

well as profits. According to the research findings, it was quiet clear that if an organization has

established itself as a trust worth company online, then it is bound to attract more sales and new

customers towards their individual organizational products as well as services. When it comes to

e-commerce, the loyal customers are highly valued and most of the e-retailers are looking for

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 43

ways and means of building loyalty in customers. E-loyalty and consumer trust was closely

linked with the consumer’s attitudes on the online security, their privacy and legitimacy towards

all the online vendors. The respondents also raised their concern on the quality assurance that

exists in all the aspects involved across the cultures in the context of e-commerce. Despite the

higher percentage of support by the consumers, there was concern for the customer’s attitudes

towards online and its impact on the website trusts in the industry. They stated that in some cases

the customers are affected by different existence in the cultures that are observed on different

online sites.

From the research findings, the issue of trust is essential in everything that you do from

the internet and E-business. This trust should be real and big so as to win the loyalty of the users.

This will make the consumers and customers to also be loyal to you and the website in use. How

do managers and consumers achieve this trust? This trust can be achieved by ensuring that the

consumer’s data is kept safe and private. In so doing, it will help both the customers and the

managers to trust each other as they are sure that whatever information they provide is safe. It is

trust that will sky rocket the use of e-commerce hence more sales. The other thing that can be

done so as to be successful when it comes to e-commerce is to know how the transactions take

place. This is very important because both parties are aware of what goes on between the

transactions. Both parties should be aware of all the documents and procedures that are used in e-

commerce. This will also enable customers and suppliers can access the websites database to

know when the goods will reach him in the event they have placed an order. The manager can

also use the suppliers to supply the products directly to consumers hence saving time and

resources. Not being aware of such transactions might pose a threat because their money can be

blacked out by hackers. To solve this problem, the company and users must come up with secure

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 44

ways of sending and receiving money. At the moment, it is appropriate that the managers

educate the consumers of how these transactions work. In doing so, it enables users to be more

careful when dealing with e-commerce.

From the research findings, trustworthiness and customer loyalty was a concept

considered to be succeeded through the liberation of a constantly superior customer familiarity.

The internet happens to be an influential tool for reinforcing relations, however the basic rules as

well as rewards of structuring trustworthiness have not transformed. By encouraging recur

purchases amid a centre of profitable clientele companies can commence a twist of economic

compensation. This loyalty consequence allows them to recompense their workers more kindly,

provide financiers with better cash flows, as well as reinvest more assertively to improve further

the value conveyed to clientele. What is altering is the speed on which these financial regulations

are working on, and the haste with which corporations must advance their goods and services in

case they expect to keep clientele loyal. Customers’ patience of discrepancy and unevenness is

rapidly fading. During the past, expedient store locations, hostile sales forces, as well as a wide-

ranging information lack shielded corporations from the punishments of providing something

less in comparison to the best produce and service excellence, customers were trustworthy by

requirement, not choice. Appreciation to the net those screens have been taken apart. Customers

can contrast suppliers in genuine time, every time.

The research findings indicated that building client trustworthiness is not nowadays

merely one of numerous ways to increase profits. Nowadays it is necessary for survival. The

research revealed that lack of spotlight makes building trustworthiness much trickier. The

respondents stated that many of the consumers want Websites which are simply premeditated,

quick to load, as well as easy to utilize, however the wider the selection of clientele a company

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 45

tries to supply, the more difficult its site unavoidably becomes. While attempting to be

everything to all persons- to put up all intensities of technical proficiency, all service desires, all

cost sensitivities, as well as all quantities of brand predilection- it ought to add constantly new

characteristics and functions. When it does this, its site turns out to be sluggish to load as well as

more complex to use. Customers assemble in, however perplexed with what they discover, they

hardly ever return which was described by many respondents as an arbitrary approach that client

undermines profitability and client acquisition.

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 46

6.0. CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS

5.1. Introduction

This chapter summarizes the research findings and the recommendations for the research study.

5.2. Conclusion

According to the results collected from the survey above highlights clearly on the

consumer’s perspective towards the online purchasing capability and how it impacts on their

daily activities in the society. They pointed out the following factors as key contributors to their

participation in the online purchasing. They included Products quality, Price, Security,

Convenience, Service Quality, Product Quantity and experience. The consumer’s convenience

and security in the e-commerce industry in combination with the consumers’ attitudes on

purchasing were pointed out by the respondents as the most valuable factors that affect the

customers’ decision on purchasing. Convenience and security were stated as the primary

motivators to the customer’s decision on all the online purchases in the market. However, they

were in agreement that all these factors contribute to the E-loyalty and trust in the online

transactions among the companies and consumers. Online security was highlighted as a major

concern by all the respondents of the study. They argued that lack of security inhibits the

adoption of on-line purchasing behavior. It was agreed that the on-line trust was being developed

online as e-buyers’ trust was dependent on confidence with online company which they were

transacting on either product or services. The online purchasing was closely linked with the

existing consumer and business relationship. Trust was termed as the consumers’ willingness to

take risks and be loyal to the company

All the respondents called upon all the clients conducting purchases via internet to

acquire proper knowledge on all the dimensions of trust before engaging in the purchasing

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 47

process. The consumer reputation and the size of the e-seller are some of the key determiners in

the e-commerce. It was agreed that online trust increases the consumer’s intention to purchase a

product/service online from various companies using their web pages. In the survey conducted,

the respondents perceived that online business trustworthiness and E-loyalty were positively

related to customer’s purchasing and re-purchasing intentions. Majority of the respondents

notably pointed out that these factors are ever changing as they embrace e-commerce that in turn

influences the efficiency, service and support provided while transacting online. E-customer

loyalty in cyberspace was pointed out by the respondents as undergoing evolution as compared

to the previous traditional methods of marketing products. They called for installation of user

friendly and easy navigable website pages by all the companies contacting their activities

through the e-commerce. It was evident that this was a vital requirement as 90% of the

respondents argued that a user friendly web page site was vital on the firm’s online transactions

with its loyal and new consumers in the market.

The study proved that trust is an important aspect that boosts the performance of the

company as it has inspired and convinced all the online vendors who transact on routine basis

over the internet. The provision of comprehensive explanations on the firm’s products and

services was important as they get the capability of navigating through the user friendly software

and website pages. These services ought to be implemented by the use of the modern technology

in their upgrading procedures through the internet. Survey proposed for establishment of a

mutual cooperation that would boost flexibility and the tracking system on all the online

purchases in the industry. It is the expectation of the customers that the company IT experts will

ensure the minimization of risk and institute proper measures that would facilitate the online

activities as the customer-technology relationship is imperative. IT experts in the company are

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 48

expected to take control of the current astonishing occurrences like fraud, modification of

customer details, card number as well as other related internet security threats. These are some

of the factors that were pointed out by Chiu (2006) on his study on the internet purchasing.

E-commerce is currently rated as one of the development that has revolutionized the

market industry as the mode of conducting businesses has been fully transformed from manual to

online via the internet with the aid of modern technology. This in turn has resulted to creation of

a competitive environment as more rivalry among the companies struggling for the available

consumers over the internet. This has resulted to the focus on the customer retention and growth

among the companies with the aim of retaining the competitive nature of the market.

Establishment of trust and good relation on consumers has evidently seen as vital in the company

involvement in e-commerce. Other factors that influence the consumer decision on purchase

include age, gender, education, income and culture.

5.3. Recommendations

The paper has mainly focused on the customer retention in the organizational market. It

has been revealed that the E-loyalty, trust and service quality are important concepts in E-

commerce which each and every business or company involved in online business should strive

to achieve. E-commerce has in the recent days been one of the most successful ways of doing

business. It has proved to be a necessary component for any business that wants to succeed hence

important for various companies to adopt as business mode. This is because it less costly and can

reach a wide range of people at the same in different locations. However, for it to be more

successful, customer loyalty and trustworthy is very important. By following the above

mentioned ideas, the company is bound to win the loyalty and trustworthiness of the customers.

In e-commerce, it is important to note that a little goes a long way in establishing this cordial

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 49

relationship between customers and the company. This kind of a relationship is necessary for the

business. Therefore, each effort in trying to make the customer effort is highly welcomed as this

will ensure that customers are loyal to the company. Remember as a company that it is the

customer who is making you run the business. Additionally, since this paper focused on

affiliation amid trust and loyalty in e-commerce, it is of great value if future research studies are

conducted on the concept of loyalty in e-commerce and how it significantly contributes to

organizational success as well as profits.

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 50

Appendix One: Questionnaire

What is your age?

State your gender

State your city

What are the major factors which greatly contributes to E-loyalty and trust among online

consumers?

How do businesses and E-marketers achieve consumer E-loyalty and trust?

In your own opinion what are the mechanisms which guides and enhances service quality and

trust in e-commerce?

Is E-loyalty and consumer trust an important aspect in Ecommerce?

As a consumer which organizational E-commerce aspects or elements do consider to be

important?

To what extent do you think the following factors would possibly make you purchase a product

or use a service online from a particular organization or company?

What are the issues which manipulates trust among consumers?

What is your opinion on the paths through which E-loyalty could be improved by various

companies and E-marketers online?

THE AFFILIATION AMID TRUST AND LOYALTY IN E-COMMERCE 51

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