An examination of the antecedents of e-customer loyalty in a confucian culture: The case of South Korea

Abstract

As the Internet is posing revolutionary changes to customer service and the way customers interact and purchase from businesses, loyal e-customers are crucial for the long-term survival and profitability of a business. Driven by high connectivity, reach and richness of information in today's global business environment, the task of retaining and creating loyal e-customers calls for an appreciation of cultural factors and their impact on e-customer service and loyalty. Specifically, this study examines the impact of Confucian culture on e-customer loyalty in South Korea. Since no research has yet examined the link between Confucian values and e-customer loyalty, the study proposes a conceptual model for empirical analysis by drawing on insights from Hofstede's cultural dimensions and previous studies on e-customer loyalty in European contexts. The main results show that high power distance in Confucian culture is positively associated with affiliation. But this high power distance in Confucian culture is moderated by marketing activities that lead to lock-in. This indicates the profound influence of collectivism in Confucian culture and emphasises the importance of referral and community participation in increasing stickiness and hence loyal e-customers.