Determinants of customer satisfaction and loyalty in e-commerce settings: an emerging economy perspective

Abstract

E-commerce is one of the rapidly mushrooming industries in the world. The rapid development of information technology has granted numerous opportunities for e-commerce players as well as online shoppers. In this era of digital-marketing, satisfying customers becomes one of the fundamental goals of the e-retailers. Specifically, earning the satisfaction and loyalty of consumers and sustaining in the business is an arduous challenge for e-retailers in this competitive market. Additionally, the influencing factors that drive the customers' purchase decisions in the e-commerce platform are also an essential consideration. This study explores the determinants of consumer satisfaction and loyalty in an e-commerce environment. The researchers propose website service quality, privacy, product quality, price, and timely delivery as predominant determinants of e-satisfaction and e-loyalty. The final sample size was a total of 230 online buyers. Hypotheses were tested using structural equation modelling (SEM). The findings indicate that the price, product quality and timely delivery have a positive effect on e-satisfaction as well as e-loyalty. However, website service quality does not affect e-satisfaction and e-loyalty. The study infers that privacy affect only e-satisfaction. Correspondingly, the study reveals that there is a direct and significant impact of e-satisfaction on e-loyalty.