Relationship between E-Commerce Strategies and Customer Loyalty among Multinational Enterprises in Kenya: A Case of Jumia

Abstract

Purpose: The purpose of this study was to examine the relationship between customer orientation strategies and customer loyalty among multinational enterprises on ecommerce platforms in Kenya. The study specifically focused establishing the relationship of e-marketing, e-service quality and e-trust on customer loyalty among Multinational Enterprises in Kenya.
 Methodology: The research design adapted in this study was descriptive research design. The population comprised of 1378 of ecommerce managers and ecommerce users. The study employed Taro Yamane’s formula to derive a sample of 310 managers. Primary data was collected using questionnaires on a Likert scale of 1-5, based on the three research questions. Statistical Package for Social Sciences (SPSS) software was used to analyze data using mean, standard deviation, frequency distributions, Pearson coefficient of correlation and simple linear regression analysis techniques. The results were then presented in tables and figures.
 Findings: In terms of influence of e-marketing on customer loyalty in Multinational Enterprises in Kenya, there was a statistically significant positive relationship between e-marketing and customer loyalty, (r=0.519, p<0.05). Linear regression analysis showed that 27% of variability in customer loyalty was explained by integration of e-marketing, which statistically and significantly had a positive effect on effective customer loyalty R2 = .27, 𝛽=.524, 𝑡= 10.419, 𝑝 < .05). In terms of influence of e-service quality on customer loyalty among Multinational Enterprises in Kenya, there was a statistically significant positive relationship between e-marketing and customer loyalty, (r=0.514, p<0.05). Linear regression analysis showed that 26.5% of variability in customer loyalty was explained by integration of e-service quality, which statistically and significantly had a positive effect on effective customer loyalty R2 = .265, 𝛽=.629, 𝑡= 10.147, 𝑝 < .05). In terms of the influence of e-trust on customer loyalty among Multinational Enterprises in Kenya, there was a statistically significant positive relationship between e-trust and customer loyalty, (r=0.597, p<0.05). Linear regression analysis showed that 35.6% of variability in customer loyalty was explained by integration of e-trust, which statistically and significantly had a positive effect on effective customer loyalty R2 = .356, 𝛽=.707, 𝑡= 12.505, 𝑝 < .05). In conclusion, Jumia uses various technologies to make e-commerce lively to customers.
 Unique contribution to theory, practice and policy: The study recommended that Jumia should invest more in personalized and targeted marketing strategies, focus on enhancing their website and mobile app interfaces to make them more user-friendly and intuitive. In addition, Jumia should prioritize building trust with their customers by ensuring the security of their personal and financial information. It is also recommended that for Jumia Kenya should implement security measures and communicate them effectively to customers to reassure them of the safety of their data.