Abstract
Orientation: Considering the shifts in online buyer behaviour in the past few years, e-buyer satisfaction and loyalty should be at the forefront of any business strategy.Motivation for the study: Despite the confluence of transaction cost economics (TCE) and marketing, which predominantly appeared in relationship marketing and international marketing studies, there is a scarcity specifically of studies of the convergence of online retailing and TCE.Research purpose: This study therefore advances the convergence of TCE and marketing research to describe the influence of online retail transaction cost variables (specifically, uncertainty and asset specificity) on e-buyer satisfaction and loyalty. In this study, uncertainty in the TCE is linked to online price and risk reduction, whilst asset specificity refers to special offers online.Research approach/design and method: A quantitative, descriptive research design was followed, and 355 responses from e-buyers were analysed through structural equation modelling.Main findings: The key findings of the study show that reducing uncertainty is the strongest predictor of e-buyer satisfaction and loyalty.Practical/managerial implications: This implies that online retailers need to focus on developing marketing and online retail strategies that, from an economic perspective, unambiguously communicate all terms and conditions of the costs involved and provide alternative, safe payment options.Contribution/value-add: These results further imply that TEC could be refined to ensure e-buyer satisfaction on loyalty from an online retail perspective and to focus on the role and relevance of uncertainty and asset specificity.
Highlights
OrientationThe marketing field has broadened the reach of transaction cost economics (TCE) to highlight research challenges and opportunities to be addressed. Williamson and Ghani (2012) recall Erin Anderson’s early recognition of TCE’s implications for marketing inquiry in the 1980s and beyond in her seminal work that combined the two fields
These findings support the suggestion by Rita, Oliveira and Farisa (2019) and Hossain (2019) that the TCE is applicable in various contexts and that reducing uncertainty, for example, and offering customised offerings through a relationship marketing programme can increase customer satisfaction and loyalty
This study provides online retailers with important insights into how to increase customer satisfaction and loyalty, which is essential for business growth and profitability (McCole et al 2019)
Summary
OrientationThe marketing field has broadened the reach of transaction cost economics (TCE) to highlight research challenges and opportunities to be addressed. Williamson and Ghani (2012) recall Erin Anderson’s early recognition of TCE’s implications for marketing inquiry in the 1980s and beyond in her seminal work that combined the two fields. The marketing field has broadened the reach of transaction cost economics (TCE) to highlight research challenges and opportunities to be addressed. One aspect of marketing that has received scant attention in this literature is the applicability of TCE in online retail. The Internet has directly affected retailing practices and customers’ e-buyer behaviour. It is especially the way in which customers interact with and respond to retail offerings that have been profoundly modified (Mulky, Sarkar & Mukherjee 2019). With Internet penetration in South Africa in 2019 at 81%, more consumers have access to online retail stores (Gilbert 2019). The growth of the Internet through smartphones has increased the use of e-commerce amongst rural consumers https://www.jefjournal.org.za
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