Abstract

The Way for Maintaining Customer Loyality and Using of E-Commece in Developing Company Such as Small And Medium Enterproses. This paper aims to analyze the way of maintaining customer loyalty of company in developing their business. One of the way is providing of customer loyalty program with the reward point given to their customer. Beside that, this study analyze also the usefulness of e-commerce in developing Small and Medium Enterprises. Definitely ,the use of e-commerce able to drive business of small and Medium Enterprises quickly and promptly. Involving e-commerce in developing small and medium enterprises (SMEs)is very crucial and important. There are some potential benefits derived from the strategic use of e-commerce provide: i) Enhanced customer services, ii) Reduced transaction costs, iii) Increased business efficiencies, iv) Improved operational flexibility, v). Obtaining competitive advantages and vi). Improved product and service delivery. . This study use Descriptive Qualitative Analysis Method based on the observation of the current situation of e-commerce usefulness in developing company such as small and medium enterprises and the way of maintaining customer loyalty in business development This study shows that both low customer awareness about point-based reward programs and, not surprisingly, low redemption rates. More specifically, lack of awareness about the reward points programs and the redemption procedure was shown. The important conditions positively affecting redemption of reward points were found to include awareness of the reward point program, a positive attitude about the incentives, and average frequency of credit card usage. Also, redemption rates were higher for cards that had been issued more recently. This study find also that e-commerce has big part role in developing Small and Medium Enterprises. In this, e-commerce can develop promotion and selling volume of Small and Medium Enterprises by the smart electronic mechanism. DOI: 10.15408/ess.v5i1.2331

Highlights

  • OF STUDYMaintaining loyalty is very important for companies to drive their business.In order to maintaining their customer, many companies provide the loyalty program

  • This study is a small step towards understanding the awareness and redemption levels of users of credit cards that feature point-based reward program

  • While such programs are frequently referred to as loyalty programs, in actual fact they appear to have less to do with building customer loyalty than with attracting new customers and encouraging greater card usage

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Summary

BACKGROUND

Maintaining loyalty is very important for companies to drive their business. In order to maintaining their customer, many companies provide the loyalty program. In this loyalty programs usually provide rewards based on cumulative purchases, and are an explicit attempt to enhance customer retention and increase product usage They serve to attract new customers with the promise of additional benefits. The slow uptake of ecommerce by SMEs has been observed and subsequent research determining the factors that inhibit e-commerce adoption has been explored These barriers include a lack of financial and organisational resources, a lack of support from management, a lack of technology skills and experience and a concern about security and privacy (Lawrence & Keen, 1997; Tan & Teo, 1998; Tan & Konstapel, 1998; Purao & Campbell, 1998; Corbitt et al, 1997; Carroll 1999). What the usefulness of e-commerce for Small and Medium Enterprises development?

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