Effects of Online Shopping on Customer Loyalty: A Case Study on Ebay

This case study explores the effects of online shopping on customer loyalty through a case study on Ebay. It investigates the basic concept of online shopping, the impact of online shopping on customer loyalty, the importance of online shopping in increasing sales and brand image of Ebay, and the relationship between online shopping and customer loyalty. The research design includes descriptive research and data collection through surveys.

Case study
“To investigate the effects of online shopping on the customer loyalty. A case study on Ebay”
Introduction
Online shopping introduce as an effective process
whereby clients directly purchase services or goods
from a seller. It is more essential and important for
both company and customer by enhancing its
productivity and performance. For this report,
given organisation is EBay which is an American
multinational e-commerce organisation. Company
mainly specialise in providing of online shopping
services to the customers. Such type of services
help an enterprise to maximise trust and loyalty of
customers and also support them to retain long
term relation with them. This proposal includes
research aim, objectives, questions, literature
review and different methods of data collection.
It is identify as a first chapter of research project
which includes entire detail about the topic and
company. Different points included in this part are
determined as under: Background of the
research: Online shopping refer as an essential
process of searching for an buying services and
goods over the internet via the application of web
browser (Online shopping – definition and
meaning, 2018). Ebay is a multinational e-
commerce company and provide online shopping
services to its clients. It was founded in 1995 by
Pierre Omidyar in San Jose, California, US.
Therefore, online shopping is essential for the
business entity to enhance customer loyalty and
retain long lasting relation with them.
.Thus, it is also essential for the company to improve
their brand image and increase sales.
Rational of the research:
Main reason behind choosing this topic is to analysis
the impact of online shopping on customer loyalty.
Thus, it is essential and important for the customer
because there is no crowds, no pressure and provide
more variety at reasonable price (Hsu, Chang and
Chuang, 2015). It will also support an enterprise to
enhance their brand image and achieve better results
within predetermined time period.
Aim of the research:
“To investigate the effects of online shopping on the
customer loyalty. A case study on Ebay”
Objectives of the research:
 To investigate the basic concept of Online
shopping.
 To identify the impact of online shopping on
customer loyalty.
 To analysis importance of online shopping in
increasing sales and brand image of Ebay.
 To analysis relationship between online
shopping and customer loyalty.
Questions of the research:
 What are the basic concept of Online
shopping?
 How Online shopping impact on customer
loyalty?
 What is the importance of online shopping in
increasing sales and brand image of Ebay?
 What are the relationship between online
shopping and customer loyalty?
Literature Review
Concept of Online shopping.
According to the Bilgihan, (2016), it is an
electronic commerce in which a customer is able to buy
the products and services online with the help of a
browser and application. The trend of online shopping
has increased in a number of years globally. This is
because online shopping provide various benefits in
comparison with the traditional shopping. To start
online shopping a customer has to visit the website or
application of the service provider. The customer
requires, password, internet, payment options either by
card or thorough cash on delivery. These are the
essential of online shopping to a customer.
Impact of online shopping on customer loyalty.
As per the point of view of Verhoef, Kannan
and Inman, (2015), the expansion of online shopping
has increased a trust among its customers. The
reliability of customers through online shopping has
increased. In the starting phase of online shopping
customers does not rely on online shopping but at
present situation customer relies on online shopping.

Research philosophy: In this topic, interpritivism
philosophy has been used here which would helpful in
evaluating the further results to arriving at the suitable
conclusion and results. Apart from this, positivism
philosophy is not suitable for carrying out the research
further.
Data collection: For the collection of data, there are
basically two types of data collection namely primary
and secondary data collection. In context with primary
data collection, questionnaire will be made which is
helpful in getting an appropriate data and information
from the respondents over this topic (Jiang, Jun and
Yang, 2016). On the other hand, secondary data
collection which includes books, magazines and
journals will be used to get suitable information over
an impact of online shopping on customer loyalty.
After the data collection, brief will be done to arrive at
an appropriate results and conclusion over this topic.
Data analysis: An analysis of collected information
will be perform with the help of thematic analysis. In
this topic, various themes would be made which will
help in carrying out the research effectively and
properly (Pereira, de Fátima Salgueiro and Rita, 2016).
Such themes will be made for each and every question
mentioned in the survey, which will the researcher in
getting in better and effective analyse of an information
to arrive at the common conclusion about the impact of
online shopping over the customer loyalty.
Limitation: There are various limitation which is going
to be witnessed in this research study. One of the major
limitation is lack of time. This is because topic is vast
and information is huge to analysis and arrive at the
common conclusion in the possible time and duration.
With the help of this reliability, customer is able to
transact over online platform without any
hesitation. When customer gets loyal with online
shopping, it uses this service on frequent basis.
Shopping experience also increases as the trust
increases between customer and online shopping.
Importance of online shopping in increasing
sales and brand image of Ebay.
According to the Al-Debei, Akroush and
Ashouri, (2015), online shopping is considered to
be as the advanced technology in purchasing of
goods and services. If a company is not providing
thus service than it would be a huge loss to its
bonding with customers. Online shopping not only
provides facilities to customers but also it helps
Ebay to develop its business. If Ebay is provident
its services online than it would give it a chance to
stand among its rivals. With the sue of online
shopping, Ebay also increases the experience of its
customers which creates a greater opportunity to
increase its business in future.
Relationship between online shopping and
customer loyalty.
According to the Hsu, Chang and Chuang,
(2015), as the online shopping has increased its
way in market the issues also increases in it. The
technology friendly person also resolved those
issues so that they can win the trust of their
customers in this new advanced way of shopping.
When a customer is purchasing a product online the
biggest threat is of fraud. If a customer is providing
the assurance of legal products and payment methods
it will increase trust amongst the customers and thus
it is the relationship of online shopping to customer
loyalty.
Research design: This entire research depends on
the researcher design which is being carried out by
an investigator for the identification of an impact of
online shopping on customer loyalty. There are
basically three types of the research design namely
descriptive, exploratory and experimental (Sharma
and Lijuan, 2015). For this topic, descriptive
research is more suitable and relevant to get over
conclusion over this topic to understand impact of
customer's loyalty.
Survey: It is another important and essential method
for collecting accurate and appropriate amount of
information from the respondents. There are two
types of sampling namely random sampling and non-
random sampling. For this topic, non-random
sampling will be taken into the consideration. In this,
convenience sampling will be used with respondents
of 30 people to be surveyed and interviewed. After
this, classification and analysis of an information
will be perform to arrive at the common results about
the topic.