Effectiveness of Customer Satisfaction on Customer Loyalty for E-Commerce Businesses

Running head: DISSERTATION
Effectiveness of Customer Satisfaction on Customer Loyalty for E-Commerce Businesses
Name of the Student:
Name of the University:
Author’s Note:

1DISSERTATION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ......................... whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the............... [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
The aim of the research is to investigate the effectiveness of customer satisfaction on customer
loyalty in e-commerce business. The success of the e-commerce businesses is highly dependent
on the existing customer base because they can rely and count on the return on `the investments.
it is important for the e-commerce businesses to take adequate measures for developing and
maintaining customer satisfaction that in turn would help in developed trust and loyalty among
the customers. E-commerce business in the UK is most preferred and is rising because of the
convenience it offers to the customers while living in the fast paced life.
However, potential issues have been encountered by the existing e-commerce businesses in the
UK that led to the foundation of the research topic. As the customers are devoid of being
physically present and judge the quality, price and consistency of the product, the issues arise in
e-commerce businesses. The products bought by them from e-commerce business platforms fail
to meet the expectation of the customers thereby, resulting in customer dissatisfaction.
Positivism philosophy, deductive approach, descriptive design and survey research strategy has
been used. 70 customers of e-commerce businesses has been selected using simple random
probability sampling technique. Primary data has been collected from the current customers of e-
commerce businesses for knowing the impact of customer satisfaction on customer loyalty that is
analyzed using quantitative analysis by using co-relation and regression analysis with the help of
SPSS software.
The co-relation values obtained between customer satisfaction and customer loyalty is .462. It
can be said that customer satisfaction and customer loyalty are positively associated with each
other, as the co-relation value ranges 0 to +1. The p-value obtained from the regression analysis

3DISSERTATION
is .000 that is less than 0.05. As a result, the null hypothesis is rejected and alternate hypothesis
(H1) is accepted that mentions effectiveness of customer satisfaction is noticed on customer
loyalty for e-commerce business.

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Table of Contents
Chapter 1: Introduction....................................................................................................................7
1.0 Overview...........................................................................................................................7
1.1 Problem statement.................................................................................................................7
1.2 Research aim..........................................................................................................................8
1.3 Research objectives...............................................................................................................8
1.4 Research questions.................................................................................................................8
1.5 Research hypotheses..............................................................................................................9
Chapter 2: Literature review..........................................................................................................11
2.0 Overview..............................................................................................................................11
2.1 Conceptual framework.........................................................................................................11
2.2 Concept of customer satisfaction.........................................................................................11
2.3 Factors affecting customer satisfaction...............................................................................12
2.4 Concept of customer loyalty................................................................................................13
2.5 Factors affecting customer loyalty.......................................................................................14
2.6 Advantages of achieving customer satisfaction for e-commerce business..........................15
2.7 Challenges of ensuring customer satisfaction for e-commerce business.............................15
2.8 Impact of customer satisfaction on customer loyalty for e-commerce business.................16
2.9 Methods of improving customer satisfaction......................................................................16

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2.10 Summary............................................................................................................................17
Chapter 3: Research methodology.............................................................................................18
3.0 Overview..............................................................................................................................18
3.1 Research outline...................................................................................................................18
3.2 Research philosophy............................................................................................................18
3.3 Research approach...............................................................................................................19
3.4 Research design...................................................................................................................19
3.5 Research strategy.................................................................................................................19
3.6 Sampling technique and sample size...................................................................................20
3.7 Data collection process........................................................................................................20
3.8 Data analysis technique.......................................................................................................20
3.9 Ethical considerations..........................................................................................................21
3.10 Accessibility issues............................................................................................................21
3.11 Summary............................................................................................................................21
Chapter 4: Data analysis................................................................................................................22
4.0 Overview..............................................................................................................................22
4.1 Descriptive analysis.............................................................................................................23
4.1.1 Demographics...............................................................................................................23
4.2 Inferential analysis...............................................................................................................24
4.2.1 Co-relation analysis......................................................................................................24

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4.2.2 Regression analysis.......................................................................................................26
4.3 Summary..............................................................................................................................28
Chapter 5: Discussions..................................................................................................................29
5.0 Overview..............................................................................................................................29
5.1 Data interpretations..............................................................................................................29
5.2 Summary..............................................................................................................................31
Chapter 6: Conclusion and recommendations...............................................................................32
6.0 Conclusion...........................................................................................................................32
6.1 Linking with objectives.......................................................................................................32
6.2 Recommendations................................................................................................................34
6.3 Future scope of the study.....................................................................................................35
References......................................................................................................................................36
Appendix 1.....................................................................................................................................40
Survey questionnaire.................................................................................................................40

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Chapter 1: Introduction
1.0 Overview
The success of the e-commerce businesses is highly dependent on the existing customer base
because they can rely and count on the return on `the investments. Having a satisfied customer
base ensures that the customers remain loyal to the business organization and return to them in
the future irrespective of the market scenario. As a result, it is important for the e-commerce
businesses to take adequate measures for developing and maintaining customer satisfaction that
in turn would help in developed trust and loyalty among the customers (Hill and Alexander
2017).
. The e-commerce business in the UK is on the rise and the total sales has accounted up to
10.7% of the total retail sales. E-commerce business in the UK is most preferred and is rising
because of the convenience it offers to the customers while living in the fast paced life. However,
potential issues have been encountered by the existing e-commerce businesses in the UK that led
to the foundation of the research topic (Saeidi et al. 2015).
1.1 Problem statement
Ensuring customer satisfaction for e-commerce business organizations is often an issue
due to various reasons. As the customers are devoid of being physically present and judge the
quality, price and consistency of the product, the issues arise in e-commerce businesses. As a
result, the products bought by them from e-commerce business platforms fail to meet the
expectation of the customers thereby, resulting in customer dissatisfaction. On the other hand,
information and product quality are other factors that affect the level of customer satisfaction for