Investigating the Effectiveness of Customer Satisfaction on Customer Loyalty in E-commerce Business

Running head: PROPOSAL
Investigating the Effectiveness of Customer Satisfaction on Customer Loyalty in E-commerce
Business
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1PROPOSAL
Table of Contents
Chapter 1: Introduction....................................................................................................................2
Overview......................................................................................................................................2
Problem statement.......................................................................................................................2
Research aim................................................................................................................................3
Research objectives.....................................................................................................................3
Research questions.......................................................................................................................3
Research hypotheses....................................................................................................................4
Research rationale........................................................................................................................4
Structure of the dissertation.........................................................................................................4
Chapter 2: Literature review............................................................................................................5
Conceptual framework.................................................................................................................5
Concept of customer satisfaction.................................................................................................5
Factors affecting customer satisfaction.......................................................................................6
Challenges in achieving customer satisfaction............................................................................7
Benefits of customer satisfaction.................................................................................................7
Impact of customer satisfaction on customer loyalty..................................................................8
Chapter 3: Proposed research methodology....................................................................................9
Research philosophy....................................................................................................................9

2PROPOSAL
Research approach.......................................................................................................................9
Research design...........................................................................................................................9
Research strategy.......................................................................................................................10
Sampling technique and sample size.........................................................................................10
Data collection process..............................................................................................................10
Data analysis technique.............................................................................................................11
Ethical considerations................................................................................................................11
Timescale...................................................................................................................................11
References......................................................................................................................................13

3PROPOSAL
Chapter 1: Introduction
Overview
Customers are the key external stakeholders that determine the improved profit, revenue
generation and market share for the business organizations. According to Saeidi et al. (2015), it
is highly significant for the business organizations to develop a satisfied customer base so that
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. Therefore, it can be said that customer satisfaction
helps in developing loyalty among the customers and offers several advantages such as
competitive advantage, positive word-of-mouth, new market opportunities and retaining existing
customers (Agnihotri et al. 2016).
United Kingdom is one of leading countries in the western world and paying using credit
cards is one of the most preferred methods. 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, some evident issues of using e-commerce in the UK have
questioned with the level of customer satisfaction that in turn imposed a negative impact on the
loyalty of the customers (Ecommerce News 2019).
Problem statement
Customer satisfaction is often an issue for e-commerce business sectors because it
operates virtually. The customers do not have the scope of being physically present and judge the
quality, price and consistency of the product. As a result, the products bought by them from e-