Research Report: Effects of Online Shopping on Customer Loyalty

This report presents a business research project investigating the effects of online shopping on customer loyalty. It begins with an overview of primary and secondary research methods, emphasizing their costs, accessibility, and ethical considerations. The primary research utilizes questionnaires to gather data on customer perceptions of online shopping, focusing on factors like website usage, comfort levels, payment methods, and the impact of online shopping on customer loyalty. The secondary research involves gathering information through books, journals, and publications. The data collected is then analyzed using thematic analysis, identifying key themes related to customer knowledge of online shopping, website preferences, satisfaction levels, payment methods, and difficulties encountered during online purchases. The analysis includes frequency tables, graphs, and interpretations of the findings, such as customer awareness of online shopping, preferences for specific websites like Ebay, satisfaction levels with online shopping experiences, and the impact of online shopping on customer loyalty. The report concludes with an assessment of the relationship between online shopping and customer loyalty, highlighting the importance of online shopping for businesses in maintaining customer relationships and achieving better outcomes.

Research Project

Table of Contents
TASK 2............................................................................................................................................1
P3 Primary and secondary research using appropriate methods for a business research project
that consider costs, access and ethical issues.........................................................................1
P4: Apply appropriate analytical tools, analyse research finding and data............................3
REFERENCES .............................................................................................................................14

TASK 2
P3 Primary and secondary research using appropriate methods for a business research project
that consider costs, access and ethical issues.
For collecting accurate amount of data, there are basically two types of research which
name is primary and secondary. In case of primary research, questionnaire will be applied by
researcher to collect reliable and valid data about the effects of online shopping on the customer
loyalty (Audrain-Pontevia, N’Goala and Poncin, 2013). On the other hand, there is secondary
research which is also used by researcher to gather in-depth information about the topic through
books, journals, articles, publication research and many other relevant sources. Therefore, both
types of data sources are useful and valuable for investigator to accumulate in-depth and reliable
data about the field of study. In order to complete business research project, different number of
methods are require by researcher to collect primary and secondary data related to the topic.
Some important and appropriate methods are determined as under:
Costs: It is consider one of the main source required by researcher to complete research
activities and tasks successfully. In addition, cost is an essential factor which directs the
investigator to make effective decision about selection of research method (Hsu, Chang and
Chen, 2012). For instance, for applying primary method an investigator need to have adequate
amount of capital and time due to accumulating new information from the market. Therefore,
cost is extremely needed factor for collecting primary and secondary data about the effects of
online shopping on the customer loyalty.
Ethical issues: It should be handled carefully throughout the investigation, especially
during the accumulation of data. The objectives and aim were clearly explained to each
respondents of the research. Respondents participated in the investigation and were provided the
opinion or view of withdrawing from the research whenever they wanted (Jin, Lee and Huffman,
2012). Along with this, research ethics were used to ensure that the results of study are
considered to be accurate and robust. There are some research ethics principles such as informed
consent, confidentiality and anonymity. All these principles should be follow by researcher
because without this, they can not complete research activities in systematic and accurate
manner.
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Therefore, all these methods are essential and useful for researcher to collect primary and
secondary information about the research topic. For this, questionnaire will be prepared by
researcher to collect reliable and valid data about the topic. Apart from this, There are two types
of sampling methods namely random sampling and non-random sampling (Long and et. al.,
2013). According to the study, convenience sampling method as a type of non-random sampling
will be applied because it help a researcher by saving its time, cost and resources. With the help
convenience sampling method, 30 respondents are taken into consideration.
Questionnaire
Q1) Are you have knowledge about the basic concept of Online shopping?
a) Yes
b) No
Q2) Which online websites do you usually use?
a) Amazon
b) Ebay
c) Topshop
d) Other
Q3) How comfortable are you with shopping online?
a) Extremely
b) Quite
c) Moderately
d) Not at all
Q4) What are the payment methods you mostly use for Online Purchases?
a) Credit card
b) Debit card
c) Net banking
d) Cash on delivery
Q5) How Online shopping impact on customer loyalty?
a) By providing Easy price comparisons
b) By giving more variety
c) Other
Q6)What is the importance of online shopping for Ebay?
2

a) Increasing sales
b) Building Brand Image
c) Increasing customer base
Q7) What are the relationship between online shopping and customer loyalty?
a) Positive
b) Negative
Q8) You are overall satisfied with your experience of shopping online from Ebay?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
Q9) What are the difficulties you face during purchasing products through online?
a) Product quality
b) Delivery time is not clear
c) The trouble with hidden costs
d) Payment Confirmation missing
Q10) Recommend different ways through which Ebay can easily overcome difficulties and
keep customer's loyalty for long time.
P4: Apply appropriate analytical tools, analyse research finding and data
Thematic analysis is consider one of the best analytical tool used by researcher to
carrying out research effectively (Rafiq, Fulford and Lu, 2013). In this case, different number of
themes are made on each questions which will support a researcher to complete research
activities in accurate and systematic manner.
Q1) Are you have knowledge about the basic concept of Online shopping? Frequency
Yes 22
No 8
Q2) Which online websites do you usually use? Frequency
Amazon 10
3

Ebay 15
Topshop 3
Other 2
Q3) How comfortable are you with shopping online? Frequency
Extremely 15
Quite 10
Moderately 3
Not at all 2
Q4) What are the payment methods you mostly use for Online Purchases? Frequency
Credit card 7
Debit card 8
Net banking 13
Cash on delivery 2
Q5) How Online shopping impact on customer loyalty? Frequency
By providing Easy price comparisons 15
By giving more variety 13
Other 2
Q6)What is the importance of online shopping for Ebay? Frequency
Increasing sales 10
Building Brand Image 10
Increasing customer base 10
Q7) What are the relationship between online shopping and customer
loyalty?
Frequency
Positive 23
Negative 7
4

Q8) You are overall satisfied with your experience of shopping online from
Ebay?
Frequency
Strongly agree 12
Agree 10
Neutral 5
Disagree 2
Strongly disagree 1
Q9) What are the difficulties you face during purchasing products through
online?
Frequency
Product quality 7
Delivery time is not clear 8
The trouble with hidden costs 6
Payment Confirmation missing 9
Theme 1: Knowledge about the concept of Online Shopping
Q1) Are you have knowledge about the basic
concept of Online shopping?
Frequency
Yes 22
No 8
5

Yes No
0
5
10
15
20
25 22
8
Frequency
Interpretation: From the above mentioned graph, it has been determined awareness about
the concept of online shopping among customers. 22 out of 30 respondents are aware about the
concept of online shopping whereas 8 respondents are not aware as per the same. Thus, online
shopping is a biggest concept for company to maintain customers loyalty and increase market
share within given time duration.
Theme 2: Utilisation of best websites
Q2) Which online websites do you usually
use?
Frequency
Amazon 10
Ebay 15
Topshop 3
Other 2
6

Amazon Ebay Topshop Other
0
2
4
6
8
10
12
14
16
10
15
3
2
Frequency
Interpretation: According to the above given data, it has been concluded that there are
different number of online websites for customers to use it and purchase products. 10 out of 30
respondents use Amazon, 15 are prefer Ebay, 3 are Topshop and remaining are other websites.
Thus, it prove, Ebay is one of the popular online organisation which is beneficial for customers
to purchase products through online and without wasting any time.
Theme 3: Comfortable level of customers with shopping online
Q3) How comfortable are you with shopping
online?
Frequency
Extremely 15
Quite 10
Moderately 3
Not at all 2
7

Extremely Quite Moderately Not at all
0
2
4
6
8
10
12
14
16 15
10
3
2
Frequency
Interpretation: As per the above given information, it has been determined satisfaction
level of customers towards purchasing products online. 15 out of 30 customers are extremely
satisfy, 10 are quite satisfy, 3 are moderately satisfy and remaining 2 respondents are not at all
satisfy. Thus, it prove, most of the respondents ate extremely satisfy towards purchasing products
over internet.
Theme 4: Types of payment methods used by customers
Q4) What are the payment methods you mostly
use for Online Purchases?
Frequency
Credit card 7
Debit card 8
Net banking 13
Cash on delivery 2
8

Credit card Debit card Net banking Cash on delivery
0
2
4
6
8
10
12
14
7
8
13
2
Frequency
Interpretation: According to the given data, it has been concluded that there are different
types of payment system for customers to pay easily for products. 7 out of 30 respondents prefer
credit card, 8 are use debit card, 13 are follow net banking and remaining 2 customers are use
cash on delivery payment system.
Theme 5: Impact of online shopping on customer loyalty
Q5) How Online shopping impact on customer
loyalty?
Frequency
By providing Easy price comparisons 15
By giving more variety 13
Other 2
9

By providing Easy price comparisons
By giving more variety
Other
0
2
4
6
8
10
12
14
16 15
13
2
Frequency
Interpretation: According to the above given data or information, it has been determined,
how online shopping impact on customer loyalty. 15 out of 30 respondents are said, company
should provide easy price comparison, 13 are suggest, company should give more varieties in its
product and remaining has not suggestion about the same.
Theme 6: Significance of online shopping
Q6)What is the importance of online shopping
for Ebay?
Frequency
Increasing sales 10
Building Brand Image 10
Increasing customer base 10
10

Increasing sales
Building Brand Image
Increasing customer base
0
1
2
3
4
5
6
7
8
9
10
10 10 10
Frequency
Interpretation: From the above given data, it has been concluded that as online shopping
is also more essential and effective services for an organisation. As it help Ebay by building
brand image, increasing sales and also increasing customer base within predetermined time
duration. Thus, online shopping services is essential for an organisation to enhance profitability
and market share.
Theme 7: Relationship between customer loyalty and online shopping
Q7) What are the relationship between online
shopping and customer loyalty?
Frequency
Positive 23
Negative 7
11

Positive Negative
0
5
10
15
20
25 23
7
Frequency
Interpretation: According to the above data, it has been determined relationship between
customer loyalty and online shopping. As per this, 23 out of 30 respondents has positive
relationship with online shopping whereas 7 has negative relationship with them. Thus, with the
help of online shopping company can easily maintain loyalty of customers and achieve better
outputs within given time duration.
Theme 8: Satisfaction level of customers with online shopping services provided by Ebay
Q8) You are overall satisfied with your
experience of shopping online from Ebay?
Frequency
Strongly agree 12
Agree 10
Neutral 5
Disagree 2
Strongly disagree 1
12

Strongly agree Agree Neutral Disagree Strongly disagree
0
2
4
6
8
10
12
12
10
5
2
1
Frequency
Interpretation: According to the above graph, it has been concluded level of satisfaction
among customers of Ebay. Due to this, 12 out of 30 respondents are strong agree as Ebay
provide quick services, 10 are agree, 5 are neutral, 2 are disagree and remaining are strongly
disagree. Thus, it prove, Ebay customer's strongly satisfy with the services and products of
company.
Theme 9: Difficulties face by customers during purchasing products via online
Q9) What are the difficulties you face during
purchasing products through online?
Frequency
Product quality 7
Delivery time is not clear 8
The trouble with hidden costs 6
Payment Confirmation missing 9
13

Product quality
Delivery time is not clear
The trouble with hidden costs
Payment Confirmation missing
0
1
2
3
4
5
6
7
8
9
7
8
6
9
Frequency
Interpretation: From the above given data, it has been concluded difficulties faced by
customers while purchasing products through online. 7 out of 30 customers are faced product
quality issue, 8 are faced issue related to delivery time which is not clear, 6 are trouble with
hidden costs and rest of the respondents faced difficulty related to payment confirmation which
is missing.
Therefore, online shopping is essential for customers to retain strong loyalty with an
organisation (Yoon and et. al., 2013). It will also help an enterprise to retain long term relation
with customers by providing quick services, quality products etc.
There are different benefits of online shopping for customers such as better prices, more
variety, convenience, more control, easy price comparison, no crowds and no pressure (Online
shopping, 2019). Online shopping is also effective and beneficial for company by help them in
retaining strong relation with customers, increasing sales, enhancing productivity etc.
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