A Study on E-commerce Impact on Customer Loyalty: Woolworths Case

This project is a comprehensive analysis of the impact of e-commerce on customer loyalty, focusing on Woolworths Limited in Australia. The research delves into the challenges faced by the company in maintaining customer satisfaction and loyalty within its e-commerce operations. The study explores various issues, including product quality, website policies, logistics, payment preferences, and hidden costs, and examines how these factors affect customer behavior. The analysis is supported by relevant theories such as Network Theory, Collective Intelligence, and Generational Theory. Furthermore, the project proposes strategies to enhance customer loyalty, such as optimizing email marketing, incentivizing referrals, implementing loyalty programs, and maintaining retailer visibility. The research methodology involves primary data collection through surveys using a questionnaire, with a simple random sampling technique to select 50 customers. Data analysis will be conducted using statistical methods including correlation, regression, and descriptive statistics. The project also addresses potential challenges like poor time management and lack of experience, providing recommendations for improvement, such as implementing e-security seals and simplifying payment processes. The project concludes with suggestions for future research, including larger sample sizes, mixed-method approaches, and exploring multiple e-commerce companies. The references include a range of academic journals and industry reports.

A STUDY ON THE IMPACT OF E-COMMERCE ON CUSTOMER LOYALTY:
A CASE STUDY OF WOOLWORTHS LIMITED, AUSTRALIA
Scholar Id:

Background of the company
• In Australia, Woolworths is a renowned supermarket
chain.
• It deals with 872 stores and for dealing, it has employed
111,000 workforces within distribution centres, stores,
and support headquarters.
• A consumer can purchase its product as per their comfort
like at home and on a train with the application of
woolworth’s supermarket app (Woolworths, 2020).
• .

Area of research
• The main challenge that Woolworths faces is maintaining
and developing the satisfaction extent of distinct kinds of
consumers.
• There is a requirement to facilitate use as well as,
interesting data related to challenges of e-commerce
business that can affect customer loyalty (Nisar and
Prabhakar, 2017).

Analysis of the identified issues by referring to disciplinary knowledge and skills learned from your degree
• Product Quality
• Unclear Website Policies
• Mess Logistics
• Problem of Plenty
• Unclear Delivery Time
• The trouble with Hidden costs
• Limited Payment Preferences

Theories you are going to support that
your analysis
• Network Theory
• Collective Intelligence
• Generational Theory
• It would be used to support the analysis related to the impact
of e-commerce on customer loyalty with reference to
Woolworths limited, Australia.

Strategies to maintain customer loyalty
• The company should constantly optimize the efforts in
converting both email leads and visitors of websites into
the customers (Luo, et. al., 2016).
• A company should give incentives to consumers to
suggest the store to their friends because it is a good
mode to enhance the advocacy and addressing new
loyalties of a brand (Huang, 2019).

Cont’d
• A company can also do this by rewarding loyal consumers
with loyalty points and coupon codes of the store.
• Retailers should also be visible as it aids to pull the
attention of customers (Ting, et. al., 2016).
• A company can also execute the customer rewards
program in order to create loyal consumer (Suciu, et. al.,
2018).

Research methodology
• Primary data collection technique would be used to pool
data about impact of e-commerce on customer loyalty
towards Woolworths limited, Australia.
• Survey through questionnaire methodology is used as a
source to collect primary data regarding investigation
concern.

Sampling
• A simple random sampling method will be used in order to
select the participants on a random basis in this research.
• This technique would be selected as it will support in
declining the biasness of research.
• In addition, 50 customers would be chosen as a sample
size because it would aid to capture the information with
respect to research concerns.

Data analysis
• The researcher would take prior permission from targeted
firm earlier conducting survey because it aids them to
ethically attain the research objectives.
• After pooling information, an investigator would evaluate
information through statistical data analysis methods.
• This technique considers correlation, regression, and
descriptive statistics (Nisar and Prabhakar, 2017).

Challenges and solutions associated with doing the project
• Poor time management
• Fear of failure/taking risks
• Lack of relevant experience
• Lack of motivation
• Lack of Communication with Advisor
• Choosing the Right Topic
• Choosing the Right Methodology

Recommend solution/ Suggestions
• It can be suggested that an e-security seal such as
TRUSTe on websites could support to earn trust of
consumers who opt for e-payments on websites.
• Application of e-payments should be used to provide
convenience to purchasers because it directs in upsurging
the revenues (Sullivan and Kim, 2018).
• Moreover, maintaining simple with easy payment
processes without considering different phases (Torres,
2017).