BUS301 Project: E-commerce Impact on Customer Loyalty at Woolworths

This project investigates the impact of e-commerce on customer loyalty, using Woolworths Limited, Australia, as a case study. The research plan outlines the area of research, focusing on the challenges of maintaining customer satisfaction in the e-commerce sector, and the application of Network Theory, Collective Intelligence, and Generational Theory to support the analysis. The study addresses the challenges Woolworths faces, including attracting and retaining customers in a competitive online market, and proposes recommendations such as optimizing online presence, incentivizing customer referrals, and implementing customer reward programs. The project includes a literature review on e-commerce and customer loyalty, along with detailed explanations of the theoretical frameworks. The challenges associated with the project, such as poor time management and lack of experience, are also discussed, along with proposed solutions. The final analysis summarizes the company's background, identifies key issues, analyzes them using disciplinary knowledge, and suggests strategic solutions to enhance customer loyalty and retention in the e-commerce environment.

Running head: INTEGRATED MARKETING MANAGEMENT
A study on the impact of e-commerce on customer loyalty: A case study of
Woolworths Limited, Australia

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Table of Contents
1 – Research plan..................................................................................................................................3
Area of research.................................................................................................................................3
Theories you are going to support that your analysis.........................................................................3
Recommendations to the company....................................................................................................3
2- Summary of research.........................................................................................................................5
Background of the company..............................................................................................................5
Problem of company..........................................................................................................................5
Literature review...............................................................................................................................5
Details of theories..............................................................................................................................6
Network Theory.............................................................................................................................6
Collective Intelligence theory........................................................................................................7
Generational Theory......................................................................................................................7
3- Challenges and solutions associated with doing the project..............................................................8
Research methodology......................................................................................................................9
4- Final analysis...................................................................................................................................11
Executive Summary.........................................................................................................................11
Background of the company............................................................................................................11
Issues / Problems that being analysed..............................................................................................12
Detailed analysis of the identified issues by referring to disciplinary knowledge and skills learned
from your degree.............................................................................................................................12
Recommend solution/ Suggestions..................................................................................................20
Plan of your career or future study..................................................................................................20
References...........................................................................................................................................22

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1 – Research plan
Area of research
In the current e-commerce sector, businesses not only focus on gaining competitive
advantage but also, facing some challenges. The main challenge that Woolworths faces is
maintaining and developing the satisfaction extent of distinct kinds of consumers. Other
challenges are cultural diversity, distinct viewpoints, demands and needs to have long-term
development of their businesses. Hence, 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). The key objective of this investigation is to address the
significant e-commerce challenges that can affect customer loyalty and explore the
association between e-commerce and customer loyalty of Woolworths limited.
Developing new consumers and maintaining them has the requirement of huge efforts. One of
the key challenges that e-commerce firm faces in developing trust and loyalty among
customers is that buyers and sellers do not know each other because they cannot see each
other. Therefore, the customer is robbed of senses that they will normally depend on with
respect to face to face transactions. It could only be developed through efforts and time. In
across different transactions, the company can develop loyalty and trust (Jiang, Jun, and
Yang, 2016).
Theories you are going to support that your analysis
Network Theory, Collective Intelligence, and Generational Theory would be used to support
the analysis related to impact of e-commerce on customer loyalty with reference to
Woolworths limited, Australia.
Recommendations to the company
For overcoming the problem, Woolworths limited should apply tactics in order to help the
customers and create a base for them as it would aid to increase the lifetime value of

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customers. The company should constantly optimize the efforts in transforming both email
leads and visitors of websites into the customers (Luo, et. al., 2016). It can be recommended
that retailers should significantly leverage the PPC, retargeting, SEO, affiliates, display
advertisement, social media, email, and shopping engine helps in driving qualified traffic for
their online stores. Retailers should also be visible as it aids to pull the attention of customers
(Ting, 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. A
company can also do this by rewarding loyal consumers with loyalty points and coupon codes
of the store as well as, a company can appreciate by saying ‘nice thank you’ while someone
shares the store. It is significant for motivating tremendous strong behavior (Huang, 2019).
A company can also execute the customer rewards program in order to create loyal
consumers. It would permit a company to demonstrate appreciation to all customers and
facilitates exclusive offers to the best consumers and motivates the brand advocates to refer
their friends to the store. By executing the reward initiatives, the company would be on the
right track in terms of enhancing customer loyalty. The key is to develop a community is in
content that the company produces and distributed via email and social media (Suciu, et. al.,
2018).

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2- Summary of research
Background of the company
Woolworths Limited was established in the year of 1924. The mission of the company is to
provide superior products in value, convenience, and quality for customers. It has also
engaged 201,000 team members who deal with 29 million consumers across the brand in
each week. Moreover, company is a reliable business association with thousands of local
farmers as well as, producers (Woolworths, 2020).
Problem of company
The main problem is designing a site that could be attractive on first viewing as well as,
interesting enough in terms of motivating repeat visits. In addition to this, customers are
becoming highly open for competitive advances as well as, are more renowned with a brand.
Thus, satisfaction could not be feasible for making sure the long-term commitment with a
single provider of online services. In addition to this, the online firm is looking beyond the
satisfaction in terms of creating trust in terms of declining the perceived risk for using
services. Trust could be seen as being a critical factor for considering significance in the
procedure for developing and creating relationships in online facilities (Hjort and Lantz,
2016).
Firms may also face a challenge in terms of enlarging the public application of e-commerce.
In addition to this, customers would have to feel that the data provided by them would be
confidential and not to share with others. Hence, firms should develop trust that online
transactions are secure (Suciu, et. al., 2018).
Literature review
E-commerce is associated with purchasing and selling, marketing with servicing of products
and services as well as, data through different kinds of computer networks. There are
different firms that are entailed in and sponsoring different categories related to e-commerce.

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These categories are business to business, business to consumers, and consumer to consumer
(Huang, 2019).
Moreover, customer loyalty is illustrated as a consumer who will choose a product with a
brand that has provided them a higher extent of satisfaction. Hence, there would be recurring
buy to brand. It is illustrated that when firm integrates the competency for responding and
offering the good customer demand along with, engaging more intensively through gaining
service quality as per customer's demand then, the company would be able for retaining the
customers at the longer-term (Luo, Han, and Yu, 2016).
Details of theories
Network Theory
Network theory focuses on relationships of all kinds, whether between people or things.
Social network analysis is an overlapping technique to learn regarding structures that create
within social networks as well as, how they affect behaviour. An investigator evaluates that
the achievement of entertainment product is impossible in terms of predicting as per
traditional factors like star power and plot since hits are the outcomes for persuading the
consumers for making a decision towards their products (Al-dweeri, et. al., 2017). There are
digital marketing platforms like Twitter, Groupon, Foursquare, and Facebook are significant
in this regard since it permits marketer for listening to what a consumer is stating and they
permit the marketers for leveraging the power to influence users in terms of distributing the
message throughout the networks (Unidha and Sentani, 2017).
It is addressed that business network theory illustrates the extensive body of theorizing that
emphasizes on several distinct levels such as level of actor’s attributes, the extent of dyadic as
well as, multilateral inter-firm associations. In addition to this, the extent of whole
configurations is about multinational networks of business and multinational operations of

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the business. It can pass the boundaries of the firm and the borders of nations (Kirby-
Hawkins, Birkin, and Clarke, 2019).
Collective Intelligence theory
This theory related to collective intelligence shows that groups could be smarter as well as,
highly creative as compared to some of their parts. The phenomenon of the internet is an alias
as crowdsourcing where projects are categorized into small. Individual tasks that are
allocated to a large number of people for completion have collective intelligence at its origin.
Crowdsourcing permits marketers in terms of engaging consumers as well as, making them
part of their campaigns (Linzbach, Inman, and Nikolova, 2019).
This theory is illustrated as competency of a group that can be collaborated to attain the goals
that an individual, highly gifted will not be competent to attain individually. While
workforces collaborate their understanding in order to develop the solutions for
organizational concerns and dynamically demonstrate their efforts in order to contribute to
transforming, they feel as when they are key competitors. As a result, it can motivate, hard
works, as well as, being creative to people (Al-dweeri, et. al., 2017).
Generational Theory
It is identified that generational marketing theory evaluates that a consumer born of same
generation has collective behaviour with attitudes due to shared experiences which influenced
the childhoods as well as, shaping their opinions about world. In addition, feasibility about
generational theory related to e-commerce is primarily in a manner where, each generation
interacts as well as, online places in which, marketers can arrive at them (Kirby-Hawkins,
Birkin, and Clarke, 2019).

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3- Challenges and solutions associated with doing the project
Following are different challenges and solutions related to performing the project:
Poor time management
Poor time management is a key challenge in doing projects. Hence, there is a need to spend
time in planning as well as, marking sure the researcher has allocated a feasible time period
for each task that is undertaken and then reviews the activities that are running. When a
researcher would not attain the goal then they have need to focus on the causes of the issue
and makes transformation accordingly (Al-dweeri, et. al., 2017).
Fear of failure/taking risks
Fear of failure and taking risks is a key challenge for a researcher in doing the project. Hence,
the researcher can learn wider from their failure as compared to their successes. They are also
catalysts to make a favourable change in the medium and long-term. The researcher should
not take it personally and remember to take training for research. The researcher should
comprehend what is expected of them and understand where a researcher can find support
(Linzbach, Inman, and Nikolova, 2019).
Lack of relevant experience
Lack of relevant experience is another challenge that a researcher faces in doing the project.
Hence, the researcher should address the gap and exploring all options as well as, taking the
opportunities. There is a need to find some work experiences in order to broaden the
competencies (Kirby-Hawkins, Birkin, and Clarke, 2019).
Lack of motivation
Lack of motivation is a challenge that is faced by an investigator. Hence, they should set
themselves some short-term tasks while lacking motivation as it aids them to make progress.
The researcher should also address the factors that can motivate them and provide themselves
a regular reward. It is significant for encouraging themselves when researchers know where

INTEGRATED MARKETING MANAGEMENT 9
they are headed hence, they should make a plan for their project as well as, keeping track of
milestones attained (Huang, 2019).
Lack of Communication with Advisor
It is another challenge that a researcher faces in doing the project. An advisor is a busy person
hence they are sometimes unable to give proper time to the researcher. There is a need to
consider adequate guidance in the project report. Hence, when a researcher unable to get
adequate guidance then they should arrange a time to meet with their advisor privately and
illustrate the condition (Hjort and Lantz, 2016).
Choosing the Right Topic
Researchers face a challenge in selecting a feasible topic. Because there is different research
topic available hence the researcher needs to select an innovative topic that is relevant to
business (Ting, et. al., 2016).
Choosing the Right Methodology
The researcher also faces challenges in terms of selecting the right methodology. There are
different methods available for conducting the research hence researcher should focus on the
strengths and weaknesses of different methods before choosing one feasible method (Luo, et.
al., 2016).
Research methodology
In this research, the researcher would select secondary data collection technique in order to
collect data related to challenges faced by customers in online shopping. The researcher
would choose online websites to collect secondary data associated with investigation concern.
These websites would be used to know the customer reviews who regularly shop products
through an online channel of Woolworths limited (Jiang, Jun, and Yang, 2016).
Under this research, convenience sampling method will be selected as it helps the researcher
to select the customers reviews as per their convenience in less time. Moreover, different

INTEGRATED MARKETING MANAGEMENT 10
customers review related to Woolworths would be selected as a sample size as it would aid to
capture the data regarding research concerns (Nisar and Prabhakar, 2017).

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4- Final analysis
Executive Summary
The main purpose of this report is to address impact of E-commerce on customer loyalty with
reference to Woolworths limited. This report illustrated that Woolworths is a leading retail
company that has a mission to provide fresh food to people. It is found that technology is a
key challenge for E-commerce retailers that create difficulty in maintaining customer loyalty.
It is evaluated that other issues that are faced by e-commerce retailers are maintaining
product quality, logistics is a mess, inadequate delivery time, limited payment references,
hidden expenses, unclear policies of websites, and plenty issue. This report demonstrated that
some strategies should be focused by the company to overcome issues such as provide
confirmation of email payment, and simple and easy payment processes.
Background of the company
Woolworths is a leading supermarket chain in Australia. It deals with 872 stores across
Australia that depend on 111,000 workforces within distribution centres, stores, as well as,
support headquarters for offering consumers to range, value, superior services, as well as,
convenience. This company also pride itself on working closely to Australian farmers and
farmers to make sure the availability of superior products (Woolworths, 2020). It also sources
90% of all fresh vegetables as well as, fruits as well as, 100% of fresh meat are sourced
through farmers and growers of Australia. It also focuses on making fresh food individuals
within Australia (Woolworths, 2020).
Due to highly innovative retailers, Woolworths can comprehend that consumers can focus on
innovative and modest manners for shopping. A consumer can buy through comfort of their
processor at home and on a train because it works the same as Woolworth’s supermarket app
as well as, groceries could be provided straight to the bench of the kitchen (Woolworths,
2020).

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Issues / Problems that being analysed
It is identified that influencing new customers is highly expansive rather than retaining the
existing ones that already have. In addition to this, retailers should execute the tactics to help
them to get high amount of customer base in gaining their customer lifetime values. There are
different online dealers that can face growth challenges due to their technology is restrictive
them as well as, they have recruited wrong agencies and partners to support them to organize
their tasks (Agag, 2019).
It is addressed that retailers may want to attain the growth and it should be developed on a
good basis of technology. They can choose right shopping cart solution, email software,
CRM systems, software of inventory management, and analytics. Moreover, hiring wrong
agencies and partners to support them to implement projects and oversee marketing
campaigns could limit the growth (Park, Jun, and Park, 2017). In addition to this, recruiting to
wrong partners and agencies for supporting them to execute the projects and oversee the
marketing campaigns could also limit the growth. Furthermore, online retailers should select
partners cautiously who can work with them (Guedes, et. al., 2018).
Detailed analysis of the identified issues by referring to disciplinary knowledge and skills
learned from your degree
Product Quality