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Tailoring online retail strategies to increase customer satisfaction and loyalty

Souitaris, V. & Balabanis, G. (2007). Tailoring online retail strategies to increase customer satisfaction and loyalty. Long Range Planning, 40(2), pp. 244-261. doi: 10.1016/j.lrp.2006.11.006


This paper examines how online retailers can combine their strategies on differentiation and market scope (segmentation) to increase customer satisfaction and loyalty. Drawing on a sample of UK grocery e-buyers, the authors classified e-shoppers as either goal-oriented or experiential, and empirically assessed the impact of a number of possible differentiation strategies on the satisfaction and loyalty of each shopper segment. The results show that differentiation based on customisation, product assortment and website design are more effective when directed at the experiential shopper. On the other hand, differentiation based on customer care, convenience and value for money are more successful when focused on the goal-oriented shopper. The authors also found that satisfaction is more likely to generate loyalty for the goal-oriented segment rather than for the experiential shopper.

Publication Type: Article
Additional Information: © 2007 Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments: Bayes Business School > Management
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