Influence of digital customer experience on customer loyalty in Kenya’s online retail sector
Date
2023
Authors
Nderitu, M. W.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The struggle for clients among retail outlets is getting more and more intense due to new business models in the sector and ongoing technological advancements, therefore it is becoming more and more important to preserve long-term connections with customers. The retail industry has been one of the global economy's growing sectors in recent years, with high growth rates in rich nations and exponential development in emerging ones. Increased rivalry and the introduction of new retailing formats, in addition to rapid expansion as a primary cause, are developing a new retail landscape. The general objective of the study was to establish the influence of digital customer experience on customer loyalty in Kenya's online retail sector. Specific objectives were to establish the influence of perceived value on customer loyalty in Kenya's online retail sector, to examine the influence of brand trust on customer loyalty, to determine the influence of services quality on customer loyalty, to establish the influence of convenience on customer loyalty and to examine the influence of product experience on customer loyalty in Kenya's online retail sector. This study was anchored on Diffusion Innovation Theory and Theory of Reasoned Action. This study used a descriptive research design. The target population was 10,000 online customers shopping in the major online retailers in Nairobi. The convenience sampling method was used to select the study sample. The study sample size was 385 respondents. The study used questionnaires to collect primary data. Quantitative data collected was analyzed by the use of descriptive statistics which include percentages, means, standard deviations and frequencies. The information was displayed by use of bar charts, graphs and pie charts and in prose-form. Data collected from open ended questions was analyzed using the content analysis method. Correlational analysis was conducted to determine the strength of a relationship between two, numerically measured, continuous variables. The study also carried out a multiple regression analysis to determine the influence of digital customer experience on customer loyalty in Kenya's online retail sector. The study established that perceived value, brand trust, service quality, convenience and product experience had a statistically significant relationship with customer loyalty in Kenya's online retail sector. The study recommends that the retailers should always ensure that their customers get value of what they purchase. In addition, they should always work with trusted brands and improve their service quality in order to enhance customer loyalty and meet customer needs. Further, customer loyalty would be deepened by increasing convinience through establishment of outlets in different regions. Moreover, the retailers should always ensure that they provide products of good quality to their customers to enhance their loyalty. The study was limited to perceived value, brand trust, services quality, convenience and product experience on customer loyalty in Kenya's online retail sector. Convenience sampling was adopted for this study hence the ability to make generalizations from the sample to the population of interest may be undermined. In addition, the study was limited to descriptive research design thus cause and effect correlations cannot be established. Further, the respondents may not be genuine or offer socially acceptable replies while answering survey questions. The phrasing and choice of questions on a questionnaire might have an impact on the descriptive results. The study objective was to establish the influence of digital customer experience on customer loyalty in Kenya's online sector through perceived value, brand trust, services quality, convenience and product experience hence future studies should adopt other variables. Further, the findings of the study are not generalisable to other sectors and thus a need for future studies to focus on the influence of digital customer experience on customer loyalty in other sectors.
Description
Full- text thesis
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Citation
Nderitu, M. W. (2023). Influence of digital customer experience on customer loyalty in Kenya’s online retail sector [Strathmore University]. http://hdl.handle.net/11071/13439