Determinants of customer e-loyalty in the online retail industry in Kenya: a case study of Jumia Kenya

Mwaura, Stephen Mwega
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Strathmore University
Studies have shown that customer e-loyalty directly impacts the profitability of a business. Due to the rapid growth of online retailing, competition is stiff and as such business need to ensure that their costumers remain loyal in their patronage, which would then translate to profitability. This research examined the determinants of customer e-loyalty within the online retail industry in Kenya, with a focus on Jumia Kenya. The study was anchored on the theory of planned behavior and the technology acceptance model theory. A descriptive research design was selected for the study. The study adopted a convenience sampling approach to select online shoppers who patronize Jumia Kenya. The sample set was 400 online shoppers. A pilot test was administered to establish the reliability and validity of the research instruments. Questionnaires issued to online shoppers, were used for data collection. The SPSS (Version 23) software was used to analyze data. Descriptive and inferential statistical analyses provided interpretations from the collected data. The research established a positive and statistically significant influence of e-service quality, e-satisfaction and e-trust on customer e-loyalty within the online retail industry in Kenya, albeit this relationship was weak amongst the variables. The study recommends that online retailers improve their practices and strategies that enhance e-trust, e-service quality and e-satisfaction such as: good customer support, reliable online customer service representation, implementation of automation tools such as chatbots for improved customer engagement, and beautification of online catalogs for improved navigation, content management, and comprehensible terms and conditions. Additionally, the study recommends that online retailers raise the quality and variety of goods and services provided, improve delivery times, and invest in loyalty programs and incentives, as these proposals may enhance e-loyalty which has been positively linked to increased profits in multiple studies. Future studies could include other determinants that may influence e-loyalty, namely socioeconomic, cultural, political, environmental and consumer characteristics. Future research could also consider expanding the scope to include different regions within Africa, to generalize the results.
A Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business School
Customer e-loyalty, Online retail industry_Kenya, Jumia_Kenya