CHAPTER 1
1.1 BACKGROUND OF THE STUDY
The use of e-commerce websites can lead to accepting and satisfying intentions and then influence customer
satisfaction behavior towards an e-commerce website Customer satisfaction is how satisfied a customer is with
the supplied product/service. It is closely related to interpersonal trust [Geyskens, Steenkamp, Scheer, and
Kumar 1996].
[Zins 2001], stated , it is expected that a higher level of customer satisfaction will lead to greater loyalty.
However, the impact of satisfaction on customer loyalty is rather complex. Fisher [2001] believes that customer
satisfaction accounts for only part of why people change product or service providers. Other studies have shown
that customer satisfaction is a leading factor in determining loyalty [Anderson and Lehmann 1994]. Anderson
and Srinivasan [2003] found that both trust and perceived value, as developed by the company, significantly
accentuate the impact of satisfaction on e-Journal of Electronic Commerce Research, VOL 12, NO 1, 2011 Page
81commerce loyalty. In a more recent study by Cyr [2008] it was found that website satisfaction is strongly
related to loyalty in three countries: Canada, Germany, and China.
Generally, loyalty has been defined as the repeat purchasing frequency or the relative volume of same-brand
purchasing. Oliver [1997] defines customer loyalty as a deeply held commitment to re-buy or re-patronize a
preferred product/service consistently in the future, thereby causing repetitive same brand or same brand set
purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior.
In e-commerce, loyal customers are considered extremely valuable. Today, e-retailers are seeking information on
how to build customer loyalty. Loyal customers not only require more information themselves, but they serve as
an information source for other customers. Building customer loyalty is one of the biggest challenges for
business to customer e-commerce. Several antecedents of customer loyalty have been proposed. Customer
satisfaction and trust have been brought forward as a precondition for patronage behavior [Pavlou 2003] and the
development of long-term customer relationships [Papadopoulou, Andreou, Kanellis, and Martakos 2001].
The study by Kassim and Ismail [2009] found that services quality and vendor’s assurance to online customers,
contribute to building trust and satisfaction thereby improving customer loyalty. These study shall therefore
determine the role of e-commerce in improving customer service.
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