Online consumer loyalty: Why e-tailers should seek a high-profile leadership position

Authors:
Hsien-Tung Tsai;Heng-Chiang Huang
Affiliations:
Department of International Business, Yuan Ze University, No.135, Yuan-Tung Rd., Chungli City 320, Taiwan, ROC;Department of International Business, National Taiwan University, No.1, Sec. 4, Roosevelt Rd., Taipei City 106, Taiwan, ROC
Venue:
Computers in Human Behavior
Year:
2009

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Abstract

This study takes an approach rooted in information economics to conceptualize and empirically examine the signal-based determinant of online customer loyalty and its antecedents and consequences. The authors test the proposed hypotheses using data obtained from three large online retailers. As an important insight, this research reveals that an e-tailer's competitive equity has a strong, positive effect on relationship investments and loyalty intentions. In addition, using quantile regression analysis, this study clarifies some issues in existing literature by showing that online consumers are motivated by different rules of exchange, depending on their loyalty levels. Finally, the authors discuss the managerial implications of their findings, as well as several important research issues and future research avenues.