Consumer Behavior and Loyalty: A Study of Danish Consumers' Preferences for Online Shopping

Rasmus Grundtmann Jensen & Bjørn Danmark

Student thesis: Master thesis

Abstract

With E-commerce becoming one of the most popular ways of shopping, the relationship between Danish consumers and businesses is changing. While customer loyalty remains an integral part of business growth, the foundation on which it is built has evolved. Shopping has moved out of high streets and malls and into our homes and onto our laptops and smartphones. Based on this development, this master thesis has sought to investigate how the relationship between consumers and businesses has changed through E-commerce, with the goal of defining loyalty in an era of digital shopping. Based on the EPSI/ECSI and STL, along with relevant literature on CRM, E-commerce, as well as traditional business-to-consumer relationships, a theoretical framework was developed, accounting for central factors leading to loyalty. It was hypothesized that image, guarantees, flow-experience, quality of service, data ethics, and postpurchase experiences played a central role in forming trust, satisfaction, and loyalty. The theoretical framework was tested through eight in-depth interviews and revised to account for the findings from these interviews, after which the thesis’ research questions and hypotheses were developed. Based on these hypotheses an online survey was conducted, which accumulated 352 responses, and using the data gathered through the online survey, a factor analysis, a regression analysis, and a cluster analysis were performed to test the hypotheses. In the Cluster Analysis, three different segments were found that differ from each other. One segment was generally very skeptical about online shopping, while the other two segments differed in terms of whether it was the company's values or communication that were most important when shopping online. Through the regression analysis, it was discovered that image, delivery/return, informative communication, guarantee, and flow experience were significant drivers for satisfaction, trust, and loyalty for consumers using E-commerce. Based on the results of the analyzes, strategic initiatives and recommendations are outlined for companies to increase customer loyalty in E-commerce. The thesis has also resulted in a discussion of its limitations and brought forward interesting topics for future investigations

EducationsMSc in Economics and Marketing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2021
Number of pages271