Electronic Loyalty In Social Commerce: Scale Development and Validation

Bui Thanh Khoa, Ha Minh Nguyen
(Submitted 18 October 2019)
(Published 7 December 2020)

Abstract


Loyalty is an important key performance indicator to assess a business's success, especially in an online business environment with fierce competition. The explosion of social networking sites has created a new form of business: social commerce. Simultaneously, the scale of loyalty in online transactions has some limitations; hence, this research aims to develop and validate an electronic loyalty scale in the context of social commerce. The study used a mixed research method with two phases of a sequential exploratory strategy. Qualitative research generated the scale and was used in the initial filtering to develop an e-loyalty scale for social commerce. This study conducted two quantitative studies with 715 social commerce shoppers in five developed areas in Vietnam: Ho Chi Minh City, Ha Noi City, Hai Phong City, Da Nang City, and Binh Duong Province. Based on our research survey and literature review, the research results showed that electronic loyalty in social commerce is expressed in three dimensions: preference, interaction, and personal information’s disclosure. Then, the research proposed several relevant implications for other researchers and administrators of online businesses.


Keywords


electronic loyalty (e-loyalty), interaction, personal information’s disclosure, preference, scale development and validation, social commerce (s-commerce)

Full Text: PDF

DOI: 10.22146/gamaijb.50683

References


Aaker, DA 2012. Building strong brands. London: Simon & Schuster.

Al-dweeri, R.M., Ruiz Moreno, A., Montes, F.J.L., Obeidat, Z.M. and Al-dwairi, K.M. 2019. The effect of e-service quality on Jordanian student’s e-loyalty: an empirical study in online retailing. Industrial Management & Data Systems 119(4): 902-923.

Albashrawi, M. and Motiwalla, L. 2019. Privacy and personalization in continued usage intention of mobile banking: An integrative perspective. Information Systems Frontiers 21(5): 1031-1043.

Alnsour, M. and Tayeh, Z.A. 2019. Impact of social media use on brand awareness: an applied study on Jordanian banks that uses Facebook. International Journal of Electronic Banking 1(4): 341-357.

Alonso-Dos-Santos, M., Soto-Fuentes, Y. and Valderrama-Palma, V.A. 2020. Determinants of Mobile Banking Users’ Loyalty. Journal of Promotion Management 26(5): 615-633.  doi: 10.1080/10496491.2020.1729312

Anderson, J.C. and Gerbing, D.W. 1988. Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin 103(3): 411-423.  doi: 10.1037//0033-2909.103.3.411

Anderson, R.E. and Srinivasan, S.S. 2003. E‐satisfaction and e‐loyalty: A contingency framework. Psychology & marketing 20(2): 123-138.

Apenes Solem, B.A. 2016. Influences of customer participation and customer brand engagement on brand loyalty. Journal of Consumer Marketing 33(5): 332-342.  doi: 10.1108/jcm-04-2015-1390

Balaji, P. and Murthy, S.S. 2019. Web 2.0: An Evaluation of Social Media Networking Sites. International Journal of Innovative Technology and Exploring Engineering 8(10): 752-759.

Bo, W., Jin, Y. and Kwon, O. 2020. Effects of Artificial Intelligence Functionalities on Online Store'S Image and Continuance Intention: A Resource-Based View Perspective. The Journal of Society for e-Business Studies 25(2): 65-98.

Campbell, D. 2019. A Relational Build-up Model of Consumer Intention to Self-disclose Personal Information in E-commerce B2C Relationships. AIS Transactions on Human-Computer Interaction 11(1): 33-53.  doi: 10.17705/1thci.00112

Chau, P.Y. 1997. Reexamining a model for evaluating information center success using a structural equation modeling approach. Decision Sciences 28(2): 309-334.

Chellappa, R.K. and Sin, R.G. 2005. Personalization versus Privacy: An Empirical Examination of the Online Consumer’s Dilemma. Information Technology and Management 6(2-3): 181-202.  doi: 10.1007/s10799-005-5879-y

Chiu, Y.-L., Chen, L.-J., Du, J. and Hsu, Y.-T. 2018. Studying the relationship between the perceived value of online group-buying websites and customer loyalty: the moderating role of referral rewards. Journal of Business & industrial marketing 33(5): 665-679.

Chu, K.-M. and Yuan, J. 2013. The effects of perceived interactivity on e-trust and e-consumer behaviors: the application of fuzzy linguistic scale. Journal of Electronic Commerce Research 14(1): 124-136.

Churchill, G.A. 1979. A paradigm for developing better measures of marketing constructs. Journal of Marketing Research 16(1): 64-73.

Creswell, J.W. 2009. Mapping the field of mixed methods research. Los Angeles: Sage.

Creswell, J.W. and Creswell, J.D. 2017. Research design: Qualitative, quantitative, and mixed methods approaches. London: Sage.

Cyr, D. 2008. Modeling web site design across cultures: relationships to trust, satisfaction, and e-loyalty. Journal of Management Information Systems 24(4): 47-72.

Datarepotal.com. 2019. Digital 2019: Vietnam [online]. Available at: https://datareportal.com/reports/digital-2019-vietnam.

De la Garza Carranza, M.T., López Lemus, J.A., Guzmán Soria, E. and Atlatenco Ibara, Q. 2020. Validation of a measuring scale of the expectations of millennials at work, the Mexican case. Gadjah Mada International Journal of Business 22(2): 78-198.  doi: 10.22146/gamaijb.51212

Deng, L. and Poole, M.S. 2010. Affect in web interfaces: a study of the impacts of web page visual complexity and order. Mis Quarterly 34(4): 711-730.

DeVellis, R.F. 2017. Scale development: Theory and applications. 4th ed. Los Angeles: Sage.

Dick, A.S. and Basu, K. 1994. Customer loyalty: toward an integrated conceptual framework. Journal of the academy of marketing science 22(2): 99-113.

Doong, H.S., Wang, H.C. and Shih, H.C. 2008. Exploring loyalty intention in the electronic marketplace. Electronic Markets 18(2): 142-149.

Eid, M.I. 2011. Determinants of e-commerce customer satisfaction, trust, and loyalty in Saudi Arabia. Journal of Electronic Commerce Research 12(1): 78-93.

Evanschitzky, H., Ramaseshan, B., Woisetschläger, D.M., Richelsen, V., Blut, M. and Backhaus, C. 2012. Consequences of customer loyalty to the loyalty program and to the company. Journal of the academy of marketing science 40(5): 625-638.

Featherman, M.S. and Hajli, N. 2016. Self-service technologies and e-services risks in social commerce era. Journal of Business Ethics 139(2): 251-269.

Fornell, C. and Larcker, D.F. 2018. Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research 18(1): 39-50.  doi: 10.1177/002224378101800104

Gefen, D. 2002. Customer loyalty in e-commerce. Journal of the Association for Information Systems 3: 27-51.

Gefen, D. and Straub, D. 2000. The Relative Importance of Perceived Ease of Use in IS Adoption: A Study of E-Commerce Adoption. Journal of the Association for Information Systems 1(1): 1-30.  doi: 10.17705/1jais.00008

Godes, D., Mayzlin, D., Chen, Y., Das, S., Dellarocas, C., Pfeiffer, B., Libai, B., Sen, S., Shi, M. and Verlegh, P. 2005. The firm's management of social interactions. Marketing letters 16(3-4): 415-428.

Gracia, E. and Juliadi, R. 2019. The Threat of Personal Information Trading in the Online Network and Information Technology. International Journal of Multicultural and Multireligious Understanding 6(9): 49-55.

Gremler, DD. 1996. The effect of satisfaction, switching costs, and interpersonal bonds on service loyalty. Marketing Department. Tucson, Arizona, Arizona State University.

Grondin, B. 2003. A framework of e-loyalty levers. Canada, Concordia University.

Hair, J.F., Anderson, R.E., Babin, B.J. and Black, W.C. 2010. Multivariate data analysis: A global perspective. Upper Saddle River, NJ: Pearson.

Handarkho, Y.D. 2020. The factors influencing customer loyalty in social commerce platform: variety-seeking and social impact perspective. International Journal of Web Information Systems 16(4): 369-386.  doi: 10.1108/ijwis-04-2020-0021

Harris, L.C. and Goode, M.M.H. 2004. The four levels of loyalty and the pivotal role of trust: a study of online service dynamics. Journal of Retailing 80(2): 139-158.  doi: 10.1016/j.jretai.2004.04.002

Holland, J. and Baker, SM 2001. Customer participation in creating site brand loyalty. Journal of interactive marketing 15(4): 34-45.

Hulland, J. 1999. Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic management journal 20(2): 195-204.

IDEA. 2020. Vietnam E-Business Index 2020 Report. Hanoi, Vietnam e-Commerce and Digital Economy Agency.

Iqbal, M.S., Ul Hassan, M., Habibah, U. and TiuWright, L. 2018. Impact of self-service technology (SST) service quality on customer loyalty and behavioral intention: The mediating role of customer satisfaction. Cogent Business & Management 5(1): 1-23.  doi: 10.1080/23311975.2018.1423770

Jacoby, J. and Chestnut, R.W. 1978. Brand loyalty: Measurement and management. New York: John Wiley & Sons.

Jacoby, J. and Kaplan, L.B. 1972. The components of perceived risk. Proceedings of the third annual conference of the association for consumer research, Chicago, Association for Consumer Research.

Kapurubandara, M. and Lawson, R. 2006. Barriers to Adopting ICT and e-commerce with SMEs in developing countries: an Exploratory study in Sri Lanka. University of Western Sydney, Australia: 2005-2016.

Kartajaya, H., Kotler, P. and Hooi, D.H. 2019. Marketing 4.0: Moving From Traditional To Digital. Hoboken, NJ: John Wiley & Sons.

Kassarjian, H.H. 1977. Content analysis in consumer research. Journal of Consumer Research 4(1): 8-18.

Kaya, B., Behravesh, E., Abubakar, A.M., Kaya, O.S. and Orús, C. 2019. The moderating role of website familiarity in the relationships between e-service quality, e-satisfaction and e-loyalty. Journal of Internet Commerce 18(4): 369-394.

Khoa, B.T. 2020a. The Antecedents of Relationship Marketing and Customer Loyalty: A Case of the Designed Fashion Product. Journal of Asian Finance, Economics and Business 7(2): 195-204.  doi: doi.org/10.13106/jafeb.2020.vol7.no2.195

Khoa, B.T. 2020b. The Impact of the Personal Data Disclosure’s trade-off on the Trust and Attitude Loyalty in Mobile Banking Services. Journal of Promotion Management ahead-of-print(ahead-of-print).  doi: 10.1080/10496491.2020.1838028

Khoa, B.T. 2020c. The role of Mobile Skillfulness and User Innovation toward Electronic Wallet Acceptance in the Digital Transformation Era. 2020 International Conference on Information Technology Systems and Innovation (ICITSI), Bandung - Padang, Indonesia, IEEE.  doi: 10.1109/ICITSI50517.2020.9264967

Khoa, B.T. and Khanh, T. 2019. A study of factors affecting Online Trust of The Vietnamese Customers: Case of Social Commerce. Vietnam Trade and Industry Review 5 (2019): 198-204.

Kotler, P., Keller, K.L., Goodman, M., Brady, M. and Hansen, T. 2019. Marketing management. 4th ed. Harlow, UK: Pearson Education.

Koufaris, M. 2002. Applying the technology acceptance model and flow theory to online consumer behavior. Information systems research 13(2): 205-223.

Latif, F.Ö.B. and Uslu, A. 2019. Building e-loyalty for e-retailers: role of justice perception and consumer forgiveness. Middle East Journal 6(3): 298-317.

Lee, C.-H. and Wu, J.J. 2017. Consumer online flow experience: The relationship between utilitarian and hedonic value, satisfaction and unplanned purchase. Industrial Management & Data Systems 117(10): 2452-2467.  doi: 10.1108/IMDS-11-2016-0500

Liang, C.-J., Chen, H.-J. and Wang, W.-H. 2008. Does online relationship marketing enhance customer retention and cross-buying? Service Industries Journal 28(6): 769-787.

Liang, T.-P. and Turban, E. 2011. Introduction to the special issue on social commerce: a research framework for social commerce. International Journal of Electronic Commerce 16(2): 5-14.

Lin, C.-P., Chiu, C.-K., Liu, C.-M., Chen, K.-J. and Hsiao, C.-Y. 2018. Modeling e-loyalty: a moderated-mediation model. Service Industries Journal 38(15-16): 1160-1178.

Liu, Y. and Tang, X. 2018. The effects of online trust-building mechanisms on trust and repurchase intentions: An empirical study on eBay. Information Technology & People 31(3): 666-687.  doi: doi.org/10.1108/ITP-10-2016-0242

Luarn, P. and Lin, H.-H. 2003. A customer loyalty model for e-service context. Journal of Electronic Commerce Research 4(4): 156-167.

MacKenzie, S.B. 2003. The dangers of poor construct conceptualization. Journal of the academy of marketing science 31(3): 323-326.

Mahmoud, M.A. 2019. Gender, E-Banking, and Customer Retention. Journal of Global Marketing 32(4): 269-287.

Martin, K.D., Borah, A. and Palmatier, R.W. 2017. Data privacy: Effects on customer and firm performance. Journal of Marketing 81(1): 36-58.

McIver, J. and Carmines, E.G. 1981. Unidimensional scaling. London: Sage.

Meyers, L.S., Gamst, G.C., and Guarino, A. 2013. Performing data analysis using IBM SPSS. Hoboken, NJ: John Wiley & Sons.

Morgan, D.L. 1998. Practical strategies for combining qualitative and quantitative methods: Applications to health research. Qualitative health research 8(3): 362-376.

Neuman, W.L. 2013. Social research methods: Qualitative and quantitative approaches. 7th ed. Harlow, United Kingdom: Pearson education.

Nguyen, H., Nguyen, H., Nguyen, N. and Phan, A. 2018. Determinants of Customer Satisfaction and Loyalty in Vietnamese Life-Insurance Setting. Sustainability 10(4): 1151-1167.

Nguyen, H.M., and Khoa, B.T. 2019a. The Relationship between the Perceived Mental Benefits, Online Trust, and Personal Information Disclosure in Online Shopping. Journal of Asian Finance, Economics and Business 6(4): 261-270.  doi: 10.13106/jafeb.2019.vol6.no4.261

Nguyen, M.H., and Khoa, B.T. 2019b. Customer Electronic Loyalty towards Online Business: The role of Online Trust, Perceived Mental Benefits and Hedonic Value. Journal of Distribution Science 17(12): 81-93.  doi: 10.15722/jds.17.12.201912.81

Nunnally, J.C. 1978. An overview of psychological measurement. In B. W. Benjamin ed. Clinical diagnosis of mental disorders. Boston, MA, Springer. pp. 97-146.

Oliver, R.L. 1997. Loyalty and Profit: Long-term Effects of Satisfaction. In R. L. Oliver ed. Satisfaction: A behavioural perspective on the consumer. New York, McGraw-Hill. pp. 386-407.

Oliver, R.L. 1999. Whence consumer loyalty? Journal of Marketing 64(4): 33-44.  doi: 10.1177/00222429990634s105

Oliver, R.L. 2014. Satisfaction: A Behavioral Perspective on the Consumer. London: Routledge.

Padmavathy, C., Swapana, M. and Paul, J. 2019. Online second-hand shopping motivation–Conceptualization, scale development, and validation. Journal of Retailing and Consumer Services 51: 19-32.

Palmatier, R.W. and Martin, K.D. 2019. Understanding and Valuing Customer Data. In R. W. Palmatier and K. D. Martin eds. The Intelligent Marketer’s Guide to Data Privacy. Cham, Palgrave Macmillan. pp. 133-151.

Rabiee, F. 2004. Focus-group interview and data analysis. Proceedings of the nutrition society 63(04): 655-660.  doi: 10.1079/pns2004399

Reichheld, F.F., and Schefter, P. 2000. E-loyalty: your secret weapon on the web. Harvard Business Review 78(4): 105-113.

Sadeghi, A., Ghujali, T. and Bastam, H. 2019. The Effect of Organizational Reputation on E-loyalty: The Roles of E-trust and E-satisfaction. ASEAN Marketing Journal 10(1): 1-16.

Shafiee, M.M. and Bazargan, N.A. 2018. Behavioral customer loyalty in online shopping: the role of E-service quality and E-recovery. Journal of Theoretical and Applied Electronic Commerce Research 13(1): 26-38.

Shankar, V., Smith, A.K. and Rangaswamy, A. 2003. Customer satisfaction and loyalty in online and offline environments. International journal of research in marketing 20(2): 153-175.

Shimp, T.A. and Sharma, S. 1987. Consumer ethnocentrism: construction and validation of the CETSCALE. Journal of Marketing Research 24(3): 280-289.

Silverman, D. 2016. Qualitative research. London: Sage.

Sitorus, T. and Yustisia, M. 2018. The influence of service quality and customer trust toward customer loyalty: the role of customer satisfaction. International Journal for Quality Research 12(3): 639-654.

Smink, A.R., Frowijn, S., van Reijmersdal, E.A., van Noort, G. and Neijens, P.C. 2019. Try online before you buy: How does shopping with augmented reality affect brand responses and personal data disclosure. Electronic Commerce Research and Applications 35: 100854.  doi: 10.1016/j.elerap.2019.100854

Smith, H.J., Dinev, T. and Xu, H. 2011. Information privacy research: an interdisciplinary review. MIS quarterly 35(4): 989-1016.

Srinivasan, S.S., Anderson, R. and Ponnavolu, K. 2002. Customer loyalty in e-commerce: an exploration of its antecedents and consequences. Journal of Retailing 78(1): 41-50.

Srivastava, M. and Rai, A.K. 2018. Mechanics of engendering customer loyalty: A conceptual framework. IIMB management review 30(3): 207-218.  doi: 10.1016/j.iimb.2018.05.002

Steiger, J.H. 1990. Structural model evaluation and modification: An interval estimation approach. Multivariate behavioral research 25(2): 173-180.

Tabachnick, B. and Fidell, L. 2007. Multivariate analysis of variance and covariance. Using multivariate statistics 3: 402-407.

Taherdoost, H. 2016. Validity and Reliability of the Research Instrument; How to Test the Validation of a Questionnaire/Survey in a Research. International Journal of Academic Research in Management 5(3): 28-36.  doi: 10.2139/ssrn.3205040

Terci, S. 2000. Reasons for brand awareness: an exploratory study. Curitiba, UFPR.

Toufaily, E., Fallu, J.-M. and Ricard, L. 2016. OCL: Online Customer Loyalty in the Service Industries: Scale Development and Validation. Journal of Relationship Marketing 15(4): 269-298.  doi: 10.1080/15332667.2016.1209067

Toufaily, E., Ricard, L. and Perrien, J. 2013. Customer loyalty to a commercial website: Descriptive meta-analysis of the empirical literature and proposal of an integrative model. Journal of Business Research 66(9): 1436-1447.

Turban, E., Outland, J., King, D., Lee, J.K., Liang, T.-P. and Turban, DC 2017. Electronic Commerce 2018: A Managerial and Social Networks Perspective. Cham, Switzerland: Springer.

Valvi, A.C. and Fragkos, K.C. 2012. Critical review of the e-loyalty literature: a purchase-centred framework. Electronic Commerce Research 12(3): 331-378.

Valvi, A.C. and West, DC 2013. E-loyalty is not all about trust, price also matters: extending expectation-confirmation theory in bookselling websites. Journal of Electronic Commerce Research 14(1): 99-123.

Vatanasombut, B., Igbaria, M., Stylianou, AC and Rodgers, W. 2008. Information systems continuance intention of web-based applications customers: The case of online banking. Information & management 45(7): 419-428.

Vietnam eCommerce and Digital Economy Agency. 2019. Vietnam E-Commerce White Paper 2019 [online]. Hanoi. Available at: http://www.idea.gov.vn/file/ef6314a6-709e-4d42-a2fa-b60457a66179 [Accessed May 25 2020].

Vijay, T.S., Prashar, S. and Sahay, V. 2019. The Influence of Online Shopping Values and Web Atmospheric Cues on E-Loyalty: Mediating Role of E-Satisfaction. Journal of theoretical and applied electronic commerce research 14(1): 1-15.

Wallace, D.W., Giese, J.L. and Johnson, J.L. 2004. Customer retailer loyalty in the context of multiple channel strategies. Journal of Retailing 80(4): 249-263.

Westaby, J.D., Woods, N. and Pfaff, D.L. 2016. Extending dynamic network theory to group and social interaction analysis: Uncovering key behavioral elements, cycles, and emergent states. Organizational Psychology Review 6(1): 34-62.

Wiresa, A. 2017. Customer Satisfaction ≠ Customer Loyalty [online]. Available at: https://www.andrewiringa.com/customer-satisfaction-%E2%89%A0-customer-loyalty/.

Xu, H., Luo, X., Carroll, J.M. and Rosson, M.B. 2011. The personalization privacy paradox: An exploratory study of decision making process for location-aware marketing. Decision support systems 51(1): 42-52.  doi: 10.1016/j.dss.2010.11.017

Yeon, J., Park, I. and Lee, D. 2019. What creates trust and who gets loyalty in social commerce? Journal of Retailing and Consumer Services 50: 138-144.

Zanchett, R. and Paladini, E.P. 2019. Consumer loyalty programs: impact of different modalities. Dyna 86(208): 206-213.  doi: 10.15446/dyna.v86n208.71080

Zeithaml, V.A., Berry, L.L. and Parasuraman, A. 1996. The behavioral consequences of service quality. Journal of Marketing 60(2): 31-46.

 

font-family:"Times New Roman",serif;mso-fareast-font-family:"Times New Roman";

mso-ansi-language:IN;mso-fareast-language:IN;mso-bidi-language:AR-SA;

mso-no-proof:yes'>


Refbacks

  • There are currently no refbacks.




Copyright (c) 2020 Gadjah Mada International Journal of Business

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.