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A STUDY OF THE RELATIONSHIP BETWEEN THE VALUE PERCEPTION AND LOYALTY INTENTION TOWARD AN E-RETAILER WEBSITE
The Internet has become an important channel for retailers to effectively reach their target customers or expand into new markets. Due to the low switching costs for customers and few entry barriers for competitors, competition in the online environment has become fierce. Value creation for consumers is important in the success of retaining customers. The Internet provides a new way for retailers to create value for a wider range of customers. Understanding how to offer value through the interaction between website attributes and visitors can help online retailers enhance customer loyalty intention to the site. This study examined the effects of three components of perceived value on customer loyalty intention to an e-retailer’s website. Perceived value components--utilitarian value, trust, and hedonic value--were hypothesized to have direct and positive effects on customer loyalty intention toward an e-retailer’s website. Data were collected from 243 students through five different colleges and 418 office workers in the urban cities of Northern and Central Taiwan by using a paper-pencil survey. A Structural Equation Modeling technique was employed to test the research model. The result shows that trust and utilitarian value both had significant effects on e-loyalty intention; however, hedonic value did not appear to have a positive effect on e-loyalty.
Fu-Ling Hu, Chao Chao Chuang