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Research On The Influence Factors Of Customer Switching Cost Under Electronic Commerce Background

Posted on:2015-02-12Degree:MasterType:Thesis
Country:ChinaCandidate:T T ZhangFull Text:PDF
GTID:2269330428479441Subject:Business management
Abstract/Summary:PDF Full Text Request
With the wide application of Internet in commercial activities, the new business model, based on the Internet and performed by electronic payment transactions, the Electronic Commerce rise in response to the proper time and conditions. E-commerce is based on electronic technology, making use of electronic communication to break the space constraints and moving the traditional shopping place to the virtual Internet, makes all parties of the trade complete different kind of commercial activities legally in faceless situation. E-commerce has created a new economic model, making the shopping places from reinforced concrete structures, physical stores extend to electronic platform online store. With the global electronic commerce rapid growth, the domestic e-commerce also catches up in the global area, showing a kind of growth with strong energy. According to CNNIC, to the end of2013, China had had618million Internet users, among them,302million users had engaged in shopping on Internet, and Internet penetration had reached45.8%.Now, E-commerce is very active in China. The network retail sales amounted to RMB1.8trillion in2013, and annual growth is nearly40%. Moreover, cosmetics have outstanding performance in all online retail industries, the sales from6.02billion yuan in2008increasing to80billion yuan in2013, in addition, the annual increase is bigger and bigger. Besides, the proportion of network sales in the whole cosmetics sales continues to rise, from4.6%in2008to6.3%in2011.The boom in network sales of cosmetics industry brings difficulties to the distributor as well as the opportunities. On the one hand, the rapid development of cosmetics industry on the e-commerce platform attracts a large number of new competitors. On the other hand, the Internet makes communication more clear between economic subjects, weakening the degree of asymmetric information, and customers could choose suppliers competitors freely, and spend relatively low transaction cost to complete the transaction. So it leads to the fierce price competition, and the high difficulty of maintaining the customer loyalty. Furthermore, the wastage rate of online cosmetics shopping customer is significantly higher than that of traditional business model, and e-commerce platform of competition among cosmetics store business enters the white-hot stage. And some scholars put forward, the cost of enterprise to seek a new customer equals five times to maintain the old customer, namely, the profitability will be improved by lower service costs due to the maintenance of good relationship between the enterprise and old customers.Faced with such competition situation, the issues that how to attract customers and firmly keep them for the cosmetics suppliers on the e-commerce platform are badly in need to be considered. Although the suppliers could retain customers by increasing customer satisfaction, customers could convert in various shops or compare the advantages and disadvantages of various products and services relatively easily on the e-commerce platform. So raising the conversion of cost for customers will be more effective to retain them in e-commerce environment. This paper aims to propose suggestions to retain customers to improve corporate profits, based on the investigation on the impacting factors of customer switching costs in the cosmetics industry.By studying literature, this thesis summarizes the theoretical achievements of related research, including the definition, characteristics, classification and development history of e-commerce, and the definition, classification, influence factors and its effect on customer loyalty of customer switching cost, and the connotation and influencing factors of online customers loyalty. On the basis and combining the characteristics of e-commerce under the background of the cosmetics industry, finally select product heterogeneity, online care, width of usage, trust, emotion, attachment, continuous conimitment.risk sensitivitv on the consumntion of time and cncrgv to build new research model. And according to the nine factors affecting to design questionnaire which uses them as variable measurement items, And collect data by network questionnaire, get the answer that price, type, brand and the comprehensive consideration of product decides whether customer will convert actually or not through descriptive statistics. Besides, they tend to buy cosmetics be in the same shop. Among lots of consideration, the most important factor is quality of cosmetics in present shop, the second quality of new shop, furthermore, richness of products, the consumption of energy and time to convert, and service quality are also important consideration. The main factors influencing customer switching cost are divided into five categories through factor analysis. The first includes trust, satisfaction and dependence on the products in the current online store, reflecting customer agreement on the product quality, shopping convenience, product richness and uniqueness of identity of present online shops. The second is customer sensitivity of the consumption of time and energy, reflecting that customers think the cost about time and energy they spend to collect transformation information before converting, to compare the information of shops and products, or to make decision is relatively high switching cost. The third is economic interests factor, reflecting the consideration that customers want to guarantee their own economic interests, or financial profit and loss. The fourth is the customer’s risk sensitivity, reflecting the concerns on customer service such as return service, product quality or related conditions in new shops. The fifth is customer service, which reflects the ability that Shopkeepers make the customer happy and eased in the process of shopping, furthermore, satisfied with the shopping experience. At last, through regression analysis, get the result that in the five types of influence factors of customer switching costs, the first factor, reflecting the customer trust, satisfaction and attachment on the products of present online store, is the most important factor to increase the customer switching cost and hinder the customer actual switching behavior. The fourth factor that customer’s own risk sensitivity is also significant to hinder the customer actual transformation behavior. Beside these above, the second factor which reflects customer sensitivity of the consumption of time and energy to convert, the third factor which reflects the economic interests, and the fifth factor on behalf of the online care did not show a significant impact on the customer actual transformation behavior in the linear regression model, accordance with the reality.Finally, in view of the research results above, seven suggestions are given, such as: First, propel the credibility construction, and promote the shopping convenience. Second, improve the value perception, and reduce perceived risk. Third, enhance mutual interaction, and focus on customer needs. Forth, strengthen product features, and richen product categories. Fifth, manage product price, and balance the interests of both sides. Sixth, optimize customer service, improve customer relationship. Seventh, use a combination of the suggestion, and set switching costs cautiously.
Keywords/Search Tags:switching cost, influence factor, electronic commerce, cosmetic
PDF Full Text Request
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