Does effective websites with particular characteristics affect customer loyalty to retain them

  1. History

Today internet marketing is a new technology which is used in all over the world by large and small organizations to sell, buy their products, and services hiring and offering services by using new technology. Actually internet marketing now has become very popular mean of communication, even then by operating business in a country you can sell, product or services through internet on the other corner of the world if buyer or seller is there with no wastage of time and money, when wastage of time and money are there then it is meant that businessman has saved the amount in other terms. Similarly there are many features of internet marketing on a business. GlaxoSmithKline is well known multinational pharmaceutical company that is striving for life of quality for its patients and it is doing business in about 100 countries and has 96000 employees in all over the world. Pharmaceutical company making perception medicine, vaccines, and other health care medicine products, in which most famous diseases like asthma, virus control, infections, mental health, diabetes and digestive, now it has been producing cancer preventing medicines as well. Company has open relationships with NHS in all UK, company is striving for human life quality to improve and patients to feel better, and that’s why company is developing innovative products. The company is almost capturing new share of market every year 24% among worldwide which is a major portion that’s why it is leader pharmaceutical company. Round about 13000 researchers are employed by this company for research and development purpose, among them about 1300 belonged to United Kingdom, in 2009 they spent about $11 million in United Kingdom Universities to support about 260 PhD students (http://www.gsk.com/uk/about/index.htm#uk-r-and-d).

  1. Problem

Customers are everywhere in the world, now people are time saving, they want to buy and pay from their homes, sometimes they do not have time to go for shopping for shopping, for purchasing food, and many more stuff, so they require services. Internet provides this facility to visit online shopping and pay from internet, and even then this kind of marketing is more suitable for buyer and seller, company and customer. Fast communication, fast tracking, fast feedback, complaint handling this all provide companies data to make fast decisions and retain customers and capture more and more, it depends on the quality of services and quality of communication. By using computer from home, office, on way, during journey, business man can make contact with supplier, management, and distributions, similarly seller, middleman, buyer also can make contact through online facility, just by going on the web site of relevant company and choose the product or service and go through all process. In this way both customer and organization can save time and money.

Easy access

Business in all over the world

More chances to capture new customers and retaining old clients

Fast, time saving, cheaper, money saving

Research objectives

What are the characteristics of effective website?

In this objective the researcher wants to find out the characteristics of websites, the main purpose of this objective is to clear understanding about those characteristics that can play their role in the growth of organization and in achieving organizational objectives, and these characteristics are very important.

What is the impact of website creating customer loyalty?

This objective has an importance for the researcher because the researcher want to know about the influence that how the characteristics of a website can create the satisfaction and loyalty among the customer because the loyalty is helpful in achieving organizational objectives.

Which characteristics have greater influence to attract customers and create more loyalty?

There will be many characteristics that have some influence in achieving organizational objectives but the main and effective characteristics that have mostly their impact in achieving goals and objectives.

  1. Research Question

Does effective websites with particular characteristics affect customer loyalty to retain them?

  1. Review of Literature

Using internet facility attaining organizational objectives is called internet marketing (Smith & Chaffy, 2005). According to Strauss and Frost, (2005) organizations achieve their goals of marketing by using internet and other activities of marketing processes which includes all the activities of marketing, product designing, setting prices, quality, placement and promotional activities through internet. Organizations can achieve objectives like generate more revenue, attaining of competitive advantages over their competitors in the market, relations with distributors, new ideas generation of doing business in well manner, client retaining and capturing more client in the market to gain more market share by using performance of marketing (Adam et al. 2002). Researcher will use more literature review like different marketing journals, books on marketing and internet, different thesis and marketing articles on marketing performance. Researcher will readout different areas which are liken and connected to internet marketing like internet use, internet marketing, different companies that are providing internet facility of buying and purchasing and selling product to support his research (Bharadwaj, 2000). Researcher is interested in this research because internet marketing effects on sales need still more work and need positive suggestions for companies. Researcher will describe the different aspects of website on the loyalty of customers. The researcher will find out the effects of website to create more and enhancing more loyalty in customers. As two scholars have described the impact of internet services in the field of electronic commerce and especially in transactions and regarding marketing and international trade Teo and Tan, (2002) said that organizations are going to pay their focus on e-commerce related issues. Internet has a significant effect in business (Darby et al. 2003). Customers use computer to make transactions (Fillis et al. 2004). There are so many advantages of computer science in every field of life specially its importance and advantages in the field of trade have great importance and Porter, (2001) said that internet is actually a big support to business. Internet is playing big role in business transactions to carry out them (Gatticker et al. 2000). To manage customer in an effective way by creating relationship with them for long time to make profit is new idea (Goldsmith and Lafferty, 2002). Customer relationship management can be used to retain the old loyal customers for the more income and revenue to earn handsome profit and for the growth of organization and expansion of product line and range. (Samiee, 1998) described that Customer relationship management strategy is used to create loyalty in customers. This statement was also supported by the (Getty and Thompson, 1994) by saying that customer relationship management is used to create loyalty. Customer relationship management is for creating loyalty in customer the main cause of its importance is that loyalty has great influence on organization (Gefen, 2002). The researcher will first create influence of loyalty on business and then website. Each new technology whereas has its more advantages there are many disadvantages of new technology and with the passage of time those limitations can be easily removed through some amendments and alterations Siddiqui, (2003) said in the support that there are many problems related with usage on internet. But some of the scholars were agree on the effectiveness of the website design and they said that there is significantly affect of website on customer loyalty (Sheth and Sharma, 2005). With the usage of internet and launching of website mean more loyalty of customers. According to above literature it is clear that through using and launching of website, any organization has the opportunity to use effectively its customer relationship management strategies and activities in effective way and good manners, when there is effective customer relationship management strategies implemented through website then there are many opportunities to create loyalty in customers and loyalty in customer means retention and more market share capturing from market and more revenue generation and more profit. Through usage of internet company can sell products and services beyond the boundaries of country.  CRM is strategy that how to retain already customers and how to make more customers through creating loyalty, and other activities (Sheth and Sharma, 2005). Some companies have record of their clients (Morgan and Shelly, 1994). Through creating loyalty companies can retain customers (Powell and Single, 1996). Customer relationship management is only for clients, no client no customer relationship management. Companies retain, capture clients make relations with other companies (Parasuraman et al. 1988). For business success, customer’s complaints handling is important (Oliver, 1980). Companies should recognize customer’s needs, wants and their level of satisfactions and provide them those products to overcome their needs and wants up to a certain level of satisfaction (Oliver, 1997). Companies should recognize what customers wants, and create thus more loyalty (Olorunniwo et al. 2006). Employees recognize client’s issues and should help those (Caruana et al. 2000). It is very easy to deal customers at regular basis when one organization only designs a product or offers a service for one client this concept is called personalization which means special product or service for a client (Chen and Popovich, 2003). Loyalty is the trigger towards company benefits that’s why loyalty s important (Chi and Qu, 2008). Loyal customers select the organization and remained to buy products (Choi and Chu, 2001). Loyalty will consider by the researcher as important factor in this research.  Loyalty is indicating occurrence (Cronin and Taylor, 1992). To advertize products website is best tool (Dimitriades, 2006). Website develops trust on client and supplier (Faullent et al, 2008 Feagin et al. 1991). Through internet which is costly means to bring or capture customer but effective way to create loyalty (Chatterjee et al., 2002). Through website attracting new client is very costly (Feagin et al. 1991). To capture more clients, company can develop website and launch the website to attract clients and can create loyalty for purchasing and repurchasing products or services for earning profit (Flyvbjerg, 2006).

  1. Research methodology

Researcher will use conceptual model, researcher will measure characteristics of a website and exploratory research will conduct to find out the impact of website on customer loyalty. Customer will choose a case study of GlaxoSmithKline’s website to make it sure that what is the impact of website on customers loyalty? Researcher will conduct interviews to different customers and to the management and employees of company to achieve the results.

Research Instruments

Researcher will describe some features on the basis of those features researcher will be able to find out the data and after analysis and interpreting them, conclusion will possible. These features will be for the website that if these features are used during the construction or in other words if websites offer these features to customers to create loyalty then what is impact of website on customer loyalty.

Researcher will use tables and graphs for statistical analysis.

Researcher has found out those features from review of literature.

Researcher will construct table for test.

Population

Interviews will be conducted of managers, customer services officers and customers. And questionnaires will be used in the research about 150 respondents will be surveyed. 150 respondents are enough because the researcher has limited time to conduct this research. The researcher will select suitable and frequent customers. The researcher will ask first about usage of internet and online shopping. The person using online shopping will be the most suitable sample. Both of the gender male and female will be included in the sampling and ages range will be from 20 to onward till 50 years.

Sampling

The researcher will select customers randomly from all the population.

Source of Data

The researcher will visit more than 10 websites of different companies to collect data, interviews and meetings with management of pharmaceutical company and to its other employees and with customer services officers and information technology like web developer interviews will be conducted. Moreover for research purpose literature will be reviewed, books, articles, statistical reports and news papers and IT magazines will readout.

Primary and Secondary Data

Primary data will be collected through visiting websites of different companies, annual reports, meeting with manager, and employees of above said company will be arranged in order to get reliable and valid data. Questionnaires will be used as a tool, and during interviews data will be recorded will honest and secondary data will be collected through books, reading journals, e books, e journals, different statistical reports, IT journals, IT magazines etc.

Research Limitations

Researcher has time limits and funding limitations.

Actually there are two main limitations with this research project time is so limited and the budget. Being student the researcher will do all the expenses by her own pocket. And the other limitations are that due to time constraint the researcher was unable to conduct this research on a large volume of population and sample size, so the researcher decided to concentrate on only one case study. the respondent knowledge about information technology and his/her background knowledge about it and his/her experience about using of websites for purchasing.

  1. Data Presenting

The researcher will record the data with honestly in tabular form by using Microsoft excel sheet in order to make it sure that there is no any duplication chances and not data missing after recording data into tables form the researcher will use bar charts to make comparisons necessary for the interpretation and making necessary analysis and recommendations on them whereas during the analysis the researcher will use pie charts to make analysis.

Expected Findings

On the basis of research objectives researcher will find out the expected result.

Which includes some characteristics of effective website, impact of website to create customer loyalty, and which characteristic or combination of characteristics have greater affects to create and retain customers.

  1. Planning of Project

This chapter will contains the information regarding each step by step that how to research will conducted by keeping time and budget constraints by the researcher. Here in this section the researcher will describe the flow of steps involved in the research conduction that how the research was conducted by the researcher.

Cost and Resources

This project is not funded by any organization, as this research will conducted through student, so all resources will be arranged by student, student will bear all the expenditures for example, purchasing of costly statistical software and other related cost like to go here and there for collecting primary and secondary data. The researcher has made a rough idea about the cost of the project. The below table is describing the cost associated with the headings of activities, the next table will shows the time frame required to conduct the research.

Serial NumberDescriptionCost (£)
1Travelling expense150
2Data Collection Cost100
3High Tea150
4Documentation Cost100
5Miscellaneous100
 Total600

Timeframe

Gantt chart is here in this section that will completely help out to conduct the research and which is best milestone regarding time.

HistoryX       
Review LiteratureX       
Supervisor callX       
Research Methods X      
Week12345678
Design of research X      
Interviews XX     
Visits XX     
Surveys XXX    
Data Analysis   X    
Hypothesis   XX   
Supervisor call   X    
Findings   X    
Conclusion   XX   
Submitting    XX  
Supervisor call    XX  
Contingency Plan      XX

Contingency Plan

In the end of research, after presenting results and conclusion, there are two weeks to remove errors. If there are any errors and mistakes then the researcher will use these two weeks to correct the errors with the help of supervisor as this is shown in the above table.

  1. Conclusion

The impact of website on customer loyalty will be discussed, some suggestions will give after conduction research and interpreting results that how much is the impact of websites on increasing customer loyalty, and which are main features of website that trigger the customer to create loyalty and how loyalty is beneficial for company

In this section the researcher will also describes the limitations of this research project and as well as the conclusion, here in this section the researcher will also make recommendations for the organization and will suggest to the administration about the characteristics of the website designing and if the researcher will find out some errors and poor designing then the researcher will also through light on the poor sections and suggestions to the web developer that how to remove the weaknesses and how to design it in effective way. Researcher will identify customer relationship management factors which will play vital role in constructing effective and attractive website in order to create more loyalty and retaining clients and attracting more clients and creating loyalty for repurchasing.

As researcher has described some features according to review of literature that these features are very helpful to create loyalty in customers through website, so researcher will make conclusion that which one or more than one features are important to create loyalty through website.

Published by MALI

Writer is post-graduated in Computer science, Business Administration, Marketing and Innovation. He has 10 years of business academic research writing experience.

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