Customer Loyalty in e-Retail

Abstract

E-retailing, most commonly known as e-tailing is nothing but shopping through the Internet and other
media forms. It is also known as Internet shopping, e-shopping, or virtual shopping. According to a PwC 2014
report, India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in 2013. In
2013, the e-retail segment was worth US$2.3 billion. About 70% of India's e-commerce market is travel
related. According to Google India, there were 35 million online shoppers in India in 2014 Q1 and is expected to
cross 150 million mark by end of year 2018.The industry is expected to record a CAGR vis-à-vis a global growth
rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales. Customer loyalty plays a very
important role in building strong customer relationship in etail where seller and customer do not come in a
physical set up. Customer loyalty involves building a long-term relationship between the supplier and the
individual customer in order to improve profitability. To achieve this,suppliers need to understand the customers'
spending habits and products that they currently buy, stores they prefer. This paper is tries to study the online
shoppers’ perception of 1) Whether the online shopping service creates loyalty in customers 2) customer opinion
on online money transaction and 3) preference of online shopping in Indian retailing context.