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How do product quality management affect customer loyalty in high and low touch products? A Case Study on Amazon

Harvard, 16000 Words

Abstract

 

The significance of product quality management for both high and low touch products to improve online retail business of Amazon is rationale of the study for improving customer loyalty. Product quality maintaining view and online transaction safety of Amazon is the key for online retail business success. Product quality management is important for business organisations that help to increase customer satisfaction and retention level to turn them as loyal customer. The researcher use deductive research approach, mixed research method and collected primary data from focus group discussion and questionnaire survey. The researcher takes questionnaire data from 42 online customers of Amazon among millions of online customer for representing the customers’ viewpoint of product quality management of Amazon to improve customer loyalty system. Amazon has business strength of high product quality and they check other retailers’ product before selling through their online store. Amazon is ensuring safe and secure online transaction for their customers to increase brand reliability and try to deliver online sold products quickly. Customers are expecting to improve delivery system of online purchased products within a short time where Amazon needs to improve for sustainable online retail business.

 

 

 

Table of Contents

 

Acknowledgement

Declaration

Abstract

Chapter – 1: Introduction

1.1        Background of the Study

1.2        About Amazon

1.3        Rationale of the Study

1.4        Problem Statement

1.5        Significance of the Study

1.6        Research Questions

1.7        Research Aim and Objectives

1.8        Structure of the Study

1.9        Conclusion

Chapter – 2: Literature Review

2.1        Introduction

2.2        Product Quality

Figure 2.1: Product Quality

2.3        Product Quality Management

2.4        High and Low Touch Products

2.5        Customer Focus

2.6        Customer Satisfaction and Retention through Online Product and Service Quality

Figure 2.2: Customer Satisfaction through Online Product and Service Quality

2.7        Customer Loyalty

2.8        Quality Management in maintaining Higher Product Quality

Figure 2.3: Quality Management System

2.9        Customer Loyalty by maintaining Higher Product Quality at Online Retail Business

2.10      Conceptual Framework

Figure 2.4: Conceptual Framework

2.11      Conclusion

Chapter – 3: Research Methodology

3.1        Introduction

3.2        Research Philosophy

3.2.1         Justification of Research Philosophy

3.3        Research Approach

3.3.1         Justification of Research Approach

3.4        Research Methods

3.4.1         Justification of Research Methods

3.5        Research Investigation

3.5.1         Justification of Research Investigation

3.6        Research Strategy

3.6.1         Justification of Research Strategy

3.7        Data Collection Techniques

3.7.1         Secondary Data Collection

3.7.1.1      Justification of Secondary Data Collection

3.7.2         Primary Data Collection

3.7.2.1      Justification of Primary Data Collection

3.8        Sampling Technique

3.8.1         Justification of Sampling Technique

3.9        Data Analysis

3.9.1         Justification of Data Analysis

3.10      Ethical Issues

3.10.1       Justification of Ethical Issues

3.11      Research Reliability and Validity

3.12      Conclusion

Chapter – 4: Findings and Analysis

4.1        Introduction

4.2        Questionnaire Findings

Table 4.1: Age of Respondents

Figure 4.1: Age of Respondents

Table 4.2: Educational Status of Respondents

Figure 4.2: Educational Status of Respondents

4.2.1         Amazon Product Quality Management

Table 4.3: Quality of design of Amazon Products are high

Figure 4.3: Quality of design of Amazon Products are high

Table 4.4: Quality Confirmation and Brand Reliability of Amazon is high

Figure 4.4: Quality Confirmation and Brand Reliability of Amazon is high

Table 4.5: Product Quality and Service Safety about online purchased products of Amazon is high

Figure 4.5: Product Quality and Service Safety about online purchased products of Amazon is high

Table 4.6: Product quality is checking by Experts and that ensure customers demand

Figure 4.6: Product quality is checking by Experts and that ensure customers demand

Table 4.7: Amazon is checking other retailers products to ensure high product quality

Figure 4.7: Amazon is checking other retailers products to ensure high product quality

4.2.2         Total Quality Management

Table 4.8: Amazon Product and Service quality remain high

Figure 4.8: Amazon Product and Service quality remain high

Table 4.9: Quick delivery of online sold Products are ensuring high Service Quality

Figure 4.9: Quick delivery of online sold Products are ensuring high Service Quality

Table 4.10: Quick response of customer complaints and feedbacks Ensure Total Quality Management of Amazon

Figure 4.10: Quick response of customer complaints and feedbacks Ensure Total Quality Management of Amazon

4.2.3         Customer Focus on High and Low Touch Products

Table 4.11: Amazon shares effective product information at online for gaining effective customer focus

Figure 4.11: Amazon shares effective product information at online for gaining effective customer focus

Table 4.12: High service based high touch products supporting service is excellent by Amazon

Figure 4.12: High service based high touch products supporting service is excellent by Amazon

Table 4.13: Stylist Product Design helps to gain Customer focus

Figure 4.13: Stylist Product Design helps to gain Customer focus

4.2.4         Customer Satisfaction and Retention on Amazon online Product and Service Quality

Table 4.14: Formal Product Quality Satisfy customers to purchase products from Amazon Online Store

Figure 4.14: Formal Product Quality Satisfy customers to purchase products from Amazon Online Store

Table 4.15: On time Delivery of Online purchased Products are Satisfying Amazon Customers

Figure 4.15: On time Delivery of Online purchased Products are Satisfying Amazon Customers

Table 4.16: Safe Online Transactions are ensuring Data Confidentiality and that ensure Customer Satisfaction and Retention

Figure 4.16: Safe Online Transactions are ensuring Data Confidentiality and that ensure Customer Satisfaction and Retention

4.2.5         Customer Loyalty Management

Table 4.17: Quality Improvement of Products are Satisfying Customers to become Loyal Customer of Amazon

Figure 4.17: Quality Improvement of Products are Satisfying Customers to become Loyal Customer of Amazon

Table 4.18: Online Data Confidentiality and Quick Delivery of Products are Satisfying customers to become Loyal Customer of Amazon

Figure 4.18: Online Data Confidentiality and Quick Delivery of Products are Satisfying customers to become Loyal Customer of Amazon

Table 4.19: Market Demand and Trend Management through high Product Quality ensures Customer Loyalty

Figure 4.19: Market Demand and Trend Management through high Product Quality ensures Customer Loyalty

4.2.6         T-Test Analysis of Questionnaire Data

Table 4.20: Average Response of all questions of Questionnaire Survey

Table 4.21: T-Test result and Statistics of Questionnaire Findings

4.3        Qualitative FGD Findings

4.4        Conclusion

Chapter – 5: Conclusion and Recommendation

5.1        Concluding Remark

5.2        Summary of Objectives Based Finding

5.3        Recommendations

5.4        Further Research Scope

References

Appendix – A: Blank Questionnaire

Appendix – B: Qualitative FGD Questions

 

 

List of Figures

Figure 2.1: Product Quality. 7

Figure 2.2: Customer Satisfaction through Online Product and Service Quality. 14

Figure 2.3: Quality Management System.. 18

Figure 2.4: Conceptual Framework. 21

 

Figure 4.1: Age of Respondents. 35

Figure 4.2: Educational Status of Respondents. 35

 

Figure 4.3: Quality of design of Amazon Products are high. 36

Figure 4.4: Quality Confirmation and Brand Reliability of Amazon is high. 37

Figure 4.5: Product Quality and Service Safety about online purchased products of Amazon is high. 38

Figure 4.6: Product quality is checking by Experts and that ensure customers demand. 39

Figure 4.7: Amazon is checking other retailers products to ensure high product quality. 40

 

Figure 4.8: Amazon Product and Service quality remain high. 42

Figure 4.9: Quick delivery of online sold Products are ensuring high Service Quality. 42

Figure 4.10: Quick response of customer complaints and feedbacks Ensure Total Quality Management of Amazon. 43

 

Figure 4.11: Amazon shares effective product information at online for gaining effective customer focus. 45

Figure 4.12: High service based high touch products supporting service is excellent by Amazon. 46

Figure 4.13: Stylist Product Design helps to gain Customer focus. 47

 

Figure 4.14: Formal Product Quality Satisfy customers to purchase products from Amazon Online Store. 48

Figure 4.15: On time Delivery of Online purchased Products are Satisfying Amazon Customers. 49

Figure 4.16: Safe Online Transactions are ensuring Data Confidentiality and that ensure Customer Satisfaction and Retention. 50

 

Figure 4.17: Quality Improvement of Products are Satisfying Customers to become Loyal Customer of Amazon. 51

Figure 4.18: Online Data Confidentiality and Quick Delivery of Products are Satisfying customers to become Loyal Customer of Amazon. 52

Figure 4.19: Market Demand and Trend Management through high Product Quality ensures Customer Loyalty. 53

 

 

 

 

 

 

 

 

List of Tables

Table 4.1: Age of Respondents. 34

Table 4.2: Educational Status of Respondents. 35

 

Table 4.3: Quality of design of Amazon Products are high. 36

Table 4.4: Quality Confirmation and Brand Reliability of Amazon is high. 37

Table 4.5: Product Quality and Service Safety about online purchased products of Amazon is high. 38

Table 4.6: Product quality is checking by Experts and that ensure customers demand. 39

Table 4.7: Amazon is checking other retailers products to ensure high product quality. 40

 

Table 4.8: Amazon Product and Service quality remain high. 41

Table 4.9: Quick delivery of online sold Products are ensuring high Service Quality. 42

Table 4.10: Quick response of customer complaints and feedbacks Ensure Total Quality Management of Amazon. 43

 

Table 4.11: Amazon shares effective product information at online for gaining effective customer focus. 44

Table 4.12: High service based high touch products supporting service is excellent by Amazon. 45

Table 4.13: Stylist Product Design helps to gain Customer focus. 46

 

Table 4.14: Formal Product Quality Satisfy customers to purchase products from Amazon Online Store. 47

Table 4.15: On time Delivery of Online purchased Products are Satisfying Amazon Customers. 48

Table 4.16: Safe Online Transactions are ensuring Data Confidentiality and that ensure Customer Satisfaction and Retention. 49

 

Table 4.17: Quality Improvement of Products are Satisfying Customers to become Loyal Customer of Amazon. 51

Table 4.18: Online Data Confidentiality and Quick Delivery of Products are Satisfying customers to become Loyal Customer of Amazon. 52

Table 4.19: Market Demand and Trend Management through high Product Quality ensures Customer Loyalty. 53

 

Table 4.20: Average Response of all questions of Questionnaire Survey. 54

Table 4.21: T-Test result and Statistics of Questionnaire Findings. 54

 

 

 

 


Chapter – 1: Introduction

  • Background of the Study

Amazon is an electronic commercial company that is operating from the headquarter Washington, USA (Amazon.com, 2015). Largest online business at USA is conducting by amazon.com (Hoovers.com, 2015). The product quality touches customers mind with repurchasing intentions and to make customers loyal to purchase from any store and this theme is followed by business organisations strictly (McMullan and Gilmore, 2008; Kitapci et al, 2013). Amazon started business with e-book at first where they diversified other product offers at online store with products such as DVD’s video and mp3 songs, furniture, jewellery, electronic items, toys and so on (Amazon.com, 2015). The presence of Amazon.com is in USA, UK, Canada, Germany, France, Netherlands, Brazil, Mexico, Australia, Japan and India (Hoovers.com, 2015). Amazon provides shopping opportunity to purchase both national and international products through online purchasing option. Amazon is checking product quality of different organisations and then makes deal to sell online that helps to offer high quality products to customers. This process also helps to increase sales performance through high customer satisfaction and retention (Chi, Yeh and Yang, 2009; Ou et al, 2011). Amazon.com is a worldwide retail chain of online marketplace where the quality focus is highly accepted by the customers for increasing sales from their website (Liu and Forsythe, 2010; Hoovers.com, 2015). The background of the study represents to identify the product quality management of Amazon helps to increase customer loyalty where the product quality management factors are getting top priority.