The role of electronic commerce in determining desirable customer relationship outcomes

Abstract

In recognizing the significance of linking the power of electronic commerce to relationship marketing in continuously provided service context, this study investigates the role of electronic commerce in determining desirable customer relationship outcomes. In particular, this paper proposes the positive associations between customers' use of electronic commerce in stock trading and four customer relationship outcomes such as perceived service quality, overall satisfaction, attitudinal loyalty, and actual retention. Empirical data were collected from an intercept field survey of 170 customers of two major Korean stock trading brokers. Our main findings from a path analysis indicate that use of electronic commerce in stock trading is strongly associated with high levels of service quality and actual retention. Service quality turns out to play a significant mediating role in predicting the impacts of use of electronic commerce on overall satisfaction and customers' actual retention. Despite several limitations, including cross-sectional design conducted only in Korea, this study advances the understanding of the powerful role of electronic commerce in creating some desirable customer relationship outcomes.