The Important Factors influencing Brand Loyalty in Small E-Commerce Business: A Study of Thai Small E-Commerce Companies through Entrepreneurs’ Perspective

Abstract: Date: June 3rd, 2011 Course: Master Thesis EFO 705, International Marketing Tutor: Johan Grinbergs Authors: Sasawan Heingraj (851007) and Varin Luenglertkul (840622) Title: The Important Factors influencing Brand Loyalty in Small E-Commerce Business: A Case Study of Thai Small E-Commerce Companies Problem: As the competitions in Thai e-commerce market are intense, price war is used as one strategy to compete competitors. To gain higher profit margins, brand loyalty is a key factor relating to companies’ success. However, there is a lack of knowledge regarding the important factors to build or enhance the level of brand loyalty among customers through entrepreneurs’ perspective. Therefore, the research question in this paper is "What are the important factors of brand loyalty connecting to Thai small e-commerce business success through an entrepreneur’s perspective?" Purpose: This paper aims to describe and analyze the brand loyalty strategy in Thai small e-commerce businesses, followed by a study of the important factors of brand loyalty that impact company’s competitive advantage. Method: The study is primarily based on qualitative research using entrepreneurs’ perspective approach. The five competitive forces model and the concept of brand loyalty strategy are applied. Data collected from literature review and five interviews. The interview questions are validated by using IOC approach. Conclusion: Brand loyalty can create competitive advantages and success for e-commerce businesses. Through entrepreneurs’ perspective, there are eight important factors which have a positive impact on brand loyalty. There is a connection among expectations, attitudes, trust, satisfaction and brand loyalty. By focusing on increasing customers’ expectations, high-quality, unique and creative products should be addressed. While contact interactivity and character play important roles in building trust, community and care are key factors to enhance customers’ attitudes. Along with customization, cultivation and choice in terms of the variety of designs, customer satisfaction can be generated. With all of the eight factors considered, brand loyalty can be potentially built among customers. Key word: Small E-commerce business, Brand loyalty, E-loyalty