Building loyalty through perceived value in online shopping – does family life cycle stage matter?

Abstract

This study explores the influence of Family Life Cycle (FLC) stages on the perceived value-customer loyalty relationship in e-shopping. A customized Indian FLC classification system comprising ten FLC stages was used in this study. Perceived value was measured as Utilitarian Value (UV) and Hedonic Value (HV), which acted as second-order constructs formed by utilitarian and hedonic benefits. Customer loyalty was measured as Re-Purchase Intention (RPI), positive Word of Mouth (WOM) and Willingness To Pay More (WTPM). Based on the split into FLC stages, 827 married women e-shoppers in metropolitan cities participated in the study. Value-loyalty and benefits-loyalty relationships were measured using PLS-SEM and differences in group behaviour were observed using PLS-MGA. Results showed that UV had a significant dominant effect on all value dimensions, while HV had a significant effect on only the dimension, WOM. Moreover, the values/benefits influencing dimensions of loyalty differed as women transcended from one FLC stage to the next. In effect, this study showed strong empirical evidence that FLC stages play a significant role in e-shopping Value-Loyalty and Benefit-Loyalty relationship.

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