Website Efficiency, Customer Satisfaction and Customer Loyalty: A Customer Value Driven Perspective

Author:

Mei Xue (Operations and Information Management Department, The Wharton School, University of Pennsylvania, Philadelphia, PA 19104)
Patrick T. Harker (Operations and Information Management Department
The Wharton School, University of Pennsylvania, Philadelphia, PA 19104)
Gregory R. Heim (Operations and Strategic Management Department, The Wallace E. Carroll School of Management Boston College, Chestnut Hill, MA 02467)
December 2000

ABSTRACT:

This paper proposes a customer value driven perspective for analyzing the design of Internet retailing websites, the initial stage in the electronic service delivery channel. As a loyal customer base is crucial for website profitability over both the short and long term, customer satisfaction plays a critical role in determining both website efficiency and customer loyalty. The quandary facing Internet retailers is how to meet consumers’ complex expectations for the retailing website without sacrificing speed and simplicity. The key to addressing this dilemma is to focus on customer value. This paper presents an empirical study of these issues using data from food retailing websites. The study uses Data Envelopment Analysis (DEA) and a post-DEA statistical analysis approach proposed in Xue and Harker (1999) to evaluate website efficiency and to analyze how website features affect website efficiency.

Full Text: Website Efficiency

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