IMPACT OF TRUSTWORTHINESS AND WEBSITE USEFULNESS ON CUSTOMER RETENTION RATE IN ONLINE BUSINESS OF PAKISTAN

Abstract

Purpose of the Study: The purpose of the study is to identify the impact of trustworthiness and website usefulness on customer loyalty and satisfaction which leads to increase the retention rate in online businesses. It is believed that there is a lack of customer retention rate in E-Commerce industry of Pakistan. Customers prefer to purchase from retail markets rather than from online stores. Research Methodology: In this research, the data has been collected from 255 respondents including both males and females through questionnaire having close ended questions. The data is further analysis using frequency table, graph and regression. In order to analyze the data regression and correlation test were performed via SPSS. In this research Non- probability and convenient selection approach was used. As Domyei (2007) stated that convenience sampling method is a type of non-probability or non-random sampling technique. Because in this technique individuals from targeted population are selected on certain definite standards. Like Geographical Location, Easy Access, Timely availability, & willingness to participate. Research Findings and Result: In this research, we analyze that trust worthiness and website usefulness has moderate effect in building customer loyalty and satisfaction. All these components or independent variables of this study are observed useful and showed a significant impact with a significance value less than 0.05, on dependent variable which is Customer Retention. Practical Implications: The findings resulting from this research will help the investors and government of Pakistan to implement effective policies and eliminate those causes which are resulting a decreasing trend of Customer satisfaction and retention in this online industry. This research is very important for all the online ventures to increase the switching cost and retention rate of customers by focusing on the following grounds: • Companies need to attractively visualize their own website. • Connecting their web portals to local advertising department. • Sponsoring a mega public event • Sharp Focus on their Supply Chain Strategies