Determinants of South African online consumers’ e-loyalty toward curated subscription boxes
Date
2022
Authors
Naidoo, Deneline
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Abstract
Consumer goods subscription boxes are a relatively new phenomenon where consumers pay a recurring fee to get a delivery of goods within a specific category of products according to a set frequency. Subscription box services offer a unique experience to consumers as they no longer need to shop for individual items on their own, and can instead outsource the decision-making process to a specialist. However, these types of businesses find it difficult to attract and retain consumers because of the seemingly long-term buy-in of the subscription mechanism. The purpose of this research paper was to identify the determinants of South African online consumers’ e-loyalty toward curated subscription boxes. A survey method was adopted to test the research model which included satisfaction, utilitarian, hedonic and perceived risk motivations. Data was collected using an online questionnaire from a sample of 118 respondents. Data was subjected to tests of reliability and validity, and then correlation and regression techniques were used to test the study hypotheses. The findings showed that satisfaction along with the utilitarian motivations were the most important determinants of e-loyalty. Specifically, product offering, convenience and monetary savings were the most important utilitarian values promoting e-loyalty. Hedonic and perceived risk motivations were secondary. The research findings contribute to the present body of knowledge in online box subscription services, and offers advice for these providers to better their offerings.
Description
A research report submitted in partial fulfilment of the requirements for the degree of Master of Management in the field of Digital Business to the Faculty of Commerce, Law and Management, Wits School of Governance, University of the Witwatersrand, 2022
Keywords
UCTD, E-loyalty, Online loyalty, physical goods subscriptions, Product offerings, product information, Satisfaction