BRM THE LOYALTY

LOOP: HOW
GROUP 2
• PRAKUL RASTOGI (M069- 23)
PERSONALIZATIO
• AKSH TYAGI (M114-23)
• AMAN KUMAR (M110-23) N FUELS E-
• AKSHAY KUMAR GOEL (M283-23)
• SOURAV KUMAR SINGH (M077-23) COMMERCE
• RUBAL VERMA (M113-23)
• KASHISH KAPOOR (M080-23) GROWTH
CONTEN
TS 01INTRODUCTION
05 CLUSTER ANALYSIS

02PROBLEM DEFINITION 06 FACTOR ANALYSIS

03CHI SQUARE 07 RECOMMENDATION

04T-TEST 08 CONCLUSION
INTRODUCTIO
N
• This research aims to understand how personalization influences customer loyalty comprehensively.
• E-commerce is evolving towards customer-centric approaches, focusing on understanding and meeting
individual customer needs.
• Personalization is central to this transformation, tailoring experiences to suit each customer's
preferences.
• While widely recognized, the effectiveness of personalization strategies and the most impactful
approaches remain unclear.
• This research aims to fill this gap by investigating personalization in e-commerce and its impact on
customer loyalty.
• By analyzing strategies and effectiveness, the study seeks to guide businesses in leveraging
personalization to build a loyal customer base.
RESEARCH
METHODOLOGY
• This research is based on exploratory and single cross-sectional descriptive research designs.
• Scaling Technique: A non-comparative scale is used for the research, as we do not aim to draw a
comparison between two firms.
• Sampling: Due to time constraints in conducting this research, we used convenience and snowball
sampling techniques to collect data.
• This research employed a mixed-method approach, leveraging quantitative and qualitative data
collection and analysis methods. We used both primary and secondary methods of data collection.
Under primary methods, we did interviews and focus-group discussions. Based on the findings, we
prepared a questionnaire to capture data for quantitative analysis. For secondary analysis, we referred
to works of literature and articles online.
PROBLEM
DEFINITION

MANAGEMENT MARKETING
DECISION RESEARCH
PROBLEM (MDP) PROBLEM (MRP)
1. What is the effectiveness of
Should an e-commerce business invest personalization on customer loyalty?
in implementing personalization 2. What are the customer perceptions of
strategies to increase customer loyalty? privacy in the context of personalization?
RESEARCH RESEARCH
OBJECTIVE QUESTION
S S
RQ1: How does the use of product
1. Evaluate the effectiveness of different personalization
recommendations impact customer repurchase
approaches employed by e-commerce businesses.
intention?
2. Identify potential risks and ethical considerations
RQ2: How do customer privacy concerns
associated with personalization in the e-commerce moderate the relationship between
context. personalization and loyalty?
3. Understand customer perceptions of personalization. RQ3: Do targeted ads have an impact on
4. Analyze customer attitudes towards various data customer loyalty in e-commerce businesses?
collection practices and personalization techniques RQ4: How does personalization impact impulse
purchase behavior?
RQ5: What are the factors impacting shopping
frequency behavior?
 Analysis of data collected

CHI SQUARE
The asymptotic significance of the Pearson chi-square test is
0.458, which is more than Alpha (0.05). Thus, we accept the null
hypothesis that no significant association exists between income

TEST Null Hypothesis: No association between income and shopping

frequency.
and shopping frequency.

We infer that shopping frequency is not solely dependent on

income. It might vary depending on several factors, including the
Alternate Hypothesis: Association between income and shopping
personal preferences of the household members.
frequency.

Since no significant association exists between income and shopping

frequency, we are not considering the strength of the association in
this case.
​Managerial Implications:
The findings suggest that income alone is not a sufficient factor for customer segmentation in this context.
Focusing solely on income levels for marketing and product offerings will not be effective. Other
considerations, including demographics, psychographics, and behavioral considerations, should be taken
into account.
 T-TEST
Two Independent Sample test From the output in SPSS, Levene’s test for equality of variances,
μ1: Mean of responses indicating the preference of respondents the significance is 0.133, which is greater than α (0.05), so the null
to use online shopping belonging to the male category. hypothesis is accepted, meaning that the variances of the two
μ2: Mean of responses indicating the preference of respondents samples are equal.
to use online shopping belonging to the female category.
H0: μ1 = μ2 Now, checking the significance, from one-sided p-value is 0.101,
H1: μ1 ≠ μ2 which is greater than α (0.05), so the null hypothesis is accepted.
Managerial Implications: So, μ1 = μ2.
Managers should avoid basing marketing strategies for their e-commerce We interpret that the response to the ‘preference of respondents to
businesses solely on the basis of gender. Instead, focusing on personal use online shopping in male category’ is the same as the
preferences and needs across all genders would be more beneficial.
‘preference of respondents to use online shopping in the female
category.’
CLUSTER The analysis resulted in the formation of two clusters. The following

ANALYSIS
exercise was performed to understand the clusters that are formed.

Cluster 1: Cautious online buyers

Cluster 2: Online shopping enthusiasts

Managerial Implications:
• We find that customers in cluster 1 are mindful of ethical
concerns while shopping online. E-commerce businesses
targeting this cluster need to employ techniques that
reassure these customers about transparency and ethical
data collection and handling.
• Customers in cluster 2 are online shopping enthusiasts.
These customers prefer to shop online and find personalized
experience helpful. E-commerce business targeting these
customers will benefit from employing personalization
approaches.
FACTOR
H0: Correlation matrix is insignificant, i.e. correlation
matrix is an identity matrix (diagonal value = 1,
rest= 0)

ANALYSIS
Listed below are the factors resulting from factor
loading:-
H1: Correlation matrix is significant.
we find that the significance (p-value) of Bartlett’s test of
sphericity is 0.001. This significance level is < α (0.05). So, H0 is
rejected. Therefore, the correlation matrix is significant.
• Factor 1: Convenience of online shopping.
Also, the KMO value is 0.668, which is greater than 0.5. Thus,
• Factor 2: Positive response to personalization the conditions for factor analysis are met.
approaches.
• Factor 3: Ethical concerns about online shopping. Managerial Implications
• Factor 4: Data privacy concerns.
• Factor 5: Personalization's impact on sales. • Investing in technologies that personalize
recommendations, marketing messages, and product
• Factor 6: Personalization's effect on increasing
offerings can give businesses a competitive edge and
sales.
The reproduced correlation matrix indicates that only increase customer satisfaction.
46% of nonredundant residuals have values greater than • Managers have a responsibility to make online shopping fair
0.05. This is less than 50%, so this proves the validity of and ethical. This means being clear about data use, avoiding
the analysis. unfair pricing, and ensuring products are sourced in a
responsible manner.
REGRESSION From table R2 = 0.495. Therefore, 49.5% of the model
(variance in dependent variable) is explained by independent
variables.
H0: R2 = 0
H1: R2 > 0
As per the multiple regression test, the p-value of the model
is <0.001, which is less than α (0.05) and thus it is
significant. Therefore, the Null Hypothesis (H0) is rejected.
Thus, R2 is significantly higher than 0.

We can make the regression equation from unstandardized β

values.
Y = 0.984 + 0.572X1 + 0.182X2
 Managerial Implication:
• Focus on convenience: Based on the findings, e-commerce
businesses can emphasize offering a wide range of

REGRESSION convenient options on their platform. This could include

user-friendly navigation, diverse payment methods, fast
delivery options, and hassle-free returns.
Interpretation of β values • Personalization efforts: While customized experiences have
• β1 = 0.572. This means, everything else remaining a positive impact, their relative influence is lower than
constant, when there is one unit increase in X1, the Y convenience options.
increases by 0.572 unit. • Model limitations: Managers should be aware of the
• β2 = 0.182. This means, everything else remaining limitations of the model due to heteroscedasticity. The
constant, when there is one unit increase in X2, the Y results should be interpreted with caution and consider
increases by 0.182 unit. further analysis or refinement of the model to improve its
From Standardized values, we can interpret the relative reliability.
Cross-tabulation:
importance of the independent variables on dependent
We have taken cross-tabulation between preference for online shopping
variable.
and gender.
For X1, Standardized = 0.642
From here, we can infer that 59.6% (31.9% + 27.7%) of the total sample
For X2, Standardized = 0.176 size consider that they prefer online shopping (values greater than 3 in the
From here, we can say that X1 has more importance than X2. survey questionnaire). So, even though from regression, we found out that
we have not taken considerable variables that can explain the variance in
preference for online shopping, there is considerable interest in the
sample towards online shopping. So, we should try to include more
variables in the regression model that can explain the variation in the
dependent variable (online shopping preference) well.
RECOMMENDATI
ONS
• E-commerce segmentation should move beyond income-based models to
incorporate demographics, psychographics, and behavior.
• Avoid gender-based assumptions in marketing strategies and prioritize understanding
individual customer preferences.
• Identified two customer clusters: one focused on ethics, requiring transparency, and
ethical data handling, and the other seeking personalized experiences.
• Businesses should employ targeted promotions for the personalized experiences
cluster and emphasize transparency and ethical practices for the ethics-focused
segment.
• Convenience is paramount in online shopping experiences.
• Acknowledge potential limitations such as heteroscedasticity in the model and
suggest further analysis and refinement.
• Consider additional factors like user-friendly navigation, diverse payment methods,
fast delivery, and hassle-free returns for future studies to enhance explanatory
power.
CONCLUSION
This research addresses e-commerce personalization's impact on customer
loyalty, offering actionable insights for enhancing the online shopping
experience. It advocates for advanced segmentation methods beyond
basic demographics, emphasizing individual preferences and behaviors
over gender-based strategies. Distinct customer segments were identified,
requiring tailored approaches. However, the study admits limitations in the
model and urges caution in interpretation. Future research should explore
additional factors like interface usability and payment options for a
comprehensive understanding. By implementing these suggestions, e-
commerce businesses can enhance personalization, prioritize customer
experience, and foster long-term loyalty.
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THANK YOU!