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Motivations for Repurchase Intention: Customer Retention in the Pure-Play Fashion Industry
2015 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The fashion industry is one of the top selling industries in the online world. However, withclothes being complex experience goods that require a lot of involvement from the customerbefore the purchase, it is more difficult to sell this online. It can be particularly difficult forpure-play retailers, companies that only operate online, and therefore lack some of theimportant factors in creating a relationship such as interacting with their customers face-toface.Competition is fierce in the fashion industry and pure-play fashion retailers are movingtheir focus from customer acquisition to customer retention. This due to the fact that it costsup to five times more to acquire a new customer than to retain an existing one. Studies alsoshow that very few customers repeat their purchases. Despite the importance of customerretention, little to no research was found on the specific topic of online customer retention forpurely virtual clothing retailers. The purpose of this study was to see why customers repeattheir purchases from pure-play fashion retailers, and the research question was the following:RQ: What are the motivations for online customers to repeat their purchases from pure-playfashion retailers?The empirical data was collected through focus groups where the participants were students atLuleå University of Technology, a target group characterized by a higher price sensitivity andbeing located in a remote city with few brick-and-mortar options when it comes to purchasingclothes. The findings of this study indicated that the order fulfillment process is what thecustomers focus on the most when they decide whether or not to shop from the same siteagain, and website quality, price, and relationship quality were also important. Overall, thecustomers seemed to value convenience and thorough information higher than low prices or apage that they could adapt and personalize.

Place, publisher, year, edition, pages
Keyword [en]
Social Behaviour Law
Keyword [sv]
Samhälls-, beteendevetenskap, juridik, Customer retention, pure-play, fashion industry, repurchase intention, online customer retention
URN: urn:nbn:se:ltu:diva-51491Local ID: 8b3164e4-6982-47b7-a21f-193050117fabOAI: diva2:1024853
Subject / course
Student thesis, at least 30 credits
Educational program
Business Administration, master's level
Validerat; 20150615 (global_studentproject_submitter)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

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