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Research on e-commerce customer repeat purchase behavior and purchase stickiness

Research on e-commerce customer repeat purchase behavior and purchase stickiness PurposeThe purpose of this paper is to study the regularity of the e-commerce customer repeat purchase behavior, and provide new ideas and methods for e-commerce vendor’s e-commerce customer management.Design/methodology/approachThrough analysis of the priority in activity mechanism and new customers’ dynamic growth in customer’s purchase behavior, this paper builds a model of the customer’s purchase frequency, which can be verified by the empirical data gathered from www.taobao.com, www.jd.com, www.yhd.com and www.amazon.com.FindingsThis paper discovers the regularity that the customer’s purchase frequency obeys power law distribution. Empirical data show that this model can represent the real repeat purchase process well. At the same time, it provides the theoretical basis for the vendor regional management by introducing the concept of stickiness and the corresponding methods of calculation.Research/limitations/implicationsThis study only focuses on the basic model of e-commerce customer’s repeat purchase and lack of study on influence factors about the characteristics of different vendors and it needs to make extensions considering fluctuation of new customers, or customer aging and loss.Practical/implicationsThis study provides a theoretical basis for vendor to take different marketing strategies through classifying customers based on the characteristic of purchase stickiness.Originality/valueThe definition and calculation method of purchase stickiness is put forward for the first time, and the value of purchase stickiness changes with the number of purchase. It provides the theoretical basis for the vendor regional management, and will be good for further studying the e-commerce market about customer’s purchase behavior. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Nankai Business Review International Emerald Publishing

Research on e-commerce customer repeat purchase behavior and purchase stickiness

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2040-8749
DOI
10.1108/NBRI-05-2017-0026
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to study the regularity of the e-commerce customer repeat purchase behavior, and provide new ideas and methods for e-commerce vendor’s e-commerce customer management.Design/methodology/approachThrough analysis of the priority in activity mechanism and new customers’ dynamic growth in customer’s purchase behavior, this paper builds a model of the customer’s purchase frequency, which can be verified by the empirical data gathered from www.taobao.com, www.jd.com, www.yhd.com and www.amazon.com.FindingsThis paper discovers the regularity that the customer’s purchase frequency obeys power law distribution. Empirical data show that this model can represent the real repeat purchase process well. At the same time, it provides the theoretical basis for the vendor regional management by introducing the concept of stickiness and the corresponding methods of calculation.Research/limitations/implicationsThis study only focuses on the basic model of e-commerce customer’s repeat purchase and lack of study on influence factors about the characteristics of different vendors and it needs to make extensions considering fluctuation of new customers, or customer aging and loss.Practical/implicationsThis study provides a theoretical basis for vendor to take different marketing strategies through classifying customers based on the characteristic of purchase stickiness.Originality/valueThe definition and calculation method of purchase stickiness is put forward for the first time, and the value of purchase stickiness changes with the number of purchase. It provides the theoretical basis for the vendor regional management, and will be good for further studying the e-commerce market about customer’s purchase behavior.

Journal

Nankai Business Review InternationalEmerald Publishing

Published: Aug 6, 2018

References