Customer Loyalty Enhancement of Online-to-Offline Marketing in Beauty Industry

Abstract

In the competitive and low entrance barrier beauty industry, customer loyalty is a critical factor for business success. Research literature of customer relationship management recommends various factors contributing to customer loyalty in the general setting, however, there are insufficient studies empirically weigh the importance of each critical factor for the beauty industry. This study investigates and ranks empirically the critical factors, which contributes to customer loyalty of Online-to-Offline (O2O) marketing in the beauty industry. Our result shows that customer satisfaction, customer switching costs, customer trust, corporate image and customer value positively influence customer loyalty of O2O marketing and in the order of decreasing importance. Attributes contributing to the five critical factors have also been studied and ranked. Findings of this study can help the beauty industry to develop an effective O2O marketing plan and hence customer loyalty can be enhanced through the process of implementing targeted marketing activities.