Abstract
nline grocery shopping is taking centre stage across the world, including in emerging economies such as South Africa. As a result, four grocery retailers (Checkers, Woolworths, Pick n Pay and Spar) have launched mobile applications (apps) for online purchasing that promise same day delivery, mostly in metropolitan cities around South Africa. However, research indicates that there is a significant difference in perceptions towards online grocery shopping between Generation X (aged 44 to 62) and Generation Y (aged 24 to 43) consumers, which affects their overall e-service quality, e-trust, e-satisfaction and ultimately e-loyalty towards an e-retailer. Therefore, this study adopts multidisciplinary theories that are aligned with relationship marketing to give a comprehensive understanding by examining these differences. These theories include the generational cohort theory, online relationship marketing theory, social exchange theory and expectation disconfirmation theory. In this regard, the study aims to determine the different perceptions of perceived risk, platform content, ease of use, service convenience, e-service quality, e-trust, e-satisfaction and e-loyalty among Generation X and Generation Y consumers in South Africa. Additionally, online shopping experience as a moderator and traditional and electronic word of mouth (eWOM) as mediators are also explored. As to the knowledge of the researcher, there is limited research exploring e-service quality, its precursors and outcomes among Generations X and Y in South Africa in an online grocery shopping context. It is very important to examine and understand these differences to identify ways to build sustainable relationships with current and prospective consumers. Therefore, this study aims to determine how e-service quality perceptions among different generational cohorts (X and Y) affect online shopping loyalty in the South African retail grocery industry.
The study was based on the principles of positivism, which involves using an existing theory to test hypotheses and obtain measurable results. The main purpose of the study has been defined as explanatory descriptive research to answer specific research questions (i.e. investigate how e-service quality perceptions among different generational cohorts (X and Y) affect online shopping loyalty in the South African retail grocery industry). A three-phased sampling approach, including probability (stratified sampling) and non-probability sampling (quota and convenience sampling) was used to obtain the sample size of 622 respondents from which the quantitative results were drawn. Combining both probability and non-probability sampling methods enabled the researcher to maximise the strengths of each approach and compensate for their limitations, resulting in a more comprehensive and subtle difference in understanding of the research objectives. The South African Generation X and Generation Y respondents that have purchased groceries online using the mobile apps of either Checkers Sixty60, Woolies Dash, asap! and SPAR2U in the past three months within the Johannesburg,
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Tshwane and Ekurhuleni metropolitan cities were surveyed online through the provision of an invitational email and link to complete the questionnaire.
As a comparative study, the study followed a two-model approach (Model A and B) to ascertain the differences between the two generational cohorts (Generation X and Generation Y). Model A tested the proposed constructs using a Generation X consumer perception, whereas Model B focused on testing the perception of Generation Y consumers. The two models were tested using a partial least squares structural equation modelling analysis with the aid of SMART PLS 4.0. The findings of partial least squares structural equation modeling analysis revealed that perceived risk has a negative significant impact on e-service quality, platform content, ease of use, service convenience had a positive significant impact on e-service quality, service convenience had a positive significant impact on e-satisfaction, e-service quality had a positive significant impact on e-trust, e-trust had a positive significant impact on e-satisfaction and e-satisfaction had a positive significant impact on e-loyalty for both Model A (Generation X) and Model B (Generation Y). With regard to the online shopping experience as a moderating construct, there were dissimilar findings between Model A and Model B. For instance, for Model A, the moderating role of online shopping experience between e-trust and e-satisfaction was found to be negatively significant among Generation X consumers, whereas, for Model B, it was non-significant (rejected) among Generation Y consumers when purchasing groceries online using mobile apps. Lastly, the mediation role of eWOM on the relationship between e-satisfaction and e-loyalty was found to be significant for both Model A (Generation X) and Model B (Generation Y), whereas traditional WOM (WOM) was non-significant for both models. In addition, reliable and valid proposed models were developed for both generational cohorts (Generation X and Y) to assist the South African online grocery retailers in enhancing e-loyalty through e-service quality, e-trust and e-satisfaction among consumers who purchase groceries using mobile apps.
Based on the empirical findings of the study, recommendations and suitable strategies for online grocery retailers who sell to end-user consumers via mobile apps were provided. Several recommendations were suggested to help online grocery retailers better understand the holistic purchasing journey of Generation X and Generation Y consumers in the online grocery industry. In addition, the proposed recommendations will assist online grocery retailers to fully understand the selected e-service quality antecedents and how they influence e-trust, e-satisfaction, and, ultimately, e-loyalty in the South Africa market. The interrelatedrecommendations and proposed strategies will help to develop tailored marketing strategiesfor a specific generational cohort and improve e-trust and e-satisfaction, which will be verycrucial to increase e-loyalty. In a fiercely competitive online grocery industry, understandingfactors that drive e-loyalty will immensely assist e-retailers to possess the necessary insights
to operate, position themselves and attain a sustainable edge over other e-retailers in the industry effectively and efficiently.