Managing Customer Relationships on the Internet

MASTER S THESIS 2005:02 PB Managing Customer Relationships on the Internet Muhammad Ali Khan Muhammad Amer Shahzad Social Science and Business Administration Programmes Department of Business Administration and Social Sciences Division of Industrial Marketing and e-commerce CONTINUATION COURSES Supervisor: Tim Foster 2005:02 PB ISSN: 1653-0187 ISRN: LTU - PB - EX - - 05/2 - - SE

ACKNOWLEDGEMENTS ACKNOWLEDGEMENTS This thesis is a part of our program; Masters in E-Commerce at Division of Industrial Marketing at Luleå University of Technology. It is written in autumn 2004-05. It was very interesting to learn this way of study, when we were acting in a new way, with the websites to find the answers or our questions. Thanks GOD! We have done it. We would like to thank our supervisor Tim Foster, without the guidance and supervision of whom, we might not be able to write this thesis in time. He encouraged and pushed us, in a right direction, to finalize it. We learnt much from our supervisor, during classed and during his supervision. We would also like to thank our opponent, whose criticism gave us an opportunity to see our work in another way and to improve it. At the end we are very thankful to our friends who helped us during this process of learning and writing, and our parents who always encouraged and supported us to be innovative in our life. Luleå University of Technology, January 2005 Muhammad Ali Khan Muhammad Amer Shahzad I

ABSTRACT ABSTRACT Virtual exchange is bringing buyers and sellers together electronically rather than having to go to a physical market place. The Internet is affecting every facet of business life, obliterating current business models. It is becoming increasingly clear that stalled or failed CRM projects are often the result of companies lacking a thorough understanding of what CRM initiatives entail. The purpose of our study is to find out that how customer relationships are being managed (CRM) on the Internet. Our research explores, describes and begins to explain, how the most successful airlines of the world are satisfying their customers by providing services through their websites. How the companies are describing online environment for their customers. Is it user friendly and meeting their requirements of customers or not. In our study, we have used individual case analysis for each company and cross case analysis for both companies. Our finding concerns with the contents and their customer services, provided on the websites of airlines. The contents match with theory mostly, but there are still some to implement by them. They are much efficient in providing online services but still they need to provide complete shipping information and money back guarantee. Companies should use chat functions for customer s immediate interactions, whether cookies are better option. That s why companies are spending billions of dollars to process information of their customers for CRM on internet. Finally, implications for theory, managers and future research are described. II

TABLE OF CONTENT TABLE OF CONTENT 1 INTRODUCTION....1 1.1 Background 1 1.2 Problem Discussion...4 1.3 Research Purpose & Questions..5 1.4 Outline of Thesis 6 2 LITERATURE REVIEW..8 2.1 The Online Environment..10 2.1.1 Key Quality Factors in Website Design 10 Clarity of purpose..10 Design....11 Accessibility and speed.. 14 Content...15 2.1.2 Determinants of Successful Website Design. 17 Page Loading Speed...17 Business Content 18 Navigation Efficiency 19 Security..20 Marketing/Customer Focus 21 2.1.3 APID Model Proposed....21 Attracting...22 Informing...23 Positioning.24 2.2 Customer Services...25 2.2.1 Framework of Customer Services.25 Placing Order.26 Payment Option.27 Shipping Information.28 Returns...28 Interactive Services 29 Web Policy.30 2.2.2 Dimensions of Internet Service Quality 31 Performance...32 Access 32 Security..32 Sensation 32 Information 33 2.2.3 Benefits of e-crm... 33 Improved Customer Satisfaction 33 3 CONCEPTUAL FRAMEWORK...36 RQ1 How can the online environment be described?...36 RQ2 How are the customers served in this online environment?...38 Emerged Frame of Reference 39 III

TABLE OF CONTENT 4 METHODOLOGY.....40 4.1 Purpose of Research.40 4.2 Research Approach..41 4.3 Research Strategy.41 4.4 Data Collection Method...42 4.5 Sample Selection..43 4.6 Analysis of Data...43 4.7 Quality Standards.44 5 DATA PRESENTATION 46 5.1 Case 1: Britishairways.com.46 5.1.1 How can the online environment be described?...46 5.1.2 How are the customers served in this online environment?...49 5.2 Case 2: Singaporeair.com 50 5.2.1 How can the online environment be described?...51 5.2.2 How are the customers served inthis online environment?...53 6 DATA ANALYSIS.....56 v 6.1.1 Within-Case Analysis of Britishairways.com...56 6.1.2 Within-Case Analysis of Singaporeair.com..58 6.1.3 Cross-Case Analysis....60 6.2 How are the customers served in this online environment?...63 6.2.1 Within-Case Analysis of Britishairways.com...63 6.2.2 Within-Case Analysis of Singaporeair.com..65 6.2.3 Cross-Case Analysis....67 7 FINDINGS AND CONCLUSIONS...70 7.1 How can the online environment be described?...70 7.2 How are the customers served in this online environment?...71 7.3 Implication for managers.73 7.4 Implications for theory.73 7.5 Implications for further research..74 REFERENCES......75 APPENDIX A OBSERVATION CHECKLIST.......81 APPENDIX B www.britishairways.com...84 APPENDIX C www.singaporeair.com....85 IV

TABLE OF CONTENT LIST OF FIGURES Figure 1: Outline of Thesis 6 Figure 2: Conceptual Model for a quality website..9 Figure 3: Attributes which affect the effectiveness of a commercial Website 22 Figure 4: Preferred Methods of Customer Contact..30 Figure 5: An emerged frame of reference..39 LIST OF TABLES Table 1: Customer Service Components 26 Table 2: Dimensions of Internet Service Quality..31 Table 3: Research Question One 37 Table 4: Research Question Two 38 Table 5: How online environment is described in britishairwas.com and singaporeair.com cross case analysis.... 61 Table 6: How britishairwas.com and singaporeair.com serve customers in online environment cross case analysis...68 V

INTRODUCTION 1 INTRODUCTION This chapter provides background information of Customer Relationship Management and the virtual Customer Relationship Management that will then be followed by a problem discussion. Finally the chapter will end with the purpose of study, the research questions and the outline of thesis. 1.1 Background Customer Relationship Management (CRM) is a comprehensive set of processes and technologies for managing the relationships with potential and current customers and business partners across marketing, sales, and service regardless of the communication channel. The goal of the CRM is to optimize customer and partner satisfaction, revenue and business efficiency by building the strongest possible relationships and at an organizational level. Successful CRM requires a holistic approach to every relationship with the entire organization sharing and contributing to that view. (Greenberg, 2001) CRM is a comprehensive business and marketing strategy that integrates technology, process and all business activities around the customers (Anton, 1996; Anton and Hoeck, 2002). The concept of RM spread like wildfire during the 1990s. In its wake followed first 1to1, then CRM. The last two concepts represent the same basic thinking; together with less known designations they re brands for offerings from various consultants. Today, CRM is the most frequently used term, but as late as 1998 it was only one of several acronyms that fought for attention. RM is the broader, overriding concept. CRM and 1to1 do not deal with networks but focus on the customer-supplier interaction (Evert Gummesson, 2002) CRM is the values and strategies of relationship marketing with particular emphasis on customer relationships turned into practical application (Evert Gummesson, 2002). CRM is a process designed to collect data related to customers, to grasp features of customers, and to apply those qualities in specific marketing activities (Swift, 2001). CRM is not a new concept. In fact, CRM has continuously existed from the past. However, CRM has recently become the focus of attention. Because, 1) The relationship with customers is newly recognized as a key point to solidify competitive power of a company; 2) As companies procure large volumes of data related to customers, they can perform customer management more easily and efficiently using data warehousing, data mining, and other information technologies; 3) The Internet has opened up a new medium for business and marketing, and we can express customer actions in online into data. In other words, the scope of data to analyze behaviours of customers is extended, and the environment for one-to-one marketing has been enhanced. (Ahn, 2001) CRM technologies can be divided into three functional categories, operational CRM, analytical CRM, and collaborative CRM. (Trepper, 2000) 1

INTRODUCTION Operational CRM category includes customer-facing applications that integrate front-, back-, and mobile offices, with the purpose to increase the efficiency of customer interactions. (Trepper, 2000) This involves automating business operations processes, such as order management, customer service, marketing automation, sales-force automation, and field service. In order to succeed employees must have the right skills and the company must have a customer-centric focus. (Lawrence et al, 2001) Analytical CRM category involves applications that analyze customer data generated by operational tools. (Trepper, 2000) The data is often stored in a data warehouse, which can be described as a large repository of corporate data (Dyche, 2002). The data stored in the data warehouse shall give the company information that will allow them to provide value to their customers. Hence, it is crucial to capture the right data, a process that must be accomplished with great customer care and understanding (Newell, 2000). A Data Warehouse is more detailed described below. Collaborative CRM category focuses on facilitating interaction between customers and companies (Trepper, 2000). One-way communication must be replaced by two-way communication, where the customer gets involved early with issues affecting their future purchase behaviour (Lawrence et al, 2001). In other words, Collaborative CRM involves any CRM function that provides a point of interaction between the customer and the supplier. For example, technologies, such as electronic communication, are used to facilitate relevant, timely, and personalized interaction with the customers (Greenberg, 2001). In some organizations, CRM is simply a technology solution that extends separate databases and sales force automation tools to bridge sales and marketing functions in order to improve targeting efforts. Other organizations consider CRM as a tool specifically designed for one-to-one (Peppers and Rogers, 1999) customer communications, a sole responsibility of sales/service, call centers, or marketing departments. CRM is not merely technology applications for marketing, sales and service, but rather, when fully and successfully implemented, a cross-functional, customer-driven, technology-integrated business process management strategy that maximizes relationships and encompasses the entire organization (Goldenberg, 2000). A CRM business strategy leverages marketing, operations, sales, customer service, human resources, R&D and finance, as well as information technology and the Internet to maximize profitability of customer interactions. For customers, CRM offers customization, simplicity, and convenience for completing transactions, regardless of the channel used for interaction (Gulati and Garino, 2000). CRM technology applications link front office (e.g. sales, marketing and customer service) and back office (e.g. financial, operations, logistics and human resources) functions with the company s customer touch points (Fickel, 1999). A company s touch points can include the Internet, e-mail, sales, direct mail, telemarketing operations, call centers, advertising, fax, pagers, stores, and kiosks. Often, these touch points are controlled by separate information systems. CRM integrates touch points around a common view of the customer (Eckerson and Watson, 2000). 2

INTRODUCTION CRM is defined as an acquisition and retention of customers and the resulting profitability (Menconi, 2000; Nykamp, 2001). Customer retention is cheaper and more profitable than customer attraction. As Inc. magazine reports, the customer acquisition cost per single transactions for online retailers ranges from $100 for amazon.com, to $245 for fashion retailers such as bluefly.com, to $500 for furniture.com (Inc. Tech 2001, 2001). Furthermore retention contributes to the creation of reputation, which also lowers customer acquisition costs. Reputation is an intangible asset, which modern corporations explicitly manifest in the form of brand advertising. CRM is used to manage and increase the value of B2C relationships. But while the implementation of CRM helps to acquire and retain customer, it also has increased operational costs. Managing customer relationship is expensive and cumbersome especially where cross-divisional communications are required to link customer needs to fulfilment channel. Web-based CRM uses the Internet to integrate and simplify customer related business processes, reducing costs of customer facing operations and increase the interactivity and self-service of the customers. (Web Associates, 2000) While the objective of CRM remains the same, the development of information and communication technology allows for a significant increase in the scale and scope of customer services. The e-crm is defined as the application of information and communication technology to increase the scale and scope of customer services. It s imperative that a company s various divisions share a single view of customers, and project a single view of company back to the customer. So, e-crm systems need to be designed fundamentally from a customer s perspective, and with a holistic approach to integrated lead generation, lead conversion and customer fulfilment process. Brent Frei, president and CEO of Onyx software, provide this caution for e-crm; e- CRM is the customer facing Internet portion of CRM. It includes capabilities like selfservice knowledge bases, automated email responses, personalization of web content, online product bundling and pricing and so on. E-CRM gives Internet users the ability to interact with the business through their preferred communication channel, and it allows the business to offset expensive customer service agents with technology. So the value is largely one of improved customer satisfaction and reduced cost through improved efficiency. However an e-crm strategy deployed alone can also backfire and actually result in decreased satisfaction. If the customer s interactions through electronic channel are not seamlessly integrated with those taking place through traditional channels, the customer is likely is to become frustrated. Also, if the basis for the content being served up to the customer doesn t consider all the data gathered by the rest of the business, the customer is likely being served in a wrong way. Therefore, it s imperative that e-crm be installed in conjunction with traditional CRM and that the two are tightly integrated. Otherwise the value of e-crm might actually be negative (Paul Greenberg, 2004). With the involvement of the Internet in CRM, its functions have been changed a lot. By using the Internet, CRM becomes more interactive. Customers are actually transacting with the companies. The new customer-facing products and services can be implemented 3

INTRODUCTION more quickly. Besides, the customers served are actually world-wide. Here comes e- CRM. Companies adoptions of e-crm are slow but success rates are high due to its complexity (IT-Analysis.com, 2001). Some recent CRM packages integrate the speechenabled specific application functions which embrace customer support, order management, and sales force automation or modules within individual applications. These products are provided by companies such as Siebel Systems, Oracle, and SAP. 1.2 Problem Discussion Implementation of e-crm has resulted in increased competitiveness for many companies as witnessed by higher revenues and lower operational costs. Managing customer relationships effectively and efficiently boosts customer satisfaction and retention rates (Reichheld, 1996a, b; Jackson, 1994; Levine, 1993). E-CRM applications help organizations assess customer loyalty and profitability on measures such as repeat purchases, money spent and longevity. CRM applications help answer questions such as "What products or services are important to our customers? How should we communicate with our customers? What are my customer's favourite colours or what is my customer's size?" In particular, customers benefit from the belief that they are saving time and money as well as receiving better information and special treatment (Kassanoff, 2000). (Injazz J. Chen, Karen Popovich) E-CRM was developed on the basis that customers vary in their needs, preferences, buying behaviour, and price sensitivity. Therefore, by understanding customer drivers and customer profitability, companies can better tailor their offerings to maximize the overall value of their customer portfolio. Reichheld (1996) has documented that a 5 percent increase in customer retention resulted in an increase in average customer lifetime value of between 35 percent and 95 percent, leading to significant improvements in company profitability. Without a clear e-crm strategy, it is difficult to determine and coordinate the organizational changes needed for e-crm to be successful long term. E-CRM strategy is based on an understanding of how the customer wants to do business with the firm, rather than how the firm wants to do business with the customer. E-CRM strategy development, therefore, must be a joint process between the customer, suppliers and the seller. Since, many businesses are using the Internet to expand their reach, improve customer service and develop and maintain closer relationships with their customers. For example, customer relationship management (CRM) software enables marketers to offer online interactions that are customizable to the individual customer, allowing online marketers to better match their offerings and the online experience to consumers needs, wants and preferences, even in markets with millions of prospects and customers. Thus, a successful Web site can be instrumental in its impact on the relationship effectiveness of a firm and significantly add to the bottom line. Yet, in order to determine what constitutes a successful Web site, it must be able to understand how users perceive and utilize it. 4

INTRODUCTION One study of 202 CRM projects found that only 30.7 per cent of the organisations said that they had achieved improvements in the way they sell to and service customers (Dickie, 2000). Moreover, a recent and broader survey estimates that 70 per cent of companies will ultimately fail (Giga, 2001). The Giga survey revealed that: companies generally underestimate the complexities of CRM, lack clear business objectives and tend to invest inadequately in the provision of CRM software. While the findings by Giga highlight a fairly gloomy scenario, it is clear that not all organisations are facing failure. (Christopher Bull, 2003). It is becoming increasingly clear that stalled or failed CRM projects are often the result of companies lacking a thorough understanding of what CRM initiatives entail. 1.3 Research Purpose & Questions The purpose of this study is to provide a better understanding of how the Internet is used as a strategic tool in e-crm. Based on the above purpose, the following research questions would be posed in order to address the purpose: Research Question 1: How can the online environment be described? Research Question 2: How are the customers served in this online environment? 5

INTRODUCTION 1.4 Outline of Thesis This study contains seven chapters. We are at the end of the first chapter, which describes us the background and problem discussion with purpose of our research and two research questions. The contents of the rest of the chapters are described below the figure. 1. Introduction 2. Literature Review 3. Conceptual Framework 4. Methodology 5. Data Presentation 6. Data Analysis 7. Findings & Conclusions Figure 1: Outline of Thesis Source: Created by author 6

INTRODUCTION The second chapter provides the literature about two research questions. Chapter three describes the frame of reference for the study, aimed at conceptualizing the useful aspects of the literature for our research. Next, the chapter four is methodology describing and motivating research methodology used in this study. Chapter five presents data collected from the websites of two airlines within the frame of reference described in the previous chapter. Chapter six is analysis, including within case analysis of each airline website and cross case analysis, where the data is compare from both studies of research questions. Finally, chapter seven draws the conclusions of the study with recommendations for managers, theory and further research. 7

LITERATURE REVIEW 2 LITERATURE REVIEW The aim of this chapter is to explore the role of Internet as a strategic tool in the implementation of Customer Relationship Management. Firstly, literature related to the first question, Website environment will be described. Then, literature related to the second research question, virtual customer relationship management will be presented. After that, studies related to third question, benefits of e-crm will be discussed. Cox & Dale have been developed a conceptual model for assessing how a Website meets the needs of customers. The study has identified quality to be judged in four categories. Each category relates to a different part of the Website experience and serves to enhance customer satisfaction to the extent that the customers will return. (1) Ease of use (the design of the Website); (2) Customer confidence (how the Website inspires trust by the customer); (3) On-line resources (capability of the Website to offer and deliver products on services); (4) Relationship services (how the Website bonds with the customer and inspires loyalty). Ease of use is given to all the factors relating to the design of the Website. The Key Quality Factors (KQFs) in this category reflect the usability of the Website during customer navigation and aim to reduce customer frustration. The virtual nature of a Website means that communication with the customer has to be enabled through the use of text, graphics and animation. Guidance through the Website is done by means of links and searches. All of these factors relate to the design of the Website and its usability factor. If the design is of poor quality, customers will not be able to navigate pages to find what they are looking for, and are unlikely to make transactions. (Ibid) The second category customer confidence refers to how customers feel when visiting a Website in terms of accessibility, speed, reliability and customer service. The KQFs identified should help to create a good experience for the customer by making them feel safe and confident in not only using the site to find information but actually make transactions. Trust is a crucial factor in e-business and is one of the main barriers to customers making purchases on-line due to security issues with credit cards and privacy issues concerning what happens to their personal details. Trust can also be linked to customer service. Customers need to know that they can contact a company if problems occur and preferably interact with a company employee either via e-mail, telephone or by instant messaging on-line. The use of FAQ should satisfy customers and deter them from using customer service, but the ability to contact a person heightens the feeling of confidence in the Website. (Ibid) For the category on-line resources the KQFs refer to the products and services offered on the Website, with a focus on the Website's ability to provide sufficient information for customers to make the correct choice and be able to make a purchase on-line. If customers are making purchases on-line, products need to be shown and described 8

LITERATURE REVIEW sufficiently well for customers to make choices. Once selected and ordered, confirmation details and delivery expectations should be communicated clearly and quickly to the customer and where possible, they should have the means to keep track of their order online. Others refer to the feedback mechanism during the transaction process and afterwards, which allows the customer to be kept informed of their order. (Ibid) Figure 2: Conceptual Model for a quality website Source: Cox & Dale, 2002 The category relationship services contain KQFs that add value to the customer experience by building a relationship with them or by offering extra services and information. It contains the quality factors that enable the Website to establish a relationship with the customer through customisation, frequent buyer incentives and through offering services that add value. (Ibid) 9

LITERATURE REVIEW We will follow a conceptual model for a quality website in our rest of the chapter to collect a literature for website environment, customer services. 2.1 The Online Environment The medium of the Internet and the development of e-commerce are progressing extremely fast on a global scale (Constantine & Lockwood, 1999). However, while the Internet acts as a faster and less costly platform for consumers and businesses it has inadvertently increased the importance of customer satisfaction. By making transactions faster and easier it has enabled the customer to switch just as quickly between e- businesses, causing the element of competition to take on a new diversion. Heskett (1994) stressed the importance of customer satisfaction to achieve good financial performance in services in the physical world, and the same can be said of e-commerce where a customer can be lost if unable to access a Website or if the experience proves unsatisfactory. In e-businesses there is too much attention pays to the aesthetic design of the Website, which ends up looking amazing but actually causes frustration because customers have difficulty in finding what they are looking for. According to Ody (2000), the main reasons why customers go onto the Internet is to find information or buy a product or service with an emphasis on convenience and speed. Ziff-Davies (2000) points out that the concept of the Internet has raised customers' sensitivity to fast customer service. Any e-business that sticks to this basic principle when designing its Website should be relatively successful. According to Donlan (1999) although delivery is also highly important in fulfilling customer needs, perceptions and expectations also need to be managed and the Website plays a main role in this. Once the basis of the Website function is clear, the type of customer it is hoped will be attracted can then be assessed and judgement made on what graphics, effects and other matter can be added to increase the value proposed. (Cox & Dale, 2002) 2.1.1 Key Quality Factors in Website design Cox & Dale (2002) has identified a conceptual model of key quality factors (KQFs) in Website design. These are different KQFs that can be used as a check list when creating a website or redesigning a new one. The detail of KQFs is: Clarity of purpose This refers to what the Website is offering to the customer. It must state clearly whether it is providing just information or whether it enables the customer to make transactions on- 10

LITERATURE REVIEW line (Holt, 2000; Creative Good, 2000; Vassilopoulou and Keeling, 2000). One Website assessed as part of the study offered quotations for insurance, allowing the customer to fill in details as to what needed to be insured and the conditions required. When the customer had finished, he or she expected the Website to calculate an insurance package but instead it thanked the customer and explained that the insurance details were obtainable by telephone or in person from the relevant branch. The information given on the home page was clearly misleading and users will probably not access the site again. (Cox & Dale, 2002) As well as stating what the Website offers, the information should be clearly and logically organised (Foremski, 2000; Vassilopoulou & Keeling, 2000): if customers have to take time to find the information they are looking for, they are unlikely to stay on the Website. In some cases, user instructions are needed before the customer can navigate the Website. An example of this is exchange platform Websites where customers can exchange goods with other customers or offer prices and requests to businesses through the Website. This type of business model has rarely been accessible offline and is a new experience for many people. Therefore clear instructions are needed directly from the home page to avoid confusion and frustration. (Cox & Dale, 2002) Design The role of Web designer is occupied by professionals and amateurs alike. Books on the subject mean that anyone, whether creating a Website as a hobby at home or starting up a new business, can do it but usability is the key to a successful Website. PR Newswire (2000), report an IDC study which concluded that "Web performance and design are currently the largest obstacles to online purchases". The Website should reflect the image that the company is trying to project and which the customer will remember and return to. The key issues in design are: The navigation of a Website cannot be carried out without valid links (Constantine & Lockwood, 1999; Spool, 1999). Links should change colour once used so that the user knows they have used the link before and should correctly describe the information to which they lead (Creative Good, 2000; Vassilopoulou and Keeling, 2000). This is also relevant for graphics which can be used as links. Well-thought-out Websites feature graphics which change to text when the mouse cursor passes over them, revealing the category of products relating to the graphic. (Cox & Dale, 2002) Constantine & Lockwood (1999) also discuss the problem of page bouncing and deep drilling. Page bouncing occurs when the user follows links that serve a series of pages and then has to return to the original page before finding a link to more pages. This results when the information is finely subdivided. The answer is to use probability to decide whether a user interested in one topic will be interested in another and to create a direct link between the two. The other problem of deep drilling is similar to page bouncing but refers to Websites where the user has to follow multiple links which are sometimes confusing and force the user to go back and forth between pages to find 11

LITERATURE REVIEW information which should logically follow on from information found on the earlier pages. (Cox & Dale, 2002) Links are the main way for the users to navigate their way around a site and should be clear and to the point. Spool (1999) argue that links should not be embedded in pages of text which requires the user to scroll down to find them and also that the link should not be so long as to fall on to two lines. This as well as misleading the user into thinking that there are two links instead of one is also a waste of space. (Cox & Dale, 2002) Although an increasing number of people around the world are starting to use the Internet, one should never assume that once a user has navigated one Website, they can easily navigate them all (Constantine & Lockwood, 1999). Each Website represents a different business or value proposition and therefore the layout will differ according to what the Website is offering. Furthermore, the pages within the Website need to be consistent in appearance and design (Spool, 1999). Vassilopoulou & Keeling (2000) argue that it is also important that the same procedures occur for similar or related things wherever the user may be within the site. In order to achieve this level of consistency many Websites feature a menu which appears in the same place, with all the main links on every page. Spool (1999) discovered that menus or navigation bars at the top and bottom of a page allowed more users to navigate the site successfully than menus at the side. Creative Good (2000) point out that there should be a "home" button on every page to help the user get back to the home page if necessary without having to click on the back button in the browser menu, which could be a lengthy and frustrating process depending on where the user is in the site. Spool (1999) also found that users navigating sites with a site map were twice as successful in finding what they wanted, compared to those sites without, and that informing the customer of where they were was important. Creative Good (2000), on the other hand, argue that a Website with a clear menu and relevant information should be satisfactory and that users are not actually interested in where they are within a site as long as the links are clear. The pages on a Website should ideally be short; however, in some cases scrolling pages are sufficient if the information is suitably laid out and not excessively long. Holt (2000) argues that the use of headings and paragraphs is as important as in a book, magazine or newspaper and there should be a button at the bottom of the page or each section asking if the user wants to return to the top of the page. For transaction purposes, it is crucial that customers are able to make purchases quickly with minimum pages in the check out process (see Foremski, 2000; PR Newswire, 2000). Amazon.com have been praised for their "one click" order process and one or two pages should be the limit in all Websites enabling ordering on-line. It also goes without saying that the process of opening an account should also require just one page for ease of use by the customer. (Cox and Dale, 2002) Foremski (2000) discusses further issues for shopping on-line and points out that some Websites make simple mistakes which cause frustration for the customer. One such mistake is not to provide a check out button so that the customer can proceed straight to 12

LITERATURE REVIEW the order process from any page. There should also be a shopping basket button for the user to press at any time to see what they have placed in their virtual shopping basket, allowing them to remove items if so wished. (Cox and Dale, 2002) Constantine & Lockwood (1999) examine the feedback principle which is the basis for any software design and is especially important for interaction with customers on the Internet. The principle basically implies telling the user what is happening inside the system. This could refer to advising the user of an error in their address input and that the Web page is being updated, allowing the customer to see what is currently in their shopping basket or confirming order details. Many Websites will inform the user of a mistake by writing the information in red next to the relevant box or area. This communicates clearly to the user that they have made a mistake and need to redo something in order to proceed. The communication of a Website is carried out via text, graphics and moving animation, with text being minimal and to the point and clearly set out. Spool (1999) found that Web pages with a lot of white spaces were less successful than those with few or no white spaces. Due to the creative input of designing a Website, there can be an overwhelming urge to use multiple graphics and inappropriate animation. Customers use the Internet because it is fast and putting large graphics onto Web pages slows down access to the page and will probably frustrate the customer into abandoning the site. Graphics should therefore be small and relevant as well as being sharp to the eye (Holt, 2000; Foremski, 2000; Vassilopoulou and Keeling, 2000). Holt (2000) suggests that colour is very important and is something that designers ignore at their peril. A dull Website will most likely deter customers because it projects a negative image. Constantine and Lockwood (1999) state that animation should not distract users from the content of the page and the information they are looking for. Foremski (2000) points out that designers tend to forget that most visitors to their sites still use low modem connections and may not be able to support animations. Clever e-businesses offer an option to the user as to whether they want to browse their Website with or without downloading software to make the site more interactive and animated, which avoids irritating people who simply want to retrieve relevant information and quickly. (Cox & Dale, 2002) The use of a search mechanism to navigate a Website is one of the first strategies used by customers to a Website. Spool (1999) found that a third of the users tried this facility first before resorting to links and the menu. One of the outcomes was that users assumed that the search would cover the entire site and got confused when the search only covered a particular area; this needs to be made clear next to the search button. The use of drop down lists can clear up this confusion because it informs the user of what information is available without the user having to guess what to type into the search box (Creative Good, 2000; Foremski, 2000). Once the search facility has been used, the results should be listed in order, starting with the most relevant. Creative Good (2000) suggest that the results should ideally be on one page only and limited in number; however, if the site is a search engine, one would 13

LITERATURE REVIEW expect a few pages of results depending on the amount of sites it scans. According to Spool et al. (1999) one of the important aspects is that the results are relevant and information such as advertisements will deter users from using that particular search facility again. Creative Good (2000) also mention the use of language in the search criteria; they found that many search facilities did not recognise singular and plurals for searching the same word. Whether filling in a form to register with a Website or proceeding to order and purchase, the layout of such forms for personal detail entry should be self-explanatory or provide examples of the format to be used. Some Websites inundate the user with a mass of unnecessary instructions. Constantine & Lockwood (1999) comment on the design of the input fields and how address fields which are equal in length have no link with the information to be entered. A postcode field should be short enough to hold six or seven letters and not be given the same length as a field for a city. At the same time, the address layout, for example, should be relevant to the nationality of the customers using the Website. (Cox & Dale, 2002) Accessibility and speed Perhaps the most critical factor for any Website is accessibility. This refers to the ability for customers to access the Website of a particular e-business and navigate its site. Vassilopoulou & Keeling (2000) rate accessibility as the speed with which the home page and following pages download. Holt (2000) also stresses the importance of a fast downloading home page. Zona Research (Gann, 1999) have calculated the probability of customers using a site if the page response was too slow, reporting that, if the page downloaded under seven seconds, fewer than 10 per cent of customers would leave the site and that if the page takes eight seconds, 30 per cent of customers will leave, and if it exceeds 12 seconds, 70 per cent will leave. Bearing in mind that customers use the Internet for convenience and speed, they will not tolerate slow access. The zone of tolerance for customer expectations leaves no margin for error and e-businesses must address speed and anticipated capacity needs as a matter of prime importance. (Cox & Dale, 2002) Gann (2000) also emphasises the fact that Websites must be accessible 24 hours a day, seven days a week, and 365 days of the year. The research group IDC believe that "by 2003, between a third and half of all ecommerce will be conducted outside normal business hours" (Gann, 2000). Andersen Consulting (1999) carried out a survey of purchasing on-line over the Christmas period 1999 and discovered that not only were many sites blocked, under construction or otherwise inaccessible, but that the time for ordering varied enormously. After attempting to buy 480 gifts at 100 different Websites, they were only able to complete 350 orders and found that the order time at e-tailers was shorter than for on-line BAM companies and that it also depended on the time of day. This finding indicates that e-businesses need to study when customers are making maximum use of a site and adjust resources accordingly. (Cox & Dale, 2002) 14

LITERATURE REVIEW Content Content refers to what a Website actually offers in terms of information and is as important as the design aspect. If the information is insufficient, misleading or irrelevant, the customer will most likely opt to use a competitor site. The content refers not only to what type of products or services the Website is offering but also what policies the e- business has, for example, on the use of customer information or on returning goods. This latter information is not always easily accessible but it is important to customers, especially when buying products or services on-line or if they have to register to access the site. (Cox & Dale, 2002) The breadth of selection of products and services should be relative to the e-business and what it is offering; however, the access to the selection is important. Creative Good (2000) commented on sites where the customer has to fill in a survey before they can see the selection of products and services on offer, which causes frustration and abandonment of the site. In the same vein, Forrester Research carried out a survey that found that if a product or service was offered on the second or third page, customers were 50 per cent less likely to find them (Foremski, 2000). It is important that the selection of items be immediately accessible from the home page through obvious links; the need for speed and convenience is emphasised. Vassilopoulou and Keeling (2000) argue that for any product advertised on the Internet, a clear picture with all the necessary information of product brand, size, colour, capabilities and price should be provided so that the customer is not misled. Creative Good (2000) reported on a Website in which the information relating to the picture of the products was at the side so customers had to spend time matching the information to each product. It is often such simple mistakes as this that can cause intense frustration. As well as stating a product description, the conditions of purchasing a product should also be made available to the customer. Clicksure (1999) states that information on warranties and guarantees should be made available to the customer either during the selection process or when purchasing an item. One of the most irritating factors for customers shopping on-line is to find that the item they have requested is not available. If they are informed of this whilst choosing the product (i.e. the information on stock availability is real-time) they may well continue to browse the Website and find something else of interest. The worst case scenario is for the customer to place the order and to be sent an e-mail a few days later informing them that the product is out of stock (Andersen Consulting, 1999). Creative Good (2000) gave an example of a Website, where the customers could place items in their shopping basket but then only found out during the purchasing process whether the goods were in stock. It also showed a shipping price even though the goods could not be shipped. In the Andersen Consulting study (1999), it was found that many companies carried on taking orders to be delivered for Christmas even though the products were either not in stock or would not make a pre-christmas delivery. This indicates the importance of providing real-time information for customer convenience. 15

LITERATURE REVIEW Ideally, any delivery information should be made accessible from the home page or with the product information so that customers are aware of the prices before they begin to make any purchases (Vassilopoulou & Keeling, 2000). If customers go through the purchasing process only to find that the shipping costs are more than they want to pay, they will leave with negative feelings. If they know this cost from the outset, they may still proceed with a purchase or be able to contact the company to discuss it further and thus the company may be able to turn a negative factor into a positive experience. (Cox & Dale, 2002) Concerning delivery times, some Websites have managed to streamline their back-end processes to get orders out to the customer the next day. For products such as CDs, books and clothes, this delivery expectation can be reached but for other products, expectations are not so high. As long as the Website advises the customer of the time limit for delivering a product, the customer will be content if it arrives within that time. As Creative Good (2000) points out, service quality is heightened if e-businesses take into account the holiday seasons and issue a warning to customers that they need to order earlier due to later delivery times. It is important for the customer when making a transaction through a Website to be aware of all the company terms and conditions of that purchase. Clicksure (1999) is a company that offers a quality certification for e-businesses that they can put on their Website. In return the e-businesses must ensure that company policies on cancelling orders, returning goods and refunds as well as the terms and conditions of the sales are accessible to the customer throughout the Website. The Website should also give the choice of law for settlement of disputes and whether the company is a member of a regulatory board or ombudsman. (Cox & Dale, 2002) Due to the global nature of the Web and the ability to make purchases across borders, a Website should also list any extra charges or tax that a customer will have to pay if they are not from the same country as the origin of the e-business. (Cox & Dale, 2002) Lack of security whilst making transactions online is reported to be the main barrier to customers shopping on-line. It is crucial that any Website has a security policy accessible on every page or offers a secure payment method on-line (Verdict, 2000; Vassilopoulou & Keeling, 2000; Vernon, 2000; Clicksure, 1999). The risk of fraud on-line is proposed to be the same as paying by credit card in a restaurant; however, customers are far more reluctant to give out card details on-line and new ways of paying for goods over the Internet are being rapidly developed. Some e-businesses have their security managed by a third party, as described by Vernon (2000). Another key barrier to shopping on-line is privacy (Wiegran & Koth, 2000; Vassilopoulou & Keeling, 2000; Clicksure, 1999; Vernon, 2000; Holt, 2000; Ody, 2000). Unless they give permission, customers do not want their personal information being accessed by third parties or being used by companies to increase their customer base. In some countries this kind of information is legally protected, in others it is not the case 16

LITERATURE REVIEW and with the Internet crossing many borders, worried customers should learn to look at the privacy policies before committing any personal details to that e-business. (Cox and Dale, 2002) Clicksure (1999), points out that it is a legal requirement that Websites contain a physical address for the company with title and registration details so that customers can contact the company or check that it exists. The Internet has become a new arena for fraud and deceit and customers should be able to check to see whether the companies behind the Websites are bona fide. (Cox & Dale, 2002) 2.1.2 Determinants of Successful Website Design The success of e-commerce for any company, especially if it is not a well-known name, is greatly dependent on the appropriate design of its Website. Gehrke & Turban (1999) have indicated five major categories of web site design, which are page loading speed, business content, navigation efficiency, security, and marketing/customer focus. Then, it is identified that how to create an effective website using these categories of website design. Page-Loading Speed According to a survey conducted by Hamilton (1997) speed (i.e., slow speed) was the number one complaint of Web users (77%). Most potential e-commerce customers do not want to wait for a seemingly endless page to load. Instead, they hit the browser stop button and go elsewhere. Therefore, large, pretty graphic files and cool animation may come at a price to the Web business owner in terms of lost business (Busch, June 1997, p. 98-99). In some cases page-loading speed is out of the control of the Website builder. Such factors as server speed, customers computer power and modem speed, quality of telephone lines, and other factors are to be blamed. Recommended remedies are as follows: Keep graphics simple and meaningful: Wilson (1998) refers to excessive graphics as Image Inflammation. He recommends limiting the total graphics and text for a single Web page to 60KB. A rule of thumb is to allocate about 5KB, 5KB, 16KB, 8KB, 16KB, and 10KB, respectively, to each of these elements). Limit the use of animation and/or multimedia plugin requirements: Animation is a contributor to slow page loading. Haine (1998) recommends that if a designer thinks it is necessary to have animation, it should be made to stop cycling after ten seconds to allow the user to scroll it off the screen. Nunley (1998) suggests that information content should account for 80% of the site. Audio clips and other multimedia gizmos that require users to download plug-in programs, install them, reboot and return to the Website drive away users. Blower (1998) advises against using proprietary tags and graphics requiring a banner stating, Best Viewed with Brand X Browser. An anonymous author in the 17

LITERATURE REVIEW March 1998, Economist recommends that designers should not require viewers to download software to view a Website s contents. Use thumbnails: Thumbnail graphics, which typically contain only about 10 KB, are an effective way to utilize graphics without significantly increasing the page-loading time. Thumbnails give the user a choice of whether or not to wait for the loading of a larger picture without forcing it as a default. Provide text-only choice: Providing an option to load text only increases speed and allows the use of a greater variation of browsers (Heath, 1998). Check and monitor your server and Internet route: Sometimes a slow Website is not the fault of the designer (Smith, 1997). Use progressive rendering: Sklaire (Janal, 1997, p. 352) describes this term as allowing text to load first, followed by graphics. This allows the user to read the content while the graphics are loading. Business Content Business content is a major Website issue because the quality of presentation and usefulness of the content determine whether a potential customer will be attracted to, or driven away, from the site. Recommended remedies are as follows: Use clear and concise text with proper spelling and grammar to describe the business: This is by far the most commonly prescribed recommendation in the literature. Too often business Websites are ambiguous, one has no clue as to what the business is really about, what the company sells, or what its services are. (Gehrke & Turban, 1999) Provide contact information on each page: A site with no information on whom to contact may drive business away. Smith (1997) recommends installing mail-to links on every page. Maloff (1997, p. 70) suggests a more elaborate method, which is posting threaded on-line discussions, message boards, or even interactions via real-time, on-line chat. Use simple background colors and textures: Heath (1998) prefers green on black, and Wilson (1998) provides a how to dealing with colors and textures. Provide free services or useful information: Free content is a valuable feature (Bancroft, 1997). But free content is likely to decrease as the Web becomes more mature and commercial. The Wall Street Journal, Business Week, and others provided free information for months and then started to charge for it. Wilson (1997) believes that prospective customers are more likely to purchase when site owners make sure that the free service is closely related to what is being sold. 18

LITERATURE REVIEW Make regular changes to the site: This is wise for two reasons: 1) Visitors want to see fresh material, and 2) Updating the site often will ensure that the information is current. (Gehrke & Turban, 1999) Limit registration forms and the amount of requested information on them: Another way to drive away customers is to blitz them with intimidating registration forms, and especially those that request a burdensome amount of unnecessary information. (Gehrke & Turban, 1999) Jokes on the site avoid or not. There are differing opinions regarding this recommendation (Heath & Guglielmo, 1998). Contrary to this opinion, Janal (1997, p. 311) states that telling jokes (and adding a new one each day) on the Website is a good business strategy and results in repeat visits Create a Frequently Asked Questions (FAQ) section: It enhances users understanding of what is offered at a site. It also helps the site owner by reducing the amount of correspondence necessary to answer repeatedly the same questions. Avoid Under Construction signs: Berst (1998) listed this as one of his Seven Deadly Website Sins. If you must use such a sign, provide an approximate date of opening. Tadjer (1998) recommends to design for flexibility. This means that urgent changes can be made without having to take the site off line. Navigation Efficiency Without efficient and user-friendly navigation, the user is likely to get confused, lost, or frustrated and leave the site for good. Use well labeled, accurate (no broken) links: An ambiguously labeled link or a link that hits a dead end is one of the most annoying design faults in a Website. Haine (1998) recommends to word each link carefully so that it answers two questions: 1) What will I get if I click here? and 2) Why would I want to get that?. Avoid the use of frames: One of the reasons for using frames is when a company wants to make its logo visible from all underlying pages. But frames have been overused in many Websites. Tadjer (1998) brought out that frames make book marking difficult and some browsers do not support frames. Wilson (1998) adds: frames cut up the screen into windows that require excessive vertical and/or horizontal scrolling, they look ugly, they do not always print out correctly on some browsers, they are resented when site owners use them to link to from external sites, and their content is often skipped when search engine spiders come to call. Berst (1998) adds: some frames do not scroll when they should while others do scroll when they should not and some frames produce a miserable patchwork effect. Bremser (1997) supports the use of frames but only if the frame layout is made simple. 19

LITERATURE REVIEW Keep navigation consistent: There is some disagreement in the literature on this issue. Wilson (February 1998, p. 5) states, Provide as many alternate ways to navigate your site as necessary. Buttons, image maps, hyperlinks, search engines, and drop-down menu systems all contribute to overall user friendliness when used appropriately. Berst (1998, p. 1) disagrees by stating, Sometimes you click on a left sidebar. Sometimes you get a drop-down box. Okay, I know we re all still inventing this as we go along. But if your core navigation metaphor changes mid-stream, you have committed a sin. Even if you haven t created perfect navigation, at least be consistent. Please. Tadjer (1998) supports a navigation bar on each page. Also, buttons on any navigation bar should be those that let customers make purchases. Provide an effective search engine in the site: This applies mainly to large sites or for sites with a lot of randomly accessed content. Haine (1998, p. 4) puts it very succinctly: in ecommerce, each failed product search is equivalent to a clerk saying Sorry, I don t think we carry that item. Search engines should be prominent and easy to use. Use distinctive hot buttons: Hot buttons provide easy navigation and a personalized effect to the Web page. Busch (1997) recommends using unusual shapes and colors in addition to the traditional rectangular or circular shapes. Use long pages with links rather than subsequent pages: There is some disagreement on this issue. Heath (1998) suggests that long pages with links within the page are confusing because users scroll down to read a paragraph, then return to the top of the page only to select the same paragraph again from the index. Janal (1997) disagrees by stating that using long pages with links should be encouraged. Linking within one long page is also faster than reloading subsequent pages. Use site maps/guides if the site has many underlying pages: A large site with several underlying pages should have a map or guide that allows the user to jump to any page from any page. (Gehrke & Turban, 1999) Avoid links that open up new browsers or pop-up ads: These links may be both invasive and offensive. It wastes the users time and energy because new pages and/or browsers popped opened force them to wait, and point and click to close. (Gehrke & Turban, 1999) Security Security has become a very important issue with the development of the Internet Websites. The major recommendations are listed below: Stress the use of security: To enable secure transactions it is necessary to implement SSL or SET technology. As Tadjer (1998) states, the words secure server help to make the consumer feel safe. Also, an optional link to a security practices page and/or legal notices for visitors to read also add an additional calming effect. 20

LITERATURE REVIEW Protect your copyrights: Anytime a Website owner writes, paints, or composes something new, it is advisable to copyright it. It is also important to place a statement in the Web page indicating that the material is copyrighted. (Gehrke & Turban, 1999) Generate a confirmation page after a consumer makes a purchase: A confirmation notice (and number) of a purchase is very useful. Further, an e-mail confirmation that the order was shipped is also a good idea. (Gehrke & Turban, 1999) Marketing/Customer Focus A Website should be evaluated as to how well it markets its products and services, and also as to how well it keeps the customer in focus. Listed below are some recommendations regarding this topic: Provide as many payment alternatives as possible: The more payment alternatives a site offers, the more likely a sale will result. If certain customers refuse to accept the fact that an encryption setup, then give them the option to fax or call their credit card number in. Also, if international business is expected, make it easy to accept local currency. Provide current exchange rates. (Gehrke & Turban, 1999) Be up front about business practices: One of the best ways to gain trust is to be honest with the customers about business practices. If cookies are used, the site owner should disclose that information. Also, the business practices should be displayed openly on the home page to build reassurance. (Gehrke & Turban, 1999) Use an auto responder: The storefront owner should always automate to expedite e-mail replies. A customer who fails to get a timely answer to a question via e-mail is likely to be a lost customer. Most e-mail programs, like Microsoft Exchange, have auto responders built in. By using intelligent agents, it is possible to sort e-mail and send customized replies. (Gehrke & Turban, 1999) Write the Website in English or give the English choice: English is recognized as the worldwide universal business language. Therefore, writing a Website in English (or at least giving the English choice) seems to be the logical thing to do. Buttons with the language choice provides the user with the convenience to select the preferred language (Gehrke & Turban, 1999). 2.1.3 APID model proposed One of the comprehensive formulations in assessing Website effectiveness was developed by Simeon (1999). Simeon proposed the AIPD model, arguing that an effective Website must accomplish four principal objectives: 21

LITERATURE REVIEW 1- Attracting; 2- Informing; 3- Positioning; 4- Delivering, Figure 3: Attributes which affect the effectiveness of a commercial Website Source: Simeon, 1999 Therefore, Websites could be evaluated in terms of their contributions to these aims. Simeon recognized that each AIPD component was multidimensional and he attempted to identify dimensions of each AIPD factors and determine their relative importance. The AIPD factors are briefly discussed below. Attracting Clearly, the extent to which an organization is able to increase traffic flow to its site, the chances that commercial interactions can take place are similarly increased (Simeon, 1999). Reach has always been a measure of marketing communications effectiveness, a focus on access to and connection with a target audience. Unconstrained by physical limitations, cyber-reach on the Internet can explode. Hence, the first task of e-marketing 22

LITERATURE REVIEW is to attract a steady stream of interested users to visit the firm's online presence. (Yang, Ahmed, Ghingold, Boon, Mei, Hwa, 2003) There are a variety of methods to attract interested parties to a company's Website. For well-known companies with an established brand, the URL or Web address, is itself a competitive advantage, a tool to attract users to the firm's online presence. When online consumers do not directly navigate to the firm's URL they can still be directed there through the use of affiliates, non-competing e-commerce firms who act as partners by directing visitors to their site to a separate e-commerce site, typically for a fee or commission should a purchase take place. Jupiter Communications currently estimates that 25 percent of Internet retail sales are the result of affiliates programs. In fact, US$80 million of sales for dozens of CNET's affiliates were facilitated in just the third quarter of 1998 (Hoffman & Novak, 2000). Banner advertisements have also been used to build traffic by many online companies. The use of banner advertisements can have a significant impact on the number of hits a Website receives and may even translate into actual purchases on the Web (Pardun & Lamb, 1999). This seems to be contradictory to the findings of a case study on CDNow by elab where only a very small percentage of visitors to CD; Now arriving through banner advertisements were actually converted into paying customers. In fact, the reported average price of banner advertisements has plummeted in recent years due to their perceived ineffectiveness. (Yang, Ahmed, Ghingold, Boon, Mei, Hwa, 2003) Some researchers advocate the use of traditional media to promote the Website (Pardun & Lamb, 1999), a technique particularly relevant for firms with integrated e-commerce and "bricks-and-mortar" presence. And, recommendations from others may also be a powerful source for attracting and acquiring new customers (Hoffman & Novak, 2000). Thus, there are numerous approaches to attracting visitors to one's Website. Clearly, however, the process must be managed to control average customer acquisition costs. Recent research shows that some companies incur an average acquisition cost that may, in some cases, be higher than the average lifetime value of the customers (Hoffman and Novak, 2000). E-marketers must evaluate the cost effectiveness of the various methods of attracting customers and budget their promotional expenditures accordingly. Regardless of how customer acquisition is accomplished, it is obvious that the first order of business in e-commerce is to bring current and potential customers to the Website. (Yang, Ahmed, Ghingold, Boon, Mei, Hwa, 2003) Informing Websites must provide content, information Website visitors will value. Typically, for commercial Websites this would include information about the company and its products and services. A Website's content, how it is presented, and how easily website content can be accessed by visitors to the site will be important influences on consumer behaviour. Website users are likely to be very involved and active in obtaining information (Perry and Bodkin, 2000). An increasing number of companies such as 23

LITERATURE REVIEW Motley Fool, for example, organize their Website's content and provide tools to ease decision making. The Motley Fool, a Website on personal financial investment, has aggressively leveraged user-generated content. It is arguably one of the most successful online communities. Many empirical studies have shown user-friendliness as one of the most important criteria influencing their use of a Website (Abels., 1998). It includes factors such as the interface and aesthetic features, global site understandability, ease of use, range of search capabilities and availability (Olsina, 1999). Hence, visitors must be able to easily move through the site and obtain the content they seek easily and enjoyably. However, this may be difficult to achieve, particularly when a Website matures, since new features and functions are constantly added to the Website. Consumers may be confused with the information content or the Website becomes complicated to use. This can result in customer defection. (Yang, Ahmed, Ghingold, Boon, Mei, Hwa, 2003) Many consumers appear to prefer graphical interface, simply pointing and clicking, which makes it easier for consumers to navigate a site and find what they want. It was observed, for example, that the more interactive a Website is compared to its competitors, the more likely that site would be included in Lycos' "top five percent site hits" (Ghose & Dou, 1998). Moreover, individuals will be more motivated to revisit a Website they interact with (Webster, 1993; Kolsar & Galbraith, 2000). Positioning The positioning capability of a Website relates to the key factors determining the company's e-commerce market positioning strategy (Simeon, 1999). Prior research has concluded that discounted price (Reichheld & Schefter, 2000), convenience and unique merchandise (Phau & Sui, 2000) are some of the market positioning strategies adopted by most e-marketers. For example, Virtual Vineyards, a Web-based company that markets wines, adopted a niche market positioning strategy. Many of the wines that are sold on the Website come from small vineyards and are not easily obtainable. Thus, the positioning capability of a Website reflects its ability to deliver the benefits sought by targeted customers brought to the site through "attracting" efforts. (Yang, Ahmed, Ghingold, Boon, Mei, Hwa, 2003) The delivery function emphasizes on the way the Website provides reliability, speed, security and interactivity (Simeon, 1999). To examine the delivery capacity, attributes such as warranty and after-sales service, customer support (Hoffman and Novak, 2000), mode of payment, downloading time (Abels et al., 1998) are user-based criteria that likely influence consumers' use of, and satisfaction with, a Website. In addition, security and privacy are vital components of effective commercial Websites (Wang, 2000; Reicheld & Schefter, 2000; Head & Yuan, 2000). Security and privacy are directly related to trust, which is a vital competitive advantage in the online environment (Spar & Bussgang, 1996; Wang et al., 2000). Recent negative publicity regarding lapses in privacy and the integrity of e-commerce vendors has slowed the development of online 24

LITERATURE REVIEW markets. Businesses must take proactive steps to build a climate of trust with end customers. (Yang, Ahmed, Ghingold, Boon, Mei, Hwa, 2003) 2.2 Customer Services The Internet offers a whole new way to communicate with the customers that will change the way business are being made. It also offers the whole new way to establish report with the customers. Many things such as answering customer questions, solving customer s problems, and selling additional products to the customers can now be computerised. The most important reason for web-based customer service is the feasibility of proffering full-time availability. New trends in business call for 24-hour accessibility. If the task is to find the right answers in a database, the solution is to let the customers for it themselves. (Sterne, 2000) 2.2.1 Framework of customer services The Internet can be used to provide consistent and comprehensive product and customer service information. This benefits the consumer by providing more non-sensory information than is possible to provide in brick-and-mortar retail stores. In addition, customer service over the Web is likely to be more consistent than traditional retailing because the online retailer can provide more detailed and extended information to any shopper at any time (Silverman, 1998). Quality of service is not subject to extreme variation resulting from peak traffic periods or sales personnel expertise. Jang & Burns (2004) have defined a framework of Customer Services. 25

LITERATURE REVIEW Table 1: Customer Service Components Variables Components Placing Order Payment Option Shipping Information Number of Order Method (Online Ordering, Phone, Mail, Fax, Catalog Quick Order) Order Status Confirmation of product order by email Number of credit card accepted Offline Payments Pay later Shipping and handling Information Sales tax information Returns Money Back Guarantee Convenient Returning information Interactive Service Web Policy Email Toll-fee number Interactive chat function FAQ Site map Privacy Security Policy Company Information Source: Jang & Burns, 2004 Placing Order Number of Order Method: Connee (1998) states that the customer should have the possibility to choose between different methods of payment when shopping online. Companies offering their products on the Internet must let the customer choose between for an example invoice, or Internet bank Order Status. This feature allows the user to find out which stage of the shipping process his/her order is in. Customers are more likely to feel satisfied if they know of the status of their order than if they do not. Customers know that company keep information about 26

LITERATURE REVIEW them in computers. They know that web site is on a computer and computers can talk to each other. The customer expectation is yours computer can talk to each other and the customer can access account information that; what was the last order customer placed? Has it shipped yet? When it will be delivered? When will my backorder be filled? Are there any alternative products I can get faster? (Sterne, 2000) Confirmation of product order by email: According to Zemke & Connellan (2001) when customers places an order in the faceless, voiceless world of e-commerce they often have anxiety that the order just placed has disappeared into a virtual black hole. That is why e- business must recognize electronic order confirmation as one of the easiest and most cost effective ways to increase customer satisfaction and provide such a service. An auto response is a very powerful little tool that sends out a canned reply to incoming message before a human even looks at it. This provides an immediate proof of delivery to make your customers know the ball is firmly your court (Sterne, 2000). Efficient handling of orders and queries: One received the orders it must be processed quickly and accurately. The order processing system prepares invoices and sends order information to those who need it. Both the company and its customer benefit when the order-processing steps are carried out efficiently. The order cycle time involves all the activities in receiving orders, approving them, delivering the product on time and collecting payment. Customers value the fast order cycle time. (Kotler & Armstrong, 1996) Payment Option Number of credit card accepted: An e-commerce application must support one or more payment systems. The load and hence delays due to processing payments must be incorporated in the instrumentation of e-commerce benchmark application. Payment systems are available for products that cost cents or fraction of a cent to thousands of dollars. Micro payment systems tend to be expensive but have a niche market The Mondex system based on Smart Cards that can support multiple applications and store cash is one of the more promising payment systems. However the most common payment system found in the majority of present-day ecommerce sites is the traditional credit card system, which means that it should be included as the base payment system into present e-commerce benchmark specifications. (Dawn Jutla, Peter Bodorik, Yie Wang, 2000) Offline Payments: Most of the customers arriving via online channel tend to use multichannel sites to collect information and place orders but prefer physical stores for pickup and payment. Less than one third of the customers in the sample are traditional online users who chose direct delivery and online payment (Teltzrow & Berendt, 2003). Offline payments involve no contact with a third party during payment the transaction involves only the payer and payee. The obvious problem with offline payments is that it is difficult to prevent payers from spending more money than they actually possess. In a purely digital world, a dishonest payer can easily reset the local state of his system to a prior state after each payment. (Asokan, Janson, Steiner, Waidner, 1997) 27

LITERATURE REVIEW Pay Later: In pay-later (credit) payment systems, the payee s bank account is credited the amount of sale before the payer s account is debited. Credit card systems fall into this category. From a protocol point of view, pay-now and pay-later systems belong to the same class: Because a payment is always done by sending some sort of form from payer to payee (whether it be a check or credit card slip or some other form), we call these systems check-like. Shipping Information Shipping and handling Information: Ideally, any delivery information should be made accessible from the home page or with the product information so that customers are aware of the prices before they begin to make any purchases (Vassilopoulou & Keeling, 2000). If customers go through the purchasing process only to find that the shipping costs are more than they want to pay, they will leave with negative feelings. If they know this cost from the outset, they may still proceed with a purchase or be able to contact the company to discuss it further and thus the company may be able to turn a negative factor into a positive experience. (Cox & Dale, 2002) Concerning delivery times, some Websites have managed to streamline their back-end processes to get orders out to the customer the next day. For products such as CDs, books and clothes, this delivery expectation can be reached but for other products, expectations are not so high. As long as the Website advises the customer of the time limit for delivering a product, the customer will be content if it arrives within that time. As Creative Good (2000) points out, service quality is heightened if e-businesses take into account the holiday seasons and issue a warning to customers that they need to order earlier due to later delivery times. Sales tax information: Due to the global nature of the Web and the ability to make purchases across borders, a Web site should also list any extra charges or tax that a customer will have to pay if they are not from the same country as the origin of the e- Business. It is important for the customer when making a transaction through a Web site to be aware of all the company terms and conditions of that purchase. (Sterne, 2000) Returns Money Back Guarantee: Successful guarantees reinforce customer loyalty. The guarantees assure the consumer that if they are less than satisfied with their purchase, they can invoke the guarantee within a certain period and under certain conditions. Offering guarantees signals to customers that the firm is committed to deliver high quality of product and service. (Hoffman & Bateson, 1997) Convenient Returning information: Many companies do not provide returning information of the products. According to Resource Marketing, their results show that only 10 out of 45 sites offered fair warranty and return services (Mardesich, 1999). Providing a lenient or fair return system will lower the perceived risk involved. The customer is more likely to purchase the product if they know that returning the product 28

LITERATURE REVIEW will be of minimal hassle and at no expense. Providing the high service is directly related to increasing sales. Companies should also pay the postage to have the product returned. Paying the postage will again, lower the perceived risk, will most likely help in stimulating sales. Of course, this can only prove to be beneficial if the product doesn t have a high defective rate. (Lee, 2003) Interactive Service It is important to remember that making the sale is the beginning, not the end, of a relationship with a long-term customer. According Janal (1998), there are many tools to help online marketers to support their activities concerning customer service. E-mail: Most companies with a large customer service situation have implemented some sort of call management system. There are countless help-desk and call-centre software packages on the market today. To make the most of them make sure there is a link between incoming e-mail and current back-end system (Sterne, 2000). E-mail falls between the spoken word and the written word. The company should emphasise clarity and professionalism and also apply the same rules to the company s email capability as they do to the phone, the fax, and the copy machine. Responding to a customer comment, question, or complaint via e-mail requires the same care used when responding over phone and in writing. (Cleaver, 1999) Frequently Asked Question (FAQ): FAQ s is a place of introduction. It provides the fundamental and lets the casually curious as well as the internet hunter-seeker come up to speed as quickly as possible. The organization of FAQ page deserves serious thought. Those that are well organized will be used and save a great deal of telephone time for both the customers and the companies. It must be easy to navigate and proper expectations must be set so customers do not spend their time only. The shorter the FAQ are the less potential help it will be and lower the value. Dates containing last updates should not be published if the company is not planning to keep the FAQ page fresh. The pointer of the FAQ must be on the homepage as a stand-out-button so people can easily find the FAQ on the web. (Sterne, 2000) Interactive chat function: Online text chatting provides real time communication between customers and suppliers. Those who are not able to get an answer online have the option to contact a service representative immediately if the company offers text chatting (Dietel, 2001). Chat Rooms also attract new customers, increase customer loyalty and enhance relationships. For example, a virtual vineyard s chat room allows a customer to discuss issues with both company experts and wine lovers. This is an e-service that is widely used to support e-communities. Sitemap: It is helpful for the customers to give the sitemap on the website because when the website information is extensive and there is not room on the screen for all of the contents it is usually possible to scroll or skim through the page. Surveys done show that to give site map is very useful for the user to find the information required to them. 29

LITERATURE REVIEW Toll-free Number: According to Zemke & Connellan (2001) toll-free numbers are still the most preferred way of contact for customers when it comes to customer service issues as shown in the figure below: Toll-free number 41% E-mail 31% Self-help on a website 18% Talk to customer- 9% service rep in person Automated touch- 1% tone services Traditional mail 0% Figure 4: Preferred Methods of Customer Contact Source: Zemke &Connellan 2001, p.18 Web Policy Privacy: One of the sticky issues that frequently crops up when the discussion gets to data gathering and customer specific information being accumulated is privacy (Sterne, 2000). Online customers are concerned about their information privacy because they do not have the ability to control the access others have to personal information on the web anonymity is valuable and regarded as describable for many online shopers as one of the most powerful methods of protecting information privacy. Information privacy is the ability of individual to control the access that others have to their personal information. Online shoping allows business on the market space to collect much more detailed consumer behaviour information than it is possible from most business on the market place. (Hoffman, Novak & Peralta, 1997) Security Policy: According to Collins (1998) one of the problems over the Internet is how to pay for goods offered on the Internet. There are several systems available that now, after many years make it feasible for both users and electronic retailers to buy and sell over the Internet. The problem has always been the one of security. The term transaction usually means monetary values changing hands. Whenever that occurs, security becomes an issue. Another problem lies in the fact that electronic mail messages are normally sent unencrypted, which means that any one who intercepts and e-mail message could read its contents without difficulty. There has been an understandable reluctance by users to send their credit cared details that could be read by any other user. Web-services that provide 30

LITERATURE REVIEW detailed information on trust and the security system implemented by companies for secure transactions are important attributes in B2C e-commerce. (Collins, 1998) Company Information: Today customers are more educated and demand more information therefore it is important to have available public materials to inform them about the company. Public materials include annual reports, brochures, articles, and company newsletters, and magazines and audiovisuals materials, for example films and audiocassettes. (Kotler & Armstrong, 1996) 2.2.2 Dimensions of Internet service quality The conceptualization and assessment of service quality continues to play an important role in marketing for both academics and practitioners alike. The SERVQUAL scale was developed in an attempt to measure how consumers perceive the quality of a service (Parasuraman, 1985, 1988, 1991, 1994). The most recent version of this scale comprises five dimensions: 1) tangibles, 2) reliability, 3) responsiveness, 4) assurance; and 5) empathy (Parasuraman et al., 1994). Current discourse among marketing academics and practitioners suggests that in order to accurately assess service quality in different industry settings, modifications of the SERVQUAL scale may be warranted (Carman, 1990; Dean, 1999). Although the number of individuals purchasing products over the Internet continues to increase, the decline and failure of such high-profile e-commerce sites as pets.com, priceline.com, and vroom.com, help to emphasize the importance of maintaining a high level of service quality in this highly competitive venue. Through phenomenological interviews with Internet users, this study attempts to fulfill this research gap by developing a preliminary set of five Internet service quality dimensions ( Trocchia & Janda, 2003). Table 2: Dimensions of Internet Service Quality Dimension Description 31

LITERATURE REVIEW Source: Trocchia & Janda (2003), How do consumers evaluate Internet retail service quality? Performance Customers must be confident of a firm's ability to confirm process and deliver their online order correctly and speedily. If mistakes occur, the company must be able and willing to put matters right with minimum hassle to the customer. A further aspect of performance is that the customer expects Web sites to load quickly and be easy to navigate. (ibid) Access Customers expect to be able to access a wide assortment of models and brands within a given product category. Clients highlight the Internet's ability to provide convenient access to products from all over the world. Having access to a wide variety of goods at one Web site reduces the need for customers to move from one site to another. (ibid) Customers, who live in remote areas, or abroad, may be particularly interested in having goods available to them that are not available locally. A number of interviewees felt that the goods offered by online retailers improved the quality of their lives. By providing such services, Internet retailers can foster a strong sense of customer loyalty and repeat purchase behaviour. (ibid) Security Customers' most significant security concern is the risk involved in using credit cards when purchasing online. Some people also expressed fears that their Internet activities were being monitored, perhaps by the government, marketing organizations or the Internet service provider. They were also concerned about being placed on mass mailing lists. (ibid) Retailers may wish to educate their customers about the security of their billing and payment systems. If the Web site has experienced few transaction-security problems, the online firm may wish to promote its track record. Online retailers may also consider disclosing the steps taken to safeguard personal information about their customers from other marketers. (ibid) Sensation Many people have an idea that shops offer an environment that the Internet cannot replicate. In particular, they liked to be able to see and touch the merchandise. However, some people preferred Internet shopping because they did not have to deal with a salesperson. Online retailers who offer sales assistance may wish to provide their regular customers with the option of automatically connecting with a salesperson or shopping on their own. (ibid) 32

LITERATURE REVIEW Information Most of people used the Internet for checking product availability and comparing prices, features and quality. While many people welcomed the Internet as a powerful and convenient research tool, others said that online searches brought up either too much or too little information, or information that was irrelevant. (ibid) Online purchase decisions are often influenced by the credibility of the Web site. Customers must be able to trust an information source because of its reputation or because of their previous experience of dealing with it. Online retailers can provide hotlinks to watchdog organizations so that customers can be reassured that they are dealing with a reputable marketer. The credibility of information may be further improved by offering generous return policies and access to a live customer-service representative. (ibid) 2.2.3 Benefits of e-crm The primary goal of e-crm is met when e-services and transactions are more convenient and less expensive for customers. This in turn facilitates the company s fundamental goals: increasing revenues and reducing costs. Web associates (2000), has defined benefits of successful e-crm implementation. Improved Customer Satisfaction E-services are always available, accommodating any schedule: Electronics commerce is exponentially increasing the availability of information, giving customers access to more knowledge, of better quality and faster than before. Businesses online provide an information-rich environment by which competitors can identify, match and Improve product innovation. A company that can respond to the needs of customers, accommodate their requests promptly and support their buying decisions creates value and wins customer patronage and loyalty (Singh, 2001). Services take less time to render, adding to customer s convenience: Customer service applications in electronic commerce are more critical than in conventional sales, since customers and merchants do not meet face-to-face. A click of a mouse is enough for an online customer to select a new provider. Online customers expect fast, friendly and high quality service. They want choice, convenience and a responsive service with a personal touch (Zhao and Gutierrez, 2001). Orders can usually be processed and delivered more quickly: In electronic commerce environment clients are solutions available to them. The increased information available to marketers and advertisers, the streamlined supply chain, and the new retail channel, 33

LITERATURE REVIEW made possible by electronic commerce, significantly affect the satisfaction of customers, whether they are individual consumers or in other businesses (Adam et al., 1999). Turban et al. (2000) suggest that increasing customer satisfaction increases customer loyalty. It has been suggested by Doney and Cannon (1997), cited by Jarvenpaa et al. (2001), that trust is an order qualifier for purchase decisions. Online self service is immediate, private, relevant and easy to access: Online services such as easy search of products and services, provision of product specifications that reduce communication costs, secure electronic system to complete transactions, updated product delivery information and quick responses to customer queries are important to win online customers and to make them keep coming back to the site for further purchases (Turban et al., 2000). According to de Ruyter (2001, p. 186), an e-service is an interactive, content centred and Internet-based customer service, driven by the customer and integrated with related organisational customer support processes and technologies with the goal of strengthening the customer-service provider relationship. Providing personalised and accurate customer information with better tracking, delivery and payment details is an online service in B2C e-commerce generally appreciated by customers. Other services such as interactive and personalised customer communications, speed and accuracy, enhanced capability to track and measure transactions, instantaneous 24x7 communications and the ability to offer different combinations of product and service elements please customers and improve buyer and customer relationships in the B2C e- space. Customer s feedback to the company is immediate and customers are gratified by knowing they can easily communicate their needs. To find answers to electronic commerce queries customers can communicate by telephone, fax or e-mail. However, because this communication was done initially by phone these remote help desks are referred to as call centres. For electronic commerce new technology products are extending the functionality of the conventional call centre to e-mail and to Web interaction, integrating these into one product. For example, e-front Office combines Web channels such as automated e-mail reply, Web knowledge bases, and portal-like self-service, with call centre agents or field service personnel. Such centres are sometimes called telewebs. Ho and Wu s (1999) research indicates that the most important factors in electronic commerce e-services appreciated by customers are logistical support, technological characteristics, information characteristics, homepage presentation and product characteristics. Logistical support requires quick response to customers needs via e-mail or fax, quickly delivering goods to customers, and providing after-sales service. Technological factors include modern computer and network facilities and well structured information systems. Information factors encompass reliable output information and secure transaction. Homepage presentation should provide for an easy to 34

LITERATURE REVIEW use interface and detailed information about goods. Product characteristics include the details of a variety of goods and services made available at lower prices. Automated software delivery eliminates users having to monitor and update software applications: As a customer negotiates for terms and conditions, electronically available information regarding price, delivery, payment methods and after-sales support is an e- service appreciated by customers. Services such as a free product for trial or free bill payment differentiate an online provider and win customers. Assurance to customers such as delivery information and secure transactions are also important for shoppers to accept this service. Shopping and purchasing is easier and more time effective ever: A consumer generally compares products attributes available from different sellers. A decision support system available on some sites aids user decision-making. Some sites provide links to efficient search engines purposes. Search engines that support customer comparison-shopping are described as computer programs that can automatically contact other network resources on the Internet, search for specific information using key words and report the results (Turban, 2000, p. 103). With so many stores online and many more added constantly, it is difficult for a customer to quickly find what they want and make a decision to buy. E-service functions incorporated on e-commerce sites that can quickly provide online shoppers with decisionmaking support win e-customers and get them to make a purchase. For example, 1-800- Flowers Web site provides useful information from experts on their site or allows customers to enter online contests. This value added service motivates customers to choose 1-800-Flowers as their floral delivery provider (Turban, 2002). Electronic services are generally free or cost less for the customer: The acquisition of e- customers is difficult and expensive (Singh et al., 2001). Customers can quite easily evaluate and compare the benefits of competing services, which result in low switching costs. Relatively little is known about how consumers perceive and how they develop loyalty to their providers (Riel, 2001). The primary goal of e-crm is met when e-services and transactions are more convenient and less expensive for customers. This in turn facilitates the company s fundamental goals: increasing revenues and reducing costs. Web associates (2000), has defined benefits of successful e-crm implementation. 35

CONCEPTUAL FRAMEWORK 3 CONCEPTUAL FRAMEWORK The aim of this chapter is to highlight some explicit theories that can be helpful us to conceptualized our research questions. First, we will take concepts from the studies which we have described in chapter two and then discuss how we will turn them into theory which will help us to collect data. The theories discussed here will shape the analysis of the case study and ultimately the conclusions drawn from it. RQ1: How can the online environment be described? The aim of first question is to investigating the determinants of a successful online (Website) environment as shown in the following table. In e-businesses there is too much attention pays to the aesthetic design of the website, which ends up looking amazing but actually causes frustration because customers have difficulty in finding what they are looking for. So, in this question we will describe that which matter and effects can be added to increase the value of the website. In the literature review we have identified different models of successful website design. Our research will base on a model Dave Determinants of a successful web site by Dave & Efraim (I999). In this model Dave & Efraim (1999) indicated five major categories of web site design, which are page loading speed, business content, navigation efficiency, security, and customer focus. Then, it is identified that how to create an effective website using these categories of website design. In our study we have selected Dave & Efraim (1999) model of website design. In this model components of a website is more extensive than other theories and all aspects of the website has been discussed. The category of website like page-loading speed has been elaborated thoroughly and described the factors which are helpful to increase the page-loading speed. Security issues are also discussed in a way that it can better match the concerns of security. 36

CONCEPTUAL FRAMEWORK Table 3: Research Question One Page-Loading Speed Security Business Content Navigation Efficiency Customer Focus o Keep graphics simple and meaningful o Limit the use of animation and/or multimedia plugin requirements o Use thumbnails o Provide text-only choice o Use progressive rendering o Stress the use of security o Protect your copyrights o Generate a confirmation page after a consumer makes a purchase o Use clear and concise text with proper spelling and grammar to describe the business o Provide contact information on each page o Use simple background colors and textures o Provide free services or useful information o Make regular changes to the site o Limit registration forms and the amount of requested information on them o Jokes on the site avoid or not o Create a Frequently Asked Questions (FAQ) section o Avoid Under Construction signs o Use well labeled, accurate (no broken) links o Avoid the use of frames o Keep navigation consistent o Provide an effective search engine in the site o Use distinctive hot buttons o Use long pages with links rather than subsequent pages o Use site maps/guides if the site has many underlying pages o Avoid links that open up new browsers or pop-up ads o Be up front about business practices o Use an auto responder o Write the Website in English or give the English choice Source: Authors own creation 37

CONCEPTUAL FRAMEWORK RQ2: How are the customers served in this online environment? The aim of second research question is to investigate that how customer can be served in online environment. Online customer services help the consumer by providing more nonsensory information than is possible to provide in brick-and-mortar retail stores. To find our result we have used a Frame of Reference of customer services by Eunyoung & Leslie (2004). This Frame of Reference gives a deep understanding of customer service components for online environment which would help to meet the users requirement. The components use in this model covers most of the area of customer services which help to increase customer satisfaction. Every part of the customer services discussed separately in detail. Eunyoung & Leslie (2004) has first discussed placing order then they have defined the components of placing order which clearly describe one area of customer services. Similarly, this model describes other areas of customer services like payment option, shipping information, return policy, interactive services and web policy. Table 4: Research Question Two Placing Order Payment Option Shipping Information o Number of Order Method (Online Ordering, Phone, Mail, Fax, Catalog Quick Order) o Order Status o Confirmation of product order by email o Number of credit card accepted o Offline Payments o Pay later o Shipping and handling Information o Number of delivery option o International shipping o Sales tax information Returns Interactive Service Web Policy o Money Back Guarantee o Convenient Returning information o Returning Methods o Email o Toll-fee number o Interactive chat function o FAQ o Site map o Shopping Help Site o Privacy o Security Policy o Company Information Source: Authors own creation 38

CONCEPTUAL FRAMEWORK Emerged Frame of Reference According to Miles and Huberman (1994), a conceptual frame work is best done graphically, in order to clarify what is already in the researchers minds. The purpose of this study is to gain a deeper understanding of the issues involved in understanding of how the internet is used as a strategic tool in e-crm. The first research question will provide an overview of online environment or the websites and the second research question will describe the services offered in this online environment. These research questions are interrelated in some issues, which are extracted from both research questions and are mention in the middle in the diagram below. The following model also provides an overview of theoretical part that have been chosen, and which will aid the collection of data, and later also facilitate the data analysis. I n t e r n e t I n t e r n e t RQ1 Page Loading Speed Less Animation Progressive Rendering Security Confirmation on Purchase Spellings Colors Information FAQs Navigation Efficiency Search Engine Site Maps Customer Focus Auto Response Security Confirmation of purchase FAQs Site Maps RQ2 Placing Order Ordering Status Confirmation by email Payment Option Pay later Shipping Information Number of Delivery Options Sales Tax Information Returning Methods Money Back Guarantee Interactive Service Interactive Chat Function FAQs Sit Maps Web Policy Security Policy Company Information I n t e r n e t I n t e r n e t Figure 5: An emerged frame of reference Source: Authors own construction 39

METHODOLOGY 4 METHODOLOGY The aim of this chapter is to present the methodology used in this research. In order to this there are series of steps have been followed. These steps are Research Purpose, Research Approach, Research Strategy, Data Collection Method, Sample Selection, Analysis of Data, and Quality Standards. 4.1 Purpose of Research Research can be classified in terms of their purpose as well as by the research strategy used (Robson, 2002). The classification most often used is the threefold one of exploratory, descriptive and explanatory (yin, 1994). Robson (2002) points out that the purpose of the research may change over time. Exploratory studies are a valuable means of finding out what is happening, to seek new insights to ask questions and to assess phenomena in a new light (Robson, 2002). It s great advantage is that it is flexible and adaptable to change (Saunders, 2000). Exploratory stud is used when a problem is not well known or the available knowledge is not absolute. An exploratory study should be designed by stating a purpose and stating the criteria to judge the exploration successful (Yin, 1994). The Objective of Descriptive Research is to portray an accurate profile of persons, events or situations (Robson, 2002). This may be an extension of, or a forerunner to, a piece of exploratory research. According to Reynolds (1971) the goal with the descriptive study is to develop careful descriptions of different patterns that were expected during the exploratory stage. Explanatory Research concerns the activity of making complicated issues understandable by presenting how their component parts fit together according to some rules (Bernard, 1998). According to Reynolds (1971) the goal with the explanatory study is to develop a theory that could be used to explain the empirical generalisation that can be developed in a descriptive stage. The emphasis in explanatory research is on studying a situation or a problem in order to explain the relationship between variables (Saunders, 2000). According to Yin (194) the study is explanatory when the focus is on cause effect relationships, explaining what causes effect what effect. The research purpose of our study is explorative, descriptive and explanative. The research purpose is explorative because the lack of investigation has been conducted in area of how the Internet is used as a strategic tool in e-crm and with the help of exploratory research we will clarify our understanding of a problem. Moreover we will describe the problem when we get clear understanding of it so our study is also Descriptive. Finally our research is also explanatory because we are going to explain in conclusion what we have described from the research questions. 40

METHODOLOGY 4.2 Research Approach According to Yin (1994) qualitative and quantitative methods are two main research approaches to choose when conducting research. In quantitative methods results are based on number and statistics that are presented in figures. Qualitative method is used to describe an event with the use of words. The best approach to use for a study depends on the purpose of the study and the accompanying research questions (Yin, 1994). In this study, we have used a qualitative approach as the study characterizes a complete and comprehensive view and understanding of phenomenon in its entirety. As this study is aimed at gaining deeper understanding of the phenomenon under investigation and acquiring richer knowledge of a complex situation, which also requires assessing abundant information, thus a qualitative study is best suited for this Qualitative research is intrigued with the complexity of social interactions as expresses in daily life and with the meanings the participants themselves attributed to these interactions. This interest takes qualitative researches into natural settings rather than laboratories in using multiple methods for exploring the topic of interest. Thus qualitative research is pragmatic, interpretive and grounded in the lived experiences of people (Marshall & Rossman, 1999). Characteristics of qualitative studies are that they are based largely on the researcher s own description, emotions and reaction (Yin, 1994). Herzog (1996) stated that qualitative methods are primarily used in social sciences even if research in that field might have quantitative characteristics. 4.3 Research Strategy There are different research strategies to conduct a research; these are experiment, survey, archival analysis, history and case study. Each strategy has peculiar advantages and disadvantages depending on three conditions; a) the type of research question, the control an investigator has over actual behavioural events, and c) the focus on contemporary as oppose to historical phenomena (Yin, 1994). Case studies are defined as an empirical enquiry that investigates a contemporary issue or event within its real-life context, especially where the boundary between such issues or events and its context is not clearly defined, and in which multiple sources of evidence are used (Yin 1989). In general case studies are the preferred strategy when how or why questions are being posed and the investigator has little control over events, and when the focus is on the contemporary phenomenon within some real-life context. As a research strategy the case stud is used in many situations to contribute our knowledge of individual, groups, organizational, social, political and related phenomena. In brief, the case study method allows investigators to retain the holistic and meaningful characteristic of real life events such as individual life cycles, organizational and managerial processes, neighbourhood change, international relations, and the maturation of industry. (Yin, 1994) 41

METHODOLOGY Our research is based on the use of case studies because the purpose of this thesis closely resembles the form of research questions how and why. Further this choice is motivated by the fact that the researcher has no control over the behaviour of the subjects under study and thirdly it is dealing with contemporary events. 4.4 Data Collection Method The most common data collection methods in a qualitative research are documentation, archival records, interviews, direct observations, participant observation, and physical artefacts. All these sources have strengths and weaknesses, no source has a completely advantage over all the others. In fact, the various sources are highly complementary and a good study will therefore want to use as many sources as possible. (Yin, 1994) Documentation information can take many forms and should be the object of explicit data collection plans. The most important use of document is to corroborate and augment evidence, from other sources. First, documents are helpful in verifying the collect spelling, titles and name of the organization. Second, documents can provide other specific details to corroborate information from other sources. Third, documents are helpful for inference - for example by observing the document list for a specific document it may helpful to find new questions about communication and networking within an organization. Because of their overall value, documents play an explicit role in any data collection. Systematic searches for relevant documents are important in any data collection plan. (Yin, 1994) Participant-observation is a special mode of observation in which the investigator is not merely a passive observer instead the investigator may take a variety of roles within a case study situation and may actually participate in the events being studied (Yin, 1994). Observation can range from highly structured, detailed notation of behaviour guided by checklists to more holistic description of event and behaviours. Observation is a fundamental and highly important method in all-qualitative inquiry: It is used to discover complex interactions in natural social settings (Marshall & Rossman, 1999). To increase the reliability of observational evidence, a common procedure is to have more than single observer making an observation whether of the formal or the casual variety. Thus, when resources permit, a case study investigation should allow for the use of multiple observers (Yin, 1994). In our study, we will use two data collection methods one is participant observation and second is documentation. In order to collect primary data we will use participant observation with the help of browse target websites related to our study, we would also observe and interact with these websites to get information related to our study. To get additional information about the company specific data we will use e-mail. It will also helpful for us to get to know that how much these companies are using Internet for managing customer relationship. For secondary source of data, we will use documents to get specific details from different sources and verifying the collected data. In documentation we will use official publications, newspapers, journal and brochures. 42

METHODOLOGY 4.5 Sample Selection In our study we have choose two fast growing international airlines. First airline is from Europe which is britishairways.com and second airline is singaporeair.com which is from Asia. The choice of these international airlines is based on our aim to study the use of Internet in different regions for managing customer relationship. We have selected airline Industry for our study so that s why we have selected two airlines from different regions. Our first airline is britishairways.com. Britishairways.com is one of the world s longest established airlines and has always been regarded as an industry-leader. Britishairways.com traces its origins back to August 1919, when its original predecessor airline, called Aircraft Transport and Travel, launched the world's first daily scheduled international air service. British Airways worldwide route network covers some 216 destinations in 94 countries. The group employs more than 50,000 people in around 100 countries worldwide. In 2002, more than 38 million people chose to fly with the airline. According to britishairways.com, ecommerce plays an increasingly important role within British Airways as more and more customers choose to deal with BA via self-service channels britishairways.com. Our second airline is singaporeair.com. Malaysia Singapore Airline (MSA) ceased operations in October 1972 and two new airlines, Malaysia Airlines and singaporeair.com, were born. At its launch, Singapore had a modest fleet comprising 10 aircraft, a staff of 6,000 and a route network spanning 22 cities in 18 countries. It also had 25 years of experience and boundless ambition. Singaporeair.com immediately began to expand and modernise its fleet, setting standards of service that others could only follow. Now Company has 89 passenger aircraft with 16 more on order and another 45 on option. Far-sighted planning, investment and product innovation propelled its growing reputation and profitability. To a world class carrier today, singaporeair.com is internationally recognised as one of the world's leading carriers. Singaporeair.com route network spans 90 destinations in almost 40 countries and the company have a young, modern fleet of aircraft. 4.6 Analysis of Data According to Yin (1994) data analysis involves examining, categorizing, tabulating or otherwise recombining the collected data. Yin (1994) adds that before data can actually be analyzed, a researcher using case studies can choose from two general analytical strategies. First strategy is relying on theoretical proposition, which is the most common strategy. The result of this is the collection of data based on research questions taken from previous studies. Second strategy is developing a case description, which is used when little previous research has been done (Yin, 1994). In this study we will use the theoretical propositions that led to the case study. Further our research will use a multiple case study therefore the comparison will be conducted within the different cases as well as between the cases. 43

METHODOLOGY According to Miles & Huberman (1994) data analysis consist of three concurrent flows of activity; 1) data reduction, 2) data display and 3) conclusion drawing /verification. In our study we will follow these three steps in order to analyse the data. As we have mentioned we will use the within case analysis and the cross case analysis. The data has been reduced within the case analysis when we have compared it with conceptualised framework. Moreover, data will be displayed through cross case analysis where cases will be compared against one another. Finally, conclusion will be drawn based on the similarities and differences, which we find in data reduction and data display. 4.7 Quality Standards Construct validity means that we have to see if our related idea corresponds with our measurements. Construct validity includes the establishment of correct operational measures for the concepts being studied. According to Yin (1994) there are three tactics available in order to increase construct validity. The first is the use of multiple sources of evidence, in a manner encouraging convergent lines of enquiry, and this tactic is relevant during data collection. A second tactic is to establish a chain of evidence, also relevant during data collection. The third is to have a draft case study report reviewed by key informants. We have used documentation and direct observation for our data collection which has increased the construct validity for the thesis. External validity deals with the problem of knowing whether a study s finding is generalizable beyond the immediate case study (Yin, 1994). Yin (1994) proposes ways to increase the external validity, which emphasises the importance of using replication logic in multiple-case studies. Theories must be tested through replication of the findings in similar surroundings meaning that a specified theory has to come up with the same result (ibid). Once a replication is made, it provides the findings to be generalized to a greater number of surroundings (Yin, 1994). To reach our findings we have tested the relevant theories in two different cases. Internal validity is used for establishing a causal relationship, whereby certain conditions are shown to lead to other conditions, as distinguished from false relationships. Pattern matching is a way of affecting the internal validity. Comparing collected data with conceptualized literature to find patterns, does this. This is mostly applicable during conclusion drawing (Yin, 1994). To fulfil internal validity we have talked to our supervisor about the research area and how we how we have to collect data. The goal of reliability is to minimize the errors and biases in the study. It is important to remember that reliability is not measured it is estimated (Yin, 1994). There are two ways that reliability is usually estimated, test/retest and internal consistency. Test/retest is the more conservative method to estimate reliability. Simply put, the idea behind test/retest is that you should get the same result on test 1 as you do on test 2. There are three main components to this method are; 1) Implement your measurement instrument at two separate times for each subject, 2) Compute the correlation between the two separate measurements, 3) Assume there is no change in the underlying condition or trait you are trying to measure between test 1 and test 2. (Yin, 1994) 44

METHODOLOGY It is good to have more than a single observer making the observation to increase the reliability of observational evidence (Yin, 1994). In order to increase the reliability of the observation in this thesis both the researchers made observations of the company websites, separately. To further increase the reliability of the observations, we made one major observation each of every website and the inspected them again at several occasions. 45

DATA PRESENTATION 5 DATA PRESENTATION The aim of this chapter is to present the empirical data collected from singaporeair.com and ba.com. First we will give the introduction of each company and then we will present the collected data. Collected data will be presented in order to research questions are posed. The presented empirical data will be based on participant observation of both company s websites and data from documents. 5.1 Case 1: britishairways.com British Airways is one of the world s longest established airlines and has always been regarded as an industry-leader. British Airways traces its origins back to August 1919, when its original predecessor airline, called Aircraft Transport and Travel, launched the world's first daily scheduled international air service. British Airways worldwide route network covers some 216 destinations in 94 countries. The group employs more than 50,000 people in around 100 countries worldwide. In 2002, more than 38 million people chose to fly with the airline. The airline has a fleet of 312 aircraft with an average age of seven and a half years. The fleet includes 100 wide-bodied longhaul aircraft, which includes 57 Boeing 747-400s and 43 Boeing 777s. According to britishairways.com, ecommerce plays an increasingly important role within British Airways as more and more customers choose to deal with BA via self-service channels britishairways.com. More tickets are now booked on britishairways.com than via BA call centres and most Executive Club members manage their accounts on line. From this base BA has a vision that in two years customers will be able to choose to serve themselves for any interaction right from booking to checking-in. 5.1.1 How can the online environment be described? According to britishairways.com, a fast site is important to their customers. The company pay for independent monitoring of the website from over forty locations around the world. The resulting reports are reviewed regularly to ensure that they are providing above-average performance. But in their point of view there are number of factors can impact on page-loading speed, many of which are outside our control. It includes connection speed, the performance of Internet service provider, or even the amount of traffic on the Internet at the time. Britishairways.com hasn t use overwhelming multiple graphics and inappropriate animations. We didn t find large graphics onto web pages, which can cause slows down access to the page and will probably frustrate the customer into abandoning the site. Home page of the website has been divided into vertical category on left side and horizontal category on the topside. Vertical bar provides information like special offers, booking trip, planning trip, customer support etc. and horizontal bar provides information like contact us, site index, site information, site help and legal information. In the middle of the page there is a search engine, which is used to 46

DATA PRESENTATION book and search for the flights. There are just few images are use with the latest information or special offers on the homepage. According to britishairways.com, plug-in and helpers are not required for key functions on their web site. If a plug-in or helper application is required to access content, this will normally be highlighted. These plug-in can be downloaded via the links on the website. Pug-in which could be required for to access the website are flash and acrobat reader. Britishairways.com also doesn t support thumbnail pictures to show picture only because they don t provide any tangible products to sell. Website use progressive rendering make customers to see text before pictures. Finally, it doesn t provide the text only version for users but it provides the progressive rendering technology. Regarding to security, when customer buys a ticket from britishairways.com their web browser connects with the web site through Secure Sockets Layer (SSL). SSL encrypt the data, when information is encrypted, it is scrambled between customers computer and the company server. The information is unscrambled when it reaches to their end. Britishairways.com ensures that customer personal information cannot be read by anyone else. Customer can come to know that encryption is happening, as browsers will display a key or padlock at the bottom left corner. As with any standard email, emails containing personal data sent to or from British Airways will travel in a non-encrypted format. When customer purchases ticket through Internet britishairways.com provide a confirmation page to them. The confirmation page makes the customer know that customer have purchased ticket and the details about the flight information also come on that page. Britishairways.com also send a confirmation email to the customer about ticket details. Britishairways.com has place a statement of copyright that shows, all trade marks, database rights and other intellectual property rights in the materials on the website together with the underlying software code are owned by the company. Without Our prior written permission, you nobody can copy, modify, alter, publish, broadcast, distribute, sell or transfer any material on the website or the underlying software code. However, the contents of this Web site may be downloaded, printed or copied for personal noncommercial use. Business Content refers to what a website actually offers in terms of information and it is important aspect of the website. Britishairways.com has used simple and concise text to give clear business description in the section of company information which describes about the company business, and what services it is providing. Contact Information is provided on each page called contact us. There is only one way provide in Contact US with the help of email. When we have contacted britishairways.com through email, it showed different solutions related to our problem, which was asked before us. Further it gets feedback that how much we are satisfied with the answer. Britishairways.com has used a simple background colour for the website design. Background colour of the website is blue and white and it is very much match to the colour of BA planes. Simple colour of the website helps the customer to spend more time on the website and easy to search required information. Britishairways.com provides free membership registration facility to the users. It provides the services to the members like all news and offers emailed straight to inbox, easier online booking as details are saved in memory, check-in online within 12 hours of flight departure time. The online members of the company have 47

DATA PRESENTATION a free facility for improved services, manage booking and online check-in. Britishairways.com allows the users to be their member through registration, registration form and the amount of requested information of the membership is simple. The form has required some general information about name, email, user id, password, language and country. Website of the company has been updated regularly to keep their material fresh customers can find fresh information and special offers. Britishairways.com has FAQ section in contact us which help the users to get general information about the company, new services and inquiries. Customers can also use its search engine to restrict on some conditions and given categories to select their concerns and find out answers. There is no joke and under construction page on the website. In accordance with navigation efficiency, britishairways.com has a well-labelled and accurate web links, which led customers to the wanted web page. We didn t find any ambiguously labelled link or a link, which hits dead end. When we have used hyperlinks of the website it doesn t change the colours, once we have used it. User doesn t have to follow multiple links and force to go back and forth between pages to find required information. Britishairways.com has two types of two search engines one search engine is used for getting information about company, latest information, baggage, promotion offers and other loyalty schemes. Second search engine is not a real search engine but in this search engine user select different options to get specific flight information. Britishairways.com will automatically find the most suitable flight information when customer follows the given category to type in search text box. Britishairways.com has used both long and subsequent pages in the website. Subsequent pages are used to show the results of search query, results of query has divided information into sub pages if user wants to get more information then it has to select go for next page. Website has used long pages with links within pages to show the information. In order to guide user to browse website, britishairways.com has a site map under the heading of site index. Site map helps the customer to introduce the functions of different sections and get most relevant information without spending time on it. There is no pop-up add on the website. Regarding to britishairways.com customer focus, britishairways.com has clearly defined about cookies information on the top of pages to be up front about business practices. They use cookies in order to make websites work more efficiently, as well as to provide business and marketing information to British Airways. Britishairways.com use three types of cookies during our visit; first one are the session cookies that are deleted after each visit, second one are the persistent cookies which are valid across visits and use to avoid the need to tell customer about their country of residence at the start of each visit. Third one are party cookies that are used to help them measure site visitors or to implement the British Airways affiliate programme. Britishairways.com offers content of website in five different languages; these are English, French, German, Italian and Spanish. When customer chooses his country of residence, content in the default language for that country will be displayed. Some times English content are displayed if content in the customer chosen language is not available. 48

DATA PRESENTATION 5.1.2 How are the customers served in this online environment? Britishairways.com provides number of ways to customer for placing order. Customer can choose to book and pay via by telephone, the fare will be requoted and the company charge an additional service fee of GBP15.00 off-line supplement for each ticket. Additionally, customer can purchase from physical offices. If a customer chooses a paper ticket, where an e-ticket is available, an administration charge of GBP 25.00 will apply for it but there are no charges for online booking. Britishairways.com has a facility to manage booking which allowed customers to change date or time of flight, upgrade class of travel, cancel or refund ticket, request a seat, advice dietary requirements and check in online. When customer has completed booking a ticket, britishairways.com sends an instant confirmation email on the given email address to provide assurance that ticket has been booked. Confirmation email shows all the detail of travel itinerary like flight confirmation number and booking details. For payment option, britishairways.com allows customers to pay by different cards; visa delta/ debit, visa, switch / maestro, solo, master card, JCB, dinners club and American express. At the present time, britishairways.com only accepts credit cards and debit cards which are issued and billed from the country of departure. Britishairways.com is currently working towards expanding this capability. If customer like to make a booking that departs from a city outside the country in which he currently live, or where his credit card has been issued, he will need to telephone his local British Airways office to find out if his offline payment can be made over the phone or in person at a British Airways Travel Shop or Airport ticket desk. In accordance with shipping information, Tax, fees and surcharges information is available on ba.com, which shows how much charges applied on purchasing of ticket. When company take new measures like apply new insurance and security surcharges, the detail of these surcharges and whom it s applied is also clearly described. There is no shipping and handling information because ba.com is not providing physical products. Presently, company is issuing e-tickets on 70% of its routes. Regarding return policy, Ba.com allow customers to change the date, time of flight, upgrade flight to a higher cabin, cancel or refund ticket online. ba.com apply a refund administration charge for all tickets refunded, If the refund amount is less than refund charges then no refund is given back to the customer. Few fares have conditions attached, which are non-upgradeable or non-refundable. If ba.com make changes in a ticket, which is not acceptable then the customer will receive a full ticket refund. All the retuning information is provided on the web. Regarding to interactive service, British Airways use emails to help customers through the process of preparing for a journey. Company use email to stay in contact with customers, to inform them of any additional requirements or changes travel schedule. Customers can use email for upgrade their personal information. If user is unable to find the information which he is looking for either by looking on website pages or by using 49

DATA PRESENTATION questions then user can submit an email through to britishairways.com. There is an email form, which can be accessed through email us. British Airways and Vodafone have created a mobile Internet site for users. Customer can access it from his mobile to surf British Airways. The website has a self-service knowledge base of information that provides instant answers to frequently asked questions (FAQ). The information contained within it reflects the type of questions customers ask on a daily basis. The answers within the FAQ are organised under a series of category headings. Furthermore there are also sub-categories of information to aid and fine-tune search. User can also have an option to provide feedback on the Q&As that are provided in FAQ. If user is unable to find the information which he is looking for either by looking on website pages or by using questions then user can submit an email through to britishairways.com. There is an email form, which can be accessed via the email us. There is also a sitemap on the website under the content of Site Map which is provided on the top of every page. We didn t find any interactive chat function on ba.com. Ba.com has provided contact number on the website. First user has to select the required country and then detail of contact numbers come up on the screen. User can also use fax to contact the company. Ba.com has clearly described its web policy. Privacy policy of the company has been explained on the website. Ba.com collects three types of information online first about customer use site because they track this using cookies, second about travel patterns and last one is about the information customer type in. Company uses this information to fulfil users travel requirements and help deliver what they have asked to them. To keep customers data safe company don t give user data to third parties except to the Agencies, customs and immigration offices. Security policy is also given on the website which shows that how company provides security to customers data with the help of SSL. When customer buys a ticket from ba.com SSL encrypt the data, when information is encrypted, it is scrambled between customer s computer and the company server. The information is unscrambled when it reaches to their end. Ba.com ensures that customer personal information cannot be read by anyone else. Ba.com has provided company information like what is the business of ba.com, annual reports, brochures, and there is also one special section for student projects. It is something found in Kotler & Armstrong (1996), today customers are more educated and demand more information therefore it is important to have available public materials to inform them about the company. 5.2 Case 2: singaporeair.com Malaysia Singapore Airline (MSA) ceased operations in October 1972 and two new airlines, Malaysia Airlines and Singapore Airlines (SIA), were born. At its launch, Singapore had a modest fleet comprising 10 aircraft, a staff of 6,000 and a route network spanning 22 cities in 18 countries. It also had 25 years of experience and boundless ambition. SIA immediately began to expand and modernise its fleet, setting standards of service. Now Company has 89 passenger aircraft with 16 more on order and another 45 on option. SIA has 14,010 average number of employees and the operating profit for the year 2003-04 was $150.2 million. Far-sighted planning, investment and product 50

DATA PRESENTATION innovation propelled its growing reputation and profitability and now singaproeair.com is ranked as the best airline in the world by Skytrax researcher survey. To a World Class Carrier Today, singaproeair.com is internationally recognised as one of the world's leading carriers; it s ranked a 5 star airline combined quality of product / staff service delivered to passengers in airport and onboard environments, Skytrax. Singaproeair.com will also be the first Airline to operate the world s largest aircraft, the Airbus A380, in the first quarter of 2006. Singaproeair.com route network spans 90 destinations in almost 40 countries and the company have a young, modern fleet of aircraft. On 26 October 2004, singaproeair.com signed an agreement with IBM Global Services, valued at around $300 million over seven years, to outsource its IT infrastructure functions. The agreement, effective on 18 November 2004, will result in estimated oneoff costs of $10 million, and annual cost savings of approximately $15 million, (SIA Annual Report 2003-04). SIA has decided to invest in Tiger Airways; a new airline that will be introduced by SIA, and start a low-cost model of airline operations that has been so successful in Europe and the United States can succeed in Asia as well. It can open up a new segment of the air travel market comprising customers who may not have been able to afford air travel very often, if at all, previously, according to Koh Boon Hwee, Chairman singaproeair.com. Moreover, singaproeair.com is member of Star Alliance which is an alliance of 15 airlines, and when we search a flight on the website than it search flight not only for singaproeair.com but also for all of the airlines which include in Star Alliance. 5.2.1 How can the online environment be described? In accordance with page-loading speed, singaproeair.com has simple and meaningful graphics and limited use of animation, which provides users easy to upload the website. The picture on the home page of singaproeair.com is just 20kb size, which is easy to upload. When the customers or visitors write singaporeair.com in the browser, it is directed to the online booking page, automatically. The first opening page of the website includes: online bookings with options of Multi City and Special Deals, News, High Lights, Online Check-in and join Kris Flyer. The site is made easy for user to use, having two navigation bars, one at the top of the page and one at the bottom of the page. At the top of top navigation, there is member s login area and Singapore Airlines logo, included in the website, which provides the customer access to personal information. There is no thumbnail on the website used for the hyperlinks. Only on the front page of the global website Highlights provide a flash hyperlink to the highlights about Singaporeair.com. Only text-only choice is used for the links to the other information on all the websites of singaproeair.com. Websites use progressive rendering to be able to customers to see the text before picture. Security remains the primary concern of on-line consumers. We have found that singaproeair.com stress the use of security and use the same window to open the next link, mostly for the security reasons. Singaproeair.com use industry standard secure 51

DATA PRESENTATION encryption software called SSL (Secure Socket Layer). SSL works by encrypting all communications between your computer and the singaproeair.com web server. Unwanted parties, including credit card number, name and address, cannot intercept information. By Singaporeair.com, they only allow bookings to be made when passengers use browsers that support SSL, which means singaproeair.com stress the use of security. Moreover, singaporeair.com is to purchase the tickets is secured by Verisign (service provider for SSL). Singaporeair.com protects your copyrights, when a customer purchases a ticket; customer give email address and singaporeair.com send information regarding flight directly to customer email account, which is not encrypted. To give secure access to online services and frequent flyer account, a customer can register with singaporeair.com and get membership number/ User ID with a PIN that is unique and personal to customer. As additional security features, singaporeair.com have implemented a time stamp showing the time to the customer having been on his/her websites and the last time the customer logged out. If the customer detects any anomalies, he/she can inform singaporeair.com, on given contact detail to Customer Relations Manager. It means singaporeair.com protect the rights of its customer. Singaporeair.com generates a confirmation page after a consumer makes a purchase, showing details of purchase. Singaporeair.com also sends email confirmation to the customer after purchase via Internet. Regarding business content, we have found that singaporeair.com provided a clear and concise text with proper spelling and grammar to describe the business. Singaporeair.com provided information about its history, investor s relations, partners and alliances, achievements, subsidiaries and contact details. Contact us option is described on all page of singaporeair.com. We have found that singaporeair.com used simple background colours and textures. Background of singaporeair.com is in white colour on each of its websites and used very less and simple colours to make the website more attractive. The colours used in the websites are very similar to the colours used on aeroplanes. Singaporeair.com has provided the details of free services and useful information in many ways, like FAQS s, feedback, help and search options. If the user still could not get required information than he/she can contact by singaporeair.com. Singaporeair.com allows its customers to join membership to the KrisFlyer (a frequent flyer program to give more benefits to the customer) and provide them extra services for nominal fees. There are also a number of free services provided to the customers. Singaporeair.com provides limited registration forms and the amount of requested information on them. The website allows downloading PDF forms for different services. We have found that singaporeair.com make regular changes on its website whenever it happens about new services, promotions and highlights. FAQ s are created on the website along with feedback and sitemap, which is very useful to user to find the required information. We were unable to find any joke and under construction sign on the website. Navigation efficiency is very important for the user to browse the website; the links on this website are well labelled and accurate. Singaporeair.com has limited frames on its websites. On all the pages of Singaporeair.com, the navigation is consistent in the same order, on the left side and only the information changes into or in case of help; FAQS opens in a new window. Singaporeair.com has provided with effective search engines in 52

DATA PRESENTATION the site. Singaporeair.com has used two search engines; one for searching the flight schedules and to book online ticket and one to search information on singaporeair.com. Singaporeair.com provided very limited distinctive hot buttons. On the website some hot button are provided on the top navigation bar, which differentiated the information followed by the hot links. Singaporeair.com used long pages with links rather than subsequent pages. The front page of singaporeair.com is not so long and can be seen within the screen but the next pages are long. Most of the next pages almost all the links can be seen easily. Site map is also used to handle the information and to make it easy access for the user. It is coloured by different backgrounds and a tree for all information. We have found that singaporeair.com avoids links that open up new browsers or pop-up ads and most of the links were opening in the same browser not in new one. Regarding customer focus, singaporeair.com allows cookies to enhance customer s online experience. Cookies are transferred to the customer s computer, which contain only alphanumeric identities, which take care of preferences of customer, when he/she is online. Cookies do not contain personal information of the customer. We have seen that singaporeair.com is using an auto responder to give feedback to the emails of its customers. We sent e-mail to computer relation of Singaporeair.com and we got immediate response generated by auto responder to wait for our feedback. Singaporeair.com is written in English for its global customers but there is also a choice of different countries websites in different languages. Customers can go directly to native country website also, if its provided by Singaporeair.com. 5.2.2 How are the customers served in this online environment? Regarding placing order, we have found that singaporeair.com have number of ordering methods to facilitate its customers to buy its services. Customer can book e-ticket on singaporeair.com for Singapore Airlines, and not only for Singaporeairc.com, but also for the other partner airlines of Star Alliance. But the condition is that if the ticket is being booked by singaporeair.com, then the ticket must include at least one Singapore Airlines flight for booking, if it includes connecting flights for the destination. Once e-ticket booked by customer is automatically ticketed and customer must have credit card, used at the time of booking, when he/she is travelling. There is online check-in facility also. Moreover, singaporeair.com has code sharing with some other airlines, and customers can check-in for the other airline also by singaporeair.com. Only bookings made on Singaporeair.com can be viewed online. Customer can also book ticket directly contacting or by moving physically to the nearest office of Singapore Airlines. They can also buy it on phone. There is full detail of nearest contact office on singaporeair.com. Singaporeair.com customer can also book other services like rent a car or hotel on singaporeair.com. Order status can be checked on the website but it need KrisFlyer number or User ID and PIN code. As Singaporeair.com is providing check-in for other partner airlines also, but there are some services, which are still not offered only for other airlines but only for Singaporeair.com. Customer can also get an alert message on the mobile, created on the website. Singaporeair.com also provides confirmation of product order by email. After booking online ticket, singaporeair.com sends a confirmation email to the customer including the details of ticket. Singaporeair.com provides electronic 53

DATA PRESENTATION ticketing, ticket-by-mail, ticket pickup at the airport and ticket pick up at city ticket office. Electronic ticket can be converted into physical ticket from the nearest office; depends on the city of departure. Regarding payment options, only 3 type of credit cards are accepted; Visa, Master Card and American Express. Visa and MasterCard are accepted for all bookings. American Express is accepted for all bookings except those for travel originating from Sri Lanka, China and Vietnam and due to processing constraints. The applicable cards are presented for selection at the payment screen. Virtual and single-use cards will not allowed as credit card will need to be presented during check-in and (or) ticket collection for the purpose of verification. For the offline payments, customers can contact the local office whose details are given in Singaporeair.com. We did not find any option for the customers to buy now and pay later. In accordance with shipping information, shipping and handling information is provided on singaporeair.com with full details, in the section of FAQ s or otherwise can be known by feedback on singaporeair.com. There are a number of delivery options for tickets. When a ticket is booked on Singaporeair.com, customer can collect the paper ticket from Singaporeair.com s nearest office, from the departing airport or no paper ticket is required; the credit card used at the time of booking can be used as e-ticket. All the administrative cost and sales taxes are shown in detail when a customer books an online ticket on singaporeair.com. These details are also shown when a customer buys paper ticket; offline, by contacting nearest office of SIA or by agent. We have found that customers can collect their returns of their tickets or cargo booked for Singaporeair.com. Singaporeair.com also gives money back guarantee to its customers. We have found that all cargo bookings are guaranteed if the booking is confirmed by singaporeair.com. If the cargo is not shipped on the booked flight, it will be shipped free. Singaporeair.com has given, how convenient returning information, is possible. Information is given in FAQ s. If it is not in FAQ s it can be search on the search engines provided in singaporeair.com. Singaporeair.com provides the returning methods to its customers. If the customer have not commenced the journey and wish to obtain a refund for the entire itinerary, he/she can chancel the booking through singaporeair.com by clicking on [Booking] followed by [Cancel Booking] at the top navigation bar. The refund will be automatically credited back to the credit card used to purchase the ticket. How if the customer has already been issued a physical ticket, he/she will need to return it to a Singapore airlines office before they can process the refund. The refund usually takes slightly more than a month to process. If the customer-cancelled part of an itinerary, but does not wish to credit the refund, Singapore Airline Office can be contacted. Administrative fees may apply for cancellations and/or refunds. A partial cancellation is also possible but by local reservation office not by website. For change of route of ticket the customer should contact to the nearest office not by website. Regarding to interactive services, customers can email to singaporeair.com for any type of information required. Singaporeair.com provides the contact details for its worldwide offices, with address, phone numbers and email. We have found that there is a feedback 54

DATA PRESENTATION & enquiry form to get feedbacks from the customers and to enquire any type of information. We have found that singaporeair.com does not provide toll-free numbers. They have been offering some mobile services to connect singaporeair.com by wireless devices. imode service is provided to its Japanese customers. imode is a wireless technology developed by the Japanese company NTT DoCoMo that enables users to access Internet services via their cellular phones. imode (the I stands for information) is based on packet data transmission technology. This means that imode is always online and no dialling up is required. DoCoMo is also the biggest Internet Service Provider (ISP) in Japan. Moreover, customers can get alerts, check-in for their flights and other information via mobile also. We did not find interactive chat function for customer on singaporeair.com. Singaporeair.com provide a wide range of FAQ s to give better understanding of all the services, benefits and promotions to its customers. If customer could not find information regarding his/her query, he/she can go to sitemap to get better understanding of information provided by singaporeair.com in a tabular form. And if still not find information he/she can use email to fill the feedback/inquiry form or contact the nearest office, personally. Singaporeair.com provides shopping help, it tell how a customer can book an online ticket, how to online check-in and how to use site. Regarding to web policy, we have found singaproeair.com take care of its customers as well as web contents. Singaporeair.com collects data of customer depending on the circumstances of collection and nature of the service request or transaction undertaken. There are two broad categories of customer data singaporeair.com collect: Individual Customer Data which include name, address, phone number, email address and credit card information, and Behavioural Data which includes number of passengers flown, hits to the website and used for analytical purposes. Singaporeair.com described that the purpose for collection, processing and disclosure of data for different services provided to customers and for marketing and communication purposes. They keep the data in head office wherever it will be located and get the customer consent to keep the data for different purposes including legislation also, if happened in necessary conditions. Singaporeair.com provides its customers to update their data on the website. Singaporeair.com amends privacy policy statement from time to time and the updated versions are posted on the website and date stamped to aware its customer up to date with privacy policy. Regarding its security policy of singaporeair.com is very careful. Singaporeair.com has described that it takes the security and protection of customer data very seriously and has security safeguards in place to store and transmit data through singaporeair.com. If the customer has not taken reasonable care to ensure the confidentiality of his or her customer data, Singaporeair.com will not be liable of any misuse caused. If customer has any concerns about security, he or she can contact Singaporeair.com s given contact details. Company information is also updated frequently in about us and the other different places on singaporeair.com. 55

DATA ANALYSIS 6 DATA ANALYSIS The aim of this chapter is to analyze data, which has been presented in Data Collection chapter. First, we will conduct within-case analysis of ba.com and singaporeair.com. In within-case analysis, we will compare the collected data with frame of reference. Second, we will conduct cross-case analysis for each of the research question. In the cross-case analysis we will compare both of the cases with each other. 6.1 How can the online environment be described? In this section, analysis of the first research question will be conducted. First we will present the results of the within-case analysis for both of the cases. Furthermore, we will conduct a cross-case analysis where we will compare both of the cases with each other. 6.1.1 Within-Case Analysis of britishairways.com In accordance with business content, ba.com has used simple and concise text to give clear business description, which describes about company business and services it is providing. Contact information is provided on each page in the section of Contact Us. It is consistent with statement of Gehrke & Turban (1999) which states that a site with no information whom to contact may drive business away. Ba.com provides the free facility free membership facility to the users. The company also provides free services like manage booking and online check-in. It is something found in Wilson(1997) which believes that prospective customers more likely to purchase when site owners make sure that the free services is closely related to what is being sold. Ba.com allows the user to be their member through registration form and the amount of requested information of the membership is simple. Therefore when comparing this to finding by Gehrke & Turban (1999), A burdensome amount of unnecessary information drive away customers from the company. Website of ba.com has been updated regularly to keep their material fresh; customers can find fresh information and special offers regularly; It referred to Gehrke & Turban (1999), This is wise to make regular changes in the web site for two reasons; first, visitors want to see fresh material and second, updated a site often will ensure that the information is current. There is no joke on the website or entertaining feature like this. It is opposite to Janal (1997) which states that telling jokes on the website and adding a new one each day is a good business strategy and results in a repeat visits. Ba.com has FAQ under Contact US heading which help user to get general information about the company, new services and inquiries. Therefore when comparing this to finding by Gehrke & Turban (1999), which states that FAQ enhances understanding of what is offered at the site and it also helps the company by reducing the amount of correspondence necessary to answer repeatedly to the same question. We didn t find any sign of under construction page on the website, it refers to Brest (1998) which states if you must use under construction sign, provide an appropriate date of opening. 56

DATA ANALYSIS Regarding to navigation efficiency, ba.com has used well-labeled and accurate web links, which led customers to the wanted web page. It refers to Haine (1998) which recommend wording each link carefully so that it answers two questions first, what will I get if I will click here? And second, why would I want to get that? Gehrke & Turban (1999) also state that an ambiguously labeled link or a link that hits a dead end is one of the most annoying design faults in a website. Ba.com has used frames in the website design which is opposite to the Wilson (1998) point of view that frames cut up the screen into windows that require excessive vertical and horizontal scrolling, they look ugly, they do not always print out correctly on some browsers, they are resented when site owners use them to link to from external sites, and their content is often skipped when search engine come to call. Ba.com has used two types of search engine, one search engine is used to get information about the ba.com and its services and the other one is used to find information about the flights schedule, fares and availability. Ba.com has used distinctive buttons to provide easy navigation and personalized effects to the webpage. It is something found by Busch (1997) that recommend using unusual shapes and colors in addition to the traditional rectangular shapes or circular shapes. Ba.com has used both long and subsequent pages in the website. Which is something found in Janal (1997) using long pages with links should be encouraged; linking within on long page is also faster then reloading subsequent pages. In order to guide user to browse website, ba.com has a site map under the heading of site index. It is consistent with statement of Gehrke & Turban, (1999) which states a large site with several underlying pages should have a map or guide that allows the user to jump to any page from any page. Regarding to page-loading speed, ba.com hasn t use overwhelming multiple graphics and inappropriate animation which can slow down website. On the website there is no large graphics onto web pages which can cause slows down access to the page and will probably frustrate the customer into abandoning the site. Ba.com don t require any plugin or helper for the use of website. It is consistent with the statement of Nunley (1998), he states that audio clips and other multimedia gizmos that require users to download plug-in programs, install them, reboot and return to the website drive away users. Ba.com doesn t provide text only version for users but it provides the progressive rendering technology. It referred to Heath (1998), providing an option to load text only increases speed and allows the use of a greater variation of browsers. In accordance with security, when customer buys a ticket from ba.com their web browser connects with the web site through SSL. SSL encrypt the data, when information is encrypted, it is scrambled between customers computer and the company server. The information is unscrambled when it reaches to their end. Ba.com ensures that customer personal information cannot be read by anyone else. Therefore when comparing this to finding by Tadjer (1998), the words secure server help to make the consumer feel safe. Also, an optional link to a security practices page and/or legal notices for visitors to read also add an additional calming effect. When customer purchases ticket through Internet ba.com provide a confirmation page to them. The confirmation page makes the customer know that customer have purchased ticket and the details about the flight information also come on that page. Ba.com also sends a confirmation email to the customer about ticket details. It refers to Gehrke & Turban (1999), a confirmation notice of a purchase is 57

DATA ANALYSIS very useful. Further, an e-mail confirmation that the order was shipped is also a good idea. Ba.com has place a statement of copyright that shows, all trade marks, database rights and other intellectual property rights in the materials on the website together with the underlying software code are owned by the company. It is consistent with Gehrke & Turban (1999), anytime a website owner writes, paints, or composes something new, it is advisable to copyright it. It is also important to place a statement in the webpage indicating that the material is copyrighted. In accordance with customer focus, ba.com has clearly defined about cookies information on the top of pages to be up front about business practices. It is very much consistent Gehrke & Turban (1999), one of the best ways to gain trust is to be honest with the customers about business practices. If cookies are used, the site owner should disclose that information. Ba.com offers content of website in five different languages. When customer chooses his country of residence, content in the default language for that country will be displayed. Some times English content are displayed, if content in the customer chosen language is not available. It is referred to Gehrke & Turban (1999, English is recognized as the worldwide universal business language. Therefore, writing a website in English or at least giving the English choice seems to be the logical thing to do. 6.1.2 Within-Case Analysis of singaporeair.com When we analysed the findings with theory, regarding to page-loading speed, Singaporeair.com has meaningful graphics which can slow down to the page and can cause the customer frustrations. Singaporeair.com does not require plug-in or helper for the use of website. It is consistent with the statement of Nunly (1998). Singaporeair.com provides progressive rendering, which follows the theory of Sklaire (1997); describing this term as allowing text to load first, followed by graphics. This allows the user to read the content while the graphics are loading. Mostly, on singaporeair.com text only choice is given, which refer to the theory of Heath (1998); providing an option to load text only increases speed and allows the use of a greater variation of browsers. In accordance with security, when customer buys a ticket from singaporeair.com their web browser connects with the web site through SSL. SSL encrypt the data, when information is encrypted, it is scrambled between customers computer and the company server. The information is unscrambled when it reaches to their end. Singaporeair.com ensures that customer personal information cannot be read by anyone else. Therefore when comparing this to finding by Tadjer (1998). The words secure server help to make the consumer feel safe. Gehrke & Turban (1999), says, a confirmation notice (and number) of a purchase is very useful. Further, e-mail confirmations that the order was shipped is also a good idea, singaporeair.com send email confirmation of the booking when they are made by singaporeair.com. Singaporeair.com has also place a statement of copyright that shows, all trade marks, database rights and other intellectual property rights in the materials on the website together with the underlying software code are owned by the company. It is consistent with Gehrke & Turban (1999), anytime a website 58

DATA ANALYSIS owner writes, paints, or composes something new, it is advisable to copyright it. It is also important to place a statement in the webpage indicating that the material is copyrighted. In accordance with business content analysis, singaporeair.com has used simple and concise text to give clear business description, which describes about company business and services it is providing. Contact information, is provided on each page in the section of Contact Us. It is consistent with statement of Gehrke & Turban (1999) which states that a site with no information whom to contact may drive business away. Singaporeair.com provides the facility membership facility to the users. The company also provides free services like manage booking by your login on the web, imode and online check-in. It is something found in Wilson(1997) which believes that prospective customers more likely to purchase when site owners make sure that the free services is closely related to what is being sold. Singaporeair.com allows the user to be their member through registration form and the information of the membership is provided very simple. Therefore when comparing this to finding by Gehrke & Turban (1999), A burdensome amount of unnecessary information drive away customers from the company. Singaporeair.com is updated regularly to provide the fresh information to the customers; customers can find special offers regularly. It referred to Gehrke & Turban (1999), This is wise to make regular changes in the web site for two reasons; first, visitors want to see fresh material and second, updated a site often will ensure that the information is current. There is no joke on the website or entertaining feature like this. It is opposite to Janal (1997) which states that telling jokes on the website and adding a new one each day is a good business strategy and results in a repeat visits. Singaporeair.com has FAQ s and Contact Us information on the web. Therefore when comparing this to finding by Gehrke & Turban (1999), which states that FAQ enhances understanding of what is offered at the site and it also helps the company by reducing the amount of correspondence necessary to answer repeatedly to the same question. We didn t find any sign of under construction page on the website, it refers to Brest (1998) which states if you must use under construction sign, provide an appropriate date of opening. Analyzing to navigation efficiency, singaporeair.com has used well-labeled and accurate web links, which makes easy for the customer to find out the required information on the web. It refers to Haine (1998) which recommend wording each link carefully so that it answers two questions first, what will I get if I will click here? And second, why would I want to get that? Gehrke & Turban (1999) also state that an ambiguously labeled link or a link that hits a dead end is one of the most annoying design faults in a website. Singaporeair.com has used two types of search engine, one search engine is used to get information about the ba.com and its services and the other one is used to find information about the flights schedule, fares and availability for a single destination or multiple destinations. Singaporeair.com has used distinctive buttons to provide easy navigation and personalized effects to the webpage. It is something found by Busch (1997) that recommend using unusual shapes and colours in addition to the traditional rectangular shapes or circular shapes. Singaporeair.com has used both long and subsequent pages in the website. Which is something found in Janal (1997) using long pages with links should be encouraged; linking within on long page is also faster then reloading subsequent pages. In order to guide user to browse website, 59

DATA ANALYSIS singaporeair.com has a site map, which is consistent with statement of Gehrke & Turban, (1999) which states a large site with several underlying pages should have a map or guide that allows the user to jump to any page from any page. In accordance with customer focus, singaporeair.com has defined about cookies information to be up front about business practices. It is very much consistent Gehrke & Turban (1999), one of the best ways to gain trust is to be honest with the customers about business practices. If cookies are used, the site owner should disclose that information. Singaporeair.com offers content of website in different languages. When customer chooses his country of residence, content in the default language for that country are displayed. If content in the customer chosen language are not available then English contents are displayed. It is referred to Gehrke & Turban (1999, English is recognized as the worldwide universal business language. Therefore, writing a website in English or at least giving the English choice seems to be the logical thing to do. 6.1.3 Cross-case Analysis In this part of the analysis, we will compare the online environment of britishairways.com and singaporeair.com. Table 6.1 shows the presented companies and their listed parameters. 60

DATA ANALYSIS Table 5: How online environment is described in britishairwas.com and singaporeair.com cross case analysis Determinants of website britishairways.com singaporeair.com Page-Loading Speed Simple and meaningful graphics Yes Yes Use of animation or plug-in Limited Limited Use thumbnails No No Progressive rendering Yes Yes Text-only choice No No Security Use of security Yes Yes Copyrights Yes Yes Confirmation page after a purchase Yes Yes Business Content Clear & concise text to describe business Yes Yes Contact information Yes Yes Simple background colors and textures Yes Yes Free services Yes Yes Regular changes to the site Yes Yes Limited registration forms Yes Yes Jokes on the site No No Frequently Asked Questions Yes Yes Under Construction signs No No Navigation Efficiency Well labeled, accurate links Yes Yes Use of frames Yes Limited Consistent navigation Yes Yes Effective search engine Yes Yes Use distinctive hot buttons No Yes Use long pages Long and subsequent Long pages Use site maps Yes Yes Avoid links that open up new browsers Yes No Customer Focus Be up front about business practices Yes Yes An auto responder Yes Yes Write the Website in English Yes Yes Source: Authors own creation 61

DATA ANALYSIS Regarding to page-loading speed, both of the companies monitor their websites from different locations over the world. The resulting reports are reviewed regularly to ensure that they are providing above-average performance. But we have found britishairways.com speed is faster than singaporeaor.com. The websites are not using overwhelming multiple graphics and inappropriate animations. We didn t find large graphics onto web pages, which can cause slows down access to the page and will probably frustrate the customer into abandoning the site. Plug-in and helpers are not required for key functions on both of the websites. Acrobat reader is required to open annual reports and other documents. Britishairways.com has given an option to download acrobat reader via the links on the website. Both of the websites in our case don t support thumbnail option to show pictures because they don t provide any tangible products to sell. The websites use progressive rendering to see text before pictures but they don t provide an option of text-only choice. Both of the websites are implementing SSL protocols for customer s data security. They ensure that customer personal information cannot be read by anyone else. These websites provide a confirmation page and send an email after completing purchasing process. Copyright information is also available on both of the websites which shows that all trade marks and database rights on the website together are owned by the company. Without their prior written permission, nobody can copy, sell or transfer material on the website. These websites are using simple and concise text to provide clear business description, which describes about the company business and services. Britishairways.com provides Contact Information on each page of website but singaporeair.com is not providing contact information on each page. Both of the websites have used simple background colour for the website design and these are also providing free membership registration facility. The websites in our study have used simple registration forms and the amount of requested information for membership is limited. We have found FAQ on both of the websites but britishairways.com FAQ section is more effective and comprehensive than singaporeair.com. We haven t find jokes and under construction page on both of the website. We have found well-labelled and accurate web links, which led customers to wanted web pages. We didn t find any ambiguously labelled link or dead end link. When we have used hyperlinks of the britishairways.com they don t change colours once we have used it but singaporeair.com provides this property. These websites are using two types of search engines one search engine is used for getting information about company, latest information, baggage, promotion offers and other loyalty schemes. Second search engine is not a real search engine but in this search engine user select different options to get specific flight information. Britishairways.com has used both long and subsequent pages in the website but comparatively singaporeair.com has used long pages. Both of the websites have site map to guide user for browsing websites. Regarding to customer focus, these websites have clearly defined about cookies information to be up front about business practices. They use cookies in order to make websites work more efficiently, as well as to provide business and marketing information. 62

DATA ANALYSIS Britishairways.com offers content of website in five different languages; these are English, French, German, Italian and Spanish. When customer chooses his country of residence, content in the default language for that country will be displayed. Singaporeair.com global website is English but there is also a choice of different languages on the website. 6.2 How are the customers served in this online environment? In this section, we will conduct analysis of the second research question. First, we will present the results of the within-case analysis for both of the cases. Second, we will conduct a cross-case analysis where we will compare both of the cases with each other. 6.2.1 Within-Case Analysis of britishairways.com In accordance with placing order, customer can choose a number of methods to purchase a ticket. First, customer order and pay via by telephone, second customer can purchase a paper ticket from physical offices and moreover online booking facility for ticket is also available. Therefore it refer to the finding of Connee (1998), the customer should have the possibility to choose between different methods of payment when shopping online. When customer has completed booking a ticket, britishairways.com sends a confirmation email on the given email address to provide assurance that ticket has been booked. It is consistent with statement of Zemke & Connellan (2001), when customer places an order in the faceless, voiceless world of e-commerce they often have anxiety that the order just placed has disappeared into a virtual black hole. That is why e-business must recognize electronic order confirmation as one of the easiest and most cost effective ways to increase customer satisfaction and provide such a service. Britishairways.com has a facility to manage booking which allowed customers to change date or time of flight, upgrade class of travel, cancel or refund ticket, request a seat, advice dietary requirements and check in online. Which is something found in Sterne (2000) statement that the customer expectation is company computer can talk to the customer and he can access his account information. For payment option, britishairways.com allows customers to pay by different cards; visa delta/ debit, visa, switch / maestro, solo, master card, JCB, dinners club and American express. It is consistent with statement of Dawn (2000), an e-commerce application must support one or more payment systems. If customer like to make a booking that departs from a city outside the country in which he currently live, or where his credit card has been issued, he will need to telephone his local British Airways office to find out if his offline payment can be made over the phone or in person at a British Airways Travel Shop or Airport ticket desk. It is something found by Teltzrow & Berendt (2003), most of the customers arriving via online channel tend to use multichannel sites to collect information and place orders but prefer physical stores for pickup and payment. 63

DATA ANALYSIS In accordance with shipping information, there is no shipping and handling information because ba.com is not providing physical products. Tax, fees and surcharges information is available on ba.com, which shows how much charges applied on purchasing of ticket. When company take new measures like apply new insurance and security surcharges, the detail of these surcharges and whom it s applied is also clearly described. Regarding to web policy, ba.com collects three types of information online first about customer use site because they track this using cookies, second about travel patterns and last one is about the information customer type. In privacy policy ba.com has been explained that how company uses this data and with whom it shares. It refers to Sterne (2000), one of the sticky issues that frequently crops up when the discussion gets to data gathering and customer specific information being accumulated is privacy. Security policy is also given on the website which shows that how company provides security to customers data with the help of SSL. It refers to Collins (1998), web-services that provide detailed information on trust and the security system implemented by companies for secure transactions are important attributes in B2C e-commerce. Ba.com has provided company information like what is the business of a ba.com, annual reports, brochures, and there is also one special section for student projects. In accordance with returns, if ba.com makes changes in a ticket, which is not acceptable, then the customer will receive a full ticket refund. It is something found in Hoffman & Bateson (1997), money back guarantees assure the consumer that if they are less than satisfied with their purchase, they can invoke the guarantee within a certain period and under certain conditions. Offering guarantees signals to customers that the firm is committed to deliver high quality of product and service. Ba.com allow customers to change the date, time of flight, upgrade flight to a higher cabin, cancel or refund ticket online. All the retuning information is provided on the web. It is consistent with the statement of Lee (2003), providing a lenient or fair return system will lower the perceived risk involved. The customer is more likely to purchase the product if they know that returning the product will be of minimal hassle and at no expense. In accordance with interactive service, britishairways.com uses email to stay in contact with customers, to inform them of any additional requirements or changes travel schedule. Customers can use email for upgrade their personal information. It is something consistent with Cleaver (1999), the company should emphasise clarity and professionalism and also apply the same rules to the company s email capability as they do to the phone, the fax, and the copy machine. Responding to a customer comment, question, or complaint via e-mail requires the same care used when responding over phone and in writing. The website has a self-service knowledge base of information that provides instant answers to frequently asked questions (FAQ). The information contained within it reflects the type of questions customers ask on a daily basis. It is consistent with statement of Sterne (2000), FAQ provides the fundamental and lets the casually curious as well as the internet hunter-seeker come up to speed as quickly as possible. Organisations that are well organized will be used and save a great deal of telephone time for both the customers and the companies. There isn t any chat function on the website which is opposite to the Dietel (2001), online text chatting provides real time 64

DATA ANALYSIS communication between customers and suppliers. Those who are not able to get an answer online have the option to contact a service representative immediately if the company offers text chatting (Dietel, 2001). There is also a sitemap on the website under the content of Site Map which is provided on the top of every page. Which is helpful for the users when the website information is extensive and there is not room on the screen for all of the contents it is usually possible to scroll or skim through the page. 6.2.2 Within-Case Analysis of singaporeair.com In accordance with placing order, customer can choose a number of methods to purchase a ticket from Singapore Airlines. Customer can order and pay via by telephone, customer can purchase a paper ticket from physical offices and moreover online booking facility for ticket is also available. Therefore it refer to the finding of Connee (1998), the customer should have the possibility to choose between different methods of payment when shopping online. When customer has completed booking an e-ticket, singaporeair.com sends a confirmation email on the given email address to assure the customer that the ticket has been booked. It is consistent with statement of Zemke & Connellan (2001), when customer places an order in the faceless, voiceless world of e- commerce they often have anxiety that the order just placed has disappeared into a virtual black hole. That is why e-business must recognize electronic order confirmation as one of the easiest and most cost effective ways to increase customer satisfaction and provide such a service. Singaporeair.com has a facility to manage booking which allowed customers to change date or time of flight, upgrade class of travel, cancel or refund ticket, request a seat, advice dietary requirements and check in online. Which is something found in Sterne (2000) statement that the customer expectation is company computer can talk to the customer and he can access his account information. For payment option, britishairways.com allows customers to pay by different cards; Visa, Master and American Express. It is consistent with statement of Dawn (2000), an e- commerce application must support one or more payment systems. The credit card used at the time of e-booking, is used as a ticket at the airport of departure. Offline payments can be made over the phone or in person at a Singapore Airlines Office or Airport ticket desk. Once a ticket booked on singaporeair.com, can be collected in paper form from any nearest Singapore Airline Office. It is something found by Teltzrow & Berendt (2003), the most of the customers arriving via online channel tend to use multi-channel sites to collect information and place orders but prefer physical stores for pickup and payments. In accordance with shipping information, there is no shipping and handling information because singaporeair.com is not providing physical products. Tax, fees and surcharges information is available on singaporeair.com, which shows how much charges applied on purchasing of ticket. When company take new measures like apply new insurance and security surcharges, the detail of these surcharges and whom it s applied is also clearly described. Regarding to web policy, there are two broad categories of customer data singaporeair.com collect: Individual Customer Data which include name, address, phone 65

DATA ANALYSIS number, email address and credit card information, and Behavioural Data which includes number of passengers flown, hits to the website and used for analytical purposes. Singaporeair.com described that the purpose for collection, processing and disclosure of data for different services provided to customers and for marketing and communication purposes. Singaporeair.com amends privacy policy statement from time to time and the updated versions are posted on the website and date stamped to aware its customer upto date with privacy policy. It refers to Sterne (2000), one of the sticky issues that frequently crops up when the discussion gets to data gathering and customer specific information being accumulated is privacy. Security policy is also given on the website which shows that how company provides security to customer s data with the help of SSL. It refers to Collins (1998), web-services that provide detailed information on trust and the security system implemented by companies for secure transactions are important attributes in B2C e-commerce. Ba.com has provided company information like what is the business of a ba.com, annual reports, brochures, and there is also one special section for student projects. In accordance with returns, if the customer have not commenced the journey and wish to obtain a refund for the entire itinerary, he/she can chancel the booking through singaporeair.com by clicking on [Booking] followed by [Cancel Booking] at the top navigation bar. The refund will be automatically credited back to the credit card used to purchase the ticket. How if the customer has already been issued a physical ticket, he/she will need to return it to a Singapore airlines office before they can process the refund. The refund usually takes slightly more than a month to process. If the customer cancelled part of an itinerary, but do not wish to credit the refund, Singapore Airline Office can be contacted. Administrative fees may apply for cancellations and/or refunds. A partial cancellation is also possible but by local reservation office not by website. For change of route of ticket the customer should contact to the nearest office not by website. It is something found in Hoffman & Bateson (1997), money back guarantees assure the consumer that if they are less than satisfied with their purchase, they can invoke the guarantee within a certain period and under certain conditions. Offering guarantees signals to customers that the firm is committed to deliver high quality of product and service. Singaporeair.com allow customers to change the date, time of flight, upgrade flight to a higher cabin, cancel or refund ticket online. All the retuning information is provided on the web. It is consistent with the statement of Lee (2003), providing a lenient or fair return system will lower the perceived risk involved. The customer is more likely to purchase the product if they know that returning the product will be of minimal hassle and at no expense. In accordance with interactive service, singaporeair.com uses email and login to stay in contact with customers, to inform them of any additional requirements or changes travel schedule and to check the status of their bookings. Customers can use login for upgrade their personal information. It is something consistent with Cleaver (1999), the company should emphasise clarity and professionalism and also apply the same rules to the company s email capability as they do to the phone, the fax, and the copy machine. Responding to a customer comment, question, or complaint via e-mail requires the same care used when responding over phone and in writing. The website has a self-service 66

DATA ANALYSIS knowledge base of information that provides instant answers to frequently asked questions (FAQ). The information contained within it reflects the type of questions customers ask on a daily basis. We have email to enquire some questions about the website and we used enquiry form. The response was quick, firstly we received automatically generated response and secondly we received the answer of our questions with in 24 hours. It is consistent with statement of Sterne (2000), FAQ provides the fundamental and lets the casually curious as well as the internet hunter-seeker come up to speed as quickly as possible. Organisations that are well organized will be used and save a great deal of telephone time for both the customers and the companies. There isn t any chat function on the website which is opposite to the Dietel (2001), online text chatting provides real time communication between customers and suppliers. Those who are not able to get an answer online have the option to contact a service representative immediately if the company offers text chatting (Dietel, 2001). The sitemap is given in the bottom of each page of singaporeair.com, which is helpful for the users when the website information is extensive and there is not room on the screen for all of the contents, it is easy for customer to go through the sitemap page. 6.2.3 Cross-case Analysis In this part of the analysis, we will compare how customer is served on britishairways.com and singaporeair.com. Table 6.2 shows the presented companies and their listed parameters. 67

DATA ANALYSIS Table 6: How britishairwas.com and singaporeair.com serve customers in online environment cross case analysis Customer Service Components britishairways.com singaporeair.com Placing Order Number of Order Method Yes Yes Order Status Yes Yes Confirmation of product order by email Yes Yes Payment Option Number of credit card accepted Yes Yes Offline payments Yes Yes Pay later No No Shipping Information Shipping and handling information No Yes Sales and tax information Yes Yes Returns Money Back Guarantee No No Convenient Returning information Yes Yes Returning Methods Yes Yes Interactive Service Email Yes Yes Toll-fee number No No Interactive chat function No No FAQ Yes Yes Site map Yes Yes Shopping Help Site No No Web policy Privacy Yes Yes Security Policy Yes Yes Company Information Yes Yes Source: Authors own creation Both of the websites in our case provide number of ways for placing order. Customer can choose to book and pay via by telephone, or from physical offices. These websites are providing facility to manage booking which allowed customers to change date or time of flight, upgrade class of travel, cancel or refund ticket, request a seat, advice dietary requirements and check in online. When customer is completed booking, confirmation email has been sent on the given email address to provide assurance for booking. For payment options, singaporeair.com accept Visa, Master and Ameriacan Exprss cards and comparatively britishairways.com allows customers to pay by different cards; visa delta/ debit, visa, switch / maestro, solo, master card, JCB, dinners club and American express. Britishairways.com is currently working towards expanding this capability. Tax, fees and surcharges information is available on both of the websites, which shows how 68

DATA ANALYSIS much charges applied on purchasing of ticket. We have found that britishairways.com provides tax and ticket information in quite earlier stages rather than singaporeair.com which gives this information in later stages. Regarding returning policy, both websites allow customers to change date, time of flight, upgrade flight to a higher cabin, cancel or refund ticket online. Although both websites apply refund administration charge for all tickets refund, but the refund charges are different in both companies. Retuning information of tickets is provided on both websites in clear and concise text. Regarding to interactive service, these companies are using email to stay in contact with customers, to inform them of any additional requirements or changes travel schedule. If visitor is unable to find information by using questions then he can submit an email through to britishairways.com but singaporeair.com doesn t provide this facility. The websites have self-service knowledge base of information that provides instant answers to frequently asked questions (FAQ). Information contained within it reflects the type of questions customers ask on a daily basis. We have found britishairways.com FAQ section more comprehensive than singaporeair.com. If user is unable to find information either from website pages or by using questions then user can submit an email through britishairways.com to submit his query. We have found sitemap on the websites but we didn t find any interactive chat function on both websites. Contact information from country to country is provided on websites but there is no toll-free number available. We have found that both of the websites have clearly described their web policy. Privacy policy of the company has been explained on the website. To keep customers data safe both companies don t share user data to third parties except to the Agencies, customs and immigration offices. Security policy is also given on the both websites, which shows how companies provide security to customer s data with the implementation of SSL. These companies are providing annual reports and brochures on the websites. Britishairways.com has given a special section for student projects. 69

FINDINGS AND CONCLUSIONS 7 FINDINGS AND CONCLUSIONS The aim of this chapter is to provide an answer to what this study uncovered. In order to do this, we will first answer both of the research questions posed in a chapter one. First, an overall finding will be presented followed by specific qualitative conclusions for each of the two research questions. After this we will present the implications for management, theory, and for further research. 7.1 How can the online environment be described? After discussing the first research question, following results are concluded: There are various factors that are contributed to deliver a good online environment. We have analyzed the five factors on international airlines websites. Regarding the pageloading speed, customers don t want to waste time in page loading, it s a major frustration for users if speed of website is slow therefore websites downloadable speed need to be fast. Simple graphics in a website design not only makes website more appealing but also it makes them faster to download. There are other various factors which are really effected the page-loading speed like the use of thumbnails, text-only choice, progressive rendering and plug-in. Most commonly the websites which are service oriented they don t use thumbnails because they don t need to show images of products. In order to progressive rendering, it allows text to download first and images come after the text, which helps to increase page-loading speed. Avoidance of plug-in is also a good strategy because the use of plug-in drives away the customers from the website. In business content, websites must provide sufficient information about the business in a clear and concise text that customer can easily purchase online. It s a good strategy to provide contact information on each page then it is convenient for the customers to make a quick contact with the company. The companies need to use simple background colours and textures in website design and if the background colour is matched with the company image then it would make the websites more memorable for customer. To attract customer s websites should provide free services, make regular changes to the site and create a FAQ section. There are few other things which may be avoided on website like under construction signs and the request of unnecessary information for registration forms. Regarding to navigation efficiency, customers must easily know from the main page that what is available on the website, so the clear links with the clear choice of words convey the message of what is website about. Normally, websites are using frames to increase page loading but the excessive use of frames is not a good strategy because few web browsers don t support frames. Use a search engine is one of the first strategies, which visitor use to find information from the website. It is helpful for the users who are 70

FINDINGS AND CONCLUSIONS looking for a specific piece of information. So the websites must provide sitemap and search engines to navigate website easily. The extent, to which a security is provided on website, helps to determine a strategic potential of website. Websites are implementing SSL protocols, it provide security to the customer data by sending it in an encrypted form to the main database of a company. User can see icon in bottom of the browser when data is encrypted which helps to make consumer feel safe. When order has been placed then websites need to send a confirmation email with information of order detail, it provides satisfaction to customer that order has been confirmed. In accordance with customer focus, to gain trust of the customers, all the business practices must be disclosed on the website. If a website is using cookies, then it must be clearly describe on the website that why company is using cookies and what it will do with this information. o The study describes that companies are designing simple websites; it not only makes the site appealing but also makes it faster to download. o o o o This study describes that multiple search options are used to targeting certain information. It is an effective to clear whether the search facility refers to the whole site or one particular section. In accordance to website design, it makes website more memorable if the combination of background and text colours match with website logo. Regarding website design, it is an effective way to use matching contents of website with business needs, it helps website to meet specific business goals. This study shows that minimum number of links should be used to find information and once the link has been used then it must change its colour. 7.2 How are the customers served in this online environment? After discussing the second research question, following results are concluded: The Internet is opening new ways of serving customers and companies seem to be taking advantage of this. Internet is providing the facility to interact with the customers in a way that can t be found in other channels. Online customer services offer possibility for the companies to reach the customer individually and provide the customers individual solution of their problem. In the online environment only those companies are successful which provide fundamentals of good customer services not a flashy web contents. Websites are putting a lot to providing an efficient customer services on the Internet. Regarding the placing order, it s a nice strategy to send a confirmation email after completing a booking process. It provides an immediate proof to the customers that order 71

FINDINGS AND CONCLUSIONS has been placed. Order status is used in a website design to get to know the stage of a shipping process of a customer order. Customer feels satisfaction after getting to know that when its order has been shipped and when it will be delivered. In order to facilitate customers websites provide multiple options to purchase product and make payment. It s a nice strategy to provide multiple payment options, it helps customer to select most appropriate option for him. Websites provide shipping and handling information with product because once customer goes through the purchasing process and then it comes to know that shipping charges are more than his expectation, it will leave a negative impression on customer. Customers are willing to purchase a product if they know that the product will return without any hassle. Therefore, all information about money back guarantee and returning methods are described in clear and simple words. It must be accessible from the homepage to prevent the customer from any hassle. One of the sticky issues in e- commerce is privacy, companies are explained on website that how they are using customer s collected data and to whom they share. The extent of security implementation helps to determine strategic potential of website. In accordance with interactive services, websites are serving their customers efficiently and consistently across the various channels available to them. Few websites are allowing users to send an email from their websites. It s a nice option if customers don t want to wait for a representative to have a chat with them. Some times email is not convenient if the user is in hurry then he would prefer to call the company. So, the contact number must be on the website. One of the most powerful ways to interact with the customer is chat function. It allows the customer to interact with the company representative one-toone without disconnecting. Both of the websites are not providing this useful function. o Privacy and security policy is described on each page of website for customer satisfaction. o This study shows that in online environment consumers demand immediate response of their problem and easy interaction with company s representatives. o It is an effective way to provide different order placement options for increasing customer satisfaction. o Customers are assured, they can easily return product without any hassle. o Customers want personalise experience through communication channels, efficient interactive services not only decreases the frustration but also increase customer loyalty. 72

FINDINGS AND CONCLUSIONS 7.3 Implications for managers We have investigated in this thesis how Internet is used as a strategic tool in e-crm on two international airlines for Asia and Europe. By our findings, these recommendations concern to the companies, which want to improve customer relationships or trying to do it. o Our study implied that the design of a website needs to be viewed primarily as business task, not a technical task. The website design needs to be appropriate to the needs of the company and should focus supporting business goals. o Customer service is a multidimensional task and initially it s not possible for a company to cover all the areas simultaneously so the company must start to work on most important task and get perfection in it rather than work on a multidimensional task and get nominal perfection in it. o Managers need to increase websites self-problem solving functions. It helps to decrease customer s interactivity with company s representatives. o This study implies that frames should be avoided in website design because few browsers are not supporting frames. o Chat and email functions must be included in a website. It s a cheapest way to have one-to-one interaction between company and customer. o Shipping or tax information must be accessible before proceeding the purchasing process. 7.4 Implications for theory The aim of our study is to explain, explore and describe the phenomena that how Internet can be used as a strategic tool in e-crm. The concept of CRM is not new but the use of the Internet in CRM is relatively new. This study contributes in previous theory since it has investigated the use of Internet in customer relationship management. It s a hot area but it has not been well researched how Internet can be use as a strategic tool e-crm. The findings of our study shows that some findings are not consistent with what the previous research has been stated and some findings are consistent with the previous research. Therefore our study contributes to the literature and it could serve as a base for further research. 73

FINDINGS AND CONCLUSIONS 7.5 Implications for further research Internet and e-crm are vast fields of research, and there is lot to be discovered in this area. We are able to find out only a limited part of this area. While writing this thesis several interesting issues related to our study has been discovered. Some of the issues caught our attention and based on these issues our suggestion for further research are: o Risks involved in the implementation of e-crm. o In our study we have collected data from documentation and websites; this needs further consideration by collecting data through interviews of the company and customers. o Furthermore, future studies can easily extend this study by using different conditions. o Same study can be conducted on larger sample of websites. o Websites in our cases are based on bricks and mortar companies. Future study can be conducted on virtual companies. o Use of distinct identity, which helps to differentiate the website and make it more memorable. 74

REFERENCES REFERENCES Allen, E., Fjermestad, J., 2001, E-commerce marketing strategies: an integrated framework and case analysis, Logistics Information Management, 12, 1, 14-23. Andersen Consulting, 1999, One quarter of attempted on-line holiday purchases end in no sales, New York, NY. Anton, J., 1996, Customer Relationship Management, Prentice-Hall, New York, NY. Anton, J., Hoeck, M., 2002, e-business Customer Service, The Anton Press, Santa Monica, CA. Anton, J., Postmus, R., 1999, The CRM performance index for Web based business, www.benchmarkportal.com. Asokan N., Janson Phillipe A., Steiner Michael, Waidner Michael (1997), The State of the Art in Electronic Payment Systems, IBM Research Division Blank, J., Daniels, D., 2001, Analyzing customer drop-off rates: understanding why customers abandon shopping carts, Jupiter Communications, 1. Briones, M. (1998 Novermber). Customer services the key to online relationship. Marketing News. Chicago, Vol.32, No.24. Christopher Bull, Strategic issues in customer relationship management (CRM) implementation, Business Process Management Journal, Volume 9 Number 5 2003 pp. 592-602 Clicksure, (1999), Clicksure Quality Standard for Electronic Commerce, Washington, DC. Collins, S. (1998). Doing business on the Internet. London: Kogan Page Ltd. Connee, P. (1998 November). E-handel ska ge kunden valfrihet. Computer Sweden 4. Constantine, L.L., Lockwood, L.A.O, 1999, Software For Use, Item Press, New York, NY. Cox, Dale, B.G., 2002, Key quality factors in Web site design and use: an examination, International Journal of Quality & Reliability Management, Vol. 19 Creative Good, 2000, Dot.Com Survival Guide, Creative Good Inc, www.creative good.come. 75

REFERENCES Dawn Jutla, Peter Bodorik, Yie Wang, (2000), Developing Internet e-commerce benchmark, Information Systems Vol. 24, No. 6 Deitel, H.M., Deital, P.J., Steinbuhler, K., 2001, e-customer relationship management, Dey Ian (1993), Qualitative data analysis: a user-friendly guide for social scientists, London: Routledge Donlan, J.P, (1999), The customer centered enterprise, Chief Exective, Dyche, Jill. (2002). The CRM handbook: a business guide to Customer Relationship Management. Boston: Addison-Wesley. Evert Gummesson (2002), 2 nd Edition, Total Relationship Marketing, Butterworth- Heinemann ISBN 0 7506 5407 4 Jang Eunyoung, Burns Leslie Davis (2004), Components of apparel retailing Web sites Feinberg, R., Kadam, R., Hokama, L., Kim, I., 2002, The state of electronic customer relationship management in retailing, International Journal of Retail & Distribution Management. Foremski, T, 2000, Web site design, The Financial Times. Gaines, S., (2002), Customer interaction: Accenture + Teradata raise the bar, Teradata, 2Q, p. 25, available at: www.teradatamagazine.com. Gann, R., (1999), Every second counts, Competing, 38-40. Gehrke Dave, Turban Efraim (1999), Determinants of Successful Website Design: Relative Importance and Recommendations for Effectiveness Gibson, G. (2002) Internet usage soars, Media Guardian, 11 June. Glynn, W., & Barnes, J. (1995). Understanding Services Management: integrating marketing, organisational behaviour, operations and human resource management. Chichester: Wiley Co. Greenberg. P.(2001). CRM at the Speed of Light: Capturing and Keeping Customers in Internet Real Time. Berkeley: McGraw-Hill. ISBN 0 07 212782 1. Herzog Thomas (1996), Thomas Research methods and data analysis in the social sciences, New York, N.Y.: HarperCollins Heskett, J.L, Jones, T.O, Loveman, G.W, Scsser, W.E, Schlesinger, L.A, 1994, Putting the service profit chain to work, Harvard Business Review, 72, 2, 167-74. 76

REFERENCES Hoffman, D., & Bateson, J. (1997a), Essentials of Service Marketing. Fort Worth: the Dryden Press. Holt, M, (2000), Strategy: ten steps toward a better Web site design, Bangkok Post. Horton, M., e-business & e-commerce for Managers, Prentice-Hill, Upper Saddle River, NJ, 272-300. Injazz J. Chen and Karen Popovich, Understanding customer relationship management (CRM) People, process and technology Jackson, 2001, The e-mail marketing report Jackson, D. Jr, 1994, Relationship selling: the personalization of relationship marketing, Asia-Australia Marketing Journal, August, Jakobsson, P. (1995). Internet I marknadsforingen & marknadskommunikationed. Lund: Studentlitteratur. Janal, D.S. (1998), Online Marketing Handbook: How to Promote, Advertise, and Sell Your Products and Services on the Internet. New York, US: John Wily & Sons, Inc. Jeong Yong Ahn (2003), Seok Ki Kim, Kyung Soo Han, On the design concepts for CRM system, Industrial Management & Data Systems Kassanoff, B., 2000, Build loyalty into your e-business, in Proceedings of DCI Customer Relationship Management Conference, Boston, MA, Kotler, P., & Armstrong, G. (1996), Principles of marketing, Englewood Cliffs: Lawrence, et al (2001), Technology: Friend or Foe to Customer Relationships? Marketing Management, Vol.10-11, Issue.4,pp.10. ISSN 10613846. Lee Choong Y. (2003), A New Marketing Strategy for E-Commerce Leppard, J., & Molyneux, L. (1994), Auditing your customer service: the foundation for success, London: Routledge. Levine, J., 1993, Relationship marketing, Forbes Marshall Catherine, Rossman Gretchen B. (1999), Designing qualitative research, 3 rd Ed, Thousand Oaks, Calif.; London : SAGE, cop. Mauriello, J., 2002, Integration relieves call center hang-ups, Integrated Solution, August, 72-3. 77

REFERENCES McRobb, Steve; Rogerson, Simon, Information Technology & People; Volume 17 No. 4; 2004: Are they really listening?: An investigation into published online privacy policies at the beginning of the third millennium. Mitchell, A. (2000) In one-to-one marketing, which one comes first?, Interactive Marketing, 1 (4), 354-67. Miles Matthew, Huberman Michael (1994), Qualitative data analysis : an expanded sourcebook, 2 nd Ed, Thousand Oaks, Calif. : Sage, cop. Miles, M.B., & Huberman, M.A. (1994). Qualitative Data Analysis. 2 nd Edition. London: Sage Publications, Inc. Newell, F. (2000), Loyalty.com: Customer relationship management in the new era of Internet marketing, McGraw-Hill. Ody, P, 2000, The challenging task of building strong e-loyalty: customer relationship marketing, The Financial Times. Parkinson, S, (1997 Spring), Marketing: from strategy to service, Manager Update, Vol.8, No.3. Paul Greenberg, 2004, CRM at the speed of light : essential customer strategies for the 21st century, McGraw-Hill/Osborne PR Newswire, 2000, US e-commerce market phcs plenty of room to grow, IDC Reveals, Prentice Hall, Inc. Reichheld, F.F., 1996, learning from customer defections, Harvard Business Review, March-April, 56-69. Reichheld, F.F., 1996, The Loyalty Effect, Harvard Business School Press, Boston, MA. Richard Feinberg and Rajesh Kadam, E-CRM web service attributes as determinants of customers satisfaction with retail websites. Robson Colin (2002), Real world research: a resource for social scientists and practitioner-researchers, 2 nd Ed, Oxford: Blackwell Roussel-Dupre, S. 2002, Taking an e-focus, Integrated Solutions, June, 40-6. Saunders, Mark N. K.(2000), Research methods for business students, 2 nd Ed, Financial Times/Prentice Hall. 78

REFERENCES Sewell, C. & Brown, P.B. (1993), kund for livet: En bok om kundvard. Borga, Sverige: Svenska Dagbladets Forlag. Simeon, R., 1999, Evaluating domestic and international Web-site strategies, Internet Research: Electronic Networking Applications and Policy, 9, 4, 297-308. Spool, J, Scanlan, T, Schroeder, W, Snyder, C, De Angels, T., 1999, Web Site Usability: A Designers Guide, Morgan Kaufmann Publishers, New York, NY. Stanton, W.J., Miller, K.E., Layton, R.A., 1994, Fundamentals of Marketing, McGraw- Hill, Roseville, NSW. Sterne Jim (2000), Customer service on the Internet : building relationships, increasing loyalty, and staying competitive, Wiley, cop. Swift, R.S., 2001, Accelerating Customer Relationships Using CRM and Relationship Technologies, Prentice Hall PTR, Englewood Cliffs, NJ. Tersine, R., & Harvey, M. (1998 February), Global Customer izatin of Markets has Arrived! European Management Journal, vol.16, No.1. Trepper, C. (2000), Match Your CRM Tool To Your Business Mode,. Information week. Vol. 15, Issue. 786 Trocchia Philip J. & Janda Swinder (2003), How do consumers evaluate Internet retail service quality? Journal of Services Marketing, Volume 17 Number 3 Vassilopoulou, K, Keeling, K, 2000, Usability measurement tool survey: differences between Australia and UK, Manchester School of Management, UMIST, Manchester. Verdict, 2000, Verdict on Electronic Shopping, www.verdict.com. Vernon, M, 2000, Translating Brand equality on line is a big challenge: reliability and security of brands, The Financial Times. Web Associates (2000), e-everything Technology-Enabled Customer Relationship Management, The Ultimate Guide to the Efficient use of CRM. Wiegran, G, Koth, H, 2000, Customer retention in on-line retail, Journal of Internet Banking and Commerce 2, www.arragdev.com/commerle/jibe/9909-07htm. Xu, Y. (2002), Adopting customer relationship management technology. Industrieal Management & Data Systems, Vol. 102, No 8, pp. 442-452. ISSN 0263-5577. 79

REFERENCES Yang, Xia, Ahmed, Zafar U., Ghingold, Morry, Boon, Goh Sock, Mei, Tham Su Mei, Hwa, Lim Lee Hwa, 2003, Consumer preferences for commercial Web site design: an Asia-Pacific perspective, Journal of Consumer Marketing, Vol. 20 No. 1, pp. 10-27 Yin Robert K. (1994), Case study research: design and methods, 2 nd Ed, Thousand Oaks, Calif.: Sage Publications Zemke, R. & connellan, T. (2001), e-service: 24 ways to keep your customers when the competition is just a click away, New York, US: Amacom 80

APPENDIX A OBSERVATION CHECKLIST Page-loading speed Keep graphics simple and meaningful Limit the use of animation and/or multimedia plugin requirements Use thumbnails Provide text-only choice Check and monitor your server and Internet route Use progressive rendering Security Stress the use of security Protect your copyrights Generate a confirmation page after a consumer makes a purchase Business Content Use clear and concise text with proper spelling and grammar to describe the business Provide contact information on each page Use simple background colors and textures Provide free services or useful information Make regular changes to the site Limit registration forms and the amount of requested information on them Jokes on the site avoid or not Create a Frequently Asked Questions (FAQ) section Avoid Under Construction signs Navigation Efficiency Use well labeled, accurate (no broken) links Avoid the use of frames Keep navigation consistent 81

APPENDIX A Provide an effective search engine in the site Use distinctive hot buttons Use long pages with links rather than subsequent pages Use site maps/guides if the site has many underlying pages Avoid links that open up new browsers or pop-up ads Customer Focus Provide as many payment alternatives as possible Be up front about business practices Use an auto responder Write the Website in English or give the English choice Placing Order Number of Order Method Number of extra order Order Status Confirmation of product order by email Payment Option Number of credit card accepted Offline Payments Pay later Shipping Information Shipping and handling Information Number of delivery option International shipping Sales tax information 82

APPENDIX A Returns Money Back Guarantee Convenient Returning information Returning Methods Interactive Service Email Toll-fee number Interactive chat function FAQ Site map Shopping Help Site Web Policy Privacy Security Policy Company Information 83

APPENDIX B WWW.BRITISHAIRWAYS.COM 84

APPENDIX C WWW.SINGAPOREAIR.COM 85