Increase in Internet usage as a means for communication and online purchases, doubled with intense competition between companies, has brought about great efforts to raise customer loyalty to web sites. Although previous studies have proposed a close c...
Increase in Internet usage as a means for communication and online purchases, doubled with intense competition between companies, has brought about great efforts to raise customer loyalty to web sites. Although previous studies have proposed a close connection between loyalty and profitability, they leave much room for fundamental studies and empirical analysis on the actual relationships among customer loyalty influence factors. This paper focuses on flow, which is the primary concept in online consumer behavior studies, and its relationship to customer loyalty. The relation scheme of Perceived Interactivity-Flow Experience-Website Loyalty is explored through a combination of perceptual and behavioral measures: the perceptual measure by online survey and the behavioral measure using a log-file analysis. A 3 SLS analysis based on a combined and component-wise approach provides ground for validity and generalization. Results show that flow experience performs the role of a mediating variable between website loyalty(duration time and visit frequency) and perceived interactivity(person and message interactivity) measured as a multi-dimensional component. In other words, an increase in the consumer`s perceived interactivity leads to an increase in website loyalty not directly, but through flow experience. Study results also indicate that `speed` which had previously been examined as a dimension of interactivity performs a role as a moderating variable in the relationship between perceived interactivity and flow experience.