Gen Y customer loyalty in online shopping: An integrated model of trust, user experience and branding

Generational theory posits that generational cohorts develop similar attitudes and beliefs. Gen Y, Millennials, will become the largest customer segment for hotels worldwide. This group likes to travel and prefers to spend money on experiences rather than materialistic items. Their responses to online marketing is expected to be different as they process website information five times faster than older generations and are the most emotional and least loyal customers compared to all other generations. The aim of this research is to develop and test a comprehensive model that explains how Gen Y develops loyalty to a hotel booking website. To test the research model, an online survey was distributed to a systematic random sample of 2500 Gen Yers. Findings highlight that trust is the most important antecedent of e-loyalty in online shopping for Gen Y customers. Brand equity is also a key precursor of e-loyalty. Finally, a positive online experience (flow), is also a significant precursor of e-loyalty for this cohort. Gen Y has emerged as an enormous force with growing spending power.Their responses to online shopping is different from other cohorts.Trust is the most important antecedent of e-loyalty for Gen Y customers.Brand equity is also a key precursor of e-loyalty.Flow is also a significant precursor of e-loyalty for this cohort.

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