Abstract

The purpose of this study is to identify customer-specific differences in a general model of e-loyalty taking into account the existence of unobserved heterogeneity. Specifically, this paper aims to test for the presence of customer heterogeneity; assess the impact of potential bias when there is no control for heterogeneity; analyse the distinct customer segments that emerge from the empirical estimation of the model; and describe the segments by their demographic and psychological characteristics. Panel data from a survey of online shoppers are used in a post hoc segmentation method, which will enable us to identify segments, while estimating the parameters by means of structural equation models. Three distinct consumer segments emerge. The relative importance of e-loyalty and e-satisfaction is significantly determined by consumers’ shopping styles. This study highlights the need to consider unobserved customer heterogeneity when attempting to explain satisfaction and loyalty development processes in the retail context in general and e-commerce in particular. To the authors’ knowledge, this is the first time this approach has been used to analyse the impact of customer heterogeneity on e-satisfaction and e-loyalty.