THE IMPACT OF SUBSCRIPTION-BASED BUSINESS MODELS ON CONSUMER LOYALTY IN E-COMMERCE & RETAIL (AMAZON PRIME, FLIPKART PLUS)

Abstract

The Indian e-commerce industry has grown quickly to bring subscription-based business models such as Amazon Prime and Flipkart Plus to the centre of customer retention models. This research examines the real influence of such subscription patterns on consumer satisfaction and loyalty in the context of India's online retail market, with special reference to Indian users in Trichy. With the aid of descriptive research design and convenience sampling technique, primary data were gathered through surveys among active and inactive users of Amazon Prime and Flipkart Plus. Independent Sample T-tests and ANOVA were used to analyze the data and determine if there exists any meaningful difference between the two websites with regards to loyalty, satisfaction, and subscription influence. The results show that there is no notable disparity in consumer loyalty among Amazon Prime and Flipkart Plus users. Further, subscription length does not seem to play a crucial role in influencing customer satisfaction. Rather, product range, price, and customer support were shown to play a more critical role in influencing consumer behavior and platform choice. The research concludes that although subscription models are convenient and provide value-added benefits, they don't rank highly as key drivers for satisfaction or loyalty. Increasing service quality and perceived benefit value could be more effective in customer retention. The findings will prove to be insightful for e-commerce players in improving their loyalty initiatives and highlight the need for more research in different geographies and platforms.

Keywords: e-commerce, Amazon Prime, Flipkart Plus, consumer loyalty, customer satisfaction.