The Economics of Consumer Loyalty in Quick Commerce: Price Sensitivity and Brand Switching
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Abstract
Quick Commerce (Q-commerce) has emerged as a transformative force in the retail sector, enabling ultra-fast delivery services that cater to the evolving demands of modern consumers. This paper examines the economic impact of consumer loyalty in Q-commerce, exploring key factors such as price sensitivity, brand switching behavior, and retention strategies. It highlights the critical role of customer retention in ensuring profitability, given the high costs associated with customer acquisition in this space. Through an analysis of pricing dynamics, loyalty programs, and competitive market forces, the study identifies the determinants of consumer loyalty and their influence on business sustainability. Additionally, the paper discusses how technological advancements, including AI-driven logistics, predictive analytics, and automation, are reshaping operational efficiencies in Q-commerce. Findings suggest that while price remains a major determinant in consumer decision-making, seamless service quality, speed, and personalized engagement significantly contribute to long-term customer retention. The study concludes that businesses focusing on optimizing customer experience while maintaining competitive pricing and operational efficiency will be best positioned for sustained growth in this rapidly evolving industry.