Research Report Online Shopping & Customer’s Satisfaction Essay
I feel immense interest at preparing this report. This report has given me the opportunity to practically work on research report. When you are going to read the proposal, undoubtedly you will be pleased to see that all parts of report are clearly described and pointed out. The simple explanation is that this is one of those instances in which all the pertinent data lead down to simplification. I have tried my best to follow the guidelines prescribed by you. I am very much grateful to you that you have given me the opportunity to prepare this research report and hope that this report will meet the standard of your judgment.
Sincerely yours, Acknowledgements The supreme power almighty ћAllah” made it possible for me to study and write this thesis. I am very much indebted to Dry. Md. Shari Allah, the supervisor of my research work for his continuous support and guidance. His valuable suggestions gave me the strength to complete my project.
I owe my deepest gratitude to my friends and respondents who gave their valuable time to help me response many questions. I would like to dedicate this project to my friends and family members who have given me the strength to prepare this research.
Table of contents Chapter Chapter 1: Introduction Chapter 2: Literature Review Chapter 3: Results & Analysis Chapter 4: Conclusion & Recommendation Appendix Bibliography 1. 2 1. 3 1. 4 1. 5 1. 6 2. 1 Contents Introduction Objectives of the Study Scope for Future Research Significance of the Study Limitations of the study Research Methodology Literature Review Page 2 3 5-9 3. 1 Results & Discussion 10-12 4. 1 4. 2 Conclusion Recommendation Detailed Results Survey Questionnaire Data Set References 14 16-18 19-20 21 List of Tables & Figures Figure 2. : Five stage model of Buying process Figure 3. 1: Satisfaction Level Table 3. 1: One-Sample Statistics Table 3. 2: One-Sample Test Table: Model Summary Table: NOVA Table: Coefficients Table: Correlations 6 11 16 17 Executive Summary Internet has changed the consumption habits and means of satisfying demands for comfort. Today the uses of internet are growing rapidly. People use internet for many different purposes such as shopping, banking, education, airline/railway/bus ticket reservation, training, communication and many other purposes.
Online shopping is a new term in the uses of internet. The term online shopping is come due to making life easy and comfortable. Online shopping is becoming popular because of its simplicity and reduction of efforts and cost. Through Online shopping products can be readily available to customers. Customers are satisfied whenever they get their needed products without making much effort. For most educated people, online purchasing is no longer mysterious and, for many, it is the preferred way to shop.
Customers” expectations are higher than ever before and technology is one of the major drivers behind the change. Online shopping depends on a number of factors such time savings, website quality, riskiest, cost reduction and many other factors. To be successful, online retailers need to provide an outstanding online shopping experience. Whenever a customer feels that all their needs are fulfilled then he/she may be attracted in online shopping. The purpose of this research is to see whether there are any relationship between online shopping and customer satisfaction.
To conduct this research, data are collected from different sources and various statistical techniques such as t-test, regression analysis, and correlation analysis are used to make the decision. This research is conducted on 30 respondents who are strutted a structured questionnaire to make their responses. One of (Time_saving) five independent variables (Time_saving, Riskiest, Information_availability, Broad_product_category, Cost_reduction) is compared to the dependent variable (Satisfaction_level_mum) and found a strong positive correlation which shows that online shopping results in customer satisfaction. . 1 Introduction The trend of e-commerce has been increased rapidly in recent years with the development of internet and due to easy accessibility of internet usage. Easy access to internet has driven consumers to shop online. According to University of California, Los Angles (UCLA) communication policy (2001), online shopping is the third most popular activity on internet after email and web browsing. Globally more than 627 million people have been engaged in online shopping; world”s biggest online shoppers include Germans and British.
Books, airline tickets, apparels, accessories and electronic products are the most popular item purchased on the internet (Canticles Report on Global consumers attitude towards online shopping, 2007). Online shopping is used as a medium for communication and electronic commerce o increase and improve in value, quality and attractiveness of delivering customer benefits and better satisfaction. Risk of credit card fraud, lack of privacy, non-delivery risk, lack of quality of goods and services often deter consumers” from resorting to online shopping.
Concerned authorities are devising policies to minimize the risk involved in online shopping. Online shopping offers wider choice with low transaction cost. Consumers” attitude towards online shopping refers to their psychological state in terms of making purchase over internet. The process of online buying behavior insists of five steps and it is similar to traditional shopping behavior. According to the survey among American students it was concluded that internet knowledge, income and education level are powerful predictors of internet purchase among university students.
An increasing number and variety of firms and organization are exploiting and creating business opportunities on the internet. Fierce competitions among online sellers have forced them to gain the competitive edge in the field of virtual shopping. In order to get the competitive edge in the market, the marketers need to know the consumer behavior in the field of online hopping. So it is important to analyze and identify the factors which influence the consumers to shop online in order to capture the demands of consumers.
The main theme of study is to assess the factors that influence the consumers” attitude and behavior towards online shopping. While it is important to investigate the motivation behind consumer purchasing, it is equally important to find as how the consumers form attitudes and behaviors towards online buying because consumer attitude towards purchasing online is a conspicuous factor affecting actual buying behavior. All the needs are strongly affected by different situational factors which can be cognitive involvement (indicates one”s personal relevance with the Internet as a medium of shopping).
More cognitively involved persons usually believe that the Internet can also raise their shopping efficiency. Affective involvement includes affective factors, such as hedonistic and symbolic expectations, can also influence the personal relevance of a shopping medium. Internet users can be categorized into two Internet Shoppers and Internet Browsers, Internet shoppers are the people who shop inline whereas internet browsers are the people who Just browse the internet other than shopping purpose. 1. Objectives of the Study Therefore, the aim of this research is to explore consumer perceptions of Internet- based retailing and scrutinize the major factors that influence the consumer”s online shopping behavior in decision-making process. The specific objectives of the research are: 1 . To explore the relationship between online shopping and customer”s satisfaction. 2. To explore the reasons why people do online shopping. 3. To discover the individual factors that might, on one hand, prompt a buyer to make n online purchase decision and on the other hand, restrain from such decisions. . Finally to put forward some recommendations to the e-tailors in order to improve the current situation. 1. 3 Scope for Future Research The effect of demographic variables such as race, age, gender and culture on the usages of online shopping was not intensively explored. Some demographic variables have interrelations which might have influence on the usages of online shopping as Lee (2009) stated that the cognitive propensity of individuals to risk differs across culture. This means that the customers” acceptance of online shopping may be influenced by cultural differences.
Nevertheless, the risk and trust factors demand for more intensive analysis to spread online shopping throughout the country. 1. 4 Significance of the Study Very few research worked have been done on the customer satisfaction of online shopping in Bangladesh. The field is new and promising and there is a research gap which motivates to conduct the research on this title. The aim of research is to identify the whether there is any relationship between online shopping and customer satisfaction which will be helpful for the entrepreneurs and managements f this field to design their policies. . 5 Limitations of the study Due to time constraints and lack of prior experience many problems have been faced for making this research. Problems include 1 . Lack of knowledge; 2. Time constraints; 3. Lack of experience; 4. Financial problems; 5. Data may be biased; 6. Information is not sufficient; 7. Limited in specific areas etc. 1. 6 Research Methodology Primary Data Collection: The nature of this research is exploratory and the goal of this research is to explore whether there is any relationship between online shopping and 3 customer satisfaction.
For this reason, a survey was conducted in a specific area of Dacha city to collect primary data by using questionnaire which contains 20 relevant questions regarding online shopping. A simple random process has been used to collect data for this research. A quantitative analysis has been used to analyze the research data. All questions are easy to use, reduce interviewer bias, reduce respondent bias and facilitate coding and tabulation. A Liker scale has been used for the main research questions. Secondary Data Collection: Data from secondary sources have also been collected to complete the research.
Different Journals, books, internet and reports related to online shopping have been used as the important sources of secondary data. Measurement Instrument: The analysis of the data was performed with the help of Statistical Package for Social Sciences (SPAS) version 18. 0. Formulation of Hypotheses: Usually, in quantitative study tests of significance are used to decide whether certain inferences can be drawn regarding any differences or relationships between variables. To do these significant tests SPAS 18. 0 software has been used.
SPAS automatically calculates the significance (or p-value), which is the arability of the null hypothesis (HO), being accepted or rejected. Hence the level of probability of 5% or less is commonly taken as an appropriate level for most general research including this study. As a result, HO accepted if the significance level is greater than 0. 05 (p > 0. 05) HO rejected if the significance level is less than 0. 05 (p < 0. 05). Thus, the hypotheses of this study are: HO: There is no relationship between online shopping and customer satisfaction.
HI : There is a relationship between online shopping and customer satisfaction. 4 Chapter 2: Literature Review 5 2. 1 Literature Review According to Kettle & Keller (2009), a buyer goes through five stages while making a decision to purchase. These stages are best explainable when a buyer goes for buying costly items, such as a house, a car, diamond Jewelry etc. However, in day- to- day purchase, consumers may not go through all these stages, since some commodes do not need information, and based on buyer”s previous experience they will visit a store for the purchase.
These stages are (Figure 2): “problem recognition, information search, evaluation of alternatives, purchase decision, and purchase behavior” (Kettle & Keller 2009). Figure: 2. 1 In addition, many marketing activities (e. G. Relationship marketing, marketing research, data mining, promotion/communications, supply chain management, sales and purchasing and after sales support) are now technology enabled due to the increasing expansion of online marketing via the Internet (O”Connors & Galvan, 2001). Companies are now using the Internet to build closer relationships with consumers and marketing partners.
Besides competing in traditional marketplaces, they now have access to exciting new market spaces. Moreover, through the Internet, consumers can learn about design, order, and pay for products and services, without veer leaving home and then, through the wonders of express delivery, they can receive their purchases in short time. From virtual reality displays that test new products to online virtual stores that sell them, the technology explosion is affecting every aspect of marketing. The Internet has now become a truly global phenomenon (Saurian & Barnes, 2008; Tent et al. 2007). Besides, Awkwardness et al. (2007) in their study considered the purchasing orientation of potential buyers and assessed its impact on purchase behavior, but found that individual orientation is independent of purchasing decision, which reinforces the views of Lie et al. (2008) and Soccer et al. (2005) that every stage of the purchasing decision making cycle may have impact on a potential buyer”s decision to buy online or not. Demanding and Frederick (2007) reported that “information search experiences affect the attitudes towards the site and its brands”.
In the Kook et al. (2008) study, which was conducted on 279 online customers in Korea, it was found that “32. 5 per cent use the internet for news and information, 32. 5 per cent for communication, 7. 5 per cent use it for entertainment while 7. Percent for online shopping”. Furthermore, in consistent with Gay et al. (2007), Yuan and Good (2007), Lee and Line (2005), Raja et al. (2007) , Kit-n and Kit-n (2004) , Ramps and Nielsen (2005) , Lads and Fraternal (2005), Kramer and Kramer (1995), Welch (1995), Earthmen et al. 1998), Johnston (1999), Sings (2004), Smith & Chaffed (2002), and Canaan et al. (2007),: consumer satisfaction and purchase decision on online shopping depends on few more issues. These are: e-store image, delivery and customer services, service quality and purchase behavior, personalization, motivations for online purchase, rust, reliability, privacy, transaction and cost, incentive programs, web-site design, online interactivity, merchandise motivation, assurance, convenience (or Hassle Reduction), pragmatic motivation, responsiveness, consumer risk assessment etc.
E -Commerce E-commerce is the conduct of business via internet which relates to activities of information searching, information sharing, purchasing or exchanging products and services; also maintaining customer relationship without face to face meeting unlike transaction done in traditional way (Kenney, 1999). Often e-commerce is wrongfully received as a way of doing business between web retailers and web end customers but rather commerce encompasses an entire range on conducting online business whether it”s the interaction between business to business, business to customer, and business to government.
Customer Satisfaction Customer satisfaction is when products and services meet the expectation of the consumers (P. Kettle, 2001). It is very important that consumers are content with the products and services provided by the particular website as satisfied customers are likely to be loyal and make repetitive purchases which will increase profitability of hat particular e-commerce company (Rebating, 2002).
In this research, satisfaction which is used in this research will be referred in term of outcome by comparing the prior expectation and the perceived performance for each antecedent factor in order to measure the attitude (satisfaction/pleasing) of the respondents for each of those factors. Purchase Intention According to the model of “The Antifundamentalist View of Attitude” (Lutz, 1981), purchasing intention is the outcome of attitude which refers to the customer”s willingness to buy from a particular e-retailer (McCoy, 2002).
Even though the actual purchase behavior is considerably interesting for the researchers, the purchasing intention is widely used as the representative of the actual purchase behavior especially in consumer behavior researches (Miscarried, 2008) because it is normally not practical or impossible to experimentally study the actual purchase behavior (Rebating, 2002). However, the greater numbers of online retailers do not reveal only the bright side but it also brings about the more intense competition. Therefore, it is imperative to study about the factors leading to success of failure of e-retailers.
Prior Literature of Factors That Impact Customer Satisfaction on Online Purchasing It is imperative to be able to measure customer satisfaction in the context of e- commerce since this will define the success of the vendors (B©longer, 2005). The literature suggests each research is different mainly by the antecedent factors of customer satisfaction since the researchers chose the variables and factors best suit for each circumstance in their perception; thus, the results are varied by time and location. There is no recipe of the antecedent factors used measure satisfaction which will finally leads to purchasing intention.
Christian & France (2005) proves that customers satisfied the most were privacy (Technology factor), Merchandising (Product factor), and convenience (Shopping factor); also followed by trust, delivery, usability, product customization, product quality and security (B©longer, 2005). Surprisingly, security was chosen as the last choice comparing to others. This was assumed that security is perceived as a standard attribute in any websites so other attributes take priority once customers have to choose the site to shop from.
David J. Rebating (2002) has studied about factors attracting customers to the site and factors being able to retain customers by mainly considering the role of price. However, customers tend to shop at other sites unless the vendors provide them good customer service and onetime delivery. Interestingly, e-shopping site using low prices or price promotions to attract customers do mostly tend to draw price- sensitive customers who are well known as having low loyalty (Rebating, 2002).
Factors” motivating the youngsters to shop the commodity product in the cyber-shop examined includes attitudes, demographic, characteristics and purchase decision receptions (Reef, 2004. ). Based on the work of Carven and Todd (1996-97) purchase perceptions or factors influencing online consumer”s purchase decision were grouped into four clusters including: 1 . Product understanding (Product Perception): Price, Product Quality, and Product variety (S. J. Arnold, 1996). 2.
Shopping Experience: Attributes of time, Convenience, and Product availability, Effort, Lifestyle Compatibility and Playfulness or enjoyment of shopping process (Lee, 1995. ). 3. Customer service: Vendor responsiveness, Assurance, and Reliability. 4. Consumer Risk: Economic, Social, Performance, Personal and Privacy risk Carven and Todd (1996-97); park (2001); Simpson & Lanker (1993). Students with experience were more likely to be influenced by Product perception and the Shopping experience more than Customer service and Consumer risk.
This result is consistent with Carven & Todd (1996-97) referring that the sellers should focus on product perception and shopping convenience when building the website. Out of other factors, product perception is considered as the most important among students with higher computer skill levels since they are greatly influenced by price ND quality of products. On the other hand, convenience factor is consistent with the research of Eying and Sean (2002), “Designing Effective cyber store user interface”. Apart from Rodgers et al. 2005), Housemen (2006) has also explained about their investigation of the relationships among Website quality, Customer Value, and Customer that 8 in defining the sub-attributes of each main factor, Web-customer satisfaction can be classified into two distinctive attributes which are Web information quality (Q) referred as “the customers” perception in quality of information presented on a Bessie” and Web system quality (SQ) referred as “the customers” perception of website”s performance in information retrieval and delivery’ (Housemen, 2006).
For customer value side, Quality, Cost-based value, and Performance outcomes are included (Oliver, 1999). In the work of Rodgers, et. Al. (2005), based on the vastly cited works of Delano and McLean (1992) and Pit et al. (1995), there exists the distinctive separation of the antecedent factors into Information quality, System quality, and Service quality (W. Rodgers, 2005). Information quality represents the aspect of quality of information revived on weapon such as timeliness, currency and entertainment of the information.
System quality represents to the engineering performance such as Access and Interactivity. Service quality, often cited by many researchers, represents quality of service provided by the vendors such as Tangibility, Reliability, Responsibility, Assurance, and Empathy.