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“Customers Perception Towards the Quality of E-Services in Online shopping”
Mrs. SEEMA SAHAI
VINEET KAUSHIK MBA-IB (2010-2012) ROLL NO. - A1802010359
AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY – UTTAR PRADESH
I express my sincere gratitude to my mentor Mrs. Seema Sahai, Amity International Business School for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.
She provided me with her continued guidance and invaluable encouragement for which I am extremely grateful.
CERTIFICATE OF ORIGIN
This is to certify that Mr. Vineet Kauhsik, a student of Post Graduate Degree in MBA-International Business, Amity International Business School, Noida has worked on the project “Customers Perception Towards the Quality of EServices in Online shopping” under the able guidance and supervision of Mrs. Seema Sahai, Amity University. The period for which he was on training was for 14 weeks. This Dissertation report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.
_______________ (Mrs. Seema Sahai)
_______________ (Vineet Kaushik)
TABLE OF CONTENT
CHAPTER NO. 1 2 3 4 5 6 7 8 INTRODUCTION LITERATURE REVIEW INDUSTRY PROFILE RESEARCH METHODOLOGY FINDINGS & ANALYSIS CONCLUSION & RECOMMENDATION BIBLIOGRAPHY ANNEXURE-QUESTIONNAIRE 5 9 14 25 28 37 40 42 PARTICULARS PAGE NO.
CH-1 INTRODUCTION 5 .
such as those for the convenience and time utility. hit rate. (2) e-service quality differences. the competitors have utilized three primary strategies: (1) geographic differentiations. can also been shrunk by this geographical irrelevance. The e-service quality can not only potentially increase the attractiveness. so that customers can become well informed of the optimal prices when seeking products or services. and delivering of products and services”. the e-service quality differentiation has become the most important thing for attracting and retaining customers in the online shopping. the e-service quality was defined as “the extent to which a website facilitates efficient and effective shopping. purchasing. thereby reducing the price of their products and services in order to stay ahead in highly competitive markets. e-service quality presented the definition of the e-service quality. reliability. the online shopping environment provides vast selection. Moreover. and has rapidly evolved into a global phenomenon. Companies also use the Internet to convey. but also maximize the online competitive advantages of the e-commerce.e. the eservice quality has become one of the key determinants of the success for online retailers. and positive word-of-mouth. In order to offset the price-transparency disadvantage. information screening. and product comparison. i. Therefore it is obvious that more attentions should be paid on the e-service quality . Thus. Therefore. the competition among online retailers has become fiercer and fiercer. to take feedback and also to conduct satisfaction surveys with customers. Many companies have started using the Internet with the aim of cutting marketing costs. to sell the product. more and more businesses are attempting to gain competitive advantages by using the e-commerce to interact with customers. In their terms. For example.Moreover. Consequently. communicate and disseminate information.Introduction: With the rapid global development of the electronic commerce (e-commerce). The growth of the online shopping has reduced the role of the physical geography for many consumers. and (3) modest levers of switching costs. Internet is changing the way consumers shop and buys goods and services. and some implicit costs. more and more online companies publish the features and prices of their products in the advertising campaigns. 6 . businesses with the experience and success using the e-commerce are becoming to more and more realize that the key determinants of the success or failure are not only the website presence and low price but also include the electronic service quality. customer retention. which enable that consumers reduce the decision-making efforts.
The e-commerce allows both customers and suppliers to reduce the transaction costs significantly and enables information to reach more people without sacrificing the richness of the contents. In India. selling. just as the telephone. products and services. Internet technology development covering expanded bandwidth.2%) of a total 1. Actually. In 1994 other advances took place. and hence. In 1995 Amazon launched its online shopping site. Currently. It opened for commercial use in 1991. Also in 1994 the German company Intershop introduced its first online shopping system. or exchanging products. and in 1996 eBay appeared. the e-commerce has become a part of our daily lives.2% of the world has access to the internet. as we have then known today. In addition the e-commerce improves the communications among partners along a value chain and offers an integrated business model by which companies can be more responsive and flexible to the changing markets and customers‟ requirements. operations.E-commerce – HistoryIn 1990 Tim Berners-Lee created the first World Wide Web server and browser. services and information via computer networks.” The e-commerce. According to Turban “the E-commerce is an emerging concept that describes the process of buying. only about 60 million (or 5. Reduced Internet surfing charges. is completely revolutionizing business institutions. Netscape introduced SSL encryption of data transferred online. And since then online shopping is defining itself in new and innovative forms so as to make our lives full of ease and comfort. television. and increased speeds & reliability could make e-commerce available to a large pool of emerging market consumers. fax and email have changed the way in which businesses and consumers communicate with each other. the internet penetration rate is now at 29% as of June 2010. The companies that are able to gain significant traction first in emerging markets will be at great advantage to competitors. and it is difficult to imagine an organization without any forms of e-commerce applications E-commerce DriversInternet PenetrationGlobal Internet penetration rates have an enormous impact on e-commerce growth rates. such as online banking and the opening of an online pizza shop by Pizza Hut. including the Internet. which has become essential for secure online shopping. the e-commerce is perceived as one of the most important applications of the computer and communication technologies.2 billion person population currently have access to the internet. e-commerce. During that same year. more than 30. In China. With the Internet users increasing and the network technologies rapid developing. via the Internet. 7 .
Differentiation vs. Those pure play e-tailers that develop and deploy the most unique web technologies to enhance consumer experiences and keep prices competitive will be in the best position to ward off the click-and-mortar convoy. Target. and Best Buy are pressing harder to gain market share online. and convenient interfaces--but that position is becoming less and less unique. pure e-commerce players. The inroads the click-and-mortar retailers have been making is evident in recent come data. Click-and-MortarsMany e-commerce websites have established their leadership positions through low prices. such as Wal-Mart. 8 . which shows the unique user traffic at the aforementioned sites increasing at greater year-over-year rates vs. high customer satisfaction. The largest retailers.
CH-2 Literature Review 9 .
(2) aesthetic design. the searches of information. The online shopping environment enables consumers to reduce their decision-making efforts by providing vast selection. "There's big business in on-line retailing and it's still untapped in India. That is why some consumer-purchases are mainly on the basis of the cyberspace appearance such as pictures. MD. Vishal Retail is also looking at internet shopping. Yoo and Donthu (2001 ) developed a measurement instrument for measuring an online shopping site condition. Many studies have investigated the online shopping attributes. reliability. offers and promotions and so on. which can be divided into various sub-processes. quality information. Lim and Dubinsky (2004) classified the attributes of online shopping into six categories.Literatures ReviewThis chapter consists of theories relevant to the research area. (3) processing speed. Subhiksha. Says R Subramanian."Other than shopping the website will be designed to provide buyers with information such as new store opening. Jarvenpaa and Todd (1997) described that the merchandising included product-related characteristics such as the assortment. and product information. variety. The security of online transactions continued to dominate the discussions on the electronic commerce. and can click on the items he/she wants to buy. continuous. 2008. We'll deliver across 400 towns we are present in. and (4) security." The challenges in replicating the success of physical stores online are very different. Customers wanted the careful. The navigation and convenience were related to the user interface of an online shopping. images. the navigations. For example. useful communications and the access of geographic barriers. With the development of Internet and web-based technologies. However. e. Says its CEO Pushpamitra Das. and have already appointed a person to head the new venture. confirms its MD Ramesh Chandra Agarwal. Some are planning to introduce virtual shopping . and retailers are eyeing a different set of value adds and experience to hook customers. which included four dimensions: (1) ease of use. online customers are gradually obtaining unlimited accesses to the information which they require and are enjoying a wider range of choices in selecting products and services with highly competitive prices. and the customer interactions. where the customer can get a feel of moving around in a mall. We're planning a 10 . TNN May 26. 2005.). information screening. Importantly .” (Lee and Lin.g. "We plan to launch our online shopping portal in the next 4-5 months. instead of the actual experience. the online transactions. Subhiksha and Spinach too are seriously looking at e-tailing as a future revenue generator. “Online shopping is a complex process. "We are investing Rs 12 crore into this venture and expect 3-4 % of total business coming from online. According to the article published in Economic Times “Online shopping is the next big thing” by Sachin Dave & Monica Behura. SITEQUAL. smaller players such as Vishal Retail. and video clips of the product. and product comparison. Mumbai-based Spinach is among those looking at virtual shopping.
. one can research variety of products available and can easily compare prices from different vendors anywhere in the world. and the consistency of service delivery.000 cr by 2015” The market size of online retail industry in India is likely to touch Rs 7.000 crore by 2015 due to increasing internet penetration across the country. While such hurdles as limited broadband access and security concerns remain.Out of the 5. Vishal Retail's Agarwal admits this will be a very different ball game compared to physical store operations: "Success in this medium will depend on the facilities and value that one can provide to customers.2011 “Online retail industry to reach Rs 7. Among big cities. consumers in Mumbai topped the chart in doing online shopping followed by Ahmedabad and Delhi." it said." While in an another report published by ASSOCHAM in july. Whether Indian retailers can make a similar success in the virtual world is anybody's guess.." states the report. August 16. According to an AT Kearney report credit card transaction value in organised retail has been is growing at 35% in India. while 42 percent of the sales originate through just five percent of consumers.000 crore and is growing at an annual rate of 35 per cent. the online retail market stands at Rs 2. Globally online shopping has become crucial to the organised retail business. Report Finds Heavy Spenders Driving Sales” By Devin Comiskey.virtual shopping experience which will be launched very soon."Besides. "This section of buyers spends 5.000 shoppers participated in the survey.000 users. UKbased Tesco earns $1. Juxtconsult's survey found that 40 percent of all urban Internet users buy online.Leading companies have gauged the potential of online retail industry and are gearing up fast to cash in. "India is set to become the third largest nation of internet users in the next two years. While current trends point to increased e-commerce growth in India." it said. For instance." Online retail is also expected to benefit the credit cards business. 2008 A Survey by Indian research organization Juxtconsult found that more and more Indian Internet users are opening their wallets online. industry chamber Assocham said. "It is interesting to note that two out of every three heavy spenders are also 'netholics.000 rupees or more per month on the net.' those who are 11 .2 billion from its online business. the online marketplace in the country of more than 1 billion people is still relatively small. “Indian E-Comm. The survey was conducted in April 2008and sampled more than 30. a survey today said. the report finds there are currently more than 10 million shoppers online in India.Currently. retail has been instrumental in boosting average consumer spending per card at stores. about 40 per cent said they prefer to shop online considering convenience to shop anytime and one can collect detailed product information. According to credit card companies.
and prices more efficiently and effectively in the online shopping than the conventional shopping (Grewal et al. and an online survey of 1013 panel members: web site design. availability. Moreover. Later on. the online shopping offers a high level of conveniences for those whose time costs are perceived to be too high to invest in the conventional shopping. Thirdly. 12 . products and brands. reliability. His initial research in the area indicated that there were eleven dimensions of the e-service quality. privacy/security. through group-focused interviews.. According to Gwo-Guang Lee. access." (1.000 rupees per month while the (remaining) 75 percent bill less than 1." it says. consumers can efficiently obtain the critical knowledge about firms.. and trust affect overall service quality and customer satisfaction. women are more guarded when it comes to the online market.000 Indian rupees is currently equal to approximately $23 US. Wolfinbarger and Gilly (2002) uncovered four factors of online retailing experiences. and customer service (This factor was primarily related to the customer-to-employee interactions). ease of use. security. responsiveness. 2004). fulfilment. nine percent to 25 percent are buying online. which were the same as those proposed by Zeithaml et al.Of all those who buy online. Secondly. consumers can browse the entire product-assortment with the minimal effort. whereas 33 to 47 percent are searching the net for product information.000 rupees per month. Finally. the online shopping provides a level of anonymity when shopping for certain sensitive products." says Juxtconsult. reliability and privacy.. Hsiu-Fen Lin. inconvenience and time investment (Monsuwe. too. consumers can easily compare product features. only 31 percent of urban female users are consumers as well.2004).on the net for more than three hours per day. Women tend to search more. a content analysis. reliability.) The report also found that buying and search patterns among Indians differ between genders. Parasuraman (2002) examined the issue of the e-service quality. Firstly. Defying their more common attitude towards shopping. with the online shopping. and credibility. personalization. et al. only 25 percent are spending more than 1. and thereby increase their competency in making sound decisions while shopping (Ibid). The online shopping fulfills several consumer needs more effectively and efficiently than the conventional shopping (Grewaletal&Monsuwe. (2000). the latter in turn are significantly related to customer purchase intentions. Yang and Jun (2002) surveyed 271 ISP (Internet service provider) subscribers and uncovered six dimensions of the online retailing service quality: reliability. 2002). However. Fourthly. based on a sample of 540 Internet users. Then. Parasuraman (2002) concluded that there were four key dimensions: efficiency. "While 43 percent of male users buy online.. the personalization dimension is not significantly related to overall service quality and customer satisfaction. (2005) the research conducted by him showed that the dimensions of web site design. "Depending on the product type.
entertainment. constituting 6.000. Internet is constantly changing the way consumers shop and businesses sell their products. 26% are post-graduate.173. But. Let‟s see some interesting Statistics about Internet usage and penetration in India (2010): 1. because pricing are lowering down in comparison to 2008 prices. products.2010). Statistics about Internet usage considering Age Group and Gender : 2/3rd households have „multiple‟ users in them 97% are regular users and 79% use daily 70% of people who know computer have used Internet 19-40 years age group constitutes nearly 85% among Internet users 85% of Internet users are male 46% of net users are graduate. Internet usage figures are increasing nowadays. services. If we want to have cyber revolution in our country. the number of broadband subscribers was only 5. these are on higher side in comparison to other countries. The rise of Internet usage all over the world unlocked various new businesses. government has to use own network and satellites to strengthen the Internet infrastructure . If cost reduces the penetration will increase automatically.000(88 million) active Internet users in 2010 Total of 6. Our neighboring countries including China. Every business related to any niche knows the importance of Internet and creating a website to show their products to potential consumers. In December 2008.“Internet Usage Statistics Of India – A 2010 Report” Internet is emerging at a rapid pace and it‟s already been a part in the field of busines s.0% of the population.108. South Korea and Japan are far ahead of India.52 million broadband users (till Oct. economy. 13 . But still in India – a country of billion people has lot to do in the area of Internet usage to catch up with the global pace.9 persons using Internet out of 100) India has 10.1 billion) population and 88.9% penetration rate (6. then only the cost goes lower. social groups all over the globe.018 (1.52 million that was far short of target set by broadband policy in 2008. Still.
CH-3 INDUSTRY PROFILE 14 .
online shops have no holidays. When a business buys from another business it is called business-to-business (B2B) online shopping. online shopping offers more convenience and save time in comparison with real world shopping. You can shop 24hrs a day. If you are lucky you will be also getting amazing offers from different online stores that will effectively reduce the price than buying offline. income. increased exposure to technology increases the probability of developing favorable attitudes towards new shopping channels.What is Online Shopping? Online shopping is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. you need not have to worry about weather conditions as well. Another big advantage of online shopping is the flexibility of shopping. webstore. feel or sense it with different means. The worry you may have on travelling. thus you can easily find out what other customers think about the product or services before buying it. When you go for real world shopping. With online shopping. Since so many companies have come up with the facilities of online shopping. You can efficiently use these facilities to decide wheather a product or service is worth the price quoted. Some online malls also provide customer reviews about each product. In short . In a December 2011 study Equation Research found that 87% of tablet users made an online transaction with their tablet device during the early holiday shopping season. 7 days a week and 365 days a year. traffic blocks and parking constraints in real world shopping can be avoided while shopping online. An online shop. and occupation of the head of the household correspond to more favorable perceptions of non-store shopping. Internet shop. ONLINE SHOPPING ADVANTAGESThe major advantage of online shopping is the convenience it offers. eshop. The process is called business-to-consumer (B2C) online shopping. but for online shopping you can only view the electronic catalogues. Seeing the picture of a product is far inferior to that of seeing it in real world. e-store. By sitting back at home you can now shop anything from candles to vehicles by several clicks of mouse buttons. you can actually touch. Unlike offline shops. Is n't that amazing to have a shop open always? One of the advantage of online shopping is the facilities available for product. higher levels of education. online store. closing times or any other problems. or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre. Also.In general. ONLINE SHOPPING DISADVANTAGESOne of the important disadvantages of online shopping is lack of personal interaction. Eventhough this problems has been rectified to certain extent by use 15 . Another disadvantage of online shopping is tangibility factor. Online customers must have access to a computer and a method of payment. webshop. price comparisons. the price comparison and quality comparison of the products and services are possible.
In some countries this remains a popular option with internet-based retailers. subject to interest being charged. though some pizza restaurants require a credit card number before they will send a delivery. However. A credit card is different from a charge card: a charge card requires the balance to be paid in full each month. Debit cards are accepted by merchants with less identification and scrutiny than personal checks. 17 . since it is far easier to set up for small businesses and does not require the purchaser to have a credit card. credit cards allow the consumers a continuing balance of debt. Check cards debit funds from the user's account on the spot. While a A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. or to write an insecure check containing the account holder's personal information. this is particularly common with the ordering of food. But it helps to establish the credibility of online retailer as the consumer pays only after taking delivery of ordered item. Even with this. the word "cash" was replaced with the word "collect" to incorporate transactions with checks. due to fraud and prank callers. In contrast. COD has become much less common now. while most relay a message to the cardholder's bank to withdraw funds from a designated account in favor of the payee's designated bank account. thereby finalizing the transaction at the time of purchase. it remains a standard method of payment for ordering products and services produced quickly and near the point of delivery. thereby making transactions quicker and less intrusive. allowing him/her to make plastic transactions. as other forms of payment became more common. Some cards have a stored value with which a payment is made. credit cards or debit cards. and most companies will not ship this way.This type of transaction is better known as cash on delivery. and it is the standard model for pizza delivery services. Advantages A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card. and bypassing the requirement to pay a credit card bill at a later date. Debit Cards/Credit Cards A debit card (also known as a bank card or check card) is a plastic card that provides the cardholder electronic access to his or her bank account(s) at a financial institution.
The term perception pertains to the consumers‟ beliefs concerning the received or experienced service. Florida. Wire transfer systems are intended to provide more individualized transactions than bulk payment systems. GIFT CARDA gift card is a restricted monetary equivalent or scrip that is issued by retailers or banks to be used as an alternative to a non-monetary gift. in itself. As the service becomes more and more important and the competition becomes fiercer and fiercer in an industry. According to Parasuraman. Service Quality The worldwide trend toward the service quality was first initiated in the 1880s when businesses realized that the quality product. Therefore. It is believed that the perceived service quality contributes to positive business outcomes. In the beginning. Debit cards offer lower levels of security protection than credit cards. the Blockbuster giftcard was to replace gift certificates that were being counterfeited with recently introduced color copiers and color printers. Gift cards have become increasingly popular as they relieve the donor of selecting a specific gift. most banks allow a certain threshold over the available bank balance which can cause overdraftfees if the user's transaction does not reflect available balance. The first gift card using a payments infrastructure was introduced by Blockbuster Entertainment in the fall of 1994 in Ft. The term “quality” is widely used as a measure of excellences. the potential customer will be reduced by the poor service.Disadvantages Many banks are now charging over-limit fees or non-sufficient funds fees based upon pre-authorizations. Under this system a customer can pay the retailer immediately through logging into his/her bank account and can pay the billed amount by making a transaction online. they rank as the second-most given gift by consumers in the United States (2006) and the most-wanted gift by women. Lauderdale. Highly popular. He may have to provide information to make transaction successful. both consumers and managers should pay special attentions to the service quality. Use of a debit card is not usually limited to the existing funds in the account to which it is linked. and the thirdmost wanted by males. Service quality can be defined as “the comparison between customers‟ expectations and perceptions of services”. such as 18 . The market research has already shown that customers who are dissatisfied with a service will tell their experiences to more than three other people. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office. was not guaranteed to maintain a competitive advantage. WIRE TRANSFERWire transfer or credit transfer is a method of electronic funds transfer from one person or institution (entity) to another. and even attempted but refused transactions by the merchant.
On the contrary. the online transactions. They also want choices. “The online shopping is a complex process. For online consumers. the e-service market creates opportunities for providing value-added services offered by different companies. Consumers‟ attitudes toward Internet shopping depend on the direct 19 . online retailers fail primarily due to the poor quality services.greater levels of customer satisfactions. customers are unlikely to evaluate each sub-process in detail during a single visit to a store. As a consequence. intention to purchase and purchase are affected by the e-service quality. and the customer interactions. and by extension. (3) the satisfaction. friendly and high quality services. revenues from the online retailing continue growing too. E-service Quality – The Internet is fast becoming an important new channel for businesses in many sectors. which raises e-services as the emergent business paradigm in the industrialized work. Nowadays. the searches of information. it has become a popular marketing channel. the influence of the Internet on creating e-services has been revolutionary for both providers and their customers. Online customers expect fast. Secondly. which are rendered to their customers. More and more sophisticated online customers would rather pay a higher price to eretailers who provide high quality e-services. the navigations. E-service Quality in Online Shopping As the Internet has been spreading. the most experienced and successful e-commerce companies are beginning to realize that the key determinants of successes or failures are not merely the web presence or low price but also the delivering of the high e-service quality.g. now have more delivery channel options for competing. Firstly. The e-service quality is one of the key determinants of the success of online retailers . Moreover. According to Zeithaml (2002). they can offer many new services more economically with both greater geographic reaches and product varieties. such as repurchases and positive word-of-mouth behaviors. all providers of services. conveniences and responsive services with a personal touch . Although the exploration of the e-service quality “is in its early stages” and studies do not fully concur about the dimensions and statements explored.” The total population shopping online in 2002 is 66 million and this figure is expected to double by 2007. According to Boyer. the following points can be identified: (1) multiple factors influence the e-service quality instead of only a single factor. favorable marketing behaviors. e. It is particularly interesting for academics and practitioners. Obviously. the e-service quality of a high standard is the means by which the potential benefits of the Internet are. they will perceive the services as an overall process and outcome. especially those in the field of the e-commerce to analyze customer evaluations in the online shopping . The recent research shows that the price and promotion are no longer the main drawbacks for customers to make a decision on a purchase. which can be divided into various sub-processes. and (4) the perceptions of the e-service quality are related to the technology readiness and the customer-specific construction. a unique opportunity was provided by e-services for businesses to offer new models for service design strategies and new service developments. whether they are traditional „brick-and-mortar‟ or pure Internet players. Moreover.
and Responsiveness SERVQUAL has its detractors and is considered overly complex. On the basis of their research they concluded that factors like efficiency. access. responsiveness. communication. fulfilment.effects of relevant online shopping features. By the early nineties the authors had refined the model to the useful acronym RATER: Reliability Assurance Tangibles Empathy. It measures the gap between customer expectations and experience. competence. played a very significant role in bringing the customers to the website and stimulating the ultimate goal of making them shop online. or their perceptions of emotional and hedonic dimensions like “enjoyment” Dimensions of Electronic Service QualityThere are many important factors to count upon to make a web service a success but the prominent being the following : Web Design Reliability Responsiveness Trust Personalization Many researchers examined the issue of the e-service quality. THE SERVQUAL MODEL SERVQUAL was originally measured on 10 aspects of service quality: reliability. understanding the customer and tangibles. courtesy. The features of online shopping can be either consumer‟s perceptions of functional and utilitarian dimensions. such as“ease of use” and “usefulness”. subjective and statistically unreliable. security. The simplified RATER model however is a simple and useful model for qualitatively 20 . credibility. reliability and privacy etc.
The different areas of web design include. It is an efficient model in helping an organization shape up their efforts in bridging the gap between perceived and expected service. Write a solid 30 word description of your website and what you sell. To optimize you site you should remember a few key points: Research relevant keywords – Find keywords that have high KEI and low competition. The new wave affiliate marketing and other home online businesses that have started becoming popular. Website descriptions – When searching for websites a blurb will appear about that particular site. Internet is by far the cheapest medium to promote your product globally in order to grow your business and it stays as the best form of marketing now and in future. Gone are the days when traditional business used to be the only option to earn money and esteem. Web design holds much importance for the online business because a good design on website can drag maximum flow of web traffic to your website. you should see engine ranking boosts resulting in more traffic to your website and ultimately increased sales. Even the traditional business owners are helpless but not to bring their business online and present their products to the millions of visitors and potential buyers. Design of the website should be appealing to the visitor and special care is given to the color selection. font. More traffic means more business and more business means more potential for growth and earning this is why web design holds key value to every individual or business who wants to be recognized on the portal of internet. languages and requirements of designing. Why we need web designing? Internet has entered the lives of billions of people dwelling on this planet Earth. you must optimize your website. interface design. This can help attract 21 .exploring and assessing customers' service experiences and has been used widely by service delivery organizations. Web design Web design is a broad term covering many different skills and disciplines that are used in the production and maintenance of websites. over all shapes and forms used throughout the web pages. Web design is no more different than any other design but in order to build a web design you need to know a few web building tools. This not only has saved them time but cost of traveling and expenditure. including standardised code and proprietary software. In order to be found through search engines. When done well. It has become a necessity and many big or small companies and enterprises are dependant upon the information technology for successful business and growth. By finding niche keywords you can dominate that area and quickly gain website traffic. web graphic design. authoring. In this research this model is being studied on the above stated dimensions of E-service Quality. user experience design and search engine optimisation.
They key is to convey your message. in order to simultaneously achieve high levels of the consumers‟ perceived e-service quality and satisfaction. The reliability of the information provided on the website is operationalized as accurate. The importance of the reliability has been emphasized by the information technology-based service. Image descriptions – When placing images in your website make sure to give each a name. image optimization and CSS media queries. The theory behind responsive design involves the utilization of several grid and layout systems. and they expect to be billed accurately. By naming your images you can increase site ranking for image keyword prominence. Consequently. accurate records. deliver products promptly. Online consumers apparently want to receive the right quality and right quantity of items that they have ordered within the time frame promised by the online retailers. Accurate websites provide visitors with the information that is considered as useful and reliable. Reliability – Reliability represents the ability of a website to fulfill orders correctly. In an e-commerce context. therefore. Accordingly. responsive websites will always be able to provide a proper response. online service providers must deliver the promised services accurately and within the promised time frame.customers to click on your listing. The “reliability” factors comprise four items: accurate online transactions. correct performances. The dimension of the reliability has a direct positive effect on the perceived e-service quality and the customer satisfaction. According to Zeithaml “the reliability is the most important determinant of the perceived e-service quality” Responsiveness The concept of responsive web design makes reference to the process of designing and developing websites that are able to react to user’s actions and detect the medium where the site is currently being watched in order to provide the best experience possible to the user in terms of navigability and readability. online retailers should particularly focus on the dimension of the reliability. These names are used for the blind when surfing web pages. Great website design allows you to connect with your customers without you realizing this connection. and keep personal information secure. to be considered as reliable. the reliability often refers to a functional quality dimension and at the same time to the reliability of the information content provided on the website. no matter how many devices are released on the future. 22 . products. However. and fulfillments of promises. and services in a way that emulates an in-store experience. and most likely to occur effectively when the information is provided in an attractive manner. make sure the name is relevant to the image.
In order to match services with the individual customer. usually customers are asked to fill in questionnaires by conducting interviews. promise fulfillment. Kimery and McCard (2002) defined the trust as the customer willingness to accept the vulnerability of an online transaction based on their positive expectations regarding future online store behaviors. Therefore. and the availabilities of a message area for commenting customer questions. Trust is a significant antecedent of participations in commerce generally. personalization constitutes also one of the factors in determining the customers‟ perceived eservice quality. the personalization gives each customer a unique experience.can get in touch with you in order to remove personal information you hold on them. Trust is at the center of the e-commerce with much academic discourse surrounding the security. The lack of the trust in the online transactions has been identified by the e-retailers as one of the major obstacles in the adoption of online shopping in a large number of discussions. 24 . According to Huang and Lin (2005). If a user requests their account be deleted. the personal thanks which customers note from online stores. you must do so. and confidence. the personalization has the potential to completely revolutionize the ways in which a web-based business markets its products and maintains its customers‟ relationships . Thus. customers‟ behaviors are observed online through the use of a cookie. and especially in online settings because of the increased ease with which online shopping can behave opportunistically. The heart of the personalization is to satisfy the individual customer‟s unique needs. the shopping on the Internet provides a challenge to many consumers.The trust is a mutual issue since buyers need to have trust in sellers in terms of the e-service quality as well as the confidentiality of data. Since this shopping medium is relatively new and most of people have only little experiences with it. or customers‟ earlier purchase behaviors are analyzed. Personalization Personalization involves the individual attentions.
CH-4 Research Methodology 25 .
Research purposes can be classified in various ways. There are three principal ways of conducting exploratory researches: (1) Searching of the literatures. sorting it out and interpreting it. the purpose in this thesis is descriptive. The descriptive research aims to portray an accurate profile of persons and evens of situations. our purpose is also exploratory since our purpose is to gain a better understanding of the dimensions that affect the customer perceived e-service quality in online shopping. A widely used method identifies them broadly as: 1) Exploratory 2) Descriptive Exploratory studies are the valuable means to find out what is happening. seek new insights. The descriptive research is often used when a problem is well structured. participation in field work when required. The objective of explanatory research is to analyze the cause-effect relationship. To know how the web design affects the perceived e-service quality To know how reliability and trust affects the perceived e-service quality 26 . (2) Talking to experts in the subject (3) Conducting group-focused interviews. the descriptive data will be collected and analyzed through detailed interviews. ask questions and assess phenomena in a new light. Purpose of Research The research purpose is to state what should be accomplished by conducting research and how the results from the research can be used. in the use of statistics.REASEARCH METHDOLOGY The study of research methodology gives the student the necessary training in gathering material. Objectives of StudyThe basic objective of this research study is to investigate the perception of online customers towards the Quality of E-Services provided in Online shopping. questionnaires and controlled experimentation and in recording evidences. since little research has been done and we need to gain more insight into this area. The purpose of an exploratory research is to gather as much information as possible about a specific subject. and also training in techniques for the collection of data appropriate to particular problem. and explain which cause produces which effect. On the other hand. Thus. On one hand.
e. Limitations This project is completed in seven weeks. Descriptive research answers the questions who. Sampling error may exist 27 . what. To know factors which reduce the purchase Decision Process Which factors shape the consumer‟s attitude towards online shopping Sample DesignThe sample selection in this thesis is based on the judgmental sampling. Descriptive research. describes data and characteristics about the population or phenomenon being studied. Duration of the study is very small for in-depth study on this topic. which is actually a non-probability sampling. The project will be beneficial to the websites or web players in various fields and can carry out future projects keeping these factors in mind. where. Since the data is not evenly collected from the mass region hence there is a chance of biasness. It is made with the consideration of the purpose. also known as statistical research. The project will help in making web services better and gain more web traffic to their website. i. Research DesignDescriptive Research design has been used in this project. when and how. Scope of StudyThe project will provide extensive knowledge about the Customers Perception towards the Quality of E-Services in Online shopping. to gain a better understanding of the dimensions that affect the customer perceived e-service quality in online shopping. so due to time constraints it was not possible to cover all the area of Delhi and NCR region and mainly Delhi area was covered.
CH-5 ANALYSIS & FINDINGS 28 .
How often do you use internet for shopping 29 .RESULTS Do you use Internet for Shopping Internet Users Internet Users 115 22 Yes No With the help of the above graph we can easily see that Majority of people are switching to Internet shopping for their small or big demand.
Usage Pattern Usage Pattern 51 37 22 5 Always Mostly Rarely Never With the help of the above graph we can easily see that Today internet users and shoppers both are increasing. People are quite often using the service because of ease and comfort and discounts. People might do go on websites for checking out prices or reviews and may also buy from the web. Over all where you satisfied with your experience of online shopping 30 .
Do you think the following factors affect your buying decision 31 .Satisfaction Level Dissatisfied 8% Highly dissatisfied 3% Neutral 13% Highly satisfied 19% Satisfied 57% Out of 137 respondents many of them said that The shopping experience was satisfactory Few where highly satisfied. majority being satisfied and few neutral.
Does Factors affect or not Yes No 26% 74% With the help of the above graph we can easily see that Factors like Reliability. A good website definitely attracts customers towards itself. Trust. Webdesign etc. A good website may tend to attract and convert potentials to buyers. which are being studied in this research do affect buying decision. Does the design of the website you shop enhance your shopping experience 32 .
makes customer fell confident and enhance their service experience.60 50 40 30 20 10 0 Highly Slightly Not at all With the help of the above graph we can easily see that website design . Reliability No 10% Yes 90% 33 . fonts. Did you found the information provided to you on the website reliable and true Info. layouts etc.
where you handled immediately by the support staff in any way Responsiveness Not at all Lately Responsiveness Immediately 0 10 20 30 40 50 60 70 Out of 137 respondents of the survey Many said that when they faced problem the web support responded lately. What is the main purpose behind shopping online 34 .With the help of the above graph we can easily see that Today the trend has changed significantly in shopping And the information provided is real and genuine. In case of a problem faced by you. Many websites also provide immediate response but to enhance the service quality the support is to be increased and make quick.
Returns) With the help of the above graph we can easily see that People use internet shopping for tool of buying as gives them ease and comfort. What do you think about privacy of your details and payments 35 .Purpose to go Online 39 46 19 11 Ease & Comfort Discounts Information & reviews of products Add-on features and comforts (eg. COD. It also gives more discounts to customers People also got to have product reviews and Info.
36 .Relaibility 50 45 40 35 30 25 20 15 10 5 0 Very Reliable Reliable Less Reliable Not at all Relaibility With the help of the above graph we can easily see that people are now a days relaxed for shopping online as web payments are being made more secured and reliable. Information is not passed on or shared by the wenowners.
CH-6 CONCLUSION & RECOMMENDATIONS 37 .
suitable linkage/choice. The finding in this study indicates that personalization is one of the crucial dimensions of the e-service quality in online shopping. the arrangement for online guarantees and the quick response to requests are also significant factors of the responsiveness that can also affect the perceived e-service quality in online shopping. Besides. delivering the products following the schedule. This study indicates that reliability is an influential dimension of the e-service quality in online shopping too.g. Responsiveness is a meaningful dimension affecting the perceived e-service quality in online shopping. network connection etc. it is found that the responsiveness influences the perceived e-service quality in online shopping through several factors. The results which came out are Website design is an important dimension of the e-service quality in online shopping. satisfying the individual customer‟s unique needs is the important factors affecting the perceived e-service quality in online shopping. the suitable/special content. In the personalization. In order to fulfill the purpose.CONCLUSION The purpose of this research was to gain a better understanding of the dimensions that affect the customer perceived e-service quality in online shopping. 38 . One of the important factors is to provide the appropriate service / information to customers when a problem occurs. research questionnaire was designed. the navigation speed. There are lots of important factors of the website design that can affect the perceived e-service quality in online shopping: e. Reliability can affect the perceived e-service quality in online shopping through providing the accurate information. fulfilling the orders correctly. After this study. and keeping the personal information secure.
If possible aftersales follow-ups can be carried out. Internet shopping is on boom and internet clients are increasing. Rather immediate and quick response and feedback should be there. Payment security and trust needs to be kept for building healthy relations.RECOMMENDATIONS After going through the conclusions of this study following are the recommendations to the Online Retail Industry and Web developers. according to a report. should not be overseen. suggestions etc. Shopping experience should be given a priority and needs to needs enhanced on continuous basis as and when reqd. The queries of clients. So a huge untapped market is to be served. India will see its number of internet users triple to 237 mn from the current 81 mn by 2015. 39 .
CH-7 BIBLIOGRAPHY 40 .
com/2011/01/india-internet-broadband-users-gender-age-statistics-2010/ www.wikipedia.uk/sqpap.K. McGraw-Hill International Boyer.com/the-importance-of-trust/ http://en. and Roth.com/article.A.K.economictimes.google.co.php/136874/205/Web_Design/Internet/36/Importance_of_ Web_Design_in_the_New_Age_of_Information_Technology http://www.goospoos.wikipedia.articlesalley.R. ”E-service: operating strategy” 41 . Hallowell. Concepts and Consequences.com/2010-09-02/news/27624281_1_internet-users-bricidigital-consumers-brici-countries http://www.WEB SOURCES.detail.indiatimes.com www.communityspark. E-commerce: Context.. http://en.htm BOOKS.marketing-online.org/wiki/E-Services http://www.V.org/wiki/Online_shopping http://articles.
CH-8 ANNEXURE 42 .
b. d.QUESTIONNAIRE Name: _____________________________ Age: ________ Occupation: ____________________ Place: _________ Q1) Do you use Internet for Shopping ? a. Yes b. No Q2) How often do you use internet for shopping ? a. b. No Q5) Does the design of the website you shop enhance your shopping experience ? a. d. e. Yes b. c. Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Q4) Do you think the following factors affect your buying decision:-Web design a. Highly 43 -Reliability -Responsiveness -Trust -Personalization . c. Always Mostly Rarely Never Q3) Over all where you satisfied with your experience of online shopping ? a.
where you handled immediately by the support staff in any way ? a. Ease & Comfort Discounts Information & reviews of products Add-on features and comforts (eg. d. Very Reliable b. Reliable c. Less Reliable d. Not at all Q6) Did you found the information provided to you on the website reliable and true ? a. COD. Slightly c. Returns) Q9) What do you think about privacy of your details and payments ? a. No Q7) In case of a problem faced by you.b. Not at all Q8) What is the main purpose behind shopping online ? a. b. Not at all 44 . Immediately b. Lately c. Yes b. c.
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