See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/278244727

An Empirical Study of Online Shopping and Customers Satisfaction in Malaysia

Conference Paper · October 2013

CITATION READS
1 1,535

1 author:

Kamajeet Kaur
Infrastructure University of Kuala Lumpur
20 PUBLICATIONS   11 CITATIONS   

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Halal Cosmetics View project

All content following this page was uploaded by Kamajeet Kaur on 04 July 2016.

The user has requested enhancement of the downloaded file.

 International Conference on Information Technology Infrastructure 2013
IOI Hotel & Golf Resort, Kuala Lumpur, Malaysia, 29 – 30 October 2013
An empirical study of online shopping customer satisfaction in Malaysia: a holistic
perspective
Kamaljeet Kaur, Senior Lecturer
Center of Postgraduate Studies, Faculty of Business and
Accounting
Infrastructure University Kuala Lumpur
Selangor, Malaysia
Kamaljeet@iukl.edu.my
Abstract— This study is to identify factors that may influence
Malaysia customers’ online shopping customer satisfaction, in
the perspective of total online shopping experience. A proposed
model of the satisfaction variables in the e-commerce
environment are identified from prior studies. The model fit of
the model is tested through multiple regression analysis based
on a survey of 128 students. The analysis suggests that nine
constructs - information quality, web site design, merchandise
attributes, security/privacy, payment, and response time and
customer service - are not significant, while transaction
capability and delivery are strongly predictive of online
shopping customer satisfaction, within the student sample. The
limitation of this study is on the introduction of many variables
to predict the total customers’ online shopping which may
create diffusion among respondents. This research contributes
to the study of online shopping customer satisfaction by:
developing a model of the customers’ online shopping
satisfaction including those which are ignored by prior studies.
Keywords- Electronic commerce; On-line customer
satisfaction; On-line shopping
I. INTRODUCTION (HEADING 1)
In today’s dynamic market environment, maintaining
customer satisfaction is crucial in ensuring business
sustainability. Company need to sell the goods and services
that could fulfill customer requirements. In addition,
customers must be satisfied with their online shopping
experience; otherwise they will not return (Kim and Stoel,
2004).
The previous research on factors regarding online
shopping customer satisfaction has been carried out by
(Chia-Hui Yen, His-Peng Lu, 2008). The past studies found
that previous researchers did not focus in some essential
factors when conducting their research. Previous researcher o
utilize the core factors in identifying customer satisfaction.
In addition, the studies in previous researches in evaluating
customer satisfaction were only taken in other countries (Xia
Liu et.al. 2008) and there is scare knowledge on the Malaysia
context. Therefore, there is a need to conduct the research in
Malaysia so researches could find out the customer
satisfaction of online shopping in Malaysia. This is crucial
Nicholas Pang Chun Wei
Researcher, Faculty of Business and Accounting
Infrastructure University Kuala Lumpur
Selangor, Malaysia
Nikv90@ymail.com
for online shopping system in Malaysia should be further
studies to ensure customer expectation is achieved (Chia-Hui
Yen, His-Peng Lu, 2008).
The objective of doing this research is to identify other
important factors that may influence customer’s satisfaction
in online shopping, including those which are not putting all
the factors together in one shot by prior studies from the
perspective of total online shopping experience (Xia Liu
et.al. 2008). Factors such as customer service, website
design, transaction capability, response time, security or
privacy, delivery, merchandise attribute and payment should
be tested together in doing research (Xia Liu et.al. 2008). It
is very important to further conduct research regarding the
factors that affect customer’s online shopping satisfaction
because in the turbulent e-commerce environment, Internet
companies need to know how to satisfy customers and this
will enable them to sustain their growth and market share
(McKinney et al., 2002). In Malaysia, it had shown that there
is increase of online shoppers of 2.9% from year 2008 till
2012 (Human Website, 2010).
Apart from that, the objective of doing this research is
also to add to the body of knowledge on the foundation of
other researches. (Yu-Hui Chen, Stuart Barnes, 2007). This
was because it could generate profit for the company if
customer’s satisfaction could be fulfilled. Customers would
purchase the product from time to time from the same
company if customers feel that the product could fulfill their
needs. Previous research not only could bring a “return
business” for the company and also generate a lot of profit
(Xia Liu et.al. 2008).
The structure of the research paper is divided as the
followings: literature review, research framework, research
methodology, analysis and conclusion. In the literature
review, there are few concepts been using by the previous
researchers in evaluating customer satisfaction towards
online shopping. In addition, research framework has
contains methodology. Research method contains of sample,
procedures and measurement instruments. In analysis
section, it shows the data analysis and results from the data
that was collected from the questionnaires. Lastly,
conclusion consists of the limitation of this research and
suggestion for future research.
 International Conference on Information Technology Infrastructure 2013
IOI Hotel & Golf Resort, Kuala Lumpur, Malaysia, 29 – 30 October 2013
II. LITERATURE REVIEW
A. Information Quality
Since a primary role of an online store is to provide
price-related information and product information to help
reduce consumers’ search cost (Bakos, 1997), more
extensive and higher quality information available online
leads to higher levels of customer satisfaction (Peterson et
al., 1997). Researcher had used four questions to evaluate the
information quality in the website towards consumer’s online
shopping satisfaction. The questions were information
accuracy, information and understandability, information
completeness and information relevancy. As a result, it
shows that higher level of information quality will improve
customer satisfaction in online shopping (Xia Liu et al.,
2008).
B. Customer service
Moreover, customer satisfaction was also been affected
by the efficiency of logistics and customer service. The
most common types of complaints about Internet
transactions include refund and billing disputes, return and
exchange policies, defective products, and poor customer
service (Chen and Chang, 2003). Consumers want careful,
continuous, useful communication across geographic
barriers (Lohse and Spiller, 1998). There are three
questions have been used to evaluate consumers
satisfaction towards customer service in the online
shopping website. As a result, it shows that customer
service have positive relationship with customer
satisfaction in online shopping (Xia Liu et.al. 2008).
C. Website design
Website design was one most commonly factor that
could increase the rate of consumers to visit the website. A
good website design will have a positive effect on online
shopping customer satisfaction (Xia Liu et.al. 2008). In
website design, the researcher has use website structure,
navigation, color combination and ease of use to test the
customer satisfaction towards online shopping (Pastrick,
1997). Four questions have been used by the researcher to
evaluate the website design towards customer’s online
shopping satisfaction. As a result, it shows that website
design was having a positive relationship with customer
satisfaction (Xia Liu et.al. 2008).
D. Transaction Capability
Online shoppers were known for low tolerance (Chen
and Chang, 2003), it is estimated that, on average, online
shoppers only wait for eight seconds for system feedback
before bailing out (Dellaert abd Kahn, 1999). A web page
designer has to consider not only appearance and
functionality, but also loading time (Weinberg, 2000). A
commonly cited reason for online shopping was
convenience (Chen and Chang, 2003). Therefore, it will
raise the customer’s degree of satisfaction to improve the
web site’s transaction capability, design a secure and
convenience payment mechanism, ensure completion of all
online shopping operations and save the customer’s
operation time. Previous researcher had use two questions in
evaluating transaction capability towards consumer in
online shopping satisfaction. As a result, it shows that there
were great transaction capability will have a positive effect
on online shopping customer satisfaction (Xia Liu et.al.
2008).
E. Response Time
Moreover, online shoppers are known for low tolerance
(Chen and Chang, 2003), it was estimated that, on average,
online shoppers only wait for eight seconds for system
feedback before bailing out (Dellaert abd Kahn, 1999).
Researcher has only use two questions to evaluate response
time towards customer’s online shopping satisfaction. As a
result, it shows that rapid response time will have a positive
effect on online shopping customer satisfaction (Xia Liu
et.al. 2008).
F. Security or Privacy
Furthermore, there have been several other attempts to
study user satisfaction in the context e-services or online
services (Zhang et al., 2006; Ha, 2006; Yang and Fang,
2004). For instance, Zhang et al. (2006) examine several
factors (user computer proficiency, perceived convenience,
site characteristics, perceived security, user satisfaction)
affecting user satisfaction with e-services and find that
perceived convenience, users’ skills and experiences, and
perceived security have impact on user satisfaction with e-
services. In addition, privacy was defined as the consumers’
ability to control the presence of other people in the
environment during a market transaction or consumption
behavior; and the dissemination of information related to or
provided during such transactions or behaviors to those who
were not present (Goodwin, 1991, p. 152). Furthermore,
Yoon (2002) describes the mechanisms of online trust as
security assurance, reputation, web searching, fulfillment
which means the willingness to customize, presentation
which means web quality, technology, and interactions like
e-forums will influence the online shopping satisfaction.
Researcher has used five questions to evaluate security or
privacy towards consumer’s online satisfaction. As a result,
it shows that security or privacy will have a positive effect
on online shopping customer satisfaction (Xia Liu et.al.
2008).
G. Delivery
In the e-commerce environment, not only is the
consumption of goods separated from production, thus
making it necessary for goods to delivered to consumers
before consumption, there was also a delay in the delivery
of goods. Delayed delivery may have a negative effect on
satisfaction. As shown by the 2004 China Online Shopping
Report by CNNIC 25 per cent of Chinese customers were
 International Conference on Information Technology Infrastructure 2013
IOI Hotel & Golf Resort, Kuala Lumpur, Malaysia, 29 – 30 October 2013

not satisfied due to delayed delivery or wrong product

delivery (CNNIC, 2004). One customer complained that he
bought a digital camera from an online company but
received sports equipment’s instead. Previous researcher
had used four questions to evaluate delivery system towards
customers in online shopping satisfaction. As a result, it
shows that safe and rapid delivery will have a positive effect
on online shopping customer satisfaction (Xia Liu et.al.
2008).
H. Merchandise Attributes
Merchandise attribute including merchandise variety
and price was important for decision making. Szymanski
and Hise (2000) indicate that wider assortment of products
may be attractive to customers and e-satisfaction would be
more positive when online stores offer superior product
assortments. Previous researcher had used two questions to
evaluate merchandise attributes towards customer’s online
shopping satisfaction. As a result, it shows that wider
merchandise variety and low price will have a positive
effect on online shopping customer satisfaction (Xia Liu
et.al. 2008)
I. Payment
Apart from that, by design a convenient payment Figure 1: Research Framework
mechanism, it could ensure completion of all online Based on various literature reviews, in this study nine
shopping operations and save the customer’s operation time. factors are accounted for testing the variables that affects
In previous research, researcher had used two questions to customer’s satisfaction of online shopping as shown in the
evaluate payment system in the online shopping website research framework Figure 1. The thing that found out from
towards customer online shopping satisfaction. As a result, the different journals was service or privacy and customer
it shows that a convenient payment mechanism will have a service which greatly affected the satisfaction of customers
positive effect on online shopping customer satisfaction in online shopping. Therefore, it is very important to do the
(Xia Liu et.al. 2008). further research so that this could enable the company to
serve the customers effectively and efficiently.
J. Satisfaction of Online Shoppers
III. RESEARCH METHODOLOGY
It is known that online shopping environment and
behavior was fundamentally different from that of a The research of online customer shopping satisfaction
conventional retail environment (Degeratu et al., 2000; was measured by self-administrator questionnaire. The
Lynch and Ariely, 2000). It can be expected that the key purpose of using sale administrator questionnaire is because
drivers of customer satisfaction and retention in the Internet there were lack of time and money to do the research. By
economy may be also different from those in the traditional using sale administrator questionnaire, it enables the
economy. From different perspective, the researchers have collection data from the students more easily because the
target respondents were either post-graduate or under
developed and tested instruments to measure the customer
graduate. As a result, the collection of data from the students
satisfaction when using online shopping services
could be within the university or from other university. The
(Szymanski and Hise, 2000; Koivumaki, 2001; heiner et al., method of selection that used to select the students was by
2004; Kim and Stoel, 2004). Market orientation and using non-probability method. By using non-probability
customer satisfaction research show there was direct method, it does not have equal chance for the sample since
connection between customer satisfaction and not every data that had been collected will be contribute in
organizational performance (Garver abd Gagnon, 2002). doing this research. The reason for not using every data that
had been collected in doing this research was because there
were limited time and cost. Therefore, by using the
convenience sampling method, it enables the collection of
data from the respondent more easily. With more purchasing
experience, it will be easier for the researcher to gather more
information from the students about the online shopping
satisfaction.
 International Conference on Information Technology Infrastructure 2013
IOI Hotel & Golf Resort, Kuala Lumpur, Malaysia, 29 – 30 October 2013
Furthermore, the total respondent of this research was
128 students which all together were 150 questionnaires had
been sending out. The other university students who were
doing this questionnaire were Lim Kok Wing University,
International Medical University, Sunway College and
University Kebangsaan Malaysia (UKM). Out of the total
number of questionnaire administrated, 22 pieces were not
valid due to incomplete responses from the respondents. First
and foremost, the main factor that researcher collect data
from this group of students was because students have doing
online shopping more frequently. Moreover, it had also
shows that 57.0% of male students are doing online shopping
and 43% of female students were doing online shopping
according to the data analysis below.
IV. DATA ANALYSIS AND DISCUSSIONS
A. Descriptive Analysis
Table 1 shows that the total number of male students who
were performing online shopping was 73 students which
were 57.0% and female students were only 55 students
which were 43.0% in performing online shopping.
Therefore, it could clearly see that there were more male
students were doing online shopping if compared with the
female students.
In addition, the Table 2 shows that the age of students
who were involved in the highest online shopping rate was
from 21 years old till 24 years old which have 55 students of
43.0%. However, the lowest rate of online shopping is
above 33 years old which was only have 3 students of 2.3%.
As a result, it shows that students who were in the range of
27 till 33 years old were seldom performed online shopping.
However, students who were within the range of 17 till 37
years old were perform more online shopping.
With reference to Table 3, it shows that there were 95
students which were 74.2% of undergraduate or vocational
school who were performing online shopping. However,
there were only 33 students which is 25.8% of postgraduate
school were performing online shopping. As a result, it could
clearly see that there were more undergraduate students who
were performing online shopping than postgraduate students
which also means that the online shopping satisfaction of
undergraduate students was much higher.
With regards to products purchased online, Table 4
shows that the items that were mostly purchased by students
through online shopping was CD, software, online music and
movie which was 32 students of 25.0%, follow up by flowers
and gifts, books and magazines which was 32 students of
25.0%, cellphone, PC, jewelry, ornaments which is 24
students of 18.8%. However, the products that was least
purchased by the students were other tangible goods which
was 15 students of 11.7%, other intangible goods which was
15 students of 11.7% and weather forecast, stock quote,
mobile message service which was 16 students of 12.5%. As
a result, it could see that students were more prefer to
purchased electronic goods, gifts and books through online.
B. Multiple Regression Analysis
The results of the multiple regression analysis is
presented in Table 5. The derived multiple coefficient of
determination (R²) is 0.420 which means that 42% of
variance in the independent variable are explained by the set
of predictors. This also means that the accuracy of the
variables are explained by all the independent variables
selected in the prediction of the satisfaction of the online
shopper is 42%. According to the table above, it shows that
the total percentage of 0.375 in Adjusted R Square.
Table 6 shows the parameter estimates of the regression
which represent the regression coefficient or slope of each
predictor variables. The t statistics indicate the significance
of the constant and each of the parameter estimates. The
only parameter is significant is IQ4 (Transaction Capability)
which is significant at 0.05 level (p=0.03) and IQ7
(Delivery) which significant at 0.05 level (p=0.007) with a
parameter estimate of 0.771 and 0.463 respectively.
The above table has given the value that shows by the
total information quality (IQ1) satisfaction was 0.165 which
was insignificant. This was because the value of 0.165 was
more than 0.05 (Jerrydallal, 2012). According to Fisher RA,
the value that more than 0.05 is considered as insignificant,
however, the value that less than 0.05 is significant value. In
IQ2, the value of total customer service satisfaction was
0.304 which was also insignificant. In IQ3, the value of total
website design satisfaction was 0.827 which is insignificant.
In IQ4, the value of total transaction capability was 0.003
which was significant because it was less than the value of
0.05. In IQ5, the value of total response time satisfaction
was 0.799 which was insignificant. In IQ6, the value of total
security or privacy satisfaction was 0.062 which was also
insignificant. In IQ7, the value of total delivery satisfaction
was 0.007 which was significant. In IQ8, the value of total
merchandise attributes was 0.542 which was also
insignificant. In IQ9, the value of total payment was 0.163
which was also insignificant. Lastly, in IQ10, the value of
total satisfaction was 0.144 which was also insignificant. As
a result, it could clearly see that there was more insignificant
value than significant value.
V. CONCLUSION AND LIMITATION
A. Findings
The relationship of findings presented to the research
questions will be discussed in this section. First, our finding
has proven that there were two significant value which were
IQ4 (Transaction Capability) and IQ7 (Delivery) that could
contribute in this current research. However, other factors
like IQ1 (Information Quality), IQ2 (Customer Service), IQ3
(Website Design), IQ5 (Response Time), IQ6
(Security/Privacy), IQ8 (Merchandise Attributes), IQ9
(Payment) and IQ10 (Customer Satisfaction) were showing
insignificant value in the current research. Therefore, it could
be concluding that the others eight insignificant values could
 International Conference on Information Technology Infrastructure 2013
IOI Hotel & Golf Resort, Kuala Lumpur, Malaysia, 29 – 30 October 2013
not contribute especially in improving the current research
(Xia Liu et.al. 2008).
First and foremost, the two significant values which are
transaction capability and delivery could contribute to two
parties which were academic research and also industry (Xia
Liu et.al. 2008). The two significant values could be applied
into the industry which was to enable the industry to practice
it in their workplace. It was immensely important for the
industry to practice the two significant values in the
workplace because it could greatly improve the performance
of the company in offering online shopping for the
customers. Apart from that, the transaction capability and
delivery also could help a lot in contributing the quality
information in the further academic research (Xia Liu et.al.
2008).
In a nutshell, throughout this research, the researcher
have find out that all together there will be nine important
factors that will greatly affect customer online shopping
satisfaction. There were two factors that had been add in
from different journals since it is also very important as it
could also affect customer online shopping satisfaction
(Zhang et al. 2006; Chen and Chang, 2003) In this study, the
researcher has put all the nine factors in one research
framework; because it was greatly affect customer’s online
shopping satisfaction and also contribute a lot for further
research (Xia Liu et.al. 2008).
B. Limitation and suggestions for further research
First and foremost, the limitation that had found in this
research which was there were too much of factors that had
been gather together in shot which this had made the
researcher getting confuse of whether which factors were
really important that could 100% affected customers
satisfaction. In addition, with too much of factors, it was also
will be very difficult for the researcher to test since every
factor seems very important in contributing to this research
paper. Since there are too many factors to focus, it will be
very hard for the researcher to use all the factors to evaluate
customer’s online shopping satisfaction (Xia Liu et.al. 2008).
Therefore, it was highly recommended future research
should decrease the nine factors into four factors so that it
enable the further research be carrying out on certain specific
elements only, it also enable the researcher to focus more in
the four factors that had been chosen and been tested. Future
researcher also should make sure that the four factors were
well being fully affecting customer online satisfaction. As a
result, it will be easier for the researcher to find out what
were the requirements, needs and wants of consumers
nowadays in term of online shopping satisfaction (Xia Liu
et.al. 2008).
. ACM, Vol. 43 No. 12, pp. 45-8.
REFERENCES
[1] Ba, S. and Pavlou, P.A. (2002), “Evidence of the effect of trust
building technology in electronic markets: price premiums and buyer
behavior”, MIS Quarterly, Vol. 26 No. 3, pp. 243-68.
[2] Bakos, J.Y. (1997), “Reducing buyer search costs: implications for
electronic marketplaces”, Management Science, Vol. 43 No. 12, pp.
1676-92.
[3]
[4] Chen, S.J. and Chang, T.Z. (2003), “A descriptive model of online
shopping process: some empirical results”, International Journal of
Service Industry Management, Vol. 14 No. 5, pp. 557-69.
[5]
[6] Chia-Hui Yen, His-Peng Lu, (2008), “Effects of e-service quality on
loyalty intention: an empirical study in online auction”, Managing
Service Quality, Vol. 18 Iss: 2 pp. 127-146.
[7] CNNIC (2004), “CNNIC statistic report of the development of
internet in China”, available at: www.cnnic.net.cn (accessed July
2004).
[8]
[9] Degeratu, A., Rangaswamy, A. and Wu, J. (2000), “Consumer choice
behavior in online and traditional supermarkets: the effects of brand
name, price, and other search attributes”, International Journal of
Research in Marketing, Vol. 17 No. 1, pp. 55-78.
[10]
[11] Dellaert, B. and kahn, B. (1999), “How tolerable is delay?
Consumers’ evaluations of internet web sites after waiting”, Journal
of Interactive Marketing, Vol, 13 No. 1, pp. 41-54.
[12]
[13] Fung, R. and Lee, M. (1999), “EC-trust (Trust in Electronic
Commerce): exploring the antecedent factors”, in Haseman, W.D. and
Nazareth, D.L. (Eds), Proceedings of the 5th Americas Conference on
Information Systems, Milwaukee, WI, August, pp. 517-19.
[14]
[15] Garver, M.S. and Gagnon, G.B. (2002), “Seven keys to improving
customer satisfaction programs”, Business Horizons, Vol. 45 No. 5,
pp. 35-42
[16]
[17] Goodwin, C. (1991), “Privacy: recognition of a consumer right”,
Journal of Public Policy Marketing, Vol. 10, pp. 146-663
[18] Kim, S. and Stoel, L. (2004), “Apparel retailers: website quality
dimensions and satisfaction”, Journey of Retailing and Consumer
Services, Vol. 11 No. 2, pp. 109-17.
[19] Lohse, G>L> and Spiller, P. (1998), “Electronic shopping”,
Communications of ACM, Vol. 41 No. 7, pp. 81-9.
[20]
[21] McKinney, V., Kanghyun, Y. and Zahedi, F.M. (2002). “The
measurement of web-customer satisfaction: an expectation and
disconfirmation approach”, Information System Research, Vol. 13
No. 3, pp. 296-315.
[22]
[23] Pastrick, G. (1997), “Secrets of great site design”, Internet User, Fall,
pp. 80-7.
[24] Peterson, R.A., Sridhar, B. and Bart, J.B. (1997), “Exploring the
implications of the internet for consumer marketing”, Journal of the
Academy of Marketing Science, Vol. 25 No. 4, pp. 329-46.
[25]
[26] Resnick, P., Kuwabara, K., Zeckhauser, R., Friedman, E. and
Kuwabara, K. (2000), “Reputation systems”, Communications of the
[27] Szymanski, D.M. and Hise, R.T. (2000), “E-satisfaction: an initial
examination”, Journal of Retailing, Vol. 76 No. 3, pp. 309-22.
[28]
[29] Weinberg, B. (2000), “Don’t keep your internet customers waiting
too long at the (virtual) front door”, Journal of Interactive Marketing,
Vol. 14 No. 1, pp. 30-9.
 International Conference on Information Technology Infrastructure 2013
IOI Hotel & Golf Resort, Kuala Lumpur, Malaysia, 29 – 30 October 2013

[30] Wikipedia, 2012, Customer Satisfaction, [Online], Available at:
http://en.wikipedia.org/wiki/Customer_satisfaction, retrieved at 8
August 2012.
[31]
[32] Xia Liu, Mengqiao He, Fang Gao, Peihong Xie, (2008), “An
empirical study of online shopping customer satisfaction in China: a
holistic perspective”, International Journal of Retail and Distribution
Management, Vol. 36 Iss: 11 pp. 919-940.
[33]
[34] Yoon, S.J. (2002), “The antecedents and consequences of trust in
online-purchase decisions”, Journal of Interactive Marketing, Vol. 16
No. 2, pp. 47-63.
[35]
[36] Yu-Hui Chen, Stuart Barnes, 2007, “Initial trust and online buyer
behavior”, Industrial Management & Data Systems, Vol. 107 Iss: 1
pp. 21-36.
[37] Zhang, X., Prybutok, V. and Huang, A. (2006), “An empirical study
of factors affecting e-service satisfaction”, Human Systems
Management, Vol. 25 No. 4, pp. 279-91.
[38]
[39] Info and Human Website.com.my, 2010, Internet Marketing Malaysia
Blog, [Online], Available at:
http://humanwebsite.com.my/blog/online-shopping-statistics-in-
malaysia/Page-3.html, retrieved at 8 August, 2012.
[40] Jerrydallal, 2012, Why P=0.05, [Online], Available at:
http://www.jerrydallal.com/LHSP/p05.htm, retrieved at 13 August
2012

View publication stats