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An examination of the effects of service quality

and satisfaction on customers’ behavioral


intentions in e-shopping
Spiros Gounaris, Sergios Dimitriadis and Vlasis Stathakopoulos
Department of Marketing and Communication, Athens University of Economics and Business, Athens, Greece

Abstract
Purpose – The purpose of this paper is to examine the effects of service quality and satisfaction on three consumer behavioral intentions, namely
word-of-mouth, site revisit, and purchase intentions in the context of internet shopping.
Design/methodology/approach – To achieve this objective 240 online interviews were carried out (response rate 24 percent) from a randomly
generated sample of 1,052 online shoppers using the database of a leading Internet provider in Greece as the sample frame.
Findings – Data analysis involved the comparison of three rival models using structural equations modeling. The prevailed model reveals that e-service
quality has a positive effect on e-satisfaction, while it also influences, both directly and indirectly through e-satisfaction, the consumer’s behavioral
intentions, namely site revisit, word-of-mouth communication and repeat purchase.
Research limitations/implications – The results confirm that cognitive evaluations precede emotional responses and that quality is a strong
antecedent of satisfaction. However, the findings highlight the importance of the interaction experience with the e-shop on perceived quality. Moreover,
the study underlines the crucial impact of the four key e-service quality drivers on the entire cycle of buying, including post-purchase behavior,
confirming existing evidence in both off- and on-line context.
Practical implications – Practitioners should carefully consider their web site’s attributes. They should make their sites easy-to-use and easy-to-
navigate and place extra emphasis on providing fast, accurate, and uncluttered information through their web sites. Also they should direct marketing
activities with the aim to enhance satisfaction from e-shopping, particularly regarding the service encounter incidents.
Originality/value – The paper makes a scholar contribution by examining the notion of e-service quality and how it relates with e-satisfaction while
exploring unexamined consumers’ behavioral intentions and both their direct and indirect antecedents.

Keywords Customer services quality, Customer satisfaction, Consumer behaviour, Electronic commerce, Retailing

Paper type Research paper

An executive summary for managers and executive strategy. A key component of such a strategy needs to focus
readers can be found at the end of this article. on services and relationships that demonstrate a company’s
appreciation to its customers (Smith, 2000). E-companies
must deliver superior service experiences to their customers, if
Introduction
they want to earn their businesses, their repeat patronage, and
In these days of web mania, everyone talks about the eventually their loyalty. After all, poor service quality has been
e-commerce and e-business revolution and the Internet of the shown to account for 80 percent customer complaints about
new knowledge-based economy. The web allows e-businesses e-tailers (Dobie et al., 2001).
to provide customers with increasingly accurate, timely, and It is well recognized though that the web represents a
inexpensive information. As a result, customers can fundamentally different shopping environment than a
immediately compare prices and choose the supplier with traditional shopping channel (Hoffman and Novak, 1996).
the lowest price. As such, classical marketing paradigms, theories, and
However, amount of information or internet presence and activities as well as consumer attitudes and behaviors need
price alone do not rule the web (Reichheld and Schefter, to be re-evaluated in this new context, as several researchers
2000; Zeithaml et al., 2002). To be successful in a fierce have called upon (e.g. Cox and Dale, 2001; Menon and
competitive e-environment, e-companies need to insulate Kahn, 2002; Parasuraman and Grewal, 2000; Reichheld and
themselves by developing an appropriate differentiating Schefter, 2000; Zeithaml et al., 2002). The reason is that
some recent empirical studies (e.g. Degaratu et al., 2000;
The current issue and full text archive of this journal is available at Keaveney and Parthasarathy, 2001; Lynch and Ariely, 2000;
www.emeraldinsight.com/0887-6045.htm Menon and Kahn, 2002; Szymanski and Hise, 2000) show
that there may exist differences in key marketing constructs

Journal of Services Marketing


24/2 (2010) 142– 156 Received: July 2007
q Emerald Group Publishing Limited [ISSN 0887-6045] Revised: March 2008
[DOI 10.1108/08876041011031118] Accepted: April 2008

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An examination of the effects of service quality Journal of Services Marketing
Spiros Gounaris, Sergios Dimitriadis and Vlasis Stathakopoulos Volume 24 · Number 2 · 2010 · 142 –156

and associated relationships between traditional and E-service quality


e-business contexts. This study is one more attempt to The notion of service quality is considered as one of the most
answer this research call and help fill this gap in our important research topics in marketing, since it relates to
knowledge. costs (Crosby, 1979), financial performance (Buzzell and
Against this backdrop, many important research topics have Gale, 1987), customer satisfaction (Spreng et al., 1996),
not yet been fully explored and studied. Some of them customer retention and loyalty (Reichheld and Sasser, 1990),
represent key marketing constructs, such as service quality and competitive advantage (Iacobucci et al., 1994). This
and customer satisfaction. Although the relationships among recognition of the important role service quality plays in
service quality, customer satisfaction, and consumers’ business success has led to the development of alternative
behavioral intentions are well documented in the classical schools of thought regarding its conceptualization (e.g.
service literature (e.g. Athanassopoulos et al., 2001; Boulding Parasuraman et al., 1985; Gronroos, 1990; Reeves and
et al., 1993; Cronin and Taylor, 1992, 1994; Keaveney, 1995; Bednar, 1994).
Parasuraman et al., 1985; Spreng et al., 1996; Zeithaml et al., In general, service quality is defined as the perceived
1996), such relationships have not been fully subjected to discrepancy between customers’ expectations and their
conceptual and empirical investigation in the e-business evaluation of what they get (Gronroos, 1990; Parasuraman
context. In fact, Zeithaml et al. (2002) have urgent future et al., 1988). More specifically, Zeithaml et al. (2000, 2002)
researchers to pay particular attention to the concept of defined e-service quality as the extent to which a web site
electronic service quality and its associated consequences. facilitates efficient and effective shopping, purchasing and
Studying such relationships will provide both academics and delivery of product and services. In fact, a review of the
practitioners with a more comprehensive understanding of the relevant e-commerce literature indicates that the research
relevant phenomena. efforts on the subject parallel those in the traditional context
In light of the preceding discussion, the objective of this (Hackman et al., 2006). Thus, the principal focus of e-service
research is to contribute to the marketing literature in a quality research has been twofold.
number of ways. First, it examines the notion of e-service First, the identification of e-service quality dimensions was
quality. Second, it studies the topic of e-satisfaction. Third, of primary interest to internet service marketing researchers.
this study goes beyond e-service quality and e-satisfaction to Early research on how consumers form expectations on
explore unexamined consumers’ behavioral intentions. technology-based self-service quality suggested five attributes:
Fourth, this research investigates which variables lead speed of delivery, ease of use, reliability, enjoyment and
directly and indirectly to behavioral intentions. control (Dabholkar, 1996). In a more recent study, designed
The rest of this paper is organized as follows. We first to explain price dispersion across online stores by differences
develop our conceptual model and associated research in e-tailers service quality, Pan et al. (2002) used the web site
hypotheses that address the relationships among e-service evaluation scale of BizRate.com to assess e-tailers’ service
quality, e-satisfaction, and behavioral intentions. We then quality. BizRate.com is a well-known price comparison site
describe the sample and measures employed in the study. We which surveys e-tailers’ customers and asks them to evaluate
follow by reporting the empirical research results. Finally, we e-tailers services. Using evaluation data from 105 e-tailers, the
conclude by discussing managerial implications, study authors extracted five quality factors out of the ten initial
limitations and future research directions. attributes: reliability, shopping convenience, product
information, shipping/handling and pricing.
Conceptual framework and research hypotheses Trocchia and Janda (2003) using in-depth interviews
identified five dimensions of e-service quality: performance,
Figure 1 depicts our proposed conceptual model. This model access (product variety from all over the world), security,
emanates from the literature that examines the relationships sensation (aesthetics) and information. Wolfinbarger and
among service quality, customer satisfaction, and behavioral Gilly (2001) conducted an extensive study, including focus
consequences, within the online and the offline service groups and online panel survey of 1,013 consumers, in order
paradigms (e.g. Anderson and Sullivan, 1993; Cristobal et al., to establish a valid scale of e-tail quality. Of the initial 40 items
2007; Cronin et al., 2000; Gotlieb et al., 1994; Hackman et al., tested, 14 were finally retained which factored on four quality
2006; Parasuraman et al., 2005; Roest and Pieters, 1997; dimensions: customer service (responsiveness, answering
Shamdasani et al., 2008). As it can be seen, the major inquiries and customer problems), privacy/security, web site
constructs in the model are e-service quality, e-satisfaction, design (information, personalization, navigation, product
and consumers’ behavioral intentions. Our model suggests selection) and fulfillment/reliability (on time and no errors
that behavioral intentions are influenced by e-service quality delivery, accurate description of products).
both directly and indirectly through e-satisfaction. Finally, based on an extensive state-of-the-art review of
existing research on e-service quality, Zeithaml et al. (2002),
Figure 1 The conceptual model summarized previous work in five main dimensions:
information availability and content, ease of use, privacy/
security, graphic style and fulfillment/reliability. They also
mentioned other, less researched, criteria such as
responsiveness and personalization (Griffith and Krampf,
1998).
Second, the development of measurement instruments of
e-service quality was of equal interest. More specifically, an
attempt to adapt the widely cited SERVQUAL instrument
(Parasuraman et al., 1985, 1988, 1991) to the web context has

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An examination of the effects of service quality Journal of Services Marketing
Spiros Gounaris, Sergios Dimitriadis and Vlasis Stathakopoulos Volume 24 · Number 2 · 2010 · 142 –156

led to the WEBQUAL, an instrument for measuring the 1995; Gotlieb et al., 1994; Rust and Oliver, 1994; Sivadas and
quality of a web site (Barnes and Vidgen, 2000, 2001a, b). Prewitt, 2000).
Starting by testing the model on business schools web sites, The preceding literature supports the notion that favorable
the authors refined, adjusted and completed the scales as they service quality perceptions lead to improved customer
applied it to auctions sites and to e-bookstores. In a first satisfaction. In other words, service quality is an antecedent
empirical validation (Barnes and Vidgen, 2001a), the 22 of satisfaction with services. The justification for this link is
initial items were grouped in three quality elements, usability that customer satisfaction is an affective reaction, which
(appearance, ease of use, navigation), information (accuracy, emerges as a response to a single or prolonged set of cognitive
relevancy) and interaction (security, personalization, service encounters. Hence, customer satisfaction is a “post
communication). However, in their more recent work, the consumption” experience, which compares perceived quality
authors revised their initial instrument and included ten out with expected quality (e.g. Anderson et al., 1994; Andesron
of the original 22 items grouped to the five SERVQUAL and Sallivan, 1993; Chenet et al., 1999; Cronin et al., 2000;
elements (Barnes and Vidgen, 2001b): tangibles (aesthetics Ennew and Binks, 1999; Hallowell, 1996; Sivadas and
and navigation), reliability (reliability and competence), Prewitt, 2000). In fact, according to Dawson et al. (1990) a
responsiveness (responsiveness and access), assurance consumer is thought to make a cognitive appraisal of previous
(credibility and security), empathy (communication to and retail experience, which leads to an affective reaction reflected
understanding the individual). by satisfaction.
In a study of e-service quality of web portals, Gounaris and In the e-context, recent research has also confirmed the
Dimitriadis (2003) used a 14 items scale combining measures impact of e-quality on satisfaction (Lee and Lin, 2005; Collier
of the SERVQUAL and the WEBQUAL instruments. Their and Bienstock, 2006; Fassnacht and Kose, 2007; Cristobal
results confirmed three quality dimensions: customer care and et al., 2007; Shamdasani et al., 2008). For instance,
risk reduction (security, delivery, communication), Szymanski and Hise’s (2000) viewed e-satisfaction as an
information (believable, relevant information) and overall construct reflecting the cumulative effect of a set of
interaction (easy of use, navigation, design), converging with discrete experiences with the service provider over a period of
and completing the findings of WEBQUAL. Yet, web portals time. As such, one measures the degree to which overall a
differ from e-tailing sites since typically they do not sell customer is both satisfied/dissatisfied and pleased/displeased
products, need no personal contact and have no payment and with online shopping.
order fulfillment issues to handle. However, several researchers make a distinction between
More recently, Parasuraman et al. (2005) used a means-end satisfaction with service encounters (e.g. Bitner et al., 1990;
framework in order to develop a scale for measuring e-service Shankar et al., 2002) and satisfaction with service processes
quality. Through a two-stage empirical data collection the (e.g. Dube and Morgan, 1998; Tse et al., 1990). Service
authors identified two different scales for capturing electronic encounters refers to the interactions between the customer
service quality: the basic e-quality scale developed consisted and the company, whiles service processes describes the
of four dimensions: efficiency, fulfillment, system availability, consumer’s experiences during all phases of a buying process
and privacy. Because recovery was considered as a critical decision.
aspect of service, a separate scale concerned specifically the In the e-shopping environment, whereas online shopping is
aspects of e-service recovery and contained three dimensions: a different experience from traditional off-line shopping in
responsiveness, compensation, and contact. Building on this many ways, service encounter, on one hand, is considered as
work, Collier and Bienstock (2006) made a further distinction the interaction experience with the electronic store (e.g. site
among: navigation, information availability and content, graphics).
.
process or interactive quality (encompassing privacy, On the other hand, service process is viewed as the experience
design, information accuracy, ease of use, and with services after an electronic sale has occurred (e.g.
functionality); product delivery, product operation). In fact, the importance
.
outcome quality (order timeliness, order accuracy, and of satisfaction with the service process was highlighted in a
order condition); and study by Boston Consulting Group (2001), which indicated
.
recovery (interactive fairness, procedural fairness, and that electronic consumers are more dissatisfied with services
outcome fairness). they receive after they have placed an order. Such services
include product delivery, customer service, and product
Finally, Cristobal et al. (2007) suggested a multiple-item scale return.
consisting of four perceived e-service quality dimensions, web Cho and Park (2001), in their study of developing an
design, customer service, assurance and order management. electronic commerce user-consumer satisfaction index,
In general, the common thrust of these emerging research included factors that were relating to both service
efforts remains disparate, heterogeneous in both methodology encounters (e.g. product information, site design, product
and results, with no definite conclusions. merchandising) and service processes (e.g. consumer service,
purchase delivery, delivery time and charge). However, in
E-satisfaction their analysis the authors computed a composite index
The agenda of the traditional service quality research was including all factors, without attempting to separate the two
further enhanced through work in the domain of customer dimensions of e-satisfaction based on its content validity.
satisfaction (e.g. Hallowell, 1996; Oliver, 1997; Spreng et al., Further, Liang and Lai (2002), based on the results of their
1996). In fact, developing a thorough understanding of the empirical study of the factors that determine the quality of an
conceptual relationships between service quality and e-store design, argued that on-line stores must provide
customer satisfaction was of primary concern to service adequate post-sales services to support the customers’ needs
researchers (e.g. Athanassopoulos, 2000; Iacobucci et al., in the entire buying process.

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Spiros Gounaris, Sergios Dimitriadis and Vlasis Stathakopoulos Volume 24 · Number 2 · 2010 · 142 –156

Similar, then, to the classical literature cited above, we view Spreng, 1997; Roest and Pieters, 1997; Shamdasani et al.,
e-service quality as an antecedent to e-satisfaction (with both 2008). In other words, studies have indicated that service
the service encounter and the service process), and therefore, quality have an indirect effect on consumers’ behavioral
we advance the following hypothesis: intentions (i.e. service quality through customer satisfaction).
Regarding the specific types of behavioral intentions
H1. E-service quality has a positive effect on e-satisfaction.
affected by e-quality and satisfaction, word-of-mouth is one
of the most commonly variables used, Parasuraman et al.
Behavioral intentions (1988, 1991) found that when consumers’ perceptions of
The real value of service quality stems from its decision- service quality are high, consumers are inclined to
making implications. Several researchers (e.g. Fornell and recommend the company to others. Similarly, Reichheld
Wernerfelt, 1987; Rust and Zahorik, 1993) distinguish and Sasser (1990) indicated that retained customers attract
between offensive and defensive marketing policies and new customers through positive word-of-mouth. In addition,
tactics. Offensive marketing actions refer to capturing new Zeithaml (2000) advanced the notion that continuing
customers by investing in service quality. However, service customers may validate the firm’s good reputation to new
quality is only one of many other marketing variables (e.g. customers. Keaveney and Parthasarathy (2001), in their study
price, image) that influence a customer’s decision to consume of customer switching behavior in online services, found that
the service. Therefore, investing on service quality alone does switchers of online services were relying on word-of-mouth
not guarantee winning new customers. sources when making their subscription decisions. Moreover,
Defensive marketing actions, on the other hand, focus on Srinivasan et al. (2002) results indicated that when consumers
retaining existing customers rather than attracting new ones. are loyal to an e-retailer then they are willing to say positive
There exist compelling arguments for such strategic actions. things about the e-retailer to others.
The main thrust of these arguments is economic necessity. Other researchers (e.g. Richins, 1983; Scaglione, 1988;
For example, lowering customer defections has a strong Singh, 1988) have indicated that when consumers perceive to
impact on company’s profits both in a traditional setting have experienced worse service performance than expected
(Reichheld and Sasser, 1990) and in an e-context (Reicheheld they are likely to complain to third parties (i.e. engage in
and Schefter, 2000). This is due to the fact that, capturing negative word-of-mouth). In fact, in the e-context, word-of
new consumers to replace lost ones is rather expensive for two mouth is much more accentuated than in a physical setting,
main reasons. First, promotional outlays to capture new since according to Poleretsky (1999) unhappy customers tell
consumers are high and are “considerably higher in their negative experiences to five friends, while on the Internet
e-commerce than in traditional retail channels” (Reicheheld tell to 5,000. In general, this negative word-of-mouth is the
and Schefter, 2000, p. 106). Second, new customers need a result of dissatisfaction felt by consumers due to inferior
“grace” period until they become profitable. In fact, in the service quality. A study by Boston Consulting Group (2001)
web setting it is estimated that this period is at least two to found an almost perfect correlation between e-satisfaction and
three years (Reicheheld and Schefter, 2000). Moreover, likelihood to recommend a site.
customers who remain loyal to the company produce higher Another key issue for online service companies is a
revenues than “casual” ones, because the company may be consumer’s decision to return or not to an internet site. The
able to cross-sell to them. It is no surprise then that Fornell decision to revisit a site resembles customer service switching
and Wernerfelt (1987) concluded that is better for a company behavior (Keaveney, 1995), where a customer keeps on using
to spend resources to retain existing customers than to attract the online service category but switches from one service
new ones. provider to another. In general, consumers tend to use their
Regardless though of whether a company follows offensive past retail service experience as decision making heuristics in
or defensive methods, consumers’ reactions to service quality order to formulate strategies for repeat behavior.
are unavoidable. As indicated in Figure 1, a customer’s A large number of classical research has substantiated the
assessment of both the e-service quality and e-satisfaction relationship between service quality, satisfaction and service
determines the actions the consumer will engage in. More switching. For example, Cronin and Taylor (1992) suggest
specifically, three types of consumers’ intentions are studied that convenience, good value for money, and availability
in this research: word-of-mouth communication, revisit of the might enhance customer satisfaction and subsequently reduce
site, and purchase intentions. switching behavior. Similarly, Bitner (1990) advocates the
Following the developments in the classical marketing effects of time, access to information, money constraints, and
service literature (see Cronin et al., 2000), we argue that lack of credible alternatives, which may affect service loyalty.
consumer decision-making is a complex and comprehensive In addition, Zeithaml et al. (1996) concluded that service
process. That is, consumers do not evaluate only the quality quality is associated negatively with propensity to leave. In
they receive. They also respond to the satisfaction felt by the addition, Keaveney (1995) proposed several factors for
services received. Hence, we put forward the proposition that switching services, some of them (e.g. core service failures,
e-service quality has twofold effects on consumers’ behavioral failed service encounters, poor service recoveries) associated
intentions. with feelings of dissatisfaction. Athanassopoulos et al. (2001)
The first effect is a direct one. That is, service quality is a substantiated this basic suggestion with empirical results,
direct antecedent of behavioral intentions. This effect is based which indicated that customer dissatisfaction leads to
on the service quality literature, where quality is suggested to switching behavior.
lead directly to favorable outcomes (e.g. Chang and Wildt, Research on the topic in the e-context suggests that an
1994; Cronin et al., 1997; Sweeney et al., 1999). The second internet consumer has a greater tendency to switch that does a
effect is an indirect one (e.g. Anderson and Sullivan, 1993; non-internet shopper (Donthu and Garcia, 1999). This is due
Hackman et al., 2006; Lee and Lin, 2005; Patterson and to the fact that an internet consumer has unparalleled

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An examination of the effects of service quality Journal of Services Marketing
Spiros Gounaris, Sergios Dimitriadis and Vlasis Stathakopoulos Volume 24 · Number 2 · 2010 · 142 –156

opportunities to compare products, services, and prices in this Development of the research instrument and variables
medium. Keaveney and Parthasarathy’s (2001) results measurement
indicated that Internet switchers had significantly lower In developing the survey instrument, we used appropriate
online usage of a particular service. Rice (1997) found that existing scales where possible. For the constructs for which
the factors that drive a consumer to return to an internet site validated measures were not available, new ones were
are content, enjoyment, layout, and uniqueness. Hence, a developed, following the guidelines suggested by Churchill
consumer’s motivation to return to a particular site is based (1979).
upon his/her interaction with the site (Smith and Sivakumar, In doing so, first an original pool of items was developed
2002). The more positive the consumer is and feels about a based on extensive literature review. This first pool was sent to
particular site after an interaction, the more likely the 12 colleagues (four from marketing and/or business
consumer is to return to that site. administration departments from two universities in Greece
Finally, purchase intentions refer to the consumer’s and eight from IT departments again in Greece) along with a
willingness to buy more through the internet. In general, a cover letter detailing the scope of the study and what each
large number of classical research has substantiated the scale attempted to measure. The purpose of this phase was to
relationship between service quality, satisfaction and service have experts evaluate the ability of each item to actually
switching. For example, Cronin and Taylor (1992) suggest measure what we intended to measure (content validity). The
that convenience, good value for money, and product result was a slightly modified battery of items. Nine items
availability may enhance customer satisfaction and were dropped, (two were replaced as suggested by the
subsequently decrease switching behavior. Similarly, Bitner experts), while four other items were rephrased. Upon
completion, the new pool of items was then sent to the
(1990) advocates the effects of time, access to information,
marketing director of four internet providers in Greece and
money constraints, and lack of credible alternatives, which
the same process was repeated. During this phase, another
may affect service loyalty. In addition, Zeithaml et al. (1996)
seven items were also added and eight items (two from the
concluded that poor service quality is associated positively
original version and six that were rephrased during the
with propensity to leave. In addition, Keaveney (1995)
previous phase) were reworded. This process resulted in a
proposed several factors for switching services, some of them preliminary survey questionnaire.
(e.g. core service failures, failed service encounters, poor The preliminary questionnaire was pre-tested in a pilot
service recoveries) associated with feelings of dissatisfaction. study. The sample for this pilot was drawn from part-time
Athanassopoulos et al. (2001) substantiated this basic (executives) post-graduate students, since their profile in
suggestion with empirical results, which indicated that terms of age (ranging from 27 to 39 years) resembled closer to
customer dissatisfaction leads to switching behavior. the profile of the targeted population from which the data
Nevertheless, despite the importance of the topic, the only would be collected. Research studies have shown that the
empirical evidence reporting on consumer’s decision to buy heaviest Greek internet users fall in the 24-35 age group
more from an online retail store comes from the Boston (Observatory for the Greek Information Society, 2007).
Consulting Group’s study (2001), which showed that satisfied This pilot study revealed the need to make only some minor
customers intend to make more on line purchases. We, fine-tuning on some of the items. No concerns were raised
therefore, suggest that: regarding the content validity of each scale. Then, the main
H2. E-service quality has a positive: (a) direct effect and (b) study followed. Respondents were invited to recall the most
indirect effect through e-satisfaction on consumers’ recent purchase they had made and answer the questions
behavioral intentions, expressed in terms of word-of asked in the questionnaire with that particular site in mind.
mouth, site revisit, and purchase intentions. The variables employed are discussed in the following section
(see appendix for the items of all study measures).

E-service quality
Research methodology The measurement was based on the WEBQUAL scale
suggested by Barnes and Vidgen (2001a, b). It comprises
Sample and data collection three quality elements, namely, usability, information, and
The data reported here were derived from 240 online interaction. However, based on the literature review we
interviews. Following Szymanski and Hise (2000), an online considered two additional parameters, Aesthetics and After-
methodology was preferred rather than traditional Sales Service, since recent empirical studies (Lee and Lin,
administration methods (e.g. mail survey, random digit 2005; Trocchia and Janda, 2003; Zeithaml at al., 2000;
dialing, or mall intercept) for several reasons that the Boston Consulting Group, 2001; Collier and Bienstock,
authors explicitly and thoroughly discuss in their study. 2006) provide compelling evidence that both these two
More specifically, the leading internet provider in Greece parameters are significant components of perceived e-service
allowed access to a randomly drawn representative sample of quality.
internet users, as derived from its database. This process In order to examine the psychometric attributes of the
generated a sample of 1,052 online shoppers who were measure, the sample was randomly split in two halves. Using
qualified to participate in the survey. To these individuals, we the first half an exploratory factor analysis (EFA) was ran
e-mailed the main survey’s instrument as attachment. A total resulting in four factors namely information, usability-user
of 240 fully completed questionnaires were received, a friendliness, adaptation-user interaction and site’s aesthetics.
response rate of around 24 percent, which is very close to These four factors accounted for approximately 66 percent of
similar online research efforts (e.g. Gounaris and Dimitriadis, total variance in the original variables. Interestingly enough,
2003; Srinivasan et al., 2002). the items intended to measure after-sales-service loaded in

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An examination of the effects of service quality Journal of Services Marketing
Spiros Gounaris, Sergios Dimitriadis and Vlasis Stathakopoulos Volume 24 · Number 2 · 2010 · 142 –156

multiple factors and, one-by-one, they were all eventually results of this analysis are presented in Table II. With regard
eliminated before the four factors solution could be derived. to the satisfaction from the process with the e-store
Then, using the second half of the sample, confirmatory experience, again, four items were employed to
factor analysis (CFA) was employed in order to test for conceptualize the notion and a ten-point measurement was
discriminant and convergent validity of the measure. In doing used. Results from CFA prove that the measure is both
so two alternative models were considered, as suggested by unidimensional and reliable (see Table II).
Bollen and Long (1992): the original one consisting of the five
elements and the one that the EFA had derived. Table I is Behavioral intentions
informative of the two solutions. Three behavioral intentions were considered in this study,
As can be seen from Table I, the four factor solution is namely word-of-mouth (WOM), site revisit and purchase
superior in representing the data. Therefore, discriminant as intentions.
well as convergent validity was assessed only for this solution. With regard to WOM, a four items, five-point degree of
In doing so we calculated the average variance extracted agreement, scale was employed. Intention to revisit the
(AVE) for each factor (Fornell and Larcker, 1981). Then, particular site for which the respondent was filling the
convergent validity is established if the shared variance questionnaire in order to make electronic purchases, was
accounts for 0.50 or more of total variance. Discriminant measured with a three items, on a five-point degree of
validity, on the other hand, is evident when AVE for each agreement, scale. Finally, the intention of the respondent to
construct is greater than the squared correlation between that
direct more of his/her purchases through e-stores rather than
construct and any other construct in the model. Table I is also
traditional “brick and mortar” outlets was assessed using a
informative of the results regarding this assessment. As it can
three items, five-point degree of agreement, scale. For each of
be seen from Table I, the four factor solution exhibits both
the three measures, CFA was employed to assess their
convergent and discriminant validity. Finally, internal
dimensionality. The results of this analysis are presented in
consistency was assessed by means of the Cronbach’s alpha
Table II.
coefficient (Nunnally, 1988). That is, the ability of the
measure to yield consistent results, since even a highly
unidimensional scale would be of very little use if the resultant Data analysis
aggregate score is ascertained basically by measurement error.
Again, from Table I it can be seen that all four dimensions Table III shows means, standard deviations, intercorrelations,
well exceeded the minimum acceptable threshold (0.75). variances and covariances for the summated scales. Note that
Thus, we proceeded to derive the four aggregated scales for the standard deviations range from 0.77 to 1.73, indicating a
e-service quality, namely information, user friendliness, substantial amount of variance in the responses for most of
adaptation-user interaction and site’s aesthetics as well as the variables measured in the study.
the overall measurement (e-service quality), the latter being Table III is also informative of the correlations between the
the aggregation of the four elements that the measure investigated constructs, which in turn provides a preliminary
purification process had evidenced. way to test the hypotheses.
Based on the correlation coefficients, the hypotheses put
E-satisfaction forward are supported. However, for a much more robust
As explained in the conceptual background section, two examination of the hypotheses a path model was developed
aspects of satisfaction were investigated: satisfaction with the (see Figure 2) which was examined using structural equation
e-encounter and satisfaction with the process. As far as the modeling techniques. More specifically, the model presented
satisfaction with the encounter, four items were employed and in Figure 2 (proposed model) was examined using path
respondents were asked to use a ten-point scale (anchored analysis with AMOS. Yet, an emerging consensus in structural
1 ¼ totally dissatisfied, 10 ¼ totally satisfied) to indicate their equations modeling is that researchers should compare rival
degree of agreement with each item. CFA was employed in models, not just test a proposed model (Bollen and Long,
order to examine the dimensionality of the measure. The 1992).

Table I Psychometric properties of the scales measuring perceived service quality


Originally hypothesized dimensions of
perceived e-service quality Model prognosticated by the EFA
AVE (Corr)2 Alpha AVE (Corr)2 Alpha
Information 0.54 0.52 0.88 0.70 0.42 0.88
Usability – user friendliness 0.53 0.48 0.88 0.68 0.42 0.88
Interaction – adaptation 0.61 0.40 0.84 0.72 0.35 0.84
Aesthetics 0.62 0.44 0.89 0.69 0.36 0.89
After-sales service 0.52 0.53 0.76
GFI 0.844 0.921
CFI 0.885 0.948
RMSEA 0.070 0.050
Notes: Alpha ¼ Cronbach’s alpha coefficient; AVE ¼ Sl2/(Sl2+S1ij) ¼ average variance extracted; (Corr)2: the highest squared correlation between the
factor of interest and all remaining factors; convergent validity is evident if AVE . 0.50; discriminant validity is evident when AVE/(Corr)2 . 1

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Table II Assessment of dimensionality and internal consistency for behavioral intentions and customer satisfaction measures
Behavioral intentions E-satisfaction
AVE (Corr)2 Alpha AVE (Corr)2 Alpha
Word-of-mouth 0.58 0.53 0.80
Purchase intentions 0.61 0.50 0.79
Site revisit 0.55 0.53 0.78
Encounter satisfaction 0.59 0.06 0.861
Process satisfaction 0.78 0.06 0.903
GFI 0.94 0.96
CFI 0.96 0.98
RMSEA 0.07 0.06
Notes: Alpha ¼ Cronbach’s alpha coefficient; AVE ¼ Sl2/(Sl2+S1ij) ¼ average variance extracted; (Corr)2: the highest squared correlation between the
factor of interest and all remaining factors; convergent validity is evident if AVE . 0,50; discriminant validity is evident when AVE/(Corr)2 .1

Table III Correlation/covariance matrix


Mean SD SE SP I UF A Ae WOM PI SR
Satisfaction with encounter (SE) 7.15 1.73 2.90 * 0.25 0.58 0.51 0.54 0.50 0.47 0.32 0.11þ
Satisfaction with process (SP) 4.01 0.73 0.32 0.53 * 0.45 0.39 0.34 0.25 0.35 0.33 0.30
e-QUAL: information (I) 4.67 0.96 0.97 0.32 0.93 * 0.56 0.55 0.55 0.55 0.42 0.20
e-QUAL: user friendliness (UF) 4.20 0.77 0.68 0.22 0.42 0.59 * 0.51 0.55 0.45 0.36 0.18
e-QUAL: adaptation (A) 4.11 1.21 1.12 0.29 0.63 0.47 1.44 * 0.49 0.57 0.51 0.21
e-QUAL: aesthetics (Ae) 4.52 1.00 0.86 0.18 0.54 0.42 0.59 0.10 * 0.47 0.39 0.18
Word-of-mouth (WOM) 4.03 1.68 1.36 0.43 0.89 0.58 1.15 0.79 2.82 * 0.62 0.30
Purchase intentions (PI) 3.99 1.30 0.73 0.31 0.52 0.36 0.80 0.50 1.35 1.70 * 0.34
Site revisit (SR) 2.82 1.03 0.20 0.15 0.20 0.14 0.26 0.19 0.52 0.45 1.06 *
Notes: *Correlations are above the diagonal, variances are on the diagonal and covariances are below the diagonal; +Indicates non significant correlation. All
other correlations are significant at 0.010 or better

Note, that our model posits that e-service quality and e- As can be seen in Table IV, both alternative models result in
satisfaction influence behavioral intentions, with e-service a statistically significant worsening of fit and, thus, we reject
quality having both a direct and an indirect (through them both while accepting the superiority of the one we had
satisfaction) effect. Thus, a central nomological status for e- originally conceptualized.
service quality is implied. A first rival view is one that implies Having established the superiority of the proposed model,
no direct effects from e-service quality to behavioral the focus was shifted on the investigation of the hypotheses.
intentions. This model (model B) is implied in the quality H1 stated that e-service quality has a positive effect on e-
literature (e.g. Baker and Crompton, 2000), since it has been satisfaction. According to the findings of this study that are
evidenced that increased levels of quality lead to increased presented in Table V, customer satisfaction with the
encounter and with the process is directly and positively
levels of satisfaction which, in turn, influences behavioral
influenced by e-service quality (0.69), supporting thus H1.
intentions. A second alternative view (model C) would be one
H2 investigated the direct and indirect (through
suggesting only direct paths from the antecedents to the
satisfaction) effects of e-service quality on the consumer’s
outcomes, thereby making e-satisfaction nomologically behavioral intentions. Again, according to Table V, this
similar to e-service quality. This view is based on the fact hypothesis is also supported since e-service quality appears to
that quality is a totally different notion from satisfaction, influence behavioral intentions both directly (0.70) and
which is also well documented in the literature (e.g. Oliver, indirectly through satisfaction (indirect effect 0.69; total
1997). The two rival models are also presented in Figure 2. effect 0.90). Interestingly enough, the behavioral intentions
Table IV summarizes the comparison between the proposed reflect significantly all three parameters investigated in the
and the rival models. The comparison between the three study, namely site revisit (0.75), word-of-mouth
models is done on a pair basis comparing the proposed model communication (0.57), and repeat purchase (0.52).
vis-à-vis each alternative shown in Figure 2. To do this we
nested models B and C within the proposed model and use
the Dx2 statistic as well as the Akaike Information Criterion Conclusion
(AIC), an alternative to the conventional x2 test (Burnham The development of e-commerce and the challenge of
and Anderson, 1998), which adjusts model chi-square to building sustainable competitive advantage on the net create
penalize for model complexity (that is, for lack of parsimony the necessity to better understand how consumers perceive
and over-parameterization). and react to e-companies’ offerings. In this context,

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Figure 2 Proposed and rival models of the study

Table IV Examination of competing models Table V Results of the hypothesized model (proposed model)
Proposed model Model B Model C Proposed model
CFI 0.97 0.89 0.86 Path Estimatea
GFI 0.95 0.91 0.89 E-satisfaction N Perceived e-service quality 0.69
AGFI 0.91 0.83 0.80
Behavioral intentions N Perceived e-service quality 0.70
RMSEA 0.07 0.12 0.14
Behavioral intentions N E-satisfaction 0.21
x2/df 52.9/23 117.63/24 145.3/25
Interaction/adaptation N Perceived e-service quality 0.72
Dx2/Dd.f./sign 64.68/1/0.000 97.41/2/0.000
AIC 96.95 159.63 325.49 Aesthetics N Perceived e-service quality 0.66
Information N Perceived e-service quality 0.78
User friendliness N Perceived e-service quality 0.71
Word-of-mouth communication N Behavioral intentions 0.57
constructs such as perceived service quality, satisfaction and Site revisit N Behavioral intentions 0.75
their consequences need to be re-examined, as the web
Purchase intentions N Behavioral intentions 0.52
constitutes a different shopping environment compared to
traditional bricks-and-mortar sales outlets (Hoffman and Satisfaction with process N E-satisfaction 0.51
Novak, 1996). Satisfaction with encounter N E-satisfaction 0.72
Existing research has mainly focused on e-service quality Notes: GFI: 0.95; AGFI: 0.91; CFI: 0.96; PCFI: 0.61; TLI: 0.95; RMSEA: 0.07;
and much less on satisfaction and behavioral intentions. a
Values represent standardized regression values; all estimates have a
Furthermore, in most of the existing research the effects of critical ratio . 1,96 suggesting that they all are significantly different from
service quality and satisfaction on behavioral intensions have zero at the 0.05 level or better
been tested separately. However, some evidence supports the

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existence of more complex relationships among these reductions. In fact, in their search of cost reduction and
variables and the benefits of accounting for both direct and efficiency most brick-and-mortar companies seek to shift
indirect affects of service quality and satisfaction on behavior transactions online.
(Cronin et al., 2000; Iacobucci et al., 1994; Shamdasani et al., In addition, the findings of the present study showed that
2008; Lee and Lin, 2005). Hence, the objectives of the word-of-mouth, a powerful mean to create awareness, positive
present study were to investigate the constructs of service image and thus to attract new customers, was also a strong
quality and satisfaction in online shopping context and to consequence of e-quality and satisfaction. This is important
establish causal direct and indirect relationships between news for managers since satisfied customers do become, in
them and specific behavioral intentions of e-shoppers. Our the online markets, advocates of the company. As they are a
findings both support and extend existing knowledge on these very credible communication source to other customers, their
issues leading to several managerial implications and opening recommendation will have a strong effect on bringing more
new directions for future research. visitors to the site.
Concerning the direct effects of service quality, the study Finally, our findings suggest that ensuring high quality of
identified four key drivers of e-service quality, namely user the online presence of the company and positive experiences
friendliness, information, adaptation and aesthetics that with the encounter and process of buying online may
impact significantly satisfaction from e-shopping. This result constitute a fundamental way to motivate customers to buy
confirms consumer behavior literature suggesting that more online. Traffic and online sales development seem thus
cognitive evaluations precede emotional responses and that to be a function of how easy, pleasant and efficient (in terms
quality is a strong antecedent of satisfaction of accomplishing quickly all they need to do on-line)
(Athanassopoulos, 2000; Sivadas and Prewitt, 2000; Rust customers perceive the e-shopping experience.
and Oliver, 1994). More specifically, satisfaction with the
encounter (i.e. the interaction experience with the e-shop),
Managerial implications
appeared to be more strongly linked to quality than did
satisfaction with the process. These relationships add to the The results of the current research study provide several
understanding of satisfaction with electronic encounters as implications for individuals managing e-retail operations.
they allow for a more analytical and comprehensive First, marketers should carefully consider their web site’s
measurement and monitoring of satisfaction. At the same attributes. For example, if marketers want consumers to have
time they underline the importance of the interaction between a positive experience with their sites, they may want to adorn
the company and the customer for the later to get a positive their sites with pleasant and enjoyable stimuli to make them
experience. attractive. In addition, they should make their sites easy-to-
Furthermore, the direct relationship between e-service use and easy-to-navigate. Furthermore, marketers should
quality and behavioral intentions showed to be stronger than place extra emphasis on providing fast, accurate, and
that between e-satisfaction and behavioral intentions. This uncluttered information through their web sites. Finally,
finding underlines the crucial impact of the four key e-service marketers rather then designing static web sites, they should
quality drivers on the entire cycle of buying, including post- design sites that interact with the consumers and adjust to
purchase behavior, confirming existing evidence in both off their needs.
and on line context (Parasuraman et al., 1988, 1991; Second, managers should develop customer-oriented
Zeithaml, 2000; Keaveney and Parthasarathy, 2001; Smith strategies at the post-purchase stage of the consumer’s
and Sivakumar, 2002). Moreover it demonstrates that quality decision process. That is, marketing activities should be
and satisfaction impact behavioral intentions collectively and designed to increase customer satisfaction. In particular, to
that their effect should be assessed simultaneously. enhance satisfaction from e-shopping, managers should pay
In addition to the direct effects, our findings indicate the close attention to the service encounter incidents (e.g. form
indirect effects of e-service quality on behavioral intentions, and content information, customization possibilities). For
through the two components of satisfaction. The instance, an e-retailer of clothing merchandise could enable a
identification of such effects allows for a more complex but customer to custom fit a product to a simulated image of his/
also more holistic view of how these constructs interact. It also her body. This type of customization could be proven very
suggests that models of online consumer behavior, which do effective of enhancing customer satisfaction.
not account for such effects, may capture only a part of the Third, e-managers can induce consumers to visit their sites
e-shopping reality (Hackman et al., 2006). more often. This objective can be achieved by different types
Focusing on the results concerning the behavioral of actions. For example, e-consumers can receive price
intentions we investigated, our study indicates that by incentives, exclusive offers, special promotions, and product/
ensuring a high level of e-service quality managers will be service advantages.
able to trigger positive consumers’ reactions that are key for Forth, companies should reinforce WOM activities from
e-shops’ sustainable development. In fact, it has been widely satisfied customers. More specifically, companies could
suggested that key success factors for online companies are enhance its impact and effectiveness by facilitating or even
based on developing brand awareness, building customer rewarding such behavior. For instance, they can make
loyalty and reducing operating costs (Porter, 2001; Zeithaml available on their sites possibilities such as “tell a friend”
et al., 2002). e-mailing, “share your opinion” sections, “send a discount
More specifically, the findings showed that high quality and coupon to a friend” or “let a friend know about a special
satisfaction result in revisiting the web site. This means that offer” actions, and “get a premium service for sending us a
not only the identified e-service quality drivers built loyalty new customer”.
but that they may convert traditional shoppers to electronic Finally, e-marketers should measure, track, and benchmark
shoppers, thus allowing for potential operational cost overtime their e-retailing activities vis-à-vis their competitors,

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in order to identify their competitive strengths and weaknesses consequences. Future research should try to replicate this
from the consumers’ standpoint in the areas of e-service study in other national and cultural contexts, in order to be
quality and e-satisfaction. This information will help able to generalize its results.
managers make the necessary improvements in their online
presence.
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Spiros Gounaris, Sergios Dimitriadis and Vlasis Stathakopoulos Volume 24 · Number 2 · 2010 · 142 –156

About the authors eventually their loyalty. After all, poor service quality has
been shown to account for 80 percent customer complaints
Spiros Gounaris is Associate Professor of Marketing at the about e-tailers.
Department of Marketing and Communication of the Athens In “An examination of the effects of service quality and
University of Economics and Business. His research interests satisfaction on customers’ behavioral intentions in
pivot around the areas of services marketing, satisfaction and e-shopping” Spiros Gounaris, Sergios Dimitriadis and Vlasis
loyalty, service quality, tourist marketing, B2B marketing and Stathakopoulos say constructs such as perceived service
market orientation development. His work has appeared into quality, satisfaction and their consequences need to be re-
various journals including the Industrial Marketing examined as the internet constitutes a different shopping
Management, the European Journal of Marketing, the Journal environment compared with traditional bricks-and-mortar
of Product Innovation Management, the Journal of Services sales outlets.
Marketing, the Journal of Business Research and others. He is a The study, which demonstrates that quality and satisfaction
member of the editorial board of the Journal of Service impact on behavioral intentions collectively and that their
Research and the Industrial Marketing Management. Spiros effect should be assessed simultaneously, identified four key
Gounaris is the corresponding author and can be contacted drivers of e-service quality, namely user friendliness,
at: sgounar@aueb.gr information, adaptation and aesthetics that impact
Sergios Dimitriadis is Assistant Professor of Marketing at significantly satisfaction from e-shopping. This confirms the
the Department of Marketing and Communication of the view that cognitive evaluations precede emotional responses
Athens University of Economics and Business. His research and that quality is a strong antecedent of satisfaction. More
interests pivot around the areas of e-marketing, branding and specifically, satisfaction with the encounter (i.e. the
services. His work has appeared both in English and French interaction experience with the e-shop), appeared to be
marketing journals, such as Recherche et Applications en more strongly linked to quality than did satisfaction with
Marketing, European Journal of Marketing, Journal of Business the process. These relationships underline the importance of
Research, and Journal of Services Marketing. the interaction between the company and the customer for the
Vlasis Stathakopoulos is Associate Professor of latter to get a positive experience.
Marketing at the Department of Marketing & By ensuring a high level of e-service quality managers will
Communication at the Athens University of Economics be able to trigger positive consumers’ reactions that are key
and Business. He has published in the Journal of for e-shops’ sustainable development. In fact, it has been
Marketing, Journal of Personal Selling and Sales widely suggested that key success factors for online
Management, European Journal of Marketing, Journal of companies are based on developing brand awareness,
Marketing Management and various research proceedings. building customer loyalty and reducing operating costs.
His research interests include marketing management and More specifically, the findings showed that high quality and
strategy, sales management, services marketing and satisfaction result in revisiting the web site. This means that
consumer satisfaction and loyalty. not only do the identified e-service quality drivers build
loyalty but they may convert traditional shoppers to
Executive summary and implications for electronic shoppers, thus allowing for potential operational
managers and executives cost reductions. In fact, in their search of cost reduction
and efficiency, most brick-and-mortar companies seek to
This summary has been provided to allow managers and executives shift transactions online.
a rapid appreciation of the content of the article. Those with a Word-of-mouth was also a strong consequence of e-quality
particular interest in the topic covered may then read the article in and satisfaction. This is important news for managers since
toto to take advantage of the more comprehensive description of the satisfied customers do become, in the online markets,
research undertaken and its results to get the full benefit of the advocates of the company. As they are a very credible
material present. communication source to other customers, their
recommendation will have a strong effect on bringing more
Shopping in the virtual world seems to have been around so visitors to the site.
long it hardly merits the description “new” technology. Yet Marketers should carefully consider their web site’s
compared with the bricks-and-mortar shops it is still in its attributes. For example, if they want consumers to have a
infancy. The benefits of shopping around at the click of a positive experience, they may want to adorn their sites with
mouse, and ordering and paying for goods without getting pleasant and enjoyable stimuli. In addition, they should
out of your chair is welcome but e-retailers need to better make their sites easy-to-use and easy-to-navigate.
understand how customers perceive and react to their Furthermore, marketers should place extra emphasis on
offerings if they are to build sustainable competitive providing fast, accurate, and uncluttered information – and
advantage – getting e-shoppers to come back for more rather then designing static web sites, they should design
and give favorable reports of the business to relatives and sites that interact with the consumers and adjust to their
friends. needs.
To be successful in a fiercely competitive e-environment, Managers should develop customer-oriented strategies at
e-companies need to develop an appropriate differentiating the post-purchase stage of the consumer’s decision process.
strategy. A key component of such a strategy needs to focus That is, marketing activities should be designed to increase
on services and relationships that demonstrate a company’s customer satisfaction. In particular managers should pay
appreciation of its customers. E-companies must deliver close attention to the service encounter incidents (e.g. form
superior service experiences to their customers if they want and content information, customization possibilities). For
to earn their businesses, their repeat patronage, and instance, an e-retailer of clothing merchandise could enable

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Spiros Gounaris, Sergios Dimitriadis and Vlasis Stathakopoulos Volume 24 · Number 2 · 2010 · 142 –156

a customer to custom fit a product to a simulated image of “let a friend know about a special offer” actions, and “get a
his/her body. This type of customization could be a very premium service for sending us a new customer”.
effective way of enhancing customer satisfaction. Finally, e-marketers should measure, track, and benchmark
E-managers can induce consumers to visit their sites more over time their e-retailing activities vis-à-vis their competitors,
often. E-consumers can receive price incentives, exclusive in order to identify their competitive strengths and weaknesses
offers, special promotions, and product/service advantages. from the consumers’ standpoint in the areas of e-service
quality and e-satisfaction. This information will help
Companies should reinforce WOM activities from satisfied
managers make the necessary improvements in their online
customers. More specifically, companies could enhance their presence.
impact and effectiveness by facilitating or even rewarding such
behavior. For instance, they can make available on their sites (A précis of the article “An examination of the effects of service
possibilities such as “tell a friend” e-mailing, “share your quality and satisfaction on customers’ behavioral intentions in
opinion” sections, “send a discount coupon to a friend” or e-shopping”. Supplied by Marketing Consultants for Emerald.)

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