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Customer Satisfaction in online shopping: A Case Study on Bangladesh

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 The Proceedings of the 2nd International Conference on Business and Management (ICBM 2019)

Customer Satisfaction in online shopping: A Case Study on Bangladesh

Asma Sadia1, Md. Atiqul Hoq2, Shermin Akhter Jebu3
1,2
Student, Faculty of Business Studies, Bangladesh University of Professionals, Dhaka, Bangladesh
3
Student, Faculty of Business Studies, University of Dhaka, Dhaka, Bangladesh
1
askajory2@gmail.com, 2atiqulhoq403@gmail.com, 3sherminahoque11@gmail.com

Paper ID: ICBM-19-0301

Abstract- Online shopping is one of the fast-growing B. Significance of the study

trends in the world and number of online businesses is
growing rapidly in Bangladesh. In spite the numbers of
internet users is growing, the number of online shoppers
has not increased. The online shopping industry is the
future of regular businesses and to develop this
economically potential industry, traders should satisfy
consumers with additional benefits. The paper focused on
five variables to measure the customer satisfaction towards
online shopping. The population of this research is the
customers of online businesses from Bangladesh. The
samples are collected from four cities of Bangladesh. We
have gained potential information of the customer
experience about online shopping and marked major
problems and barriers. The study can help the practitioners
and entrepreneurs regarding sophisticated customer online
shopping experience. Further research can be applied to
examine other variables that affect customer satisfaction
towards online shopping using different context-based
products.
The research has several dimensions and by this
research, we have gained some potential information of
the customer experience about online shopping and what
are the problems and barriers and how to overcome it.
Moreover, this research has also found the level of
customer expectation and behavior regarding e-
commerce stores. This report has the potentiality to help
the practitioners regarding the very topic of customer
experience. It has the clear knowledge about how the
survey has found the customer perceptions and executes
the result to convey it to the generals who need the
research for their fair decision. Again based on the
results, this study offered some recommendation for
retailers to take initiatives for making online shopping
more admired and trustworthy. Furthermore, the paper
has been focused in finding the way towards customer
satisfaction as their experience leads them to it.

Keywords-Complain settlement, customer satisfaction, II. LITERATURE REVIEW

product conformity, service quality, speed of delivery
I. INTRODUCTION
Online shopping is one of the fastest growing trends in
the world. Also online businesses are growing rapidly in
Bangladesh. Although the number of internet users has
been growing in the country but the number of online
shoppers has not grown to that extent. Online shopping
has great economic prospect. Online traders should
understand the scope of the industry and for developing
this economically potential industry in the country
traders should realize that determinants of success not
only depend on website presence, low price and product
variety but also depend on service quality. The consumer
should be satisfied with the additional benefits he/she
would receive from shopping online to switch to online
shopping [1].
A. Objective of the study
This paper is prepared primarily to fulfill the study of
“Customer Satisfaction in online shopping: A case study
on Bangladesh”. The paper also tried to find out the
customers satisfaction level for services provided by the
online shopping sites or businesses, to explore the
reasons why despite increase in the number of internet
users, online shoppers has not been increased and to put
forward some recommendations to the online sellers in
order to improve the current situation.
Internet has made people’s life easier by decreasing the
time and effort to get things done. It has opened a new
dimension that helps people to look at various products
and prices while comparing those choices with each
other to make their purchase decision staying at their
homes.
A. Online Businesses in Bangladesh
Bangladesh is a late entrant in online businesses
compared to other countries. Yet, this sector observed
tremendous growth within a short time. There are around
1000 websites and 15,000 Facebook Pages (companies)
currently operating in Bangladesh.
In recent times approximately 30,000 parcels and about
200,000 orders have been placed daily through internet.
On an average, products worth about Tk. 3-4 crore are
sold every day through online business websites [2].
B. Online Shopping and Customer Satisfaction
Customer satisfaction towards online shopping depends
on many factors. Some of them are- the reputation online
store, on time delivery and service quality, trust,
reliability, privacy, ease of transaction and affordability,
offers, web-site design and ease of access, online
interactivity, responsiveness, consumer risk assessment,
compatibility and convenience etc.

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 The Proceedings of the 2nd International Conference on Business and Management (ICBM 2019)
Researches over the past two decades has demonstrated
that service quality influences consumption decisions,
but only recently these findings have been applied to e-
commerce [3]. Other studies have found that the
satisfaction of customers depend on online store features
when it comes to evaluating performance of e-commerce
businesses [4]. People find it more convenient if the
information they look for is readily available. Customer
satisfaction is known to be affected by the depth and ease
of gathering information from a website [5].
A research stated that online shopping contains risks
such as financial, product, non-delivery, convenience
etc. which can demotivate people to buy from e-
commerce stores [6]. If the apparent uncertainty is higher
there is a greater chance of people shifting to physical
stores and not purchase from online companies.
From the above discussions we can come to a conclusion
that along with other variables service quality, speed of
delivery, price, product conformity, complain settlement
are the major forces that drive customer satisfaction
towards online shopping.
III. METHODOLOGY
The nature of this research is descriptive and the goal of
this research is to discover the consumer’s satisfaction
towards online shopping in Bangladesh. Descriptive
research is used for describing characteristics of any
population, phenomenon and organizations. A
quantitative analysis has been used to analyze the
research data. All questions are close ended because all
possible answers were given to the respondents and such
questions are easy to use, reduce interviewer bias and
reduce respondent bias.
A. Respondents & Sampling Procedures
The research population constituted of urban people
from Dhaka, Chittagong, Sylhet and Khulna in
Bangladesh. Among this population who have purchased
online are included in the sampling framework of the
study. However, nonprobability convenience sampling
method has been applied to conduct the research as there
is no database containing the list of online shoppers in
Bangladesh. The convenience sampling method was
used for measuring the customer satisfaction towards
online shopping. The criteria for selecting the sample
respondents were that they have internet connection with
some online purchase experience. This survey is carried
out in two different modes such as offline (hard copy
mode) and online to distribute the questionnaires to the
respondents. The hard copies were handed over to the
respondents with a brief introduction of the research
topic. The online mode of questionnaire was distributed
social networks to friends and peers with the help of
Google Form, who further relayed the questionnaire to
their peers.
B. Research Instrument/Questionnaire
A survey questionnaire was developed to conduct the
research process. An iterative process has been followed
to design the questionnaire. The questionnaire includes
ISBN 978-984-344-3540
statements which have been used in previous research
materials to measure the opinion toward online shopping.
Few more questions were added along with these
questions considering the nature of online shopping in
Bangladesh. While doing so, interviews with a
judgmental sample of online shoppers were conducted to
gather knowledge from their experiences. The
questionnaire consisted of 20 close ended questions for
this research. There are three main sections in the
questionnaire which is Section A, Section B and Section
C. Section A, indicating demographic information:
respondent’s gender, age, education level, income.
Section B is about the level of understanding of online
shopping and Section C indicating factors affecting
customer satisfaction which is product quality, service
quality and shopping experience. In this paper, some
basic questions followed the simple attitude scale for
survey. However, mostly Likert scale was used for
measuring attitude of the respondents. Respondents
indicated their own perspective by checking how
strongly they agree or disagree with the statement.
C. Collection of Data
In this research, both primary and secondary sources
were used to collect information. Relevant books,
journals, research paper and websites were used to
collect secondary data. Personal shopping experience,
observations and interaction with the customers through
the use of questionnaire played a big role for primary
data. 225 responses were collected by hard copy of the
questionnaire and with the help of Google form.
IV. STATISTICAL TREATMENT OF DATA
The data have been analyzed by using IBM SPSS
Statistics 20 software. Some chart and tables have been
used to examine the collected information and give
visible representation of the study.
A. Demographic Characteristics Analysis
The primary data are collected from 225 respondents
from four divisional cities of Bangladesh (Dhaka,
Chittagong, Sylhet and Khulna). The demographic
attributes of the sample respondents are as follows:
TABLE 1:
PLEASE INDICATE YOUR GENDER.
Valid Cumulative
Frequency Percent
Percent Percent
Female 95 42.2 42.2 42.2
Male 130 57.8 57.8 100.0
Total 225 100.0 100.0
Among the 225 respondents 130 are male and 95 are
female respondents.
182
 The Proceedings of the 2nd International Conference on Business and Management (ICBM 2019)

TABLE 2 The analyzed data shows that the most of the customers
have low trust level on stores and this also indicates that
WHICH OF THE FOLLOWING AGE GROUPS DO YOU
BELONG TO? the customers are not very satisfied with the behavior of
the online shops due to low trust and this is the most
Frequency Percent
Valid Cumulative faced barrier for the highest number of respondents.
Percent Percent
18-25 143 63.6 63.6 63.6
C. Customer Satisfaction
26-35 74 32.9 32.9 96.4
36-45 7 3.1 3.1 99.6 In this section of the report we tried to focus on the
46 and
1 .4 .4 100.0
factors that are straightly related to the customers’ level
above of satisfaction and being a loyal customer to the online
Total 225 100.0 100.0
stores. These factors not only say that a customer is
satisfied or not but also indicates that the customers
Online shopping is more popular among young adults repurchase and loyalty depends on them. The questions
(18-25) generation as they like using the internet more for these variables are designed in five point Likert scale
than other age groups above 18. Among 225 respondents,
where 1=strongly disagree, 2=disagree, 3=neutral,
125 bachelor degree holders is the major group.
4=agree and 5= strongly agree. This section has
designed with the factors namely service quality of the
B. Online Shopping Trends in Bangladesh
sellers, timely delivery of the products, price of the
Online shoppers in Bangladesh have been facing several products, products’ conformance and complaint
problems and barriers while shopping online. This
settlement procedure of the online stores.
section has focused on those problems and barriers that
have higher possibility to occur while customers shop In the survey for this paper people are mostly stayed
online and those which may have a relation with with the neutral position against their satisfaction in
customer satisfaction. The analyzed data shows that no terms of price.
availability of quality goods and services is the most
faced problem by the online shoppers and this has the TABLE 5
highest percentage. This is also an indicator that
Bangladeshi customers for online shops are not satisfied The Service Quality of Sellers Is Important.
Valid Cumulative
because of the lacking in availability of quality goods and Frequency Percent
Percent Percent

services and this might lead to a negative consequence Strongly

16 7.1 7.1 7.1
for the online shop owners. disagree
Disagree 5 2.2 2.2 9.3
Neutral 22 9.8 9.8 19.1
TABLE 3 Agree 80 35.6 35.6 54.7
Strongly
What Kind of Problems Do You Face While Online Shopping? 102 45.3 45.3 100.0
agree
Total 225 100.0 100.0
Responses Percent of TABLE 6
N Percent Cases
Product did not arrive at all 28 9.8% 12.4% So Far, You Are Generally Satisfied With The Service Quality
Product arrive in damage Among These Online Shops
32 11.2% 14.2%
condition
Wrong products were sent 32 11.2% 14.2%
Cumula
Not quality goods & Valid
142 49.7% 63.1% Frequency Percent tive
services Percent
Percent
Others 52 18.2% 23.1%
Total 286 100.0% 127.1% Strongly
14 6.2 6.2 6.2
disagree
Disagree 33 14.7 14.7 20.9
Neutral 92 40.9 40.9 61.8
Agree 76 33.8 33.8 95.6
TABLE 4 Strongly
10 4.4 4.4 100.0
agree
Total 225 100.0 100.0
What Are The Barriers That Keep You Away From Online Shopping?

Responses Percent of
N Percent Cases TABLE 7
Safety of payment 55 16.3% 24.4%
Low trust level on online SO FAR, YOU ARE SATISFIED WITH THE SPEED OF
150 44.5% 66.7%
store DELIVERY FOR ONLINE SHOPS.
VAT, Customs Duty 26 7.7% 11.6% Valid Cumulative
High shipping cost 49 14.5% 21.8% Frequency Percent Percent
Percent
Delivery too slow 39 11.6% 17.3% Strongly
Others 18 5.3% 8.0% disagree
10 4.4 4.4 4.4
Total 337 100.0% 149.8% Disagree 37 16.4 16.4 20.9
Neutral 59 26.2 26.2 47.1
Agree 108 48.0 48.0 95.1

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 The Proceedings of the 2nd International Conference on Business and Management (ICBM 2019)

Strongly Agree 139 61.8 61.8 83.1

agree
11 4.9 4.9 100.0
Strongly
Total 225 100.0 100.0 agree
38 16.9 16.9 100.0
Total 225 100.0 100.0
Complaint settlement has relation to customers’
TABLE 8 satisfaction because most of the respondents agreed that
they will shop again from the same online store if they
SO FAR, YOU ARE GENERALLY SATISFIED WITH THE PRICE
AMONG THESE ONLINE SHOPS. handle the complaint with care. Most of the people
Valid Cumulative
agreed with the fact that they will return the product if
Frequency Percent
Percent Percent
they are not satisfied with it.
Strongly
disagree
14 6.2 6.2 6.2
Disagree 57 25.3 25.3 31.6
V. SUMMARY OF THE FINDINGS
Neutral 78 34.7 34.7 66.2
Agree 71 31.6 31.6 97.8 We have considered five common variables, namely,
Strongly
5 2.2 2.2 100.0 service quality, speed of delivery, price, product
agree
Total 225 100.0 100.0 compliance and complaint settlement of the online stores
to measure the customer satisfaction towards online
Product conformance has an influence on customer
satisfaction because most if the people agreed that the shopping in Bangladesh. We tried to identify the
difference between the customers’ expectation and the problems and barriers that are mostly faced by the
customers while shopping online along with the five
real product would influence the customers’ satisfaction.
factors. The problems included product did not arrive at
TABLE 9 all, product arrive in damage condition, wrong products
were sent, low quality goods and services and among the
THE DIFFERENCES BETWEEN YOUR EXPECTATIONS AND barriers included safety of payment low trust level of
THE REAL PRODUCTS WOULD INFLUENCE YOUR
SATISFACTION.
online store, VAT, customs duty high shipping cost and
delivery too slow. The key points of the findings are
Valid Cumulative shown below:
Frequency Percent Percent
Percent a. Service quality of the online shopping sites greatly
Strongly
disagree
7 3.1 3.1 3.1 influences the customer satisfaction level (Table-5
Disagree 31 13.8 13.8 16.9 and Table-6).
Neutral 55 24.4 24.4 41.3 b. Customers require on time delivery of the products.
Agree 89 39.6 39.6 80.9 They are satisfied if timely delivery is made (Table-
Strongly
agree
43 19.1 19.1 100.0 7).
Total 225 100.0 100.0 c. The price variable for identifying the customer
satisfaction level did not seem to bring enough light
to the situation and the resulted neutral (Table-8).
TABLE 10 d. Product conformance is important to the customers
and this is visible from Table-9.
YOU WILL BUY THE PRODUCTS AGAIN FROM A SAME
e. It is also visible from this study is that complaints if
SHOP IF YOU ARE SATISFIED WITH IT.
handled carefully can create greater customer
Valid Cumulative satisfaction and loyalty (Table-11).
Frequency Percent
Percent Percent
f. Customer satisfaction is a must for any traditional
Strongly business to progress and this is no different in case
5 2.2 2.2 2.2
disagree
Disagree 11 4.9 4.9 7.1 of online shopping. This study finds from table-10
Neutral 20 8.9 8.9 16.0 that satisfied customers will make repurchase from
Agree 133 59.1 59.1 75.1
Strongly
the same shop which might lead to customer loyalty
56 24.9 24.9 100.0 and this will help the online stores sustain and grow.
agree
Total 225 100.0 100.0
VI. CONCLUSION
TABLE 11
The paper was an overview of the factors that influence
IF AN ONLINE SHOP DEALS WITH YOUR COMPLAINTS customer satisfaction in online shopping in Bangladesh.
VERY WELL YOU WILL CONTINUE TO BUY SOMETHING Online shopping holds great potential for attracting
FROM IT.
customers all over Bangladesh, yet it is a challenging
Valid Cumulative
task to ensure and create a great place for addressing
Frequency Percent Percent different customer needs. Retaining customers is one of
Percent
Strongly
3 1.3 1.3 1.3 the most difficult jobs as the competition is very high. It
disagree
Disagree 12 5.3 5.3 6.7
is high time that we should try to find the reasons behind
Neutral 33 14.7 14.7 21.3 customer satisfaction as well as what really satisfies the

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 The Proceedings of the 2nd International Conference on Business and Management (ICBM 2019)

customers and for this purpose great amount of attention of Business and Management (IOSR-JBM), Vol.20,
is required to find the factors that the customers are Issue 3. Ver. 5 (March. 2018), PP 10-15, e-ISSN:
looking for and through this research we tried to focus on 2278-487X, p-ISSN: 2319-7668.
five major points: service quality, speed of delivery, [3] Yang, Z. and Jun, M. (2002), “Consumer perception
price, product compliance and complaint settlement that of e-service quality: from internet purchaser and non-
are found to be important in other studies conducted purchaser perspectives”, Journal of Business
before in different countries. Strategies, Vol. 19 No. 1, pp. 19-41.
VII. RECOMMENDATIONS
In this competitive era of online business Bangladeshi [4] Pagani, M. (2004). Determinants of adoption of third
online stores and Facebook shopping pages should keep generation mobile multimedia services.
a good harmony with the modern structures. Some [5] Jin, B., & Park, J. Y. (2006). The Moderating Effect
factors that Bangladeshi online entrepreneurs need to of Online Purchase Experience on the Evaluation of
look over are mentioned below: Online Store Attributes and the Subsequent Impact on
a. Delivery of better service and focusing on Market Response Outcomes.33.
improved customer experience should be [6] Bartley, C., & Steve, W. (2003). High growth in
increased. search creates opportunities for niche players.
b. The complaints made by the customers should
be attended without any delay to increase faith
in the shopping site.
c. Plans need to be developed to identify other
factors that affect customers’ satisfaction.
d. Since online shopping is a new sector for
Bangladesh so before entering into the
competition customers requirement must be
researched.
e. The online privacy and safety rules should be
maintained.
f. There should always be double checking to
ensure error free products go to customers.
g. More preference to website content should be
given so that customers have a clear idea of the
product they will be getting.

VIII. FURTHER STUDY

The samples employed are mostly student subjects,

which may not be the actual representative of the general
population of online shoppers. The analytical results
presented here thus may have limited generalizability.
Further research can be applied to examine other
variables that affect customer satisfaction towards online
shopping using the subjects that are regular online
shoppers, because online customer perceptions of
satisfaction are context-dependent and thus their
satisfaction variable may be related to specific products
and services. Since the sample was collected in
Bangladesh, generalizability to other countries might be
limited due to cultural differences in purchase behavior
and differences in other demographic conditions.

REFERENCES

[1] Xiaofen, J., Yiling, Z. (2009), The Impacts of Online

Word-of-Mouth on Consumer’s Buying Intention on
Apparel: An Empirical Study. International
Symposium on Web Information Systems and
Applications. p24-28.
[2] Md. Shafiqul Islam, (2018), E-Commerce In
Bangladesh: Growth And Challenges, IOSR Journal

ISBN 978-984-344-3540 185

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