FACTORS THAT INFLUENCED CUSTOMER SATISFACTION IN

ONLINE SHOPPING GROCERIES AMONG PEOPLE IN KOTA

BHARU, KELANTAN

By

WAN MUHAMMAD ADAM BIN WAN YUSOF

ROHAYU BINTI SABRI

MOHD AKMAL BIN MOHD HANAFI

BAVARATHANI A/P RAMU

Bachelor of Entrepreneurship (Logistics and Distributive Trade) with Honours

A report submitted in partial fulfilment of the

requirements for the degree of

Bachelor of Entrepreneurship (Logistics and and Distributive Trade) with Honours

Faculty of Business and Entrepreneurship

UNIVERSITI MALAYSIA KELANTAN

2022
TABLE OF CONTENT
LIST OF TABLES

LIST OF FIGURES
LIST OF SYMBOLS AND ABBREVIATIONS
ABSTRACT
 CHAPTER 1

INTRODUCTION

This chapter discusses the research background, problem statement, research objectives,
research questions, as well as the scope and significance of study customer satisfaction in
online shopping groceries among people in Kota Bharu. The chapter will start by discussing
the background of the study, to introduce the history of the main title. Then, the content will
follow by the subheadings. The subheadings are problem statement, research objective,
research question as a purpose to state a clear statement of the study. The content
continues with the significant of the study, the definition of the term, and closed with a
summary of the chapter.

1.1                Research Background

A measure of how satisfied your customers with your product or service is customer
satisfaction. There is no pressure, and for many businesses, it is the difference between
success and failure. Satisfaction with your customers is important because it helps you solve
problems, keep customers from leaving, and find satisfied customers who can become your
supporter. Customers are crucial to a business's existence and growth on the market.
Therefore, it stands to reason that businesses wishing to compete must offer valuable and
distinctive terms that meet the requirements of their customers. This satisfaction bound not
only the emotions that are associated with the purchasing procedure, but also the
atmosphere both before and after the purchase (Leninkumar, 2017).

 The trend of shopping online is expanding rapidly. A growing number of people shop online
to make purchases, get information about products, or just browse for fun. As a result, online
shopping environments are increasingly influencing the relationship between markets and
their customers. For example, online shopping divided into many categories which is
groceries, clothing, car accessories and many more. The goal of online shopping is to
provide customers with an easy way to shop. Customers will be able to save money and
time while also quickly retrieving all product information with just a few clicks. In addition,
they can shop whenever and whatever suits their needs and wants (Wai et al., 2019).

According to (Vasić et al.,  2019) online shopping gives customers more options, more
information, and more ways to compare prices and products. It also makes it easier and
more convenient for them to find the products they want online. It has been argued that
modern consumers who value speed and convenience find online shopping to be more
satisfying. When a consumer sees a banner ad or online promotion in online communication,
it can increase their interest in these particular products from advertisements. The customer
may seek assistance by seeking additional information prior t un o making a purchase
decision. They will look for them online, such as through online catalogs, websites, or search
engines, if there is insufficient information.

1.2                Problem Statement

Lack of information share by seller to shopper in online shopping is one of the problem that
all the customers arguing in these days. The shopping website itself sometimes vanishes. In
addition, the information about online payments is poor. Moreover, information of the details
of a product in online shopping also not much as the customer want. So it’s make hard to
customer to make their decision on buying things in online because of lack of information.
One of the reasons customers not prefer to shop online is that it is difficult to get product
information. Customers not able to search for product information with less effectiveness and
efficiency (Nabot et al., 2018).

Customer demand for high quality also another problem that faced by online shopping. The
quality of a company's customer service, but also advertising, packaging, product and
service features, ease of use, and dependability are all part of the customer experience.
However, very few of those in charge have given much thought to how each individual
decision affects the customer experience. No one more is in charge of overseeing
everyone's efforts, and even when they do think about it, they all have different ideas about
what customer experience and expecting high quality and fast delivery at low cost (Farah et
al., 2018).

The study stated, that lack of interaction between customer and seller is quickly called into
question when online shopping cannot deliver on promises of speed and time. Brands still
have time to improve their online shopping experiences even though if they have less
interaction with customer. However, each negative interaction of seller to customer only will
show the difficult task of gaining customer’s trust. For every business customer relationship
with seller is one of the key to the business be a success. So, the interaction between
shopper and seller is most important in online shopping to be success. To gain more
customers, organization or the seller must be active or give more interaction to the shopper
or customer (Kovalenko & Mazaheri, 2021).

1.3          Research Questions

1)  Is there any significant relationship between level of information sharing and customer
satisfaction in online shopping groceries among people in Kota Bharu ?

2)  Is there any significant relationship between the quality of information sharing and
customer satisfaction in online shopping groceries among people in Kota Bharu  ?

3)  Is there any significant relationship between customer relationship with seller and
customer satisfaction in online shopping groceries among people in Kota Bharu  ?

1.4     Research Objectives

1)  To determine the relationship between level of information sharing and customer
satisfaction in online shopping groceries among people in Kota Bharu.

2)  To determine the relationship between the quality of information sharing and customer
satisfaction in online shopping groceries among people in Kota Bharu.

3)  To determine the relationship between between customer relationship with seller and
customer satisfaction in online shopping groceries among people in Kota Bharu.

1.5          Research Scope

This study focuses on the factor that influence customer satisfaction in online shopping
groceries among people in Kota Bharu. There are many factors that influenced by different
customer satisfaction on a product by a customer. In that case, customer satisfaction are the
main elements that give impact in online shopping groceries. Moreover, customer nowadays
are requesting product with fast and high quality that make difficult for organization even
from online shopping. Therefore, this study also will notice the barrier factors on customer
satisfaction in online shopping groceries. So, this study aimed to highlight the factors that
influence customer satisfaction in online shopping groceries among people in Kota Bharu.

1.6          Significance of Research

This study is conducted based on several significant factors. The most important, significant
factor focuses on level of information sharing, the quality of information sharing and
customer relationship with seller is factor that influence customer satisfaction in online
shopping groceries among people in Kota Bharu. The reason for this study is want online
retailers must have a clear and deep understanding of the antecedents of consumer
satisfaction in the online environment in order to improve business performance and
increase the level of consumer satisfaction.

On the theoretical side, this study helps to enrich the existing collection of literature by filling
in the gaps, this study deepens our understanding of the online customer experience while
also providing insight into two shopper segments identified as important to retail e-retailers.
This study for managers compares online customer satisfaction to actual purchasing
behaviour and identifies the ongoing presence of perceived risk in retail e-commerce,
regardless of purchase frequency or experience.

This study also brings a great contribution in terms of practicality. Specifically, this study this
study to identify the factors that affect consumer satisfaction with online shopping groceries
among people in Kota Bharu.

1.7          Operational Definition of Key Terms

    The terms included in this research study are customer satisfaction, level of
information sharing, the quality of information sharing, customer relationship with seller and
online shopping. Below are the operational of this research.

1.7.1   Online shopping

         Online shopping is the act of purchasing a product or service from an e-store using a
website or app. According to Tarhini (2021), online shopping is getting popular due to the
ability to save time and effort. Furthermore, online shopping differs in terms of perception
versus actual experience between direct and indirect e-stores. When compared to
developed countries, developing countries continue to face a variety of conflicts and issues
while promoting and utilising e-commerce to its full potential (Rossolov, 2021).

1.7.2   Level of information sharing

          Information is essential for success in the era of e-business. Information can help
businesses gain a competitive edge or uncover new business opportunities, particularly
when it comes to concepts like business intelligence. Due to the extraordinarily large
amounts of data, it may be difficult for enterprises to can use the database administration
tools and facilities. For an information system to be successful, a certain business analysis
approach or information interchange are needed.

1.7.3       The quality of information sharing

          Information quality is an important attribute for buyers in evaluating the level of
effectiveness of website use, especially in pre-purchase information searches for products
and services in e-retail (Tzeng, 2020). Product Information also refers to specific details
regarding a product's features, user feedback, evaluation reports, and service information
such as FAQs, notices of promotions, membership details, order and delivery details (Tzeng,
2020).

1.7.4  Customer relationship with seller

       Customer relationship refers to all strategies that will be utilized to handle customer
complaints, build enduring connections with customers, and raise customer satisfaction.
Additionally, customer relationship management has been and is used as a crucial element
of SCM procedures, one of the most reliable advantages.

1.7.5   Customer satisfaction

          Customer satisfaction is a central tenet of interest in the field of marketing (Chiu &
Cho, 2019). Besides that, satisfaction means as an affective state that can see the user's
reaction and emotions towards the entire transaction experience with online retailers
(Faraoni,  2018; Pandey & Chawla, 2018).
1.8          Organization of Thesis

This thesis is organized into five chapters. Chapter One provides the background of study,
research problems, literature gap, research objectives, and research questions. There are
also the scope and significance of study. Finally, definitions of terms are presented.

Next, Chapter Two covers the main body of literature regarding. The literature review of this
study focuses on previous researchers' discussions of earlier study. All of the factors will be
highlighted and discussed in depth in this chapter. The independent variables and
dependent variable of the study have been defined. The related literature on level of
information sharing, quality of information sharing, customer relationship with seller and
customer satisfaction in online shopping among higher education students have been
reviewed in this chapter. This chapter will also cover hypothesis construction by relating the
dependent variable and independent variables.

Chapter Three presents the research methodology of the present study. The research
methodology being used to carry out this study are target population, sample size, sampling
method, data collection, research instrument, data analysis and closed by the summary of
this chapter.

The results and data analysis are presented in Chapter Four, particularly reliability analysis,
demographic characteristic of respondents, descriptive analysis and Pearson’s coefficient
analysis. Furthermore, this chapter discusses and summarizes the results and the findings of
present study. In short, this chapter gives an explanation of the results relating to each
hypothesis, with detailed explanations. Also, it contains the answers of research objectives
developed in Chapter One.

Then, Chapter Five continues with a conclusion derived from the analysis in the previous
chapter. It points out the implications of the findings for the theory and literature on the
factors that influence customer satisfaction among higher education students. This chapter
will discuss the reconciliation of study, the finding and discussion about the level of
information sharing, quality of information sharing, customer relationship with seller and
customer satisfaction in online shopping. Furthermore, this chapter also deliberated the
limitations of the study and suggested several recommendations for future study.

1.9          Summary

This introduction chapter presents research background and statement of problem

associated with customer satisfaction in online shopping among higher education students
issues which guide the development of research questions and objectives. Next, research
scope is explained, followed by the significance of current study to be conducted.
Subsequently, each operational definition of key terms is outlined and finally the organization
of thesis is briefly introduced. The next chapter will highlight the underpinning theory of this
research, together with detailed explanations for all variables utilized in this study.
 CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

The literature review of this study focuses on previous researchers’ discussions of earlier
study. All of the factors will be highlighted and discussed in depth in this chapter. This study
aims to examine the factors that influenced customer satisfaction in online shopping
groceries among people in Kota Bharu, Kelantan. Meanwhile, the theoretical framework’s
evolution will be examined, with the link between the dependent variable and independent
variables provided. The independent variables and dependent variables of the study have
been defined. The related literature on online shopping, level of information sharing, quality
of information sharing, customer relationship with seller, customer satisfactions of the factors
that influenced customer satisfaction in online shopping groceries among people in Kota
Bharu, Kelantan has been reviewed in this chapter. This chapter will also cover hypotheses
construction by relating the dependent variables and independent variables.

2.2 Underpinning Theory

There a few theories which relate to customer satisfaction:

2.2.1 SERVQUAL Model Theory

The service quality model or SERVQUAL Model was introduced by American marketing
experts such as Valarie Zeithaml, A.Parasuraman and Leonard Berry in 1988. This is
because the SERVQUAL model is a method to know and measure the quality of service
experienced by customers. This is so, focused on the development of the quality system in
the field of product quality. in fact, can improve the quality of related services to become
more important from time to time. therefore, better service quality may provide . 
According to Mason (2021),  previous research on the impact of the pandemic has focused
on customer satisfaction as well as measures to prevent. However, the impact of the
epidemic on customer outcomes has received less attention. This causes  the SERVQUAL
Model being used to study changes in customer social media behavior since the outbreak
occurred. Nevertheless, the parameters for providing customer satisfaction have caused
significant changes in the post-pandemic world (Monmousseau et al., 2020; Srivastava and
Kumar, 2021; Wu et al., 2021).

In addition, customer satisfaction will result if efficiency in good service will increase
engagement and relationships between customers (Chang et al, 2017). This is because,
high service quality is also linked to customer satisfaction to make businesses more
competitive in the market by using the SERVQUAL framework in this study to determine
service quality. service quality, this framework uses five dimensions such as tangibility,
reliability, responsiveness, assurance and empathy. Therefore, identifying service issues
and customer satisfaction can result in high service quality.

2.2.2 Customer Satisfaction Theory

According to Chiu (2019) customer satisfaction is the primary principle of interest in

marketing. In this context, satisfaction is defined as an affective state that represents the
consumer's emotional response to the entire transaction experience with an online retailer
(Faraoni et al., 2018; Pandey & Chawla, 2018). This implies that if the customer is satisfied,
the affective aspect may be more important than the cognitive aspect. Similarly to cognitive
experience, affective experience has a significant impact on customer satisfaction and
positive word-of-mouth in a successful shopping context (Barari et al., 2020), satisfaction
can also be defined as the user's affective attitude toward a relationship (Menidjel et al.,
2020).

Next, satisfied customers were most loyal to a brand or store than customers who rely on
other factors, such as time constraints and information deficit, and the internet expands on
this concept, because online customers spend a long time searching for and gathering high-
quality product or store information, which greatly influences the customer's purchase
decision (Ahmad et al., 2017). As a result, in order to achieve and maintain a competitive
advantage, customer satisfaction and its measurement are critical in any business
(Ramlawati & Putra, 2018). The strength and competitive advantage of a business are built
on the quality of service and the satisfaction of stakeholders such as customers and
suppliers.
2.3 Previous study

2.3.1 Level of information sharing

 2.4      Conceptual Framework         

  
 Figure 1. The Conceptual Framework of the study

 2.5      Hypotheses Statement

From this broad conceptual framework, specific hypotheses related to each

relationship and construct could be derived for testing. There are three relationships
proposed in the conceptual framework:

H1: There is a positive influence between the level of information sharing and customer
satisfaction in online shopping groceries among people in Kota Bharu.

H2: There is a positive influence between the quality of information sharing and customer
satisfaction in online shopping groceries among people in Kota Bharu.

H3: There is a positive influence between customer relationship with sellers and customer
satisfaction in online shopping groceries among people in Kota Bharu.

Research objectives Research questions Research hypotheses

1. To investigate the relationships 1. Does the level of H1- There is a positive

between the level of information information sharing influence between the level
sharing and customer satisfaction influence customer of information sharing and
in online shopping groceries satisfaction in online customer satisfaction in
among people in Kota Bharu. shopping groceries online shopping groceries
among people in Kota among people in Kota
Bharu ? Bharu.

2. To examine the relationship 2. Does the quality of H2- There is a positive

between the quality of information sharing influence between the
information sharing and customer influence customer quality of information
satisfaction in online shopping satisfaction in online sharing and customer
groceries among people in Kota shopping groceries satisfaction in online
 Bharu. among people in Kota shopping groceries among
Bharu?  people in Kota Bharu.

3. To examine the relationship 3. Does the customer H3- There is a positive

between  customer relationship relationship with sellers influence between
with seller and customer influence customer customer relationship with
satisfaction in online shopping satisfaction in online sellers and customer
groceries among people in Kota shopping groceries satisfaction in online
Bharu. among people in Kota shopping groceries among
Bharu? people in Kota Bharu.

Table 1.   Summary of research objectives, questions, and hypotheses in this study

2.6 Summary

The summary in this chapter shows the factors that influenced the factors that influenced
customer satisfaction in online shopping groceries among people in Kota Bharu, Kelantan.
The conceptual framework issued  is to developed in accordance with the literature review
aimed at analyzing between the dependent variables and independent variables.

    

 
 CHAPTER 3

METHODOLOGY

3.1 Introduction

This chapter is about research methodology. This chapter defines about research method to
complete the study. The research method that being used to carry out this study are
research design, target population, sample size, sampling method, data collection, data
instrument, data analysis and closed by summary in this chapter. In common language, the
term "research" refers to the pursuit of knowledge. Another way to describe research is as a
methodical, scientific search for relevant data regarding a particular field (C.R.Kothari, 2004).
In an essence, this research used a clarified methodology. This chapter will illustrate every
component of the research methodology.

Research is an intellectual activity, such as the terms must be used in an industrial sense
when make a study (C.R.Kothari, 2004). The major parts of research methodology which are
research method, method of data collection, sampling plan and filed work (Mukesh, Salim &
Ramayah, 2013).

3.7 Research Instrument

The researcher collects the data through Google Form for questionnaires for the
instruments. An instruments is a tool used for research to collect data. Questionnaires are a
tools for gathering information needed in this survey. A checklist is created to make sure that
all of the required information has been retrieved. It is simple and quick to evaluate the rating
scale that is used in questionnaires. Closed-ended questions range from strongly agreeing
to strongly disagreeing are used to generate the questionnaires. This is developed to ensure
data collecting easier. Numerous techniques, such as face-to-face interviews and structured
questionnaires, can be used by researchers to gather data. The researcher will construct a
series of questions based on the study's characteristics, such as elements that influenced
customer satisfaction online shopping groceries in Kota Bharu, Kelantan. The questionnaire
is rated on a 5-point Likert scale.

The objective of this research is to learn more about satisfaction of customer for level of
information sharing, quality of information sharing and the customer relationship with seller.
There are three parts to the questionnaire: Parts A, B, and C. The respondents will fill out
section A of the survey to provide general demographic data. Level of information sharing,
quality of information sharing and the customer relationship with seller will be the
independent variables in section B. Section C will discuss the dependent variable, customer
satisfaction. All of the questions that the researcher asks the respondent in the questionnaire
are regarded as closed-ended questions. Each question's scale item was ranked from 1 for
"strongly disagree" to 5 for "strongly agree."

Strongly Disagree Disagree Neutral Agree Strongly Agree

1 2 3 4 5

Table : The five-point Likert Scale

Even though an interviewer may often give the questionnaire on the researcher's behalf, it
remains the main means of contact between the researcher and the subject. The
questionnaire contains the questions that the researcher wants to know the answers to, and
it also allows the researcher to receive the subject's responses. Thus, despite the fact that
they are distant from one another and never directly converse, the questionnaire can be
thought of as the medium of a conversation between two people (Ian Brace, 2018). There
are three sections on the questionnaire: A, B, and C. In response to the study's objectives,
three supplementary data were produced within the data instrument. All elements in table
3.3 are simplified and similarly detailed in the relevant sections. Structured questionnaires
are used to gather quantitative data from target respondents. Participants will receive a set
of surveys but only willingly respond. Upon delivering the questionnaire, the researcher
informs the responder of the study's goal. All personal data is kept confidential.

Section Dimension Number of Questions

Section A Demographic Profile 8

Factors that influenced customer satisfaction in online shopping groceries

Section B Independent Variable

Level of information sharing

Quality of information sharing

 Customer relationship with seller

Section C Dependent Variable 12

Customer satisfaction

Table 3.3: Questionnaire composition

3.7.1 Pilot Study

Before distributing this questionnaire, a sample pilot test questionnaire is used to validate the
reliability of the questionnaire to be used in the actual survey. These respondents were
chosen to represent actual survey participants. Community people in Kelantan especially
Kota Bharu took part in the pilot study. The alpha value in the pilot test should be larger than
0.7.

3.7.2 Question in Section A of the Questionnaire

The demographic profile of the respondents is the subject of the Section A. The
respondent’s gender, age, income, race, type of goods purchased, how often visit online
shopping, how often purchase online and which shopping online used the most are all
included in the questionnaire. In this section, 8 items were created to quantify particular
statement in each dimension that are gender, age, income, race, type of goods purchased,
how often visit online shopping, how often purchase online and which shopping online used
the most for respondents. The questions in this section are highlighted in Table 3.4.

Items

1. Gender

- Male
- Female

2. Age

- 18 – 23 years old
- 24 – 30 years old
- 31 – 40 years old
- 41 – 50 years old
- 51 – 60 years old
3. Income

- Less than RM1,000

- RM1,000 – RM2,000
- RM2,001 – RM3,000
- RM3,001 – RM4,000
- More than RM 4,001

4. Race

- Malay
- Chinese
- Indian
- Other

5. Type of goods purchased

- Food
- Grocery
- Footwear
- Cloth
- Bodycare
- Others

6. How often visit online shopping

- Everyday
- Weekly
- Monthly
- Once within several month
- Never

7. How often purchase online

- Everyday
- Weekly
- Monthly
- Once within several month
- Never

8. Which shopping online used the most

- Amazon
- Carousell
- Lazada
- Mudah.com
 - Shoppee
- Other

Table 3.4: Question used in the Questionnaire - Demographic profile in Section A

3.7.3 Question in Section B and Section C of the Questionnaire

Section B and C were intended to describe about what factors that influence customer
satisfaction in online shopping groceries. In this section, 29 items were created to quantify
specific statements in each of the four dimensions that are level of information sharing,
quality of information sharing, customer relationship with seller and customer satisfaction in
online shopping groceries among people in Kota Bharu, Kelantan. Respondents are asked
to indicate their level of agreement on a five-point Likert scale ranging from one (1) to five (5)
with ‘strongly disagree’ and ‘strongly agree’ being the two extremes. The items are shown in
Table 3.5.

Dimensions Questions

Level of information 1. Do you agree that information sharing has an impact on

sharing customer in online shopping groceries?
2. The information provided at the website is reliable.

3. The information provided at the website is easily

understandable.
4. The information on the website is complete for purchase
decisions.
5. I can find all the detailed information of the goods I need.
6. The information in the website is relevant

Quality of information 1. Online shopping website able to ensure my transactions,

sharing personal information and financial security
2. Online shopping website was able to accurately provide
service and services information (include the buyer/seller
credit rating, trading rules, sales activities information,
 etc.)
3. Shopping online is risky.

4. Do you agree that role of information sharing on customer

satisfaction is critical in online shopping groceries?
5. Do you agree that some customers believe that the
information sharing is not important in online shopping
groceries?

6. The product worked out as well as I thought it would.

7. My choice to buy the product online was a wise choice.
8. If I could do it over again, I’d buy the same product /
model.

9. I feel good about my decision to buy the product. Products

purchased online have better quality.

Customer relationship 1. Online seller will make up for me because their system’s
with seller guard was sufficient.

2. In order to ensure the quality of information sharing seller

should be good relationship with the customer in online
shopping groceries. C
3. Good and improved quality of information sharing will give
the business a success in online shopping groceries. C
4. Stable interaction between seller and customer will
strengthen customer relationship in online shopping
groceries

Customer satisfaction 1. Behaviour of a seller with customer is important for

in online shopping customer satisfaction in online shopping groceries.
groceries 2. Customer understanding is important to boost customer
satisfaction in online shopping groceries.
3. Effort of a seller is important for customer satisfaction in
online shopping groceries.
4. Customer loyalty is the key of the success in customer
satisfaction in online shopping groceries.
 5. I am satisfied with my decision to buy online.
6. I will recommend the website to others.
7. I would buy again at the same website
8. The online shopping website constantly meet my
requirement.

9. I am satisfied with online purchase experience.

10. My choice to purchase from this website was a wise one
11. I have truly enjoyed purchasing from this website
12. I am satisfied with my most recent decision to purchase
from this website

Table 3.5: Question in Section B and C of the questionnaire. Factors that influenced
customer satisfaction in online shopping groceries among people in Kota Bharu, Kelantan

SUMMARY

The study has a better understanding of the study after deciding on the research design,
data collection method, research instrument, population and sampling also data analysis in
this chapter. The researcher may also learn how to employ the research functionally, as well
as other element, from this study. This chapter also discusses how the survey was created
and how it can be used in this study.
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