CHAPTER 2

Review of Related Literature

This section contains readings and literature from different sources like

journals, books, websites, articles, theses, and dissertations related to the study. It

starts with the definition and determinants of customer satisfaction in online shopping

applications. The discussion goes further to include other studies related to this

research, as well as their indicators.  The value of focusing on customer satisfaction as

a key element in the establishment of any online shops is highlighted by the

exponential growth of online shopping. Customer satisfaction has been viewed as one

of the most significant constructs and as one of the primary marketing objectives,

according to Oliver, is “the summary psychological state resulting when the emotion

surrounding unconfirmed expectations is coupled with a consumer’s prior feelings

about the consumer experience.” (Oliver, 1997) In other words, satisfaction is a

continuous monitoring of the surprise entailed in the experience of purchasing or

consuming a product. Customer satisfaction is important in online business because it

provides customer trust, boosts positive word-of-mouth recommendations, encourages

repeat business, predicts purchase behavior , and forecasts the longevity and success

of the online retailer. Additionally, because it can increase customer loyalty, establish

good word-of-mouth recommendations, strengthen customer loyalty, increase market

share, and boost profitability for a company, satisfaction can be seen as one of the

most vital customer reactions to online shopping. According to Burke (2008), the next

major development in e-commerce will be the creation of enhancing online shopping

by making it more empathetic. In order to do this, new technologies must have

methods and tools that enable people to communicate, exchange ideas, and rate both

goods and services. Additionally, it even entails allowing criticism of your to have
goods and services show up on your website. By improving the online environment

merchants will be more compelling through genuine, unfiltered human-to-human

interaction able to gain the trust of online shoppers, increasing their likelihood to

purchase products and recommend products and services to others. Burke (2008) also

suggests three main ways that online retailers can create an immersive shopping

experience: Advertising establishes credibility, satisfaction, support, and

services. Make the website a popular destination by catering to users' individual

interests with engaging material. Facilitate interpersonal communication between

users of blogs, wikis, forums, chat rooms, and other societal networking sites. This is

what goal-oriented shopping entails. 

The profile of the customer, the motivations behind online purchases, and

Online shopping preferences and satisfaction. This essay contributes to knowledge of

consumer satisfaction with online shopping in Dubai, United Arab Emirates, which is

the fastest-growing economy in the Middle East, particularly among the GCC

nations. 

Related Studies 

Foreign 

The web has emerged as the most popular internet application in recent years

due to its accessibility to information and low cost of communication. Business

organizations questioned the internet's impact on business performance a few years

ago. They need it to survive today (Sultan and Rohn, 2004). Nowadays, the internet is

more concerned with managing the online communication process, increasing

customer engagement and satisfaction, and enhancing transaction efficiency.

Customers are now more powerful thanks to the internet. Customers have access to an

almost infinite number of brands, goods, and retailers. With just one click, they can

switch brands or try out new products. Customers do, however, have a finite amount

of time and an infinite variety. Customers typically stick with online vendors who

satisfy their needs and offer them high-quality goods. According to DIRECT News

line (2005), 90% of extremely satisfied online shoppers would return within two

months, and 80% would encourage others to use the online retailer. On the other

hand, 87% of unhappy customers would sever ties with their online vendors without

complaining (Customer Experience Management Web Partner, 2002). A potential

customer's fear level is purely higher when shopping online than it is when doing so

in a physical store on the high street. This is in part because the majority of people are

unfamiliar with the activity. Potential online buyers frequently lack knowledge about

the online store as well as the actual purchasing process (such as what will happen

once they enter their credit card information) and the results (such as whether the

product will arrive as promised) (Lim et al., 2004). 

Online shopping is still not very common in the East, despite having a relatively

high adoption rate in the West. For instance, according to a survey by Taylor Nelson

Sofres (2001), 33% of internet users in the USA have made an online purchase

(compare this to 28% in Germany; the UK (24%), Ireland (18%), and Norway (19%).

On the other hand, South East Asia has much lower corresponding percentages: 2%

for Thailand, 7% for Hong Kong, 8% for Taiwan, and 9% for Singapore. A growing

number of research studies have focused on online satisfaction as a result of the

growing significance of online commerce.  

Two early models of online customer satisfaction—the first by Szymanski and

Hise (2000) and the second by Lee—were created to help researchers better
understand it (2001). Although both models have contributed to our understanding of

online customer satisfaction, Szymanski and Hise's model was straightforward and

focused only on four web-related factors: site design, merchandising, convenience,

and financial security. On the other hand, Lee's model was extremely complex with

numerous interrelated constructs, so it was unable to offer more insight into customer

satisfaction. Additionally, earlier studies (Loiacono et al., 2002;) have shown that

online service quality is a critical element that can significantly contribute to customer

satisfaction. Service quality is determined by how subjectively customers rate their

expectations in relation to the actual performance of the service. High service quality

has become crucial for the survival of online service businesses given the widespread

use of the internet in the service industry. Therefore, various service quality measures

applicable to online services were developed based on how customers perceived the

quality of the services. A model to investigate the elements influencing online

customer satisfaction was also put forth by Kim (2005). Her strategy worked well

because of two things. First, it increased the number of online satisfaction antecedents

to 10 (after-sales service, attractiveness of the purchase result and price, product

information, customer service, site design, attractiveness of the product, payment

method, and site). 

Website interfaces, according to Galletta et al. (2004), are a dominant

component of overall satisfaction attitude and that the aesthetic qualities of websites

physically compare to the ambiance of conventional brick and mortar stores. Web

interface elements have previously been identified as website factors or information

system factors. Consumer Traits - Important consumer characteristics that may affect

the online shopping experience and satisfaction include familiarity and proficiency
with computers, prior internet and web-store purchase experience, and these. Prior IS

research has highlighted the significance of user experience and knowledge in

determining satisfaction, such as IT education and internet usage, general internet

expertise, and user experience with mobile devices. Familiarity. Higher anxiety and

more difficulty using web store services are more likely to be experienced by novice

users. Their interactions with online retailers are more likely to be disappointing as a

result. Those with more knowledge can benefit more from the services provided by

online stores. They might also be able to accurately estimate risk. 

Related Studies 

Local 

Customer satisfaction is extremely important because it is the way of getting feedback

from the customers in a way that they can use it to manage and improve their

business. Customer satisfaction is the best indicator of how the business looks like in

the future. Customer satisfaction helps in doing SWOT analysis that could help them

to develop their business in an advance and in a systematic way. Besides this, it will

also help in making the right decision to use the appropriate resources while

manufacturing the products. Similarly, it maintains the relationship with the existing

customers and also creates the possibility to acquire others. (SSRS research 2016.)

When products are bought customers expect perfection instead of quantities. There

are varieties of products that are similar in the market and sometimes it is difficult to

distinguish which one is qualitative and durable. This is the great opportunity for the

business organization doing marketing of their products and services to understand

what exactly customers are seeking for. Customer satisfaction is a key indicator of the
marketplace that evaluates the success of the organization. People have varieties of

tastes and choices and therefore, satisfaction also differs from one person to another.

It also may vary the expectation of the consumer depending on the option they may

have, such as the national and international market (Kotler & Keller 2006.) A

technique for assessing the customer satisfaction should also have to go through the

international market procedure to meet the requirement internationally. In the process,

granting the satisfaction to the customer in both physical and technological aspects

has changed drastically. However, there is still no method of measuring customer

satisfaction. But the feedback from the customer can be taken as a crucial tool for

measuring customer satisfaction. (European Institute of Publication Administration

2017.) On the other hand, it’s cheaper to retain customers than acquire new ones. To

make a customer’s cost lot of money. Marketing team spends lots of money and time

in convincing their excellence. Customer satisfaction is a primary aim of every

company. Customer satisfaction ensures the customer wants to return to purchase the

19 service. Satisfied customers are more likely to recommend their friends and

families which will help to grow the business. A totally dissatisfied customer decrease

revenue, whereas satisfied customer has a positive effect on profitability. Customer

expectations are the belief about service delivery that serves as standard or reference

points against which performance is judged. Customer expectation is difficult to know

in service delivery, wrong actions and failure which could cause of losing a customer,

waste of investment, time and eventually business. Customer expects some level of

service quality from a service provider during the transaction, therefore customer’s

opinion about the quality standards and also what kind of standard customer expect

are essential to know. (Zeithaml et al. 2009,75.) Knowing what the customer expects

is one of the most criti cal factors in delivering good and service quality (Zeithaml et.
Al. 2009). Customer expectations are the standards of performance against which

service experiences are compared. The difference between what a customer expects

and perceives in the service delivery formed customer gap. Which leads to customer

dissatisfaction with the product or service. To close this gap, the gap model (gap 1, 2,

3,4 and the not knowing what customer expects, not selecting the right service designs

and standards, not delivering to service standards, not matching performance to

promise respectively) of service quality suggests that four gaps called provider gaps

from one to four needs to be closed. It is important for companies to close the gap

between customer expectations and perceptions in order to satisfy their customers and

build long-term relationships with them. (Zeithaml & Bitner 2000) Grasp is the

psychological expectations of customer. On the basis of effective management of

customer expectation, firstly it cannot ignore basic collection and analysis of customer

information which includes information collection and statistical information based

on properties of clients, the level and instability consumption, personal preferences,

service and satisfaction feedback information regarding the analysis of customer

expectations and needs provide a basis to measure the level of information support.

Analyze customer needs, assess customer expectations: Customer need analysis is an

important basis and means of measuring customer expectation. According to Japanese

management expert Kano model, customer demand is divide into three categories

such as basic demand, expected demand and surprise demand. Zeithaml & Bitner

(2003, 84-85) potrait customer preceptions as the subjective assessments of actual

service experiences. This refers to how customers perceive services, how they assess

the quality of received services, weather they are satisfied, and weather they have

received good value. Accordingly, customer perceptions of service are also defined as

customer perceptions of quality, satisfaction and value. The customer perceptions are
the way that people see something based on their experience. Everyone’s perception

will be, at least, slightly different. Perception is also described as the end result of a

number of observations by the customer.

Synthesis

The related studies and literature presented show some similarities, relations,

and factual arguments that contribute to the whole essence of the current study. A

study dwells on understanding counseling itself but the majority of them show the

importance

of customer and seller relationship, customer perceptions of quality, satisfaction and

value. Other studies talk about the benefits, how standards of customers improve the

business and how it increases the business performance. Furthermore, some of the

studies dwell on the customer standards, about communication skills, attitudes, and

the feedbacks they give to the public as a fellow customer. The remainder, quite

similar to the current study, reviews young people's perception, students' perception,

and the effect of socioeconomic status and geographical location on how they

perceive. That is how they differ from the current study but overall, they all serve a

purpose. These studies fall right to the start questioning the awareness of customer

satisfaction. One way or another, each of the studies contributes and adds some layers

in understanding the "level of satisfaction online marketing" the customers perceive.

It is therefore concluded as well that level of satisfaction on this specific matter seems

to be an interesting topic since then. These related studies bring more confidence to

the current study and to the researchers to continue the work as it could be a guide to

the future topics in the form of a literature.

Conceptual Framework

Following the picture below, the conceptual framework gives a graphical

INPUT
depiction of narratives that are necessary in order to understand theOUTPUT
PROCESS entire study better.
Demographic
Profile of the Analysis of data The implication of
Customers retrieved from the satisfaction of
purchasing in online participants Grade 12 students
applications: who’ve of Tarlac National
participated the High School when
Age
online survey purchasing online.
Sex
Strand/Track through Google Significant
The level of Form. relationship
customer between the
satisfaction customers and
dependency of sellers.
Grade 12 students
in Tarlac National
High School.

Figure 1. Paradigm of the Study

The figure above shows the flow of the study conducted by the researchers.

The Grade 12 students of Tarlac National High School were the sources of the

analysis, along with their satisfaction tested in the multivariate and self discipline test

included in their questionnaire. Each student has a different basis that demonstrates

their internet shopping behaviors. The procedure displays the analysis of the

information gathered from the finished surveys. This includes the application of
statistical of statistical techniques to identify important connections between groups

and the representation of graphs to support analysis and interpretation. The output,

which is formed of the participant’s level of satisfaction and the importance of the

relationship between consumers, is determined by observing their habits and problems

they encounter.