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A Study on Satisfaction Level of Customers through Online Shopping

By: Dimpy Sachar, Richa Arora, Anjani Gupta, Prashant Singh and Dhyanendra Jain

ABSTRACT
Today, people are living in the digital environment. Earlier, internet was used as the source for
information sharing, but now life is somewhat impossible without it. Everything is linked with
the World Wide Web, whether it is business, social interaction or shopping. Moreover, the
changed lifestyle of individuals has changed their way of doing things from traditional to the
digital way in which shopping is also being shifted to online shopping. With the increasing use of
internet, numbers of online users are also increasing rapidly. The primary research objective of
this study is to identify the satisfaction level of customers shopping online. Due to the web
presence of various online retailers they are facing the problem of customer retention. This
research study helps them in analyzing the variables influences the satisfaction level of
customers. By Focusing on these variables online retailers can formulate various marketing
strategies to retain their customers by building trust amongst them. For this study data have been
collected from the existing online buyers, they were asked to participate in this survey. The
survey included questions about the customer’s most recent experience with online shopping
websites. A well designed Questionnaire is distributed as an instrument for data collection
covering all the parameters required to analyze the perception of consumers towards online retail
marketers. The results will intensify the researcher’s understanding on variance in the factors
influencing the online purchase intentions of both the experienced and inexperienced online
purchasers. The study depicted that the factors Quality of the product, Offers and Discounts,
Delivery Guaranteed and Application Safety have direct and positive impact on the different
magnitudes of the Customer Satisfaction through perceived Service Quality.

Keywords: Online Shopping, Online Retailers, Customer Satisfaction, Customer Retention,


Marketing Strategies

1. Introduction
Online shopping or e-shopping is an outline of electronic buying and selling which allows clients
to directly procure commodities or services from a peddler over the internet by means of a web
browser. Online buying and selling is a sort of e-business where one end user can unswervingly

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shop in excess through internet. M-commerce delineates acquiring goods and services from an
online shopkeeper through mobile supported online applications or websites. There are different
kinds of business models for e-business. The cyber shopping elicits the substantial resemblance
of trading of goods and services at the shopping center or bricks and mortar retailer; the course of
action is referred to as business to consumer cyber shopping. Business to business online
shopping is the model in which one business obtains goods and services from another business.
The satisfaction of customers is progressively documented as the most important element for the
success in any of the businesses and also a vital pillar in the sustainability and growth of any of
the retail units in our country.

Given that better-quality, leads to the enhancement in the level of customer satisfaction and
invigorates increased involvement among client.

Online buying and selling of goods and services is gaining momentum and preferred by the
customers a lot. Over the years cyber shopping has grown in Online shopping has grown in
popularity specifically for the reason that customers get 24*7 access to the products and services
that is more convenient and easy. There is a vast research on different aspects of online shopping.
But less evidence was on identification of customer satisfaction level through online shopping. In
this 21st century India is showing tremendous growth in online shopping. (Sharma & Mittal,
2009) stated that E-commerce now days has become an integral part of our daily life. Numerous
websites are there offering variety of goods and services. Like clothing and accessories for men
and women, health and beauty products, books and magazines, computers and peripherals,
vehicles, software, consumer electronics, household appliances, jewellery, audio, video,
entertainment, goods, gift articles, real estate and services. As per (Mitra, 2013) E-commerce has
broken the geographical limitations and it is a revolution-commerce will improve tremendously
in next five years in India. (Gangeshwar, 2013) mentioned in his study that the e-commerce has a
very bright future in India although security, privacy and dependency on technology are some of
the drawbacks of e-commerce but still there is a bright future to e-commerce. Tremendous
increase in online shopping has encouraged the researchers to conduct survey on identification of
satisfaction level of online customers (Jarvenpaa & Todd 1997).It is essential for online retailers
to understand the acceptance level of online consumers to identify the effectiveness of customer
relationship management of the online retailers (Chang et al., 2005). (Kim et al. 2005) has

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revealed that the online e-commerce growth depends on some key success factors.
(Balasubramanian et al. 2003, Doney and Cannon 1997, Morgan and Hunt 1994) stated that Trust
and Satisfaction are the essentials for creating an environment which increases the confidence
among consumers towards online shopping. Whereas, (Oliver 1980, 1999; Parasuraman et al.
1988) in their study mentioned that building trust among online consumers is very important as
there is no personal interaction between the buyer and the seller. On the other hand satisfied
customers are important for building healthy and long term relationships between the consumer
and the merchant. Satisfaction arises only when customer receives more than he/she expected.
This study tries to identify the variables influences satisfaction level among consumers shopping
online. The study also aimed to identify the variables which dissatisfy customers the most.

2. Literature Review

It is the customer satisfaction level that converts a customer into a loyal customer. Loyalty of a
customer is one of the important factors that contribute towards the company’s profitability.
(Berry, 1995) stated that maintaining customer loyalty surely increases the company’s
profitability by reducing marketing and promotional cost and simultaneously enhances the sales
from individual customers. As per (Aaker, 1992) an online retailer maintains customer loyalty
because of their brand awareness, quality perceived by the customers, their associations with
different brands and services offered to their customers. Whereas, (Keller, 1993) mentioned that
online customers are paying less time and cost of searching and information processing, that
increases their purchase decision confidence and increased satisfaction level of
customers.(Oliver, 1999) claimed that customer satisfaction and loyalty are completely
interrelated with each other. (Anderson et al., 1994) in their study claimed that customer
satisfaction influences profitability level of organization. Whereas, (Oliver, 1999) concluded that
there is no direct relationship between the customers loyalty and their satisfaction level. As per,
(McGuire, 1974) motivation theory plays a significant role in persuading consumers to purchase
online for achieving sense satisfaction. (Tauber, 1972; Westbrook & Black, 1985) claimed that a
consumer receives satisfaction by indulging in various shopping activities.
The discoveries of the review uncovered that user interface quality, data quality, perceived
quality , the impacts of online composition are the central point impacting consumer loyalty on
online shopping. Many marketing exercises (for example relationship marketing , promoting

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research, information mining advancement/interchanges, supply chain management, sales and
purchasing are currently innovation empowered because of the expanding development of online
based marketing through the Internet (O’Connor and Galvin, 2001).
Any business runs on account of clients and shoppers are considered as rulers. Execution of a
business relies upon Customer satisfaction. Consumer loyalty is utilized to quantify how much
client is content with any item, its quality and generally experience. It. Reflects on the off chance
that client is glad to draw in with any business or not. It is likewise a significant angle to measure
accomplishment of a business.
Characterized fulfilment as "the shopper's satisfaction reaction. It is a judgment that an item or
administration includes, or the item or administration itself, gives a pleasurable degree of
utilization related satisfaction (Mattson, 2009).
Consumer satisfaction is fundamentally alluding to an enthusiastic response to the distinction
between what clients get and what they truly need as indicated by the statement of (Hasemark
and Albinsson, 2004).
The fundamental component of the huge monetary exhibitions of the organization is consumer
loyalty. The satisfaction of the clients has become conceptualized by advancing the time,
handling the outcomes, successful assessment, intellectual assessment and fundamental opinion
of fulfilment (Souca, 2014).
It has been demonstrated that dependent on clients' longing the items just as administrations of
the organization are created and thus, the formation of alluring items quality has become urgent.
It has been seen that the clients' fulfilment works with the advancement of the products (Taylor
and Baker, 1994).

Customers' administrations allude to the movement framework by which the emotionally


supportive network of clients, handling of protests and its speed, ease of detailing the objections
and neighbourliness during revealing the complainants are contained. The administrations of
clients are controlled just as given by the organization's client care administration office (Hanif
et. al. 2010).

According to the assertion of Zairi (2000), an organization can quantify the consumer loyalty's
level by seeing the number of individuals show their advantage to purchase a similar item from
the orga-nization.

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Another component influencing the client towards business is offers given to clients. Retail
business ought to give offers to their reliable clients to keep them in business. Conduct of staffs
towards the client likewise impacts the consumer loyalty. Along these lines, talented staffs are
expected to help the clients (Duarte et al. 2018).

According to Grewal and Levy (2007), the valuing of the item retail industry has a colossal effect
on the clients. Along these lines, the associations should have to guarantee value decency
technique where the cost of the item is sensible, satisfactory or legitimate.

Customers, everywhere, are progressively moving from swarmed stores to the single tick online
based shopping design. Notwithstanding, disregarding the accommodation offered, internet
shopping is a long way from being the most favored type of shopping in India. An overview
among 150 web clients, including the two clients and non-clients of internet shopping, was done
to comprehend the reason why some buy on the web while others don't. The outcomes proposed
that comfort and saving of time drive Indian purchasers to shop on the web; while security and
protection concerns deter them from doing as such (Vijay & M.S.2009).

In his review on Consumer's Buying Behavior towards Online Shopping, The primary point of
study was to look at and dissect the customer's purchasing personal conduct standard towards
web based shopping in lucknow. The examination depends on both essential information and
optional information. The all out example sizes of 40 were gathered through poll by utilizing
helpful testing strategy, the result of the review is generally number of clients are glad on web
based shopping and for the most part keen on purchasing of the online clothes (Singh, 2014).

In an online shopping environment, fulfillment among clients is the most basic issue that prompts
customer securing, their maintenance and manageable advancement of online stores (Chen &
Hitt, 2002).

The relationship between assumptions for the buyer and shopper experience brings about the
degree of client fulfillment. This level is achieved when experience rises to or surpasses
assumption for the clients (Khristianto & Suyadi, 2012).

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An expanding number of online customers anticipate that e retailers should offer a wide
assortment of items, a huge arrangement of items is viewed as great that prompts higher odds of
procurement (Jarvenpaa & Todd, 1996).

Study led by (Liu et. al., 2008) detailed that upgraded nature of data will work fair and square of
fulfilment among the online customers.

Research led by (Kiran et. al., 2009) demonstrated that dependability and exactness of the data
accessible on the site with respect to elements, properties, and quality and item warrants
positively affects Indian purchasers while doing online based shopping.

(Bitner, 1992; Donovan and Rossiter, 1982; Mehrabian and Russell, 1974) stated the significance
of (S-O-R) stimulus, organism, response model as it is the online websites who acts as a stimulus
to the customers and influences their purchases. (Hirschman and Holbrook, 1982) revealed that
retail websites transition from needs driven selling to providing experiential selling influences the
satisfaction level of customers.(Fiore and Yu, 2001) describes that attractive product images
generates the fantasies among the individuals that influences consumer’s affective experience by
providing them emotional satisfaction. (Donovan and Rossiter, 1982; Holbrook, 1986; Mehrabian
and Russell, 1974) highlights that arousal and pleasure are two dimensions that affects the
consumption process of an individual. (Mehrabian and Russell, 1974) stated that arousal leads to
the encouragement and degree of provocation which makes one feel stimulated and excited
towards the environment. Whereas, pleasure refers the degree which makes one feel joyful,
contented, delightful, happy and satisfied. However, perception of online shopping environment
and the customer satisfaction with the service are linked with each other (Montoya-Weiss et al.,
2003). (Evanschitzky et al., 2004; Szymanski & Hise, 2000; Mano & Oliver, 1993; Russell and
Pratt, 1980) mentioned in their research that appearance of online retailer’s website influences the
satisfaction level of customers and their shopping experience. The study related to identify the
factors influencing customer’s decisions related to online purchasing helps the E-retailers to
frame their marketing strategies to retain their customers and to analyze their purchasing
pattern.(Roma´n, 2007) concluded in his study that privacy, security, non-deception and
reliability are the ethical dimensions that influences the consumer perception towards online
shopping.(Arjoon & Rambocas, 2011; Kurt & Hacioglu, 2010; Limbu et al., 2011; Nardal &
Sahin, 2011; Roma´n, 2007; Roma´n & Cuestas, 2008) in their study has explained that ethical

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dimensions of online shopping leads to the trust, perceived value, satisfaction, loyalty and word
of mouth of the customers.

3. Research Methodology

On the whole, the questionnaire was circulated to 120 respondents. In this study, purposive
sampling technique was used in order to include the respondents to collect the data. Out of 120
questionnaires circulated only 100 were found suitable for the study and for further analysis.
SPSS v 21 was used to analyse the data collected. The demographic profiles of the respondents
were evaluated based on the frequency tables. In order to determine the reliability of the data
collected Cronbach alpha was calculated. Certain non-parametric tests like Chi-square analysis
and Kolmogorov Smirnov analysis were carried out in order to determine the relationship
amongst the different set of variables.

4. Data Analysis and Findings

Table 1: Demographics of the Respondents


Demographic Variables Categories Frequency Percentage (%)
Done shopping online Yes 100
No 20

Age Group Below 20 18 18


20-29 62 62
30-39 16 16
Above 40 4 4

Gender Male 34 34
Female 66 66

Profession Student 38 38
Service 23 23
Professional 24 24
Business 15 15

Annual Income Less than 3 Lakh 43 43


3-6 Lakh 29 29
6-9 Lakh 18 18
Above 9 Lakh 10 10
Source: Questionnaire

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5. Reliability Analysis
Table 2: Reliability Analysis

No. of Items Cronbach


Variables No. of Items included Alpha

Product Quality 5 5 0.711


Offers and
Discounts 5 5 0.701
Delivery Guarantee 5 5 0.733
Application Safety 5 5 0.836
Customer
Satisfaction 5 5 0.789

The reliability analysis is done through Cronbach alpha test. The value of the Cronbach Alpha of
the variables in this study goes above the minimum acceptable level of 0.70. This portrays the
questions used in the questionnaire are reliable and succeeds the minimum acceptance.

NULL HYPOTHESIS: There exists no significant relationship between the product quality
and the perception of the respondents.

Table 3: Product Quality


K-S Chi
S.No. Statements SD D N A SA value Square p value

1 Ensured Product Quality 3 5 14 42 36 2.563 117.800 0.000


Received Reliable information
2 about the product and the brand 4 5 18 41 32 2.697
More diversified products at best
3 priceswith better quality 3 10 17 26 44 2.529
Consistent information obtained
4 with the quality of the product 3 16 36 31 14 2.328
Online shoppers’ satisfaction is
influenced by the Quality of
products and the services
5 guaranteed. 3 8 15 23 51 2.789

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It is perceived from the table 3 that the p-value generated is less than 0.05, this leads to the
rejection of the Null hypothesis. Therefore, it can be determined that there exists a significant
relationship between the product quality and the perception of the respondents. The K-S values
attained from Kolmogorov-Smirnov test helps determine the order in which factors affect the
relationship. ‘Online shoppers’ satisfaction is influenced by the Quality of products and the
services guaranteed’ rank first followed by ‘Received Reliable information about the product and
the brand’ followed by ‘Ensured Product Quality’.

NULL HYPOTHESIS: There exists no significant relationship between the offers and
discounts and the perception of the respondents.

Table 4: Offers and Discounts


K-S Chi
S.No. Statement SD D N A SA value Square p value
Discount coupons offered encourage
33.600 0.004
1 purchase 7 12 14 24 43 2.594
Various offers available are genuine
2 and reliable 6 11 19 42 22 2.352
The offers available in online shopping
outweighs the offers available in
3 traditional shopping 4 6 21 36 33 2.628
4 Service Guarantee is assured 2 13 18 25 42 2.603

5 Better quality at lowest possible prices 3 7 17 28 45 2.782

It is perceived from the table 4 that the p-value generated is less than 0.05, this leads to the
rejection of the Null hypothesis. Therefore, it can be determined that there exists a significant
relationship between the offers and discounts and the perception of the respondents. Analysing
the K-S values attained from Kolmogorov-Smirnov test helps determine the order in which
factors affect the relationship. ‘Better quality at lowest possible prices’ ranks first followed by
‘the offers available in online shopping outweighs the offers available in traditional shopping’
followed by ‘Service Guarantee is assured’.

NULL HYPOTHESIS: There exists no significant relationship between the delivery


guaranteed and the perception of the respondents.

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Table 5: Delivery Guaranteed

K-S Chi
S.No. Statement SD D N A SA value Square p value
Flexible and responsible packaging and
1 delivery 7 4 23 38 32 2.387 81.100 0.000
2 Packaging and delivery are tangible 4 10 29 48 15 2.141
3 Product received without any damage 4 15 27 31 28 2.263
Delivery in time as per the service
4 assured 6 17 26 39 16 2.259
The delivery process does not
5 compromise with the price and quality 9 14 41 25 14 2.053

It is perceived from the table 5 that the p-value generated is less than 0.05, this leads to the
rejection of the Null hypothesis. Therefore, it can be determined that there exists a significant
relationship between the delivery guaranteed and the perception of the respondents. Considering
the K-S values derived from Kolmogorov-Smirnov test, ‘Flexible and responsible packaging and
delivery’ ranks first followed by ‘Product received without any damage’ followed by ‘Delivery in
time as per the service assured.’
NULL HYPOTHESIS: There exists no significant relationship between the application
safety and the perception of the respondents.

Table 6: Application Safety

K-S Chi
S.No. Statement SD D N A SA value Square p value
Providing personal information
79.135 0.000
1 online is secure. 9 24 23 32 12 1.986
Adequate payment and security
2 features. 3 16 35 31 15 2.153
Trustworthy and responsible
3 online trading 5 25 26 33 11 1.932
Guaranteed return of goods and
4 payment retrieval 12 17 23 37 11 2.101
5 Reliable payment process 8 25 30 31 6 1.954

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It is perceived from the table 6 that the p-value generated is less than 0.05, this leads to the
rejection of the Null hypothesis. Therefore, it can be determined that there exists a significant
relationship between the application safety and the perception of the respondents. Analysing the
K-S values obtained from Kolmogorov-Smirnov test, ‘Adequate payment and security features.’
ranks first followed by ‘Guaranteed return of goods and payment retrieval’ followed by providing
personal information online is secure.’

NULL HYPOTHESIS: There exists no significant relationship between the Customer


Satisfaction and the perception of the respondents.

Table 7: Customer Satisfaction


K-S Chi
S.No. Statement SD D N A SA value Square p value
Happy and will continue doing
45.400 0.000
1 online shopping 3 16 21 37 23 2.539
Online shopping is easier and
2 faster 2 7 25 45 21 2.562
Satisfied with the online
3 shopping security system 4 21 33 31 11 2.231
Timely delivery and assured
4 packaging quality 3 11 34 38 14 2.458
Comfortable ordering products
5 online 5 19 24 35 17 2.352

It is perceived from the table 7 that the p-value generated is less than 0.05, this leads to the
rejection of the Null hypothesis. Therefore, it can be determined that there exists a significant
relationship between the customer satisfaction and the perception of the respondents. Considering
the K-S values obtained from Kolmogorov-Smirnov test, ‘Online shopping is easier and faster’
ranks first followed by ‘Happy and will continue doing online shopping’ followed by ‘Timely
delivery and assured packaging quality.’

6. Conclusion

It is evident from the study that the factors Quality of the product, Offers and Discounts, Delivery
Guaranteed and Application Safety have direct and positive impact on the different magnitudes of

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the Customer Satisfaction through perceived Service Quality. In other words, the satisfaction of
customers when talking about online shopping can be improved through the consistent and
reliable information related to the products and the brands, prompt and quick response to the
customers queries and grievances, timely and flexible product delivery with assured packaging
and quality, assured product quality at the best possible prices, assured services with more
options at best offers and discounts. The Quality Service Assurance model developed through
this study exemplifies the variables directly impacting the satisfaction of the customers involved
in shopping online.

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48. International Journal of Academic Research, Vol. 4 No. 2, pp. 1-14

Electronic copy available at: https://ssrn.com/abstract=3991029


Electronic copy available at: https://ssrn.com/abstract=3991029

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