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Understanding the impact of service convenience on customer satisfaction in

home delivery: Evidence from Pakistan
Article in International Journal of Electronic Customer Relationship Management · January 2017

DOI: 10.1504/IJECRM.2017.086752
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Understanding the Impact of Service Convenience on Customer Satisfaction in Home
Delivery: Evidence from Pakistan
Syeda Marium Mehmood1

Department of Management Sciences,
IQRA University
Karachi-75300, Pakistan
Email: smm_syed@hotmail.com
Arsalan Najmi2
Department of Management Sciences,
IQRA University
Karachi-75300, Pakistan
Email: arsalan-najmi@hotmail.com
Tel: +92-321-277-7900
(Corresponding Author)
1
Syeda Marium Mehmood is a Business Graduate in Department of Management Sciences in
IQRA University.
2
Arsalan Najmi is associated with Iqra University as a Lecturer in Department of Management
Sciences. He holds Masters in Business Administration from Iqra University. His current
research is focused on issues related to Higher Education and contemporary supply chain settings
and management. Arsalan Najmi is the corresponding author and can be contacted at: arsalan-
najmi@hotmail.com.
i
Understanding the Impact of Service Convenience on Customer Satisfaction in Home
Delivery: Evidence from Pakistan
Abstract
The purpose of this study is to find out the impact of five types of service convenience namely
decision, access, transaction, benefit and post benefit on customer satisfaction in home delivery
service of online retailing. Service convenience model is applied to identify the consumers
experience regarding different conveniences encounter at different stages of home delivery. For
that purpose the data was collected from 230 consumers who had experienced the home delivery
service during online shopping. After applying EFA, regression analysis has been performed as a
statistical technique to test the hypotheses. The result of the study shows that all the independent
variables are having positive and significant impact on customer satisfaction except the one
which is access convenience. This shows that accessibility to service provider does not affect
customer satisfaction as they are considering online shopping as an efficient virtual store where
they can complete the purchasing process by themselves. It is recommended that online retailers
should have to focus in providing convenience services in order to increase customer
satisfaction.
Keywords: Home Delivery; Service Convenience; Customer Satisfaction; Online Shopping;
Online retailer.
i
1
Service Convenience in Home Delivery
1. INTRODUCTION
The numerous benefits of online shopping are attracting customers to purchase
through internet (Chiang & Dholakia, 2003; Wolfinbarger & Gilly, 2003). As people are
getting busier the demand for the home delivery service is increasing because they are not
having enough time to go to store and shop. It was observed that the home delivery is the
part of logistics service (Bienstock, Mentzer & Bird., 1997; Mentzer & Williams, 2001)
and undoubtedly an important element for online shoppers (Chen at al., 2014; Punakivi &
Saranen, 2001). Basically home delivery is a customized type of logistics service which
facilitates customers that they can stay at home and wait for the product to arrive (Xing,
Grant, McKinnon & Fernie 2010). Kahn and Mentzer, (1996); Mentzer and Williams,
(2001) discussed that overall company’s success is greatly affected by the performance of
their logistics service and it was also examined that better the logistic service the higher
the profitability (Mentzer & Williams, 2001).
With the growing market of online retailing, the responsibilities of the logistics
managers has also been increased, as now they have to efficiently deliver the product to
customer’s door (Chen at al., 2014), in order to reduce cost they have to plan routes
carefully and integrate relationship with customers to resolve their issues related to home
delivery (Persson & Virum, 2001, Chen et al., 2015). This shows that delivering the
product directly to consumer’s door has made the physical distribution process of online
retailers more complex. Because a product purchased online or “virtually” cannot be
used by the consumer until it is delivered to them at the right time, right place, in the right
quantity, and in the right condition (Chen at al., 2014; Christopher & Gattorna , 2005).
2
The efficient logistic service of any company can be viewed as an effective tool to
gain the competitive edge over other organizations as well as help companies to influence
customers. By adopting efficient logistics management a company can reduces its cost
and can increase profitability (Nicholls & Watson, 2005). Kahn and Mentzer, (1996);
Mentzer and Williams, (2001) has also described in their studies that enterprise success is
based on the superior quality of logistics service provided to customers. The best quality
delivery service is beneficial for organization in terms of cost and time saving, and allows
them to increase their market share and profitability (Thompson, Dsouza & Gale., 1985,
Chen et al., 2015). As day by day the logistics service is gaining importance among
customers so it is become necessary for the companies to provide valuable delivery
service to them in order to retain profitable customers (Chen at al., 2014; Zeithaml, Berry
& Parasuraman 1988).
Nowadays, people not only want a quality service but the service which is
convenient for them too i.e. they are seeking for a convenience which save their non
monetary cost that are time and effort (Seiders, Berry, & Gresham., 2000; Kaura 2013)
and the service convenience provided by the companies is largely acknowledged by the
customers. Service convenience is basically a convenience which reduces customer time
and effort in obtaining the service (Berry, Seiders & Grewal., 2002, Kaura et al., 2015).
Related to different stages of service encounter, Berry et al. (2002) has proposed five
types of convenience: (1) decision convenience; (2) access convenience; (3) transaction
convenience; (4) benefit convenience; and (5) post-benefit convenience which enable the
companies to better understand the customer perception about the use of time and effort
at different level because there is a difference between customer expectation and the
3
service offering and when the service provided by the companies reduces more time and
effort of the customer i.e. more than his expectation then this will lead to customer
satisfaction. It was examined that service convenience and customer satisfaction are
directly related to each other (Sieder et al., 2000; Colwell, Aung Kanetkar & Holden.,
2008). This means that companies must not only consider for providing the physical
distribution of the product but also the service which is convenient for customers
(Smaros, Holmstrom & Kamarainen., 2000). For that they should have to devise the
convenience strategies which enable them to make a long term relationship with their
customers and expand the competitive advantage to highest level.
The penetration of the internet, frequent use of mobile devices and the rise of
social networks in Pakistan; have opened the doors to e-commerce. Due to the easy
accessibility to internet like of 3G and LTE, the online shopping trend is growing in fast
pace (Kundi & Shah., 2009). Many online retailers are competing in the market and after
seeing the e-commerce potential of the country many other foreign and domestic
retailers are getting ready to enter (Sulaiman, Mohezar,& Rasheed.,2007).
As the culture of Pakistan in terms of online shopping is emerging rapidly, it is
necessary to discover that by reducing time and effort of customers during online
shopping will affect satisfaction of the customer or not because according to Sieder et al.,
(2000); Berry et al., (2002); Colwell et al., (2008) service convenience and customer
satisfaction are strongly related to each other. According to researchers knowledge, in an
emerging economy like Pakistan, many has done the research on online shopping in
terms of marketing or focusing on online factors but has given less attention to overall
home delivery service experience. According to Chiang and Dholakia, (2003) home
4
delivery is considered as a most important element to customer because if they fail to get
the product then their purchase may be perceived as inconvenient. So it seems that there
is a need of identifying the impact of service convenience in home delivery of online
shopping on customer satisfaction.
By reviewing many studies it was observed that in recent times the customers are
looking for the convenience in the service and desiring more comfortable lifestyle
(Brown, 1990). In Pakistan, the customers are moving from real store purchases to shop
via online (Kundi & Shah., 2009) and this shift has raised the need of home delivery
service among customers because home delivery is a very crucial element of online
shopping (Mentzer et al., 2001). Thus keeping in mind the significance of logistic service
to the customer and the increasing demand of the service convenience, this study is
addressing the five types of service convenience (Decision, Access, Transaction, Benefit
and Post-benefit) in home delivery service of online shopping and examines its impact on
customer satisfaction.
Progressively convenience is becoming an important factor for the customers who
have limited time and are not interested in putting much effort to get the service. The
result of Seiders et al., (2000) shows that in future people are willing to spend less time in
shopping, these customers are now in the search of the companies who will provide them
a convenient service in terms of purchasing, delivering and after delivery benefits. Graver
and Gragnon (2002) identifies the positive relationship between the customer satisfaction
and organizational success, that organization should have to recognize the unmet needs of
the customers and work on it to fulfill it, if they want to maximize the profit and
strengthen their market position.

5
Therefore, scope of the study is customer driven, primarily inspired by the
increasing need of the home delivery service in Pakistan. This study basically provides
the understanding of the convenience in home delivery service and how it interacts with
satisfaction. The study will be helpful for the online retail industry to identify which
convenience influences more to customers. Furthermore, it will also serve as a future
reference for researchers on the subject of service convenience and home delivery.
The remaining part of this study is organized as follows. Next section contains an
empirical evidence of home delivery service, customer satisfaction and service
convenience of online shopping, followed by a Hypothesized framework regarding
service convenience and customer satisfaction in home delivery. It then presents the
methodology with respect to research framework which describes the application of
framework to the customer who received home delivery of internet purchasing within last
one year. Next, the results of an empirical study of internet consumers are analyzed and
discussed, and then study finishes with conclusions, managerial implication and future
recommendation.
6
2. REVIEW OF RELATED LITERATURE
2.1 Theoretical background
The reason that the companies are performing well and competing in the market is
that they want to satisfy their customers by fulfilling all their needs, because when the
customer is happy then their business will flourish which in return, affect the profitability
of the company (Shen, Tan & Xie, 2000) and earning high profit is the ultimate goal of
any business (Garbarino & Johnson, 1999).
In the race of wining higher satisfaction level of customers, the companies are
continuously innovating, discovering, planning new strategies and trying to provide
comfort and convenience services to their customers (Weiss, Feinstein & Dalbor., 2005).
Convenient services provided by the companies are recognized and valued by the
customers (Anderson & Mittal, 2000), it means service convenience are one of the factor
which is important for them. Therefore service convenience used as a base model in this
study to analyze its impact on customers who uses home delivery service.
2.2 Home Delivery
Home delivery is basically an additional and value added service provided by the
firm in which they personally delivered the purchased item to customer’s door (Kassim &
Abdullah, 2010). It is gradually gaining importance among customers because of
numerous reasons, firstly it avoid customers to visit store again and again in case of stock
out, secondly it helps customer to carry heavy goods and thirdly the rise in internet
shopping make home delivery service more vital for customers (Chen et al., 2011; Chen
7
et al., 2015; Punakivi & Saranen, 2001) as now they can ordered and received goods
rapidly. In other words the home delivery is important for online retailers as they can
satisfy customers and gain competitive advantage by providing efficient, convenient and
customized service to them (Ehmke et al., 2012).
2.3 Customer Satisfaction
Satisfaction is the moment when customer was rejoices by having that particular
service or product i.e. the service received by the customer has been met up to its
expectation (Oliver, 1980; Weiss et al., 2005). Customer is satisfied by the product or
service when its perception about any product or service is equivalent to its expectation
Dai & Salam, 2014; Kaura et al., 2015; Rao et al., 2016. For many businesses customer
satisfaction is a very effective tool in measuring the ability of their product or service. It
helps the company to evaluate the customer’s purchasing decision. Therefore Reichheld
and Sasser (1990) has identified that when the customer is satisfied with the company’s
current product or service then there are more chances of buying that product persistently
and it also identified that the customer relationship with the company become more
strong which will result in purchasing the other products or services of the same
company.
2.4 Service Convenience
Service convenience is basically the little strength put by the consumers to
execute any task (Dai & Salam, 2014; Morganosky 1986). Brown, (1990) has defined
service convenience as any ease that fascinates the customer towards that particular
service like by providing it in such a manner that reduces the time and effort of the
customers. Service convenience was first proposed by Copeland (1923) that the
8
utilization of the time and both the physical and mental effort of the consumer should be
minimized when they are going to purchase the product. In order to provide high quality
service or the service which meets the consumer expectation, the company must have to
offer the service convenience to its customers (Berry et al., 2002; Liang and Wang,
2006). Service convenience helps the organization to strengthen their relationship with
their customers and achieve the competitive edge by bringing it to new position (Seiders
et al., 2000). When other companies are also providing the convenience services to their
customers, then the company must have to differentiate itself by providing greater value
to the customers as compared to their competitors in order to maintain its market position
and to gain an advantage over them (Colwell et al., 2008). Many researchers have found
that customer purchasing behavior has been largely influenced by the convenience
offered by the companies (Dai & Salam, 2014; Kaura et al., 2015; Rao et al., 2016).
Berry et al., (2002) in his study has described that five service convenience extents have
been playing a major role in customer satisfaction and company’s success. Following are
the five kinds of service convenience help to evaluate customer’s perception related to
different stages of purchasing a service.
2.4.1 Decision Convenience
When customer is putting its time and exerting its effort in deciding what service
to use or purchase. In other words the perceived time and effort of the customer used to
decide whether to purchase a service or self perform it (Dai & Salam, 2014; Kaura et al.,
2015; Rao et al., 2016). The decision is made on the available information about the
service, word of mouth, brand recognition and the tangible facilities and employee’s
appearance (Chang et al., 2012). Decision convenience is positively associated with

9
customer satisfaction (Bendall-Lyon and Powers 2004). For home delivery service
provider it is necessary to attract customer’s attention to their specific service through
providing relevant information related to product and brand. This information could help
consumers to make better decision regarding the purchase of service. On the basis of
above rational the hypothesis is constructed as:
Hypothesis 1: Decision convenience has a significant impact on customer satisfaction.
2.4.2 Access Convenience
The convenience required initiating the service means customers are settling their
perceived time and effort to request for service is called access convenience. It basically
involves the accessibility of the consumer to the product or service or organization.
Seiders et al. (2007) later showed that the accessibility of service providers through
various ways and availability of service provider at convenient hours are powerfully
influencing customer satisfaction (Dai & Salam, 2014; Kaura et al., 2015; Rao et al.,
2016). Access convenience is important to customers because if they have issue
regarding the product, brand or delivery date then they need a service provider to
facilitate them in resolving their problem (Jiang et el., 2013; Chang et al., 2012). On the
basis of above rational the hypothesis is constructed as:
Hypothesis 2: Access convenience has a significant impact on customer satisfaction.
2.4.3 Transaction Convenience
It is the time and effort required by the consumers in order to fulfill the whole
process of transaction, it mainly starts when customer reached the site after making
10
decision of purchasing (Jiang et el., 2013). The convenience in transaction is necessary
for customers as they want to quickly conclude their purchase and save their time and
effort (Dai & Salam, 2014; Rao et al., 2016). According to Kaura et al., (2015) customer
feel that online transaction is complicated process, thus providing convenience by making
it simple or giving other means of payment will increase customer satisfaction.
Additionally Aagja et al. (2011) confirms that transaction convenience has positive
impact on customer satisfaction. On the basis of above rational the hypothesis is
constructed as;
Hypothesis 3: Transaction convenience has a significant impact on customer
satisfaction.
2.4.4 Benefit Convenience
It is the moment when customer is coming across with the core benefits of the
service. It is necessary for the company to provide convenience at this stage because
customer wants to spend less time and effort to experience the benefit of the service and
little inconvenience at benefit stage will create a negative impact of overall service
experience on customers (Dai & Salam, 2014; Kaura et al., 2015; Rao et al., 2016). Aagja
et al., (2011) and Colwell et al., (2008) verified that benefit convenience has a strong
effect on customer satisfaction. Customer’s essential benefit convenience in online
shopping is the safe and timely delivery of the product. According to Aagja et al., (2011)
customers are more satisfied when the benefit convenience in terms of flexible delivery
timings will be provided on demand. On the basis of above rational the hypothesis is
constructed as;
11
Hypothesis 4: Benefit convenience has a significant impact on customer satisfaction.
2.4.5 Post Benefit Convenience
It refers to the customer perceived time and effort required after the benefit stage
when customer has completed the purchasing of service or product but for a particular
reason have to get in touch with the firm (Jiang et el., 2013). This convenience is mostly
depend on the need of the customers like whether they want to return any product or has
to obtain any maintenance service from the company (Kaura et al., 2015; Rao et al.,
2016). Chang et al., (2010) has supported that convenience in post benefit, experienced
by customers is positively associated with satisfaction. On the basis of above rational the
hypothesis is constructed as;
Hypothesis 5: Post benefit convenience has a significant impact on customer satisfaction.
According to the aforementioned literature, a hypothesized framework that shows
the connection between service convenience in home delivery and customer satisfaction
is structured in Figure 1.
< Insert Figure 1 here >

12
3. METHODOLOGY
This section covers the research methods in order to analyze the relationship
between five kind of service convenience and customer satisfaction in home delivery
obtains through online shopping.
3.1 Research Approach and Design
Quantitative research used numerical data for statistical analysis and allows the
researcher to generalize result from a sample to an entire population (Duffy 1985). It is
basically a deductive approach that involves the construction of hypotheses which are
free from researcher’s own values and biasness (Frankfort-Nachmias & Nachmias, 1992).
Counting and measuring of specific set of data i.e. gathered through survey is performed
in quantitative research and the result obtain after measurement is considered as reliable
and valid (Bryman, 2015).
Hence in this study the research approach used is quantitative that includes
numeric data of variable, attempted to analyze the perception of the respondents with
respect to service convenience. Furthermore, the design of this study is based on co-
relational research. In this kind of research, the researchers determined whether the
relationship exists between the variables and to what degree (Johnson, 2001).
3.2 Data and Sampling
Data was collected from the customers who had utilized the home delivery service
through online shopping with in the last one year, the reason of gathering data from them
is because their remembrance according to the home delivery experience is clear. The
13
sample size is 250 and the sampling process used to analyze the experience of respondent
related to home delivery service, was convenience sampling and this process was adopted
because of ease of accessibility and proximity to the researcher (Anderson & Mittal,
2000). Collecting data through web based is beneficial in a way that researcher gets an
accurate answer of the survey as it allows the respondent to give answer at their
convenience (Granello; Wheaton., 2004). Whereas, paper based survey is consider as an
alternative option in this study which help to reach to those who are not contacted
through internet.
3.3 Instrument
A structured questionnaire consists of 31 items; used to measure the five variables
of service convenience and customer satisfaction. The questionnaire is based on five-
point Likert scale, ranging from 1-strongly disagrees to 5-strongly agree. It is based on
two sections, first one encompasses of variables to measure and the second one contains
the information regarding demographics. The 26 measuring items of service convenience
was adopted from past researches (Berry et al., 2002; Colwell et al., 2008). Whereas, five
items that are used to measure the dependent variable, was adopted from the research of
Olorunniwo and Li (2010).
3.4 Variable Description
3.4.1 Customer Satisfaction
In this study customer satisfaction is very important factor. The business will
prosper when the customer is satisfied and this will happen when he/she experience more
required and relevant service convenient from the service provider (Berry et al., 2002).
14
Therefore, the service provider who wants to succeed must provide service convenience
to the customer (Berry et al., 2002; Liang and Wang, 2006).
3.4.2 Decision Convenience
Decision convenience is the first stage of convenience when customer is actually
deciding that he is getting enough information from the company to obtain this particular
service. For example that online retailer has providing him sufficient information related
to delivery charges, brand or product prices and warranties. Because on the basis of
information given by the company customer will take his purchase decision so for the
companies it is important to make a decision stage more convenient (Berry et al., 2002).
3.4.3 Access Convenience
This is the second stage where customer is spending its time and effort to initiate
the service through contacting them or the stage where customer is approaching the
service provider (Berry et al., 2002). For example in online purchasing the convenience
in accessibility is the ease in ordering or the communication with the service provider at
what time he wants to. This is crucial for customers because shortage of time will not
permit them to talk to the service provider at some restricted time or location (Seiders et
al., 2000).
3.4.4 Transaction Convenience
Transaction convenience starts when customer has decided to utilize this service
and also approach to the service provider. And between them a contract is being occurred
which is swapping of product and money (Meuter, Ostrom & Roundtree., 2000). Thus in
online retailing the transaction convenience is that the company is providing the multiple
15
options of payment or not. In online shopping the customer is also concerned about the
transaction convenience because of the cyber crime.
3.4.5 Benefit Convenience
This is the stage when customer comes in the contact with the benefits of the
particular service or product. And when this convenience will not satisfy customer then
the experience build with other conveniences will possibly diminishes because this is
bringing customer to experience the core benefit of the service (Berry et al., 2002). For
example customer go for online shopping because he want the product by sitting at home
as soon as possible and when the company delayed in delivering the product or don’t
provide the product in the safe manner then this inconvenience will take customer to the
dissatisfaction level.
3.5.6 Post Benefit Convenience
This stage occurs when customer has experienced the core benefit of the service
but still getting an advantage from the service provider (Berry et al., 2002). This kind of
convenience will help companies to develop an unending relation with the customer and
because of this customer will not switch to other company (Berry et al., 2002). According
to the study the reverse logistics is considered as a post benefit to the customer that he
can easily returned the product or take a maintenance service from the company.
3.6 Demographic profile of respondents
A total of 255 questionnaires were filled by the respondents and 100% data
returned from them, from which 5 were discarded because the information obtained from
them is inappropriate. After discarding, the 250 responses are left which are useable, and
16
representing 98% of response rate. Of them, 20 were found as multivariate outliers as per
the criteria of Mahalonobis distance as suggested by Tabachnick and Fidel., (2007).
Of these 230 questionnaires, 45 percent were completed by male respondents,
while 55 percent were completed by females. Regarding the age distribution of the
respondents, those between 26 and 35, which accounted for 54.7 percent followed by
those between 20 and 25 accounted for 20% percent. Regarding the education, the
majority 54.7 percent were post graduates, followed by the graduates 30 percent. The
majority 37.8 percent earn an income ranges from Rs.25,001 to Rs.30, 000 per month.
Finally, regarding the objects delivered most often, clothes accounted for 33.9 percent,
electronic items for 28.2 percent, books accounted for 7.3 percent, jewelry accounted for
19.1 percent, and miscellaneous accounted for 11.3 percent. The demographic profile is
summarized in Table 1.
< Insert Table 1 here >
4. DATA ANALYSIS
4.1 Common Method Variance (CMV)

Common method variance refer to the observed variance or error that is being
caused because of the measurement procedure rather than the variance that is shared
among the constructs (Bagozzi & Yi 1991). Many researchers have urged to address the
CMV prior to hypotheses testing (Afshan & Sharif 2016; Najmi, Raza & Qazi 2017;
Ahmed & Umer, 2017). For the issue, Harman’s single factor test was used as discussed
by (Podsakoff et al., 2003). By using promax roation in principal axis factoring
framework while fixing the extraction to 1 factor, the total accumulated variation was
found to be 37.98% which is less than the threshold of 50%. Thus the test shows the
absence of the CMV.
17
4.2 Factor Analysis
Factor analysis is a data reduction technique. It basically reduces large number of
factors in to smaller number of factors (Tabachnick and Fidel., 2007). Exploratory factor
analysis is done in this study and it yields different results i.e. firstly it shows the value of
KMO (Kaiser Meyer Olkin). KMO basically measures the adequacy of the sample size; if
it is greater than 0.55 (Leech., 2005) then the sample size is adequate whereas, Bartlett
sphericity test measures the correlation among the variables and the significance value (p
< .05) indicates that the correlation matrix is not an identity matrix means correlation is
highly enough for factor analysis (Leech et al., 2005). Here the result of KMO shows
value 0.901 which is more than 0.55 and similarly the significance value of Bartlett test is
less than (p< 0.05) i.e. it is significant. The result of both KMO and Bartlett test in Table
2 shows that the data is appropriate for factor analysis.
The Table 3 shows total variance explained, six factors were requested because
the study includes six variables which are decision convenience, access convenience,
transaction convenience, benefit convenience, post- benefit convenience and customer
satisfaction. The first factor accounted for 12.51% of variance, the second factor
accounted for 11.97% of variance, the third factor accounted for 11.91% of variance, the
fourth factor accounted for 11.32% of variance, the fifth factor accounted for 10.65% of
variance, the sixth factor accounted for 9.97% of variance and having the cumulative
variance of 68.3% which indicates that the data collected for the research is appropriate
and the factors which are formed are useful (Leech., 2005).

18
4.3 Reliability Analysis
Table 4 shows the internal consistency of the questionnaires filled by 230
respondents. Internal consistency is measure by Cronbach’s Alpha value. Value above
0.7 means that it matches the internal consistency of the instrument (Arif, Aslam, & Ali,
2016; Raza & Hanif, 2013; Nunnally, 1978). Here, the value of all independent and
dependent variables are greater than 0.7.
4.4 Convergent and Discriminant Validity
Furthermore, in this study the convergent and discriminant validity are assessed
by exploratory factor analysis. When the items of the variable are related with the items
of the same variable i.e. showing high correlation with each other then convergent
validity is established. Whereas, discriminant validity is an extent in which the items of
one construct shows less correlation with the items of other construct. According to Hair
et al., (2010) discriminant validity demonstrates that the construct is unique to other
constructs means it does not capture the phenomena of others.
Convergent validity is established when the indicator’s of factor are loading in the
same construct and are greater than 0.5 (Hair et al., 2010; Nunnally.,1978). The result
shows that the items of each construct are greater than 0.5, this high inter correlation
among items of the same construct demonstrate that they are converging for the same
thing. After that, discriminant validity is examined. In this context, dicriminant validity is
analyzed by rotated component matrix. According to Floyd and Widaman (1995) items of
every variable loaded in its particular variable and no cross loading of items occur in any
other variables shows that they are distinct from each other i.e no correlation occur
among the items of different variables it means they are explaining what they meant to be
19
explained. Here, the result shows that the discriminant validity is established as all the
factors are loading in their own construct.

20
4.5 Regression Analysis
According to Leech, (2005) the significant value (p < .001) of regression
demonstrate that how well combination of predictor variables predict the outcome
variable. The Table 5 shows the significant value less than 0.05 this indicates that the
combination of independent variable predicts dependent variable significantly well.
The Table 6 shows the value of multiple correlation coefficient (R). Value of R is
used to determine the correlation between independent and dependent variables (Leech,
2005). Here, its value is .765 which means that dependent and independent are highly
correlated. Whereas, the value of R2 indicates that how much dependent variable is
explained by independent variables (Nagelkerke, 1991). The result of this study shows
that independent variables are explaining 58.5% of dependent variable. Moreover, the
adjusted R2 explain 57.6% of deviation is captured by the model.
Further, multicollinearity analysis has been done in our data. It is the case of
multiple regression, applied to determine whether the independent variables are
themselves highly correlated or not. It is measured with VIF and when the value of VIF is
more than 10 it means that correlation among independent variable is high and it is
damaging dependent variable (Hair et al., 2010). In Table 7, the results of the test shows
that our predictor variables are not highly correlated as the value of VIF of all variables
are less than 10.

21
The multiple regression analysis was used to measure the effect of five service
convenience factors on customer satisfaction in home delivery service of online
shopping. The regression result is presented in Table 7.
The Table 7 shows the relationship between independent variables “Decision
Convenience, Access Convenience, Transaction Convenience, Benefit Convenience and
Post-Benefit Convenience and dependent variable Customer Satisfaction. The value of B
shows that how strongly independent variable is impacting dependent variable. In the
above table all the independent variable has a positive relationship with dependent
variable as the value of Beta is positive. Additionally we find that Post benefit
Convenience has a greater impact on customer satisfaction with the highest value of PC
(B =.437, P< 0.05). Whereas, transaction convenience and decision convenience are
having second and third most impact on customer satisfaction with the beta value of TC
(B=. 224, P < 0.05) and DC (B=.140, P<0.05). Meanwhile the less impact on customer
satisfaction is of benefit convenience and access convenience with the value of BC
(B=.135, P<0.05) and AC (B=.088, P<0.05).
Moreover, the Table 7 also shows the significant relationship between all
independent and dependent variables except access convenience which is having the
significant value more than 0.05 i.e. showing an insignificant impact. The impact of
independent variables to dependent variables are also outlined in the revised
hypothesized framework which is presented in Figure 2.
<Insert Figure 2 here>

22
5. CONCLUSION AND DISCUSSION
This research is aim to identify that whether different types of service
convenience have an impact on customer satisfaction in home delivery of online
shopping. According to Liu, He, Gao., (2008) the home delivery is not just getting the
product safe and on time but the other factors are also associated with it. The factors
which are related to home delivery in online shopping are like making the information
available to customer, provide them security so they can easily do purchasing, make
service provider available to customers when needed and after sales customer service is
also an important element for customer satisfaction (Yan & Dai., 2009). The main
purpose of conducting this research is to provide the insights to online retailers, that
whether five types of service convenience in online home delivery service is affecting
customer satisfaction and which convenience is most important to them. To identify this,
different statistical techniques has been applied on the sample size of 230. Overall, the
results from this study have endorsed previous researches except for the variable of
access convenience. The insignificant effect of access convenience on customer
satisfaction shows that customers are considering online shopping as a virtual store where
they can complete the purchasing process by themselves and not require any service
provider (Ahn, Ryu and Han; 2005). This also explains that because the design of the
website of online retailer is so proficient that customers can easily found any information
they need, that’s why the accessibility to service provider is insignificant to them.
Additionally, findings revealed that post benefit convenience have a great impact on
customer satisfaction followed by transaction convenience, decision convenience and
benefit convenience.
23
The result of benefit convenience shows positive and significant impact on
customer satisfaction but as compared to other conveniences it is having less
significance, which is contrast to previous findings (Chen, Chang, Hsu, Yang., 2011)
where benefit convenience is considered as an element having the highest impact on
customer satisfaction. Although benefit convenience is the most crucial convenience
which customers are looking for as they want the product reliably, conveniently and
quickly by sitting at home and during online shopping the only tangible thing customers
get are the product they receive after delivery. But here the less significance impact of
benefit convenience and greatest impact of post benefit convenience explain that
customer of Pakistan have different preferences related to convenience like usually
customer wants timely and safe delivery of the product but here the customer want that
the company will provide them a guarantee of product return because as the product is
intangible to customers and sometimes customers had not received what they want so due
to this, the demand of services like return, exchange and complaining regarding the
product damage is increasing among them and they expect that they can easily return or
get the refund when they are not satisfied. According to Goebel, Moeller & Pibernik
(2012) transaction convenience is necessary for the satisfaction of customer as most
customer finds difficulty in concluding the purchase due to complex payment procedure
and our result is consistent with this finding.
The positive and significant impact of decision convenience on customer
satisfaction shows that information act as an important tool in making any decision same
it is necessary when people do online shopping (Lim and Dubinsky, 2004). The
availability of right, reliable and appropriate information about the product and brand is
24
the key requirement of a customer to make the buying decision (Senecal, Kalczynski,
Nantel.,2005).
After analyzing the data the result shows the lowest beta value of benefit
convenience which is indicating that it is having less significant impact on customer
satisfaction as compared to decision convenience and transaction convenience, because
according to Franzak et al., (2001) when the information is not reliable and complete or
when the payment procedure is not secure then how customer could able to purchase the
right product. This explains that before receiving the product, the customer has to
experience other conveniences and those conveniences are too important to them.
5.1. Recommendation
For every organization the key to success are their satisfied customers. Supply
chain was used to ensure that companies have supplies to make and a product to deliver,
in full and on time. But as time passes the expectations of customers from online retailers
are changing due to which only receiving a product on time is not enough for them. Now
customers are demanding a service which is convenient for them from which they can
reduce their non monetary cost (time and effort). So the online retailers who want a
competitive differentiation must have to make their supply chain customer facing.
Based on the results, this research provides the recommendation for future
improvement in the home delivery of online retailers. By focusing on these suggestions
the online retailer can enhance the whole home delivery experience of customers and
gain competitive advantage means that generate convenience for customers in deciding
25
what product to purchase, till the fast and safe delivery of the product and also provide
the assurance of return policy.
According to (Liu, Gao and Xie, 2008) that whenever, customers go for online
shopping the major risk associated with it is that whether they get the same product they
ordered because they haven’t touch the product as they normally do. This risk is called
post purchase risk. To minimize this risk and to increase the satisfaction level of
customer the companies should have to improve their post benefit convenience.
According to Zeithaml (2000) unresolved or unreported complaints generally result in
decreased in customer satisfaction. The result of this research also shows a highest impact
of post purchase on customer satisfaction.
In Pakistan many of the online retailers lacks in offering after sale customer
service. The companies who want to gain a competitive advantage must start thinking of
providing effective post benefit convenience like to solve the problems related to product
damaged or product exchange as soon as possible. Moreover, the services related to
maintenance of product are also highly appreciated among customers.
Improvement in transaction convenience is also important for the online retailers
as it has second highest significant impact on customer satisfaction. Companies should
make sure that the procedure of payment would be less time consuming and guarantee the
customers that it is safe and secure if it is done via online or some other means. Because
of the increasing crime cases in Pakistan has make customer reluctant to trust. So it is
important for online retailers to provide a safe and convenient online shopping
environment.
26
Providing complete and reliable information to the customers is important for the
companies in order to provide a convenience in making decision. Koivumaki (2001) finds
that displaying pictures of the goods’ has greater influence on customer’s purchase
decision than just listing out the product description. After analyzing the result of this
study it is recommend that companies must have to provide information as complete as
possible, including the color, functionality, producer, model, and most importantly
picture of the product.
To satisfy customers in today’s competitive world of e-market, online retailers
must have to focus on the benefit convenience of the online shopping. As in Pakistan the
business of e marketing is growing day by day but still many online retailers are fail to
provide quick and secure delivery of the product as their logistic infrastructure lags.
According to delayed delivery, and not getting product at their original condition will
result in the dissatisfaction of the customers. So here is to recommend that in order to
sustain in the market the companies should start focusing on the improvement of delivery
service which is very crucial for customers.
By providing free delivery up to certain amount of shopping or providing
discounts for the next time delivery and making sure that the product reaches to them in
an efficient and safe manner will help company to attract and retain customers.
5.2. Future Suggestions
As present study discusses the common features of home delivery service so it is
suggested to focus on any single specific online retailer. As access convenience has not
27
having a significant effect on customer satisfaction. For that it is recommended to focus
on any other variable which would be helpful in gaining customer satisfaction like
website attributes which hold effective features and customer will not need service
provider for any query. This service convenience model can be applied on courier service
companies to analyze its impact on customer satisfaction.

28
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Here, the solid line indicates the significant impact of independent variable on dependent
variable and the dotted line indicates the insignificant impact. Likewise, (**) specify
Significant at 5 % whereas, (***) shows Significant at 1% Level of Significance.
38
39
Table 1: Demographic profiles of Respondents

Demographics Numbers Percentage
Gender Male 103 44.7%
Female 127 55.2%
Age 20 or less 30 13%
20-25 46 20%
26-30 126 54.7%
31-35 12 5.2%
36-40 9 3.9%
41-45 4 1.7%
Above 45 3 1.3%
Education Intermediate 23 10%
Graduate 69 30%
Post Graduate 126 54.7%
Above 12 5.2%
Income Unemployed 12 5.2%
20,000 or less 46 20%
20,001-25,000 18 7.8%
25,001-30,000 87 37.8%
30,001-35,000 51 22.1%
35,001-40,000 7 3%
40,001-45,000 5 2.1%
45,001 or Above 4 1.7%
Items Books 17 7.3%
Clothes 78 33.9%
Jewelry 44 19.1%
Electronic 65 28.2%
Miscellaneous 26 11.3%
Source: Authors Estimation
Table 2: KMO and Bartlett’s Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .901
Bartlett's Test of Sphericity Sig. .000

40
Table 3: Total Variance Explained

Rotation Sums of Squared Loadings
Component % of Variance Cumulative %
1 12.518 12.518
2 11.972 24.49
3 11.916 36.405
4 11.32 47.725
5 10.656 58.381
6 9.927 68.308
41
Table 4: Rotated Component Matrix

Component
1 2 3 4 5 6
Post-Benefit
Convenience
Pben 4 795
Pben 5 .732
Pben 1 .663
Pben 3 .624
Pben 2 .551
Customer Satisfaction
Csat 1 .745
Csat 2 .711
Csat 3 .690
Csat 5 .628
Transaction Convenience .
Tra 2 769
Tra 4 .763
Tra 3 .684
Tra 1 .653
Access Convenience
Acc 3 .763
Acc 4 .733
Acc 2 .690
Acc 5 .653
Benefit Convenience
Ben 2 .846
Ben 3 .806
Ben 1 .758
Decision Convenience
Dec 5 .778
Dec 4 .769
Dec 6 .699
Cronbach Alpha 0.802 0.872 0.844 0.785 0.883 0.757
Table 5: ANOVA
Model Sig.
1 Regression .000
42
Table 6: Model Summary

Model R R Square Adjusted R Square
1 .765 .585 .576

Table 7: Regression Coefficients

Model B t Sig. VIF
(Constant) -.025 -.124 .901
DC .140 2.511 .013** 1.526

AC .088 1.545 .124 1.611
TC .224 3.765 .000*** 1.872
BC .135 2.583 .010** 1.658
PC .437 8.235 .000*** 1.361
Note: DC= Decision Convenience; AC= Access Convenience; TC= Transaction
Convenience; BC= Benefit Convenience; PC= Post-Benefit Convenience; ***
Significant at 1%; ** Significant at 5%.
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Understanding the impact of service convenience on customer satisfaction in

Article in International Journal of Electronic Customer Relationship Management · January 2017

Statistics Anxiety View project

Supply chain management View project

The user has requested enhancement of the downloaded file.

Syeda Marium Mehmood1

should have to focus in providing convenience services in order to increase customer

Keywords: Home Delivery; Service Convenience; Customer Satisfaction; Online Shopping;

The numerous benefits of online shopping are attracting customers to purchase

the profitability (Mentzer & Williams, 2001).

retailers more complex. Because a product purchased online or “virtually” cannot be

customers so it is become necessary for the companies to provide valuable delivery

& Parasuraman 1988).

customers. Service convenience is basically a convenience which reduces customer time

customers and expand the competitive advantage to highest level.

retailers are getting ready to enter (Sulaiman, Mohezar,& Rasheed.,2007).

As the culture of Pakistan in terms of online shopping is emerging rapidly, it is

satisfaction are strongly related to each other. According to researchers knowledge, in an

is a need of identifying the impact of service convenience in home delivery of online

shopping on customer satisfaction.

Progressively convenience is becoming an important factor for the customers who

strengthen their market position.

Therefore, scope of the study is customer driven, primarily inspired by the

convenience influences more to customers. Furthermore, it will also serve as a future

empirical evidence of home delivery service, customer satisfaction and service

convenience of online shopping, followed by a Hypothesized framework regarding

methodology with respect to research framework which describes the application of

2. REVIEW OF RELATED LITERATURE

2.1 Theoretical background

any business (Garbarino & Johnson, 1999).

continuously innovating, discovering, planning new strategies and trying to provide

2.2 Home Delivery

Abdullah, 2010). It is gradually gaining importance among customers because of

customized service to them (Ehmke et al., 2012).

2.3 Customer Satisfaction

2.4 Service Convenience

Service convenience is basically the little strength put by the consumers to

different stages of purchasing a service.

2.4.1 Decision Convenience

appearance (Chang et al., 2012). Decision convenience is positively associated with

provider it is necessary to attract customer’s attention to their specific service through

above rational the hypothesis is constructed as:

Hypothesis 1: Decision convenience has a significant impact on customer satisfaction.

2.4.2 Access Convenience

involves the accessibility of the consumer to the product or service or organization.

2016). Access convenience is important to customers because if they have issue

basis of above rational the hypothesis is constructed as:

Hypothesis 2: Access convenience has a significant impact on customer satisfaction.

2.4.3 Transaction Convenience

decision of purchasing (Jiang et el., 2013). The convenience in transaction is necessary

it simple or giving other means of payment will increase customer satisfaction.

impact on customer satisfaction. On the basis of above rational the hypothesis is

Hypothesis 3: Transaction convenience has a significant impact on customer

2.4.4 Benefit Convenience

effect on customer satisfaction. Customer’s essential benefit convenience in online

Hypothesis 4: Benefit convenience has a significant impact on customer satisfaction.

2.4.5 Post Benefit Convenience

hypothesis is constructed as;

Hypothesis 5: Post benefit convenience has a significant impact on customer satisfaction.

According to the aforementioned literature, a hypothesized framework that shows

< Insert Figure 1 here >