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Fatehi Almugari
Department of Commerce,
Aligarh Muslim University,
Aligarh, India
Email: fatehi26@yahoo.com
Eissa A. Al-Homaidi
Department of Commerce,
Aligarh Muslim University,
Aligarh, India
Email: eissa.alhomaidi2020@gmail.com
Moatasem M. Qaid
Department of Commerce,
Dr. Babasaheb Ambedkar Marathwada University,
Aurangabad, India
Email: moatasemalhage@gmail.com
Abstract: The study aims at examining dimensions that may affect online
shopping satisfaction of Indian customers. The proposed model describes
website design, product information, security and privacy, perceived usefulness
and perceived interactivity that may influence customer satisfaction in online
environment. Online and offline surveys are coordinated and self-regulated for
online shoppers in Aligarh, UP, India. The study included a total of 497 online
shoppers. Confirmatory factor analysis was applied to check questionnaire
validity and reliability. A structural path model applied to examine the study
hypotheses. The empirical results indicated that product information, website
design, security and privacy, perceived usefulness have significant and positive
influence on the customer satisfaction toward online shopping in India. Also,
the results revealed insignificant relationship between perceived interactivity
and customer satisfaction toward online shopping. The findings of this study
are limited to the customers in Aligarh City, UP, India. Future research can
extend the geographical area of respondents. The results of this study will
enhance and extend the online retailers’ understanding of the roles of website
design, product information, security and privacy, perceived interactivity, and
perceived usefulness in enhancing online shopping and customer satisfaction in
emerging markets like India.
Amgad S.D. Khaled completed his PhD from the Department of Business
Administration, Aligarh Muslim University (AMU), Aligarh, India. His areas
of interest are in the field of innovation, operation, retail, and marketing. He
has participated in several national and international conferences. Further, he
has authored and co-authored numerous articles in different prestigious Scopus
journals including Inderscience, Taylor & Francis and some other publishers.
1 Introduction
The internet became a global network of interconnections for supply and sharing of
information for domestic as well as international transaction platforms (Al-Debei et al.,
2015). Companies such as Amazon, Tenecent, Groupon and Alibaba have successfully
executed an example of enterprises that change bricks and mortar to bricks and clicks.
Many predictors suggested that Indian online shopping is expected to increase rapidly
(Gehrt et al., 2012). India is among of the world’s fastest growing economies, and the
world’s fourth largest GDP parity buying power economy with an annual growth rate of
$3.36 billion. Expectations of growth certainly applied to the Indian retail sector
(Srivastava, 2007). Nevertheless, India became the world’s second biggest internet
business in 2019. The internet users are expected to increase in both urban and rural
areas, reflecting a rapid growth in internet use. The Indian digital population amounted to
approximately 688 million active users by January 2020. Mobile internet users now
dominate on the second largest internet market (Diwanji, 2020).
In the last ten years, the changes in consumer behaviour have led companies to
immerse themselves in consumer technology. Zero physical purchase experiences find it
impossible to decipher the online activity of customers (Arnott et al., 2007; Jiang et al.,
2008). Huge investments in interactive customer capture have prevented online sellers
from understanding buyers’ behaviour. Although steps have been made by both the
private and the government sectors to expand online shopping, conventional shops
remain an instinctual choice for most consumers (Ramayah and Ignatius, 2005).
A research by IPSOS Free Thought Forum (Marketing Charts, 2012) showed that
56% of respondents in 24 nations choose to go shopping, not online (Marketing Charts,
2012). Although only half of consumers are purchased online in developed countries
(NPD Group, 2011) and only 63% are surveyed online before they purchase standard
consumer electronics. Although several research projects for online shopping have been
carried out. However, online studies of factors affecting Indian customers’ satisfaction
are comparatively scarce.
When online delivery practice grows, it is critical to have a thorough and popular
understanding of elements, which contribute to enhance customer satisfaction (Gupta and
Tripathi, 2018). Previous studies explored dimensions affecting the satisfaction toward
online shopping such as the perceived usefulness (Liao and Shi, 2009; Hernandez et al.,
2009; Ha and Stoel, 2009; Wu, 2013), perceived usability (Flavián et al., 2006; Casaló
et al., 2008), and website design (Khare and Rakesh, 2011; Prasad and Aryasri, 2009;
Gehrt et al., 2012).
Many studies, about customer satisfaction in the online context, have been researched
and widely published in India. Thiyagarajan (2019) recommended that the online retailers
should take measures to understand the pattern changes among Indian customers. Also,
SivaKumar and Gunasekaran (2017) confirmed that the perceived benefits, perceived
risks are critical determinants of Indian customer satisfaction in the online environment.
Kiran et al. (2008) mentioned product warrantee and product information have an impact
on the online shopping patterns of customers in India. Furthermore, Nair and Prabhakar
(2009) noticed that the lack of orders, security and privacy are the key concerns faced by
online shopping in the Bangalore Region, India. Prasad and Aryasri (2009) have shown
web store design, convenience, online shopping enjoyment, and customer service have a
significant effect on willingness to online shopping.
Factors influencing consumer satisfaction toward online shopping 239
The current paper is one of a few attempts that concentrated on factors that may effect
on the Indian consumer satisfaction in the online environment. The impact of product
information, website design, security and privacy, perceive usefulness, perceived
interactivity are sought to determine the level of customer satisfaction toward online
shopping in India. For instance, if the website design, security and privacy are high, the
satisfaction should also be high. In spite of many advantages of online shopping, it has
some limitations such as lack of shopping experience, delay in delivery, frauds, and so
on, which effect customers satisfaction toward online shopping.
intentions. Chen and Barnes (2007) claimed that internet shopping is a useful tradition.
Hernandez et al. (2009) mentioned that the reactivity and self-efficacy of experienced
users are two important insights into their behaviour and that ease of use for established
customers is meaningless. Tong (2010) noted the invariant effect perceived to be useful
when comparing China with USA consumers in online shopping. Moreover, Luarn and
Lin (2005) argued that the greater online transactions are a result of greater perceived
usefulness. Similarly, Rezaei et al. (2014) mentioned that there is a significant effect of
perceived usefulness toward online repeated purchase among the Malaysian consumers.
Ramadania and Braridwan (2019) concluded that the higher perceived usefulness, ease of
use, attitude, self-efficacy, and subjective norms, the higher the effect toward intention to
use online shopping. In addition, Tandon et al. (2017) found that the usefulness has a
significant but negative impact on the customer satisfaction among the Indian customers.
To examine the role of perceived usefulness in the online shopping; we suggested the
following hypothesis:
H4 Perceived usefulness is significantly effect customer satisfaction toward online
shopping.
3 Research model
The study model consists of the predictors of online shopping satisfaction; including
product information, website design, security and privacy, perceived usefulness, and
interactivity. The proposed model is shown in Figure 1.
Product
information
Website
design
Customer
Security and satisfaction
privacy
Perceived
usefulness
Perceived
interactivity
4 Research methodology
City. Therefore, the data collected using the convenience sampling technique. Both
online and offline survey distributed to respondents. Convenience sampling technique is
accepted and efficient with many previous studies, investigating the customer satisfaction
in the online environment (Cai and Jun, 2003; Yoo and Donthu, 2001; Park and Kim,
2003; Hsiao et al., 2010; Ha et al., 2010; Carlson and O’Cass, 2010; Sheng and Liu,
2010). Furthermore, the sample respondents are selected because they are considered
representative of the online shoppers in Aligarh and were assumed to meet the goal of
this study (Fang et al., 2011; Churchill, 1991). The criteria used are that the online
shoppers in Aligarh should be familiar with online shopping, have internet access, and
experience in online purchase.
Moreover, social media, like WhatsApp, Facebook and e-mail, are used for delivering
the online survey (Hsiao et al., 2010). A filtering question is used to settle whether the
online shoppers had experienced the online shopping from any website in India.
Respondents with positive answer continued with the other elements of the questionnaire.
Following the recommendations of Hsiao et al. (2010), the study questionnaire was
directed only to those who had previous experience in online shopping. The researcher
sent instant messages to peers, social groups, and friends and request them to resend the
questionnaire to their peers. In addition, we distributed 400 hard copy questionnaires for
the customers located in offices, banks, and malls. About 500 mail addresses are
contacted and 400 questionnaire copies are offline distributed, among which 497 of
Aligarians online shoppers agreed to participate and fill the questionnaire.
5 Data analysis
Two stages are followed to analysis the data. First, the EFA was used to construct the
study factors: perceived interactivity, security and privacy, perceived usefulness, website
design, product information, and customer satisfaction. Second, the SEM was applied to
check the link between proposed variables and customers satisfaction.
Table 2 Factor correlation matrix with the square root of the EVA
Security
Perceived Product Website Perceived
Satisfaction and
usefulness information design interactivity
privacy
Perceived 0.743
usefulness
Satisfaction 0.713 0.741
Product 0.681 0.736 0.720
information
Website design 0.670 0.750 0.689 0.660
Security and 0.598 0.671 0.554 0.533 0.663
privacy
Perceived 0.532 0.634 0.606 0.594 0.513 0.693
interactivity
Path
Path SE t-value p-value Supported
coefficient
Satisfaction ← Product 0.239 0.1 2.383 0.017** Yes
information
Satisfaction ← Website design 0.359 0.12 3.003 0.003*** Yes
Satisfaction ← Security and 0.284 0.095 2.976 0.003*** Yes
privacy
Satisfaction ← Perceived 0.144 0.082 1.76 0.078* Yes
usefulness
Satisfaction ← Perceived 0.109 0.077 1.416 0.157 No
interactivity
R2 0.732
Notes: *, **, *** indicate significance level at 10%, 5%, 1% respectively.
The structural results reveal that all study hypotheses are supported, except H5, which
was not supported. Product information has a positive and significant affected on
customer satisfaction (β = 0.239, t = 2.383) thereby supporting H1. Similarly, perceived
usefulness, security and privacy, website design, and perceived usefulness have a
significant effect on customer satisfaction with values of β = 0.359, t = 3.03, β = 0.284,
t = 2.976 and β = 0.144, t = 1.76, respectively. While, perceived interactivity has
β = 0.109, t = 0.1.416 positively but insignificantly influence customer satisfaction,
providing no support for H5.
The structural result simply that website design (β = 0.359, t = 3.03) and security and
privacy (β = 0.284, t = 2.976) put out the strongest influence on online shopping and
customer satisfaction. The structural results indicate that R2 is 0.732. Therefore, 73% of
Factors influencing consumer satisfaction toward online shopping 247
6.3 Discussion
The study aims at examining the dimensions influencing the customer satisfaction in
online environment in Aligarh City, UP, India. In emerging markets, like India, online
shopping is in the infancy stage and a few studies are conducted. Therefore, this study
will provide decision makers in online environment with effective strategies for
enhancing their websites. In addition, the study provides a valuable recommendations and
suggestions for improving the Indian customer satisfaction toward online shopping.
Therefore, there is a call to understand and examine the dimensions influencing
satisfaction of Aligarian customers toward online shopping.
The empirical results of this study support the efficacy and validity of the proposed
model. The constructed model hypothesised the positive and direct influence of perceive
interactivity, perceived usefulness, security and privacy, product information, and
website design on customer satisfaction in the online environment. Except the fifth
hypothesis, all the study hypotheses are supported. The proposed model in this study
interpreted 73% of the variance in consumer satisfaction toward online shopping in
Aligarh, UP, India. Therefore, this model is good and appropriate for investing online
shopping and customer satisfaction where R2 is higher than 70% (Gaur and Gaur, 2006;
Arlinghaus and Griffith, 1995).
In line with relevant and existing literature (Park and Kim, 2003; Richard, 2005;
Baubonienė and Gulevičiūtė, 2015; Sam and Sharma, 2015; Pratminingsih et al., 2013),
the study found that product information (consistent information, sufficient information,
updated information, understood information) is an essential dimension that mostly effect
the online shopping and customer satisfaction. The effective product information result in
high customer satisfaction. Also, Park and Kim (2003) improved the relation between
consistent information on websites and increasing customer satisfaction. Our findings
went side by side with Kim and Eom’s (2002) results that confirmed the positive and
strong relation between product information with enhancing online shopping and
customer satisfaction.
Furthermore, our study indicated that website design (easy browsing, illustrated
images, attractive design, easy pick up information) effect significantly the online
shopping and customer satisfaction. The influence of website on customer satisfaction
was discussed in literature (Koksal, 2016; Chitungo and Munongo, 2013; Mortimer et al.,
2015; Revels et al., 2010; Lee and Jun, 2007; Rezaei and Amin, 2013). Therefore, in
developing country, like India, this study provides essential contribution on the
importance of website design in enhancing online shopping and consumer satisfaction. In
addition, Indian researchers like Tandon et al. (2017) and Gehrt et al. (2012) identified
website design as an essential dimension in improving customer satisfaction in the online
environment. In addition, our result is in agreement with relevant previous results in
developed countries like USA (Dholakia and Zhao, 2010; Ha and Stoel, 2009; Lee and
Kozar, 2012).
In the same quest with previous studies like Lu et al. (2013), Weisberg et al. (2011),
Alshibly (2015), Mulero and Adeyeye (2013), Turan (2012), Grewal and Shiwani (2012)
and Al-Gahtani (2011) our study found that security and privacy (secured personal
information, safe transmission of customer information, protecting from third party)
248 F. Almugari et al.
The current study contributes academically and practically to the context of customer
satisfaction and online shopping. From the theoretical and academic aspects, the study
responded to salient calls that inspire the research on the essential dimensions of online
shopping and customer especially in the emerging markets like India. Also, the empirical
findings of this study go side by side with precious findings and as contribute in bridging
gap identified previously. Therefore, this paper will make an importance contribution in
enhancing and extending the understanding of the role of perceive interactivity, perceived
usefulness, website design, security and privacy, and product information in improving
the customer satisfaction in online environment.
Practically, our results are useful for online merchants in many ways. Online
merchants can earn valuable insights regarding dimensions influencing customer
satisfaction. In addition, online merchants can extend their understanding of essential
dimensions enhancing satisfaction in the online environment. Also, this study
recommended the online retailers to be more empathetic toward customers. Therefore,
online retailers need to pay more attention to product information, website design,
security and privacy, perceived usefulness, and perceived interactivity.
The study found that website design, security and privacy factors had created major
effect and their paths are the strongest on customer satisfaction in the online environment.
Therefore, the online merchants should focus on these factors as major dimensions of
customers’ satisfaction. For building website design, online retailers need to consider
Factors influencing consumer satisfaction toward online shopping 249
some elements like easy browsing, illustrated images, attractive design, and easy pick up
which would help in improving the website effectiveness and consequently would
enhance the level of customer satisfaction. In emerging market, like India, security and
privacy seem to be very essential for enhancing customer satisfaction where the customer
enjoys high level of uncertainty (Tandon et al., 2017). Protecting personal information,
safe transmission of customer information, and protecting from third party would help
enhancing the security and safety of Indian customers and consequently enhancing the
customer satisfaction. Further, the study concerning the positive and significant impact of
product information and perceived usefulness on customer satisfaction toward the online
shopping. Consistent information, sufficient information, updated information, and
understood information may enhance the Indian customers toward the online shopping. In
addition, online shopping designers need to enhance the customers’ perceived usefulness
via focusing on improving the task productivity, improving website performance, and
easy browsing.
One-interested finding is the positive and insignificant link between perceived
interactivity and customer satisfaction. Therefore, it is expected that Indian customers
find it difficult to cope with the online shopping procedures. Online merchants need to
take this finding in consideration to make their websites more interactive with the
customers. This can be produced by improving the communication between customers
and online retailer. Online retailer should encourage and facilitate the communication
with their customers.
Theoretically, the study provides academicians and researchers with many
implications. In emerging markets, like India, the study will help in improving the future
research about customer satisfaction in online environment. Both researchers and
academicians will extend their understanding about the role of perceived interactivity,
perceived usefulness, security and privacy, website design, and product information in
influencing customer satisfaction in the online environment.
One limitation in this study is the small geographical area of respondents. All the
respondents of this study belong to Aligarh City, UP, India. Future research can enlarge
the respondents’ geographical area for the purpose of results generalisation. Another
limitation is the low responding rate of respondents. Researchers can reduce this
limitation by motivating respondents with small gifts and rewards.
The paper had figured out essential predicators of customer satisfaction in online
environment. However, the study found a week relation between suggested predictors
and customer satisfaction. Therefore, increased attention is required to these factors to
enhance their predictability. Also, future research can test our model through case studies
of specific websites. In addition, the study model can be applied to different semi-urban
and rural areas that have limited access to new technology. Also, the model can applied
to test the online shopping adoption of some cultural groups. Moreover, future research
may test the mediating influence among study dimension, for instance, attitude and
perceived usability may mediate the relationship between customer satisfaction and study
predictors.
250 F. Almugari et al.
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Appendix B