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Factors influencing consumer satisfaction Toward Online Shopping, a Special


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DOI: 10.1504/IJPM.2020.10036953

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236 Int. J. Procurement Management, Vol. 15, No. 2, 2022

Factors influencing consumer satisfaction toward


online shopping: a special reference to India context

Fatehi Almugari
Department of Commerce,
Aligarh Muslim University,
Aligarh, India
Email: fatehi26@yahoo.com

Amgad S.D. Khaled*


Department of Management Information System,
Aligarh Muslim University,
Aligarh, India
Email: amgad2011alprince@gmail.com
*Corresponding author

Majed Kassem Alsyani


University of Science and Technology,
Ibb City, Yemen
Email: alsyanym@gmail.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

Copyright © 2022 Inderscience Enterprises Ltd.


Factors influencing consumer satisfaction toward online shopping 237

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.

Keywords: product information; website design; security and privacy; perceive


usefulness; perceived interactivity; customer satisfaction; online shopping.

Reference to this paper should be made as follows: Almugari, F.,


Khaled, A.S.D., Alsyani, M.K., Al-Homaidi, E.A. and Qaid, M.M. (2022)
‘Factors influencing consumer satisfaction toward online shopping: a special
reference to India context’, Int. J. Procurement Management, Vol. 15, No. 2,
pp.236–256.

Biographical notes: Fatehi Almugari is a research scholar at the Department of


Commerce, Aligarh Muslim University (AMU), Aligarh, India. His research
interest is consumer behaviour, marketing strategies and data analysis.

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.

Majed Kassem Alsyani is an Associate Professor at the University of Science


and Technology, Yemen. His research interest is marketing strategies and
consumer behaviour. He has published numerous articles in many national and
international journals.

Eissa A. Al-Homaidi is a PhD research scholar at the Department of


Commerce, Aligarh Muslim University (AMU), Aligarh, India. He obtained his
BCom from the Faculty of Administrative Sciences, Taiz University, Yemen in
2013 and MCom in Finance and Accounting from the Department of
Commerce, Aligarh Muslim University (AMU), Aligarh, India in 2016. His
areas of interest are in the field of disclosure, financial performance, financial
reporting quality, Islamic finance, financial management, and corporate
governance. He has published several papers indexed in Scopus and SCI
journals in different countries.

Moatasem M. Qaid is a PhD research scholar in the D/O Commerce,


Babasaheb Ambedkar Marathwada University, India. He published many
papers in different journals in different countries. His research interests include
auditing- auditing management and corporate governance.
238 F. Almugari et al.

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.

2 Theoretical research framework and hypothesis development

2.1 Customer satisfaction and online shopping


Online satisfaction described as “the number of attributes that enable users not to move to
another location but to linger on the web” (Holland and Menzel Baker, 2001). Anderson
and Srinivasan (2003) stated that online satisfaction is the pleasure of the customers with
reverence to his experience with websites. Satisfaction determines whether the customer
decides to end or continue the relation with the service or product (Chung and Shin
2010). Satisfaction increases customer sustainable and retention growth in online shops
(Chen et al., 2012) and their intention to repurchase (Yiu et al., 2007).
The behavioural function has been taken into account for many years. Ajzen (1991)
defined the behaviour purpose as a customer’s intention to carry out various actions.
Also, Wang and Head (2007) and Khalifa and Liu (2007) validated the relationship
between intention to purchase back and customer satisfaction. Tsai and Huang (2007)
confirmed that satisfaction influence positively the Taiwanese customers toward online
purchasing intentions. Sánchez-García et al. (2012) found that satisfied customers
repurchase more than unsatisfied customers do. Therefore, satisfaction plays a key role in
decision-making for online retailers and shoppers (Gupta and Kim, 2010). In order to
enhance sales performance and consumer satisfaction, online retailers can understand the
history of on-line consumer satisfaction clearly and thoroughly.
Traditional retail environment is unlike the online shopping (Ranganathan and
Ganpathy, 2002). Therefore, the factors that may affect the customer satisfaction could be
dissimilar. Also, Flavián et al. (2006) improved the positive influence of usability on user
satisfaction. The dimensions of web service quality have been examined by Udo et al.
(2010). It is found that the quality of web services and content impacts positively on
customer satisfaction. In addition, Tandon et al. (2016) confirmed that perceived website
design and perceived usefulness are powerful dimensions of customer satisfaction in the
online environment. Zhang et al. (2012) determined perceived security, perceived
convenience, and computer proficiency as vital dimensions affecting the customer
satisfaction toward e-services. In addition, Alam and Yasin (2010) have recognised
delivery performance and website design as an essential precedent of online shopping
satisfaction.
In emerging markets, like India, a few studies examined online shopping environment
and customer satisfaction. In online shopping more studies are required to explore
dimensions that may influence the customer satisfaction. This paper is a unique
contribution to study the relation of product information, security and privacy, website
design, perceive usefulness, and perceived interactivity with customer satisfaction.
240 F. Almugari et al.

2.2 Product information and customer satisfaction


Richard (2005) mentioned that the perception toward the website contents is measured by
how informative it is. He also stated that particular product information related
significantly to website satisfaction. Sinha and Kim (2012) mentioned that “inability of
physical product examination and insufficient product information on screen may
increase concerns of consumers.” Baubonienė and Gulevičiūtė (2015) found that “an
important factor influencing the consumer’s decision to buy online is an availability of
product information on websites.” Sam and Sharma (2015) found that product/service
information on websites influences the purchase of online product/service. Pratminingsih
et al. (2013) mentioned that information contents, ease of use, innovation, safety
protection, transaction and delivery processes are dimensions influencing satisfaction in
the online environment.
The quality of product information is, according to Park and Kim (2003), the key
factor impacting customer satisfaction. Where, product information helps customers to
reduce costs of processing and searching (Alba et al., 1997). Further, Vijay et al. (2019)
found that information content has a critical influence on e-satisfaction among Indian
customers. In addition, Vasić et al. (2019) confirmed that customer satisfaction in online
shopping directly depends on many determinants among which are product information.
In addition, Abrar et al. (2017) found that customised information positively and
significantly influence online repurchase intention among customers in the online
shopping context. Based on the previous results, our first hypothesis is suggested:
H1 Product information is significantly affect customer satisfaction toward online
shopping.

2.3 Website design and customer satisfaction


Davis (1989) defined the website design as “the extent to which the user feels that using a
particular system would be easy.” It is how convenient the framework is for the user to
understand or use. Online shopping should be easy and simple for enhancing customer
satisfaction (Mortimer et al., 2015; Chitungo and Munongo, 2013; Koksal, 2016). Some
aspects like routing problems, small screen size and transaction problems will make
online shopping more complex. Convenient online shopping, with ease to use and learn,
may has a positive and significant effect on consumers’ satisfaction.
Website design is among the success dimensions in terms of online shopping and
customer satisfaction. Kaushik and Srinivasa (2017) found that website design has a
positive effect on Indian customers’ satisfaction in the online context. Revels et al. (2010)
identified website design as a powerful predictor of e-commerce customer satisfaction.
Likewise, Rezaei and Amin (2013) confirmed the positive relation between website
design, perceived usefulness and online shopping satisfaction. According to Jun et al.
(2004), merchants should focus more on the friendly and user-friendly website. Several
researchers have addressed the essential role of website design in terms of online
shopping satisfaction (Pandey and Parmar, 2019). Therefore, we hypothesis that:
H2 Website design is significantly affect customer satisfaction toward online shopping.
Factors influencing consumer satisfaction toward online shopping 241

2.4 Security, privacy, and customer satisfaction


Kim et al. (2008) mentioned “security and privacy refer to a shopping site’s taking
appropriate measures to protect consumers’ personal information from being misused.”
Those measures aim to prevent information leakage and to provide a safe online shopping
environment (Weisberg et al., 2011; Lu et al., 2013). Meeting such elements for privacy
and security lead to information protection mechanism of consumers’ transactions (Kim
et al., 2008; Weisberg et al., 2011; Lu et al., 2013; Forsythe and Shi, 2003). Therefore,
consumers’ satisfaction in the site will be enhanced. Also, Al-Debei et al. (2015) argued
that “for improving the level of consumer satisfaction, online shopping websites need to
pay attention to privacy and security aspects.” They considered security and privacy as
essential factors of decreasing perceived risks in the online environment. Therefore,
security and privacy have been considered as vital obstacles of online environment due to
their influence, positively or negatively, on forming the customer perception toward
online shopping.
Security and privacy are considered as dimensions in the centre of satisfaction in the
online environment (Alshibly, 2015; Mulero and Adeyeye, 2013; Turan, 2012; Grewal
and Shiwani, 2012; Al-Gahtani, 2011). Tandon et al. (2018) found that security and
privacy are significantly associated with Indian customers satisfaction in the online
environment. Accordingly, we hypothesise that:
H3 Security and privacy are significantly influence customer satisfaction toward online
shopping.

2.5 Perceived usefulness and customer satisfaction


Perceived usefulness is related with customers’ perception that online shopping may
enhance the performance of her/his transactions (Chiu et al., 2009). Davis (1989)
mentioned that the behavioural intention toward online shopping is formed mainly based
on a cognitive appraisal of the buying performance. Perceived usefulness had considered
as an essential predictor of consumer behaviour in online environment (Çelik, 2011).
Customers prefer to purchase a product that appeared to be useful. Alreck et al. (2009)
mentioned that online retailers who endorse faster accomplishment and time savings of
tasks gain more consumers in comparison with those who has only one of these features.
In the same quest, Chiang and Dholakia (2003) confirmed the vital connecting between
online shopping and perceived usefulness.
Zhou et al. (2007) mentioned that online shopping increased efficiency led to
customers repeated purchases. Chen and Barnes (2007) confirmed that the usefulness
perceived is the justification of online purchases. Also, Ha and Stoel (2009) mentioned
that perceived usefulness affects intention to online purchasing. Also, Hernandez et al.
(2009) found the usefulness is an essential key to grasp the consumer behaviour in the
online environment. In the same quest, Tong (2010) highlighted the vital role of
perceived usefulness in online shopping among the customers of China and USA.
Bhattacherjee (2001) suggested that the consumer would buy a product if it were
considered useful. Rohm and Swaminathan (2004) found internet shopping irrelevant for
preference, recreation and time savings. Zhou et al. (2007) found that purchases could
lead because customers are more inclined to buy online. Ha and Stoel (2009) suggested
that understanding services and behaviour online shopping influences online shopping
242 F. Almugari et al.

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.

2.6 Perceived interactivity and customer satisfaction


Interactivity is the capability of websites to dynamically generate outputs based on
customer queries. A well interactive website can give customers more satisfaction by
allowing customers more control over personalising the search (Ballantine, 2005;
Merrilees and Fry, 2003; McMillan and Hwang, 2002). Well-interactive website is
related with a specific concepts such as user control, direction of communication, time
(McMillan and Hwang, 2002), synchronicity, two-way communication, and active
control (Liu and Shrum, 2002). Studies like Merrilees and Fry (2003) and Fiore and Jin
(2003) found that interactivity of website influence positively the perceived trustworthy
and customer attitude towards an online retail store. Hoffman and Novak (1996)
mentioned that, to improve the website interactivity, two concepts should take into
consideration. Fist consideration, the ability of website to communicate with customers
effectively. Second consideration, the machine interactivity that refers to the capability of
the customer to evaluate and use hypermedia content. Therefore, a good interactive
website allows customers to communicate with others as well as interactively accessing
information using a website.
Marmorstein et al. (1992) found a positive relation between greater control of a
website content and customer satisfaction. Furthermore, Abdullah et al. (2017) found that
perceived website interactivity dimensions (two-way communication, responsiveness,
and user control) influences perceived ease of use and perceived usefulness of the
website. Consequently, websites with greater perceived ease of use and perceived
usefulness are more likely to influence online shopping intention. In online environment,
there are some empirical results suggested that online shopping is related to many
measures that determine the satisfaction (Devaraj et al., 2002), thus:
H5 Perceived interactivity is positively influence customer satisfaction toward online
shopping.
Factors influencing consumer satisfaction toward online shopping 243

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.

Figure 1 Conceptual model (see online version for colours)

Product
information

Website
design
Customer
Security and satisfaction
privacy

Perceived
usefulness

Perceived
interactivity

4 Research methodology

4.1 Survey instrument


Based on previous reliable and validated measures, a questionnaire was constructed to
collect the data from the online shopping users. Customer satisfaction items were
developed by Chung and Shin (2010), Chen et al. (2012) and Tandon et al. (2016).
Product information items were adopted from Sinha and Kim (2012) and Baubonienė and
Gulevičiūtė (2015). Outstanding website design elements mentioned by Wolfinbarger and
Gilly (2003), Prasad and Aryasri (2009), Mortimer et al. (2015), Chitungo and Munongo
(2013), and Koksal (2016) were included in this research. Security and privacy
dimensions were adopted from Al-Debei et al. (2015) and Grewal and Shiwani (2012).
Perceived usefulness items were endorsed from previous research of Wu (2013),
Hernandez et al. (2009) and Devaraj et al. (2002). Perceived interactivity items were
adopted from McMillan and Hwang (2002), Merrilees and Fry (2003) and Ballantine
(2005).

4.2 Data collection


The research population is all the customers, in Aligarh City, India, who acquire services
or goods from the online retailers. There are no databases for online shoppers in Aligarh
244 F. Almugari et al.

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.

5.1 Reliability and validity


The CFA was utilised to examine the validity and reliability of suggested model (Fornell
and Lacker, 1981). We tested the reliability using the composite reliability (CR) (Gerbing
and Anderson, 1988). In addition, Bagozzi and Yi (1988) determined the 0.6 level as the
minimum value for the CR coefficients.
Furthermore, we tested the constructed validity (discriminant validity and convergent
validity). Convergent validity is tested utilising the average variance extract (AVE)
(Fornell and Lacker, 1981). Hair et al. (2010) mentioned that AVE values of 0.5 or higher
indicate a satisfied convergent validity. In addition, we tested the discriminate validity by
comparing the maximum share variance (MSV) with AVE (Lucas et al., 1996). If MSV is
less than AVE, the discriminant validity is confirmed (Lucas et al., 1996).
The model is reliable, where the CR coefficients (Table 1) are higher than the
recommended value suggested by Bagozzi and Yi (1988). In addition, the convergent
validity is satisfied, where the AVE values are higher than 0.5 (Hair et al., 2010).
Furthermore, the discriminant validity is satisfactory, where the MSV values are less than
AVE values (see Table 1) and the squared correlation of dimensions are less than the
AVE values (see Table 2) (Hair et al., 2010).
Factors influencing consumer satisfaction toward online shopping 245

Table 1 Reliability and convergent validity

CR AVE MSV MaxR (H)


Perceived usefulness 0.786 0.552 0.508 0.791
Satisfaction 0.829 0.548 0.463 0.831
Product information 0.811 0.519 0.542 0.814
Website design 0.753 0.535 0.463 0.764
Security and privacy 0.755 0.540 0.450 0.776
Perceived interactivity 0.748 0.580 0.402 0.653

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

6 Study results and discussion

6.1 Demographic profile of respondents


The results of demographic variables show that, out of 497 respondents, 80.5% were
males and 19.5% were of females. Among the respondents, 51.9% were between 25 and
29 years of age followed by 18.2% were between of 20–24 years, and 17.2% were
between 30–34 years of age. The majority of respondents were well educated, i.e.,
graduates and postgraduates, young age and having average income.

6.2 Structural model and hypotheses testing


The hypothesised model of the study was evaluated applying AMOS 20.0. The outputs
indicated accepted and good model fit with the data. The output of RMSEA = 0.06,
TLI = 0.93, CFI = 0.942, and CMIN/df = 2.81, GFI = 0.91 (Appendix B). Therefore, the
study model is reasonably present the factors underling the collected data. The structural
model is presented in Figure 2.
246 F. Almugari et al.

Figure 2 SEM model (see online version for colours)

Table 3 Hypothesis testing results

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

variation in online shopping satisfaction was caused by website design, product


information, security and privacy, perceived usefulness, and perceived interactivity.

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.

affect the customer satisfaction positively and significantly. Vinayagamoorthy and


Sankar (2012) considered security and privacy as the most significant elements among
Indian customers in the online environment. In the same quest, Amin (2009) found that
the positive and significant relationship between security and privacy and Malaysian
consumers in the online environment. Also, Sun et al. (2013) confirmed the same results
and considered the security and privacy as the most vital factors influencing the customer
satisfaction.
Moreover, there is a significant link between customer satisfaction and perceived
usefulness (improving the task productivity, improving website performance, easy
browsing). This is in line with Tandon et al. (2017) who confirmed the significant link
between perceived usefulness and Indian customer satisfaction toward the online
shopping. Furthermore, the findings are in agreement with other research findings
conducted in USA and Europe (Rose et al., 2012; Lee and Kozer, 2012; Ha and Stoel,
2009), China (Liao and Shi, 2009; Wu, 2013; Lin and Sun, 2009; Chen et al., 2010),
Spain (Hernandez et al., 2009), and Greece (Maditinos and Theodoridis, 2010). In the
same quest, our results supported the previous findings from the Indian scenario
perspective.
One attractive finding of this study a positive but insignificant link between perceived
interactivity and customer satisfaction. This is in contrast with earlier studies (Ballantine,
2005; Merrilees and Fry, 2003, McMillan and Hwang, 2002; Liu and Shrum, 2002)
which found positive link between perceived interactivity and customer satisfaction
toward the online shopping. This finding had added practical implications for Indian
online merchants to focus on enhancing perceived interactivity to enhance customer
satisfaction toward online shopping.

7 Implications and conclusions

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.

8 Limitations and future research

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 A (see online version for colours)

Appendix B

The SEM model fit


Fit index Output values Observed value Remark References
CMIN/DF 2.81 2.81 Satisfactory Marsh and Hocevar (1985)
GFI 0.911 0.911 Satisfactory Jöreskog and Sörbom (1984)
AGFI 0.881 0.881 Satisfactory
CFI 0.942 0.942 Satisfactory Bentler (1990)
RMSEA 0.052 0.052 Satisfactory Steiger (1980)
TLI 0.93 0.93 Satisfactory Bentler and Bonett (1980)
IFI 0.943 0.943 Satisfactory Bollen (1989)

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