A STUDY ON LEVEL OF
CUSTOMER SATISFACTION TOWARDS ONLINE SHOPPING
Abstract
Online shopping is a form of electronic commerce which allows consumer
to buy any types of goods or services by a seller over the internet. It is
quick, easy and fastest growing segment of Indian economy. Buyers, today, have
got more options to shop things hassle-free in the era of booming online
shopping. Few years back internet shopping was not popular in India. But, today
the scenario has changed and this kind of shopping has started registering its
presence in the market. This study is
taking place to identify the factors that may influence customer’s online
shopping satisfaction. Generally, the success of online shopping essentially
depends on the customer satisfaction during their purchase.
Keywords: Customer Satisfaction, Online Shopping,
influencing factors.
Introduction
The growth of
internet has created the potential vision of E-Commerce. There is nothing new
in this term only a new medium and dimension, a sub set of E- Business. It is
only a form of traditional business using electronic means. Recently there has
been a substantial type created with the emergence of E-Commerce, the cutting
edge of business, a new paradigm, a buzzword in business communication.
The
advancement of technology has given an individual freedom to go to buy his
rationality or by his emotion when it comes to shopping online a single click
will make him able to access global brand and another will let him compare the
price, may be a third will buy him that product so much easy and speed along
with convenience and the comfort of his home, office or bench in the park is
with the individual. So it is up to the seller to decide whether to catch him
will all those buying intension of let him choose them a sound seller will go
for the first option catch the customer before he slips. The stage is all set
for the seller’s it is going to be a great year for online retailers.
E-commerce is a
potential ocean enabling firms and individuals to ride on the waves of profit
and global presence. Big Indian concerns and many small and big concerns
outside India planned to foray into E-commerce and other web based application,
diversification into E-commerce will enable to provide a great range of
solution to its customer and partners. It is one such concept that is used to
apply business logic and to capitalize the potential global market through
internet. This in turn has made every small scale industry to work and
strategies of generating business through the net and this having a global
presence.
E-commerce is a
revolutionary form of industry that enables organization to interact electronically
with their customer. It allows companies to be more flexible and efficient in
their operations and also leads to enhancing closer relationships with both the
customer and suppliers. E-commerce is all about cycle time speed,
globalization, enhanced productivity, reaching new customers and sharing
knowledge across institution for competitive advantage in business.
1.2.
Statement
of the Problem
Online marketing has gained a lot of importance in present marketing
conditions. But along with its vital growth the number of scamps, fraudulent
practices and cheating also increased. Such cheating activities had created
fear in the minds of customers and also an adverse impact in the attitude of
consumers towards online purchase. In the modern era every one need the change
and lead the change so e-wallets and online payments are one of the major
trends in online trading. On the above presented issues, our study is based on knowing
the problem faced by the e-customer and their satisfaction
and attitudes towards online shopping will determine the factors that influence
customers to shop online and those factors will help the marketers to formulate
their strategies towards online marketing.
1.3.
Objectives
of the Study
· To analyze the factors those affects and motivates customer’s
attitude towards online shopping.
· To examine the level of consumer satisfaction on online buying.
·
To study the problems faced by
the customers towards online shopping.
1.4.
Methodology
The study is based on
empirical data collection from primary and secondary sources.
1.4.1
Scope for study
The
scope of the study is limited to Thiruvananthapuram. The various persons
engaged in online buying and level of their satisfaction will be covered
through the study. The same is analyzed with the help of literature and opinion
of the online consumers.
1.4.2 Nature
of Study
The
nature of study is descriptive. It describes the efforts of various online
consumers and satisfaction level of online consumers towards the online buying.
It will be an empirical study based on survey method Hence data should be
collected from both primary and secondary sources.
1.4.3 Nature
of data
The nature of data includes both quantitative
and qualitative.
1.4.4 Source
of data
The
source of data includes both primary sources and secondary sources.
v Primary
data
The study is based on
primary and secondary data. For the purpose of collecting primary data a
detailed questionnaire was prepared. The medium used in the study was face to
face interview with respondents. Accordingly, the researcher had collected data
from 100 respondents in Thiruvananthapuram district.
v Secondary
data
Secondary
data were collected from the reports of business journals, periodicals, and
books connected with the subject. Various related sites were also surfed for
secondary data collection.
1.4.5 Sample
design
The study was
conducted in Thiruvananthapuram district using two set of pre-tested
questionnaire. The sample size of study was limited to 100 respondents by applying convenient sampling
technique.
1.4.6. Tools
for analysis
For analyzing and
interpreting the primary data, by the way of appropriate descriptive statistics
methods and inferential statistics methods.
1.4.7. Data
collection period
Data for this study have been collected
during one month ending June 2018.
ANALYSIS AND INTERPRETATIONS
These tables used for a cross comparison
between dependent and independent variables. Example: - compare customer’s
satisfactions levels with gender wise, occupation wise etc. following
criteria’s cross compared with gender and occupation of respondents.
2.1 How often respondents buy online
The below tables
shows how often respondents buy online compare with gender, occupation etc.
Gender wise classification
Table
2.1.A
Gender wise classification
|
|
Gender |
Total |
||||
|
Male |
Female |
|||||
|
Value |
% |
Value |
% |
Value |
% |
|
|
Often |
36 |
60 |
24 |
40 |
60(100) |
|
|
Sometimes |
19 |
59.4 |
13 |
40.6 |
32(100) |
|
|
Rarely |
2 |
25 |
6 |
75 |
8(100) |
|
|
Total |
57(57) |
43(43) |
100(100) |
|||
Source: primary data
As per table 2.1.A, 60 per cent of the male
40 percent of female respondent respondents make online shopping often, only 8
per cent make online shopping rarely. As per the 57 male respondents 36 are
deeply connects with online shopping and in case of female respondents 24 out
of 43. So majority users are males. Comparatively most of the male respondents
are often online purchase and least of them rarely use it.
Occupation wise
classification
Table
2.1.B
Occupation
wise
|
|
Occupation |
Total |
||||||||
|
Government Employee |
Private Employee |
Student |
Others |
|||||||
|
Value |
% |
Value |
% |
Value |
% |
Value |
% |
Value |
% |
|
|
Often |
16 |
26.7 |
20 |
33.3 |
17 |
28.3 |
7 |
11.7 |
60(100) |
|
|
Sometimes |
4 |
12.6 |
9 |
28.1 |
17 |
53.1 |
2 |
6.2 |
32(100) |
|
|
Rarely |
0 |
0 |
1 |
12.5 |
7 |
87.5 |
0 |
0 |
8(100) |
|
|
Total |
20(20) |
30(30) |
41(41) |
9(9) |
100(100) |
|||||
Source: primary data
As per table 4.39 Majority employees and
students are familiar with online purchase because overall 60 percent purchase
through online very often. As per the individual status private employees (20
out of 30) are continuously deal with online shopping and the overall status
shows students are the major participants then we conclude they are lies
between the age group of 18 to 24 and majority employees are categorized under
the age group of above 25. So it’s clearly shows the involvement of youngers
for online purchase.
2.2 Satisfaction
level on online buying
Here the satisfaction level of customers based
on gender classified into two parts according their activity.
2.2.1.A Satisfaction level on online
buying – Gender wise classification (Pre purchase consideration)
2.2.1.B Satisfaction level on online
buying – Gender wise classification (Post purchase consideration)
2.2.1.A
Satisfaction level on online buying – Gender wise classification (Pre purchase
consideration)
Table:
2.2.1.A
Gender wise (Pre
purchase)
|
Aspects |
Gender |
Satisfied |
Neutral |
Dissatisfied |
Total |
||||
|
Value |
% |
Value |
% |
Value |
% |
Value |
% |
||
|
Price |
Male |
32 |
50 |
17 |
80.9 |
8 |
53.3 |
57(57) |
|
|
Female |
32 |
50 |
4 |
19.1 |
7 |
46.7 |
43(43) |
||
|
Total |
64(100) |
21(100) |
15(100) |
100(100) |
|||||
|
Quality |
Male |
38 |
60.3 |
6 |
37.5 |
13 |
61.9 |
57(57) |
|
|
Female |
25 |
39.7 |
10 |
62.5 |
8 |
38.1 |
43(43) |
||
|
Total |
63(100) |
16(100) |
21(100) |
100(100) |
|||||
|
Payment security |
Male |
42 |
57.5 |
6 |
50 |
9 |
60 |
57(57) |
|
|
Female |
31 |
42.5 |
6 |
50 |
6 |
40 |
43(43) |
||
|
Total |
73(100) |
12(100) |
15(100) |
100(100) |
|||||
Source: primary data
The two tables 2.2.1.A and 2.2.1.B. about
post purchase and after purchase level of satisfaction unfolds that from the
sample collected, 43% are females and remaining 57% are males. here 64% of
peoples satisfied and 21 more shows the neutral opinion Out of 64 satisfied
respondents. with the aspect of price both male’s females are equally divided
and reporting their opinions 50% each. Overall analysis male customers are most
highly satisfied (57 – 60%) with quality. As per the pre purchase male
customers are (42 out of 57) satisfied with payment security other than price
and quality and in case of female customers they choose price and payment
securities are the satisfied factors. Online portals give more security
features for payments.
2.2.1.B
Satisfaction level on online buying – Gender wise classification (Post purchase
consideration)
Table:
2.2.1.B
Gender wise (Post purchase)
|
Aspects |
Gender |
Satisfied |
Neutral |
Dissatisfied |
Total |
||||
|
Value |
% |
Value |
% |
Value |
% |
Value |
% |
||
|
Purchase experience |
Male |
45 |
60 |
6 |
50 |
6 |
46.1 |
57(57) |
|
|
Female |
30 |
40 |
6 |
50 |
7 |
53.9 |
43(43) |
||
|
Total |
75(100) |
12(100) |
13(100) |
100(100) |
|||||
|
Personal information privacy |
Male |
30 |
49.1 |
18 |
75 |
9 |
60 |
57(57) |
|
|
Female |
31 |
50.9 |
6 |
25 |
6 |
40 |
43(43) |
||
|
Total |
61(100) |
2(100) |
15(100) |
100(100) |
|||||
|
Warranties and return policies |
Male |
31 |
57.4 |
15 |
55.6 |
11 |
57.9 |
57(57) |
|
|
Female |
23 |
42.6 |
12 |
44.4 |
8 |
42.1 |
43(43) |
||
|
Total |
54(100) |
27(100) |
19(100) |
100(100) |
|||||
Source: primary data
As per able 2.2.1.B, out of 75 satisfied
respondents about purchase experience include 45 are males and 30 females so
majority peoples satisfied with purchase experience. The same wave length
replicated in dissatisfaction level most male and female Customers are
dissatisfied with warranties and return policies. It may conclude that online
web portals improve return policies and warranties. It may conclude that online
web portals keeps the personal details of customers with high security.
2.2.2.A
Satisfaction level on online buying – Occupation wise classification (Pre
purchase consideration)
Table: 2.2.2.A
Occupation wise classification
|
Aspects |
Occupation |
Satisfied |
Neutral |
Dissatisfied |
Total |
||||
|
Value |
% |
Value |
% |
Value |
% |
Value |
% |
||
|
Price |
Gov employee |
10 |
15.7 |
9 |
42.9 |
1 |
6.7 |
20
(20) |
|
|
Pvt employee |
19 |
29.7 |
5 |
23.8 |
6 |
40 |
30
(30) |
||
|
Students |
29 |
45.3 |
5 |
23.8 |
7 |
46.7 |
41
(41) |
||
|
Others |
6 |
9.3 |
2 |
9.5 |
1 |
6.6 |
9
(9) |
||
|
Total |
64 (100) |
21
(100) |
15
(100) |
100
(100) |
|||||
|
Quality |
Gov employee |
14 |
22.3 |
3 |
18.7 |
3 |
14.2 |
20
(20) |
|
|
Pvt-employee |
18 |
28.5 |
8 |
50 |
4 |
19.1 |
30
(30) |
||
|
Students |
25 |
39.6 |
4 |
25 |
12 |
57.1 |
41
(41) |
||
|
Others |
6 |
9.6 |
1 |
6.3 |
2 |
9.6 |
9
(9) |
||
|
Total |
63 (100) |
16 (100) |
21
(100) |
100
(100) |
|||||
|
Payment security |
Gov-employee |
18 |
24.6 |
1 |
8.3 |
1 |
6.7 |
20
(20) |
|
|
Pvt-employee |
20 |
27.4 |
5 |
41.7 |
5 |
33.3 |
30
(30) |
||
|
Students |
28 |
38.4 |
6 |
50 |
7 |
46.6 |
41
(41) |
||
|
Others |
7 |
9.6 |
0 |
0.0 |
2 |
13.4 |
9 (9) |
||
|
Total |
73 (100) |
12
(100) |
15
(100) |
100
(100) |
|||||
Source: primary data
As per table 2.2.2.A, price and payment
securities are the leading satisfied factors. Out of 64 satisfied respondents
majority portion (29 out of 64) lead by the students, so is clearly shows that
respondents are youths. Same level of satisfaction shown in the case of quality
and payment security. After the student’s in the case of payment security govt
employees and pvt employees are shows (18 – 20 out of 73) the same level of
satisfaction. At the same time the most of the (21 percent) dissatisfaction
level shown in the case of quality. They are students (12 out of 21).
2.2.2.B
Satisfaction level on online buying – Occupation wise classification (Post
purchase consideration)
Table:
2.2.2.B
Occupation wise classification
|
Aspects |
Occupation |
Satisfied |
Neutral |
Dissatisfied |
Total |
||||
|
Value |
% |
Value |
% |
Value |
% |
Value |
% |
||
|
Purchase experience |
Gov-employee |
19 |
25.3 |
0 |
0 |
1 |
7.7 |
20
(20) |
|
|
Pvt-employee |
18 |
24 |
7 |
58.3 |
5 |
38.5 |
30
(30) |
||
|
Students |
30 |
40 |
5 |
41.7 |
6 |
46.2 |
41
(41) |
||
|
Others |
8 |
10.7 |
0 |
0 |
1 |
7.6 |
9
(9) |
||
|
Total |
75 (100) |
12
(100) |
13
(100) |
100
(100) |
|||||
|
Personal information privacy |
Gov-employee |
12 |
19.7 |
7 |
29.2 |
1 |
6.7 |
20
(20) |
|
|
Pvt-employee |
14 |
22.9 |
10 |
41.7 |
6 |
40 |
30
(30) |
||
|
Students |
28 |
45.9 |
6 |
25 |
7 |
46.6 |
41
(41) |
||
|
Others |
7 |
11.5 |
1 |
4.1 |
1 |
6.7 |
9
(9) |
||
|
Total |
61 (100) |
24
(100) |
15
(100) |
100
(100 |
|||||
|
Warranties and return policies |
Gov-employee |
13 |
24.1 |
6 |
22.2 |
1 |
5.3 |
20
(20) |
|
|
Pvt-employee |
18 |
33.3 |
8 |
29.6 |
4 |
21.1 |
30
(30) |
||
|
Students |
17 |
31.4 |
12 |
44.4 |
12 |
63.2 |
41
(41) |
||
|
Others |
6 |
11.2 |
1 |
3.8 |
2 |
10.4 |
9
(9) |
||
|
Total |
54 ( 100) |
27
(100) |
19
(100) |
100
(100) |
|||||
Source: primary data
As per tale 2.2.2.B,
in the case of post purchasing satisfying criteria, 75 percent peoples
satisfied with their purchase experience. Out of 41 students 30 are satisfied
with-it at the same time full of government employees 19 out of 20 satisfied
with purchase experience. Its clear large respondents in the group of students
but the govt employees are the highest satisfied groups. At the same time all
of them worried about warranties and return policies because only 50 percent
respondents are satisfied with it so we can conclude there is certain problem
in the case of warranties and return policies provided by the e-retailers.
2.3 Mode of payment
2.3.1 Gender wise
classification
Table
2.3.1
Gender wise classification
|
Mode |
Gender |
Total |
||||
|
Male |
Female |
|||||
|
Value |
% |
Value |
% |
Value |
% |
|
|
Online payment |
33 |
64.7 |
18 |
35.3 |
51 (100) |
|
|
Cash on delivery |
24 |
48.9 |
25 |
51.1 |
49 (100) |
|
|
Total |
57
(57) |
43
(43) |
100
(100) |
|||
Source: primary data
The table
describe out of the 57 male respondents 65 percent choose the mode of online payment
at the time of purchase.at the same time out of the 43 females respondents 25 choose
cash on delivery for purchase product. It reveals the females’ fear about the
online payments. They prefer safety and security first and this table also
describe the growth of online payments because the previous studies describe
most of them choose cash on delivery for payments.
2.3.2 Occupation wise
classification
Table 2.3.2
Occupation wise classification
|
Occupation |
Mode of payment |
Total |
||||
|
Online Payment |
Cash on delivery |
|||||
|
Value |
% |
Value |
% |
Value |
% |
|
|
Government Employees |
10 |
19 |
5 |
11.5 |
15
(100) |
|
|
Private employees |
20 |
39 |
10 |
21.2 |
30
(100) |
|
|
professional employees |
3 |
2 |
6 |
13.8 |
9
(100) |
|
|
Students |
21 |
40 |
20 |
42 |
41
(100) |
|
|
Others |
0 |
0 |
5 |
11.5 |
5
(100) |
|
|
Total |
51
(100) |
49
(100) |
100
(100) |
|||
Source: primary data
As per tale 2.3.2, mode of payment as per
the occupation wise classification, majority participants are students out 41
students 21 are use online payment method for purchase and the majority users
of online payments are private employees (20 out of 30) and government
employees (10 out of 15) and least of the government employees opt to choose
the COD for payment so its clear about the digitalization of employment
sectors.
2.4 Most important Factor
influencing online purchase
Every customer deal with online buying as
per certain influencing factors. The study finds out which is the most
important factor for influenced to a customer while online buying.
Table 2.4
Most important Factor
influencing online purchase
|
Factors |
Mean Rank |
Rank |
||
|
Reasonable
price |
7.26 |
1 |
||
|
Choice of
products |
6.19 |
2 |
||
|
Quality
products and information’s |
5.95 |
3 |
||
|
Customer care
and services |
3.98 |
5 |
||
|
Faster
Delivery |
3.82 |
6 |
||
|
Safety |
4.15 |
4 |
||
|
Easy
comparison with other products |
3.13 |
7 |
||
|
Interest nil
EMI and exchange offers |
1.52 |
8 |
||
|
Test
Statistics |
N-100, Df – 7, chi-square
403.147
|
Asymp.sig-.000 |
||
Source: primary data
As per the table 4.53 shows the result of find out the important factor
for influencing online buying. The computation is done with “Friedman test”.
Test result is the table value is less than significant level of 0.05% so it
can conclude there is significant difference between the ranks. The most
important factor is ranked at number one that is reasonable price and second
rank is given to choice of products so the actual ranks are correctly given to
the actual factors. Other factors ranked with least preference such as interest
nil EMI and facility of comparison of products with others etc.
Conclusion: - Most of them accept
the most influencing factors is reasonable price, choices, quality etc. That
will force to them for purchase through online.
CONCLUSION
The
study on level of customer satisfaction towards online buying can identifying
Online shopping’s becoming more popular day by day with
the increase in the usage of electronics and communication technology (ECT).
The study was accomplished to explore consumer awareness and perceptions
about online shopping. Customers are the kings of modern market so the success
of online shopping is based on the level of satisfaction of customers. Making
purchase through online can be a great benefit to the users in terms of
convenience, saving time and money. Huge number of previous reports shows
privacy, safety and security are the most significant problem but this study
can identify now the online retailers provide high safety and security. The
seller’s must can find out the most wanted need of all customers. if the
sellers can be understanding customer’s need for online selling has become
challenge for physical marketers. When a user is making purchase and payment
via online, the respondents are affected by various assorted factors. The main
influencing factors has been identified as reasonable price, purchase
experience, time, convenience, security, loyalty/reward points and discount
deals etc. As per the findings of the study, shopping’s getting popularity
among the young lots such as students and employees. Every online retailer is
not well in the case of warranties and return policies. The study can find out
the online shopping sectors has a bright future in India. One of the insight
objective of this study is the recent phenomena demonetization is boon for
growth of online transactions and how they agreed with that. Finally, it concluded with a small
suggestion, majority peoples are now familiar with online transactions so the
dealer can abolish the recent issues related to online shopping’s.
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