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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 1496
JANUARY 2012
VOL 3, NO 9
Factors Influencing on Customers’ E-Satisfaction: A case Study from Iran
Bahram Ranjbarian
Professor of Marketing, University of Isfahan
Saeed Fathi
Assistant Professor of Management Department, University of Isfahan
Zeynab Rezaei
MBA Candidate, University of Isfahan
Abstract:
Understanding of what creates a satisfying customer experience becomes crucial for
online-stores success in attracting more customers to purchase through on line. This
study is an empirical investigation which proposes and tests an "e-satisfaction" model.
The adopted model, identifies five dimensions representing satisfaction with internet
purchase experience and analyzes online-customers’ attitudes toward internet
shopping based on their perception about the rule of convenience, the kind of
merchandising, website design, security of transaction, serviceability in e-satisfaction.
The statistical population of this research study was internet users and consumers of
some Iranian internet shopping centers. The data was obtained through a field survey.
The results revealed that four factors of convenience, merchandising, security and
serviceability have influence on customer e-satisfaction but the influence of website
design on e-satisfaction was not supported despite its indirect effect on security and
serviceability. Finally, some strategic recommendations are proposed for customers’ e-
satisfaction enhancement and also for further investigation.
Key words: E-satisfaction, Internet shopping, Electronic commerce, Merchandising, Iran
1- Introduction:
The collapse of large numbers of dot-com companies has required managers, who
felt that the Internet had changed everything, to relearn that profits indeed do matter
(Rosenbloom, 2002) and that the traditional laws of marketing were not rescinded with
the arrival of the e-commerce era. Additionally, it has been reinforced that organizations
not only need to attract new customers, but also must retain them to ensure profitable
repeat business. [Anderson, 2003].
An increasing number and variety of firms and organizations are exploiting and
creating business opportunities on the internet. Companies spend a lot of money on
their websites to provide their customers with traditional functionality and a more
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integrated marketing stream with the hopes of entering customers to purchase goods on
line. The key determinants of success or failure for e-commerce companies are not
merely web presence or low price but delivering right quality of e-service that causes
sophisticated online customers pay a higher price. The service quality has a significant
impact on customer satisfaction. Based upon the problematic and investigation
relevance of internet shopping , the propose of this research study is developed and test
a model of better understanding the factors that are most important in predicting
consumers' behavioral intention to purchase over the internet. Although research on
cognitive computing for insights into making the websites of internet shops more
competitive is very important and highly needed, the field is in its infancy and many
important research topics like e-satisfaction have not yet been studied conceptually and
empirically enough well.
Shoppers are very often of the "touch – and – feel" type, who prefer to handle and
compare goods before deciding to buy. Under these circumstances, it was important to
discover whether consumers perceived at the outset that virtual shopping over the
internet would engender a comparable experience, and how significantly life content
considerations tended to affect decisions to shop in this way. [Liao & Cheung, 2001]
Our objective is to provide the initial evidence for the determinants of e-satisfaction.
We examine and document the role of convenience, merchandising, site design,
security, serviceability in customer e-satisfaction assessments by rely on qualitative
evidence gathered through focus group tested to develop the conceptual model for the
investigation and then tested the model across a broader groups of online shoppers. We
close the study by discussing implications of the findings and directions for future
research.
2- Literature Review
While considerable research has investigated the drivers of service quality
and satisfaction in the offline environment (Zeithaml,2000), a small, but growing body
of research has examined the drivers in the environment in the online environment
(Francis ,2002 ; Donthu ,2001; Loiacono & et al ,2002 ; Srinivasan & Ponnavolu
,2002 ; Zeithaml & et al ,2000). Research on the basic questions - what drives
online satisfaction and retention - is still in the exploratory stage as both theory and
empirical investigations are emerging. From a broad perspective, the Internet is
a new technology and Web site satisfaction will be driven by ease of use
and usefulness (Davis, 1989). Davis argued that these two concepts are predominant
in predicting how much consumers will be using computer technologies.
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The ability to easily navigate a Web site and its perceived value (e.g. entertainment,
convenience, community) will influence both usage level and satisfaction. By
extension, satisfaction in the online environment may also be driven by
consumer benefits in using self-service technologies. As noted by Van Riel (Van
Riel, and et al, 2001) these benefits include convenience], saving time and money,
avoiding interpersonal interaction and being in control. This implies that the drivers
of Web satisfaction may include Web site characteristics (e.g. ease of use), the specific
Web site's value (e.g. useful information) and its relative value (e.g. more convenient
than offline shopping). A variety of independent and dependent constructs and
measures have been employed to identify the drivers of e-satisfaction. In short,
there is no consensus on what drives online service quality and e-satisfaction
(Zeithaml & et al, 2002).
While ease of use has various labels (e.g. site design, Web store functionality, ease
of understanding, ease of navigation) and different measures (e.g. easy to use,
easy to locate information, user friendly site) the underlying construct reflects the ease
with which an individual can navigate the Web site. Similarly, Website content has
various labels (e.g. product information, product attribute description, product
selection, product uniqueness, informational fit-to- task) and different measures
(e.g. product information meets my needs, extensive product selection, clearly
describes products), and the underlying construct reflects the depth of and information
on the products offered. A majority of the studies suggest a third driver, customer
security (e.g. financial security, security/privacy) which reflects the Web site's
information regarding its security policies. Beyond these three, there were
fewer consensuses on the remaining drivers either discussed or tested. These included
customer service, convenience, ease of ordering, and efficiency. Of interest to this study
was the role of customer service (e.g.care, responsiveness) which reflects the ability to
respond to questions, problems and after sale service. [Anand, 2007]
The Internet literature review (i.e. consumers’ reactions to Internet use about
information search and purchase experience) permits to identify and analyze the
relevant elements of e- satisfaction structure, needed to include as explanatory variables
in regression models developed in this study.
“Convenience” is the most important factor of consumers’ satisfaction with Internet
using and is related to speed, easy access to information at low cost (i.e. time, effort and
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displacement) where everything can be found in a minute without time or geographical
restraints. In the consumers’ perception, Internet shopping convenience is related to an
easy way of shopping and reducing total time spent on purchase (Szymanski & Hise;
2000; Kim & Lim, 2001), a pleasant way of shopping and delivery time (Jarvenpaa &
Todd, 1997; Alba et al, 1997) and the perceived relation - cost / delivery time (Shim et al,
2001). Additionally, the human interaction loss in electronics services and retail has
different effects on consumers’ satisfaction (Meuter et al, 2000; Forman & Sriram, 1991).
“Site design” quality depends on functional and attractive elements as: ease of
browsing, a standard language use, interface design, information search engine in
virtual stores, pages actualization, clear information contents, the largest number of
“clickable” items (Jarvenpaa & Todd, 1997), an organized presentation (Szymanski &
Hise, 2000), interactivity tools available, a good reality simulation and product’s virtual
experimentation possibility (Shim et al, 2001; Alba et al, 1997). Attractive web pages
presentation should contain animated gifts, sound, video and entertainment contents like
advertisement (Kim & Lim, 2001). However, some consumers react negatively to web
banners, because they interrupt and slow down a web page (Szymanski & Hise; 2000).
“Reliability” on Internet information search elements reveals a perceptual dichotomy
between consumer’s “reliability of the information content” and “reliability in control and
use of technology”. Information reliability is related with diversity, depth and actuality of
information contents (Szymanski & Hise, 2000; Kim & Lim, 2001). The capacity to
compare product’s information and the information search result depends on individual
capacity of Internet use and affects consumer’s satisfaction (Alba et al, 1997).
“Entertainment” is basically related to amusement and pleasure contents in Internet.
Kim & Lim (2001) concludes that entertainment is an important factor of consumers’
satisfaction with Internet shopping, and is associated to pleasure of browsing,
advertising and bonus offer in web sites. Entertainment is also associated to interesting
places to visit and shopping (Shim et al, 2001), and the possibility of animation through
virtual environments, minimizing the absence of human contact and amusement
associated to shopping (Jarvenpaa & Todd, 1997).
“Security” perception and privacy “assurance” with Internet shopping demonstrates to
have the biggest impact on e-satisfaction (Szymanski & Hise, 2000). Most researchers
also agree that the security problems (i.e. personal data transmission and payments with
credit cards) are the major risks affecting online transactions, acting as the principal
barriers to electronic commerce.
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Internet “product offer” is generally satisfactory for consumers, concerning product
diversity and available brands (Jarvenpaa & Todd, 1997) but doesn’t demonstrate a
significant impact on e-satisfaction (Szymanski & Hise, 2000). Other major critical
elements are related to risks inherent to catalog purchase: product performance (i.e.
guaranty, possibility of sensorial experimentation or product return) and supplier
confidence (i.e. unknown supplier with no physical address, non-fulfillment of delivery
promises) (Shim et al., 2001; Jarvenpaa & Todd, 1997). Other consumer’s expectations,
concern lower price products or a perceptual price/convenience relation (Jarvenpaa &
Todd, 1997; Bakos, 1997), transaction costs reduction and a higher delivery speed
(Shim et al, 2001; Alba et al, 1997). [Torres & Martins, 2004]
Analyzing consumers’ level of satisfaction has been of special interest to many
business people and academics, especially in the marketing field. Traditionally, the level
of consumer satisfaction is determined by the quality of services, the price level, and the
purchasing process. Consequently, the level of e-satisfaction is also determined by the
quality of e-services, the price level and the purchase process. Wang and Huarng
(2002) identified nine service quality factors that affect e-satisfaction through content
analysis of online customer comments in their research.
1. General feedback on the web site design,
2. Competitive price of the product
3. Merchandise availability
4. Merchandise condition
5. On-time delivery
6. Merchandise return policy
7. Customer support
8. E-mail confirmation on customer order
9. Promotion activities [Wang, 2002]
3- Conceptual Model:
A qualitative phase of research was initiated to identify possible antecedents to e-
satisfaction. Qualitative research for model formulation is advocated for areas such as e-
satisfaction that are ill-defined, under-researched, or relatively new (Miles and Huber-
man, 1994). The conceptual model of the study which presented in Figure 1 is one
outcome of this qualitative phase of research.
E-satisfaction is depicted in Figure 1 as the outcome of consumer perceptions of online
convenience, merchandising, site design, and security. Focus group members were later
contacted and asked to review the model. All agreed that the model adequately
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captured their sentiments regarding e-satisfaction. Interestingly, the elements captured
in the model also tend to be the ones discussed in the academic literature as
representing advantages or disadvantages of e-retailing (e.g., Alba et al., 1997; Ernst
and Young, 1999; Balasubramanian, 1997).
Table 1.Conceptual Model
Convenience
Shopping time
Convenience
Ease of browsing
Site design
Navigation structure
Web Design and interface
Fast Presentation
Customized content
Updated information
E-Satisfaction
Merchandising
Number of offering
Variety of offering
Quality of info
Quantity of info
Less searching cost
Security
Privacy
Financial security
Serviceability
Complaints Redressed
Customer support
Packing
Timeless of Delivery
Post Service
Competitive Price
Return Policy
Confirmation Email
Purchase Process
Feed back to site design
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Convenience
E-retailing is promoted widely as a convenient avenue for shopping. Shopping online
can economize on time and effort by making it easy to locate merchants, find items, and
procure offerings (Balasubramanian, 1997). Consumers do not have to leave their home
nor travel to find and obtain merchandise online. They can also browse for items by
category or online store. These time and browsing benefits of online shopping are likely
to be manifested in more positive perceptions of convenience and e-satisfaction.
H1: Shopping Convenience has influence on e-satisfaction of Internet shops customers
Merchandising
Positive perceptions of online merchandising represent another set of elements that
could positively impact e-satisfaction levels. Merchandising is defined here as factors
associated with selling offerings online separate from site design and shopping
convenience. This includes the product offerings and product information available
online.
It seems reasonable to expect that e-satisfaction would be more positive when
consumers perceive online stores to offer superior product assortments. For one,
superior assortments can increase the probability that consumer needs will be met and
satisfied. This is especially likely when consumers desire items not widely distributed
(e.g., specialty goods), produced in limited quantities, or unavailable at brick-and-mortar
stores because shelf space is limited. For example, a traditional book superstore may
carry 150,000 titles (Bianco, 1997), but an Amazon.com carries millions of titles. The
probability of locating any one title, therefore, would be higher at the online store. The
probability of consumers satisfying needs online would also be higher.
Second, the wider assortment of products can include items of better quality that may
be attractive to consumers. The lower search costs traditionally associated with online
shopping are thought to result in consumers buying better quality items (Bakos, 1997).
Buying better quality items, in turn, can improve satisfaction by delimiting the costs of
failed products. These costs include the costs of returning merchandise, losing face
when items fail, failure in one item causing failure in a related item (e.g., failed tires and
accidents), or failure creating an impediment to task completion (e.g., malfunctioning
computer and uncompleted tasks).
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Finally, we expect richer information (more extensive and higher quality) available online
to lead to better buying decisions and higher levels of e-satisfaction (Peterson,
Balasubramanian, and Bronnenberg, 1997).
H2: Merchandising has influence on e-satisfaction of Internet shops customers
Site Design
In addition to possible convenience and merchandising effects, the ambience associated
with the site itself and how it functions could play a role in whether consumers are
satisfied or dissatisfied with their online shopping experiences. Manes (1997), for
example, reports that good Web-site design is about good organization and easy
search. This includes offering consumers uncluttered screens, simple search paths, and
fast presentations. Moreover, each of these elements of site design could impact e-
satisfaction levels in the genre of a more pleasurable shopping experience being a more
satisfying one.
Shopping is thought to be pleasurable and satisfying to consumers when the retailing
sites are fast, uncluttered, and easy-to-navigate (Pastrick 1997). Fast, uncluttered, and
easy-to-navigate sites economize on shopping time. Uncluttered and easy-to-navigate
sites also economize on the cognitive effort consumers expend figuring out how to shop
effectively online
H3: Site Design has influence on e-satisfaction of Internet shops customers
Security
The security of online transactions continues to dominate discussions on Internet
commerce and perhaps with good reason. Bruskin/Goldberg Research, for example,
reports that 75% of Internet shoppers emphasize credit-card security as a major
consideration when deciding whether or not to buy items online. [Szymanski & Hise,
2000]
George (2002) examined whether privacy and internet trustworthiness helped deter-
mine attitudes towards the Internet. He hypothesized that the more experienced an
individual is with the internet, the more positive the individual’s beliefs about inter-net
trustworthiness. George also hypothesized that the more positive an individual’s
attitudes toward internet purchasing, the stronger the individual’s intent to make
consumer purchases over the internet.
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Lack of trust is one of the most frequently cited reasons for customers not shopping on
the internet. Security and privacy have an impact on customers trust in shopping on the
internet. The apprehensions of the customers regarding the security for online
transactions and authenticity of goods are curtailing the success of the e-shopping
model. More and more sophisticated customers would rather pay higher price to e-
shoppers who provide high quality services. Bruskin / Goldberg research, for example,
reports 75% of internet shoppers emphasize credit card security as a major
consideration when deciding whether or not to buy items online.[ Amoroso & Hunsinger
,2008]
H4: Security has influence on e-satisfaction of Internet shops customers
Serviceability
General feedback on the web site design , competitive price of the product ,
merchandise availability , merchandise condition , on-time delivery , merchandise return
policy , customer support , email confirmation on customer order , promotion activities
are the factors affecting the e-satisfaction and thereby the overall success of the e-
tailing site. the level of e-satisfaction is also determined by the quality of e-services , the
price level and the purchase process . Product delivery has the strongest influence on
customers' satisfaction and future purchase intentions.
H5: Serviceability has influence on e-satisfaction of Internet shops customers
4- Research Methodology:
With the qualitative findings as a foundation, the quantitative phase of research reported
next focused on surveyed data which empirically test the conceptual model of the study.
The customer’s e-satisfaction and its related variables have been measured on a five
point Likert - scale ranging from 1 to 5 with the following equivalences ,'' 1'' : '' strongly
disagree '' ; ''2'' : '' slightly disagree'' ; ''3'' : '' neutral '' ; ''4'' : '' agree '' ; and ''5'' : '' strongly
agree '' .
The samples were confined to e-shoppers in Esfahan, Iran. A questionnaire was
designed and pre-tested on 40 participants according to the standard approach and
subsequently was dispatched to 195 such individuals of different jobs and locations.
Usable responses to the survey were obtained from 181 shoppers (93%). SPSS 17
and AMOS Graphics 18 were employed in data analysis.
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Sample Characteristics
In its majority, the sample is composed by males and females, aged 20 to 40, with
academic education and occupation of college students and employees. All respondents
have a few years of e-shopping experience at least. The items which mostly purchased
by our subjects are internet and telecom services, educational materials, digital and
electronic components which also tend to be items purchased most frequently by
online shoppers. (See table 2)
Table 2.Sample principal characteristics
Demographic Characteristics F % Demographic Characteristics F %
Gender Male 86 48
E-Shopping
Experience
year))
Under 1 47 26
Female 95 52 1 to 3 67 37
Age
Under 25 76 42 4 to 6 44 24
26 to 35 74 41 Above 6 23 13
Above 36 31 8
Preferred
Items to
purchase
on-line
Movies 23 13
Education
Associate degree
& lower 51 28
Digital &
Electronics 27 15
Bachelor Degree 49 27 Educational
materials 37 20
Master degree 67 37 Make Up 13 7
PhD 14 8 Decorative 16 9
Profession
Low level jobs 46 25 Mobile & Laptop 11 6
High level jobs 23 13 Stock 14 7
Student 71 39 Internet and
telecom ser. 40 22
Self-employed 31 17
number of
website
visited
1 to 3 71 39
Working
experience
with
Computer
(years)
Under 5 33 18 4 to 6 46 25
6 to 10 78 43 7 to 9 25 14
11 to 14 46 25 Above 10 39 22
Above 15 24 13 Total 181 100
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Reliability and Validity
All indicators significantly loaded to a respective construct, proving unidimensionality.
The reliability of the research construct has been examined by Cronbach Alpha
coefficients; we found strong support for construct reliability.
The validity of the construct also has been examined by means of factor analysis.
Total scale showed relatively high Cronbach Alpha coefficients at α > 0.88 and all values
ranged from 0.70 for security to 0.83 for e-satisfaction.
5- Data Analysis:
Confirmatory factor analysis was conducted to determine the indicators (i.e.
measurement item) for each construct loaded as predicted on the respective construct
(i.e. e-satisfaction). We refined the scales by deleting items, that did not highly correlate
with other items measuring the same constrict. Through a series of scales purification
process, final acceptable CFA results were achieved for: CMIN/DF=2.371(Ρ-
value=0/000), CFI=0.95, AGFI=0.92, NFI=0.93, GFI=0.93, RMR=0.06, RMSEA=0.063.
Through CFA, we could confirm the presence of the construct (e-satisfaction) and the
five dimensions of e-satisfaction (i.e. convenience, merchandising, website design,
security and serviceability. (See table 3)
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Table 3: The result of the CFA on e-satisfaction
Item Description Regression
Rate
Cronbach's
Alpha
E-satisfaction
Familiarity satisfaction with e-shops 0.73
0.81
Satisfied with purchase from e-shops 0.8
Willingness to repeat the purchase from e-shops 0.82
Increase the frequency of visiting the e-shops 0.72
Recommend others to buy from internet e-shops 0.76
Satisfied with all facilities and services of e-shops 0.57
Convenience
Purchasing from e-shops is highly time saving 0.76
0.72 Purchasing from e-shops is easier 0.95
Searching the needed products in e-shops is easy 0.61
Merchandising
E-shops products is enough to answer the customers 0.52
0.73
E-shops products diversity is more than normal shops 0.52
Info quantity for website products is enough 0.8
The given info about website products is qualified 0.81
Cost of searching products in e-shops is low 0.51
Site design
E-shoppers are guided while searching products 0.68
0.71
Websites view and design is suitable and beautiful 0.51
Exploring speed of e-shops website on screen is good 0.54
E-shops website design is changeable by applicants 0.52
The information presented by e-shops is up to date 0.65
Security The financial security exists in e-shops 0.6
0.70 No need to worry for personal privacy in e-shopping 0.88
Serviceability
The customers claim in e-shops will be investigated 0.58
0.79
Special services are given in e-shopping 0.68
E-shops concern about packaging and quality 0.58
Delivery of products in e-shops is fast and on time 0.77
E-shops products are sent by prof. post services 0.52
Price of e-shops products is cheaper 0.55
E-shops products is always available to supply 0.53
The reimbursement of product is easy in e-shops 0.63
E-shops send approval email to customers 0.62
Purchasing process is e-shops is easy and pleasing 0.68
E-shops let customers comment about website design 0.54
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6- Result and Conclusion:
The hypothesized model is tested employing structural equation modeling using AMOS.
The overall fit of the model is acceptable. All the hypothesized paths are supported
except one path (i.e. website design e-satisfaction).
As shown in Table 4 and Figure .1, e-satisfaction is influenced by convenience (β
=0.38) supporting H1, merchandising (β = 0.41) supporting H2, security (β = 0.22)
supporting H4 and serviceability (β = 0.85) supporting H5 which compiles with most
previous researches. The findings doesn’t support H3,indicating that the website design
(β = - 0.22) has not a significant influence on e-satisfaction, which is opposing our initial
expectation and other researches that website design has influence on e-satisfaction,
e.g. Kim et al (2009 ) , Cai and Xu (2006) and Shankar et al (2003).
This purpose of the study was to develop and test an integrative model of e-
satisfaction by conceptualizing that e-satisfaction is influenced by convenience,
merchandising, security and serviceability aspects of e-shopping among which
serviceability considered to be the strongest predictor. The study supports mainly by
previous studies.
Table 4 .Standardized parameter estimates of the hypothesized paths
Hypothesizes Item Coefficient
(t-value) Result
H1 Convenience E-satisfaction
0/38 (4/80) Supported
H2 Merchandising E-satisfaction
0/41 (2/75) Supported
H3 Site Design E-satisfaction
0/22 (1/69) Rejected
H4 Security E-satisfaction
0/22 (1/98) Supported
H5 Serviceability E-satisfaction
0/85 (2/15) Supported
CMIN/DF=2.371(Ρ-value=0/000), CFI=0.95, AGFI=0.92, NFI=0.93, GFI=0.93, RMR=0.06,
RMSEA=0.063
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Figure.1. Summary results in the model of e-satisfaction process
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