Customer Satisfaction towards Online Shopping in Sri Lanka: Moderating Effect of Income Level

Abstract

Aim: Online shopping is the most popular feature around the world as well as in Sri Lanka. People are tending to do online shopping by using those social media and also by using online shopping websites. As well as most of the business organizations try to use online shopping to sell their product and to increase their market. The objective of this research is to assess the factors influencing customer satisfaction while doing online shopping. Further, the study tested the moderating effect of income level on the relationship between factors influencing customer satisfaction on online shopping.
 Design: This study used the deductive approach and research design was based on quantitative and cross sectional. The targeted population for this study is customers living around the Colombo area, those who have internet facility in their living place or working place. The sample size was 380. The survey method is employed to collect data through a standardizes questionnaire. The selected dimensions (customer satisfaction, convenience, security, website functionality and customer service) were measured by using a Likert scale measurement items, acknowledging the prior studies.
 Findings: According to the survey findings of this study, Convenience, Web site functionality, Customer service have significant influence on customer satisfaction on online shopping. The results also indicated that the income level has a significant moderating effect on the relationship between Convenience, Web site Functionality, Security and Customer service and Customer satisfaction on online shopping.
 Implications: According to the findings of this study online retailers can identified that their consumers are more concern about the website functionality, customer service, and convenience of the online shopping. Therefore, online retailers can develop their website by adding more functions which will be helpful and easy for the customers and they can further improve their customer service at the prior purchase level as well as at the post purchase level in order to attract more customers and retain the existing customers with their business.

Determinants of Customer Satisfaction in E-Commerce: A Case Study in Higher Learning Institutions in Johor

“…These may include inefficient services such as late product delivery, poor packaging, and delayed customer service feedback. Apparently, this outcome contradicts the research done by Perera et al (2019) that stated customer service is one of the main factors in determining customer satisfaction. This result suggested that e-service quality concerns were not significant as long as the product purchase is delivered to the customer, and that would be sufficient and acceptable.…”

“…Therefore, retaining a customer is inevitable because the customer means profit to them. Perera et al (2019) stated that repurchase intention depends on the quality of the product and services obtained when purchasing the product online. Irantaj and Huseynov (2018) further stated that a firm requires a competitive advantage to leverage its strength to confront future challenges in e-commerce.…”

“…Juyal (2018) stated that an effective online shopping service needs to pay attention to customers and e-commerce marketing strategies. According to Perera et al (2019) websites' user-friendly functionality, customer service, on-time delivery, and effectiveness in handling complaints can all be significant influence factors in retaining and attracting new customers. Irantaj and Huseynov (2018) showed that experienced customers valued e-commerce website usability, privacy, and security as the most critical factors.…”

Factors Influencing Online Shopping in the Kingdom of Saudi Arabia

“…In [29], it was found that income level does not affect online shopping for necessary items, such as computer accessories, and customers of all income levels shopped mostly during discounts and special offers. In [30], it was found that income level has a significant influence on the relationship between convenience, website functionality, security, customer service, and customer satisfaction with online shopping. However, these studies did not discuss whether buyers were not the same person who is responsible for paying for the online shopping transaction, where it seems to most affect perspectives towards online shopping.…”

Factors Affecting Online Purchasing Behaviour of Management Undergraduates of State Universities in Colombo District

“…Online purchasing can be defined as a new trend across the world. The study by Perera and Sachithra (2019) indicated online shopping is now becoming a popular way to go for sales and purchase goods. Further, it elaborates online shopping is mixed with real-life shopping by today's shoppers, using Wi-Fi connectivity and the trend of showrooming (Perera & Sachithra 2019).…”