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Consumer Satisfaction in e-shopping: An Overview

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 Citation:
Kalia, P., Kaur, N., & Singh, T. (2017). Consumer satisfaction in e-shopping: An overview.
Indian Journal of Economics and Development, 13(2a), 569–576.

Indian Journal of Economics and Development

Volume 13 No. 1: 000-000
January-March, 2017
DOI: ...................................................................

www.soed.in

Consumer Satisfaction in e-shopping: An Overview

1
Prateek Kalia*, 2Navdeep Kaur, and 3Tejinderpal Singh
1
Department of Research Innovation & Consultancy, I.K Gujral Punjab Technical University
Jalandhar-Kapurthala, Kapurthala-144601
2
Department of Business Administration, Guru Nanak Dev Engineering College, Ludhiana
3
University Business School, Panjab University, Chandigarh

*Corresponding author's email: rs.pkalia@ptu.ac.in

Received: October 26, 2016 Accepted: April 7, 2017

ABSTRACT
Worldwide business-to-consumer (B2C) sales will touch $1.92 trillion. Everyday companies are adopting newer communication
and information technologies to maintain and enhance their performances. Attracting new customers is challenging task in this
competitive environment, therefore retaining existing customers is extremely important for survival. Studies have found that higher
customer satisfaction translates into higher future profits, repeat purchase and positive word of mouth. As a result, marketers and
researchers consider satisfaction as an important practical and theoretical issue. There have been many studies which decipher
satisfaction and its interrelationship with other concepts. This paper integrates these diverse studies to provide a conceptual basis
for understanding existing research.

Keywords
Consumer satisfaction, online shopping

JEL Code
M31, M37, M15

INTRODUCTION influence customers' future purchase intentions (Kalia,

Worldwide business-to-consumer (B2C) e-commerce
sales will touch $1.92 trillion (Statista.com, 2016). This
growth is attributed to increase in number of online and
mobile users in emerging markets, boom in mobile
commerce, better shipping and payment options, and
entry of major brands in international markets. E-
commerce companies are experimenting with their
business models to attract and expand their customer base
(Kalia, 2015) or banking on their deep pockets, strong
domain knowledge and international exposure.
Competition is so stiff that in countries with
underdeveloped e-commerce ecosystem such as India, e-
retailers are deploying large chunks of their investments
to build infrastructure like fulfillment and logistics on
their own (Kalia, Kaur, & Singh, 2016; PWC &
ASSOCHAM, 2014). Customer satisfaction has been
found vital for success and survival of any traditional or
online business system (Ho & Wu, 1999). Many studies
have indicated that customer satisfaction can positively
Arora, & Kumalo, 2016; Taylor & Baker, 1994), customer
retention (Gustafsson, Johnson, & Roos, 2005) and
satisfied customers engage in positive word-of-mouth
advertising by sharing their favorable experiences with
others (File & Prince, 1992; Richins, 1983). As a result,
marketers and researchers consider satisfaction as an
important practical and theoretical issue (Jamal, 2004).
Earlier, web presence and low prices were believed to be
key drivers of success but now online stores have realized
importance of customer satisfaction (Fang, Chiu, &
Wang, 2011), because higher customer satisfaction is
believed to be best indicator of firms future profit (Kotler,
2000), product or service performance (Anderson &
Sullivan, 1993), adaptation or disconfirmation (Oliver,
1980) and post-purchase behavior (e.g., repurchase,
complaining) (Anderson & Sullivan, 1993; Lin, Wu, &
Tsai, 2005; Oliver, 1993). Heskett et al., (1994)
mentioned about the service profit chain and linked
internal operational factors such as service delivery

769
system and employee capabilities with external service
performance such as customer satisfaction, loyalty,
revenue growth, and profit. Before hashing out various
studies related to consumer satisfaction in online context,
next section will discuss definitions of consumer.
Definition of Consumer Satisfaction
Early satisfaction concepts have usually outlined
satisfaction as a post alternative analysis judgment
regarding a specific purchase call (Oliver, 1980; Oliver &
Desarbo, 1988). Satisfaction has been interpreted as
process or an outcome (Parker & Mathews, 2001). In
process definition, disconfirmation paradigm has been
emphasized i.e. customers compare performance with
expectations and decide about confirmation or
disconfirmation (Oliver & Desarbo, 1988). Kotler (2000)
also defined satisfaction as, “person's feelings of pleasure
or disappointment resulting from comparing a product
perceived performance or outcome in relation to his or her
expectations”. There are researchers who emphasized that
satisfaction is outcome of service quality (Bitner, Booms,
& Tetreault, 1990; Parasuraman, Zeithaml, & Berry,
1988, 1985; Pitt, Watson, & Kavan, 1995), cognition and
affect (Homburg, Koschate, & Hoyer, 2006; Oliver, 1980)
or perception, evaluation and psychological reactions to
the consumption experience with a product or service (Yi,
1990). In case of e-services customers give less
importance to expectations as comparison standard
(Zeithaml, Parasuraman, & Malhotra, 2000). Instead,
they keep traditional services as benchmarks (Riel,
Liljander, & Jurriëns, 2001) and use experience-based
norms (Cadotte, Woodruff, & Jenkins, 1987).
Studies Related to Consumer Satisfaction in Online
Context
Some of the studies related to consumer satisfaction in
online context are briefly discussed below.
Ho and Wu (1999) found that product, information and
technological characteristics along with homepage
presentation, and logistical support can moderate
customer satisfaction.
Szymanski and Hise (2000) examined the factors that
make consumers satisfied with their e-retailing
experiences and found that convenience, site design, and
financial security are the dominant factors in consumer
assessments of e-satisfaction.
Jones et al. (2000) observed that effectiveness of core-
service satisfaction on repurchase intentions becomes
weak in case of high switching barriers conditions. In case
of high satisfaction there is no influence of switching
barriers on repurchase intentions, but when satisfaction is
low the influence of switching barriers on repurchase
intentions gets high.
Kim and Lim (2001) focused on the attributes of the
Business-to-Consumer websites and observed that
consumers' Internet shopping satisfaction is influenced
by information quality, speed, reliability and
entertainment. Further they recommended adding
entertainment factor with good information to increase
customer satisfaction.
Koivumäki (2001) observed that map-type interface can
enhance shopping experience in a computer mediated
shopping environment and there exist a highly positive
relationship between amount of purchases and consumer
satisfaction level.
Cho and Park (2001) proposed electronic commerce user-
consumer satisfaction index (ECUSI) instrument which
reflects consumer satisfaction, user information
satisfaction and electronic commerce. ECUSI consists of
ten factors i.e. product information, additional
information services, delivery time and charge, consumer
services, product merchandising, ease of use, purchase
result and delivery, site design, payment methods and
purchasing process.
Bhattacherjee (2001) researched influence of cognitive
beliefs and affect on information systems (IS) use
continuance, by adapting expectation-confirmation
theory. His results suggested that satisfaction and
perceived usefulness with respect to IS determines users'
continuance intentions. He also found that perceived
usefulness and confirmation of expectation from prior IS
use can shape user satisfaction. After acceptance, users'
confirmation level influences perceived usefulness.
Petrick et al. (2001) suggested that revisit intention of
entertainment vacationers can be predicted through past
behavior, satisfaction, and perceived value. However,
these variables poorly predict intention to attend live
theater entertainment or booking of entertainment
package during a visit.
Madu and Madu (2002) described fifteen dimensions
(performance, structure, reliability, serviceability, trust,
product/service differentiation and customization,
reputation, assurance, features, aesthetics, storage
capability, security and system integrity, responsiveness,
web store policies and empathy) that are perceived by
customers as a necessity in achieving customer
satisfaction in a virtual operation
Devaraj et al. (2002) used structural equation modeling to
identify the importance of perceived ease of use and
usefulness in forming consumer attitudes and satisfaction
with the EC channel. They also empirically proved that
one of the SERVQUAL dimension i.e. assurance
determines EC channel satisfaction.
McKinney et al. (2002) synthesized two perspectives i.e.
user-satisfaction literature in IS and the customer-
satisfaction literature in marketing to identify nine key
constructs (relevance, timeliness, reliability, scope,
perceived usefulness, access, usability, navigation,
interactivity) for analyzing Web-customer satisfaction.
Yang et al. (2003) studied about service quality in realm
of the context of Internet retailing and revealed that
predominant service attributes leading to consumer
satisfaction are responsiveness, convenience, credibility,
reliability and ease of use.
While developing scale for measuring quality of e-tail
Wolfinbarger and Gilly (2003) discovered that customer
loyalty, judgement of quality and satisfaction and
attitudes towards the website can be predicted through
factors like customer service, fulfillment/reliability,
website design and privacy/security.
Jun et al. (2004) keyed out access, attentiveness,
credibility, reliable/prompt responses, ease of use and
security as six major service quality dimensions in case of
online retail. They noticed that reliable/prompt responses,
attentiveness, and ease of use had significant impacts on
satisfaction.
Bhattacherjee and Premkumar (2004) conducted a
longitudinal study and reported that changes in IT users'
beliefs and attitudes can be understood through important
factors like disconfirmation and satisfaction. Similarly,
Hsu et al. (2006) presented a model based on Theory of
Planned Behavior (TPB) by incorporating two
Expectation Disconfirmation Theory (EDT) constructs
i.e. disconfirmation and satisfaction for studying users'
continuance intention in the online shopping context
Shih (2004) empirically proved that individual's e-
shopping attitudes can be predicted through perceived
usefulness (PU) and perceived ease of use of trading on-
line (PEOUT). Further, user acceptance is affected by
user's perceptions of information, system, internet
satisfaction and service.
Yang and Fang (2004) conducted an exploratory research
to understand service quality and customer satisfaction
within the setting of online securities brokerage services
and noticed that primary service quality dimensions,
except ease of use lead to online customer satisfaction.
Whereas information systems quality factors led to
dissatisfaction.
Kim and Stoel (2004) examined the website attributes that
favorably affect consumer satisfaction and found that
shopper satisfaction can be predicted through website
quality dimensions (informational fit-to-task, response
time and transaction capability).Lin et al. (2005)
investigated the value of including 'playfulness' in
expectation-confirmation theory (ECT) and proposed
that factors which lead to users' intent to reuse a web site
are confirmation to satisfaction, perceived playfulness
and perceived usefulness.
Zhang and Prybutok (2005) focused their research to
examine the factors that contribute to e-service and
ascertained that consumers' satisfaction and intentions are
affected by Web site service quality, service convenience
and risk.
Balabanis et al. (2006) focused on two antecedents of e-
store loyalty, perceived switching barriers and
satisfaction. Difference in impact of switching barriers at
different levels of customer satisfaction was found.
Yang (2007) modified the D&M IS Success Model by
adding E-S-Qual and formulated a website loyalty model.
He found that e-satisfaction is affected by service and
information quality which further effects e-loyalty.
Cristobal and Flavia (2007) indicated that perceived
quality is a multidimensional construct (assurance, web
design, order management and customer service) which
can influence satisfaction, which further regulates
consumer loyalty.
Ranaweera et al. (2008) deployed SEM and found that the
personality characteristics have significant moderating
effects on online purchase intentions. They also found
that risk aversion can increase the likelihood of purchase
when consumers are satisfied and technology readiness
increases the likelihood of online purchase.
Nosrati (2008) surveyed Iranian online book shoppers
and suggested that e-trust affects satisfaction through
quality. Reliability was found to be critical indicator of
quality.
To understand the bearing of website quality on
purchase intentions and customer satisfaction Bai et al.
(2008) empirically formulated a conceptual model. They
noticed a direct and positive impact of website quality on
customer satisfaction, which further positively influences
purchase intentions.
Hsu (2008) proposed an index for online customer
satisfaction by adapting American Customer Satisfaction
Index (ACSI) and found factors like e-SQ, trust and
perceived value significantly influence overall customer
satisfaction.
Collier and Bienstock (2009) observed a significant
relationship between customer satisfaction and outcome
and recovery quality, however any significant relation
with behavioral intentions was not found. They remarked
that outcome and recovery quality have impact on
patronage intentions in future, which is mediated through
customer satisfaction.
Herington and Weaven (2009) measured e-service quality
for e-retail banking and proposed a four-factor solution
(personal needs, site organization, user-friendliness and
efficiency) that predicted overall customer satisfaction
with banking performance except efficiency.
Kim et al. (2009) examined an e-loyalty development
model and found that the e-loyalty development process
is regulated by e-trust and e-satisfaction. They also found
that two of the etail quality dimensions i.e.
fulfillment/reliability and Website design positively
influences e-satisfaction.
Roy and Butaney (2010) classified six dimensions of
website quality for the online retail websites, of which
interactivity features, website appearances, site
organization and navigational quality have significantly
bearing on e-satisfaction and the customer's affective
attitude towards the website.
Gounaris et al.. (2010) examined the effects of service
quality and satisfaction on three consumer behavioral
intentions, namely word-of-mouth, site revisit, and
purchase intentions in the context of internet shopping
and revealed that e-service quality has a positive effect on
e-satisfaction.
While examining the determinants of the B2C e-
commerce customer satisfaction Eid (2011) found
significant positive impact of information and user-
Table 1: Factor affecting consumer's satisfaction in online context
Study
Ho and Wu (1999)
Szymanski and Hise (2000)
Jones et al. (2000)
Kim and Lim (2001)
Koivumäki (2001)
Cho and Park (2001)
Bhattacherjee (2001)
Petrick et al. (2001)
Madu and Madu (2002)
Devaraj et al. (2002)
McKinney et al. (2002)
Yang et al. (2003)
Wolfinbarger and Gilly (2003) Customer service, fulfillment/reliability, website design and privacy/security
Jun et al. (2004)
Shih (2004)
Yang and Fang (2004)
Kim and Stoel (2004)
Lin et al. (2005)
Zhang and Prybutok (2005)
Balabanis et al. (2006)
Yang (2007)
Cristobal and Flavia (2007)
Ranaweera et al. (2008)
Nosrati (2008)
Bai et al. (2008)
Hsu (2008)
Kim et al. (2009)
Collier and Bienstock (2009)
Herington and Weaven (2009)
Roy and Butaney (2010)
Gounaris et al. (2010)
Eid (2011)
Finn (2011)
Wu et al. (2011)
Limbu et al. (2011)
Kuo and Wu (2012)
Abu and Mohammad (2013)
Moon (2013)
Khan et al. (2015)
Mediating Element
Logistical support, technological characteristics, information characteristics,
homepage presentation, and product characteristics
Convenience, site design, and financial security
Switching barriers
Entertainment, speed, information quality and reliability
Map-type interface.
Product information, additional information services, delivery time and charge,
consumer services, product merchandising, ease of use, purchase result and
delivery, site design, payment methods and purchasing process
Cognitive beliefs and affect
Past behavior, perceived value
Performance, structure, reliability, serviceability, trust, product/service
differentiation and customization, reputation, assurance, features, aesthetics,
storage capability, security and system integrity, responsiveness, web store policies
and empathy
Perceived ease of use and usefulness
Relevance, timeliness, reliability, scope, perceived usefulness, access, usability,
navigation, interactivity
e-service quality dimensions (responsiveness, convenience, credibility, reliability
and ease of use)
Online retailing service quality dimensions
(reliable/prompt responses, attentiveness, and ease of use)
Perceived ease of use and perceived usefulness
Responsiveness, service reliability, ease of use, competence, access, system
reliability, timeliness, security
Website qualitydimensions (transaction capability, informational fit-to-task and
response time)
Perceived playfulness, perceived usefulness
E-service (service convenience, Web site service quality, and risk)
Switching barriers
Service quality and information quality
Perceived quality (web design, customer service, assurance and order management)
Web site satisfaction and technology readiness
Quality, e-trust
Website quality
e-SQ, trust and perceived value
etail quality dimensions (fulfillment/reliability and Website design)
Outcome quality and recovery quality evaluations
Personal needs, site organization and user-friendliness
Website quality dimensions (navigational quality,website appearances,
interactivity features and site organization)
e-service quality
User interface quality and information quality
Download speed
Virtual community cohesion
Non-deception, fulfillment, and security
Perceived justice (distributive, procedural, interactional) and emotions
Internet shopping emotional state (stimulation, pleasureand dominance)
e-service quality
Price, convenience, product information, return policy, financial risk, product risk
and delivery risk

interface quality of electronic commerce websites on
consumer satisfaction.
Finn (2011) tested non-linear effects of the dimensions of
e-service quality on customer satisfaction and identified
download speed as a must-be performance dimension.
Wu et al. (2011) observed that virtual community
cohesion play a moderating role between the relationship
of the online game service quality and satisfaction.
Limbu et al. (2011) examined the effects of consumers'
perceptions concerning the ethics of online retailers on
web site satisfaction and loyalty and revealed that non-
deception, fulfillment, and security are significant
predictors of web site satisfaction.
Kuo and Wu (2012) in their results indicated that
distributive justice can enhance positive emotions and
reduce negative emotions; additionally it enhances post-
recovery satisfaction and post-purchase intentions within
customers. They also observed that post-purchase
intentions are positively affected by post-recovery
satisfaction.
Abu and Mohammad (2013) found that emotional states
such as stimulation, pleasure and dominance can
positively affect e-satisfaction during internet shopping.
In contrast, remote purchase perceived risk dimensions
(which include different types of risks i.e. total, financial,
social, psychological, functional and physical) have no
impact on e-satisfaction, except negative impact of risk of
time loss.
Moon (2013) explored the effect of e-service quality on
customer satisfaction and loyalty in the area of Business-
to-Customer (B2C) and their results depicted significant
effectiveness of e-service quality in improving customer
satisfaction and loyalty.
Khan et al. (2015) probed to know perceived factors
which can affect customer satisfaction to re-purchase
intention with respect to online stores. Their analysis
indicated that seven factors i.e. three types of risk factors
(delivery, product and financial) and four other factors
like return policy, convenience, price and product
information can significantly can affect customer
satisfaction to re-purchase intention with respect to online
stores.
CONCLUSION AND MANAGERIAL
IMPLICATIONS
This literature review pertaining to consumer
satisfaction in online context helped in identifying few of
the most important factors having significant influence on
e-satisfaction. These factors are summarized below along
with the managerial implications.
Site design
Site design is extremely important as it creates the first
impression of the online retailer and helps in driving
traffic, making people stay, and finally convincing first
time visitors to purchase product (Bai et al., 2008;
Ranaweera et al., 2008). Therefore design of an online
shop should offer enough information to compare
products (Cristobal & Flavia, 2007), give greater sense of
credibility, integrity and reliability in user interface to
reduces privacy concerns of consumers (Eid, 2011),
interactive, easy to navigate, simple and aesthetically
pleasing (Roy & Butaney, 2010; Szymanski & Hise,
2000), offer faster response (S. Kim & Stoel, 2004), fun,
immersive and community-oriented (Wolfinbarger &
Gilly, 2003), fast, informative, uncluttered, (J. Kim et al.,
2009) and should consider cultural and language issues
(Zhang & Prybutok, 2005)
Reliability
Reliability has been interpreted in number of ways and
it can be reflected in consistent performance over time,
availability of website for usage, accessibility, speed and
download time, reliability in recording information and
customer transactions (Madu & Madu, 2002), consumer
privacy, payment, delivery/offline fulfillment (Kim et
al.., 2009; Kim and Lim, 2001), accuracy of the product
depiction and order (Wolfinbarger & Gilly, 2003),
providing information that is trustworthy, accurate and
credible (McKinney et al., 2002), accuracy in record,
quote, billing, calculation of commissions, service
promise and keeping system free from clogging, failure
and errors (Yang et al. 2003; Yang and Fang, 2004)
Information
In order to improve the satisfaction online retailer's
websites should furnish the buyers with valuable
information for shopping and permit them to see that the
site has high-quality content (S. Y. Kim & Lim, 2001).
This information should be easy to understand, detailed,
should describe exterior of a product, there should be
provision for additional and delivery time information
(Cho & Park, 2001). To furnish more product information
retailers can use short video or 3-D images of the product,
such clear and understandable information will assure the
customer that product quality matches with website
description and assures consumers that their financial
information is in safe hands (Khan et al. 2015). The
website should allow customer to interact with it to
receive tailored information (S. Kim & Stoel, 2004).
Information provided by retailer should be reliable,
understandable, well-organized and presented in an
entertaining manner (H. Yang, 2007).
Security
Online businesses should ensure the security of the
transactions, provide a secure server, additional layers of
security inbuilt in multiple payment options (e.g. credit
card or paypal) and guarantee against credit card fraud
(Limbu et al., 2011). There should be provisions like log
off or lock out after time-out, privacy of personal
information, fund or trade hold-up, customer protection
(Z. Yang & Fang, 2004), privacy and security policy
(Wolfinbarger & Gilly, 2003), effective firewall and
customer education (Madu & Madu, 2002).
Perceived usefulness
To enhance the perceived usefulness of an online
business website, website should provide information
that is informative, valuable, useful, improves the quality
of decision making to make final purchase (McKinney et
al., 2002), shopping online gives a feeling of greater
control (Devaraj et al., 2002; Lin et al., 2005).
Ease of use
Customers feel more satisfied if they feel that it is easy
to do what they want to do while shopping online (Devaraj
et al.,002), therefore online business should focus on
building a website that is easily navigated, user friendly,
fast, accessible, easy to check out and that provides the
functions customers need (Z. Yang et al., 2003). These
functions can be related to registering, adjusting
registration or use of information (Cho & Park, 2001).
Convenience
Convenience is important for new or existing
consumers and consumers' can experience of e-service is
through the GUI interface, therefore online business
should design interfaces for convenience and ease of use
(Zhang & Prybutok, 2005). Many customers abandon
their cart due to very lengthy process or problems in
transfer money or non-acceptance of common money-
paying cards (Khan et al., 2015), hence online businesses
should offer multiple payment options and fast check out
processes. Efficient delivery and pick up options also add
to customer convenience (Yang et al., 2003).
E-service quality
Many of the factors discussed above are inherent in e-
service quality. Majority of researchers have emphasized
for e-service quality (J. E. Collier & Bienstock, 2006;
Gounaris et al., 2010; Jun et al., 2004; Moon, 2013;
Nosrati, 2008; H. Yang, 2007; Z. Yang et al., 2003; Zhang
& Prybutok, 2005), therefore online marketers and
businesses should focus on improving their service
quality.
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