Electronic the internet. Electronic commerce operates in all four

Electronic
commerce or e-commerce is a term for any type of business, or commercial transaction
that involves the transfer of information across the Internet. It covers a
range of different types of businesses, from consumer based retail sites,
through auction or music sites, to business exchanges trading goods and
services between corporations. It is currently one of the most important
aspects of the Internet to emerge. Also it refers to the purchase and sale of
goods and/or services via electronic channels such as the internet. It is a
type of business model, or segment of a larger business model, that enables a
firm or individual to conduct business over an electronic network, typically
the internet. Electronic commerce operates in all four of the major market
segments: business to business, business to consumer, consumer to consumer and
consumer to business. Almost any product or service can be offered via e-commerce,
from books and music to financial services and plane tickets. E-commerce was
first introduced in the 1960s via an electronic data interchange (EDI) on
value-added networks (VANs). The medium grew with the increased availability of
internet access and the advent of popular online sellers in the 1990s and early
2000s (Rivera, 2017). Some examples of e-commerce are online shopping,
electronic payments, Internet banking, online ticketing etc. The benefits of
ecommerce revolve around the fact that it eliminates limitations of time and
geographical distance. In the process, e-commerce usually streamlines
operations and lowers costs.

 

1.7 Types of
E-commerce

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Classifying
e-commerce businesses is tricky. Researches run the risk of turning it into an
inconsequential exercise, or they could end up splitting hair. To grasp a
deeper understanding of e-commerce concepts, it is important to ascertain the
basis and purpose of classifying e-commerce businesses into types. The first
thing to think about is the type of business transaction that the firm is going
for, and who the firm wants to sell its goods and services to. Which business
model to apply, B2B, B2C, C2C, or C2B? To be more specific, the e-commerce business
models can be divided into four major types, all with different
characteristics.

1.7.1
B2B E-Commerce

Business-to-business
e-commerce is the transactions between two companies. B2B activity is not new,
but the internet has changed how everything is transacted. While many ecommerce
businesses in this niche are service providers, there are software companies,
office furniture and supply companies, document hosting companies, and numerous
other e-commerce business models under this heading.  An example of B2B is a company that outsources
its bookkeeping activities to another company.

 

 

1.7.2 B2C
E-Commerce

Business-to-Consumer e-commerce transactions
deal with customers purchasing products and services from companies through the
Internet (Johnson, 2017).The B2C sector is what most people think of when they
imagine an e-commerce business. This is the deepest e-commerce market. When
compared to buying retail in traditional commerce, the consumer usually has
more information available in terms of informative content and there is also a
widespread idea that the products will be cheaper, without jeopardizing an
equally personalized customer service, as well as ensuring quick processing and
delivery of the order.

 

1.7.3 C2C
E-commerce

Consumer-to-consumer transactions
occur when a company places a job online and businesses bid on the project. Created
by the rise of the e-commerce sector and growing consumer confidence in online
sales, these sites allow customers to trade, buy, and sell items in exchange
for a small commission paid to the site. Opening a C2C site takes careful
planning. Despite the obvious success of platforms like eBay and Craigslist,
numerous other auction and classified sites (the main arenas for C2C) have
opened and quickly closed due to unsustainable models.

 

1.7.4 C2B
E-commerce

Consumer-to-business
e-commerce seems lop-sided. But online commerce has empowered consumers to
originate requirements that businesses fulfill. This type of ecommerce business
involves individuals selling products or services to businesses, and is roughly
equivalent to a sole proprietorship serving a larger business. An example of
this could be a job board where a consumer places her requirements and multiple
companies bid for winning the project (Dematas, 2017).

There
is a lot of value in being clear about the type of e-commerce business one is
talking about. Among other benefits, it allows us to make like-to-like
comparisons across e-commerce businesses. At the same time, it helps us better
understand the business model of different e-commerce players (Fernandez, 2014).

 

1.8 Customer
Satisfaction

Customer
satisfaction is a marketing term that measures how products or services
supplied by a company meet or surpass a customer’s expectation (Beard, 2014).
Also it measures the level of satisfaction of a customer with the supplied
product/service. It is closely related to interpersonal trust. Customer
satisfaction measures how well the expectations of a customer concerning a
product or service provided by the company have been met. Customer satisfaction
is an abstract concept that involves such factors as the quality of the
product, the quality of the service provided, the atmosphere of the location
where the product or service is purchased, and the price of the product or
service (Grimsley, 2016). It is the measure of how the needs and responses are
collaborated and delivered to excel customer expectation. Customer satisfaction
is a part of customer’s experience that exposes a supplier’s behavior on
customer’s expectation. Customer satisfaction is the overall essence of the
impression about the supplier by the customers, it is important due to many factors
as it’s a leading indicator of consumer repurchase intentions and loyalty, it’s
a point of differentiation, it reduces customer churn, it increases customer
lifetime value, it reduces negative word of mouth, and it’s cheaper to retain
customers than acquire new ones (Beard,2014).

1.9 Factors affecting customer satisfaction

 

Factors
affecting customer satisfaction is of worth importance in order to know the
reasons or the factors which are responsible to create satisfaction among
customers for a particular brand. Some of these factors include:

 

1.9.1 Product quality

Product
quality is an important factor that extremely affects the customer’s decisions
whether to buy the product or not. Product quality refers to the group of
saleable good’s features and characteristics that determine the quality’s
desirability and that can be controlled by manufacturer in order to meet the
basic requirements. Most businesses that produce goods and offer them for sale
usually have product quality or assurance departments that control and monitor
the outgoing goods for consumer acceptability. Product quality is a way to
integrate features that have a capacity to meet consumer needs and provide
customer satisfaction by improving products (goods) and making them free of any
deficiencies or defects. Customers are satisfied when the perceived service
meets or exceeds their expectations. They are dissatisfied when they feel that
the service didn’t meet their high expectations. Quality and customer
satisfaction have provided some insights into determining the levels of
satisfaction for product experience. The more quality information provided by
the online retailers, the better the decisions could be done adequately (Ludin &
Cheng, 2014). Customer service and a positive customer experience are necessary
to sales in the e-commerce marketplace. Product quality is customers’ overall
evaluation of the excellence in the performance of the good or service (John,
Mowen & Michael, 1997).

1.9.2 Customer Services

Customer
service refer to the system of activities that include customer support
systems, complaint processing, speed of complaint processing, ease of reporting
complaint and friendliness when reporting complaint (Kim, Park and Jeong ,
2004). According to Ahn et al. (2006), when the customers’ complaints are not
considered properly and quickly, they start looking for other brands with
higher performance. The friendly attitude and well-mannered behavior of the
customer service employees at service firms leaves a positive impression on the
online customers which can lead then to satisfaction (Soderlundet al., 2008).

 

1.9.3 Price
Fairness

As
discussed earlier, online customers became more aware as they compare the
prices of products and service before taking the purchasing decision. According
to Kotler et al. (2010) price is the amount of money charged for a product or
service, or the sum of the values that customers exchange for the benefits of
having or using the product or service. While Stanton et al. (1994) defined
price as the amount of money or goods needed to acquire some combination of
another goods and its companying services. Price fairness is a very important
concern that leads toward satisfaction as it refers to consumers’ assessments
of whether a seller’s price is reasonable, acceptable or justifiable. Improving
customer satisfaction and customer loyalty can be done through charging fair
and good prices.

 

1.9.4
Technology

The
technology factors refer to the websites’ qualities that make certain
functionality of the site. These factors include security features, website
ease of use, user-friendly website, and privacy. Security refers to the
website’s ability to protect the customer’s personal information collected
during electronic transactions from unauthorized use of disclosure or from
hacking. Website ease of use and user friendliness refers to the website’s
speed, direction-finding capability, simple search paths, and interactivity.
Privacy refers to the willingness to share information over the Internet that
allows for the conclusion of a purchase (Bèlanger et al., 2002).

1.9.5 Logistics

Logistic
factors refer to the delivery of the products and services. They include two
main services which are delivery performance and service that refer to aspects
such as speed of delivery, tracking and tracing, accuracy of delivery and
communication with customers regarding possible delays in delivery.

1.10 Literature review

The study held in
2017 by G.R Amanjaneyulu et al. discussed the Customer
Satisfaction towards online Stores. A Survey was distributed among a sample of 100
respondents. Based on the findings, the results showed that the
majority of people prefer amazon.com and young customers are most recreational
in their searching shopping. Online store customers had been satisfied with
services provided by online stores except guaranty, warranty, and after sale
service (G.R Amanjaneyulu, 2017).

Recently in
2017, Dr. A B Santhi discussed the factors influencing customers’ online
shopping decisions and how these factors affect customer satisfaction. A
well-structured questionnaire was designed and administered to collect samples
across Tirupati Town. The study has been undertaken with reference to a sample
size of 120 respondents. The results indicated that the respondents are
becoming more internet savvy every day as they become more confident they are
ready to buy high value products online as well. The results also indicated
that businesses venturing or expanding into the online market need to reduce
the customer perceived risks by making shopping portals easier to navigate,
providing secure payment options as per norms, ensuring speed and quality of
delivery to gain and maintain customer trust(Santhi ,  2017).

In 2015, S.BHUVANESWARAN
et al.’s study discussed the customer satisfaction towards Flipkart.com users
and tried to find out various attributes of Flipkart users of Chennai city
towards the online shopping. Survey was conducted and distributed among
respondents. The results indicated that the frequency of purchase is more among
men and the word of mouth was more influential in promotion. The results also
showed that most of the customers were satisfied with the services of Flipkart
and were willing to recommend them to make purchases from Flipkart. Except
packaging and warranty, all others are considered important in the decision
making of online purchases. Almost all the factors that Flipkart is focusing
onto are of high importance to the customer. The commercials used by Flipkart
are effective enough to convey the message since the ads are interesting enough
to gain attention and position itself into the prospects mind (S.BHUVANESWARAN,
2015).

 

The study held by
Živil?Baubonien?et al. in 2015 discussed e-commerce factors influencing consumers’ online
shopping decisions. These factors have been disclosed through
quantitative research by analyzing data collected via a web?based
questionnaire survey. The sample consisted of 183 Lithuanian consumers who were
purchasing online. The empirical findings of their study indicated that the
main factors influencing consumers to shop online are convenience, simplicity
and better price. Analysis of socio-demographical characteristics such as
gender has shown that men shop more often online because of the lower price.
Respondents of the 25–35 year age group more often choose shopping online for
such reasons as lack of time and a wide range of products. The most beneficial
factor of shopping online was identified as a possibility to compare prices and
buy at a lower price (Živil?Baubonien?, 2015).

Also in 2015 MutiaSobih et al. discussed
E-Commerce service quality on customer satisfaction, belief and loyalty. The
researcher used survey to collect primary data from populations which were
foreign tourists who have reserved a hotel rooms online. The study was
conducted on three hotels in which 100 respondents selected and given
questionnaires in Malaysia. Based on the discussions, the results show that
E-commerce service quality affects customer satisfaction and in order to have a
satisfied customer, the hotel industry should fulfill the service quality
expected by customers (Mutiasobih, 2015).

In 2015 H. Musa
et al. investigated factors affecting customer satisfaction towards online shopping.
There are three factors contributed to this research which are product quality,
brand, and shopping experience. A survey of 150 questionnaires had distributed
among university student to gauge their factors to shop online. The data has
been collected and analyzed by using Statistical Package for Social Science
(SPSS) and Microsoft Excel. Based on the research, the results show that
product quality, brand and shopping experience have a significant relationship
to customer satisfaction towards online shopping (Musa, 2015).

In 2014 Sharon
Rudansky-Kloppers discussed investigating factors influencing customer online
buying satisfaction in Gauteng, South Africa. The researcher used a sample of
111 online shoppers and conducted a quantitative research by means of a
structured questionnaire. The results indicated that customers view
convenience, delivery, and time saving as the most important reasons for buying
online, while branding was viewed as the least important factor (kloppers, 2014).

Also, Shuqin Cai et al. 2014 discussed the impacts of service
quality and customer satisfaction in the e-commerce context. Data were
collected through online questionnaire survey link that was sending out to
contacts through QQ, which is the most popular social networking tool, in which
contacts were asked friendly to pass the questionnaire link to their own
contacts. In total 699 samples were collected and within the 699 samples, there
were 495 are valid and others are invalid due to uncompleted questions. The
results indicated that both e-service quality and logistics service quality are
strongly linked with customer satisfaction. The research results shown that
practitioners (e-retailers) should not only focus on e-service quality, but
also the logistics service quality (ShuqinCaiin, 2014).

In other study, Aleksandra Radziszewska (2013) discussed the
relationships between the main dimensions of e-commerce and the e- customer
satisfaction. The sample included the customers of some e-commerce sites.
Questionnaires were distributed to potential respondents in which 183 of
300customers replied and among the 183 respondents, 67 of them indicated that
they have little or no experience of online shopping, 16 questionnaires were
uncompleted and 100 respondents have been used in the analysis of data, by
using Correlation Coefficient analysis. All respondents have experience of
online shopping. The study indicated that there are four proposed dimensions of
online shopping quality have different influence on e-customers’ satisfaction
which are website quality, e-service quality, trust and personalization (radziszewska,
2013).

Guo, Ling et al. in 2012 developed a model of factors influencing online
shopping satisfaction in China. They identified eight influencing factors on
customer satisfaction which are; website design, security, information quality,
payment method, e-service quality, product quality, product variety, and
delivery service. They found that all of these eight factors are positively
related to consumer satisfaction when buying online (Ling, 2012).

In 2012 Byambaa et al. designed and tested their model of factors influencing
online satisfaction of buyers of electronic airline tickets. These factors are
ease of use, information quality, website design, payment security, and
interactivity. Based on the model, they found that three of these factors were
extremely significant in affecting satisfaction of online e-ticket shoppers;
namely, interactivity, payment security, and ease of use (Byambaa, 2012).

In 2011, Chun-Chun Lin et al.’s study
discussed the critical factors impact on online customer satisfaction. The
investigator distributed 390 questionnaires to undergraduate students on campus
face to face and participants were asked to recall a recent on-line purchasing
experience and refer to this experience when providing their answers. Multiple
regression techniques were used to verify the overall model fit and to
illustrate online customers’ satisfaction. Based on the findings of this
research, user e-commerce satisfaction context relates to six factors affecting
customer satisfaction: information quality, system quality, service quality,
product quality, delivery quality, and perceived price(Lin, 2011).

While in 2011, Mustafa I. Eid discussed the
determinants of e-commerce customer satisfaction, trust, and loyalty in Saudi
Arabia.  The main objective of that
research is to identify the factors that influence the extent to which Saudi
consumers are satisfied with B2C e-commerce. A survey questionnaire was conducted
among Saudi e-commerce customers. Of the 500 questionnaires distributed using
the drop-off/pick-up method, 235 were picked-up resulting in a response rate of
43.6 %. Among the collected questionnaires, 17 were invalid resulting in 218
usable questionnaires. The results show that the perceived security risk and
perceived privacy were found to be weak determinants of e-commerce service
satisfaction (Eid, 2011).

In2011 Habibur Rahmanet al. discussed customer satisfaction in E-Commerce which
was their Master’s Thesis in International Business. The thesis is intended to
study consumer satisfaction using e-commerce based on a sample from China and
Bangladesh. They collected the statistical data and literature from different
resources which helped to answer the thesis questions.300 questionnaires were
distributed, 261 were recovered , no regular shopping excluding and unqualified
questionnaires were 45. Total 216 questionnaires were valid for both China and
Bangladesh for e-commerce. The results of
their study indicated that online
merchants, product categories, personalized and transaction security mechanisms
including network speed of response, the website image of integrity, payment
security, feedback, community interaction, and return were motivator factors and
Hygiene factors. However, confidentiality of personal information, product
description, shopping convenience, product quality, product prices, save time
and operating procedures were half motivator factors (Habibur Rahmanet,
2011).

In 2010 Alam et al. analyzed five factors influencing online
shopping satisfaction in Malaysia which are; website design, reliability,
product variety, time saved, and delivery performance. The researchers found
that website design, reliability, product variety, and delivery performance
were the key variables influencing online shopping. The results indicate that
the time saved did not have a significant effect on satisfaction of Malaysian
shoppers (Alam, 2010).

In 2008 Dan J Kim et al. discussed the role of trust, perceived
risk, and their antecedents in e-commerce. The data collected had indicated
that participants in the sample were active online consumers in which over 90%
of our respondents reported that they purchased products at least once through
the Internet in 2007, and their average self-rated Internet experience was 5.52
on a 7 point scale, with 7 being expert. The results showed that the Internet
consumers’ trust and perceived risk have strong impacts on their purchasing
decisions and consumer disposition to trust, privacy concerns, security
concerns,  information quality of the
Website, and company’s reputation, have strong effects on Internet consumers’
trust and satisfaction in the Website(Kimet , 2008).

In 2005 Schaupp et al. studied three
categories of determinants that could affect online shopper satisfaction.
First, technology factors which include security, usability, Site design, and privacy.
Second, shopping factors which include convenience, trust,
trustworthiness, and delivery. Third,
product factors which include merchandising, product value, and product
customization. The results indicated that the three most important attributes
to consumers for online shopping satisfaction are privacy, which is a
technology factor; merchandising, which was classified as a product factor; and
convenience, which is a shopping factor. These are followed by trust, delivery,
usability, product customization, product quality, and security (schaupp,
2005).

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