A Study of Impact of Online Purchasing on Customer’s Satisfaction in Pune City, India
Dr.Vishal Wagh1*, Dr.Cyril Crasto2, Dr.Sunetra Patwardhan3, Prof.Deepak Andhale4
1*MITCON Institute of Management (Associate Professor & Dean-Research and Consultancy) (Pharma. Dept.) 2 MITCON Institute of Management (Associate Professor & Dean-Research and Consultancy) (Busi.Admin.Dept.)
3 MITCON Institute of Management (Associate Professor ) (Pharmaceutical Management.Dept.) 4 MITCON Institute of Management (Assistant Professor) (Agri Business Management.Dept.) *Email:- [email protected]
ABSTRACT
Due to the faster growth rate and development of internet which strongly impact on the marketing world. Now a day, it is one of the most effective tools where buyer and sellers can use for trading purpose. Various businesses come with creative ideas and ways to promote their products or services through different online platforms. Study describes the importance of modern marketing as compared to traditional marketing. This study is related to identify different factors responsible for customer’s satisfaction of online purchasing or shopping. Study is based on primary and secondary data and targeted 280 respondents in pune city.
Keywords:-
Customer Satisfaction, Online Shopping, Modern Marketing, Traditional Marketing, Marketing World, Trading Purpose etc.
INTRODUCTION:
Online purchasing is the process where customers can buy products, services etc. from a seller through online platform over internet without an intermediary service. Online purchasing is the effective process of purchasing products and services from various online merchants and retailers who sell on different online platform over internet. Customers can visit any online web stores as per their convenience and buy the products as they sitting at one place. Customers have great choice to buy a variety of products from online stores.
Nowadays, online shopping is a fast growing phenomenon. Due to number of consumer’s online shop growing, to purchase goods and services and gather product information. Environment of online purchasing plays a very important role in the overall development and relationship between marketers and their customers. Consumer purchasing decisions mainly depend on the appearance like photos and images of product, quality attributes of products, Prices of the
products and video clips of the product, but it is not on the actual experience. The wide use of online platform and growth of technology have created a number of new and fresh markets for both the customers and business. Now day’s online platform over internet is not only medium to get in touch with customers, but it is also effective channel to identify potential customers and maintain good long term relationship with existing customers. Online shopping or purchasing is a convenient way of shopping for customers. Customers will be able to save their time and money, as well as retrieve all the products data or information with just few clicks in few minutes.
Purchasing can also be done from anywhere and anytime according to the customer’s convenience and preference.
LITERATURE REVIEW:
Review of literature gives clarity regarding the study of number of factors responsible for customer satisfaction. Researcher can study number of factors and variables regarding online shopping and customer satisfaction under different location as well as at different time zone.
(B.D.Wienberg, 2000) has studied that customers are happy and satisfied when they get assurance regarding safety and security from online platform. They are more satisfied in case of pricing, delivery, quality; privacy and technology factor are most suited with the expectations of customers. More customers are preferred online shopping because of getting better advantage over manual shopping especially related to the above parameters. [2]
( Reibstein, 2014) has studied regarding the reason behind the attraction of customers towards online platform and online websites for shopping, the most important reason is price of the product and quality of the product. Customers will get better quality of product with the reasonable price and with quick delivery service [5]. There are so many factors responsible for shopping online especially youngster are more attracted towards online shopping because of their perception, attitude and characteristics of individuals [3].
Based on the work of (J.Baker, 1992) [4]-[5] perception of purchasing online which greatly influenced on the mind of customers mostly by product perception where customers focus on price of the product, quality of the product and variety of the product [6]-[7] It also influenced with customer’s past shopping experience where customer focus on time required for shopping, availability of product and convenience of shopping [8]-[9]. It also includes customer service where customer mainly focused on flexibility, mode of payment, reliability and responses from
different vendors through online platform [7]. Another area is related to consumer risk where safety, security and privacy are the top most concerned. (J.Baker, 1992); (Simpson, 1993) The factors remarkable in this study are convenience shopping where customers can shop online easily and conveniently without facing any trouble or problem. Customers can easily rely on the online platform and trust over online website. Another factor is reliability where customer can depend on online platform for availability of product, price of the product as well as quality attributes of the product including policy of online store. There are additional factors like promotional policy, information related to online store, inventory and production and few testimonials on the online platform or website. [12]
According to study by (J.Baker,1992) customers are more satisfied with the convenience online shopping over the different online platforms and websites. Hence, most of the online vendors and retailers gives assurance to customer regarding timely delivery of product and there will be no any risk at the time of online payment by selecting online mode of payment. A clear explanation of online policies will satisfy customers in better way and they can easily trust the website and online platform. (N.Tamimi, 2005) who explained the quality of service and system which are major responsible factors leading to customer satisfaction. [10].
(J.E.Collier, 2006), there are two important elements regarding quality which impacts positively on the mind of the customer i.e. system quality where major focus is on technical parameters like connectivity, bandwidth, accessibility etc. on the other side information quality gives more focus on the quality information like price of the product, characteristics of the product, application area of the products etc. [10].
(Rodgers et al., 2005) explained, one more important factor which great influenced and impact on the mind of the customer i.e. Quality of service which is one of the great factor responsible for customer satisfaction. In quality of service, major focus is on timely delivery product, receives responses from online vendor, reliability and mode of payment services [14].
There are number of researchers who connect customer satisfaction with quality of product [3], [6]-[7], also (R.A. Peterson, 1989) found that, customer always gives first preference to quality of product as compared to price and variety of the product during online purchasing from different online platform and websites. [3]
RESEARCH GAP:
In the context of finding the research gap, there is a shortage of the contextually published form of related literature work that is required to study the online purchasing and its impact on customer satisfaction. There is also need to study the buying pattern and buying behavior of customer to analyse their satisfaction level. A very limited amount of studies that have been published on the above mentioned variables which not gives clear idea regarding buying pattern and behavior of customer. There is a also lack of study regarding issues related to studying service and delivery quality while taking decisions of online shopping.
OBJECTIVES OF STUDY: -
i)To study the factors responsible for satisfaction level of the customer for online purchase.
ii) To know the specific reasons for which purpose customers purchase online.
iii) To find out the costumer’s behavior for services provided by the online shopping.
STATEMENT OF RESEARCH PROBLEM:-
The emerging research problems from the background literature stay upon studying the impact upon customer buying behavior. There is a need to study the buying pattern of customer and those of their influences on brand preferences towards the associated service. In this context, there is a need to study these aspects of the customer services and its impact on the satisfaction level.
RESEARCH METHODOLOGY:-
The research methodology really helpful for the researcher to discover methods, approaches, techniques and problems related to research. It also helps to researcher to solve critical issues
related to research. This study of research is based on the qualitative research assumptions; the researcher has utilized primary data collected through well designed structured questionnaire &
secondary data collected from various secondary resources where potential data is available from past studies and published journals in the context of, impact of online purchasing on customer satisfaction. The sample taken for the study is about 280 respondents in pune city by using convenience sampling technique
In the context of this research study, researcher utilized descriptive research design to get better result of research. Descriptive research design contains, different facts, finding surveys, characteristics and detailed study related to the topic of research including Ex post facto research where researcher has no control over the variable and market, he just observing what is happening or what has happened. This research design gives strength to research and given optimistic result.
Hypothesis:-
1) Prices of online products has positive impact on the satisfaction level of customer 2) Variety of online products has positive impact on the satisfaction level of customer 3) Safety and security services during online purchasing has positive impact on the
customer’s satisfaction RESULTS & DISCUSSION:- Hypothesis: - 1
Ho:- Prices of online products has negative impact on the satisfaction level of customer Ha:- Prices of online product has positive impact on the satisfaction level of customer.
Table :-1 Chi-Square Test
Observed Value
Expected Value
Chi Square Chi Square Table Value
Degree of Freedom Chi Square Calculated Value
220 140 45.71
3.841 1 91.42
60 140 45.71
Interpretation:-
From the above table no.1, as chi square calculated value i.e. 91.42 is greater than chi square tabulated value i.e. 3.84 at 5% level of significance and 1 degrees of freedom, there exist statistically significant difference between yes and no. Therefore researcher can conclude that, Prices of online products has positive impact on the satisfaction level of customer and hence null hypothesis (Ho) is rejected.
Hypothesis:- 2
Ho:- Variety of online products has negative impact on the satisfaction level of customer Ha:- Variety of online products has positive impact on the satisfaction level of customer
Table :-2 Chi-Square Test
Observed Value
Expected Value
Chi Square Chi Square Table Value
Degree of Freedom Chi Square Calculated Value
80 70 1.429
7.814 3 42.129
105 70 17.5
65 70 0.35
30 70 22.85
Interpretation:-
From the above table no.2, as chi square calculated value i.e. 42.129 is greater than chi square tabulated value i.e. 7.814 at 5% level of significance and 3 degrees of freedom, Therefore researcher can conclude that, variety of online products has positive impact on the satisfaction level of customer and hence null hypothesis (Ho) is rejected.
Hypothesis:- 3
Ho:- Safety and security services during online purchasing has negative impact on the customer’s satisfaction
Ha:- Safety and security services during online purchasing has positive impact on the customer’s satisfaction
Table No:-3 Chi-Square Test
Observed Value
Expected Value
Chi Square Chi Square Table Value
Degree of Freedom Chi Square Calculated Value
100 70 12.85
7.814 3 26.40
55 70 3.21
45 70 8.92
80 70 1.42
Interpretation:-
From the above table no 3, as chi square calculated value i.e. 26.40 is greater than chi square tabulated value i.e. 7.814 at 5% level of significance and 3 degrees of freedom, Therefore researcher can conclude that, variety of online products has positive impact on the satisfaction level of customer and hence null hypothesis (Ho) is rejected.
CONCLUSION:-
Marketer has a challenge to understand customer’s demands and needs for online selling.
Especially to identify and understand the consumer’s behavior and attitudes towards online shopping, they also trying to find out factors which impact on consumers to shop online and making improvements in those factors which affect on consumers to shop online will help marketers to get the competitive advantage over others competitors.
In conclusion, providing access to online shopping through different online platform has truly revolutionized and impact on our society. This rapid use of technology has created new opportunities for a more convenient lifestyle. Lower prices of the products, Availability of huge varieties of products and Quick and quality services are three significant ways through which online shopping impact on people from all over the world. However, privacy conflicts and frauds may be arises due to this concept of online shopping. Unfortunately, it has shown that it is possibility for criminals to access personal information and manipulate data in the system. But in today’s world, safety measures are being taken in order to stop criminals and hackers from accessing private databases with the help of latest features of technology. Through privacy and safety and security policies and privacy policies online platform designers and website designers are doing their best to put efforts to stop these unethical practices. By doing so, society will continue to trust and depend on online shopping, which will remain a tremendous success in the future.
LIMITATIONS & FUTURE STUDIES:
Limitations: -
The study is confined to limited geographical area in pune where most of the data collected is secondary data which is not easily available. Literature of study also has a limited material available from different secondary sources. Primary data also collected from few customers who are not easily available and they are reluctant to give the information related to topic, hence there may be possibility that, primary data may be bias. There is also lack of financial resources and other resources especially collecting primary data during conducting research on online purchasing and its impact on customer satisfaction.
Scope of Future Study:-
There are number of concepts and theories taken in to consideration at the time of study this research. There is a huge scope for further research of online shopping like each product category where number of customers are using products frequently and satisfied their needs, wants and demands. There is a also scope to create and study customer database as well as study customer buying pattern and their buying behavior especially in case of online shopping. There is also futuristic scope to study comparative analysis of different online platform. It is also to be done to create broader picture regarding online purchasing with respect to different online firms, online platforms and online websites and it plays very important role in the development of online businesses.
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