Expectations Of A Product Or Service

Published Date: 02 Nov 2017

Introduction

Customer satisfaction is the degree to which customer expectations of a product or service are met or exceeded. It is seen as a key performance indicator within business. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

In the era of globalization electronic marketing is a great revolution. Over the last decade maximum business organizations are running with technological change. Online shopping or marketing is the use of technology for better marketing performance. And retailers are devising strategies to meet the demand of online shoppers; they are busy in studying consumer behavior in the field of online shopping, to see the consumer attitudes towards online shopping. Therefore we have also decided to study the factors that affect MMU students’ satisfaction of their online shopping provider.

Research Background

Online shopping is basically a process of selling and buying of goods and services on World Wide Web. As (Forsythe and Shi, 2003) explains" Internet shopping has become the fastest-growing use of the Internet; most online consumers, however, use information gathered online to make purchases off-line".

According to a report (ACNielsen Report on Global Consumer Attitudes towards Online Shopping, 2005) published on www.acnielsen.com, one tenth of the world population is shopping online , till October 2005, 627 million people have done online shopping , and according to the same report Germans and British are on the top of the list on Online Shopping. Additionally in the report published, it was confirmed that products most purchased online included books followed by DVDs, video’s, games and Plane Reservations, with credit cards being the most sought method of payments for the purchases made regarding the items offered for purchase online.

So many countries all over the world pour millions of dollars into online shopping as a means to purchase goods and services through the internet. The improving use of the internet has provided for fast purchase of online services as this is evident in the rapid growing internet usage activity all over Europe, with Sweden being ranked one of the high heels in Internet Usage and online Shopping in Europe coming in ninth with Japan and USA following in close competition (ACNielsen Report on Global Consumer Attitudes towards Online Shopping, 2005).

During 1994, Netscape introduced SSL encryption method for data transformation online through the web, which became so important for secure online shopping. The first online shopping system was introduced by a German Company called Intershop in 1994. Follow by Amazon in 1995 and eBay in 1996.

Online shopping has been getting famous since the last few years after the internet was being widely used. It began to appeal to a larger number of consumers as it gradually evolved to serve and satisfy millions of people from all over the world. Consequently, e-commerce industry has seen rapid growth.

An online consumer or online seller must at least have one electronic gadget to access to the internet. Online banking system had been launched before the era of online shopping. Therefore, online banking system made online shopping much convenient. Hence, payment can be made in several forms such as cheques, debit card, electronic money or various types, cash deposit using ATM machine, gift cards and etc.

Problem Statement

The online retail industry is going the new era of competition. These online shopping provider need to differentiate themselves from others and present it well to become the one of the market leader in online retails industry. Competition has become more aggressive among these companies, therefore it is important for companies to figure out the factors that affects MMU students’ satisfaction towards their online shopping providers.

Research Objective

The purpose of this research is to analyze and identify the overall attitude towards online shopping and the key factors that influences MMU students’ satisfaction of their online shopping providers.

Significance of Study

The online retail is undergoing dramatic changes. This study will provide insights of the factors that affect the MMU students’ satisfaction of their online shopping provider. In other words it will indicate the consumer behavior in the competitive market. This research can contribute to the society and country.

The result of this research will be beneficial for the online shopping provider to serve as a guideline in implementing their business strategy. With the information, the online shopping providers will be able to design packages that are satisfying consumers. They can also improve their company performance as well as to maintain their market share. This research is important because it can outline what are the factors that are affecting the MMU students’ satisfaction of their online shopping provider.

Also, this research able to provides the factors that cause the satisfaction level. When online shopping provider understand what is the wants and needs of the consumer. Thus, it helps to reduce their cost in research and development. By then, online shopping provider can focus to increase their product features or quality that serves to the consumers.

Through this study, online shopping provider can focus on what is the best business quality and services to consumers in order to maintain their life long relationship to create maximum life time value to the company itself.

Before taking any actions to change the satisfaction level, the most crucial thing is to understand what factors influence customer satisfaction, and then try to make improvements in these critical areas so that they can have more satisfied and loyal customers.

Scope of the Study

This research is particularly interested in investigating customer satisfaction level. This paper is tending to find out what are the factors that affecting MMU students’ satisfaction of online shopping provider through this study. All respondents are assumed to have online shopping knowledge. There are many factors that cause the different satisfaction level of their online shopping provider.

1.7 Operational Definition

1.7.1 Online Shopping

Online shopping or online retailing is a form of electronic commerce allowing consumers to directly buy goods or services from a seller over the Internet without an intermediary service. An online shop, e-shop, e-store, Internet shop, web-shop, web-store, online store, or virtual store extorts the analogy of purchasing goods or services at a retails stores or shopping center.

1.7.2 Convenience

Online retail store are support the available for 24 hour 7days a week. This is a means by retailers and wholesalers to provide customers with a very convenient way to be able to do all the shopping from one spot or by just a mouse click.

1.7.3 User friendly web features and designs

Online web stores need to be user friendly and easy to navigate, these being very vital influencing factors of online shopping website designs, privacy or confidentiality, website reliability, navigation, and website customer services incorporated with the website security are the most attractive features which influence the perception of consumers to buy goods and services online.

1.7.4 Time Saving

With the rapid development of the World Wide Web online shopping has come to be the most sought means to purchase goods and services at the convenience for the customers as it saves time whereby being an important influencing factor towards online shopping. Browsing through the internet or searching through online catalogues can be time saving as one needs not to move from place to place and less effort is put into shopping, thus less effort is required and only patience becomes vital during the shopping process.

1.7.5 Security

Security issues which is involved in keeping the information safe and accurate.

1.8 Organizational of Research

These research papers are categories into five chapters.

Chapter 1: Introduction

In this chapter is all about the overall question and the relevant topic are being carried out for discussion. There are includes the objectives and the problem statement of this study. Besides that, the explanations of who is gaining benefits from this study are included. However, to prevent the confusion and misunderstanding of the reader those important terms are clearly defined.

Chapter 2: Literature Review

In this chapter cite those relevant studies related to this research. The dependent and independent variables will then be identified and use as a basis to build the theoretical framework and hypotheses development. In the other hand the arguments and opinions from different authors are add in for the purpose to support the study carry out.

Chapter 3: Research Methodology

In this chapter the theoretical framework and hypothesis of study will be stated. Theoretical framework shows the relationship between variables. Next, by identify the relationship those testable hypotheses are formed based .Moreover all these hypothesis are been use to examine whether the framework is in effect by using appropriate statistical analysis. The research instrument, sample size, source of data and the statistical data to be used in the study are discussed.

Chapter 4: Research Findings and Discussion

This chapter will present the results and discussion based on the data analyzed.

Chapter 5: Conclusion

In this chapter we will review the entire research from the introduction, the main details and the justification on the hypothesis constructed in the study and well as a brief look into the findings obtained from the hypothesis. The limitation and implication of the study will also be presented.

Chapter 2 : Literature Review

2.1 Overview

There are few causes that influencing the customer satisfaction from their online shopping provider due to the changing preferences and satisfaction toward the demand and services provided .However the literature review of the factors will be discussed as below.

2.2 Dependent Variable

2.2.1 Customer Satisfaction

According to Churchill and Surprenant (1982), customer satisfaction is an output that resulting from the customer expected performance with perceived actual performance and incurred cost before doing the purchase.

Customer satisfaction is very much different from the customer loyalty. Customer satisfaction refers to a requirement to do business while customer loyalty is the basis for sustained profitability and growth.

A satisfied customer will lead to their loyalty and have great revenue in return.

Customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in higher quantities and bring you even more customers. If the customer is satisfied with the firm’s products or services, it will help the company to enhance its customer loyalty. In other words, high customer satisfaction lead to high customer loyalty while low customer satisfaction lead to low customer loyalty.

Customer satisfaction is a measure of expectations being exceeded, met, or not met. Besides, the firm wanted to know whether the firm is meeting or exceeding customer expectations when thinking of customer satisfaction measurement. 

The marketing literature suggests that customer satisfaction operates in two different ways: transaction-specific and general-overall (Yi, 1991). Transaction-specific concept concerns customer satisfaction as the assessment made after a specific purchase occasion.

Besides, it may also provide specific diagnostic information about a particular product or service encounter. General-overall satisfaction refers to the customer’s rating of the brand, based on all encounters and experiences (Johnson and Fornell, 1991).

It can be viewed as a function of all previous transaction-specific satisfactions (Jones and Suh, 2000). Overall satisfaction is a more fundamental indicator of the firm’s past, current and future performance (Anderson et al., 1994). This is because customers make repurchase evaluations and decision based on their purchase and consumption experience to date, not just on a particular transaction or episode (Johnson et al., 2001, p.219). Many other studies have shown that customer satisfaction positively affected loyalty.

2.3 Independent Variables

2.3.1 Convenience

Convenience factor refers that it is easy to browse or search the information through online is easier than the traditional retail shopping. Consumer spends their time when make purchase from shop to shop, therefore this will be an investment or a cost to them. Online shopping helps to save a lot of time and effort on searching the products or service they want. The time spent plays a very important role in consumer perceptions especially the time used for shopping.

Bitner, 1990; Taylor, 1994 have pointed out that waiting created a negative impact on customer service satisfaction. The consumers will have bad impression to the seller or company if they always keep them waiting and let their time to be wasted.

Time and energy saving are in the same concept (Brown, 1990). Time and effort play an important role because these two factors might affect consumers’ convenience during shopping. Online shopping definitely can help consumers to save time and effort in purchasing process by bringing a lot of convenience.

Through online, the consumers able to search their desired products or services from different online seller. This will save a lot of efforts & time compare to look for the product in a traditional store manually.

Darian (1987) mentioned that online shoppers carry multiple benefits in terms of convenience, such as less time consuming, flexibility, very less physical effort etc. Bhatnagar and Ghose (2004) claims that convenience as one of the most important advantage for engaging in online shopping. According to the Robinson, Riley, Rettie and Wilsonz (2007) the major motivation for online purchasing is convince in terms of shop at any time and having bundles of items delivered at door step.

Webcheck’s (1999) study shows that convenience factor is one of the biggest advantages of online shopping. Through online purchase consumers can easily compare the price than the traditional purchase. So price comparison is also another convenience factor of online shopping.

2.3.2 Website Design/Features

Web site design of a web page is one of the most important factors that influence online shopping. Shergill and Chen, (2005) identified web site design characteristics as the dominant factor which influences customer satisfaction towards online purchasing.

The quality of website design is very important for any online store to attract customers. Cho and Park (2001) have found in their study that customer satisfaction in e-commerce is related to the quality of website design. According to Ranganathan and Grandon (2002), website design represents the way in which the content is arranged in the website.

According to Wolfinbarger and Gilly (2003), when the customers deal with an online store, they will prefer to do so via a technical interface and not through any employee. Therefore the design of the website, it would play an important role in influencing customer satisfaction. A website design will influence overall customer satisfaction and perceived service quality.

According to Kamariah and Salwani (2005), they claimed that when the quality of a website is higher, the customer will have more intention to shop from internet. Web design quality has important impacts on consumer choice of electronic stores, stated by Liang and Lai (2000).

Website design one of the important factor motivating consumers for online shopping. Almost 100,000 on-line shoppers been surveyed and the results shows that web site design was rated as important factor for online shopping.

Another study indicated that website design features of the website are important and influencing factors that leads consumer’s satisfaction and dissatisfaction with a specific website (Zhang, Dran, Small, and Barcellos (1999, 2000), and Zhang and Dran (2000)).

There is a significant relationship between online shopping and website features, stated by Yasmin and Nik (2010). When the website is equipped with interactive features that can guide the customers lead to a successful transaction, this will attract the customers to revisit the website again.

2.3.3 Time Saving

According to Rohm and Swaminathan’s (2004), online shopping saves time when the customer making the purchase and it can eliminate their traveling time required to go to the traditional store. On the other side, some respondent think that it is also time taken for delivery of goods or services over online shopping.

To most consumers important attributes of online shopping are convenience and accessibility (Wolfinbarger and Gilly, 2001), the consumers able to surf online in the comfort of their home environment. Besides, it will save times and effort when they are able to shop at any of their convenient time.

Especially for consumers that, owing to their extended working hours, only have a small amount of free time, online shopping is an excellent opportunity. Thus, the situational factor "time pressure" has an attenuating impact on the relationship between attitude and consumers’ intention to shop online. Internet is accessible 24 hours and this become the main factor for online shopping.

Unexpectedly time saving is not the motivating factor for the consumers to shop online (Corbett, 2001) because it takes time receiving goods or delivery. But time saving factor can be seen through different dimensions i.e. "person living in Florida can shop at Harod’s in London (through the web) in less time than it takes to visit the local Burdines department store" (Alba et al. 1997, p. 41,emphasis added).

Morganosky and Cude (2000) have concluded that time saving factor was reported to be primary reason among those consumers who have already experienced the online grocery buying. The importance of the time saving factor cannot be neglected as motivation behind online purchasing.

2.3.4 Security

Many customers try to avoid online shopping because some issues such as credit card fraud, privacy factors, non delivery risk, post purchase service and so on. Therefore, security has become another factor which affects the consumers to make the online shopping. The trust can be enhanced through asafe and secured transaction and credit card information.

According to Bhatnagar and Ghose (2004), security is one of the factors which limits the customers to do online shopping as their thinking about the security of their sensitive information.

Cuneyt and Gautam (2004) claims trust in the internet shopping with advanced technology, and frequent online shopping to the internet being secured as a trustworthy shopping channel.

Chapter 3: Research Methodology

This chapter includes the research framework which identifies and helps explain the steps taken in investigating the research done. Discussion in this section will cover the research design and procedure, variables and measurement, data collection method, questionnaire design and data analysis. The research instruments, sampling process and data analysis techniques also will be discussed in this chapter.

3.1 Theoretical Framework

Below is the theoretical framework for the research paper. The dependent and independent variables are clearly identified. The customer satisfaction is the dependent variable; the convenience, website design and features, time saving and security are been use for independent variables part.

Convenience

Customer Satisfaction toward online shopping provider

Website design/features

Time Saving

Security

The dependent variable been analyzed for the purpose to get know the solution causes problem occurs. However, both variables are link either positive or negative relationship with each others.

3.2 Hypothesis Development

Hypothesis is the sate used by marketing researcher about the population parameter (Burns and Bush 2005), using prior knowledge, assumptions or intuition to form an exact specification of what the population parameter value is. Once the variables have been identified, the independent and dependent variables are then established through logical reasoning in the theoretical framework. Then the next step is to examine the relationship formed and find out whether the facts are actually accurate.

In Figure 2 are clearly explain the relationship between dependent variable and independent variable that influence the perception of consumer select online shopping provider .Moreover , based on the literature review and the theoretical framework ,the hypothesis are been formed

H1: There is an association between convenience and customer satisfaction of their online shopping provider

H2: There is an association between the website design/features and customer satisfaction of their online shopping provider

H3: There is an association between time saving and customer satisfaction of their online shopping provider

H4: There is an association between security and customer satisfaction of their online shopping provider

3.3 Research Design

The questionnaire design is categorized in few choices. Students from MMU will be selected as our sample of study. Questionnaires are given to respondents via online and also in hardcopy form. All the respondents are given 15 minutes to fill in the questionnaires. After this, students start collecting the data based on the questionnaires.

3.4 Research Instrument

In this study questionnaire method are been chooses as a tool for the purpose of collect the data.

3.5 Sampling method

Questionnaire development is a rather important element in this research yet there are many limitation of setting the questions. Hence, questionnaire developed must be clear and avoid ambiguous questions

As questionnaire need to appear in a reasonable sequence that could convinced the respondent and also increasingly gives the respondent confidence and trust in both the survey and the surveyor. Hence, questionnaire development process will start by identifying the related information used to develop the question such as the independent variable that had been identify in the earlier stage of the research process. After that, it proceed by choosing the best out of the questions, so that this questionnaire can directly targeted towards the respondent’s behavior and perceptions of being a telecommunication users.

The questionnaire is designed to draw out information on respondents’ demographic, their experience in using mobile hand phones, their daily average expenditures, and their awareness with various available mobile phone services. The questionnaire is divided into two sections which is section A and section B. Section A measures the demographic variables and personal information towards their choosing behavior whereas, section B measures about the independent variables differently. The methods using for each section are discussed as below:

A) Multiple Choice Questions: In section A, the respondent’s personal basic background and perception toward the online shopping was appearing in this section. It consists of the respondents’ demography such as ethnicity, gender, race, age and usage of online shopping.

B) Likert Scale: Section B consists of questions concerned with the dependent variables towards online in the research model such as convenience, website design/features, time saving, and security. The measurement of this research is based on Likert scale which ranging from "1" to "5." Researchers Perez, Abad, Carrilo and Fernandez (2007) found that the Likert scale to be effective in their research on the "Effects of Service Quality Dimensions on Behavioral Purchase Intentions".

Below is the rating scale format from strongly disagree to strongly agree:

1

2

3

4

5

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

3.6 Data collection method

Questionnaire

3.5.1 Primary Data

The data been collected by using questionnaire method which is distributed to students in Multimedia University Melaka campus and the questionnaire is divided into two parts; part A and part B. For part A of the questionnaire is focuses on the demographic background of the respondents For part B the questionnaire consists of certain questions all divided according to the relevant independent variables. Next , all the potential relevance variable are been covered in this survey questionnaire .In order to get better understanding 5 point scale are been applied in this questionnaire form to get know clearly what the respondent actual think about their personal preferences toward online shopping and to help to reduces the hesitation for the answer may be chooses by respondents

This data is used as foundation reading materials to strengthen the understanding the topic research. The secondary data for this paper included journals, books, and article been chooses to provided a lot of insight for the creation of the literature review. In addition, secondary data provided for added credibility to the paper.

Research Population and Sample

The MMU Melaka students will be represent the population for this research, there will be 200 questionnaire form are filled for the students in campus area of MMU .Those respondents are covered the students in all fields of education background offered by MMU Melaka who have been gone through the online shopping before . Also, the questionnaire was structured in such a way to ensure that the research objective and hypothesis of this research can be achieve .

3.7 Data analysis method

Once the all the 200 completed questionnaires are gathered, the data analysis will be done according to the dissertation. Thus, all the data collected from respondents will be analyzed based on descriptive statistical analysis by using the SPSS software so as to obtain a more statistical analysis of the study. One of the strong points of SPSS is that it can perform almost any statistical analysis (Huizing 1994).

Basic tests that were used in the beginning of analysis were checking for the central tendency and the dispersion of data. The mean, standard deviation, range and variance was used. There were preliminary tests done for all the sections.

Descriptive Analysis: the information obtained for the frequency distribution was from the first section of the questionnaire on the demography; here a frequency table was used to explain it, with mean and standard deviation for some of the data being computed. This was done for the independent, moderator and dependent variables. The statistics obtained are useful for describing the data, for example. In a study with large data, the summary statistics for the scale variables and measures of the data helps us to manage the data and present it in a summary table. For instance in a cricket match, player records are stored and compared with records of another player.

Reliability Analysis:  a measurement is reliable if it reflects mostly true score, relative to the error. The reliability of the scales is analyzed by using Cronbachs Alpha. An alpha above 0.70 is considered as reasonably reliable while an alpha scale above 0.80 is regarded as being perfect.

Spearman rank order correlation: measures the strength of association between ranked variable, whether the hypothesized variables are associates with customer satisfaction.

Multiple regression analysis: It is used to analyze a single dependent variable with two or more independent variables to test which variables is the most important lead to customer satisfaction in their mobile service provider.

CHAPTER 4: DATA ANALYSIS AND FINDING

4.1 Introduction

The chapter is divided into three different parts which are descriptive analysis, reliability analysis and results of hypothesis testing.

This chapter entails the detailed analysis of variables and also data which were distributed and gathered from the MMU students. Of all 200 questionnaires that were distributed, 200 copies of the completed survey were collected. All 200 surveys form were evaluated and screened for any imperfect or missing data. After checking through the questionnaires for uncompleted as well as unanswered questionnaires, 200 of them were found to be utilizable for the purpose of this research. Data is then analyzed and tabulated for simplicity and easy understanding of the research.

4.2 Descriptive Analysis

In this analysis, frequency analysis will be carried out to analyze the demographic aspects in the questionnaires. The 200 survey forms are measured demographically with regards to:

Gender of respondents

Age group of respondents

Nationality of respondents

Ethnicity of respondents

Faculty of respondents

Current year of respondents

Respondents do online shopping or not

Experience of online shopping towards respondents

Amount of expense on online shopping towards respondents

Amount of shopping hours on online shopping in a week towards respondents

4.2.1 DEMOGRAPHIC

GENDER

Table 4.2.1: Gender

Gender

Frequency

Percentage (%)

Male

92

46.0

Female

108

54.0

TOTAL

200

100.0

As shown in Table 4.2.1, there are male and female respondents who took part in this survey. Female respondents exceed those of male respondents. 92 responses were by male which accounted 46% of the total respondents. Female on the other hand consist of 108 responses and accounted for 54% of the total respondents.

AGE GROUP

Table 4.2.2: Age

Age Group

Frequency

Percentage (%)

Below 20 years old

18

9.0

20 - 22 years old

130

65.0

23 - 25 years old

51

25.0

Above 25 years old

1

0.5

TOTAL

200

100.0

The table 4.2.2 shows the various ages group of respondents who contributed to the survey. The age group of 20 - 22 shows the highest number of respondents which are 130 respondents which accounts for 65% of total respondents. 18 respondents have been identified for the age group of below 20 years old, which accounted 9%. Meanwhile, the age group of above 25 years old has 1 respondent which makes up for 0.5%. Those in the 20 - 22 age groups recorded the highest number because they are young. These young people are more connect to technology era. Those who are 25 and above show the least percentage of only 0.5% of total respondents. Therefore, it shows that nowadays, there are an increasing number of young people who are able to explore more about telecommunication technology than other age group.

NATIONALITY

Table 4.2.3: Nationality

Nationality

Frequency

Percentage (%)

Malaysian

191

95.5

Non-Malaysian

9

4.5

TOTAL

200

100.0

Out of 200 respondents, there are 191 Malaysian which accounts 95.5% took part in this survey meanwhile there is only 9 Non-Malaysian, which is 4.5%.

ETHNICITY

Table 4.2.4: Ethnicity

Ethnicity

Frequency

Percentage (%)

Chinese

138

69.0

Malay

29

14.5

Indian

25

12.5

Others

8

4.0

TOTAL

200

100.0

From the table 4.2.4 above, Chinese respondents are the highest at 69%. Next were Malay which is 14.5% and Indian which is 12.5%. Lastly, 4% indicate other races.

FACULTY

Table 4.2.5: Faculty

Faculty

Frequency

Percentage (%)

FOSEE

20

10.0

FBL

114

57.0

FET

38

19.0

FIST

10

5.0

CDP

18

9.0

TOTAL

200

100.0

This table 4.2.5 illustrates the faculty which taken by those respondents. The majority of the respondents are come from FBL, with a total 114 people (57%). This is followed by those come from FET with a total amount of 38 people (19%). 20 people (10%) come from FOSEE. There are 18 respondents (9%) respectively for those who come from CDP. However, there are only 10 people (5%) who come from FIST.

CURRENT YEAR

Table 4.2.6: Current Year

Current Year

Frequency

Percentage (%)

Foundation

15

7.5

Beta

39

19.5

Gamma

66

33.0

Delta

79

39.5

Epsilon

1

0.5

Total

200

100.0

Table 4.2.6 presents the current year of respondents. Most of the respondents are grouped in Delta year with a total of 79 people. The second highest total is 66 people which are Gamma year. This is followed by 39 people who is Beta year and 15 people who is Foundation year. Epsilon year is the lowest number of respondent which is 1 people only.

ONLINE SHOPPING 1

Table 4.2.7: Online Shopping 1

Online Shopping 1

Frequency

Percentage (%)

Yes

158

79.0

No

42

21.0

Total

200

100.0

The table 4.2.7 indicate that the number of respondents who involved in online shopping and also those who never try online shopping before. Most of the respondents do online shopping with a total of 158 people (79%). Total 42 people (21%) never do online shopping.

EXPERIENCE OF ONLINE SHOPPING

Table 4.2.8: Experience of Online Shopping

Experience of Online Shopping

Frequency

Percentage (%)

Less than 1 year

115

57.5

1-5 years

72

36.0

6-10 years

12

6.0

10 years and above

1

0.5

Total

200

100.0

Total 115 people who account for 57.5% that have experience in online shopping which less than 1 year. Follow by 72 people who account for 36% that have experience in online shopping for 1 – 5 years. The next will be 12 people who account for 6% that have experience in online shopping for 6 – 10 years. The least will be 1 people who account for 0.5% that have experience in online shopping for 10 years and above.

EXPENSES ON ONLINE SHOPPING

Table 4.2.9: Expenses on Online Shopping

Expenses on Online Shopping

Frequency

Percentage (%)

Less than RM100

92

46.0

RM100-RM200

66

33.0

RM300-RM400

25

12.5

RM400 and above

17

8.5

Total

200

100

Total 92 people are having less than RM100 of expenses on online shopping. The next is 66 people, which in the category of RM100-RM200. Follow by 25 people, which involved in the category of RM300-RM400. The last will be 17 people. They are spending RM400 and above on online shopping.

ONLINE SHOPPING HOURS IN A WEEK

Table 4.2.10: Online Shopping Hours in a Week

Shopping Hours

Frequency

Percentage (%)

Less than 1 hour

69

34.5

1-2 hours

60

30.0

3-4 hours

39

19.5

5-6 hours

19

9.5

More than 6 hours

13

6.5

Total

200

100.0

There are 69 respondents (34.5%) who spend less than 1 hour in online shopping in a week while there are 60 respondents (30%) who spend 1 – 2 hours in online shopping in a week. The next is 39 respondents (19.5%) who spend 3 – 4 hours in online shopping in a week. Follow by 19 respondents (9.5%) who spend 5 – 6 hours in online shopping in a week. The least will be 13 respondents (6.5%) who spend more than 6 hours in online shopping in a week.

4.3 Reliability Analysis

Throughout the test, we found out that our results are very reliable.

Table 4.3.1

Reliability Analysis

Cronbach Alpha

Customer Satisfaction

0.777

Convenience

0.845

Website / Features

0.845

Time Saving

0.817

Security

0.859

The following part discusses on the descriptive analysis of the dependent and independent variables.

4.3.2 Satisfaction level

Table 4.3.2: Descriptive Analysis for Satisfaction Level

Mean

Standard Deviation

Convenience

3.4087

0.81989

Website / Features

3.7120

0.71274

Time Saving

3.5650

0.77596

Security

3.4463

0.80820

Cronbach’s Alpha 0.801 for N(5)

Table 4.3.2 shows that the results of descriptive analysis for Satisfaction Level of the respondents’ online shopping provider. The mean for the first item where convenience can affect the satisfaction level of respondents indicate the average respondents scored a total of 3.41. The mean of the second item where website / features may affect the satisfaction level of respondents’ rate scored a mean of 3.71. The third item where time saving will create the satisfaction scored a mean of 3.57. The fourth item where security can affect the satisfaction level scored a mean of 3.45.

4.4 Hypothesis Testing

In Section 4.5, the normality test has decided using Spearman’s Rho to test MMU students’ Satisfaction, Convenience, Website/Features, Time Saving and Security. The spearman Rho analysis was carried out on the five variables in the research framework to determine their respective association. Analysis was taken to ascertain the correlation between the consumer perception and the independent variables (convenience, website/features, time saving and security) to ascertain their respective statistical correlation and association with the dependent variable.

4.4.1 Spearmans’ rho Correlation

All the five hypotheses are tested using Spearman’s correlation. The results are discussed below.

H1: There is an association between convenience and customer satisfaction of their online shopping provider

Convenience

Spearman’s rho

Customer Satisfaction

Correlation Coefficient

0.633

Sig. (2-tailed)

0.000

N

200

Table 4.4.1: Association between convenience and MMU students’ satisfaction of their online shopping provider

The result showed there is an association between convenience and MMU students’ satisfaction of their online shopping provider. The results show correlation coefficient, r value =0.633 and p-value =0.00. There is a positive and significant association between the dependent and independent variables. Hence, H1 is accepted. This result is in line with the study done by Shih and Fang (2004), who mentioned that peers influence, friends opinions, family, colleagues and refinance groups affect the individuals purchase decisions and intentions.

H2: There is an association between the website design/features and MMU students’ satisfaction of their online shopping provider

Table 4.4.2: Association between the website/features and MMU students’ satisfaction of their online shopping provider

Website / Features

Spearman’s rho

Customer Satisfaction

Correlation Coefficient

0.403

Sig. (2-tailed)

0.00

N

200

The result in Table 4.4.2 showed that there is an association between the website/features and MMU students’ satisfaction of their online shopping provider. This is because the correlations coefficient, r value =0.403 and p value=0.000. Furthermore since the p value is below 0.05, thus, there is a positive relationship and it is significant between the dependent and independent variable. Hence, H2 is accepted.

This result shows that good website / features can deliver a high satisfaction to MMU students.

H3: There is an association between time saving and MMU student’s satisfaction of their online shopping provider

Table 4.4.3: Association between product quality and customer satisfaction of their mobile service provider

Time Saving

Spearman’s rho

Customer Satisfaction

Correlation Coefficient

0.383

Sig. (2-tailed)

0.00

N

200

The result in Table 4.4.3 showed that there is an association between the time saving and MMU students’ satisfaction of their online shopping provider. This is because the correlations coefficient, r value =0.383 and p-value =0.00. Furthermore since it is below the average value =0.05, thus, there is a positive relationship and it is significant between the dependent and independent variable. Hence, H3 is accepted.

Time saving is quite important because it is one of the factors that will affect MMU students’ satisfaction of their online shopping provider.

H4: There is an association between security and MMU students’ satisfaction of their online shopping provider

Table 4.4.4: Association between security and MMU student’s satisfaction of their online shopping provider

Security

Spearman’s rho

Customer Satisfaction

Correlation Coefficient

0.372

Sig. (2-tailed)

0.00

N

200

The result in Table 4.4.4 showed that there is an association between the security and MMU students’ satisfaction of their online shopping provider. This is because the correlations coefficient, r value =0.372 and p-value =0.00. Furthermore since the value is below average, thus, we can conclude that there is a positive relationship and it is significant between the dependent and independent variable. Hence, H4 is accepted.

A good security of the online shopping will affect MMU students’ satisfaction.

4.4.2 Regression Analysis

Table 4.4.5:

Model

R

R Square

Adjusted R Square

Standard Error Estimate

1

0.640 a

0.410

0.395

0.55920

From the table 4.4.5 above, it shows the model summary of multiple linear regression tests. R = 0.640 and standard error of the estimate = 0.55920. The R-square = 0.410 represents the variance figure for both the dependent variable and the five variables while the adjusted R square multiple coefficients (adjusted R square) clearly explains 39.5% of the variance is associated with the independent variables. In other word, it can be concluded that 41% of change in the value of customer satisfaction.

Table 4.4.6: ANOVAb

Model

Sum Of Squares

df

Mean Square

F

Significance

Regression

42.140

5

8.428

26.925

0.00ᵇ

Residual

60.665

194

0.313

Total

102.805

199

Table 4.4.6 shows the result of ANOVA test between the dependent variable (customer satisfaction) and independent variables (convenience, website/features, time saving and security). According to the table, the p-value is 0.000 (significant). Therefore, it can be concluded that there are independent variable which are significant predictors of the dependent variable.

Model

Unstandardized Coefficient

Standard

Coefficients

t

Significance

B

Standardised . Error

Beta

(constant variable)

1.560

0.235

6.635

0.000

Convenience

0.558

0.068

0.636

8.176

0.000

Website/Features

-0.086

0.094

0.085

-0.911

0.363

Time Saving

0.074

0.073

0.080

1.008

0.315

Security

-0.054

0.072

-0.060

-0.742

0.459

Table 4.4.7: Coefficients

Predictors: Convenience, Website/Features, Time Saving, Security

Dependent Variable: Satisfaction

Table 4.4.7 shows which independent variables are significant predictors of the dependent variable which is customers satisfaction. The results indicated convenience, website/features, time saving and security are significant predictors of customer satisfaction. This also means that 41% of the variation in Customer Satisfaction is explained by the 4 variables in the study (peer influence, customer service quality, and network coverage). Thus, convenience is the strongest predictor which account 0.636 in the standard coefficients and followed by website/features, 0.085.

4.5 Discussion of Findings

Based on the research, it shows that these five variables did have a significant relationship in customer satisfaction of their online shopping provider. Convenience, website/features, time saving and security all are important consideration to look into since they affect customer satisfaction.

4.6 Summary

The main objective of this study was to explore the factors that affecting the MMU students’ satisfaction of their online shopping provider. By using these implications in the creation of a theoretical and analytical framework, the researcher attempt to explore factors affects customer satisfaction.

In short, the data collected has been analyzed with different statistics method. Tables had been used in analyzing the demographics and also the personal information of the respondents.

Reliability analysis was conducted to test whether the items tested were reliable. Next is the hypothesis testing using correlation analysis is applied to test the association with the dependent variables and the independent variables. Spearman rho was applied to justify this hypothesis that being make earlier. In conclusion, it shows that the variables that the study taken into is significant to the customer satisfaction.