THE ROLE OF E-COMMERCE IN IMPROVING CUSTOMER SATISFACTION


THE ROLE OF E-COMMERCE IN IMPROVING CUSTOMER SATISFACTION (A CASE STUDY OF JUMIA)

ABSTRACT

This study was intended to evaluate role of e- commerce in improving customer satisfaction. This study was guided by the following objectives; To appraise the nature of e- commerce business services, To appraise customer satisfaction and factors determining customer satisfaction, To determine the role of e-commerce in improving customer satisfaction, To determine the JUMAI e-commerce services in improving customer satisfaction

The study employed the survey research design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the correlation statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 200 students across different departments of Lagos State University, Lagos who shop online using JUMIA e-commerce portal. The study findings revealed that E-commerce products/services of JUMIA have significant impact on customer satisfaction. E-commerce security feature of JUMIA has significant impact on customer satisfaction. E-commerce user interface of JUMIA have significant impact on customer satisfaction.

The study shall provide a conceptual and theoretical appraisal of the nature of e-commerce.

CHAPTER   ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The use of e-commerce websites can lead to accepting and satisfying intentions and then influence customer satisfaction behavior towards an e-commerce websiteCustomer satisfaction is how satisfied a customer is with the supplied product/service. It is closely related to interpersonal trust [Geyskens, Steenkamp, Scheer, and Kumar 1996].  

[Zins 2001],stated, it is expected that a higher level of customer satisfaction will lead to greater loyalty. However, the impact of satisfaction on customer loyalty is rather complex. Fisher [2001] believes that customer satisfaction accounts for only part of why people change product or service providers. Other studies have shown that customer satisfaction is a leading factor in determining loyalty [Anderson and Lehmann 1994]. Anderson and Srinivasan [2003] found that both trust and perceived value, as developed by the company, significantly accentuate the impact of satisfaction on e-Journal of Electronic Commerce Research, VOL 12, NO 1, 2011 Page 81commerce loyalty. In a more recent study by Cyr [2008] it was found that website satisfaction is strongly related to loyalty in three countries: Canada, Germany, and China. 

Generally, loyalty has been defined as the repeat purchasing frequency or the relative volume of same-brand purchasing. Oliver [1997] defines customer loyalty as a deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same brand or same brand set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior. In e-commerce, loyal customers are considered extremely valuable. Today, e-retailers are seeking information on how to build customer loyalty. Loyal customers not only require more information themselves, but they serve as an information source for other customers. Building customer loyalty is one of the biggest challenges for business to customer e-commerce. Several antecedents of customer loyalty have been proposed. Customer satisfaction and trust have been brought forward as a precondition for patronage behavior [Pavlou 2003] and the development of long-term customer relationships [Papadopoulou, Andreou, Kanellis, and Martakos 2001]. 

The study by Kassim and Ismail [2009] found that services quality and vendor’s assurance to online customers, contribute to building trust and satisfaction thereby improving customer loyalty. These study shall therefore determine the role of e-commerce in improving customer service.

1.2 STATEMENT OF THE PROBLEM

Success stories are few but often told. Unfortunately, just as rapidly as new dot-com companies and e-commerce Web sites are created, many of these new ventures fail. Even the once assumed-mighty e-businesses are losing money by the millions. Why? The reason is that many businesses fail to understand the nature of this new but powerful tool of selling. They must learn to live and compete in a world where location is less important and the consumer is setting used to 24-hour service. Customers want to do business online according to their own schedules. Many unsuccessful online businesses fail to satisfy their customers because the expectation of the online customers is often higher and may even be different from that those of using traditional marketing. Marketing in the world of the Internet, therefore, presents new challenges to businesses and marketers world-wide. Building long-term customer relationships through customer satisfaction is one of the crucial keys to a successful business. An organization exists to satisfy customer wants and needs while meeting the organizational objectives of increased sales and higher profit. Marketers have to understand the concept of and accept the Internet as a marketing tool. With the introduction of the Internet, marketers have the technology to mass customize communication and products and yet be able to increasingly target smaller marketing segment: taken to its natural extension, a target market can now be one person

Creating customer satisfaction is pivotal to enhance customer loyalty and repeat patronage which is dependent on a number of factors. This research will confrontthe above problems listed by investigating the role of e-commerce in improving customer satisfaction, with a case study of JUMAI.

1.3 RESEARCH QUESTION

1. What is the nature of e-commerce?

2. Whatis customer satisfaction and what factors determine customer satisfactionin e-commerce?

3. What is the role of e-commerce In improving customer satisfaction?

4. How does JUMAI e-commerce improve customer satisfaction?

1.4 OBJECTIVE OF THE STUDY

1. To appraise the nature of e- commerce business services

2. To appraise customer satisfaction and factors determining customer satisfaction

3. To determine the role of e-commerce in improving customer satisfaction

4. To determine the JUMAI e-commerce services in improving customer satisfaction

1.5 SIGNIFICANCE OF THE STUDY

1      The study shall provide a conceptual and theoretical appraisal of the nature of e-commerce.

2 The study shall determine the role of e-commerce in improving customer satisfaction.

3 The study shall provide information on e-commerce to organizations, IT professionals,and Business managers.

1.6          STATEMENT OF HYPOTHESIS

1H0 E-commerce product/service of JUMAI does not have significant impact on customer satisfaction

H1 E-commerce product/service of JUMAI has significant impact on customer satisfaction

2    H0      E-commerce security feature of JUMAI does not have significant impact on customer satisfaction

H1E-commerce  security feature of JUMAI have significant impact on customer satisfaction

3  H0 E-commerce user interface of JUMAI  does not have significant impact on customer satisfaction

HI  E-commerce user interface of JUMAI have significant impact on customer satisfaction

1.7        SCOPE OF THE STUDY

The study focuses on the role of e-commerce in improving customer service. It provides a conceptual and theoretical appraisal of the nature of e-commerceand the factors which determine customer satisfaction in e-commerce.

LIMITATION of study

1. Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

2. Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

E-COMMERCE: E-commerce is a short term for electronic commerce,it consistof trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, E-commerce, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail.

Customer:a person who buys goods or services from a shop or business.

Customer satisfaction:is a marketing term that measures how products or services supplied by a company meet or surpass a customer's expectation.

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THE ROLE OF E-COMMERCE IN IMPROVING CUSTOMER SATISFACTION



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