Why People Are Satisfied Using E - Commerce

Why People are Satisfied Using E-Commerce

Abstract

At present, globalization is becoming stronger by the day due to the advancement of technology in areas such as communication and Internet. There are lots of established businesses that have their distribution and sales channels online.

E-commerce is one of the business types that benefits from this advancement.

The volume of e-commerce transaction worldwide is growing every year.  

For a business to run successfully, it is not only their products and services they need to focus on. Studies have shown E-service quality is a significant factor to long-term business profitability.

The factors that affect Customer Satisfaction are E-Service Quality (E-S-QUAL), E-Recover Service Quality (E-RECS-QUAL) and Website Service Quality (W-S-QUAL).

This paper will provide the comprehensive dimensions used in the scales to measure the level of E-service quality.  At the end, high E-service quality will determine the satisfaction of customers of E-Commerce Websites.

1.1 Introduction

Quality is one of the most important and complex components of business strategy. It is also one of the central elements of this research. In order to compete in a changing market companies must improve their quality and innovativeness.

This research will discuss factors (E- service quality) surrounding satisfaction of E-commerce consumers.

According to MARKETLINE, Thailand online retail sector grew by 15.4% in 2015 to reach a value of $1,822.3 million and this value continues to increase annually. There is growth in the acceptance of online commerce in Thailand (Marketline, 2015). Citing from indexmundi.com Thailand literacy rate is high because at age 15, most Thais can read and write and this factor has contributed to the growth of ecommerce. Thailand now ranks second in Southeast Asia in terms of E -commerce transaction value and market size. Electronics and electrical segment has been the most lucrative sector with a total revenue of $838.7 million in 2015 which equates to 46% of the sectors overall value followed by the apparel, luggage and leather goods segment with total revenues of $347.1 million.(MarketLine, 2016).

What is E-commerce?

E-commerce (Electronic commerce) is the marketing, purchasing and selling of products and services over the Internet. It covers the entire transaction spectrum of online products and services from start to finish.

E-commerce is one of the determining growth factors of online business.

It can be divided into the following categories:

• Online Marketing
• Online Advertising
• Online Sales
• Product Delivery
• Product Service
• Online Billing
• Online Payments (Techopedia)

1.2 Statement of Problems

E-commerce provides an easy way to sell products to a large customer base. However, there is a lot of competition amongst multiple e-commerce sites. When users search on an e-commerce website, they expect to find what they are looking for quickly and easily. Also, users are not sure about the brands or the actual products they want to purchase. They have a very broad idea about what they want to buy. Many customers nowadays search for their products on Google rather than visiting specific e-commerce sites. They believe that Google will take them to the e-commerce sites that will have the products.

1.3 Research Objectives

The objective of the research is to show how people are satisfied buying products online and that customer satisfaction is related to E-service quality and its four components, which are:

1. Compensation

2. Responsiveness and Fulfilment

3. Website Operation

4. Reliability (Zemblyte, 2015)

As earlier research shows there has been a significant increase in the use of e-commerce for buying products, from total sales of $ 1,153.5 million in 2011 to 1,822. Million in the year 2015 which is a total of 12.1% growth in 5 years (MarketLine, 2016).

1.4 Scope of Research

A quantitative survey will be conducted and the sample criteria that will be chosen are the people who use e-commerce websites in Bangkok. The aim of the research is to conclude that people are satisfied using E-commerce in Bangkok.

The usage and satisfaction of E-commerce website outside Bangkok is beyond the scope of this study.

The research style will be non-probability and purposive.

1.5 Benefit of Research

The business of E-commerce has been growing yet lacks relevant data regarding what aspects of E-commerce website attracts and satisfies consumers.

This study will in turn help the E-commerce businesses to strategize, design their websites as consumer’s preference and gain an edge over competitors.

2.1 Related theory of factors

All the independent variables and dependent variable.

Definition of the theory.

-The theoretical background of the research is based on [Zeithaml, Parasuraman & Malhotra (2000, 2002)].These authors suggested the e-service quality model.

-The e-SERVQUAL model have three separate scales E-S-QUAL & E-Recs-QUAL & W-S-QUAL that is used for measuring e-service quality.

1.E-S-QUAL 
5 contents (security, reliability, fulfilment, efficient and attentions)

Security:  Security remains a very critical successful factor for e-commerce. Digital signature ensures the authenticity of the information. A digital signature is a e-signature authentic authenticated through encryption and password. Security Certificates − Security certificate is unique digital id used to verify identity of an individual website or user.

Reliability: Monitor all of your key elements such as your product page, your contact form or your home page. Be directly alerted (email, SMS, push notifications) when your website is down! Increase your sales and provide the best shopping experience to your customers with a fast and reliable ecommerce site!

...