A STUDY OF THE INFLUENCE IN E-SHOPPING BY

CUSTOMER SATISFACTION

C. F. (Connie) Hsu and Y. A. (Andreas) Hsu

Department of International Business and Trade, Shu-Te University, Kaohsiung, Taiwan

Advantech Europe Holding BV, Son, The Netherlands

Keywords: Customer Satisfaction; E-shopping, Business to Customer.

Abstract: Online customer satisfaction is an influential key to reach the purpose. The development of E-commerce

brings the new economic type; it is unable to increase more company value and higher customer satisfaction

by the tradition customer relationship management. Hence, understanding what customers consider the most

importance help establish a suitable e-business model, new to be systematic, the new method or the new

mechanism which can intense also in the fast changing market subdues in e-competition. E-commerce

management depends on the different strategy adopted by environments and enterprises overall transport

business goal. This research aims at understanding how customer satisfaction influences B2C, interactions

between customers and the medium; through customer data analysis to know the consumer behaviour

pattern. By advantages of this draws up the role of customer satisfaction, it help B2C implementation, and

promotes the customer cognition value, and then increase the enterprise profit.

1 INTRODUCTION

Smith and Merchant (2001) indicated that web

Shopping is popular widely by customers.

Customers expect e-commerce providing an

escalated expectation on service and online

technological support when they shop. By

customers’ visiting websites, it creates a gateway for

enterprises to push customers’ transactions

implement online and become repeat customers

more importantly. Customer service applications in

e-commerce are more important than in actual sales

according to the service is not provided face to face

with customers. (Robbins and Stylianou, 2003) In

this research, customer satisfaction in B2C directs to

web shopping experiences which customers have

over the Internet. E-commerce increases more

channels of better quality and faster than before on

information which gives customers access to more

knowledge. Through e-commerce access, customers

can get the information-rich on products or the

information; this function provides competitors can

identify, match and improve product innovation

what customers like the best. An essential attribute

of B2C is to respond and accommodate customers’

request speedily, and help them on purchase

decisions; this creates an extra value for assisting in

promoting the degree of customer satisfaction.

The factor significantly affecting customer

satisfaction is to increase options and solutions

available to customers and to offer more available

information in B2C environment. However, all

potential internet users are potential customers in e-

commerce. In order to have these potential

customers and convert them into an actual behavior

on purchase depends on effective customer

relationship management. (Caruana et al., 2000)

Thus, customer satisfaction certainly can help win

more customers and positively contribute on

effectiveness of customer relationship management

and promote and the volume of transactions in B2C.

Customers always expect the service with high-

speed, friendless and high quality especially web

customers who want to have more choices,

convenience, and a responsive service with a private

touch. Accordingly, online experience direct affects

on the difference of customer satisfaction, for

example, easy search of products, provision of

product specifications reducing communication

costs, secure electronic payment systems to

complete transactions, updated product delivery

214

F. (Connie) Hsu C. and A. (Andreas) Hsu Y. (2007).

A STUDY OF THE INFLUENCE IN E-SHOPPING BY CUSTOMER SATISFACTION.

In Proceedings of the Third International Conference on Web Information Systems and Technologies - Society, e-Business and e-Government /

e-Learning, pages 214-220

DOI: 10.5220/0001266302140220

 SciTePress

information and quick responses. Turban et al.

(2002) indicated that any web shopping experience

will direct or indirect influence on customers’

behaviour on purchase decisions.

A customer relationship is the ticket to win a

successful business, which depends on maintaining

effective customer satisfaction. It help increase

customer satisfaction is by information availability

which is integrated to improve the possibility of

continuing a profitable relationship between

enterprises and online customers. Hence, a high

customer satisfaction is essential to attract customers

to re-purchase when their online experience with a

high degree of concern regarding security and

privacy of information. The acquisition of e-

customers is difficult and expensive. It is through

evaluating customers’ online experience for setting

up the standard of criterion for determined on the

degree of customer satisfaction. Higher satisfaction

reduces on switching costs on customers. Because

only few studies about how consumers perceive and

evaluate customer satisfaction in e-commerce.

(Murphy, 2001). Therefore, this research reports the

contributions customer satisfaction in B2C via

online purchase experience by service providing

enterprises.

2 CUSTOMER SATISFACTION

AND B2C

Satisfaction is a comparative process. Cardozo

(1965) brought that the first concept of customer

satisfaction which pushes customers’ behaviors on

re-purchase or purchase more other products.

Customer satisfaction is compared perceptions

between purchase performance and beforehand

expectancy on customers’ actual experience.

Because customers purchase on value and their

perception of value acts a decisive role in the

performance. Nevertheless, customer satisfaction is

connected how the performance achieving

expectations. When the performance does not stand

with expectations, customers are dissatisfied.

Customers make feedback about satisfaction

reflecting on the confirmation level in the expected

and actual service performance. As well, the degree

is changed when experience result is disconfirmation

between performance and expectancy. The

customers judge the satisfaction by their satisfied

attitude which formed with the after-using

experience on products or services. Fornell et al.

(1996) emphasized that customer satisfaction is

according to the comparison with beforehand

expectancy about products or services. Hence,

customer satisfaction is considered as an emotional

reflection by customers’ subjective perception.

Furthermore, customer satisfaction covers

expectancy disconfirmation and interest perspective.

First, expectancy disconfirmation is the process to

evaluate customer satisfaction including expectancy

disconfirmation, customer expectation and product

performance. Second, interest perspective focuses on

service quality and disconfirmation perspective to

understand the difference on customer satisfaction.

(Caruana, et al. 2000) Moreover, customer

satisfaction is a subjective perception. Yi (1990)

expressed that consequence of customer satisfaction

is resulted from past consumption experience and

enterprises take competitive advantages through the

analysis the different perception between enterprises

and customers.

Customer satisfaction is an emotional reflection

which affects customers on the evaluation about

service quality and the re-purchase willing on post-

purchase, so that customer satisfaction is result on

the quality evaluation between beforehand

expectancy and afterward performance. (Bolton and

Drew, 1991) Customer satisfaction is based on

levels of satisfied expectation which judged by

customer’s attitudes when experiencing on products

and services and customer’s attitudes affect their

purchase willing through the results of satisfaction

or dissatisfaction. Parasurman et al. (1993) indicated

that customer expectation theory explains customer

service expectation is a critical element to reach

customer satisfaction. Therefore, to determine the

degrees of customer satisfaction attributes the level

of actual perceptive service to meet customers’

expectation. Four sources of perceptive service are

tangible service promise, intangible service promise,

public praise and past-purchasing experience.

Besides, Customer satisfaction evaluates the

consistence of the pre-purchase and post using on

products and services by customers.

Zeithaml et al. (1996) emphasized that customer

satisfaction work affectively for purchasing

experience and service quality shows an important

relationship with the consumer behavior. Ruyter et

al. (1997) demonstrated that service quality is a very

important element affecting level difference on

customer satisfaction. Therefore, Customer

satisfaction is the conceptualized difference between

expectation function and actuality function.

Customers are satisfied due to if the expectation is

satisfied or not. Caruana et al. (2000) highlighted

that disconfirmation paradigm theory separates

customer satisfaction into four steps, construct,

performance, disconfirmation and satisfaction.

A STUDY OF THE INFLUENCE IN E-SHOPPING BY CUSTOMER SATISFACTION

215

Hence, customer satisfaction is the perceptive

evaluation between beforehand performance and

afterward expectancy. Hence, customer satisfaction

is an outcome about the comparison between

performance and expectancy on customers’ emotion

and perception. Therefore, customer satisfaction is

affected by two main reasons, performance and

expectancy. (Worzala and McCarthy, 2002) E-

commerce is a new business method between

customers and enterprises, but there are few

researches and literature studies on customer

satisfaction which is supported on B2C. Through e-

commerce, enterprises can reduce the operation

costs. Enterprises connect customers with internet

access, which increases the range of visibility what

offering from enterprises, reduce operational costs,

integrate many internal and external business

processes, and promote customers’ ability more

speedily to get the information they need.

As well, Kaefer and Bendoly (2004) indicated

that an improved customer satisfaction helps

enterprises achieve high level of efficiency and

integration through their business-to-customer

(B2C) e-commerce processes. Nevertheless, speed is

another important element affecting on B2C. Speedy

responsiveness expresses that enterprise’s response

to online customers; reliability responsiveness could

increase the customers’ confidence in enterprises

through timely delivery of ordered goods, accurate

information and correct links. A safety online

transaction could enlarge the offering on customer’s

assurance to improve the level of customer

satisfaction (Riel et al., 2001; Eng, 2004). E-

commerce support some functions for online

customer on shopping behavior. There are eight

steps on the process of e-commerce. They are: 1)

product search; 2) comparison shopping; 3) product

selection; 4) negotiation of terms; 5) placement of

orders; 6) payment authorization; 7) receipt of

product; and 8) after-sales customer support

(Kalakota and Whinston, 1997).

The experience during any of these steps all

affect on the level difference of customer

satisfaction. Some other factors in e-commerce

should not be neglected such as homepage

presentation, product characteristics, information

characteristics, technological characteristics, and

logistical support that all may influence on

customers’ perceptions of satisfaction. For example,

homepage presentation is the first contact with

customers, so it should be easy to use interface and

detailed information about products and product

characteristics offer the details of a variety of

products or services made available at lower prices.

As well, information factors should be reliable and

provide the secure transaction; technological factors

supply network facilities and well-structured

information systems and logistical support gives a

quickly delivering product to customers including

after-sales service. Hence, B2C creates a new

shopping model by internet access from the

traditional transaction business and it also provides

different shopping chances and models for

customers (Ho and Wu, 1999). To summarize the

literature analysis at customer satisfaction and e-

commerce, easy search, speed response, secure

transaction, and guarantee are the main four

components to influence customers’ perception

most. This research aims at these four components to

research and comprehend the role of customer

satisfaction in B2C.

3 HYPOTHESES AND METHOD

OF MEASUREMENT

Through the view of the literature study above, the

following hypotheses were formulated due to the

purpose of this research is to explore the role of

customer satisfaction in e-commerce in Taiwan to

guide the research:

H1: Experience is positively related to

customer satisfaction in e-commerce.

H2: Customer perception (orientation) is

positively related to customer satisfaction in e-

commerce.

Through those four components, easy search,

speed response, secure transaction, and assurance,

what kind of the role of customer satisfaction plays

in B2C and how they interact on different attributes

which are valued or would be valued and

characteristics provoked. This paper is constructed

Constant each search, speed response secure

transcription and e-payment system and assurance

and trust as the variables used which were identified

from the literature review in this research. The

questionnaire survey was designed primarily to

concentrate on customer satisfaction, customer

perception and customer experiences of B2C. The

variables had been built in previous research as

being important for online customers.

So, the questions were grounded on customer

satisfaction, and expectations according to the

online perceptions of B2C, and variations of overall

customer satisfaction. Likert-type scales (based on a

“1” to “9” rating) were used to measure all

variables in this research and all survey questions

requiring ratings were answered anonymously via

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internet access. Bennington and Cummane (1998a)

explained this methodology qualitative data was

collected using a conspicuous process followed by

affinity diagramming. Respondents are qualified

with e-shopping experience during the previous

three months; 64 % of online shoppers had had

shopping online between one to two times, even

nearly two-fifth had had more than five times

during the period. The ratio of respondents was 67

% to 33 % on male to female and 25-45 age group

was main online customers. 278 surveys were

administrated totally, of which 162 proved usable

(58.27%).

4 FINDINGS

H1 and H2 is tested by a multiple regression analysis

between customer satisfaction and each independent

variable (easy search, quick response, secure

transaction, and guarantee,) in B2C and the

outcomes of the simple regression tests highlighted

the strong evidences to support H1 and H2. This

research also found that the valuable differences

between customer satisfaction levels with online

experience and e-shopping environment was

statistically significant (t = 28.62, df = 129, p=0.000)

The range of average responses across the variables

was 4.4 to 6.9 on the 10-point scale. The highest

average rating located at “secure transaction” and

“easy search” was for the lowest rating. Moreover,

customers responded their feeling on the most

improvements in secure access were recorded once

they had shopped (x¯ = 8.2). This paper displayed

that a secure transaction is the most considerable

condition of expectations influencing customer

satisfaction when they shop online. Through the

analysis of variance, (F = 0.887, df = 7,982, p =

0.446) there is not a significant to reveal the

influence on age that is considered as n important

factor in the satisfaction ratings of online shoppers

in respect to e-commerce. As well, all values and

indentations were employed and then the qualitative

data including values and indentation integrated and

reduced in number using practically the same

consumer affinity diagramming process used.

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5 RESEARCH DISCUSSION

The comprehensive acceptation of customers in B2C

proves that to increase customer satisfaction is a

prerequisite. Some researches indicated that there

have been relatively on perceived online experience

as the prerequisite for customer satisfaction. This

research found that through B2C application,

satisfaction provides not only more comprehensive

understanding about customer’s perceptions but also

the importance of internet access. The importance of

perceived experience has been highlighted to

improve customer satisfaction in e-commerce access

in this research. Hence, this demonstrates that to

improve customers’ perception on customer

satisfaction via perceived experience when

customers experience online is the new challenges of

enterprises for B2C. Customers consider customer

satisfaction important and value consistency of

benefit of e-commerce highly, so a better experience

in e-commerce is certainty promoted on customer

satisfaction.

Moreover, a significant influence is the process

of the B2C affecting on customers’ perception of

satisfaction. This displays that the perceived

experience of online customers have more

satisfaction than the more traditional transactions.

Through data analysis in this research, this paper

found that there are values and indentation providing

mirror images of each other which provide insights

for improvement efforts. Values are 1) competitive

and lower price, 2) transparent and enough

information, 3) 24 hours trading operation, 4)

standard, qualified shopping process and service

quality, and 5) privacy and shopping environment.

In addition, indentations are lack of actual shopping

atmosphere, unable to own immediately, easily

intercepted or fabricates on personal information

access, and confidence of security sense on

transaction. These indentations create more space for

improving customer satisfaction. The finding

displays that perceived experiences demonstrate an

important role on customer satisfaction in B2C.

Perceived experience is resulted to assist customers

since making a purchase such as aiding product

search, speedily answer customer queries, easy

access and completion of transactions, privacy of

data transmitted, and guarantee of security providing

etc.

However, no statistical analysis on data was

carried out, but it is indicated by the findings

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217

discussed above which following e-services act an

important role in B2C.

1. Easy search: Findings of this research

indicated that a versatile online service

supplies customer to search for products with

no space and time limit for example, be able to

link with information access 24 hours a day,

seven days a week. The information access

includes providing the online catalogues

covering product description and prices,

comparable similar products, after-sales

support, payment methods and opinions of

some valued users of the product etc. Through

easy search system, customers can find

products, whatever they want by a keyword on

various search engines. Customers enjoy

complete-information provided with a depth

and breadth of products during the search

process. B2C outcomes a practical and

extensive application to integrate with all

different functions those customers desired to

access information search or shopping. Easy

search system provides the integrated

information for customer demands and to

classify the associated information to customer

interests rather than inundating them with

extraneous information. Therefore, an easy

search web-system supports that customer find

information and products and also elevates

experience perception on increase of

satisfaction.

2. Secure transaction: Secure transaction plays

as an essential significant in the Findings of

this research. Customers do not to believe in

online transaction; they worry about betraying

intercepting or embezzling secrets such as

personal data and this risk may put them into a

cheating transaction. A secure transaction has

not only a secure data access but also a secure

e-payment system that customers no need to

suspect on using their private data such as

personal details, credit card number, or ID

number online. E-transaction was done on

standard forms with allocated spaces for

numeric and alphanumeric characters avoiding

wrongly read and printed figures, further

enhancing assurance. Therefore, it is gives the

confidence to customer for helping on further

improved customer satisfaction by an inerrant

order received online compared to handwritten

ones received via fax or mails assured

accuracy. With a secure transaction, customers

are encouraged to be back for visiting the sites

and it also helps push up the perception on

customer satisfaction. Credit card e-payment

system is the most popular method in e-

commerce now, so secure transaction becomes

the most important which customer consider

with. Moreover, it is the essential in e-

commerce through different e-payment

methods with the speed of processing

payments and for accuracy of transaction

information. Therefore, a secure transaction

abets customer satisfaction increased.

3. Guarantee: The findings of this research

indicated that guarantee includes assurance

and trust, the confidence from that enterprises

provide to customers. In this research, the

present findings show that assurance and trust

is significant on customer satisfaction.

According e-shopping is a transaction without

face to face, customers usually not feel

confident if the deal is a cheating transaction

or not. The outcome of this research

emphasized that many potential customers

discard online transactions because of security

reason. Hence, a secure transaction and

transmission of information become to an

important element attracting customers to join

the deals with enough guarantee to customers

for establishing the consumer confidence to

lift customer satisfaction up. Having a better

relationship with customers is also stressed the

importance on developing future business by

assurance and trust. Enterprises must let

customers understand that their personal data

is absolutely not available to the third person

once having the e-transaction in B2C. Most

customers consider that the most important

condition for online is a security transaction

which directly or indirectly affects on

perceived experience and turn to the level

difference of customer satisfaction. Through

findings analysis, four values were found in

this research. First, the cost price is lower.

Because through internet access, the price is

more transparent; customers can take the

lowest price to take after the transparent.

Second, expense information is more.

Transparent information provides customers

more details about products, price, services,

and even more time to consider about

purchasing or not. As well, customers also can

gain enough information for similar products

which help them to find out the most suitable

products. That is why e-customers come back

to shop online again and again. Third, e-

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commerce operates a 24 hours transaction

marketplace. Customers can shop whenever,

whatever, or wherever they want. Moreover, e-

commerce always comes with a stable service

quality. The standard service can basically get

rid of human factor that avoids the risk of bad

service providing from staffs. Fourth, e-

commerce is the most privacy shopping

environment. Customers are more comfortable

when doing a transaction in e-commerce.

Consumer's right of privacy obtains the

safeguard which most arrives. Moreover, in

this research, the findings also indicated some

indentations. First, B2C is lack of actual

shopping atmosphere. Customers usually like

to touch, smell even taste before buying.

Actual touch transforms customers form Waits

and sees to purchase behavior. The atmosphere

also can cheer up customers on purchase

behavior like a shopping rush. Furthermore,

customers can not receive the products

immediately after ordering. Because B2C is

another kind of mail-order, customers have to

wait few days or few weeks for products

delivery. The waiting has stimulated

customers’ shopping desire online. Finally,

customers are lack of security sense for e-

shopping. Customers are not confident on

security because personal data must expose

once they shop online before receiving

products. Moreover, personal data access is

easily intercepted or fabricates. Internet access

does not provide 100% guarantee security on

e-transaction, so that an e-transaction

guarantee is essential to improve on customer

satisfaction.

4. Quick response: No special significant shows

that customer consider with the importance in

quick response. The outcome may explain

customers are more patient for waiting

responses. Therefore, it is usually help

customer satisfaction lift up, once response is

replied quickly via e-mails or automated

responses are greatly appreciated for customer

questions, order acknowledgement, delivery

and payment problems. Thus, it also displays

quick responses direct or indirect affect on

relationship difference between the enterprises

and customers in B2C and this complements

the chips of the traditional transactions.

6 CONCLUSIONS

The research result indicates that customer

satisfaction help the e-commerce development to

extend the market share. In Taiwanese B2C

environment, customers are more confident to have

an online transaction according to customer

satisfaction increasing. In Taiwanese B2C, therefore,

to develop and implement customer satisfaction

must be considered as an important marketing

strategy. Consumer’s behavior has been changed by

a new type shopping access, B2C e-commerce.

Through the new and special characteristic of B2C

in Taiwanese environment, to increase the level of

customer satisfaction is an essential key because

B2C e-commerce provides a security and private

purchase environment.

Moreover, this research displays that assurance

and trust, these two conditions give a guarantee once

customer doing the purchase online which can

promote customer satisfaction. Furthermore, the best

way to elevate customer satisfaction is to have an

easy search system, to answer queries quickly, to

provide the assure trust and secure transactions in

assisting customers during the search process,

comparisons shopping and completes shopping. So,

more positive online experiences of customers will

push the level of customer satisfaction up in

Taiwanese in B2C. Increasing the level of customer

satisfaction is the access to create the best effeteness

of Taiwanese B2C.

This research proposes the recommendations as

the references for enterprises. The recommendations

are (1) to design easy use web pages for search

products and provide more interacted information

such as similar products information for

comparisons; a special product is also important to

be announce on websites. (2) A secure transaction

must be improved and improved (3) Marketing

strategy should focus on attracting and maintaining

customers and an irregularly scheduled promotion

must be held. Hence, the high customer satisfaction

attracts more customers to experience with

Taiwanese B2C, and than a successful business is

going to be resulted.

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