A STUDY ON CUSTOMER SATISFACTION ON ONLINE PURCHASING
Reg. No: 14MG20119
Online shopping has become new type of retail shopping. When you buy a product or a service over the internet, instead of going to a traditional brick-and-mortar store, it is called online shopping. It has now been adopted all over the world including India. This shopping method is still not as well known or accepted as in many other countries. As the knowledge of online shopping in India is increasing rapidly the scope of online shopping is wider now. The huge success of online selling brought out new secured wallet payment option also. At the very least, a website can help your customers find you, providing contact details and showcasing your work. But the marketing opportunities that the internet presents go much wider and deeper than this. We can tell visitors about our product or service and promote special offers. We can improve customer service by giving useful information and enabling customers to offer feedback. 1billion Internet users in 30 aspiring countries— half of the global tally of Internet users 120 million Internet users in India: the third largest user base in the world 34 10 Across seven aspiring countries1 the average number of Internet users for every 100 people is compared to in India 7 1 The average number of fixed broadband subscribers for every 100 people across the seven aspiring countries is compared to in India 1 Our illustrative subset of seven of the “aspiring” countries, i.e., Argentina, Brazil, China, Malaysia, the Philippines, South Africa, and Vietnam. 1.9% 3.4% average contribution of the Internet to GDP across all aspiring countries, versus in developed countries 1.6% $30billion contribution of the Internet to India's GDP, amounting to $12billion $9billion average estimated consumer surplus associated with Internet usage across the seven aspiring countries, versus in India 28 Mbps 6 Mbps Average international bandwidth capacity for every 10,000 people across the seven aspiring countries is versus in India. It has been often discussed how the rapid deployment of mobile infrastructure and the plummeting costs of connectivity and smartphones are leading to “mobile only” internet usage in developing countries. The Internet and Mobile Association of India estimates that as of June 2015, there will be 354 million internet users in India, 213 million of which will be mobile users
With the increase internet literacy, the prospect of online purchasing or marketing in India is increasing day by day. This Study focuses on the satisfaction level of customers in Kerala, time perspective quality of the product and discount factors etc. are some of the factors which come under the satisfaction on online purchasing.
It has a significant influence on the quality and level of the standard of living .The act of purchasing or services over the internet, online shopping has grown in popularity in years, mainly because people find it convenient and easy to bargain and shop from the comfort of their home or office ..Internet shopping is easier, safer and more convenient than at any point in its history. Online purchasing is great because people are able to shop 24 hours a day without having to leave their home or work.
Internet Purchasing is secure using encryption and ssl techniques. Note that blocking all cookies prevents some online services from working; so you must allow cookies on your browser .The more people shop online, the bigger their expectations. The supermarket industry now services many customers through online foods shopping over the internet.
All types of stores have retail web sites, including those that do and do not also have physical storefronts and paper catalogs. Online purchasing is a type of electronic commerce used for business-to –business (B2B) and Business- to – Consumers (B2C) transactions.Now day's customers can purchase through their smart phones having access to internet that is shopping from anywhere.
Review Of literature
• Vyas and Sriniwas[ 2002] in their paper stated that majority of internet users where having positive attitude towards online buying of product, services. There exist a need for developing awareness about consumer's rights and cyber laws. They also emphasized on better distribution system for online products.
• Alam and Yasin  reported that website design,reliability, product variety and delivery performance are the four key factors influencing co9nsumerss satisfaction of online shopping.
Statement of the problem
This project has been undertaken to study about the strategies of online marketing. This study tries the impact of customers' attitude and awareness towards online marketing, and on what foundation a potential customer decides to join the mainstream of online marketing, and which factors. Cast influence on his or her decision of buying.
To measure the satisfaction level of customers on online purchasing.
Source of data:
The study is conducted in Bangalore. Primary and secondary data are used. The primary data was collected with the help of a questionnaire and the secondary data was collected through magazines and internet.
• Sampling technique used here is convenience sampling through the use of questionnaire.
• Responses on various measures used in the study were obtained on a five point scale-Strongly agree (5), Agree (4), Neutral (3), Disagree (4), Strongly Disagree (5).
• The collected data was analyzed using statistical tools like arithmetic mean, one sample t test.
The sample of respondents was carefully selected covering people in age group between 20 to 25 above.
The sample size will be 30.
ANALYSIS AND FINDINGS
• Ho: The level of satisfaction of Customer regarding online purchasing is equal to average.
1. The study is limited to Kottayam District hence it may not give accurate results.
2. The data was collected from a semi urban area the result may differ according to urban basis.
Attributes of Customer Satisfaction
The study made use of 12 attributes which helps to measure the customer satisfaction of online purchasing the list of attributes and its descriptive are given in table 3
Table 1: Attributes of customer satisfaction
Attributes of Customer Satisfaction Item Acronym Mean
1. Price of products are costlier than traditional market CS1 4.90
2. Payment procedure is secured CS2 4.70
3. Payment procedure is convenient CS3 3.37
4. Ordered products and supplied products are different CS4 4.60
5. Quality of product purchase through online is unquestionable CS5 2.93
6. Delivery on time CS6 3.30
7. Cost of delivery is reasonable CS7 3.67
8. Wide varieties of products are available CS8 3.13
9. Desired products are available CS9 3.17
10. Online shopping saves time and money CS10 4.10
11. After sales services are satisfactory CS11 2.93
12 Packaging of product is satisfactory CS12 3.83
Over All Customer Satisfaction CS 3.45
Source: Compiled by researcher
From the above table it can be found that CS 1 and CS 2 Have the highest mean score 4.90 and 4.70 which shows customers are satisfied in the attributes such as price and payment modes of online purchasing. The overall mean for customer satisfaction is 3.45.
The mean score of customer satisfaction is compared with first quartile, second quartile (Q2) and the third quartile is arrived at by the using the formula ‘(5 +1)/2', (5 + 1) *1/3 and (5 + 1) *3/4 respectively. Thereafter the mean score is calculated and compared with the second quartile and the interpretation is made accordingly. The following table shows the criteria for comparing mean score and second quartile in case of Customer satisfaction:
Criteria for comparing sample mean and central value in case of customer satisfaction
Sample mean value Customer satisfaction
Below 2 Not at all satisfied
Above 2 but significantly below 3 Not satisfied
In the neighborhood of 3 Neutral
Significantly above 3 but below 4 Satisfied
Above 4 Highly satisfied
Source: compiled by the researcher
Comparisons of mean value and second quartile
Sample mean value Central value Overall response about Customer satisfaction
3.45 (above 3but below 4) 3 Satisfactory
Source: compiled by the researcher
From the table 5, it is clear that the mean score of the responses with respect to the Customer satisfaction is 3.45. This is significantly above than 3 (Q2) but below 4, Therefore the overall response of the customers regarding the online purchase is satisfactory.
H0:The level of satisfaction of Customer regarding online purchasing is equal to average.
Ha :The level of satisfaction of Customer regarding online purchasing is not equal to average
The statistical test one sample –t test is used here.
Variable Sample size Mean Standard deviation T- Value P- Value
Overall financial literacy 30 3.452 .350
**denotes significant at 1% level.
Source: compiled by the researcher
Since P- value is less than 0.01 the null hypothesis (H0) is rejected at 1% level of significance. Hence it is concluded that the customer satisfaction of the online purchasing customers is not equal to average. Based on the mean score of 3.452 it can be concluded that customer satisfaction is above the average level.
The study made use of 12 attributes which helps to measure the customer satisfaction of online purchasing of which (CS 1)Price of products are costlier than traditional market and (CS 2)Payment procedure is secured has the highest mean score which shows customers are satisfied in the attributes such as price and payment modes of online purchasing.
• The mean score of the responses with respect to the Customer satisfaction is 3.45. This is significantly above than 3 (Q2) but below 4, Therefore the overall response of the customers regarding the online purchase is satisfactory.
• Based on the mean score of 3.452 and the hypothesis testing (one sample t- test) it can be concluded that customer satisfaction is above the average level.
On the basis of the present study concludes that online customers are satisfied. This research explicitly indicates that online marketer should give more importance on price factor and after sale factor. In this competition era all the online marketers should have to concentrate on the customer's satisfaction to retain the existing customers and have to offer new scheme day by day to attract the new customers.
1. Ahn, T., Ryu, S., Han, I. (2004). The Impact of the Online and Offline Features on the User Acceptance of Internet Shopping Mall. Electronic Commerce Researchand Applications, 3 (4), 405-420.
2. FayuZheng (2006). Internet shopping and its impact on consumer behavior. M.Sc. Thesis, the University of Nottingham. | 3. I.M.
3. Mc Kinsey, December (2012) Online and upcoming: The Internet's impact on India.
4. Elad Natanson (2015) India's mobile commerce revolution
Customer Satisfaction of online Purchasing
Age :Below 20 20-22 23-25 Above 25
Gender: Male Female
Sl. No. Attributes of Customer Satisfaction Strongly Agree Agree Neutral Disagree Strongly disagree
1. Price of products are costlier than traditional market 5 4 3 2 1
2. Payment procedure is secured 5 4 3 2 1
3. Payment procedure is convenient 5 4 3 2 1
4. Ordered products and supplied products are different 5 4 3 2 1
5. Quality of product purchase through online is unquestionable 5 4 3 2 1
6. Delivery on time 5 4 3 2 1
7. Cost of delivery is reasonable 5 4 3 2 1
8. Wide varieties of products are available 5 4 3 2 1
9. Desired products are available 5 4 3 2 1
10. Online shopping saves time and money 5 4 3 2 1
11. After sales services are satisfactory 5 4 3 2 1
12 Packaging of product is satisfactory 5 4 3 2 1
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