Analysis of Consumer Buying Behavior on Online Shopping Analysis of Consumer Buying Behavior on Online Shopping By Abdul Rehman Shafiq (22890) Ruhail Raj (21876) Institute of Business Management Submitted to Dr. Nawaz Ahmad Karachi, Pakistan 2019 Analysis of Consumer Buying Behavior on Online Shopping Acknowledgement The Methods in Business Research “MBR” course has provided us great learning experience with the help of our lecturer Sir Nawaz Ahmad. Before taking this course, we were not aware of conducting research and its implications related to evaluation of data and finding conclusions. Sir Nawaz Ahmad provided us the platform where we were able to conduct study on behavior of consumer in online shopping related to purchasing and had opportunity to learn research concepts, methodology and approach. The data collection methods ensured that for this type of research, a questionnaire would be helpful in understanding the behavior of online customers in the form of respondents who have done online purchase. For this, we conducted desk based research on literature reviews and understood the concept, methods and techniques conduced in previous studies by researchers. This course also helped us to understand the application of SPSS and we had an opportunity to test our research data on statistical application (SPSS) to identify customer satisfaction with online shopping in terms of dependent variable (Customer Satisfaction) and independent variable (Product Information, Website Design, Purchasing Process, Security Perception and Customer Service). This learning platform will surely help us in other courses in our further research studies. II Analysis of Consumer Buying Behavior on Online Shopping Letter of Transmittal 21-Dec-2019 Dr. Nawaz Ahmad, Faculty Member, Department of Research, Institution of Business Management, Respected Sir, Subject: Transmittal Letter for completion of research project We are contented for the submission of our research report “Analysis of Consumer Buying Behavior on Online Shopping”. This research has improved our practical concepts on conducting research. We have not had this type of experience before in terms of formal and procedural research. With the classes experience and the overall research project, our approach to conduct research has changed from informal to formal and we will continue applying these concepts and approach in our future research studies. We are thankful to you for your continuous support and guidance throughout this course and with high hopes; we are looking forward for your approval. Regards, Abdul Rehman Shafiq Ruhail Raj III Analysis of Consumer Buying Behavior on Online Shopping Abstract Satisfying customer has been the utmost task in today’s world for most service providers and product manufacturing companies, especially in terms of online shopping. The online shopping experience on e-commerce platforms (Daraz, Homeshopping, ishopping, shophive, yayvo etc.) for any customer is material in terms of switching cost and quality from traditional shopping. Therefore, the purpose of this research is to identify what satisfies customer while shopping online. To conduct study, a quantitative research with primary data collected in the form of questionnaire, submitted electronically to universities students and individuals working in different sectors. In this research, the impact of customer satisfaction (dependent variable) analyzed in terms of factors (independent variables) such as Product Information, Website Design, Purchasing Process, Security Perception and Customer Service. The testing conducted through multiple regression analysis based on sample of 196 customers who had online shopping experience. The study explains the buying behavior of online customer in the form of customer satisfaction and its significance with five variables. Although, the study has its limitations ranging from no. of respondents, sampling technique to variables. Moreover, this research focused on to identify the significance on customer satisfaction of five variables selected in model. The findings provided a viewpoint that product information, purchasing process, security perception and customer service were significantly associated with customer satisfaction. The results also depict that website design has no impact on customer satisfaction. Keywords: E-Commerce, Online Shopping, Customer Satisfaction. IV Analysis of Consumer Buying Behavior on Online Shopping Table of Contents Acknowledgement ......................................................................................................................... II Letter of Transmittal................................................................................................................... III Abstract ........................................................................................................................................ IV Chapter 1: Introduction ................................................................................................................ 1 1.1 Background of the study ..................................................................................................... 1 1.2 Objectives of the study ........................................................................................................ 2 1.3 Scope of study ...................................................................................................................... 2 1.4 Problem statement ............................................................................................................... 3 1.5 Research question/s ............................................................................................................. 4 Chapter 2: Literature Review ...................................................................................................... 4 2.1 Review of Literature............................................................................................................ 4 2.2 Conceptual Framework ...................................................................................................... 7 Chapter 3: Methodology ............................................................................................................... 7 3.1 Data and Variables .............................................................................................................. 7 3.1.1 Dependent Variable ...................................................................................................... 8 3.1.2 Independent Variables ................................................................................................. 8 3.2 Sample and Sampling Technique ....................................................................................... 9 3.3 Inclusion Criteria ................................................................................................................ 9 3.4 Statistical technique............................................................................................................. 9 Chapter 4: Result and Discussion .............................................................................................. 10 4.1 Demographics .................................................................................................................... 10 4.2 Reliability Analysis ............................................................................................................ 11 4.3 Descriptive Analysis .......................................................................................................... 11 4.4 Inferential Analysis ........................................................................................................... 12 4.4.1 Correlation .................................................................................................................. 12 4.4.2 Regression Analysis .................................................................................................... 13 4.5 Hypotheses Assessment Summary ................................................................................... 15 4.6 Discussion ........................................................................................................................... 15 Chapter 5: Conclusion, Limitation & Recommendation ......................................................... 16 5.1 Conclusion .......................................................................................................................... 16 5.2 Limitation ........................................................................................................................... 17 5.3 Recommendation ............................................................................................................... 17 References .................................................................................................................................... 18 V Analysis of Consumer Buying Behavior on Online Shopping 1 Chapter 1: Introduction 1.1Background of the study The E-commerce in Pakistan is in development phase and there are probable chances that it will flourish because of its lively demand. However, for developing countries like Pakistan and its growing scenario for e-commerce platforms (Daraz, Homeshopping, ishopping, shophive, yayvo etc.), here in after referred as platforms, there are concerns that can create difficulties for platforms such as technological risks in terms of cyber-thefts, website vulnerabilities and fake e-stores etc. This is the fact that where customer satisfaction plays an important role in shaping the future for platforms especially for consumers in Pakistan who are more attached towards trust. (Adnan, 2014) The E-commerce has a major role to play in the country’s economy based on its growth and development. In the early 20th century, the Ministry of Science on behalf of Pakistan Government involved IT sector in its policies for government as per national IT policy and future plans in order to create Pakistan’s IT sector like developed countries have achieved. In its action, the decrease in import duty, was the first step, on heavy IT equipment was dropped down along with incentives on tax through various schemes to IT sector were provided. This action provided internet access to around 800 cities/towns, and villages. (Ahmad, 2003) Currently, the E-commerce industry in Pakistan is estimated at PKR 99.3Bn in FY18 (PKR 51.8Bn in FY17) with 92% YoY growth. With this growth and having a population of around 208 million citizens, Pakistan offers a large untapped market for platforms as well as various institutions playing a key role in making Pakistani platforms a safer place to transact online. Not only this, the country’s broadband subscribers are about 71.71 million with almost all of them have 3G/4G subscriptions. In Pakistan, the customers have not reached to transact online in place of cash for such transactions. (Karachi Chamber of Commerce & Industry, 2019) Analysis of Consumer Buying Behavior on Online Shopping 2 1.2 Objectives of the study There are a number of studies conducted on consumer buying behavior as discussed in literature review of this report and the objective of this research is to find out: • The impact of Product Information on customer satisfaction that affects the buying behavior of an online customer. • The impact of Website Design on customer satisfaction that affects the buying behavior of an online customer. • The impact of Purchasing Process on customer satisfaction that affects the buying behavior of an online customer. • The impact of Security Protection on customer satisfaction that affects the buying behavior of an online customer. • The impact of Customer Service on customer satisfaction that affects the buying behavior of an online customer. 1.3 Scope of study There are number of customers who are switching towards online shopping and the retailers portfolio is also increasing due to change in technology and increase usage of internet. With this situation, customer visits to online platforms and ended up purchasing the product, the means have become important i.e. processes and retailers need to obtain and maintain trust with customers in order to survive in online market. This research will cover factors such as Product Information, Website Design, Purchasing Process, Security Perception and Customer Service that can directly influence customer satisfaction on online shopping. These factors create impact on retailers as customers utilize these factors in order to get their shopping done in better manner. For the platforms, it is important to analyze what are the factors that influence customers, as there are many online consumers. Therefore, the scope of the study comprises of the following: • To collected data through the questionnaire (Appendix A), which relates to factors that may have influence on satisfaction of the customers experiencing online shopping. Analysis of Consumer Buying Behavior on Online Shopping • 3 To study the impact of independent variables on customer satisfaction. 1.4 Problem statement Customers drive the sales in a market, as per (Kukar-Kinney & Scheinbaum, 2009) it realized that sales through online platforms have reached at its height but some outcomes emerged that shows a ‘purchase abandonment’ as a common phenomenon. This leads to the fact that when a customer visits the website, it does not mean that it will create an actual purchase. Sometimes, it may happen for any online retailer that customer visits the online platform and do not purchase, as in (Kearney, 2001), the study outcome related to experience of an online customer found out that around 82% of well-known internet users as online customers did not purchase any product because of the hindrances faced as evident of poor website design. Many of the retailers, as per study by (Rosen, 2004), try to reproduce the interface of their competitor rather than developing their own, to attract customers and increase the flow of sales and customer visits on their websites. The online retailers must know that it is not a web design that creates sales or increase customer flow; it is what their values reflects on their website and how much they care about the customers by developing their own reliable online platforms. The problems as discussed are not the only ones for an online customer; however, number of other factors affect the consumer buying behavior and these include the trust as one of the psychological elements. The security of customer’s personal information and service to customer after purchase are one of these reasons, the online shopping pattern is also determined. (Adnan, 2014) This research study provides an understanding of some factors that can have an impact on the purchasing pattern of the online customer. The study has enhanced the understanding related to behavior of the customer on e-commerce platforms, which has been the most crucial viewpoint in the field of online shopping, marketing, and customer behavior. Our research study signifies the following research questions: Analysis of Consumer Buying Behavior on Online Shopping 4 1.5 Research question/s • Is there any impact of Product Information on customer satisfaction when shopping online? • Is there any impact of Website Design on customer satisfaction when shopping online? • Is there any impact of Purchasing Process on customer satisfaction when shopping online? • Is there any impact of Security Perception on customer satisfaction when shopping online? • Is there any impact of Customer Service on customer satisfaction when shopping online? 1.6 Hypotheses Following are the hypotheses formulated: • H 1 – There exist no impact of Product Information on customer satisfaction. • H 2 – There exist no impact of Website Design on customer satisfaction. • H 3 – There exist no impact of Purchasing Process on customer satisfaction. • H 4 – There exist no impact of Security Perception on customer satisfaction. • H 5 – There exist no impact of Customer Service on customer satisfaction. Chapter 2: Literature Review 2.1 Review of Literature In this study, five independent variables as factors examined based on online customer satisfaction literature to study behavior of a consumer in online shopping related to purchasing. The previous studies results are complimenting each other largely. For consumers to shop online, number of factors are attached to it but online shopping provides benefit in ease of doing transactions and reflection of products at one go. Based on the factors, a study conducted by (Khedkar, 2015) on sample of 120 respondents and evaluated that customer satisfaction positively linked with website design, Analysis of Consumer Buying Behavior on Online Shopping 5 information and security. Other factors such as deliver and ease of shopping also studied and found out that both have a positive impact on customer satisfaction. As per study conducted by (Ranjbarian, 2012) on e-satisfaction, based on five factors and respondents included were internet users and online consumers pertaining to Iranian online shopping centers. The findings provided a viewpoint that customer esatisfaction influenced by four factors of merchandising, security, convenience and serviceability, however website design as a factor has not any influence on e-satisfaction and our research (Appendix B) also revealed that website design is not positively and significantly correlated to customer satisfaction despite its secondary effect on serviceability and security. With the increasing demand for online shopping due to growing of the internet, the study evaluates the impact of some factors towards customer satisfaction in online shopping based in China. The results evaluated that information quality, security, website design and service quality have positive impact on customer satisfaction based on 350 respondents. (Guo, 2012). In relation to online shopping, (Perera & Sachitra, 2019) conducted study on online consumers in Srilanka based on 380 respondents and evaluated that customer satisfaction is significantly influenced by customer service and website functionality. In relation to purchasing, a study conducted in Vietnam by (Trong, 2014) provides emphasis on three stages namely: information and evaluation, purchasing and post purchase. The findings based on a survey of 216 participants revealed that payment as an independent variable has a positive impact on customer satisfaction. Another survey conducted by (Chun-Chun Lin & Chang, 2011) shown that there is a positive relation between customer satisfaction and information based on 390 responses from undergraduate students of Taiwan’s university. This relationship has been further confirmed by the studies done by (Szymanski, 2000); (Schaupp, 2005); (Anand, 2007) (Maditinos, 2010); (Gelard, 2011); and (Evanschitzky, 2004). The customer service, information quality, security and payment system all these variables are analyzed in our research (Appendix B) and complimenting with the study Analysis of Consumer Buying Behavior on Online Shopping 6 conducted by (Maria Delarosa, 2013) which revealed that all four factors are significantly associated with customer satisfaction. As per (Adnan, 2014), the analysis of factors such as Website design emerged as insignificant variable and has not any effect on buying behavior which is matching with results as per (Appendix B). On the other hand, security issues as a variable revealed as vital in buying behavior of Pakistani consumer. A study on website design as a variable by (Rosen, 2004) suggested that website and design characteristics could create impact on a customer to revisit. The same reflected in one of studies by (Agren, 2018) based on 51 participants related to barriers in adoption of e-commerce in Pakistan, which revealed that website interface and format is one of the main problems for consumers in Pakistan. In the study conducted by (Tandon, Kiran, & Sah, 2017) based on customer satisfaction w.r.t online shopping, the results provided the information that website functionality is positively linked with customer satisfaction in online shopping behavior based on 365 respondents. Online shopping is increasing due to better internet usage and flow of customer switching from traditional shopping. This created a sense to conduct a case study on customer satisfaction reflecting a company in Iran i.e. Digikala. (IRANTAJ & HUSEYNOV, 2018)The objective was to evaluate the satisfaction of consumers for this company and based on this, six factors as a part of model considered for quantitative study. The data collected from 416 respondents based on questionnaire analyzed through multiple regression in SPSS. The study evaluated that all factors such as design of website, privacy and security, quality of information, website usability and trust have positive impact on customer satisfaction. Now due to this study online retailers in Iran can evaluate the customer satisfaction and based on that the retailers can improve their current operations to increase customer satisfaction. Analysis of Consumer Buying Behavior on Online Shopping 7 2.2 Conceptual Framework On the basis of above literature reviews, we have adopted below a theoretical framework presented by (Kulathunga & Deyalage, 2019) that indicates the customer satisfaction as (Dependent variable) with Product Information, Website Design, Purchasing Process, Security Perception and Customer Service as (Independent Variables). Independent Variables Dependent Variable Product Information Website Design Customer Satisfaction Purchasing Process Security Perception Customer Service Chapter 3: Methodology 3.1 Data and Variables Our research is purely consisting of primary data to study multiple determinants that affects behavior of consumer in online shopping related to purchasing. The questionnaire helped in collecting data by distributing, on online social platforms, to various students of universities and employees working in the corporate sector. Accordingly, 210 responses received in multiple efforts covering two weeks. When evaluating the responses initially, 14 respondents never had any online shopping experience. The nature of the research indicated that those 14 responses could not form part of the analysis. Therefore, 196 out of 210 filled questionnaires accumulated to conduct analysis on buying behavior of a customer. Analysis of Consumer Buying Behavior on Online Shopping 8 3.1.1 Dependent Variable 3.1.1.1 Customer Satisfaction is the “feeling of person’s pleasure or disappointment which emerge as an outcome of the actual vs expected comparison based on product or service performance”. (Kotler & Keller, 2012) On the other hand (Oliver, 2015), defined this as the “self-actualization of customer’s response. This refers to the anticipation of customer on a particular product/service feature, or both the product/service has evenly provided (or is providing) a better level of fulfillment”. (Giese, 2000) Defines customer satisfaction as indication/ expression related to a particular product/ service determined at a specific time (after utilization/consumption of that product or service). 3.1.2 Independent Variables 3.1.2.1 Product Information in context to e-commerce platforms states whether a customer is getting enough, clear, restructured and reliable information related to its products (Maditinos, 2010). The information related to products turn into a crucial aspect for customers on online platforms. It decreases the cost of information processing and information search (Park, 2003). The information quality includes the features such as truthfulness, appropriateness, practicality and completeness (Guo, 2012) 3.1.2.2 Website Design reflects the application of presentation to a customer based on user interface design. (Kukar-Kinney & Scheinbaum, 2009). As per (Szymanski, 2000) it is the ambience or environment offered by a website design that reflects how a customer is satisfied while using the website. 3.1.2.3 Purchasing Process refers to the easiness offered to a customer on ecommerce platforms in relation to purchase of any product. (Kulathunga & Deyalage, 2019). For any e-commerce platforms, it is important to provide a simple, fast and easy buying process for the customer (Maditinos, 2010). 3.1.2.4 Security Perception is one of the factors, which can create hindrances for e-commerce platforms if not provided in a better manner. It mainly reflects security of the customer’s personal information such as personal and banking details as well as a secure payment gateway for online purchase (Maditinos, 2010). Analysis of Consumer Buying Behavior on Online Shopping 9 3.1.2.5 Customer Service is providing customers with a timely response on their requirements. It is the positive action of taking care of the customer's requests and ensure that customer is getting better assistance whether the customer only needs information or purchasing the product or needs some assistance after purchase. (Mckinney, 2019) 3.2 Sample and Sampling Technique The convenient sampling technique used to collect data. The online social platforms used for questionnaire distribution on online social platforms where university students as well as employees asked to fill out the questionnaire. Overall, 196 responses were gathered out of 210 responses. The remaining 14 neglected for this study because of not having any online shopping experience. 3.3 Inclusion Criteria The objective of this study is to conduct analysis on purchasing behavior of consumer in online shopping therefore, for this study the inclusion criteria is to take respondents who have online shopping experience and those who do not possess any online shopping experience have not been taken for this study. 3.4 Statistical technique Firstly, we used Cronbach’s Alpha for reliability analysis to find out the internal consistency of items by having reliability co-efficient cut-off of 0.6. Afterwards, we used the correlation to find out the positive or negative relationship as well as statistical significance between dependent and independent variables. Finally, we have used the multiple linear Regression model to test the impact of customer satisfaction separately with Product Information, Website Design, Purchasing Process, Security Perception and Customer Service. Analysis of Consumer Buying Behavior on Online Shopping 10 Chapter 4: Result and Discussion 4.1 Demographics Table1: (Demographic Profile) Demographic Profile Gender Age Education Monthly Income Frequency Percent Female 65 33.2 Male 131 66.8 18-30 172 87.8 31-45 21 10.7 Above 45 3 1.5 Undergraduate 55 28.1 Graduate 49 25.0 Post Graduate 36 18.4 Diploma 3 1.5 Professional Qualification 49 25.0 Others 4 2.0 Less than 50,000 117 59.7 50,000-100,000 57 29.1 More than 100,000 22 11.2 Total 196 100.0 As reflected in Table 1, the analysis of characteristics related to respondent’s demographics showed a higher involvement of male respondents (66.8%) compared to female respondents (33.2%). In addition, the majority of respondents (87.8%) were from the age group of 18 – 30 years, reflecting the involvement of younger age respondents. In terms of the highest education qualifications, 55 respondents (28.1%) had undergraduate degrees, whereas both Graduate and Professional Qualification involves 49 respondents (25%) each making up to 50%. Besides that, a large number of respondents (59.7%) earn less than Rs. 50,000 as the monthly income. Seventy-seven respondents (51.3%) have shopped online less than 5 times during the last year, indicating that their frequency of online shopping is somewhat lower. Analysis of Consumer Buying Behavior on Online Shopping 11 4.2 Reliability Analysis Table 2: (Reliability Statistics) Reliability Statistics Sr. No. Construct Cronbach's Alpha N of Items 1 Product Information .915 5 2 Website Design .940 6 3 Purchasing Process .898 3 4 Security Protection .937 4 5 Customer Service .927 5 6 Customer Satisfaction .961 6 The coefficient of 0.6 taken as a cut-off for Cronbach’s alpha value to test instrument’s consistency and stability. As per Table 2, the value of each construct is above 0.6 which is evident of the fact that construct reliability is recognized. 4.3 Descriptive Analysis Table 3: (Descriptive Statistics) N Product Information Website Design Purchasing Process Security Protection Customer Service Customer Satisfaction Valid N (list wise) Descriptive Statistics Minimum Maximum 196 1.00 5.00 196 1.00 5.00 196 1.00 5.00 196 1.00 5.00 196 1.00 5.00 196 1.00 5.00 196 Mean Std. Deviation 2.7418 .91757 3.0119 1.00901 2.8690 1.00221 2.4464 1.06954 2.6755 .99456 2.7202 1.06984 Table 3 indicates that, dimension of the questionnaire was set such that 1 (Minimum) points towards the lowest level of agreement and 5 (Maximum) pointing towards the highest level of agreement, therefore it can be well observed that agreement of respondents towards the importance of: • Product Information for customer satisfaction is moderate (2.7418 ±0.9157). • Website Design for customer satisfaction is moderate (3.0119 ±1.00901). • Purchasing Process for customer satisfaction is moderate (2.8690 ±1.00221). • Security Protection for customer satisfaction is moderate (2.4464 ±1.06954). • Customer Service for customer satisfaction is moderate (2.6755 ±1.06984). Analysis of Consumer Buying Behavior on Online Shopping 12 4.4 Inferential Analysis 4.4.1 Correlation Table 4: (Correlations) Product Information (PI) Website Design (WD) Purchasing Process (PP) Security Protection (SP) Customer Service (CS) Correlations PI WD 1 .777** R .000 Sig. (2-tailed) 196 196 N ** .777 1 R .000 Sig. (2-tailed) 196 196 N ** ** .783 .852 R .000 .000 Sig. (2-tailed) N R Sig. (2-tailed) N R 196 .592** .000 196 .690** .000 Sig. (2-tailed) 196 N .754** R Customer Satisfaction .000 Sig. (2-tailed) (CST) 196 N **. Correlation is significant at the 0.01 level (2-tailed). PP .783** .000 SP .592** .000 CS .690** .000 CST .754** .000 196 .852** .000 196 1 196 .642** .000 196 .614** .000 196 .733** .000 196 .759** .000 196 .770** .000 196 .776** .000 196 .642** .000 196 .733** .000 196 .614** .000 196 .759** .000 196 1 196 .697** .000 196 .697** .000 196 1 196 .747** .000 196 .827** .000 196 .770** .000 196 196 .776** .000 196 196 .747** .000 196 196 .827** .000 196 196 1 196 The Table 4 indicates that relationship of customer satisfaction is significantly and positively associated with independent variables such as: • Product Information (r = 0.754, p = 0.000). • Website Design (r = 0.770, p = 0.000). • Purchasing Process (r = 0.776, p = 0.000). • Security Protection (r = 0.747, p = 0.000). • Customer Service (r = 0.827, p = 0.000). Analysis of Consumer Buying Behavior on Online Shopping 13 4.4.2 Regression Analysis Table 5: (Model Summary) Model Summary Model R R Square Adjusted R Std. Error of the Square Estimate 2 .890b .792 .787 .49320 b. Predictors: (Constant), Customer Service, Product Information, Security Protection, Purchasing Process Table 5 indicates that value of coefficient of determination (adjusted R square) is 0.787, which depicts that 78.7% of the change predicted in customer satisfaction due to four independent variables except website design. Table 6: (ANOVA) ANOVAa Model Sum of Squares Df Mean Square F Regression 176.727 4 44.182 181.630 2 Residual 46.461 191 .243 Total 223.187 195 a. Dependent Variable: Customer Satisfaction c. Predictors: (Constant), Customer Service, Product Information, Security Protection, Purchasing Process Sig. .000c Table 6 indicates that value of F is greater than 4 i.e. 181.630, this depicts that all together four independent variables except website design predicts the satisfaction of customer towards online shopping. In addition, the Sig. value is less than 0.05 indicating the good fitness of model. Collectively, sig value and f value are evident of the model fitness and highlighting that there is highly significant relationship of independent variables with dependent variable except website design. Table 7: (Coefficients) Coefficientsa Model Unstandardized Standardized t Sig. Collinearity Coefficients Coefficients Statistics B Std. Error Beta Tolerance VIF (Constant) -.178 .117 -1.519 .130 Product Information .247 .064 .212 3.843 .000 .359 2.788 2 Purchasing Process .178 .065 .166 2.732 .007 .293 3.408 Security Protection .258 .047 .258 5.456 .000 .487 2.053 Customer Service .403 .062 .375 6.523 .000 .330 3.032 a. Dependent Variable: Customer Satisfaction Analysis of Consumer Buying Behavior on Online Shopping 14 Table 7 depicts that there exist a positive impact between: • Product Information and Customer Satisfaction because (t = 3.843, p = 0.000). • Purchasing Process and Customer Satisfaction because (t = 2.732, p = 0.007). • Security Protection and Customer Satisfaction because (t = 5.456, p = 0.000). • Customer Service and Customer Satisfaction because (t = 6.523, p = 0.000). This regression equation in relation to above provided below: Y=α+ βX1 + βX2 + βX3 + βX4 Where Y = CST and, X1 = PI X2 = PP X3 = SP X4 = CS CST= 0.247 (PI) + 0.178 (PP) + 0.258 (SP) + 0.403 (CS) The equation shows that: • Increase of .247 change expected for customer satisfaction if there is an increase of 1 in PI. • Increase of .178 change expected for customer satisfaction if there is an increase of 1 in PP. • Increase of .258 change expected for customer satisfaction if there is an increase of 1 in SP. • Increase of .403 change expected for customer satisfaction if there is an increase of 1 in CS. Analysis of Consumer Buying Behavior on Online Shopping 15 4.5 Hypotheses Assessment Summary Table 8: (Hypotheses Summary) Hypotheses H1 H2 H3 H4 H5 Statement There exist no impact of Product Information on customer satisfaction. There exist no impact of Website Design on customer satisfaction. There exist no impact of Purchasing Process on customer satisfaction. There exist no impact of Security Perception on customer satisfaction. There exist no impact of Customer Service on customer satisfaction. Sig. Value .000 Decision Reject 0.134 Accept .007 Reject .000 Reject .000 Reject All hypotheses rejected except H2 that model has left out which means that all independent variables have impact on customer satisfaction except Website Design. (Table 8) 4.6 Discussion In this study, five independent variables as factors examined, based on theoretical framework presented by (Kulathunga & Deyalage, 2019) related to online customer satisfaction, to study behavior of a consumer in online shopping related to purchasing. The findings of previous studies are complimenting each other largely. Rejection of H 1 shows that there exist a positive impact of product information on customer satisfaction. The findings are consistent with (Chun-Chun Lin & Chang, 2011) shown that there is a positive relation between customer satisfaction and information. This relationship has been further confirmed by the studies done by (Szymanski, 2000); (Schaupp, 2005); (Anand, 2007) (Maditinos, 2010); (Gelard, 2011); and (Evanschitzky, 2004). Acceptation of H 2 indicates that there exist no impact of website design on customer satisfaction. As per study conducted by (Adnan, 2014), Website design emerged as insignificant variable and has not any effect on buying behavior which is matching with results as per (Appendix B). On the other hand, security issues as a variable revealed as vital in buying behavior of Pakistani consumer. Analysis of Consumer Buying Behavior on Online Shopping 16 Rejection of H 3 indicates that there is positive impact of purchasing process on customer satisfaction and it is apparent that previous studies done by (Liu, 2008); and (Trong, 2014) has same result related to purchasing process. Rejection of H 4 indicates that there exist a positive impact of security perception on customer satisfaction. These findings are consistent with the previous findings of (Szymanski, 2000); (Park, 2003); (Ranjbarian, 2012); and (Evanschitzky, 2004). Rejection of H 5 indicates that there exist a positive impact of customer service on customer satisfaction. This finding is consistent with the previous findings of (Zeng, 2009); (Ranjbarian, 2012); and (Liu, 2008). This study is a further contribution towards analysis on customer satisfaction in ecommerce as previous studies have contributed also. The findings of this study may help others to better understand the variables used and it has its emphasis on developing countries like Pakistan where the e-commerce is growing and will take time to be like developed countries. Moreover, customer service is one of the major factors as identified in this study and service for Pakistani consumers has its separate importance because maintaining trust by retailer/ seller can collectively grow the e-commerce industry. Chapter 5: Conclusion, Limitation & Recommendation 5.1 Conclusion The purpose of this study is to analyze, based on factors that may have, impact on consumer-buying behavior while shopping on online platforms. The variable includes customer satisfaction as dependent variable and Product Information, Website Design, Purchasing Process, Security Perception and Customer Service as independent variables. To achieve the objectives, a framework adopted based on five factors used in this study. For these five factors, (Kulathunga & Deyalage, 2019) conducted detailed literature review. During the process, number of research papers studied and selected based on their reliability to ensure validity of information. During the study, many factors studied related to buying behavior in online shopping with different frequencies of usage. After evaluation of those factors, most commonly cited five determinants qualified for conceptual Analysis of Consumer Buying Behavior on Online Shopping 17 framework. The conceptual framework developed to depict the relationship of each factor identified with customer satisfaction. All the data gathered through questionnaire tested on Statistical package for social sciences (SPSS). For the hypotheses based on variables were tested using multiple regression analysis. This study showed that customer satisfaction significantly affected by all variables of conceptual framework except website design. The study also evaluated customer service as most significant factor followed by Security Perception, Product Information and Purchasing Process. 5.2 Limitation The study based on convenience sampling technique, which has its limitations and data collected through this technique may be different from target population. This research based on five factors to test impact on customer satisfaction; however, other factors such as price, privacy, merchandising etc. may have effect on customer satisfaction, which does not form part of this study. 5.3 Recommendation Based on research above we would like to recommend the user of the report to consider: • Focus on incorporating more factors, leading to a better prediction of online customer satisfaction. • Mediating and moderating effects on these relationships. Therefore, future research can focus on such mediating and moderating effects. • Since the effects of identified factors can change on the type of product purchased or perception over specific e-commerce platforms, so future research can address this issue as well. Analysis of Consumer Buying Behavior on Online Shopping 18 References Adnan, H. (2014). An Analysis of the Factors Affecting Online Purchasing Behavior of Pakistani Consumers. International Journal of Marketing Studies, 15-20. 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Have you ever had online shopping? Yes No If No, then Survey will end. If Yes, continue to Section 2 of 3. Section 2 of 3: Your Demographic Information What is your gender? Female Male What is your age? 18 – 30 years old 31 – 41ears old Above 45 years What is your qualification? Post Graduate Diploma Graduate Professional Qualification (ACCA, CIMA, CA, CMA) Undergraduate Degree 21 Analysis of Consumer Buying Behavior on Online Shopping 22 Other What is your monthly income? Less than Rs. 50,000. Rs. 50,000 – Rs. 100,000 More than Rs. 100,000 How many times you have experienced online shopping during this year (2019). Never Less than 5 times 5 – 20 times More than 20 times Continue to next section 3 of 3 after completing Section 2 Section 3 of 3: Your Online Shopping Experience Please provide your opinion regarding each of the following statement in the scale with 1 being lowest level of agreement and 5 being highest level of agreement. Agree” by selecting the most appropriate cage, based on your last online shopping experience. Statement Product Information Product information provided on the E-commerce platforms is up-to-date Product information provided on the E-commerce platforms is sufficient Product information provided on the E-commerce platforms is easy to understand Product information provided on the E-commerce platforms is consistent Product information on the E-commerce platforms is relevant Website design The e-commerce platforms website is convenient to search The e-commerce platforms website is convenient to order The e-commerce platforms website is easy to navigate 1 2 3 4 5 Analysis of Consumer Buying Behavior on Online Shopping The layout of the e-commerce platforms website is good The e-commerce platforms website uses good color combinations It is easy to complete a transaction on e-commerce platforms website Purchasing Process The e-commerce platforms has arranged products in a convenient manner It is easy to manage the shopping basket of e-commerce platforms The e-commerce platforms provides sufficient purchase instructions Security perception My private information is managed securely on these e-commerce platforms I feel secure giving credit card information on e-commerce platforms The e-commerce platforms has adequate security features I feel I can trust e-commerce platforms Customer service Customer service personnel of the e-commerce platforms are always willing to help The e-commerce platforms answers customer inquiries promptly The e-commerce platforms are ready to respond to customer needs The e-commerce platforms offers different form of contact channels (FAQ, email, Tel etc.) I can always enquire online about the delivery of my order Customer Satisfaction I am satisfied with the way e-commerce platforms has carried out transactions I am satisfied with the service I have received from e-commerce platforms I recommend e-commerce platforms to other people I am satisfied with my most recent decision to purchase from e-commerce platforms I have truly enjoyed purchasing from e-commerce platforms I am satisfied with the after-sales service provided by e-commerce platforms 23 Analysis of Consumer Buying Behavior on Online Shopping 24 Appendix B: SPSS Outputs Frequency Table: Gender Frequency Female Valid Percent Valid Percent Cumulative Percent 65 33.2 33.2 33.2 Male 131 66.8 66.8 100.0 Total 196 100.0 100.0 Age Frequency Percent Valid Percent Cumulative Percent 18-30 172 87.8 87.8 87.8 31-45 21 10.7 10.7 98.5 3 1.5 1.5 100.0 196 100.0 100.0 Valid Above 45 Total Education Frequency Valid Percent Valid Percent Cumulative Percent Undergraduate 55 28.1 28.1 28.1 Graduate 49 25.0 25.0 53.1 Post Graduate 36 18.4 18.4 71.4 3 1.5 1.5 73.0 49 25.0 25.0 98.0 4 2.0 2.0 100.0 196 100.0 100.0 Diploma Professional Qualification Others Total Analysis of Consumer Buying Behavior on Online Shopping 25 Monthly Income Frequency Percent Valid Percent Cumulative Percent Less than 50,000 117 59.7 59.7 59.7 50,000-100,000 57 29.1 29.1 88.8 More than 100,000 22 11.2 11.2 100.0 196 100.0 100.0 Valid Total Online Shopping Experience Frequency Never Valid Percent Cumulative Percent 12 6.1 6.1 6.1 108 55.1 55.1 61.2 5-20 times 56 28.6 28.6 89.8 More than 20 20 10.2 10.2 100.0 196 100.0 100.0 Less than 5 times Valid Percent Total Descriptive Descriptive Statistics N Minimum Maximum Mean Std. Deviation Product Information 196 1.00 5.00 2.7418 .91757 Website Design 196 1.00 5.00 3.0119 1.00901 Purchasing Process 196 1.00 5.00 2.8690 1.00221 Security Protection 196 1.00 5.00 2.4464 1.06954 Customer Service 196 1.00 5.00 2.6755 .99456 Customer Satisfaction 196 1.00 5.00 2.7202 1.06984 Valid N (list wise) 196 Analysis of Consumer Buying Behavior on Online Shopping 26 Reliability Cronbach's Alpha N of Items Product Information .915 5 Website Design .940 6 Purchasing Process .898 3 Security Protection .937 4 Customer Service .927 5 Customer Satisfaction .961 6 Correlations Correlations Product Information Pearson Correlation Product Information Pearson Correlation 196 196 196 .777** 1 .852** 196 196 196 .783** .852** 1 Sig. (2-tailed) .000 .000 N 196 196 196 .592** .642** .614** Sig. (2-tailed) .000 .000 .000 N 196 196 196 .690** .733** .759** Sig. (2-tailed) .000 .000 .000 N 196 196 196 .754** .770** .776** Sig. (2-tailed) .000 .000 .000 N 196 196 196 Pearson Correlation Customer Satisfaction .000 N Pearson Correlation Customer Service .000 .000 Pearson Correlation Security Protection .783** Sig. (2-tailed) Pearson Correlation Purchasing Process Purchasing Process .777** 1 Sig. (2-tailed) N Website Design Website Design .000 Analysis of Consumer Buying Behavior on Online Shopping 27 Correlations Security Protection Product Information .592 .690** .754** Sig. (2-tailed) .000 .000 .000 N 196 196 196 .642** .733 .770** Sig. (2-tailed) .000 .000 .000 N 196 196 196 .614** .759** .776 Sig. (2-tailed) .000 .000 .000 N 196 196 196 1** .697** .747** .000 .000 196 196 196 .697** 1** .827** Pearson Correlation Purchasing Process Pearson Correlation Security Protection Sig. (2-tailed) N Pearson Correlation Customer Service Sig. (2-tailed) .000 N 196 196 196 .747** .827** 1** Sig. (2-tailed) .000 .000 N 196 196 Pearson Correlation Customer Satisfaction Customer Satisfaction Pearson Correlation Pearson Correlation Website Design Customer Service **. Correlation is significant at the 0.01 level (2-tailed). .000 196 Analysis of Consumer Buying Behavior on Online Shopping 28 Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .891a .794 .789 .49157 2 .890b .792 .787 .49320 a. Predictors: (Constant), Customer Service, Product Information, Security Protection, Website Design, Purchasing Process b. Predictors: (Constant), Customer Service, Product Information, Security Protection, Purchasing Process ANOVAa Model Sum of Squares Regression 1 2 df Mean Square 177.275 5 35.455 45.912 190 .242 Total 223.187 195 Regression 176.727 4 44.182 46.461 191 .243 223.187 195 Residual Residual Total F Sig. 146.725 .000b 181.630 .000c a. Dependent Variable: Customer Satisfaction b. Predictors: (Constant), Customer Service, Product Information, Security Protection, Website Design, Purchasing Process c. Predictors: (Constant), Customer Service, Product Information, Security Protection, Purchasing Process Analysis of Consumer Buying Behavior on Online Shopping 29 Coefficientsa Model Unstandardized Coefficients B (Constant) Std. Error -.207 .118 Product Information .219 .067 Website Design .110 Purchasing Process Standardized Coefficients t Sig. Beta -1.755 .081 .188 3.294 .001 .073 .104 1.507 .134 .118 .076 .111 1.556 .121 Security Protection .246 .048 .246 5.140 .000 Customer Service .394 .062 .366 6.352 .000 -.178 .117 -1.519 .130 Product Information .247 .064 .212 3.843 .000 Purchasing Process .178 .065 .166 2.732 .007 Security Protection .258 .047 .258 5.456 .000 Customer Service .403 .062 .375 6.523 .000 1 (Constant) 2 Coefficientsa Model Collinearity Statistics Tolerance VIF (Constant) Product Information .332 3.015 Website Design .227 4.400 Purchasing Process .214 4.674 Security Protection .473 2.113 Customer Service .326 3.065 Product Information .359 2.788 Purchasing Process .293 3.408 Security Protection .487 2.053 Customer Service .330 3.032 1 (Constant) 2 Analysis of Consumer Buying Behavior on Online Shopping 30 a. Dependent Variable: Customer Satisfaction Collinearity Diagnosticsa Model Dimension Eigenvalue Condition Index Variance Proportions (Constant) Product Information Website Design 1 5.781 1.000 .00 .00 .00 2 .087 8.173 .57 .00 .00 3 .061 9.752 .40 .05 .03 4 .033 13.244 .01 .16 .03 5 .024 15.476 .01 .78 .21 6 .015 19.682 .01 .00 .72 1 4.804 1.000 .00 .00 2 .087 7.451 .59 .00 3 .056 9.236 .37 .10 4 .032 12.226 .02 .36 5 .021 15.121 .01 .54 1 2 Collinearity Diagnosticsa Model Dimension Variance Proportions Purchasing Process Security Protection Customer Service 1 .00 .00 .00 2 .00 .34 .02 3 .06 .46 .00 4 .00 .17 .86 5 .15 .00 .07 6 .78 .03 .04 1 .00 .00 .00 2 .00 .35 .02 3 .12 .49 .03 1 2 Analysis of Consumer Buying Behavior on Online Shopping 31 4 .01 .14 .76 5 .87 .02 .19 a. Dependent Variable: Customer Satisfaction Excluded Variablesa Model Beta In t Sig. Partial Correlation Collinearity Statistics Tolerance 2 Website Design .104b 1.507 .134 .109 .227 VIF 4.400 Excluded Variablesa Model Collinearity Statistics Minimum Tolerance 2 Website Design .214b a. Dependent Variable: Customer Satisfaction b. Predictors in the Model: (Constant), Customer Service, Product Information, Security Protection, Purchasing Process