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Analysis of Consumer Buying Behaviour on Online Shopping

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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
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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
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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
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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
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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
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Analysis of Consumer Buying Behavior on Online Shopping
Appendices:
Appendix A: Questionnaire
Analysis of Consumer Buying Behavior on Online Shopping
Section 1 of 3:
We are students of Institute of Business Management (IoBM) and studying Methods in
Business Research (MBR) course. As per the requirement of this course, we are
conducting research to identify how customer is satisfied with shopping online from ECommerce platforms (Daraz, Homeshopping, ishopping, shophive, yayvo etc.)
This survey will take your precious 5 – 7 minutes approximately.
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
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