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I Need literature sources to be 2015 and above

I also need Questionnaires with statement supported from the previous study.

 

CHAPTER 1

 

 

INTRODUCTION

 

1.0 OVERVIEW OF STUDY

The emerging of E-commerce as commercial tools is not relatively something new as it already existed in 1970s and 1980s (Margherio, 1998). However, E-commerce activities at that time is more lucrative to Business-to-Business (B2B) only compared to Business-to-Consumer (B2C) until the wide spread of Personal Computer (PC) (Tkacz, 2009). In addition of technology constraint in the time of period, using value-added network (VAN) as a medium tool of communication is swallowing too much cost, especially to install and maintain the equipment, therefore it is out of reach for small and medium size of businesses. Somehow, when the Internet comes together with World Wide Web (WWW) in 1990s, it has put a thrust of modern E-commerce sector into the spotlight of international community which replacing the traditional E-commerce from Electronic Data Interchange (EDI) to commercial transaction, whereas more people are gaining access to the Internet (Zwass, 1996).

 

Corresponding to that view, Turban (2008), stated that E-commerce is consist of several processes. It is known as selling, buying, exchanging products or services and also information on the Internet via computer network, while Laudon (2012), explained that e-commerce is about digitally transactions between the organizations and individuals. Therefore, today, e-commerce obtains so much attention globally because of the advancement of technology has created a platform for people to shop digitally from an E-commerce website only, rather than spent all day in shopping mall. This is because E-commerce platform has makes thing simplify so, people can shop as usual except in the easiest way. For example, they can make an order of some products or services after scanning the shape and size in just a few clicks, and then continue to select the shipping method for items to be delivered in the right time and place (E-commerce Land, 2004). This is an outstanding experience that has changed the perception of online shopping from traditional shopping in the physical store compared to the online store. With this view, people are no longer go to the shop themselves, instead they seem like to shop online in their home or office during their lunch time, because now there is convenient way in shopping in our daily lives (Miva, 2011).

 

The history of Internet and E-commerce is intertwined with each other, because of Internet, online shopping is become possible when it opens to public in 1991. Kothari P. Pritam and Maindargi S. Shivganga (2016), defined online shopping as a form of E-commerce ecosystem which allowing the customers to use the web browser over the Internet connection in order to buy goods and services directly from the seller. Looking backward in 1979, online shopping is actually already existed, known as “Teleshopping”, which mean shopping at a distance (Miva, 2011). This idea is invented by Michael Aldrich, who is an inventor, innovator and entrepreneur accredited due to his effort of developing online shopping (Tkacz, 2009). We can see now the lifestyle of people are somehow changed as the Internet grew up, and spread all over the world, some of online aspects are added. Their life was not just affected by this absolute technology but almost all of the aspects too. Like in this day and age, there are online jobs and online home e-commerce, which considered as important subjects in the world. But not just that, people are now also showing their interest and more getting themselves involved a lot in online shopping today.

 

According to Dr. Fiona Ellis-Chadwick, almost 3 billion of worldwide population has an access to the Internet in 2013, from 16 million of people in 1995.

Source: History of online retail, 2013 by Dr Fiona Ellis-Chadwick

From the figure shown above, these numbers have displaying an encouraging development to create more potential prospects in online shopping world this day. Therefore, the marketers and retailers (such as Amazon.com and E-bay) who initially forecaster the growth of this e-commerce trend decided to entered the market rapidly, hence converting their traditional brick-and-mortar stores into the online store (Banks, 2006). Proven that, online shopping prospectively can go beyond our knowledge in order to create more market segment. This is supported by a survey that has been conducted in America, Paw Research Center explained that the increasing of the accessibility to Internet has led to potential growth of online shopper. From the data collected in June, 2000, indicated that there are only 22% of Americans has been made a purchase on online. But, in 2015, the figure has been increased to 79% whereas the Internet users are increasing due to widespread of smartphone access and social media platform has added in Americans into online purchasing behaviour. It is been reported about 51% of online shopper are roughly using their cell phone, while 15% more are using the link from social media (i.e. Facebook or Twitter) to purchase online.

 

Moreover, Dr. Anukrati Sharma (2013), in her study showing that the number of customers interested in online shopping growing from 40% (in 2011) to 128% (in 2012) with approximately 8 million online shoppers in India. Thus, online shopping industry is expected to be growing and showing its exponential growth in the future. As Madeline Farber (2016), saying that, most of consumers all over the world nowadays are buying things online than in store. In which her survey shown that the shoppers who make purchase online increase to 51% in 2016, compared to 48% in 2015 and 47% in 2014. While, in Malaysia, referring to the official article of International Trade Administration (Export.gov, 2017), the distribution of active Internet users in Malaysia in 2017 are estimated about 22 million (68% of total populations), while 15.3 million (50% of total population) of them are online shoppers compared to merely 90 users only in 1992 (Hassan, 1997). The figure shows almost the same number as forecast by Portal of Malaysia E-commerce in October, 2017 and compare to the recent report written by Ng Wai Mun (2018) and equivalent to Nor Azizan Tarja, chief commercial officer of Pos Malaysia Bhd, cited by Emily, 2017, the E-commerce is growing rapidly since 2017 as Malaysia is moving forward to digital transformation where the parcel handled by courier service has increased from 18% in 2016 to 42% in 2017 due to the increasing of shipment trend. Additionally, the growth of online revenue is over 254% during that year is clearly showing that online shopping start to booming in 2017 (Yvonne Tuah, 2017). There is no doubt that the number is going to increase to 21.4 million by 2022 as according to the reading support from the statistics shown below;

Source: The Statistics Portal of Malaysia E-Commerce

Furthermore, the portal also described that, E-commerce market as well as online shopping is expected to grow from US$1,380 million in 2018 to US$2,635 in 2022 with annual growth rate of 17.6% (CAGR 2018-2022). Therefore, in corresponding to this future market, Jeremy Chew (2018), saying that Malaysia E-commerce platform (Lazada, 11streets, Shopee, Lelong and Zalora) now have rapidly evolution in digital economy. With the contribution of 18.2% of Malaysia’s GDP, the online industry is gaining more attention from the Malaysian Ministry of International Trade and Industry (MITI) and therefore help this sector to boast into ASEAN region with the guiding of E-commerce Initiative Plan, 2016 (Department of Statistics Malaysia, 2016). Looking into this contribution and E-commerce trend, International Data Corporation (IDC) Asia-Pacific also has conducting a study and the result showing a promising side of online shopping in Malaysia, near in the future.

2.0 BACKGROUND OF STUDY

E-commerce firms are known as its low-cost companies which offering people to buy products or services through online with the cheapest price available. But in some situation, there is problem which out of their control, hard to manage and maintain their service quality because most of them does not have their own logistic services and it is needed for them to employ third party logistics services to deliver the products and services to the customers.  Besides that, online shopping is becoming a norm so, increasing in product delivery is also creating a new problem where the volume of recipient is continuing to growth so, it is become difficult to be handled by courier service, in term of reliability, safety (security) and timely of the shipment. Although there are many sellers in e-marketplace, i.e. Lazada but if any bad service people tend to blame the e-marketplace instead of the seller itself. Therefore, this study has focused on the customers’ product delivery experiences and E-loyalty towards E-commerce Marketplace in online environment. Furthermore, customers’ responses necessarily needed as critical understanding which depend on these few issues like e-store image, as well as product quality image, assurance, convenience in a way and risk assessment, service quality, trust, online interactive, website design, reliability, security and privacy, transaction and cost involved, purchase behaviour, delivery and customer services (Canavan, 2007).  This is because e-commerce is evolved through time and with a number of practices have been applied, measured and discarded which help to improve this sector by trial-and-error.

 

As we know, in traditional or known as offline shopping, the customers usually will directly consume the products or services after the purchase is done but in online, there was called a “delivery phase” where the customers need to wait in time manners to receive the items ordered, which showing a great difference between these two types of shopping methods. To pursue this study, although the research conducting on customers’ product delivery experiences is limited to be found. But from the previous research that has been conducted on product delivery, Laras Putri Handoko (2016), Ziaullah, Yi Feng and Akhter (2014) and Lin, Wu and Chang (2010) explained that delivery quality nevertheless a value or utility that will determine buyer purchase behavior. Supported by Multimedia Communications and Multimedia Commission (MCMC) Malaysia, in a recent survey conducted in November, 14, 2016 to February, 10, 2017, about 48.8% among the respondent using the Internet for online shopping activities compared to 2015, which was 35.3% only. From the data collected, among 51.2% of non-online shoppers revealed that since online purchase needed for buyer to wait for a longer time so, they were preferred to undergo into physical store to shopping because they did not have patient to wait for the item to get delivered and some of them have a negative experience which make the refuse to online shopping ever again due to the items lost during the delivery.

 

Thus, using the three factor that has been studied which related to product delivery described by Ziaullah, Yi Feng and Akhter (2014), this research attempted to explore the relationship between the reliability, safety and timely on customers’ product delivery experiences which leads to E-loyalty towards E-commerce marketplace. The findings will be helpful to e-retailers to assess their potential to provide better delivery service quality. Besides, the study was conducted using an online survey method, which was developed using Google form to collect the data from an active online shopper.

 

 

3.0 PROBLEM STATEMENT

According to Yung Jan, Pei Wen and Chi Cheng (2017), in the article of “Popular Research Topics in Marketing Journal (1974-2014)”, consumer behavior is showing a promising research topic near the future as the technology has evolved swiftly. Therefore, the researcher has found an interesting and new research area to be studied on the consumer decision making process which related to consumer behavioural area from the book of Principle Marketing 16th Edition (2016), which has limited studied by other researchers before. In the past study, the model of buyer decision process is borrowed and used it for online, hence this study is needed to extend more stages into the process and attempted to empirically verify a crucial factor that affecting customers’ product delivery experience on online shopping. This is supported by Betsy B. Holloway and Sharon E. Beatty (2003), in the article of “Service Failure in Online Retailing” found out that the delivery problem has the highest number of percentages of 46.6%, followed by website problem (16.6%), customer service problem (13.8%), payment problem (12.2%), security problem (3.8%), miscellaneous (1.7% and others (0.6%).

 

Furthermore, in the article written by News Strait Times (June, 2017), it has been recorded that E-commerce sector is the top list of customer complaints, with the number of 7692 complaints has been logged related to online shopping, in 2015 as referring to the finding of National Consumers Complaint (NCCC). Unfortunately, product delivery is one of the top three complaints, other than product quality and online scamming.  Shabana Naser Ahmad, NCCC legal and policy executive said once the payment is completed, many of customers has been given a false promise and run-around waiting for the product to be received, some of them taking a month to arrive and now it is been a trend that the item is stated as missing when the item is not delivered to the customers. In addition, she said the online shoppers are increasing due to the access to the Internet so, a precaution should be taken to safeguard the interest of e-consumers in Malaysia. Besides that, in the studies conducted by Malaysia Communications and Multimedia Commissions survey 2016 cited by News Strait Times (2017), nine over ten of online shoppers delight in convenience of product delivery services.

 

Ahn, Ryu and Han (2004), elaborated delivery service as offline characteristic of online store. Hence low product quality may affect buyer from buying the product again but fail in delivering service quality may lose in customer retention because of service encounter create an environment where failure often become a norm (Mack et al., 2000). This has led the researcher to scan the comments and feedbacks on the websites and believed that the feeling of trust on online shopping is decreasing based on few factors (reliability, safe and timely) that will be discussed later. Besides that, the sellers seem not concerned or considered about product delivery as one of their top priority, although e-commerce website has put a guideline of seller performance and measurements index that will affect their online store. But, with poor delivery service and unable to meet customer’s expectations makes them displeasured with the operational performance of the online store. By studying this area and its causal factors to the problem, the researcher believe it can help to develop a sustainable (loyal, retention and continue used of product and services) relationship between marketers and customers on online shopping environment (Ziaullah, Yi Feng and Akhter, 2014). Thus, a model of online purchasing behaviour (Figure 4) and theoretical framework has been developed based on this idea where the researcher has found that there are many problems in term of product delivery that caused unacceptable experiences among online customers as follow:

 

3.0.1 Reliability of Product Delivery

In term of reliability, is discussing about how the sellers deliver their performance to the customers.  Kees de Vos, Chief Product and Marketing Officer of MetaPack elaborated that it is important to provide delivery services that meet each customer’s personal demands, complex needs and wants (cited by Daniel Hunter, 2015 in an article of, “Delivering Consumer Choice: How Delivery Can Impact Ecommerce Success”). This is because it has been confirmed that consumers will not hesitate to abandon shopping baskets if, that delivery could not be guaranteed by a certain date (30%) or would take too long to fulfil (44%). Moreover, when it comes to convenience, fast delivery is their top priority as mostly agreed by 86% of online shoppers which is conducted with 3000 respondents across US, UK, Spain, France, Germany and the Netherlands (Daniel Hunter, 2015). Comparatively to other studied, it has been highlighted that shipping speed is the key to customer experience, some of online shoppers need the to be delivered as soon as possible because of deadline constraint but some of the simply prefer to receive to package more quickly, therefore they are willing to pay more if the same-day delivery option is available (Tim Parry, 2016). Hence both studies have clarified on important of reliable delivery on customers.

 

For example, in a situation, there are condition where the customer is expecting their order processed as soon as they done on purchase transaction. But when the order was confirmed, the items was never got shipped out from the online store until the day it was supposed to be delivered, confirmed by tracking. The customer never received a call saying it would not be delivered and still waiting for their order although the complaint has been made. Meanwhile, for those who live in rural areas, they find that it is unreliable for them to shop online because some of delivery service used by the seller need them to go out to the town to pick up the purchase and it would cost them more. Then, instead of receiving the right product, the customer received wrong product delivered to them.

 

3.0.2 Safety of the Product Delivery

In term of safety, is discussing about did the product ordered safely arrived into customers hands. Except from fast delivery, a recent study by Tim Parry, 2016 has discovered that premium packaging also given the high impact on customer loyalty. The customer is expecting their packaging is delivered in a protected way while a special care should be given an attention on certain item which hard to delivery for such fragile and complex, and also an expensive item (Loretta Chao, 2016).

 

In a given circumstances, customers tend to buy a product at home or office that they considered the safety of desired product, especially the product which was fragile delivered safely to their destinations. But, despite of the product takes a long time to receive, they received a broken product instead. This is usually caused by inefficient packaging or irresponsible of courier service used by the sellers, as we know that different courier service provides different of service quality which lead to this problem. Same problem also occurred to other customers but the item is missing and has not been received.

 

3.0.3 Timely of Delivery

In term of time, is discussing about how long it takes to get the product. In a new survey conducted in 2015, by Daniel Hunter, 80% of customers are expecting a dedicated time slot given because they are not willing to wait in longer time given. In addition, due to poor delivery option, 51% of online shoppers failed to complete an online order based on that reason. Supported by, Loretta Chao, 2016, she said that in her survey to number of percentage of customers willing to wait is declined from 74% in 2012 to 60% in 2016 showing their waiting average is not more than four days maximum. On the other package which order from oversea might take longer time than expected, it could up to a few months from two week of the timeline given. Moreover, it killing your vibe to consume your purchase right away (Jasmine Andria, 2018).

 

In other conditions, timely delivery is where the product is going to ship out from the warehouse and receive within the specific time (time range), but the actual shipping to the courier service was slow, because sometimes the sellers are waiting for the order achieved their quota of the day first before they deliver the product, to save their time, cost and energy. Slow delivery by the seller caused the customers’ complaints where they do not get their order delivery on time within the timeline given, which caused an impact on customers’ experience, which discouraged them to repeat the online purchase again. After that, there are some complaint related to no specific time for delivery as the customer is out somewhere or at work when delivery personnel turn up at our home.

 

The researcher can conclude that, previous experience on online shopping determine whether the customers would like to purchase the products or services in a specific shop again or not (Rao et al, 2011).

 

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Comparism between Offline and Online Purchase Behaviour Process Model.

 

Offline Purchasing Behaviour Model  

Search Information
Evaluation
Purchase and Consume
Post-Purchase Evaluation
Need Recognition

 

 

 

Figure 3. Source: Framework Model Developed for this Research

 

Online Purchasing Behaviour Model  

              Research Area
Consumer Behaviour Process
Consist of
*            Vice Versa
Purchase Transaction Completed
Comments and Feedbacks (E-WOM)
Experience Level
Yes/No
Receive
Purchase
Customer
Experience
Post-purchase Evaluation
Delivery
Evaluation
Search Info
Consideration Set
Needs

 

 

 

 

 

 

 

 

 

 

*E-Loyalty towards E-marketplace

 

 

 

 

 

 

 

Figure 4. Source: Framework Model Developed for this Research

 

Need recognition

Need recognition, hold the first key of buying journey that leads to other stages. It normally happens because of an absence in need and desired in certain situation (Kotler and Armstrong, 2016). In term of offline and online purchasing behaviour, need recognition is where the customers must aware or realize their particular needs or desires that they want to fulfil on specific product or service.

 

Search Information

Meanwhile, after the need is identified, consumer start to digging for information until they are satisfied with their needs which depend on the complexity of their choice (Kotler and Armstrong, 2016). In offline purchasing behaviour process, is where people tend to search information by consulting friends or salesperson, reading magazine and newspaper reviews, and looking at the product in a store themselves. If they feel more difficult to gather the information in the store, the customers will normally leave and come back later once they have made up their mind. While on the online, the time takes for the customer to decide is often much shorter. This is because they can usually get the information you need much more quickly when researching on the Internet. On the other hand, it can also be much longer because so much information available makes the customers feel confused.

 

Evaluation of Alternatives

After the process of collecting information is completed, the consumers seek for the best alternative available that lead them to actual purchase as they are satisfied on the option given (Kotler and Armstrong, 2016). Referring to the evaluation on both offline and online processes is based on the customer’s past experiences of particular products or brand. If they do not have the previous experience or lack information, the customers can read the reviews on the websites, social networking sites, and forums, within a matter of time.

 

Purchase

On this stage, the consumer making decision on which items should be bought (Kotler and Armstrong, 2016). In offline purchasing behaviour model, after the customers going through the evaluation stage, they will simply take the product and go to the checkout, to buy and directly consume the products. Unlike online buying scenarios, there is time lag between purchase and receiving the product.

 

Post-Purchase Evaluation

In post-purchase evaluation, customers will determine whether they are satisfied with the overall performance of offline or online processes. Whereas the consumer will compare the original need with their actual purchase while gauging their satisfaction level (Kotler and Armstrong, 2016).

 

Customer Experience, E-Loyalty and E-WOM

Customer experience is the interaction between customers and product, company or part of company that resulted in reaction (Gentile, Spiller, and Noci, 2007). Therefore, by the end of the stages of consumer buying process decision, the post-evaluation is focusing on customer experience rather than customer satisfaction that will be discussed later. After the all processes are has been through, utilised and completed, customers are expected to evaluate on the experience on online shopping compare to offline shopping. The more positive experiences received, the more customers are intended to buy frequently and potential to become a loyal customer. This supported by to Srinivasan et al. (2002) and Islam et al. (2012), where they defined e-loyalty as interest or intention to repeat buying or repurchase from the e-retailer again in the future. Moreover, when customer become loyal, they are more likely to spread Electronic Word-of-Mouth (eWOM) by saying a positive thing about certain company (Zeithaml et al. 1996; Islam et al., 2012). Because of that, Zhang, Zhao, Cheung, and Lee (2014) has conducted a study on individual level in order to explored about the impact of customer’s review posted on online. The result of their study found that potential customers are most likely to be persuasive by a negative comments and reviews compared to the positive one. Although the credibility of the comments and reviews are anonymous and the accuracy of such content is doubtful but it would be swaying the potential customer from their purchase intention earlier (Kim, Seo & Schrier, 2014). In other words, eWOM helps to facilitate customer in making uncertain decision but the effect of negative reviews is leaving more impact to customer mind although the validity of eWOM has been further questioned. Bae and Lee (2011) also explained that the negative review is able to manipulate customer purchase and result in low amount of product purchase but in previous studies, it is not possible that there is positive relationship between customer loyalty and Word-of-Mouth (Villarejo-Ramos et al., 2014).

 

Gaps in offline and online purchasing behaviour process.

 

Delivery

The model of offline shopping is very limited and hard to found to the closest model of classical consumer purchasing behaviour processes as common used, reviewed and acknowledge by previous researchers before. So, the researcher develops the offline purchasing behaviour model (Figure 3) to compel our understanding on offline shopping compared to online, although most of the key steps are similar but there is one stage different in offline and online processes, which is “delivery” (Figure 4).

 

In online purchasing behaviour process, after check out and make the payment, the customers need to wait for the products deliver to their house and after the items is received, then it will be considered as the purchase transaction is completed. So, this clearly shows the gap between offline and online purchasing behaviour process, which explained why this research is needed to be done.

 

 

From the explanation above, the model is illustrated below to generate more understanding on the differences between offline and online shopping.

 

Past Studies on Consumer Behaviour Model

The theory of consumer behaviour process begins with the Nicosia model (1966), followed by Engel-Kollat-Blackwell (1968) and Howard and Sheth (1969). If looking into the year of the model was introduced and as we were going through into e-commerce history, this where the scientist was started to develop “packet switching” in the late of 1960s (Andrew, 2013). So, the online factor is none to be imposed into the process yet.  Among these models, there are five stages of customers’ purchasing behaviour can categorized as similar process which consist of needs for recognitions and information, evaluation of alternatives, purchase decision, and post-purchase evaluation in the buying process behaviour (Kotler, 2011) as shown in Figure 1 below:

Figure 1. A model of classical consumer purchase behaviour process.

Source: Butler and Peppard (1998) and Riley (2012)

Figure 1 above shows that each of stages are interconnected, utilised and pass over depends on buyer purchase decision. This model has been compiled by previous and taken out from the book of Principle Marketing (2016) purposely because of it well-known used commonly as a classical model which acts as the backbone of any decision-making process on any related studied on consumer behaviour model before. This model also has been acknowledged and reviewed by many researchers. But despite of the technology advancement like Internet, and nowadays, online shopping has become part of our daily life, this model needs to be studied again in many aspects, especially in understanding the real online purchasing processes.

 

4.0.1 Gaps in Classical Purchase Decision Process Model

Karimi (2013) in his study to facilitate the understanding on online customers’ purchasing process behaviour, has discovered, nevertheless, this classical model has been used for more than half century but it not fully digs deeper into the real situation of modern technology today. Moreover, many of researchers also have offer their suggestion to review again this classical behaviour model in online aspects. According to previous researcher in their past finding suggested that modelling a new purchase decision making process need an attention from more researcher as technology has rapidly changing on consumer behaviour process. Although the traditional model of decision making is altered according to the modern way of life but it is still treated as an “ultimate” knowledge that guide other researcher to explore new thing or making an adjustment because of changes in standard of living (Eramus, Boshoff and Rousseau, 2001). In addition, new model is necessarily needed to address the complexities of purchase decision on real-world situation. Furthermore, Xia and Sudharshan (2002), explained that new model of buyer decision making process is needed to be developed to adapt with the new environment of online market due to widespread of Internet access among customers recently. Even though the model has been adopted and adapted by many researchers but it still limited of researcher explore the real process of online customer decision making process that will be discussed later.

 

Summary of literature gaps as below;

 

 

 

 

5.0 Past Studies on Online Consumer Behaviour Model

Referring to previous issues, Figure 2 shown below, Darley, Blankson and Luethge (2010) have adapted and reconstruct a new the model of classical consumer purchase behaviour process that will suit online shopping environment today. Despite of the growing technology and the acknowledgement of Internet nowadays, they believed that there are a lot of potential area to be studied in e-commerce sector especially on online industry. Therefore, the researchers have identified a few factors need to be considered on online aspects, which are situational factors, socio-cultural influences and the individual characteristics as the influential factors on online shopping processes. On top of that, evaluation of alternative that consist of beliefs, attitudes and intentions shown in the model will be influencer on next customers’ purchase decision based on previous satisfaction post-evaluation before.

Figure 2: A model of online purchase behaviour process.

Source: Darley, Blankson and Luethge (2010)

 

 

 

Figure 3: A model of online purchase decision-making process

Source: Sahar Karimi (2013)

Over the past years, many of researchers have developed and utilize the conceptual model of online consumers behaviour while making purchase decision but majority of the model available models are unable to explain the nature of the online purchase decision-making processes. Hence, a new “online purchase decision-making process model” was proposed by Sahar Karimi in 2013.

 

Sahar Karimi believed that the “step-by-step” of consumers purchasing decision is already used in decades, while the flow of the processes may different depends on different consumers. Therefore, the needs of dynamic process model are taken into the action which capable to illustrate the real complexity of making decision. In order to do that, he has included a flexible structure which allow the processes of decision making can be skipped or moving between each stage. In addition, he also introduces an appraisal stage to evaluate the alternative in separate process before making their choice into the process so, constructive process is developed and measured so, the each of the stages has its own role of decision makers and provide a meaningful explanation of each behaviour stages with the different decision tasks.

5.0.1 Gaps in Online Consumer Behaviour Model

Although numbers of models of online purchasing behaviour have been introduced but most of them just discovered the factors that affected the purchases of each of the stages based on their comprehensive views.  And none of them interact with the actual online decision-making processes. It is important to understand the actual online decision-making processes on online customers, because there is a missing part between traditional and online purchase behaviour. Moreover, the empirical evaluation of this model was very limited.

In summary:

Thus, the classical model of consumer behaviour was modified in this study accordingly to the research area which take place after the purchase transaction is done and before the post-purchase evaluation is made. But before going further, better understanding also needed in offline purchase model as it is important to differentiate the differences between offline and online (Rajamma, Paswan & Ganesh (2007). In offline, the customers usually will directly consume the products or services after the purchase was done but in online, there is call “delivery process” where the customers need to wait in time manners to receive the items ordered. It clears now that, more research involves online environment needed to be done supported by (Shim et al., 2001; Ha & Perks, 2005; Jepsen, 2007; Soopramanien & Robertson, 2007).

APPROACH TO THE GAPS

  • Therefore:
  • This research aims to facilitate our understanding of the online consumer purchase behaviour process.
  • Proposing an improvement model of classical and existing online purchase processes.
  • The model is able to describe the real-life decision processes and empirically tested.

Because, previous research on online consumer behaviour are more focusing on conceptual models and only offering comprehensive view on the factor that may effect on the existing stages. So, this research aims to address the limitations of this area.

 

 

 

 

8.0. Customer’s Product Delivery Satisfaction and Experiences

Past Studies on Product Delivery on Customers’ Satisfaction

The empirical study about product delivery on customers’ experience on online shopping is limited. However, taken into the previous study by Laras Putri (2016), to test the effect between delivery service and product quality on online customer satisfaction, he found that delivery quality was the most important factor compared to product quality. He therefore suggested that more attention should be taken by e-commerce operators on safety, on time and correct order of product delivery. Besides that, according to the study has been made in Taiwan by Chun Lin (2010), to test the factors that effect on online customers’ satisfaction, in it, delivery quality, service quality, product quality, information quality, system quality and perceived price have been identified as the antecedents of customers’ satisfaction. Based on their findings, and supported by Ziaullah, Yi and Akhter (2014), shown that delivery service which consist of safety, timely and reliability of product delivery has significant effect and closest relationship on online customer satisfaction.

 

Gaps in Customer’s Product Delivery Satisfaction and Experiences

Based on the past studied, previous researchers suggested that, in the future, their study should be replicated and tested in different country or culture. Thus, this study is conducted related to the product delivery, to test the factors of product delivery on online shopping. However, the researchers nowadays are showing their interest in loyalty as the slowdown of research about customer satisfaction while uprising the revival of “experience cocreation” topic (Yung Jan, Pei Wen and Chi Cheng, 2017). Moreover, to this present study, is unravelling how this product delivery may influence online customers’ experiences. This because, customer experience has been neglected over the past two decades (Cho et al., 2017). Although customer experience is not construct separately in literature of marketing, retailing and service managerial, but researchers are focusing more on customer satisfaction and service quality (Parasuraman, Zeithaml and Berry, 1988; Verhoef, Langerak and Donkers, 2007). Until Holbrook and Hirschmann theorized that experience is related to consumption, so the companies has taken experience as an aspect to create an interaction (sense, act, think and feel) in branding their companies (Babin et al., 1994 and Schmitt, 1999).

 

Therefore, Samson Lee (2006) defined that, customer’s experience is about “perception” where the consumer seeking for “feel good” experiences in shopping. He emphasized that satisfaction is no longer a reliable metric to understand their purchase behaviour. This is because many studies have been conducted via, survey, focus group, observation and interview to get inner feeling (mind) via their outside expression, however how about the consumers that cannot express their true feeling and feel unsure with themselves. Consequently, Daniel Kahneman, who is psychologist who win Nobel award, said that there are two thing consumers will remember from their experience which are how they feel at the peak (best or worst) and at the end. From this experiences (memories) will decide on consumer’s next buying decision because this is all about perception whereas feeling pleasure or pain throughout the whole experience process almost do nothing to consumer’s memories. In a survey explored by Daniel Hunter (2015), found that 51% of Spanish consumers, followed by German (49%), UK (49%) and Dutch (47%) who receive a negative delivery experience would ever visiting and mostly like never shop from the retailer again, while some of consumers would elect to withdraw their loyalty from a retailer, which are 36% of French shoppers (36%) and 38% of US. For that reason, this study will be focused on customers’ product delivery experience rather than satisfaction.

 

The summary of previous researches is extracted as shown in the table below:

 

 

 

 

9.0 RESEARCH QUESTIONS

  1. Does reliability affecting customers’ product delivery experience?
  2. Does safety affecting customers’ product delivery experience?
  3. Does timely affecting customers’ product delivery experience?
  4. Is there relationship between customers’ product delivery experience and E-loyalty towards E-commerce marketplace?
  5. What is the framework recommended for customers’ product delivery experience and E-loyalty towards E-commerce marketplace?

 

10.0 RESEARCH OBJECTIVES

  1. To find out whether reliability affecting customers’ product delivery experience?
  2. To analyze whether safety affecting customers’ product delivery experience?
  3. To determine whether timely affecting customers’ product delivery experience?
  4. To explore the relationship between customers’ product delivery experience and E-loyalty towards E-commerce marketplace.

5 To recommended a framework for customers’ product delivery experience and E-loyalty towards E-commerce marketplace.

 

 

 

11.0 RESEARCH HYPOTHESES

Product delivery is an important factor that need to be considered on online customers as they have paid for it products and services. According to Ziaullah (2014), online shopping is the scenario where reliability, safety and timely delivery play a critical role in meeting customers’ expectations which lead them to satisfaction.

 

H1. Reliability is positively affecting customers’ product delivery experience.

H2. Safety is positively affecting customers’ product delivery experience.

H3. Timely is positively affecting customers’ product delivery experience.

H4. There is positive relationship between customers’ product delivery experience and E-loyalty towards E-commerce marketplace

 

 

 

12.0 SIGNIFICANCE OF RESEARCH

This study was conducted to give an advantage to the other parties like the researcher, customers, and organization as an important source of reference for them.

 

12.0.1 Researcher

From this study, the researcher can get more information about the factors of product delivery affecting customers’ satisfaction on online shopping, in order to find some solution towards the problem. It can help the researcher to gain more experience and self-confidence when communicating with the respondents. Besides, it helps to develop the researcher’s creative thinking to create new ideas for the organization.

 

12.0.2 Customer and Future Researcher

In this study, the consumers will gain more knowledge and new information from the findings of this study. The researcher can also replicated and improved the study further.

 

12.0.3 Management

For the organization, the findings and solution develop from this study can help the management to overcome the problems and complaints made. Therefore, it helps to improve more customer’s satisfaction towards their organization. It also helps to build more intimate relationship and understanding between the organization with their customers.

 

 

13.0 SCOPE OF STUDY

This study is about the factors of product delivery affecting customers’ satisfaction on online shopping. This section will discuss about the subject of the study, respondents and location.

 

13.0.1 Subject

This study is conducted to investigate about customers’ product delivery satisfaction on online shopping. The main components are reliability, safety and timely of product delivery, based on previous literature reviews are taken. These components are the attributes to solve the problem of unsatisfied customer with the low service of product delivery towards online shopping.

 

13.0.2 Respondents

The respondent were selected accordingly to the studied among the customers of e-commerce store, to answer the questionaires about their satisfaction towards the product delivery quality provided.

 

 14.0.3 Location

The location of the study was conducted using Google form, which allowing researcher to collect the data through online survey. Besides that, the study is focusing to online users who have experienced on online shopping. Therefore, this method is appropriated to gain the data.

 

 

CHAPTER 2

 

 

LITERATURE REVIEWS

 

CUSTOMER

As stated in Oxford Dictionary, a customer was someone who purchased goods and services in a business whether in a store or restaurant. In addition, Nimako and Azumah (2009) assessed customers as buyers, purchasers or clients as well as current or potential users or customers to the companies or organizations. In the meantime, Yaqoob (2012), mentioned, it was a fact that the key to a business were customers. Without customers, such a business will not go forward and difficult to success as they are assets to generate the value of a company or organization. Moreover, in according to different factors and situations, the customers and company may thinks differently whereas the company may not offer product or services the same as what customers really wanted or needed as according to Rampersad (2001). Therefore, a company should investigated more deeper in customer experiences as customers want their needs and wants was fulfilled accordingly to their evaluation of the products and services offered to them (Parker and Mathews, 2001).

 

 

3.0 PRODUCT

As a consumer, they are looking for products that have a strong brand image (Wright, 2006), so that they can highlight their personality and give them an ideal image of themselves. Therefore, reinforcing this brand image by conducting advertising, promotion, and packaging activities is a must-have thing and cannot be considered arbitrarily because it has a huge impact on consumers. According to Vincent van Vliet (2013), Philip Kotler, an economist and marketing expert, stated that the products plays more than important role, not just a tangible thing. Therefore, it must be able to meet the requirements as needed by customers as not only has a significant value but also an abstract value in the customer’s view. And this value is a combination of tangible attributes comprising (benefits, features, functions, uses) offered by the seller to the buyer.

 

Additionally, Anderson (2000), stated that the term of product can be defined as anything offered by the firm whether the product is tangible or intangible as a service. Obviously, focusing entirely on products offered besides knowing their impact on customer satisfaction, can help the firm to become more competitive competitor and possible to generate more income easily as consumer needs and wants are fulfil, as a shortcut to profitable potential in the future. (Kotler et al, (2001). A researcher Larson (2010) also, expressed the product as a good, which means physical good or informational good, it can sometimes be rented as “fair use” of the law may apply to the product like software or subscription, as long as they meet customer needs.

 

In Time Economics (2016), it is also not to disclose, that the product is the goods offered for sale whether in physical form or in virtual form as mentioned before, it is either goods or services. The price of a product depends on the type of quality, and the marketing strategy of the product, as well as on market demand and to which category the product is targeting. Each product has its own task, as it supposedly to perform its work as it should, and be able to deliver good quality. Because the products that are no longer useful to consumer have their own life cycle where they will be processed and re-created so that users can benefit from it. Apart from that, a product needs a name to remember. The product’s name will be the brand and will be able to highlight the stiffness of the product. Moreover, a product should also be able to adapt to time especially the current trends so that the product can be found among different segments of society.

 

 

 

 

DELIVERY

Agatz (2008) mentioned, delivery service considered as a strategic plan in tactical terms especially when it was related to the shipping cost, this is because the impacts of effective and efficient planning lead to customer conveniences, which shown that monetary value in term of service in delivery are highly valuable which grab the customers’ attention (Hsiao, 2009). Boyer and Hult (2005) have been researching retail industry on customer behavior. They found emphasized on delivery services besides offering something related to monetary value of delivery, convenience way in receiving a product by customers is more valuable thing than the value of the product itself. Hedin, Jonsson, and Ljunggren (2006) also noted that delivery services is one of the most important that links in the supply chain that interacts directly with the customer as it is the last step in the purchase transaction where the customer was expecting the product received without any defect and/or problem on its way. Meanwhile, Blauwens (2010) explains that the delivery involved a specific time or narrow window is a good opportunity to encourage customers to repeat the purchase again, and no doubt the delivery efficacy can change their anxieties to spending online confidently (Agatz et al., 2011). Zhang (2008) recognizes product delivery plays an important role in e-commerce logistics because it is an important element in the transaction process, where it affects the behavior and the needs or wants of customers to shop online nearly in the future (Esper et al., 2003).

 

 

Product Delivery

Literature reviews related to the product delivery are very limited to be found and described by the previous researchers. However, based on the sources found, Sriyam (2010) and Kumar, Batista, and Maull (2011) has discussed on the topic about product delivery. They defined it as delivering a consistent quality, dependability, and prompt services (speed) as a critical part of product delivery performance. While, Rao et al. (2011) indicated that physical distribution (product delivery) is a key indicator to customer retention as if product delivery is not handling in good manner, it will be causing a significant negative effect on customer purchase decisions Gümüş et al. (2013).

 

 

 

 

Reliability of Product Delivery

Schneider and White (2004) has defined reliability as ability to deliver the service performance accurately and dependably as promised. This definition given is similarly to Zeithaml et al., 1990 and Parasuraman et al., (1988), where the dimension of reliability is the capability of service provider to perform service dependably and accurately as been expected by customers. He further explained that, although the customers do not require any help but as service provider, they must be able to keep their promise as they do. Furthermore, he explained that reliability is one of the most important service components of customers and it also includes doing it right the first time (Parasuraman et al., 1991). Besides that, reliability is the extends of providing services as and when promised, where the service must be handled in right manner at the right time as promised and maintaining error-free record (Kandampully, Mok and Sparks, 2001). Apart from that, reliability is important requirement for businesses to able to maintain their service quality in the marketplace (Akaba, 2006). Therefore, Yang and Fang, 2004, clarified that reliability are consist of accurate order fulfilment, accurate billing, accurate quote, accurate commission calculated, accurate record and also keeping services as promised.

It has been proven that consistent delivery of products and services as soon as possible in fulfilling order fulfillment process to customers is a very challenging task (Fernie and Sparks, 2009). Therefore, they hopefully that e-commerce as well as the sellers should provide reliable performance in term of product deliveries at a convenient time. Supported by Brusch and Stübner (2014) in their study involving online shoppers in Germany, customers are very interested and encouraged from flexible and fast product deliveries. In accordance with Hsiao (2009), consistently deliver right products (accurate) in the hand of customers (Cater and Cater, 2009).

 

 

 

Safety of Product Delivery

According the Douglas Harper (2003), who is etymologist, the word of safety is derived from the Old French “Sauf” which means safe, healthy and uninjured. It is stemmed from the Latin “salvus” and use as English language in 1280. The definition of safety is brought many different of meaning. For example, Merriam-Webster Dictionary defined it as far from the state of danger which causing hurt or undergoing any form of danger such as injury or loss. While Concise Oxford Dictionary said that safety is free from involving in risky and danger condition. In addition, the term of safety synonym to security which is the condition of safe from internal or external harm, such as loss, defect and protected from threat or something that hinder organization from being in a steady state (Charles, 2009). He further explained “steady state” as the form of safety where the organization are in condition to achieve its purpose. However, the definition of safety also depends on situation of what is expected and acceptable. Therefore, Lowrance (1976), elaborated it as the acceptable risk that willing to take or adjust accordingly to be in safe condition. Besides that, it is also function as the measure of the relative freedom from potential source of risky of danger (Gloss and Wardle, 1984). Which is why ISO (1999) MIL-STD-882D (2000), added that safety is freedom from unacceptable risk and condition of causing in injury, death, severity of harm like damage or loss of property, equipment, system and also environment. Therefore, safety is about the zero and minimal risk (Ericson, 2005), and it is controlling the hazard and eliminate it for the sake of acceptability risk (National Safety Council, 2009). Nevertheless, the definition of safety of product maybe different from person to person, depends on consumer’s perspective on different market on what they defined of safety and it may change tomorrow.

In addition, Schnedlitz et al. (2013) stated that the delivery of the product with efficient and minimal error is actually influenced by the high expectations and wants of customers. There are also less arguments from Liu et al. (2008) which explains the seller should be concerned with what makes the customer dissatisfied before losing them in matter of time. In illustration, poor delivery service of online store in terms of delivering unsafe and unwanted or undesirable products can make customers easily switch from one website to another with just one click away.

 

 

 

Timely of Product Delivery

The term of timely is limited to be find in academic literature. However, timely is brought the mean of in time, early or soon before 12th century, but after 13th century it is known as coming early or at the right time (Merriam-Webster Dictionary). Timely is synonymous with appropriate, at the right time, prompt, punctual, well-timed (without delay), and convenient (English Oxford Living Dictionary).  Looking into the meaning of timely, is really about being in service to others where is happen in opportune moment possible (Cambridge Dictionary), or occurring at opportune or suitable time (Farlex, 2016). Yet, timely is always been mistaken for fast service only especially in-service organization, timely is about the time resolution or pace to resolve the issue effectively in timely manner.  As according to West’s Encyclopedia of American Law (2008), timely is occur in existing or taking place in designated period of time, also known as seasonable, which is meeting the occasion of needs. Therefore, time is showing on how people look at your capability, responsibility, and commitment to your work.

Swaminathan and Tayur (2003) and Xing and Grant (2006) argued that product delivery should not be an issue in this modern era. This is because Boyer et al. (2003) explains that customer dissatisfaction stems from the failure of product delivery at a given time. Lastly, when buying online, product delivery is the intermediate activity that separates between the sellers and the buyers as it has a time lag between when the products were received compared to what time the products were ordered by the customers. This concern has a negative impact on online shopping if the product is not received as according to the timelines (Yrjola, 2001, Tedeschi, 1999, Eastlick and Feinberg, 1994; Klassen and Gylnn, 1992). Wolfinbarger and Gilly (2003) indicated that fulfillment is described as the delivery of right product within expected time frame along with accuracy of product on the basis of that information which has been displaced on the online retailer website.

 

 

Experience 

The existing of buyer in market today is not enough to explain about the changing of customer needs and behaviors in term of marketing concept (Knutson, Beck, Kim & Cha, 2006; Pine and Gilmore, 1999; Schmitt, 1999). Because of this needs and behaviors has emerged on the concept of customer experience. However, Walls, Okumus, Wang and Kwun (2011), said that the definition of customer experiences have in most studies been vaguely defined. According to Holbrook and Hirschman (1982), experiences are fantasies, emotions, and different customer perceptions which are related to consumer behavior. Which explain, experience is a part of consumer behavior where it is an integrated whole that affect customers physically, emotionally, spiritually and intellectually (Mossberg, 2007). Therefore, experience is engaging with memorable event and moment because of the whole integrated affecting consumer to consuming those events (Oh, Fiore and Jeoung, 2007). This supported by Pine and Gilmore (1998, 1999), he said that experiences are about sustainable and memorable events for consumers, and it is involving an intention to repeat and be shared with others. But all of the illustration is nothing more but just a definition of the concept of customer experience. Therefore, Walls (2009), in theoretically, elaborated experiences are personal and exceptional, in which they are engage with customers emotion, involve in customers’ perception and participation, and also shared things with others and remembered for a while. Thus, in the previous study on hospitality on guest experience in the hotel is showing the memorable event engage customers emotionally in a personal way which influence future purchase decision (loyalty) and shared with others (word-of mouth). Hence the outcome of customer experience is giving an impact on loyalty and while recommendation behaviors of customers are major factors for long-term success of the organizations, which is supported by numerous of study before. However, mere satisfaction is not enough for loyalty (Brakus, Schmitt and Zarantonello, 2009; Reichheld, 1996). So, this where customer experiences play its part to bond them emotionally to the brand and reflect that in their behaviors. As services are intangible, inseparable, and heterogeneous, physical environment and social interactions, the researchers, Pine and Gilmore, 1998,1999; Schmitt, 1999, point out the importance of customer experiences particularly for services.

 

 

Customer experience is a measuring strategy used to make the customer feel the impact of the services that have been provided by the business organizations. For example, experiential marketing is created by having customers sense, feel, think, act and relate to a company and its brands (Schmitt, 1999). Which is relevant to the meaning of customer experience is originated from a set of interactions between a customer and a product, a company, or part of its company, which provoke a reaction such as rational, emotional, sensorial, physical, and spiritual (Gentile, Spiller, and Noci, 2007). Another definition that related according to the statement is customer experience is the internal and subjective response customers so, the interaction starts from the first human behavior which is sees the advertisement, follow by the process of buying, and lastly when the customers experience it by using the products or services (Meyer and Schwager, 2007). Therefore, to create the satisfactory experience, the company needs to gathered all the clues that lead to buying process of the customers (And, Berry, Carbone, and Haeckel, 2002). This is because, experience is one of the elements which based on the personal judgement from the consumers either good or bad depend on the offerings that they are offered by the retailers. As an example, when the consumers want to buy something on the retail store, they will consider and evaluate all the elements or factors surrounding them such as ambient, arrangement of the products, the availability of the information and services, price tagging, the friendliness of the staff and many more. So, it is not just about the products or brands. Moreover, the researchers believed that all the process or the activities which was included in the buying process before or after purchased which has made by most people around the globe will affect their personal experience towards the companies itself. This is not just about the marketing strategies which was decided internally within the companies and applied externally with the goal to capture or attract the consumer’s attention. “Experience” is the core element within the consumer to ensure that they can be loyal and stick to the companies even the conditions of marketing strategies are not met.

 

E-Loyalty

In the online space, Anderson and Srinivasan (2003), described loyalty as the most pleasing attitude which resulting in repeat purchase behaviour towards electronic business. In other words, it is defined as consumer’s intention to stay constancy buying products or services from the same website rather than shifting to any other website (Flavián et al., 2006). This shows that, the same of online activities happen in the same website is cause to repetitive purchase, which considered as online loyalty. Looking into the definition given by Cyr, Head and Ivanov (2009) is kindly the same as, they describe e-loyalty as consumer positive intention to revisit the website and the service again in the near future. In this respect, Butcher, Sparks and O’Callaghan (2001) foreseen this term as long-term commitment between retailers and consumers in online environment where nevertheless, Hamid, 2008; Sohn and Lee, 2004, compile the term of e-loyalty is a perceived intention to go back to a particular website and engage with the same e-transaction. In addition, Reichheld and Schefter (2000) said that the fundamental rules for creating e-loyalty is applicably the same as offline though the seller or supplier must always improve their service faster and better, but still retaining the affordable price to the customers compare to offline service. Furthermore, in online space is unlikely as offline where the cost initially use for first six months of relationship is higher than brick and mortar. This is because e-loyalty involves the fulfilling of delivery commitments, quality of customer support, product presentation but the repeat customers ended up with spending twice than in the first customer acquisition cost for the long-term relationship, as long as they look forward to return again for the second purchase (Luarn & Lin, 2003). This shows the increasing of customer loyalty is important in the online spectrum.

 

 

 

 

 

E-Commerce

E-commerce is a transaction of selling and buying products or services between businesses, organization, household, individual, organization and government over the medium of computer network, known as Internet. In general, e-commerce are goods and services ordered on online between buyers and sellers (Wirtz 2001). In broader sense, electronic commerce is used to increase business a profitability, improving customer service and ability to deliver more faster of organizational performance with the utilization of computer network. It is not just for browsing product on online but it also important tools that enhance communication and transaction with all organization’s stakeholder (customers, suppliers, employees, managers, financial institutions, government and the public (Richard T. Watson, Pierre Berthon, Leyland F. Pitt, and George M. Zinkhan, 2008). Another definition of e-commerce is interpreted by other researcher, which defined it as the formulation of internal process using electronic link between trading partners. Internal process of e-commerce explained that e-commerce is more than online shopping, there are electronic communication between B2B businesses and fund transfer activities implemented with the cooperation of financial institutions such as the banks as it involves an online payment gateway. This supported by Laudon et, al (2017), which explained that e-commerce is digitally encompass of value exchange called as commercial transaction across organization and individuals in return of product and service.  The commercial transaction is important e-commerce because there is no commerce without exchange of value occurs. Besides, e-commerce can be illustrated into many categories such as business to business (B2B) e-commerce, business to consumer (B2C) e-commerce, consumer to consumer (C2C) e-commerce and business to government (B2G) e-commerce (Gary Schneider, 2007; James Ohene-Djan, 2008; Efraim Turban, Dave King, Jae Kyu Lee and Dennis Viehland, 2005; Dave Chaffey, 2006; Kenneth Laudon, Carol Traver, 2006; Hossein Bidgoli, 2003; Janice Reynolds, 2004. Furthermore, sharing business information, conducting business transaction and maintaining business sell-and-buy relationship is also considered as e-commerce activities which not just conducted through Internet but also Intranet and Extranet (Zwass, 1996 and 2001). Some of other definition is often heard that e-commerce is about selling, buying, exchanging information digitally via Internet (Turban, 2008) or simply known as business transaction via telecommunications networks (Turban, J. Lee, D. King and H.M. Chung, 1999). While Anjali Gupta (2014), give a details explanation of e-commerce is using electronic communication network as an intermediary to form a digital business transaction which interact between organizations, and between organizations and individuals to create, transform, and redefine relationships for value creation.

 

 

 

E-Marketplace

E-marketplace is an online market that consist of multiple buyers and suppliers required to exchange information, goods and services and also complete the transaction on virtual network which is facilitated by telecommunication channel (Zwass, 1999). On other side, e-marketplace usually involve Business-to-Business (B2B) e-commerce for the exchange of money in return of products and services but in electronical transaction. There are two types of e-marketplace which are private and public. Private e-marketplace is operated by single company and can be divided into sell-side and buy-side. Sell-side is selling a certain standard or customized products to the selected companies but buy-side is the purchase activities make from an invited supplier (Tuban et al., 2008). Besides that, e-marketplace is considered as economic incentives for most enterprise service, where it is a place for them to be able to promote and run an advertisement while reducing the marketing cost (Bakos, 1998; Gebauer, 1999; Afuah and Tucci 2001; Raisinghani and Hanebeck 2002; Ratnasingam et al. 2005; Yu 2006). On other hands, e-marketplaces is a place to eliminate price barriers, known as “search and compare” and “eliminated and compare” (Lee, 1998; Strader and Shaw, 1999; Grover and Ramanlal, 2000). Furthermore, White and Daniel (2004), argued that e-marketplace is an intermediate place between buyers and sellers to meet via single point of contact to communicate with each other. While Malone et al. (1987) and Clemons et al. (1993), found that e-marketplace is where numerous of potential customers and rivals gathered on a single network to deepen buyer-supplier relationships through exchanging goods and services offered.

Reliability, Safety and Timely in Customers’ Product Delivery Experience

Several studies about product delivery on online shopping has already been conducted in the past but limited to be found, though from the recent studies, the researchers have proved that product delivery are important subject on consumer purchase behavior (Chun Lin, Wu and Chang. 2010; Ziaullah, Yi and Akhter, (2014); Laras Putri, 2016). Besides, Ziaullah et al., (2014), have further their study on product delivery quality and found that reliability, safety and timely are considered as valuable service to make customer feel happy and better, which organized by supplier or e-store. Moreover, it is a must for online buyers seek for reliable, safe and timely delivery as essential and primary objective in online shopping environment. Therefore, Singh and Sirdeshmukh, 2000, explained that, it is a matter of competence where the e-retailer is capable to delivery their effort to fulfill the service as promised in a reliable and honest matter or not, as customers are anticipated and lean towards to purchase a desired product at home where they required a reliable performance provided, safety packaging received and within the timelines that has been estimated delivered at their destination as well. Furthermore, Chun Lin et al., 2010, Ziaullah et al., 2014 and Laras Putri, 2016 in their finding, reliability, safety and timely are contributing on playing a closest relationship between product delivery and customer satisfaction. However, up to this day, customer satisfaction is not reliable to measure and unable to understand deeply on consumer purchase behavior (Samson Lee, 2006). Cho et al., said that, over the past two decades, the momentum of customer relationship management in digital retailing has slowed down because many of companies has realized that by providing satisfactory experience is an uprising way to compete with organization (Berry, Carbone and Haeckel, 2002). So, mere satisfaction not enough for long term success for organization (Brakus, Schmitt and Zarantonello, 2009; Reichheld, 1996). Therefore, the hypothesis concluded as below:

H1: Reliability is positively affecting customers’ product delivery experience.

H2: Safety is positively affecting customers’ product delivery experience.

H3: Timely is positively affecting customers’ product delivery experience.

 

 

 

Customers’ Product Delivery Experience and E-loyalty

In earlier study on the concept of customer experience by Pine and Gilmore (1998 and 1999), the researchers observed that more company are putting their effort in services and compete with each other to see who are providing better customer experience, as referring to Robert Johnston and Xiangyu Kong (2011). This show that, nowadays, full attention is given towards quality of services received by customers has become a vital part in business organization So, Wang Wei (2011) and He Haoyu, concluded that, product delivery as well as its service quality has an impact on customer loyalty, hence, e-retailer need to serve better on experience satisfactory in order to boost up their retail sales performance. As a fine solution, in context of product delivery, Carbone and Haeckel (1994) said that anything that involved about service which is received by customer, their experience will be taken into consideration and to be evaluate whether it is good or bad.  It means that, in online shopping scenario, when customer is buying goods or services, it always comes with an experience, depends on their perception (Samson Lee, 2006). Besides that, customer experience also come with loyalty where an excellent shopping experience have positive relationship on e-loyalty (Christodoulides & Michaelidou, 2011). That is why Dwyer, Schurr & Oh, 1987; Evans & Laskin, 1994, explained that loyalty required for e-retailer and customer to support with each other in nourishing their mutual fidelity. Therefore, in recent survey found that, there is a high degree of connection between customer experience and loyalty, when the data is examined from surveys with data from 10,000 U.S. consumers and 3,000 UK consumers from 206 U.S. companies and 66 UK firms (Temkin, 2013). In addition, Christodoulides & Michaelidou, 2011; Ltifi & Jamel-Eddine, 2012; Mustafa, 2011, determined that loyalty has been studied by various marketing researchers. In the meanwhile, there is continuous relationship between the customer and a brand, in term of loyalty (Ltifi and Jamel-Eddine, 2012). But brand in this study is interpreted as E-commerce marketplace, customers will easily switch to any e-marketplace despite on any situation or problem encountered during the business process (Ltifi & Jamel-‑Eddine, 2012). Furthermore, loyalty is defined as repeat purchase behaviour of a same brand (Mustafa, 2011). Taken loyalty to perspective of online marketing, e-loyalty is customers’ attitude towards an e-commerce that leads to a repeat buying behaviour (Anderson and Srinivasan, 2003). Therefore, the fourth hypothesis is below:

H4: There is positive relationship between customers’ product delivery experience and E-loyalty towards E-commerce marketplace.

9.0 THEORETICAL FRAMEWORK

 

Reliability

 

 

Flexibility
E-loyalty
Timely Delivery
Customers’ Product Delivery Experience
Safety

 

 

CHAPTER 3

 

RESEARCH METHODOLOGY

 

1.0 RESEARCH DESIGN

There are two kinds of methodology can be used in conducting a research which are qualitative methods and quantitative methods. Each of the methodology mentioned have their own strengths or weaknesses depends on the types of study and what are researchers looking for to solve the issues in the research. Qualitative research can be applied by interviewing focus groups that related to the study where in-depth information is gathered. This research method gives researchers the opportunity to study on the environment surrounding the prospects as it involves the feelings and thoughts of people, so this is the way to observe people and their interactions when dealing with a certain situation. While quantitative research is more focused on numbers and data as it involves statistical analysis, test based on the data collected earlier, to confirm the hypothesis is corresponding or contrary to the theory (Jha 2008). Therefore, this study was conducted only by utilizing quantitative methods by collecting numerical data from the questionnaires prepared by the researchers, while qualitative methods is the inductive way using multiple choice questions to improve theories by gathering non-numerical statistics, which was not used in this research (Saunders et al, 2012).

 

2.0 SAMPLING DESIGN

2.0.1 Population

Population can be defined as totality or aggregate of those conforming to a set of specifications as according to Polit and Beck (2004). The term population refers to “the entire group of people, events, or things of interest that the researcher wishes to investigate. It is the group of people, events or things of interest for which the researcher wants to make inferences based on sample statistics” (Sekaran and Bougie, 2010).

 

According to the official article of International Trade Administration (Export.gov, 2017), the distribution of active Internet users in Malaysis are estimated about 22 millions (68% of total populations) and 15.3 millions (50% of total population) of them are online shoppers.

 

2.0.2 Sample Size

The purpose of sampling is to obtain data which a representative of population without spending time and cost involved for studying the entire population (Sekaran and Bougie, 2010). Given 15.3 millions of the population of online shoppers, 500 respondents were chosen which consists of internet users selected to help answering the questionnaires while conducting this study. As referring to Krejcie and Morgan (1970) cited in Sekaran and Bougie (2010, p.295) have simplified the size decision by providing a table that ensures a good decision model. The present study has considered these suggested figures relating to the selection of sample.

 

 

 

3.0 SAMPLING METHOD

There are two kinds of sampling method used as a technique for selecting a sample as the respondents from a population which are probability (cluster sampling, systematic sampling, stratified sampling and simple random sampling) and snowball sampling, judgement sampling, quota sampling and convenient sampling for non-probability.

 

However, in this study, the researcher used convenient sampling to collect the data as according to Sekaran (2009), convenience sampling is where subjects are selected from non-probability sampling technique because the respondents are selected without pre-specified or known probabilities and it is convenient accessibility as well as proximity to the researcher.

 

 

 

4.0 PROCESS OF DATA COLLECTION

Data collection is the process of gathering data from selected participants, according to Burns & Grove (2001), where questionnaires were used and distributed to the chosen customers that have experiences of shopping on online store before. The customers are guided by the researcher on how to answer the questionnaire correctly and the data was collected by the researcher.

 

Questionnaires were distributed to selected respondents.
Questionnaires were developed.

 

 

 

Guided to answer the questionnaires.
The questionnaires were collected and the data was analysed.

 

Figure 11: Process of Data Collection Model Developed for this research

 

5.0 RESEARCH INSTRUMENT

5.0.1 Primary Data

According to Hox & Boeijie (2005), primary data is where the data were collected and gathered for specific problem at hand which is solely for a research assignment by researcher, by using procedures that fit the research issues. Besides that, primary data are original in nature. Therefore, these data that will be used in this research is taken from the questionnaires, as no one has compiled and published the information in a forum accessible to the public yet.

 

5.0.2 Secondary Data

For secondary data, according to Hox & Boeijie (2005), it consist of the materials created by other researcher to be reuse by general research community. These materials may available in written, typed or in electronic forms, such as articles, journals, reports, books and the Internet. So, these data then become a secondary data for the current users if the researcher used it in this research.

 

5.0.3 Development of Questionnaires

Surveys method is used as a standardised questioning procedure applied equally and consistently to all participants (Pickard, 2007:95), even it is very popular because credible information can be collected timeously at a relatively low cost, especially when compared to other research methods (McMillan & Schumacher, 2001:305). Therefore, the researcher developed the questionnaires based on a reviews of the literature (Chung, 2001) as the tool for data collection and distributed it to the respondents to collect the data based on their experiences by refering to the variables that have been discussed in the previous chapter.

 

5.0.3.1  Questionnaire Design

There are two types of question;

  1. Demograhic Profile
  • Closed-ended Question

It is easy to be asked and can obtain the result quicker.

  1. Measurement
  • Likert Scale

It is used to identify how strong the respondents agree or diagree with the questions asked based on five points scale.

Strongly Disagree Disagree Neutral Agree Strongly Agree
1 2 3 4 5

 

 

 

 

6.0 TYPES OF ANALYSIS

All data collected will be keyed in and analyzed for its frequency, values of means and realibility. Statistical Package for Social Science (SPSS) 20.0 software is used for this purpose.

 

PART OBJECTIVES NO. OF QUESTION TYPES OF ANALYSIS
A Demographic Profile 1-10 Analyis of Frequency
B1 Customer Satifaction 1-3 Analysis of Mean
C1 Reliability of Product Delivery 1-4 Analysis of Mean and Reliablity
C2 Safety of Product Delivery 1-4 Analysis of Mean and Reliablity
C3 Timely of Product Delivery 1-4 Analysis of Mean and Reliablity

 

 

 

6.0.1 Reliability Analysis

Reliability test is used to build up or improve reliable measurement scales. It is also used to evaluate the scales that are used in the research. Additionally, Cronbach’s Alpha is a crucial number used to be considered as numerical coefficient of reliability. According to George and Mallery (2003), there is a scale to interpret the Cronbach’s Alpha.

Internal Consistency Cronbach’s Alpha (α)
Excellent α ≥ 0.9
Good 0.9 > α ≥ 0.8
Acceptable 0.8 > α ≥ 0.7
Questionable 0.7 > α ≥ 0.6
Poor 0.6 > α ≥ 0.5
Unacceptable 0.5 > α

 

Regression Analysis

Use to define and test the relationship between dependent variable and the proposed independent variable.

Multiple Regression Analysis

  • This analysis is adopted when the researcher has one dependent variable which is presumed to be a function of two or more independent variables. The objective of this analysis is to make a prediction about the dependent variable based on its covariance with all the concerned independent variables (Emory C. William, 1976).
  • Therefore, the significance level of reliability, safety and timely of product delivery is measured towards customers’ satisfaction on online shopping, and the result generated from SPSS (R-squared) value is to determine whether all of the independent variable are sufficient.
  • Then, most significant independent is determined. Also, it is important to confirm or disconfirm the hypotheses discussed, because the valid regression of hypotheses influencing the determinant of theoretical framework.

 

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