Sample FYP
Sample FYP
Introduction
According to Muther C (2013), society nowadays are getting lazier and anxious. They tend to
need to complete things rapidly without much exertion put in. In this way, the introduction to
innovation additionally adds to this impact. Innovation impacts profoundly into the buyer's Commented [TSAR1]: these
life and their conduct. Wild way of life is the greatest commitment factor that lead client to Commented [TSAR2]: Citetations
decide on internet shopping. Moreover, innovation’s introduction has enabled customers to Commented [TSAR3]: citetations
play out the majority of their everyday exercises on the web (Labrecque et al.,
2013).Shopping, charges instalment paying bills, managing an account et cetera and so on is
presently accessible in another stage where buyers can play out this exercises in their own
convenience without stepping out of their comfort zone (Shanthi and Kannaiah, 2015).
One good example of innovations that complement busy life would be online shopping.
Online shopping has shown tremendous growth in the past years despite of uncertainty of the
world economy today (Lim and Ting, 2012). A research conducted by Ueno in 2012 showed
that the online shopping market in Malaysia is expected to increase to over RM1.9 billion in
2016 (Ueno, 2012). Furthermore, Muda, Mohd and Hassan (2016) has conducted a study that
shows the overall online shopping trends in the late 2000. Notably, over 875 million
consumers have shopped online. The number of online shoppers has also increased up to 40%
in the last two years. Among Internet users with Internet access shopping, the highest
percentage for online shopping is found in South Korea (99%) and United Kingdom (97%).
Moreover, more recent statistics by Forrester Research Incorporation predicts that online
retail revenue will grow from $191.7 billion in 2011 to $248.7 billion in 2014, representing
an 8 percent compound annual growth rate (Schonfeld, 2010).
According to (Kau, et al., 2003), by development and increment of the online shopping trend
because of its convenience, numerous companies and enterprises are finding it as an
opportunity to join in order to stay competitive and thus have spent a considerable amount of
resources in a quest to retain and expand customer base. Through online shopping consumers
can buy faster, more alternatives and can order product and services with comparative lowest
price. This will promote an intense competition in the market. In order to remain competitive,
online organizations need to know compelling courses on the best way to fulfil their client's
needs and needs (Cuneyt and Gautam 2004).
According to Cai and Xu (2006), through electronic advertising and internet communication,
organization are planning diverse showcasing exercises, for example, market research,
product development, advise customers about product features, promotion, customer services,
customer feedback and et cetera. Hence, internet shopping is utilized as a medium for
communication and electronic trade which focuses in enhancing in esteem, quality and appeal
of conveying customer's advantages and better fulfilment (Chakravarty, Kumar and Grewal,
2014).Thus, is the reason why online shopping is more preferable and liked by the general
society. Not only benefits but also risk is associated with online shopping. Generally
speaking internet users avert online shopping because of credit-card fraud, lack of privacy,
non-delivery risk, lack of guarantee of quality of goods and services. Liao and Cheung (2011)
mentioned that "Fraud-free electronic shopping" was presented by UK in the mid-1995 and
following two years Europe and Singapore presented secured electronic exchange (SET).
The main theme of the study is to know the factors that influence the consumer’s satisfaction
towards online shopping. Researchers will also focus on how consumers form such attitudes
with the help of models and who are truly the online shoppers.
1.2 Problem Statement
The development of online shopping platform has not only brought convenience but also
threats to consumers (Morath and Munster, 2017). Threats that may harm consumer’s mental
health and security issue. According to an article by Useem (2017), consumers these days are
more conscious towards using online shopping due to the increase in security threats and
online shopping frauds. Therefore, more online shopping platform has difficulty in pursuing a
consumer’s purchase intention as most consumers are worried on their personal security and
privacy issue (Cite). As purchasing online are only made viable through credit card or debit
card payment. Consumers lacking of website exposure tend to worry that their personal
information or credit card information may be stolen, leaked or misused (Shimeall and Spring,
2014). According to Knijnenburg and Kobsa (2013), about 30% of consumers tend to
reconsider purchasing online due to privacy and security matter. Even so, most consumers
would research on the platform’s background or review before making purchase payment
Past studies by Schimmel and Nicholls (2005) shows that online website that is categorised,
user-friendly and has a theme tend to have more sales as consumers have more interest
towards website that are simple, easy to understand and attractive. (No link with previous
sentences).Thus, most online website that are not receiving positive response tend to be
lacking in contributing aspects. Contributing aspects consist of aspects such as user friendly
website, interactive chat box, web design and many more. These are the kind of aspects of
online website that may influence a user’s liking and adaption towards online shopping (Lee
and Yurchisin, 2011). As new users just started adopting this new digitalized platform, online
website that are not user friendly or contain website design that are complicated may deduce
user adoption and liking level towards online shopping. Therefore, this research will
investigate attitude and behaviour of millennials towards online shopping. aspects of online
website also contributes hugely on the factors towards of influencing customer satisfaction
towards online shopping.-
1.3 Research Question
Research Question:
RQ1: are the design of the online shopping portal influence purchase satisfaction of
[Link] elements to consider when designing an online website?
RQ2: How the reliability aspect of online shopping affect millennials purchase satisfaction
towards online [Link] influence reliability factors in consumers towards an online
website?
RQ3: how convenience consumers especially millennials feel when navigating online
shopping What determinants enhance the convenience on navigating the online website?
Research Objectives:
RO1: To study the ability of online shopping portal design in influencing online shopping
satisfaction among millennialsthe elements to consider when designing an online website
RO2: To identify the influence of reliability aspect of online shopping portal in influencing
purchase satisfaction among [Link] in consumers towards online website
RO3: To study the effect convenience of in navigating online shopping portal that will affect
satisfaction among [Link] the different types of determinants that enhance
the convenience in navigating an online website
1.5 Scope of study
The main purpose of this research is to study the factors that influence customer satisfaction
towards perception of generation Y in Klang Valley, Malaysia. This research targets on the
perception of generation Y in Klang Valley area. In a research conducted by Mansori, Cheng
and Lee (2012), it has stated that generation Y has more purchasing power and demand
towards online shopping. According to an article by Bump (2014), Generation Y are the
people born between 1980 and early 2000. Some suggest this social group also includes
individuals who are a few years younger. Upon a deeper consideration, it turns out that the
generation is a strong target group for all consumer goods and an array of services (Chung
and Holdsworth, 2012). This leads us to realize the weight of the habits, lifestyle, attitudes
and shopping preferences the group displays. According to a research conducted by Gemius
Global (2013) research, it shows website is ranked number 1 source of information on
financial products with a statistics of 54% in the age group 18-24 and 51% in the age group
of 25-34.
On the other hand, Klang valley area is located in the centre of Kuala Lumpur where it
contains the largest amount of residence where there are approximately 11.8 million
generation Y aged 18 to 35 in Klang Valley (Staff, 2014). This is the crucial time to conduct
this research study as everything is going digitalized even those in generation X and Z are
also getting influence by how convenient it is. Therefore, this research study was conducted
to understand how to influence more customer satisfaction towards online shopping.
Do you have any example of online shopping portal?
The significant of this study is to determine the different types of factors that may influence
to customer satisfaction towards online shopping platform under the perception of generation
Y. the three types of factors that examined in this study would be online shopping portal
design, the reliability aspect of the online shopping portal and the convenient aspect of the
online shopping portal. Besides, another reason behind this research is because there are not
much past studies of factors influencing customer satisfaction towards online shopping
conducted especially on perception of generation Y. Next, another purpose is also to identify
what kind of factor plays the most contributing role towards customer satisfaction in online
shopping. In order to do so, researcher have to understand the perception on generation Y in
terms of needs, trends, consumer behaviour, spending pattern and many more.
Furthermore, this study also examines the relationship between elements of website design,
reliability and convenience that may affect the customer’s satisfaction towards online
shopping. The findings of this study are valuable to marketers to make better decisions on
their online marketing strategic plan. Moreover, the outcome of this study adds values to
marketers. The available business resources may be utilized to improve the key features that
can directly increase customer satisfaction, as well as retaining their loyalty towards online
retailers. Most importantly, online marketers could avoid spending their valuable resources
on online retail features that may not positively influence customer satisfaction and loyalty.
This would give a huge advantage to the online retailers to promote long-term business
growth by creating loyal customers.
Chapter 2
Literature Review
With the rapid technology enhancement, Mckinsey and Meyer (2017) found out most of the
retail stores today are going e-commerce in order to keep up with the trend and to earn extra
income in another platform. The soul of the retail website which guides and leads consumers
to search for information and make their purchase online is the website design. According to
Luo and Zhang (2012), it states that a good website design helps impose the mind set of
website reliability especially to first time consumers. A website design helps determine
consumer overall experience for purchasing online transaction. In general, the website
represents the company’s virtual profile as this one website may affect the company’s overall
branding (Luo and Zhang, 2012).
Based on the study conducted by Fang and Salvendy (2003), there are various elements to
compile in order to create a good website design. Some of the elements includes page layout,
product comparison, interaction chat box, search box, price comparison and many more.
These elements plays a big role in helping a first time user to purchase a transaction. On the
other hand, Hu (2012) stated that various elements and the amount of element on the website
plays an important role to consumer experience. The types and numbers of graphic content
and information in a website page helps consumer to understand better.
Not only that, Jong Suk (2011) has found that website design not only attract consumers
through graphic content but also stimulate consumers to have a sense of flow when using the
website. This sense of flow develop from the elements of website design intrigued consumers
to be concentrated and attached to the website while stimulating consumers to spend more
time on the website or have a possibility of revisiting the website (Jong Suk, 2011)
Furthermore, the element of interaction chat box act as a company’s personal assistant that
helps stimulate consumers to be more interactive and engaging in reviewing feedback on
website, company and products (Mhatre et al, 2016). Past studies by Ro (2013) have found
that consumers are less-likely to fill a complaint on company, employee or products in a face
to face manner. Whereas, consumers are most likely to fill a complaint or feedback through
the website as they are not involved in that situation physically. Thus, the consumers would
not have to deal with the unforeseen circumstances in reality. Therefore, the interactive chat
box allows consumers to be able to engage directly with the company personal assistant
regarding the issue. (Mhatre et al, 2016)
2.2 Convenience
The factor of convenience is one determinants to influence consumer to get hands-on for
online shopping (Jiang, Yang and Jun, 2013). Potential consumers coming from generation Y
are often committed to tight working or study schedule or a family. As working and study
schedule usually works on weekdays from morning to evening, and they usually have their
dinner after working (Sunshine coast daily, 2015). Thus, the only days left to purchase their
needs would be on weekend. However, weekend is usually a time for family time or short
vacation breaks. Therefore, with the convenience of online shopping, consumers under the
perception of generation Y would be a great target market.
Convenience is also known as a noun that is often used on anything that saves time or effort
(Dai and Salam, 2014). Convenience comes in many form such as convenience food,
convenience store and other forms where the situation helps an individual to be efficient. As
for online shopping, Regan (2002) argues that the convenience of online shopping where
consumers are able to compare prices and product brands while expecting a fast delivery is
one of the main reason that influence most of the working adults to purchase their daily uses.
Thus, consumer need not to spend additional time and effort to drive to the store, comparing
products aisle to aisle and queuing to make the transaction payment.
Online shopping can give customers more ways to secure purchases, solution and services
over the net and with lower customer service fees, hence a greater level of customer
satisfaction can definitely be attained (Forsythe et al, 2006). By using online shopping
platform, this can all be granted without hassle. Not only that, customers are capable of doing
these particular transactions within the comfort of their own personal space. Khalifa and Liu
(2007) discovered that this trend offered in online sales is influenced by the affinity with the
computer, the convenience and customer’s involvement in the auction.
The convenience has been deemed as essential factor in information technology popularity
(Vigoroso, 2001). Hence consumers with more confidence in using online websites.
On the other hand, based on a report by Ernst and Young (2000), it is stated that consumers
are able to adjust their own preferred time to shop online as online shopping is available
24hours everyday unless the website server is on maintenance. Besides, retail website consist
of a wide range of product categories, brand, price and information. Sharma and Krishnan
(2002) argues that this concept of product comparison helps consumer virtually assure the
type of product needed without much effort needed to put in.
If consumers were to compare products and prices in reality, consumer would have to
sacrifice their time and effort going from one store to another just to compare the product
availability. According to a survey conducted by Vigoroso (2001), it is found that almost
50% of consumers use the convenience of comparing products online in order to purchase for
the products in retail store. Nevertheless, this is still a win-win situation for the company as
consumers still purchase the products either offline or online.
2.3 Reliability
The factor of reliability alludes to consumer's capacity to depend on the service of the retail
site (Rule and Friedberg, 2005). Consumers whom received good feedback or reviews about
the retail website would have the capacity to build up a reliability attitude to buy shop online.
According to Tan and Thoen (2000), trust is one of the essential factor in influencing the
online site to work, as without trust, the online site would not have the capacity to make any
profit. There are a few methods used to build the reliability factor which includes advertising
a message that is persuading on the organization's trustworthy and security level (Wang and
Emurian, 2005).
According to Rule and Friedberg (2005), the reliability factor alludes to the purchaser's
eagerness to take risk of exposing their privacy in order to make an online purchase. Hence,
reliability comes in different structures, for example, product quality, service delivery,
organization’s website security and safe payment method. When consumers pick up a
reliability trust on the retail website, customers have a higher possibility of repeating their
purchase (Widham and Orton, 2000).
Chellapa (2002) focuses on issues of privacy and security in his research where he found
about 61% of his respondents would continue with their transaction on the internet if their
privacy and personal information are safely protected. Subsequently, this demonstrates the
essentialness of security in online shopping as it is one of the primary factors that is
considered when a consumer settles on a choice to purchase online. Hence, having a trusted
website with extraordinary security encourages consumers to be more certain with the retail
website and feel fulfilled with their retail adoption in the long run.
2.4 Customer Satisfaction
The key to retaining long- term customer and customer loyalty is through customer
satisfaction. According to Jayakanth and Adalarasu (2016), customer satisfaction can be
characterized as a consumer's sentiment pleasure or dissatisfaction coming about because of
contrasting a product's perceived performance in connection to their desire. Not only that,
satisfaction is characterized as the happiness of the customer with the purchasing experience
through the retail website. Hence, satisfaction in online shopping is customer's judgment of
their internet website experience when contrasted with their involvement with their brick and
mortar stores experience. As customer satisfaction mirrors the level of a customer's positive
inclination about the organization, therefore, it is imperative for the organization to
comprehend customers' impression of their service in order to predict the level of customer
satisfaction that the organization has achieved (Dr. K. Vanitha, 2012).
Customers' satisfaction with a specific organization are relied upon their eagerness to make
more online purchase from the organization. Hence, more noteworthy customer satisfaction
prompts more prominent purpose to repurchase (Christodoulides G., and Michaelidou N.,
2011). According to Anderson and Srinivasan (2003), consumers with high level of customer
satisfaction will diminish the apparent need to switch retail website, therefore expanding
customer repurchase and at last improving productivity and profitability of the organization.
As Alkilani, Ling and Abzakh (2012) strongly argues that satisfaction will emphatically
impact consumer's commitment to the organization.
2.5 Conceptual Framework
According to Lim and Ting (2012), Technology Acceptance Model (TAM) that is developed
by (Davis, 1989) which is also known as an extension of Theory of Reasoned Action Model.
However, Technology Acceptance Model (TAM) is an information system theory that sets
out to study the user’s acceptance towards particular system. This theory as it is commonly
used theory while studying consumer’s attitudes towards online shopping (Gefen, Karahanna
and Straub, 2003). As online shopping is a modern technology and in our research we are
going to study different factors that influence consumers attitudes towards online shopping,
such as website design/ Features, website convenience and website reliability. Hence, this
model will help marketers understand how consumer form attitudes towards particular system
and in our case it is online shopping.
The Technology Acceptance Model also known as TAM proposes that the perception or
convictions about the advancement of technology are instrumental in the development and
improvement of mentalities attitude that will in the long run outcome in the system utilization
behaviour (Tarhini et al, 2016). It additionally places that the real system use is dictated by
every user's behavioural goal of usage, which is thus impacted by every user's mentalities
towards their usage adoption. At last, the mentality is straightforwardly influenced by the
usefulness and ease of use of the system. In spite of the fact that this model was initially
considered to display the adoption of information system in the working environment (Gefen,
Karahanna and Straub, 2003). Researchers in the territory of consumer behaviour have
distinguished two particular measurements which are applicable to online shopping which
includes the perceived ease of use and perceived usefulness of the retail website (Lim and
Ting, 2012).
Chapter 3
Research Methodology
As for this research study, researchers have planned to use quantitative research technique.
Based on the study conducted by Basu (2017), quantitative research method presents
numerical information and manipulation of surrounding observation to describe and
clarifying the wonders in light of the observation study directed. Hence, quantitative research
technique is a sort of research that clarifies a phenomena situation through measurements of
numerical information that are gathered to break down the data and analyse (Ortiz, 2007). In
this manner, quantitative research method is appropriate for this research study.
As Rahman (2016) strongly argues that quantitative research as a research procedure that
stresses evaluation in the accumulation and examination of information where quantitative
research indicates amounting something. This research strategy endeavours to explore the
responses to the inquiries beginning with what number of, the amount, to what degree as it
were, the technique lays overwhelming weight on measuring something or factors existed in
the social world (Wang, 2015).
Basu (2017) stated that quantitative research method ordinarily utilizing deductive rationale,
seeking regularities in human lives by isolating the social world into exact parts called factors
which can be spoken to numerically as frequencies or rate. Not just that, quantitative research
method concentrates on those parts of social conduct which can be evaluated and designed as
opposed to simply discovering them and translating their implications the general population
convey to their own particular activity The quantitative research discoveries are probably
going to be summed up to an entire populace or a sub-populace since it includes the bigger
example which is haphazardly chosen (Ortiz, 2007).
Population represents the total living types of a similar species which live in a specific
geographical land territory and has the ability of interbreeding. In any case, sample size
includes the selection of a number of investigation units from a defined study population
(Stallard et al., 2016). Hence, sample size is equivalent to population but just smaller in size.
The sample size for the population is determine using the Krejcie and Morgan table. (Krejcie
and Morgan, 1970).
The questionnaire research would be conducted on a total sample size of 384 only on
generation Y. By using the Krejcie and Morgan table measurement, researchers are able to
calculate the sample size of 384 from a total population of 11.8 million of generation Y
located in Klang Valley area (Staff, 2014) The sampling method used would be probability
sampling or also known as random sampling, where this method identifies a target population
and individuals to be chosen at random (Bondesson and Thorburn, 2008). Therefore,
everyone in the target population has the same chance of being selected.
Table 3: Krejcie and Morgan table measurement (Krejcie and Morgan, 1970).
Next, researchers have intended to utilize the instrument of questionnaire survey with a
specific end goal to gather the information required. As questionnaire survey are close-ended
inquiries and the inquiries asked are straight forward (Wright, 2006). Hence, the researchers
would have the capacity and capability to gather the particular information required so as to
produce an exact desired outcome. Besides, questionnaire surveys is the most common
technique used to gather information from the quantitative research method. Thus, every one
of the information are standardized where they are gather from same target group of audience
with consistence question. Not only that, questionnaire survey comprise of a comparative
course of action of request with the goal that the researcher can gathered the information
together which are then gathered in a measurable frame to form statistics ( Campbell, 2004).
The questionnaire consists of one introduction page and 3 main part where it covers on the
individual’s perceived information on their demographics and also their perceived value and
thoughts on the factors such as elements of website design, convenient and reliability factor
that may influence customer satisfaction towards online shopping.
Questions such as consumer’s race, age range, occupation, state, monthly income, degree of
education level and gender helps marketers to identify the type of target market that
contributes widely towards online shopping. Next, questions such as how often consumers
spend their time and frequency towards online shopping are also included to understand the
consumer’s online shopping attitude.
The first part of this questionnaire would discuss on the different types and approach of
website design elements such as interactive chat box, fonts and page layout that may
influence customers to increase purchase intention and satisfaction. This part focuses on
identifying and distinguishing the type of website design that is expected from consumer’s
point of view.
Part C: Reliability
The second part of the questionnaire explains on how consumers feel and perceived on the
basis of their reliability such as security and trust factor. This questions are aimed to identify
the consumer’s opinion in order to reassure consumer’s reliability towards the online website.
Reliability Questions
Part D: Convenience
The third part of the questionnaire will cover the questions relating to factors of convenience
that is influencing consumers to shop online.
Convenience Questions
3.4 Hypothesis
H1: There is a significant impact of website design elements towards customer satisfaction on
online shopping
H4: There is a relationship between website design, reliability and convenience determinants
that influence customer satisfaction towards online shopping
The measurement tool that was utilized in this research study in order to analyse the data is a
5 Point Likert Scale. The Likert scale is often used as a common measurement tools for
questionnaire survey as it is easier to compute and analyse the data with the Likert scale (Kim,
2011). The Likert scale is called 5 points as there are five options given for the respondent to
choose where these five options links to a specific result or outcome. The 5 points consist of
1=Strongly Disagree, 2=Disagree, 3=Uncertain / Not applicable, 4=agree and lastly,
5=Strongly Agree.
Besides, the Liker Scale was first developed by Dr. Rensis Likert where his goal had lead him
to create this measurement tool. As Dusa and Frunzaru (2011) strongly argues that Dr. Rensis
Likert had the ambition to measure psychological human behaviour in the most basic and
easy scientific way. Hence, the usage and implementation of Likert scale has brought many
attention and interest to researchers and marketers in their research study as the Likert scale is
easy to use and it is simple to understand and compute (Kim, 2011). Hence, respondents also
find Likert scale amusing whereby the respondents too enjoy in completing the questionnaire
study survey.
With the information gathered, the researchers would then utilize the SPSS programming
otherwise called Statistical Package for the Social Sciences to investigate the information
gathered. As mentioned by Hilbe (2003), the "Statistical Package for the Social Sciences"
(SPSS) is a package of programs used for controlling, analyzing, and showing information.
Hence, the package is generally utilized as a part of the social and behavioral sciences. The
upside of SPSS is that there are an extensive variety of web-based calculators accessible free
of charge for consumers, and the quality of these service is genuinely up to par level (Hilbe,
2003).
3.6.1 Anova
Another analysis tools used in this research study is ANOVA. ANOVA is an analysis
technique used for testing the speculation that there is no distinction between at least two
populations implies where it is usually three. Besides, ANOVA is likewise regularly utilized
for testing the hypothesis speculation that there is no contrast between a quantities of
techniques (Tarlow, 2015).
Henceforth, in this research study, "One-Way ANOVA" would be utilised as it is where the
perceptions are partitioned into fundamentally unrelated categories, giving the one-way order.
As each of the population is typically disseminated within a similar variance or otherwise
called homogeneity of variance (Zwanenburg et al., 2011).
As Andreassen et al. (2015) mentioned the most mainstream test of reliability used by
numerous researches is Cronbach's coefficient alpha also known as (Cronbach's alpha). This
popular test often used by researchers to conduct research study, test on the consistency of
respondent's answers to every one of the items in the research study measurement. The
Cronbach alpha measurement is where if all variables surpass 0.7, it makes the variables
worthy, in reality since they go for 0.7 to 0.9, they are satisfactory to incredible measures.
Research questions will demonstrate the legitimacy of research. Legitimacy or validity is if
the statements that are designed in genuine terms measure what is really intended to research
study measure (Avan and Heide, 2009).
As most of the research questions are being extracted from previous literature done in the
area of consumer satisfaction towards online shopping which proves the validity. The
questionnaire is closely linked with the research questions as part B, C and D of the
questionnaire deals with questions pertaining to each of the factor that can influence
consumer to shop online. The questionnaire is constructed in a way that it does not alienate
the respondent, as sensitive questions in nature such as income and age are asked at the later
part of the questionnaire so to avoid from the risk that respondent can terminate the survey.
Chapter 4
4.1 Introduction
This chapter is aimed to discuss the analysed results calculated from the information data
collected from the questionnaire survey. The results generated from the data analysis tools
will provide an answer to the research questions which is the factors the influencing the
customer satisfaction towards online shopping. At the end of this chapter, the researchers
would get to further understand the study in order to achieve and reach desired objectives of
customer satisfaction towards online shopping.
In this chapter, there are various test conducted which includes frequency test, descriptive
variable test, One-Way Anova Test, correlations test, regression test and lastly, reliability test.
All these test are conducted to analyse the data gathered in the research study.
Therefore, it can be seen from the frequency test study above that the age group of 19-29
mostly females with a bachelor of degree/ Masters or PHD and are often single status
individuals often purchase online. Not only have that, the monthly income of RM1000 and
below tended to shop online 2-3 times a month. This is the results from the frequency test
conducted on the demographic variables.
The descriptive variable test measures the mean and standard deviation for each independent
and dependent variable research questions conducted in the questionnaire survey study. The
three independent variables that is discussed in research study is website design, website
reliability and website convenience with the dependent variable of consumer satisfaction.
4.3.1 Website Design
As seen above in table 8, it shows the descriptive variable test conducted for the independent
variable of website design research question in the questionnaire survey study. The highest
calculated mean is 4.0128 for the research question of “I believe that familiarity with the
website before making actual purchase reduce the risk of shopping online.” with the standard
deviation of 0.85963. However, the highest calculated standard deviation goes to the research
question of “The interactive chat box allows me to communicate my opinion with other
consumers.” with the calculated mean of 3.7066.
Upon the descriptive variable test conducted on the independent variable of website
reliability. The highest calculated mean refers to the variable of “Security safety certificate
makes me feel confident to shop online.” with the mean score of 3.9413. Hence, the lowest
mean calculated belongs to the variable of “I feel safe and secure while shopping online.”
With the mean of 3.2168.
Meanwhile, the highest standard deviation calculated belongs to the variable of “I can rely on
the online website to receive my purchase on time.” with the standard deviation of 0.94294.
In contrast, the lowest calculated standard deviation is 0.88341 with the variable of
“Consumer’s positive feedback in the interactive chat box makes me feel secure and safe”
Researchers have discovered that the highest calculated mean belongs to the variable factor
of “I can buy the products anytime 24 hours a day while shopping online.” with a score of
4.0638. While the lowest calculated mean score belongs to the variable factor of “The
website provides detail information available” with the score of 3.6633.
Hence, the researchers have also calculated the standard deviation score where the highest
score is 1.08739 with the variable factor of “Online shopping requires less time in evaluating
and selecting a product while shopping online.” Meanwhile, the lowest standard deviation
score belongs to the variable factor of “The website allows me to search and select the right
product in a short period of time.” With the score of 0.85885.
Consumer Satisfaction
Mean Standard Deviation
Convenient and Time Saving 2.5357 .61420
Low Price 2.3342 .71381
Product Variety 2.4643 .64665
Available to purchase rare products 2.4617 .66982
Price 2.5408 .62625
The way of solving your complaint 2.2219 .69284
Loyalty for the online website 2.2474 .66131
The speed of delivery 2.4260 .68944
The differences between your expectation and the
2.3980 .66694
real products or services
The service quality of sellers is important 4.4337 .74716
You will tell your friends and family if you are
4.3444 .75097
satisfied with the products
Based on the table 11 above, it can be seen that the variable factor of “The service quality of
sellers is important” has garnered the highest mean of 4.4337 while the lowest mean is
2.2219 with the variable factor of “The way of solving your complaint.” This discussed that
the most respondents do not put importance on the way the organization puts effort in solving
the consumer’s complaint.
In the meanwhile, the researchers has identify the highest standard deviation belongs to the
variable factor of “You will tell your friends and family if you are satisfied with the
products.” with the score of 0.75097 while the lowest standard deviation score is 0.61420
with the variable factor of “convenient and time saving. Whereas, this explains that most
respondents do not emphasize on the convenient and time saving factors of online shopping.
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.751 .751 5
Based on the reliability test statistics table above, it has shown that the Cronbach’s Alpha is
0.751 based on the 5 numbers of items calculated which indicates that the website design
research questions in the questionnaire survey is relevant with the independent of website
design discussed.
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.756 .756 5
According to the Cronbach’s Alpha of 0.756 on the 5 items, it shows that the relevance of
website reliability with the research questions.
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.588 .594 5
Table 14: Reliability test statistics on website convenience
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.782 .793 11
Based on the table 15 above, it shows that the highest score of Cronbach’s Alpha of 0.793 on
the study of 11 items. This shows that most of the consumers can relate to the items discussed
in the questionnaire survey study.
F Significance
Between Groups 3.153 .014
Table 16: One-Way Anova test for consumer satisfaction with Website Design
The researchers have identified and analyse the website design independent variable with the
customer satisfaction dependent variable which came out with the result of 0.14 significance.
This independent variable consist the lowest significance compared to the other independent
variable
F Significance
Between Groups 2.284 .060
Table 17: One-Way Anova test for customer satisfaction with Website Reliability
According to Table 17 above, it can be measured that the significance is 0.060 between the
customer satisfactions with website reliability, thus this makes the second highest
independent variable to be responsible in achieving the outcome of customer satisfaction
F Significance
Between Groups 0.876 .454
Table 18: One-Way Anova test for customer satisfaction with website convenience
Based on the One-Way Anova test conducted on the independent factor of website
convenience with customer satisfaction, it can be seen that the calculated significance is the
highest among all three independent variable standing with a score of 0.454. Thus, this
indicates that most respondents find that the website convenience links and carries the most
importance towards customer satisfaction in online shopping.
Correlations
Website Website Website Customer
Design Reliability Convenience Satisfaction
** **
Website Design Pearson Correlation 1 .355 .209 .160**
Sig. (1-tailed) .000 .000 .001
Sum of Squares and
176.316 65.679 36.209 17.663
Cross-products
Covariance .451 .168 .093 .045
N 392 392 392 392
** **
Website Pearson Correlation .355 1 .293 .126**
Reliability Sig. (1-tailed) .000 .000 .006
Sum of Squares and
65.679 193.875 53.304 14.536
Cross-products
Covariance .168 .496 .136 .037
N 392 392 392 392
** **
Website Pearson Correlation .209 .293 1 .081
Convenience Sig. (1-tailed) .000 .000 .054
Sum of Squares and
36.209 53.304 170.977 8.842
Cross-products
Covariance .093 .136 .437 .023
N 392 392 392 392
** **
Consumer Pearson Correlation .160 .126 .081 1
Satisfaction Sig. (1-tailed) .001 .006 .054
Sum of Squares and
17.663 14.536 8.842 69.133
Cross-products
Covariance .045 .037 .023 .177
N 392 392 392 392
**. Correlation is significant at the 0.01 level (1-tailed).
Table 19: Pearson Correlation Test for the independent and dependent variable.
Pearson Correlation
The correlation between the website design and customer satisfaction affecting the
consumer’s online purchase decision at .160 where it means that these two variables are
positively correlated and both of these variables brings positive impact to the retail website.
Next, on the correlation between the website reliability and customer satisfaction is at the
score of 0.126 which also brings a positive relationship between these two variables where
the variable of website reliability enhance consumer’s purchase intention and satisfaction for
online shopping. Furthermore, the correlation of website convenience with customer
satisfaction standing as the lowest score of 0.081 where most consumers find that this
independent variable least affect the consumer’s satisfaction towards online shopping.
Variables Entered/Removed a
Variables
Model Variables Entered Removed Method
1 Website Convenience, Website Design, Website Reliability b . Enter
Adjusted R
Model R R Square Square Std. Error of the Estimate
1 .179a .032 .025 .41529
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 2.216 3 .739 4.282 .005b
Residual 66.917 388 .172
a. Dependent Variable: Customer Satisfaction
b. Predictors: (Constant), Website Convenience, Website Design, Website Reliability
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Casewise Diagnosticsa
Residuals Statisticsa
Chapter 5
In chapter 5, the researchers will further explain and conclude final outcomes on the research
questions and objectives of this research study. Hence, further recommendations for
organization to improve their customer satisfaction and limitations of research in the whole
process of this research study is also explained further in this chapter.
Based on the findings from the research study on hypothesis 1 where it concludes that there is
a significant impact of website design elements towards customer satisfaction on online
shopping. It can be found that the research findings concluded were contradicted with the
research study also conducted in Malaysia by Alam, Bakar and Ismail (2008). Hence, from
the research findings, it can be seen under the frequency variable test conducted, there is a
high participation of 79.1% under the perception of Generation Y from the age group of 19 to
29, there is a high involvement possibilities of consumers in this age group to purchase online
compared to other age groups as these consumers were born in the digital era where
everything is now performed digitalized. Thus, this makes the consumers from this age group
to be internet savvy as they have a high involvement with the online environment. In a
nutshell, it can be concluded that hypothesis 1 that there is a significant impact of website
design elements towards customer satisfaction on online shopping. Therefore, the first
hypothesis is accepted
In order to obtain consumer trust, Schaupp and Belanger (2005) mentioned in their research
study that the organization must first obtain a good and reliable website security in order to
build consumer trust and satisfaction towards online shopping. As security represents the
common and popular independent variable discussed among the consumers when purchasing
online. Website reliability which consist of the website’s security level and trust level should
be the organization’s first priority when designing and developing a retail website. Hence, for
hypothesis 2, it can be concluded that there is a significant impact of website reliability
towards customer satisfaction for online shopping. Therefore, the second hypothesis is
accepted
5.2.3 Hypothesis 3: There is a significant impact on determinants of convenience that
influence customer satisfaction towards online shopping
There is a significant similarity with the research study conducted by Lin (2007) where it
shows that website convenience factors enhance customer satisfaction towards online
shopping. Website convenience includes the time saving factors, product evaluation factor,
and purchasing factor that makes the website convenient for the consumers to utilise.
Therefore, it can be stated that there is a significant impact on determinants of convenience
that influence customer satisfaction towards online shopping for hypothesis 3. However, this
hypothesis 3 is not strongly important thus it shows a slight significant impact towards
customer satisfaction based on the research study conducted in chapter 4 where data analysis
tools were implied. The convenience also increase the consumer’s ease of use and navigation
in the retail website. Therefore, hypothesis three also accepted.
In a nutshell, it can be said that the website convenience plays the most significant influence
on customer satisfaction towards online shopping. This can be proven from the results
obtained from chapter 4 where the One-Way Anova test analysis shows that website
convenience holds the highest significance score of 0.454. Hence, this makes the website
convenience the most preferred determinate of consumers to purchase online.
5.4 Limitation of study
In the process of this research study, there has been a numbered of limitations occurred
whereby this limitations have caused the process of research study to be more challenging
and meaningful upon completion of the research study. Firstly, with the limited time
constraint given to conduct the questionnaire survey, the research study successfully
conducted the study with a total of 385 respondents, however, the consumer’s perception
could be interrogated as the total 385 respondents are individuals that comes from different
demographic backgrounds and believes that may have affect the customer’s satisfaction
towards online shopping.
Not only is that, the 385 respondents is considered small in number thus it displays less
validity in its results. Hence, the respondents are mostly from the Klang Valley area where
the research is encouraged to expand its geographic region in order to increase the factors
validity level and to further acknowledge the factors that brings significance impact to
individuals from all region.
Furthermore, there are not much journal article that can prove the significance with my
research study above that is under the perception of generation Y as this research study is
focusing on the factors influencing customer satisfaction towards online shopping under the
perception of generation Y. As the key term of generation Y which belongs to the age group
of 19 to 29 is still not commonly exposed or observed therefore, there are not much relevant
journal article that can be referred.
Lastly, another limitations is that this questionnaire survey study was conducted in only one
language which is English. Respondents whom are not familiarise or able to understand
English may not be able to understand on the research questions or answers in the
questionnaire survey. As the respondents may also feel inconvenient and time consuming to
search upon the meaning of the word that they do not understand or have not heard upon,
therefore the answers provided by the respondents may not be accurate and on point to its
perception and believes. Hence, other main languages that are frequently converse such as
Chinese, Bahasa Melayu and Tamil should be included in the questionnaire survey to prompt
for a more accurate research study outcome. With this, consumers from all demographic
background are able to answer the questions with ease and familiarity to the language.
5.5 Recommendations for Future Research
Moving along, the organization can opt to hire external parties that specialises in website
designing to further enhance the consumer’s online shopping experience. Where the
organization do not need to further stress in learning to design the website elements as the
organization can hire external parties with a specific budget allocation and website design
elements and layout that the organization desires. As the external party for website
development specialise and has skills and knowledge in developing and designing a website,
therefore they would know best in creating elements and layout that is suitable for the nature
of the business.
Hence, the organization can advise to adopt the website element feature of interaction chat
box as this feature enables the consumers and organization to communicate and share
opinions and idea that would help the organization grow and expand with the consumer’s
longest loyalty and commitment to the retail website. The interaction chat box allows the
organization to build a friendly and close relationship with their consumers. Thus, this
encourage consumers to stay connected and have a good impact in the consumer’s mind set
and perception of the retail website.
Not only that, organization should also adopt the innovation of internet to further secure the
retail website to ensure security and reliability hence, to build consumer trust and loyalty
towards the retail website. With the innovation of internet, there are various internet security
protocol and programs created to protect the digital world from data encryption and hacking.
Hence, the organization should adopt this feature in order to ensure that their retail website is
up to date and safe from any particular risks and frauds. As consumers do not simply
purchase products off any website, consumers often examine and ensure that the retail
website is popular or contains good positive review or feedback only the consumers would
have a peace of mind to complete their purchase intention. Hence, this also helps protect
consumer’s data such as their demographic details, account number and more.
Lastly, social media today is taking over the digital era where now not only famous
celebrities are invited for exclusive launch, events, dinner gala or product launch, these days
influencers also known as famous public figures which are individuals that contain a high
number of followers that follows and view that particular individual’s social media is now
taking over most of the celebrities exclusiveness. Therefore, the organization is encouraged to
follow the trend where they can pay a particular budget to the influencer to conduct a review
of shopping online on the retail website by posting a video on their social media. With this,
the organization would be able to build brand awareness as well as increase sales from new
consumers. Hence, the cost of hiring the social media influencer is relatively cheaper
compared to hiring celebrities, and social media influencer are easier to connect and
communicate as compared to celebrities.
5.6 Conclusion
In a nutshell, based on this research study analysis, it can be concluded that the website
convenience represents the most important determinate for customer satisfaction towards
online shopping. Hence, this research study analysis has also explained and identified on the
types of independent variable that has a significant relationship and type of independent
variable that does not have a significant relationship.
For instance, based on the research study above, it can be seen that all factors of website
design, website reliability and website convenience brings significant relationship towards
online shopping, however website convenience holds the most huge factor towards enhancing
customer satisfaction. Besides, these factors are only identified and analyses to find a
relationship between the customer satisfactions towards online shopping, whereby future and
further research are encouraged to conduct to explore and determine new factors that may
bring significant relationship towards influencing customer’s satisfaction for online shopping.