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Research Article

Factors impacting customer satisfaction: an empirical investigation into online shopping in India

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ABSTRACT

The study examines various factors influencing online shopping in India .The research analyzes website quality and other drivers of online shopping to evaluate their impact on customer satisfaction. It also analyzes “Social Media interactions” and “Pay on Delivery (POD)” mode of payment as new drivers of online shopping. Data collected from a sample of 500 online shoppers was analyzed using structural equation modeling. In this study both social media interactions and POD emerged as significant drivers of online shopping. These drivers of online shopping along with website quality had significant impact on customer satisfaction. The results would motivate e-retailers to capitalize on social media and POD mode of payment to convert traditional shoppers to become online shoppers.

Acknowledgments

The authors hereby express their sincere gratitude to Dr. Shailendra Palvia (Editor-in-Chief, JITCAR) for sparing his precious time for critical evaluation, encouragement and valuable suggestions that led to a significant improvement of the manuscript. We are also thankful to anonymous reviewers for their careful reading of our manuscript and many constructive suggestions to improve the manuscript.

Notes

1 The process of demonetization involves either introducing new notes of the same currency or completely replacing the old currency with new currency. Indian government adopted demonetization on 08 November 2016 to tackle with black money problem. The latest move of ‘Demonetization’ of currency notes of Rs. 500 and Rs. 1000 had its impact on traditional shopping as well as internet shopping. With demonetization hitting hard, the majority of ecommerce websites, such as Flipkart, Amazon, Snapdeal, Jabong and many more disabled their Cash on Delivery (COD) mode of payment on temporary basis. The initial phase of demonetization was not favorable for online sellers and many of their COD (cash of delivery) orders got cancelled. After ease in sufficient availability of currency note of Rs 500 and Rs 1000, the online purchasing mode picked up again and is going at a faster rate now.

2 Henseler, Ringle, and Sinkovics (Citation2009) proposed a rule of thumb for acceptable R2 = with 0.75, 0.50, and 0.25 values are described as substantial, moderate and weak respectively.

Additional information

Notes on contributors

Urvashi Tandon

Dr. Urvashi Tandon is an Associate Professor at Maharaja Agrasen University, Baddi, Himachal Pradesh, India. She has completed her Ph.D from Thapar University, Patiala and currently doing research on E-Commerce, Online shopping and Supply Chain practices of online retailers. Her research has been published in several journals like Service Science, Information Development, Nankai Business Review, International, Information Systems and e-Business Management, International Journal of e-Business. She has more than 15 years of experience in teaching. Her teaching interests include Marketing, e-Business, Supply Chain Management, and Strategic Management.

Ravi Kiran

Dr. (Ms.) Ravi Kiran is Professor and Head; School of Humanities & Social Sciences and Professor Incharge Alumni Affairs, Thapar Institute of Engineering & Technology (Deemed University), Patiala, India. With post-graduation in Economics and Ph.D. in Industrial Management She is currently doing research in the areas of Business Economics and Modelling, Industrial Management, E-Business & Entrepreneurship. She has been awarded 2018 Emerald Literati Award for paper entitled, ‘Analyzing customer satisfaction: users perspective toward online shopping‘ published by Urvashi Tandon, Ravi Kiran & Ash N. Sah in Nankai Business Review International . She has been on editorial board of many reputed journals. She has published 136 papers in international journals of repute. She has guided 26 Ph.D. students and 20 Masters students. She has published two books.

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