ABSTRACT
This
study was intended to evaluate role of e- commerce in improving customer
satisfaction. This study was guided by the following objectives; To appraise
the nature of e- commerce business services, To appraise customer satisfaction
and factors determining customer satisfaction, To determine the role of
e-commerce in improving customer satisfaction, To determine the JUMAI
e-commerce services in improving customer satisfaction
The
study employed the survey research design; questionnaires in addition to
library research were applied in order to collect data. Primary and secondary
data sources were used and data was analyzed using the correlation statistical
tool at 5% level of significance which was presented in frequency tables and
percentage. The respondents under the study were 200 students across different departments
of Lagos State University, Lagos who shop online using JUMIA e-commerce portal.
The study findings revealed that E-commerce products/services of JUMIA have significant impact on customer
satisfaction. E-commerce security feature of JUMIA has significant impact on customer
satisfaction. E-commerce user interface of JUMIA have significant impact on customer
satisfaction.
The
study shall provide a conceptual and theoretical appraisal of the nature of
e-commerce.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The
use of e-commerce websites can lead to accepting and satisfying intentions and
then influence customer satisfaction behavior towards an e-commerce website Customer
satisfaction is how satisfied a customer is with the supplied product/service.
It is closely related to interpersonal trust [Geyskens, Steenkamp, Scheer, and
Kumar 1996].
[Zins
2001], stated, it is expected that a higher level of customer satisfaction will
lead to greater loyalty. However, the impact of satisfaction on customer
loyalty is rather complex. Fisher [2001] believes that customer satisfaction
accounts for only part of why people change product or service providers. Other
studies have shown that customer satisfaction is a leading factor in
determining loyalty [Anderson and Lehmann 1994]. Anderson and Srinivasan [2003]
found that both trust and perceived value, as developed by the company,
significantly accentuate the impact of satisfaction on e-Journal of Electronic
Commerce Research, VOL 12, NO 1, 2011 Page 81commerce loyalty. In a more recent
study by Cyr [2008] it was found that website satisfaction is strongly related
to loyalty in three countries: Canada, Germany, and China.
Generally,
loyalty has been defined as the repeat purchasing frequency or the relative
volume of same-brand purchasing. Oliver [1997] defines customer loyalty as a
deeply held commitment to re-buy or re-patronize a preferred product/service
consistently in the future, thereby causing repetitive same brand or same brand
set purchasing, despite situational influences and marketing efforts having the
potential to cause switching behavior. In e-commerce, loyal customers are considered
extremely valuable. Today, e-retailers are seeking information on how to build
customer loyalty. Loyal customers not only require more information themselves,
but they serve as an information source for other customers. Building customer
loyalty is one of the biggest challenges for business to customer e-commerce.
Several antecedents of customer loyalty have been proposed. Customer
satisfaction and trust have been brought forward as a precondition for
patronage behavior [Pavlou 2003] and the development of long-term customer
relationships [Papadopoulou, Andreou, Kanellis, and Martakos 2001].
The
study by Kassim and Ismail [2009] found that services quality and vendor’s
assurance to online customers, contribute to building trust and satisfaction
thereby improving customer loyalty. These study shall therefore determine the
role of e-commerce in improving customer service.
1.2 STATEMENT OF THE PROBLEM
Success
stories are few but often told. Unfortunately, just as rapidly as new dot-com
companies and e-commerce Web sites are created, many of these new ventures
fail. Even the once assumed-mighty e-businesses are losing money by the
millions. Why? The reason is that many businesses fail to understand the nature
of this new but powerful tool of selling. They must learn to live and compete
in a world where location is less important and the consumer is setting used to
24-hour service. Customers want to do business online according to their own
schedules. Many unsuccessful online businesses fail to satisfy their customers
because the expectation of the online customers is often higher and may even be
different from that those of using traditional marketing. Marketing in the
world of the Internet, therefore, presents new challenges to businesses and
marketers world-wide. Building long-term customer relationships through
customer satisfaction is one of the crucial keys to a successful business. An
organization exists to satisfy customer wants and needs while meeting the
organizational objectives of increased sales and higher profit. Marketers have
to understand the concept of and accept the Internet as a marketing tool. With
the introduction of the Internet, marketers have the technology to mass
customize communication and products and yet be able to increasingly target
smaller marketing segment: taken to its natural extension, a target market can
now be one person
Creating
customer satisfaction is pivotal to enhance customer loyalty and repeat
patronage which is dependent on a number of factors. This research will confront
the above problems listed by investigating the role of e-commerce in improving
customer satisfaction, with a case study of JUMAI.
1.3 RESEARCH QUESTION
1.
What is the nature of e-commerce?
2.
What is customer satisfaction and what factors determine customer satisfaction in
e-commerce?
3.
What is the role of e-commerce In improving customer satisfaction?
4.
How does JUMAI e-commerce improve customer satisfaction?
1.4 OBJECTIVE OF THE STUDY
1.
To appraise the nature of e- commerce business services
2.
To appraise customer satisfaction and factors determining customer satisfaction
3.
To determine the role of e-commerce in improving customer satisfaction
4.
To determine the JUMAI e-commerce services in improving customer satisfaction