ROLE OF E-
COMMERCE IN IMPROVING
CUSTOMERS SATISFACTION
(A CASE STUDY OF JUMIA)
ABSTRACT
The research provides a conceptual and theoretical study
on the role of E-commerce in improving
customer s satisfaction . it elucidate
on the nature, forms and significance of
e-commerce Business. And depicts the impact of E- commerce on customer satisfaction.The research also
provides a case analysis of Jumai.
INTRODUCTION
E-commerce businesses may employ some or all of the
following:
·
Online shopping web sites for retail sales direct to consumers
·
Providing or participating in online marketplaces, which process third-party
business-to-consumer or consumer-to-consumer sales
·
Business-to-business buying and selling
·
Gathering and using demographic data through web contacts and social
media
·
Business-to-business electronic data
interchange
·
Marketing to prospective and established customers by e-mail or fax (for
example, with newsletters)
·
Engaging in retail for launching new products and services for launching new products
and services
CHAPTER 1
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 websiteCustomer 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
E-commerce constitute a significant
business process of transacting modern
business services as vast population of people are hooked to online services
through the internet and various websites.
However, creating customer
satisfaction is pivotal to enhance customer loyalty and repeat patronage which
is dependent on a number of factors.
The problem confronting this research
is to investigate the role of e-commerce in improving customer satisfaction.
With a case study of JUMAI
1.3 RESEARCH QUESTION
What is the nature of e-commerce?
What is customer satisfaction and
what factors determine customer satisfaction in
e-commerce?
What is the role of e-commerce In
improving customer satisfaction?
How does JUMAI e-commerce improve
customer satisfaction?
1.4 OBJECTIVE OF THE STUDY
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
1.5 SIGNIFICANCE OF THE STUDY
1
The study shall provide a
conceptual and theoretical appraisal of
the nature of e- commerce
2 The study shall determine the role of
e-commerce in improving customer satisfaction
3 The study shall provide information on
e-commerce to organizations, IT professionals, and Business managers
1.6 STATEMENT OF HYPOTHESIS
1
H0 E-commerce product/service of JUMAI does not
have significant impact on customer
satisfaction
H1 E-commerce product/service of JUMAI have
significant impact on customer satisfaction
2 H0 E-commerce
security feature of JUMAI does not have significant impact on customer satisfaction
H1 E-commerce
security feature of JUMAI have significant impact on customer satisfaction
3
H0 E-commerce user interface of JUMAI does not have significant impact on customer
satisfaction
HI E-commerce
user interface of JUMAI have significant impact on customer satisfaction
1.7 SCOPE OF THE STUDY
The study focuses on the role of e-commerce in improving customer service.
It provides a conceptual and theoretical appraisal of the nature of e-commerce and
the factors which determine customer satisfaction in e-commerce
1.8 DEFINITION
OF TERMS
E-COMMERCE IS DEFINED
E-commerce is a short term for electronic commerce, It
consist of trading in products or services using
computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds
transfer, supply chain
management, Internet marketing, online transaction
processing, electronic data
interchange (EDI), inventory management
systems,
and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of
the transaction’s life cycle, although it may also use other technologies such
as e-mail.
.