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CUSTOMER SATISFACTION OF ONLINE SHOPPING AMONG EMPLOYEES OF CMA CGM GROUP
MALAYSIA
LEEGINGANK
MASTER OF SCIENCE (MANAGEMENT) UNIVERSITI UT ARA MALAYSIA
August 2018
,
CUSTOMER SATISFACTION OF ONLINE SHOPPING AMONG EMPLOYEES OF CMA CGM GROUP MALAYSIA
By
LEEGINGANK
Thesis Submitted to
Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia,
in Partial Fulfillment of the Requirement for the Master of Sciences (Management)
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PERMISSION TO USE
In presenting this dissertation/project paper in partial fulfilment of the requirements for a Post Graduate degree from the Universiti Utara Malaysia (UUM), I agree that the Library of this university may make it freely available for inspection. I further agree that permission for copying this dissertation/project paper in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor(s) or in their absence, by the Dean of Othman Yeop Abdullah Graduate School of Business where I did my dissertation/project paper. It is understood that any copying or publication or use of this dissertation/project paper parts of it for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the UUM in any scholarly use which may be made of any material in my dissertation/project paper.
Request for permission to copy or to make other use of materials in this dissertation/project paper in whole or in part should be addressed to:
Dean of Othman Y eop Abdullah Graduate School of Business Universiti Utara Malaysia
06010 UUM Sintok Kedah Darul Aman
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ABSTRACT
The purpose of this study is to investigate the relationship of perceived ease of use, service quality, website design and online security towards customer satisfaction of online shopping among employees of CMA CGM group Malaysia. 234 sets of questionnaires were distributed using systematic random sampling method. Out of 234 questionnaires only 224 set of questionnaires were returned. Questionnaire collected were usable with a response rate of 95.7%. The data collected were analysed using Statistical Package for Social Science (SPSS) version 23.0. Then, reliability analysis, descriptive analysis and inferential analysis were conducted. Through the reliability analysis, all variables used in this study are reliable with the value of each variable exceeds 0.6 as suggested by previous researcher. Besides, this study found that all the independent variables significantly relationship with customer satisfaction of online shopping among employees of CMA CGM group Malaysia (p < 0.01). Through the regression model (r = 0.653, r2 = 0.426), it indicated that 42.6% of customer satisfaction of online shopping among employees of CMA CGM group Malaysia was influenced to all the independent variables that are perceived ease of use, service quality, website design and online security. Customer satisfaction of online shopping among employees of CMA CGM group Malaysia is influenced mostly by online security. Next, the influence factors to customer satisfaction of online shopping among employees of CMA CGM group Malaysia were followed by perceived ease of use, service quality, website design, and lastly information quality. Future improvement this research, future research may conduct a qualitative research and added several appropriate variables.
Keywords: customer satisfaction, online shopping, online security, quality
ABSTRAK
Tujuan kajian ini dilakukan untuk menyiasat hubungan antara persepsi mudah guna, kualiti perkhidrnatan, keselamatan alas talian, reka bentuk laman web dan kualiti maklumat terhadap kepuasan pelanggan membeli-belah atas talian di kalangan perkerja-perkerja di CMA CGM kumpulan Malaysia. 234 set soal selidik telah diedarkan menggunakan kaedah persampelan rawak mudah. Waiau bagaimanapun, hanya 224 set soal selidik telah dipulangkan semula. Kesemua soal selidik yang dikurnpul boleh digunakan dengan kadar respon sebanyak 95. 7%. Data yang diperolehi dianalisis dengan menggunakan Pakej Statistik Sains Sosial (SPSS) versi 23.0. Kemudian, analisis kebolehpercayaan, analisis deskriptif dan analisis inferensi telah dijalankan. Melalui analisis kebolehpercayaan, semua pembolehubah yang digunakan dalam kajian ini adalah boleh dipercayai dengan nilai setiap pembolehubah melebihi 0.6 seperti yang dicadangkan oleh penyelidik terdahulu. Selain itu, hasil kajian rnendapati bahawa semua pembolehubah tidak bersandar mempunyai hubungan ketara dengan kepuasan pelanggan membeli-belah dalam talian alas perkerja-perkerja di CMA CGM kumpulan Malaysia (p <0.0 I). Melalui model regresi (r = 0.653, r2 = 0.426), ia menunjukkan bahawa 42.6% daripada kepuasan pelanggan membeli-belah alas talian dikalangan perkerja-perkerja di CMA CGM kumpulan Malaysia telah dipengaruhi untuk semua pembolehubah tidak bersandar. Kepuasan pelanggan membeli-belah alas talian di dalam perkerja-perkerja di CMA CGM kumpulan Malaysia dipengaruhi kebanyakannya oleh keselamatan alas talian, Seterusnya, faktor pengaruh kepada kepuasan pelanggan membeli-belah alas talian di dalam perkerja-perkerja di CMA CGM kumpulan Malaysia dan persepsi mudah guna, kualiti perkhidmatan, reka bentuk laman Web, dan akhir sekali kualiti maklumat.
Dalam usaha untuk meningkatkan lagi kajian ini, kajian akan datang boleh menjalankan penyelidikan kualitatif dan menambah beberapa pembolehubah yang sesuai.
Kata kunci: kepuasan pelanggan, membeli belah secara talian, keselamatan alas talian, kualiti
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ACKNOWLEDGEMENT
First and Foremost, I would like to express my highest gratitude to GOD for the blessing, love, well-being, and opportunity for me to complete this dissertation. My special thanks from the bottom of my heart, appreciation, and love to my research supervisor, Dr. Nor Pujawati bt Md. Said, for her kindness, support, and endless patience from the beginning of my project paper till the end. My deepest thanks to my beloved parents and wife, my father Lee Kam Wah, and my mother Ang Geh Hong and for the endless pray, support, love and also inspiration for me to complete this dissertation
Special thanks to my beloved wife Grace Teoh Kuih See who always support and encourage me to complete this paper
Finally, offering my respects and appreciation to all of those who supported me in any way during the completion of the project. May GOD always bless all ofus.
TABLE OF CONTENTS
TITLEPAGE i
CERTIFICATION OF THESIS WORK .ii
PERMISSION TO USE iii
ABSTRACT iv
ABSTRAK ...••... v
ACKNOWLEDGEMENT vi
TABLE OF CONTENTS vii
LIST OF TABLES x
LIST OF FIGURES xi
LIST OF ABBREVIATIONS ...••... xii
CHAPTER 1 1
INTRODUCTION 1
1 . 1 Background of the Study I
1.2 Problem Statement 3
1.2.1 Background of the Company ...••... 5
1.3 Research Questions 6
1.4 Research Objectives 7
1.5 Scope and Limitation of the Study 7
1.6 Organization of the Thesis 8
CHAPTER 2 IO
LITERATURE REVIEW 10
2. I Introduction 1 0
2.2. Customer Satisfaction 10
2.3 Service Quality 12
2.3. l The relationship between service quality and customer satisfaction 13
2.4 Online Security 14
2.4.1 The relationship between online Security related and customer
satisfaction 15
2.5 Website Design 16
2.5.1 The relationship between website design and customer satisfaction 17
2.6 Information Quality 18
2.6.1 The relationship between information related and customer satisfaction 19
2.7 Perceived Ease ofUse 20
2.7.1 The relationship between perceived ease of use and customer
satisfaction 22
2.8 Underpinning Theory 23
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2.8.1 Flow Theory 23
2.8.2 Technology Acceptance Method (TAM) 24
2.8.3 IS Success Model 25
2.9 Summary 26
CHAPTER 3 27
METHDOLOGY 27
3 . 1 Introduction 27
3.2 Research Framework 27
3.3 Hypotheses Development.. 28
3.4 Research Design 29
3.5 Operational Definition ...•... 30
3 .6 Measurement of Variables I Instrumentation 30
3.6.l Measurement Scale ...••... 32
3.7 Data Collection 32
3.7.1 Population ...••••... 32
3.7.2 Sampling Method 33
3.7.3 Data Collection Procedures 34
3. 7.4 Pilot test 34
3.8 Techniques of Data Analysis 35
3.8.l Reliability Analysis 36
3.8.2 Descriptive Analysis ...•... 36
3.8.3 Inferential Analysis 37
3.9 Summary 38
CHAPTER 4 39
RESULTS AND DISCUSSION 39
4. I Introduction 3 9
4.2 Cleaning ofData 39
4.3 Demographics Analysis 41
4.4 Reliability Analysis .4 3
4.5 Descriptive Analysis ...••••... 44
4.7 Inferential Analysis 46
4. 7 .1 Correlation Analysis 46
4.7.2 Regression Analysis .48
4.8 Summary 49
CHAPTER 5 51
CONCLUSIONS AND RECOMMENDATIONS 5 1
5 .1 Introduction 51
5 .2 Recapitulation of the Study 51
5. 3 Conclusion 52
5 .3 . 1 The relationship between online security and customer satisfaction 53 5.3.2 The relationship between perceived ease of use and customer satisfaction53 5.3.3 The relationship between website design and customer satisfaction 54 5.3.4 The relationship between information quality and customer satisfaction .. 54 5 .3. 5 The relationship between service quality and customer satisfaction 55 5.3.6 The effect of service quality, online security, website design, information quality and perceived ease of use are related to customer satisfaction 56
5 .4 Recommendations 57
References 59
Appendix 67
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Table 3 . 1 Table 3.2 Table 3.3 Table 3.4 Table 3.5 Table 3.6 Table 3.7 Table 3.8 Table 4.1 Table 4.2 Table 4.3 Table 4.4 Table 4.5 Table 4.6 Table 4.7 Table 4.8 Table 4.9 Table 4.10 Table 4 . 1 1
LIST OF TABLES
Page
Operational Definition o f V a r i a b l e s . . . ... . . 28
Measurement of V a r i a b l e s . . . ... . . .. . . ... . . 3 1 Type of Measurement Scale U s e d . . . ... . . ... 32
Five-points Likert Scale .. . . . . . .. . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . 32
Employees ofCMA CGM M a l a y s i a . . . 33
Reliability Analysis of Previous Study and Pilot T e s t . . . 35
Techniques of Data An a l y s i s . . . 36
Rule of Thumb ofCronbach 's Alpha Coefficient S i z e . . . 37
Cleaning of D a t a . . . 40
Factor Analysis Results.. . . . . .. . . . . . . . . . .. . . . . . . . .. .. .. . . .. .. . .. 40
Descriptive Statistics for Demographic Profile . . . .. . .. 41
Reliability Analysis . . . 43
Descriptive Statistics for Variable I t e m s . . . .. . . 44
Descriptive Statistics for V ar i a b l e . . . .. .. . . 44
Pearson Correlation Coefficient M a tr i x . . . ... . . .. . . 46
Model S umm a ry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
AN O V A . . . ... ... . . ... . . ... . . 48
C o e ffi c i e n t s . . . ... ... . .. . . .... .... .. .. .. . . ... . 49
Summary of H yp o t h e s e s . . . ... . . ... . . ... . 50
Figure 3.1
LIST OF FIGURES
Page Research Framework... 28
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LIST OF ABBREVIATIONS
CMA C G M . . . . . . . Compagnie Maritime d'Affreternent Compagnie Generale Maritime
K M O . . . . ... Kaiser-Meyer-Olkin P E O U . . . Perceived Ease ofUse
CHAPTER!
INTRODUCTION
1.1 Background of the Study
Malaysia has significate increase number of internet users from the year 2010 only have 3. 7 million users increase to 21.2 million in the year 2016 and the percentage growth more than 470% (Malaysia Internet Usage and Marketing Report, 2016). Base on the reports shows that overall have 35.3% of users that use the internet to do online shopping and make a reservation. The internet makes people readily exposed to the information and getting closer from each other.
Globalisation has changed the business market which companies run their businesses in a different way like through online they can sell their product all around the world.
The method for people to purchase something is different now; it changes to shopping through wall and mortar into online shopping through the internet (Lee, Eze, &
Ndubisi, 2011). Peoples can easily purchase the products within few clicks through the internet online shopping platform.
People love to live a convenient lifestyle, and online shopping was having the advantage as peoples can purchase things without the step out from the bedrooms.
Nowadays online shopping has become the latest trend of the business model. Online shopping, provides the fastest and most convenient shopping method that generates a whole new experience for customers to shop online. Although traditional shopping method has its advantage however online shopping has the benefits of speed, convenience, variation, comparison, and cheapness. In this modem age, this concept is accepted and loved by many peoples. As Malaysia, online consumers are agreed on
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the advantage as online shopping, have convenient of delivery services, offered the better price and time-saving. (Internet User Survey, 2016).
The total retail survey conduct by PwC in the year 2016 shows the pattern of 500 Malaysian consumers, revealed half of the Malaysian go for online shopping at least once a month and only 35 peoples or 7% of them did not purchase online (Eugene, 2016). In the year 2016, the e-commerce market in Malaysia have total penetration at 61. 7% of the revenue cost US$894 million. The forecast has been making that revenue will growth consistently to US$2,585 million in the year of 2021 and penetration will increase 15.1% and the total will be 76.8% (E-Commerce-Malaysia, 2016). Revenue needs to be growing than mean the service provided to the customer must be improved. Therefore, customer satisfaction experience is essential for business that wanted to have good reviews (Jiyoung, Yang & Bu, 2013; Kim & Stoel, 2004).
Information Technology is booming, and the shopping phases are improving due to a lot of online shopping platfcrm can be access by a mobile device, for example, Mobile Phone, Tablet and Smart Device. The entire local process changes due to the online shopping platform. Website traits which affect the customer satisfaction and evaluation already been discovered by the researchers (Ari, 2015; Zeithaml, Parasuraman, & Malhotra, 2002).
In Malaysia, online shopping platform has increased in recent years; we can see a lot of online shopping platform example Lazada, I !street, Zalora, Lelong and GoShop.
Those online shopping platforms become popular in Malaysia and we can hear and view from the TV and radios. Online shopping that has their advantage, like the
convenience of delivery service, better price and can purchase 24 hours per days (Internet User Survey, 2016). However, online consumers agreed to the all advantage as stated but what are the factors that make that feel satisfy during the online shopping. This question prompted the study we conducted.
Customer satisfaction is one of the topics that regularly discusses with the researchers and marketer. Study about customer satisfaction is critical because product, service quality and company profitability are intimately linked (Kotler & Keller, 2012).
Furthermore, if the customer did not feel satisfied they will not return to shopping online again (Kim & Stoel, 2004; Trong, Vu Khan, & Gim, 2014).
Online shopping is a good topic to study repeatedly and it also to determine what are the effects of customer satisfaction while performing online shopping. Researchers are reviewing the relationship between online shopping and customer satisfaction to make better strategic and decision on their online marketing strategic plan.
1.2 Problem Statement
Nowadays, global economic is the downturn and effect the Malaysia industrial as Malaysia economic growth are based on the volume of export goods or raw material to another country like China, United States of America, Japan and European Country. When an export volume is slow down in Malaysia, it was bad news for small and medium companies, therefore to expand their business through online platform become curial. They can increase their sell and grow their business worldwide through online shopping platform. This case will improve their competitive advantage and best ways in this situation.
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Therefore, customer satisfaction is crucial to online shopping business especially for those that want to expand their business and increase their sell volume globally.
Customer become the main character here as they are the one who buy the products and services from the online platform. It was important to understand what factors that cause the customer satisfaction and continues purchase through online.
The previous study conducted by the research shows that it got a high chance that customer will continue to shop at the same place and reconunend to others if the customer feels satisfaction during the purchase process (Nelson, 2012). Online shopping business wants to attract potential customer there must consider the customers' satisfaction to retain the customer loyalty so they will keep shopping on the same platform (Guo, Ling, & Liu, 2012). Therefore, the researcher wanted to investigate the factors that determine customer's satisfaction. Once these factors founded, it will increase and improve the business sales volumes and profits.
Furthermore, CMA CGM Malaysia group was chosen as the study target because all the staffs have access to the internet with no restriction. Therefore, they can access any website during office hours, and almost 2/3 percent staff have equipped the smartphone and mobile broadband. Also, CMA CGM staff also exposed to e
commerce concept as CMA CGM are promoting e-commerce to their customers.
Online service quality was chosen one of the independent variables because of it much easier to compare with the prices and service play an essential role for online customers (Santos, 2003). To improve the competitive advantage is essential to understand it is the online service quality is the one which influencing the customer's satisfaction. Besides that, online security in payment method chosen as independent
variables as online customers always concern about the security of the website and data protection to avoid leak to others third parties (Parasuraman, Zeithaml &
Malhorta, 2005).
Website design is selected as one of the independent variables because customers visit through online shopping platform visually (Grandon, 2002). Online customers will feel frustrated with lousy website design especially cannot find the products efficiently through the online shopping platform (Kim & Stoel, 2004).
Finally, perceived ease of use is chosen as an independent variable because customer shop through online shopping platform without a salesperson will it the factors contributing to dissatisfaction with online shopping business (Davis, 1989).
1.2.1 Background of the Company
This study conducts in one of a private limited logistic container company that call CMA CGM Group Malaysia, which located in Klang Valley, Penang and Johor. This company was an agency that situated in Malaysia. Established on September !st, 2000 and began operations in October 1999. The CMA CGM Group Malaysia has total five companies under it that are CMA CGM Malaysia Sdn Bhd, ANL Malaysia Sdn Bhd, NOL-APL Malaysia Sdn Bhd, Asia Global Connection Sdn Bhd and Asia Global Connection Northport Sdn Bhd.
The CMA CGM Group Malaysia are subsidiary container company in the world that used different shipping routes between ports to ports in those countries that have ports. This logistic container company the primary business that led by a group of
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staffs and numbers of operation team that operates 24 hours daily. A skilled and experienced worker in the field of the logistic container is the key to providing the best service to our customers.
This company aim is to be the best logistics excellent service with reasonable cost, ensure that all customer get satisfactory service from the employees, to ensure that every Ringgit and cent paid by the customer worth to get the best service.
1.3 Research Questions
Based on the problem statements that have been discussed above, the research question will be according to below:
• Does perceived ease of use relate to the customer satisfaction at CMA CGM Group Malaysia employees?
• Does service quality relate to the customer satisfaction at CMA CGM Group Malaysia employees?
• Does website design relate to the customer satisfaction at CMA CGM Group Malaysia employees?
• Does online security relate to the customer satisfaction at CMA CGM Group Malaysia employees?
• Does perceived ease of use, service quality, website design and online security have effect on customer satisfactions among CMA CGM Group Malaysia employees?
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1.4 Research Objectives
The main objective of this research is to study the significant relationship of customer satisfaction using online shopping based on a sample from CMA CGM Group Malaysia. The specific objectives of this research as follow:
• To examme the relationship between perceived ease of use and customer satisfaction among the employees of CMA CGM Group Malaysia.
• To examine the relationship between service quality and customer satisfaction among the employees of CMA CGM Group Malaysia.
• To examine the relationship between online security and customer satisfaction among the employees ofCMA CGM Group Malaysia.
• To examine the relationship between website design and customer satisfaction related among the employees ofCMA CGM Group Malaysia.
• To examine the effect of perceived ease of use, service quality, website design and online security are related to customer satisfaction among the employees of CMA CGM Group Malaysia.
1.5 Scope and Limitation of the Study
This study uses self-administered questionnaires. The sample of this study are staffs that were working in CMA CGM Group Malaysia. The literature reviews have chosen in this study is about the relationship within the, website design, online security, service quality, perceived ease of use and customer satisfaction. This study is to lean the purpose about to analyse and find out what are factors related to customers satisfaction while performed online shopping.
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Limitation of this study needs to identify so that can improve in future studies. This study only used five independent variables just which are perceived ease of use, website design, online security and service quality. Besides that, the study sample only focuses on the staff that work in the CMA CGM Group Malaysia. Therefore, in future research may expect to see a different result when it expands to others sample.
Lastly, the study is conducted in Malaysia, and the outcome will be different if the study includes other countries.
1.6 Organization of the Thesis
The research paper is divided into five chapters. The chapter one introduces the research topic background, a significance of the study, an overview of the research background, problem statement, research questions, research objectives, and explains the purpose and rationale of the study.
The chapter two reviews the primary literature: regarding which are most related variable that will affect customer satisfaction. The survey has finding from previous research as show in different context and at different levels it will provide more argument of the literature.
The chapter three describes the methodology followed by the theoretical framework with suggested by the researcher according to the past structure that has been discussed, data collection procedures. Issues on gaining applicants trust on the study, reliability, validity and ethics consideration on this study are also mentioned. Lastly, methods used for this study on data analysis are revealed and discussed accordingly.
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The chapter four presents the finding from statistical analysis and offers details of the interpretations. Lastly, the chapter five will introduce the discussion of the results focuses on the research questions and objective of this study. This chapter also will include the summary of the research and its key findings. Limitation and suggestions will be discussed at end of the chapter, it will help for future research .
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CHAPTER2 LITERATURE REVIEW
2.1 Introduction
The literature reviews were the past studies have been discussing by the different researchers in the same topic which customer satisfaction towards online shopping was discussed in this chapter. It starts with the literature review of customer satisfaction as a dependent variable. After that, it continues with the literature review on independent variables, which are customer service quality, online security, website design and ease of use and their relationship to the online shopping toward customer satisfaction among staffs that work in CMA CGM Group Malaysia was explained in detail. All these factors are contributed to the study on customer satisfaction toward online shopping.
2.2. Customer Satisfaction
Customer satisfaction is the dependent variable of this study. When the service exceeds the customer expectation, it will achieve customer satisfaction during the process. Customer satisfaction is the comparison result between consumer expectation and experience (Khristianto, Kertahadi & Suyadi, 2012). Online shopping platform wants to succeed in the market, satisfaction and loyalty are crucial elements (Khristianto et al., 2012). Customers get better than what they expected and feel satisfaction; it will increase the chance for them to repurchase in the same online shopping platform again (Alam & Yasin, 2010).
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Customer satisfaction was a continually to test out the product, service and customers consumption experience (Oliver, 1997). Customer satisfaction also base on predictive expectation and actual experience during the purchase or tested out performance of the product that customer purchased through the traditional method (Marshall et al., 201 O; Oliver, 1997). Customer satisfaction might have gap on expected before purchase and actual experience when they are purchasing on the traditional ways example purchase through the physical store. In the era of the internet, customers purchase the item through online shopping website and customer satisfaction might be different as it will be influence by initial expectation before the purchase and online purchase experience after purchase the product (Constantin, 2012; Filieri, Alguezaui, McLeay, 2015).
Customers satisfaction need to focus as most important customer reactions when performing online shopping, due to it retain the customer loyalty, repeat purchase, good review from mouth to mouth, improve sales and profits (Marwan, 2012).
Customer satisfaction is considered as one of the most important elements and one of the main goals in marketing (Khan, 2012). Customer satisfaction needs to be identified in this study due to improving the business performance and profit (Izyan &
Boon, 2014).
Previously review show that Customer satisfaction been defined as the customer's feeling fulfilment about their online experience that included surfing experience, transaction experience and purchase process with a given by online shop website (Tang, Tsai, & Wu, 2005). Previous researcher also found out customer loyalty will be effect on the customer satisfaction that gain in online shop website (Filieri, 2015).
In the virtual nature of the online shop website, traditional ways on actual experience 11
and service of the product would be exclude from the evaluation of the customer satisfaction in the online envirorunent.
On the other hands, online shopping customer satisfaction depend the value process while customer login into their website to perform a purchase and user interface can enhance their shopping experience on the online shop website. However, after customers purchase the product by using it their gain the experience from it by then it will have estimation of the level of satisfaction in the electronic commerce industry.
Therefore, customer satisfaction was based on the expectation before after purchase the items and shopping experience during the online purchase.
2.3 Service Quality
Customer satisfaction are influence by the service quality provided by the corporate and turn into customer loyalty through the purchasing process (Schulz & Omweri, 2012). There are two different dimensions when talk about service quality there are physical quality and staff behaviour quality (Janghyeon, Ekinci & Whyatt, 2011). Furthermore, the study of customer satisfaction is influence of technical and functional dimension of the service quality (Lundahl et al., 2009). Besides that, study also found that customer satisfaction is correlate significantly related with technical and functional dimension of service quality and have positive impacts on customer satisfaction (Lariviere, 2014).
Service quality has gained quite of amount attention for researchers in past twenty years of study. The researchers believe that performance of the online business can increase by service quality (Cheruiyot & Maru, 2013)
However, finding from researcher suggest that service quality is positively related with customer satisfaction in the online business (Raza, Jaw aid, & Hassan 2015).
Besides that, study have make in different level of service in the industries can have understanding between the relation on service quality and customer satisfaction (Chumpitaz & Paparoidamis, 2004; Pantouvakis, 2013).
The recent studies highlight that the fact service quality have vital effect on the customer satisfaction. Therefore, to implement different strategies to boost service quality is vital especially in the online shopping platform. The function in the online shopping website and simplify to use the platform are important as to increase the customer satisfaction.
2.3.1 The relationship between service quality and customer satisfaction
Service quality can increase the customer satisfaction when purchase through online shopping platform. Customer will use the online shopping platform when they feel the functionality and technique to use it are high quality ( Chiu et al., 2005).
Therefore, online shopping platform should provide the excellent service quality to able the customer to simplify the process of finding or purchasing the items to archive the customer satisfactions.
Service quality also been proved have positive influence, increase the customer satisfaction (Xie, Zhu, Lu, & Xu, 2011). Customer will choose the online shopping platform that provide excellent service quality that offers quality information and simplify function (Seng, 2017).
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Furthermore, researcher refer service quality and customer satisfaction related with each other's. Past studies link the concept between service quality and customer satisfaction to each other's especially when discuss on the online business or e
commerce (Amin & Isa, 2008; Awan, Bukhari, & Iqbal, 2 0 1 1 ; LeBlanc & Nguyen, 1988).
Customer expectation and perception is related with the service quality according to the customer wanted to have and needs (Pizam et al., 1999). Service quality at online shop website can influence customer satisfaction, repurchase intention and loyalty.
Therefore, study shows the failure of the most of online shopping platform are poor service quality provided. When service performance did not fulfil customer expectation while they are searching product information, purchase matter, and delivery method, it will bring negative impact to the business (Ou et al, 2011).
Service failure bring customer dissatisfaction and decrease customer loyalty and intention to repurchase through the online shop website.
2.4 Online Security
Online security and online privacy is the fundamental requisition before any online shopping activities happened as it is involving private and confidential information of the customer (Shukla, 2014). Therefore, online privacy and security are the main factors for customers as when customer performing online purchase it involves customers to provide their password, home address and others sensitive information.
Security play an important role through the internet as it need to protect the personal information while the customer enters their data into the website to avoid any
unauthorized information disclosure to the third party (Guo et al., 2012). Furthermore, cyber security considered an important factor to the customer when they surf through the online platform (Mustafa, 2011). As security and privacy of the customer issues play an important role to allow them to develop trust in the online transaction through the online shopping platform (Chellapa, 2002).
The purchase transaction that made in the online environment, the users may decide whether the online shop websites have the security and reliability provided to prevent the attack from the hackers, it important to build confidence and satisfaction to the users (Rui, Sharifah, & Syed, 2006). Security and reliable on the online shop transaction are necessary condition to remain the condition of the online shop service and brand loyalty (Zalfa, Lee, & Moghavvemi, 2017).
Therefore, online security as one of the important factors to provide customer satisfaction when their purchase through online shopping platform. Thus, online shopping platform that have tight security or two step logins did help customer feel more safe and secure.
2.4. J The relationship between online Security related and customer satisfaction
Online security considers as an important aspect when we discuss on the customer satisfaction (Parasuraman et al., 2005). Online customers normally interact with the people online but did not have physical contact on the product or facilities they purchase on (Reichheld & Schefter, 2000). Some research has found out online privacy play an important factor on the customer satisfaction when they are shopping online (Cristobal et al., 2007).
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The results obtained from a research show that online security which lead customer satisfaction (Kim et al, 2009). Besides that, study found online shop website that have high privacy and security protection increase the customer trust and customer satisfaction and even build up loyalty between the customers and the online shop websites (Alshurideh et al, 2016).
When discuss related with online security we have two things need to discuss there are transaction security and data security; and next part is regarding credential of the user (Guo et al., 2012). Research found out around 61 % of would proceed their transaction on the Internet if their privacy and personal information are securely protected (Chellapa, 2002).
Therefore, online shopping website must have secure mechanism and well design private and confidential policy develop positive trusts and towards increase customer satisfaction (Kim et al., 2007).
2.5 Website Design
Research show that perception of the website quality based on the features provided are meet the customers need, it same goes to the online shopping website that need those quality to impress the customers. The authors of the research also found out that multiple website quality can be categorized such as information quality. At the same times, website design is an important component of the online shopping website, and is critical in achieving the customer satisfaction that offered to customers.
A successful online shopping website have crucial features in it for example the aesthetic appearance, smooth navigation, organized and manageable content display.
Online shopping website that have attractive and interesting effects that increase the customers satisfaction towards motivate customers to stay long in the online shopping platforms. According to a group of researchers, website design that have excellence features will have positive influence on customer satisfaction. Furthermore, informative website will increase the customer satisfaction as it allows the customers easier to do the comparison and exanimate production through the online shopping websites.
This indicate that website design is play an important element of customer satisfaction. Website design are important issues attract customer attention when customer shopping online. Online shopping retailers need to have a website that have easily readable fonts and content as it will increase the customer satisfaction.
Moreover, online shopping retailers need to have quality information on their website to convince the customer to the final purchase and leading to increase customer satisfaction.
2.5.1 The relationship between website design and customer satisfaction
Website customization design is an important functionality factor which increase the user satisfaction during the online shopping process by limiting information overload to the users (Liang et al., 2007). Website design recognized as important factor of online shop websites as it increases the customer satisfaction ( Guo et al., 2012).
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Website design customizability as a significant factor tbat increase customer satisfaction (Calisir et al., 2011). Customer satisfaction is significant related with tbe website design that have excellent functionality on tbe online shop website as customer did not have information overload during shopping on the website (Abdallah & Jaleel, 2015).
Website design are related witb customer satisfaction base on the previous study (Liu et al., 2008). Online customers are target oriented shopper, tbey can easily sit in front of the computers to search what they are looking or what they want to find, if they didn't search or found out the online shop website is not interesting enough they will immediately switch into another online shop website. (Urvashi, Ravi & Ash, 2017) Therefore website design is important for customer satisfaction. (Izzay & Boon, 2014).
2.6 Information Quality
Information quality has been defined by previous researchers as tbe completeness, accuracy, format and currency of information produce by creators in tbe digital technologies example online shopping website. Completeness is referring to the level of degree on the online shopping website provide all important information related on the product; accuracy refers to the customers perception that product of the detail provided is correct; format is tbe customer perception of how information is show on the web page; and currency represents the customer perception it is the information show in the website is the latest one (Wixom & Todd, 2005).
Customers expect to use the online shopping website to search for product information and purchase product and service through internet ( Gao & Owolabi, 2008). Therefore, quality information provided must be correct if information is irrelevant or inaccurate on incorrect, customers may doubt the online shop vendors ability and integrity to present the quality service (Yang, 2004). Information quality need to be excellent has positive effect on the customer satisfaction (Zhou, 2011).
Moreover, the information quality also may influence the customer satisfaction (Bigne-Aicafiiz et al., 2008). Customers sometimes have problem or concern on the product they want to buy when the information quality is excellent therefore customer didn't have problem to purchase it and if they want to change or return the product they have bought also have the correct information to do so (Liang & Lai, 2002).
2.6.1 The relationship between information related and customer satisfaction
Study claimed that information quality is positively related to customer experience of using online shopping website (Gao, 2014 ). Information quality may also affect customer satisfaction ( Gao & Bai, 2014 ). Online vendor assists customers save time searching information within the online shopping website if good information quality provided. Information help the customer to compare product prices and getting relevant promotion and product, information also pinpoint locations of the online vendor locate (Mamonov & Benbunan-Fich, 2015).
Poor information quality that display on the online shop website will decrease the customers experience as more effort need to spend to search related information needed by them. Customers are expected to have a good information quality provide
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while using online shop website to make transaction (Yang, 2010). Poor information quality that display on the webpage may reduce customer satisfaction as customer expect more. Customers need more accurate, relevant and updated information from the website only then they will purchase product and services from the online retailers. Some research has reported information quality showed on the website will affect customer and influence customer satisfaction with online shopping sites (Zhang et al., 2016) and online shopping communities (Elliot et al., 2013).
Four dimensions of information quality has been defined by previous researcher that are namely accuracy, content, format and timeliness (Guo et al. ,2012). Four dimensions mentioned can provide satisfaction to customers, especially to those customer that want to search information with limited time to spend and to the impulsive buyers when they see some they wanted in the website (Khristianto et al.,2012). Park and Kim (2003) define information quality good or bad was depend on customer feel, as online shopping website are loaded information's provided by online retailers.
Previous research found out that information quality will influence various outcomes, such as information sharing behaviour (Durcikova & Gray 2009), portable device adoption (Kim & Han 20 1 1 ) , trust in the IT structure (Vance et al. 2008), customer loyalty (Zhou et al., 2010), and customer satisfaction (Kekre et al., 1995).
2. 7 Perceived Ease of Use
Customers often performance online shopping, as there are several factors related to the customer satisfaction when customers buy online. One of the factors is perceived
ease of use. The original definition of perceived ease of use are come from Technology acceptance model (TAM) state that individual belief that he would use the system without extra effort (Davis, 1989). Perceived ease of use will allow the consumer believes that online shopping will enhance his or her transaction satisfaction lead toward customer satisfaction (Chiu et al., 2009).
Perceived ease of use means that with little effort customer can easily search information of a product and service (Chiu, Lin, & Tang, 2005). Online shop website that would simple and easy to understand will lead customer feel satisfy (Kim, Mirusmonov, & Lee, 2010; Venkatesh & Bala, 2008). While use the online shop website to shopping customers expect that website is user friendly and easy to perform the transaction (Gitau & Nzuki, 2014).
Ease of use which users capable to learning how to manage the system by its own without assist from other peoples, the ease of remember the foundation functions, the grade of efficiency on the website that design user friendly, the system error free and without a down times and general make the customer feel satisfaction during the process using the online shop website.
In this research, perceived ease of use makes customers feel confidence and satisfaction, online shop website allows customers to search information of a product or service (Chiu et al, 2005).
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2.7.1 The relationship between perceived ease of use and customer satisfaction
The online shop website is connecting between the online retailer and online customer; therefore, customer satisfaction will be evaluating during the search and purchase the products. The study conducts by Chau ( 1996) and Pookulangara and Koesler (2011) showed that perceived ease of use has positive relationship towards customer satisfaction. It is supported by the study base on Gitau and Nzuki (2014) and Gong et al. (2014), they found out that customer satisfaction is influence by perceived ease of use.
Customer may feel the online shop website is easy to use it but sadly it looks another way around and it will decrease the level of customer satisfaction. Customer satisfaction will increase from the website design as it found out easy to use (Lee &
Lin, 2005). In different ways, if the online shop website is not easy to use it will decline the customer satisfaction as they found out the functionality of the website is complicate and unclear (Pearson, Pearson, & Green, 2007).
According to Strogatz (2011), customer will go for online shopping as they found out the website is much easier to use and user friendly as it will increase the customer satisfaction during the visit. Besides that, a user-friendly online shop website normally will have attracted the online customer and make them feel satisfy toward they will visit the online shop more often (Chiu et al., 2005).
2.8 Underpinning Theory
2.8.1 Flow Theory
Flow theory is the flow that construct to describe how human and computer interactions in the online environments (Webster et al.,1993). In the online shopping environment customer and online shop website are do interaction and it create opportunities to eugage in satisfaction online experience (Anil et al, 2015). For instance, taJcing a virtual shop of the online shopping mall, it can trigger the escapist and satisfaction in online customer mind that driven them to purchase. Therefore, flow has become an important element on the online shopping.
Researchers have come out a study on customer shopping expenence m online environment by utilizing "flow" theory and how it experience can lead toward customer satisfaction (Ding et al., 2 0 1 1 ; Rose et al., 2012; Teng et al., 2012). The flow concept denotes a sensation of that people feel when they act with total involvement (Csikszentmihalyi, I 975) and ordered state of consciousness (Csikszentmihalyi, 1988). Online customers expenence flow, then they will have intention to perform their online activity and current action transit flawlessly into another and displaying an inner logic and create harmony and will continue to shop online (Anil et al., 20 I 5). Flow considered as a concept to understand customer behaviour through shopping online and customer experience can lead to satisfaction (Hoffman & Novak, 1996; Novak et al., 2000).
Flow could be explained as the satisfy experience that customers felt when shopping at the online shop website (Hung et al., 2012). Both researcher agree that flow play an
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important role while explain the customer behaviour and how it lead to customer satisfaction in online environments (Huang et al., 2012; Teng et al., 2012). Flow is proposed when come to explaining online satisfaction, thus, researchers were investigated the flow satisfaction of users when using the system that include website (Hausman & Siekpe, 2009).
2.8.2 Technology Acceptance Method (TAM)
Theory of acceptance model original derived out from the theory of reasoned action (Fishbein & Ajzen, 1977). Theory of reasoned action is general explain the theory about the human behaviour why and how humans acted meanwhile theory of acceptance model is built to explain the use of information system while humans nowadays are in the technology era. Variables of perceived ease of use has been adapted from the theory of acceptance mode that develop by Davis (1989).
Theory of acceptance is a model of the influential research in the information system area, this model has been adapted from to understand the use of technology as it proven suitable to be used in the workplace for the use of online shop website (Chen, Gillenson, & Sherell, 2002). Customer attitudes willing to learn the new technology have been proven in the theory of acceptance, in understand of customer attitudes, the attitude must be strong, immediate and have positive in use the new technology or system example use the internet to purchase online through the online shop website.
Perceived ease of use is beliefs that lead to acceptance of use of the information system for example the internet to purchase online (Davis, 1989). Customer attitude is one of the characteristic to evaluation the customer attractiveness of using a specific
information system application. An empirical test has been run to predict intention and use, the results show that theory of acceptance model managed to predict the use of word processing package (Davis, 1989). Perceive ease of use has been significantly correlated with use the text editor, graphic and automation package. The variable of perceived of use has been shown in many empirical studies that it has high impact on customers to adapting new technology products toward having satisfaction by using it (Davis, Bagozzi, & Warshaw, 1989).
2.8.3 IS Success Model
Information system (IS) success model has been identified six components of IS success there are, system quality, information quality, and service quality, intention to use, user satisfaction and net benefits, IS success model, online shop website have customer satisfaction and positive customer experience will leads customer for higher intention to use and purchase item from the website (Petter, Del.one, & McLean, 2008).
The revised IS success model, are one of the widely used model for IS success, has so far been frequently adopted to examine online shop website success. Cheng (2012) in his study to examine whether system quality factors can affect customer intention to use the online shop website, beside that IS success model have concluded that information, service and system quality play an important key regard to online shopping acceptance (Kim, Trimi, Park, & Rhee, 2012).
Online shop website that have good service quality, information quality, system functionality significantly affects the customer satisfaction toward use it to purchase
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online. Furthermore, Chang (2013) showed the website design quality significantly and positively influences customer's satisfaction.
2.9 Summary
This chapter provides a context for both variables (dependent variable and independent variables) by reviewing previous literature reviews. Post-purchase cognitive dissonance was related to customer satisfaction was previously discuss by many studies (Koller & Salzberger, 2007; Marshall et al., 2008; Salzberger & Koller, 2010). Therefore, the independent variables in this study were taken from theory of acceptance model which is perceived ease of use. Four extra independent variables were developed there are service quality, online security, website design and trust.
CHAPTER3 METHDOLOGY
3.1 Introduction
This chapter contained the outline of the research method. First Section 3.2 which illustrated the research framework, while hypotheses/propositions development in Section 3 .3. Section 3 .4, discuss how the research is carried out in te1ms of research design, operational definition that include in Section 3.5, measurement of variables/instrumentation will be in Section 3.6, data collection in Section 3.7 and techniques of data analysis will be in Section 3.8. The objective to achieve in this chapter is to ensure that the appropriate research procedure follows to help the reader have better understand and evaluate the result of the research. Lastly Section 3.9 is a summary of the chapter three.
3.2 Research Framework
Research framework is the basis for the study. Through the literature review earlier, five independent variables with formulated hypotheses are developed to form the research framework (see Figure 3.1). These independent variables are service quality, online security, website design, information quality and perceived ease of use. While customer satisfaction is the dependent variable.
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Service ualit Online Securit Website Desi Informational ualit Perceived Ease of Use
Figure 3.1
Research Framework
3.3 Hypotheses Development
Customer Satisfaction
Hypotheses are an educated guess and unproven proposal that a researcher makes based on the information given (Mukesh, Salim, & Ramayah, 2013). Hypotheses are based on the researcher questions, interviewer are just answered based on the questionnaire given. Therefore, the research hypothesis for this study as follows:
H,: Service quality is related to customer satisfaction among staffs in CMA CGM Malaysia.
H2: Online security is related to customer satisfaction among staffs in CMA CGM Malaysia.
H3: Website design is related to customer satisfaction among staffs in CMA CGM Malaysia.
H4: Information quality is related to customer satisfaction among staffs in CMA CGM Malaysia.
Hs: Perceived ease of use is related to customer satisfaction among staffs in CMA CGM Malaysia.
H6: Service quality, online security, website design, information quality and perceived ease of use have effect on customer satisfaction among staffs in CMA CGM Malaysia.
3.4 Research Design
This study we used quantitative approach. The quantitative study was chosen because of low cost and time saving because it uses a repressive sample to represent the interests of certain population when it conducts in the specific areas. Individual that work in CMA CGM Malaysia as the analysis unit. The data collection used survey through questionnaires. A structured questionnaire were given to 234 respondents which are staff that work in CMA CGM Malaysia that have 6 branches that located at Kuala Lumpur, Shah Alam, Subang Jaya, Klang, Johor Bharu, and Penang. Then, the data obtained is analysed using Statistical Package for the Social Sciences (SPSS) to converted into information that is useful to study correlation between independent variables and dependent variables in this study.
This study used a cross-sectional descriptive approach to gather information for analysis the customer satisfaction on the online shopping. Descriptive study used to describe the characteristics of the phenomenon as a person on the online shopping activities. Therefore, the results obtained are useful to generalize of customer satisfaction on online shopping in CMA CGM Malaysia.
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3.5 Operational Definition
The operational definition for each variable in this study is presented in the following table.
Table 3.1
Operational Definition of Variables
-
Variable
Customer Satisfaction
Service Quality
Online Security
Website Design
Definition
Compare different on customer expectation and experience; When final outcome meets or exceeds a customer's expectation it will achieved customer satisfaction.
Service quality is defined as how customers decide and estimate the service being serviced to them and evaluation of websites service quality provided to the customers.
The function of the security is to protect sensitive information and data of the customers that store in the website.
Prevent any of unauthorized access information during the electronic transaction input or output.
It describes the appeal that a user interface design that show to the customers and catch their attention on what their show in the websites.
Source
Khristianto, Kertahadi &
Suyadi (2012) Chung & Shin (2010) Chen el al. (2012) Guo et al. (2012) Khristianto et al. (2012) Santos (2003)
Guo et al. (2012) Mustafa (2011)
Prasad & Aryasri (2009)
Guo et al. (2012) Hsu, Chang & Chen (2011)
Information Quality
Perceived Ease of Use
It defines base on customers think that Wilson (1983) the information published are helping to
decide.
By a little effort at the online shop Chui et al. (2005) website can help customer to find what
their really need.
3.6 Measurement of Variables I Instrumentation
The study comprised of two set of variables which are dependent variables and independent variables. Dependent variable is customer satisfaction while independent variables are service quality, online security, website design, information quality and
-
perceived ease of use. Items used are originally are conducted in English language.
However, the researcher decided to do bilingual questionnaire to help respondent who are not good in English, so that they can more understand on the questions they were answered. Therefore, these items were translated into Malay language by researcher and remain the English version.
Table 3.2 presents a measurement of variables of the study. Measures of customer satisfaction (CS), service quality (SQ), online security (OS), website design (WD) and information quality (IQ) were borrowed from Liu et al. (2008). Meanwhile perceived ease of use (PEOU) was borrowed from Hernandez et al. (2011).
Variable Names
Customer Satisfaction (CS)
Service Quality (SQ)
Online Security (OS)
Website Design (WD)
Information Quality (IQ)
Perceived Ease of Use (PEOU)
No of Items
3
3
3
4
3
3
Measured Items
My choice to purchase from this website was a wise one (CS!).
I have truly enjoyed purchasing from this website (CS2).
I am satisfied with my most recent decision to purchase from this website (CS3).
Inquiries are answered promptly (SQ!).
The company is ready and willing to respond to customer needs (SQ2).
The products of the website meet my needs and expectations regarding quality (SQ3 ).
I feel I can trust this website (OSI).
I feel safe in my transactions with this website (OS2).
The information provided at the website ts secure OS3
I like the layout of the website (WDI).
The start page leads me easily to the information I need (WD2).
I found it easy to move around in this website (WD3).
I feel happy when I use the website (WD4)
The information provided at the website is easily understandable (IQ!).
The information on the website is complete for purchase decisions (IQ2)
The information in the website is relevant (IQ3 ).
Learning to use the internet to buy a product would be easy for me (PEOUI).
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Sources Liu etal.
(2008)
Liu et al.
(2008)
Liu et al.
(2008)
Liu et al.
(2008)
Liu et al.
(2008)
Hernandez et al.
2011
Table 3.2
Measurement of Variables
Variable Names No of Items
Measured Items
Using the website to buy a product would be easy to do for me (PEOU2).
The website would be easy to be use to do my shopping (PEOU3).
Sources
Table 3.2 (continue) Measurement of Variables
3.6.1 Measurement Scale Table 3.3
Part A B
c
D E F G
TYPe of Measurement Scale Used
Variable Demographic Customer Satisfaction Service Quality Online Security Website Design Information quality Perceived Ease of Use
Scale Nominal Ordinal Ordinal Ordinal Ordinal Ordinal Ordinal
Respondents must answer Part B until Part G of questionnaire by selecting between number one (I) to number five (5) based on Likert scale measurement. Five-points Likert scale shown in Table 3.3
Table 3.4
Five-points Likert Scale
Strongly Disagree 1
3.7 Data Collection
3.7.1 Population
Disagree 2
Neither Agree Nor Disagree 3
Agree Strongly Agree
4 5
There are six different offices in CMA CGM Group Malaysia located in Malaysia.
Therefore, the researcher distributes the questionnaires to each office base by the total staff located in each location in Table 3.4. The sampling method used in this study is
systematic random sampling method. Therefore, the all the staff will get a to chance fill up the questionnaires.
Table 3.5
Employees ofCMA CGM Malaysia
