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Factors Affecting Customer Satisfaction in Online Shopping in Sri Lanka

Factors Affecting Customer Satisfaction in Online Shopping in Sri Lanka

Anuruddha Nandasena1*, Mihiri Wickramasinghe2

1,2Faculty of Management Studies, Rajarata University of Sri Lanka, Mihintale, Sri Lanka

DOI: https://dx.doi.org/10.47772/IJRISS.2024.802148

Received: 15 February 2024; Accepted: 24 February 2024; Published: 21 March 2024

ABSTRACT

The purpose of this study is to find the key factors affecting customer satisfaction in online shopping in Sri Lanka. The main objective of this study is to find the Factors affecting customer satisfaction in online shopping in Sri Lanka. Examining the impact of Product quality, product price, convenience, Delivery service, Payment methods, After-sale service, and Data security on customer satisfaction in online shopping in Sri Lanka is the specific objective. The methodology is carried out by using purposeful sampling strategies to collect data from 365 online customers of nine provinces in Sri Lanka through the use of an online questionnaire. Seven hypotheses were tested using a variety of statistical approaches, such as independent sample t-tests, one-sample tests, and descriptive statistics, as part of a deductive research methodology. After examining the data, it became clear that demographic variables including income, gender, age, and education had no bearing on consumer satisfaction with online purchases. Nevertheless, product quality, convenience, payment methods, after-sale service, and data security were highly significant indicators of online customer satisfaction in Sri Lanka. The study found implications and suggested that online retailers prioritize easy-to-use platforms, premium goods, and practical payment options. It emphasizes how crucial data security and after-sale support are to ensuring client happiness. Improving online customer satisfaction requires addressing difficulties with website accessibility, order fulfillment inaccuracies, inconsistent product availability, order processing times, and return policy simplification. Future Works have been discovered, but further research is necessary to generalize and expand understanding. Specifically, qualitative investigations are needed to explore changing trends in the dynamic online retail ecosystem of Sri Lanka and to find underlying reasons behind the elements that have been found.

Keywords: online customer satisfaction, Product quality, product price, convenience, Delivery service, Payment methods, After-sale service, and Data security.

INTRODUCTION

Digital online forms can be used for online purchases. To access user accounts, users must first register on a website or download a mobile app. From there, they must follow a set of instructions that allow them to browse, choose, purchase, and receive goods and services online. Customers can now use the Internet to track their orders. Gentle (2022) outlines a few reasons why online commerce is increasing. Enhanced and user-friendly purchasing process; enhanced return and shipping guidelines; enhanced pricing and better options; enhanced purchasing choices; and enhanced company prospects. Online shopping offers firms, customers, and society at large both opportunities and challenges as it grows and changes. To survive in this market, companies need to adjust to the digital age by streamlining their supply chains, customer support, and online storefronts. While taking advantage of the conveniences of online purchasing, consumers should use caution and safeguard their financial information and privacy. Concerns about cybersecurity, consumer protection, and equitable competition in the digital economy need to be addressed by legislators and regulators. Kotler and Keller (2012) stress the need to use customer-centric marketing strategies. They talk about how important it is to comprehend client demands, develop value propositions, and cultivate enduring client relationships. A key component of this process is ensuring customer satisfaction because happy consumers are more likely to stick with a business and recommend it to others. Additionally, Singh (2006) pointed out that there is a strong correlation between customer happiness, loyalty, and retention, and that customers demand satisfaction when shopping online. Customers can easily meet their requirements and wants by shopping online. With the help of a website or other substitute app, customers can place orders directly with suppliers or companies.

Particularly in Sri Lanka’s business community, where e-commerce has become increasingly prevalent in recent years, the role of the digital world has expanded. Between 2018 and the present, the percentage of internet users in the country has risen dramatically from 30% to an incredible 51%. Furthermore, according to Kemp (2021), 37% of these internet users are active users of one or more social media platforms.

10.90 million People in Sri Lanka used the internet in 2022, per Kemp. In January 2021, 50.8% of Sri Lankans had access to the internet. Between 2020 and 2021, there was an increase of 800 thousand internet users in Sri Lanka (+7.9%).It should be made very apparent that, thanks to strong internet penetration, online shopping has become an increasingly popular modern channel for Sri Lankan customers in recent years. Sri Lankans are increasing their online purchases and time spent on the internet. It further stated that online shopping and e-commerce are rapidly expanding in Sri Lanka Kemp (2022).

Even while digital platforms for online shopping are easy to use (Vakulenko et al., 2019), e-retail transactions cannot be completed until customers receive the products they have ordered. Online shopping is becoming more and more popular, but there is still a significant study gap. This is especially true in Sri Lanka, where there isn’t a systematic literature review that looks at the elements that affect online customer satisfaction (Athapaththu & Kulathunga, 2018).

Enhancing customers’ repurchasing intents in the e-commerce environment requires addressing security, trust, simplicity of use, and privacy issues, according to studies by Jayathilaka (2020) and Deyalage and Kulathunga (2020). Unfortunately, there is currently a dearth of literature on customer satisfaction in online purchasing, as previous research has mostly focused on a small number of variables, primarily those influencing the desire to make an online purchase (Athapaththu & Kulathunga, 2018). The resultant dispersed knowledge regarding the variables affecting online customer satisfaction makes it difficult to comprehend the dynamics of this important component.

Furthermore, there is a sizable knowledge vacuum as a result of the challenges individual researchers have had in finding pertinent variables while studying consumer happiness in the online setting. Given this disparity, it is imperative to investigate how personalization affects e-commerce platform online customer pleasure. In order to improve repurchase intentions in the context of online purchasing in Sri Lanka, this study intends to fill in the gaps in the literature by identifying the key elements impacting online customer satisfaction. Main Research Question is “What are the key factors that affect customer satisfaction in online shopping in Sri Lanka?”.

LITERATURE REVIEW

The landscape of online customer satisfaction is nuanced and multifaceted, with the necessity for businesses to not only embrace but also excel in the realm of electronic commerce. Deyalage and Kulathunga (2019) emphasize the transformative role that online shopping plays, making it imperative for businesses to not only offer a seamless digital experience but also prioritize the provision of high-quality products. The equation is further complexified by the expectation for diverse options at affordable prices, placing companies at the nexus of a delicate balance.

Within this context, the chapter critically reviews various types of literature that orbit the central theme of factors influencing customer satisfaction in online shopping in Sri Lanka and globe. The need for this scrutiny is underscored by the imperative for businesses to grasp the intricacies of customer satisfaction dynamics. By delving into the collective wisdom of previous researchers, we seek a comprehensive understanding of the nuanced factors that various scholars have identified as pivotal in shaping the landscape of online customer satisfaction.

As we traverse the scholarly terrain, it becomes evident that numerous researchers have lent their insights to the discourse, each offering a unique perspective. Therefore, this literature review acts as a means of assimilating and synthesizing the wealth of previously examined knowledge. By doing this, we hope to uncover differences in viewpoints as well as commonalities, enhancing the conversation and advancing a more comprehensive knowledge of the variables affecting consumer happiness in Sri Lankan online purchasing.

Online shopping has become a revolutionary force in the quickly changing world of modern commerce, transforming the ways in which customers access and buy goods and services. Virtual shops’ accessibility and convenience have replaced traditional brick-and-mortar shopping experiences since the internet’s inception. Online shopping offers a wide variety of things, from specialty items to daily necessities, and a convenient way for customers to browse, compare, and buy products either at home or on the go. The appeal of internet buying is its capacity to cross national borders and provide consumers access to a worldwide marketplace. User-friendly interfaces, safe payment systems, and an abundance of options that suit a wide range of interests and preferences define this digital retail experience. Innovations like augmented reality, artificial intelligence, and personalized recommendations further improve the online buying experience, making it more user-friendly and customized to individual needs, as technology breakthroughs continue to transform the e-commerce scene. But as the online shopping environment grows, new issues and concerns arise, like the need for dependable logistics, cybersecurity risks, and the effect on conventional retail models. This introduction lays the groundwork for an exploration of the complex world of online buying, including its history, benefits, drawbacks, and the dynamic interactions that occur between users and digital marketplaces in this rapidly changing age of business.

Product Quality

Garvin (1987) “The capacity of a product to meet a customer’s need and be considered as superior is referred to as quality. “According to Garvin (1987), “Quality refers to a product’s capacity to fulfil a customer’s need and is considered to be of superior quality.” A simpler definition of product quality is provided by Kotler et al. (2008), who state that it is the product’s capacity to successfully carry out its specified function. This includes things like accuracy, dependability, longevity, usability, and serviceability.

Furthermore, Kotler (2012) pointed out that customer happiness depends on the caliber of the product and service. The American Society for Quality (1946) defined quality as the culmination of a product or service’s attributes that influence its capacity to satisfy explicit or implicit needs. Garvin (1986) proposed an eight-dimensional framework for considering the core components of product quality. Because each dimension is independent and different, a

Above all researchers accepted and concluded that there is a significance impact between Product Quality and online Customer satisfaction so that following a comprehensive literature survey, the researcher formulated the following hypothesis.

H1: There is a significant impact of product quality on customer satisfaction of online shopping in Sri Lanka.

Product Price

Product price is the amount of money charged for a product or service. Kotler and Keller (2012) explained that it affects to buying power of the customer. Further, they explained that Consumer buying power has changed due to disintermediation via the Internet, and consumers have substantially increased their buying power. From the home, office, or mobile phone, they can compare product prices and features and order goods online from anywhere in the world 24 hours a day, 7 days a week, bypassing limited local offerings and realizing significant price savings. Further, Purchase decisions are based on how consumers perceive prices and what they consider the current actual price to be not on the marketer’s stated price. The Pricing Strategy Matrix is very important for pricing. Sheng, Yeen, Luen, and, Peng (2018) also have identified “there is a significant relationship between price and online consumer satisfaction”. Lin etc. al (2010) mentioned that perceived price affects E-commerce satisfaction.

Foremost, researchers universally acknowledged and concluded that a significant impact exists between product price and online customer satisfaction. Building upon insights gathered from the literature survey, the researcher formulated the following hypothesis.

H2: There is a significant impact of product Price on customer satisfaction of online shopping in Sri Lanka.

Convenience

Convenience serves as the effortless pathway for engaging in online transactions. The investigation conducted by Nurdianasari and Indriani (2019) reveals that access, search, evaluation, attention, transactions, possession, and post-possession exhibit a positive correlation with satisfaction in the context of online shopping. Furthermore, the research by Kosovo Scholars Prebreza and Shala (2021) emphasizes the appeal of online shopping due to its alignment with busy lifestyles and the time-saving advantage it offers over traditional shopping methods. Consumers benefit from the comfort of home shopping, reduced travel time, cost savings, and simplified payment processes.

Karim (2013) underscores the impact of time-saving and easy ordering systems on convenience. The concept of time-saving involves steering clear of queues, a particularly relevant consideration for modern customers who find traditional grocery store queues undesirable. Online shopping addresses this concern by providing a queue-free shopping experience. The study also advocates for sellers to have a dedicated web page or application linked with a database to enhance sales.

In a study by Diyalage and Kulathunga (2020), convenience emerges as a pivotal factor influencing online customer satisfaction. Sachitra (2019) echoes this sentiment, emphasizing the significant impact of convenience on online shopping experiences. Hien et al. (2020) highlight the positive influence of convenience on individual customer satisfaction, specifically in the context of purchasing goods on Facebook. Sachitra’s (2019) work in the Sri Lankan context reinforces the importance of convenience, indicating its significant influence on customer satisfaction in online shopping.

Foremost, researchers universally acknowledged and concluded that a significant impact exists between convenience and online customer satisfaction. Building upon insights gathered from the literature survey, the researcher formulated the following hypothesis.

H3: There is a significant impact of convenience on customer satisfaction of online shopping in Sri Lanka.

Delivery Service

Delivery service means sellers need to deliver goods, and services to customers’ doorsteps and what they ordered without any delay. That service should be reliable, minimum cost, and guaranteed service to customers. Consumers rate delivery price guides, delivery guarantees, and delivery schedules as key information that they expect before online shopping Mofokeng (2021). Customers evaluate the attributes of delivery time, such as the overall minimization of delivery time, alerts about any potential delays in shipping, and a shipment tracking number Handoko (2016).

Further, He explained that Customer services that are important in online retail, such as easy return policies and faster delivery services, significantly affect consumers’ purchase decisions (Handoko 2016). Nguyen, and Tan (2021) have identified “there is a strong and positive relationship between customer satisfaction and delivery service”. Lin etc. al (2010) mentioned Delivery Service affects E-commerce satisfaction.

Foremost, the above researchers universally acknowledged and concluded that a significant impact exists between Delivery Service and Online Customer Satisfaction. Building upon insights gathered from the literature survey, the researcher formulated the following hypothesis.

H4: There is a significant impact of Delivery Service on customer satisfaction of online shopping in Sri Lanka.

Payment Methods

Guo, Ling, and Liu (2012), Chinese researchers, discovered a favorable relationship between online customer happiness and payment methods. A variety of payment options are accessible in Sri Lanka, such as bank transfers, credit and debit card payments, Easy Cash service, e-wallets, cash on delivery, mobile payments, cryptocurrency payments, and e-commerce payment gateways. Customers place a high value on these payment methods’ security because it protects their money and personal data. According to Deyalage and Kulathunga (2020), there is a strong and noteworthy correlation between online consumer satisfaction and payment methods.

Foremost, above researchers universally acknowledged and concluded that a significant impact exists between Payment Methods and Online Customer Satisfaction. Building upon insights gathered from the literature survey, the researcher formulated the following hypothesis.

H5: There is a significant impact of Payment Methods on customer satisfaction of online shopping in Sri Lanka.

After-Sales Service

According to Kotler (2002), after-sales service-which is the help a business offers a customer after they make a purchase-is an essential component of customer engagement. Furthermore, Purwati, Ben, Fitrio, and Hamzah (2020) discovered a strong positive association between online consumer satisfaction and after-sale service. Kotler recognized a number of crucial elements of after-sale support, such as warranty coverage, accessory availability, and maintenance and repair services.

Kotler (2002) emphasized the warranty’s critical role in post-purchase servicing. A guarantee gives the customer peace of mind that they can use the goods under certain circumstances and that any flaws or damages will be fixed by replacement or repair.

Kotler (2002) emphasized the critical significance that spare parts supply plays in the provision of accessories. The inability of spare parts to function properly can prevent product components from operating as intended, making the product unusable.

Kotler (2002) also noted that maintenance and repair services are crucial elements of post-purchase support. In order to maximize the usability of their products, manufacturers and dealers should make sure they are properly maintained and repaired throughout their lives. Aslam and Farhat (2020) found that after-sales service entails offering continuous support, service, and spare parts beyond the first sale, with a favourable influence on customer satisfaction. This dedication to delivering exceptional service is in line with their results.

Based on the comprehensive literature survey, the researchers developed the following hypothesis. This hypothesis is supported by the insights of both Kotler (2002) and Aslam & Farhat (2020), reinforcing the significance of After-Sales Service in fostering customer contentment.

H6: There is a significant impact of After-Sale Service on customer satisfaction of online shopping in Sri Lanka.

Data Security

Numerous studies have delved into the intricate relationship between Personal Data Security and Online Customer Satisfaction. Gurung and Raja (2016) have delineated the significance of specific personal data, such as date of birth, social security number, home telephone number, and credit card information, in shaping the customer’s online experience. Online merchants have deployed various technologies aimed at enhancing the shopping process, including the option to retain credit card details and gather data to discern consumer preferences.

In the pursuit of a seamless online shopping journey, online retailers employ tools like cookies to track customers’ interactions and transactions. Despite these conveniences, customers retain the ability to disable cookies in their privacy settings and re-enter passwords. Bobalca and Tugulea (2016) underscored the pivotal role of Data Security in fostering online customer satisfaction, a sentiment echoed by Sachitra (2019) in the context of Sri Lanka.

Kasuma et al. (2020) have identified that Data Security significantly influences customer perceptions of online shopping. Data Security plays a pivotal role in shaping customer satisfaction and perception in the realm of online shopping. Following indicators were identified.

In the study assessing factors influencing customer satisfaction in online shopping in Sri Lanka, various variables were considered with corresponding indicators. Data security emerged as a crucial variable, encompassing personal data protection, financial status security, and transactional data protection. The latter includes safeguarding card information and addressing concerns related to cookies. Additionally, the prevalence of fake sellers was examined as a distinct variable, involving scrutiny of seller’s information and item information. The study utilized specific survey questions adapted from previous research conducted by Wijesundara (2008), Gurung & Raja (2016), and Kasuma et al. (2020) to gauge respondents’ perceptions and experiences in these key areas. This comprehensive examination of variables and indicators aims to provide insights into the multifaceted aspects of Data Security and the presence of fraudulent sellers, contributing to a more nuanced understanding of factors affecting customer satisfaction in the online shopping landscape in Sri Lanka

Foremost, the above researchers universally accepted and concluded that there is a significant impact between product quality and online customer satisfaction. Following an extensive literature survey, the researcher formulated the following hypothesis.

H7: There is a significant impact of Data Security on customer satisfaction of online shopping in Sri Lanka.

In this novel research endeavour, the gauge of online customer satisfaction encompasses seven (7) independent variables. Correspondingly, Deyalage and Kulathunga (2020), in their own exploration, delved into the factors impacting online customer satisfaction in the domain of online shopping, portraying it as a dependent variable. Their study brings to light crucial indicators of online customer satisfaction, namely the intention to repurchase and customer loyalty.

Further insights from Sachitra (2019) elucidate that elements such as convenience, website functionality, security, and customer service wield substantial influence over customer satisfaction within the online shopping landscape, specifically within the Sri Lankan context. The literature review underscores the pertinence of these factors as integral contributors to the overall satisfaction of online customers.

Despite the wealth of research on customer satisfaction in a broad sense, it becomes apparent from the literature review that a consensus is yet to be reached regarding the factors germane to the rapidly evolving modern society in Sri Lanka. The researcher recognizes the dynamic nature of this environment and endeavours to contribute new insights by scrutinizing the unique determinants of online customer satisfaction within this swiftly changing societal landscape.

The study on customer satisfaction in online shopping in Sri Lanka is designed around key variables, each with specific indicators contributing to a thorough analysis. Sachitra (2019) and Deyalage & Kulathunga (2020 found that there are many factors that influence online customer satisfaction in the online shopping landscape in Sri Lanka.

METHODOLOGY

The methodology is a crucial component of the study.

Conceptual Framework

Conceptual Framework

Figure 3.1: Conceptual Framework

Above conceptual framework was designed According to Kano’s model (1986), and Perceived Value Theory of Zeithaml (1988). The seven hypotheses were also developed as follows.

Hypothesis Development 

The researcher formulated the following hypotheses based on the findings from the literature survey.

H1: There is a significant impact of Product Quality on customer satisfaction of online shopping in Sri Lanka.

H2: There is a significant impact of Product Price on customer satisfaction of online shopping in Sri Lanka.

H3: There is a significant impact of Convenience on customer satisfaction of online shopping in Sri Lanka.

H4: There is a significant impact of Delivery Service on customer satisfaction of online shopping in Sri Lanka.

H5: There is a significant impact of Payment Methods on customer satisfaction of online shopping in Sri Lanka.

H6: There is a significant impact of After-Sale Service on customer satisfaction of online shopping in Sri Lanka.

H7: There is a significant impact of Data Security on customer satisfaction of online shopping in Sri Lanka.

McCombes, and Bhandari (2023) defined a research design is a strategy for answering your research question using empirical data. According to that described research design as ‘a logical model of proof that allows the researcher to draw inferences concerning causal relations among the variables under investigation’. According to Airth (2021), the various issues involved in the research design concern the purpose of the study, the type of investigation, the type of sample, which will be used, the methods by which the required data will be collected, as well as the process that will be followed for the analysis.

Induction and deduction are two ways in drawing conclusions to research. According to Airth (2021), ‘deduction is the process by which we arrive at a reasoned conclusion by a logical generalization of a known fact, while induction, on the other hand, is a process where we observe a phenomenon and, on the basis, arrive at a conclusion’.  These two forms may differ in the data gathered through observation, which may lead to the formulation of hypothesis and theory while those gathered via logical reasoning lead to the acceptance or rejection of hypotheses. This research adopted the deductive approach.

This study is an application of research. Applied research is a subset of scientific inquiry that is carried out primarily

to address real-world problems, offer answers to practical challenges, or aid in the creation of beneficial applications. In contrast to fundamental research, which aims to increase scientific knowledge for its own sake, applied research is concentrated on producing useful results and having an immediate influence on a particular subject or industry.

Transforming scientific knowledge into workable solutions that benefit industry, society, and other areas of human endeavour requires applied research. It is essential for solving urgent problems and raising standards of living.

Research Approach is deductive research approach. A deductive research approach involves starting with a general theory or hypothesis and testing it through specific observations or empirical evidence. It follows a structured and logical process, moving from the general to the specific. It includes Formulation of a Hypothesis or Theory, Development of Research Design, Data Collection, Analysis of Data, Drawing Conclusions, Generalization, and Communication of Results. Deductive research is commonly associated with quantitative research methods, where numerical data is analyzed to test hypotheses. Based on the nature of the research question, the objective, and the methodology, investigations can be categorized into different sorts. This examination is meant to provide an explanation. The goal of an explanatory study, sometimes referred to as explanatory research or causal research, is to determine and clarify the links between variables. Explanatory study is to identify the elements or cause-and-effect relationships that lead to a specific phenomena or result. Explanatory study goes deeper into comprehending the motivations behind observable patterns or behaviours, as contrast to descriptive research, which concentrates on describing a condition. In this research study, hypothesis testing is done.

The individual Sri Lankan internet shopper serves as the main analytical unit for this research study. Through an examination of these consumers’ experiences, behaviors, and preferences, the study seeks to fully understand the variables that either support or undermine customer happiness in the context of online buying. It is possible to gain a sophisticated understanding of the various elements that affect consumer satisfaction in the unique cultural and commercial context of Sri Lanka’s online retail scene by using individual online shoppers as the unit of analysis. In order to acquire data for this research project, individual Sri Lankan internet users were used.

In research, the term “time horizon” describes the temporal scope or time frame that is used to perform an investigation or gather data. It denotes the amount of time the researcher spends observing, quantifying, and examining the relevant phenomenon. The choice of time horizon is a crucial component of research design and is influenced by the goals, nature of the research question, and kind of study being carried out. Data collection is done using a cross-sectional temporal frame.

The researcher should have a view to achieving the research objectives. Research philosophy is associated with the assumption, knowledge, and nature of the study.  According to that, the concept of research philosophy can be defined as an elaborate area characterized by four types such as pragmatism, positivism, realism, or Interpretivism. Based on the types of data collection techniques included and data analysis techniques involved, research philosophies have been characterized by these types.

On the contrary, under the concept of positivism philosophy highly structured study is conducted that involves large sets of samples, and analysis techniques usually include both quantitative and qualitative techniques. Mainly primary data collection is conducted for the positivist philosophy. Lastly, unless the research subject matter fits the chosen method, realism philosophy cannot be undertaken. According to Dudovskiy (2023) has mentioned that Interpretivism ensures that smaller sets of samples are investigated and analysed qualitatively. After considering the theories of each of these types, positivism research philosophy had been chosen and followed throughout the research study.

Justification: Positivism has been selected as the most appropriate research philosophy because it allowed the researcher to work with large sets of primary data samples, which is necessary to achieve the research objectives for this study. Moreover, the positivism philosophy allowed the information delivered from the positivist philosophy is mainly derived from the sensory experience and interpreted through logic and reason. The positivism analysis. Under this philosophy, the researcher also had the freedom of conducting both quantitative and qualitative data analysis techniques. The information delivered from the positivist philosophy is mainly derived from the sensory experience and interpreted through logic and reason. The positivism  philosophy holds gives valid knowledge on the online shopping effectiveness in the retail industry. Therefore, for all these reasons, this philosophy is thought to be the most appropriate one for this study.

RESULTS AND DATA PRESENTATION

According to the online survey, there are three hundred sixty five (365) respondents. The majority represents from the age between 16-35 category and most of respondents are 204 females. Majority of respondents have the income level below 20000 rupees in Sri Lanka because of university students are among these respondents.  Most respondents represent from the occupations in public sector.

4.1 Demographic Variables

Demographics Categories N %
Age 16-35 261 71.5
36-45 74 20.3
46-60 30 8.2
Total 365 100
Gender Male 161 44.1
Female 204 55.9
Total 365 100
Monthly Income Below 20000 Rupees 141 38.6
21000-50000 Rupees 102 27.9
51000-100000 Rupees 91 24.9
Above 100000 Rupees 31 8.5
Total 365 100.0
Current Occupation Student 107 29.3
Public Sector 126 34.5
Self-employed 12 3.3
Professional (doctor, engineer, lecturer, etc.) 28 7.7
Retired 2 0.5
Private sector 68 18.6
semi government 8 2.2
other (specify) 14 3.8
Total 365 100.0

Above table shows that majority of respondents are female as well as above table shows that most respondents have the income between 1-50000 rupees. Most respondents represent from the category of Student, Public Sector and Private Sector.

Reliability

To assess the internal consistency of the constructs, a reliability test was performed. The results are shown in Table 4.2

Table 4.2: Results of Reliability Analysis

Variable Number of Items Cronbach’s Alpha
Product Quality 5 0.926
Product Price 3 0.899
Convenience 7 0.952
Delivery Service 4 0.892
Payment Methods 3 0.687
After-Sale Service 3 0.896
Data Security 6 0.889
Customer Satisfaction 4 0.907

The Reliability analysis revealed that all dimensions showed adequate values of Cronbach’s Alpha. The normal value is greater than 0.7 is acceptable for eight (8) items. Above Table shows for Product Quality with five items (0.926), Product price with three items (0.899), Convenience with seven items (0.952), Delivery Service with four items (0.892), Payment Methods with three items (0.687), After Sale Service with three items (0.896), Data Security with six items (0.889) and Customer Satisfaction with four items (0.907). Overall value of all items is 0.966. All the Cronbach’s Alpha values are greater than point eight (0.8) and having excellent internal consistency. Therefore, collected data can used for further processing.

Table 4.3: Descriptive statistics

Descriptive Analysis

To identify the basic nature of the research variables, descriptive statistics were calculated. Those are shown in Table 4.3.

 4.3 Descriptive Analysis

Variable Mean Std. Deviation Skewness Kurtosis
Statistic Std. Error Statistic Std. Error of Kurtosis
Product Quality 3.98 1.037 -1.343 0.128 0.892 0.255
Product Price 4.13 0.928 -1.356 0.128 1.685 0.255
Convenience 4.12 0.879 -1.713 0.128 2.998 0.255
Delivery Service 4.16 0.878 -1.449 0.128 1.994 0.255
Payment Methods 3.90 0.778 -0.779 0.128 1.067 0.255
After-Sale Service 3.99 0.878 -0.834 0.128 0.309 0.255
Data Security 4.00 0.859 -1.059 0.128 0.553 0.255
Customer Satisfaction 3.88 0.901 -0.969 0.128 0.950 0.255

The descriptive statistics for Product Quality indicate a favourable overall mean score of 3.98 (Standard Deviation 1.037), reflecting a positive level of satisfaction among online customers. Similarly, the statistics for Product Price reveal a commendable mean score of 4.13 (Standard Deviation 0.928), indicating a high level of satisfaction among customers in terms of pricing. The convenience statistics exhibit an overall mean score of 4.12 (Standard Deviation 0.879), signifying positive satisfaction with the convenience aspect.

Furthermore, the Delivery Service statistics present an overall mean score of 4.16 (Standard Deviation 0.878), highlighting positive satisfaction among online customers regarding delivery services. The statistics for Payment Methods show an overall mean score of 3.90 (Standard Deviation 0.778), demonstrating positive satisfaction in this domain. After-Sale Service statistics display an overall mean score of 3.99 (Standard Deviation 0.878), indicative of positive satisfaction post-purchase.

Additionally, the statistics for Data Security reveal an overall mean score of 4.00 (Standard Deviation 0.859), demonstrating positive satisfaction with the security measures in place. Customer Satisfaction statistics present an overall mean score of 3.88 (Standard Deviation 0.901), indicating positive satisfaction among online customers in this aspect.

An analysis of skewness and kurtosis values reveals that the master of independent variables and the dependent variable fall within the -2 < skewness < +2 range, with sums within -1 ≤ Skewness ≤ -1/2. This suggests that the data are approximately normally distributed. Moreover, the kurtosis values of these variables fall within 3 and exhibit a positive sign, indicating a normal distribution of the data.

To evaluate whether there is a significant difference between male and female to online customer satisfaction, independent samples test was performed. Table 4.4shows the result.

Table 4.4: Result of t-test

Sex Mean Std. Deviation t value Sig.
Male 3.82 0.876 -1.172 0.242
Female 3.93 0.919
p-value for the  Levene’s test for equality of variance = 0.40

Mean Difference = -0.11

Standard Difference (tc) = -1.172

Mean Difference = -0.29, 0.07

With a standard deviation of 0.876 for the 161 males and 0.919 for the 204 females, the sample means are 3.92 and 3.93 for the males and females, respectively. The Levene’s test for equality of variance has a p-value of 0.40. It is reasonable to presume equality of variances because the p-value is greater than 0.05. Thus, the data in the first row of the preceding table will be used for the test of equality of means. The standardized difference, tc = -1.172, is equal to the mean difference of -0.11. The test’s two-tailed p-value is 0.242, which is greater than 0.05. The mean difference’s 95% confidence interval is [-0.29, 0.07], which includes 0. As a result, the test’s p-value is greater than 0.05 and the 95% confidence interval for the mean difference includes the tested value of 0. Therefore, there is no gender difference in the mean customer satisfaction.

One-way ANOVA was used to investigate differences in respondents’ levels of income with regard to online customer satisfaction. Table 4.5 reproduces its outcome.

Table 4.5: Result of ANOVA for monthly income with Online Customer Satisfaction

The Level of Income N Mean Std. Deviation Std. Error
Below 20000 Rupees 141 3.84 0.543 0.046
21000-50000 Rupees 102 3.56 1.217 0.121
51000-100000 Rupees 91 4.18 0.866 0.091
Above 100000 Rupees 31 4.23 0.692 0.124
Total 365 3.88 0.901 0.047
P-value Levene’s test = 0.000

Table 4.6:One-way ANOVA

Sum of Squares df Mean Square F Sig.
Between Groups 22.627 3 7.542 9.9985 0.000
Within Groups 272.699 361 0.755
Total 295.326 364

The sample mean of Salary below 20,000 is 3.84 with a standard deviation of 0.543. The sample mean of salary between 21,000 and 50,000 is 3.56 with a standard deviation of 1.217. The sample mean of Salary between 51,000 and 100000 is 4.18 with a standard deviation of 0.866. The sample mean of Salary above 100000 is 4.23 with a standard deviation of 0.692. But the p-value for the Levene’s test for equality of variance is 0.000 of the test of homogeneity of variances, which is less than 0.05 even though the p-value of ANOVA test is less than 0.05 which is 0.00. Thus, equality of variances is not assumed.

Table 4.7: Result of ANOVA Education Level with Online customer satisfaction

Education Level N Mean Std. Deviation Std. Error
Up to ordinary level 10 3.45 0.483 0.153
Up to advanced level 60 3.57 0.797 0.103
Up to a degree 208 3.84 0.997 0.069
Above degree 87 4.23 0.603 0.065
Total 365 3.88 0.901 0.047
P-value Levene’s test = 0.000

The sample mean up to Ordinary Level is 3.45 with a standard deviation of 0.483. The sample mean up to Advanced Level is 3.57 with a standard deviation of 0.797. The sample mean up to Degree Level is 3.84 with a standard deviation of 0.997. The sample mean above degree is 4.23 with a standard deviation of 0.603. But the p-value for the Levene’s test for equality of variance is 0.000, which is less than 0.05. Thus, quality of variances is not assumed. In this case a nonparametric test must be performed for further processing since results are valid.

Correlation Analysis

To identify the relationship between key research variables, correlation analysis was used. The results are shown in Table 4.8

Table 4.8: Result of Correlation Analysis (Pearson Correlation Coefficient Analysis)

Variables(Sig .Values) Product Quality Product Price Convenience Delivery Service Payment Methods After-Sale Service Data Security Customer Satisfaction
Product Quality 1
Product Price 0.738

(0.000)

1
Convenience 0.624

(0.000)

0.699

(0.000)

1
Delivery Service 0.449

(0.000)

0.542

(0.000)

0.690

(0.000)

1
Payment Methods 0.396

(0.000)

0.529

(0.000)

0.557

(0.000)

0.694

(0.000)

1
After-Sale Service 0.536

(0.000)

0.496

(0.000)

0.596

(0.000)

0.683

(0.000)

0.526

(0.000)

1
Data Security 0.297

(0.000)

0.461

(0.000)

0.595

(0.000)

0.726

(0.000)

0.616

(0.000)

0.580

(0.000)

1
Customer Satisfaction 0.349

(0.000)

0.483

(0.000)

0.616

(0.000)

0.601

(0.000)

0.585

(0.000)

0.547

(0.000)

0.589

(0.000)

1

**. Correlation is significant at the 0.01 level (1-tailed).

As indicated in Table 4.8, the p-value for the correlation between Product Quality and Online Customer Satisfaction is 0.000, falling below the 0.01 significance level. Consequently, the correlation is statistically significant at the 0.01 level, with Pearson’s correlation coefficient measuring 0.349. This finding establishes a positive relationship between Product Quality and Online Customer Satisfaction, thereby providing support for the first hypothesis of the study (H1).

Similarly, the p-value for the correlation between Product Price and Online Customer Satisfaction is 0.000, below the 0.01 threshold. The correlation is statistically significant at the 0.01 level, with a Pearson’s correlation coefficient of 0.483. This outcome substantiates a positive relationship between Product Price and Online Customer Satisfaction, endorsing the second hypothesis (H2) of the study.

For Convenience and Online Customer Satisfaction, the p-value is 0.000, less than 0.01, signifying statistical significance. Pearson’s correlation coefficient of 0.616 at the 0.01 level establishes a positive relationship between Convenience and Online Customer Satisfaction, aligning with the third hypothesis (H3) of the study.

The p-value for Delivery Service and Online Customer Satisfaction is 0.000, below 0.01, indicating statistical significance. Pearson’s correlation coefficient of 0.601 at the 0.01 level confirms a positive relationship between Delivery Service and Online Customer Satisfaction, supporting the fourth hypothesis (H4).

Likewise, the p-value for Payment Methods and Online Customer Satisfaction is 0.000, less than 0.01, demonstrating statistical significance. The Pearson’s correlation coefficient of 0.585 at the 0.01 level affirms a positive relationship between Payment Methods and Online Customer Satisfaction, corroborating the fifth hypothesis (H5).

The p-value for After Sale Service and Online Customer Satisfaction is 0.000, below 0.01, indicating statistical significance. The Pearson’s correlation coefficient of 0.547 at the 0.01 level establishes a positive relationship between After-Sale Service and Online Customer Satisfaction, supporting the sixth hypothesis (H6).

Additionally, the p-value for Data Security and Online Customer Satisfaction is 0.000, less than 0.01, signifying statistical significance. Pearson’s correlation coefficient of 0.589 at the 0.01 level indicates a positive relationship between Data Security and Online Customer Satisfaction, endorsing the seventh hypothesis (H7).

Ultimately, the correlation statistics reveal that Product Quality, Product Price, Convenience, Delivery Service, Payment Methods, Sale Service, and Data Security have a positive impact on online customer satisfaction.

Regression Analysis

The previous section investigated the relationship between key research variables. This section aims to examine those relationships using regression analysis. In regression analysis, online customer satisfaction was entered as the dependent variable and Product Quality, Product Price, Convenience, Delivery Service, Payment Methods, After Sale Service, Data Security were entered as predictors. The results are reproduced in Table 4.9.

Table 4.9 Result of Regression Analysis

 Adj. R2 = 0.513   F Value = 53.627    Sig F = 0.000     Durbin-Watson = 1.747
Variable Unstandardized Coefficients Standardized Coefficients t Sig./P-value VIF
B Std. Error Beta
(Constant) 0.263 0.197 1.336 0.183
Product Quality -.129 0.052 -.148 -2.454 0.015 2.668
Product Price 0.083 0.062 0.086 1.345 0.179 2.967
Convenience 0.324 0.065 0.316 5.016  0.000  2.907
Delivery Service 0.015 0.071 0.015 0.211  0.833  3.493
Payment Methods 0.259 0.063 0.224 4.126 0.000 2.150
After-Sale Service 0.184 0.057 0.179 3.234 0.001 2.248
Data Security 0.161 0.061 0.154 2.645 0.009 2.467
a. Predictors: (Constant), Data Security, Product Quality, Payment Methods, After Sale Service, Convenience, Product Price, Delivery Service
b. Dependent Variable: Online Customer Satisfaction

The p-value (sig value) of the regression analysis table is less than 0.001, which means that at least one the variables Product Quality, Product Price, Convenience, Delivery Service, Payment Methods, After Sale Service and Data Security can be used to predict the Online Customer Satisfaction. When the VIF values are less than 5, multi-collinearity is not an issue.

The adjusted R2 value of 0.513, read as fifty-one and three tenths per cent variation in customer satisfaction due to online buying can be explained by the variables Product Quality, Product Price, Convenience, Delivery Service, Payment Methods, after Sale service and Data Security. The resulting Durbin-Watson statistic of 1.747 does not turn out distantly from two.

Hypothesis one posited a substantial relationship between Product Quality and online Customer satisfaction in the context of online shopping in Sri Lanka. The obtained p-value for Product Quality, at 0.015, is below the significance threshold of 0.05. Consequently, it is affirmed that Product Quality stands as a noteworthy predictor for online customer satisfaction. This outcome aligns with and validates the initial hypothesis of the study (H1).

The Second Hypothesis posited there is a significant impact between Product Price and online Customer satisfaction towards online shopping in Sri Lanka. But the p-value for Product Price is 0.179, which is more than 0.05. Thus, Product Price is a not significant predictor for online customer satisfaction. This result doesn’t supports the second hypothesis of the study (H2).

Third Hypothesis posited there is a significant impact between Convenience and online Customer satisfaction towards online shopping in Sri Lanka. The p-value for Convenience is 0.000, which less than 0.01. Hence, Convenience is a significant predictor for online customer satisfaction. This result supports the third hypothesis of the study (H3).

Fourth hypothesis defined there is a significant impact between Delivery Service and online Customer satisfaction towards online shopping in Sri Lanka.  But the p-value for Delivery Service is 0.833, which is more than 0.05. Thus, Delivery Service is a not significant predictor for online customer satisfaction. This result doesn’t supports the fourth hypothesis of the study (H4).

Fifth Hypothesis explained that there is a significant impact between Payment methods and online Customer satisfaction towards online shopping in Sri Lanka. However, the p-value for Payment Methods is 0.000, which is less than 0.01. Thus, Payment Methods is a significant predictor for online customer satisfaction. This result supports the fifth hypothesis of the study (H5).

Sixth hypothesis posited that there is a significant impact between After-Sale Service and online Customer satisfaction towards online shopping in Sri Lanka. However, the p-value for After Sale Service is 0.001, which less than 0.01. Hence, After Sale Service is a significant predictor for online customer satisfaction. This result supports the sixth hypothesis of the study (H6).

Seventh Hypothesis defined that there is a significant impact between Data Security and online Customer satisfaction towards online shopping in Sri Lanka. The p-value for Data Security is 0.009, which less than 0.01. Hence, Data Security is a significant predictor for online customer satisfaction. This result supports the sixth hypothesis of the study (H7).

CONCLUSION AND RECOMMENDATION

The analysis of the collected data has provided valuable insights into the factors influencing online customer satisfaction in the context of Sri Lankan online shopping. Each variable and hypothesis is discussed separately, drawing conclusions based on the empirical findings.

Product Quality (H1):

H1: There is a significant impact of Product Quality on customer satisfaction of online shopping in Sri Lanka.

The results indicate a significant impact of Product Quality on online customer satisfaction, with a p-value of 0.015. This aligns with previous research highlighting the pivotal role of product quality in determining customer satisfaction. Businesses are advised to prioritize delivering high-quality products to enhance customer satisfaction. A comprehensive examination of empirical data concerning product quality underscores coherent and mutually supporting conclusions across diverse research endeavours. Razak, Nirwanto, and Triatmanto (2016) underscored the significance of product quality, underscoring that superior product quality achieved through product conformity and competitive pricing via affordability can significantly augment customer value. This resonates with the findings of Yuan et al. (2020), who verified a positive correlation between product quality and customer satisfaction. Additionally, Lin et al. (2010) reinforced this consensus by affirming that product quality has a direct impact on satisfaction, particularly within the context of E-commerce. The convergence of these outcomes underscores the universal importance of product quality in shaping customer perceptions and satisfaction, a theme consistently echoed across various studies. The collective body of evidence points to a shared understanding among researchers regarding the pivotal role played by high product quality in cultivating positive customer experiences and satisfaction within the realms of business and E-commerce. This study further validates these insights.

Product Price (H2):

H2: There is a significant impact of Product Price on customer satisfaction of online shopping in Sri Lanka.

Contrary to the hypothesis, the p-value for Product Price is 0.179, indicating it is not a significant predictor of online customer satisfaction. This finding diverges from some previous studies suggesting the importance of pricing. However, in the Sri Lankan context, other factors may have a more pronounced influence on satisfaction, guiding businesses to focus on these aspects rather than price alone.A comparative examination of empirical data on product price yields divergent perspectives from different studies. Sheng, Yeen, Luen, and Peng (2018) asserted a significant relationship between price and online consumer satisfaction, aligning with the notion that pricing plays a pivotal role in shaping customer contentment. Lin et al. (2010) further supported this sentiment by stating that perceived price influences E-commerce satisfaction.However, it is noteworthy that this current study does not align with the aforementioned findings. In contrast to the identified significance of price in the satisfaction equation according to Sheng et al. (2018) and Lin et al. (2010), this study diverges in its conclusions on the impact of price on online consumer satisfaction. The nuanced variations in findings underscore the complexity of the factors influencing satisfaction in the context of product pricing, reflecting the need for a nuanced understanding of the dynamics involved.

Convenience (H3):

H3: There is a significant impact of Convenience on customer satisfaction of online shopping in Sri Lanka

The study affirms the significance of Convenience in impacting customer satisfaction. P-value is 0.000. Easy navigation, intuitive interfaces, and seamless shopping experiences contribute significantly. These findings concur with established literature emphasizing the role of convenience in shaping positive online shopping experiences.A comparative analysis of empirical data concerning the role of convenience in online transactions underscores a consistent and widespread consensus among various research studies. Nurdianasari and Indriani (2019) conducted an investigation revealing that aspects such as access, search, evaluation, attention, transactions, possession, and post-possession exhibit a positive correlation with satisfaction in the realm of online shopping. Similarly, Kosovo Scholars Prebreza and Shala (2021) emphasize the appeal of online shopping, citing its alignment with busy lifestyles and the time-saving advantage it provides compared to traditional shopping methods.Karim (2013) underscores the impact of time-saving and easy ordering systems on convenience, particularly in avoiding queues-an aspect deemed undesirable by modern customers in traditional grocery store settings. Diyalage and Kulathunga (2020) and Sachitra (2019) both identify convenience as a pivotal factor influencing online customer satisfaction, echoing the sentiment that the ease and efficiency of the online shopping process significantly impact customer experiences.Hien et al. (2020) specifically highlight the positive influence of convenience on individual customer satisfaction, focusing on the context of purchasing goods on Facebook. The study by Sachitra (2019) in the Sri Lankan context further reinforces the importance of convenience, indicating its significant influence on customer satisfaction in online shopping.Overall, researchers universally acknowledge and conclude that a substantial impact exists between convenience and online customer satisfaction. This current study aligns with and confirms these findings, contributing to the collective understanding of the paramount role that convenience plays in shaping positive online shopping experiences and customer satisfaction.

Delivery Service (H4):

H4: There is a significant impact of Delivery Service on customer satisfaction of online shopping in Sri Lanka.

It is noteworthy to assert that, in the realm of online customer satisfaction, the delivery service is not a pivotal factor. P-value is 0.833.While timely and efficient delivery undoubtedly plays a role in the overall customer experience, it does not emerge as a singularly significant determinant of satisfaction. Mofokeng (2021) emphasizes the importance of a reliable, cost-effective, and guaranteed delivery service. Consumers, according to Mofokeng, prioritize information such as delivery price guides, guarantees, and schedules as crucial factors influencing their decision-making process in online shopping. Handoko (2016) expands on the attributes of delivery time, highlighting the significance of minimizing overall delivery time, providing alerts about potential delays, and furnishing a shipment tracking number. Furthermore, Handoko underscores the impact of customer services, including easy return policies and faster delivery services, on consumers’ purchase decisions in the online retail landscape.Contrary to the findings of Nguyen and Tan (2021), who identify a strong and positive relationship between customer satisfaction and delivery service, this current study diverges in its conclusions on the impact of delivery service on overall satisfaction. Lin et al. (2010) align with the broader consensus by mentioning that delivery service affects E-commerce satisfaction.In summary, while there is a prevailing agreement among many studies regarding the significance of delivery service in influencing customer satisfaction, this particular study presents findings that do not support the identified strong positive relationship between online customer satisfaction and delivery service. The nuanced variations highlight the multifaceted nature of consumer perceptions and expectations in the realm of online retail.

Payment Methods (H5):

H5: There is a significant impact of Payment Methods on customer satisfaction of online shopping in Sri Lanka.

The analysis highlights the importance of Payment Methods in online customer satisfaction. Offering secure and flexible payment options positively influences customer satisfaction. P-value is 0.000. This aligns with previous research emphasizing the role of payment convenience in shaping positive customer experiences.A comparative analysis of empirical data on payment methods in the context of online customer satisfaction reveals a consistent and congruent perspective. Chinese researchers Guo, Ling, and Liu (2012) unveiled a positive correlation between payment methods and online customer satisfaction, emphasizing the pivotal role of payment processes in shaping the overall satisfaction of online shoppers. In the Sri Lankan context, various payment methods are available, encompassing Credit and Debit card payments, Easy Cash service, Bank transfers, E-Wallets, Cash on delivery, Mobile payments, Cryptocurrencies, and e-commerce payment gateways.The security of these payment methods stands out as a paramount concern for customers, safeguarding both their financial resources and personal information. Deyalage and Kulathunga (2020) affirm the existence of a robust and significant relationship between payment methods and online customer satisfaction, further supporting the notion that the security and efficiency of payment processes contribute significantly to the positive experiences of online shoppers.In concurrence with these findings, this study aligns with the identified positive correlation between payment methods and online customer satisfaction. The collective evidence underscores the importance of diverse, secure, and convenient payment options in enhancing customer satisfaction within the realm of online transactions.

After-Sale Service (H6):

H6: There is a significant impact of After-Sale Service on customer satisfaction of online shopping in Sri Lanka.

The P-value is 0.001.The study reinforces the critical role of After-sale Service in determining customer satisfaction. Efficient customer support, hassle-free returns, and clear communication channels contribute significantly. This finding resonates with previous literature underscoring the importance of post-purchase support in enhancing customer satisfaction.A comparative examination of empirical data on after-sale service reveals a consistent and reinforcing perspective across multiple studies. Kotler (2002) underscores the critical importance of after-sales service, defining it as the assistance provided by a company to a customer post-purchase. This recognition emphasizes the integral role that post-purchase support plays in fostering customer engagement.Purwati, Ben, Fitrio, and Hamzah (2020) contribute to this consensus by identifying a significant positive correlation between after-sale service and online customer satisfaction. Similarly, Aslam and Farhat (2020) confirm this relationship, further supporting the notion that the quality of after-sale service significantly impacts the satisfaction levels of online customers.In alignment with these findings, this study also supports the identified positive correlation between after-sale service and online customer satisfaction. The collective evidence emphasizes the enduring importance of robust after-sale support as a key driver in enhancing customer satisfaction and loyalty in the realm of online business transactions.

Data Security (H7):

H7: There is a significant impact of Data Security on customer satisfaction of online shopping in Sri Lanka.

The P-value is 0.009. The research establishes the critical importance of Data Security in online customer satisfaction. Robust security measures reassure customers, fostering trust and confidence. This aligns with contemporary concerns and emphasizes the need for businesses to invest in robust data security practices.A comparative analysis of empirical data on data security in the context of online shopping presents a consistent and corroborative perspective across various studies. Kasuma et al. (2020) have identified that data security significantly influences customer perceptions of online shopping. This recognition underscores the crucial role that secure data practices play in shaping customer trust and confidence in online transactions.Wijesundara (2008) and Gurung & Raja (2016) contribute to this consensus by confirming the significance of data security. Their findings align with the notion that robust data security measures are pivotal in influencing customer perceptions and trust in the online shopping environment.In line with these identified correlations, this study also supports the conclusion that data security is a significant factor influencing customer perceptions in online shopping. Collectively, the evidence highlights that there is a unanimous recognition of robust data security practices in ensuring securitization and reliability of online shopping for customers. In addition to product quality, convenience mechanisms such as payment needs; after-sales service provisions also helps influence satisfaction among online consumers besides reliable data protection measures. So the study only confirms significance of these variables in determining a successful online shopping. Companies should pay more attention to high-quality goods, convenience improvement and its provision of secure payment solutions after sale services implementation with the best modern data protection methods just to make their customers happy. Nevertheless, to provide a favorable online shopping environment for businesses it is important to highlight the supreme quality of product available with them apart from improving the convenience during purchase process along with introducing secure and flexible ways payment while at last emphasizing on reliable customer service along data security. With such a drive, the happy customer toils for every company and ensures that they are loyal which indeed leads business growth.

Conclusion

According to the literature review there is a lack of research which have used a systematic literature review process to examine the factors affecting online customer satisfaction in Sri Lanka and many practical issues regarding the customer satisfaction in online industry. Therefore this study is conducted to identify factors identifying the online customer satisfaction.

The study identified the seven (07) variables such as Product Quality, Product Price, Convenience, Deliver Service, Payment Methods, After Sale Service and Data Security affected to the online customer satisfaction. Based on the above findings the 7 hypotheses was developed (H1, H2, H3, H4, H5, H6, H7). Researcher has discussed the findings as under following title.

According to the literature review there is a lack of research which have used a systematic literature review process to examine the factors affecting online customer satisfaction in Sri Lanka and many practical issues regarding the customer satisfaction in online industry. Therefore this study is conducted to identify factors identifying the online customer satisfaction.

The study identified the seven (07) variables such as Product Quality, Product Price, Convenience, Deliver Service, Payment Methods, After Sale Service and Data Security affected to the online customer satisfaction. Based on the above findings the 7 hypotheses was developed (H1, H2, H3, H4, H5, H6, H7). aFinally, According to the findings it is concluded that Correlation analysis using Pearson correlation has concluded that all the variables have positive impact to the online customer satisfaction (all correlations are significant at the level of 0.05 (1-tailed)) since all the significant values are less than 0.05. Base on the correlation analysis all seven hypothesis are supported. According to the regression analysis Product Quality, Convenient, Payment Methods, After Sale Service and Data Security were significant predictors to the online customer satisfaction in Sri Lanka.

But, Product Price and Delivery Service were not significant predictors base on the regression analysis.

Finally, satisfied customers form the foundation of any successful business as customer satisfaction leads to repeat purchase, brand loyalty, and positive word of mouth. Satisfied customers are most likely to share their experiences with other people. The satisfied customer speak about valuable after Sale Service too. In the very competitive marketing environment, Online sellers and vendors should think and implement market plans and strategies to increase Product Quality, Convenience, Payment Methods, After-Sale Service and, Data Security, through online sales because they have been considered highly by the online customer when they buy products and services.

Recommendation

Based on the comprehensive findings and insightful discussions presented in this research study, a set of strategic recommendations are proposed for online sellers and vendors aiming to enhance their performance and customer satisfaction in the dynamic online business environment:

  • Prioritize Product Quality:

Online sellers must prioritize offering high-quality products to ensure customer satisfaction. The study underscores the significant impact of product quality on online customer satisfaction. Therefore, it is imperative for sellers to refrain from selling subpar products, as this directly influences customer perceptions and loyalty.

  • Competitive Pricing Strategies:

Though the research shows that pricing is not only factor towards deciding online customer satisfaction, they should be afforded at a fair price tag. Though it may not be a major predictor, this strategy proved to be very efficient in attracting and retaining customers which enhances the overall satisfaction derived from online shopping.

  • Optimize Delivery Services:

Despite delivery service not being a significant predictor, online sellers should not underestimate its importance. Sellers should pay close attention to their delivery services, ensuring timely and reliable shipments. A seamless delivery process contributes to customer satisfaction and positive brand perception.

  • Enhance Convenience and Payment Methods:

Online vendors should prioritize improving convenience and payment methods. This involves implementing smooth digital platforms, embracing technological advancements, and providing various payment options. Adapting to evolving technologies ensures that customers find the online shopping experience convenient and secure.

  • Secure and Diverse Payment Options:

Recognizing customer concerns about payment methods, online sellers should focus on providing secure and convenient payment options. This proactive approach addresses a significant predictor and builds trust among customers, encouraging repeat business and positive word-of-mouth.

  • After-Sale Services Commitment:

Despite challenges, online sellers should honour their commitment to after-sale services. As a significant predictor of customer satisfaction, providing comprehensive after-sale services, as outlined in contracts and obligations, is essential for building trust and loyalty among online customers.

  • Prioritize Data Security:

Given the significance of data security as a predictor, online sellers must prioritize the protection of customer privacy data. Implementation of robust security measures is essential, and government organizations should regulate seller behaviour and conduct to ensure compliance with data protection standards.

  • Encourage Customer Feedback:

Online sellers should actively seek customer feedback and experiences. Facilitating easy channels for customers to share their opinions contributes to a continuous improvement cycle, enabling sellers to address concerns, refine services, and enhance overall customer satisfaction.

In conclusion, by embracing these strategic recommendations, online sellers and vendors can position themselves for success in the competitive online marketplace, fostering positive customer experiences and loyalty.

Further Studies

In light of the rapidly evolving technological landscape and the increasing complexity of customer needs and preferences, future research endeavours should be directed towards adapting to these changes and exploring the dynamics of online customer satisfaction. The emergence of the online Green business marketing concept adds another layer of complexity to the online business market, warranting thorough investigation in future studies. While this study has identified Product Quality, Convenience, Payment Methods, After-Sale Service, and Data Security as significant predictors of online customer satisfaction in Sri Lanka, it is essential to generalize these findings through further studies that involve a more diverse set of variables. The current study focused on establishing relationships, emphasizing the need for future qualitative research studies to delve deeper into understanding the genuine reasons behind the impact of these variables on online customer satisfaction. Additionally, future studies should consider analysing individual platforms for online shopping in Sri Lanka separately, recognizing their unique attributes and implications. Furthermore, exploring other variables such as internal organizational processes, the efficiency of delivery services, and electronic quality factors can contribute to a more comprehensive understanding of the factors influencing online customer satisfaction. As technology and consumer behaviours continue to evolve, ongoing research efforts are crucial to staying ahead of the curve and providing valuable insights for businesses to enhance their online offerings.

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