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This document is a project report submitted by Abdul Rafay and Muhammad Maaz in partial fulfillment of the requirements for a Bachelor of Business Administration degree from Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology. The report examines factors affecting customer satisfaction of online shopping stores in Hyderabad, Sindh. It explores how website design, product quality, and shipping impact customer satisfaction. The report includes an introduction, literature review on the key factors, methodology used in the research, results and findings from data collection and analysis, and conclusions.

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0% found this document useful (0 votes)
40 views43 pages

Completed

This document is a project report submitted by Abdul Rafay and Muhammad Maaz in partial fulfillment of the requirements for a Bachelor of Business Administration degree from Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology. The report examines factors affecting customer satisfaction of online shopping stores in Hyderabad, Sindh. It explores how website design, product quality, and shipping impact customer satisfaction. The report includes an introduction, literature review on the key factors, methodology used in the research, results and findings from data collection and analysis, and conclusions.

Uploaded by

Maaz harthy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Factors Affecting Customer Satisfaction of Online Shopping

Stores in Hyderabad, Sindh

A PROJECT REPORT

Submitted by

Abdul Rafay (1611249)

Muhammad Maaz (1611354)

In partial fulfillment for the award of the degree

Of

BACHELOR OF BUSINESS ADMINISTRATION

SHAHEED ZULFIQAR ALI BHUTTO INSTITUTE OF SCIENCE

AND TECHNOLOGY

SZABIST
Declaration of Originality
We hereby undertake and disclose that we have conducted our project according to all rules
and regulations described by SZABIST in order to complete our BBA Research Project. The
project has been undertaken to fulfill the requirements of the BBA degree program offered by
SZABIST, Hyderabad.
Moreover, we declare that this project is an original piece of work and that all additional
sources of information has been duly cited. Furthermore, internet sources, published or
unpublished works from which we have quoted and drawn references have been cited. We
understand that failure to non-compliance of this, will result in earning “F” grade or
cancellation of the Research Project.
We understand that we will be called for a presentation/viva and we are duty bound to attend
it. We acknowledge that it is our responsibility to ensure our availability during
presentation/viva period and we also understand that this project will stand cancelled in case
we fail to submit the required information at time.

Name: _______Mahad Abbas___________________________________

Signature: _______________________________________ Date:


________________________

Name: ____________Abdul Rafay___________________

Signature: _______________________________________ Date:


________________________

Name: _______Muhammad Maaz______________

Signature: _______________________________________ Date:


________________________

Verified: _________________________________________

Supervisor: _______________________________________

ii
ACKNOWLEDGEMENT

Above all, we would like to express our gratitude to Almighty Allah, who has helped us with
the chance to write this article.

We would likewise want to thank our supervisor and counselor afterwards. Dr. Abdul
Ghafoor Kazi lecturer at SZABIST Hyderabad Campus. It is all a product of his
encouragement, cooperation and direction that we can create this report he provided us the
right directions to complete this report. Without their support this study would not have been
done, we would like to express our appreciation to the respondents for supplying us with all
the requisite data for the report that we are also very fond of their kind and welcoming
attitude.

3
ABSTRACT

In this study, the customer satisfaction of online shopping stores in Hyderabad is examined
by analyzing how the three selected independent variables website design, product quality
and shipping that affects the dependent variable customer satisfaction. In this study there are
224 respondents that are representing the overall population of Hyderabad, Sindh. These 224
respondents consist of male and female, married and un-married and from age 18 to 37 and
above 37. Convenience sampling technique is used in selecting the sample. Questionnaire
having 20 items were distributed among 224 respondents to collect data. SPSS software is
used to analyze the data, reliability test was used to test the reliability of questionnaire,
correlation and regression test is used to analyze the data. Results showed that website
design, product quality and shipping has a positive and significant impact on customer
satisfaction, In website design the easiness in searching of product, safety that website
provide while purchasing, easy navigations, website layout and quality information about the
product. In product quality the ensured product quality, reliable information, diversified
products with diversified quality, information that is consistent with the quality of product
and guaranteed product quality, And in shipping the free shipping, concerns of customer that
whether the ordered product will be delivered or not, delivery of wrong products, size of
ordered products, freshness of the product have positive and significant impact on customer
satisfaction. Service providers need to expand their emphasis on highlighting website design,
product quality and shipping in their communication strategies in order to address obstacles
in online customer satisfaction.

4
TABLE OF CONTENTS

CHAPTER NO 1: INTRODUCTION…………………………………………………………7

1.1 Research Background: …………………………………………………………………….7

1.2 Problem Statement: ………………………………………………………………….......10

1.3 Purpose of study: ………………………………………………………………………...10

1.4 Research objective: ………………………………………………………………………10

1.5 Research Question: ...………………………………………………………………….....11

1.6 Research Hypothesis: …………………………………………………………………....11

1.7 Scope of Study: ……………………………………………………………………….....11

1.8 Significance for the study: ……………………………………………………………….11

1.9 Research Limitations: ...………………………………………………………………….12

CHAPTER NO 2: LITERATURE REVIEW: ………………………………………………13

2.1 Website design: ………………………………………………………………………….13

2.2 Product Quality: …………………………………………………………………………15

2.3 Shipping: ………………………………………………………………………………...17

2.4 Customer satisfaction: …………………………………………………………………..19

2.5 Research Model Constraint: ……………………………………………………………..21

2.6 Research Framework/Conceptual Framework: ………………………………………….21

CHAPTER NO: 3 METHODOLOGY: ……………………………………………………..22

3.1 Research Design: ………………………………………………………………………...22

3.2 Population and Sample: ………………………………………………………………….22

3.3 Data Collection Methods: ………………………………………………………………..23

3.4 Data Analysis: …………………………………………………………………………...24

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CHAPTER NO 4: RESULTS AND FINDINGS: …………………………………………..25

4.1.1: Gender: ………………………………………………………………………………..25

4.1.2: Age of Respondents: ………………………………………………………………….26

4.1.3: Martial Status of Respondents: ……………………………………………………….27

4.2 Reliability: …………………………………………………………………………….....28

4.3: Correlations: ……………………………………………………………………….........29

4.4: Regression: ……………………………………………………………………………...30

4.5: Model Summary: ……………………………………………………………………......30

4.6: ANOVA: ………………………………………………………………………………..31

4.7 COEFFICIENTS: ………………………………………………………………………..31

4.10: Findings: ……………………………………………………………………………….32

CHAPTER NO: 5 CONCLUSION, RECOMMANDATION AND IMPLICATION: ……..34

5.1: Conclusions: ………………………………………………………………………….....34

5.2: Recommendation: ………………………………………………………………….…...34

5.3: Implications: ……………………………………………………………………….……35

References: …………………………………………………………………………………..36

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CHAPTER NO 1:

INTRODUCTION

1.1 Research Background:


The term e-commerce refers to the purchase and sale on the internet of goods or services and
the transfer of money and data to carry out these transactions. Since online shopping was
developed as an alternative medium in combination with traditional offline retail outlets,
online shopping or electronic retailing has caught the interest of many retailers (Harn,
Khatibi, & Ismail, 2006). The Internet has become a global phenomenon for any citizen as it
offers a unified forum that helps people to connect with each other. Online shopping is a type
of e-commerce in which the user may purchase goods or services directly from the retailer
over the internet. The purpose of the buyer to purchase relies on the presentation of the
webpage, quality data and product video clipping narration, rather than physical experience.
(Kolesar and Galbraith, 2000). E-commerce is an online type of operation, as the Internet
serves as a single network that links buyers and sellers (Turban, King, Lee, Liang, &
Turban, 2015). This has also led businesses to approach their consumers in a semi direct way.
Advantage of cost cutting has also been the factor for businesses to acquire the -commerce
platform. Costs that had previously, before the invention of internet or the concept of e-
commerce, been incurred in traditional marketing and spreading awareness among consumers
as well. The advantage of cost savings was also the reason for corporations to acquire the e-
commerce platform. Costs that were historically experienced in traditional advertisement and
spreading awareness to buyers before the invention of the internet or the concept of e-
commerce. Because of simplicity, comfort, flexibility, cost reductions, time savings and fast
delivery relative to conventional or traditional shopping, shoppers are now turning towards
online shopping. As a result of rapid e-commerce growth, customers are no longer restricted
by the timing or location, purchasing of goods and services is just a few clicks away. E-
commerce (internet shopping) has been going on for over 40 years, and new inventions and
technology are continuously growing and more companies are joining the online markets.
Online shopping can be described as an operation that deals with the sale of products and
services over the Internet, and it is important for marketers to be mindful of how online sales

7
are viewed by customers. Nowadays, analysts expect that e-commerce will easily take place
instead of conventional business in a short period of time (Heng and SH 2003).

Website design of online shopping store contain various feature that helps the customer in
purchasing the products. In online retailing, website architecture plays an important role, as it
directly influences consumers during the buying process. The website's features decide the
perception of consumers towards the online shop. This understanding is particularly
important for first-time users and to enforce the usability mind set of users on the website.
(GUO et al., 2012). The quality of website design plays a vital role in attracting the
customers, as it contains quality information about the product, seller and manufacturer,
secure payment methods that will secure personal data and payment of customers, delivery
options, posting the real images and videos of the products, these things helps in building the
trust of customer on online web stores. You can also say that website design of an online
store attract the customers just like the ambiance of the physical store attract the customers.

Product quality requires the integration of features capable of fulfilling customer expectations
(wants) and the updating of products (goods) in order to give satisfaction to consumers and
free them from any flaws or defects. Alam and Yasin (2010) stated that the four main factors
affecting the loyalty of online shopping customers are product quality, discounts, product
range, and delivery performance. Customer satisfaction is influenced by product efficiency,
package quality and safety expectations, and the associated information decreases transaction
costs and risks (Park and Kim 2001). (Zia Ullah, Yi and Akhter 2014) they claims that the
most basic determinant of consumer satisfaction is product quality in terms of efficiency.
The higher the quality of the product, the more consumers are drawn to your online store,
product quality plays important role in satisfying customer, the better the quality the higher
the customer satisfaction will be, Online store consumers are always conscious of the
product's quality because they order the product by visually seeing it (through images and
videos). And mostly, the questions from consumers are about the quality of the product they
have purchased online. When purchasing online consumers are unable to physically inspect
goods, it is therefore responsibility of a producers to ensure the quality of the product and
provide a way for customers to inquire full details of the product being bought online. Studies
suggests that product quality is a key factor to create brand loyalty among consumers. In fact
quality assurance, for some people, is the sole attribute of a brand that keep consumers loyal

8
and satisfied to that brand. Therefore it is mandatory for a business to provide a way of
transparency and better quality products to the customers buying online as well.

Shipping is a mechanism that refers to the actual transport or transition from one location to
another of goods/products, and often involves the product packaging that has to be
transported. E-commerce retailing has always been connected to this method, without which
online retailing will not be coordinated. In order to forecast customer satisfaction relative to
price, on-time delivery and shipping and handling are ranked moderately significant, which is
also what e-commerce research has highlighted. (Reibstein, 2002). While people are found to
be less worried about the shipping aspect, it may be an absurd type of decision to assign it
less significance. Post purchase process is begins when the order has been completed by the
user on an internet shopping website, it is a post-purchase process for which the online
retailer is entirely responsible. Customers are mainly concerned with the period during which
the product is delivered, so commitment is the primary source of value for generating
customer satisfaction. The delivery quality is another source that indicates customer
satisfaction, a product must be properly treated and shipped to the customer safely otherwise
disappointments from the consumers would lead online companies to lose their future
business. Studies also indicated that online retailers follow efficient and effective tactics to
deal with the burden for delivery and maintain a competitive advantage over other online
retailers.

Customer satisfaction is known in marketing literature as one of the most researched


constructs. In a dynamic world, this plays a significant role because of the potential to attract
current customers and to introduce new customers. (Tandon et al., 2017). The key factor for
success is customer satisfaction and it relies strongly on the actions of frontline service
providers. Customers should be managed as assets, and their desires, interests, and purchase
habits should differ between customers (Hsieh et.al 2016).Customer satisfaction is one of the
main factors, or you can say that it is a crucial factor that plays a very important role in the
failure and success of your business, because customers are the source of return in every
business, customers pay the price and in exchange, they get products or services, and
customers not only want the product or service, But they also want the product or service
according to their expectations, if the product or service meets the expectations of the
customers, they will be happy and satisfied, and if the product or service does not meet the

9
expectations of the customers, they will be sad and dissatisfied. Satisfied customers will
purchase your product or service again and there is a risk that dissatisfied customers will not
buy your product or service again. Satisfied customers spread positive word of mouth that
can lead the business to success and dissatisfied customers spread negative word of mouth
that can lead the business to failure. In order to maintain the competitive edge in the market,
it is important to keep your existing customers in check to because it is easy and cost-
effective to maintain existing customers rather than finding new customers. And this would
only be possible if the customers are satisfied.

1.2 Problem Statement:


From the past researches, it is revealed that very few researches have been conducted on the
customer satisfaction of online shopping stores, the previous studies are carried out in Sri
Lanka (Athapaththu & Kulathunga, 2018), In Dera Ghazi Khan District (Saleem.et.al, 2015),
in Indonesia (Handoko, 2016), in Pune, India (Khedkar.et.al 2015), In Dhaka, Bangladesh
(Das, 2017), But none of the researches has been conducted in Hyderabad, Sindh on customer
satisfaction of online shopping stores. Also Due to the current covid-19 pandemic situation
customers are preferring online shopping more than physical shopping because of this
companies are shifting their businesses from physical store to online stores so that they can
expand their business. Therefore, we are analyzing the impact of website design, product
quality and shipping on Customer satisfaction of online shopping stores in Hyderabad, Sindh.

1.3 Purpose of study:


In this study, the customer satisfaction of online shopping stores in Hyderabad is examined
by analyzing how the three selected independent variables website design, product quality
and shipping that affects the dependent variable customer satisfaction. The hypothesis is
further tested to see if these factors have a significant or insignificant impact on customer
satisfaction.

1.4 Research objective:

1. To determine the impact of website design on customer satisfaction of online shopping


stores.

10
2. To determine the impact of product quality on customer satisfaction of online shopping
stores.

3. To determine the impact of shipping (delivery) on customer satisfaction of online shopping


stores.

1.5 Research Question:


Q1. What is the impact of website design on customer satisfaction of online shopping?

Q2. What is the impact of product quality on customer satisfaction of online shopping?

Q3. What is the impact of shipping on customer satisfaction of online shopping?

1.6 Research Hypotheses:

H1. There is a significant impact of website design on customer satisfaction of online


shopping stores.

H2. There is a significant impact of product quality on customer satisfaction of online


shopping stores.

H3. There is a significant impact of shipping (delivery) on customer satisfaction of online


shopping stores.

1.7 Scope of study:

This research is focused on customer satisfaction of online shopping stores in Hyderabad,


Sindh. 224 individuals who were customers of online shopping stores took part in this
research.

1.8 Significance for the study:


The findings of this study would support the numerous researchers participating in the
management of online stores. In addition to this Research reports, this study would help the
management of online stores to get a clearer viewpoint on the effects and effectiveness of
11
their online stores. The results of this research will be readily accessible in the library and
will offer more knowledge and expertise to learners.

The study will greatly contribute to customer satisfaction literature in the future, which will
later become part of journals or publications that will be useful to other researchers who want
to do further research on this topic.

1.9 Research Limitations:


The limitation to this study is

1. This study is limited to only four variables website design, product quality, shipping and
customer satisfaction.

2. This study is only related to the online shopping stores.

3. In this study 224 people participated, representing as sample size of overall population, and
this sample size can be extended in future.

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CHAPTER NO 2:

LITERATURE REVIEW

2.1. Website design:

Lin.et.al (2015), their findings suggest that e-trust is favorably correlated with both perceived
online privacy and security, while web design is not. In comparison, perceived delivery time
and website architecture are favorably related to e-satisfaction. Both e-trust and e-satisfaction
have a positive effect on e-loyalty for women online clothing shoppers. The findings of this
study allow online shop managers to increase the satisfaction of their consumers. Specifically
online clothing store managers have to build fast item distribution methods and welcoming
online shopping web pages that contain all necessary details and are easy to browse and use
so as to improve customers’ e-satisfaction They will need to create secure and reliable
websites by making it easy for their customers to perceive the privacy and security features of
their websites in order to increase the e-trust of their customers. As e-satisfaction and e-trust
rise, e-loyalty is promoted. Hasan (2016) in this study, Perceived irritation has demonstrated
undesirable effects on different aspects of the customer buying behavior. Despite the
tremendous prevalence of online retail in recent years in online shopping contexts, relatively
little study has addressed perceived customer irritation or its determinants. The goal of this
study is to fill this gap by analyzing the impact of visual, navigational, and information
website design features on the perceived irritation of customers in online shopping activities.

13
In the field of online shopping, the findings of data obtained from online shoppers found that
the three website design features had significant negative effects on perceived irritation.
Khalil (2017) this research contributes to the understanding of the moderator that could
impact website quality in the business environment. Researcher conducted research on the
three features of website design (system, information and service quality). The development
of an accessible and reliable high-quality e-commerce website information and service has
the most potential to impact consumers' initial and continuing buying intentions. Quality
factors of the website (system, information, and service) and market structure/strategy can
affect the perceived risk of customers when making purchasing decisions. The study analyzed
the effect of website quality factors and the perceived risk moderator on purchasing intentions
(initial and continued) based on the test model presented, empirical findings indicated that the
quality of the website has a positive impact on initial intentions, and thus continuing purchasing
intention. Athapaththu & Kulathunga (2018) this research is focused on the intent of Sri
Lankan customers to buy online. In the background of Sri Lanka, there are few studies that
have been carried out to find variables influencing the purpose of online shopping, the study
has found trust to be a key factor influencing the intention to buy online, Online retailers
should use various mechanisms to create favorable attitudes towards trust in the minds of
consumers and thereby draw customers to the web store. In addition, for website designers,
the significant and constructive relationship between website quality and trust has important
consequences. Website quality is one of the main influences shaping the decision to shop
online, and thus designers should pay special attention to this aspect when creating the
website content on the company site. According to the results, websites that are convenient
and easy to use raise trust in web retailers and thereby increase the desire to shop online.
Sahay.et.al (2019) in their research, they found that Website features not only make it easier
for customers to buy, but also provide them with a simple hedonic attribute of enjoyment by
convenient browsing. It has been seen that two components information content efficiency
and web in formativeness are the best predictors of customer satisfaction in the Indian online
shopping industry. Third, web entertainment was reduced to far third position. Effectiveness
of the information quality has the greatest effects on consumer retention and even on
customer loyalty. This has a very critical influence on online managers. They should
concentrate more on delivering reliable, up-to-date, detailed and appropriate information on
their websites. Any lack of information may move the consumer to the competitor.

14
However, in this study variable (Website design) is describe on the basis of easiness in
searching of product, safety that website provide while purchasing, easy navigations, website
layout and quality information.

2.2. Product Quality:

Saleem.et.al (2015). This research was conducted in Dera Ghazi Khan District, Pakistan. The
findings of this research show that customer satisfaction acts as a partial mediating variable in
the overall relationship between the perceived quality of the product and the purchase
intention. The finding shows that the perceived quality of the goods has a direct positive
relationship with the purchasing intention and customer satisfaction. The finding of positive
relationship among these variables has confirmed that the peoples of D.G khan district are
quality conscious; they give preference to quality product. The finding of a positive
relationship between these variables has confirmed that the peoples of the D.G. Khan district
are aware of quality; they prefer quality products. They assess the quality of the product in
terms of its durability, reliability and sustainability. This study found that the purchase
intention of the customer is significantly related to the Perceived Quality and Purchase Intent
with Consumer Satisfaction and the perceived quality of the product . Handoko (2016) in this
study researcher run the multiple regression test in their study and the outcome of the
multiple regression study indicates that the major influence of product quality on the
satisfaction of online customers at Zalora Indonesia exists. In this study, the quality of the
product, the variety of the product and the availability of the product are described. This
result has similar results with Lin, et al. (2011) which reported that product quality in online
shopping has increased consumer loyalty positively. This outcome occurs because consumers
can not personally determine the quality of a product, particularly in online shopping, so they
must rely on information given by online shops. They prefer to continue visiting the

15
particular online shop when the offer is received by consumers and meets their standards.
This result is similar with research conducted by Patterson in Zia Ullah, Yi and Akhter
(2014), they claims that the most basic determinant of consumer loyalty is product quality in
terms of efficiency. This outcome advises that online shop owners have consistent quality
goods, sell different attractive products and guarantee the usability of products to their
consumers. Therefore, in online shopping, these kinds of product-related features will build,
maintain and boost customer loyalty. Putra.et.al (2017) the research was conducted in
Indonesia, researchers tested three factors in their research (product quality, perception of
service quality, perception of Customer Loyalty) and check their impact on retail customer
behavior and found only one dominant factor which influences the attitude of retail
customers, which is the perception of the product quality. The results of this research also
show that the perception of product quality also affects sale volume significantly, the greater
the perception of the quality of products, the greater the volume of sales generated by the
retail customer. Amron (2018). The purpose of study was to assess the customer purchase
decision model for MPV cars in Bandung, Indonesia. The study showed that the quality of
the product would affect the purchasing behavior of consumers. The results suggest that
product quality can have a positive effect on customer decisions. The maintained quality
delivered to high-quality customers will improve the purchase decision. The study also
recommends that the management of the company include special features in their MPV cars,
because respondents argued that customers prefer MPV cars not just because they are
economically dependent on fuel consumption, but also because they have convenience-
providing features that are specific in design. Also Managers should also render the seat
shape so that it can be dynamically tilted to boost the comfort of the passenger.Vasic.et.al
(2019) a positive effect on customer satisfaction is often seen by product quality as a
determinant of online shopping. The findings obtained agree with the fact that the quality of
the product and service will improve customer satisfaction. Nevertheless it is important to
note that this study is related to the emerging industry, where prices and shipping still do not
have a commanding impact on quality. For certain factors, in contrast to a variety of studies,
the findings obtained are significantly different. These studies show that online retailers can
include a good range of items. It is highly relevant if one recognizes that a customer cannot
personally rate the quality of the goods, but rather rely on the details and product observed on
a website. The customer shapes their expectations on the basis of the website offer; if they are
met, e-shoppers will be satisfied and will continue shopping online. Conversely, they would

16
feel disappointed if expectations are not fulfilled. The fundamental dimension of satisfaction
is expressed according to quality.

however, in this study variable (Product quality) is describe on the basis of quality of
products, reliable information, diversified products with quality, information that is consistent
with the quality of product, guaranteed product quality.

2.3. Shipping:

Jayasubramanian.et.al (2015) in this study, researchers tested different online shopping


factors and rated them according to the results, they give forth rank to the product delivery
(shipment) out of six factors.  Findings found that the majority of 36 percent of respondents
faced the obstacles of too slow delivery or too late delivery in online shopping and the
majority of 76 percent of respondents pay for online shopping by cash on delivery, 08% of
respondents faced the problem of product not arriving at all in online shopping, 16 percent of
respondents faced the problem of product arriving in damaged condition in online shopping,
08% of respondents faced the problem of wrong items being shipped in online shopping. Ma
(2016). The aim of the study is to examine the impact of a logistics service quality dimension
(delivery time) interfering with shipping charges and purchasing importance in the sense of e-
commerce on customer satisfaction and purchasing intentions. The theoretical framework that
plays a mediating role in the relationship between delivery time and customer satisfaction, as
well as between delivery time and purchase, is seen to be unpredictable in terms of perceived
uncertainty and perceived riskiness. Results showed that increased delivery time dramatically
increased the perceived uncertainty and perceived riskiness of consumers, which decreased
satisfaction and negatively influenced buying intentions. In comparison, free shipping
decreased the perceived uncertainty of consumers when the delivery period was long, but
reinforced the sense of ambiguity when the delivery time was short. Coşar.et.al (2017) this
17
report focuses on the role of delivery services in online purchases and their impact on
customer loyalty. The delivery service is one of the most important online shopping activities
related to logistics, the success of which directly affects the degree of satisfaction. Researcher
plan to study what can or can be achieved by online web shops and e-commerce companies to
have a meaningful effect on the degree of consumer satisfaction. The study found that in
consumer loyalty and in the decision-making process, the delivery process plays an important
role in whether or not to buy items from a web shop.  Researchers have discovered that
delivery systems and privacy policies play the most important role in shopping online in these
cultures, but the income status of a person shows no clear link to consumer loyalty.
Researcher acknowledge that any issues with the delivery process can have a negative impact
on the order and the buyers, and that it affects how their needs can be met. Cao.et.al (2018)
The aim of this paper is to explain the role of post-purchase logistics services in customer
satisfaction and future purchase decisions, and to recognize any discrepancies between China
and Taiwan. The study's structural equation review showed that post-purchase delivery and
monitoring have an impact in both China and Taiwan on consumer satisfaction. It also found
that the most critical aspect among the studied histories for online shoppers in China is
customer service. While in Taiwan, return service is more important for shoppers. Finally,
customer satisfaction in Taiwan has played a greater positive role for online shoppers relative
to their counterparts in China. Vasic.et.al (2019) the study also found that the delivery service
had the greatest effect on the satisfaction of the online customer. This finding relates to the
fact that the logistics service on the Serbian market has not been adequately established to
ensure the effective and secure delivery of the goods purchased. Customers can find and
purchase a product in the Internet world, very quickly and conveniently, at a mouse click;
hence, they also expect a smooth, consistent and reliable delivery. However, deliveries are
often too late, struggling to satisfy the expectations of the customer. It can also happen that
the understanding of the content of the produced product does not meet the expected quality
of the product. All this helps consumers feel frustrated with delivery. The findings obtained
are consistent with the argument that shipping has a significant impact on customer
satisfaction. For example, Research done in China demonstrates that shipping and the
consistency of the shipped product directly impact customer satisfaction. Online trade does
not consider time and space barriers. Consumers can shop everywhere, e.g. in the office, in
the dormitory or at home. As it is important for goods to be shipped by hand to consumers;
hence, distribution plays a key role in online commerce. If delivery is not free of charge,
customers will pay a great deal of interest to the specific item of customer satisfaction. It has
18
been proven that online shopping, usability, protection and distribution play a key role in
satisfying the needs of customers and keeping them happy.

However, in this study variable (Shipping) is describe on the basis of free shipping, concerns
of customer that whether the ordered product will be delivered or not, delivery of wrong
products, size of ordered products, freshness of the product.

2.4. Customer Satisfaction:

Khedkar.et.al (2015) this study is conducted by the different researchers of different


universities in Pune, India, in this study, researchers have found that online shopping makes it
very clear that customer satisfaction relies on a variety of factors. This report explores some
of the variables that have a significant effect on consumer satisfaction and will try to develop
the analysis. Through this article, the researcher attempted to perform a decisive analysis of
six determinants extracted from the elaborative literature, i.e. website design, payment
security, Ease of shopping, accurate product details, pricing and on-time delivery services.
The study specifically shows that these determinants have a positive effect on customer
satisfaction from the aspect of online shopping on various e-commerce platforms. In addition,
the results of the study offer insight into the fact that retailers in this field should understand
ways to produce greater performance in order to improve the degree of customer satisfaction
and stand out in a highly competitive online market environment. Retailers should re-evaluate
all of these six factors that have a high effect on customer satisfaction and should initiate and
reconstruct their plans accordingly in order to retain an increasingly competitive market
atmosphere. In fact, these variables serve as customer input while shopping online, what they
feel exactly and what they need while shopping online. This research may play an important
role in assessing and improving their performance. Lee et.al (2016) they said that, the key
factor for success is customer satisfaction and it relies strongly on the actions of frontline
service providers. Customers should be managed as assets, and their desires, interests, and

19
purchase habits should differ between customers. In order to evaluate customer satisfaction
and loyalty, this analysis applied the Taiwan Customer Satisfaction Index model to a tourism
factory. The findings indicate that perceived quality for satisfied and dissatisfied consumers
had the greatest effect on customer satisfaction. In addition, consumer satisfaction is more
important than image for satisfied and dissatisfied consumers in terms of customer loyalty. In
order to evaluate customer satisfaction and loyalty, the contribution of this paper is to suggest
two satisfaction levels of CSI models, helping tourism factory managers successfully increase
customer satisfaction. Compared to traditional techniques, they claim that their approach is
more suitable for decision-making on the distribution of resources and for encouraging
management to set appropriate goals for managing customer satisfaction. Das (2017)  This is
a survey of customers of a specific age group of respondents (20-50 years of age) in Dhaka
City, since they are the customers who mainly shop online in Bangladesh and the purpose of
this study is to identify the key factors influencing customer satisfaction. This paper reflects
on the dramatic shift in the world of online shopping that has been foreseen and the desire
and satisfaction of the consumer for online shopping. Findings showed that online purchasing
intention and satisfaction rely on trustworthiness, budget to be spent, payment process, level
of service in online retailers, merchandise quality, price, speed of delivery of goods, online
shopping experience. This research would serve to improve the efficiency of the business by
ensuring the services that consumers like to receive. Rita.et.al (2018).  The findings of this
study found that the efficiency of e-services had a positive impact on customer satisfaction.
The majority of studies on e-service quality indicates that customer loyalty is the key
determinant of e-service quality. Consumer satisfaction and customer trust have a huge effect
on customer behavior, which managers should integrate into their marketing strategy. Online
retailers normally have feedback features on their websites. Organizations can reinforce the
behavior of WOM by offering "share feedback to friends" features. Once consumers get the
items they have ordered, they will write reviews on the website of the online retailer.
Customers have the ability to share their experiences as a WOM action with their mates.
Small incentives such as exclusive discounts in the next order can inspire consumers to share
their purchase experience with others, which will attract more new customers to the
company's online shop. Vasic.et.al (2019) Consumer satisfaction is positively related to
information availability. In their study the finding obtained is consistent with the argument
that the provision of information has an impact on customer loyalty. The Internet has
streamlined access to details. The higher level of satisfaction is linked to clearer knowledge
on goods and services when shopping online. It is stressed that the details should be up-to-
20
date, precise, credible and total. It is important for online retailers to promise all details on
items that the customer has ever seen. Often the explanation for returning the product can be
inaccurate and incorrect knowledge. It is important to ensure that all information is readily
available with minimal clicks, as well as easily comparable to rivalry and related items. In
addition to the advantages of the information offered by websites to internet shoppers, users
may also benefit from searching the information left by other customers. Consumers can read
feedback from other customers before making an online purchasing decision.

However, in this study variable (Customer satisfaction) is describe on the basis of satisfaction
over payment options, easiness in purchasing, recommending to other consumers, packaging
and enjoyable.

2.5. Research Model Constraint:


“CS = C+ beta1 (WD) + beta2 (PQ) + beta3 (SH) + Error”
Where;
CS = Customer satisfaction. (Dependent Variable)
WD = Website Design. (Independent Variable)
PQ = Product Quality. (Independent Variable)
SH = Shipping. (Independent Variable)

2.6 Research Framework/Conceptual Framework:

Website Design
H1

CUSTOMER
Product Quality H2 SATISFACTION

21
Shipping H3

CHAPTER NO 03:
METHODOLOGY

3.1 Research Design:


The research design is a structure that outlines how market research can be carried out and
involves aims, research limitations and ethical concerns. (Lewis et al., 2009). In this study
explanatory research design is adopted, for a topic that has not been well researched before,
explanatory analysis is carried out, needs goals, creates organizational concepts and produces
a better-researched model. In reality, explanatory analysis is a method of study design that
focuses on explaining the elements of the research. In this study survey method was used to
take the responses from respondents, adopted questionnaire is used which contains 20 items.
Through which we explain the three factors (website design, product quality and shipping)
impact on customer satisfaction of online shopping stores in Hyderabad, Sindh

3.2 Population and Sample:


The population of a research study is participants or the respondents of the study that possess
similar characteristics or traits (Weiss, 2012). As the aim of the study is to find the factors

22
which affect the customer satisfaction in online shopping industry of Hyderabad, Sindh. So
the population consists of male and female who do online shopping in Hyderabad, Sindh.

In this study there are 224 respondents that are representing the overall population of
Hyderabad, Sindh. These 224 respondents consist of male and female, married and un-
married and from age 18 to 37 and above 37.

23
3.3 Data Collection Methods:
Sampling is an important component of primary research, which determines the number of
respondents participating in a research study. Due to a variety of restrictions, including time,
geographic and financial, it is necessary for the study to choose a subset of the population.
Either probability or non-probability may be the sampling form. In this case, the
methodology of 'convenience sampling' is used, which is a method of non-probability
sampling which considers the respondent's accessibility and proximity. (Weiss, 2012).
Questionnaire was distributed among the participants for the survey. The study's data source
is primary, and thus, with the help of the 5-point Likert scale questionnaire, data is gathered
directly from the research participants. Likert scale is measured as follows:
1-Strongly Disagree
2-Disagree
3-Neutral
4-Agree
5-Strongly Agree
Section Variable No. of Five Likert Scale Source
items

1. Website Design 5 Likert Scale Sinha & Chandra


(2013)

2. Product Quality 5 Likert Scale Jahwari.et.al (2018)

3. Shipping 5 Likert Scale Kaurin.et.al (2019)

4. Customer Satisfaction 5 Likert Scale Kaurin.et.al (2019)

24
Table 1: Layout of Questionnaire

3.4 Data Analysis:


Using descriptive statistics, the compiled data was analyzed. A Pearson correlation analysis
and regression analysis of the results were carried out using SPSS. In addition, graphs, pie
charts, ratios, mean and standard deviation were used in the descriptive study to summarize
the sample response while regression analysis is presented through regression tests. Because
the purpose of the research was to investigate how the factors (Website Design, Product
quality and shipping) affects online customer satisfaction.

25
CHAPTER NO 04:

RESULTS AND FINDINGS

We showed the facts and figures about our study in the results and data analysis chapter.
First, we analyze demographic factors for data analysis. We have Gender, Age and Martial
Status in Demographics.

Figure 4.1.1: Gender

The pie chart and table below shows that we have 224 responses out of which 41.1% are male
and 58.9% are female in our research

Table 2:

Gender of respondent

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 92 41.1 41.1 41.1

Female 132 58.9 58.9 100.0

Total 224 100.0 100.0

26
Figure 4.1.2 Age of Respondents

Out of 224 respondents, 8.93% are represented the age group of below-18, 29.46% are
represented the age group of 18-22 years, 31.70% are represented the age group of 23-27
years, 20.09% are represented the age group of 28-32 years, 3.57% are represented the age
group of 33-37 and 6.25% represented the age group of 37-above.

Table 3:

Age of respondent
Cumulative
Frequency Percent Valid Percent Percent
Valid Below-18 20 8.9 8.9 8.9
18-22 66 29.5 29.5 38.4
23-27 71 31.7 31.7 70.1
28-32 45 20.1 20.1 90.2
33-37 8 3.6 3.6 93.8
37-Above 14 6.3 6.3 100.0
Total 224 100.0 100.0

27
Figure 4.1.3. Martial Status Of Respondents

Out of 224 the 52.2% are respresnted the single persons and 47.8% are represented the
married persons.

Table 4:
Marital Status of respondent

Cumulative
Frequency Percent Valid Percent Percent

Valid Single 117 52.2 52.2 52.2

Married 107 47.8 47.8 100.0

Total 224 100.0 100.0

28
4.2 Reliability:

Table 5:
Variable No. of Items Cronbach’s Alpha
Website Design 5 .854
Product Quality 5 .808
Shipping 5 .765
Customer Satisfaction 5 .811

To verify the reliability of our research questionnaire, we used SPSS to determine whether or
not our questionnaire is reliable. For this the ideal value had to be greater than 0.6. And we
got the cronbach’s alpha value for each variable greater than 0.6. (cronbach’s alpha value for
website design .854, product quality .808, shipping .765, customer satisfaction .811)
However for the total number of items, Cronbach's Alpha is excellent. So we can
interpret that all the data and variables drawn from them are reliable.

29
4.3 Correlation:

Table 6:

WD PQ SH CS
Pearson Correlation 1 .567 ** .550** .523**
Website Design Sig. (2-tailed) .000 .000 .000
N 224 224 224 224
Pearson Correlation .567** 1 .524** .461**
Product Quality Sig. (2-tailed) .000 .000 .000
N 224 224 224 224
Pearson Correlation .550** .524** 1 .427**
Shipping Sig. (2-tailed) .000 .000 .000
N 224 224 224 224
Customer Pearson Correlation .523** .461** .427** 1

30
Sig. (2-tailed) .000 .000 .000
Satisfaction
N 224 224 224 224

Correlation of customer satisfaction with website design is positive and moderate as the value
is .523**.

Significance (2-tailed) value of customer satisfaction with website design is .000. (Less than
0.05)

Correlation of customer satisfaction with product quality is positive and moderate as the
value is .461**.

Significance (2-tailed) value of customer satisfaction with product quality is .000. (Less than
0.05)

Correlation of customer satisfaction with shipping is positive and moderate as the value
is .427**.

Significance (2-tailed) value of customer satisfaction with shipping is .000. (Less than 0.05)

4.4 Regression:

Table 7:

4.5 Model Summary:

Table 8:
Model R R Adjusted Std. Error
Square R Square of the
31
Estimate
1 .570a .325 .316 .81185
The Adjusted R-Square in the above table reveals a value of 0.316, which means that the
variation on the dependent variable (Customer Satisfaction) is 31.6 percent due to
independent variables (Website Design, Product Quality and Shipping). Other independent
variables not included in this study that are responsible for the remaining 68.4 percent
variation in customer satisfaction.

4.6 ANOVA:
Table 9:

Model Sum of Df Mean Square F Sig.


Squares
Regression 69.948 3 23.316 35.375 .000b
1 Residual 145.002 220 .659
Total 214.950 223

With the help of the sig value, the ANOVA table shows the model's fitness; the p value
should be less than 0.05. In this research, the ANOVA table shows that the P value is 0.000,
indicating that our model is fit. We can therefore say that independent variables (website
design, product quality and shipping) have impact on dependent variable (Customer
satisfaction).
32
4.7 Coefficients:
Table 10:
Model Standardized Coefficients Sig.

Beta

(Constant) .063

Website Design .334 .000


Product Quality .199 .005

Shipping .139 .048

The Coefficient table shows two important values i.e. beta-value and sig-value. Beta value
indicates the relation between the independent and dependent variable. The sig-value reveals
the impact of independent variable on dependent variable. In our case all three independent
variable (website design, Product Quality and Shipping) is found to have positive and
significant impact on dependent variable (customer satisfaction).

4.8. Findings
Table 11:
Independent Hypothesis Remarks
Variables
1. Website design There is a significant impact of website design on Accepted
customer satisfaction of online shopping stores in
Hyderabad, Sindh.
2. Product There is a significant impact of product quality on Accepted
Quality customer satisfaction of online shopping stores in
Hyderabad, Sindh.
3. Shipping There is a significant impact of shipping on customer Accepted
satisfaction of online shopping stores in Hyderabad,
Sindh.

33
Based on all the revealed results of this research, it can be seen in the table that all (website
design, Product Quality and Shipping) alternative hypothesis is accepted.

Our alternative hypothesis for website design, Product Quality and Shipping has been proven
positive and significant according to the correlation and regression analysis.

Results of our study show that, website design, product quality and shipping have positive
and significant impact on customer satisfaction of online shopping stores in Hyderabad,
Sindh, responses of the respondents clear that in website design (easiness in searching of
product, safety that website provide while purchasing, easy navigations, website layout and
quality information about the product that website provides), In product quality (ensured
product quality, reliable information, diversified products with diversified quality,
information that is consistent with the quality of product and guaranteed product quality),And
in shipping (free shipping, concerns of customer that whether the ordered product will be
delivered or not, delivery of wrong products, size of ordered products, freshness of the
product) have positive and significant impact on the customer satisfaction.

So, Service providers need to expand their emphasis on highlighting website design, product
quality and shipping in their communication strategies in order to address obstacles to online
customer satisfaction.

The results of this study shows that customers are reacting positively towards online
shopping. Website design, product quality and shipping is an important consideration for
increasing the penetration of online customer satisfaction.

34
CHAPTER NO 05:
CONCLUSION, RECOMMANDATION AND IMPLICATION

5.1. Conclusion:
The aim of this study is to analyze the factors that are affecting customer satisfaction of
online shopping stores in Hyderabad, Sindh. Study contains three independent variables
(Website design, product quality and shipping) and customer satisfaction as dependent
variable, respondents were the customers of Hyderabad, Sindh who are the consumers of
online shopping stores, surveyed around 224 respondents to understand the point of view of
consumers, results of this study is consistent with previous studies such as (Hassan, 2016;
Athapaththu & Kulathinga, 2018; Sahay.et.al, 2019; Saleem.et.al, 2015, Putra.et.al, 2017; Ma, 2016;
Cao.et.al, 2018; Vasic.et.al, 2019), the results of this study reveals that first hypothesis is proven
that there is significant and positive impact of website design on the basis of easiness in
searching of product, safety that website provide while purchasing, easy navigations, efficient
website layout and quality information about the product. Second hypothesis is proven that
there is significant and positive impact of product quality on the basis of ensured product
quality, reliable information, diversified products with diversified quality, information that is

35
consistent with the quality of product and guaranteed product quality, third hypothesis is
proven the significant and positive impact of shipping on the basis of free shipping, concerns
of customer that whether the ordered product will be delivered or not, delivery of wrong
products, size of ordered products, freshness of the product.

These all three factors showed positive and significant impact on customer satisfaction of
online shopping stores. If these factors are correctly addressed, the customer may again be
motivated to visit the website and purchase again.

5.2. Recommendation:
In this study, we examined the factors that affect the customer satisfaction of online shopping
stores, customer satisfaction not only in link with these three factors (website design, product
quality and shipping), there are also many other variables that are associated with customer
satisfaction of online shopping stores such as price, discount, promotion, perceived risk, etc.
Further research can therefore be carried out on these variables in order to check the impact
of customer satisfaction of online shopping stores, so that managers of online shopping
stores can make decisions on the basis of that research.

This study is being conducted in Hyderabad, Sindh, so future researchers can conduct
research on this topic using the same factors (website design, product quality and shipping) in
different cities in Pakistan and evaluate the differences in results that occur due to change of
location and respondents. The respondents in this study were customers of online shopping
stores, In future researchers can also take responses from managers of online shopping stores
and marketers. So the researcher can check the effect of the variable from the perspective of
different respondents. Researchers can also change the method of data collected, in this study
quantitative method is used, in future researchers can use qualitative method for conducting
the data.

5.3. Implication:

Findings of this research will help the managers of the online shopping stores who are
looking forward to start online shopping store business or already having online shopping
store. By reading this research they will come to know that what factors are affecting the
customer satisfaction and how they are affecting. Managers can use this information and
36
make more effective website design, more quality products and timely and secure shipping as
this study proves that there is a positive and significant impact of website design, product
quality and shipping on customer satisfaction of online shopping stores in Hyderabad, Sindh.
And through this they can attract more customers towards their online shopping stores.

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41
APPENDIX

Web Design
1. The website design helps me in searching the products easily.
2. While shopping online, I prefer to purchase from a website that provides safety.
3. While shopping online, I prefer to purchase from a website that provides ease of
navigation.
4. The website layout helps me in searching and selecting the right product while
shopping online
5. I prefer to buy from website that provides me with quality of information

Product Quality
1. The quality of the products ensured while purchased online
2. Through online shopping we get reliable information about the product.
3. During online shopping we get more diversified products with quality.
4. Information obtained through online shopping is consistent with the quality of the
product
5. Product quality and service guarantee during online shopping influences
satisfaction.

Shipping
1. The free shipping option in online shopping increases the number of sales.

42
2. After the online shopping, customers are concerned whether the ordered product
will be delivered.
3. Online purchase makes customers concerned about delivering the wrong product.
4. After the online shopping, consumers are anxious whether the ordered product
(clothing) will be of appropriate size.
5. After the online purchase, consumers are troubled regarding the quality or freshness
of the delivered product.

Customer satisfaction
1. I am satisfied that websites offer payment options.
2. Online shopping makes the purchasing process easily.
3. I recommend online shopping to other consumers.
4. Satisfactory packaging of product is an important factor me.
5. I enjoy online shopping.

43

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