Final Year Project

FINAL YEAR PROJECT
IMPACT OF WEBSITE ATTRIBUTES AND CUSTOMER

SATISFACTION ON PURCHASE INTENTION
STUDENT NAME
PROJECT SUPERVISOR
PAKISTAN AIR FORCE – KARACHI INSITITUE OF ECONOMICS &

TECHNOLOGY
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PROJECT APPROVAL
Name:
Reg.ID:
Project Supervisor:
Topic: Impact of Website Attributes and Customer Satisfaction on

Purchase Intention.
Academic Sessions: 2018
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The board of advance studies of PAF KIET has approved this project, submitted to
partial fulfillment of the requirement for the degree of Bachelors in Business
Administration.
Approval Comments:
Sir Asif Iqbal Sir Adnan Anwar
(Supervisor) (Director Academics)
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LETTER OF AUTHORIZATION
Please refer to your initial proposal for undertaking the study on ‘Impact of website
attributes and customer satisfaction on purchase intention’. In following meetings
and discussions, the initial proposal was finalized. Kindly initiate the study on the
finalized Terms of Reference (TOR).
(Supervisor)
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LETTER OF TRANSMIT
Date: _________________
Project Title: Impact of Website attributes and Customer Satisfaction on Purchase

Intention
Supervisor:
Respected Sir,
With your constant guidance I have been able to complete the project report on the
following topic: “Impact of website attributes and customer satisfaction on
purchase intention”, which is a requirement that needs to be fulfilled in order to
complete my BBA Program.
I am obliged for your guidance that you have provided me in carrying out the
project. Because of your teaching and coaching that I have been able to complete
the project on time.
Your sincerely,
________________
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CONTENTS
Acknowledgement: ............................................................................................................................................... 7
Abstract: ................................................................................................................................................................ 8
Chapter 1 ............................................................................................................................................................... 9
1.1 Introduction: ......................................................................................................................................... 9
1.2 Problem Statement: ............................................................................................................................ 13
1.3 Research Questions: ........................................................................................................................... 13
1.4 Research Objective: ........................................................................................................................... 13
1.5 Hypothesis Statement: ........................................................................................................................ 14
Chapter 2 ............................................................................................................................................................. 15
2.1 Literature Review: .................................................................................................................................... 15
2.2 Theoretical Background: ........................................................................................................................... 16
2.3 Customer Satisfaction: .............................................................................................................................. 16
2.4 Usability: ................................................................................................................................................... 18
2.5 Shopping Factor: ....................................................................................................................................... 21
2.6 Functionality: ............................................................................................................................................ 23
2.7 Purchase Intention: ................................................................................................................................... 24
2.8 Conceptual Framework: ............................................................................................................................ 26
2.9 Derived Hypothesis: ................................................................................................................................. 26
Chapter 3 ............................................................................................................................................................. 30
3.1 Research Methodology: ............................................................................................................................ 30
3.1.1 Research Design: ............................................................................................................................... 30
3.1.2 Research Approach: ........................................................................................................................... 30
3.1.3 Research Philosophy: ......................................................................................................................... 31
3.1.4 Sample Frame: ................................................................................................................................... 31
3.1.5 Sample Size: ...................................................................................................................................... 31
3.1.6 Sample Technique:............................................................................................................................. 32
3.1.7 Instrument Selection: ......................................................................................................................... 32
Table 3.1 Instrument Scale: ........................................................................................................................ 33
3.1.8 Statistical Tool: .................................................................................................................................. 33
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Chapter 4 ............................................................................................................................................................. 34
4.1 Data Analysis: .................................................................................................................................... 34
4.2 Descriptive Statistics: ......................................................................................................................... 34
4.3 Reliability Analysis: ........................................................................................................................... 35
4.4 Correlation: ........................................................................................................................................ 36
4.5 Multiple Regression: .......................................................................................................................... 37
4.6 Simple Regression:............................................................................................................................. 38
4.6.1 Hypothesis 1: Customer satisfaction and Purchase intention. ..................................................... 38
4.6.2 Hypothesis 2: Usability and Purchase intention. ........................................................................... 39
4.6.3 Hypothesis 3: Shopping Factor and Purchase intention. .............................................................. 40
4.6.4 Hypothesis 4: Functionality and Purchase intention. ................................................................... 41
Chapter 5 ............................................................................................................................................................. 42
5.1 Discussion ................................................................................................................................................. 42
5.2 Conclusion: ............................................................................................................................................... 44
5.3 Future Direction: ....................................................................................................................................... 45
Bibliography ........................................................................................................................................................ 46
Appendix A: Questionnaire Sample ................................................................................................................... 54
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ACKNOWLEDGEMENT:
I would like to thank ALLAH, the Almighty, for giving me the strength to carry on the thesis and
for the blessing on me with many great people who have been my greatest support in the both my
personal and professional life.
This work was carried out at the DEPARTMENT OF COMS (BBA), division of
MARKETING, PAF-KIET CITY CAMPUS, KARACHI, PAKISTAN.
I would like to express my sincere thanks to my Supervisor of this thesis – MR. ASIF IQBAL,
who confidently accepted me as a BBA student, and was the main creator of the great ideas,
techniques and whole background of this thesis. He managed to teach me how to work
independently which is very important, but at any time his advice was always being significant to
me. He has very good command on his field and conveys it very well to students. He is the
source of inspiration in the field of research.
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ABSTRACT:
As the online world is taking boom, Pakistan is also growing with the new technologies in online
business and making huge place in virtual market. In the hypothetical literature, there are various
website attributes which are being researched to initiate online business. There are many studies done
to understand different attributes of website to grow business online. This research tells about some
of the attributes of website in the context of the customer behavior towards its intention of online
purchasing. The study is developed and empirically tested a theoretical model of impact of website
attributes and customer satisfaction on purchase intention. Targeted the population of Karachi, and
data was collected through questionnaire from 385 respondents. However, the results indicated that
according to the environment of Pakistan the construct usability is rejected and has negative impact
on purchase intention, whereas other variables shopping factor, functionality and customer
satisfaction has positive impact on purchase intention. Hence, future research and recommendation is
that still the virtual market is in growing process so the study can be done on more attributes of
website and on the factors of usability.
Keywords: website quality, customer satisfaction, purchase intention, functionality, shopping

factor.
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CHAPTER 1
1.1 Introduction:
th
In the era of 20 century the quick evaluation in the information technology industry such as we
called it as internet or e-commerce have made a very important chances that are covered by the
gaps in altitudinal limits. Day by day advancement in technology and the growing internet has
widely put an impact on the people lifestyle in the aspect of shopping, travelling, social media,
doing business and marketing, like they have changed the tangible market into intangible or you
can say in virtual market and why they have done so because the world is changing its life style
even though crypto-currencies are now available so one can imagine where the world will be in
few years and one day everything will be on internet. (Nielsen, 2010) mentioned a survey of
approx. 27000 online operators from around 55 markets in which Asia Pacific, Europe, Middle
East, North and South America is included and the result showed that the e-commerce market
has highly effected the thinking of the candidates regarding online technology and the old way of
consuming things are changed.
As we see that to attract the customer’s todays their websites there are many factors indulge in it
but the one is that the dealers provides discount offers to the buyers on the occasionally basis and
also on the bulk buying as well. Have also seen that the online sellers provide discount coupons
on shopping for the first time or even a consumer subscribe to their site, so these rapidly money
saving factor also hits on customer minds. Moreover, this group buying or bulk buying behavior
have established more many aspects in the increment of group system and economical market
atmosphere. In online business this group buying is not studied as much in detail in last studies
and most of the studies tells about the functionality and usability of the online buying method
(Tsai, 2011).
In online business it is studied that there are many kinds of selling online, this study is discussing
about the multi retailing channel in which the retailer sells out the products through social sites or on
his own personal website and buyer is not directly buying from the brands official website and
usually in the market the trend of multi retailing is on high-end. Basically multi-channel retailing is
defined in that it is an overall sum of all items which a customer needs in his daily life. A certain
study shows that in 2008 56% of online shopping was done over the top 500 US multi retailers
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(eMarketer, 2009). In people’s life there are such common commodities which are essential in
everyone’s life so the retailing business is increasing very fast at a rate of 30% in a year because
items are so reasonable that they do shopping double their requirement (Palmer A. , 2009).
There was a survey done to examine the ratio of multi-channel shopping, the result showed that
56% consumers has used multi retailing (LLP, 2008). The research on this type of business
shows that purchasing behavior of customer is affected by the impact of items which are
purchased from other sites rather than from its own brand outlet site (Berman, 2004).
Furthermore, the multi-channel retailing is explained that in this type of business the retailers
have to understand what percentage of a loyalty a customer has with his brand they use to
consume it and at what level the customers trust in retail branding. The online market is getting
so much advance that the retailers are keeping back the brands and the level of branding these
retailers do is getting high on demand as an outcome of high viable in the market. Retail brands
are on so high value that the actual product brands are made more complex because these
retailers work upon the understanding of the customer and provide them what they want in
goods, services, costing the web quality and discounts offers (Chen R. &., 2003) (Ailawadi,
2004). It is seen and researched that customer-brand relationship is the significant matter to study
about for the marketers a brand itself have an enough inspiration that can involve a customer in
the connection with its identity (Esch, 2006).
As we now talk about the apparel industry in the retailing sector the study says that the attire was
seemed to be very low-end product to be sold online because there was one main cause behind it that
clothes were not physically be touched or you can check whether it fits or not. But as we know that
cloth is the very main and initial needed commodity in human life so according to the trend that
online shopping of clothing has rapidly increased in e-commerce industry. The sellers who were
selling apparel online got more successful in competition of those retailers who were doing business
of travel products, selling online books and software’s. According to the media they showed that US
was estimated 27.8 billion dollars’ sales in the online attire and replaced all other businesses and
become one of the biggest selling in this sector (Just-style.com, 2009). Now when they saw that
clothing business is getting hype in these recent times, so the retailers decided that they will more
look after the consideration of the buyer’s behavior. Adding more, in the clothing category there are
lots of brand in the market so this is examine as an issue for the retailers because
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the brand provides high-end and customary products to for the customers it is difficult to find out
what is local and branded (Birtwistle, 1998) (Brïdson, 2004). The solution of this issue was that
several brands established a modest benefit by their brand outlet which were very different from
the retailers (Brïdson, 2004).
As the world is emerging into the most advance technology the online shopping demand is also
gaining the growth as quick as possible and due to this rapid increment the firms our online website
is trusting upon the e-commerce so that they can meet their desire yield (NTIA, 2003) (Eroglu SA,
2001) (D., 2002). Inappropriately, there are many online shopping websites which futile to support
the organizations to reach their goals. Giving the evidence to it (AT., 2001) searched out that 82% of
the online customers visits the website but they don’t proceed further when it comes on the
transaction process, to find out that what is the reason behind it so other study stated that most of the
websites are not fulfilling the demand of the customers (M., 1999). Further studies regarding this
shows that that main cause of this disappointment is that the online businesses did not fulfilled the
demand of the customers and they faced this issue (J., 2000) (Rosen EE, 2004). Now backing up this
cause, (MO, 2005) says that web designing effects the behavior of the buyer. It teaches how a
website should be designed so that the organization who is running the business can meet the
customer desire (Song J, 2005). So to meet the experiences of customer the organizations try to copy
the sites which are very attractive or that fulfills the consumer demand (Rosen EE, 2004).
The information system and e-commerce is the combine features of IT and the marketing
sources, so by including the machine and human factor a website should be designed from the
computer and human point of view and it should contain the content relevant to the demand of
the customers. The researcher (Chen LD, 2002) explains some of the tips regarding the
influencing web design that a website should be that much easy that customer feel comfortable
with exploring things, to make them feel comfort there should be some entertaining activities and
videos, moreover the site should be such influencing that they re-visit the site and also
recommend their friends and family to go and visit it and must do purchase as well.
In the online shopping industry to gain the purchase intention of the customer by examining the
purchasing power and secondly to make them loyal is seemed to be hard and expensive and with
that a well-organized service should be provided to satisfy the customer (van Riel, 2001). The
common thing in the online business is that those who have great quality of website and provide
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their customer the best service they lead towards the high productivity (Hoffman, 1995) (Xia,
2003). Moreover, most of the studies emphasizes on the design of the website and this contains
the great importance in the e-commerce industry. Some common features are there which gives
the idea about how website can be of better quality. Interface should be attractive and friendly
user, the speed of the website also matters when a customer search for something, basically the
search engine should be very good that show strong results, and the site map should also be very
helpful to the shopper so he always finds easy to do shopping whenever he visits. The slowly and
gradually development in the e-commerce, most of the tangible markets are dissolved and people
have start working online because they think that doing business online is much profiteer than
have a shop, so the virtual market as acquire most of the part, and be very successful in this
industry the usability of the website plays an important role in the organizations value and
motivates the consumer for the shopping. The studies tell that as the world is moving and as the
days are passing in the e-commerce sector the website design is the basic feature for the
businesses so that they can give a customer better channel of communication through internet.
However, this factor of web designing comes to end with the factor that it is the serious factor in
the gratification of the users universally, and according to the previous studies the gap is shown
in this area so to fill this gap the web quality has to be improved with respect to its design and
the usability which comforts the consumer buying perception (Kim, 2002).
So as we are talking about the online purchase intention and what factors influence them are many
factors. It is also said that the items which are not tangibly felt and experienced so there is a big risk
in online purchasing which is connected with the mindset of the consumer regarding online shopping.
When things are not seen physically so it is understood that people are shopping on behalf of the trust
they have on the brand name the brand image and the quality of the product that particular brand
serves are in their mind, and this trust once build removes the risk factor from shopping online
(Dawar, 1994) (Bolton, 1991). Again if we talk about the clothes the researchers cannot calculate that
up to what ratio the brand name influences the consumer mind to purchase it online from other
source and we know it that in the matter of apparel people are really conscious and delegate
regarding their clothes (Chattopadhyay, 1990) (Kwon, 2000). As we are talking about the brand
image impacts on purchase intention so it greatly stimuluses the customer perception on it (Beckwith,
1978). It is tested that the durable and satisfactory image of the brand in consumer’s mind will result
the positive impact on the characteristics of the product. As we compare the store
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image with the online stores so it may have a similar impression that because there are several
sites which are favorable to the online shopper that on this particular site these brand products
are present so there is a great competition on other products available on site. Would like to end
by summarizing that the brand image plays a vital role in consumer purchase intention and when
there is the matter of clothes both of the brand image as well as the online store image potentially
motivates the mind of customer to purchase online (Simonian, Forsythe, Kwon, & Chattaraman,
2012).
1.2 Problem Statement:

Nowadays, as it is seen that technology is emerging in the world very fast and as the time is
running technology is getting advance day by day. So it is being researched that online shopping
is gaining the popularity at its peak. It is studied that as China is the most populated country and
likely to become most populated in the online shopping world too, so researchers researched that
the main cause that occurs is the quality of website in which its safety, usability, services and the
attraction of website is counted and found as the crucial issue in the online business. (Bai, Law,
& Wen, The impact of website quality on customer satisfaction and purchase intention: Evidence
from Chinese online visitors, 2008).
1.3 Research Questions:

1. What is the effect of functionality on purchase intention?
2. What is the effect of usability on purchase intention?
3. What is the effect of customer satisfaction on purchase intention?
4. What is the effect of shopping factor on purchase intention?
1.4 Research Objective:

1. To ascertain the effect of functionality on purchase intention.
2. To ascertain the effect of usability on purchase intention.
3. To ascertain the effect of customer satisfaction on purchase intention.
4. To ascertain the effect of shopping factor on purchase intention.
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1.5 Hypothesis Statement:
1. Functionality has a positive effect on purchase intention.
2. Usability has a positive impact on purchase intention.
3. Customer satisfaction has a positive influence on purchase intention.
4. Shopping factor has a positive influence on purchase intention.
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CHAPTER 2
2.1 Literature Review:
If we study the background of e-commerce it shows that purchase intention is the main part of pre
purchase satisfaction because in online shopping the customers pay the amount first through their
credit/debit card then the product is delivered to them in couple of days so it is the main task for
virtual organization to first gain the satisfaction of their customer (Bai, Law, & Wen, The impact of
website quality on customer satisfaction and purchase intentions: Evidence from chinese online
visitors, 2008). In the past studies of e-commerce, it is being studied that there are some factors
which are persuading the purchase intention which is the decision making process that includes the
expertise, shopping and goods (Schaupp LC, 2005) (Szymanski D, 2000). Furthermore, the early
studies on e-commerce rarely show the difference between pre-purchase and post-purchase (JG,
2001). So, this issue has been taken as a gap in the literature. The one strong point is that those
companies who are constructing online shopping business are not only targeting to those customers
who have the experience in doing online shopping but to those as well who even don’t know about
online shopping and making them aware of it. Where else in previous researches it is being seen that
the researchers have only studied on the consumers who have experience in doing online shopping
(Szymanski D, 2000). Therefore, the business goal is to attract the huge number on customers and it
is only possible when we target all those who have and who does not have the experience of online
shopping and it is seem to be an important part of the research.
Moreover, this research is going to increase the past studies and will examine the above three
factors and their equivalent features whether they are the important in developing the online
purchase intention of customers with and without experience both. The advantage is that we will
get to know what issues are there that are effecting the consumers mind and making the intention
of purchase negative. And the factors which are going to be researched are functionality,
shopping, satisfaction and technology (Chen, Hsu, & Lin, 2010).
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2.2 Theoretical Background:
In this part of the study we discuss about the theoretical background of the study that there were
some theories tested from which the researchers got to know about the problems in the study and
found out the variables regarding the topic. As we are studying on the e-commerce online
shopping and talking about the website attributes its service quality, usability and security,
satisfaction so there is a theory tested, named as WebQual (Loiacono, 2000). These features were
used and modified to confirm the study framework (Baker, 2000). Therefore, to examine the
appropriate proportions of the customer’s intention to consume and to purchase through online
websites includes two things, one is the study related to online marketing and the management of
the website measuring the quality of website in which all the features are included from services
to trust. Another thing is the perception of the customer satisfaction in terms of online shopping
is discussed along with the functionality, usability which is directly effecting the purchase
intention of the customer to buy online (Xu, 2017).
Let’s put some light upon the history of the WebQual theory. WebQual is a tool to measure the
website quality in e-commerce. It being its process in early 1998 and tested many domains.
(Barnes S. J., 2002). WebQual has total 4 versions up-till now which includes from 1.0 to 4.0 and
each version has its own specification like first version was used to test the website quality of the
domains, whereas, the second version was based on the SERVQUAL proposed by (Parasuraman
A. Z., 1988). The third version was the combination of the first and second and use to test the
website quality, information quality and service quality and the fourth version was combine with
third version and the usability. So, in the e-commerce sector the WebQual and SERVQUAL these
two theories are mainly tested to ensure the further study (Xu, 2017).
2.3 Customer Satisfaction:
We all know that each and every business runs because of the customer satisfaction, because once
you have made your customer satisfied to your product they will sustain to it. As we are living in the
era of most advanced technology organization are switching their business into virtual business,
people are opening online shops and the trend of online shopping from needle to plane
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is being done online through websites and the customer satisfaction plays a vital role in it
because in online shopping there are many chances of fraudulent in terms of payment and in
terms of product like what they show and what they give. This gives the short idea about how
customer are satisfied.
Basically, customer satisfaction has a literal meaning which says that the valuation of good and
services with regard to their need (Oliver R. , 1980). The theoretical background of customer
satisfaction tells that service quality is the major feature which satisfies the customer respect to
their perceived product. According to the SERVQUAL there are five dimensions of service
quality in which it contains tangibles, consistency, awareness, guarantee and identification.
(Parasuraman A. Z., 1994). (Parasuraman A. G., 2000) stated that customers interact with the
technologies rather than any personal service with regard to the definition of customer
satisfaction and the five dimensions of SERVQUAL a research is required about the customer’s
demographics, their living style and the technology they have experienced which effects the
mindset of the customers regarding the purchase intention and the website they have used for the
shopping. It is being studied that customer satisfaction and quality of service are two different
factors but according to the researcher’s quality is the background of customer satisfaction.
(Zeithaml V. B., 2000) says that quality of service is measured mainly on the dimensions of
services, whereas, perceived quality is not the only one factor of customer satisfaction but it is
also motivated by the quality of product they are purchasing its price, customer factor and the
situational factor as well. As you already know that we are discussing about the e-commerce so
in the virtual market customer satisfaction is defined by the (Anderson R. S., 2003), the
gratification of the consumer with regard to their earlier purchasing experience with a given e-
commerce firm (Bai, Law, & Wen, The impact of website quality on customer satisfaction and
purchase intentions: Evidence from chinese online visitors, 2008).
As we all know that satisfaction of the customer is the very important feature and the most important
goal in the marketing of the organization (Morgan, 1996) (McQuitty, 2000) (Erevelles, 1992). If we
talk about the purchase intention of the customer so the satisfaction is the main part of it because it
matters in marketing campaigns and these marketing tactics builds the satisfaction of customer
towards the product they are purchasing. In regards of purchase behavior repurchase, purchase
intention and brand choice are examined (McQuitty, 2000). Moreover, we studied the
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theories regarding the customer satisfaction there are many more theories which proves that
customer satisfaction influences purchase intention. Here are some more theories and model
named as expectancy-disconfirmation model, the perceived performance model, provenance
model, affective models, equity models and some theories which are based on the development
of customer satisfaction.
Satisfaction to the good and services are studied very thoroughly by the scholars and they say
that satisfaction is the base of customer loyalty (Yang, 2004), and there is strong relationship
between these two factors with respect to the characteristics of age and income (Homburg,
2001). And it is common that once the customer is satisfied they uses the services repeatedly as
compare to those who are not satisfied. These kind of consumers have strong purchase intention
and they recommend others as well (Reichheld, 1996). Hence, it has be proposed that customer
satisfaction has a direct effect on purchase intention (Tsiotsou, 2006).
Furthermore, customer satisfaction is more defined by scholars like they also state that it can be
defined by using the operational specific view or collective perspective. This operational specific
perspective is explained like it is the customer satisfaction which is based on the current purchase
experience (Boulding, 1993). Collective perspective is defined as compare to the operational specific
view that it pressures complete evaluations, the evaluation of customer satisfaction is having to be
based upon the overall purchase experience and not only on the recent purchase experience (Johnson,
1991). The scholar (Parasuraman A. Z., 1988) argued this collective perspective is more satisfying in
examining the performance of the services and its more effective in assuming the purchase intention
of the customer as it tells overall experience of the consumer regarding the goods and services (Kuo,
Wu, & Deng, 2009). Therefore, hypothesis is proposed as:
H1: Customer Satisfaction has a positive effect on Purchase Intention.
2.4 Usability:
Let have some research on the usability of the website while shopping and what it tells that has the
impact on the purchase intention of the consumer. We see that to make customer satisfy in regard of
purchase intention there are many sub factors to which we have to look over and these all
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variables are like in a chain attached to one another if one will be weak or will be missing there
will be a negative result in the end. So let’s put some light upon the usability and how it works.
So according to the study we get to know that usability is the most important topic studied in the
human-computer communication area (Shneiderman, 1998). The scholars have said that successful
communication between human and computer is the designing and implementing of computer
system. If we read the basic meaning of usability it states, it is that level to which a specific product
or service can be consumed with that courage and satisfaction. Since we are discussing about the
advancement in technologies and the perception of the people that they have now switched to e-
commerce in terms of business and shopping so the usability of a website is developed like the web
usability metrics, procedures, instruments and methods (J. Kim, 2002) (E. Loiacono, 2007) (V.
Venkatesh, 2006). The usability of the website refers to content of the website when the user go
through the website and gets the information related to its choice and gets satisfied by using it and
makes purchase because that website has satisfied the user and has built the trust in respect of the
comfortability while searching out the goods, navigations and the relevant content they aspects to
have it on (R. Agarwal, 2002). Here, the effectiveness of the usability is defined like the accurateness
and capabilities of the website from which the user gets satisfied and gets successful in achieving his
or her goal. Usability plays a vital role in purchase intention because the functions of usability are
directly related to the users like what they want to do while they are looking the website and that site
provides everything relevant to customer interest. An example can be state over here that there is an
online shopping site where from grocery to appraisal everything is available, now on that site there
are discount offers which attracts the customers and good images of the product and most important
the brands are available which a consumers want to have product of so this is the positive impact on
the customer and he will be definitely purchasing. These small factor let the user helps in achieving
goals with fewer errors. On the other side, the user observes site to be more effective when they do
not have to put much efforts on finding items they want to have and this can be possible when a
website is simply designed with an easy sitemap and not much hard to read the content. When a
website is designed according to the customer demand in the market it saves the time of the user and
we usually see there is option to chat with the customer support but on unauthentic websites they are
not very productive and takes too much of time in reply so it gives a negative impact on the usability
of the website and customer might leave it
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without purchasing. So we get to know that satisfaction here also plays an important role in the
usability factor because satisfaction is he base of all variables.
If we put some light upon the theoretical background of usability, there are several models like
architectural quality model it is the model in which the security and the privacy of the data that
can be the personal information of the user and they credit card number because there are sites
where you have to pay first while making the purchase, then there is the convenience of the
website which includes the good search engine, easy navigation and a very simple steps of
ordering the product (J. Kim, 2002) (Rasmussen, 1959). Lastly, the landscape preference model
of usability was implemented from environmental psychology. The researcher (Y. Lee, 2009)
projected the website usability model which had four factors rationality, legibility, diversity,
online consumer outlook and purchase intention. The conclusion of these theoretical models is
that they all acknowledged the rich content but still there are more gaps as the time is passing
and according to the current time many more things have to be researched (Lee & Kozar, 2012).
Basically, if we see the literal meaning of usability it all depends on how website is designed and
its functionality. The previous studies have shown that well designed website with creditable
content and simple sitemap increases the customer satisfaction which leads towards the positive
purchase intention. Moreover, it has been said that good search engine and better download
speed on the website gives the positive impact on the usability (Chen, Hsu, & Lin, 2010).
Usability is further more explained as that the word usability in accordance to website is the
realistic question like is the user compatible with the navigation of the site is it easy or hard and
the second most important is the design of website is according to the content they are selling
because it is seen sometimes content and designing are not making any sense wo this seems to be
a big cause in usability of the website (Barnes S. &., 2002). A website should contain good
quality of usability, its design should solve the problems which are created in the interaction of
the vender and the user, if these problems are resolved there will be good relationship between
them and the customer will not leave a website without shopping from there (Bellman, 2006).
The usability of the website decides whether the visitor will purchase from there and if he purchases
once will he revisit the site or they have lost the customer because of the negative response. So it is
proved that usability of the website is the serious issue in the e-commerce world market. (Menon,
1997) these researchers studied on the usability and recognized three main
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components that includes the characteristics of the product, features of the website and the
convenience of the website. Thus according to the certain studies and theories it is proven that
usability of the website depends on the web design, customer satisfaction and the quality of the
service they provide to them, if these all are according to the market rend the user will definitely
take a step towards the purchase intention (Fransi & Viadiu, 2007). Therefore, hypothesis is
proposed as:
H2: Usability has a positive impact on Purchase Intention.
2.5 Shopping Factor:
As discussed that to motivate the customer to purchase online and to make their purchase
intention strong we studied that customer satisfaction is utmost important factor then the
usability of the website that how comfortable the customer is with it. After it comes the shopping
factor which is loop with the usability somehow because when the customer is looking through
online website to purchase goods he also looks over the three factors which sub divides the
shopping factor that are accessibility, expectation and distribution (Schaupp LC, 2005). This
study combines the concept of (Schaupp LC, 2005) and also includes other studies in it and
defines these three features in more detail.
Furthermore, if we discuss those three attributes of shopping factor which make it positive towards
purchase intention so the first and important one is the convenience because in online shopping the
time and efforts of consumers are saved by not going to any shopping mall and wasting their time but
they are utilizing it by sitting home and just ordering what they want. The services which an online
website provides to the customer for easy is the fast search engine which shows good results and the
main is payment options provided to the consumer for their ease (Richard MO, 2005) (Liang TP,
2002). In research it is examined that insecurity of the product and the information sharing is the
main problem in online shopping which puts the negative impact on purchase intention, so to cure
with this issue the online businesses has offered their customers return and exchange policy and
online opportunity is provided to the customers regarding information sharing (Armstrong A, 1996).
Moreover, the shopping factor in aspect of accessibility is explained like vendors should categorize
products so customer can find very easily, variety in
21
payment methods and the best option of comparison with other websites in terms of quality and
price. It is seen that in prior studies some facts are not identified so we have studied and found it
as important which makes shopping factor important.
The second thing if we talk about is the trust which influences the shopping factor of the consumer
towards its purchase intention. If we look over the trust factor the last studies which are done on
online shopping shows that trust is the vital feature in maintaining the long term relationship in
online B2C (EastlickMA, 2006). (Turban E, 2006) claimed that protected IT setup reduces the risk of
any fraudulent and increases the trust in terms of the personal information and the accounts detail
which is input while making transaction while purchasing the product. The research debates on the
advancement in technology that as the science is getting advance day by day online shopping is also
getting secure because the vendors are implementing it all in their business and making the customer
permanent as well as secure. (McKnight DH, 2002) says that structural declaration will help more in
building up the trust of the customer like it means that vendor must show on the website the detailed
legal certificate of rights and responsibility as it attracts the customer that this website is authentic
and if some mismanagement goes there will be secure response.
The term delivery states that the total time consumed in shipping and dropping the product to the
consumer’s location is the most important part of customer satisfaction. In the past studies it is
discussed that in online shopping they used to take many days in delivery of the product but now
a day it is watched that there are less number of days plus they also provide the tracking id of the
parcel so the customer is up-to date very seconds that where their product is reached and this
tracking id also gives the facility of product security. More convenient it can be that they provide
the ease to customers like they can pick their parcel from the very nearest shop but as the time
passed now the online purchased product is directly delivered at consumer’s doorstep. To reduce
and hindrance the vendors notifies the customer if their delivery time is going to be extended to
customer does not get worried like there they have lost the product or any bad things impact on
them. So, concluding the shopping factor like these are circumstances which an online business
has to provide to their customer strongly (Chen, Hsu, & Lin, 2010). Hence, hypothesis is derived
as:
H3: Shopping Factor has a positive effect on Purchase Intention.
22
2.6 Functionality:
Now we are discussing on the functionality in term of online shopping which effects the purchase
intention of the online buyer. Basically, functionality is more like as the usability because in usability
we discussed about the quality of website and the service provided by the website similarly in
functionality there is the quality of system the quality of information an online website is providing.
And it is the fact better the information more attractive will be the website to the customers. Further
is we look over the system quality the studies show that involvement of information system in the
business is the efficiency model for the computer system (Kriebel, 1980). In past many scholars
presented different concepts of system quality from which (Swanson,
1974) used different things to calculate MIS among the customers who use online website for the
purpose of shopping. The features which are studied to calculate are the dependability of computer
system, quick response time and easy use of mortal. As like the above another researcher (Emery,
1971) studied and said that according to him there are also certain features that should be count in the
calculation of system quality which includes whole data base, collection of details, human aspects,
reaction on time and system exactness. Moreover, the consistency and system suppleness also
improves the quality of system. Basically these all include in the process of functionality like if these
sources will be fine in working without any issues the front part which the consumer faces while
shopping will not experience mismanagement while shopping, so the database has be to strong and
have a backup system as well (Bai, Law, & Wen, The impact of website quality on customer
satisfaction and purchase intentions: Evidence from chinese online visitors, 2008).
In the late 1990s, the technology was started growing and people were used to do online
shopping but on a very low quantity. There are two mainstreams for website quality one is the
rich content and the other one is the ease of website use (Bevan, 2006) (Nielsen J. , 2006)
(Palmer J. , 2002). (Lu, 1998) categorized the quality and practicality of the website as the
functionality and usability. Moreover, functionality is defined as more information about the
product and services is being provided to the customer (Chung, 2003). If we take an example
about the online hotel booking website the functionality features which are identified by (Liang,
2003) in five ways that includes customer information their time and day of booking,
information of the area and the management of the website (Law & Bai, 2008).
23
In the prior studies regarding the functionality has shown that quality of information is also the
main feature which plays an important role in functionality better for the consumers so there are
very less number of chances of any problem occur while purchasing. There are some points
which are used to determine the success of information system that includes profitability of the
business, better website design and the performance of the website and what level of system is
used for the data backup (Amoako, 1993) (Raymond, 1985) (Mukhopadhyay, 1995) (Pearson,
1994) (Wilson, 1998) (Purvis, 1997).
Furthermore, information system is explained that many scholars like to estimate the efficiency of the
information system that is based on the amount of usage in decision making and whether it is
resulting is beneficial or not (Nolan, 1974). (Ives, 1983) is the researcher who recommended that
customer satisfaction with their information system is hypothetically measured and is commonly
accepted while making the decision. In these situation system usage can be alternate sign in system
success. The essential requirement is the better system and perfect data. Will summarize it by saying
that after studying the researches and literature it gets to know that functionality is divided into two
things, one is as similar as the usability and the other is whole the backup system which is being
operated on the back side of the website to secure the data of the customer and the organization as
well. So better the data managed more the customer is satisfied with it (Bai, Law,
& Wen, The impact of website quality on customer satisfaction and purchase intentions:
Evidence from chinese online visitors, 2008). Thus, the hypothesis is formed as:
H4: Functionality has a positive effect on Purchase Intention.
2.7 Purchase Intention:
Now let put some light upon the dependent variable of the study that why it is dependent what
are the factors that made it dependent in this research. First off all after studying the past research
papers and thesis mostly it was found that there are many factors which in the end depends on
the purchase intention of the customer. Purchase intention is the behavior of the customer that
diverts the mindset of the customer towards your product and develops consumer’s behavior to
try something new and plays with their mind.
24
Purchase intention is the fifth and the last theory as the dependent variable of our conceptual
framework model. Intention is uses ICT widely in IS research and also as a dependent construct
which imitates the choice of the customer. (Fishbein, 1975) showed the relationship between
cognizance, intention and the behavior of the customer as principle in the theory which showed
that purchase intention is together examined by the consumer’s attitude and the particular model
that is dependent on the behavior, and the second thing is that intention forecast behavior as
discussed above that intention shows the behavior of the customer (Weisberg, Te’eni, & Arman,
2011).
Again it is the same thing which is said by other researcher that purchase intention is essential to
recognize because customer’s behavior is tested by their intention. As in purchase intention it is
compulsory to examine the understanding of the customer loyalty whereas, the purchase
intention is seemed to be necessary in loyalty factor (Dick, 1994). In the purchase intention
factor they have mainly focused on the loyalty factor and they explain it in more detail like
behavioral based loyalty fails to discriminate between what is true loyalty and what is fake
loyalty (Jacoby, 1978). (Oliver R. R., 1997) declared that loyalty must have these dimension
which are rational, emotional, conative and action. As far as according to (Day, 1969), planned
behavior can be more actual than the behavior measuring the consumers mind because customers
can make purchases because of many limitations instead of real preference. Moreover, (Zeithaml
V. B., 1996) discussed that purchase intention is the key factor of behavioral intention. It is
studied that to examine the consumer’s behavior, purchase intention is been used to forecast the
real behavior (Ajzen, 1980). As the purchase intention is associated with the real behavior.
Purchase intention is tested by using an electronic survey of random online shoppers and found
the result that customer’s satisfaction is an important factor in online behavioral intention and the
quality of the website is also important in regard of information satisfaction.
While summarizing the dependent variable, it is being studied in whole literature that purchase
intention is main factor as it all depends on the behavior of the customer so the above constructs that
are usability, customer satisfaction, functionality and shopping factors are positively effecting the
intention because these are the main and only factors which can change the behavior of the customer
and make them motivate to do online shopping and can gain the satisfaction at a very
25
good level (Bai, Law, & Wen, The impact of website quality on customer satisfaction and
purchase intentions: Evidence from chinese online visitors, 2008).
2.8 Conceptual Framework:
Functionality
Customer
Satisfaction
Purchase
Intention
Shopping
Factor
Usability
2.9 Derived Hypothesis:
 H1: Customer Satisfaction has a positive effect on Purchase Intention.

 H2: Usability has a positive impact on Purchase Intention.
 H3: Shopping Factor has a positive effect on Purchase Intention.
 H4: Functionality has a positive effect on Purchase Intention.
26
S. No Title /Author Source of Sample Variables Findings
publication size
1 The role of International Journal 197 Involvement Investigating the

Values
perceived product of Consumer Studies Perceived quality effects of perceived
quality and overall product quality of product
satisfaction on Overall Satisfaction and satisfaction on
purchase intentions. Purchase Intention the purchase
intention.
Rodoula Tsiotsou
(2005)
2 A Study of e- International Journal 464 Internet Business Analyzing the various

retailing of Consumer Studies Process elements that
management: Online Service influences the
analyzing the quality purchasing behavior
expectations and Online service of the online
perceptions of retailing quality customers.
Spanish Website design
consumers. quality
Graphic design
Fransi and Viadiu Usability
(2007) Accessibility
3 The impact of International Journal 300 Website quality Finding out the
website quality on of Hospitality Functionality interrelationship
customer Management Usability between website
satisfaction and Customer quality, customer
purchase Satisfaction satisfaction and
intentions: Purchase Intention purchase intention.
Evidence from
Chinese online
visitors.
Bai.B, Law.R, and
Wen.I, (2008)
How do the International Journal 862 Customer Travel website users

4 preferences of of Contemporary Satisfaction have a positive
online buyers and Hospitality Functionality purchase intention for
browsers differ on
the design and the Management Usability long term and
content of the World wide Web positively correlated
travel websites? with customer
satisfaction.
Law and Bai
(2008)
27
The relationships Computers in Human 1100 Service quality Find out the effect of
among service Behavior Perceived value variables in mobile
5 quality, perceived Customer value-added service,
value, customer satisfaction when a customer
satisfaction and Post purchase shops online on
post-purchase intention mobile.
intention in mobile
value-added
service.
Y, -F. Kuo et al.

(2009)
Website attributes Journal of Business 4144 Online Purchase Investigating the

6 that increase Research Intention features of shopping
consumer purchase Technology factor websites which
intention: A Shopping Factor increases the
conjoint analysis. Product Factor purchase intention.
Chen. Y-H. Hsu. I-

C, Lin. C-C.,
(2010)
Investigating the Arab Economics and 84 Satisfaction Telecommunication

Business Journal Website quality organization have
impact of website
7 factor developed the
quality on interaction by web
services and the
consumer’s
impact of website
satisfaction in quality is measured
by service and
Jordanian
website quality and
telecommunication. usability of the
website.
Mansara. E,
Khair.M, Zaid. S.A,
Qutaishat. F.T.,
(2011)
Understanding of Decision Support 776 Usability and For the success of e-
8 website usability: System Website Usability business the theories,
Specifying and guideline are found to
measuring
28
constructs and their Identifying website make the usability of
relationships. usability construct website more better.
Online purchases
Y. lee, K.A. Kozar
(2012)
The effect of Graduate Theses and 973 Tradition travel Found out the
9 website quality on Dissertations agency website quality be
customer regressing ease of
satisfaction, use Online distribution use, information
intention, and channel quality, privacy and
purchase intention
purchase intention: model with
A comparison satisfaction.
among three types
of booking
channels.
Xiaowei Xu (2017)
29
CHAPTER 3
3.1 Research Methodology:
The preceding chapter that was literature review has given the detailed information about the
variables and have presented the conceptual framework and deliberated the hypothesis that are to be
examined. The context of this methodology chapter will cover the techniques that are selected for the
analysis, such as how the questionnaire is established, how the sample will be selected, how data will
be collected and what methods will be used on the data gained from the questionnaire.
3.1.1 RESEARCH DESIGN:
The research design basically tells us about that how the study is going to be taken place in terms
of data collection. So the research design is a draft to conduct a study with the maximum control
of excess of causes that may affect with validity of the findings (Barnes R. W., 2003). The
research will tell us that when, where and how data should be gathered and in what way they will
be evaluated, and the current study is on quantitative and descriptive research because this
research covers the data which is gathered through questionnaire and descriptive research is
continued by testing hypothesis (Peterson, 1997).
3.1.2 RESEARCH APPROACH:
For the research approaches there are two types which are deductive and inductive approach.
Inductive researches are based on interpretations and on literature that is why inductive research
are not empirically tested as they do not have any hypothesis as it is construct on the basis of
thought.
On the other side the deductive researches are started with theory and literature which are based
on hypothesis that are developed by empirical test. This test is run after collecting data through
30
survey process. So when the study is based on deductive approach it results can be concluded from
the evidence or the suggestions which are gathered through questionnaire survey (Goddard, 2004).
This study is having conceptual framework with independent and dependent variables along with
the effect among them that are clarified by literature so that the theory which is developed is
examined by the collection of responses from respondents and is empirically tested using
hypothesis and bringing out a conclusion, therefore this study is based on deductive approach
and quantitative approach.
3.1.3 RESEARCH PHILOSOPHY:
This study is on Positivism philosophy because in this research quantitative data and hypothesis are
used to examine the result which are scientifically confirmed or are mathematically proven (Denzin,
2008).
3.1.4 SAMPLE FRAME:
In the study there is always a certain population set from which data is gathered. Population is
basically the individuals to whom the study is targeting in a specific field. So, as the population is
large in quantity and this will take much time in gathering the information and additionally it will
also be costly to analyze and bring out the result of large quantity, that is why a limited number of
population is selected from which data is gathered and is called sample size (Wright, 2005).
3.1.5 SAMPLE SIZE:
Sample size is the part of the population which is figured out from the total population of the targeted
audience (Goddard, 2004). The specific calculator is used named as Rao Soft calculator which measures
the sample size for the study. As the research is based on Karachi, and having the total
31
population of 20 million so the sample size is 385 respondents, means data is to be collected by this
size which will hence prove the study.
3.1.6 SAMPLE TECHNIQUE:
Sampling techniques are of two types probability and non-probability. In probability the selected
population have a chance to equal and the type of sampling is the main necessity of the sample
frame which contains the list of all section of population (Greener, 2008).
In this research we are using non-probability sampling because the targeted population and the
sample size which in this study is being used is large. In non-probability convenience sampling is
used (Ponte, 2015).
3.1.7 INSTRUMENT SELECTION:
As per the literature review the questionnaire is adopted for the variables that are customer
satisfaction, usability, shopping factor, functionality and purchase intention on the scale of 5-
Likert scale which are already authorized in related articles. The table 3.1 concise the items that
are used in each variable along with the authors reference.
Moreover, questionnaire is divided into two sections. First section is about the participants
‘Demographic’ details while the second section is based on the questions regarding dependent
and independent variables.
32
TABLE 3.1 INSTRUMENT SCALE:
Variable Source Number of Type of Variable

Items
Usability (Park, 2007) 5 Independent
Shopping Factor (Ho, 2007) (Wen, 2012) 5 Independent
(Park, 2007)
Functionality (Park, 2007) 5 Independent
Customer Satisfaction (Ho, 2007) 5 Independent
Purchase Intention (Ponte, 2015) 4 Dependent
In this survey respondents are asked to share their experience of online shopping by mentioning
the particular name from which source they have done online purchasing and further questions
tells us that how was there experience on that website. Total 393 responses were there out of
which 8 responses were rejected due to incomplete survey and 385 respondents were accepted.
3.1.8 STATISTICAL TOOL:
In this study regression analysis is going to be used to test the result and SPSS that is (Statistical
Package for Social Science) is used as the statistical tool of 21.0 version for this study.
33
CHAPTER 4
4.1 Data Analysis:
After coding the data in statistical tool, initial tests are run for normality, reliability and validity.
All the hypothesis is examined through multiple regression and after that individual hypothesis
was tested through simple regression.
4.2 Descriptive Statistics:
To calculate the univariate normality of the constructs we examine it through skewness and
kurtosis analysis. Table 2 represents the descriptive statistics.
Table2.
Mean Std. Dev Skew Kurtosis
Usability 3.57 .866 -.718 1.255
Shopping Factor 3.52 .905 -.478 .341
Functionality 3.76 .898 -.693 .306
Customer 3.59 1.089 -.574 -.397

Satisfaction
Purchase 3.38 1.059 -.542 -.247
Intention
The table 2 shows that usability (m=3.57, SD=.866) has highest skewness (-.718) followed by
functionality (m=3.76, SD=.898), customer satisfaction (m=3.59, SD=1.089), purchase intention
(m=3.38, SD=1.059), shopping factor (m=3.52, SD=.905) with the lowest skewness (-.478).
On the other side the highest kurtosis (1.255) of usability on (m=3.57, SD=.866), and the lowest
kurtosis (-.247) of purchase intention on (m=3.38, SD=1.059). As per the results it is seen that all
the Skewness and Kurtosis values are in the preferred range, so it can be proved that variables do
not disrupts the condition of univariate normality (Bryman, 2015).
34
4.3 Reliability Analysis:
Internal uniformity of all the variables was tested through Cronbach’s alpha. The results are
summarized in the Table 3.
Table 3.
Cronbach’s Cronbach’s Mean Std. Dev

Alpha Alpha based on
Standardized
Usability .840 .842 3.57 .866
Shopping Factor .847 .849 3.52 .905
Functionality .915 .916 3.76 .898
Customer .935 .936 3.59 1.089

Satisfaction
Purchase .901 .903 3.38 1.059
Intention
Furthermore, table 3 shows that the reliability of customer satisfaction (α=.935, m=3.59,
SD=1.089) is highest followed by functionality (α=.915, m=3.76, SD=.898), purchase intention
(α=.901, m=3.38, SD=1.059), shopping factor (α=.847, m=3.52, SD=.905), usability (α=.840,
m=3.57, SD=.866) the lowest reliability.
All the examined values of Cronbach’s alpha are greater than 0.60 which approves that the
internal consistency of the variables (Bryman, 2015).
35
4.4 Correlation:
To test multi-collinearity, individuality and exclusivity of the adapted variables bivariate

correlation analysis is examined. Table 4 shows the summarized results.
Table 4.
Usability Shopping Functionality Customer Purchase

Factor Satisfaction Intention
Usability 1
Shopping Factor .767 1
Functionality .647 .731 1
Customer .588 .618 .700 1

Satisfaction
Purchase .521 .640 .738 .891 1
Intention
Table 4 shows that the highest correlation that is (r=.891) is between purchase intention and
customer satisfaction. Whereas, on the other hand the lowest correlation (r=.521) between
purchase intention and usability. As each of the pairs are ranged between 0.30 to 0.90, therefore
it is confirmed that the variables have no issue with multi-collinearity and all construct are
distinctive (Bryman, 2015).
36
4.5 Multiple Regression:
The impact of independent variables on dependent variable is tested through multiple regression
analysis. Tables shows the summarized results.
Model Summary
Model R R square Adjusted R square Std. Error of the
Estimate
1 .910 .828 .826 .43820
Anova
Model Sum of Squares df Mean Square F Sig.
1 Regression 348.106 4 87.027 453.213 .000
Residual 72.200 376 .192
Total 420.306 380
Coefficients
Model Unstandardized Coefficients Standardized
Coefficients
B Std. Error Beta t Sig.
Constant -.042 .106 -.402 .688
Usability -.212 .042 -.174 -5.06 .000
Shopping Factor .177 .044 .151 3.98 .000
Functionality .252 .041 .215 6.09 .000
Customer .726 .030 .749 24.2 .000

Satisfaction
The dependent variable purchase intention, R-square = .828, adjusted R-square = .826, F= (4,
380) = 453.213, p= 0 < 0.05.
37
Result shows that (Usability, Shopping factor, functionality and customer satisfaction) defines
82.8% of variance, where F= (4, 380) = 453.213, p= 0 < 0.05. Also found that customer
satisfaction (ß=.749, p= < 0.05) importantly impacting on purchase intention, followed by
functionality (ß=.215, p= < 0.05), shopping factor (ß=.151, p= < 0.05) and usability (ß=-.174, p=
< 0.05). The established model is defining the impact on purchase intention which is strong from
the following regression equation.
4.6 Simple Regression:
4.6.1 HYPOTHESIS 1: CUSTOMER SATISFACTION AND PURCHASE INTENTION.

The hypothesis positively impacts on purchase intention is tested through simple regression. The
analysis is presented in Tables.
Model Summary
Estimate
1 .891 .793 .793 .48209
Anova
1 Regression 341.845 1 341.845 1470.895 .000
Residual 89.012 383 .232
Total 430.856 384
Coefficients
Coefficients
Constant .275 .085 3.25 .001
38
Customer .866 .023 .891 38.3 .000
Satisfaction
The result shows that customer satisfaction has 79.3% of the variance to purchase intention on (r-
square = .793, F (1, 384) = 1470.895, p= < 0.05). Moreover, customer satisfaction has a
expressively positive effect on purchase intention.
4.6.2 HYPOTHESIS 2: USABILITY AND PURCHASE INTENTION.

Hypothesis usability positively effects on the purchase intention which is examined by simple
regression. Tables presents the results.
Model Summary
Estimate
1 .521 .272 .270 .89880
Anova
1 Regression 114.132 1 114.132 141.279 .000
Residual 306.175 379 .808
Total 420.306 380
Coefficients
Coefficients
Constant 1.110 .195 5.67 .000
Usability .632 .053 .521 11.8 .000
Usability has 27.2% of variance to purchase intention on (r-square = .272, F (1, 380) = 141.279,
p= < 0.05). Therefore, usability has a significantly positive impact on purchase intention.
39
4.6.3 HYPOTHESIS 3: SHOPPING FACTOR AND PURCHASE INTENTION.
The hypothesis of shopping factor has a positive influence on purchase intention that is tested in
simple regression in Tables.
Model Summary
Estimate
1 .640 .410 .408 .81485
Anova
1 Regression 176.554 1 176.554 265.904 .000
Residual 254.303 383 .664
Total 430.856 384
Coefficients
Coefficients
Constant .746 .167 4.46 .000
Shopping Factor .749 .046 .640 16.3 .000
The construct shopping factor has 41% of the variance to purchase intention on (r-square = .410,
F= (1, 384), p= < 0.05). Hence shopping factor has a positive influence on purchase intention.
40
4.6.4 HYPOTHESIS 4: FUNCTIONALITY AND PURCHASE INTENTION.
The hypothesis functionality positively effects on purchase intention that is tested through simple
regression and the result is shown in Tables.
Model Summary
Estimate
1 .738 .544 .543 .71607
Anova
1 Regression 234.469 1 234.469 457.269 .000
Residual 196.387 383 .513
Total 430.856 384
Coefficients
Coefficients
Constant .107 .158 .676 .500
Functionality .870 .041 .738 21.3 .000
Variable functionality has 54.4% of the variance to purchase intention on (r-square = .544, F= (1,
384) = 457.269, p= < 0.05). Therefore, the construct functionality has positive impact on
purchase intention.
41
CHAPTER 5
5.1 Discussion
The research was conducted on Karachi, Pakistan online buyers to examine the purchase
behavior. The relationship between website usability, online customer satisfaction, website
functionality, shopping factor and how these all are impacting on purchase intention of the buyer.
Hypothetically, conceptual relation of the effect of usability, functionality, shopping factor and
customer satisfaction on purchase intention were developed and empirically tested. In research
we linked the model with the projected structural model. Although, literature supported usability
of website to purchase intention while testing the opposing model shows that usability should be
cured as a multi-level construct.
This exertion tells for the future studies that should improve structure by seeing more relatable
variables of awareness which may help in further study on online customers. In an applied manner
the effects are supportive in determining the effect of usability, shopping factor, customer satisfaction
and functionality on purchase intention in virtual environment where all products from travelling to
any commodity purchased online are promoted. Whereas, it is seen that customer satisfaction has a
positive effect on purchase intention. This outcome is supported by previous studies that satisfaction
leads to purchase intention (Anderson E. F., 1994). It shows that in the online atmosphere customer
satisfaction is playing a vital role that increases the intention of buyers to purchase any type of
product online. As the world has created the new way of distribution, internet is offering exceptional
level of internet access. If we talk from the consumer’s perspective internet is giving freedom to the
buyers that they can interact directly with the online websites at any time from any place (Olmeda,
2001). In the study it is also examined that customers are now well known about the technology so
they are not only having shopping online but now they are also planning their holidays online as
well. To take the advantage of growing technology and availing the opportunity of online business,
hospitality and tourism companies have boosted their competitive advantage by focusing their
resources more on online business. In prior study it is mentioned that by coming on the computer-
generated environment Marriott International has made US$1 billion in gross sales (Clabaugh, 2003).
It is therefore authoritative that online companies
42
are making their online consumers satisfied which in result may change e-browsers to online
purchasers, thus producing more sales.
In the research it is also found that functionality and shopping factor has a positive effect on
purchase intention. So, it is serious to all online companies to continue on investing on website
quality which defines the usability because online buyer’s behavior is significantly influenced by
their virtual skills. Yet another things is also found in aspect to usability and functionality of the
website that developing a website that is according to the customer demand is challenging
because it is increasing the satisfaction level and there is no uniform of developing any website
one can develop in any manner they want (Law R. B., 2006). The research used both usability
and functionality dimensions to test the buyer insights regarding website quality in Karachi,
Pakistan as they are empirically examined. For all online websites these two constructs should be
examined to increase purchase intentions. Feedback of the website is important because it should
be monitored that which feature is creating hurdle in aspect of website quality for the customers
while they are making online purchases. As (Gefen, 2000) conversed that in defining website
quality cultural difference may exist.
Results specifies that online customers of Karachi, Pakistan are more interested in user friendly
website which consumes their time less and what they actually need they get from that desired
website. The virtual companies need to improve their search engine and they need to categorize
their products very specifically so that customer can find in a minimum click. These all
circumstances come under the usability factor while on the other hand, if we talk about
functionality and shopping factor consumers are highly satisfied with the design, colors, product
images what they are showing they are delivering so this makes the satisfaction level high and
attracts the customer to buy even if they have just visited to browse which is directly effecting
the loyalty of the customer to that website and making intention to buy the product. Hence, rather
than working on website design further study should be conducted on website quality that how
should they make their website more user friendly and hassle free.
43
5.2 Conclusion:
The research has established and empirically tested hypothetical model of effect of usability,
functionality, shopping factor and customer satisfaction on purchase intention in the environment
of Karachi, Pakistan. The analysis of online purchaser behavior deserves constant effort from
together the side of academic scholars and industry practitioners. The demand of online shopping
remarkable as the online industry is growing on a large scale and very fast so the virtual
companies need to grab the opportunity to appeal in the online market. The usability of the
website is important in driving the traffic on website and making the browsers stay and attract
them so that they move towards online purchasing.
Likewise, other previous studies this research is also focused on some limitations. To conduct the
empirical test, the sample was taken as the population of Karachi from which 385 respondents result
were taken. The demographic outline of the respondents shows that they were comparatively fresh,
erudite and wealthy earning. Though, this model profiles equals the prior adopters of internet
technology founded by (Weber, 1999) it may not be representative of the population larger than
Karachi. Moreover, extra information regarding respondents using of internet may be of the interest.
(Perdue, 2001) evaluated the relationship of numerous methods of consumer experiences and the
website ratings and renowned user experience for their influence on the assessment of website
features. In future studies the sample size can be increased in order to have more descriptive data.
The data that was collected were the respondents of online buyers. As a result, the observation of the
online shoppers was based on how much website is user friendly, attractive and is satisfying what
they show is in actual when delivered and is delivered on time or not. In the future researches people
of only Karachi should not be only included but the research should be done on nation level so that
difference between e-browser and e-buyers can be resulted in more detail. Moreover, (Law R. B.,
2006) determined that not a single method looks to overtake in examining other online websites. So
this clearly shows that it needs to improve more consistent methodologies and assessment principles
to calculate the performance of the website. As a closing statement the future study of online
shopping websites should work on other instruments.
44
5.3 Future Direction:
As this research is based on online shopping in which we have discussed about the quality of
website, at what level customer is satisfied and what are its purchase intention towards the
website is examined to keeping the results in mind of this research the recommendation would
like to suggest is that virtual market is growing on a large scale in all around the world but
Pakistan is slowly in advancing the technology, so the future direction can be that the website
quality should be measured with other variables because if website is satisfying the customer
they will automatically come toward purchase intention so further study should be implicated on
the usability of e-commerce websites.
45
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53
APPENDIX A: QUESTIONNAIRE SAMPLE
This questionnaire is designed to conduct the research (required as a partial fulfillment for
my management science’s degree) Relationship between website attributes and customer
satisfaction: A study of e-commerce system. Following are some questions regarding your
personal information. Kindly tick (√) the appropriate box against each question.
Q1. Age
   41-60
 Above 60
15-25 26-40
Q2. Occupation
   Businessmen/Women  Retired
Student Job
Q3. Gender
 
Male Female
Q4. Income of the family
 
41,000 – 80,000 Above 80,000
 10,000 – 20,000  21,000 –
40,000
Q5. Ever did online shopping?
 Yes  No
If your answer is Yes, then continuing the Survey, and if your answer is No then you can skip the
further survey.
Q6. From which website you have done online shopping?
 AliExpress
 Daraz
 Kaymu  Other: ______________________
54
SECTION-ONE
Please circle one number per statement to indicate your view towards the statements below, where 1
means that you strongly disagree (or dislike) and 5 means that you strongly agree (or like).
Usability
1. I can find what I want with a minimum

1 2 3 4 5
number of clicks.
2. I can go to exactly what I want quickly. 1 2 3 4 5
3. The search functions on this website is helpful. 1 2 3 4 5
4. This website has well-arranged categories. 1 2 3 4 5
5. This website does not waste my time. 1 2 3 4 5
SECTION-TWO
Shopping Factor
1. This website provides in-depth descriptions according to the

1 2 3 4 5
gender wise and age wise (e.g., Men, women, kids etc.)
2. This website provides accurate information of product availability

1 2 3 4 5
in stocks.
3. This website provides customize option for products. 1 2 3 4 5
4. This website is a very good source of information 1 2 3 4 5
5. This website gives me enough information so that I can

identity the item to the same 1 2 3 4 5
Degree.
55
SECTION-THREE
Functionality
1. This website looks attractive. 1 2 3 4 5
2. This website looks organized. 1 2 3 4 5
3. This website uses colors properly. 1 2 3 4 5
4. This website uses fonts properly. 1 2 3 4 5
5. This website uses multimedia features properly. 1 2 3 4 5
SECTION-FOUR
Customer Satisfaction
1. Overall, I am happy with the quality of products and 1 2 3 4 5

services offered by this website.
2. I am satisfied with my decision to search for online 1 2 3 4 5
shopping with this website.
3. Searching for garments, accessories, electronic items on this
1 2 3 4 5
website is a good experience for me.
4. My choice to visit this website was a wise one. 1 2 3 4 5
5. I am well satisfied from this website and will also recommend my

1 2 3 4 5
fellows.
56
SECTION-Five
Purchase Intention
1. The probability that I would consider to buy from this website is

1 2 3 4 5
high.
2. If I were to buy any type of product, I would consider 1 2 3 4 5

shopping it from this Website.
3. I would use this website to compare similar and competitive
1 2 3 4 5
products.
4. I would visit this website to check the ratings for the product I want. 1 2 3 4 5
57
58
59
60
61

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FINAL YEAR PROJECT

IMPACT OF WEBSITE ATTRIBUTES AND CUSTOMER

PAKISTAN AIR FORCE – KARACHI INSITITUE OF ECONOMICS &

Topic: Impact of Website Attributes and Customer Satisfaction on

Academic Sessions: 2018

Sir Asif Iqbal Sir Adnan Anwar

(Supervisor) (Director Academics)

Project Title: Impact of Website attributes and Customer Satisfaction on Purchase

1.1 Introduction: ......................................................................................................................................... 9

1.2 Problem Statement: ............................................................................................................................ 13

1.3 Research Questions: ........................................................................................................................... 13

1.4 Research Objective: ........................................................................................................................... 13

1.5 Hypothesis Statement: ........................................................................................................................ 14

2.1 Literature Review: .................................................................................................................................... 15

2.2 Theoretical Background: ........................................................................................................................... 16

2.3 Customer Satisfaction: .............................................................................................................................. 16

2.4 Usability: ................................................................................................................................................... 18

2.5 Shopping Factor: ....................................................................................................................................... 21

2.6 Functionality: ............................................................................................................................................ 23

2.7 Purchase Intention: ................................................................................................................................... 24

2.8 Conceptual Framework: ............................................................................................................................ 26

2.9 Derived Hypothesis: ................................................................................................................................. 26

3.1 Research Methodology: ............................................................................................................................ 30

3.1.1 Research Design: ............................................................................................................................... 30

3.1.2 Research Approach: ........................................................................................................................... 30

3.1.3 Research Philosophy: ......................................................................................................................... 31

3.1.4 Sample Frame: ................................................................................................................................... 31

3.1.5 Sample Size: ...................................................................................................................................... 31

3.1.6 Sample Technique:............................................................................................................................. 32

3.1.7 Instrument Selection: ......................................................................................................................... 32

Table 3.1 Instrument Scale: ........................................................................................................................ 33

3.1.8 Statistical Tool: .................................................................................................................................. 33

4.1 Data Analysis: .................................................................................................................................... 34

4.2 Descriptive Statistics: ......................................................................................................................... 34

4.3 Reliability Analysis: ........................................................................................................................... 35

4.4 Correlation: ........................................................................................................................................ 36

4.5 Multiple Regression: .......................................................................................................................... 37

4.6 Simple Regression:............................................................................................................................. 38

4.6.1 Hypothesis 1: Customer satisfaction and Purchase intention. ..................................................... 38

4.6.2 Hypothesis 2: Usability and Purchase intention. ........................................................................... 39

4.6.3 Hypothesis 3: Shopping Factor and Purchase intention. .............................................................. 40

4.6.4 Hypothesis 4: Functionality and Purchase intention. ................................................................... 41

5.1 Discussion ................................................................................................................................................. 42

5.2 Conclusion: ............................................................................................................................................... 44

5.3 Future Direction: ....................................................................................................................................... 45

Appendix A: Questionnaire Sample ................................................................................................................... 54

Keywords: website quality, customer satisfaction, purchase intention, functionality, shopping

1.2 Problem Statement:

1.3 Research Questions:

1.4 Research Objective:

2.1 Literature Review:

2.3 Customer Satisfaction:

H1: Customer Satisfaction has a positive effect on Purchase Intention.

H2: Usability has a positive impact on Purchase Intention.

2.5 Shopping Factor:

H3: Shopping Factor has a positive effect on Purchase Intention.

H4: Functionality has a positive effect on Purchase Intention.

2.7 Purchase Intention: