Claro Thesis Chapter 2 (Consumer Behavior)

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 34

CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

RELATED LITERATURE

Concept of Customer Satisfaction

Customer satisfaction (CSAT) is a metric for gauging how well a company's


goods, services, and general customer experience live up to expectations. By
demonstrating how well your goods or services are received by customers, it represents
the health of your firm. Customers want quick and helpful customer service, but studies
suggest that there may be a gap between what companies believe would satisfy
customers and what does (Franklin, 2021). Businesses shouldn't presume to
understand what customers want. Instead, it's critical to comprehend the consumer's
perspective by making use of techniques like polling, focus groups, and customer
surveys. By utilizing these techniques, businesses may better understand what their
consumers want and can better design their services and goods to meet or exceed
those needs (ASQ, 2022).

Customer satisfaction is essentially a consumer's assessment of his or her level


of fulfillment in connection to decisions made about the acquisition and usage of
particular goods and services. Three recurring aspects of the concept of satisfaction
include the fact that it is a (cognitive or emotional) response to an evaluation process,
the fact that such a response depends on a specific focus (constituted by personal
expectations, benchmarks, and consumption experience), and the fact that such a
response depends on specific timing. (Guido, 2014)

There are a few methods and pointers you may use to please your clients without
completely revamping your business. To better serve your consumers, you must first
get to know them. Therefore, the secret to developing delighted consumers in learning
more about your clients. You can better serve your consumers if you are familiar with
them. Therefore, a requirement for gauging customer happiness is your CRM and your
capacity to enhance it with user-friendly analytical and operational customer data.
Second, you need to improve client happiness by offering individualized customer
service. Customers enjoy being treated like people. Including some personal touches is
one method to personalize your customer relationships. But if you already know your
consumers, it will be simpler to tailor your communication with them. Third, you need to
put yourself in the customer's position and exhibit empathy. No matter if you are the
director of marketing or the manager of customer relations, you are also a client. Each
of us has had a consumer experience. Therefore, it is simple to put yourself in the
customer's position while considering how to fulfill them more effectively. Consider your
personal purchasing history. Probably a lot will be taught to you! Last but not least, you
must use adaptable management strategies that directly affect customer satisfaction. A
certain level of intimacy between your consumers and individuals who have a direct
touch with them is implied by personalizing the customer connection, individuals
working in sales and customer service, for instance. Giving your staff some liberty will
help them, service consumers, in the best way possible and respond to their inquiries as
promptly as feasible. A salesperson's client connection is likely to be less responsive
and consequently of worse quality if they frequently have to consult their senior
management before responding to customer demands. (Aubagna, 2021)

Variables Affecting the Customer Satisfaction

There are many reasons why client happiness is important. One of the reasons is
that client loyalty is directly correlated with customer satisfaction, thus it's crucial to
make sure that your consumers are satisfied with your goods and services (Rana,
2022). A disgruntled client is more likely to share a bad experience than a satisfied one
is to share a good one (Franklin, 2021). The likelihood that a consumer will make
another purchase from you in the future may be predicted by how satisfied they are with
their current experience. Customers that are happy with your service are more likely to
come back to you or recommend you to their friends. Utilizing customer loyalty
programs will also help you increase client satisfaction (Rana, 2022).

Accessibility, empathy, reaction speed, personalization, convenience, value,


simplicity, quality, affordable pricing, appreciation, loyalty programs, and community are
the twelve main variables that have the greatest impact on consumer satisfaction.
Because it will provide your consumers with the best experience and make them feel at
home with your app, accessibility is crucial to the degree of customer happiness.
Customers will see a company as more approachable if it provides handy channels of
connection, such as live chat, social media, and email. They will therefore feel valued.
Another element that contributes to customer satisfaction is empathy. When most
customers are happy with their experience purchasing a good or service, they develop a
sense of loyalty and are more inclined to do business with you again. The speed of
responding to customer service concerns is critical for business owners. Your clients
are important and you want to make sure they are satisfied no matter what kind of
business you run. The better it is for your customer and your business, the quicker you
reply to a client's complaint, question, or request. Giving consumers the freedom to use
your services as frequently as they like while knowing that everything will be taken care
of at all times is what is meant by convenience. Any firm, regardless of size, should
operate on the basic tenet that the client is valuable. It will assist you in developing and
sustaining a positive relationship with your clients so that they continue to trust and
value your services. One of a business's most crucial components is simplicity. A
business will be easier to grasp the simpler it is, which will boost client happiness. A
delighted consumer is the one to whom you can sell again, thus quality is one of the
most crucial parts of the goods. Unfortunately, many businessmen do not consider this,
therefore your product needs to be as excellent as it can be if you want your consumers
to return to you as a result of a good product. The key to client happiness in any
organization is offering fair rates. Offering products or services at fair rates will
undoubtedly increase your consumer base and the success of your company. Most
consumers want to feel valued for their business, even if some individuals take it for
granted. Customers will support your brand and keep coming back to your store for new
purchases if they feel valued. A fantastic strategy to improve customer service for your
organization is to implement a loyalty or customer incentive program. Giving customers
a reason to purchase your goods or services is only one aspect of gaining client loyalty.
It also entails developing a program that makes doing business with your company
simple for them. Last but not least, building a community around your products might be
a revolutionary method to involve your target audience with your companies. Building
connections is crucial because it fosters loyalty, trust, and respect. The building that
relationship with your family members, as well as your staff, vendors, and customers, is
crucial for company owners. (Rana, 2022)

Methods by Retail Companies to Improve Customer Satisfaction

Understanding customer satisfaction is essential to ensuring your long-term


success since new businesses are launching all the time and clients have complete
control over which brand, they pick. Keeping your present clients and attracting new
ones depends on maintaining high customer satisfaction levels. There are twelve
methods to raise client satisfaction (Patel, 2020):

 Understand your customers. Every company should focus on understanding


customer psychology since doing so will help them provide a better experience.
Businesses that follow a cycle of predicting, recognizing, and satisfying client
demands should expect to see swift successes. Understanding your customers'
tastes and interests enables you to engage with them and have more meaningful
interactions that build your connection. Some clients anticipate preferential
treatment as a result of their continued patronage. When consumers are happy,
they become the finest brand ambassadors, sharing their triumphs and
experiences.
 Deliver omnichannel support. Omni channel customer service may be summed
up as "being where your customers are." By breaking down silos and enabling
seamless customer engagement across all channels, including text, social
media, email, and instant messaging, Omni channel support assists
organizations in streamlining all customer interactions. Omni-channel
communication enables you to provide consistent customer service across all
client touchpoints and not only creates a united brand experience but also
increases the trust of your business.
 Provide instant response with live chat. Customers typically quit your website if
they don't get answers to their inquiries or problems right away. Waiting for sales
or support help and being kept on hold for an extended period are the two most
prevalent customer service annoyances. To improve customer satisfaction,
response time is crucial. Having your problems fixed fast, according to many
customers, is the key to a positive customer service experience.
 Maintain customer service etiquette. Globally, many customers have abandoned
a brand after receiving subpar customer care. Every company should establish
guidelines for communicating with its clients. Long-term client connections and
higher customer satisfaction are facilitated by this. To provide good customer
service, you should teach and train your staff how to connect with and
communicate with consumers.
 Help your customers help themselves. One effective alternative strategy to close
the customer service gap is self-service assistance. Some customers
increasingly favor self-service over interpersonal interactions. The most popular
methods for deploying it include user forums, videos, tutorials, an extensive
knowledge base, etc. Self-service portals provide the advantage of increasing
team productivity. You enable clients to help and educate themselves on their
terms and speed by offering a center of knowledge.
 Act on negative reviews and customer complaints. By bridging the gap between
conventional word-of-mouth and a viral kind of feedback that might affect
consumers' attitudes, reviews have spawned a new form of communication.
Many consumers check reviews before making a purchase. Customer reviews
may give your company information about what its consumers desire, which
helps determine overall customer satisfaction. The companies most likely to
expand are those that can use consumer complaints as an opportunity to
cultivate stronger connections with clients.
 Engage customers 24×7 with chatbots. Increased client happiness may boost a
company's sales and profitability, which is one of the main reasons chatbots are
becoming so popular. Bots are always working to engage clients by responding
to their straightforward questions and pre-qualifying leads by posing pertinent
inquiries. In an online shopping setting, some customers chose to speak with
artificial intelligence. Through user engagement on websites, applications, and
messaging services, bots can raise customer satisfaction levels.
 Provide real-time assistance with visual tools. One of the main factors influencing
customer happiness is real-time support. You may connect with clients right
away without making them wait a long time by employing live engagement
solutions. For a better live chat customer experience, the chat dialogues may be
made interactive by using face-to-face video chat and co-browsing. When live
chat, co-browsing, and video chat are used together, the query may be resolved
more effectively.
 Measure your customer satisfaction regularly. How the client believes they are
being treated determines the majority of purchasing experiences. Customer
satisfaction metrics are essential for all types of organizations. It offers an
opportunity for improvement and important insights into what functions.
 Value your customer feedback. Customers get devoted to your brand when you
are obsessive about pleasing them and appreciating their ideas. To provide the
finest customer experience, it is crucial to understand client opinions. The gaps
between customers and enterprises may be found with the use of feedback.
When customers feel heard, it is appreciated. Repeat business can be stimulated
by a company's straightforward acknowledgment that it is open to input that will
be incorporated. Knowing your present standing and the areas where you need
to improve is made easier using CSAT measurement. The greatest method to
raise customer happiness is to get feedback and act on it.
 Empower your team to go the extra mile to delight customers. Why is it important
to empower the support team? It allows the support personnel the freedom to
make decisions on their own that will result in content and delighted clients. The
staff should have the necessary training to spot and seize chances to improve
customer service. Giving your staff the freedom to act as a unit will enable them
to wow your clients with excellent customer service.
 Build strong communities. Customer satisfaction scores rise 5.4 times more
annually for businesses having online communities. How precisely do you
guarantee client happiness and get results? Building a customer community is
one crucial strategy to engage clients that many organizations overlook. A
community can be a designated area where consumers can communicate with
you and with one another, such as a message board, customer portal, or
LinkedIn Group. However, less formal communal places, like social media, may
also be quite successful.

Concept of Online Shopping

The practice or action of purchasing goods or services online is known as online


shopping. It entails using the internet to find a seller's website, choosing what you want,
and making delivery arrangements. A credit or debit card can be used to make an
online purchase, or payment can be made in person at the time of delivery. The term
"online" simply means "on the Internet," and it refers to both looking for and purchasing
something online. Online sales have been available for roughly 25 years. Its popularity
has considerably increased. Today, the majority of shops provide online buying options.
To put it another way, they have a website that enables customers to make purchases
from them online. The merchant either sends a delivery to the customer's house, place
of business, a neighbor, or a neighboring store. A lot of individuals purchase their
weekly groceries online. Some businesses solely do internet sales. There isn't a real
store that customers may go to. (Market Business News, 2019).

Before the development of the World Wide Web, Michael Aldrich invented a
system called Redifon's Office Revolution in March 1980 that linked sales organizations,
suppliers, and clients. Utilizing videotex technology, businesses were able to place
electronic purchases from suppliers and sales to customers. It is regarded as a
significant precursor to and effect on the evolution of online commerce as it is known
today. Several years after the World Wide Web's inception, in 1994, online transaction
services, such as banking and retail, began to appear. In 1994, NetMark and the
Internet Shopping Network processed the first purchases, sparking a surge in online
shopping. In 1995, Amazon.com and eBay debuted their websites, giving people the
opportunity to purchase online. The Intershop Online software system, created in 1995
by Intershop Communications AG, was used by many of the early websites for online
shopping. It allowed companies to more quickly incorporate online shopping
capabilities, or e-commerce, on their websites with safe transactions for their clients.
(Computer Hope, 2020).
The rise of internet buying in the Philippines is for a variety of reasons. Let's start
by considering the customer's viewpoint. Online shopping makes shopping more
convenient. Without physically visiting the store, you may look around and find what you
need. No need to trek between stores or deal with traffic bottlenecks. Because it saves
them a lot of time and money while allowing them to purchase from home, Filipino
customers find Internet shopping to be simpler. Online shopping's appeal in the
Philippines is largely due to its usefulness and accessibility. All kinds of apps are well-
designed for mobile users, in addition to the fact that they can be accessed from a
mobile phone, and there are several online payment options. The nicest thing about
internet buying is how regularly your purchases are delivered to the address you
choose. All you have to do is make an online payment and wait for delivery to occur!
Let's consider this from the standpoint of the company now. It's considerably easier to
launch your internet store today if you're an entrepreneur. Website systems are
available with features tailored specifically for e-commerce sales. They let you market
shipping goods, bought digital goods, and both online and offline services. You may
quickly launch an Internet business and start earning money in a few days. Finding
successful goods or services to offer, whether you're producing, reselling, or drop
shipping, is undoubtedly one of the toughest hurdles when beginning an Internet
business. Online communication will soon be the norm for dealing with customers,
suppliers, and other stakeholders. Finding and purchasing items online is now easier
thanks to the development of e-commerce. Even tiny firms may now reach a broader
market with their goods and services thanks to e-commerce than they could before with
conventional offline retail. Online buying will keep expanding. The ease of online buying
has become necessary in the COVID-19 age. And with all the advantages and security
of online purchasing, it comes as no surprise that more and more consumers are
choosing screens over actual storefronts. (Lookupgrade, 2022)

Online Marketing Mix

Understanding every component of your marketing process helps us to build


stronger, very functional, and more successful enterprises online, which is an
advantage of incorporating an online marketing mix into your business model.
Understanding how various components of an online marketing mix relate to your
company is crucial for developing and implementing an effective digital marketing plan.
The seven Ps are listed in the internet marketing mix (Risquet, 2020):

 Product. The product in an online marketing mix must be entirely online, which
means it cannot have any physical components. For instance, it won't be
sufficient to offer conventional goods through an Internet store. The production
and administration of the product, its price, and its distribution are all Internet-
based operations that must be considered when considering the scalability of an
online product. You have created a scalable online product if every step is done
online. We must consider all of the factors that surround the product itself while
developing an online product for an online marketing mix. Consider the following
questions to help us deliver a better online product: what is the online brand of
the created product; does the online product have a product line or a set of
products in a range; what are the additional services surrounding the product;
how would the end cycle of the online product look and is it upgradeable, or is it
update-based, for example; what are the guarantees of the said online product;
and how to design your online delivery. You're getting closer to creating a top-
notch internet product to alter your company strategy if you can respond to all the
inquiries. In considering what kinds of online product concepts, we may
incorporate into the product area of our marketing mix. There are a few options
we can investigate. Making software for internet distribution is a common place to
begin. Then there are concepts for products that center on content, like
developing downloadables (eBooks, online courses), or producing excellent
material that serves as the product itself, like a collection of articles and blogs.
For example, online consulting services, which are partially enabled by
digitalization, give consumers a fully online experience. While distribution is now
done online, it still necessitates the actual presence of the staff, which makes
achieving scale more difficult. Redefining current physical things into a digital
world is one technique to innovate new online products and business strategies.
For instance, streaming music and videos evolved from a purely physical
experience to a fully digital good. Combining the choices in the online marketing
mix can help you create new online items that will provide greater results. Your
online items' distribution channel or price plan would be a key differentiator.
 Price. The price of a product in an online marketing mix refers to the price your
consumer will have to pay. We must take into account auxiliary considerations
when determining price, such as how much a consumer values an online
purchase and how long it takes for them to complete the transaction. You may
create more realistic pricing for your items by taking into account the time people
spend purchasing your products in your pricing strategy. Online purchases are
often associated with being immediate, although there are typically several steps
for the buyer to complete, including pre-registration, registration, onboarding,
duration of the checkout and purchase procedure, and download times. A
prolonged acquisition period raises client costs, which results in a decline in
sales. Scalable revenue growth is achieved by properly pricing online goods.
Ineffective pricing tactics will ultimately lead to the product's demise. The minor
problems also scale when there is a greater size. A great pricing plan makes use
of discounts, payment periods, and allowance possibilities. If we examine the
price using three common pricing models, they are the SaaS (Software as a
Service, model, where a subscription gives access to an online product), the
single purchase model (One price for one product for a one-time purchase), and
the free model (The product itself is free, and the monetization is through other
means). Each of these pricing models has its advantages and disadvantages that
you should take into account when developing your pricing strategy. If an online
product is dynamic—that is, has updates, varying degrees of user sophistication,
or is upgradeable—it is advantageous to have a subscription model for it. A
single purchase is advantageous for finished goods. You must factor in the fact
that even a finished product needs some amount of client assistance and
onboarding when employing a one-time purchase price approach. Free items
that lack certain problem-solving capabilities will not function, hence it is
advantageous when a free model is available. The most typical method of
making money off of free goods is through advertising.
 Place. The venue and method by which you provide your clients access to your
items are referred to as a place in the internet marketing mix. You have a lot of
possibilities in internet marketing for selling on a variety of platforms and
techniques. The optimal location for your client depends on where it is easiest to
get to and is handy for your target market. If we focus just on selling online
goods, the options include social networking platforms like Facebook Shop,
specialized online stores like Shopify and WooCommerce, online marketplaces
like Amazon, eBay, Etsy, and other specialty markets, and landing sites with buy
functionality. The objective of a spot in the Internet marketing mix is to take your
clients' convenience into account. For the best possible experience, make sure
your clients can access your online items at the locations they find most
convenient. Your target market should help you choose your locations, and the
ideal distribution strategy for the goods online will depend on where you end up.
You must consider your ability to cover the market in that area when choosing
where to include possibilities in your internet marketing mix. For instance,
marketplaces (such as Amazon or eBay) have less control overall but higher
early visibility owing to organic views. If there is money set aside for audience
outreach, an internet retailer may be able to cover more ground. All things
considered, any online business will eventually need an owned channel (website,
online shop), and the necessity to spread to other platforms grows the more
globally you reach and precisely you target your customers.
 Promotion. Utilizing online marketing communication tools to connect with your
target consumers is considered promotion in the context of the online marketing
mix. To reach and sway a target audience, promotion comprises the use of
internet advertising, public relations, direct communication, and sales
promotions. You may select from a variety of efficient online marketing methods
to use in your overall marketing mix. When addressing their clients, every firm
and its online offerings need to take a distinct strategy. Some approaches center
on actively promoting on various platforms, while others focus on establishing
authority with the content or growing a social media following. To create and
carry out an efficient internet marketing plan, you must first identify your
audience. You cannot invest in every channel available simply because it exists.
No matter what their constraints are—financial, technological, geographical, or
otherwise—every organization may uncover and apply efficient internet
marketing strategies to improve their performance. To prevent making plans that
you can't adequately execute, your initial marketing strategy will need to mention
your limitations. When your company needs money now and investing in website
content to improve your search engine rankings takes time, the method won't
help you keep the lights on. Your company's objectives are included in a great
web marketing plan, along with realistic ways to achieve them. To maintain
growth attainable, innovation in your marketing selections is crucial. If we use the
example of search engine rankings once again, integrating it into your whole
internet advertising strategy will eventually benefit you even though it won't
increase your revenue today. Online marketing promotion techniques include
search engine marketing on sites like Google and Bing; SEO; content marketing;
online PR; social media advertising on sites like Youtube, Pinterest, LinkedIn,
and Facebook; email marketing; partnerships; and other marketing channels.
Online marketing has the advantage of allowing you to utilize web analytics to
track the effectiveness of your campaigns in real time. Web analytics in online
marketing enables ongoing plan improvement. Online marketing is evolving
quickly, and you may always uncover new chances thanks to enhanced data
collection techniques and fresh ideas on how to tweak your strategies. Having a
defined strategy for how your brand and its messaging appear across channels is
crucial for promotion. Numerous platforms might result in inconsistent client
experiences, which worsens brand recognition. Controlling your brand's
communication is crucial for internet marketing promotion.
 People. The importance of people in the Internet marketing mix cannot be
overstated. People involved in online distribution and staff who work directly with
customers are necessary for great items and enterprises. Measuring and
analyzing interactions between a company's employees and consumers, as well
as interactions between employees and clients, will help you answer the issue of
whether or not people are part of your marketing mix. In the end, a brand's
principles are represented by the individuals who work there. When
conversations take place online and are not in person, customer service is
crucial. We can provide a more consistent experience for both consumers and
workers by designing better customer support solutions that allow for smooth and
scalable interaction between both. You may integrate a variety of online
assistance solutions and setups into your company process. For starters, you
may use online evaluations (like those from Google My Business) and integrate
social media as a route for client service. You need to obtain the assistance
method that is most appropriate and successful for that position in your
marketing mix. Chat software, for instance, can be used by an online shop or
consulting business to link support staff and clients directly on the website. When
they reach a critical mass, unanswered marketing decisions that affect how we
plan our answers and our customer satisfaction approach will adversely hurt any
organization.
 Process. The process as a marketing choice specifies the necessary steps and
its optimization for providing online items and fundamental experiences of it.
What activities are required for a product to give its users its core experience?
Process optimization depends on data collection and key performance indicator
(KPI)-based data measurement. It is crucial to continuously monitor the
effectiveness of your activities in your marketing mix if you want to have an
efficient process. It is more likely that we will be able to comprehend a company's
health from the standpoint of Internet marketing if we have a stronger procedure
in place and document every step we take. Monitoring processes and the overall
system's performance helps us to identify key problems, ideally, before they
occur or, at the very least, very early on before any severe failures have taken
place. Understanding the fundamental principles that keep our strategy
sustainable at any given moment requires that we contextualize online marketing
practices in all that we do and all of our initiatives.
 Physical evidence. Physical evidence in the extended marketing mix refers to the
various aspects of the service experience, including the buildings, interior
designs, livery, and post-purchase artifacts (souvenirs). These types of evidence
won't have a tangible component in an online situation. This tangible proof may
still be digitalized, which would be a significant marketing choice. Online proof in
the form of brand awareness across many platforms is quite good. The number
of followers, likes, and other social engagement indicators, for instance, can
show how successfully these platforms enhance customer experiences. Since a
website is typically the most significant channel for an online business, its design
is crucial for online evidence. The design of your website has a significant
influence on the non-human service interactions that your clients will have with
your online business. We can increase our online evidence in a way that
considerably enhances our marketing judgments when we have a regulated and
comprehensive multi-channel online experience.

A better marketing plan will be created for your organization if the 7 Ps of internet
marketing are incorporated into the marketing decision-making process. The
advantages of marketing decisions on the product, pricing, location, promotion,
personnel, method, and tangible proof are enormous. Businesses that know how to put
everything together might use marketing to increase their competitiveness in the
market. Although the study focuses on employing an online marketing mix using simple
online techniques, the truth is that many businesses use both offline and online
marketing strategies. The intention is to demonstrate the potential of web marketing for
contemporary business through an extreme scenario. By demonstrating what is
feasible, we can view our companies differently and optimize their performance
potential. (Risquet, 2020)

Online and Offline Shopping Motives

Menoe and Barnard (2020) claim that the idea of online and offline purchasing
motives looks more closely at the reasons why people shop online as well as the typical
steps they take. The study also explores the reasons why people purchase online as
well as the steps they take to complete their transactions.

OS buyers' motivations, according to Sarkar (2011), are either hedonistic or


utilitarian (pleasure-seeking). When shopping, these two (2) types of customers
consider several factors. While utilitarian shoppers concentrate on finding solutions to
the needs of the consumers, hedonic shoppers concentrate on the experience and
delight. Utilitarian buyers are said to be goal-oriented and motivated by a practical
objective (Forsythe, 2006). At the same time, online shopping has developed due to
new technology advancements, expanding user experiences, and an increase in
product selections, promotion, and marketing (Lee et al., 2010; Suri et al, 2003). The
increasing significance of the internet is transforming social situations as well.

Jusoh and Ling (2012) point out that as compared to traditional brick-and-mortar
retail shop purchases, online purchases of tangible products face particular difficulties.
Consumers are not given the chance to Internet shoppers are unable to directly check
the commodities they plan to buy and must instead rely on mediated representations of
the items. They frequently rely on outside parties to deliver the things they have
ordered, and they might wonder whether it is convenient to return items. According to
Hassanein and Head (2007), a significant distinction between online and offline
consumer marketplaces is impeding e-commerce. The loss of social and human
components in the internet world is growing. Buying experiences in person offers an
interaction setting with other people and, as a result, covers a variety of feelings not
found while shopping online. Given that internet buying is more impersonal,
anonymous, and automated, it can be thought to lack human warmth and friendliness.
According to Haque et al. (2011), although online buying is practical, it will never
completely replace physical stores. Internet shopping lacks in-person interaction that
allows customers to utilize their senses to physically feel the products they are buying.
On the other hand, Zhou et al. (2007) point out that more and more virtual and social
experiences are being included in e-commerce environments for online customers. The
decrease in the variable adoption of online shopping among various shopper
orientations is the anticipated outcome.

According to Sarkar (2011), utilitarian purchasing motivations include


convenience, variety, looking for high-quality products at fair costs, etc. Hedonic
purchasing motivations, however, are about people's emotional need for pleasurable
and stimulating shopping experiences. The purchaser is a logical decision-maker who
seeks to maximize utility by concentrating on the product's observable advantages.
When it comes to utilitarian consumption, buying has been seen as a problem-solving
process where the customer follows a sequence of logical stages. Hedonic consumption
entails activation of the emotions when consuming either buying or eating. Different
emotional states, both physiological and psychological, play important roles in hedonic
consumption. Different goods or brands have varying degrees of hedonism and depend
on how involved people are at different times. Hedonism levels should be greater in
conditions involving heavy consumption. The current experience model (hedonic) and
the conventional purchase choice model (utilitarian) differ in four important ways: mental
conceptions, product classes, product usage, and individual variations. In many
purchasing situations, emotional wants take precedence over practical considerations.
Hedonic arousal must occur in a dynamic relationship between the product and the
customer, which is a crucial need. A person cannot connect directly with a product
online, with a few notable exceptions such as watching movies, playing games, and
listening to tunes online. When picking a brand to buy online, a person can only view
those aspects of the brand that can be represented through the image on the screen.
Online shoppers are unable to interact with, smell, or taste products. Online buying has
a limited effect on hedonic arousal.

The functional and non-functional motivations of conventional shopping are noted


by Forsythe et al. (2006). The utilitarian purposes of convenience, variety, and product
quality are all connected to functional reasons. Non-functional (hedonistic) motivations
relate to social and emotional requirements for good, fascinating purchasing
experiences. They are more concerned with pricing and convenience. The main
benefits of purchasing in non-store forms are convenience, increased product choice,
special product offerings, and reduced pricing. Most internet buyers have certain goals
in mind. Online buying might have certain social and personal motivations.

Zhou et al. (2007) point out that utilitarian customers, also known as goal-
oriented shoppers, are motivated by goal achievement with little annoyance while
attaining efficient and timely product acquisition; in contrast, hedonistic consumers are
motivated by pleasure. Consumers, also known as experiential shoppers, are similar to
brick-and-mortar window shoppers in that they purchase for fun and enjoyment. It was
discovered that hedonic (or experiential) consumers exist in the internet world for
information-gathering objectives such as continuing hobby-type searches, involvement
with a product category, pleasant sociality and surprise, and bargain hunting. Because
they do not have a clear objective in mind when they visit an online shopping site,
experiential consumers should be targeted by retailers to inform and influence their
decisions. Interactive settings provide customers with an immersive or hedonistic
experience and significantly greater pleasure than in text-only settings. Arousal,
pleasure, and dominance have been recognized as the three aspects of emotions that
might influence a person's decision in environmental psychology studies to enter or
avoid a situation. Therefore, it is essential to pay close attention to a website's design to
draw experience shoppers and guarantee that their product browsing results in
purchases. While experiential online consumers love the surprise and thrill of the buying
experience, goal-oriented online shoppers are shown to lack impulsivity but embrace
flexibility and control.

Delafrooz et al. (2010) point out that internet shoppers who are hedonists also
want fun, excitement, arousal, joy, festivity, escapism, fantasy, adventure, etc. in
addition to knowledge. Instead of using internet shopping to accomplish their aims,
these experiential consumers want to be fully involved in the experience. How they
interpret their experiences also depends on the qualities of the medium itself. In
general, the likelihood of impulse purchases and frequency of website visits will rise
when hedonists are content. The advantages may be of a physical, mental, societal, or
material character. Online shopping is popular for several reasons, including
convenience, low prices and deals, a wide range of stores, fun and impulse buying, and
good assortment and availability.

Economic, personalizing, ethical, indifferent, recreational, convenience-oriented,


highly-involved, and psych-socializing or community-oriented customers are only a few
of the extant kinds of shopping orientations, according to Zhou et al. (2007). Economic
shoppers are price-conscious buyers who care about finding the greatest deal or getting
the most value for their money. Customer customization esteems the ties they have with
store employees. Those who are devoted to a certain retailer or brand are considered
ethical consumers. Inactive customers are apathetic shoppers. Recreational shoppers
are motivated primarily by personal factors (such as self-satisfaction and learning about
new trends) and enjoy the process of shopping whether or not a purchase is made.
Time, space, and effort are constantly taken into account by convenience-focused
customers. The opposite of indifferent shoppers is those who are highly engaged, and
psych-socializing (or community-oriented) customers frequently purchase for social
reasons (such as the joy of negotiating and social interactions outside the house).
Additionally, compared to non-consumers, online shoppers are more creative, variety-
oriented, brand- or price-indifferent, and less risk-averse.

According to Rohm and Swaminathan (2004), customers may be persuaded to


buy in a certain sort of environment if they can implicitly gain a particular set of benefits
from doing so. These services may include a convenient location (place utility),
extended store hours, and a speedy checkout (time utility), as well as a product
inventory and distribution system that enables customers to take instant possession of
the products they have purchased (possession utility). The convenience/time savings in
general (location, time or effort savings), the shopping experience (recreational
shopping, shopping as a leisure-based activity, motivated by the process and enjoyment
of the shopping experience itself, independent of product-specific or other task-directed
objectives), and social interaction (social motives, social interaction, reference group
affiliation, and communicating with others having similar interests) are the main reasons
people shop (delivery time).

According to Hassanein and Head (2007), social presence is the degree to which
a medium enables users to perceive others as psychologically present. Providing
opportunities for genuine human connection or provoking fantasies of human interaction
can both contribute to a sense of warmth and friendliness. Through website features like
e-mail after-sales assistance, virtual communities, chats, message boards, and human
web assistants, genuine human connection with other people may be implemented in
an online setting. Similar to how personal photos and letters can give a sense of
presence, images and text may do the same. Language usage can contribute to a
feeling of warmth and connection. Even small signals, like "gendered" text, can elicit
human-like behaviors, including effects related to social desirability. The use of casual
and conversational language might affect how social presence is perceived. They look
to examine how different levels of socially engaging text and image design features
affect how people perceive their social presence online and how that affects how people
perceive websites in general. A higher degree of perceived social presence has been
demonstrated to have a beneficial effect on how trustworthy, enjoyable, and useful
shopping websites are viewed by users, which results in more favorable customer
sentiments.

Impact of Online Shopping on the Retail Industry

Amitsaha (2015) claims that the following factors influence online retail shopping:

 Turnover: When compared to previous years, retailers have witnessed a


significant reduction in their turnover. Some companies have reported stagnant
growth, if not a loss, which is a dangerous indicator for the business.
 Profit margin: Online stores have sparked a pricing war in the industry, with
merchants bearing the brunt of it. Most of these merchants have tried to
decrease their prices to remain in business, but due to their high operating
expenses, they are forced to forgo their profit margin.
 Discount: To compete with online companies that wow shoppers with great
deals, merchants are alarmingly boosting their discounts. Merchants must cut
their prices to a relative amount to compete in the market, even though they
cannot provide discounts that can match those offered by online retailers.
 Variety of stocks: Online stores have a broad range of goods, and merchants fall
well short of the e-stores in this respect. However, the majority of retailers do not
have any desire to compete with the online stores in this area. The loss is
acknowledged. Retailers cannot keep a big inventory on hand since doing so
might result in unsold inventory at year's end, which could result in significant
losses for the business.
 Customer services: Retailers are now choosing customer services to strengthen
consumer loyalty. Retailers are doing everything they can to specialize in the
areas where internet businesses fall short, from installation and insurance to
repair and maintenance. In the same vein as online stores, retailers are
increasingly launching home delivery services. Additionally, after-sale services
are offered cheerfully.
 Window shopping: Customers are increasingly choosing to view things in
physical stores and then purchase them at a discount from online retailers.
Presently, prospective customers outnumber actual clients for retailers.
 Advertisement: To boost their sales, merchants are now more active in
advertising campaigns than ever before. Retailers seize every opportunity to
promote their business by benefiting from the circumstances.

RELATED STUDIES

Concept of Customer Satisfaction

The success of any company organization hinges on how happy its consumers
are. Customers always come "first" and are followed by profit whenever a firm is just
getting off the ground. Companies that are successful in providing complete client
satisfaction will continue to hold the top spots in the market. The success of a business
depends heavily on its ability to satisfy its customers, which also helps to increase the
market value, as recognized by today's commercial organizations. Customers are often
those who purchase products and services from a company or market that fulfills their
requirements and desires. Customers buy things to fulfill their financial expectations.
Therefore, businesses should base their price decisions on the product's quality to draw
in customers and keep them as long-term partners. (Khadka et.al., 2017)

The company must guarantee that the service is complete and worth the price
they are charging. This will bring in more clients and maintain the long-term bond
between the client and the business. Additionally, current consumers may assist
businesses to attract new clients by sharing or supplying information about their goods
and services. Feeling content after achieving what one wished or needed is what is
meant by satisfaction. It is challenging to determine whether clients are happy with the
accessibility of the good or service. Therefore, ensuring client happiness is a difficult
undertaking since other factors must be taken into account. Nowadays, the rivalry is
evident between businesses and in all markets, which has been one of the difficult
responsibilities for rivals. Competitors are efficiently establishing their marketing
channels, despite the rising market's appearance of difficulty. (Khadka et.al., 2017)

Offering the greatest and most advantageous items in this cutthroat industry is
one of the key factors in capturing customers' attention. Customer loyalty will
undoubtedly follow when a customer's delight is earned. Additionally, a corporate
organization would not exist without the consumer. The improvement of customer
satisfaction is crucial if you want to attract more clients. These two words are crucial for
reaching corporate objectives. Therefore, the most crucial relationship is between the
company organization or market and its clients. (Khadka et.al., 2017)

Studies About Customer Satisfaction

In research by Khadka et al. (2017), Lasfolk and Asplund were interviewed and
asked what they thought about customer satisfaction and the significance of this
concept in the business. The purpose of this inquiry was to learn how the organizational
body understood the concepts of customer pleasure and loyalty as well as how much
attention they paid to them. The interviewees had a good understanding of this phrase.
They feel that providing client happiness is essential to winning over a company's
confidence. Without these two phrases, the organization would not have been able to
endure this long in the cutthroat market. The researchers enquired as to what influences
consumer satisfaction from Lasfolk and Asplund. Customer happiness is influenced by
communication and service that values the customer's money, according to Lassfolk.
Asplund also believes that a company's approach to its clients may have a significant
impact on their happiness and loyalty. Here, it can be concluded that customer
happiness is mostly influenced by service. The outcome of loyal and happy customers
is good service. The researchers questioned Lasfolk and Asplund about ideas that may
raise client satisfaction levels. Here, the interviewee underlined that hiring
knowledgeable, skilled, and qualified staff can be one of the finest ways to boost client
satisfaction. Regular customer follow-up on the service and feedback from them might
enhance providing service in accordance with the needs of the client. One more
significant factor that might satisfy a consumer is the use of new technologies to
enhance the cleaning service. In general, the respondent believed that understanding
the demands of the consumer might increase customer happiness. Last but not least,
the researchers inquired about Lasfolk and Asplund's personal perspectives on the
difficulties in raising happiness and loyalty. Here, the interviewees claim that it is
challenging to have a consumer who is completely happy. One of the biggest difficulties
is the communication gap between the company and its customers. According to
Lassfolk, another factor that affects the client both directly and indirectly is the cost.
Similarly, Asplund believed that employees should be properly educated about the
actual client needs because the information gap between staff and managers might
occasionally cause issues at work. To overcome the obstacles in the process of
boosting customer happiness and loyalty, the network between the employer,
employee, and consumer appears to play an equal role in this instance.

According to a study by Wadud (2012), businesses are updating themselves to


keep up with technology to please both target and current consumers. Modern
technology is developing more quickly than before. Organizations have realized that
they cannot compete just on pricing but instead must focus on their valuable customers
as business rivalry grows more global and aggressive. Successful service providers are
always looking to improve their standards of performance. In this regard, new research
and ideas suggest that when firms acknowledge that the demands of both the "internal"
and the "external" customer are taken into consideration, the notion of customer care
may be made clearer and can be enhanced. Therefore, the business should stress the
complete connection with consumers, which means they should enhance the process
through which service is supplied to the client, in order to provide outstanding service,
which is beyond customer expectations. Whether or whether the services meet
expectations can be used to gauge customer satisfaction. The difference between
projected and actual service levels, as well as service costs, are the key factors
influencing consumer satisfaction levels. The majority of the time, consumers' prior
experiences, values, and requirements, as well as recommendations from friends and
family, as well as company marketing communications and reputation, where they made
promises of high-quality service, determine expected service quality. On the other hand,
the output of the service, the surrounding environment, and individual interactions with
contact workers and clients themselves all have an impact on how well the service is
regarded. The cost also contributes rationally to an increase in perceived service
satisfaction.

Respondents were questioned about how they pleased their customers to have a


thorough idea of what LRA consumers desire to be satisfied. According to the majority
of respondents, this is accomplished by consistently supplying consumers with services
or goods that satisfy their requirements, by treating them well, by making sure they are
informed of the types of taxes that must be paid, how they must be paid, and what those
taxes are for. Customers will thus be happy if the public is given more information and
clarity, citing excellent communication as being essential to meeting consumer
requirements. Customers are happy when better services or products are offered at a
reduced price and are affordable for the majority of customers, according to a taxpayer
who supported this. Another taxpayer agreed with this viewpoint, saying that by
providing services at reasonable pricing, clients will consistently use the business.
Customers may be happy, according to an LRA employee, by processing information
quickly, being aware of issues as they arise, and having their concerns addressed.
Another argument is in favor of treating consumers as though they were superiors. The
majority of respondents had diverse perspectives on what makes for pleased
consumers, but they all agreed that customers may be satisfied if service providers can
foresee their requirements and satisfy them. Building strong relationships with clients
and offering high-quality goods and services can help with this (Johnson et.al., 2018)

According to Palani's research (2020), managers in this position evaluate the


effectiveness of customer satisfaction in order to raise the firm's worth and grow the
business. According to the report, one of the key elements of customer happiness is
providing customers with value that goes above and beyond what they desire.
Customers' expectations, perceptions of value, and service quality are three of the key
variables that influence their level of satisfaction. While Spotify only offers a
conventional music service, the manner they provide it helps them stand out, giving its
consumers a higher perceived value. Positive customer satisfaction results in client
loyalty, whereas unfavorable customer satisfaction results in unfavorable word-of-mouth
and customer complaints. The crucial metrics improve the economics in addition to
increasing customer happiness. There is more to customer happiness than a look back
at everyone's life. Everyone is affected by the cycle. It is crucial for other sectors to
function effectively and satisfactorily for one industry to do so as well. Business and
operational processes have evolved as a result of globalization. Any business that
doesn't satisfy its customers won't last long in the market. According to the study,
quality is one of the important variables that suggests a favorable result on customer
satisfaction, enabling a firm to offer a high-quality service. Future studies are quite
effective in helping us understand how the market is changing. The evolution of
technology and occasionally shifting consumer tastes lead to variations in customer
satisfaction. For the second phase, this study has to be expanded with further analysis.
The study is constrained to a few factors; if Spotify supports those features for more
data quality, the study might be more accurate in the future.

Concept of Online Shopping

According to Guruswamy's (2013) research, the Internet has become a potent


weapon in recent years. The introduction of the Internet has significantly reduced
business obstacles and facilitated shopping. Due to high-speed data transmission and
other technological advancements, the growth of the internet over the past five years
has resulted in a large increase in web users, giving businesses an edge to promote
themselves more effectively. Customers utilize the internet today for a wide range of
activities and purposes, including researching goods and services, businesses, their
features and costs, their availability, choosing goods, placing orders, and paying for
them online to ensure a seamless transaction.

According to a study by Kailash (2020), online shopping is a type of electronic


commerce in which customers purchase goods from merchants online. The website
serves as the primary conduit between the business and its online clients. The four Ps
of the traditional marketing mix can be combined by the website owners to generate a
combination of product information, interactive website features, emotions, stimuli, cues,
and product and brand experience. The marketing activities of information discovery,
communication, sales, and distribution are made easier by the internet. In the modern
era, internet shopping is increasing popularity, and there are numerous well-known and
regularly frequented online shopping websites worldwide.

Studies About Online Shopping

From the viewpoint of the consumer, the research by Gao (2015) assists specific
consumers by educating them about the many benefits of online shopping, including
convenience, a wider variety of products, lower pricing, and simpler product
comparisons. With these benefits, consumers may spend less time and effort
purchasing online, which may minimize their perceived transaction costs (TCs). By
examining a number of antecedents of TCs, the study assists current and potential
online shoppers in evaluating the advantages and disadvantages of online buying. This
study is also anticipated to make customers aware of how significant e-commerce has
become in today's information technology culture, making them more open to doing
their shopping online and accepting that there are alternatives to conventional in-store
purchasing.

The study findings by Gao (2015) offer three key practical implications from a
marketer's point of view that give online suppliers a greater grasp of the allocation of
resources and skills in reaching minimal customer TCs and producing positive
behavioral effects. First off, by tracing the origin of each cost dimension, the TCs
provides online providers with a framework for determining what is cost-related to
consumers and for reducing comprehension of what makes up the total TCs. Second,
the study offers online sellers crucial insight into which antecedent elements should
receive more focus to lessen consumers' perceived TCs. For instance, e-marketers or
online vendors need to pay greater attention to crucial issues like e-service quality,
online shop reputation, and product quality concerns. As a result, online retailers should
work to deliver great e-service quality, establish a reliable brand, and sell items with
outstanding performance. To persuade customers to make purchases on the shopping
sites, businesses must also offer comprehensive information about the goods or
services and design aesthetically appealing websites. Online suppliers can more
successfully lower the TCs by recognizing the antecedent factors impacting consumers'
perceptions of them. Thirdly, in order to better serve customer wants, online marketers
must comprehend how TCs have an impact on this new market's online activity. Other
researches advise businesses to identify the TCs that their consumers perceive before
addressing these expenses in their marketing plan. This suggestion seems especially
pertinent when assessing a novel method of commerce like the Internet. The study
offers a new insight that if e-marketers desire to induce an online purchase, cultivate
customer satisfaction, and nurture loyalty, they should develop marketing strategies to
mitigate the customers' perceived TCs that prevent current online shoppers from
increasing patronage. The model presented suggests that consumer online patronage,
satisfaction, and loyalty can be achieved by reducing TCs of online buying. In other
words, online vendors' understanding of the causes of TCs and their behavioral effects
on costs is a valuable resource that online businesses sometimes underuse but should
use when making strategic choices. The consequences are described below in terms of
recommendations that practitioners can use for online shops.

There is a ton of information for online customers and marketers in research by


Hoque (2013). Hoque has provided advice for both online shoppers and advertisers.
Online marketers will undoubtedly profit if they focus on the elements that affect client
satisfaction with online purchases. Additionally, marketers need to be client-focused. A
marketer may quickly comprehend the actual internet buying environment. A marketer
also learns some information about Internet buyers. A marketer may readily determine
who utilizes internet shopping and what items are offered there most frequently. Which
internet shoppers favor products they don't like? An internet marketer may learn a lot
and customize their website to suit the tastes and preferences of their target audience.
Below are several benefits offered by the online shopping service, and clients may gain
from this knowledge. Online shopping helps individuals save time, which is crucial for
modern consumers because people are sometimes too busy or reluctant to spend much
time shopping. On the other hand, it is claimed that time is money and money is time.
Online shopping is different from conventional shopping in that there are no constraints
or obligations while purchasing things. Customers have a wonderful chance to evaluate
the cost of their goods to that of the competition while purchasing online. Because it is
so simple to compare product costs, nations whose consumers are price-conscious or
who like doing so will utilize the internet or the online marketplace to do their business.
Online purchasing is considerably different from traditional retail in that there is much
more contact and communication between the customer and supplier. Online buying
involves electronic communication, much like e-mail or various social media platforms
like Facebook, Twitter, etc. Customers may readily obtain information from the vendor
during online buying, such as the product description, shipment date, price, and
quantity. Customer satisfaction is a relative concept that is crucial for company success
and that we must thoroughly comprehend.

According to a survey by Kailash (2020), the majority of online customers believe


that they anticipate the following benefits while buying online: simplicity of internet
usage, time savings, flexibility in when and where they purchase, and free product
delivery. The following advice is given to online marketers in order to more adequately
satisfy the expectations of both current and potential online clients:

 Simplicity of Internet Usage. The majority of respondents mostly concur that they
anticipate the internet to be easier to use for online shopping. Due to their
familiarity with keeping track of available online price offers for products,
shoppers with annual family incomes of between two and five lakh rupees are
discovered to shop online for the goods that are offered at appealing discounts
and prices. As a result, they find it easier to navigate the website for browsing,
choosing, ordering, and purchasing goods. It is advised that online marketers
and company owners design their websites so that both current and potential
clients may easily traverse them. For secure online buying, internet marketers
can provide customers with a flow chart or visual representations of the actions
they need to do on their website. Online vendors can provide their contact
information on every page of their website so that customers can get in touch
with them for more information about their products. Online marketers are
advised to employ Search Engine Optimization (SEO), which makes the name of
the website appear among the first few search results when internet users put in
a product name or product feature that is also supplied by the website. Online
marketers and company owners are advised to invite website visitors to rate the
website and utilize monitoring technologies to see what they thought of the
website (Kailash, 2020).
 Time Savings. A sizable majority of respondents concur that having expectations
of the time-saving function in online shopping is the most important. While there
is disagreement among online consumers at the undergraduate, graduate, and
postgraduate levels about whether there is a perceived time-saving element to
their online shopping experience, the majority of postgraduates concur. Online
store operators have offered suggestions for how to make online buying simpler
and less time-consuming for customers of all economic levels and educational
backgrounds. It is advised for website owners to make their websites accessible
in the local language or even only in the official language. Online marketers are
advised to set up technological capabilities so that when clients fill out their
information, the information automatically gets preserved in a safe database of
the website. This will enhance the time-saving function. To make it easier for
online shoppers to get the information quickly, the product and purchase data
that are most likely to be sought should be organized on the website. Online
marketers may make use of data and technology to speed up the loading of their
websites. Online marketers that offer often-used products like groceries and
pulses recommend that customers set up a payment plan wherein monthly or
weekly purchases may be made online and paid for at regular intervals like once
a year or once every six months (Kailash, 2020).
 Flexibility in When and Where They Purchase. The majority of respondents, it
has been shown, are in agreement with the statement that they anticipate
shopping whenever and whenever. Accelerated Mobile Pages (AMP) and
Progressive Web Apps (PWA), which act as a bridge between a regular website
and native apps, are advised for usage by online marketers. The attitude of
online shoppers about the integrity of deliveries of purchased goods is influenced
by yearly family income. The majority of people who shop online disagree with
how the following aspects of internet buying are perceived: receiving the product
as requested and having an undamaged product. The least number of online
buyers agreed that they had any sense or experience of the product safety
element. Online marketers are advised to make preparations for setting up and
maintaining an appropriate database with information on online consumers'
names and contact information, their product purchases, payments, delivery, and
stock levels, as well as continuous updating of these records. Customers of
online retailers may be offered the opportunity to select one of three days and
several delivery times for the delivery of the purchased item to the specified
address. It is advised that online marketers utilize electronic devices whenever
feasible since the information about product orders, payments, and deliveries will
be maintained more accurately and will be simpler to access. Online businesses
may collaborate with suppliers and manufacturers in a variety of industries to
enable quicker and safer product delivery. By working together with local shops,
internet marketers may safeguard the interests of groceries and Kirana store
owners. All internet businesses may register with one system or government
agency for a completely secure system. For shipping, product dispatch, and
delivery, it is advised that online marketers work with reputable logistics
companies with years of experience. These well-established companies have
offices across the country and can offer quality shipping services because they
genuinely care about maintaining the value of their own name and brand. Since
their reputation and brand worth depend on the quality and authenticity of the
items they aim to offer, online marketers are strongly advised to do their due
diligence. It is advised for online business owners to set up procedures so that if
customers receive a damaged or different product and call the firm, the staff
should not put the client on hold for a lengthy amount of time but should instead
swiftly reply to the customer (Kailash, 2020).
 Free Product Delivery. Most of the respondents agreed that they anticipate free
delivery when they purchase online. Online buyers may get their purchases at
their doorstep, which is one of the aspects of online buying that sets it apart from
traditional shopping. Customers can take advantage of promotions offered by
online marketers that include free product delivery. If a consumer signs up for a
year-long membership with the website or online organization of the marketer
selling the customer's product, the marketer can provide free delivery of the
purchased goods. Within a certain range of kilometers from the logistics center or
the shop where the goods is received from the online organization, an online
marketer may provide free delivery of the product. For purchases of goods that
surpass a certain price cap or for purchases of a specific minimum or greater
number of goods, online merchants may offer free delivery (Kailash, 2020).

RELEVANCE OF REVIEWED LITERATURE AND STUDIES TO THE PRESENT


STUDY

The current study, when compared to the studies and literature that have been
evaluated, is pertinent given the contemporary environment since online shopping is
growing in popularity in the age of electronic technology. The concepts of customer
satisfaction, factors that affect customer satisfaction, strategies used by retail
businesses to improve customer satisfaction, the idea of online shopping, the online
marketing mix, the reasons why people shop online and offline, and the effects of online
shopping on the retail industry are the topics covered in the literature review for the
current study. In the present context, the customer satisfaction idea is crucial since it
shows if your target audience approves of what you're doing. The following reasons
make the customer satisfaction idea crucial: it fosters customer loyalty, aids in
measuring team performance, promotes repeat business, raises customer lifetime
value, and facilitates client acquisition. The customer satisfaction idea also lists a few
techniques and advice that may be used to appease customers without fully changing
how company is conducted. The concepts are as follows: get to know your customers
so you can better satisfy them; offer personalized customer service and raise
satisfaction; put yourself in the customer's shoes and demonstrate empathy; and use
adaptable management strategies that have a direct impact on customer satisfaction.
The evaluated literature also addresses topics related to variables influencing consumer
satisfaction. Accessibility, empathy, reaction speed, personalization, convenience,
value, simplicity, quality, affordable pricing, appreciation, loyalty programs, and
community are the twelve main variables that have the greatest impact on consumer
satisfaction. Retail businesses may increase consumer satisfaction in other ways.
Because new firms are always starting up and because customers have total power
over which brand, they choose, techniques to boost customer satisfaction are crucial.
The studied literature discusses the principles of online shopping as well. Through the
use of a web browser or a mobile app, customers can directly purchase products or
services from sellers through the Internet through online shopping. Customers can
locate a product of interest by going to the retailer's website directly or by utilizing a
shopping search engine to look up alternative vendors. Shopping search engines show
the availability and price of the same goods at several e-retailers. By 2020, clients will
be able to purchase online utilizing a variety of computers and gadgets, such as
desktop, laptop, tablet, and smartphone computers. The studied literature also states
the 7ps of online shopping. The 7ps of internet purchasing/online shopping are also
stated in the literature under review. Understanding every component of your marketing
process helps us to build stronger, very functional, and successful enterprises online,
which is an advantage of incorporating an online marketing mix into your business
model. The 7ps of online shopping are product, price, place, promotion, people,
process, and physical evidence. The studied literature also discusses the reasons why
people purchase both online and offline. The influence of internet purchasing on the
retail sector is also included in the literature under review. Knowing how internet sales
affect the retail industry is crucial since they make it more difficult for brick-and-mortar
stores to compete. Purchases from many internet merchants are less expensive since
they don't charge sales tax to their customers. The linked research, meanwhile, focuses
on the ideas of online shopping, customer satisfaction, recent research regarding online
shopping, and recent research on customer satisfaction. Because the current study is
all about the current customer satisfaction with online shopping, all of the subjects of the
studied literature and studies are relevant to it.
CONCEPTUAL FRAMEWORK

ONLINE MARKETING MIX


FEATURES

PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS PHYSICAL


Design List price Channels Advertising EVIDENCE
Individuals on Customer focus
Features Discounts marketing activities Sales/staff
Coverage Sales promotion Business-led
contact
Quality Allowance Individuals on
Assortments Personal selling IT supported experience of
customer contact
Variety Payment period brand
Location Public relations Research and
Recruitment
Brand name Credit terms development Product
Inventory
Culture/image packaging
Services Transportation
Training and skills Customer
Logistics experience
Remuneration
RESEARCH PARADIGM

INPUT
Demographic profile of the
respondents PROCESS OUTPUT
 Age Analysis of data through: Ways to improve the
 Gender online shopping service
 Salary  Survey using the marketing mix
 Position in the questionnaire
 Statistical and Better customer service
company
scientific treatment in online shopping
Customer satisfaction in
online shopping using the
marketing mix
The model shows how the input, process, and output—the three main
components of the research paradigm—relate to one another.

The input relates to the respondents' demographics and their satisfaction with
online purchasing while employing the marketing mix. The outcome will be determined
by using these inputs as variables.

To generate the findings, a survey questionnaire is used, along with statistical


techniques like percentage and mean.

The study's output, or results, include suggestions for how to enhance online
purchasing services through the use of the marketing mix and greater customer
support.

You might also like