Journal Press India®

Customer Satisfaction and Customer Loyalty in Online Shopping: A Study on University Students of Bhutan

Vol 21 , Issue 2 , July - December 2020 | Pages: 11-22 | Research Paper  

https://doi.org/10.51768/dbr.v21i2.212202002


Author Details ( * ) denotes Corresponding author

1. Shad Ahmad Khan, Assistant Professor, College of Business, University of Buraimi, Al Buraimi, Oman
2. Thoudam Prabha Devi, Assistant Professor, College of Business, University of Buraimi, Al Buraimi, Oman
3. T. Antony A. Ligori, Assistant Professor, Gedu College of Business Studies, Royal University of Bhutan, Bhutan
4. * Muhammad Saleem, Lecturer, College of Business, University of Buraimi, Al Buraimi, Oman (saleem@uob.edu.om)
5.

Purpose: Today with the advancement of e-commerce and online consumer shopping trends the significance of creating and retaining e-loyalty in electronic market places has come into picture in marketing theory and practice. Managing the consumer confidence, satisfaction, loyalty and attitude of ecommerce services is necessary for growth in a long run for a business as the competition in ecommerce is intense; it becomes more important for shopping online. This paper attempts to seek out loyalty and satisfaction of university students of Bhutan in organized ecommerce sites. Considering the factors acceptance of technology and quality of service in online, the study seeks to check the relationship and impact of “e-satisfaction” and “e-loyalty” in the context of online shopping among university students of Bhutan.

Design/Methodology/Approach: This study uses a descriptive statistics, reliability and correlation analysis through SPSS and structural equation modeling (SEM) through AMOS as an analytical tool to explore the demographic frequencies and to explore how the students among university of Bhutan are influence by external factors that is technology acceptance factors and service qualities.

Findings: The research result of this study shows that the technology acceptance has a direct and positive effect on customer satisfaction and customer loyalty. Further, the study reveals that quality of service in online shopping has a direct and positive influence on customer e-satisfaction and e-loyalty. When the influence of customer e-satisfaction was checked on customer e-loyalty, the same was found to positive and direct. With the help of SEM, it was found out that quality of service online has more influence on customer satisfaction as compared to technology acceptance factors and this will ultimately lead to customer loyalty.

Research Limitation/Implications: This study is mainly focused on the online purchase behavior among the university students of Royal University of Bhutan, thus the results of this study cannot be generalized to the whole of the nation or demography that not related to the university students like higher income groups, higher age group, and people with negligible exposure to technology etc. Further, the psychological factors are expected to change with the penetration and usage of technology and subsequently change completely with advent of new technology.

Originality/Value: This paper is an original paper based on the primary data collected from the students of Royal University of Bhutan.

Keywords

Online Shopping, TAM factors, Online Service Quality, Customer Loyalty, Customer Satisfaction, University Students.

  1. Amin, M. (2014). User satisfaction with mobile websites: the impact of perceived usefulness(PU), perceived ease of use (PEOU) and trust.
  2. Astuti, E. T. (2013, January). Statistical modeling for mortality data using local generalized poisson regression model. Retrieved from researchgate.
  3. Bentler, P. M. (1990). Comparative fit indexes in structural models. Psychological bulletin, 107(2), 238.
  4. Bentler, P.M., & Bonnet, D.G.(1980). Significance test and goodness of fit in the analysis of covariance structures. Psychological bulleting. 88, 586-606.
  5. Bollen, K. A., & Pearl, J. (2013). Eight myths about causality and structural equation models. In Handbook of causal analysis for social research (pp 301-328). Springer Netherlands.
  6. Browne, M. W., & Cudeck, R. (1993). Alternative ways of assessing model fit. In Bollen, K.A. & Long, J.S. (Eds.). Testing structural equations models. Newbury Park, CA: Sage.
  7. Choezom, P. (2017). People increasingly cashing in on online shopping (P. Selden, Interviewer).
  8. Cronbach, L. J. (1951). Coefficient Alpha and the internal structure of tests. Psychometrica, 16(3), 297-334.
  9. Davis, F. D. (1989). “Perceived Usefulness, perceived ease of use, and user acceptance of information technology”, MIS Quarterly, 13(3), 319-340.
  10. Dey, A. (2014, 1). Retrieved from Online shopping attitude among the youth: A study on university students.
  11. Farber, M. (2016, june 8). Fortune. Retrieved from Consumers are now doing most their shopping online, Retrieved from http://fortune.com/2016/06/08/online-shopping-increases/, Accessed on May 4, 2019.
  12. Flavian, C., Gurrea, R., & Guinaliu, M. (2006). The role played by perceived usability, satisfaction and consumer trust on website loyalty. In C. Flavian, R. Gurrea, & M. Guinaliu, Information and Management, 43(1), 1-14.
  13. Grace, T. R., & Sun, C. C. (2009). Factor influencing satisfaction and loyalty in online shopping . Emeraldinsight , 458-475.
  14. Hair, J. F., Bush R. & Ortinau, D. (2006). Marketing Research. McGraw-Hill, Boston.
  15. Hair, J. F., Black, W.C., Babin, B. J., & Anderson, R. E. (2010) Multivariate Data Analysis, 7th ed., Prentice Hall, Upper Saddle River, NJ.
  16. Hair, J. F., Hult, G. T. M., Ringle, C. M, & Sarstedt, M. (2017) A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), 2nd ed., SAGE, Thousand Oaks, CA.
  17. Henseler, J., Ringle, C. M, & Sarstedt, M. (2015) ‘A new criterion for assessing discriminant validity in variance-based structural equation modeling’. Journal of the Academy of Marketing Science, 43(1), 115-135.
  18. Idrisu, A. (2015). Assessing the impact of service quality on customer loyalty: A case study of the cellular industry of Ghana. British journal of Marketing Studies, 15-30.
  19. Kemp, S. (2018, January 30). Digital in2018:world’s internet user pass the 4 billion mark. Retrieved from we are social http://wearesocial.com>2018/01, Accessed on May 4, 2019.
  20. Krejcie, R. V., & Morgan, D. W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30, 607-610.
  21. Lai, C. H., Kuo, N. T., Chang, K. C., & Cheng, Y. S. (2012). How service quality affect customer loyalty in the travel agecy : The effects of customer satisfication, service recovery and percieved value. Asia Pacific Journal of Tourism Research , 803-822.
  22. Lhamo, P. (2018). Kuensel Online. Retrieved from Bhutan’s internet addiction among the youth, Retrieved from www.kuenselonline.com/Bhutan, Accessed on May 4, 2019.
  23. Meuleneres, L. B., Lee, A. H., Binns, C. W. & Lower, A (2003). Quality of life for adolescents: Assessing measurement properties using structural equation modelling. Quality of Life Research, 12(3), 283-290.
  24. Poll. (2017). Onliine business. Retrieved from https://www.futurelearn.com>steps, Accessed on May 4, 2019.
  25. Royal University of Bhutan. (2017). Annual Report, 2017. Thimphu
  26. Seldon, P. (2017). Business Bhutan. Retrieved from People increasingly cashing in on online shopping, Retrieved from https://www.businessbhutan.bt/2017/10/25/people-increasingly-cashing-in- on-online-shopping/, Accessed on May 4, 2019.
  27. Sharma, G. (2017). Service quality, satisfaction and loyalty in online marketing: An emirical investigation. Global Journals of Management and Business Research.
  28. Shih, H. P. (2004). An empirical study on predicting user acceptance of e-shopping on the web. Science Direct, 351-368.
  29. Srinivasan, A. D. (2003). E-Satisfaction and E-loyalty: a contigency Framework. Retrieved from https://www.researchgate.net/publication/227605244_E-satisfaction_and_E-loyalty_A_Contigency_Framework, Accessed on May 4, 2019.
  30. Tshomo, D. (2015). Virtual shopping goes viral among Bhutanese. Kuensel. Retrieved from http://www.kuenselonline.com/virtual-shopping-goes-viral-among-bhutanese/, Accessed on May 4, 2019.
  31. Verhagen, T. & Dolem, W. (2009). Online purchase intentions: a multi-channel store image perspectives. Information and Managment , 46, 77-82.
  32. Zainudin, Awang (2015). SEM Made Simple. MPWS Publisher.
Abstract Views: 10
PDF Views: 1361

Advanced Search

News/Events

Institute of Managem...

Deccan Education Society Institute of Management Development and Re...

S.B. Patil Institute...

Pimpri Chinchwad Education Trust's S.B. Patil Institute of Mana...

D. Y. Patil IMCAM, A...

D. Y. Patil Institute of Master of Computer Applications & Managem...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management International Conference on ...

Department of Commer...

Department of Commerce, Faculty of Commerce & Business, University...

Birla Institute of M...

Birla Institute of Management Technology (BIMTECH) 3rd Pritam Singh M...

OP Jindal University...

OP Jindal University, India 4th International Conference on  ...

Department of MBA, N...

Department of MBA, Narayana Engineering College Nellore International...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management Conference Proceedings,...

Online Proceedings R...

Conference Proceedings, March 2023 ISBN: 978-81-956810-6-8 ...

By continuing to use this website, you consent to the use of cookies in accordance with our Cookie Policy.