Ilkogretim Online - Elementary Education Online, 2020; Vol 19 (Issue 4): pp.

6701-6708
http://ilkogretim-online.org
doi: 10.17051/ilkonline.2020.04.765074

A Study On Customer Satisfaction Towards Online Shopping

In Retail Industry
Dr.V. Dhayalan - Asst. Prof, Department of Management Studies, Sri Sairam Engineering College

R. Chitraa - P.G.Scholar, Department of Management Studies, Sri Sairam Engineering College

N.Lakshmi Narasimhan - General Manager – HR , Brakes India Private Ltd. Chennai

Dr.Maran marimuthu -Professor, University of Technology . Petronas ,Malaysia

V.Manjula – Assistant Professor, Sri Sairam Engineering College, Chennai.

ABSTRACT
Online shopping is the biggest part of customer attraction as well as customer satisfaction. In this
technological world, most of the companies use online shopping for satisfying the customer and for
attracting more customers as well. This research paper is based on the topic of the impact of online
shopping on improvising the customer satisfaction in the retail company. The focus of this research
paper has been to identify the impact of online shopping on the retail business. Apart from this aim,
the research paper also has some other aims such as to determine the customers satisfaction
towards the products as well as services of the retail companies. The research study also aimed at
identifying the impact of online shopping on the improvement of customer satisfaction in the retail
companies. The researcher has used positivism philosophy, descriptive design, deductive research
approach and primary data collection method for conducting the research. From the findings of the
study, it could be evident that online shopping helps the organizations to enhance their business
opportunity as well as it will help the organizations to enable more customer satisfaction in the
organizational context. It has also been evident from the study that online shopping has numerous
effects on business of the organization and as per the analysis, it can be referred that online
shopping helps the organization to grow their business which will enable more financial benefit in
the organizational context.

Keywords: Online Shopping, Customer Satisfaction, Services, Retail Companies, Financial Benefit.

INTRODUCTION
Online shopping is very convenient, and it is one of the biggest parts of any business. This
convenient quality of online shopping makes the customers more comfortable. The customers can
avoid waiting for a long time in the queue due to the facility of online shopping. Online shopping is

6701 | Dr.V. Dhayalan A Study On Customer Satisfaction Towards Online Shopping In

Retail Industry
the process where the customers can purchase their products and the company can attract more
customers. The companies maintain customer satisfaction by seeking the feedback of the
customers, asking some questions to the customers and analyzing the online comments. These all
strategies can be maintained through online. It has been seen that maximum companies have
implemented the strategy of giving a rating according to the quality of the products, or according to
the online services which are provided by the company through their websites. By the ratings of
the customers, the company can evaluate their online performances. Some customers also give
some comments on the company’s websites regarding the products, online performances and many
more.

It is very important to attract more customers to the industry. If any industry attracts more
customers in the industry, then the brand value of the company will be increased. It has been seen
that digital technology imparts a huge impact over the customer attraction and customer
satisfaction as well. Online shopping is the biggest part of customer attraction as well as customer
satisfaction. In this technological world, most of the companies use online shopping for satisfying
the customer and for attracting more customers as well. Online shopping is the main part of
electronic commerce and many customers are guided by this electronic commerce regarding the
way of buying products from the companies.

REVIEW OF LITERATURE

Vijay, Sai. T. &Balaji, M. S. (2009) revealed that Consumers, all over the world, are
increasingly shifting from the crowded stores to the one-click online shopping format. However, in
spite of the convenience offered, online shopping is far from being the most preferred form of
shopping in India.

Sanjeev Kumar and Savita Maan (2013) The Study provides insights into consumers‟
online shopping behaviors and preferences. Moreover, paper also identify the hurdles that
customers‟ face when they want to adopt internet shopping as their main shopping medium.
Present study is a descriptive study based on the detailed review of earlier relevant studies related
to the various concepts of online shopping to explore the concept of online shopping. Findings
reveal that online shopping brings optimum convenience to the consumers. Privacy and security
risk emerges frequently as a reason for being wary about internet shopping.

K. Vaitheesewaran (2013) examined the convenience of online shopping “With product

getting standardized, specifications getting fixed and the concept of service getting eroded, the
post-sale responsibility of the retailer has come down drastically. Hence customers go to stores to
explore the product physically in detail but online at a cheaper rate. Heavy discounts of e-
commerce firms are possible because of their no warehouse model.”

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Retail Industry
 MingyaoHu, Elliot Rabinovich and HanpingHou (2014) while this paper focuses on
online customer pre-purchase perceptions. In an online market, trustworthy online retailers send
signals to separate themselves from retailers who are untrustworthy in the eyes of customers.
However, untrustworthy online retailers can mimic trustworthy online retailers‟ behavior by
sending similar signals without providing services indicated by the signals.

Dr. D. Sudhakar, R. Swarna, Deva Kumari (2016) Customer satisfaction towards online
shopping, a study with reference to Chittoor district. Study was conducted to find the satisfaction
levels of customers of the selected products. In the study it was found that majority respondents
preferred to buy products through the Flipkart website followed by Amazon respondents are
highly satisfied with on time delivery of the product.

OBJECTIVE OF THE STUDY

❖ PRIMARY OBJECTIVE
A study on customer satisfaction towards online shopping in retail industry

❖ SECONDARY OBJECTIVE
⮚ To find out the satisfaction level of the customer for online purchase.
⮚ To know the specific reasons for which customers purchase online shopping.
⮚ To find out the consumer's satisfaction level for services provided by online shopping.
⮚ To analyze the brand value of the company.
⮚ To identify the current trend and requirements of the customer.

RESEARCH METHODOLOGY
The main source of information for this study is based on the data collection. Data collection is both
primary and secondary in method.

PRIMARY DATA
Primary data is known as data collected for the first time through field survey. such data is
collected with a specific set of objectives. Primary data always reveals the cross-section picture of
anything studied. This is needed in research to study the effect or impact any policy.

SECONDARY DATA
Secondary data refers to the information or facts already collected. Such data are collected with
objectives of understanding the past status of any variable data collected and reported by some
sources that are accessed and used for the objectives of the study.

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Retail Industry
SAMPLE SIZE
Due to time and resource constraint the sample size is taken as 103 for the survey from the total
population(infinity) employees.

SAMPLE AREA
It is the area of research, meaning which all your research falls into. Research is highly specific,
mostly it is interdisciplinary and is conducted in teams where each member is proficient in at least
one discipline needed in that research.

STATISTICAL ANALYSIS

CHI SQUARE TEST

H0: There is no significant difference between age and information about the products.

H1: There is a significant difference between age and information about the products.

Finding

H0 is rejected.

Table showing that there is a significant difference between age and information about the
products.

Asymptotic
Significance(2-
Value Df sided)
Pearson Chi-Square 24.729a 6 .001
Likelihood Ratio 29.547 6 .001
Linear-by-Linear 17.408 1 .001
Association
N of Valid Cases 103

Interpretation
Sine calculated value is greater than the table value. We reject H0, therefore an alternative
hypothesis is accepted. There is a significant difference between age and information about the
products.

One way anova

H0: There is no significant difference between gender and online shopping preference.
6704 | Dr.V. Dhayalan A Study On Customer Satisfaction Towards Online Shopping In
Retail Industry
H1: There is a significant difference between gender and online shopping preference.

Table showing that there is a significant difference between gender and online shopping
preference.

Anova

Sum of square Df Mean square f Sig.

Between .158 2 .079 318 .728
groups 24.890 100 249
Within groups 25.049 102
Total

Interpretation
Since the calculated value is greater than table value we reject H0. Therefore, an alternative
hypothesis is accepted. There is a significant difference between gender and online shopping
preference.

FINDINGS

1. A higher percentage of respondents are female and a comparatively lower percentage of

respondents are male.
2. It is found that there is a higher percentage of respondents in age between 18 to 25 and
comparatively lower percentage in 51& above age.
3. There is a higher percentage of respondents who are UG graduates and less (0%) in others.
4. There is a higher percentage of respondent’s income level is 0- 25,000 category and lower
percentage of respondents are 45,000 & above category.
5. A higher percentage of respondents are urban and lower percentage of respondents are rural.
6. A higher percentage of respondents are purchasing the products online and a lower percentage
of respondents are not purchasing the products online.
7. A higher percentage of respondents are satisfied that online shopping provides more facility
than conventional shopping methods and lower percentage of respondents feel very poor.
8. A higher percentage of respondents are mostly using the online facility while purchasing the
products and lower percentage of respondents are not using it.
9. A higher percentage of respondents are satisfied with the information about the product
provided in online shopping and a lower percentage of respondents are not feeling like that.
10. A higher percentage of respondents agree that product comparison among different companies
is possible and a lower percentage of respondents disagree and strongly disagree.

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Retail Industry
11. A higher percentage of respondents are feeling neutral about online shopping safety & secure
and lower percentage of respondents are feeling totally unsafe about it.
12. A higher percentage of respondents agree that quality of product will influence the buyer and
lower percentage of respondents disagree and strongly disagree.
13. A higher percentage of respondents agree that the price of a product will influence the buyer
and lower percentage of respondents disagree and strongly disagree.
14. A higher percentage of respondents agreed that the offer of the product will influence the
buyer and a lower percentage of respondents strongly disagreed.
15. A higher percentage of respondents agreed that recent trends of product will influence the
buyer and lower percentage of respondents disagreed.
16. A higher percentage of respondents are time saving and lower percentage of respondents are
secure transactions.
17. A higher percentage of respondents are different from ordered products and lower percentage
of respondents are others.
18. A higher percentage of respondents agree that they all are satisfied with online shopping and a
lower percentage of respondents strongly disagree with it.
19. A higher percentage of respondents are sometimes feeling that a company is providing the
experience till date and lower percentage of respondents are always feeling that the company
is providing the experience till date.
20. A higher percentage of respondents are mostly brand value and lower percentage of
respondents are never seeing brand value.
21. A higher percentage of respondents are recommending online shopping to others and a lower
percentage of respondents are not recommending online shopping.

SUGGESTIONS
Online shopping always helps the customers to save their valuable time and it also gives the
customers a wide range of product lists. Additionally, they can choose their preferred products by
comparing those products with other company’s products who are the sellers of the same product.
These recommendations are:

• Offers and discounts: The organization must ensure good offers and discounts for their
potential customers because it will help the organization to attract more new customers which will
enable more financial benefit in the organizational context.

• Feedback system: The organizations also need to provide a feedback option to the customers
because it will help the organization to felicitate that the organization is giving value to their
customer's views which will engage more customers.

6706 | Dr.V. Dhayalan A Study On Customer Satisfaction Towards Online Shopping In

Retail Industry
 • Free shipping of the products: The organizations need to provide free shipping for the
products because it will help the organization to attract more customers and the customers can
save their money which will enable more customer loyalty towards the organization.

• Social media marketing: The organization must need to invest their resources to felicitate
social media marketing because nowadays most of the customers collect reviews about a product
from the social media platforms.

• Felicitating awareness program for the uniqueness of the product: Awareness program will
help the organization to differentiate their products from the other companies and it will help the
customers to identify the uniqueness of the product which will influence the buying behavior of
the potential customers.

CONCLUSION
Online shopping is becoming more popular day by day with the increase in the usage of the World
Wide Web known as www. Understanding customer's need for online selling has become a
challenge for marketers. Specially understanding the consumer's attitudes towards online
shopping, making improvement in the factors that influence consumers to shop online and working
on factors that affect consumers to shop online will help marketers to gain the competitive edge
over others. In conclusion, having access to online shopping has truly revolutionized and
influenced our society as a whole. This use of technology has opened new doors and opportunities
that enable for a more convenient lifestyle today.

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Retail Industry