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THE ROLE OF E-COMMERCE
IN IMPROVING CUSTOMER SATISFACTION (A CASE STUDY OF JUMIA)
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
The use of e-commerce websites can lead to accepting and
satisfying intentions and then influence customer satisfaction behavior towards
an e-commerce websiteCustomer satisfaction is how satisfied a customer is with
the supplied product/service. It is closely related to interpersonal trust
[Geyskens, Steenkamp, Scheer, and Kumar 1996].
[Zins 2001], stated , it is expected that a higher level of
customer satisfaction will lead to greater loyalty. However, the impact of
satisfaction on customer loyalty is rather complex. Fisher [2001] believes that
customer satisfaction accounts for only part of why people change product or
service providers. Other studies have shown that customer satisfaction is a
leading factor in determining loyalty [Anderson and Lehmann 1994]. Anderson and
Srinivasan [2003] found that both trust and perceived value, as developed by
the company, significantly accentuate the impact of satisfaction on e-Journal
of Electronic Commerce Research, VOL 12, NO 1, 2011 Page 81commerce loyalty. In
a more recent study by Cyr [2008] it was found that website satisfaction is
strongly related to loyalty in three countries: Canada, Germany, and China.
Generally, loyalty has been defined as the repeat purchasing
frequency or the relative volume of same-brand purchasing. Oliver [1997]
defines customer loyalty as a deeply held commitment to re-buy or re-patronize
a preferred product/service consistently in the future, thereby causing
repetitive same brand or same brand set purchasing, despite situational
influences and marketing efforts having the potential to cause switching
behavior. In e-commerce, loyal customers are considered extremely valuable.
Today, e-retailers are seeking information on how to build customer loyalty.
Loyal customers not only require more information themselves, but they serve as
an information source for other customers. Building customer loyalty is one of
the biggest challenges for business to customer
e-commerce. Several antecedents of customer loyalty have been proposed.
Customer satisfaction and trust have been brought forward as a precondition for
patronage behavior [Pavlou 2003] and the development of long-term customer
relationships [Papadopoulou, Andreou, Kanellis, and Martakos 2001].
The study by Kassim and Ismail [2009] found that services
quality and vendor’s assurance to online customers, contribute to building
trust and satisfaction thereby improving customer loyalty. These study shall
therefore determine the role of e-commerce in improving customer service.
1.2 STATEMENT OF
THE PROBLEM
E-commerce constitute a significant business process of
transacting modern business services as
vast population of people are hooked to online services through the internet
and various websites.
However, creating customer satisfaction is pivotal to enhance
customer loyalty and repeat patronage which is dependent on a number of
factors.
The problem confronting this research is to investigate the
role of e-commerce in improving customer satisfaction. With a case study of
JUMAI
1.3 RESEARCH
QUESTION
What is the nature of e-commerce?
What is customer satisfaction and what factors determine
customer satisfaction in e-commerce?
What is the role of e-commerce In improving customer
satisfaction?
How does JUMAI e-commerce improve customer satisfaction?
1.4 OBJECTIVE OF
THE STUDY
To appraise the nature of e- commerce business services
To appraise customer satisfaction and factors determining
customer satisfaction
To determine the role of e-commerce in improving customer
satisfaction
To determine the JUMAI e-commerce services in improving
customer satisfaction
1.5 SIGNIFICANCE
OF THE STUDY
1 The study
shall provide a conceptual and
theoretical appraisal of the nature of
e- commerce
2 The study
shall determine the role of e-commerce in improving customer satisfaction
3 The study
shall provide information on e-commerce to organizations, IT professionals, and
Business managers
1.6 STATEMENT
OF HYPOTHESIS
1 H0 E-commerce product/service of JUMAI
does not have significant impact on customer satisfaction
H1 E-commerce
product/service of JUMAI have significant impact on customer satisfaction
2 H0 E-commerce security feature of JUMAI does
not have significant impact on
customer satisfaction
H1
E-commerce security feature of
JUMAI have significant impact on customer satisfaction
3 H0 E-commerce user interface of JUMAI does not have significant impact on customer satisfaction
HI E-commerce
user interface of JUMAI have significant impact on customer satisfaction
1.7 SCOPE OF THE
STUDY
The study focuses on
the role of e-commerce in improving customer service. It provides a
conceptual and theoretical appraisal of the nature of e-commerce and the
factors which determine customer satisfaction in e-commerce
1.8 DEFINITION OF
TERMS
E-COMMERCE IS DEFINED
E-commerce is a short
term for electronic commerce, It
consist of trading in products or
services using computer networks, such as the Internet. Electronic commerce
draws on technologies such as mobile commerce, electronic funds transfer,
supply chain management, Internet marketing, online transaction processing,
electronic data interchange (EDI), inventory management systems, and automated
data collection systems. Modern electronic commerce typically uses the World
Wide Web for at least one part of the transaction's life cycle, although it may
also use other technologies such as e-mail.
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