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Team Concept Crew - Id - 17251012,28,34,44,50,66,96 - Sec-B
Team Concept Crew - Id - 17251012,28,34,44,50,66,96 - Sec-B
Prepared By
Session- 2016-17
Supervised By
Assistant Professor
Department of Marketing
Dhaka University
June 2, 2020
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LETTER OF TRANSMITTAL
June 2, 2020
To
Assistant Professor
Department of Marketing
Faculty of Business Studies
University of Dhaka
Dear Sir,
We are submitting our term paper titled “An Analysis of Factors Affecting on Online Shopping
Behavior of Consumers in Dhaka City” as partial fulfillment of the Marketing Research (4101)
course requirement. The report has been prepared under your authorization and direct supervision,
with the purpose of fulfilling the course requirement. No part of this report shall be reproduced for
use in any other form of publication in future without your written permission. We appreciate the
opportunity to prepare a research paper that you have given us, which has been a unique learning
experience and the knowledge we have acquired will be of great importance to us, both for our
future academic purposes and professional lives.
Sincerely,
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DECLARATION
The research work “An Analysis of Factors Affecting on Online Shopping Behavior of Consumers
in Dhaka City” is hereby stated to have been performed by under the guidance of Md. Ashraf
Harun, Assistant Professor, Department of Marketing, University of Dhaka. This term paper is the
outcome of our own hard work and noting has done with collaboration without the indicated tasks
in the report.
Session-2016-17
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ACKNOWLEDGEMENT
We would like to express our earnest thanks and bottomless gratitude to our honorable faculty,
Md. Ashraf Harun, Assistant Professor, Department of Marketing, University of Dhaka for his
generous supervision to materialize this work. It was not imaginable to complete this writing
without his valuable knowledge sharing, inspiration and proper guidance. We express our
profound gratitude toward him.
We would also like to thank all of the participant of the questionnaire survey. It would not be
possible to complete this task without their input. Special thanks them to trust us with their valuable
information.
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I recommend this term paper has been prepared under my supervision by
Session-2016-17
Titled
Be accepted in partial fulfillment of the requirements for the course Marketing Research under
the Faculty of Business Studies (FBS), Bangladesh University of Professionals.
______________________
Faculty
Assistant Professor
Department of Marketing
Faculty of Business Studies
University of Dhaka
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Table of Contents
No Topic Page Number
Chapter 1- Introduction
1.1 Introduction 01
1.2 Background of the Study 02
1.3 Significance of the Study 03
1.4 Research Objective 03
1.5 Structure of the study 04
1.6 Scope of the Study 04
Chapter 2- Literature Review
2.1 Literature Review 05
Chapter 3: Research Design, Methodology and Hypothesis
3.1 Research Design 09
3.2 Primary Research Strategy 09
3.3 Secondary Research Strategy 10
3.4 Hypothesis and Conceptual Frame Work 10
Chapter 4: Analysis and Findings
4.1 Demographic Analysis 12
4.2 Frequency Analysis of Service Quality Dimensions 12
4.3 SPSS Analysis and Findings 15
Chapter 5: Implications of Key Findings
5.1 Theoretical implications 20
5.2 Managerial implications 20
Chapter 6: Conclusions
6.1 Introduction 22
6.2 Limitations 22
6.3 Proposed further research 23
Chapter 7: References
7.1 References 24
Chapter 8: Appendix
8.1 Sample Questionnaires 26
8.2 SPSS Output 33
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List of Tables
No Table Name Page Number
2.1 Five broad dimensions of service quality 06
2.2 Elements of Service quality dimensions 07
4.1 Frequency Analysis of Tangibility and consumer satisfaction based 12
on their online shopping behavior
4.2 Frequency Analysis of Reliability and consumer satisfaction based 13
on their online shopping behavior
4.3 Frequency Analysis of Responsiveness and consumer satisfaction 13
based on their online shopping behavior
4.4 Frequency Analysis of Assurance and consumer satisfaction based 14
on their online shopping behavior
4.5 Frequency Analysis of Empathy and consumer satisfaction based 14
on their online shopping behavior
4.6 Customer Satisfaction 15
4.7 Summary of Cronbach’s Alpha Reliability Test 15
4.8 Summary of Pearson Product-Moment Correlation Coefficients 16
Test
4.9 Summary of Regression Model 16
4.10 Model Summary 17
4.11 ANNOVA 18
4.12 Regression coefficients 18
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Executive Summary
Online shopping is booming in Bangladesh day by day. Because of having a very busy life people
are more interested in online shopping then the regular one. The number of sales and revenue in
this sector is very much attractive. Besides most of the companies now-a-days wants to sell their
product through online. But the customer’s behavior in online shopping is quite different from the
traditional ones and providing all the potential factors affecting this behavior is quite impossible
but we can identify some major factors that can help the seller to increase their online sells and
gain customer satisfaction.
The objective of this report is to find out factors among the five service quality dimensions which
are creating more impact on customer buying behavior as well as has significant impact on
customer satisfaction for online shopping within the customers of Dhaka city.
As this report is generated by collecting information through Google form, most of the respondents
were students and young generation and the number of respondents were 100 and all of them were
from Dhaka city. We used SPSS software to measure and find out the relevance between customer
satisfaction and service quality dimensions by performing multiple analysis like - Cronbach’s
Alpha reliability test, Pearson Product-Moment correlation coefficients test, Regression model and
came to the conclusions based on the findings of this analysis.
The analysis result shows that there is a positive relationship between service quality dimensions
and customer satisfaction. Also we find out that among the five service quality dimension
Reliability is playing a significant role in affecting the overall customer satisfaction. The other
four dimension Tangibility, Assurance, Responsiveness and Empathy doesn’t have that much
impact or we can say not significant enough to affect the overall customer satisfaction for online
shopping among the customers of Dhaka city.
Besides that some factors affects online shopping behavior individually for example- Free return
shipment, after sales service, accurate product delivery etc. So online sellers should not only focus
on the major factors but also they need to consider other small factors equally to get highest
customer satisfaction.
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Chapter 1- Introduction
1.1 Introduction
In the business to consumer (B2C) e-commerce cycle activity, consumers use internet for many
reasons and purposes such as: Searching for product features, prices or reviews, selecting products
and services through internet, placing the order, making payments, or any other means which is
then followed by delivery of the required products through internet, or other means and last is sales
service through internet or other mean (Sinha, 2010). Besides internet has become a global market
for all the consumers around the world and with the revolution of E-commerce consumers can
purchase any product from anywhere. Moreover now-a-days most of the companies are trying to
sell their product through E-retailer, as most of the consumers find shopping online convenient in
terms of time as well as variety. So for past few decades marketers are trying to study the behavior
of the online consumers as E-commerce now plays a vital role in business for consumer selling.
Online shopping behavior (also called online buying behavior and Internet shopping/buying
behavior) refers to the process of purchasing products or services via the internet. The process
consists of five steps similar to those associated with traditional shopping behavior (Liang and Lai,
2000). Online shopping attitude refers to consumers’ psychological state in terms of making
purchases on the internet (Li and Zang, 2002). In this process first the consumers identify their
needs and search for their required product or service in internet and after getting a particular
source they make an order and also pays via online or cash on delivery, it also involves the after
sales service if required. So in an online business there is no physical store rather than the products
are described through photos, videos and they might also provide a link for extra information or
consumer can also communicate them through massages or phone. So as Bangladesh is a
developing country, it is also evolving in online shopping business and making their consumers
life easier. For example Daraz, Rokomari, Ajkerdeal and bagdoom are some of the top online
shopping business established in Bangladesh in recent years. As most of the consumer of our
country doesn’t have much time to go to store, so they frequently purchase their products online.
As online provides those benefits of sitting in the home or in their work place and shop their
necessary products and collect it from anywhere they want so they are becoming dependent on
them also. That’s why it is very important to understand the factors which influence these
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customers to purchase from the online shops so the marketers can work on them and attract more
customers and increase their online sells.
So through this study we can identify the factors what influence the consumers to purchase form
online and also how they can get highest customer satisfaction
There are various studies that have used many types of theories to explain that online shopping
behavior is affected by many factors but providing a complete package of potential factors in one
research model is quite impossible. All the studies are mainly focused on major factors affecting
online consumer behavior and internet is one of the. The invention of the Internet has created a
paradigm shift of the traditional way people shop. A consumer is no longer bound to opening times
or specific locations; consumers can become active at virtually any time and place and purchase
products or services. Besides, the Internet is a relatively new medium for communication and
information exchange that has become present in our everyday life. The number of Internet users
is constantly increasing which also signifies that online purchasing is increasing (Joines et al, 2003)
. Internet users have increased through last decade in a large number. People are being dependent
on internet in every sphere of life. This also influenced people for online shopping. Around this
fact a huge market has grown through last decade and opened a new opportunity for the business
people. Cell bazar first introduced online shopping in 2006 in Bangladesh. Now Daraz, a company
established in 2104 is the market leader with 40% market share. Shebaxyz, Handy mama,
Bikroy.com, Pickaboo are some leading e-commerce sites. Around 25000 SMEs are involved
directly or indirectly in e-commerce (The Financial Express, 2017)
In Asia Pacific 71% of APAC consumers making online purchase. Bangladeshi e-commerce
market was around 110-115 million USD in 2017. And e-commerce market grew about 70% from
2016. Moreover current population of Bangladesh is around 165 million and BTRC stated in 2016
that 62.004 million people are internet subscriber. E- CAB leader said that ecommerce market is
350 million USD and 50,000 deliveries are being done every day. According to the study of
Kaymu.com the percentages of online shopping in Dhaka, Chittagong and Gazipur are 35%, 29%
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and 15% respectively. Goldman-Sachs stated that in 2020 Bangladesh e-commerce will surge 20
billion USD.
In this world there are millions of people using internet and online platforms for their various
purposes, each of them are valuable to the companies providing online services or running online
business. To be in this online selling competition with the ongoing development of the technology,
companies always try to search for clues that might help them to understand the consumers mind
or increase their selling. As there are lots of potential customer it’s very important to understand
what their customer wants and what their needs are. The significance of analyzing the factors
affecting the online shopping behavior of the consumers in the Dhaka city is vital. As internet is a
new way for the retailers to sell their products it is crucial for them to learn what factors are going
to influence them to buy online. The retailers might know about consumer’s traditional behavior
but they don’t know how to sell online as online consumer’s behavior is diverse. The sellers need
to understand what process online consumers go through to make a purchase online, which factors
influence them, attract them and help them. So this study will help them to understand those factors
and by following them they can earn highest consumers satisfaction and also increase their online
selling.
1.4.1 General Objective: The general objective of this research is to find out consumer online
shopping pattern and the factors which makes them more attracted towards online shopping. With
advancement of technology, the world has come to the palm of people through online. And this is
what is basically working in the online selling business as well.
To identify key factors influencing consumers online shopping purchase behavior in Dhaka
city.
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To identify how consumers perceive website factors and website elements and weather this
perception affects their buying behavior or not.
To recommend the factors that has significant impact on consumer buying behavior.
This study is basically based on the five service quality dimension of the SERVQUAL model. First
we identified the factors that may have impact on consumer’s behavior for online shopping. Then
we arranged those factors within the five service quality dimensions (tangibility, reliability,
assurance, responsiveness, empathy). We established a questionnaire based on those factors and
collected data through online. Convenient non-probability sampling method was adopted in this
study to acquire data from respondents in Dhaka city. After collecting the data we used SPSS
software for multiple regression analysis such as Cronbach’s Alpha reliability test, Pearson
Product-Moment correlation coefficients test and Regression model to identify various
relationship with the factors and with the overall customer satisfaction.
In this study our aim is to understand the essential factors that have major impacts on buying
behavior of the online consumers. We all know that online shopping is an emerging concept in our
country. As Bangladesh is developing day by day and also advancing in the race of technology,
people are becoming highly dependent on it. Besides most people now search for options that can
save their time. Through this study, sellers will be able to sell their products online more effectively
as this study will help them to understand those factors that influence a customer to make online
purchase. In the last decade a huge growth has occurred in online sector and new business
opportunities are opening for the business people so if they know what factors they need to focus
on for targeting, attracting and selling to their consumers, they can run their business smoothly.
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Chapter 2- Literature Review
Online shopping indicates electronic commerce to buy products or services directly from the seller
through the internet. Now-a- day’s people can buy anything through internet starting from grocery
items to flight tickets, people can buy it through internet. This clicks and Order business model
has replaced the traditional Brick and Mortar business model. More people than before are using
the web to shop for a wide variety of items, from house to shoes to airplane tickets. Now people
have variety range of options, so they can choose it according to their preference. Online shopping
has unique characteristics. In 2014 Huseynov and Yıldırım emphasized that the lack of physical
interaction tends to be the critical impediment in online retail sales followed by the privacy of
individual information and security of financial transactions over the internet (Demangeot and
Brodrick, 2007) also revealed that perceived ease of use does not affect the behavioral pattern in
this case rather influenced by security and privacy issues. No relationship is built between the
customer and the online shop in the presence of perceived online risk even if a customer spent
hours on the Internet (Zuroni et al., 2012)
There are some prime factors what influence the customer’s online buying behavior, which
basically influence their preference and choices. There is a proposed model of attitude, behavior,
and shopping intention towards Internet shopping in general (Jarvenpaa and Todd, 1997). The
design includes several indicators classified into four broad categories like product value, quality
services offered through the website, the shopping experience, and the risk perception of the online
shopping (Cheung et al., 2005)studied categories of variables, which drive online shopping
activity. In their study, they divided the features into three broad categories. Perceived
characteristics of the web sale channel are the first one which includes risk, online shopping
experiences, advantage, service quality and trust. The second category is a website and product
features which are risk reduction measures, site features, and product characteristics and the last
group is consumer characteristics. Besides various types of features, demographic variables,
consumer shopping orientations, consumer innovativeness and psychological variables, computer,
internet knowledge, and usages drives consumer characteristics. Consumer attitudes toward online
shopping usually been determined by two factors; one is trust and another is perceived benefits
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(Hoque et al., 1999). In Malaysia, information quality and purchase quality linked with the post-
purchase quality are statistically significant in the case of customer satisfaction (Vegiayan et al.,
2013).
Based on the above definitions we can come to a conclusion that- service quality dimension
determines the difference between the service performance they are getting and their expected
service.
In their research, Zeithaml, Parasuraman and Berry determines five dimensions are used by the
customers when they evaluate a service quality (Zeithaml, 1996). They named their survey
instrument as SERVQUAL. The dimensions are given below:
Dimension Definition
Tangibility Appearance of physical facilities, equipment, personnel and written
materials.
Reliability Ability to perform the promised service dependably and accurately.
Responsiveness Willingness to help customers and provide prompt service.
Assurance Employees’ knowledge and courtesy and their ability to inspire trust and
confidence.
Empathy Caring, easy access, good communication, customer understanding and
individualized attention given to customers.
Source: Adapted from Zeithaml et al. (1990)
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To conduct this survey we took different number of elements for different dimension. The elements
we took for each dimension are given below:
Dimension Elements
This study is consist of convenience sample of 100 people from Dhaka. A total of 29 question was
included in the questionnaire which was developed by us. The sample compromised 46 male and
54 female respondents and everyone lives in Dhaka also they do online shopping so the complete
questionnaires remained 100, which representing the response rate of 100%. The questions were
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selected to fulfill the objectives of the current study. The data collected from the respondents was
analysed by using SPSS software and multiple analysis were performed. The conclusions were
drawn based on the outcomes of the analysis.
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Chapter 3: Research Design, Methodology and Hypothesis
We used Service Quality Dimensions to test the hypothesis we have set and solve the pre-defined
problem by answering the raised questions. We collected the data through online questionnaire
because of the current pandemic situation where it is assumed that the questionnaire reflects the
assumptions which are developed by us and serves our research purpose accurately.
We started collecting data by distributing the questionnaire to our targeted population who lives
in Dhaka and do online shopping. The whole data collection process tooks near around 20 days
because we checked every respondent’s forms personally to maintain the accuracy of data. We
took the response of 120 people and from there we uses 100 response as our survey data. After
gathering all the data we put the our identified factors in the service quality dimensions and used
SPSS to analyze the data and come to a conclusion
3.2.1 Research Method: We used quantitative research method in our report because in
quantitative approach it is easy to reach a higher sample size and we can collect the data easily and
quickly. Also in quantitative approach the data collection can be done anonymously that is why
respondents feel more comfortable. Besides that quantitative research also can focus on facts or a
series of information. (Miller, 2020)
3.2.2 Sampling Design: Convenient non-probability sampling method has been adopted in this
study to acquire data from respondents in Dhaka city where about 50% of e-commerce customers
reside (Kaymu, 2020) in Bangladesh. A convenient sampling method is easy to implement and
cost-effective and more common in IS research that gets a higher response rate (Uchenna Cyril
Eze, 2011). We want to target 100 respondents who belong to different age group, student, service
holder and business as we have seen the range of sample size was 120-150 in different studies
regarding consumer behavior on online shopping.
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3.2.3 Questionnaire design and Pre-testing: The study will be conducted based on two sources
of information: primary and secondary sources. For primary sources we have designed a
questionnaire by following all the necessary steps which are- Preliminary Decisions, Question
Content, Response Format, Question Wording, Question Sequence, Physical characteristics, Pre-
test, Revise and doing the final draft. At first, some general information regarding customers is
asked in a questionnaire like name, age, gender, etc. The next part of the questionnaire is designed
on a Likert Scale (Strongly Agree = 5, Agree = 4, Neutral = 3, Disagree = 2 and Strongly Disagree
= 1) where consumers will be asked to put a tick mark on several statements. The statements will
be regarding the factors that are influencing them to purchase online. The questionnaire will be
used to collect all the primary sources of data. After preparing the question we have pretested it by
10 people as a respondent.
3.2.3 Field Work: Because of current pandemic situation we could not do any field work. All the
necessary data were collected in online.
Secondary data was collected from different sources, for example-Websites, articles, books etc.
The main objective of collecting secondary data was to get the overview of online shopping
behavior of the people living in Dhaka city
The hypothesis and conceptual framework developed for this study is given below:
H1: There is a significant correlation between tangibility and consumer satisfaction based on their
online shopping behavior in Dhaka city.
H2: There is a significant correlation between reliability and consumer satisfaction based on their
online shopping behavior in Dhaka city.
H3: There is a significant correlation between responsiveness and consumer satisfaction based on
their online shopping behavior in Dhaka city.
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H4: There is a significant correlation between assurance and consumer satisfaction based on their
online shopping behavior in Dhaka city.
H5: There is a significant correlation between empathy and consumer satisfaction based on their
online shopping behavior in Dhaka city.
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Chapter 4: Analysis and Findings
In our demographic analysis out of 100 respondents there were 46% males and 54% females. Out
of 100 respondents 72% were aged between 16-23, 24% are aged between 24-31 and which means
most of our respondents were students also young aged and rest of the 4% were aged between 32-
39 doing various kinds of job. We also ask for their personal preference regarding online shopping
or offline shopping and 68% people said that they prefer online shopping and 32% people said that
they prefer offline shopping. Among the respondents 62% people had the experience of online
shopping within 3 months and 23% people had the experience within 6 months and the rest of the
15% people had the experience within one year.
Table 4.1: Frequency Analysis of Tangibility and consumer satisfaction based on their
online shopping behavior
Tangibility is the first independent variable of this study. The frequency showed in Table above
reflects the total percentage of agreed and strongly agreed responses. The entries shows that 38
(38%) people agreed that online shopping enables a broader selection of product choice, 69 (69%)
people agreed that online shopping is compatible with their lifestyle, 46 (46%) people agreed that
cancelling orders is difficult in online shopping and 48 (48%) people agreed that they will not
purchase online without a money-back guarantee.
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Table 4.2: Frequency Analysis of Reliability and consumer satisfaction based on their
online shopping behavior
The second independent variable for this study is reliability (Table ). The findings show that 49
(49%) of the respondents agreed that online shopping is convenient and 67(67%) agreed that online
shopping has no time restriction to decide or choice. A total of 32 (32%) of the respondents further
agreed that transaction details or personal information may be compromised or shared with third
party and it affects their online shopping decision and 66 (66%) respondent agreed that the amount
of shipping charge affects their online shopping behavior.
Table 4.3: Frequency Analysis of Responsiveness and consumer satisfaction based on their
online shopping behavior
Responsiveness is the third dimension of the service quality dimension. Here from the above table
we can see that near around 48 (48%) people agreed that online shopping saves their time, 50
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(50%) people agreed that online shopping can provide detailed product information, 75 (75%)
people agreed that free return shipment service availability is important for them in online
shopping and 49 (49%) people agreed that returning product is difficult in online shopping
Table 4.4: Frequency Analysis of Assurance and consumer satisfaction based on their
online shopping behavior
Assurance is the fourth independent variable. Further findings of the research indicated that 57
(57%) of the respondents agreed that user and expert reviews have an impact on their online
shopping, 53 (53%) respondents agreed that online shopping encourages them as they can pre-
order and get rare or unique products easily and 37 (37%) respondent agreed that friend's and
family's opinion is important when they shop online.
Table 4.5: Frequency Analysis of Empathy and consumer satisfaction based on their online
shopping behavior
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The last independent variable for our study is Empathy. According to the findings 68 (68%)
respondent agreed that in online shopping making price comparison easy, 43 (43%) respondent
agreed that online shopping has no embarrassment if they don't buy, 51 (51%) respondent agreed
that online shopping procedure is difficult, 36 (36%) respondent agreed that it is hard to judge the
quality of the merchandise and product over the internet and 59 (59%) respondent agreed that good
after-sales service affects their online shopping buying behavior.
The final question was whether the respondent are satisfied with their current online shopping
experience or not and out of 100 respondent 60 (60%) agreed that they are overall satisfied with
their experience till now.
Tangibility 4 .639
Reliability 5 .718
Responsiveness 4 .821
Assurance 3 .378
Empathy 5 .713
First we conducted Cronbach’s Alpha Reliability Test to measure the internal consistency of
customer’s satisfaction against the service quality dimensions- tangibility, reliability,
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responsiveness, assurance and empathy with customer’s satisfaction for online shopping. Based
on the Table above, responsiveness scored the highest value among the variables with α = 0.821,
followed by reliability with α = 0.718, empathy with α = 0.713, tangibility with α = 0.639 and
assurance with α = 0.378. These show that all the variables are reliable and consistent for further
analysis and responsiveness has the highest internal consistency
After that we conducted the correlation coefficient test which gave us the measurement of the
linear relationship between independent variables (tangibility, reliability, assurance,
responsiveness, empathy) and the customer satisfaction for online shopping. Above table is the
summary of Pearson Product-Moment Correlation Coefficients Test that shows us that all the
independent variables have positive correlation with the dependent variable. Three of the
independent variables have high correlation and they are reliability (r=0.668), empathy(r=.623)
and responsiveness (r = 0.595) with customer satisfaction for online shopping but tangibility (r =
0.540) have a moderate correlation and assurance (r=.296) have low correlation with customer
satisfaction.
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In the above table we have conducted the multiple regression to determine the contribution of each
independent variables and also it helps to identify how well the regression model fits the overall
data. As we know that R square is the proportion variance that can be predicted from the
independent variables so based on the above regression model, it shows the value of R square is
.481 that means 48.1% variance of the customer satisfaction towards online shopping can be
predicted from the independent variables. That means all the factors we have included in the
independent variables are good predictors of customer satisfaction towards online shopping.
In the above table the values basically gives us the answer weather the independent variables can
reliably predict the dependent variable. Here the p- value is compared to alpha level which we
typically assume 0.05. If the value is smaller than 0.05 we can say that the independent variables
can reliably predict the dependent variable. As our value is less than 0.05 we can also say that our
independent variables reliably predicated the dependent variable in this study.
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Table 4.11: ANNOVA
In this table, the B values are for the regression equation for predicting customer satisfaction of
online shopping from the independent variables. These values are unstandardized as they are
measured in their actual units that’s why they are called unstandardized coefficients. But the Beta
values are standardized coefficients. It also tells us about the relationship between the dependent
and independent variables. That means if we increase the independent variable with 1 unit it will
directly increase the dependent variable with 1 unit.
From the above table, we can get the Regression Equation. In the model, assurance was eliminated
as its Pearson Coefficient value came less than 0.5. So after the test this model basically gives us
only one parameter which is Reliability as its significant is less than 0.05 so we can say it
contributes most significantly to the overall customer satisfaction for online shopping.
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Regression Equation: Y= A+ BX1
Y= .569+ .440X1
Where
X1 – Reliability
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Chapter 5: Implications of Key Findings
There are various studies that have used many types of theories to explain that online shopping
behavior is affected by many factors but providing a complete package of potential factors in one
research model is quite impossible that’s why we only tried to identify the major ones through our
study. In our study we used the theory of service quality dimensions of the SERVRQUAL model.
There are five dimensions of this model and they are tangibility, reliability, assurance,
responsiveness and empathy. We used them as independent variables. We tried to identify the
factors that may have impact on consumer behavior for online shopping and included those in
these five dimensions. From the results and findings of our study it appears that though all the
independent variables have positive correlation with customer satisfaction but only reliability has
major impact on consumer buying behavior for online shopping. That means people feel more
reliable when they do online shopping and there are still some lacking’s in tangibility,
responsiveness, assurance and empathy as they don’t have that much significant on consumer
behavior for online shopping.
Based on the results and findings we identified some managerial implications. At first from the
result and findings we can say that the factors we included in the service quality dimensions all of
them have positive correlation with customer satisfactions. But reliability have significant impact
specially. So online shopping companies must maintain those factors. Such as most of the people
do online shopping as it is convenient for them so they need to maintain that or they can make
online shopping more convenient by adding various features for example many people get
confused while purchasing clothing products for accurate size measurements. If the companies can
introduce “Digital Trial System” so that consumers can trial their cloths digitally it will become
very easy for the customer to purchase the right sized products. Secondly, whenever people make
online purchase they are always concern about their personal information so the companies need
to ensure they maintain security by adopting various security options and make them feel more
reliable. Our results also shows that around 62% of our respondent have concern for getting the
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right quality product so they also need to ensure that they are shipping the products they are
advertising online. Also a huge amount of customers think shipping charge affect their online
shopping, so the companies can reduce their shipping charge or can give free home delivery to
attract more customers and also to gain customers satisfaction. These are the major factors a
company should focus on as it has major impacts. Besides these factors there are other factors a
company can work on like 75% of our respondents thinks free return shipment should be available
in case of online shopping and also most of the companies doesn’t give after sale service properly
, once they sell their product they ignore their customers as they don’t have to face them physically.
So a company should avoid this kind of behavior in online shopping business and make their
customer shopping easy by providing detailed product information, delivering the right quality full
product and provide a good after sales service to retain them and for making long term relationship.
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Chapter 6: Conclusions
6.1 Introduction
Online shopping basically is a process when consumers decide to do shopping by using the
internet. As internet is one of the most used platform where we can get anything we want so most
of the consumers are also moving toward it for their shopping purposes. We can shop online in
every circumstances. For example if we think about our current pandemic situation online
shopping is playing a major role for all the people around the world. That’s why internet has
become a very highly competitive market and consumers behavior also vary based on the products
they are buying as well as their satisfaction level depends on various factors. That’s why we tried
to identify the major factors affecting the consumer’s behavior for online shopping as well as their
satisfaction level in this study as it is one of the most important issue of e-commerce and marketing
field. It will also help the sellers to learn about those major factors and focus on those to increase
their selling and for gaining highest level of customer satisfaction.
6.2 Limitations
In online shopping there are variety of consumers and they purchase various kinds of items
so there are vast amount of factors affecting their purchasing behavior but in this study we
only tried to identify the major factors with the help of SERVQUAL model.
Our study is only conducted on the consumers who currently lives in Dhaka city. If you
can conduct this study all over the Bangladesh it will more helpful for the sellers around
the country to understand their consumer more accurately as people from different places
have different characteristics.
As we collected our information through online survey by using questionnaire it is possible
that people didn’t answer the questions as they actually think and do.
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6.3 Proposed Further Research
After conducting our research and considering all the limitations, it would be great if we can
conduct our research in future more profoundly beyond all the limitations we have faced during
this study. If we get the chance we would like to add the following possibilities in our future
research.
We would like to conduct our research throughout Bangladesh. So that we can identify
customers behavior from different places also what affects their online shopping
behavior.
We conducted our research on a very small sample size, we want to study this research
with a large sample size so we might found new segments or possibilities.
This research was conducted to help the sellers to improve their online selling more
effectively in future we want collect information from the online sellers to know what
kind of behavior they expect from an online consumer.
We found that convenience , no time restriction, accuracy of product delivery and
shipping charge were the major factors that has mojor impact on online purchase, in
future we like to know whether all the consumers from different places perceive is
concept equally or not.
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Chapter 7: References
7.1 References
Anon., 1988. SERVQUAL: a multiple -item scale for measuring consumer perceptions of service
quality. Journal of Retailing, 64 No. 1,(Spring), pp. 12-40.
Bolton, R. a. D. J., 1991. A longitudinal analysis of the impact of service changes on customer
attitudes. Journal of Marketing, Volume 55, pp. 1-9.
Cheung et al., 2005. A critical review of online consumer behavior. Empirical research. Journal
of Electronic Commerce in Organizations, Volume 3(4), pp. 1-19.
Congent business and Management, 2018. In: Congent business and Management. s.l.:s.n., pp.
VOL-5.
Cronin, J. a. T. S., 1992. Measuring service quality: a re-examination and extension. Journal of
Marketing, Volume 56, pp. 55-68.
Hoque et al., 1999. "An information search cost perspective for desinging interfaces for
electronic commerce". Journal of Marketing Research, Volume 36(3), pp. 387-94.
Jarvenpaa and Todd, 1997. "'Consumer reactions to electronic shopping on the World Wide
Web". International Journal of Electronic Commerce , Volume 1(2), pp. 59-88.
Joines et al, 2003. "Exploring motivations for consumer Web use and their implications for e-
commerce", s.l.: Journal of Consumer Marketing 20:2, 90-108.
Li and Zang, 2002. Consumer online shopping attitudes and behavior:An assessment of
research. Information Systems proceedings of Eighth Americas Conference. s.l., s.n.
Liang and Lai, 2000. Electronic store design and consumer choice: an empirical study. System
Sciences Proceedings of 33rd International Conference in Hawaii., s.n.
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Miller, B., 2020. Green Garage. [Online]
Available at: https://greengarageblog.org/15-advantages-and-disadvantages-of-quantitative-
research
[Accessed 1 June 2020].
Oliver, R., 1980. A cognitive model of the antecedents and consequences of satisfaction
decisions. Journal of Marketing Research, XVII(November), pp. 460-9.
Sinha, J., 2010. Factors affecting online shopping behavior of Indian consumers, USA:
University of South Carolina.
Vegiayan et al., 2013. Online Shopping and Customer Satisfaction in Malaysia. International
Journal of Marketing Practices, Volume 1(1), pp. 43-51.
Zeithaml, V. a. B. M., 1996. Services Marketing. international edition ed. New York: McGraw
Hill, New York.
Zuroni et al., 2012. Factors Influencing Consumers’ Attitude Towards ECommerce Purchases
Through Online Shopping. . International Journal of Humanities and Social Science, Volume
2(4), pp. 223-230.
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Chapter 8: Appendix
8.1 Sample Questionnaires
Dear Sir/Madam
We would like to thank you for agreeing to participate in this research project. We are the students
of Marketing department at Bangladesh University of Professionals conducting this research to
find out the factors that influence the consumers for online shopping in Dhaka city.
The purpose of this research is to identify key factors influencing consumers online shopping
behavior in Dhaka city. We ensure that the data will be used only for academic purpose and all
the data will be reserved in private and anonymous. The following questions will not take more
than 10 minutes to respond, please read the questions carefully and help us to fulfill the purpose.
Note: There is no correct answers of these questions. We only want your opinion. Your opinion is
very important to us. If you have any questions or comments about this project please feel free to
contact us on +8801521301018 or you can email us at: smproteek@gmail.com.
Alternatively, if you want to contact our course teacher here is his details: Asst. Prof. Md Ashraf
Harun
E-mail- ashrafharun@du.ac.bd
Sincerely yours
Department of Marketing
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Section A: Online shopping in Dhaka city
1. Do you live in Dhaka city? (If No is selected, then skip to end of survey)
Yes
No
Online Shopping
Offline Shopping
3. Do you use online shopping? (If No is selected, then skip to end of survey)
Yes
No
Within 3 months
Within 6 months
More than that
In this section you will be asked about attributes of online shopping. Here the answers of the
questions are given in five point scale which indicates the degree to which you agree or disagree
with each of the following statements. 1 means “Strongly Disagree" and 5 being "Strongly Agree".
Strongly Strongly
Disagree Agree
1 2 3 4 5
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2. Online shopping saves time
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
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8. Online shopping has no time restriction to decide or choice
Strongly Strongly
Disagree Agree
1 2 3 4 5
9. Online shopping encourages as you can pre-order and get rare or unique products easily.
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
12. Free return shipment service availability is important for you in Online shopping
Strongly Strongly
Disagree Agree
1 2 3 4 5
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Section-C: Factors that are likely to influence your online shopping intention
The following questions try to assess some factors that are likely to influence your online
shopping intention. Here the answers of the questions are given in five point scale which indicates
the degree to which you agree or disagree with each of the following statements. 1 means “Strongly
Disagree" and 5 being "Strongly Agree".
1. Transaction details or personal information may be compromised or shared with third party and
it affects your online shopping decision
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
3. It is hard to judge the quality of the merchandise and product over the internet
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
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5. Returning product is difficult in Online shopping
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
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Section-D: Personal information and Opinion
16-23
24-31
32-39
40-47
48-55
Male
Female
3. Occupation?
Ans:
4. Marital Status?
Single/Never married
Married
Widowed
Divorced/ Separated
Strongly Strongly
Disagree Agree
1 2 3 4 5
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8.2 SPSS Output
COMPUTE Tangibility=Mean(Selection,Lifestyle,Canceling,Moneyback).
EXECUTE.
DATASET CLOSE DataSet4.
COMPUTE Reliability=Mean(Convenient,Restriction,Transaction,Accurate,Amount).
EXECUTE.
COMPUTE Responsiveness=Mean(Time,Information,Return,Returning).
EXECUTE.
COMPUTE Assurance=Mean(Review,Preorder,Friends).
EXECUTE.
COMPUTE Empathy=Mean(Price,Embarrasement,Procedure,Judge,Aftersales).
EXECUTE.
REGRESSION
/MISSING LISTWISE
/STATISTICS COEFF OUTS CI(95) R ANOVA CHANGE
/CRITERIA=PIN(.05) POUT(.10)
/NOORIGIN
/DEPENDENT Satisfied
/METHOD=ENTER Tangibility Reliability Responsiveness Assurance Empathy
/RESIDUALS DURBIN.
Regression
Variables Entered/Removeda
Empathy,
Assurance,
1 Responsivenes . Enter
s, Reliability,
Tangibilityb
Model Summaryb
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ANOVAa
Total 70.110 99
Coefficientsa
Residuals Statisticsa
CORRELATIONS
/VARIABLES=Satisfied Tangibility
/PRINT=TWOTAIL NOSIG
/MISSING=PAIRWISE.
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Correlations
Correlations
I am overall Tangibility
satisfies with
the service
N 100 100
CORRELATIONS
/VARIABLES=Satisfied Reliability
/PRINT=TWOTAIL NOSIG
/MISSING=PAIRWISE.
Correlations
Correlations
I am overall Reliability
satisfies with
the service
N 100 100
CORRELATIONS
/VARIABLES=Satisfied Responsiveness
/PRINT=TWOTAIL NOSIG
/MISSING=PAIRWISE.
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Correlations
Correlations
I am overall Responsivenes
satisfies with s
the service
N 100 100
CORRELATIONS
/VARIABLES=Satisfied Assurance
/PRINT=TWOTAIL NOSIG
/MISSING=PAIRWISE.
Correlations
Correlations
I am overall Assurance
satisfies with
the service
Pearson Correlation 1 .296**
I am overall satisfies with the
Sig. (2-tailed) .003
service
N 100 100
Pearson Correlation .296** 1
N 100 100
CORRELATIONS
/VARIABLES=Satisfied Empathy
/PRINT=TWOTAIL NOSIG
/MISSING=PAIRWISE.
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Correlations
Correlations
I am overall Empathy
satisfies with
the service
N 100 100
RELIABILITY
/VARIABLES=Selection Lifestyle Canceling Moneyback
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA
/STATISTICS=DESCRIPTIVE CORR
/SUMMARY=TOTAL CORR.
Reliability
N %
Cases Excludeda 0 .0
Reliability Statistics
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tem Statistics
Item-Total Statistics
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Scale Mean if Scale Variance Corrected Item- Squared Cronbach's
Item Deleted if Item Deleted Total Correlation Multiple Alpha if Item
Correlation Deleted
RELIABILITY
/VARIABLES=Convenient Restriction Transaction Accurate Amount
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA
/STATISTICS=DESCRIPTIVE CORR
/SUMMARY=TOTAL CORR.
Reliability
N %
Cases Excludeda 0 .0
Reliability Statistics
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Item Statistics
Online shopping is
3.0800 1.10718 100
convenient
Online shopping has no time
restriction to decide or 3.6900 .89550 100
choice
Transaction details or
personal information may be
compromised or shared with 3.3300 1.00559 100
third party and it affects your
online shopping decision
Accurate product might not
be delivered through online 3.2300 1.10878 100
shopping always
The amount of shipping
charge affects your online 3.6100 .89775 100
shopping behaviour
Online shopping is
1.000 .474 .212 .265 .448
convenient
Online shopping has no time
restriction to decide or .474 1.000 .126 .225 .527
choice
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Transaction details or
personal information may be
compromised or shared with .212 .126 1.000 .384 .278
third party and it affects your
online shopping decision
Accurate product might not
be delivered through online .265 .225 .384 1.000 .507
shopping always
The amount of shipping
charge affects your online .448 .527 .278 .507 1.000
shopping behaviour
Item-Total Statistics
Online shopping is
13.8600 7.738 .479 .290 .670
convenient
Online shopping has no time
restriction to decide or 13.2500 8.654 .467 .353 .675
choice
Transaction details or
personal information may be
compromised or shared with 13.6100 8.846 .344 .165 .721
third party and it affects your
online shopping decision
Accurate product might not
be delivered through online 13.7100 7.723 .481 .324 .670
shopping always
The amount of shipping
charge affects your online 13.3300 7.860 .646 .463 .609
shopping behaviour
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RELIABILITY
/VARIABLES=Time Information Return Returning
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA
/STATISTICS=DESCRIPTIVE CORR
/SUMMARY=TOTAL CORR.
Reliability
N %
Cases Excludeda 0 .0
Reliability Statistics
.821 .824 4
Item Statistics
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Online shopping Online shopping Free return Returning
saves time can provide shipment product is
detailed product service difficult in
information availability is Online shopping
important for
you in Online
shopping
Item-Total Statistics
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RELIABILITY
/VARIABLES=Review Preorder Friends
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA
/STATISTICS=DESCRIPTIVE CORR
/SUMMARY=TOTAL CORR.
Reliability
N %
Reliability Statistics
.378 .392 3
Item Statistics
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Inter-Item Correlation Matrix
Item-Total Statistics
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RELIABILITY
/VARIABLES=Price Embarrasement Procedure Judge Aftersales
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA
/STATISTICS=DESCRIPTIVE CORR
/SUMMARY=TOTAL CORR.
Reliability
N %
Reliability Statistics
.713 .717 5
Item Statistics
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Good after-sales service
affects Online shopping 3.6900 .89550 100
buying behaviour
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Item-Total Statistics
REGRESSION
/MISSING LISTWISE
/STATISTICS COEFF OUTS R ANOVA
/CRITERIA=PIN(.05) POUT(.10)
/NOORIGIN
/DEPENDENT Satisfied
/METHOD=ENTER Reliability.
Regression
Variables Entered/Removeda
1 Reliabilityb . Enter
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Model Summary
ANOVAa
Total 70.110 99
a. Dependent Variable: I am overall satisfies with the service
b. Predictors: (Constant), Reliability
Coefficientsa
REGRESSION
/MISSING LISTWISE
/STATISTICS COEFF OUTS R ANOVA CHANGE
/CRITERIA=PIN(.05) POUT(.10)
/NOORIGIN
/DEPENDENT Satisfied
/METHOD=ENTER Tangibility Reliability Responsiveness Empathy
/RESIDUALS DURBIN.
Regression
Variables Entered/Removeda
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Empathy,
Responsivenes
1 . Enter
s, Reliability,
Tangibilityb
Model Summaryb
ANOVAa
Total 70.110 99
Coefficientsa
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