The Factors Affecting Customer Satisfaction Towards

Online Shopping In Klang Valley

Sharina Osman1, Nurul Iman Adlina Binti Tauffek Afandi 2, Syarifah Nurelfi Hajira Binti Syed
Hanasudin3 , Aliy Wafiy Bin Norshaharom4

1-4 Business School, Universiti Kuala Lumpur, 1016 Jalan Sultan Ismail,
50250 Kuala Lumpur, Malaysia

r
ABSTRACT ARTICLE INFO

Introduction/Main objectives: The primary purpose of this study is Article information:

to identify the factors affecting customer satisfaction towards online Received in 1 March
shopping in Klang Valley. Backgroud problems: Nowadays, the 2020.
Internet is no longer a medium to get in touch with customers. Received in revised
However, it is also an important channel to find potential customers form
and a channel to continue a relationship with existing customers. 27 May 2020.
Received in revised
Therefore, it is essential to understand what satisfies the customers
form
who are used to online shopping. There is a factor affecting
23 June 2020.
customer satisfaction that is important to know why the factors are Accepted 30 June2020
responsible for creating customer satisfaction. Novelty: This
research study investigates the independent variables (product
quality, price fairness, and customer shopping experience) towards Keywords:
dependent variables (customer satisfaction) in online shopping in keyword_1,keyword_2,
Klang Valley. Research method: In this study, we use a quantitative keyword_3,keyword_4,
research method using an online survey in Google form because it is keyword_5
more convenient and can get a more significant sample.
Finding/result: The results have shown that product quality, price
fairness, and customer shopping experience influence customer JEL Code:
satisfaction towards online shopping. Contributions: This study is to D13, I31, J22, K31
explore the factors affecting customer satisfaction towards online
shopping in Klang Valley. Conclusion: The Internet has helped many
people, especially businesses because through online business, they
can generate their income more efficiently. The Internet also
understanding's people need to buy through online shopping as
people nowadays adapt with the modern technology in their
shopping habit.
Introduction

The first Internet Service Provider (ISP) JARING was introduced in Malaysia in 1990 and followed by
TMNET in 1996. The number of Internet usage in Malaysia has been increasing (Khatibi, Haque, &
Karim, 2006). Therefore, it provides an excellent opportunity for Malaysians to start their business and
shop online. Zendehdel, Paim, & Osman estimated that there are around RM1.8 billion in the online
shopping market in Malaysia in the year 2013 and expected to increase to RM5 billion in 2015
(Zendehdel, Paim, & Osman, 2015). Because of that, the consumer has become a more critical element
which they are the ones who purchase things online. Thus, understanding consumer behavior has
become one of the main parts which will enhance success in e-business.

Technological advancements and the Internet have resulted in a proliferation of online shopping
activities. It provides many opportunities for businesses to create and retain relationships and
interactions with customers (Pappas, Pateli, Giannakos, & Chrissikopoulos, 2014). Online shopping
platforms or electronic retailing has captured the attention of many retailers since it was established as
an alternative channel in combination with traditional offline retail channels (Rowley, cited in Harn,
Khatibi, & Ismail, 2006). The ease of online shopping has benefits buyers to get their product online on
their preferred online shopping platform. In general, customers or buyers tend to choose the most
preferred online platform regarding the accessibility, ease of use, and website design of the online
platform. When compared to traditional shopping methods where the consumers consider their
available options via physical contacts, online shopping requires the potential shoppers to evaluate
their available options of products through visual images and reviews from only from the websites
without actual physical reference.

Since the satisfied customer is the core concern of any organization, therefore they pay close attention
to the factors that influence a customer's decision towards the brand. The primary purpose of this
research study was to investigate the key variables that are having a strong influence on customer
satisfaction in the telecom sector and influence purchasing decision of customers. This study has
considered the two main factors as pricing and customer's services to know their effects on customer
satisfaction. Factors affecting customer satisfaction are a vital concern for any organization,
department, or country because, through customer satisfaction, any business can establish long term
profitable relationship with the customer. Once a firm loses its loyal customers, it has to incur the cost
of acquiring them again and acquiring new ones.

In online shopping, the seller has to know that consumer satisfaction plays a significant role because
customer satisfaction becomes important for sellers or companies and directly impacts profitability. It is
because an online consumer will expect higher levels of service quality compared to traditional
channels consumers. Without that, the consumer can easily switch to other online shops in the
Customer to customer (C2C) e-business model. So, using all the limited resources, making the service
quality and customer satisfaction become well, and keeping up customer loyalty is particularly
important (Garg, 2018). The vast technology advancement and 4G-5G services have enabled the
Internet to become a medium for selling and purchasing various products, new and old, via e-
commerce platforms. Such trading offers more speed and ease for the whole process than a traditional
business method. It is because the consumers do not have to be present physically or face to face to
complete a purchase or deal. Ecommerce also has been proven as the best method to operate
businesses in this era of globalization, where companies or businesses are boundless for everyone
(Tiwari, 2006).
1.2 Problem Statement

In the new era of modern science and technology, peoples' life becoming more manageable and more
convenient than their previous life. The wide use of the Internet and rapid growth of technology has
created a new market for customers and businesses. Now a day's, the Internet no longer a medium to
get in touch with customers. However, it is also an important channel to find potential customers and a
channel to continue a relationship with existing customers (Alam et al., 2007). It is clarified by (Haque
and Khatibi, 2007), who identify that it is true in the context of Malaysia, where internet shopping is still
new, and customers are less familiar and often more skeptical towards online shopping. However,
online shopping in Malaysia has begun to grow. So, for the retailers to need focus on issues that
influence the customer's satisfaction.

However, there is an article of surveys of online consumers that continue to indicate that many remain
unsatisfied with their online shopping experiences. One of the crucial reasons is that customers do not
have good and perfect information about product quality once they make an online purchase. Unlike
traditional businesses, consumers may evaluate the quality of products by looking or may allow to
touch or feel the products. Also, there are many different by pricing if we buy online. It can be very
cheap but with bad quality or too pricy that people feel it wasted the money to buy online. Nowadays,
the idea of online shopping is to lead customers to a convenient way of shopping. Customers will save
their time and money and retrieve all the product information with just a few clicks in few minutes. So,
people are more intent to do online shopping because there are too many good reviews for online
platforms to enjoy shopping.

Therefore, it is crucial to understand what satisfies the customers who are used to online shopping.
There is a factor affecting customer satisfaction that is important to know why the factors are
responsible for creating customer satisfaction. Customer satisfaction has established when product
quality, price fairness, and customer shopping experience meet their requirements during their
purchasing period. This study will try to determine the factors affecting customer satisfaction in online
shopping

1.2.1 Research Objective

1. To examine the relationship between product quality and customer satisfaction towards
online shopping.
2. To examine the relationship between price fairness and customer satisfaction towards
online shopping.
3. To analyze the relationship between customer shopping experience and customer
satisfaction towards online shopping.
1.2.2 Research Question
1. Is there any significant relationship between product quality and customer satisfaction?
2. Is there any significant relationship between price fairness and customer satisfaction?
3. Is there any significant relationship between customer shopping experience and customer
satisfaction?
2. Literature Review
2.1 Expectancy-disconfirmation Theory

The Expectancy Disconfirmation Theory (EDT), conducted on the bottom of Cognitive Dissonance
Theory (CDT), which was introduced in 1957 by Leon Festinger. Therefore, the literature on CDT
reviewing during this section, the definition of EDT, and its applications. Expectancy-
Disconfirmation Theory is one the most widely accepted theory by concerning customer
satisfaction processes. The idea of this theory holds that satisfaction or dissatisfaction results from
a customer's comparison of performance (of a product itself or service) with predetermined
standards of performance. According to the point of view, the predetermined standards are the
customer's predictive expectations. Three possible outcomes of the comparison are possible.
Positive disconfirmation occurs when performance occurs to be better than the predetermined
expectations. In this kind of scenario, the customer is delighted. Zero disconfirmation appeared
when its performance seemed to be precisely adequate to expectations-customers are likely to be
satisfied.

Besides, negative disconfirmation occurs when performance is less than expectations. Of course,
negative disconfirmation will result in dissatisfied or unhappy customers. Thus, in this theory, the
Customer's perception of overall satisfaction results from comparing expectation and outcome
performance. Therefore, expectation and outcome performance are the two most significant
variables that may influence satisfaction measure judgment. It is because customers' satisfaction is
one of the curial factors to predict the customer purchase tendency. To analyze satisfaction toward
the products is additionally a central topic in customer behavior research. Based on expectation
disconfirmation theory, the firm can increase satisfaction by increasing perceived product
performance or decreasing expectation.

Lastly, EDT was applied by many researchers in different fields for a better understanding of the
customer's expectations and requirements for attracting their satisfaction, such as marketing,
tourism, information technology, repurchase behavior and retention. For evaluating the customer's
satisfaction from a website's quality product, price fairness, and customer shopping experience,
EDT can fulfill the responsibility of measuring the customer's satisfaction considering its natural
competencies.

2.2 Customer Satisfaction

In the literature review, the dependent variable and independent variables definition will be
explored in the following reviews. Determining variables is necessary to understand how the three
independent variables (product quality, price fairness, and customer shopping experiences)
influence the dependent variable (customer satisfaction) in online shopping. The customer refers to
a person that receives, consumes, or buys a product or service and can choose between different
goods and suppliers from online shopping.

The major objective of all commercial enterprises is to attract customers or clients and make them
procure what they have. Their job also to try to encourage them to keep coming back. At the online
core of marketing is to have a good understanding of the customer needs and values of satisfaction
that can refer to the person's feelings of pleasure or disappointment resulting from comparing a
product's perceived performance or outcome with their expectations. Customer satisfaction refers
to the degree, a customer is happy about the quality of products and services. To increase shopping
in Malaysia is to understand customer satisfaction and the factors that may affect satisfaction. It is
because online shopping should be put as prioritized instead of put as an option since it is crucial to
consumers and sellers.
According to Kotler and Keller (2013), Consumer satisfaction is when consuming the good or service
that satisfies their needs or wishes, including buying from the most preferred online platform.
Satisfaction is a feeling of enjoyment or dissatisfaction that emerges by measuring results (product
or outcome) against their standards. According to an online report by Morris (2013), two-thirds of
70% of online buyers choose to buy products from their favorite online retailer because it is easier
and more convenient. The report also stated that most online consumers prefer the same online
retailer due to the options available for them and easiness of exploring the possibilities of products.
Chatterjee (2010) demonstrated that online consumers are attracted to the retailers who offer a
comprehensive delivery channel, increasing the consumers' satisfaction and loyalty. Compared to
the online shopping method, the traditional shopping method bears the cost of consumers'
transportation, time, and energy.

2.3 Product Quality

Product quality refers to the group of features and characteristics of a saleable good that have an
impact on its eligibility and can be controlled by an industrialist to attain certain fundamental
requirements. Nowadays, businesses that produce goods for sale have a product quality checker
and an assurance department that will monitor outgoing products before distributing them to
consumer acceptability. Product quality means incorporating features that can satisfy consumer
needs (wants) and gives Customer satisfaction by improving products (goods) and making them
freed from any deficiencies or defects. Customers were satisfied when the perceived service meets
or exceeds their overall expectations. They are dissatisfied once they feel the service falls below
their expectations. Quality and customer satisfaction have provided some insights into determining
the amount of satisfies for product experience. The more quality instruction the online retailers
dispense or provide, the higher the decisions could be made satisfactorily (Ludin & Cheng, 2014).
Customer service and a beneficial customer experience are criticizing to sales within the e-
commerce marketplace. Product quality is customers' comprehensive appraisal of the greatness in
the performance of the good or service (John, Mowen & Michael, 1997).

According to Business Dictionary, product quality is defined as a saleable good controlled by a

manufacturer to reach basic requirements through features and characteristics. In other words,
product quality is defined as improving the products or goods to meet the customer needs or wants
to reach customer satisfaction (Gaurav Akrani, 2013). Product quality is the durability of products
that acts as a catalyst for consumer demands of safe products and customer satisfaction. These
factors allow businesses to enhance their bottom-line through sustained revenue acquisitions to
meet or exceed stated revenue objectives (Gitman & McDaniel, 2005). Flavio, Filho, and Bonney
(2009), Golder, Mitra, and Moorman (2012) supported Deming (1982) classical quality control of
the high-product quality hypothesis. Their findings posit that production management functionaries
should aim at measuring, understanding, and improving the production process and material flow.

Other than that, according to boosted safety specifications, good products and services can be
produced to satisfy or exceed prevailing consumer flavor and expectations to enhance revenue
acquisitions for businesses. Feigenbaum (1991) and Flavio, Filho and Bonney (2009) argued for the
adoption of the importance of production control (P.C.). Their findings posit that P.C. determines
and regulates schedules, coordination, commands, and monitors material flows and activities in the
production system in short-term measures to improve customer satisfaction and promote
sustainable consumption (Zaifang & Xuening, 2010).
From the past researchers, Flavio et al. (2009) and Verhoef and Lemon (2013) believed that there is
a way to integrate product quality and quality control for repetitive production systems on the
production line to boost customer satisfaction. Interestingly, Hohner, Kagemann, and Inman (2010)
findings did not find or mention any practical method(s) for establishing the relationship between
product quality and quality control. Raturi and Evans (2004) and Xu, Leung, and Yan (2013) believed
consumers have the final say on quality, which means that quality efforts not only focus on simply
meeting the specifications and reducing defects and variations but also ensuring the reliability of
products when they reached the consumers. Therefore, corrective actions to improve customer
perception of quality changes are paramount because the strategies motivate consumer behaviors
to incremental revenue acquisitions (Iyer & Kuksov, 2010).

H1: There is a positive relationship between product quality and customer satisfaction through
online shopping.

2.4 Price Fairness

It’s been a hundred years a marketer was fight about the concept of the fair price. It is because in
the dark ages, the merchants were murdered just for exceeding public norms about the “just
price”. Even now in the modern market economies, putative "price gougers" often face press
criticism, regulatory hassles, and public boycotts said (Nagle, Hogan, & Zale, 2011). While, the fact is
that the both the price offered, and the rationale was offering a certain price that may lead to
perceptions of price unfairness. In other hands, the perceptions of price unfairness can lead to
negative consequences for the seller, including buyers leaving the exchange relationship, spreading
negative information, or engaging in other behavior’s that damage the seller (e.g. (Campbell, 1999))
(Xia, Kent, & Cox, 2004).

The consequences are, a marketer have to understand and attempt to manage about
perceptions of fairness. Consequently, marketers should understand and attempt to manage
perceptions of fairness. But what is fair to them? The concept of fairness is appeared unrelated to
the issues of supply and demand. It’s actually natural when the assumptions about the seller’s
profitability has influence the perceived of fairness, but not entirely (Nagle, Hogan, & Zale, 2011).
Besides, Price fairness is a very important issue that leads toward satisfaction because by charging
the fair price, it helps to develop customer satisfaction and loyalty. Past research has shown that a
customer's decision to accept a particular price directly impacts the satisfaction level and loyalty
and indirectly (Martin-Consuegra, Molina and Esteban, 2007). Another study by Herrmann et al.
(2007) concluded that customer satisfaction is directly influenced by price perceptions while
indirectly through price fairness and also the price fairness itself have a way to fixed and offered
that give a great impact on satisfaction.

Meanwhile, according to (Zeithaml and Bitner in Bei and Chiao, 2001) they describe it as to indicate
the development of satisfaction is widely than the quality of products or services. Still, there are
other factors of service quality, product quality, price, situation, and personal consumer factors.
From the cognitive concept of consumers, the price is something that the sellers must be given or
sacrificed to obtain a product or service. For example, the lower the price perception, the lower the
perception of the sacrifice for the product. So, consumers will be more satisfied with the perception
of prices and the overall transaction carried out. It is implied in the monetary prices, or the
perception of prices does not necessarily increase satisfaction. Besides, the consumer like to
associate prices with service quality through the concept of equity, thus by create a level of
satisfaction or dissatisfaction among consumers. So, to get a certain type of services or products,
the customers need to sacrifice prices. The exchange between prices and services or products
provides by sellers must be considered fair by customers, creating customer satisfaction and fair
prices. Several types of research have also shown similar and consistent findings, stating that unfair
price perception influences customer satisfaction and intention to repurchase (Campbell, 1999;
Martins and Monroe, 1994). Similarly, Xia et al. (2004) suggested in their study that price fairness
perception influences the customer's assessment of product value and satisfaction. However, the
study has shown that the perceptions generate negative emotions that differ in intensity and
appear in various types. It stated that value assessment of the customer and negative emotions are
the mediating variables that influence behavioral actions such as purchase intentions and negative
word of mouth.

H2: There is a positive relationship between price fairness and customer satisfaction through
online shopping.

2.5 Customer Shopping Experience

Levy and Weitz (2012) found that traditional supermarkets use strategies to compete
successfully by differentiating their products and services from other competitors. They do this by
emphasizing the freshness of perishables by paying attention on the needs and wants of health-
conscious and all type of consumers cultural, offering unique value with reduced cost merchandise,
and providing customers with a unique shopping experience better than competitor’s one. A
customer shopping experience provides a competitive advantage that enhances a customer's value
from a visit to a supermarket. Unfamiliar and complex competitive environments and well-informed
customers who continuously demand value are major forces that require the development and
offering of pleasant in-store customer shopping experiences to ensure that customers patronize a
supermarket again in the near future. (Sánchez-Fernández et al., 2009). To offer a pleasing
customer shopping experience for their customers, supermarkets initially highlighted on offering
more types of services to customers. The arrival of fresh food retailing later necessitated
supermarkets to expand their services to compete successfully with these newcomers. Accenture
(2015) has also acknowledged that customers' experience should be a priority for businesses.

It is necessary to recommend different opinions on customer shopping encounter to provide some

rationalization for the study context. Mascarenhas et al. (2006: 399) emphasize the extensiveness
of customer experience by defining it as "a totally positive and socially enjoyful customer
experience across all critical levels of counsumer's consumption chain and one that is caught by a
distinct market offering that calls for live interaction between customers and suppliers". Several
researchers have emphasized all the touchpoints influence the customer shopping experience that
customers are exposed to in a store, which starts with a product search up to and post-
consumption. For these researcher's customer experience forms more part of the process than the
outcome (Yang et al., 2012; Mouri et al., 2015). Other scholars have found that customer
experience exerts a significant influence on customer satisfaction and loyalty (Caruana, 2002)

H3: There is a positive relationship between customer shopping experience and customer
satisfaction through online shopping.
 Independent Variables Dependent Variables

Product Quality H1

H2
Price Fairness Customer Satisfaction

H3
Customer Shopping
Experience

Figure 1: Theoretical Framework

3. Method, Data, and Analysis

This research study uses two research methods in analyzing the factors affecting customer satisfaction
towards online shopping in Klang Valley. It determines the relationship between customer satisfaction
(dependent variable) to product quality, price fairness, and customer shopping experience
(independent variables) towards online shopping. This research helps researchers to expand their
knowledge and get new ideas. Thus, this research is proceeded to collect data required to study the
topic. This research uses a quantitative approach and online survey as the primary data and journals,
articles, and websites as the secondary data.

3.1 Research Design

Research design can be defined as a guideline to ensure that the information collected is
accurate and useful. In this research, the quantitative method will be used rather than the qualitative
research method because the quantitative method offers more benefits for a larger target respondent
and includes multiple types of measurement and analysis to evaluate the research (Sekaran, 2012).
Using this approach will enable the researcher to gather and analyze the data collected and use for
further hypothesis test to determine the relationship between dependent variables and independent
variable (Madrigal, 2012). According to Krejcie and Morgan (1970) the table is used to determine the
minimum sample size of this research. The overall Klang Valley population is 8,211,000, and only 346
respondents will be selected. This research method will help researchers determine the relationship
between the independent variables (product quality, price fairness, and customer shopping experience)
and the dependent variable (consumer satisfaction in online shopping) from respondents in the Klang
Valley area.
3.2 Sampling Technique
The questionnaire consists of 31 questions with three sections: Section A, Section B, and section
C. Section A are about the demographic section that provides an individual's demographic profile. The
demographics variables questioned are gender, age, race, marital status, monthly income, and how
frequently you buy online. Section B consists of items to measure the variables. The variables in Section
B are product quality, price fairness and customer shopping experience. Lastly, section C talked about
the dependent variable, which is customer satisfaction. The scaling applied in this study for the
questionnaire is the 5-point Likert scale of 1-strongly disagree, 2-disagree, 3-neutral, 4- agree, and 5-
strongly agree to increase the response rate as it is less confusing instead of the higher sales. It also
provides variance in variables measurement.
3.3 Data Collection
For data collection, the research study uses quantitative-based and used the online
questionnaire as the survey instrument to gather the data regarding factors affecting customer
satisfaction towards online shopping in Klang Valley. The platform used in this research is a Google
Form to gather the respondents quickly because it is more time-efficient and cost-saving. In this
research, random sampling was used where each person in the population has an equal possibility of
being selected because our study population is consumers residing in the Klang Valley area. A total of
369 data was collected, and only 346 respondents are needed for this research.

4. Result and Discussion

4.1 Demographic Profile
Based on the table below show results, the respondents' profile has shown the balance of the male
respondents, which has (45.4 %), and the remaining percentage were female (54.6 %). In the case of
age division, 90.4% of our respondents belong to the category of young adults between the ages of 18-
34 years, with the highest was 18-24 years representing (67.9 %) and the second-highest was 25-34
years representing (22.5 %), while the remaining percentage belongs to those aged 35 years and above.
We can see that most of our respondents were Malays (94.2 %) for the race segment. Also, we can see
that the highest number of other races of the least respondents in China, Indian and Others which for
China represents only (4.0%) of the total respondents, followed by Indian with (12%). In comparison,
the remaining percentage is the Others with (0.6%) category.

In terms of Marital status, the majority of our respondents are Single (82.4 %), followed by Married,
representing (16.5 %) of the total respondents, and the rest are belonging to Others (1.2 %). In the
context of our respondents monthly income, most of our respondents earned income RM 1,000 and
below, representing (46.8 %) of the total for income category, followed by RM 1,001 – RM 3,000
(11.7%), RM 3,001 – RM 5,000 (13.3%), RM 5,001 – RM 7,000 (4.9 %) and the lowest percentage of
respondents represented the categories that had RM 7,000 and above (4.0%) income. The last question
is how frequently you buy online. We can see that most of the respondent in Klang Valley was shopping
Once a month because it has the highest percentage with (28.9 %), followed by the second highest was
Once every two weeks (26.6 %) in total for this question category. It means most respondents come
from young to adults between the ages of 18-24 years. Meanwhile, all respondents had experienced
online shopping at least Once a week or more (22.5 %) lifetime due to online shopping frequency. From
the data provided, 27.1% of respondents shop online once a month. Lastly, this was followed by
respondents who spent once every two weeks (26.9%), once a week or more (23.6%), and rarely is
(22.4%)
 Frequency Percent Valid (Total)

Gender Male 157 45.4 % 346

Female 189 54.6 %
Age 18-24 years old 235 67.9 % 346

25-34 years old 78 22.5 %

35-44 years old 13 3.8 %

45-64 years old 19 5.5 %

65 and above 1 0.3 %

Race Malay 326 94.2 % 346

Chinese 14 4.0 %
Indian 4 1.2 %
Others 2 0.6 %
Marital status Single 285 82.4 %
Married 57 16.5 %
Others 4 1.2 %
Monthly RM 1,000 and below 162 46.8 % 346
income RM 1,001 – RM 3,000 107 30.9 %
RM 3,001 – RM 5,000 46 13.3 %
RM 5,001 – RM 7,000 17 4.9 %
RM 7,000 and above 14 4.0 %
How frequent Once a week or more 78 22.5 % 346
do you buy Once every two weeks 92 26.6 %
online?
Once a month 100 28.9 %
Rarely 76 22.0 %

Table 1: Respondent Profile

4.2. Reliability and validity analysis

In this study, Cronbach's Alpha reliability test was conducted to determine the consistency of the
constructs used by the questionnaire's reliability to ensure that each question used in the
questionnaire has an acceptable consistency level. A reliability test was conducted to determine the
consistency of the constructs used.

Constructs Cronbach's Alpha Number of Items Interpretation

Independent Variables
Product Quality 0.783 7 Good Reliability

Price Fairness 0.869 6 Very Good Reliability

Customer Shopping Experience 0.857 6 Very Good Reliability

Dependent Variables
Customer Satisfaction 0.890 6 Very Good Reliability

Table 2: Cronbach’s Alpha

Cronbach's alpha is a convenient measure used to determine the composite score's reliability or
internal accuracy. The general rule of this is that the Cronbach alpha of 0.70 and above is good, 0.80
and above is good, and 0.90 and above is better. Based on the table above, for the independent
variable, it can be seen as a total of a Price Fairness, Customer Shopping Experience has very good
reliability. In contrast, Product Quality has good reliability. Price Fairness has the highest value at 0.869,
followed by the Customer Shopping Experience variable at 0.857. Meanwhile, the Product Quality has
good reliability at 0.783. Therefore, it can be concluded as the reliability of the construct is consistent.

Moreover, the factors of customer satisfaction towards online shopping in Klang valley responses was
defined using Cronbach Alpha as a description in table 2 above. The table above shows that customer
satisfaction towards online shopping in Cronbach Alpha are 0.890, which means the Dependent
Variable shows it has a good interaction among the resident in the Klang Valley area. Our result shows
that the research can be concluded with the highest reliability of factors of customer satisfaction
towards online shopping in Klang valley.

4.3 Correlation Analysis

The correlation analysis result was shown in table 3. Correlation Analysis is a statistical method used to
discover a relationship between two variables or datasets and how strong that relationship may be. The
result indicated a high correlation among the independent variables is Customer Shopping Experience
(0.812). Next, the remaining are moderately high correlation, Product Quality and Price Fairness
between (0.727) and (0.754). Generally, the correlation state in the table above proves that all variables
measure were functioning effectively. In this test, the correlation significant between the three
variables when customer shopping experience is high correlates to the factors of customer satisfaction
towards online shopping because it shows that customers care about their shopping experience even
through online platforms.

**. Correlation is significant at the 0.01 level (2-tailed)

 Correlationsb

  PQT PFN CSE CST

Product Quality (PQT) 1 .672** .682** .727**

Price Fairness (PFN) .672** 1 .765** .754**

Customer Shopping Experience (CSE) .682** .765** 1 .812**

Customer Satisfaction (CST) .727** .754** .812** 1

Table 3: Correlation Analysis between Customer Satisfaction, Product Quality, Price Fairness and
Customer Shopping Experience

4.3.1 Summary of hypothesis testing

Hypothesis Significant Correlation Relationship Decision

Value Coefficient Strength
H1: There is a positive relationship
between product quality and customer 0.000 0.727 Moderately Accepted
satisfaction through online shopping High

H2: There is a positive relationship

between price fairness and customer 0.000 0.754 Moderately Accepted
satisfaction through online shopping. High

H3: There is a positive relationship

between customer shopping experience 0.000 0.812 High Accepted
and customer satisfaction through online
shopping.
Table 4: Summary of hypothesis testing

This is an essential taken by researchers to identify the strength of the relationship between variables in
this research paper regarding customer satisfaction towards online shopping. The correlation
coefficient table above shows the directions, strength and significance of the relationship among all
variables. A path coefficient is interpreted: if X changes by one standard deviation, Y changes by b
standard deviations (with b being the path coefficient). The table above shows that all the hypotheses
are accepted because the p-value is .000, indicating a positive relationship between the independent
and dependent variables.

4.4 Regression
Regression is a statistical method that helps analyses and understands the relationship between two or
more interest variables. The process is adapted to perform regression analysis that helps to understand
which factors are important, which factors can be ignored, and how they influence each other
variables.

Table below shows that the adjusted R square value equals to 0.732. Showing that 73.2% of customer
satisfaction is explained by this model

Model Summary
Mode R R Square Adjusted R Square Std. Error of the Estimate
l

1 .857a 0.734 0.732 0.31447

a. Predictors: (Constant), CSE, PQT, PFN
Table 5: Summary of R-Squared
a. Predictors: (Constant), Customer Shopping Experience, Product Quality, Price Fairness

ANOVAa
Model Sum of Squares df Mean Square F Sig.

1 Regression 93.412 3 31.137 314.866 .000b

Residual 33.821 342 0.099
Total 127.232 345
Table 6: Summary of ANOVA

a. Dependent Variable: CST

b. Predictors: (Constant), CSE, PQT, PFN

The researcher assessed the p-value for the F-test to test the significance level of total independent
variables. The data indicates that the p-value is 0.000, which is lower than the significance level of alpha
value 0.05. It determines that all independent variables in the model demonstrate too in tailored.
Therefore, the regression model is a significant model.
Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) -0.080 0.145 -0.555 0.579
PQT 0.318 0.049 0.261 6.484 0.000
PFN 0.239 0.049 0.224 4.913 0.000
CSE 0.461 0.046 0.462 9.985 0.000

Table 7: Summary of Coefficients Scale

b. Dependent Variables: Customer Satisfaction

The Coefficients table gives us the critical data to predict the Product Quality, Prices Fairness, Customer
Shopping Experience and whether the factors of Customer Satisfaction towards Online Shopping
contributes statistically significantly to the model. Based on the significant table below, we can assume
that the Product Quality, Prices Fairness, Customer Shopping Experience are all significant.

Value Result

0.05 – 0.001 Insignificant

0 Significant

-0.05 – (-0.001) Non-Significant

Table 8: Coefficients scale

From table 7 above we can assume that the Product Quality, Prices Fairness, Customer Shopping
Experience are all significant in the result.

This value characterises the slope of the line between the independent variable and the dependent
variable. Therefore, for the first independent variable, which is product quality, this would mean that
for every unit increases, the dependent variable increase by 0.318 units. Additionally, for the remaining
unit also increase in price fairness, the dependent variable increases by 0.239 units, while customer
shopping experience has the highest increases by 0.461 units. The following symbol is the standard
error for the unstandardized beta (SEB). This value is like the standard deviation for a mean. The more
considerable the amount, the more spread out the values are from the regression line. The more
distance out the amounts are, the less likely the significance can be identified.

Lastly, the t-test (t) applies to a diversity of problems. Also, it applies to the question of testing the
statistical significance of a regression coefficient. Under a set of assumptions that are generally referred
to as the Gauss-Markov conditions, the t-test can be used to test the significance of a regression
coefficient

4.5 Scatterplot Graph

Product Quality
 Figure 1: Product Quality Scatterplot

The figure above shows that the relationship between product quality and customer satisfaction that
has been evaluated. The line moving from the y-axis towards the upper right in the graph indicates a
positive correlation between product quality and customer's online shopping satisfaction. It is also
shown that linear regression is 0.529. Thus, there is a positive correlation between product quality and
customer satisfaction towards online shopping.

Price Fairness
 Figure 2: Price Fairness Scatterplot

The figure above shows that the relationship between price fairness and customer satisfaction. The line
moving from the y-axis towards the upper right in the graph indicates a positive correlation between
price fairness and customer online shopping satisfaction. It is also shown that linear regression is 0.568.
Thus, there is a positive correlation between price fairness and customer satisfaction towards online
shopping.

Customer Shopping Experience

 Figure 3: Customer Shopping Experience Scatterplot

The figure above shows that the relationship between customer shopping experience and customer
satisfaction. The line moving from the y-axis towards the upper right in the graph indicates a positive
correlation between customer shopping experience and factors of customer satisfaction towards online
shopping. It is also shown that linear regression is 0.568. Thus, there is a positive co-relation between
customer shopping experience and customer satisfaction towards online shopping.

SMARTPLS MODELLING
 Figure 4: Prediction Model of SEM

The model is presented with a direct path from the independent variables: product quality, price
fairness, customer shopping to the dependent variable, customer satisfaction towards online shopping.
All variable links are significant at the p-value, 0.000, have a path coefficient of 0.236, 0.226 and 0.487
respectively. There has been no indirect effect was hypothesized or evaluated. Based on figure 4 above,
customer shopping experience contributes to the highest relationship at the value of 0.487. The items
inside the customer shopping experience that contributed the most are CSE 1, CSE 4 and CSE 5.

The SmartPLS models had:

1. A direct path from product quality to customer satisfaction towards online shopping.
2. A direct path from price fairness to customer satisfaction towards online shopping.
3. A direct path from customer shopping experience to customer satisfaction towards online
shopping.

5. Discussion
Based on data analysis, the researchers determined the independent variables that influence customer
satisfaction: product quality, price fairness, and customer shopping experience. The researchers had
analyzed three factors by using correlation analysis. The correlation analysis was used to determine
whether all of these three factors correlate with customer satisfaction, depending on the dependent
variable.
Product Quality:
On findings, it shows that the relationship between product quality and customer satisfaction is
significant. The result interpreted that customer has received what they were expecting about the
product they purchase. Therefore, it directly means that they were satisfied with the product or service
offered. Quality and customer satisfaction have provided some insights into determining the amount of
satisfies for product experience. The more quality information provides or stated by the online retailers,
the higher the decisions could be made satisfactorily (Ludin & Cheng, 2014). In other words, product
quality is defined as improving the products or goods to meet the customer needs or wants to reach
customer satisfaction (Gaurav Akrani, 2013). So, when the product quality seems to meet or exceed
consumer expectation, the probability for them to repeat online purchasing will increase due to the
confidence level on the product quality offered, which is already experienced by the customer.
Price Fairness:
Next, based on the results of hypothesis testing, price fairness has a significant relationship
with customer satisfaction in online shopping. It means that price fairness determines satisfaction. This
study shows that the results coefficient of price fairness is 0.754, which shows that the results have a
positive relationship with customer satisfaction, which means customers were satisfied with the price
fair on online shopping. So, the price fairness itself and the way it is fixed and offered significantly
impact satisfaction, which means that price fairness determines satisfaction in customer satisfaction. It
proves that prices that have been set according to customer expectations will increase customer
satisfaction in online shopping. Price plays a significant role in why customers like to do online shopping
because, according to them, the price set on online shopping by what they will receive when they
purchase online.
Customer Shopping Experience:
Lastly, it is to determine the relationship between online shopping experience and consumer
satisfaction when they shop online. Based on the result findings, the customer shopping experience
shows a significant relationship between shopping experience and customer satisfaction. To provide a
pleasurable physical customer shopping experience for their customers, supermarkets originally
focused on offering more services to customers. The appearance of new food retailing formats later
picketed supermarkets to enlarge their services to get involved successfully with these newcomers.
Accenture (2015) has also acknowledged that customers' experience should be a priority for
businesses. The shopping experience is the compassion of customer experiences during the use of the
product and purchasing the product, which is the conveyance of product on time or not, the features of
the product, the features of the website of the product or the service provide. Thus, this positive result
shows that the customer was satisfied with online purchasing products and services.

6. Conclusion
 In conclusion, as we know the Internet has impacted people's lives where more people need to
have the Internet to survive. The reason is that the Internet has become popular and has also increased
Internet usage in Malaysia. To be related to the research study Internet has helped many people,
especially people who have a business, because through business, they can generate their operation
more efficiently. Also, Internet understanding people's need to buy through online shopping as people
nowadays adapt to modern technology in their shopping habits makes it more timesaving and more
effective.
So, in this research study, we can conclude that the independent variables (product quality,
price fairness and customer shopping experience) were positively related to dependent variables
(customer satisfaction) towards online shopping in Klang Valley. Besides, all the variables were
collected by using the primary data collected through online questionnaires. We have received 369
respondents, but in this research, we only need 346 respondents selected to utilize and examine the
hypotheses. Despite identifying the problems in customer satisfaction towards online shopping, we
need more research to know what other factors influence customer satisfaction that will treat them
more effectively and efficiently. Our research study has a limited time to collect the data because our
respondents quite a large sample. Soon, in our future research, We would like to collect the data from
the respondents with no limited time, not just in Klang Valley but other's area too, and maybe we can
you two types of method qualitative for online survey and quantitative research method for face to
face interview so that we can get an accurate data from the respondents.

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8. Appendix
 UNIVERSITI KUALA LUMPUR BUSINESS SCHOOL

FACTOR INFLUENCE CUSTOMER SATISFACTION TOWARDS ONLINE SHOPPING

PURPOSE OF RESEARCH:
We are the final year students from Bachelor’s in Management & Entrepreneurship from Universiti
Kuala Lumpur Business School. We are conducting a research on the factor that affecting customer
satisfaction towards online shopping in Klang Valley area. We seek for your cooperation and support to
answer our questionnaire. Your responses are important for me to understand which of the factors
would affect the customer satisfaction the most.
The questionnaire will take around 2 to 5 minutes to complete the answer.
Your responds will be strictly treated as confidential and will be used for the research purpose only.
Thank you in advance for participating in this survey. Your cooperation and participation in this survey
is highly appreciated.

INSTRUCTION:
The questionnaire has three sections to measure factors that influence customer satisfaction towards
online shopping. For section A, the demographic.

Section A (Demographic)
Instruction: Please respond to all questions that best describe your demographic. Please mark (/) only
one answer for every question.
1. Gender: 6. How frequently do you buy online?
Male
Once a week or more
Female Once every two weeks
Once a month
2. Age:
Rarely
18-24 years old

25-34 years old

35-44 years old

45-64 years old

65 and above

3. Race:

Malay
Chinese

Indian
Others

4. Marital status:

Single
Married

Others

5. Monthly income
RM 1,000 and below

RM 1,001 – RM 3,000
RM 3,001 – RM 5,000

RM 5,001 – RM 7,000
RM 7,000 and above

SECTION B: CAUSES
 PRODUCT QUALITY
The following statement is to measure factors of product quality towards customer satisfaction through
online shopping. Kindly please choose one and tick (/) the best that represent your point of view.
ITEMS Strongly Disagree Neutral Agree Strongly
Disagree
Agree
Product quality is very important to me

The product sold online is good and reliable.

The quality of the product meets my expectation.

The quality of the product meets my needs.

Quality product sold online has good features.

The product sold online has the same quality as in

physical store.

Online shopping is easier to choose good product

quality.

PRICE FAIRNESS

The following statement is to measure factors of price fairness towards customer satisfaction through
online shopping. Kindly please choose one and tick (/) the best that represent your point of view.

ITEMS Not Dissatisfied Neutral Satisfied Really

Dissatisfied
Satisfied
The price set is in accordance with the quality of
the product
The price of the product meets my expectations

The price of online shopping is fair

The price in online shopping is worth what I have
paid
The price in online shopping is acceptable

The price in online shopping is reasonable

CUSTOMER SHOPPING EXPERIENCE

The following statement is to measure factors of customer shopping experience towards customer
satisfaction through online shopping. Kindly please choose one and tick (/) the best that represent your
point of view.
 ITEMS Strongly Disagree Neutral Agree Strongly
Disagree
Agree

I am happy and prefer to repurchase through

online shopping.

Shopping through online platform is easier

and faster.

I feel safe when using online shopping

platform security system.

I am satisfied with the variety of choices on

online shopping platform.

I feel comfortable by ordering products

through online shopping platform.

I have flexible time when shopping through

online platform.

SECTION C: EFFECT
CUSTOMER SATISFACTION

ITEMS Strongly Disagree Neutral Agree Strongly

Disagree
Agree
I am satisfied buying through online shopping

Online shopping always satisfied my needs.

I have positive experience buying through online
shopping.
I am satisfied with the price of product through
online shopping.
I am satisfied with the quality of product through
online shopping.
I likely to recommend online shopping to my
family and friends.
The following statement is to monitoring customer satisfaction through online shopping. Please tick (/)
the best that represent your point of view.
 AUTHOR AND CO-AUTHOR(S) INFORMATION
Manuscript’s title:
The Factors Affecting Customer Satisfaction Towards Online Shopping In Klang Valley

Complete information is mandatory for the corresponding author. Other authors should have affiliation,
email, and institution postal address. Please indicate the corresponding author with (*).

Author’s name: Sharina Osman

Phone:
Mobile: +601964604774
Affiliation: Business School, Universiti Kuala Lumpur, Malaysia
Institution address: 1016, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia
Research area: Management
Orcid ID (If any): 0000-0001-8220-2439

Co-author’s name: Nurul Iman Adlina Binti Tauffek Afandi

Mobile: +0192978025
Affiliation: Business School, Universiti Kuala Lumpur, Malaysia
Institution address: 1016, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia
Research area: Management
Orcid ID (If any):

Co-author’s name: Syarifah Nurelfi Hajira Binti Syed Hanasudin

Mobile: +0
Affiliation: Business School, Universiti Kuala Lumpur, Malaysia
Institution address: 1016, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia
Research area: Management
Orcid ID (If any):

Co-author’s name: Aliy Wafiy Bin Norshaharom

Mobile: +0173643037
Affiliation: Business School, Universiti Kuala Lumpur, Malaysia
Institution address: 1016, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia
Research area: Management
Orcid ID (If any):