RESM7901

ASSIGNMENT 2

LITERATURE REVIEW

Lecturer: Prof. Dr. Faridah Ibrahim

NAME MATRIC NO
Abdulah Said Abdulle 213923050
1.0 LITERATURE REVIEW
1.1 Introduction

Since last two decades the E-commerce growth has increase exponentially due to the fast-ongoing
technology. An e-commerce process begins when the seller exposes products on a website, and
customer show acceptance, evaluate the product’s features, prices and delivery options, decide to
buy product and then check out. (Ribadu & Ab. Rahmana, 2019).

Satisfaction is a sense of happy or frustration from customer by comparing the performance of the
product and what they are expected.

According to (Dutka, 1994) customer satisfaction could be measured based on three attributes
which are:

I. Attribute related to product

II. Attribute related to service like guarantee or warranty, delivery, and solving customer
complaints.
III. Attributes related to purchase like communication, convenience and company reputation.

The purpose of this paper is to make "literature review" on number of articles related to customer
satisfaction during their online shopping and their concerns.

1.2 Information quality

Information quality in E-commerce industry means the maximum level of accuracy, relevance,
timeliness, completeness information of the product that presented on the website. Online shopping
customers generally expect healthy and quality information of the products or services to help them
to make their own purchase decision.

(Tzeng & Sarigollu , 2021) study emphases the importance of the information quality because it
attributes for online visitors to evaluate the effect of the website they using, particularly in the pre-
purchase stage and searching products. Therefore, well-designed internet-sites and mobile
application encourage customers to navigate and search relevant quality information smoothly,
minimize their uncertainty.
In fact, customers who are not satisfied with the online presented information will leave without
making any purchase because product information quality is the most significant factor that directly
effect customer satisfaction. This idea is supported by (Al-Tit, 2020) his research underlined that
the information quality provided on an online store represents the E-retailer’s quality dimension
that contributes to developing customer loyalty as long as it is accurate and relevant.

1.3 Customer data and privacy protection

The major reason for the increasing of privacy concerns is that now-days consumers are more aware
on how big companies are benefiting from their own data. (Wang, Chen, Xiao , & Lin, 2021)
research states that 69% of online marketplace consumers are concerned the way had been collected
their personal data in mobile apps. In fact we know that, for long time online companies like
Amazon, Alibaba, Facebook have been collecting customers personal data like location-tracking
and other kinds of personal identifiable information without the awareness of customers because
these personal information are valuable for the companies, they are seeking to know or understand
priorities and unmet need of its customers, these collection of data helps them to develop new
products, also advertising personalization is another reason that motivates big online-base
companies to collect customers data.

On other side, Governments are chasing to legislate rules and regulation to protect consumers
personal information. for instance, in 2018 European Union Counsel had legislated General Data
Protection Regulation (GDPR). (Goswami, 2020). These rules resulted from citizens pressure on
governments to prevent online-based companies’ violation on their privacy data. According
(Witzleb, 2020) article mentioned that 83% of Australian wants from their government to do more
actions to protect the privacy of their data. Rules and regulations will force big companies to not
hide their collection data efforts, and it must be done with consumers consent.

Online-based companies must increase their perceived privacy protection to satisfy their customers,
because when customers realize that their identity and related transaction information are protected
then their satisfaction will increase and will enhance customers to share more private information
on internet to complete online shopping. Such of these rules and regulations, US imposed 5 million
dollars for violating user privacy data, scoring as one of the biggest penalties had imposed by US
government for any violation. (BBC, 2019)
 1.4 Delivery and customer satisfaction

Delivery on time plays a major role for customer satisfaction and also planting their mind to
become loyal for specific brand due to their delivery on time. Because customers are expecting that
online-based companies will meet the promised delivery date, therefore it is essential to meet the
right expectations of customers. According to (Kovač, Naletina, & Kuvač, 2017) study delivery is
the last impression a customer has on online company, if they experience a problem, it is going to
leave them with a negative view of company’s products and it is unlikely repeat the purchase again
from that company. This concept is supported by (Raman, 2019) he beliefs that customer service
such as easy return policies and faster delivery services, are significantly affecting customers’
purchase decision. However, on-time delivery problems will not only result in loss of business
reputation but will also affect many other parts of business’s supply chain and will damage
customer relationship and long-term success.

A survey conducted by (Material Handling & Logistics, 2017) demonstrated that 87% of online
shoppers identify fast delivery as a key factor in the decision to shop with E-commerce brand again.
Also, 67% of online shoppers would pay more money to get same-day delivery if they need the
package by deadline, such as anniversary. Comparatively, 47% would pay more for same-day
delivery because they want to receive their order faster.

1.5 Conclusion

In this regard, my review of these various articles on online-based customers satisfaction on

different aspects, I strongly belief that customer satisfaction prediction is critical element due to the
fast ongoing technology and the preference and tastes quick changing by customers specially
millennials, Therefore, I would recommend for future studies to produces valuable techniques and
tools that enables online market companies to predict exact expectation of the customers in order to
maximize their satisfactions and meet their needs.

I encourage also, to increase the number of expert individuals in this area, because there will be a
need to generate more studies and solution that will be a remedy for the current/future problems that
faced by online shoppers, in fact the market nature is shifting from traditional market to online-
based market and its users is increasing dramatically.
In conclusion, independent variables like compatibility and the online-based customers satisfaction
of the products and services offered by E-commerce companies can influence consumers’ purchase
decision with the exposed products and services.

References
Al-Tit, A. (2020). E-commerce Drivers And Barriers And Their Impact On E-customer Loyalty In Small And
Medium-sized Enterprises. Business: Theory and Practice, Vol 21(1).

BBC. (2019). Facebook to pay record $5bn to settle privacy concerns. BBC. Retrieved from
https://www.bbc.com/news/business-49099364

Dutka, A. F. (1994). AMA Handbook for Customer Satisfaction. NTC Business Books.

Goswami, S. (2020). The Rising Concern Around Consumer Data And Privacy. Forbes Technology Council.
Retrieved from https://www.forbes.com/sites/forbestechcouncil/2021/12/30/can-a-future-
forward-curriculum-help-encode-tech-creativity-in-young-minds/?sh=7df125f42f73

Kovač, I., Naletina, D., & Kuvač, A. (2017). THE SIGNIFICANCE AND IMPORTANCE OF DELIVERY. Research
gate. Retrieved from
https://bib.irb.hr/datoteka/909872.THE_SIGNIFICANCE_AND_IMPORTANCE_OF_DELIVERY_IN_ELE
CTRONIC_COMMERCE.pdf

Material Handling & Logistics. (2017). Delivery Time Top Priority for Online Shoppers. Retrieved from
https://www.mhlnews.com/transportation-distribution/article/22051729/delivery-time-top-
priority-for-online-shoppers

Raman, P. (2019). Understanding female consumers’ intention to shop online: The role of trust,
convenience and customer service. Asia Pacific Journal of Marketing and Logistics, Vol: 31(4).

Ribadu, M. B., & Ab. Rahmana, W. (2019). An integrated approach towards Sharia compliance E-commerce
trust. Applied Computing and Informatics, Vol: 15, pages 1-6.

Tzeng, S.-Y., & Sarigollu , E. (2021). Factors affecting customer satisfaction on online shopping holiday.
marketing intelligence & planning journal, Vol 39(4).

Wang, S., Chen, Z., Xiao , Y., & Lin, C. (2021). Consumer Privacy Protection With the Growth of AI-
Empowered Online Shopping Based on the Evolutionary Game Model. frontiersin.org. Retrieved
from https://www.frontiersin.org/articles/10.3389/fpubh.2021.705777/full

Witzleb, N. (2020). Australians want tougher privacy laws. theconversation. Retrieved from
https://theconversation.com/83-of-australians-want-tougher-privacy-laws-nows-your-chance-to-
tell-the-government-what-you-want-149535