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Journal of Information Technology Case and Application

Research

ISSN: 1522-8053 (Print) 2333-6897 (Online) Journal homepage: https://www.tandfonline.com/loi/utca20

Factors impacting customer satisfaction: an


empirical investigation into online shopping in
India

Urvashi Tandon & Ravi Kiran

To cite this article: Urvashi Tandon & Ravi Kiran (2019) Factors impacting customer satisfaction:
an empirical investigation into online shopping in India, Journal of Information Technology Case
and Application Research, 21:1, 13-34, DOI: 10.1080/15228053.2019.1609779

To link to this article: https://doi.org/10.1080/15228053.2019.1609779

Published online: 06 May 2019.

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JOURNAL OF INFORMATION TECHNOLOGY CASE AND APPLICATION RESEARCH
2019, VOL. 21, NO. 1, 13–34
https://doi.org/10.1080/15228053.2019.1609779

Factors impacting customer satisfaction: an empirical investigation


into online shopping in India
Urvashi Tandona and Ravi Kiranb
a
Maharaja Agrasen University, Solan, India; bThapar University Patiala, Patiala, India

ABSTRACT
The study examines various factors influencing online shopping in India .
The research analyzes website quality and other drivers of online shopping
to evaluate their impact on customer satisfaction. It also analyzes “Social
Media interactions” and “Pay on Delivery (POD)” mode of payment as new
drivers of online shopping. Data collected from a sample of 500 online
shoppers was analyzed using structural equation modeling. In this study
both social media interactions and POD emerged as significant drivers of
online shopping. These drivers of online shopping along with website
quality had significant impact on customer satisfaction. The results would
motivate e-retailers to capitalize on social media and POD mode of pay-
ment to convert traditional shoppers to become online shoppers.

Introduction
Online shopping has significantly increased in the past two decades and has become a legitimate
alternative to brick-and-mortar mode of shopping for consumers. Online shopping has also gained
momentum in recent years in developing countries due to factors like rapid access to product related
information, time convenience, delays due to traffic jams, limited parking space and above all Pay-On-
Delivery mode of payment(POD). The Indian e-commerce estimated level of $64 billion by 2020 and
$200 billion by 2026 is likely to surpass online shopping level in U.S by the year 2034 (IBEF, 2018).
Today, in the second largest smart-phone market in the world, there is literally a shopping mall in every
Indian’s pocket. With Internet penetration expected to almost double to 60% by 2022, the number of online
shoppers is also expected to grow rapidly to 150–200 million during the same period. (PWC, 2018, p. 4)

The increase in online shopping in India is mainly due to POD which has been adopted as the mode
of payment by around 80% of online shoppers. This is evident from reported high collections Rs.
2.8 billion through POD in India in 2014 (ASSOCHAM, 2014). According to a study by Federation
of Indian Chambers of Commerce and Industry (FICCI) and Indian Institute of Foreign Trade
(IIFT), total potential of Business to Consumer (B2C) in India was estimated to be US$ 26 billion in
2017 of which $3 billion can be achieved by 2020 (IBEF Report, 2018). Internet penetration in India
reached 430 million people in 2016 but only 14% of these people shopped online (Sushma, 2017).
India’s vast geography consisting of 6000 small cities and 600,000 villages presents a logistic
challenge to online retailers to find profitable ways of delivering products in these locations
(Nielson Report, 2017). Clearly, rise in internet penetration in India has not been converted into
increased online shopping numbers. At the end of 2017, online retail was 2% of Indian Retail
Industry (Forrester Research, 2018). Therefore, it is necessary to explore factors that will help the
online retailers to engage more consumers to buy products and services online.

CONTACT Urvashi Tandon urvashiguptav@gmail.com Maharaja Agrasen University, Solan, India


Color versions of one or more of the figures in the article can be found online at www.tandfonline.com/utca.
© 2019 Urvashi Tandon and Ravi Kiran
14 U. TANDON AND R. KIRAN

In online shopping, as in traditional brick-and-mortar shopping, customer satisfaction can have


a significant impact on continuation of current customers or attainment of new customers. The
importance of customer satisfaction has been recognized in the literature (Guo, Ling, & Liu, 2012;
Tandon, Kiran, & Sah, 2016). It should be noted that not only a cautious but also a casual customer is
likely to evaluate past customer reviews from various sources including social media (SM) and yelps to
confirm the authenticity of the claims on an e-retailer’s website. In this context, it makes sense to
explore and learn about attributes of website quality and other factors that contribute to customer
satisfaction during each phase of customer service life cycle (Celik, 2016; Cenfetelli & Benbsat, 2002).
Most past research on online retailing in Indian context has analyzed the process for its adoption
and identification of the factors which lead to online purchase (Khare & Rakesh, 2011; Singh, Dalal,
& Spears, 2005). Further, with limited sample sizes (less than 300), majority of the research studies
have validated certain drivers or barriers (Kandulapati & Bellamkonda, 2014; Kumar & Kashyap,
2018) of online shopping. A comprehensive model and a methodological study covering impact of
website quality and other drivers on buying online in the Indian context (and by extension in the
context of developing countries) is missing. Further, website quality has been considered as a solitary
construct in previous studies (Shin, Chung, Oh, & Lee, 2013; Tandon, Kiran, & Sah, 2017; Udo,
Bagchi, & Peeter, 2010), while excluding other drivers of online shopping. The present research
covers diverse factors beyond website quality that impact customer satisfaction.
The reported frameworks for this research theme have been developed principally in the western
context of industrialized countries (Bathgate, Omar, Nwankwo, & IYinan, 2006; Palvia, 2013). Even
though, there has been a significant increase in online shopping in India and other emerging economies,
yet the research reported in these economies lacks the vigor and dynamism prevalent in research
undertaken in western countries (Omar, Bathgate, & Nwankwo, 2011). Emerging markets have their
socio-economic and regulatory aspects that are different from western countries. This necessitates
a research to empirically analyze the validity of the models of developed world for developing and
emerging economies having diverse cultures (Omar et al., 2011; Palvia, 2013). In contrast to developed
countries, e-Commerce infrastructure is extremely underdeveloped in emerging countries
(Kapurubandara, 2009). Unlike in developed countries, internet access in the developing countries is
not only limited and slow but expensive as well (Hinson & Boateng, 2007). Suboptimal online payment
infrastructure and limited access to e-payment facilities hinder e-shopping in most of the developing
countries (Mbarika, Meso, Musa, Kah, & Amougou, 2006). Consequently, the models applicable for
developed countries need to be validated or modified in developing countries for broader acceptance.
The next section covers theoretical background with relevant models for introduction and
acceptance of IT innovations including TAM and UTAUT, hypotheses development and model
formulation, research methodology, data analysis, discussion of results, implications for researchers
and practitioners, and finally limitations of this research and directions for future research.

Theoretical background
Many models for introduction and acceptance of IT innovations have been developed and validated
by a number of previous studies. These models include: the Technology Acceptance Model (TAM;
Davis, 1989), the Theory of Planned Behavior (Ajzen, 1991), extended TAM (Venkatesh & Davis,
2000), the Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh, Morris,
Davis, & Davis, 2003), the model combining TAM and the Theory of Planned Behavior (Taylor &
Todd, 1995), the Model of PC Utilization (Thompson, Higgins, & Howell, 1991), and the Social
Cognitive Theory (SCT; Bandura, 1986).

Technology acceptance model (TAM)


TAM since the last three decades has been considered as the dominant model in understanding the
predictors of human behavior and users’ behavioral intention (BI) for accepting or rejecting
JOURNAL OF INFORMATION TECHNOLOGY CASE AND APPLICATION RESEARCH 15

a technology innovation. TAM involves two primary predictors- perceived ease of use (PEOU),
perceived usefulness (PU) besides BI as the mediating variable.

Unified theory of acceptance & use of technology (UTAUT)


Venkatesh et al. (2003) after consolidating and testing variables in eight dominant theories and
models, namely: the Theory of Reasoned Action (TRA), the TAM, the Motivational Model, the
Theory of Planned Behavior (TPB), a combined TBP/TAM, the model of PC Utilization, Innovation
Diffusion Theory (IDT) and SCT, put forward UTAUT. The proposed UTAUT consisted of four
core variables namely performance expectancy, effort expectancy, social influence and facilitating
conditions. It also considered four moderating variables, viz. gender, age, experience and voluntari-
ness of use. Since its publication, there have been many applications and replications of the entire
model or part of it in different organizational and cultural settings. A number of researchers have
attempted to examine UTAUT in new contexts and in different cultural settings like China (Lian &
Yen, 2014), Iran (Yaprakli, Kalbakhani, & Rasouli, 2013) and India (Sareen & Jain, 2014).
A modified version of UTAUT model was proposed and tested as UTAUT2 model which incorpo-
rated three new constructs (i.e., hedonic motivation, price value and habit) that focussed on new
theoretical mechanisms in a consumer context (Venkatesh, Thong, & Xu, 2016, p. 329). Individual
differences namely age, gender and experience were hypothesized to moderate their effect on BI and
technology use. Compared to UTAUT, the extensions proposed in UTAUT2 produced a substantial
improvement in variance explained in BI (56% to 74%) and technology use (40% to 52%).
Performance expectancy (similar to PU in TAM and relative advantage) is the degree to which an
individual believes that using a system will help increase his/her job performance. Effort expectancy
(similar to perceived ease of use in TAM and complexity in DOI) is the degree of effort expected to
learn and use the new system. Social influence (similar to subjective norms in TAM2) is the degree
to which an individual perceives that others believe he/she should use the system. Facilitating
conditions (similar to perceived behavioral control in TAM-TPB) are the degree to which an
individual believes that an organizational and technical infrastructure exists to support use of the
system. Hedonic motivation (HM) is the fun or pleasure derived from using a technology. Price
value (PV) is customer’s cognitive trade-off between the perceived benefits of the applications and
monetary cost from using them. Habit is the extent to which people tend to perform behaviors
automatically because of learning.
In India, initially the consumers had to provide credit/debit cards details while making payments
for orders placed online. The Indian customers being suspicious of paying through credit/debit cards
depicted a controlled behavior toward shopping online. This remained a great challenge for the
companies planning to carry out e-business here. Online retailers came out with an alternative non-
electronic payment method ‘Cash-on-delivery (COD)’ mode of payment which created trust among
Indian customers to avoid receiving defective products. After1 demonetization in November 2016
and continuous effort of the present government to promote digitization, online retailers modified
COD by introducing payment through debit/credit card but only after delivery of the product. This
persuaded online retailers also for timely delivery of the ordered product, thereby ensuring better
services to enhance customer satisfaction. Various studies have acknowledged POD mode of pay-
ment as a main stimulator of online shopping, but have not validated it as a construct in their studies
(Hussain, Wallace, Tassabehji, & Khan, 2007; Jadhav & Khanna, 2016; Thakur & Srivastava, 2015;
1
The process of demonetization involves either introducing new notes of the same currency or completely replacing the old
currency with new currency. Indian government adopted demonetization on 08 November 2016 to tackle with black money
problem. The latest move of ‘Demonetization’ of currency notes of Rs. 500 and Rs. 1000 had its impact on traditional shopping as
well as internet shopping. With demonetization hitting hard, the majority of ecommerce websites, such as Flipkart, Amazon,
Snapdeal, Jabong and many more disabled their Cash on Delivery (COD) mode of payment on temporary basis. The initial phase
of demonetization was not favorable for online sellers and many of their COD (cash of delivery) orders got cancelled. After ease
in sufficient availability of currency note of Rs 500 and Rs 1000, the online purchasing mode picked up again and is going at
a faster rate now.
16 U. TANDON AND R. KIRAN

Wolner-RoBlhuber, Burger, & Gussenbauer, 2013) . The present study therefore analyzes POD mode
of payment as a driver of online shopping.
In UTAUT2 only mobile internet was taken into consideration and Venkatesh, Thong, and Xu
(2012) invited researchers to validate the model under varied conditions of different countries.
Venkatesh et al. (2016) suggested that the main effects in UTAUT2 can serve as a baseline model for
future research for parsimony and refining current context effects and/or identifying new context
effects (p.346). According to Williams, Rana, and Dwivedi (2015) UTAUT has been tested by
exploring alternative relationships between its constituent components in various contexts and
environments, but there are still ample and clear opportunities for researchers to engage with and
further shape and develop the field (p. 470). The present study tests the predictors of UTAUT2
model in online shopping context to make the model acceptable and more suitable for those
countries which are technologically less advanced. This is important because developing countries
differ in terms of institutional infrastructural contexts basically because of socio-economic features
and regulatory aspects. Therefore, it is for the first time that UTAUT2 is being tested in the context
of India by including Pay-on-delivery (POD) mode of payment and Social Media Interactions as
drivers of online shopping. Further, these constructs have been validated through discriminant
validity and composite reliability also.

Hypotheses development and model formulation


Customer satisfaction as a dependent variable
Customer satisfaction is the difference between consumption expectation and consumption experi-
ence and it is achieved when the final delivery experience is as per the expectation (Khristianto,
Kertahadi, & Suyadi, 2012). Customer satisfaction plays a pertinent role in online shopping, as it
influences customers’ decision whether to continue to shop online or not. Customer satisfaction has
been widely examined by researchers with respect to online shopping (Liu, He, Gao, & Xie, 2008;
Szymanski & Hise, 2000; Tandon et al., 2016). Szymanski and Hise (2000) identified convenience,
website design, security, information and merchandise variety as determinants of customer satisfac-
tion. Tandon et al. (2016) analyzed customer satisfaction and confirmed perceived usability and PU
as factors leading to customer satisfaction. Alam and Yasin (2010) identified website design,
reliability, product variety and delivery performance as four dimensions of customer satisfaction
derived from online shopping. Given above literature review, customer satisfaction is selected as
a dependent variable in this study.

Website quality as an independent variable


Online shopping is a complex process which involves interface and interaction between man and
machine. It comprises of various sub processes which include downloading images of products,
paying online or through POD, navigating the website, tracking orders etc. Wolfinbarger and Gilly
(2003) found that website quality is strongly related to website design and its fulfilment and
reliability capabilities; customer service mildly influenced e-tail quality and attitude toward website;
while surprisingly, security and privacy were found insignificant in predicting overall quality. Ahn,
Ryu, and Han (2007) considered website service quality a multidimensional construct encompassing
information quality, system quality, and service quality. Calisir, Bayraktaroglu, Gumussoy, Topcu,
and Mutlu (2010) confirmed ease of navigation as a significant and important variable of website
attributes. Wang, Hernandez, and Minor (2010) corroborated that web usability and web aesthetics
are vital dimensions of website service quality. Kuo, Wu, and Deng (2009) confirmed that website
service quality influences customer satisfaction, which, in turn, influences post-purchase intention.
Shin et al. (2013) identified website service quality as a composite of six dimensions: shopping
convenience, site design, information usefulness, transaction security, payment system, and customer
JOURNAL OF INFORMATION TECHNOLOGY CASE AND APPLICATION RESEARCH 17

communications which enhance their targets. The website quality helps online retailers to retain
customers. From these studies, we can understand that for meeting the requirements of customers, it
is essential to lay emphasis on website quality. Website quality can be construed as a higher level
construct comprising of lower level constructs and as such bundling them together in a single
composite score may not be helpful (Koufteros, Babbar, & Kaighobadi, 2009). Website quality of
online shopping (second level of abstraction) can be conceptualized as amalgamation of security and
privacy, ease of ordering, website design, ease of navigation, and customization of product. Given
above literature survey, the following hypothesis is framed:

H1(a): Website quality` is a multidimensional construct significantly determined by security and


privacy, website design, ease of ordering, ease of navigation and customization of product.

Researchers have explored various features of website (Shin et al., 2013) website design (Guo
et al., 2012) and website navigability (Lee & Kozar, 2012) that lead to customer satisfaction.
Satisfaction on first visit motivates repeated visits to a website (Ha & Janda, 2008). Liu et al.
(2008) suggested information quality, website design, merchandise attributes, transaction capability,
security, payment, delivery and customer service as strong antecedents of customer satisfaction. Luo,
Sulin, and Zhang (2012) also confirmed that retailer’s service quality and website design play
a significant role in enhancing customer satisfaction. The ability to customize online purchase
process has also been associated with an increase in customer satisfaction (Thirumalai & Sinha,
2011). Clearly, it appears that website quality leads to customer satisfaction. To validate this relation,
following hypothesis is framed:

H1(b): Website quality has a significant impact on customer satisfaction.

Drivers of online shopping


UTAUT2 is a comprehensive model covering most of the predictors of technology adoption. This
study adopts performance expectancy, effort expectancy, facilitating conditions, social influence,
hedonic motivation, price value and habit from UTAUT 2 as drivers of online shopping. Two new
relationships – SM and Pay on Delivery (POD) have been added to analyze their effect on customer
satisfaction.
Performance expectancy and effort expectancy have emerged as the strongest predictors influen-
cing online shopping as highlighted in previous studies of Yaprakli et al. (2013) and Seffah,
Mohamed, Habieb-Mammar, and Abran (2008). Lian and Yen (2014) found performance expec-
tancy and facilitating conditions as major drivers of online shopping. However, effort expectancy
and facilitating conditions didn’t emerge as significant variables. Foon and Fah (2011) and
Ghalandari (2012) confirmed that performance expectancy, effort expectancy, social influence and
facilitating conditions significantly influence users’ behavior in e-banking services. Sareen & Jain,
2014) found significant relationship of effort expectancy and social influence with BI to buy, but
performance expectancy and facilitating conditions emerged insignificant. Al-Gahtani, Hubona, and
Wang (2007) investigated applicability of UTAUT in Saudi Arabia and found significant effect of
performance expectancy and effort expectancy on the customers where as social influence and
facilitating conditions emerged insignificant. Im, Kim, and Han (2011) examined the relationships
of constructs in UTAUT model on customers of US and Korea and found that the impact of
performance expectancy and effort expectancy on behavior intentions are greater in US sample than
in Korean sample. Schepers and Wetzels (2007) also supported this and found that social norms are
important in influencing users’ attitude toward technology use. On the contrary, some studies like
Aoun, Vatanasakdakul, and Li (2010) have reported insignificant relationship of social influence on
technology adoption. Similarly, the remaining three constructs of UTAUT2 viz., hedonic motivation,
price value and habit have also been validated in few studies (Baptista & Oliveira, 2015; Rodriguez &
18 U. TANDON AND R. KIRAN

Trujillo, 2014). Yang (2010) reported significant impact of price value, hedonic motivation along
with performance expectancy and effort expectancy, but insignificant impact of facilitating condi-
tions and habit on e-learning. The cost and pricing structure have a significant impact on customers’
technology use. The price value is positive when the benefits of using a technology are perceived to
be greater than the monetary cost and such price value has a positive impact on intention
(Venkatesh et al., 2012). Rodriguez and Trujillo (2014) applied UTAUT2 to study online air ticketing
purchase by Spanish customers and all constructs of UTAUT2 were found significant except social
influence and habit. Baptista and Oliveira (2015) studied M-banking adoption and confirmed
performance expectancy, hedonic motivation and habit as significant variables, where as Albugami
and Bellaaj (2014) found performance expectancy, effort expectancy and habit as significant vari-
ables. Thus, there is no uniformity in the findings and there is a need to understand the importance
of performance expectancy, effort expectancy, facilitating conditions, social influence, price value,
hedonic motivation and habit in stimulating online purchase. Accordingly, the hypotheses pro-
posed are:

H2(a): Performance expectancy, effort expectancy, social influence and facilitating conditions are
the drivers of online shopping.

H2(b): hedonic motivation, price value and habit are the drivers of online shopping.

SM includes a wide range of online, word-of-mouth forums including blogs, company-sponsored


discussion boards and chat rooms, consumer-to-consumer email, consumer product or service
ratings websites and forums, Internet discussion boards and forums, and social networking websites
(Mangold & Faulds, 2009, p. 358). SM are web-based services (also known as “Social Networking
Sites”) which refer to network of relationships and interactions among different users (groups or
individuals) (Kempe & Kleinberg, 2003). Social Networking sites such as Facebook, Instagram and
Twitter enable users not only to maintain acquaintances among themselves but also with others
(Ellison, Steinfield, & Lampe, 2007). The Internet and the use of SM have fundamentally modified
the consumer decision process (Saravanakumar & Suganthalakshmi, 2012). Sharma and Rehman
(2012) confirmed that positive or negative information about a product or a brand accessible on the
SM has noteworthy impact on consumers’ purchase behavior. The research by Chandra, Goswami,
and Chouhan (2012) into the attitudes of undergraduate and post graduate students confirmed that
SM advertising stimulated the purchase decision and resulted in more competitive prices, but held
unfavorable attitudes in terms of various cognitive (information) and affective (enjoyment, enter-
tainment value and authenticity) components (lower level pyramid Activities). Heinrichs, Lim, and
Lim (2011) and Parise (2009) also highlighted that social networking sites are facilitating interaction
and joining the virtual communities based on common interest and opinions. Bernoff and Li (2008)
proposed that online social networks are credible and appropriate source of information therefore
consumers tend to get the feedback about products from their active social networks. Akar and
Topçu (2011) developed a consumer-based attitude scale comprising factors to reflect the attitudes of
consumers toward SM marketing. These factors are as follows: consumer attitudes toward SM
marketing, acceptance of SM marketing, SM use, SM knowledge, SM monitoring, foresight on
SM, and fears regarding SM marketing. Hajli (2014) confirmed positive impact of social interactions
on buying intentions of customers and their PU of social networks. Ioanăs and Ivona (2014) studied
the impact of SM on consumer behavior and confirmed that consumers prefer online buying for
convenience. Authors further stated that most of the online shoppers check the product information
before ordering. Muda, Mohd, and Hassan (2016) investigated online shopping behavior of Gen Y in
Malaysia and concluded that Gen Y in Malaysia buys mostly from online retailers operating via
Facebook and Instagram. Taking support from previous literature, SM has been considered as
a driver in the present study.
JOURNAL OF INFORMATION TECHNOLOGY CASE AND APPLICATION RESEARCH 19

H2(c): social media interactions are drivers of online shopping.

The recent increase in online shopping in India may be attributed to “Cash-on-delivery” (COD)
mode of payment. Before the introduction of Cash on Delivery mode of payment, most of the online
retailers provided payment options through credit card/debit cards where consumers had to input
card/payment details online. These payment options inhibited Indians to shop online. Moreover, low
penetration of credit card and debit card in Indian society also restrained people to shop online
leading to distrust among consumers. COD solved the distrust and fear about delivery of faulty and
wrong products to a great extent because consumers get to inspect the product and be satisfied
before paying. Further, North Indian consumers are very open to online shopping, but prefer Cash
on delivery, indicating a deficit of trust on electronic transactions (India Retailing Bureau, 2016).
Importantly, COD option requires online retailers to transport the right product and deliver swiftly
to ensure customer satisfaction. Further, few Indian studies like Jain (2014), Thakur and Srivastava
(2015) and Tandon et al. (2017) have mentioned COD (Cash-on-delivery) mode of payment as
a catalyst for online shopping, as it is the preferred mode of payment. But its relationship with
customer satisfaction as a construct has not been validated. Hussain et al. (2007) highlighted issues
regarding methods of payments for Internet purchases in India, China and Pakistan and concluded
that majority of customers in these countries consider POD as the most convenient and time saving
mode than credit card. Jadhav and Khanna (2016) suggested that COD followed by debit card and
net banking are the modes of payment, but COD was analyzed as a single item in the construct of
perceived ease of use. Jain (2014) focussed on customers’ decision making process in Indian
environment and concluded that majority of customers feel secure while shopping online and the
most preferred mode of payment is Cash-on-delivery mode of payment. Polasik and Fiszeder (2009)
analyzed the factors influencing the acceptance of the seven major payment methods (POD, online
payment integrator, card payment, bank transfer, pay-by-link, virtual payment provider and pay-
ment-in-person) by online retailers in Poland. Three crucial payment methods in e-commerce were
identified: (1) POD with 39.5% of transactions and 40.6% turnover value; (2) bank transfer to the
shops’ bank account with 28.7% of transactions and 29% of turnover value and (3) online payment
integrators with 15.9% of transactions and 16.9% of turnover value, including all available methods
of payment. A study by Chiejina and Olamide (2014) on Nigerian customers highlighted ‘pay-on-
delivery’ mode of payment as a major trust builder between customers and online retailers. The
study of Wolner-RoBlhuber et al., 2013) also confirmed that POD is still very common in Austria
with a share of 24% in total payments. Akroush and Al-Debei (2015) suggested that adopting POD
mechanism in Jordan was found to be effective and successful in raising the level of trust and
attitude toward online shopping. Pay-on-delivery has been suggested and considered in most of the
past studies, but has not been empirically validated as a construct.
Based on above discussion, the following hypothesis has been proposed:

H2(d): pay-on-delivery mode of payment (POD) is a drivers of online shopping.

In technologically developing nations like India, it is meaningful to identify which factors of online
shopping have a significant positive association with customer satisfaction. A customer’s decision to be
faithful toward a particular technology depends upon the sum of many small encounters and if contended
they will adopt the technology. In the present study, performance expectancy, effort expectancy, facilitating
conditions, social influence, price value, hedonic motivation, habit, security and privacy and ease of
ordering are conceptualized as drivers of online shopping. Therefore, following hypothesis is proposed
to understand the effect of drivers of online shopping and customer satisfaction:

H2(e): There is a significant positive influence of drivers of online shopping on customer


satisfaction.
20 U. TANDON AND R. KIRAN

Model formulation
The proposed model (Figure 1) based on literature review contains latent variables or constructs
(Website quality and drivers) and paths (arrows). Paths show relationships between latent variables
and dependent variable (customer satisfaction). The high level of security and privacy, website
design, ease of ordering, ease of navigation and customization are antecedents of website quality.
Performance expectancy, effort expectancy, facilitating conditions, social influence, hedonic motiva-
tion, POD mode of payment, price value, habit and SM are antecedents of drivers of online
shopping. The drivers of online shopping and website quality influence customer satisfaction.
Attention on these variables may lead to customer satisfaction. This will help online retailers to
increase confidence in consumers toward online shopping and may bring an affirmative change in
the attitude of users.
SEM was preferred over other techniques as SEM allows in developing complex path models with
direct and indirect effects. This allowed us to have a more accurate model depicting the causal mechan-
isms that we were interested in. This was precisely the reason why SEM with AMOS 20 was used.

Research methodology
Survey instrument
The target population in this study has been online shoppers in India. The study was conducted in North
Indian states namely Jammu and Kashmir, Himachal Pradesh, Punjab, Haryana, Delhi and Uttar Pradesh.
Prominent website quality items reported by Wolfinbarger and Gilly (2003) and Tandon et al. (2017) were
included in this study. Most of the scales of drivers of online shopping were adapted from Venkatesh et al.
(2012). The items in the scale were customized to fit in online shopping context. The scale of Pay-on-
delivery mode of payment included five items as new scale items which were not included in any previous

Figure 1. Proposed model.


JOURNAL OF INFORMATION TECHNOLOGY CASE AND APPLICATION RESEARCH 21

studies. Ease of ordering items were taken from previous study of Tandon et al. (2017). Items for SM were
adopted from Duffett (2015) to suit online shopping. All the items were measured using a five point Likert
scale with the anchors varying from strongly agree to strongly disagree.

Data collection procedures


In order to get accurate responses and reduce chances of personal bias, a preliminary questionnaire
was distributed to a pilot group of academicians and management experts. The pilot group
responded favorably and suggested changes in the drafting and relevance of items. Their suggestions
were incorporated in the questionnaire. Few questions were clubbed and others were deleted as the
questionnaire was deemed to be too lengthy. A total of 2000 questionnaires were administered to
service class people, businessmen and students in the Northern States of India through personal
visits. The sample covered urban and rural areas, males and females, graduates and post graduates,
service class and self-employed people to make the sample representative of the entire population.
The respondents were contacted by means of personal visits to administer the questionnaire. There
were follow-up visits to augment partaking of these persons in the sample. Seven hundred and fifty
responses were received initially, scrutiny of these 750 resulted in elimination of 250 and inclusion of
only 500 responses which were found to be complete in all respects. This survey was carried out from
December 2016-June 2017. The number of online shoppers in India was approximately 69 million on
2016 and 108 million in 2017 (ASSOCHAM RESURGENT STUDY, 2018). Approximately 40%
females shop online (Maijumdar, 2018) and in the sample taken in this study females represent
40.6%. Furthermore, 57.4% respondents belonged to age group of 18–30 years thereby improving the
representativeness of the sample, as India’s population in the age group 18–34 years is the most
active user of online shopping (IBEF Report, 2018).
The sample distribution of responses taken in two phases of December, 2016 – February 2017 and
March, 2017-June 2017 were compared on the basis of their demographic characteristics. The mean
differences in the key variables across early respondents (n = 378) and late respondents (n = 122)
were tested. No significant differences between the two groups were found, thus indicating absence
of non-response bias (Table 1). Accordingly, the final sample of 500 can be considered as repre-
sentative of entire population as possible. Due to high correlation between items of constructs e.g.,
website quality and the drivers of online shopping common method bias was checked. All variables
were subjected to a principal components factor analysis with varimax rotation. Our analysis
revealed 12 factors with each construct accounting for 0.50% of variation. Thus, no specific factor
was noticeable (Podsakoff, MacKenzie, Lee, & Podsakoff, 2003).

Data analysis
Demographic profile and characteristics of respondents
Table 2 shows the basic characteristics of the customers surveyed. Out of the total 500 users of online
shopping, 59.40% were males and 40.60% were females. Among the respondents, 57.4% were between
18–30 years of age followed by 24% in middle age group of 31–45 years of age and remaining 18.6% were
above 45 years of age. Table 3 depicts Internet Usage and Online Purchasing characteristics of the 500

Table 1. Non response bias.


Early Respondents (378) Late Respondents(122)
Construct Mean Std. Dev Mean Std. Dev
Website quality 3.666 0.54 3.64 0.49
Drivers of online shopping 4.121 0.301 4.149 0.295
Customer Satisfaction 3.89 0.6 4.01 0.55
22 U. TANDON AND R. KIRAN

Table 2. Frequency distribution for respondents’ demographics.

Demographic Characteristic N = 500 Response Percentage


Gender
Male 297 59.4
Female 203 40.6
Age
18–30 287 57.4
31–45 120 24
Above 45 93 18.6
Education Qualification
Undergraduate 91 18.2
Graduate 125 25
Post graduate 284 56.8
Nature of customers
Student 109 21.8
Self-employed 66 13.2
Service 324 64.8

Table 3. Frequency of internet usage and online shopping.


Number of hours spent on internet in a week
Less than 7 hours 69 13.8
8–16 hours 145 29
More than 16 hours 286 57.2
Number of years of online shopping
Less than 1 year 196 39.2
1–3 years 74 14.8
More than 3 years 230 46
Hours spend on online shopping in a month
Less than 2 hours 212 42.4
2–6 hours 227 45.4
More than 6 hours 61 12.2
Number of products purchased from 3 months
Less than 2 94 18.8
2–5 215 43.0
More than 5 191 38.2
Preferred mode of payment 332 66.4
Pay-on-delivery
Credit card 63 12.6%
Debit card 105 21%

respondents. During the last one year, majority of the respondents (43%) had purchased 2–5 products
online followed by 38.2% who had purchased more than five products. Regarding preferred mode of
payment, majority of the respondents i.e., 66.4% prefer to pay through POD mode of payment followed by
debit card (21%) whereas credit card (12.6%) was the least preferred mode of payment. This clear
preference for POD mode of payment supports our inclusion of this factor as one of the drivers of online
shopping in our study. The profile of our respondents also reveals that a considerable number of
respondents are well educated postgraduates and graduates.

Structured equation modeling analysis


Structural equation modeling (SEM) using AMOS 20 was used to analyze the data. The methodology
for data analysis followed two steps. First step confirmed the factor structure of measurement items
i.e., the validity, reliability and model fit. The second step investigated the path relationship between
the constructs and proposed hypotheses.
JOURNAL OF INFORMATION TECHNOLOGY CASE AND APPLICATION RESEARCH 23

Reliability and validity


To assess reliability and validity of the proposed measurement model, confirmatory factor analysis
(CFA) was carried out on items of customer satisfaction, website functionality, drivers of online
shopping and perceived risk separately. One item of NAV4 for ease of navigation and CUSTOM3 of
customization of product were omitted due to low factor loadings. Similarly, three items of habit
(HT1, HT2, HT3), PE5 (Performance expectancy), EE4 (Effort expectancy), ORD1 (Ease of order-
ing), FAC4 (Facilitating conditions), HM4 (Hedonic motivation), POD1 (Pay-on-delivery) mode of
payment were omitted due to low factor loadings. Table 4 depicts the results of CFA indicating
standardized loadings of the variables. The instrument demonstrates evidence of convergent validity
(average variance extracted >0.50 in all occasions), composite reliability (values >0.70 in all occa-
sions) and discriminant validity (AVE estimate of each construct is larger than the squared correla-
tions of this construct to any other construct (Fornell & Larcker, 1981).

Structural model
The hypothesized second order model was estimated separately on all second order independent
variables i.e., website quality and drivers of online shopping and one dependent variable i.e., customer
satisfaction. The results are summarized in Table 5. Website quality is significantly explained by website
design, ease of navigation, customization of product, ease of ordering, and security & privacy thereby
supporting H1. All the independent variables namely performance expectancy, effort expectancy,
facilitating conditions, social influence, hedonic motivation, price value, SM and pay-on-delivery loaded
on drivers of online shopping. All the variables emerged significant except price value which emerged as
insignificant variable. Therefore, the results fully support H2(a) which states that: performance expec-
tancy, effort expectancy, social influence and facilitating conditions are drivers of online shopping, H2(c)
which states that: SM interactions are drivers of online shopping and H2(d) which states that: POD mode
if payment is a driver of online shopping. However, the results of the study partially support hypothesis
H2(b): where hedonic motivation emerged as significant variable and price value was insignificant
variable. All the fit indices indicated an acceptable fit (Table 5).
The next step involved was testing of the structural model and corresponding theoretical relation-
ships. The structural model with standardized weights is shown in Figure 2 (Table 6). Website quality had
a positive effect on customer satisfaction (standardized factor loading = 0.46, R2 = 0.21, p < .001) thereby
supporting H1 (b). Similarly, drivers of online shopping (standardized factor loading = 0.740, R2 = = 0.
55, p < .01) had a significant positive effect on customer satisfaction thereby supporting H 2(e). To build
a comprehensive model, a combined R2 = of the constructs viz., website quality and drivers of online
shopping has been calculated. The value of R2 = = 0.26, and its value is weakly significant.2 The overall fit
indices of the research model are shown to be acceptable (Table 7.) This indicates that the hypothesized
model is a reasonable presentation of the structures underlying the observed data. Table 8 presents the
results of hypothesis framed.
Goodness of fit statistics CMIN/df = 2.203, GFI = 0.96, NFI = 0.981, RFI = 0.923, TLI = 0.963,
CFI = 0.986, RMSEA = 0.04, *** significant at 0.001 probability level, **significant at 0.01 probability level
* Significant at 0.05 probability level
[*** significant at 0.001 probability level, **significant at 0.01 probability level]

Discussion of results
The study has empirically examined the impact of website quality and drivers of online shopping on
customer satisfaction.
2
Henseler, Ringle, and Sinkovics (2009) proposed a rule of thumb for acceptable R2 = with 0.75, 0.50, and 0.25 values are described
as substantial, moderate and weak respectively.
24 U. TANDON AND R. KIRAN

Table 4. Measurement model of website quality and drivers of online shopping.


Standardized Standard Critical Composite Average Variance
Variables Items estimate Error Ratio Reliability Extracted
Security and Privacy SP1* 0.65
Mean 3.43 SP2 0.85 0.142 12.093 0.796 0.50
SD 0.86 SP3 0.75 0.123 11.947
SP4 0.541 0.1 9.486
Ease of Navigation NAV1* 0.73
Mean 3.87 NAV2 0.723 0.12 9.318 0.74 0.50
SD 0.63 NAV3 0.653 0.088 9.15
Website design WEBD1* 0.652
Mean 3.87 WEBD2 0.796 0.141 10.016 0.752 0.505
SD 0.74 WEBD3 0.675 0.134 9.888
Customization of CUST1* 0.703
Product
Mean 3.45 CUST2 0.772 0.162 6.469 0.705 0.545
SD 0.90
Ease of ordering ORD2 0.66 0.037 14.028
Mean 3.72 ORD3* 0.98 0.843 0.648
SD 0.98 ORD4 0.74 0.44 15.776
Performance PE1 0.9 0.091 15.443
expectancy
Mean 4.03 PE2 0.91 0.091 15.577 0.905 0.708
SD 0.67 PE3 0.9 0.095 15.392
PE4* 0.62 10.46
Effort expectancy EE2 0.76 0.1 11.788 0.769 0.529
Mean 4.18 EE3 0.79 0.083 9.794
SD 0.56 EE4* 0.62
Social media SOM1 0.7 0.074 12.673
Mean 3.86 SOM2 0.93 0.098 14.757 0.861 0.676
SD 0.57 SOM3* 0.82
Facilitating FC1 0.98 0.013 71.265
conditions
Mean 4.34 FC2 0.97 0.02 54.002 0.977 0.935
SD 0.45 FC3* 0.95
Hedonic Motivation HM1 0.91 0.034 29.038 0.93 0.816
Mean 4.11 HM2 0.92 0.033 29.624
SD 0.76 HM3* 0.88
Price Value PV1 0.68 0.05 15.569
Mean 4.22 PV2 0.99 0.086 16.522 0.849 0.658
SD 0.63 PV3* 0.73
Social Influence SI1 0.76 0.107 12.149
Mean 4.38 SI2 0.87 0.131 12.585 0.8 0.573
SD 0.56 SI3* 0.62 8.972
Pay-on-delivery POD2* 0.65
Mean 3.86 POD3 0.65 0.154 11.535
SD 0.384 POD4 0.92 0.1 15.303 0.86 0.612
POD5 0.87 0.078 16.231
Customer Satisfaction CS1* 0.88
Mean 3.91 CS2 0.92 0.033 29.900 0.929 0.727
SD 0.600 CS3 0.90 0.034 29.866
CS4 0.89 0.11 10.8
CS5 0.64 0.077 12.011

Website quality
The research model (Figure 2) validated and identified those features of website quality which lead to
customer satisfaction. The findings of the study indicated that security and privacy, ease of naviga-
tion, website design, customization of product and ease of ordering are significantly associated with
website quality. This substantiates the findings of previous studies, where website design and security
and privacy have significant positive relationships with customer satisfaction (Guo et al., 2012; Luo
et al., 2012; Tandon et al., 2017). This also indicates security and privacy protection as an important
driver influencing customer satisfaction. Therefore, it is incumbent on online retailers to embed
JOURNAL OF INFORMATION TECHNOLOGY CASE AND APPLICATION RESEARCH 25

Table 5. Correlations matrix.


NAV SP WD CONS PE EE SOM FAC HM PVA POD SI CS ORD
NAV 0.707
SP .397** 0.707
WD .399** .195** 0.710
CONS .328** .295** .286** 0.738
PE .344** .416** .227** .097* 0.841
EE .449** .124** .406** .181** .490** 0.727
SOM .189** .085 .097* .256** .291** .170** 0.822
FAC .035 .128** −.027 .051 −.009 .029 .103* 0.966
HM .083 .231 .064 .086 .074 .073 .038 .295** 0.903
PVA .012 .004 .023 .124** .043 .057 .080 .375** .339** 0.811
POD .019 .020 .041 .012 .029 .051 .031 .143** .110* .283** 0.783
SI .085 .023 .019 .002 .069 .091* .040 .039 .154** .020 .054 0.756
CS .313** .237 .314** .152** .388** .396** .160** −.039 .015 −.009 −.005 .045 0.852
ORD .086 .388** .004 .020 .041 .072 .014 .071 .165** .058 −.014 .169** .061 0.804
**Correlation is significant at 0.01 level (2-tailed)
*Correlation is significant at 0.05 level (2-tailed). The square root of AVE is shown in bold and italics

Figure 2. Path relationships showing significant variables.

relevant security and privacy features on the website. Ease of navigation and customization of
product also emerged as important factors of website quality. This is supported by previous literature
(Calisir et al., 2010; Tandon et al., 2016).

Drivers of online shopping


The study identified main drivers of online shopping as performance expectancy, effort expectancy,
social influence, hedonic motivation, facilitating conditions, POD and SM interactions (Figure 2)
26 U. TANDON AND R. KIRAN

Table 6. Structural model of website quality and drivers to online shopping.


Estimate S.E. C.R. P
Website design <– WQ 0.63 0.110 6.321 0.000***
Customization of product <– WQ 0.61 0.170 5.338 0.000***
Ease of Navigation <– WQ 0.85 0.000***
Security and privacy <– WQ 0.52 0.114 6.177 0.000***
Ease of ordering <– WQ 0.58 0.493 4.042 0.000***
Goodness of fit CMIN/df = 2.428,GFI = 0.95, AGFI = 0.922, NFI = 0.904, TLI = 0.916, CFI = 0.935, RMSEA = 0.065
Performance Expectancy < – DRIVERS 0.74 0.208 6.513 0.000***
Effort Expectancy < – DRIVERS 0.66
Social Media < – DRIVERS 0.53 0.281 4.38 0.000***
Facilitating Conditions < – DRIVERS 0.12 0.115 1.886 0.050**
Hedonic Motivation < – DRIVERS 0.13 0.11 2.354 0.019**
Price Value < – DRIVERS 0.10 0.089 1.806 0.071
Social Influence < – DRIVERS 0.11 0.08 2.103 0.035**
POD < – DRIVERS 0.27 0.627 3.035 0.002**

Table 7. Path analysis.


Estimate R-square P Result
Website Quality <– CS 0.46 0.21 0.000*** Support
Drivers <– CS 0.74 0.55 0.011** Support
Goodness of fit CMIN/df = 4.26, GFI = 0.951, AGFI = 0.945, NFI = 0.928, RFI = 0.921, RMSEA = 0.072
*** significant at 0.001 probability level, **significant at 0.01 probability level

Table 8. Results of hypotheses framed.


Hypotheses framed Result
H1(a) Website quality is a multidimensional construct significantly determined by security and privacy, Accept
website design, ease of ordering, ease of navigation and customization of product.
H1(b) There is a significant positive association between website quality and customer satisfaction. Accept
H2(a) Performance expectancy, effort expectancy, social influence and facilitating conditions are the drivers Accept
of online shopping.
H2(b) Hedonic motivation, price value and habit are the drivers of online shopping. Partially
Accept
H2(c) Social media interactions are drivers of online shopping. Accept
H2(d) Pay-on-delivery mode of payment is a driver of online shopping. Accept
H2(e) There is a significant positive association between the drivers and customer satisfaction. Accept

Performance expectancy and effort expectancy emerged as significant drivers and are consistent with
findings of earlier research studies (Foon & Fah, 2011; Sareen & Jain, 2014; Yaprakli et al., 2013;
Zhou, Lu, & Wang, 2010). The social influence relationship is also consistent with previous studies of
Foon and Fah (2011), Yaprakli et al. (2013) and Venkatesh et al. (2012) but was inconsistent with the
study of Baptista and Oliveira (2015). This indicates that people in developing nations like India
value the advice from their colleagues, friends and peers who may be their opinion leaders
(Chauhan, Mukhopadhyay, & Jaiswal, 2018). Hedonic motivation was found significant indicating
its significance in online shopping. This finding is consistent with previous studies of Baptista and
Oliveira (2015) and Tandon et al. (2016). Facilitating conditions were also found significant. This has
been supported by Zhou et al. (2010), yet there are many others e.g., Im et al. (2011) and Sareen and
Jain (2014) whose research did not support it. Price value was found insignificant indicating that this
perceived price saving does not stimulate online purchase. This is consistent with results reported by
Baptista and Oliveira (2015), but contrary to what was found by Venkatesh et al. (2012). It was also
hypothesized that these drivers of online shopping are positively associated with customer satisfac-
tion. This has been corroborated by previous reported study of Yaprakli et al. (2013). SM interac-
tions emerged as a significant driver of online shopping. This finding is supported by results of
JOURNAL OF INFORMATION TECHNOLOGY CASE AND APPLICATION RESEARCH 27

previous studies (Elisabeta & Ivona, 2014; Heinrichs et al., 2011; Muda et al., 2016) indicating that
increased levels of perceived SM presence affects consumer attitudes toward online shopping.
The study extended the model by adding two more drivers of online shopping viz., SM interactions
and pay-on-delivery mode of payment. The significant contribution of the study is empirical validation
of pay-on-delivery mode of payment as a construct within the UTAUT2 model. Pay-on-delivery mode
of payment has significant relationship with customer satisfaction. Since POD is clearly a preferred
mode of payment in emerging nations like India, adequate effort is required from online retailers to
extend the delivery of their products to as many postal codes as possible in these countries.

Implications for researchers and practitioners


The improved UTAUT2 model presented in this study gives a better understanding of the drivers of
online shopping, website quality and relates these two factors customer satisfaction.

Theoretical implications
The improved UTAUT2 model can be tested in the context of other developing countries. The major
theoretical contribution of this study lies in integrating features of website quality and drivers of online
shopping to determine their impact on customer satisfaction. The emergence of website quality as
a significant factor confirms that customers aspire to find information through graphical components,
hyperlinks and layout of websites. Customers purchase online only if website is easy to understand and
navigate through. With good layout and attractive graphics, users can gain information about the products
and services effectively and efficiently. Ease of ordering (ordering, cancelling, tracking and modifying the
orders) emerged as a significant factor influencing customer satisfaction. Another major theoretical
contribution of the present study is including predictors’ viz., POD and SM interactions as constructs to
understand their impact on customer satisfaction. There is sparse research on payment mechanisms.
Through this study, the role of pay-on-delivery mode of payment is also established as a trust-builder
between customers and online retailers in Indian online shopping context. The effect of pay-on-delivery
mode of payment is more prominent in developing countries like India, which are technologically deficient
and where online shopping has started much later than in comparison to advanced countries. Thus POD
and SM interactions need to be studied in future research studies to cover more cultures and countries.

Practical implications
The empirical findings of this research provide useful implications for online retailers also.
Understanding the constructs in the proposed research model is crucial for online retailers in India as
well as emerging economies so that they can attract more customers and retain existing customers.
Online retailers in India need to continue informing customers about the usefulness, convenience and
other benefits of online shopping. They need to improve channel enjoyment, fun, excitement and
satisfaction by offering quality products to increase customer satisfaction. The emergence of website
quality as a significant factor leading to customer satisfaction accentuates the need to make websites user
friendly with attractive and vibrant web pages which are easy to upload.
The study confirms that factors like performance expectancy, effort expectancy, social influence,
hedonic motivation and facilitating conditions make online shopping easy. As reflected from the
study, customers are concerned about the responses from the members of community. Online
retailers should identify frequent shoppers who can become opinion leaders and can convince
other people to opt for online purchase. The emergence of price value as insignificant factor
indicates its implication for pricing strategy of online retailers. The current pricing tactics of online
retailers may not reflect the relative value attached to the benefits from the listed products.
Attractively priced products relevant to the customers help in making purchase decisions (Harmer
& Yoong, 2008). Online retailers need to focus on the warrantee, guarantee as well as after sales
28 U. TANDON AND R. KIRAN

service which may be added to build confidence and enhance online shopping. Attractive price
discounts on festive seasons can promote online shopping. The emergence of performance expec-
tancy and effort expectancy as significant variables is a reminder that the task of shopping must yield
adequate performance for the effort expended. Therefore, in order to attract and retain customers,
online chat forums and presence on SM, and virtual shopping tours through the website may
alleviate the concerns of consumers.
An important implication of the study is validating POD mode of payment with UTAUT2. Most
of India’s population doesn’t have a Debit or Credit card and the ones who have, use it basically to
withdraw cash from ATM. Therefore POD mode of payment was found to enhance online shopping.
As people in small towns are also adopting online shopping due to internet penetration, focusing on
POD can offer online retailers a competitive advantage. POD will not only help to reduce perceived
risk due to credit card information theft, invasion of privacy but will also address other issues such as
loss of delivered goods, poor quality of products, and wrong items supplied.

Limitations of this research and directions for future research


One primary limitation of this study is lack of generalizability of its findings. As the data collected
represents North Indian States only, the findings may be applicable to these states mainly. However, the
study can be extended to Southern, Eastern and Western states also as these areas vary considerably in
exposure to technology and logistical infrastructures. This study can be extended to other developing
countries also to test the validity of the findings and its applicability under different socio-economic-
ethnic perspectives. SM interactions, POD mode of payment and ease of ordering may be analyzed
further. To simplify the model, this study considered the perceptions of only those consumers who had
already experienced online purchases. Further research may focus on specific categories of product
besides online retailers too. Due to time constraints the study considered only website quality and drivers
of online shopping. Effort may also be made to integrate perceived risk (Financial, Social, Time, Security,
Product performance risk etc.) along with website quality and drivers of online shopping. This study
leaves significant space for researchers to consider the individual characteristics of the respondents such
as age, gender and experience on drivers to online shopping.

Acknowledgments
The authors hereby express their sincere gratitude to Dr. Shailendra Palvia (Editor-in-Chief, JITCAR) for sparing his
precious time for critical evaluation, encouragement and valuable suggestions that led to a significant improvement of
the manuscript. We are also thankful to anonymous reviewers for their careful reading of our manuscript and many
constructive suggestions to improve the manuscript.

Notes on contributors
Dr. Urvashi Tandon is an Associate Professor at Maharaja Agrasen University, Baddi, Himachal Pradesh, India. She
has completed her Ph.D from Thapar University, Patiala and currently doing research on E-Commerce, Online
shopping and Supply Chain practices of online retailers. Her research has been published in several journals like
Service Science, Information Development, Nankai Business Review, International, Information Systems and e-Business
Management, International Journal of e-Business. She has more than 15 years of experience in teaching. Her teaching
interests include Marketing, e-Business, Supply Chain Management, and Strategic Management.
Dr. (Ms.) Ravi Kiran is Professor and Head; School of Humanities & Social Sciences and Professor Incharge Alumni
Affairs, Thapar Institute of Engineering & Technology (Deemed University), Patiala, India. With post-graduation in
Economics and Ph.D. in Industrial Management She is currently doing research in the areas of Business Economics
and Modelling, Industrial Management, E-Business & Entrepreneurship. She has been awarded 2018 Emerald Literati
Award for paper entitled, ‘Analyzing customer satisfaction: users perspective toward online shopping‘ published by
Urvashi Tandon, Ravi Kiran & Ash N. Sah in Nankai Business Review International . She has been on editorial board
of many reputed journals. She has published 136 papers in international journals of repute. She has guided 26 Ph.
D. students and 20 Masters students. She has published two books.
JOURNAL OF INFORMATION TECHNOLOGY CASE AND APPLICATION RESEARCH 29

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JOURNAL OF INFORMATION TECHNOLOGY CASE AND APPLICATION RESEARCH 33

Appendix 1 Measurement items and their sources

Security and Privacy (Wolfinbarger & Gilly, 2003)


The websites have adequate security measures. SP1
I feel safe while using my credit card/debit card on the websites. SP2
I trust that the websites will not give my personal details to other websites without my permission. SP3
Online retailers offer user memberships for surfing on the password protected web pages within the website. SP4
Website design (Wolfinbarger & Gilly, 2003)
The layout of online retailing websites facilitates shopping. WD1
The attractive color scheme of online retailing websites facilitates shopping. WD2
The graphics displayed in websites provide ease for ordering product. . WD3
Ease of Navigation (Lee & Kozar, 2012)
The web pages which I am looking for can be reached through multiple tabs/windows. NAV1
The search function at the websites is helpful. NAV2
The websites allow easy return to the previous display pages. NAV3
Pictures of products are downloaded quickly. NAV4
Ease of ordering(Tandon et al., 2015)
It is easy to track orders placed online. EASEORD1
It is easy to modify orders placed online. EASEORD2
It is easy to cancel orders placed online. EASEORD3
It is easy to replace orders placed online. EASEORD4
Customization of product (Lee & Kozar, 2012)
I can customize my product before ordering CUSTOM1
Customization function offered by online retailers is helpful CUSTOM 2
Online retailing websites correspond to customer’s needs CUSTOM 3
Performance Expectancy (Venkatesh et al., 2003, Venkatesh et al., 2012) PE1
Online shopping provide wide assortment of products useful in my daily life.
Online shopping helps me to find product information within the shortest time frame. PE2
While shopping on internet I can find some products that are not easily available in physical stores PE3
Online shopping enables me to accomplish shopping more quickly than traditional stores PE4
Shopping online takes less time from search of products to transaction. PE5
Effort Expectancy(Venkatesh et al., 2003, 2012)
It was easy for me to learn internet shopping.
The language used by online retailers is easy to understand. EE1
Internet shopping websites are easy to use. EE2
Information provided by online retailers help me to purchase product. EE3
Facilitating Conditions(Venkatesh et al., 2003, 2012)
I have resources necessary to use online shopping FCA1
I have knowledge necessary to use online shopping FCA2
Online shopping is compatible with other technologies I use FCA3
I can get help from others when I have difficulties using online shopping FCA4
Hedonic Motivation(Venkatesh et al., 2012)
Shopping online is an exciting experience for me. HM1
Shopping online is fun for me. HM2
I feel shopping online is enjoyable. HM3
Shopping online is very entertaining. HM4
Price Value(Venkatesh et al., 2012)
Online products are reasonably priced PVA1
Online shopping provides me good value for money PVA2
Online discounts and promotions offered are often attractive which provide me value for money.
Habit(dropped)(Venkatesh et al., 2012) PVA3

(Continued )
34 U. TANDON AND R. KIRAN

(Continued).

The use of online shopping has become a habit for me. HT1
I am addicted to shopping online. HT2
Online shopping has become natural to me. HT3
POD mode of payment(New scale items)
*I think POD is a reliable mode to payment COD1
*I prefer to buy through pay on delivery(POD) mode of payment COD2
*I plan to pay through POD mode of payment. COD3
*POD mode of payment facilitates easy return of defected products COD4
*POD give me confidence for future repurchase of products COD5
Social Media Interactions (Duffett, 2015)
The postings that appear on the Facebook page describe functions of the featured product. SOM1
I will visit the brand‘s online store to purchase the product which appears on Facebook page. SOM2
Advertisements on Facebook have a positive influence on my purchase decision. SOM3
Customer Satisfaction CS1
I am satisfied with my purchase.
I am satisfied with POD mode of payment CS2
I am satisfied with quality of product received through online purchase CS3
Products purchased online have measured up to my expectations CS4
I am satisfied with the range of products offered online CS5
Items in italics are deleted items

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