ABSTRACT

In the era of globalization in electronic marketing is great revolution which not only in
Malaysia but also in the entire of the world. Therefore, with the advancement in technology,
everything is fast changing. Nowadays, online shopping became a trend for the retailers to
sell their product by just clicking on the computer. It means that, the traditional retailers will
set off to go beyond selling their products in order to get more customers and create
satisfaction level for their customers. Thus, the retailer will not only focus at brick and mortal
store but also in creating online store. Now, if we followed the trend, the retailers are now
engaging into this online shopping platform which also known as online stores. Therefore,
this research is specifically study on the online shopping key factors that could influence
consumer’s satisfaction when they purchasing an item from the online shop. Thus, the aim of
this research study is to identify the relationship between online shopping key factors which
consist of convenience, trust and security factors towards consumer satisfaction. This study
used some related journals and questionnaire as a method to collect and interpret the result.
Based on the finding results, all the online shopping key factors which are convenience, trust
and security have significant positive relationship with consumer satisfaction.
 CHAPTER 1

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Recently, we can see the rapid growth of online business or e-commerce in the past
few years. There is a research stated that in year 2016, online shopping market in Malaysia
will increase tremendously over RM1.9bil (Ueno, 2012). A few years ago, if the e-retail firms
want to make online business, they need to build up the website and it will incurred a lot of
costs. Nowadays, anybody can sell online through social media such as Facebook, Twitter
and Instagram as the platform to sell online. These may promote intense competition in the
market. In order to remain competitive, e-retail firms must know the effective strategies on
how to satisfy the consumers’ needs and wants. The effective strategies can increase
consumers’ satisfaction that could give benefit to the firms and bring profitability in many
aspects. Online customers prove that customers’ satisfaction in an online business is the
main key factor which could bring profitability (Guo, 2012).

Usually, the consumers’ will spread the information about the products or services
due to their experiences to other people when they gain the satisfaction (Nelson, 2012).
Therefore, it will give beneficial to the firms in building their reputation and gaining more
customers in the future. That is why it is important for the firms to take attention on gaining
consumers’ satisfaction. Besides, consumers’ satisfactions will response to customers’
loyalty, as well as attract the potential customers (Guo, 2012). In order to create satisfaction
to the consumers’, the firms must be well revised with the antecedence of consumers’
satisfaction in the industry (Guo, 2012). Therefore, consumers’ satisfaction could improve
the business performance in gaining more customers and profit in future.

Moreover, customer satisfaction is the ultimate result of meeting a consumer’s

expectation from the performance of products. Most of satisfied customers normally have the
intention to re-purchase the products if product performance meets their expectation. Online
business is just like traditional business, which are online firms also needed to satisfy their
customers. However, what are the factors that could lead to customer satisfaction with online
shopping? Consumers’ satisfaction can be influenced by many factors such as timeliness,
convenience, price and also security.
1.2 PROBLEM STATEMENT

Today Internet is not only a networking media, but also as transaction medium for
consumers at global market in the world. The most necessary element of e-retail offers a
direct interactive channel as well as no time definition, people and place. To shop on Internet
becomes an alternative for consumers since it is more comfortable than conventional
shopping which usually attributed with anxious, crowded, traffic jam, limited time, parking
space and etc. It can save the consumer’s time as well. Internet in Malaysia is still
considered as a new medium toll between the retailers and the Malaysian citizen as
consumers, and also retaining consumer one-retail is the most issue that is faced any e-
retail store. To increase the understanding in this area, the question needs a correct answer.
Are Malaysian consumers ready to embrace Internet shopping? In addition, this study wants
to know what the perceptions and factors of consumers in Malaysia are, do they accept or
refuse internet shopping application? And what are dominant predictors that influence the
consumer’s intention to shop on internet in Puncak Alam, Malaysia? This study can help
local e-retail to adjust their e-retailing strategies, by learning of this research results.
Consequently, the expectation of this study is to provide relevant results to thee-retail
Company to engage the Malaysian to shop online. E-retailer can be more attractive to
encourage the consumers do shopping on internet. By testing the relevance other beliefs in
the context of using the internet for shopping, it can be obtained more understanding, why
Malaysian’s consumer accept or refuse e-retail as medium shopping can be gained.
1.3 RESEARCH OBJECTIVES

1.3.1 To identify the main factor of online shopping that contributes to consumer’s
satisfaction.

1.3.2 To investigate the relationship between convenience and consumer’s

satisfaction

1.3.3 To investigate the relationship between trust and consumer’s satisfaction.

1.3.4 To investigate the relationship between security and consumer’s satisfaction.

1.4 RESEARCH QUESTIONS

1.4.1 What is the main factor of online shopping that contributes to consumer’s
satisfaction?
1.4.2 Is there any relationship between online shopping and consumer’s
satisfaction?

1.4.2.1 Is there any relationship between convenience and consumer’s satisfaction?

1.4.2.3 Is there any relationship between trust and consumer’s satisfaction?

1.4.2.4 Is there any relationship between security and consumer’s satisfaction?

1.5 HYPOTHESIS

1.5.1 There is a significant positive relationship between convenience and

consumer’s satisfaction.

1.5.2 There is a significant positive relationship between trust and consumer’s

satisfaction.

1.5.3 There is a significant positive relationship between security and consumer’s

satisfaction.

1.6 SCOPE OF STUDY

This study is focuses on consumers’ perception and influencing factors that could
lead to consumer’s satisfaction towards online shopping. Besides, the main objective is to
identify the relationship between online shopping and consumers’ satisfaction. Other is, to
determine the relationship between the independent variables and dependent variable of this
study. The independent variables for the study are timeliness, convenience, price, and
security. The dependent variable for this research is consumer’s satisfaction of online
shopping.
1.7 SIGNIFICANCE OF STUDY

1.7.1 Benefits to E-retail firms

This study will be very beneficial to the existing e-retail firm and also to the
newbie in e-retail. Through this research, the e-retail firms can discover which
factors that can increase consumer’s satisfaction level in online shopping.
Besides, it could give benefits to the e-retail firms in order to improve their
strategies in achieving consumer’s satisfaction in future.

1.7.2 Benefits to Consumers

This study is significant to the consumers in order to determine the factors

that will drive to satisfaction towards online shopping. Besides, it would help
new consumers which are new into online shopping to know which factor that
could lead to satisfaction. The results of the factors will become the key
factors that can increase consumer’s satisfaction level.

1.7.3 Benefits to Researcher

This research paper will enhance the knowledge of researcher on the factors
that contributes to consumers’ satisfaction. Beside, create the factors that
could increase a satisfaction level while purchasing goods or services through
online. The results of customer satisfaction key factors may give knowledge in
term of understanding and ideas beside other researchers may use the study
and review it to make a new prospect of study.
1.8 LIMITATION OF STUDY

1.8.1 Small sample size

This study will be conducted in small population which focuses only in Shah
Alam. The subjects in this study were only 100 consumers in Shah Alam. The
samples of this study will be given to female and male. Therefore, the
perception and factors that could give satisfaction will be different between
two genders.

1.8.2 Time restriction

Besides of small sample size, time restriction is also limitation of this study in
completing the research. It required a lot of time due to get all the information
from the respondents and to distribute the questionnaires to the consumers.
Others, it required much time to review and understand the journal what it all
about and to extract important information about the study. Furthermore, the
given to fulfill this study is very limited due to other responsibility.

1.8.3 Cost limitation

Instead of limitation in time, other is cost limitation. The researcher had limited
budget due to transportation cost to meet lecturer at the campus, printing cost
of journals and others cost incurred in completing the research. Therefore, the
researchers need to manage their budget very well to avoid over budget.

1.9 DEFINITION OF TERM

1.9.1 Online Shopping

Online shopping is an activity of buying goods or services via the internet.

Due to (Seyed Rajab Nikhashem, F.Y. 2011) stated that online buying
represents technological infrastructure used to exchange data and purchase
product or services electronically.

1.9.2 Customer Satisfaction

It is about customer archived their satisfaction level in purchasing their

desired goods or services through online (Saye Rejab Nikhashemi, 2013).
 Besides, (Kotler et al, 2001) stated that customer satisfaction is when product
and services meet the expectation of the consumers.

1.9.3 Convenience

Perceived of convenience can be defined as the degree to which a person

believe s that using a particular system would be free from effort (Devaraj et
al, 2000).

1.9.4 Trust

Trust can be describe as the willingness of a person to be vulnerable to the

actions of another party based on expectation that the other will perform a
particular action important to the trustee, irrespective of the ability to monitor
or control those parties (Mayer, Davis and Schoorman, 1995). The meaning
of trust based on e-commerce, trust is online consumer belief and expectation
about trust-related characteristics of the online seller (Tzy-Wen Tang, et al.,
2005).

1.9.5 Security

Kalakota and Whinston (1996) defined security threat as a circumstance,

condition, or event with the potential to cause economic hardship to data or
network resources in form of destruction, disclosure and others. Perceived
security refers to consumers’ belief in safety of transmitting sensitive
information (Chang & Chen, 2009).
 CHAPTER 2

2.0 LITERATURE REVIEW

2.1 CONSUMER SATISFACTION

Multiple studies have been conducted by the researchers regarding on consumer

satisfaction towards online shopping. Based on (Bahram, et al., 2012) understanding the
factors that create satisfying customer experience is crucial for e-retail firm in attracting
consumers to purchase online. This study is observed through investigation which proposed
and tested an e-satisfaction model. There were five dimensions that contribute satisfaction
through online shopping which based on convenience, merchandising, website design,
security and serviceability. There were another study agree that ease of use and security
give great impact on consumer satisfaction regards to online shopping (Seyed, et al., 2013).
Additionally, (Seyed, et al., 2013) and (Xiaoying, Kwek & Min, 2012) stated that ease of use,
security, payment method and quality shows positive relationship on contributing consumer
satisfaction towards online shopping.

The important of being understanding and distinguishing the factors that could contribute
consumer satisfaction is because it can increase the performance of sales, create loyalty,
trust, and it can enhance on repurchase of products or services. Most importantly, these
elements can leads to increase the level of consumer satisfaction. According to previous
research by (Taweerat, et al., 2014) said that consumer who never purchased online usually
pay attention on security and serviceability factors. Furthemore, satified consumers tend to
be loyal and make repetitive purchase which can increase profitability to the e-retail firms.
Besides, Reichheld (1995) also mention that customer loyalty is strongly related to the
profitability and long term growth of a firm.This research will explore the factors that will help
the e-retail firms develop the significant factors that can contribute to consumer satisfaction
and investigate the relationship between online shopping and consumer satisfaction.

On the other hand, there were some reason why consumer prefer shopping online
compare to traditional shopping. Due to Rick & Imran (2004) research, they studied about
the behavioral differences between consumer attracted to online shopping versus traditional
shopping. They summarize that price sensitivity, size preferences, Brand loyalty will give
impact on behavioral towards online shopping. On the other hand, Alba et al. (1997) stated
more information about non-price attributes could reduce price sensitivity for differentiated
products. Usually, the product that sell trough online is more cheaper compare to shop price.
This is because of the seller can minimize their cost on paying labors and shop rent. Alba et
al. (1997) and Maes (1994) agreed that electronic agents may also change consumer focus
from price to non-price attributes such as brand name that resulting in brand loyalty or
handling of brand name for screening purposes. So that, price sensitivity and brand loyalty
can influence consumer behavior towards online shopping.

Based on (Yulihasri, et al., 2011) research, the study was focus on factors influencing
student’s buying intention through online shopping. They proposed the factors such as
usefulness, ease of use, compatibility , privacy, security and others. There are two theories
regarding to this study which are theory of reasoned action (TRA) and the technology
acceptance model (TAM) said that usefulness and ease of use had significant belief in
persuading consumer intention to purchase online. Therefore, due to (TAM) theory, there
was positive relationship of usefulness and ease of use in influencing the buying intention
towards online shopping (Vijayasarathy, 2003). The findings concluded that all the variables
are significant toward the consumers’ attitude while usefulness and ease of use shows
positive result towards buying intention.

2.2 KEY ROLE FACTORS

2.2.1 Convenience

Convenience is one of the factors that can contribute to consumer

satisfaction. Convenience is the main thing that can relate with online
shopping in term of easy access and east to navigate. Most of the customers
like to enjoy the convenience features when they want to purchase online.
According to Van Riel (Van Riel, and et al, 2001), they noted that
convenience can drive to customer satisfaction by created value on providing
useful information, simple navigation system to purchase and its relative
value. Based on (Bahram Ranjbarian, 2012) research, the result of the study
shows the significant of convenience that could drive consumer satisfaction
towards online shopping.

Difference consumers have difference experience while shopping online.

Therefore, an experienced consumer is more likely to have easier time
navigating site, searching for information on particular products, as well as
ordering online stated by Balasubramaniam (1997). Convenience is often
found to be important determinant in internet shopping. Consumer like the
convenience shopping style such as simple navigation, find the product, add
to cart, cancel the product and easy payment transaction. Therefore, e-retail
 shop should design their website that could minimize consumer time in finding
the product and information Ranganathan & Ganapathy (2002). Besides, e-
retail firm should make the website more convenience in buying process or
repurchase the product item. According to (Christian Schaupp, 2005),
convenience includes easy of findings information, time spent on shopping,
post purchase service and easy to contact. All of these features will give
consumers experience while shopping online.

Many of online users like to enjoy convenience and more control through
online transaction, some of companies spend more money on putting
additional features on their website to make it easy to use for the consumers,
Fukuyama (1995). Meanwhile, convenience has significant impact on
person’s online shopping channel preference. Based on (Taek, 2002),
convenience refer to the utility of the online transactionon World Wide Web. It
shows the degree to which individuals perceive the benefits and advantage of
performing online transaction (Yulishari, 2011). Therefore, Ramayah, Aafaqi
& Jantan (2003) had founded convenience has positive impact on student’s
acceptance and usage of course online among university student. According
to (Ding Mao, 2010) perceive ease of use as high quality of the website will
lead to consumer satisfaction and trust of online shopping.

Meanwhile, due to (Shin-Yuan Hung, 2014), most of online shopping stores

offer customers the convenience of shopping at any time from any of places.
The customers can make the transaction within 24 hours and the transaction
process will be 24/7 which is no limit of time. Usually consumers that can
enjoy the benefit of convenience are the satisfied consumers of online
shopping (Christodoulides and Michaelidou, 2011). Besides, if the consumers
can have enjoyable experience in a convenience shopping environment not
only will consumer satisfaction be enhanced but their custom will be retained.
2.2.2 Trust
According to (Saye Rejab Nikhashemi, 2013) trust can be defined as
willingness of a person performs a particular action in purchase online
product or services. Besides, trust is a complicated issue that has been
studied severally. Based on (Thomas, 2009), trust defined as an expectancy
of positive outcomes that others can receive based on expected action from
another party. Due to (Aydin & Ozer, 2005), trust can reduce uncertainty
feeling of the customers while they make online purchase. Beside, (T. Van
 Vuuren, 2012) stated that trust has positive relationship to customer loyalty
and satisfaction.

Buying decision usually relate with consumer trust on the product,

salesperson or because the name of the company (Hosmer, 1995). It also
has been supported by (Lee & Turban, 2001) which agree that internet
shopping decision involve trust between customer and product. Besides, the
ability of a product is reflected in its ability to handle sales transaction and the
expertise to generally conduct business over the internet (Belanger et al,
2002). Therefore, customers must have trust and faith in the ability and the
system. According to (Belanger, 2005) research study, features evaluated
within the attribute of trust are customer faith in the business and system,
internet merchant’s perceived reliability and integrity, and also minimized
customers worries and regret while purchasing the product at the online
retailer.

Hans Van der Heijden et al., (2003) mentioned that technology and trust are
two critical issues which have great impact on customers’ online purchasing
behavior and customers’ satisfaction. Based on Mayer et al. (1995) study,
trust was viewed as a trustor’s intention to take risk and proposed to trustor’s
perception about a trustee’s characteristics as the main predictors of trust.
Besides, (Patrick MacColo et al, 2010) stated that human trust is an
automated or computerized system which depends on three factors. The
factors are perceived technical competence of the system, the perceived
performance level of the system and human operator understands of
underlying characteristics and processes governing system’s behavior.
Therefore, consumer experienced of online shopping will affect trust on
repeat purchasing of the products. According to (Euikim Kim & Tadisina,
2007), it is important to establishing and sustaining customer relationship in
developing trust among the consumer to buy online.

2.2.3 Security

In this research, security is one of the factors that could contribute to

consumer satisfaction while doing online shopping. This is because most of
consumers use their credit card or debit to complete the online transaction.
Besides, used of credit card and debit card, the consumers also use online
transfer. Therefore, security is important to built trust among the online
shopper to purchase online to make sure their personal information secured
 while paying through online with debit or credit card (Karim, 2013). If the
customer can’t trust the electronic retailer, it will prevent the consumers to
purchase online.

According to (B. Jin and J Young Park, 2008), (S. H. Hsu, 2008), and (J.Choi
and H. Seol, 2008) payment security was identified as an important factor that
can contribute to customer satisfaction. Besides, online retailer must take it as
a top priority in online shopping due to involve of online transaction.
Meanwhile, (Younghwa et al., 2006) also stated that internet security has
been recognized as significant element for ensuring wide participant in the
society. Internet security has become a major concern for all business that
involves online transaction (Seyed Rajab Nikhashem, 2011). Lambert (2001),
Szymanski and Hise (2000) said that security element is one of the most
challenging part facing by online retailer today. This statement also has been
supported by (Melta and Shah Z, 2001).

According to (Saye Rejab Nikhashemi, 2013), security system is important

issues that must be counted by the online retailer. It is because security will
be biggest barrier that can prevent consumer from purchasing items online.
Shim at al (2001) also supported the idea that online retailers should build
secured website since internet user fear and hesitate to buy online due to
security concern. Furthermore, (Yulihasri, 2011) have founded that security
concerns are one of the main reasons online users are not purchasing
products by online. Udo (2001) has mentioned that security and privacy have
positive relationship. As we know, the hackers may come from inside or
outside the company. The consumers only want their data or information
involve be protected by the online retailer in order to complete the transaction
process.

2.3 THE RELATIONSHIP BETWEEN CONVENIENCE AND CONSUMER’S

SATISFACTION

The analysis shows that convenience has a link with a consumer’s satisfaction
towards online shopping. According to (Brown, 1989), convenience is comprised of five
dimensions which are time, place, acquisition, use and execution. Based on (Karim, 2013)
research, convenience has positive relationship with consumer’s satisfaction. Besides,
(Karim, 2013) belief that convenience is consider as time saving, information availability,
opening time, less expensive, less stress, best offers, helpful for old and also for disable
people, service quality, easy navigate, easy ordering system and most important there is
value of shopping fun. From the previous data intrepretation, it shows that almost 90% of the
respondent agreed that convenience play important role in developing consumers’
satisfaction towards online shopping. In the research it stated that convenience can be varify
as many such as open 24/7 which is easy to shop from home.

Others, people mostly agreed with the statement online shopping is helpful for old
and disable people. Therefore, (Madlberger,2006) also agree convenience in purchasing
goods and transactional process will contribute to consumers’ satisfaction. However, (Shin-
Yuan Hung, 2014) stated that convenience has no effect on customer satisfaction. he said in
inf his study, customers may become overload of information when there is too much
product information to find shopping a satisfying experience. On the other hand, customers
will end up with wasting their time by comparing the product with other online retailer.
Meanwhile, (Gay et al, (2007) and (Canavan et al, 2007) have different opinion which stated
that consumers’ satisfaction and purchase decision on online shopping depends on a few
issues which are convenience is on of the issues.

Based on (Taweerat Jiradilok, 2014), the research is about The Impact of Customer
Satisfaction on Online Purchasing: A Case Study Analysis in Thailand. The result of
(Taraweet et al, 2014) studied, agreed that convienence is one of the factors that could
influence consumer’s satisfaction. Therefore, the result is consistent with (Jarvenpaa, 1996)
and (Todd, 1997) which refer that online retailer should focus on product perception and
shopping convenience factors that could contributr to consumer’s satisfaction when they
want to create a online shopping website. On the other hand, convenience factors and
dependable shopping are include covenience, guaranteed delivery and secure transaction
system (Eyong and Sean, 2002). The online retailer must provide accurate information about
the product and others.

2.4 THE RELATIONSHIP BETWEEN TRUST AND CONSUMER’S SATISFACTION

Internet shopping decision usually influence by trust in order to build confidence on

online shopping (Belanger et al, 2002). According to (Belanger and Schaupp, 2005) finding
result, customer’s faith in in the merchant and online retail system was founded to be most
importance. In addition, consumer faith in online shopping could minimized their worries and
regrets while purchasing online. Besides, past experience in online purchasing will create
trust among the buyers to puchace online for the next time. Based on (Saye Rejab
Nikhashemi, 2013) research study, payment processing method will contribute to trust factor
in online shopping. Trust is the basis for all the online retailer in capturing consumers to buy
online (Lee and A.Kozar, 2006). The finding indicates customer trust on payment processing
has greatest positive impact on customers satisfaction towards online shopping. Meanwhile,
(Hans Van der Heijden, 2003) stated that trust is critical issue that has great effect on the
consumers online purchsing behavior. Human trust depend on technical competence od the
system, performance of the system and human operator’s undertanding of the underlying
characteristics and processes governing the system’s behavior.

Besides, trust is not the element that could influence customer satisfaction but also
can can contribute in developing customer loyalty (Aydin & Ozer, 2005) and (Du Plessis,
2010). Therefore, in tourism studies, Loureiro and Gonzalez (2008) stated that tourists’ trust
has a strong influence on their loyalty and satisfaction toward rural lodging. Based on (Lau &
Lee, 1999) trust between each other, it will develope positive behavioral intentions towards
the other party. Trust has influence on credibility and credibility will eventually has impact on
the customer’s satisfaction (Sentosa, 2013). There is a study on determinants of customer
satisfaction in online shopping which also identify the relationship between trust and
consumer’s satisfaction on online shopping (Szu Yuan Sun, 2012).

Satisfaction will be expected to be increased when a customer trusts a service

provider (Kassim & Abdullah 2008). Without trust customers will have no confidence to buy
on oline purchasing. Therefore, if a customers do not trust on the online retailer service
provider, the customer may then be dissatisfied with that service provider. This will cause
consumer to refuse on buying on that site or previous online retailer. In previous research,
(Harris & Goode, 2004) and (Kim et al. 2009) agreed that trust is found to be a significant
elements that could impact on consumer’s satisfaction in online environment. Thus, online
retailer supposed established trust element on their sites in order to fulfill customer
satisfaction.

2.5 THE RELATIONSHIP BETWEEN SECURITY AND CONSUMER’S SATISFACTION

Other factor that could lead to satisfaction is security element in online shopping.
According to (Xiaoying Guo, 2012), the study indicates in determining the relationship
between security and consumer satisfaction. Security involve in protecting consumers data
and information from other parties (Christy and Matthew, 2005). In (Xiaoying Guo, 2012)
research finding, the hypothesis is supported that security has positive relationship with
consumer’s satisfaction. Therefore, (Christian and France, 2005) supported the statement
and reconfirmed that there are positive link between security and satisfaction. On the other
hand, (Franzak et al, 2001) convey that security involve in secure payment and maintain
consumers privacy of online communication. Thus, (Ranjbarian et al, 2012) study focus on
the factor influencing on customers’ e-satisfaction. In the research, the results revealed that
security have influence on customer satisfaction. The elements in security are invove
consumers privacy data and financial security that relate with online transaction process on
online shopping.

Therefore, (Amoroso & Hunsinger, 2008) reports that 75 per cent of the online
shoppers highlight credit card security as major consideration when they decide to buy or
not. This is because there are so many issues about credit card stealing information and use
it without owner’s permission. Based on Ranjbarian et al, 2012) finding result, it found that
the consumers agree that security is significant to consumers’ satisfaction on online
shopping. One of the (Nikhashem et al, 2011) study, it focus on determining the relationship
among the factors that cause choice of e-ticketing and some other aspects of online
ticketing. As he state, for all business that related with internet or online transaction, the
online retailer firm must put it as major concern. The result confirmed that security has
positive relationship to build consumers’ satisfaction through online shopping. According to
(Udo, 2001), security and privacy have positive relationship between each other.

Besides, (Salim, 2000) mention that privacy relate with consumer data, while security
is a concern of any accidental comprised of consumer data to other third parties such as
hackers and indentify thief. Thus, protection in consumer privacy data and secure the
information data from other parties becomes the main roles that could contribute to
satisfaction which help internet shopping growing tremendously (Yu and Abdulai, 2000). Last
but not least, (Tuyet Mai et al, 2014) also conclude that security factor positively influences
customer satisfaction in online shopping. Therefore, (Jin and Park, 2006) and (Park and Kim,
2003) have proved in their research that perceived security is a significant factor contributor
to satisfaction.
2.6 SCHEMATIC DIAGRAM

Convenience

Trust Consumers’ Satisfaction

Security

Independent variables Dependent variable

Figure 1.0 framework diagram

Adopted from Schaupp L.C & Belanger F. (2005). A conjoint analysis of online consumer
satisfaction. Journal of Electronic Commerce research, 6(2), 95-110.
 CHAPTER 3

3.0 RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter presents an overview of the research design and aims to deal with the
method and procedures employed to address the following research objectives: (1) To
identify the main factor that contribute to consumer’s satisfaction; (2) To investigate the
relationship between independent variables (convenience, trust and security) and dependent
variable (consumer’s satisfaction) towards online shopping.

The procedures that were employed to achieve the objectives stated above are
described in the following sections. Specifically, this chapter provides description of the
research design of this study, the research framework, descriptions of how the research
variables were measured, instrument used in collecting data, the targeted population and
estimation of sampling size, sampling technique used, the data collection procedures and
finally, how the data was analyzed.

3.2 RESEARCH DESIGN

According to (Sekaran and Bougie, 2013), researh design is a blueprint for the
collection, measurement, and analysis of data, based on the research questions of the
study. (Polit & Beck, 2012) identify a research design as the researcher’s overall for
answering the research question or testing the research hypothesis. Besides, Burns and
Grove (2003) labeled research design as a blueprint for conducting a study with maximum
control over factors that may interfere with the validity of the findings. This study will be
designed to use a descriptive correlational design to identify the differences in means and
frequency distribution of customers’ satisfaction, the dependent variable and the selected
independent variables. Meanwhile, correlation study is also used in this research finding to
provide sufficient information in order to identify whether there is positive relationship
between the variables or vice versa.
 3.2.1 Purpose of Study

This chapter is an exploratory study utilizing quantitative approach. This study

is to aim consumers' satisfaction towards online shopping as well as the key
factors that will impact to consumers’ satisfaction among the consumers.
Usually, exploratory research relies on secondary research and a qualitative
approach is to collect information such as informal discussion. Thus, this
research used secondary sources in order to gather information which
includes books, journals, and articles. In addition, a questionnaire survey was
used to gather primary data for this research. The questionnaire survey
focused on the satisfaction towards online shopping as well as the key factors
that will impact to consumers’ satisfaction among the consumers.

3.2.2 Unit of Analysis

The unit of analysis refers to the level of aggregation of data collected during
the subsequent data analysis stage (Sekaran & Bougie, 2013). For this
research study, unit of analysis involve is the individuals. It means that data
will be collected from each of individual and treating each employees
response as an individual data source. Therefore, every each of the
individuals do not have the same characteristics as group. Hence, the nature
of the information gathered, as well as the level at which data aggregated for
analysis, are integral to decisions made on the choice of unit of analysis.

3.3 VARIABLES

Dependent variable : Consumers’ satisfaction

Independent variables : i) Convenience factor

ii) Trust factor

iii) Security factor

3.4 THEORITICAL FRAMEWORK

A theoretical framework has been developed based on the discussion above. There are
three items under independent variables which are convenience, trust and security factors.
Therefore, for customers’ satisfaction will be the dependent variable for this research study.
This model represents to determine the relationship between independent variables and
dependent variable towards online shopping.

Convenience

Trust Consumers’ Satisfaction

Security

Independent variables Dependent variable

Figure 1.0: Theoretical framework

Adopted from Schaupp L.C & Belanger F. (2005). A conjoint analysis of online consumer
satisfaction. Journal of Electronic Commerce research, 6(2), 95-110.
3.5 SAMPLING DESIGN

3.5.1 Population of Study

Almost all scientific methods of research obtain their information from the
respondents called population. Population refers to the entire group of
peoples, events of things of interest that the researcher wishes to investigate
(Sekaran, 2000). Therefore, the target population of the respondents for this
research would cover among civil engineering part 5 UiTM students which are
located in Shah Alam. In this study, civil engineering part 5 UiTM students
consist of male and female and range of age group and sample of 100
respondents will be number of population.

3.5.2 Sampling Technique

Actually there are two techniques can be used in determining sampling

technique which consist of random sampling and non-random sampling.
Based on (Norazman et al, 2012) random sampling is the process of selecting
sample that would be representative of the population of interest, while in
difference, non-random sampling sampling does not provide an equal chance
for every member of the population to be selected as sample in a research.
Therefore, the technique used in this research study is Convenient sampling
because of the selection of participants is determine by chance of being
selected to be part of the sample

3.5.3 Sampling Size

Thus, this research study wants to identify what are the relationships between
independent variables (convenience, trust and security) and dependent
variable (consumers’ satisfaction) towards online shopping. The
questionnaires will be distributed to the targeted number of population which
is about 100 respondents. The respondents for this research would cover
among the civil engineering part 5 UiTM students which is located in Shah
Alam which consist of male and female and range of age group.
3.6 DATA COLLECTION METHOD

The data collection method used to collect information as well as research findings.
Thus, this study is depending on two sources certainly using primary and secondary data in
collecting information. The sources of primary data are collected through a self-administered
questionnaire. Meanwhile the sources of secondary data are collected through preliminary
readings of the journal articles.

3.6.1 Sources of Primary Data (Questionnaire Survey)

The questionnaire is divided into five sections which consisted of Section A, B

and C. Basically, Section A is the part to assess the respondent’s
backgrounds and demographics which consists of gender, age, education
level, monthly income. Meanwhile, Section B is constructed based on
independent variables that could influence in consumers’ satisfaction in online
shopping. For the other section which is Section C are encompassed of the
dependent variable of this study which is consumers’ satisfaction. For this
Section A, the scales used for the measurement are nominal scale by ticking
the categories or group. For example, gender – male or female. Other scale
that use in measurement for Section A is dichotomous scale which is used to
elicit a Yes or No answer. For example, have you ever had online shopping –
Yes or No. Besides, for Section B, and C likert scale is used as a method for
measurement by ranging the numbers from 1 = “strongly disagree”, 2 =
“disagree”, 3 = “neutral” 4 = “agree” and 5 = “strongly agree”. Therefore, this
allows the researcher to distinguish consumers in term of how they differ from
one another by indicates the scales.

3.7 DATA ANALYSIS METHOD

After data are obtained through the questionnaire, it need to be coded, key
in and edited. In order to coded, key in and edited, the data of the study will
be analyzed by using the Statistical Package for the Social Sciences or
known as (SPSS). For example gender can be coded as 1 (male) and 2
(female). The analysis of the data was performed in two procedures:
descriptive statistic and correlation analysis.
3.7.1 Descriptive Statistic

According to Leary (2001), descriptive statistics is a powerful tool to describe

and understand the data so that they can be easily comprehended by others.
The descriptive statistics employed in this study were as followed: (1)
measures of central tendency; (2) measures of variability; and (3) frequency
distribution. These statistics were used to extract and summarize quantitative
information from the sample.

3.7.2 Correlation Statistic

According to (Ary, et al., 1996), correlation statistic is a statistical technique

used to measure the strength of the association or co-variation that exists
between two quantitative variables. The strength of the relationship between
two variables is measured by the coefficient of correlation, r, whose values
may range from -1 to +1. If the direction of the relationship between two
variables is positive, it means that high scores of one variable are associated
with high scores of another variable and vice versa. When there is a
relationship, correlation coefficient can also determine the strength of the
relationship whether the variables have a strong relationship or a weak
relationship. The closeness of the correlation coefficient to one implies a
strong relationship between the two variables. When the correlation
coefficient is zero, there is no correlation between the two variables. In this
study, (Elifson, et al., 1998) rule of the thumb was used to interpret the
strength of the relationship.
3.8 CONCLUSION

This study is aim to assess the consumers' satisfaction on online shopping

as well as the key risks factors that impact on satisfaction when they make
online purchasing. Therefore, the questionnaire is the appropriate
instrument to assess the relationship between independent variables
(convenience, trust and security) and dependent variable (consumers’
satisfaction) among the consumers towards online shopping. Thus, the
validity and reliability of the questionnaires will be tested in the SPSS. This
study is an exploratory study utilizing quantitative approach. The
questionnaires will be distributed to the employees of Auditra Trading and
UiTM students which located in Shah Alam. The employees and students
that involve will be male and female where the total population will be 100
the respondents will be as a sample for this study.
CHAPTER 4 FINDING AND ANALYSIS
4.0 INTRODUCTION

For this chapter, it begins with analysis on demographic data of respondents and then
followed by online shopping key factors that could lead to consumers’ satisfaction. It aims to
further analyze the collected data from the questionnaires and also to construct excellent
graph and charts into meaningful insights. Hypotheses were tested by factor analysis,
reliability test, and multiple regression analysis through SPSS 18.0. SPSS is very user-
friendly and interactive and has the capability to seamless interface with different database.
Overall, this chapter represents the findings and analysis of this research.

4.1 DATA COLLECTION

In this research, questionnaire design had been used as a primary data collection in order to
gain immediate data from the employees. The questionnaire was distributed to the civil
engineering part 5 UiTM student 1st December to 10th December of 2015. Therefore, 100
questionnaires were received within 10 days.. Thus, all valid data was inputted into SPSS for
statistical tests and analysis. The demographic profile, online shopping key factors,
relationship between the variables and customer satisfaction were hence interpreted.
4.2 FREQUENCY ANALYSIS

4.2.1 Gender
Based on Table 4.01, it can be concluded that 48.0% (48) and 52.0% (52) of the
respondents represented male and female respectively who have responded to the
questionnaires. The significant gender distribution of female outnumbering male can be due
to the scope of distribution of the questionnaire. Therefore, from the result, it can be
concluded that there was slightly more female student compare to male student in civil
engineering part 5.

GENDER

Frequency % Valid % Cumulative %

Valid male 48 48.0 48.0 48.0
Female 52 52.0 52.0 100
total 100 100.0 100.0

Table 4.01: frequency for Responder’s Gender

4.2.2 Age
From the Table 4.02, it shows that the largest group age was in 21-25 years old which constituted
47.0% (47) of the respondents, and the second largest group is from 26-30 years old which had
27.0% (27). Then, it followed by 24% (24) of the respondents that was from group age that was over
31 years old. Thus, the least is below 20 years old of which only 2.0% (2) of the respondents
belonged to this age group.

AGE

frequency % Valid % Cumulative %

Valid below 20 2 2.0 2.0 2.0
21-25 47 47.0 47.0 49.0
26-30 27 27.0 27.0 76.0
Over 31 24 24.0 24.0 100.0
Total 100 100.0 100.0
Table 4.02: frequency for Responder’s Age