Chapter 4

Research Methodology and

Data Base
 Chapter 4: Research Methodology and Data Base

CHAPTER 4

RESEARCH METHODOLOGY AND DATA BASE

There have only been limited studies to measure service quality of e-retailers in India.
There was one study by Consumer Voice (2014) to develop a quality of service scale
for e-tailers to which the researcher was a part of. This researcher has used the
learning from the 2014 study and has referred to it as the baseline study for the
purpose of the present study.

4.1 Baseline Study Methodology

The Consumer VOICE Study to which the researcher was a part of, prepared a
checklist of issues for the purpose of conducting preliminary interviews.

A sample of 100 respondents was taken from personal contacts and snowballing
technique. The Interviews (personal and telephonic) conducted were recorded in the
form of summaries.

Arrive at list of variables

A list of 140 variables was arrived at after conducting the 100 in-depth interviews.
After each in-depth interview the variables arising out of them were identified. These
variables were listed in the interview summary and numbered. Those variables that
were repeated were given the same number when they first arose.

Importance-Influence Matrix

Once a list of 140 variables was drawn up, an Importance Influence Matrix was created.
It’s a 3 X 3 matrix with Importance on the Y axis and Influence on X axis is created. The
variables on this grid based on their importance and influence.

The 112 variables were grouped under suitable headings based on similarity. This was
done by first preparing a table wherein all 112 variables were listed in one column
and in the second column questions related to those variables were listed. Those

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variables that related to same/similar questions were grouped under one heading. As a
result, there were 12 headings for variables created.

Certain indicators like those related to trust issues with respect to products offered
online, purchasing high value items, unknown sites etc. were ignored for the purpose
of the study although they were important and influential to consumers as they did not
relate to the objectives of rating e-commerce Sites or identifying consumer detriment
for the Consumer VOICE study.

On observing the twelve headings it was seen that they could be grouped under two
broad constructs of Pre and Post Purchase Behaviour as follows:-

Table 4.1: Pre-Purchase and Post Purchase Heads

Pre-Purchase Behaviour Post-Purchase Behaviour

1. Browsing Experience and Visual Appeal 10. Refund

2. Search Experience 11. Return/Replacement
3. Range and Availability of Products 12. Customer Care
4. Comprehensiveness of Information
5. Comparison Facility
6. Terms and Conditions
7. Shopping Cart
8. Payment Process
9. Delivery

After finalizing the important and influential variables, questions were developed
based on the finalized variables. The prepared questionnaire was pilot tested to
develop the final questionnaire.

A sample of 1327 respondents, mainly from cities of Delhi & NCR, Chandigarh and
Lucknow was collected by means of structured questionnaire. Structural Equation
Modeling (SEM) technique was used to determine the impact of various dimensions
on overall satisfaction.

The results of the Consumer VOICE study indicated an overall satisfaction with most
of the sites with minor differences in the sites satisfaction scores. As the scale used for

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the study was a five-point scale one of the criticisms it faced was that a 7 or 10 point
scale would be more suitable to capture the variances in opinion of the consumers.
The items in the study were also not tested for their reliability and validity. Apart
from that the questionnaire was criticized for being difficult to administer as
respondents were asked to give weights to different factors and write down scores
than tick boxes. The sample of respondents was also skewed towards Flipkart hence
the comparison of scores vis-a-vis different sites became a problem.

The researcher has kept in mind the criticism of the methodology used in Consumer
VOICE Baseline Study and finalized on an improvised methodology. The literature
review in the previous chapter which threw up a number of variables considered
relevant for the study.

Approach to Finalize Items

The approach of the present study has been to arrive at the items of service quality
scale from Literature Review as these items have already been tested for their
reliability and validity and therefore offer a theoretically stronger basis to build a
scale. Instead of taking any particular scale and applying it in the Indian context the
researcher has used a number of studies to develop a more comprehensive scale. The
table below gives us the list of items finalized on the basis of literature review in
Chapter Two:-

Table 4.2: List of items based on Literature Review

Items
1. This site makes it easy to find what I need.
2. It makes it easy to get anywhere on the site.
3. It loads its pages fast.
4. The site is simple to use.
5. The site is well organised.
6. It is quick and easy to complete a transaction on this website
7. The site has a wide variety of products that interest me
8. This e-retailer’s Web site is visually pleasing
9. I am able to see the graphics clearly on this e-retailer’s Web site.
10. This e-retailer’s Web site does not have fine print that is difficult to read.

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11. Information contained on the website is accurate and relevant

12. Information contained on the website is pretty much what I need to carry out my tasks
13. Information contained on the website is easy to understand
14. This e-retailer’s Web site has information that is objective
15. The site protects information about my Web-shopping behaviour.
16. It does not share my personal information with other sites.
17. This site protects information about my credit card
18. I feel safe with my transactions on this website
19. I feel like my privacy is protected at this site
20. Symbols and messages that signal the site is secure are present on this e-retailer’s Web site.
21. This site is always available for business.
22. This site launches and runs right away.
23. This site does not crash.
24. Pages at this site do not freeze after entering my order information
25. This e-retailer gives the customer numerous payment options.
26. You get what you ordered from the site
27. The product is delivered by the time promised by the company
28. The product that came was represented accurately by the company
29. The items the company claims to have are in stock
30. It is truthful about its offerings
31. This e-retailer’s orders are protectively packaged when shipped.
32. All orders by this e-retailer are delivered undamaged.
33. Damage rarely occurs during transportation of my order from this e-retailer.
34. This e-retailer gives the customer multiple delivery time options (e.g., next day, 3- to 5-day
delivery, or 5-to 7-day delivery).
35. The time between placing and receiving an order is short.
36. This e-retailer is able to respond to a rush order
37. Returning items is easy and straightforward
38. The site offers to pick up items I want to return from my home or business.
39. Inquiries are answered promptly
40. When you have a problem the website shows sincere efforts to resolve them
41. This site provides a telephone number to reach the company.
42. This site has customer service representatives available online.
43. This site compensates me for problems it creates.
44. It compensates me when what I ordered doesn’t arrive on time.

A comparison is drawn between with the 2014 Consumer VOICE baseline study to
measure the quality of service in India. The table below shows how the items for the
present study have been broken down into finer components in comparison to the
baseline study.

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Table 4.3 Comparison of Items of Baseline Study and Present Study
Dimension & Their Items for Baseline Study
Website Design Dimension
It is easy to navigate on the site
The layout of web pages is clutter free and
visually appealing
The search results are relevant and easy to sort
with adequate number of filters
Multiple products for same use can be compared
on the site with ease
The site offers a wide range of brands and
products under each product category
Missing Item
Missing Item
Missing Item
Information Adequacy Dimension termed as
Comprehensiveness of Information with an
item from Search Experience
The search results appear unbiased/ independent
(don’t prompt one type of brand or product)
The information is true, comprehensive, accurate
and up-to date with respect to products/
availability/ quality/ usage
Privacy Dimension as Payment Process
Do you feel the site assures of data privacy and
safety?
Functionality Dimension covered as Payment
Process
The Payment mechanism offered by the site is
useful for you (payment option provided)
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Dimension & Their Items for present Study
Website Design Dimension
Easy to navigate
The site is visually pleasing
Site is well organised
Site is simple to use
Ease of finding what is needed
Missing Item
Site has a wide variety of products
This site does not have fine print that is difficult
to read.
Quick and easy to complete a transaction on the
site
Pages load fast
Information Adequacy Dimension
The site has information that is objective
Information contained on the website is
accurate and relevant
Information contained on the website is easy to
understand
Information contained on the website is easy to
understand
Privacy Dimension
The site protects information about my Web-
shopping behaviour.
It does not share my personal information with
other sites.
This site protects information about my credit
card
I feel safe with my transactions on this website
I feel like my privacy is protected at this site
Symbols and messages that signal the site is
secure are present on this e-retailer’s Web site
Functionality Dimension
This e-retailer gives the customer numerous
payment options
 Chapter 4: Research Methodology and Data Base

Missing Items This site is always available for business.

Delivery Dimension
The delivery is reliable and on-time
The product delivered is in good condition
These were phrased as negatively worded items:
Delivery of a completely different product from
what was ordered
Delivery of the same product but in a different
size/ color/ other specification
Product/accessories missing
Quality of Product was poor
Customer Service
Questions Related to Customer Service were
asked only to those who had face a problem when
shopping online. They were related to the type of
deficiency faced by the Customer Care Execs
This site launches and runs right away.
This site does not crash.
Pages at this site do not freeze after entering my
order information
Fulfillment/Reliability Dimension
The product is delivered by the time promised
by the company
All orders by this e-retailer are delivered
undamaged.
This e-retailer’s orders are protectively
packaged when shipped.
Damage rarely occurs during transportation of
my order from this e-retailer.
You get what you ordered from the site
The product is delivered by the time promised
by the company
The product that came was represented
accurately by the company
The items the company claims to have are in
stock
It is truthful about its offerings
Customer Service
Returning items is easy and straightforward
The site offers to pick up items I want to return
from my home or business.
Inquiries are answered promptly
When you have a problem the website shows
sincere efforts to resolve them
This site provides a telephone number to reach
the company.
This site has customer service representatives
available online.
This site compensates me for problems it
creates.

Note: In the Baseline Study questions regards to delivery and Customer Care were
only asked to those who faced a problem while shopping online that severely
restricted the number of respondents. In the present study the researcher has changed
the questions to more positive statements. This will help in assessing the delivery and
customer care aspects without restricting the number of respondents to only those who
have faced a problem.

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The present study did not take comparison facility as a separate dimension as it was
not mentioned in literature review or the focus group discussions explained later in
this chapter, held for this study. Also in the VOICE Study it was found to have no
significant impact on overall service quality.

4.2 Focus Group Discussions

As measuring e-tail service quality is relatively new in India and most of the studies
have looked at developed markets, it becomes important to conduct a qualitative study
to further explore the factors that could define e-tail service quality in India from the
consumers’ perspective. The variables generated out of the literature review in the
Table 4.3 need further confirmation for which the Focus Group Discussion is used.

For this the researcher conducted 3 focus group studies consisting of 7-10 consumers
in each group, who have shopped online or have some experience with browsing on
online shopping sites. They were asked questions related to their online shopping
experiences, what are the reasons they chose a website for shopping and what they
considered as components of good service. They were given a feedback form that
contained the list of items identified by the researcher that could determine overall
service quality. Each of the focus group members gave their input on what they
considered as relevant while evaluating a website’s quality of service. Each of the
focus group’s lasted for about an hour or so. They were held on 7th, 9th and 16th of
May 2015. The discussions were video recorded and there were two moderators
present. The moderator prepared notes which were later edited and finalized after
viewing the video recording. These notes are summarized in the following sections.

On the basis of the feedback forms the recommendations from each group were
compiled. The points that recurrently came up in all the three focus group discussion
were decided to be added in the questionnaire.

The following is a summary of discussion from each focus group in a tabulated form
comparing the views of members on different point of discussion. The table shows the
dimensions which have been discussed and analyzed in detail:-

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Table 4.4: Focus Group Discussion Summary
Focus Group 1
Socio- 8 Members comprising of 4 Males & 5
Demographic Females
Profile of Age Group: 19-20 year old
Members
Website Design & With respect to this dimension many felt that
Information at times there was information overload on
Adequacy the site with too many options that were
difficult to filter. Hence it was suggested to
add adequate sorting and filtering options
as an item in Website Design.
For sites like Flipkart and eBay that are
marketplace models, they preferred to first
read the customer reviews of seller are
important. It was suggested that sites that
provide ratings of the seller are useful for
purchase decisions.
One of the members suggested clarity on the
terms and conditions should an item added
to information adequacy. One of the members
suggested a need to have customer reviews
on the products as it helps her in the
purchasing decision. She did not prefer to buy
from those sites that did not have feedback
options.
Chapter 4: Research Methodology and Data Base
Focus Group 2
8 Members, All Females
Age Group: 26-30 year old
The members felt that there was too much
clutter on the site and poor filtering and
sorting options. Many a times there is a
difference in color and size of the product
displayed. In case of a possibility of
difference in color it must be clearly
mentioned on the site. One of the members
ordered a phone cover that described it
suitable for a particular phone model but did
not give further descriptions about its
dimensions. This turned out to be much
bigger fit than the phone.
Out of stock products are displayed on the
site regarding which the intimation is given
only after you have placed an order. This
results in delayed receipt of goods, reordering
and mental hassles for the consumer. There
was a suggestion to not display out of stock
products on the site. Promotional activities
were also found to be misleading in certain
sites.
In this case also there was a suggestion to
include sorting and filtering options to
improve search results. Also they need to
provide details of the seller on their site.
Amazon provides Amazon certified sellers
that help in choosing a trusted seller to
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Focus Group 3
7 Members, All males
Age Group: 18 years (2); 23 years (2), 26 years
(2); 54 years (1)
The members mostly agreed to all the items
identified by the researcher as relevant and
important. One item was not clearly understood
by them and was suggested to be reworded
(Point 10). A similar point was raised with
respect to ease of sorting and filtering the
products. There should be easy brand and
product categorization. One of the members
suggested the site should provide suggestions as
to the alternate substitutes to the product that are
not in stock. One of the members suggested no
additional pop ups should enter with the site.
It was discussed that there needs to be accurate
information regarding warranty and
guaranty of the products. Consumers have to
look extra hard to find this information although
it is the most important in case of electronic
products. Information regarding exchange and
refund must also be clearly stated. One of the
members was looking to buy a GPS Navigator
but did not find enough details and found the
information to be inadequate. One of the
members ordered a power band from Shopclues
because he was getting a very cheap price but it
turned out to be a fake. It was common
knowledge among members that eBay sells
copies of products that can be identified by the
massive discounts they offer. All of them also

Focus Group 1
Privacy All the focus members found transacting
online safe due to options like One Time
Password, Cash on Delivery. They only
suggested a need to stop spamming their
mail ids with promotional offers. Even after
unsubscribing to their mails they have been
spammed
Functionality
Chapter 4: Research Methodology and Data Base
Focus Group 2
purchase the product.
Pop up ads should not be there on the
website. They also felt that there was
information overload on sites with too many
options and clutter.
Sites must not force consumers for
compulsory app download on their phones to
browse on their mobile phones. Many phones
don’t have that much storage and they would
rather buy from another site that doesn’t force
app download. The mobile site and site
browsed on laptop or tabs should have the
same pattern.
The members felt that after browsing for a
product online the ads related to the products
they searched for on social media sites were
at times helpful to find the products they
need. Although this may amount to violation
of privacy by sharing their search details, the
members did not seem to have a problem
with it.
Many members felt that they should not
receive any promotional messages unless
asked for.
During rush hours like big billion sale by
Flipkart the site was not able to deal with all
the orders in a timely fashion
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Focus Group 3
agreed to the fact that Rayban Sunglasses sold
online are not genuine. This kind of awareness
would only come with experience by shopping
online. It was discussed that most of the online
buyers who purchased products were not mature
enough and lacked awareness. For instance: it was
also felt that consumers don’t read everything when
ordering online. The finer details are at times
missed.
One of the members wanted to purchase a book
online but the price of books varies so much across
sites that there are chances of photocopied books
being sold online. The site does not mention the
paper quality. Majority felt that customer reviews
are important and seller ratings must be disclosed.
The members in this group did not seem to have
a problem with spam mails. They felt the current
safeguard mechanisms were pretty much safe to
carry out their transactions. In cases they were
uncertain they went for cash on delivery. They
were aware that their information is used to
analyse their shopping behaviour and target ads
at them but that did not seem to bother them.
It was suggested that sites should not hang
during times of heavy traffic at the time of big
discounts and attractive deals. Option for one-
day delivery must also be provided. Some were
also of the opinion that site functionality is also
dependent on factors like internet/mobile data
speed and connectivity.

Focus Group 1
Fulfillment One of the members faced a problem with
Flipkart when he ordered a phone online. The
earphones that he got were not original and
other parts were missing. Another member
complaint of getting an empty box from one
of the sites that was returned twice but he still
did not get the product ordered. They
discussed the need for free delivery that
would further encourage them to shop online.
One of the members keeps a time lag of a
month when he purchases online. Hence, even
if a product is delayed in delivery it doesn’t
bother him much. In case of products he
wants to purchase urgently he prefers offline
mode.
Customer Service There was a suggestion to add ease of
replacement of products to the items. Also
there are hardly any sites that have a
compensation policy. There needs to be a
complete disclosure of the return
replacement policy of the site. Many did not
have contact information on their site. In
certain cases, the calls were automated and
there was no live person to talk to
Chapter 4: Research Methodology and Data Base
Focus Group 2
Many had a bad experience with first copy
products sold as genuine. One of the
members purchased Rayban Sunglasses from
Flipkart that turned out to be a fake. It was
discussed that it is very difficult to
distinguish between a genuine and a first
copy, hence becoming difficult for them to
trust the authenticity of the products
offered, especially in case of handbags and
other accessories.
They also suggested that there must be an
option to pickup products from certain stores
near their residence. As all the members are
working professionals there is no one to
receive the products ordered at their
residence. Hence there was a suggestion that
the sites to need to provide an option for
delivery time. There should be an option like
morning or evening time slot etc.
Many a times the products delivered had a
very poor packaging as experienced by one of
the members.
The members found returning products easier
offline than online. They also suggested
adding an item on refund procedure that
should be simple and hassle free. Many sites
don’t provide cash back option for refund that
must be included.
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Focus Group 3
There should be an option for precise date
delivery so that the consumer is available to pick
up the product for collection. Many have started
giving their office addresses for delivery as they
find it convenient to receive the order. One of the
members commented that most of these sites
purposely commit to a longer delivery time say
6-7 days so that when the product is delivered
within 3 days it leads to customer delight. One
member suggested that the product needs to be
of the quality promised as many a times products
sold by clothing and apparel sites like Jabong are
old stock and not new. EMI options must be
clearly stated and should be reliable was also
commented by one of the members.
Some members also felt that there was a need
for faster delivery.
The members felt that customer care service no
must be 24 x 7. “If you can order at 10 pm the
customer care service number must also be
available at 10pm”. There was also suggestion to
provide an option for replacement or refund
while returning the product. Sites like Lenskart
only credit points in case of a return and do not
refund money that locks in the consumers’
money to a particular site even if they are not
interested in purchasing anything else from that
site. As most of these are market place models
there is a tendency not to take responsibility for

Focus Group 1
Customer The members had a tendency to choose
Satisfaction and whichever site offered the maximum
Loyalty discounts. However, this was not true for all.
Many felt that the credibility of the site and
its brand image were also important to switch
from one site to another. Although
satisfaction did not guarantee repurchase
intention for most dissatisfaction with the site
would be a major deterrent not to shop online.
Depending upon the product category they
Chapter 4: Research Methodology and Data Base
Focus Group 2
It was concluded that members were loyal to
multiple sites. If they were satisfied with a
particular site, they would first go that site for
repurchase but then compare its prices with
2-3 other sites.
In this case also the members were price
sensitive and would not simply buy from a
site if they are satisfied. They would look at
other sites with similar brand value e.g.:
Amazon and Flipkart. Whichever site offers a
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Focus Group 3
problems consumer face be it product defect or
delay in delivery. The members felt that there is
a need to regulate these sites and they should
come forward and take some responsibility for
problems consumers face. It was also felt that
consumers are also many a time impatient and it
takes time to return products. One of the
members had ordered a product that turned out to
be defective and had to reorder the same. On
receiving the second order he realized that the
seal of packaging of the first order was tampered
with, that he did not pay attention to. It was then
realized that in case a customer feels that the seal
is tampered he can refuse to take the order. Many
a time it was felt that there was pilferage at the
courier end for which the sites took no
responsibility.
In case of technical goods, the members felt
there must be some type of support provided by
the site. One of the members had purchased a
Chromecast that did not work properly and he
faced problems in installation. Although he got a
refund of the product it did not serve the purpose
of a convenient online purchase.
The members said that if they were satisfied with
the site they would definitely consider it as their
first choice for repurchasing. However, if they
find lower prices on other site they would also
consider that site as an option. One of the older
member of the focus group felt that there was a
first time problem to adjust to the site.
In case they were dissatisfied with a site then
they would not consider purchasing from it. The
members also felt that more than being loyal to a

Focus Group 1
will choose the site. For example, for clothes
they preferred to shop from Jabong, for
electronics they preferred Flipkart. However,
they would purchase only after comparing
prices with other sites as it only takes a few
seconds.
Also they felt that there are hardly any sites
that offer loyalty programs. Those that offer
such loyalty programs are on cashback sites
like Paytm and Freecharge etc.
Conclusion Most of the members placed a lot of emphasis
on discounts and prices. They were motivated
to shop online due to lower prices and didn’t
see the need to be loyal to any site. The
member who was the most frequent shopper
had no trust issues with any of the sites for his
purchases. The members who shopped less
frequently in comparison raised concerns
regarding warranty, guarantee offered by sites
as many were not provided by manufacturers.
Recommendation On the basis of the feedback forms and the
focus group it was considered to add the
following items into the study:-
1. The search results are easy to sort with
adequate number of filters
2. The site provides adequate information
Chapter 4: Research Methodology and Data Base
Focus Group 2
lower price they would purchase from there.
Due to the price sensitivity of Indian online
buyers it was decided to include this aspect into
the model. Apart from measuring loyalty in
terms of word of mouth and repurchase
intentions it was decided by the researcher to
include willingness to pay more and switch as
behavioural intentions after purchasing the
product from the site. This would help in
highlighting whether satisfied consumers would
be willing to pay slightly more for the site that
provides them with good quality of service or
would they switch to a site that offers lower
prices. Also two mediating variables have been
decided that may act as moderators between
customer satisfaction and loyalty: Perceived
Value and Inertia as in Anderson & Srinivasan
(2003)
On the basis of the feedback forms and the
focus group it was considered to add the
following items into the study:-
1. The search results are easy to sort with
adequate number of filters
2. The site provides adequate information
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Focus Group 3
particular site they were loyal to the product or
brand they were purchasing. Hence it did not
matter whether they were purchasing from a
Flipkart or amazon. In case there was a lesser
known site, then they would be doubtful about
purchasing from it.
Overall the members agreed to existing items
identified by the researcher. As in case of other
focus groups their intention to repurchase from a
site would be dependent upon the price at which
the product is available at other sites and the
credibility of the other site. It was also concluded
that there is a need to regulate sites as many offer
counterfeit products without taking any
responsibility for the hassle it causes consumers.
On the other hand, consumers need to be more
aware about the sellers they are purchasing from
and read the details of information provided to
avoid getting duped.
On the basis of the feedback forms and the focus
group it was considered to add the following
items into the study:-
1. The search results are easy to sort with
adequate number of filters

Focus Group 1
about the seller
3. Customer reviews about the product on
the site are useful in making purchase
decisions
4. Replacing Products is easy and
straightforward
5. The site does not spam me with
unwanted promotional messages
Chapter 4: Research Methodology and Data Base
Focus Group 2 Focus Group 3
about the seller 2. The site provides adequate information
3. Customer reviews about the product on the about the seller
site are useful in making purchase decisions 3. Customer reviews about the product on the
4. Replacing Products is easy and site are useful in making purchase decisions
straightforward 4. Replacing Products is easy and
5. The site does not spam me with unwanted straightforward
promotional messages 5. The site does not spam me with unwanted
6. The pictures of the product are not promotional messages
misleading in terms of color and /or size 6. The site provides multiple options for refund
etc. like cash refund/credit points
7. The site provides multiple options for 7. The product ordered was of the quality
refund like cash refund/credit points promised.
8. The refund procedure is quick and easy. 8. Customer Care is available 24x7 on the site
Some of the items were also suggested to be
reworded due to lack of clarity:-
The earlier item as per literature review under
Fulfillment was: The e-retailer is able to
respond to a rush order. This was found
to have different interpretations among
the members. Some felt it was referring
to heavy web traffic others thought it
referred to an immediate delivery of
order expected by the consumer.
1. The e-tailer is able to respond to order
even during heavy web traffic
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On the basis of the recommendations from 3 focus groups, six items that were common among the three groups were added to the items in
questionnaire and one item was added on the basis of one of the focus group discussions. None of the items finalized from literature review were
deleted. These were as follows:-

Table 4.5: Additional Items Added

Items Added Service Quality Dimension

The search results are easy to sort with adequate number of filters Website Design
The site provides adequate information about the seller Information Adequacy
Customer reviews about the product on the site are useful in making purchase decisions
The pictures of the product are not misleading in terms of color and /or size etc.
The site does not spam me with unwanted promotional messages Privacy
Replacing Products is easy and straightforward Customer Service
The site provides multiple options for refund like cash refund/credit points

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On the basis of the focus group and literature review the finalized list of 51 items is as
follows:-

Table 4.6: Finalized Items

Items
1. This site makes it easy to find what I need.
2. It makes it easy to get anywhere on the site.
3. It loads its pages fast.
4. The site is simple to use.
5. The site is well organised.
6. It is quick and easy to complete a transaction on this website
7. The site has a wide variety of products that interest me
8. This e-retailer’s Web site is visually pleasing
9. I am able to see the graphics clearly on this e-retailer’s Web site.
10. This e-retailer’s Web site does not have fine print that is difficult to read.
11. The search results are easy to sort with adequate number of filters
12. Information contained on the website is accurate and relevant
13. Information contained on the website is pretty much what I need to carry out my tasks
14. Information contained on the website is easy to understand
15. This e-retailer’s Web site has information that is objective
16. The site provides adequate information about the seller
17. Customer reviews about the product on the site are useful in making purchase decisions
18. The pictures of the product are not misleading in terms of color and /or size etc.
19. The site protects information about my Web-shopping behaviour.
20. It does not share my personal information with other sites.
21. This site protects information about my credit card
22. I feel safe with my transactions on this website
23. I feel like my privacy is protected at this site
24. Symbols and messages that signal the site is secure are present on this e-retailer’s Web site.
25. The site does not spam me with unwanted promotional messages
26. This site is always available for business.
27. This site launches and runs right away.
28. This site does not crash.
29. Pages at this site do not freeze after entering my order information
30. This e-retailer gives the customer numerous payment options.
31. You get what you ordered from the site
32. The product is delivered by the time promised by the company
33. The product that came was represented accurately by the company

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Items
34. The items the company claims to have are in stock
35. It is truthful about its offerings
36. This e-retailer’s orders are protectively packaged when shipped.
37. All orders by this e-retailer are delivered undamaged.
38. Damage rarely occurs during transportation of my order from this e-retailer.
39. This e-retailer gives the customer multiple delivery time options (e.g., next day, 3- to 5-day delivery,
or 5-to 7-day delivery).
40. The time between placing and receiving an order is short.
41. This e-retailer is able to respond to a rush order
42. Returning items is easy and straightforward
43. The site offers to pick up items I want to return from my home or business.
44. Inquiries are answered promptly
45. When you have a problem the website shows sincere efforts to resolve them
46. This site provides a telephone number to reach the company.
47. This site has customer service representatives available online.
48. This site compensates me for problems it creates.
49. It compensates me when what I ordered doesn’t arrive on time.
50. Replacing Products is easy and straightforward
51. The site provides multiple options for refund like cash refund/credit points

These items have been used to create a Questionnaire to measure e-service quality.

4.3 Questionnaire Designing

The questionnaire has been designed using the items from literature review and
feedback from Focus Group. Question numbers one to eight are screening questions
regarding respondents’ online shopping frequency, devices used to shop online and
products purchased. Only those respondents who had purchased atleast once in the
past six months would be eligible to rate the site. They should have also visited online
shopping sites atleast once in the past one month. This helped in ensuring that the
respondents had experience of purchasing with the site as well as a more recent
experience of browsing through the sites. They were asked about their history of
purchasing with the site to identify the time period of engagement of the respondents
with the sites they are rating. The questions were multiple choices based and the data
so achieved was nominal data.

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Question numbers 9 to 60 are the items related to measuring e-service quality for e-tail
sites using a 7 point Likert scale (1- Strongly Disagree to 7 – Strongly Agree). Constructs
related to overall satisfaction, loyalty, perceived value and price sensitivity have been
taking from the literature. These are validated items measured on a 7-point scale. As
discussed in the previous sections the items have been arrived at using a combination of
validated e-SQ items from earlier studies as well as inputs from Focus Group
Discussions. To measure overall satisfaction, the study has adapted the scale developed
by Oliver (1980). Customer Loyalty and Price Sensitivity were measured using the scale
items adapted from (Zeithaml, Berry, & Parasuraman, 1996). Perceived Value has been
determined by the scale used by Anderson & Srinivasan (2003).

Question numbers 75-83 are classification questions that relate to age, gender,
income, occupation and SEC Category of the respondents.

4.4 Pretesting and Pilot Testing

To ensure face validity, the questionnaire was pretested by taking feedback from
fellow researchers and colleagues from marketing field. The inputs were taken from a
total of 5 people who analyzed the wording of the questionnaire, response categories,
the length of the questionnaire and the screening questions. They were asked to
identify any ambiguities in the questionnaire from the format or wording of the
questions. After much deliberation it was decided to limit the sample to those who
had purchased from the site atleast once in the last six months. Also it was felt that if
a respondent is an online shopper then in most cases they would have purchased from
more than one site and hence would be capable to rate two sites at once. This would
not only increase the responses but can also help in getting sufficient sample for
comparing two or three major sites. After revising the questionnaire, the next step was
to conduct the Pilot Study.

A pilot of 68 respondents was undertaken using convenience sampling technique. The

sample consisted of 20 males and 48 females. The sample for the pilot study
comprised mostly of college students (64.7%) who were pursuing their graduation
degree (51.5%). Approximately 30% of the respondents were working in the private
or government sector. Hence the age group of the sample for pilot majorly belonged

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to the age bracket of 18-25 yrs. (66.2%) followed be 25-25 yrs. age bracket (26.5%).
After an initial sample of 30 the questionnaire was modified on the basis of feedback.
Two items were reworded for simplification and ease of understanding. (See
Appendix I)

The overall reliability of the questionnaire was tested using Cronbach’s Alpha that
was equal to .970. Also for each of the factors determined for estimating overall
quality of service and the constructs related to overall satisfaction, perceived value,
loyalty and price sensitivity the reliability was tested separately and item to total
correlation was observed for initial purification of the scale and deletion of any items
that have low item to total correlation.

The following table shows the Cronbach’s Alpha for each of the dimensions
identified:-

Table 4.7: Reliability of Constructs

Dimension Cronbach’s Alpha

Website Design .914

Information Adequacy .794

Privacy .824

Functionality .829
Fulfillment .883

Customer Service .918

Overall Satisfaction .970

Perceived Value .911

Loyalty .945

Price Sensitivity .712

As each of the dimensions showed a reasonably good amount of reliability it was

decided not to delete any item even though a few items if deleted would have further
increased the reliability of certain dimensions.

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After collecting the pilot sample, it was observed that there was a need to insert a
screening question before respondents answered questions related to customer service.
Only if they had dealt with the customer service of the site should they move on to
answering the next set of ten questions. This would help in ascertaining the number of
respondents who had actually dealt with the customer service of the site.

There was a second change done in the questionnaire post the pilot study. This related
to the products purchased. In the pilot questionnaire there was only one general
question related to products purchased from the sites they were rating. However, post
the pilot it was realized that respondents visit a particular site for specific products.
Hence this would also be an interesting finding which can help us determine what
sites are visited by online shoppers for specific product categories.

4.5 Data Collection

Post the changes in the questionnaire it was decided to collect sample using both
offline and online mode for maximum reach. A total of 400 questionnaires were filled
out using offline and online mode. In the offline mode questionnaires were physically
distributed and collected post the filling up of questionnaires. For this six research
assistants were hired and paid a fixed stipend per questionnaire. They each had a
quota of 25 questionnaires to be completed and filled using convenience sampling
technique. As a result, 150 questionnaires were collected with the help of research
assistants. The rest of the 165 questionnaires collected using the offline mode was
done using snowballing technique. The questionnaires were filled out by college
students, faculty members of colleges and various working professionals.

For the online mode an interactive pdf file was created wherein the respondents could
download and fill out the questionnaire. The online questionnaires were distributed by
mail and the respondents emailed back the filled out questionnaires. Through this
mode 85 questionnaires were collected.

After screening out the incomplete questionnaires and those with contradictory
answers there were 381 questionnaires left.

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Thus a total of 449 respondents (including pilot sample) with total site ratings of 831
were collected. On looking at the sampling adequacy requirements this number seems
to be well sufficient to conduct Structural Equation Modelling test. According to Hair,
Black, Babin, & Anderson (2009) for conducting SEM the recommended sample size
ranges from 150-200 and sample sized in the range of 200-400 are suggested as a
good for conducting SEM .

4.6 Sample Characteristics

A total sample of 449 respondents was collected that comprised of 229 females (51%)
and 220 males (49%). The sample was taken entirely from the Delhi NCR area. Most
of the respondents were young and belonged to the 18-25 years’ age group (249,
55.5%) followed by 26-35 years’ age group (126, 28.1%). There were only 40
respondents in the 36-50 years’ age group and 9 respondents in the above 50 years’
age group indicating that most of the online shoppers are in the younger bracket of
18-35 years. There were also 25 respondents in the sample who were less than 18
years of age indicating a high inclination of the younger generation to choose online
mode for shopping.

Table 4.8: Gender Composition

Gender
Cumulative
Frequency Percent Valid Percent
Percent
Male 220 49.0 49.0 49.0
Valid Female 229 51.0 51.0 100.0
Total 449 100.0 100.0

Majority of the respondents were under graduates (197, 43.9%) closely followed by
142 (31.6%) respondents who were post graduates. There were 60 respondents with a
professional qualification and 43 respondents were 12th pass indicating an educated
sample.

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Table 4.9: Education Composition of Sample

Cumulative
Frequency Percent Valid Percent
Percent
12th Pass 43 9.6 9.6 9.6
Under Graduate 197 43.9 43.9 53.5
Post Graduate 142 31.6 31.6 85.1
Professional 60 13.4 13.4 98.4
SSC/HSC 6 1.3 1.3 99.8
School 5-9 years 1 .2 .2 100.0
Total 449 100.0 100.0

Almost half of the respondents were students (214, 47.7%) and the other significant
half (48.3%) comprised of respondents working in the private sector (152, 33.9%),
government sector (31, 6.9%), self-employed (19, 4.2%) or into business of their own
(15, 3.3%).

Table 4.10: Occupation Composition of Sample

Cumulative
Frequency Percent Valid Percent
Percent
Private 152 33.9 33.9 33.9
Government 31 6.9 6.9 40.8
Self-Employed 19 4.2 4.2 45.0
Unemployed 5 1.1 1.1 46.1
Business 15 3.3 3.3 49.4
Housewife 12 2.7 2.7 52.1
Student 214 47.7 47.7 99.8
Others 1 .2 .2 100.0
Total 449 100.0 100.0

Majority of the respondents in the sample comprised of individuals with family

income above Rs.10 lacs (189, 42.1%) followed by 142 respondents (31.6%)

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belonging to Rs.5-10 lac income category and 87 respondents (19.4%) in the Rs. 2-5l
ac category and only 31 respondents (6.9%) belonged to less than Rs.2 lac income
category. This shows that most of the online shoppers belong to the higher income
category.

Table 4.11: Income Composition of Sample

Cumulative
Rupees Frequency Percent Valid Percent
Percent
Less than 2 lacs 31 6.9 6.9 6.9
2lac-5lac 87 19.4 19.4 26.3
5lacs-10lacs 142 31.6 31.6 57.9
More than 10lacs 189 42.1 42.1 100.0
Total 449 100.0 100.0

The SEC category of 82.9% of the respondents was A1 reiterating the fact that most
of the online shoppers belong to a reasonably well off economic background.

Table 4.12: SEC Composition of Sample

Frequency Percent Valid Percent Cumulative Percent

A1 372 82.9 82.9 82.9
A2 54 12.0 12.0 94.9
A3 17 3.8 3.8 98.7
B1 6 1.3 1.3 100.0
Total 449 100.0 100.0

Majority of the respondents (227, 50.6%) had visited online shopping sites 1-4 times
in a month. This reflects that most of the respondents were fairly familiar with the e-
tailing sites. While only 88 respondents had visited online shopping sites 5-8 times in
a month, there were 134 respondents (29.8%) who had visited online shopping sites
more than 8 times in a month.

Most of the respondents (254,56.5%) had a frequency to purchase one to four times
from a site in the last six month followed by 122 (27.2%) respondents who were more

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frequent online buyers with a frequency to purchase 5-8 times in the last six months.
There were 73 respondents who had purchased more than 8 times in the last six
months and belonged to the most avid online shoppers category.

Maximum respondents (248, 55.2%) shopped online using their mobile phones
followed by 158 respondents (35.2%) who used laptops/netbooks for shopping online.
There were only 32 respondents who used desktops and 11 who used tablets to shop
online.

Table 4.13: Devices Used while Shopping

Cumulative
Frequency Percent Valid Percent
Percent
Desktop 32 7.1 7.1 7.1
Laptop/Netbook 158 35.2 35.2 42.3
Mobile Phone 248 55.2 55.2 97.6
Tablets 11 2.4 2.4 100.0
Total 449 100.0 100.0

The most frequently opted mode of payment by respondents was Cash on Delivery
with 248 respondents (55.2%) choosing it as their first preference followed by a total
of 158 respondents (35.2%) preferring debit cards or credit cards as their first
preference for mode of payment. Negligible number of respondents chose mobile
banking or e-wallet as their first preference of mode of payment.

Table 4.14: First Preference in Mode of Payment

Cumulative
Frequency Percent Valid Percent
Percent
Credit Card 75 16.7 16.7 16.7
Debit Card 83 18.5 18.5 35.2
Internet Banking 30 6.7 6.7 41.9
Mobile Banking 5 1.1 1.1 43.0
e-wallet 5 1.1 1.1 44.1
Cash on Delivery 248 55.2 55.2 99.3
Others 3 .7 .7 100.0
Total 449 100.0 100.0

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There were only 265 respondents who had a second preference for mode of payment.
Out of these respondents 140 respondents preferred debit cards/ credit cards as their
second most preferred choice of mode of payment. This was followed by Cash on
Delivery and Internet Banking.

Table 4.15: Second Preferred Mode of Payment

Mode_Pay2
Cumulative
Frequency Percent Valid Percent
Percent
Credit Card 46 10.2 17.4 17.4
Debit Card 94 20.9 35.5 52.8
Internet Banking 41 9.1 15.5 68.3
Mode of
Mobile Banking 7 1.6 2.6 70.9
Payment
e-wallet 11 2.4 4.2 75.1
Cash on Delivery 66 14.7 24.9 100.0
Total 265 59.0 100.0
Missing System 184 41.0
Total 449 100.0

The sample had a good history of dealing with the sites with 265 respondents (59%)
who had an experience of 12 months or more experience in purchasing with the site.
There were 75 respondents (16.7%) with a history of 6 to 12 months with the site, 60
respondents (13.4%) with a history of 3 to 6 months and 48 respondents (10.7%) with
a history of less than 3 months.

Table 4.16: Sites Rated

Cumulative
Frequency Percent Valid Percent
Percent
Flipkart 290 34.9 34.9 34.9
Amazon 233 28.0 28.0 62.9
Myntra 74 8.9 8.9 71.8
Jabong 59 7.1 7.1 78.9
Koovs 7 .8 .8 79.8
Infibeam 2 .2 .2 80.0
StreetstyleStore 3 .4 .4 80.4
Snapdeal 84 10.1 10.1 90.5
Lenskart 1 .1 .1 90.6
Shopclues 9 1.1 1.1 91.7
eBay 20 2.4 2.4 94.1

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Cumulative
Frequency Percent Valid Percent
Percent
Bewakoof 1 .1 .1 94.2
Zivame 2 .2 .2 94.5
Limeroad 4 .5 .5 94.9
Firstcry 1 .1 .1 95.1
Junglee 2 .2 .2 95.3
FernsNPetals 1 .1 .1 95.4
Paytm 10 1.2 1.2 96.6
Naaptol 3 .4 .4 97.0
Rediff 2 .2 .2 97.2
Shop18 3 .4 .4 97.6
Craftsvilla 3 .4 .4 98.0
Askmebazar 2 .2 .2 98.2
LocalBaniya 1 .1 .1 98.3
Stalkbuylove 1 .1 .1 98.4
Faballey 1 .1 .1 98.6
Nature's Basket 1 .1 .1 98.7
Homeshop18 2 .2 .2 98.9
Aaramshop 1 .1 .1 99.0
ELITIFY 1 .1 .1 99.2
Yepme 1 .1 .1 99.3
Socratees 1 .1 .1 99.4
Cyankart 1 .1 .1 99.5
Nykaa 1 .1 .1 99.6
Forevernew 1 .1 .1 99.8
Forever21 1 .1 .1 99.9
Voonik 1 .1 .1 100.0
Total 831 100.0 100.0

As most of the respondents rated two sites the total responses for site ratings were
831. The most rated site was Flipkart with 290 responses (34.9%) followed by
Amazon with 233 responses (28%), Snapdeal 84 responses (10.1%), Myntra with 74
responses (8.9%) and Jabong with 59 responses (7.1%). A total of 38 sites were rated
by the respondents but there were only 5 major sites that received the maximum
response ratings by the respondents as they were more frequently visited for
purchasing online in the last six months.

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Out of these 831 responses, 428 respondents (51.5%) had purchased 2-4 times from
the sites they rated in the last six months. This shows that most of the respondents
were well versed with the sites they rated and had reasonable amount of experience to
rate the sites. There were 200 responses to site rating that had only purchased once
from the site in the past six months while 118 had purchased 5-8 times from the site in
the past six months.

Table 4.17: Frequency of Purchase from Site

Frequency Percent Valid Percent Cumulative Percent

2-4 times 428 51.5 51.5 51.5
5-8 times 118 14.2 14.2 65.7
8 times or more 85 10.2 10.2 75.9
Once Only 200 24.1 24.1 100.0
Total 831 100.0 100.0

Electronics formed the highest category of products purchased (367, 18.56%)

followed by apparels (286, 15.16%), footwear (251, 14.37%), fashion accessories
(236, 11.30%) and books (230, 10.70%).

Table 4.18: Product Categories Purchased

Product Categories Purchased Frequency Percentage

Books/Magazines 230 10.70%
Stationery 64 2.98%
Home Decor/Furnishing 82 3.81%
Fashion Accessories 236 11.30%
Toys/Games 67 3.49%
Baby Care 32 1.86%
Electronics 367 18.56%
Apparels 286 15.16%
Footwear 251 14.37%
Jewellery 51 3.49%
Personal Healthcare 94 6.23%
Cosmetics 64 4.79%
Auto Accessories 48 3.26%
Total 2150 100%

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It was further explored what products respondents were purchasing from the top 5
most rated sites.

From the table below (Table 4.19), it can be seen that in terms of absolute numbers
Electronics were mostly purchased from Flipkart followed by Amazon. Electronics
also formed the highest category of products purchased for Flipkart as well as
Amazon. This category was followed by Books as the second highest category of
products purchased for both Flipkart and Amazon.

For Snapdeal, the top two most purchased product categories were Electronics
followed by Fashion Accessories.

For Apparels, in terms of percentage Myntra had the highest percentage of products
purchased followed by Jabong. However, in terms of absolute numbers it was Flipkart
followed by Amazon. Fashion accessories were the second highest category of
products purchased for Jabong. Yet again if one looks at the absolute figures it was
Flipkart followed by Amazon. For Myntra, the second highest purchased product
category was footwear followed by fashion accessories.

Table 4.19: Product Categories Purchased from Top 5 sites

Product Categories Flipkart Amazon Myntra Jabong Snapdeal

Books/Magazines 107 13.11% 105 16.01% 0 0 0 0 12 9.09%

Stationery 35 4.29% 24 3.66% 0 0 0 0 4 3.03%
Home
29 3.55% 25 3.81% 11 6.83% 3 2.14% 13 9.85%
Decor/Furnishing
Fashion Accessories 90 11.03% 62 9.45% 37 22.98% 42 30.00% 19 14.39%
Toys/Games 29 3.55% 26 3.96% 0 0 0 0 5 3.79%
Baby Care 17 2.08% 15 2.29% 0 0 0 0 1 0.76%
Electronics 182 22.30% 148 22.56% 0 0 0 0 33 25.00%
Apparels 101 12.38% 64 9.76% 58 36.02% 50 35.71% 16 12.12%
Footwear 90 11.03% 65 9.91% 40 24.84% 28 20.00% 13 9.85%
Jewellery 19 2.33% 20 3.05% 4 2.48% 2 1.43% 4 3.03%
Personal Healthcare 50 6.13% 52 7.93% 4 2.48% 8 5.71% 4 3.03%
Cosmetics 41 5.02% 26 3.96% 6 3.73% 7 5.00% 4 3.03%
Auto Accessories 26 3.19% 24 3.66% 0 0 0 0 4 3.03%
Total 816 100% 656 100% 161 100% 140 100% 132 100%

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Flipkart and Amazon appeared to be the most frequently visited sites for all
purchasing needs. Hence they show higher numbers even for product categories like
apparels, footwear and fashion accessories in spite of there being two popular and
dedicated sites, solely for such product category needs. Snapdeal, as per the results,
was trailing behind in numbers for all product category purchases.

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