New quality evaluation framework is assessed, tested and devised against two global websites in order to validate the reliability of the framework. The upshot of this study is that it can be used by organisations in order to assess their website quality and simultaneously use the framework to analyse their potential gaps or faults in their digital strategy.

1.
WHY DO E-COMMERCE WEBSITES FAIL TO DELIVER ROI:
DEVELOPMENT OF QUALITY EVALUATION FRAMEWORK ©
BY
MANU FOTEDAR

2. i
ABSTRACT
Organisations
today
are
augmenting
towards
the
reality
of
online
business
and
its
rising
ROI.
Websites
are
no
longer
are
just
being
used
for
browsing
purposes
but
regardless
of
domain
websites
are
shifting
and
maturing
towards
a
more
thriving
reality
of
B2C
E-­‐commerce.
However
doing
so,
ample
number
of
organisations
fail
to
achieve
the
success
they
anticipated,
for
this
purpose
organisations
need
to
realise
how
to
get
customers
converted
and
retained
while
maintaining
their
website
up
to
the
user
expectations.
For
the
same
purpose
the
fundamental
intention
of
this
study
was
to
develop
a
new
website
quality
evaluation
framework
for
B2C
E-­‐commerce
websites.
Considering
the
development
of
the
framework
this
study
extensively
researches
the
factors
of
website
failures,
looks
at
the
previous
quality
evaluation
frameworks,
while
developing
quality
criteria
for
the
framework
based
on
the
literature
and
the
survey
analysis.
As
a
result
a
new
quality
evaluation
framework
is
provided
which
later
is
assessed
and
tested
against
two
global
websites
in
order
to
validate
the
reliability
of
the
framework.
The
upshot
of
this
study
is
that
it
can
be
used
by
organisations
in
order
to
assess
their
website
quality
and
simultaneously
use
the
framework
to
analyse
their
potential
gaps
or
faults
in
their
website.
Keywords:
ROI,
B2C,
E-­‐commerce

3. ii
Table
of
Contents
ABSTRACT
..............................................................................................................................................
2
ABBREVIATIONS
&
DEFINITIONS
.........................................................................................................
8
Chapter 1
...............................................................................................................................................
1
Introduction
.........................................................................................................................................
1
1.1
General
Background
..................................................................................................................................
1
1.2
Research
purpose
and
objectives
.........................................................................................................
4
1.3
Significance
of
research
...........................................................................................................................
4
1.4
Dissertation
structure
..............................................................................................................................
5
Chapter 2
...............................................................................................................................................
8
Overview of factors leading to website failures
......................................................
8
2.1
E-­‐commerce
..................................................................................................................................................
8
2.2
E-­‐commerce
as
disruptive
innovation
................................................................................................
9
2.3
Reasons
for
failure
of
E-­‐commerce
websites
..................................................................................
10
2.3.1
Absence
of
strategic
direction
.........................................................................................................................
11
2.3.2
Failure
in
customer
management
..................................................................................................................
13
2.3.3
No
customer
personalisation
and
Incentives
..............................................................................
15
2.3.4
Payment
gateway
Issues
...................................................................................................................................
18
2.3.5
Out-­‐dated
website
functionality
....................................................................................................................
20
2.3.6
Lack
of
Trust:
Security
and
Privacy
..............................................................................................................
23
2.3.7
Search
engine
visibility
......................................................................................................................................
27
2.4
Website
Abandonment
Motives:
Seven
Hypothesis
Based
.........................................................
29
2.5
Conclusion
..................................................................................................................................................
33
Chapter 3
............................................................................................................................................
34
Measuring customer satisfaction: E-commerce applicability
........................
34
3.1
Impact
of
customer
satisfaction
..........................................................................................................
34
3.2
Determinants
of
customer
satisfaction
.............................................................................................
36
3.2.1
System
Quality
.......................................................................................................................................................
37
3.2.2
Information
Quality
.............................................................................................................................................
41
3.2.3
Service
Quality
.......................................................................................................................................................
43
3.3
Website
quality:
Success
factors
.........................................................................................................
45
3.4
Conclusion
..................................................................................................................................................
48
Chapter 4
............................................................................................................................................
49
Overview of website quality evaluation
......................................................................
49
4.1
Need
for
Quality
Evaluation
..................................................................................................................
49
4.2
Existing
website
quality
models
..........................................................................................................
50
4.2.1 Web - QEM (Web Quality Evaluation Model)
.............................................................................................
51
4.2.2
MiLE
(Milano-­‐Lugano)
........................................................................................................................................
52
4.2.3
MINERVA
(Ministerial
Network
for
Valorizing
Activities
in
Digitization)
..................................
53
4.2.4
E-­‐SEQUAL
.................................................................................................................................................................
54
4.2.5
Global
Quality
Evaluation
(GQE)
....................................................................................................................
55
4.3
Problems
with
existing
quality
models
............................................................................................
56

4. ii
4.4
Construction
of
the
new
framework
..................................................................................................
58
4.5
Conclusion
..................................................................................................................................................
59
Chapter 5
............................................................................................................................................
60
Methodology
....................................................................................................................................
60
5.1
Research
approach
..................................................................................................................................
60
5.2
Research
design
and
structure
............................................................................................................
61
5.2.1
Target
population
.................................................................................................................................................
61
5.2.2
Structure
...................................................................................................................................................................
62
5.2.3
Assumptions
...........................................................................................................................................................
64
5.2.4
Sampling
and
data
collection
procedures
..................................................................................................
66
5.3
Survey
limitations
....................................................................................................................................
67
5.4
Conclusion
..................................................................................................................................................
67
Chapter 6
............................................................................................................................................
68
The survey findings and analysis
.......................................................................................
68
6.1
Reliability
and
validity
...........................................................................................................................
68
6.2
Distribution
of
statistical
variables
...................................................................................................
71
6.3
Frequency
distribution:
Likert
scale
.................................................................................................
76
6.3.1
Respondents
opinion
on:
what
do
you
look
for
in
a
website
.............................................................
77
6.3.2
Respondents
opinion
on:
Ideal
website
activities
..................................................................................
82
6.3.3
Respondents
opinion
on:
Website
abandonment
factors
...................................................................
89
6.4
Cross
analysis
............................................................................................................................................
91
6.5
Conclusion
..................................................................................................................................................
93
Chapter 7
............................................................................................................................................
94
Discussion: Development of framework & testing
...............................................
94
7.1
Existent
attitude
of
website
users
......................................................................................................
94
7.1.1
User
requirements
measurements
...............................................................................................................
94
7.2
Foundation
for
new
framework
..........................................................................................................
96
7.2.1
Qualities
criteria’s
behind
new
framework
...............................................................................................
96
7.3
Presentation
of
new
framework
......................................................................................................
105
7.4
Testing
of
new
framework
.................................................................................................................
106
7.4.1
Applying
proposed
framework
to
ASOS
and
yesstyle
websites
....................................................
107
7.5
Conclusion
...............................................................................................................................................
108
Chapter 8
..........................................................................................................................................
109
Conclusion
........................................................................................................................................
109
8.1
Research
limitations
............................................................................................................................
113
8.2
Recommendations
for
future
research
..........................................................................................
114
8.3
Research
implications
.........................................................................................................................
115
REFERENCE
.....................................................................................................................................
117
BIBLIOGRAPHY
.............................................................................................................................
122
APPENDICES
...................................................................................................................................
127

5. iv
TABLE
OF
FIGURES
FIGURE
1
B2C
SALES
2013
............................................................................................................................................................
2
FIGURE
2
DISSERTATION
STRUCTURE
...........................................................................................................................................
7
FIGURE
3
WEBSITE
PLAUSIBILITY
................................................................................................................................................
11
FIGURE
4
GENERIC
STRATEGIES
MATRIX
....................................................................................................................................
12
FIGURE
5
CUSTOMER
LIKELIHOOD
FACTORS
.............................................................................................................................
14
FIGURE
6
ONLINE
BUSINESSES
STRATEGIES
..............................................................................................................................
16
FIGURE
7
TARGETTED
E-­‐MAILS
....................................................................................................................................................
17
FIGURE
8
CUSTOMER
SATISFACTIONS
SURVEY
..........................................................................................................................
19
FIGURE
9
TESCO
CHECKOUT
PROCESS
.........................................................................................................................................
20
FIGURE
10
CUSTOMER
DRIVING
CHANNELS
...............................................................................................................................
22
FIGURE
11
CHANNELS
FOR
CREATING
ALERTS
..........................................................................................................................
23
FIGURE
12
UK
INFORMATION
SECURITY
BREACHES
...............................................................................................................
26
FIGURE
13
CONCERN
FOR
SECURITY
ISSUES
..............................................................................................................................
26
FIGURE
14
GLOBAL
ONLINE
AD
SPENDING
................................................................................................................................
28
FIGURE
15
TRAFFIC
SOURCES
FOR
WEBSITES
...........................................................................................................................
29
FIGURE
16
CAUSES
FOR
WEBSITE
ABANDONMENT:
HYPOTHESIS
USABILITY
......................................................................
33
FIGURE
17
EXPECTANCY
-­‐DISCONFIRMATION
FRAMEWORKS
................................................................................................
35
FIGURE
18
MODEL
FOR
DETERMINING
CUSTOMER
SATISFACTION
.......................................................................................
37
FIGURE
19
WEBSITE
PAGE
DESIGN
EXAMPLE
............................................................................................................................
38
FIGURE
20
USER
SEARCH:
AMAZON.COM
...................................................................................................................................
39
FIGURE
21
QUADRANT
ANALYSIS
FOR
SATISFACTION
RATING
...............................................................................................
41
FIGURE
22
CUSTOMER
RETENTION:
DISCOUNTS
OFFERED
.....................................................................................................
43
FIGURE
23
WEBSITE
ABANDONMENT:
DELIVERY
TIME
ESTIMATION
..................................................................................
44
FIGURE
24
WEB – QEM MODEL EXAMPLE
...........................................................................................................................
52
FIGURE
25
GLOBAL
QUALITY
EVALUATION
FRAMEWORK
......................................................................................................
56
FIGURE
26
MODEL
FOR
CONSTRUCTION
OF
FRAMEWORK
......................................................................................................
58

6. v
FIGURE
27
RESEARCH
METHODOLOGY
FRAMEWORK
..............................................................................................................
64
FIGURE
28
AGE
GROUP
OF
RESPONDENTS
..................................................................................................................................
72
FIGURE
29
WEBSITE
HOURS
.........................................................................................................................................................
73
FIGURE
30
PRIORITY
FOR
SEARCH
RESULTS
..............................................................................................................................
74
FIGURE
31
PERSONALISATION
PREFERENCE
.............................................................................................................................
75
FIGURE
32
USER
COMMUNICATION
PREFERENCE
.....................................................................................................................
76
FIGURE
33
OVERALL
RESULTS:
WHAT
USERS
LOOKS
FOR
IN
A
WEBSITE
.............................................................................
81
FIGURE
34
OVERALL
AGREEMENT
STATISTICS
..........................................................................................................................
81
FIGURE
35
OVERALL
FACTORS
RESPONSIBLE
FOR
WEBSITE
EFFECTIVENESS,
USABILITY,
AND
POPULARITY
...............
87
FIGURE
36
USER
PERSPECTIVE:
IDEAL
WEBSITE
......................................................................................................................
88
FIGURE
37
AGREEMENT
FACTORS
FOR
WEBSITE
ABANDONMENT
........................................................................................
89
FIGURE
38
SURVEY:
WEBSITE
ABANDONMENT
FACTORS
.......................................................................................................
91
FIGURE
39
NEW
WEBSITE
QUALITY
EVALUATION
FRAMEWORK
........................................................................................
105

7. v
List
Of
Tables
TABLE
1
CUSTOMER
AND
MERCHANT
PERSPECTIVE
AGAINST
REALISTIC
MEASURES
........................................................
25
TABLE
2
KEY
POINT’S
FAILURE
FACTORS
OF
E-­‐BUSINESS
WEBSITES
....................................................................................
32
TABLE
3
REPEAT
PURCHASE
DRIVERS
........................................................................................................................................
42
TABLE
4
ESSENTIAL
QUALITY
FACTORS
......................................................................................................................................
48
TABLE
5
QUALITY
CHARACTERISTICS:
QUALITY
MODELS
........................................................................................................
57
TABLE
6
SCALE
RELIABILITY
STATISTICS
...................................................................................................................................
70
TABLE
7
ITEM-­‐TOTAL
STATISTICS
..............................................................................................................................................
70
TABLE
8
CASE
PROCESSING
SUMMARIES
...................................................................................................................................
71
TABLE
9
DESCRIPTIVE
STATISTICS
..............................................................................................................................................
71
TABLE
10
FREQUENCIES
TABLE
LOOKING
FOR
DESIGN
AND
FEEL
IN
A
WEBSITE
...............................................................
77
TABLE
11
FREQUENCIES
TABLE
LOOKING
FOR
FUNCTIONALITY
IN
A
WEBSITE
.................................................................
78
TABLE
12
FREQUENCIES
TABLE
LOOKING
FOR
USABILITY
IN
A
WEBSITE
...........................................................................
79
TABLE
13
FREQUENCIES
TABLE
LOOKING
FOR
CUSTOMISATION
IN
A
WEBSITE
.................................................................
79
TABLE
14
FREQUENCIES
TABLE
TARGET
ADVERTISEMENTS
.................................................................................................
82
TABLE
15
FREQUENCIES
TABLE
WEBSITE
PAGE
RANK
FACTOR
.............................................................................................
83
TABLE
16
FREQUENCIES
TABLE
FOR
DESIGN:
WEBSITE
EFFECTIVENESS,
USABILITY
AND
POPULARITY.
.......................
84
TABLE
17
FREQUENCIES
TABLE
WEBSITE
PERSONALISATION
FACTOR
...............................................................................
85
TABLE
18
FREQUENCIES
TABLE
FOR
ONLINE
MARKETING
.....................................................................................................
86
TABLE
19
FREQUENCIES
TABLE
FOR
SOCIAL
MEDIA
PRESENCE
.............................................................................................
86
TABLE
20
FRAMEWORK
QUALITY/
CRITERIA
JUSTIFICATION
.............................................................................................
104
TABLE
21
TESTING
FRAMEWORK
FACTORS
WITH
WEBSITES
..............................................................................................
107

8. viii
ABBREVIATIONS
&
DEFINITIONS
ROI-­‐
Refers
to
an
investment
where
the
investor
gains
a
benefit
from
the
same.
B2C-­‐
Business
to
consumer/customer
Refers
to
as
a
market
where
the
transactions
occur
between
the
business
and
the
customer.
Also
completely
opposite
when
compared
to
B2B
commerce.
E-­‐Commerce
Refers
to
buying
and
selling
of
goods,
services
and
other
commodities
over
the
medium
of
Internet.
HCI
(Human–computer
interaction)
The
contemporary
definition
of
HCI
refers
to
the
study
or
planning/design
of
interaction
between
people
and
computers,
which
can
involve
studied
considering
the
computer
science
or
behavioral
aspects
of
humans
Bounce
rate
Also
referred
to
as
exit
rate,
it
calculates
the
percentage
of
users
who
enter
the
website
and
exit
the
website
without
further
looking
into
webpages.
SSL
(Secure
socket
layer)
Secure
set
of
protocols,
which
provide
secure
transactions
over
the
medium
of
Internet.
Landing
pages
Refers
to
the
webpage,
which
is
displayed
when
the
user
clicks
on
the
website’s
links
on
search
engines.
Keywords
These
are
the
keywords,
which
the
users
use
while
searching
for
product/services
on
search
engines.
SEO
Includes
the
techniques
which
are
paid
(PPC)
or
unpaid
(Organic)
for
improving
the
website’s
visibility
on
search
engines.

9. ix
Chapter 1
Introduction
The
following
chapter
introduces
the
background
of
this
study.
Subsequently
it
allows
the
reader
to
distinguish
the
background
information
relating
to
the
topic
of
website
failures
and
the
development
of
a
quality
evaluation
framework.
It
follows,
then
by
looking
into
detail
the
current
quality
evaluation
frameworks
and
thus
constructing
a
new
framework
while
considering
website
success
factors,
reasons
behind
failures,
and
asserting
on
website
quality
measures
to
be
taken
for
customer
satisfaction.
Consequently,
the
problem
statement,
research
purpose,
key
objectives
along
with
the
structure
of
this
research
will
be
shown.
1.1
General
Background
In
business
today
electronic
commerce
has
surged
beyond
the
expectations,
it
has
outpaced
the
traditional
selling
environment
(LEVY,
2001).
Likewise
survey
shown
below
from
emarketer,
(2013)
suggests
that
e-­‐commerce
sales
have
achieved
an
all
time
record
of
$1.298
trillion
worldwide
for
2012,
showing
an
overall
growth
of
21.1%
globally.

10. Chapter
1:
Introduction
2
Source:
(emarketer,
2013)
Figure
1
B2C
sales
2013
Hence
attracting
new
customers
and
retaining
existing
customers
is
cardinal
for
any
E-­‐
commerce
organisation
for
achieving
success.
As
highlighted
by
Boston
Consulting
group,
(2000)
most
of
the
customers
who
have
intentions
to
make
purchases
online
abandon
the
website
due
to
poor
and
low
quality.
Also
a
survey
of
230
established
B2C
websites
conducted
by
Jupiter
Research,
(2003)
came
to
conclusion
that
most
of
the
website
had
errors
in
their
home
pages
and
were
conspicuous
enough
to
cause
abandonment
from
the
customers.
In
the
same
way
any
e-­‐commerce
website
which
is
erroneous
in
its
design
and
marketing
to
its
customers
shows
that
they
have
low
online
visibility
and
presence
therefore
leading
to
disregard
of
purchase
intent
from
the
customer
(Nielsen,
2000),
Moreover
any
B2C
website
should
be
designed
according
to
the
specific
needs
of
organisation’s
intended
customer
base
and
in
accordance
with
the
success
factors
later
discussed
in
Chapter
3.
Hence
creating
quality
based
websites
should
be
the
priority
of
any
B2C
organisation
looking
to
venture
into
the
online
market
or
any
anticipating
return
on
their
current
website.
Furthermore
websites
should
be
created
in
order
to
attract
and
retain
visitors,
and
achieving
the
same
should
be
their
most
vital
objectives
(Vassilopoulou
et
al.
2001).
In
other
words
every
website
should
be
created
with
customers
as
main
focus
while
designing
and
0
50
100
150
200
250
300
350
400
450
US
China
UK
japan
Germany
In
Billions
Country
B2C
ecommerce
sale
in
$
billion,
Top
5
countries
2013
2012
2011

11. Chapter
1:
Introduction
3
simultaneously
marketing
products
and
services
in
accordance
to
the
customers
that
the
organisation
wish
to
target.
Consequently
studies
of
(Chau
et
al.
2000,
Liu
and
Arnett
2000,
Koufaris
et
al.
2001,
Koufaris
2002,
Palmer
2002)
have
illustrated
various
factors
relating
to
the
success
of
e-­‐commerce
websites
also
Marian
Petre,
(2011)
established
attributes
that
help
enhance
the
total
customer
experience.
Consequently
reasearch
shown
by
(Ton˜
ita
Perea
y
Monsuwe´,
2004)
illustrate
factors
that
drive
consumer
to
shop
online
while
considering
consumer
attitude
towards
intention
to
shop
online.
Although
it
is
true
that
most
of
the
websites
today
fail
to
deliver
satisfactory
experiences
for
users
and
hence
are
not
able
to
retain
the
visitors.
Therefore
developing
rich
quality
content
websites
is
of
utmost
importance.
Number
of
studies
from
(Cimino
et
al.
2008,
Merwe
et
al.
2003)
have
suggested
website
guidelines,
usability
evaluation
techniquies
along
with
quality
evaluation
models.
However
the
aforementioned
research
of
website
quality
evaluation
do
not
provide
the
quality
characteristics
in
a
structured
manner
also
these
quality
factors
do
not
address
the
website
properties
directly,
similiraly
they
do
not
consider
different
viewpoints
based
on
the
website
function.
Nevertheless
research
by
Álvaro
Rocha,
(2012)
discusses
the
quality
evaluation
model
based
on
content,
service,
and
technical
quality
attributes
of
the
website.
Although
there
is
extensive
research
on
the
quality
evaluation
framework,
but
they
have
a
rather
one-­‐size-­‐fits-­‐all
approach.
In
other
words
every
website
will
have
different
customer
base
and
corresponding
prespective
to
follow,
hence
a
more
customer-­‐centric
approach
is
needed.
Moreover
most
of
the
websites
which
fail
are
not
able
to
retain
customers
due
to
poor
experiences
on
their
prior
visit.
Therefore
developing
websites
with
quality
and
guidelines
as
disscussed
in
this
research
is
cardinal
for
return
on
investment
(ROI).

12. Chapter
1:
Introduction
4
1.2
Research
purpose
and
objectives
The
objective
of
this
research
study
is
to
design
quality
evaluation
framework
for
e-­‐business
websites.
The
basis
of
which
are
various
factors
involving
failure
or
sub-­‐optimal
results
for
websites,
discussions
from
previous
website
quality
frameworks
along
with
determinants
of
customer
satisfaction
criteria
for
websites
have
been
studied
and
applied
in
order
to
create
the
new
framework.
Also,
this
research
study
attempts
to
determine
factors
or
guidelines,
which
are
imperative
for
establishment
of
successful
websites.
In
order
to
achieve
the
aforementioned
purpose
of
the
research
study
the
following
objectives
need
to
be
accomplished
1. To
Identify
current
factors
for
website
failures
or
sub-­‐optimal
results.
2. To
Identify
determinants
for
customer
satisfaction
and
subsequent
understanding
customer
needs
for
e-­‐commerce
website.
3. To
purpose
a
quality
evaluation
framework
based
on
empirical
data
and
the
literature
discussed.
4. Assessing
the
effectiveness
of
the
purposed
quality
evaluation
framework
against
two
global
E-­‐Commerce
websites.
1.3
Significance
of
research
Due
to
the
increasing
of
B2C
websites
today
customers
have
become
dependable
on
e-­‐
commerce
websites
on
a
perennial
basis.
In
fact
most
of
the
organisations
today
are
trying
to
tap
into
the
e-­‐commerce
market
such
that
it
increases
their
customer
base
and
therefore
allowing
them
to
gain
the
reach
by
introducing
their
products
through
a
broader
medium.

13. Chapter
1:
Introduction
5
Therefore
a
well
designed
website
interface
always
has
a
concrete
and
positive
effect
on
the
customer’s
visit
of
the
e-­‐commerce
website
and
helps
the
organisation
in
retaining
the
customer
(Fan
and
Tsai,
2010).
As
a
result
quality
evaluation
of
websites
has
become
a
cardinal
activity
for
organisations.
Since
the
usability
and
design
quality
of
the
website
leaves
major
effect
on
customer
willingness
to
come
back
to
the
website
(Gregg
and
Walczak,
2010)
which
is
also
later
corroborated
by
the
findings
in
this
research.
In
Naik
and
Tripathy,
(2008)
views
there
are
increasing
number
of
organistions
which
are
investing
in
their
online
profile
i.e
improving
their
online
visibility
and
market
which
as
a
result
makes
quality
evaluation
and
improtant
factor
to
assess.
Hence
the
literature
in
this
research
shows
that
the
frameworks
that
have
been
used
previously
were
evaluating
websites
are
based
on
the
content
quality,
technical
quality,
service
quality,
customer
relationship
management
(CRM)
integrated
in
Human–computer
interaction
(HCI)
and
interaction
between
the
characteristics
of
the
website.
But
to
fill
the
gap
in
the
literature
this
research
shows
the
reason
for
which
the
e-­‐commerce
fails
to
generate
the
Return
on
Investment
(ROI)
are
not
only
the
reasons
that
has
been
considered
in
the
previous
frameworks
but
website
failure
factors,
using
customer
perspective
to
design
websites
and
also
it
covers
the
previous
quality
evaluation
frameworks
and
consequently
purposes
a
new
framework
for
the
same.
Hence,
this
research
evaluates
the
website
quality
using
a
framework
that
is
based
on
the
characteristics
discussed
above.
1.4
Dissertation
structure
This
dissertation
comprises
of
eight
chapters,
the
structure
for
the
same
is
discussed
below.
Chapter
1
starts
with
introducing
the
general
background
of
the
study.
It
also
gives
a
brief
about
the
research
purpose
and
the
significance
of
the
research.
Next,
the
following
three
chapters
attempt
to
accomplish
the
research
objectives.

14. Chapter
1:
Introduction
6
Chapter
2
provides
the
overview
of
factors
leading
to
failure
of
E-­‐commerce
websites
and
subsequently
elaborates
the
reasons
for
failures.
Along
the
same
lines
it
also
predicts
seven
hypothesis
for
determining
website
failures.
Chapter
3
elaborates
the
measurement
of
customer
satisfaction
and
its
related
impact
on
website
quality.
Next,
it
determines
the
three
most
prominent
website
quality
factors
to
perceive
while
trying
to
satisfy
the
customer
needs.
This
chapter
concludes
on
discussing
the
website
quality
success
factors.
Chapter
4
arrives
at
exhibiting
the
previous
website
quality
evaluation
frameworks,
which
it
does
by
giving
an
overview
of
their
quality
factors
which
later
then
summates
to
the
development
of
the
new
framework.
Chapter
5
illustrates
the
research
methodology
used
in
this
research,
which
then
follows
with
explanation
of
the
research
approach
discussing
the
research
structure,
target
population.
Next,
it
attempts
to
signify
the
need
for
quantitative
analysis
in
this
research
and
simultaneously
shows
the
assumptions
and
sampling
methods
for
the
same.
Chapter
6
interprets
the
survey
findings
and
shows
the
derived
results.
Frequency
tables,
graphs
are
shown
such
that
the
quantitative
data
can
be
better
perceived
and
easily
understood.
Chapter
7
attempts
to
sum
up
and
give
and
upshot
survey
interpretation.
Next,
it
illustrates
the
foundations
of
the
framework
where
it
links
the
survey
findings,
literature
and
the
hypothesis
proposed
in
this
study
for
development
of
the
framework.
Furthermore,
it
discusses
the
quality
criteria
linked
with
the
new
quality
evaluation
framework
subsequently
it
presents
the
new
framework.
Following
this
the
chapter
concludes
on
testing
the
new
framework
against
two
global
websites
and
illustrates
the
reliability
of
the
framework.
To
summarise
then,
chapter
8
provides
a
short
summary
of
how
the
research
met
its
objectives
by
illustrating
each
objective
and
its
judgment
for
this
research.
Finally
it
discusses
the
research
limitations,
recommendations
for
future
work
and
to
follow
up
provides
a
brief
research
implication.

15. Chapter
1:
Introduction
7
Following
the
visual
representation
of
the
dissertation
structure
along
with
representation
of
where
it
will
meet
its
objectives
is
shown
in
the
Figure
2
below.
Figure
2
Dissertation
structure

16. Chapter
2:
Overview
of
factors
leading
to
website
failures
8
Chapter 2
Overview of factors leading to website failures
Preceding
chapter
introduced
the
general
background
and
stated
the
significance
of
this
research.
Simultaneously,
the
research
purpose,
key
objectives
and
structure
of
this
study
were
introduced.
This
chapter
will
commence
the
literature
review
by
considering
looking
at
definition
and
current
impact
of
E-­‐Commerce
its
importance
and
furthermore
moving
to
discussing
the
factors
that
lead
to
website
failures.
Firstly,
a
definition
of
E-­‐commerce
will
be
illustrated
along
with
its
disruptive
innovation.
Next,
the
chapter
will
further
point
out
major
reasons
involving
E-­‐Commerce
website
failures.
2.1
E-­‐commerce
E-­‐commerce
has
altered
the
ways
the
organisations
used
to
conduct
their
business.
For
these
business
organisations
e-­‐commerce
has
moved
from
an
alternative
to
an
imperative.
However
most
of
the
companies
are
still
struggling
to
identify
the
best
approach
for
establishing
and
conducting
the
business
in
the
digital
economy.
Some
of
the
companies
are
entirely
moving
towards
Web,
while
some
others
are
establishing
subsidiaries
and
then
converting
it
to
separate
entities
dealing
in
online
business
(Gulati,
2006)
and
some
others
are
looking
for
merging
up
with
other
online
start
ups.
In
simple
terms
there
is
no
such
prescription
or
model
that
helps
to
establish
an
e-­‐commerce
business
in
a
particular
industry.
This
is
due
to
the
fact
that
the
industries
are
now
fast
moving
since
they
are
operating
under
an
entirely
different
working
rules
and
principles
of
the
digital
economy.
E-­‐
commerce
signifies
a
paradigm
shift
and
not
just
another
way
that
helps
in
enhancing
and
sustaining
the
business
practices.
It
signifies
a
disruptive
innovation
that
has
changed
the
traditional
ways
of
conducting
business.

17. Chapter
2:
Overview
of
factors
leading
to
website
failures
9
2.2
E-­‐commerce
as
disruptive
innovation
Concept
of
sustaining
innovation
and
disruptive
innovation
and
technology
was
introduced
by
(Bower,
1995).
According
to
them
sustaining
innovation
or
technology
are
those
that
enhance
the
performance
of
the
product
or
business
operations,
while
on
the
other
hand
disruptive
innovations
are
those
that
initially
cause
degradation
in
the
business
but
promises
to
exhibit
greater
potential
in
the
near
future.
Similarly
there
are
two
visible
characteristics
that
can
be
found
in
the
businesses
that
undergo
technological
changes.
Firstly,
they
present
a
complete
set
of
different
performance
attribute
that
may
not
be
valued
by
the
existing
customers.
Secondly,
the
performance
attributes
that
are
valued
by
the
existing
customers
are
seen
to
improve
at
such
a
rapid
rate
that
the
new
innovation
or
technology
can
occupy
the
existing
market.
However,
the
practices
in
the
e-­‐commerce
business
cannot
match
the
key
performance
attributes
of
the
traditional
business
model.
For
instance,
the
security
and
privacy
that
is
present
in
the
business-­‐to-­‐customer
commerce,
the
capacity
and
robustness
that
are
present
in
the
system
of
electronics
data
transfer
in
business-­‐to-­‐business
commerce.
However
there
are
many
technological
innovations
that
help
in
improving
the
disruptive
technology’s
key
performance
attributes.
For
instance
as
highlighted
by
Lee,
(2001)
“streams
of
incremental
innovations
in
certificate
signature
technologies
will
eventually
replace
the
current
secure
socket
layer
technology
in
order
to
improve
online
transaction
security”.
The
performance
attributes
that
are
associated
with
disruptive
innovations
and
do
not
gain
support
from
the
customers
at
their
commencement
and
are
assumed
to
rise
along
a
steep
trajectory
and
satisfy
the
requirement
of
the
mainstream
customers
through
a
stream
of
sustained
innovation.
For
example
e-­‐commerce
helps
in
reducing
the
transaction
cost
of
both
the
suppliers
and
the
customers
and
ensures
that
the
information
reaches
to
a
large
number
of
consumers
without
affecting
the
richness
of
the
content
(Evans,
1997)

18. Chapter
2:
Overview
of
factors
leading
to
website
failures
10
2.3
Reasons
for
failure
of
E-­‐commerce
websites
Conventional
acumen
has
it
that
the
majority
of
reasons
for
failure
of
e-­‐business
websites.
However
factors,
which
leave
a
major
impact
on
the
customer
loyalty,
retention
and
acquisitions,
are
discussed
in
this
section.
For
instance
(Cao,
Zhang,
&
Seydel,
2005;
Frost
&
Strauss,
2002)
have
stated
that
the
design
quality
of
the
website
is
one
of
the
key
aspect
to
consider
since
the
website
is
the
ground
method
of
communication
with
the
customers,
hence
requiring
the
organisation
to
have
decent
website
design
for
reducing
the
bounce
rate.
Along
the
same
lines
studies
from
Forrester
Research
(2005),
have
shown
that
more
than
88%
of
website
users
abandon
their
cart/basket
in
a
website.
Likewise
Jupiter
research,
(2003)
findings
show
a
27%
shopping
basket
abandonment
rate
(Tarasofsky
2008).
Thus
it
is
important
to
understand
the
reasons
behind
these
website
abandonments,
furthermore
this
section
will
explore
the
reasons
for
websites
to
fail
so
frequently.
Therefore
in
order
to
investigate
this
situation
the
following
explores
variant
key
inhibitors
behind
website
failures.
Incidentally
while
the
users
are
amidst
the
shopping
process
on
the
website
several
factors
could
lead
to
website
abandonment
by
the
user,
however
a
more
behavioral
based
aspect
for
traditional
business
abandonment
by
customers
was
given
by
Howard
and
Sheth
(1969)
which
can
also
be
tested
or
implied
on
websites
today,
but
recently
more
customer
specific,
strategic
marketing,
technology
and
design
based
factors
are
mentioned
by
(Bwired,
n.d.,
2012;
coreDNA,
2009).
In
the
same
way
considering
the
surrounding
literature
and
understanding
for
the
same,
7
hypothesis
have
been
purposed
in
order
to
understand
the
correlation
between
these
factors
and
how
would
they
influence
the
website.
Among
these
factors
are
consideration
of
organistation
value
propostion
for
the
website,
targeting
the
right
audience,
website
design
factors
and
more.
Likewise
these
hypothesis(H)
will
help
correlate
the
website
plausibility
or
credibility
shown
in
Figure
3.
Since
credibility
of
website
is
cardinal
for
determining
if
a
website
is
reliable
and
can
become
an
criterion
for
determining
the
website
failure
or
succsess
(Junping
Qiu,
2007).

19. Chapter
2:
Overview
of
factors
leading
to
website
failures
11
Figure
3
website
plausibility
2.3.1
Absence
of
strategic
direction
In
the
discussions
of
Davis,
(2010)
he
argues
that
the
foremost
reason
of
e-­‐commerce
websites
failing
is
the
lack
of
strategic
direction.
Moreover
some
companies,
which
have
the
right
direction,
fail
in
the
planning
and
decision
making
process
since
they
were
rather
based
on
intuition.
Considering
the
case
for
having
the
strategic
direction
for
a
business
in
an
online
or
brick-­‐to-­‐
mortar
environment,
Martin
Lindstrom
et.
al,
(2000)
agrees
that
the
development
of
the
organisation
website
should
depict
its
brand
and
its
values.
However
if
the
website
allows
the
users
to
enter
into
a
two
way
dialogue
between
the
organisations
products
and
user,
this
would
help
develop
the
perception
of
the
user
in
a
more
practical
manner.
Whereas
a
“spray

20. Chapter
2:
Overview
of
factors
leading
to
website
failures
12
and
pray”
approach
is
adopted
when
a
strategy
is
improperly
accounted.
This
situation
includes
when
the
website
designed
by
a
business
fails
into
engaging
the
customers
that
they
are
targeting
or
meet
their
expectations
(Bwired,
2012).
For
example
taking
the
case
of
e-­‐retailers
for
handbooks
due
to
the
marketplace
being
full
of
competitors
like
Swotbooks,
Amazon.
Consequently
to
summarise
example
for
strategic
planning
or
positioning
for
this
situation
of
E-­‐
retailing,
a
simplified
generic
strategies
matrix
is
shown
in
the
Figure
4.
Taking
the
case
of
Oxfam
which
is
one
of
the
largest
online
marketplace
for
selling
and
buying
books
in
UK,
hence
the
right
strategy
for
their
website
would
be
aiming
for
specific
target
population
and
customer
base
deducing
from
the
matrix.
Rather
than
having
a
broad
target
that
would
lead
to
less
conversion
of
customers
and
which
mostly
would
predominantly
be
filled
with
competitors.
Source:
(Porter,
1985)
Figure
4
Generic
strategies
matrix
In
other
words
having
sound
strategic
direction
while
entering
into
the
online
business
should
be
highly
prioritised,
and
the
planning
should
be
based
on
both
intuition
of
the
target
audience
as
well
as
the
right
analysis
for
the
same
(Nwachukwu,
2010).

21. Chapter
2:
Overview
of
factors
leading
to
website
failures
13
Therefore
similar
to
the
traditional
business
strategies
e-­‐commerce
strategy
also
requires
planning,
research
and
execution
in
order
to
deliver
the
right
business
objectives
and
needs
of
the
customers.
The
organisation
is
expected
to
adopt
the
strategic
approach
as
if
they
are
operating
offline.
It
is
same
as
designing
a
product
and
service
that
is
targeted
to
provide
to
the
requirement
of
a
particular
customer
segment,
likewise
the
website
of
the
business
should
also
be
treated
in
the
similar
way.
For
example
a
website
which
is
designed
for
the
purpose
of
advertising
and
marketing
should
also
reflect
the
customers
it
is
targeting
that
has
been
established
in
the
offline
business
through
design,
content
and
functionality
of
its
online
assets.
H1:
There
is
a
positive
correlation
between
lack
of
strategic
direction
and
failure
of
e-­‐
commerce
website.
2.3.2
Failure
in
customer
management
The
very
common
problem
among
most
of
the
businesses
is
that
they
consider
their
own
viewpoint
rather
than
considering
that
of
the
customers.
This
is
identical
for
all
types
of
online
assets
like
online
retail
websites,
newsletter,
social
media
and
material
marketing
(Bwired,
2012).
Hence
in
order
to
avoid
this
the
organisation
must
learn
from
behaviour,
experiences
and
preferences
of
the
customers.
Agreeing
with
(Bwired,
2012)
also
at
the
same
time
the
organisation
dealing
online
should
offer
opportunity
to
the
customers
for
signing
up
for
newsletters,
participating
in
social
media,
subscribing
in
blogs
and
conduct
some
personalised
direct
marketing
initiatives
through
the
email
of
the
customers
in
order
to
keep
them
informed
with
the
useful
information
that
are
based
on
their
interest
and
activities.
Along
the
same
lines
Copyright
coreDNA,
(2009)
states
that
there
are
several
ways
by
which
the
organisations
can
save
themselves
from
falling
into
the
trap.
The
organisation
can
collect
and
analyse
the
data
of
the
customers
on
a
regular
basis.
Moreover
acknowledging
points
made
by
(Bwired,
2012;
Copyright
coreDNA,
2009)
it
is
noticeable
that
understanding
customer
experience,
tracking
and
targeting
according
to

22. Chapter
2:
Overview
of
factors
leading
to
website
failures
14
specific
needs
of
the
customer
will
help
improve
the
website
converstion
rate,
and
increase
the
customer
satisfaction
level,
simultaneously
avoiding
website
failure.
The
organisation
through
its
website
facilities
like
forums,
FAQ’s,
live
chat,
email
and
more
can
provide
opportunities
that
help
in
communicating
with
the
customers
and
hear
from
them
regarding
the
improvement
they
are
expecting
so
that
the
business
and
the
customers
can
benefit
from
them.
Following
figure
5
illustrates
a
survey
from
(Reibstein,
2002)
which
shows
an
example
of
what
a
customer
looks
for
and
what
factors
effects
the
customer
retention
in
a
website.
Hence
corroborating
to
the
importance
of
managing
customers
on
the
website.
Source:
(Reibstein,
2002)
Figure
5
Customer
likelihood
factors
Even
though
organisations
that
claim
to
be
customer
centric
without
implying
the
techniques
for
the
same
usually
result
in
failures
since
they
do
not
focus
on
the
customer
needs
(James
Craig.,
2001).
In
my
opinion
customers
who
are
using
offline
services
have
the
privilege
to
view
the
services
or
products
offered
in
a
detailed
and
personal
manner
and
can
0
10
20
30
40
50
60
70
Customer
Support
On-­‐Time
Delivery
Product
Representation
Shipping
&
Handling
Privacy
Policy
Ease
of
ordering
Product
Information
Website
Navigation
Product
Selection
Price
Percentage
Factors
Factors
affecting
likelihood
to
buy
again

23. Chapter
2:
Overview
of
factors
leading
to
website
failures
15
approach
the
customer
representative
at
any
time
in
case
of
any
enquiries.
In
the
same
way
the
e-­‐business
organisation
should
accommodate
all
these
features
when
they
are
reaching
the
customers
through
online
websites
such
that
the
users
feel
complacent
while
browsing
the
website.
Along
the
same
lines
a
survey
conducted
by
Oracle
,
(2013)
showed
that
most
of
the
online
websites
are
targeting
customer
management,
tailoring
and
enhancing
the
customer
experience
as
a
top
priority
for
future
investments.
H2:
There
is
a
positive
correlation
between
failure
in
managing
the
customers
and
failure
of
e-­‐commerce
website.
2.3.3
No
customer
personalisation
and
Incentives
Due
to
the
immense
growth
of
e-­‐commerce
today
organisations
need
to
understand
their
customers
better
and
then
pitch
services
or
products
accordingly.
In
the
report
of
Fredriksson,
(2013)
Goldman
Sachs
estimates
that
the
retail
web
sales
to
be
around
$963
billion
in
2013,
hence
corroborating
to
the
fact
that
organisations
need
to
strategise
their
customer
retention
and
conversion
techniques.
Moreover
it
is
not
always
true
that
one
size
will
fit
in
all.
The
website
that
is
designed
by
the
organisation
should
provide
a
variety
of
styles,
prices
and
product
that
fits
to
the
taste
of
each
target
customers
and
helps
in
increasing
the
probability
of
purchase.
This
strategy
has
to
be
done
in
the
same
way
as
the
business
would
have
done
if
it
were
operating
offline.
For
example
in
2010
UK
Prime
Minister,
Gordon
Brown
said
“that
people
will
be
given
their
own
personalised
website
pages
within
four
years
in
order
to
cut
down
the
cost
of
dealing
with
government
officials”
(Prince,
2010).
However
there
are
different
ways
and
techniques
for
achieving
the
same
such
as
differentiated
promotion
and
pricing
strategy
for
different
point
of
sale
and
entry
points
should
be
incorporated
in
the
website.
Apart
from
this,
a
survey
from
Magdalini
Eirinaki.,
(2005)
shows
that
global
investments
in
the
tools
and
techniques
for
personalising
websites

24. Chapter
2:
Overview
of
factors
leading
to
website
failures
16
and
services
have
grown
from
$500
million
to
$
2.1
billion
in
2006.
In
the
same
way
Figure
6
shows
research
conducted
by
EPiServer
Inc.,
(2013)
of
what
organistion’s
are
trying
to
achieve,
validating
that
33%
of
the
companies
want
their
personalisation
strategy
to
work
effectively
for
them
in
order
to
achieve
success.
Source:
(EPiServer
Inc.,
2013)
Figure
6
Online
businesses
strategies
Also
personalisation
is
not
just
about
the
website
but
services
and
products
being
targeted
in
accordance
with
the
customer
needs
(Dave
Chaffey.,
2013).
Likewise
the
past
behaviour
of
the
customers
can
be
used
by
the
organisation
to
create
personalised
communications
that
replicates
their
interest
since
the
business
has
a
large
number
of
options,
which
depends
on
the
outcome
they
want
to
achieve.
Bwired,
n.d.,
(2012)
states
that
personalisation
is
a
Customer
Loyality
41%
Personalisation
33%
Other
12%
Price
Comparision
10%
Combat
Showroom
2%
Post
Sale
Care
2%
what
would
you
like
most
for
your
strategy
to
achieve

25. Chapter
2:
Overview
of
factors
leading
to
website
failures
17
powerful
tool,
which
when
implemented
correctly
can
generate
huge
rewards
for
the
organisation.
For
example
Figure
7
shows
an
illustration
of
targeted
emails
based
on
previous
items
purchased
by
the
customers.
In
this
case
Amazon
reads
customer’s
past
behaviour
on
the
website
and
then
shows
what
the
user
might
like
to
buy
or
predicting
products
that
user’s
might
like.
Source:
(Magdalini
Eirinaki.,
2005)
Figure
7
Targetted
e-­‐mails
Furthermore
having
just
argued
that
lack
of
customer
personalisation
as
a
key
factor
for
online
business
failures,
let
us
now
turn
our
attention
to
lack
or
amiss
of
incentives.
For
the

26. Chapter
2:
Overview
of
factors
leading
to
website
failures
18
same
purpose
Morgan
R,
(1994)
states
that
most
of
the
organistion
are
using
incentives
as
a
key
strategy
for
maintaining
and
building
a
long-­‐term
relationship
with
the
customer.
It
does
not
require
any
arguments
that
lucrative
sales
offers
can
be
boost
the
number
of
customers
going
online
for
the
purpose
of
bargaining.
Hence
it
calls
for
the
organisation
to
provide
incentives
for
the
customers
so
that
they
tend
to
visit
the
website
on
a
perennial
basis
in
order
to
check
any
latest
availability
of
discounts.
However
if
the
website
lacks
the
incentive
parameter
then
it
is
difficult
for
the
business
to
retain
or
convert
users.
Moreover
from
a
survey
conducted
by
comScore
Inc,
(2012)
shown
in
Figure
8
below
it
is
noticeable
that
74%
of
the
survey
results
showed
that
discounted
shipping
is
on
of
the
major
factors
for
satisfying
customers.
Corroborating
to
this
point
Dave
Chaffey,
(2013)
states
that
organisation
should
follow
the
same
principle
as
it
would
have
followed
when
operating
offline
and
offer
loyalty
programs,
promotions
and
sales,
which
provide
added
perks
and
incentives
to
the
customers.
H3:
There
is
a
positive
correlation
between
lack
of
personalisation
and
failure
of
e-­‐
commerce.
2.3.4
Payment
gateway
Issues
One
of
the
common
reasons
for
the
failure
of
e-­‐commerce
business
is
the
poor
quality
of
the
checkout
process.
Moreover
survey
from
JUPITER
RESEARCH,
(2003)
shows
that
more
than
66%
of
users
have
abandon
the
website
during
the
ordering
process.
Hence
validating
it
as
one
of
the
major
factors
of
website
failures.
Similarly
survey
from
comScore,
Inc.
,
(2012)
shows
what
customers
are
looking
for
in
a
e-­‐commerce
website
and
which
aspect
would
satisfy
them
the
most.
Hence
from
the
survey
more
than
83%
voted
for
ease
of
check
out
process.
Therefore
making
it
the
most
important
aspect
in
order
to
gain
the
customer
satisfaction.

27. Chapter
2:
Overview
of
factors
leading
to
website
failures
19
Source:
(comScore,
Inc.
,
2012)
Figure
8
Customer
satisfactions
survey
In
the
same
way
having
an
established
progress
bar
for
the
whole
checkout
process
has
become
one
of
the
best
practices
for
successful
websites
(Webcredible,
2010).
However
below
is
an
example
from
Tesco’s
website
shown
in
Figure
9,
which
shows
that
their
checkout
process
is
not
aligned
with
best
practices
of
Webcredible,
(2010)
having
a
progress
bar
that
can
easily
be
seen
by
the
user.
Hence
conversely
proving
that
customers
are
not
that
rigid
about
the
checkout
progress
bar
in
a
website
but
the
ease
of
checkout
process
as
stated
by
(coreDNA,
2009).
However
in
my
opinion
smaller
number
of
payment
options,
improper
post-­‐transaction
communication
and
complicated
checkout
process
are
the
primary
reason
that
prevents
the
existing
or
the
potential
customers
from
purchasing.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Ease
of
check-­‐out
Variety
of
brands/products
Online
tracking
ability
Free/discounted
shipping
Number
of
shipping
options
offered
Ability
to
create
an
account
Clear
returns
policy
Ease
of
making
returns/exchanges
Availability
of
live
customer
service
Flexibility
to
choose
delivery
date
Flexibility
to
re-­‐route
packages
Percentage
Aspects
Satisfaction
with
Aspects
of
Online
Shipping
Experiences

28. Chapter
2:
Overview
of
factors
leading
to
website
failures
20
Source:
(Webcredible,
2010)
Figure
9
Tesco
checkout
process
H4:
There
is
a
positive
correlation
between
issues
related
to
payment
gateway
and
failure
of
e-­‐commerce.
2.3.5
Out-­‐dated
website
functionality
As
the
unkempt
and
shabby
retail
outlet
speaks
about
the
poor
quality,
in
the
same
way
out-­‐
dated
technology
also
speaks
about
the
poor
quality
of
service
or
product.
CoreDNA,
(2009)
acknowledges
that
one
of
the
major
reasons
for
increase
in
the
website
bounce
rate
is
due
to
poor
or
outdated
data
on
the
website.
Moreover
website
content
management
is
an
important
aspect
and
should
be
contained
effectively
such
that
clients
requests
are
ensured
and
the
data
on
the
website
remains
updated.
However
there
are
various
Content
managements
systems
(CMS)
available
in
the
market
like
Joomla!,
Drupal,
WordPress
and
more.
It
is
worth
noticing
that
e-­‐commerce
technologies
are
always
experiencing
dramatic
changes
from
the
perspective
of
the
user’s
and
the
online
retailers
are
expected
to
adopt
the
changing
requirement.
Nevertheless
research
shows
technology
factors
to
consider
while
evaluating
e-­‐commerce
websites,
which
consisted
of
components
such
as
scalability
(Oracle,
2012)

29. Chapter
2:
Overview
of
factors
leading
to
website
failures
21
which
considers
evaluates
if
the
website
can
perform
efficiently
through
traffic
peaks
and
valleys,
Product
Catalog
or
description
(Webcredible,
2010)
describing
the
need
for
effectively
promoting
items
to
push,
and
simultaneously
provide
clear
and
concise
product
description,
Search
rankings(Oracle,
2012;
McKinsey
&
Company,
2011;
Booz
&
Company,
2010)
as
an
illustration
of
this
findings
from
Kristen
Purcell.,
(2012)
show
that
more
than
83%
of
the
users
on
the
web
search
for
services
or
products
on
google,
Analytics
(Oracle,
2012;
Chaffey,
2011)
which
illustrates
the
leverage
business
could
take
by
analysing
phelthora
of
customer
data,
behaviour
and
experiences
while
ensuring
the
website
is
capturing
the
required
user
data
analytics
using
necessary
tools.
These
findings
have
important
consequences
for
a
broader
domain
of
website
usability
and
design.
While
it
is
true
that
the
customers
are
seen
to
move
towards
the
competitors
if
they
get
additional
benefits
like
social
media
activities,
access
the
shopping
cart
at
one
click,
product
review
and
product
comparison
or
if
the
competitors
are
easily
accessible.
To
take
the
case
of
website
and
keeping
it
up-­‐to-­‐date
with
latest
technology,
from
the
perspective
of
business
the
technology
used
in
the
website
that
simplifies
the
process
of
buying,
streamlines
the
distribution,
increases
the
effectiveness
of
the
overall
organisation
via
integration
with
analytics,
CRM
databases,
and
CMS
which
in
turn
increases
the
operational
efficiency,
reduces
costs
and
increases
the
business
productivity.
However
research
from
(Oracle
,
2013)
shows
that
Web
sites
drives
most
interest
from
the
customer
and
driving
them
to
the
organisation
services
or
products
but
Search
Engine
Optimization
(SEO),
Email,
Social
and
Search
Engine
Marketing
(SEM)
are
also
the
most
popular
channels
that
lead
the
customers
to
the
websites
see
Figure
10.
Hence
aiding
to
the
fact
that
organisation
which
have
streamlined
website
i.e.
CMS,
analytics
tools
and
are
up-­‐to-­‐date
with
their
product
catalogue
will
lead
to
competitive
advantage
over
the
competitors
who
lack
these
technologies.

30. Chapter
2:
Overview
of
factors
leading
to
website
failures
22
Source:
(Oracle
,
2013)
Figure
10
Customer
driving
channels
Consequently
in
order
to
withstand
in
the
competition
the
organisation
dealing
in
e-­‐
commerce
needs
to
incorporate
the
latest
technology
and
stay
on
the
top
of
the
rising
trend.
This
in
turn
helps
the
company
to
enhance
the
experience
of
the
customers
and
supports
the
business
objective
of
the
organisation.
For
example,
the
mobile
web
is
a
rising
trend
as
seen
in
Figure
11
based
on
a
research
conducted
by
ExactTarget,
(2009)
which
shows
the
channel
preference
of
users
for
sending
alerts
and
delivery
status
updates
of
which
74%
choose
mobile
(SMS)
and
25%
choose
mobile
application.
As
a
result
the
customers
can
access
the
e-­‐commerce
website
or
application
from
anywhere
and
at
any
time
also
get
alerts
regarding
their
purchase
or
delivery.
However
the
organisation
should
consider
the
necessary
technology
required
i.e.
mobile
application
development
team
before
entering
into
this
bandwagon.
H5:
There
is
a
positive
correlation
between
out-­‐dated
website
functionality
and
failure
of
e-­‐commerce.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Web
Site
SEO
Email
Social
Sites
SEM
Physical
Store
Mobile
Website
Percentage
channels
Channels
that
drive
customers

31. Chapter
2:
Overview
of
factors
leading
to
website
failures
23
Source:
(ExactTarget,
2009)
Figure
11
Channels
for
creating
alerts
2.3.6
Lack
of
Trust:
Security
and
Privacy
Admittedly,
credibility
and
trust
are
the
most
important
assets
of
an
organisation
whether
it
is
operating
online
or
offline.
LANIER,
(2008)
concedes
that
the
data
and
privacy
issues
of
customers
have
not
been
inferred
to
its
accurate
measures,
as
he
states
that
further
understanding
of
the
customer
data
privacy
is
essential
in
order
to
better
manage
the
customer
relationship.
As
(Kenneth
Laudon.,
2012;
Shao,
2007;
France
Belanger.,
2002)
suggests
the
major
reasons
behind
low
development
and
failures
of
any
online
business
environment
is
the
lack
of
trust,
privacy
and
security
involved
with
the
website.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Email
Mobile
(SMS)
Mobile
(Application)
Direct
messaging
on
social
media
sites
Direct
mail
Social
media
Radio
Telemarketing
Search
marketing
Television
Print
advertising
Online
video
Display
advertising
Other
Percentage
Channels
Please
indicate
which
of
the
channels
below
works
best
for
alerts
(e.g.,
Delivery
alerts,
customer
support)

32. Chapter
2:
Overview
of
factors
leading
to
website
failures
24
To
put
it
bluntly
any
security
issue
in
the
web
can
deter
both
the
existing
and
the
prospective
customers
from
buying
the
products
and
services.
In
fact
Cybersource,
(2011)
reports
that
credit
card
frauds
are
esstimated
to
be
around
$2.7
billion
in
United
States
alone,
moreover
research
from
Forrester
Research,
(2011)
suggested
that
e-­‐commerce
organisations
lost
over
$15
billion
in
2010
due
to
privacy
issues,
whereas
Jupiter
Research,
(2011)
estimated
the
online
sales
would
increase
if
the
privacy
and
security
issues
are
confronted
effectivley.
Hence
corrobrating
to
study
of
FIENBERG,
(2006)
which
considers
privacy
and
security
issues
as
an
imperative
concern
and
likewise
enabling
companies
to
better
understand
this
issue.
However
online
purchasing
environment
is
different
from
that
of
offline
purchase.
During
online
purchases
the
customers
has
to
provide
the
details
of
the
credit
card
while
placing
the
order.
Therefore
Dave
Chaffey.,
(2013)
provides
E-­‐business
security
solutions
such
that
organisations
can
deal
with
security
or
privacy
threats
more
effectively,
For
example
should
use
Audit
trails,
Contracts,
Virus
scanners
etc.
For
the
same
purpose
the
use
of
secure
socket
layers
(SSL),
trusted
and
known
payment
gateways
and
clear
display
of
privacy
policies
enhances
the
credibility
and
trust
of
the
organisation.
Moreover,
Kenneth
Laudon.,
(2012)
provides
a
list
of
dimensions
for
e-­‐commerce
security
considering
both
customer
and
merchant
perspective
shown
in
Table
1
below.
Source:
(Kenneth
Laudon.,
2012)
Measures
Customer’s
Perspective
Organisation
Perspective
1.
Integrity
• Coherence
of
data
received
or
sent
by
the
user
to
or
from
the
website.
• Alteration
in
data
transmitted.
• Validity
of
data
received
from
the
customer.
• Data
being
altered
before
coming
to
the
organisation
end.

33. Chapter
2:
Overview
of
factors
leading
to
website
failures
25
2.
Non-­‐repudiation
• Can
the
organisation
deny
any
transactions,
and
deny
receiving
debit.
• Can
the
customer
deny
ordering
products
and
any
bills
to
be
paid?
3.
Authenticity
• How
can
the
customer
be
assured
of
the
organisation
validity?
• How
can
the
customer
be
assured
of
the
customer’s
validity?
4.
Confidentiality
• Customer’s
doubt
over
the
fact
whether
the
origination
is
sharing
his/her
information
with
someone
else.
• Authorisation
of
customer’s
personal
data
and
protection.
• Breach
of
customer
data
from
employees
within
the
organisation.
5.
Privacy
• Can
the
customer
control
the
data
he/she
sends
to
the
organisation?
• How
can
the
organisation
use
customer’s
private
data
without
using
unauthorised
methods,
in
order
to
market
to
the
customer
better?
6.
Availability
• Accessibility
to
the
personal
account
or
website.
• Can
the
organisation
block
my
account
and
use
my
personal
information.
• Website
functionality,
and
updating
the
customers’
details
on
his/her
account.
• For
example,
orders
placed,
bills
due
etc.
Table
1
Customer
and
merchant
perspective
against
realistic
measures

34. Chapter
2:
Overview
of
factors
leading
to
website
failures
26
Along
the
same
lines
Berr,
(2008)
conducted
a
survey
which
shows
the
types
of
security
breaches
in
the
UK
as
see
in
Figure
12.
In
discussions
of
Enfodesk,
(2011)
about
the
main
causes
of
people
not
using
online
transactions
or
e-­‐commerce
website
resulted
in
57%
of
poeople
not
using
e-­‐commerce
websites
due
to
security
issues
as
shown
in
Figure
13.
Source:
(BERR,
2008)
Figure
12
UK
Information
Security
Breaches
Source:
(Enfodesk,
2011)
Figure
13
Concern
for
security
issues
0%
5%
10%
15%
20%
25%
30%
35%
Infection
by
viruses
or
malicious
software
Staff
misuse
of
Information
systems
hacking
attempts
Theft
or
fraud
involving
computers
Data
or
system
corruption
Percentage
Factors
UK
Information
Security
Breaches
Security
Issues
,
53.70%
Unnecessary
,
17.60%
Complicate
opening
&
operations
,
25.40%
Others
,
3.30%