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International Journal of Retail & Distribution Management
An empirical study of online shopping customer satisfaction in China: a holistic
perspective
Xia Liu, Mengqiao He, Fang Gao, Peihong Xie,
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Xia Liu, Mengqiao He, Fang Gao, Peihong Xie, (2008) "An empirical study of online shopping customer
satisfaction in China: a holistic perspective", International Journal of Retail & Distribution Management, Vol.
36 Issue: 11, pp.919-940, https://doi.org/10.1108/09590550810911683
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An empirical study of online
shopping customer satisfaction
in China: a holistic perspective
Xia Liu
Department of Marketing, Shanghai Jiaotong University, Shanghai,
People’s Republic of China and
Research Center of Hospital Management, Shanghai Sixth People’s Hospital,
Shanghai, People’s Republic of China, and
Mengqiao He, Fang Gao and Peihong Xie
Department of Marketing, Shanghai Jiaotong University, Shanghai,
People’s Republic of China
Abstract
Purpose – The purpose of this study is to identify factors that may influence Chinese customers’
online shopping satisfaction, including those which are ignored by prior studies, from the perspective
of total online shopping experience.
Design/methodology/approach – In this paper, the authors propose a model of the satisfaction
process in the e-commerce environment, identifying key constructs proposed by prior studies and
developing hypotheses about which dimensions of online retailer constructs are significant predictors
of online shopper satisfaction. The authors test the hypotheses through multiple regression analysis
based on a survey of 1,001 online customers.
Findings – The analysis suggests that eight constructs – information quality, web site design,
merchandise attributes, transaction capability, security/privacy, payment, delivery, and customer
service – are strongly predictive of online shopping customer satisfaction, while the effect of response
time is not significant.
Research limitations/implications – This study does not control the differences across product
categories; the use of self-reported scales to measure both independent and dependent variables may
imply the possibility of a common method bias for the results.
Originality/value – This research contributes to the study of online shopping customer satisfaction
by: developing a model of the satisfaction process in the e-commerce environment, and identifying
factors that may influence Chinese customers’ online shopping satisfaction including those which are
ignored by prior studies.
Keywords Electronic commerce, Customer satisfaction, China
Paper type Research paper
1. Introduction
After years of development of China’s online shopping market, there has been a drastic
increase in the number of online shopping web sites in China. Statistics released by the
PRC Ministry of Information Technology indicate that the number of retail web sites in
2001 totaled 2,046 and reached 2,219 by 2004. Retail web sites accounted for
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0959-0552.htm
The authors would like to thank Acme Translations Co., Ltd for their support of the research.
Online shopping
customer
satisfaction
919
Received 31 August 2007
Revised 3 January 2008
Accepted 28 February 2008
International Journal of Retail &
Distribution Management
Vol. 36 No. 11, 2008
pp. 919-940
q Emerald Group Publishing Limited
0959-0552
DOI 10.1108/09590550810911683
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49.5 per cent of China’s Ecommerce in 2004 with transaction volume of online shopping
estimated at 4.2 billion RMB. By 2005, the transaction turnover of online
shopping amounted to 5.6 billion RMB, a 33 per cent increase. With China’s online
shopping environment maturing and offering improved levels of service, it is predicted
that the volume could reach 46 billion RMB by 2010[1].
The rapid growth of online shopping in China underscores the importance of
focusing on the issue of customer satisfaction as a key factor to address when
designing any online retail outlet. Customers must be satisfied with their online
shopping experience; otherwise they will not return (Kim and Stoel, 2004). A recent
survey conducted by CNNIC found that only 3.5 per cent of the Chinese respondents
were very satisfied with the online shopping experience. Dissatisfaction usually
leads to lost customers and income. Compared with American customers, Chinese
customers have several characteristics: their perception of safety is lower; they
undertake higher purchasing risks because of fake goods and false advertising; the
buyer sometimes is not the consumer; they are more sensitive to price; they are more
cautious in making purchase decision (Lu, 2005). Therefore, a fundamental
understanding of the factors affecting Chinese online shopping customers’ degree of
satisfaction is of great importance to e-commerce.
If companies can better understand their customers, they can present products or
services more effectively and continuously improve them in order to strengthen their
competitive advantage. Market orientation and customer satisfaction research show
there is direct connection between customer satisfaction and organizational
performance (Garver and Gagnon, 2002). Consequently, in the turbulent e-commerce
environment, Internet companies need to know how to satisfy customers. This will
enable them to sustain their growth and market share (McKinney et al., 2002).
It is known that online shopping environment and behavior is fundamentally
different from that of a conventional retail environment (Degeratu et al., 2000; Lynch
and Ariely, 2000; Shankar et al., 2001, 2003; Ranganathan and Ganapathy, 2002; Heiner
et al., 2004). It can be expected that the key drivers of customer satisfaction and
retention in the Internet economy may be also different from those in the traditional
economy. From different perspectives, researchers have developed and tested
instruments to measure customer satisfaction with online shopping (Szymanski and
Hise, 2000; Koivumaki, 2001; Heiner et al., 2004; Kim and Stoel, 2004). These
researchers have done some innovative and pioneering work, but revealed conflicting
findings, such as Szymanski and Hise (2000) find that web site design has the
secondary significant impact on e-satisfaction, the study conducted by Kim and Lim
(2001) shows that information quality has relationship with online shoppers’
satisfaction, but Kim and Stoel’s (2004) study indicate that web appearance and
information attribute have little impact on customer satisfaction.
In addition, China differs from foreign countries greatly in cultural tradition, logistic
infrastructure and credit system. Chinese culture belongs to eastern culture system,
and the infrastructure of logistics in China lags behind other developed countries.
Moreover, there has not sound credit system in China. Prior researches indicate
that culture (David, 2007), logistics (Sharma et al., 1995) and credit (Gentry, 1982)
have important impact on customer behavior and satisfaction. Therefore, it is
understandable that key drivers of online shopping customer satisfaction in China may
be different from that of other countries. Just as de Mooij and Hofstede (2002) indicated,
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converging technology and disappearing income difference across countries will not
lead to homogenization of consumer behavior. Rather, consumer behavior will become
more heterogeneous because of cultural differences (de Mooij and Hofstede, 2002). Few
studies, however, have explored online shopping customer satisfaction on Chinese
context, so little is known about the construct of Chinese online shopping customer
satisfaction.
Based on earlier research (Szymanski and Hise, 2000; Koivumaki, 2001; Heiner et al.,
2004; Kim and Stoel, 2004), the purpose of this research is to identify key constructs
and corresponding measurement scales for examining Chinese online shopping
customer satisfaction. This is done by developing a satisfaction process model in
e-commerce environment, identifying key constructs proposed by prior studies and
designing a group of hypotheses.
Our research contributes to the study of online shopping customer satisfaction by:
.
Developing a model of the satisfaction process in the e-commerce environment.
.
Identifying factors that may influence Chinese customers’ online shopping
satisfaction, including payment which are ignored by prior studies.
The outcome of the study may be relevant to businesses, consumers and researchers.
The paper proceeds as follows. Section 2 is literature review. Section 3 proposes a
satisfaction process model in the e-commerce environment and designs a group of
hypotheses. Section 4 describes the survey used to test the above model. Section 5
presents the results of statistical data analysis. Section 6 discusses the study’s
implications for research and practice and outlines the study’s limitations.
2. Literature review
While the subject of satisfaction has been discussed extensively in the traditional
retailing literature (Mason and Bearden, 1979; Oliver, 1981; Anderson et al., 1994;
Terblanche and Boshoff, 2001a,b; Johan, 2006; Ofir and Simonson, 2007), the
exploration of dimensions and determinations of satisfaction under e-commerce
context is at a nascent stage (Heiner et al., 2004). Recently, some researchers
have started to investigate how the attributes of a web site will influence customers’
satisfaction. These studies have presented various characteristics as important factors
for an effective B2 C e-commerce web site; however, up to now there is no consensus on
how this affects online customer satisfaction (Schaupp and Bélanger, 2005).
Table I summarizes several previous studies of the determinants of online shopping
customer satisfaction.
There have been several other attempts to build an evaluation framework or
identify dominant factors concerning customer satisfaction with online shopping from
the perspective of web site quality (Ranganathan and Ganapathy, 2002), purchasing
behavior (Koivumaki, 2001; Park and Kim, 2003), consumer attitude (Elliott and Speck,
2005), customer value Shun and Yunjie, 2006 and service quality (Zhilin et al., 2003).
The foregoing studies provide a broad basis for gaining insight into customer
satisfaction with online shopping. Few empirical studies have been conducted to
uncover the underlying constructs of customer satisfaction with online shopping, from
the perspective of the total retail experience and following the purchase process.
What’s more, the impact of payment was seldom touched on. A consumer buying
process can be viewed as a sequence of several stages (Kotler, 1997; Oliver, 1981;
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Ranganathan and Ganapathy, 2002), thus, satisfaction is a consequence of the
customer’s experiences during various purchasing stages (Kotler, 1997). Berman and
Evans (1998) define total retail experience as all the elements that encourage or inhibit
consumers during their contact with the retailer. In this perspective, dimensions tested
by prior studies, such as information quality, web site design are only one component
of the online shopping customers’ total retailing experience. From a management
perspective, it seems preferable to develop an instrument that covers all the dimensions
of an online shopping experience that can be controlled by an online retailer. If only one
component of the total retailing experience is considered at a time, it might be
detrimental to our understanding of customers’ experience and this in turn could lead
to strategies that either overemphasize or under appreciate the importance of one or
more of such components (Terblanche and Boshoff, 2001a,b).
Although some other studies touch on consumers’ shopping experience and their
evaluation are based on perceptions of the online shopping web sites (Jarvenpaa and
Todd, 1997; Griffith et al., 2001; Koivumaki, 2001; Park and Kim, 2003), these research
mainly discuss the consumer’s information processing style, shopping pattern, etc.
Chen and Chang (2003) innovatively proposed an overall model of Internet shopping
process and identified three common online shopping components: interactivity,
transaction and fulfillment, but their study lack theoretical background.
Independent variable Key references Dependent variable
Convenience Szymanski and Hise (2000) E-satisfaction
Kim and Lim (2001) Consumers’ satisfaction with internet shopping
Heiner et al. (2004) E-satisfaction
Web site design Szymanski and Hise (2000) E-satisfaction
Heiner et al. (2004) E-satisfaction
Kim and Stoel (2004) Shopper satisfaction of apparel web site
Hsuehen (2006) Customer satisfaction
Financial security Szymanski and Hise (2000) E-satisfaction
Heiner et al. (2004) E-satisfaction
Trust Kim and Stoel (2004) Shopper satisfaction of apparel web site
Assurance Devaraj et al. (2002) Consumer attitudes and satisfaction
Reliability Kim and Lim (2001) Consumers’ satisfaction with internet shopping
Information Szymanski and Hise (2000) E-satisfaction
Kim and Lim (2001) Consumers’ satisfaction with internet shopping
Heiner et al. (2004) E-satisfaction
Kim and Stoel (2004) Shopper satisfaction of apparel web site
Ballantine (2005) Customer satisfaction
Hsuehen (2006) Customer satisfaction
Merchandise variety Szymanski and Hise (2000) E-satisfaction
Heiner et al. (2004) E-satisfaction
Perceived ease of use Devaraj et al. (2002) Consumer attitudes and satisfaction
Perceived usefulness Devaraj et al. (2002) Consumer attitudes and satisfaction
Entertainment Kim and Lim (2001) Consumers’ satisfaction with internet shopping
Kim and Stoel (2004) Shopper satisfaction of apparel web site
Speed Kim and Lim (2001) Consumers’ satisfaction with internet shopping
Response time Kim and Stoel (2004) Shopper satisfaction of apparel web site
Transaction capability Kim and Stoel (2004) Shopper satisfaction of apparel web site
Table I.
Empirical research on
determinants of online
shopping customer
satisfaction
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There have been several other attempts to study user satisfaction in the context
e-services or online services (Zhang et al., 2006; Ha, 2006; Yang and Fang, 2004). For
instance, Zhang et al. (2006) examine several factors (user computer proficiency,
perceived convenience, site characteristics, perceived security, user satisfaction)
affecting user satisfaction with e-services and find that perceived convenience, users’
skills and experiences, and perceived security have impact on user satisfaction with
e-services.
In the proceeding section, we will reorganize the web site quality studied in the prior
research from the perspective of total retail experience of online shoppers. In addition,
delivery and payment are examined in our study as unique features in the context of
Chinese online shopping.
3. Research model and hypotheses
Satisfaction is the consequence of the customer’s experiences during various
purchasing process: need arousal, information search, alternatives evaluation,
purchase decision, and post-purchase behavior (Kotler, 1997). In the increasingly
technology-oriented online shopping environment, it is quite safe to assume that online
shopping consumer satisfaction can be affected at every stage. The model of Turban
et al. (2000) suggests that, in addition to selection and different properties of the goods,
various features are related to the web shop, such as speed of operation, ease of use,
that determine the navigation experience of the customer.
Based on Kotler’s (1997) study, this study divides the purchasing process into three
stages: information search and alternatives evaluation stage, purchase stage and
post-purchase stage, and proposes a model of the satisfaction process in the
e-commerce environment outlined in Figure 1.
As indicated by the above model, customers’ overall satisfaction can be affected by
all factors relevant to the process of online shopping. Based on the studies of
Figure 1.
Model of the satisfaction
process in e-commerce
environment
Transaction
capability
Overall satisfaction
Information
quality
H1
H2
H3
H6
H4
H5
H8
H9
H7
Website design
Merchandise
attributes
Response
Security/privacy
Payment
Delivery
Customer service
Stage 3: Post-purchase
Stage 1: Information search
and alternatives evaluation
Stage 2: Purchase
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satisfaction
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Oliver (1980), Cadotte et al. (1987), and Spreng et al. (1996), we define overall
satisfaction as an affective state representing an emotional reaction to the entire online
shopping experience. This definition focuses on the process evaluation associated with
online shopping behavior. In the following analysis, the concept of overall satisfaction
is referred to simply as “satisfaction”, referring to a customer’s degree of satisfaction
upon completion of an online shopping experience.
3.1 Information search and alternatives evaluation stage
At the stage of information search and alternatives evaluation, information quality, the
ambience associated with the site itself and how it functions, variety of merchandise
and price all play roles in whether consumers are satisfied or dissatisfied with their
online shopping experiences. It is argued that, since a primary role of an online store is
to provide price-related information and product information to help reduce
consumers’ search cost (Bakos, 1997), more extensive and higher quality information
available online leads to higher levels of customer satisfaction (Peterson et al., 1997).
Manes (1997) indicates that good web site design lies in good organization and easy
search. Shopping is thought to be pleasurable and satisfying to consumers when the
retailing sites are uncluttered and easy-to-navigate (Pastrick, 1997). In the alternatives
evaluation stage, merchandise attribute including merchandise variety and price is
important for decision making. Szymanski and Hise (2000) indicate that wider
assortment of products may be attractive to customers and e-satisfaction would be
more positive when online stores offer superior product assortments. Although some
scholars think price sensitivity may actually be lower online than offline (e.g., Degeratu
et al., 2000; Lynch and Ariely, 2000; Shankar et al., 2001), one most commonly cited
reason for online shopping is price, and many early online marketers used price as bait
to lure consumers to their sites (Chen and Chang, 2003). Moreover, the Chinese are quite
sensitive to price (Lu, 2005). Therefore, we hold the view that product price has a lot to
do with Chinese customers’ satisfaction.
Based on the discussion above, we propose the following hypotheses:
H1. Higher level of information quality will improve customer satisfaction in
online shopping.
H2. Good web site design will have a positive effect on online shopping customer
satisfaction.
H3. Wider merchandise variety and low price will have a positive effect on online
shopping customer satisfaction.
3.2 Purchase stage
At the purchase stage, privacy/security, payment mechanisms, transaction capabilities
and speed of operation may affect satisfaction. Compared with the traditional economy,
online consumers are more keenly aware of the need for privacy/security (Culnan, 1999;
Friedman et al., 2000; Grewal et al., 2004). Inadequate infrastructure, lack of trust,
and privacy and security concerns often lead to lost sales (Yianakos, 2002;
Grabner-Kraeuter, 2002). Moreover, online shoppers are known for low tolerance (Chen
and Chang, 2003), it is estimated that, on average, online shoppers only wait for eight
seconds for system feedback before bailing out (Dellaert and Kahn, 1999). A web page
designer has to consider not only appearance and functionality, but also loading time
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(Weinberg, 2000). A commonly cited reason for online shopping is convenience (Chen
and Chang, 2003). Therefore, it will raise the customer’s degree of satisfaction to
improve the web site’s transaction capability, design a secure and convenient payment
mechanism, ensure completion of all online shopping operations and save the
customer’s operation time.
Hence, the study designs the following hypotheses:
H4. Great transaction capability will have a positive effect on online shopping
customer satisfaction.
H5. Rapid response time will have a positive effect on online shopping customer
satisfaction.
H6. Security/privacy will have a positive effect on online shopping customer
satisfaction.
H7. A convenient payment mechanism will have a positive effect on online
shopping customer satisfaction.
3.3 Post-purchase stage
Post-purchase evaluation can be influenced by the efficiency of logistics and customer
service. The most common types of complaints about Internet transactions include
refund and billing disputes, return and exchange policies, defective products, and poor
customer service (Chen and Chang, 2003). Consumers want careful, continuous, useful
communication across geographic barriers (Lohse and Spiller, 1998). In the e-commerce
environment, not only is the consumption of goods separated from production, thus
making it necessary for goods to be delivered to consumers before consumption, there
is also a delay in the delivery of goods. Delayed delivery may have a negative effect on
satisfaction. As shown by the 2004 China Online Shopping Report by CNNIC 25 per cent
of Chinese customers were not satisfied due to delayed delivery or wrong product
delivery (CNNIC, 2004). One customer complained that he bought a digital camera from
an online company but received sports equipment instead.
Thus, we have the following hypotheses:
H8. Safe and rapid delivery will have a positive effect on online shopping
customer satisfaction.
H9. A higher level of customer service will result in greater satisfaction.
4. Research methodology
4.1 Survey instrument
All constructs were measured using multiple items, seven-point, Likert scales ranging
from strongly disagree to strongly agree. Wherever possible, initial scale items were
taken from previously validated measures in e-satisfaction, online shopping customer
satisfaction and web site quality literature and then reorganized and adapted to the
current context.
Information quality was evaluated from four dimensions: information accuracy,
information comprehensibility, information completeness and information relevancy.
The items were adapted from the items initially developed by Jeong et al. (2003) and
Muyllea et al. (2004). Web site design was evaluated from four aspects: navigation,
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web site structure, color combination and ease of use. The items were taken from
Muyllea et al. (2004), Jeong et al. (2003) and Kim and Stoel (2004). Merchandise
attribute was evaluated from two dimensions: product variety and product price.
This thesis consulted the study of Szymanski and Hise (2000) which evaluates
product variety from two perspectives: number of offerings and variety of offerings.
Based on this we designed four items. We designed another two items to evaluate
product price through in-depth discussion with 30 online shoppers and site
administrators, who all agree that these two items can reflect price level. The
transaction capability and response time scale were adapted from Kim and Stoel
(2004). Based on the in-depth interview with online shoppers and managers of B2C
web sites such as www.joyo.com, www.dangdang.com, we develop two items to
evaluate payment: the web site has complete payment options; I accept the payment
options provided by the web site. Security/privacy and customer service scale were
taken from Wolfinbargerhe and Gilly (2003). Delivery scale consists of four items,
among which two are taken from Wolfinbargerhe and Gilly (2003). The other two
are developed on the basis of in-depth interviews: the items sent by the site are well
packaged and perfectly sound I am satisfactory with the delivery mode of the web
site. Satisfaction scale consists of four items taken from Oliver (1981), referring to a
customer’s degree of satisfaction upon completion of an online shopping experience.
The survey instrument consists of two sections. In the first section, respondents
were asked to fill in their gender, age, educational level and latest purchased product.
In the second section, they were asked to identify the extent to which they
agree/disagree with the items related to their latest online shopping experience. Each
item was measured on a seven-point Likert scale from 1 (strongly disagree) to
7 (strongly agree).
4.2 Sample and data
Prior to the survey, the survey instrument was pilot tested using five doctoral students
and 20 others who had online shopping experience. Pre-test interviews were
undertaken to refine the questionnaire. The items were revised based on the feedback.
Since we want to gather data of customers’ perception of the online shopping
experience, we asked only those subjects with some prior web shopping experience.
Data was collected as follows:
.
Field survey. Field surveys were conducted mainly in big cities such as Beijing,
Shanghai, Nanjing, Hefei, Changsha and Jinan. We interviewed shoppers at some
large shopping malls in these cities, and inquired if they had online shopping
experience. The incentive was a lottery ticket.742 respondents answered the
questionnaire with 709 usable respondents.
.
E-mail survey. The e-mail was sent to a sample of 542 valid e-mail addresses,
drawn from a large e-mail list provided by a company. The number of each
e-mail address was randomly produced by computer. Internet users (115) agreed
to participate in the study. The e-mail containing questionnaire was then sent to
these 115 Internet users. A total of 98 respondents provided usable answers to
the questionnaire. This was a return of 18.08 per cent on the original mailing and
of 85.2 per cent among the people that agreed to cooperate.
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.
Online survey. We put the questionnaire on a web site (www.acmetranslation.
com/diaocha.php), which is linked to a company’s BBS web site which has a
daily visit volume of 3,000 persons. Respondents online answered the
questionnaire, and the data was saved in the database of the company. This
campaign produced 211 usable responses. Online surveys have several
advantages over traditional surveys: not restricted to a particular geographical
location (Shankar et al., 2003), lower costs (Shankar et al., 2003), faster responses
(Shankar et al., 2003), more effective in identifying and seeking online shoppers
(Szymanski and Hise, 2000), and more interesting (Edmonson, 1997).
This survey altogether collected 1,018 responses, deleted 17 outliers and kept 1,001
valid responses. Before combining the three sub-samples, we performed one-way
ANOVA analysis and the result indicates that there have not significant differences in
the three sub-samples.
The demographic characteristics of respondents were as follows: respondents’ age
averaged 32 years and ranged from 19 to 56; 64.3 per cent of respondents have a college
degree and 15.7 per cent have master’s degree or above; 47.9 per cent were female and
52.1 per cent were male.
4.3 Validity and reliability
In this study, construct, convergent and discriminant validity are assessed by
exploratory factor analysis with SPSS 13.0 and confirmatory factor analysis with
LISREL 8.7.
The main sample is divided into two sub-samples, one (501 respondents) for
exploratory factor analysis and second (500 respondents) for confirmatory factor
analysis. By exploratory factor analysis (principal component analysis and varimax
rotation is used), we have nine factors for the importance with the eight values greater
than one as shown in Table II. The total variance explained by the nine factors is
67.434 per cent. Five items with large standardized residuals were removed, resulting
in the retention of 44 items, with two to ten items per construct (Table II and
Appendix 1).
A second study was carried out in order to further asses the factor structure as well
as to establish convergent and discriminant validity through confirmatory factor
analyses. Confirmatory factor analysis provides satisfactory support for the
nine-dimension model (x 2
¼ 1739.97; df ¼ 704; p , 0.001; RMR ¼ 0.1;
GFI ¼ 0.85; AFGI ¼ 0.83; CFI ¼ 0.97; RMSEA ¼ 0.054). Following the
procedures suggested by Fornell and Larcker (1981) and Bagozzi and Yi (1988),
convergent validity was assessed by verifying the significance of the t values
associated with the parameter estimates (Table II). All t values were positive and
significant ( p , 0.01). Discriminant validity was tested by comparing the square root
of average variance extracted (Ave) by each construct to the correlations between the
construct and all other variables. For each construct, the square root of Ave exceeded
all the correlations (Tables III and IV). In order to verify the reliability of the
instrument, a statistical reliability analysis was conducted using Cronbach’s as.
Cronbach’s as value for each of the factors ranged from 0.705 to 0.908 (Table II) and
clearly exceed the 0.70 cutoff recommended by Nunnally (1978) for basic research.
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Factor and items
Exploratory factor
loading
(n ¼ 501)
Confirmatory factor
loading (t-value)
(n ¼ 500) Cronbach’s a
Factor 1: web site design(j1) 0.878
Color combination 1 0.716 0.72 (18.87)
Color combination 2 0.716 0.66 (15.88)
Ease of use 1 0.696 0.69 (17.02)
Ease of use 2 0.669 0.67 (16.32)
Ease of use 3 0.591 0.67 (16.19)
Web site structure 3 0.583 0.55 (12.79)
Navigation 1 0.623 0.55 (12.66)
Navigation 2 0.726 0.62 (14.60)
Navigation 3 0.734 0.65 (15.52)
Navigation 4 0.680 0.59 (13.70)
Factor 2: information quality (j2) 0.797
Understandablity 1 0.693 0.68 (15.92)
Understandability 2 0.739 0.71 (17.01)
Accuracy 1 0.635 0.58 (18.15)
Accuracy 2 0.567 0.62 (14.32)
Completeness 1 0.578 0.59 (13.48)
Completeness 2 0.630 0.44 (9.66)
Relevancy 1 0.591 0.55 (12.32)
Factor 3: merchandise attributes (j3) 0.908
Merchandise variety 1 0.884 0.82 (21.83)
Merchandise variety 2 0.861 0.80 (21.04)
Merchandise variety 3 0.848 0.83 (22.08)
Merchandise variety 4 0.816 0.74 (18.59)
Price level 1 0.787 0.71 (17.65)
Price level 2 0.780 0.71 (17.74)
Factor 4: transaction capability (j4) 0.716
Transaction capability 1 0.724 0.74 (15.78)
Transaction capability 2 0.743 0.71 (15.17)
Factor 5: response time (j5) 0.705
Response time 1 0.856 0.76 (15.50)
Response time 2 0.841 0.72 (14.89)
Factor 6: security/privacy (j6) 0.829
Security/privacy 1 0.658 0.65 (15.10)
Security/privacy 2 0.768 0.79 (19.84)
Security/privacy 3 0.752 0.81 (20.60)
Security/privacy 4 0.749 0.70 (16.80)
Factor 7: payment (j7) 0.896
Payment 1 0.847 0.90 (21.47)
Payment 2 0.838 0.87 (20.64)
Factor 8: delivery (j8) 0.895
Delivery 1 0.770 0.83 (22.74)
Delivery 2 0.791 0.80 (20.78)
Delivery 3 0.829 0.86 (23.39)
Delivery 4 0.768 0.82 (21.80)
Factor 9: customer service (j9) 0.886
Customer service 1 0.815 0.90 (25.04)
Customer service 2 0.822 0.83 (21.96)
(continued)
Table II.
Construct measurement
summary: exploratory
and confirmatory factor
analysis
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4.3 Regression results
Then, multiple regression analysis (SPSS13.0) was used to estimate the effect of nine
constructs on online shopping consumer satisfaction level. The regression results are
presented in Table V.
The data in Table IV shows that the regression coefficient for delivery, customer
service, security/privacy, transaction capability, merchandise attributes, information
quality, payment and web site design are all statistically significant. Response time has
no effect on customer satisfaction. Additionally, we find that delivery has the greatest
impact on satisfaction (b ¼ 0.214). The data also indicates that transaction capability
is the second most important element driving satisfaction levels (b ¼ 0.191).
Meanwhile, security/privacy, customer service, information quality, merchandise
attributes and payment are statistically significant, but have less impact on
satisfaction compared with delivery and transaction capability. Finally, the data
indicates that web site design (b ¼ 0.055) is of less practical significance to satisfaction
assessment.
Factor and items
Exploratory factor
loading
(n ¼ 501)
Confirmatory factor
loading (t-value)
(n ¼ 500) Cronbach’s a
Customer service 3 0.755 0.82 (21.49)
Dependent variable: satisfaction 0.826
Satisfaction 1 0.788 0.67
Satisfaction 2 0.831 0.76
Satisfaction 3 0.836 0.79
Satisfaction 4 0.811 0.73 Table II.
Factor 1 2 3 4 5 6 7 8 9
Ave 0.41 0.36 0.59 0.53 0.55 0.55 0.78 0.69 0.72
Sqrt 0.64 0.60 0.77 0.73 0.74 0.74 0.88 0.83 0.85
Table III.
The average variance
extracted by each
construct
Dimensions j1 j2 j3 j4 j5 j6 j7 j8 j8
j1 1.00
j2 0.467 * * 1.00
j3 0.250 * * 0.213 * * 1.00
j4 0.428 * * 0.452 * * 0.183 * * 1.00
j5 0.313 * * 0.280 * * 0.078 * 0.206 * * 1.00
j6 0.421 * * 0.462 * * 0.201 * * 0.359 * * 0.279 * * 1.00
j7 0.415 * * 0.312 * * 0.232 * * 0.345 * * 0.138 * * 0.322 * * 1.00
j8 0.421 * * 0.401 * * 20.054 0.410 * * 0.230 * * 0.356 * * 0.395* * 1.00
j9 0.451 * * 0.407 * * 0.173 * * 0.376 * * 0.337 * * 0.488 * * 0.267* * 0.455* * 1.00
Notes: *Correlation is significant at the 0.05 level (two-tailed); * *correlation is significant at the 0.01
level (two-tailed)
Table IV.
Pearson correlations
matrix
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Thus, our hypotheses that delivery, customer service, security/privacy, transaction
capability, merchandise attribute, information quality, payment and web site design
are positively correlated with online shopping customer satisfaction were supported.
The hypothesis that rapid response time will have a positive effect on online shopping
customer satisfaction was rejected.
An examination of excessive multicollinearity and autocorrelation was performed.
First, the value of Durbin-Watson was 1.914. Second, the variance inflation factors
(VIF) were scrutinized and all were found to be within the range of 1.206-1.665. Myers
(1990) indicates that only if the rpramila VIF is above ten is there cause for concern
about multicollinearity. Therefore, multicollinearity and autocorrelation were well
within acceptable limits and not unduly influencing the regression estimates.
5. Discussion and implications
This study offers several important findings in the Chinese context, summarized as
follows:
.
Delivery has a positive impact on customer satisfaction, which is consistent with
the study of Sharma et al. (1995).
.
Transaction capability has a significant effect on customer satisfaction. This
finding is consistent with the study of Kim and Stoel (2004).
.
The effect of security/privacy on satisfaction is in a positive direction. This
finding is consistent with the studies of Szymanski and Hise (2000) and Schaupp
and Bélanger (2005), but contradictory to Kim and Stoel’s (2004) finding.
.
As hypothesized, customer service is found to exert a significant positive
influence on customer satisfaction. This finding is consistent with the study of
Wolfinbargerhe and Gilly (2003).
.
Information quality has significant impact on customer satisfaction as well,
which is consistent with the research conclusion by Kim and Stoel (2004), Kim
and Lim (2001) and McKinney et al. (2002).
Constructs Proposed effect
Standard coefficient
(SE) t-value VIF Hypothesis result
Delivery þ 0.214 (0.021) 8.667 * * 1.665 H8 was supported
Transaction capability þ 0.191 (0.021) 8.237 * * 1.468 H4 was supported
Security/privacy þ 0.187 (0.025) 7.869 * * 1.539 H6 was supported
Customer service þ 0.186 (0.023) 7.688 * * 1.601 H9 was supported
Information quality þ 0.153 (0.029) 6.365 * * 1.592 H1 was supported
Merchandise attribute þ 0.119 (0.019) 5.654 * * 1.206 H3 was supported
Payment þ 0.105 (0.019) 4.687 * * 1.385 H7 was supported
Web site design þ 0.055 (0.030) 2.230 * 1.652 H2 was supported
Response time H5 was rejected
Fmodel 218.514 *
R 2
(R 2
adjusted) 0.639 (0.636)
Durbin-Watson 1.914
Notes: *Statistically significant at the 0.01 level; * *statistically significant at the 0.001 level
Table V.
Regression results
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.
The role of merchandise attributes in customer satisfaction is evident, unlike the
finding reported by Szymanski and Hise (2000).
.
The data also reveals that payment has an impact on online shopping customer
satisfaction. Previous research on customer satisfaction seldom touches on it.
This study uncovers its effect on customer satisfaction.
.
The effect of web site design on satisfaction is in a positive direction. This
finding is consistent with the study of Szymanski and Hise (2000), but somewhat
contradictory to Kim and Stoel’s (2004) finding.
.
Nevertheless, the effect of response time on customer satisfaction is not
significant. This finding differs from previous studies (Kim and Lim, 2001; Kim
and Stoel, 2004).
Our findings have both managerial and research implications:
.
Delivery and customer service play a critical role in Chinese customer
satisfaction. To satisfy customers in today’s competitive e-marketplace, online
retailers must keep a close eye on delivery and customer service. Prompt delivery
and prompt response to customers’ concerns and inquiries are crucial because
order fulfillment still remains a weak spot for Chinese online retailers. In the
online shopping environment, delayed delivery and ignorance of customers’
concerns and inquiries will cause customer dissatisfaction. Especially, in the
Chinese context, which can be worse because in China the logistic infrastructure
lags behind other countries and the sense of customer service is relatively weak.
Because customers lack direct, face-to-face interaction with service providers,
many issues still demand human intervention. Therefore, company
representatives must be able to answer customer inquiries and solve problems
as soon as they occur.
.
Detailed and complete product information should be provided. In the online
shopping environment, products are intangible. Customers cannot touch, taste,
observe, smell or listen to the goods as they do in traditional ways. To know the
quality and functionality of a commodity, customers can only rely on the pictures
and descriptions of the goods on the web pages. Therefore, to enhance customers’
degree of satisfaction, B2C web sites should provide clear and understandable
information to online shoppers. Meanwhile, web sites should provide descriptive
information of the goods that is as complete as possible, including the color,
functionality, producer, model, etc. This is to ensure the customers can make
purchase decisions. Koivumaki (2001) finds that displaying pictures of the goods’
has greater influence on customer’s purchase decision than just listing out the
product description.
.
Providing varied types of commodities and preferential price is important.
Customer satisfaction still depends on product variety and product price. With
this in mind, smart online retailers will offer abundant choices to customers, as
well as provide competitive product prices. The Chinese are especially sensitive
to price and are accustomed to comparing prices (Lu, 2005). Many are not willing
to spend extra money in shopping. Moreover, on the Internet, customers have
access to more information. Their ability to compare and analyze forces web sites
to revalue the products and allows customers to gain material benefits.
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.
Expending more effort on web page design and making online shopping
enjoyable is also important. The visitor’s first impression on the web site is
derived from the page design, the layout and color match. Then, it is the content.
Comfortable and pleasing pages can attract customers and prolong their stay,
which increases the possibility of purchase and helps to improve the customer’s
degree of satisfaction.
.
It is also vital to strengthen the web site’s transaction capability and make sure
all operations can be completed online. This saves the customer’s time and fully
reflects the convenience of online shopping.
.
Because China lacks network ID authentication and online transaction credit
system, credit, security and privacy become the spotlight of online shopping. It is
important for online retailers to create a safe online shopping environment,
provide convenient and safe payment methods, protect customers’ privacy and
guarantee financial security.
Some limitations of this research are noteworthy:
.
Some researchers suggest that web site attributes considered important by
shoppers may differ by product (Peterson et al., 1997; McGoldrick et al., 1999;
Elliot and Fowell, 2000). This study does not control such differences across
product categories.
.
This study dose not control for tangible versus intangible products/services in
the analysis.
.
The use of self-reported scales to measure both independent and dependent
variables may imply the possibility of a common method bias for the results.
Future research can develop more detailed models that can capture and explain the
differences across product categories or focus on one category, such as books, CDs or
airline tickets. Furthermore, the relationship between customer satisfaction, e-loyalty
and continuous shopping intention in the Chinese online shopping environment should
be scrutinized.
Note
1. http://market.ccidnet.com/pub/report/show_8380.html
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Corresponding author
Xia Liu can be contacted at: liuxia1213@163.com
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Appendix 1. Questionnaire Online shopping
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Appendix 2. Exploratory factor loading
Components
Items
Factor
1
Factor
2
Factor
3
Factor
4
Factor
5
Factor
6
Factor
7
Factor
8
Factor
9
Color
combination
1
0.716
0.101
0.094
0.040
0.155
0.085
0.054
0.005
0.048
Payment
2
0.245
0.127
0.130
0.228
0.157
0.080
0.054
0.005
0.048
Delivery
1
0.140
20.091
0.171
0.770
0.178
0.185
0.061
0.149
20.022
Delivery
2
0.252
20.104
0.054
0.791
0.114
0.151
0.093
0.009
0.030
Delivery
3
0.144
20.080
0.135
0.829
0.006
0.126
0.149
0.128
0.063
Delivery
4
0.166
20.058
0.230
0.768
0.080
0.117
0.137
0.111
0.068
Customer
service
1
0.213
0.086
0.103
0.186
0.258
0.815
0.017
0.035
0.128
Customer
service
2
0.129
0.082
0.138
0.202
0.255
0.822
0.008
0.053
0.026
Customer
service
3
0.192
0.073
0.192
0.202
0.198
0.755
0.095
0.145
0.090
Navigation
4
information
0.680
0.070
0.055
0.068
0.002
0.069
0.136
0.030
0.101
Understandability
1
information
0.141
0.103
0.693
0.085
20.053
0.181
0.108
0.145
0.056
Understandability
2
information
0.167
0.094
0.739
0.063
20.070
0.159
0.046
0.184
0.024
Information
accuracy
1
0.085
0.085
0.635
0.023
0.317
20.059
0.170
0.022
0.149
Information
accuracy
2
20.006
0.083
0.567
0.128
0.366
0.043
20.059
0.178
0.160
Information
completeness
1
20.007
20.033
0.578
0.130
0.145
0.080
20.064
0.321
0.054
Information
completeness
2
0.157
20.004
0.630
0.060
0.099
0.052
0.055
20.194
20.048
Information
relevancy
1
0.118
0.069
0.591
0.191
0.195
0.018
0.037
20.034
20.050
Merchandise
variety
1
0.081
0.884
0.051
20.007
0.053
0.027
0.036
0.041
20.033
Merchandise
variety
2
0.051
0.861
0.029
20.049
0.024
0.046
0.101
0.035
20.039
Merchandise
variety
3
0.110
0.848
0.098
20.025
0.005
0.023
0.110
0.022
0.028
Merchandise
variety
4
0.040
0.816
0.063
20.065
20.018
0.065
0.017
0.016
20.055
Price
level
1
0.104
0.787
0.027
20.104
0.111
20.010
0.003
20.004
0.054
Price
level
2
0.129
0.780
0.050
20.003
0.153
0.069
20.011
0.094
20.003
Transaction
capability
1
0.251
0.109
0.201
0.204
0.099
0.060
0.175
0.724
0.076
Transaction
capability
2
0.161
0.106
0.162
0.176
0.210
0.134
0.029
0.743
20.047
Response
time
1
0.107
0.011
0.070
0.085
0.030
0.092
20.005
20.027
0.856
Response
time
2
0.103
20.065
0.076
0.010
0.117
0.071
0.015
0.051
0.841
Security/privacy
1
0.206
0.013
0.123
0.012
0.658
0.172
0.063
0.113
0.130
Security/privacy
2
0.164
0.060
0.138
0.106
0.768
0.190
0.124
0.007
0.008
Security/privacy
3
0.125
0.166
0.200
0.065
0.752
0.199
0.119
0.104
0.003
Security/privacy
4
0.097
0.086
0.134
0.227
0.749
0.085
0.015
0.068
0.031
Payment
1
0.242
0.140
0.126
0.216
0.160
0.028
0.847
0.075
0.003
Table AI.
IJRDM
36,11
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liu2008.pdf

  • 1. International Journal of Retail & Distribution Management An empirical study of online shopping customer satisfaction in China: a holistic perspective Xia Liu, Mengqiao He, Fang Gao, Peihong Xie, Article information: To cite this document: Xia Liu, Mengqiao He, Fang Gao, Peihong Xie, (2008) "An empirical study of online shopping customer satisfaction in China: a holistic perspective", International Journal of Retail & Distribution Management, Vol. 36 Issue: 11, pp.919-940, https://doi.org/10.1108/09590550810911683 Permanent link to this document: https://doi.org/10.1108/09590550810911683 Downloaded on: 22 January 2018, At: 08:35 (PT) References: this document contains references to 72 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 13531 times since 2008* Users who downloaded this article also downloaded: (2000),"An examination of the relationship between service quality, customer satisfaction, and store loyalty", International Journal of Retail &amp; Distribution Management, Vol. 28 Iss 2 pp. 73-82 <a href="https:// doi.org/10.1108/09590550010315223">https://doi.org/10.1108/09590550010315223</a> (2003),"A descriptive model of online shopping process: some empirical results", International Journal of Service Industry Management, Vol. 14 Iss 5 pp. 556-569 <a href="https:// doi.org/10.1108/09564230310500228">https://doi.org/10.1108/09564230310500228</a> Access to this document was granted through an Emerald subscription provided by emerald-srm:233725 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 2. *Related content and download information correct at time of download. Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 3. An empirical study of online shopping customer satisfaction in China: a holistic perspective Xia Liu Department of Marketing, Shanghai Jiaotong University, Shanghai, People’s Republic of China and Research Center of Hospital Management, Shanghai Sixth People’s Hospital, Shanghai, People’s Republic of China, and Mengqiao He, Fang Gao and Peihong Xie Department of Marketing, Shanghai Jiaotong University, Shanghai, People’s Republic of China Abstract Purpose – The purpose of this study is to identify factors that may influence Chinese customers’ online shopping satisfaction, including those which are ignored by prior studies, from the perspective of total online shopping experience. Design/methodology/approach – In this paper, the authors propose a model of the satisfaction process in the e-commerce environment, identifying key constructs proposed by prior studies and developing hypotheses about which dimensions of online retailer constructs are significant predictors of online shopper satisfaction. The authors test the hypotheses through multiple regression analysis based on a survey of 1,001 online customers. Findings – The analysis suggests that eight constructs – information quality, web site design, merchandise attributes, transaction capability, security/privacy, payment, delivery, and customer service – are strongly predictive of online shopping customer satisfaction, while the effect of response time is not significant. Research limitations/implications – This study does not control the differences across product categories; the use of self-reported scales to measure both independent and dependent variables may imply the possibility of a common method bias for the results. Originality/value – This research contributes to the study of online shopping customer satisfaction by: developing a model of the satisfaction process in the e-commerce environment, and identifying factors that may influence Chinese customers’ online shopping satisfaction including those which are ignored by prior studies. Keywords Electronic commerce, Customer satisfaction, China Paper type Research paper 1. Introduction After years of development of China’s online shopping market, there has been a drastic increase in the number of online shopping web sites in China. Statistics released by the PRC Ministry of Information Technology indicate that the number of retail web sites in 2001 totaled 2,046 and reached 2,219 by 2004. Retail web sites accounted for The current issue and full text archive of this journal is available at www.emeraldinsight.com/0959-0552.htm The authors would like to thank Acme Translations Co., Ltd for their support of the research. Online shopping customer satisfaction 919 Received 31 August 2007 Revised 3 January 2008 Accepted 28 February 2008 International Journal of Retail & Distribution Management Vol. 36 No. 11, 2008 pp. 919-940 q Emerald Group Publishing Limited 0959-0552 DOI 10.1108/09590550810911683 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 4. 49.5 per cent of China’s Ecommerce in 2004 with transaction volume of online shopping estimated at 4.2 billion RMB. By 2005, the transaction turnover of online shopping amounted to 5.6 billion RMB, a 33 per cent increase. With China’s online shopping environment maturing and offering improved levels of service, it is predicted that the volume could reach 46 billion RMB by 2010[1]. The rapid growth of online shopping in China underscores the importance of focusing on the issue of customer satisfaction as a key factor to address when designing any online retail outlet. Customers must be satisfied with their online shopping experience; otherwise they will not return (Kim and Stoel, 2004). A recent survey conducted by CNNIC found that only 3.5 per cent of the Chinese respondents were very satisfied with the online shopping experience. Dissatisfaction usually leads to lost customers and income. Compared with American customers, Chinese customers have several characteristics: their perception of safety is lower; they undertake higher purchasing risks because of fake goods and false advertising; the buyer sometimes is not the consumer; they are more sensitive to price; they are more cautious in making purchase decision (Lu, 2005). Therefore, a fundamental understanding of the factors affecting Chinese online shopping customers’ degree of satisfaction is of great importance to e-commerce. If companies can better understand their customers, they can present products or services more effectively and continuously improve them in order to strengthen their competitive advantage. Market orientation and customer satisfaction research show there is direct connection between customer satisfaction and organizational performance (Garver and Gagnon, 2002). Consequently, in the turbulent e-commerce environment, Internet companies need to know how to satisfy customers. This will enable them to sustain their growth and market share (McKinney et al., 2002). It is known that online shopping environment and behavior is fundamentally different from that of a conventional retail environment (Degeratu et al., 2000; Lynch and Ariely, 2000; Shankar et al., 2001, 2003; Ranganathan and Ganapathy, 2002; Heiner et al., 2004). It can be expected that the key drivers of customer satisfaction and retention in the Internet economy may be also different from those in the traditional economy. From different perspectives, researchers have developed and tested instruments to measure customer satisfaction with online shopping (Szymanski and Hise, 2000; Koivumaki, 2001; Heiner et al., 2004; Kim and Stoel, 2004). These researchers have done some innovative and pioneering work, but revealed conflicting findings, such as Szymanski and Hise (2000) find that web site design has the secondary significant impact on e-satisfaction, the study conducted by Kim and Lim (2001) shows that information quality has relationship with online shoppers’ satisfaction, but Kim and Stoel’s (2004) study indicate that web appearance and information attribute have little impact on customer satisfaction. In addition, China differs from foreign countries greatly in cultural tradition, logistic infrastructure and credit system. Chinese culture belongs to eastern culture system, and the infrastructure of logistics in China lags behind other developed countries. Moreover, there has not sound credit system in China. Prior researches indicate that culture (David, 2007), logistics (Sharma et al., 1995) and credit (Gentry, 1982) have important impact on customer behavior and satisfaction. Therefore, it is understandable that key drivers of online shopping customer satisfaction in China may be different from that of other countries. Just as de Mooij and Hofstede (2002) indicated, IJRDM 36,11 920 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 5. converging technology and disappearing income difference across countries will not lead to homogenization of consumer behavior. Rather, consumer behavior will become more heterogeneous because of cultural differences (de Mooij and Hofstede, 2002). Few studies, however, have explored online shopping customer satisfaction on Chinese context, so little is known about the construct of Chinese online shopping customer satisfaction. Based on earlier research (Szymanski and Hise, 2000; Koivumaki, 2001; Heiner et al., 2004; Kim and Stoel, 2004), the purpose of this research is to identify key constructs and corresponding measurement scales for examining Chinese online shopping customer satisfaction. This is done by developing a satisfaction process model in e-commerce environment, identifying key constructs proposed by prior studies and designing a group of hypotheses. Our research contributes to the study of online shopping customer satisfaction by: . Developing a model of the satisfaction process in the e-commerce environment. . Identifying factors that may influence Chinese customers’ online shopping satisfaction, including payment which are ignored by prior studies. The outcome of the study may be relevant to businesses, consumers and researchers. The paper proceeds as follows. Section 2 is literature review. Section 3 proposes a satisfaction process model in the e-commerce environment and designs a group of hypotheses. Section 4 describes the survey used to test the above model. Section 5 presents the results of statistical data analysis. Section 6 discusses the study’s implications for research and practice and outlines the study’s limitations. 2. Literature review While the subject of satisfaction has been discussed extensively in the traditional retailing literature (Mason and Bearden, 1979; Oliver, 1981; Anderson et al., 1994; Terblanche and Boshoff, 2001a,b; Johan, 2006; Ofir and Simonson, 2007), the exploration of dimensions and determinations of satisfaction under e-commerce context is at a nascent stage (Heiner et al., 2004). Recently, some researchers have started to investigate how the attributes of a web site will influence customers’ satisfaction. These studies have presented various characteristics as important factors for an effective B2 C e-commerce web site; however, up to now there is no consensus on how this affects online customer satisfaction (Schaupp and Bélanger, 2005). Table I summarizes several previous studies of the determinants of online shopping customer satisfaction. There have been several other attempts to build an evaluation framework or identify dominant factors concerning customer satisfaction with online shopping from the perspective of web site quality (Ranganathan and Ganapathy, 2002), purchasing behavior (Koivumaki, 2001; Park and Kim, 2003), consumer attitude (Elliott and Speck, 2005), customer value Shun and Yunjie, 2006 and service quality (Zhilin et al., 2003). The foregoing studies provide a broad basis for gaining insight into customer satisfaction with online shopping. Few empirical studies have been conducted to uncover the underlying constructs of customer satisfaction with online shopping, from the perspective of the total retail experience and following the purchase process. What’s more, the impact of payment was seldom touched on. A consumer buying process can be viewed as a sequence of several stages (Kotler, 1997; Oliver, 1981; Online shopping customer satisfaction 921 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 6. Ranganathan and Ganapathy, 2002), thus, satisfaction is a consequence of the customer’s experiences during various purchasing stages (Kotler, 1997). Berman and Evans (1998) define total retail experience as all the elements that encourage or inhibit consumers during their contact with the retailer. In this perspective, dimensions tested by prior studies, such as information quality, web site design are only one component of the online shopping customers’ total retailing experience. From a management perspective, it seems preferable to develop an instrument that covers all the dimensions of an online shopping experience that can be controlled by an online retailer. If only one component of the total retailing experience is considered at a time, it might be detrimental to our understanding of customers’ experience and this in turn could lead to strategies that either overemphasize or under appreciate the importance of one or more of such components (Terblanche and Boshoff, 2001a,b). Although some other studies touch on consumers’ shopping experience and their evaluation are based on perceptions of the online shopping web sites (Jarvenpaa and Todd, 1997; Griffith et al., 2001; Koivumaki, 2001; Park and Kim, 2003), these research mainly discuss the consumer’s information processing style, shopping pattern, etc. Chen and Chang (2003) innovatively proposed an overall model of Internet shopping process and identified three common online shopping components: interactivity, transaction and fulfillment, but their study lack theoretical background. Independent variable Key references Dependent variable Convenience Szymanski and Hise (2000) E-satisfaction Kim and Lim (2001) Consumers’ satisfaction with internet shopping Heiner et al. (2004) E-satisfaction Web site design Szymanski and Hise (2000) E-satisfaction Heiner et al. (2004) E-satisfaction Kim and Stoel (2004) Shopper satisfaction of apparel web site Hsuehen (2006) Customer satisfaction Financial security Szymanski and Hise (2000) E-satisfaction Heiner et al. (2004) E-satisfaction Trust Kim and Stoel (2004) Shopper satisfaction of apparel web site Assurance Devaraj et al. (2002) Consumer attitudes and satisfaction Reliability Kim and Lim (2001) Consumers’ satisfaction with internet shopping Information Szymanski and Hise (2000) E-satisfaction Kim and Lim (2001) Consumers’ satisfaction with internet shopping Heiner et al. (2004) E-satisfaction Kim and Stoel (2004) Shopper satisfaction of apparel web site Ballantine (2005) Customer satisfaction Hsuehen (2006) Customer satisfaction Merchandise variety Szymanski and Hise (2000) E-satisfaction Heiner et al. (2004) E-satisfaction Perceived ease of use Devaraj et al. (2002) Consumer attitudes and satisfaction Perceived usefulness Devaraj et al. (2002) Consumer attitudes and satisfaction Entertainment Kim and Lim (2001) Consumers’ satisfaction with internet shopping Kim and Stoel (2004) Shopper satisfaction of apparel web site Speed Kim and Lim (2001) Consumers’ satisfaction with internet shopping Response time Kim and Stoel (2004) Shopper satisfaction of apparel web site Transaction capability Kim and Stoel (2004) Shopper satisfaction of apparel web site Table I. Empirical research on determinants of online shopping customer satisfaction IJRDM 36,11 922 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 7. There have been several other attempts to study user satisfaction in the context e-services or online services (Zhang et al., 2006; Ha, 2006; Yang and Fang, 2004). For instance, Zhang et al. (2006) examine several factors (user computer proficiency, perceived convenience, site characteristics, perceived security, user satisfaction) affecting user satisfaction with e-services and find that perceived convenience, users’ skills and experiences, and perceived security have impact on user satisfaction with e-services. In the proceeding section, we will reorganize the web site quality studied in the prior research from the perspective of total retail experience of online shoppers. In addition, delivery and payment are examined in our study as unique features in the context of Chinese online shopping. 3. Research model and hypotheses Satisfaction is the consequence of the customer’s experiences during various purchasing process: need arousal, information search, alternatives evaluation, purchase decision, and post-purchase behavior (Kotler, 1997). In the increasingly technology-oriented online shopping environment, it is quite safe to assume that online shopping consumer satisfaction can be affected at every stage. The model of Turban et al. (2000) suggests that, in addition to selection and different properties of the goods, various features are related to the web shop, such as speed of operation, ease of use, that determine the navigation experience of the customer. Based on Kotler’s (1997) study, this study divides the purchasing process into three stages: information search and alternatives evaluation stage, purchase stage and post-purchase stage, and proposes a model of the satisfaction process in the e-commerce environment outlined in Figure 1. As indicated by the above model, customers’ overall satisfaction can be affected by all factors relevant to the process of online shopping. Based on the studies of Figure 1. Model of the satisfaction process in e-commerce environment Transaction capability Overall satisfaction Information quality H1 H2 H3 H6 H4 H5 H8 H9 H7 Website design Merchandise attributes Response Security/privacy Payment Delivery Customer service Stage 3: Post-purchase Stage 1: Information search and alternatives evaluation Stage 2: Purchase Online shopping customer satisfaction 923 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 8. Oliver (1980), Cadotte et al. (1987), and Spreng et al. (1996), we define overall satisfaction as an affective state representing an emotional reaction to the entire online shopping experience. This definition focuses on the process evaluation associated with online shopping behavior. In the following analysis, the concept of overall satisfaction is referred to simply as “satisfaction”, referring to a customer’s degree of satisfaction upon completion of an online shopping experience. 3.1 Information search and alternatives evaluation stage At the stage of information search and alternatives evaluation, information quality, the ambience associated with the site itself and how it functions, variety of merchandise and price all play roles in whether consumers are satisfied or dissatisfied with their online shopping experiences. It is argued that, since a primary role of an online store is to provide price-related information and product information to help reduce consumers’ search cost (Bakos, 1997), more extensive and higher quality information available online leads to higher levels of customer satisfaction (Peterson et al., 1997). Manes (1997) indicates that good web site design lies in good organization and easy search. Shopping is thought to be pleasurable and satisfying to consumers when the retailing sites are uncluttered and easy-to-navigate (Pastrick, 1997). In the alternatives evaluation stage, merchandise attribute including merchandise variety and price is important for decision making. Szymanski and Hise (2000) indicate that wider assortment of products may be attractive to customers and e-satisfaction would be more positive when online stores offer superior product assortments. Although some scholars think price sensitivity may actually be lower online than offline (e.g., Degeratu et al., 2000; Lynch and Ariely, 2000; Shankar et al., 2001), one most commonly cited reason for online shopping is price, and many early online marketers used price as bait to lure consumers to their sites (Chen and Chang, 2003). Moreover, the Chinese are quite sensitive to price (Lu, 2005). Therefore, we hold the view that product price has a lot to do with Chinese customers’ satisfaction. Based on the discussion above, we propose the following hypotheses: H1. Higher level of information quality will improve customer satisfaction in online shopping. H2. Good web site design will have a positive effect on online shopping customer satisfaction. H3. Wider merchandise variety and low price will have a positive effect on online shopping customer satisfaction. 3.2 Purchase stage At the purchase stage, privacy/security, payment mechanisms, transaction capabilities and speed of operation may affect satisfaction. Compared with the traditional economy, online consumers are more keenly aware of the need for privacy/security (Culnan, 1999; Friedman et al., 2000; Grewal et al., 2004). Inadequate infrastructure, lack of trust, and privacy and security concerns often lead to lost sales (Yianakos, 2002; Grabner-Kraeuter, 2002). Moreover, online shoppers are known for low tolerance (Chen and Chang, 2003), it is estimated that, on average, online shoppers only wait for eight seconds for system feedback before bailing out (Dellaert and Kahn, 1999). A web page designer has to consider not only appearance and functionality, but also loading time IJRDM 36,11 924 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 9. (Weinberg, 2000). A commonly cited reason for online shopping is convenience (Chen and Chang, 2003). Therefore, it will raise the customer’s degree of satisfaction to improve the web site’s transaction capability, design a secure and convenient payment mechanism, ensure completion of all online shopping operations and save the customer’s operation time. Hence, the study designs the following hypotheses: H4. Great transaction capability will have a positive effect on online shopping customer satisfaction. H5. Rapid response time will have a positive effect on online shopping customer satisfaction. H6. Security/privacy will have a positive effect on online shopping customer satisfaction. H7. A convenient payment mechanism will have a positive effect on online shopping customer satisfaction. 3.3 Post-purchase stage Post-purchase evaluation can be influenced by the efficiency of logistics and customer service. The most common types of complaints about Internet transactions include refund and billing disputes, return and exchange policies, defective products, and poor customer service (Chen and Chang, 2003). Consumers want careful, continuous, useful communication across geographic barriers (Lohse and Spiller, 1998). In the e-commerce environment, not only is the consumption of goods separated from production, thus making it necessary for goods to be delivered to consumers before consumption, there is also a delay in the delivery of goods. Delayed delivery may have a negative effect on satisfaction. As shown by the 2004 China Online Shopping Report by CNNIC 25 per cent of Chinese customers were not satisfied due to delayed delivery or wrong product delivery (CNNIC, 2004). One customer complained that he bought a digital camera from an online company but received sports equipment instead. Thus, we have the following hypotheses: H8. Safe and rapid delivery will have a positive effect on online shopping customer satisfaction. H9. A higher level of customer service will result in greater satisfaction. 4. Research methodology 4.1 Survey instrument All constructs were measured using multiple items, seven-point, Likert scales ranging from strongly disagree to strongly agree. Wherever possible, initial scale items were taken from previously validated measures in e-satisfaction, online shopping customer satisfaction and web site quality literature and then reorganized and adapted to the current context. Information quality was evaluated from four dimensions: information accuracy, information comprehensibility, information completeness and information relevancy. The items were adapted from the items initially developed by Jeong et al. (2003) and Muyllea et al. (2004). Web site design was evaluated from four aspects: navigation, Online shopping customer satisfaction 925 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 10. web site structure, color combination and ease of use. The items were taken from Muyllea et al. (2004), Jeong et al. (2003) and Kim and Stoel (2004). Merchandise attribute was evaluated from two dimensions: product variety and product price. This thesis consulted the study of Szymanski and Hise (2000) which evaluates product variety from two perspectives: number of offerings and variety of offerings. Based on this we designed four items. We designed another two items to evaluate product price through in-depth discussion with 30 online shoppers and site administrators, who all agree that these two items can reflect price level. The transaction capability and response time scale were adapted from Kim and Stoel (2004). Based on the in-depth interview with online shoppers and managers of B2C web sites such as www.joyo.com, www.dangdang.com, we develop two items to evaluate payment: the web site has complete payment options; I accept the payment options provided by the web site. Security/privacy and customer service scale were taken from Wolfinbargerhe and Gilly (2003). Delivery scale consists of four items, among which two are taken from Wolfinbargerhe and Gilly (2003). The other two are developed on the basis of in-depth interviews: the items sent by the site are well packaged and perfectly sound I am satisfactory with the delivery mode of the web site. Satisfaction scale consists of four items taken from Oliver (1981), referring to a customer’s degree of satisfaction upon completion of an online shopping experience. The survey instrument consists of two sections. In the first section, respondents were asked to fill in their gender, age, educational level and latest purchased product. In the second section, they were asked to identify the extent to which they agree/disagree with the items related to their latest online shopping experience. Each item was measured on a seven-point Likert scale from 1 (strongly disagree) to 7 (strongly agree). 4.2 Sample and data Prior to the survey, the survey instrument was pilot tested using five doctoral students and 20 others who had online shopping experience. Pre-test interviews were undertaken to refine the questionnaire. The items were revised based on the feedback. Since we want to gather data of customers’ perception of the online shopping experience, we asked only those subjects with some prior web shopping experience. Data was collected as follows: . Field survey. Field surveys were conducted mainly in big cities such as Beijing, Shanghai, Nanjing, Hefei, Changsha and Jinan. We interviewed shoppers at some large shopping malls in these cities, and inquired if they had online shopping experience. The incentive was a lottery ticket.742 respondents answered the questionnaire with 709 usable respondents. . E-mail survey. The e-mail was sent to a sample of 542 valid e-mail addresses, drawn from a large e-mail list provided by a company. The number of each e-mail address was randomly produced by computer. Internet users (115) agreed to participate in the study. The e-mail containing questionnaire was then sent to these 115 Internet users. A total of 98 respondents provided usable answers to the questionnaire. This was a return of 18.08 per cent on the original mailing and of 85.2 per cent among the people that agreed to cooperate. IJRDM 36,11 926 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 11. . Online survey. We put the questionnaire on a web site (www.acmetranslation. com/diaocha.php), which is linked to a company’s BBS web site which has a daily visit volume of 3,000 persons. Respondents online answered the questionnaire, and the data was saved in the database of the company. This campaign produced 211 usable responses. Online surveys have several advantages over traditional surveys: not restricted to a particular geographical location (Shankar et al., 2003), lower costs (Shankar et al., 2003), faster responses (Shankar et al., 2003), more effective in identifying and seeking online shoppers (Szymanski and Hise, 2000), and more interesting (Edmonson, 1997). This survey altogether collected 1,018 responses, deleted 17 outliers and kept 1,001 valid responses. Before combining the three sub-samples, we performed one-way ANOVA analysis and the result indicates that there have not significant differences in the three sub-samples. The demographic characteristics of respondents were as follows: respondents’ age averaged 32 years and ranged from 19 to 56; 64.3 per cent of respondents have a college degree and 15.7 per cent have master’s degree or above; 47.9 per cent were female and 52.1 per cent were male. 4.3 Validity and reliability In this study, construct, convergent and discriminant validity are assessed by exploratory factor analysis with SPSS 13.0 and confirmatory factor analysis with LISREL 8.7. The main sample is divided into two sub-samples, one (501 respondents) for exploratory factor analysis and second (500 respondents) for confirmatory factor analysis. By exploratory factor analysis (principal component analysis and varimax rotation is used), we have nine factors for the importance with the eight values greater than one as shown in Table II. The total variance explained by the nine factors is 67.434 per cent. Five items with large standardized residuals were removed, resulting in the retention of 44 items, with two to ten items per construct (Table II and Appendix 1). A second study was carried out in order to further asses the factor structure as well as to establish convergent and discriminant validity through confirmatory factor analyses. Confirmatory factor analysis provides satisfactory support for the nine-dimension model (x 2 ¼ 1739.97; df ¼ 704; p , 0.001; RMR ¼ 0.1; GFI ¼ 0.85; AFGI ¼ 0.83; CFI ¼ 0.97; RMSEA ¼ 0.054). Following the procedures suggested by Fornell and Larcker (1981) and Bagozzi and Yi (1988), convergent validity was assessed by verifying the significance of the t values associated with the parameter estimates (Table II). All t values were positive and significant ( p , 0.01). Discriminant validity was tested by comparing the square root of average variance extracted (Ave) by each construct to the correlations between the construct and all other variables. For each construct, the square root of Ave exceeded all the correlations (Tables III and IV). In order to verify the reliability of the instrument, a statistical reliability analysis was conducted using Cronbach’s as. Cronbach’s as value for each of the factors ranged from 0.705 to 0.908 (Table II) and clearly exceed the 0.70 cutoff recommended by Nunnally (1978) for basic research. Online shopping customer satisfaction 927 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 12. Factor and items Exploratory factor loading (n ¼ 501) Confirmatory factor loading (t-value) (n ¼ 500) Cronbach’s a Factor 1: web site design(j1) 0.878 Color combination 1 0.716 0.72 (18.87) Color combination 2 0.716 0.66 (15.88) Ease of use 1 0.696 0.69 (17.02) Ease of use 2 0.669 0.67 (16.32) Ease of use 3 0.591 0.67 (16.19) Web site structure 3 0.583 0.55 (12.79) Navigation 1 0.623 0.55 (12.66) Navigation 2 0.726 0.62 (14.60) Navigation 3 0.734 0.65 (15.52) Navigation 4 0.680 0.59 (13.70) Factor 2: information quality (j2) 0.797 Understandablity 1 0.693 0.68 (15.92) Understandability 2 0.739 0.71 (17.01) Accuracy 1 0.635 0.58 (18.15) Accuracy 2 0.567 0.62 (14.32) Completeness 1 0.578 0.59 (13.48) Completeness 2 0.630 0.44 (9.66) Relevancy 1 0.591 0.55 (12.32) Factor 3: merchandise attributes (j3) 0.908 Merchandise variety 1 0.884 0.82 (21.83) Merchandise variety 2 0.861 0.80 (21.04) Merchandise variety 3 0.848 0.83 (22.08) Merchandise variety 4 0.816 0.74 (18.59) Price level 1 0.787 0.71 (17.65) Price level 2 0.780 0.71 (17.74) Factor 4: transaction capability (j4) 0.716 Transaction capability 1 0.724 0.74 (15.78) Transaction capability 2 0.743 0.71 (15.17) Factor 5: response time (j5) 0.705 Response time 1 0.856 0.76 (15.50) Response time 2 0.841 0.72 (14.89) Factor 6: security/privacy (j6) 0.829 Security/privacy 1 0.658 0.65 (15.10) Security/privacy 2 0.768 0.79 (19.84) Security/privacy 3 0.752 0.81 (20.60) Security/privacy 4 0.749 0.70 (16.80) Factor 7: payment (j7) 0.896 Payment 1 0.847 0.90 (21.47) Payment 2 0.838 0.87 (20.64) Factor 8: delivery (j8) 0.895 Delivery 1 0.770 0.83 (22.74) Delivery 2 0.791 0.80 (20.78) Delivery 3 0.829 0.86 (23.39) Delivery 4 0.768 0.82 (21.80) Factor 9: customer service (j9) 0.886 Customer service 1 0.815 0.90 (25.04) Customer service 2 0.822 0.83 (21.96) (continued) Table II. Construct measurement summary: exploratory and confirmatory factor analysis IJRDM 36,11 928 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 13. 4.3 Regression results Then, multiple regression analysis (SPSS13.0) was used to estimate the effect of nine constructs on online shopping consumer satisfaction level. The regression results are presented in Table V. The data in Table IV shows that the regression coefficient for delivery, customer service, security/privacy, transaction capability, merchandise attributes, information quality, payment and web site design are all statistically significant. Response time has no effect on customer satisfaction. Additionally, we find that delivery has the greatest impact on satisfaction (b ¼ 0.214). The data also indicates that transaction capability is the second most important element driving satisfaction levels (b ¼ 0.191). Meanwhile, security/privacy, customer service, information quality, merchandise attributes and payment are statistically significant, but have less impact on satisfaction compared with delivery and transaction capability. Finally, the data indicates that web site design (b ¼ 0.055) is of less practical significance to satisfaction assessment. Factor and items Exploratory factor loading (n ¼ 501) Confirmatory factor loading (t-value) (n ¼ 500) Cronbach’s a Customer service 3 0.755 0.82 (21.49) Dependent variable: satisfaction 0.826 Satisfaction 1 0.788 0.67 Satisfaction 2 0.831 0.76 Satisfaction 3 0.836 0.79 Satisfaction 4 0.811 0.73 Table II. Factor 1 2 3 4 5 6 7 8 9 Ave 0.41 0.36 0.59 0.53 0.55 0.55 0.78 0.69 0.72 Sqrt 0.64 0.60 0.77 0.73 0.74 0.74 0.88 0.83 0.85 Table III. The average variance extracted by each construct Dimensions j1 j2 j3 j4 j5 j6 j7 j8 j8 j1 1.00 j2 0.467 * * 1.00 j3 0.250 * * 0.213 * * 1.00 j4 0.428 * * 0.452 * * 0.183 * * 1.00 j5 0.313 * * 0.280 * * 0.078 * 0.206 * * 1.00 j6 0.421 * * 0.462 * * 0.201 * * 0.359 * * 0.279 * * 1.00 j7 0.415 * * 0.312 * * 0.232 * * 0.345 * * 0.138 * * 0.322 * * 1.00 j8 0.421 * * 0.401 * * 20.054 0.410 * * 0.230 * * 0.356 * * 0.395* * 1.00 j9 0.451 * * 0.407 * * 0.173 * * 0.376 * * 0.337 * * 0.488 * * 0.267* * 0.455* * 1.00 Notes: *Correlation is significant at the 0.05 level (two-tailed); * *correlation is significant at the 0.01 level (two-tailed) Table IV. Pearson correlations matrix Online shopping customer satisfaction 929 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 14. Thus, our hypotheses that delivery, customer service, security/privacy, transaction capability, merchandise attribute, information quality, payment and web site design are positively correlated with online shopping customer satisfaction were supported. The hypothesis that rapid response time will have a positive effect on online shopping customer satisfaction was rejected. An examination of excessive multicollinearity and autocorrelation was performed. First, the value of Durbin-Watson was 1.914. Second, the variance inflation factors (VIF) were scrutinized and all were found to be within the range of 1.206-1.665. Myers (1990) indicates that only if the rpramila VIF is above ten is there cause for concern about multicollinearity. Therefore, multicollinearity and autocorrelation were well within acceptable limits and not unduly influencing the regression estimates. 5. Discussion and implications This study offers several important findings in the Chinese context, summarized as follows: . Delivery has a positive impact on customer satisfaction, which is consistent with the study of Sharma et al. (1995). . Transaction capability has a significant effect on customer satisfaction. This finding is consistent with the study of Kim and Stoel (2004). . The effect of security/privacy on satisfaction is in a positive direction. This finding is consistent with the studies of Szymanski and Hise (2000) and Schaupp and Bélanger (2005), but contradictory to Kim and Stoel’s (2004) finding. . As hypothesized, customer service is found to exert a significant positive influence on customer satisfaction. This finding is consistent with the study of Wolfinbargerhe and Gilly (2003). . Information quality has significant impact on customer satisfaction as well, which is consistent with the research conclusion by Kim and Stoel (2004), Kim and Lim (2001) and McKinney et al. (2002). Constructs Proposed effect Standard coefficient (SE) t-value VIF Hypothesis result Delivery þ 0.214 (0.021) 8.667 * * 1.665 H8 was supported Transaction capability þ 0.191 (0.021) 8.237 * * 1.468 H4 was supported Security/privacy þ 0.187 (0.025) 7.869 * * 1.539 H6 was supported Customer service þ 0.186 (0.023) 7.688 * * 1.601 H9 was supported Information quality þ 0.153 (0.029) 6.365 * * 1.592 H1 was supported Merchandise attribute þ 0.119 (0.019) 5.654 * * 1.206 H3 was supported Payment þ 0.105 (0.019) 4.687 * * 1.385 H7 was supported Web site design þ 0.055 (0.030) 2.230 * 1.652 H2 was supported Response time H5 was rejected Fmodel 218.514 * R 2 (R 2 adjusted) 0.639 (0.636) Durbin-Watson 1.914 Notes: *Statistically significant at the 0.01 level; * *statistically significant at the 0.001 level Table V. Regression results IJRDM 36,11 930 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 15. . The role of merchandise attributes in customer satisfaction is evident, unlike the finding reported by Szymanski and Hise (2000). . The data also reveals that payment has an impact on online shopping customer satisfaction. Previous research on customer satisfaction seldom touches on it. This study uncovers its effect on customer satisfaction. . The effect of web site design on satisfaction is in a positive direction. This finding is consistent with the study of Szymanski and Hise (2000), but somewhat contradictory to Kim and Stoel’s (2004) finding. . Nevertheless, the effect of response time on customer satisfaction is not significant. This finding differs from previous studies (Kim and Lim, 2001; Kim and Stoel, 2004). Our findings have both managerial and research implications: . Delivery and customer service play a critical role in Chinese customer satisfaction. To satisfy customers in today’s competitive e-marketplace, online retailers must keep a close eye on delivery and customer service. Prompt delivery and prompt response to customers’ concerns and inquiries are crucial because order fulfillment still remains a weak spot for Chinese online retailers. In the online shopping environment, delayed delivery and ignorance of customers’ concerns and inquiries will cause customer dissatisfaction. Especially, in the Chinese context, which can be worse because in China the logistic infrastructure lags behind other countries and the sense of customer service is relatively weak. Because customers lack direct, face-to-face interaction with service providers, many issues still demand human intervention. Therefore, company representatives must be able to answer customer inquiries and solve problems as soon as they occur. . Detailed and complete product information should be provided. In the online shopping environment, products are intangible. Customers cannot touch, taste, observe, smell or listen to the goods as they do in traditional ways. To know the quality and functionality of a commodity, customers can only rely on the pictures and descriptions of the goods on the web pages. Therefore, to enhance customers’ degree of satisfaction, B2C web sites should provide clear and understandable information to online shoppers. Meanwhile, web sites should provide descriptive information of the goods that is as complete as possible, including the color, functionality, producer, model, etc. This is to ensure the customers can make purchase decisions. Koivumaki (2001) finds that displaying pictures of the goods’ has greater influence on customer’s purchase decision than just listing out the product description. . Providing varied types of commodities and preferential price is important. Customer satisfaction still depends on product variety and product price. With this in mind, smart online retailers will offer abundant choices to customers, as well as provide competitive product prices. The Chinese are especially sensitive to price and are accustomed to comparing prices (Lu, 2005). Many are not willing to spend extra money in shopping. Moreover, on the Internet, customers have access to more information. Their ability to compare and analyze forces web sites to revalue the products and allows customers to gain material benefits. Online shopping customer satisfaction 931 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 16. . Expending more effort on web page design and making online shopping enjoyable is also important. The visitor’s first impression on the web site is derived from the page design, the layout and color match. Then, it is the content. Comfortable and pleasing pages can attract customers and prolong their stay, which increases the possibility of purchase and helps to improve the customer’s degree of satisfaction. . It is also vital to strengthen the web site’s transaction capability and make sure all operations can be completed online. This saves the customer’s time and fully reflects the convenience of online shopping. . Because China lacks network ID authentication and online transaction credit system, credit, security and privacy become the spotlight of online shopping. It is important for online retailers to create a safe online shopping environment, provide convenient and safe payment methods, protect customers’ privacy and guarantee financial security. Some limitations of this research are noteworthy: . Some researchers suggest that web site attributes considered important by shoppers may differ by product (Peterson et al., 1997; McGoldrick et al., 1999; Elliot and Fowell, 2000). This study does not control such differences across product categories. . This study dose not control for tangible versus intangible products/services in the analysis. . The use of self-reported scales to measure both independent and dependent variables may imply the possibility of a common method bias for the results. Future research can develop more detailed models that can capture and explain the differences across product categories or focus on one category, such as books, CDs or airline tickets. Furthermore, the relationship between customer satisfaction, e-loyalty and continuous shopping intention in the Chinese online shopping environment should be scrutinized. Note 1. http://market.ccidnet.com/pub/report/show_8380.html References Anderson, E.W., Fornell, C. and Lehmann, D.R. (1994), “Customer satisfaction, market share, and profitability: findings from Sweden”, Journal of Marketing, Vol. 58 No. 3, pp. 53-66. Bagozzi, R.P. and Yi, Y. (1988), “On the evaluation of structural equation models”, Academy of Marketing Science, Vol. 16 No. 1, pp. 74-94. Bakos, J.Y. (1997), “Reducing buyer search costs: implications for electronic marketplaces”, Management Science, Vol. 43 No. 12, pp. 1676-92. Ballantine, P.W. (2005), “Effects of interactivity and product information on consumer satisfaction in an online retail setting”, International Journal of Retail & Distribution Management, Vol. 33 No. 6, pp. 461-71. Berman, B. and Evans, J.R. (1998), Retail Management, 7th ed., Prentice-Hall, Upper Saddle River, NJ, p. P19. IJRDM 36,11 932 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
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  • 20. Further reading Carman, J.M. (1990), “Consumer perceptions of service quality: an assessment of the SERVQUAL dimensions”, Journal of Retailing, Vol. 66 No. 1, pp. 33-55. Helson, H. (1964), Adaptation-Level Theory, Harper & Row, New York, NY. Loiacono, E.T. (2000), “WebQualTM: a website quality instrument”, unpublished doctoral dissertation, University of Georgia, Athens. Solomon, R.L. (1980), “The opponent process theory of acquired motivation: the costs of pleasure and the benefits of pain”, American Psychologist, Vol. 35 No. 8, pp. 713-28. Solomon, R.L. and Corbit, J.D. (1974), “An opponent-process theory of motivation: I. Temporal dynamics of affects”, Psychological Review, Vol. 81 No. 2, pp. 119-45. Corresponding author Xia Liu can be contacted at: liuxia1213@163.com IJRDM 36,11 936 To purchase reprints of this article please e-mail: reprints@emeraldinsight.com Or visit our web site for further details: www.emeraldinsight.com/reprints Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 21. Appendix 1. Questionnaire Online shopping customer satisfaction 937 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
  • 24. Appendix 2. Exploratory factor loading Components Items Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6 Factor 7 Factor 8 Factor 9 Color combination 1 0.716 0.101 0.094 0.040 0.155 0.085 0.054 0.005 0.048 Payment 2 0.245 0.127 0.130 0.228 0.157 0.080 0.054 0.005 0.048 Delivery 1 0.140 20.091 0.171 0.770 0.178 0.185 0.061 0.149 20.022 Delivery 2 0.252 20.104 0.054 0.791 0.114 0.151 0.093 0.009 0.030 Delivery 3 0.144 20.080 0.135 0.829 0.006 0.126 0.149 0.128 0.063 Delivery 4 0.166 20.058 0.230 0.768 0.080 0.117 0.137 0.111 0.068 Customer service 1 0.213 0.086 0.103 0.186 0.258 0.815 0.017 0.035 0.128 Customer service 2 0.129 0.082 0.138 0.202 0.255 0.822 0.008 0.053 0.026 Customer service 3 0.192 0.073 0.192 0.202 0.198 0.755 0.095 0.145 0.090 Navigation 4 information 0.680 0.070 0.055 0.068 0.002 0.069 0.136 0.030 0.101 Understandability 1 information 0.141 0.103 0.693 0.085 20.053 0.181 0.108 0.145 0.056 Understandability 2 information 0.167 0.094 0.739 0.063 20.070 0.159 0.046 0.184 0.024 Information accuracy 1 0.085 0.085 0.635 0.023 0.317 20.059 0.170 0.022 0.149 Information accuracy 2 20.006 0.083 0.567 0.128 0.366 0.043 20.059 0.178 0.160 Information completeness 1 20.007 20.033 0.578 0.130 0.145 0.080 20.064 0.321 0.054 Information completeness 2 0.157 20.004 0.630 0.060 0.099 0.052 0.055 20.194 20.048 Information relevancy 1 0.118 0.069 0.591 0.191 0.195 0.018 0.037 20.034 20.050 Merchandise variety 1 0.081 0.884 0.051 20.007 0.053 0.027 0.036 0.041 20.033 Merchandise variety 2 0.051 0.861 0.029 20.049 0.024 0.046 0.101 0.035 20.039 Merchandise variety 3 0.110 0.848 0.098 20.025 0.005 0.023 0.110 0.022 0.028 Merchandise variety 4 0.040 0.816 0.063 20.065 20.018 0.065 0.017 0.016 20.055 Price level 1 0.104 0.787 0.027 20.104 0.111 20.010 0.003 20.004 0.054 Price level 2 0.129 0.780 0.050 20.003 0.153 0.069 20.011 0.094 20.003 Transaction capability 1 0.251 0.109 0.201 0.204 0.099 0.060 0.175 0.724 0.076 Transaction capability 2 0.161 0.106 0.162 0.176 0.210 0.134 0.029 0.743 20.047 Response time 1 0.107 0.011 0.070 0.085 0.030 0.092 20.005 20.027 0.856 Response time 2 0.103 20.065 0.076 0.010 0.117 0.071 0.015 0.051 0.841 Security/privacy 1 0.206 0.013 0.123 0.012 0.658 0.172 0.063 0.113 0.130 Security/privacy 2 0.164 0.060 0.138 0.106 0.768 0.190 0.124 0.007 0.008 Security/privacy 3 0.125 0.166 0.200 0.065 0.752 0.199 0.119 0.104 0.003 Security/privacy 4 0.097 0.086 0.134 0.227 0.749 0.085 0.015 0.068 0.031 Payment 1 0.242 0.140 0.126 0.216 0.160 0.028 0.847 0.075 0.003 Table AI. IJRDM 36,11 940 Downloaded by UNIVERSITY OF VIRGINIA At 08:35 22 January 2018 (PT)
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