THE ROLE OF E-COMMERCE IN IMPROVING CUSTOMER SERVICE IN KONGA.COM
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Evidently, the Internet has resulted in a fundamental shift in retailing practice, creating a shift in both consumer and business behavior, which has been compared to that of the Industrial Revolution. The purpose of this paper is to analyze customer satisfaction in e-commerce market. In particular, this determined the factors that affect customer e-satisfaction and the relationship between customer satisfaction and consumer spending in e-commerce retailing.
The use of e-commerce websites can lead to accepting and satisfying intentions and then influence customer satisfaction behavior towards an e-commerce website. Customer satisfaction is how satisfied a customer is with the supplied product/service. It is closely related to interpersonal trust [Wikipedia, 2021].
It is expected that a higher level of customer satisfaction will lead to greater loyalty. However, the impact of satisfaction on customer loyalty is rather complex. Fisher [2001] believes that customer satisfaction accounts for only part of why people change product or service providers. Other studies have shown that customer satisfaction is a leading factor in determining loyalty [emersys.com, 2021].
Generally, loyalty has been defined as the repeat purchasing frequency or the relative volume of same-brand purchasing. Oliver defines customer loyalty as a deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same brand or same brand set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior. In e-commerce, loyal customers are considered extremely valuable. Loyal customers not only require more information themselves, but they serve as an information source for other customers. Building customer loyalty is one of the biggest challenges for business to customer e-commerce (Survicate, 2021).
Customer satisfaction and trust have been brought forward as a precondition for patronage behavior [Pavlou 2003] and the development of long-term customer relationships [Papadopoulou, Andreou, Kanellis, and Martakos 2019].
The study by Kassim and Ismail [2020] found that services quality and vendor’s assurance to online customers, contribute to building trust and satisfaction thereby improving customer loyalty. This study shall therefore determine the role of e-commerce in improving customer service.
1.2 Statement of the Problem
Although the online approach has made shopping a lot easier for consumers, it has also brought unique challenges for ecommerce companies. Not all businesses are making money consistently. There are challenges standing in their way, big and small alike. A number of performance problems in e-commerce systems have been observed, which include
i. Maintaining customer loyalty
ii. Delivering an Omni-channel customer experience
iii. The need for online identity Verification
Creating customer satisfaction is pivotal to enhance customer loyalty and repeat patronage which is dependent on a number of factors. This research will confront the above problems listed by investigating the role of e-commerce in improving customer satisfaction, with a study of KONGA.
1.3 Research Questions
In analyzing e-commerce and service delivery the following questions are pertinent:
i. What is the nature of e-commerce?
ii. What is customer satisfaction and what factors determine customer satisfaction in e-commerce?
iii. What is the role of e-commerce in improving customer satisfaction?
iv. How does KONGA e-commerce improve customer satisfaction?
1.4 Objectives of the Study
The general aim of this study is to analyze-commerce and customer satisfaction in KONGA while the objectives are as follows;
i. To appraise the nature of e- commerce business services
ii. To appraise customer satisfaction and factors determining customer satisfaction
iii. To determine the role of e-commerce in improving customer satisfaction
iv. To determine the KONGA e-commerce services in improving customer satisfaction
1.5 Significance of the Study
This study became extremely important because of observed knowledge gap on e-commerce and its impact on customer satisfaction. This has made it apparently necessary to carry out this study. This study is therefore of significance in the following ways
i. Managers of marketing organizations in Nigeria would benefit from the study as recommendations would serve as necessary data for management strategic decision making.
ii. This study shall determine the role of e-commerce in improving customer satisfaction
iii. This study would be of importance to academics who are involved in knowledge transfer as findings would serve as research evidence.
1.6 Statement of Hypotheses
i. H0 E-commerce product/service of KONGA does not have significant impact on customer satisfaction
H1 E-commerce product/service of KONGA has significant impact on customer satisfaction
ii. H0 E-commerce security feature of KONGA does not have significant impact on customer satisfaction
H1 E-commerce security feature of KONGA have significant impact on customer satisfaction
iii. H0 E-commerce user interface of KONGA does not have significant impact on customer satisfaction
H1 E-commerce user interface of KONGA have significant impact on customer satisfaction
1.7 Scope of the Study
The study focuses on the role of e-commerce in improving customer service in;
⦁ KONGA.COM
It provides a conceptual and theoretical appraisal of the nature of e-commerce and the factors which determine customer satisfaction in e-commerce.
1.8 Limitations of Study
1. Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
2. Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.9 Definition of Terms
E-Commerce: E-commerce is a short term for electronic commerce, it consist of trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, E-commerce, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail.
Customer: A customer is an individual or business that purchases another company's goods or services. Customers are important because they drive revenues; without them, businesses cannot continue to exist. All businesses compete with other companies to attract customers, either by aggressively advertising their products, by lowering prices to expand their customer bases or developing unique products and experiences that customers love, think Apple, Tesla, Google or TikTok.
Customer Satisfaction: is defined as a measurement that determines how products or services provided by a company meet customer expectations. Customer satisfaction is one of the most important indicators of consumer purchase intentions and loyalty.
High-standard customer service can win your clients’ hearts and make you recognizable within your target group. Nowadays when social media play such an important role in making decisions it’s crucial to keep an eye on the quality of customer service you provide. If you don’t care about customers’ satisfaction, don’t expect them to care about your services or products. Customer satisfaction is a marketing term that measures how products or services supplied by a company meet or surpass a customer's expectation
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