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Review of Related Literature

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Review of Related Literature

Online selling or E-commerce had been in trend in this generation that greatly
affects the satisfaction of consumers. There are influencing factors in order to
measure the consumer satisfaction, such as the pricing, the quality of
products, security, availability, discount, shipping, and the accessibility of
information. According to Neil Patel, Customer satisfaction measures how
your product, service, and overall experience either falls short, meets, or
exceeds customer expectations.It is said that customer satisfaction has
been identified as an important phenomenon in relation to online shopping.
The investigation of what cause customer satisfaction has become paramount
for online businesses.

Filipinos especially teenagers are known for being cautious in terms of


purchasing a product. They consider security, faster transaction or shipping,
product quality and availability, price and values, discount and the
accessibility of information (e.g using internet shops, website). Filipino
consumers value online shopping because of its convenience and
accessibility. On the other hand, even if the online mechanisms may provide
easy to use and efficient methods of shopping (Momtaz, Islam, Ariffin, &
Karim, 2011), the customers may not opt for them if those mechanisms do not
meet their expectations.

1.1 Pricing

Since customers often check at pricing when evaluating the product and
service value, pricing is an important factor in customer satisfaction. Price is
what is given up or expected in order to purchase a product from the
consumer's perspective. Pricing has been correlated with customer
satisfaction in a number of studies. Customer satisfaction is directly affected
by pricing expectations of the transaction's delivered value and usability.
Customers are dissatisfied and disloyal when their pricing experience is
negative.

Consumers use the Internet to purchase the same product at a cheaper


price than they would in a store due to better purchasing conditions. Many
consumers anticipate that online retailers can sell their goods and services at
a lower cost than conventional stores. Discounts during sales encourage
customers to believe in prices, which in ultimately changes their satisfaction.
Customers cannot see or test products when shopping online, so they cannot
be assured that the shipped product is similar to the one on the website. As a
result, price perception plays a greater role. As online stores offer consumers
a range of products and services, consumers can compare product prices
from different websites and find the products at lower prices than the prices in
the stores some websites. Ultimately, pricing can be the reason for
renouncing the product or service or making a sacrifice in order to have the
product or service.
1.2 Product Quality

Customer satisfaction is significantly influenced by the quality of products and


services in online commerce. The consumer's evaluation of a product's overall
excellence or superiority is referred to as perceived product quality. As per
Keeney, e-commerce success is dependent on lowering product costs and
increasing product quality. The most important determinant of satisfaction,
according to Patterson, is perceived product quality.

On the other hand, according to a number of studies on online shopping, the


quality of service has a positive impact on consumer satisfaction. Customers
can form strong and loyal relationships with online stores based on the level
of service they receive. Customers' needs are met and their satisfaction is
strengthened when online retailers provide excellent service quality.
Furthermore, the degree of assistance provided by online retailers in
delivering efficient and successful product and service purchase, shipping,
and distribution is interpreted as the quality of service. By providing and
sending information either via formal or informal platforms, online vendors
increase the expectations of their customers and add value to their services.

As a result, it's important to control quality in the workplace in order to provide


customers with the best possible service. The ability to anticipate and then
satisfy the needs of customers is what service quality is all about. As a result,
delivering high-quality service plays a critical role in boosting customer loyalty.
Consumers' decisions to buy online are influenced heavily by the consistency
of a website.

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