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The influence of website functionality, drivers and perceived risk on customer satisfaction in online shopping: an emerging economy case

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Abstract

The study analyzed website functionality, perceived risk and drivers of online shopping to evaluate their impact on customer satisfaction in India. The study empirically validates ease of ordering, Cash-on-delivery mode of payment, website functionality and different facets of perceived risk with Unified theory of acceptance and use of technology 2 (UTAUT2) (Venkatesh et al. in MIS Q 36(1):157–178, 2012). Findings of the study revealed that perceived risk had a negative relation with customer satisfaction where as the website functionality and drivers were positively associated with customer satisfaction. The research will help online retailers to recognize the important success factors that instill confidence among the consumers in developing economies. The study will also help online retailers to focus in the right direction to eliminate threats and convert non shoppers to online shoppers. The study throws light on a new aspect to research by validating the role of cash-on-delivery (COD) mode of payment as a construct and ease of ordering as new dimension to UTAUT2.

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Authors and Affiliations

  1. School of Humanities and Social Sciences (SHSS), Thapar University, P.O. Box 32, Patiala, 147004, India

    Urvashi Tandon, Ravi Kiran & Ash N. Sah

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  1. Urvashi Tandon
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Correspondence to Urvashi Tandon.

Appendices

Appendix 1: Measurement items and their sources

Security and privacy (Wolfinbarger and Gilly 2003)

 The websites have adequate security measures

SP1

 I feel safe while using my credit card/debit card on the websites

SP2

 I trust that the websites will not give my personal details to other websites without my permission

SP3

 Online retailers offer user memberships for surfing on the password protected web pages within the website

SP4

Website design (Wolfinbarger and Gilly 2003)

 The layout of online retailing websites facilitates shopping

WD1

 The attractive colour scheme of online retailing websites facilitates shopping

WD2

 The graphics displayed in websites provide ease for ordering product

WD3

Navigation (Lee and Kozar 2012)

 The web pages which I am looking for can be reached through multiple tabs/windows

NAV1

 The search function at the websites is helpful

NAV2

 The websites allow easy return to the previous display pages

NAV3

 Pictures of products are downloaded quickly

NAV4

Customization (Lee and Kozar 2012 ; Cho and Lau 2014 )

 I can customize my product before ordering

CUSTOM1

 Customization function of online retailers is helpful

CUSTOM2

 Online retailing websites correspond to customer’s needs

CUSTOM3

Performance expectancy (Venkatesh et al. 2003, 2012)

 Online shopping provide wide assortment of products useful in my daily life

PE1

 Online shopping helps me to find product information within the shortest time frame

PE2

 While shopping on internet I can find some products that are not easily available in physical stores

PE3

 Online shopping enables me to accomplish shopping more quickly than traditional stores

PE4

 Shopping online takes less time from search of products to transaction

PE5

Effort expectancy (Venkatesh et al. 2003, 2012)

 It was easy for me to learn internet shopping

 

 The language used by online retailers is easy to understand

EE1

 Internet shopping websites are easy to use

EE2

 Information provided by online retailers help me to purchase product

EE3

Ease of ordering (Tandon et al. 2016a)

 It is easy to track orders placed online

EASEORD1

 It is easy to modify orders placed online

EASEORD2

 It is easy to cancel orders placed online

EASEORD3

 It is easy to replace orders placed online

EASEORD4

Facilitating conditions (Venkatesh et al. 2003, 2012)

 I have resources necessary to use online shopping

FCA1

 I have knowledge necessary to use online shopping

FCA2

 Online shopping is compatible with other technologies I use

FCA3

 I can get help from others when I have difficulties using online shopping

FCA4

Hedonic motivation (Venkatesh et al. 2012)

 Shopping online is an exciting experience for me

HM1

 Shopping online is fun for me

HM2

 I feel shopping online is enjoyable

HM3

 Shopping online is very entertaining

HM4

Price value (Venkatesh et al. 2012)

 Online products are reasonably priced

 

 Online shopping provides me good value for money

PVA1

 Online discounts and promotions offered are often attractive which provide me value for money

PVA2

Habit (dropped) (Venkatesh et al. 2012)

PVA3

 The use of online shopping has become a habit for me

HT1

 I am addicted to shopping online

HT2

 Online shopping has become natural to me

HT3

Social influence (Venkatesh et al. 2012)

 People who are important to me think that I should ad0pt online shopping

SI1

 People who influence my behavior think that I should adopt online shopping

SI2

 People whose opinions that I value prefer that I use online shopping

SI3

COD mode of payment (New scale items)

 I think COD is a reliable mode to payment

COD1

 I prefer to buy through cash on delivery (COD) mode of payment

COD2

 I plan to pay through COD mode of payment

COD3

 COD mode of payment facilitates easy return of defected products

COD4

 COD give me confidence for future repurchase of products

COD5

Financial risk (Masoud 2013, Almousa 2011)

 While online shopping the debit/credit card information may be stolen by others

FR1

 I might get overcharged if I shop online

FR2

 I can’t trust the online company

FR3

Product performance risk (Forsythe et al. 2006)

 Fear of faulty products

PR1

 I am not assured about the size of the product

PR2

 I can’t judge the performance of product without touching

PR3

 Inability to try products before purchase makes me suspicious of its performance

PR4

Time risk (Zhang et al. 2012)

 Buying a product online can involve a waste of time

TR1

 Slow internet speed wastes my time (New scale item)

TR2

 Tiresome browsing through internet leads to wastage in time

TR3

 Inapt query handling leads to wastage of time

TR4

Social risk (Zhang et al. 2012)

 Product purchased may result in disapproval by family

SR1

 Online shopping may affect the image of people around me

SR2

 Online products may not be recognized by relatives or friends

SR3

Online shopping may make others reduce my evaluation

SR4

Security risk (Kolsaker and Payne 2002)

 Online shopping websites are not secure

SECR1

 Posting my personal details online inhibits online shopping

SECR2

 Online shopping websites donot have adequate security measures

SECR3

Privacy risk (Zhang et al. 2012)

 Online shopping e-mail address may be abused by others

PRIV1

 My phone number may be abused by others

PRIV2

 My personal information may be disclosed to others

PRIV3

 My bank card may be stolen by others

PRIV4

  1. Items in italics are deleted items

Appendix 2: Hofstede’s cultural values

Hofstede’s cultural values

Definition

India

USA

Power distance

The extent to which less powerful members of a group or society expect that powers are unequally distributed)

77

40

Uncertainty avoidance

The extent to which the members of group or society feel threatened by unknown situations

40

46

Individualism versus collectivism

The extent to which individuals are integrated into groups

48

91

Masculinity versus femininity

The extent to which gender roles are assigned in a culture

52

62

Long-term versus short-term orientation

A society’s preference to be more forward looking or future oriented

61

26

Indulgence versus restraint

Society that allows relatively free gratification of basic and natural human desires related to enjoying life and having fun indicated indulgence

26

68

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Tandon, U., Kiran, R. & Sah, A.N. The influence of website functionality, drivers and perceived risk on customer satisfaction in online shopping: an emerging economy case. Inf Syst E-Bus Manage 16, 57–91 (2018). https://doi.org/10.1007/s10257-017-0341-3

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