Customer Satisfaction in Online Shopping and Retail Industry

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Customer Satisfaction in Online Shopping -
Retail Industry
Dissertation submitted in part fulfilment of the requirements for the degree of
MBA Finance
At Dublin Business School
Joswin Binoj Mascarenhas
10363062
Supervisor: Enda Kilgallen
MBA Finance
2018

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Declaration
I, Joswin Binoj Mascarenhas, declare that this dissertation in my original work and I have
referenced all the sources that I have used in my study as a part of Dublin Business school
academic honesty policy.
Signed: Joswin Binoj Mascarenhas
Date: 06th January 2019

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Acknowledgement
I would like to thank my supervisor Prof. Enda Kilgallen who have constantly been helping me in
completing my dissertation within the specified timeline. I would also like to thank Dublin
Business school for their support. I am thankful to my parents who supported me throughout the
process of research. I am grateful to all the professors of Dublin Business School for teaching and
supporting me through the process of Master of Business Administration.

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Abstract
Online shopping is the biggest part customer attraction as well as customer satisfaction. In this
technological world, most of the companies use online shopping for making satisfy the customer
and for attracting more customers as well. This research paper is based on the topic of the impact
of online shopping on improvising the customer satisfaction in the retail company. The focus of
this research paper has been to identify the impact of online shopping on the retail business. Apart
from this aim, the research paper also has some other aims which such are as to determine the
customers’ satisfaction towards the products as well as services of the retail companies. The
research study also aimed at identifying the impact of online shopping on the improvement of
customers’’ satisfaction in the retail companies.
The researcher has used positivism philosophy, descriptive design, deductive research approach
and primary data collection method for conducting the research. 30 customers and 2 employees
working in retail industry had been selected by the researcher for collecting data related to the
research topic. From the findings of the study, it could be evident that online shopping helps the
organizations to enhance their business opportunity as well as it will help the organizations to
enable more customer satisfaction in the organizational context. It has also been evident from the
study that online shopping has numerous effects on business of the organization and as per the
analysis, it can be referred that online shopping helps the organization to grow their business which
will enable more financial benefit in the organizational context.

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Table of content:
Table of Figures..........................................................................................................................7
Chapter 1: Introduction ...............................................................................................................8
1.1 Background of the study: ......................................................................................................9
1.2 Significance of the research:................................................................................................11
1.3 Rational of the study: ..........................................................................................................11
1.3 Research Aim:.....................................................................................................................12
1.4 Research objectives:............................................................................................................12
1.5 Research question: ..............................................................................................................13
1.6 Research scope:...................................................................................................................13
1.7 Summary: ...........................................................................................................................14
1.8 Research structure:..............................................................................................................15
Chapter 2: Literature review: ....................................................................................................16
2.1 Introduction: .......................................................................................................................16
2.2 Concept of customer satisfaction:........................................................................................16
2.3 Factors affecting the satisfaction of customer in Retail Industry: .........................................18
2.4 Strategies followed by companies in the retail industry to satisfy customers:.......................21
2.6 Concept of online shopping:................................................................................................28
2.7Preference of customer for online shopping:.........................................................................30
2.8Strategies followed by the companies under the retail industry for promoting the product online:
.................................................................................................................................................32
2.9 Influence of online shopping on retail industry:...................................................................35
2.10 Impact of online promotion of retail products on influencing the purchasing decision of
customer: ..................................................................................................................................37
2.11 Impact of online shopping on customer satisfaction in the retail industry:..........................38
2.12 Literature gap:...................................................................................................................41
2.13 Conclusion: .......................................................................................................................42
Chapter 3: Research Methodology ............................................................................................44
3.1 Research Methodology........................................................................................................44

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3.2 Research Philosophy – Positivism .......................................................................................45
3.3 Research Approach .............................................................................................................46
3.4 Research Design..................................................................................................................47
3.5 Research Strategy – Quantitative Survey.............................................................................47
3.6 Research Methods ...............................................................................................................48
3.7 Sampling Technique- Simple Random Probability and Non Probability Sampling ..............49
3.8 Sampling Size .....................................................................................................................49
3.9 Data Analysis-Quantitative and Qualitative.........................................................................50
3.10 Ethical Considerations.......................................................................................................51
3.11 Research Limitations.........................................................................................................52
3.12 Time Horizon....................................................................................................................52
3.13 Summary...........................................................................................................................53
Chapter 4: Data Analysis ..........................................................................................................55
4.1 Introduction ........................................................................................................................55
4.2.1 Analysis of Quantitative Data...........................................................................................56
4.2.2 Qualitative Data Analysis.................................................................................................78
Chapter 5: Discussion ...............................................................................................................80
5.1 Discussion...........................................................................................................................80
5.2 linking with literature review...............................................................................................85
Chapter 6: Conclusion and recommendation .............................................................................88
6.1 Conclusion:.........................................................................................................................88
6.2 Linking with objectives:......................................................................................................91
6.3 Recommendations:..............................................................................................................92
6.4 Future Scope of study:.........................................................................................................94
Chapter 7: Self-Assessment.......................................................................................................95
References: ...............................................................................................................................97
Appendix: ............................................................................................................................... 101

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Table of Figures
Figure 1..........................................................16
Figure 2..........................................................21
Figure 3..........................................................27
Figure 4..........................................................28
Figure 5..........................................................46
Figure 6..........................................................58
Figure 7..........................................................59
Figure 8..........................................................60
Figure 9..........................................................61
Figure 10.........................................................63
Figure 11.........................................................64
Figure 12.........................................................65
Figure 13.........................................................67
Figure 14.........................................................68
Figure 15.........................................................70
Figure 16.........................................................71
Figure 17.........................................................73
Figure 18.........................................................74
Figure 19.........................................................75
Figure 20.........................................................76

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Chapter 1: Introduction
It is very important to attract more customers to the industry. If any industry attracts more
customers in the industry, then the brand value of the company will be increased. It has been seen
that digital technology imparts a huge impact over the customer attraction and customer
satisfaction as well. Online shopping is the biggest part customer attraction as well as customer
satisfaction. In this technological world, most of the companies use online shopping for making
satisfy the customer and for attracting more customers as well. Online shopping imparts a huge
impact on customer satisfaction. Online shopping is the main part of electronic commerce and
many customers are guided by this electronic commerce regarding the way of buying products
from the companies (Souca, 2014). The consumers can make a direct connection to the retailer
through the process of online shopping and by visiting the company’s website and the other
alternative apps. The way of shopping has been revolutionized by the help of electronic commerce.
Nowadays, online shopping is the very easy process of buying any products from the retailers for
regular purpose as maximum people have some common tools of online shopping such as smart
phones, computers, laptops, tablets and many others (Souca, 2014). The way of online shopping
provides several facilities to the customers and for this reason, customers become satisfied while
buying products from the retailers through online. The facilities are such as the customer can have
several variations about any product, it is the very time-saving process and the main thing is that
customer can compare the price of the products.
In the retail industry online shopping is known as ‘e-tailing’ or ‘electronic-retailing’. When the
goods are sold to the end users for using purpose nit for reselling purpose and the purchaser
consumes the goods then this process is known as E-tailing. It is very important to require strong
branding for making successful E-tailing. The website of the company needs to engage in creative