Exploring Online Shopping's Impact on Customer Satisfaction

The present research aims to investigate how online shopping affects customer satisfaction. An inductive approach is adopted to acquire valid outcomes by exploring the particular subject matter. The study employs descriptive research design to provide depth knowledge about the population covered in the study. Random sampling method is used to select 50 customers of Marks and Spencer for a survey, ensuring each respondent has equal chances of being selected. This study will contribute to the existing literature on online shopping and customer satisfaction.

RESEARCH PROJECT

Table of content
RESEARCH PROJECT...................................................................................................................1
Background to the Study .................................................................................................................3
Research Question...........................................................................................................................3
Aim and Objectives .........................................................................................................................3
Hypothesis .......................................................................................................................................3
Literature Review.............................................................................................................................4
Methodology....................................................................................................................................8
SAMPLING...................................................................................................................................10
ACTION PLAN ............................................................................................................................10
DATA COLLECTION..................................................................................................................11
Primary research on online shopping and customer satisfaction...............................................12
RECOMMENDATIONS...............................................................................................................16
A. Recommendation..................................................................................................................17
B. Reflection..............................................................................................................................17
C. Conclusion.............................................................................................................................18
REFERENCES..............................................................................................................................19
APPENDIX....................................................................................................................................23

Background to the Study
There is a strong relationship between online shopping and customer satisfaction. The
involvement in online shopping can also help M&S to gain a higher rate of productivity and
popularity. There are different means of performing online shopping, so some well known and
basic ones can be involved by M&S in order to satisfy the customers. It is because this is obvious
that many times, the customer wants to purchase the materials but are not able to reach to the
store such as being lazy, or if stores are quite far etc. Therefore, for such times, ways of ordering
online such as by means of website or applications can act as a very feasible option for the
customers to place orders. Therefore, it can be said that involvement of different ways of online
shopping in M&S can actually help them to increase customers. Thus, it will further prove
beneficial enough for the company in achieving all their targets and goals by providing higher
rate of satisfaction to the customers.
Research Question
Q1. How does online shopping effect customer satisfaction?
Aim and Objectives
Aim
To examine the way online shopping affects customer satisfaction
Objectives
 To review literature on online shopping and customer satisfaction
 To conduct primary research on online shopping and customer satisfaction
 To recommend how Marks and Spencer can use online shopping to increase customer
satisfaction
Hypothesis
It is considered as indoor shopping, which avoid chances of wasting time and cost to visit
from one shop to another. Online marketing has become a new path for examining various
traditional principles, and theories of marketing with various perspectives. For accomplishing
success, it companies need to carry out effective advertisement. Along with this companies can
have built websites while keeping customer services in mind.

Literature Review
This section has discoursed upon the utility of advertisements which then increases customer
satisfaction. According to the view of Tontini, da Silva and Marcon, (2015) the advertisements
are in the shape of slam rectangular graphic image which is linked with the target advertisement
that lead to appear at the top of websites and provide a short contain related or graphical message
which can be customised for target audience. Zhuang and Babin (2015) state that for
accomplishing success it companies need to carry out effective advertisement. Along with this
companies can have built websites while keeping customer services in mind.
Product quality has been discussed in this part where it will help to increase customer
satisfaction. Mainly customers get satisfied at the time when the provided services meet the
expectation of customers. Pappas, Pateli and Chrissikopoulos, (2014) state that customers get
dissatisfied when they feel that services fall below their expectation. Quality and customers
satisfaction have provided depth knowledge in order to determine the levels of satisfaction for
product experience. In e-commerce market customer experience and customer services are
considered as critical for sales. Product quality play important role in enhancing customers
satisfaction level.
Customer satisfaction play important role while making repeated purchase decision.
According to the view of Bilgihan, (2016), it is important for companies to focus on satisfying
customers through delivering them quality products and services. Liao, Lin, and Chea, (2017)
define customer satisfaction is when products and services sold to them meet their requirements
and expectation. Customers who are highly satisfied with companies’ products and services they
become loyal toward it and make a repeated purchase which leads to increase the profitability of
the company.
Bilgihan and Zhang (2016) state that to keep long-run presence on online websites it is important
to make an investment in enhancing customers satisfaction. Companies can consider approaches
for enhancing loyalty in an online context. The first approach is to focus on concrete factors. For
instance, firms who are selling a product online can focus on creating a convenient and well-
designed online store along with offering secure transaction are considered as keystones for
enhancing the satisfaction of e-customers. However, it can be stated that all online customers do
not become loyal. San-Martin, Prodanova and Jimenez, (2015) state that through personalising
attempts and enhancing the social value of online experience is very essential for increasing

customer satisfaction. However, Wu, Chen, and Cheng, (2014) with a distinct consideration have
argued that, in few studies it is identified that personalising the websites and customer
communities are highly influential but do not increase customer satisfaction particularly for
knowledgeable internet customers.
Besides this, companies who can create trust and enhance the perceived value of online
shopping can easily increase their satisfied customers into loyal ones. Ramanathan, Subramanian
and Parrott, (2017). Elbeltagi and Agag (2016). state that online market provides so many
opportunities to create loyalty as compared to offline offerings.
Issues in online marketing
Orel and Kara, (2014) state that online marketing has become a new path for examining
various traditional principles, and theories of marketing with various perspectives. There are
various studies that has provided online marketing issues. The internet is designed to be
environment accommodating a free flow of communications which might affect customer
satisfaction. In online selling products and services ethical issues can raise when personal
information of customers is not kept confidentially which might affect customer satisfaction.
Privacy is considered as one of the most common mentioned problems in online marketing
which might be a threat to customer satisfaction. Most of the time power of technology can be
intentionally abused by marketers with the purpose of making improvement in market
knowledge and response mechanisms which might affect customer satisfaction.
Customers have to provide up some privacy for exchange the benefits of the web. It leads
to create tendency for discussing the way consumers can easily protected and companies could
reduce privacy and security issues of individuals. It is important for companies to focus on
wining trust of customers and increase their trust through providing secure payment options
which help in winning their trust thereby increasing customer satisfaction. There are few reasons
due to which customers are dissatisfied from the online shopping.
First, there are hackers who steal all the personal information provided by the customers. Most
people are concerned related to internet security at the time of providing their credit card details.
Second, Orel and Kara, (2014) state that at the time when a company designs its websites in an
inappropriate manner and which lead to creating difficulty for customers while searching
products then they may avoid making a purchase from such websites.

Third, at the time when customers regular received emails, newsletter without their permission
then it leads to making them irritate and dissatisfy.
Fourth, at the time when customer’s issues are not resolved on time then it leads to making them
dissatisfy from company products and services.
According to Tontini, da Silva and Marcon, (2015) online shopping for customers means
saving cost and time, purchasing best products and easily accessible thereby increasing customer
satisfaction. On the other side, customer satisfaction is dependent on the purchase of the product
which can be met their expectation. While making online shopping factors which create barrier
can make customers dissatisfied from the particular company products. It is essential for a firm
to ensure that while providing an online facility where people can easily make purchase.
According to Zhuang and Babin, (2015) privacy (technology factor), convenience (shopping
factor), merchandising (product factor) which is followed by trust, quality, and delivery of
products. Security is considered as one of the important factors at the time when customer has
made decision of selecting the online shopping option. Tontini, da Silva and Marcon, (2015)
identified price as a factor that can attract customers and retain them. Zhuang and Babin, (2015)
state that customers can make purchase of product and services they received it in lower price as
compared to other companies. While online shopping customers are more curious about their
product as because it looks attractive on internet. However, at the time of receiving they may be
dissatisfied because of quality or slight change in colour of products. Apart from this, if
customers query is not resolved in time then it lead to make them dissatisfy. Having unanswered
questions while making online purchase might decrease customer satisfaction. It is essential for
customer services to answer their questions on time which help in making their purchase easier,
thereby increasing customer satisfaction.
Different factors which can influence customers online purchase decisions are product
understanding, price, quality, product variety etc which increase customers satisfaction,
 Customer services: Assurance and reliability, vendor responsiveness
 Shopping experience: Attribute of time, effort, lifestyle compatibility, product availability
Customer’s risk: for instance, social, economical, personal and privacy risk. Customers
mostly focus on shopping from other sites, till the received product on time as per their
requirements.

It is a wander or a cost when customers contributing their vitality making purchases. It
requires a lot of venture for a customer to make purchases from shop to shop, hence electronic
shopping saves a lot of their significant time and effort. The time spent accept a basic part in
buyer perceptions especially the time used for shopping. Zhuang and Babin, (2015) have raised
that holding up influenced a negative impact on customer to profit satisfaction. Clients' chance
will be wasted an incredible arrangement if need to keep sitting tight for such a long time and
verifiably will establish the buyers have awful connections to the merchant or association. Time
and essentialness saving are in a comparable thought (Tontini, da Silva and Marcon, 2015). Time
and effort accept an imperative part in light of the fact that these two components may impact
buyers' solace in the midst of shopping. Electronic shopping positively can help purchasers with
sparing time and effort in purchasing process by bringing a huge amount of settlement.
Convenience factor implies that it is definitely not hard to scrutinize or look through the
information through online is less requesting than the standard retail shopping. Through on the
web, purchasers can without a lot of an extend request thing record yet if the buyer look overall
for a comparable thing or thing in a customary store physically it is difficult to visit physically
and dreary as well. Convenience has reliably been a prime factor for customers to shop on the
web. Bilgihan and Zhang, (2016) said that online clients pass on various points of interest similar
to convenience, for instance, less repetitive, flexibility, less physical effort et cetera. Pappas,
Pateli and Chrissikopoulos, (2014). claims that solace as a champion among the most basic
favored viewpoint for participating in online shopping. As showed by the Robinson, Bilgihan,
(2016) the genuine motivation for online purchasing is influence in regards to shop at whatever
point and having packs of things passed on at passage step
Online shopping and customer satisfaction
Customer satisfaction is identified as an essential and main part for the growth and
development of company within predetermined time period. In order to know customer
satisfaction or gratification in online shopping, M&S use five stage of buying process model
Online shopping is identify as an effective activity of purchasing services or products over the
internet. (Online shopping, 2018). It is one of the main and significant model which will help a
clothing industry in order to maximise their sales and achieving better outcomes in given time
period.

The existing literature was reviewed in order to discover main reasons that would effects
on customers in positive and negative manner towards shopping online. From the findings, it was
observed that selected respondents use internet in order to buy products via online because they
think it is convenience and comfortable to them (Bilgihan, Kandampully and Zhang, 2016).
Beside this, convinces is based on time saving, opening time, information availability, ease of
use, less shopping stress, websites navigation, shopping fun and less expensive. Along with,
respondents' mind-sets, personal privacy and trust, online payment security, returns policies and
unclear warranties and poor personal customer service are the main barriers of online shopping.
Moreover, the output of hypotheses implanted that even via online shopping is more convenient
to entire customers. In this, online payment system, privacy and security anxieties have more
effect on online shopping in M&S.
Methodology
Introduction
Research methodology is considered as one of the essential parts in research as because it
helps in completing research with the use of various tools and techniques. It can be stated that it
is a solution for the specific issues through which the research can be measured in a systematic
manner (Kerr, Eckert and Wandwabwa, 2016). There are several methods under the research
methodology section which can be employed by investigator for carrying out research. Along
with this, through the help of this assessment can be done for the sake of respondents towards the
questions in the research. The present research is based on examining the way online shopping
affects customer satisfaction, therefore various methods are selected which are appropriate for
the current research. Here below are provided different tools and techniques with justification.
Research Philosophy
Research philosophy is one of the important components in research methodology and assist
in understanding the study as a principle with the help of which data and information could be
collected in relation to analyse the study (Bailly and Comino, 2017). One of the main researches
to conduct study is to accomplished to desired results. Hence it is considered as one of the
effective forms to carry out the study and gain proper results. Epistemology is known as brand of
research philosophy which includes the nature and scope of knowledge. It assists in gaining
enquiry about various kinds of information on the selected topic to be accomplished.
Epistemology state that knowledge is considered as true within every framework and it is not

varied from situation to situation. Research philosophy is classified into two types that are
interpretivism and positivism. For the present research interpretivism research philosophy will be
considered by the researcher. It is supportive at the time of choosing qualitative set of data for
examining the study (Mebius, Kennedy and Howick, 2016). Reason to choose this philosophy is
that to focus on gathering important information and acquire meaningful information for
understanding impact of online shopping on customer satisfaction.
Research approach:
The concept of research approach can be stated as the manner through which the investigator
conducts the research ahead. It is a proper plan which improved validity of the investigation to a
greater extent. It is classified into two type inductive and deductive approach (Winit‐Watjana,
2016). The deductive approach leads to start with the statement and research is carried out for the
sake of responding towards the research. On the other side, inductive approach focusses on
investigating from particular condition for developing various general idea and theories in
regards subject matter under research. The present research is based on examining the way
online shopping affects customer satisfaction, therefore inductive approach will be adopted by
the research. Reason for selecting this approach is that it is suitable in attainment of valid
outcomes. Along with this it is appropriate to offer support through acquiring the views for the
help of perceiving the particular subject (Creswell and Poth, 2017).
Research design
Research design is known as systematic process for presenting the findings which is
collected from different sources. It is classified into three types that are descriptive, exploratory
and explanatory (Edson, Henning and Sankaran, 2016). Exploratory research design is
considered as effective as because it helps in discovering the issues which are covered in the
study. While exploratory focus on exploring the issues, which help in providing valid outcome
for reaching the aims and objectives. Through this, the investigator can easily find out causes and
effect relationship. Under this, investigator can easily identify impact of one factor on other one.
For the present study descriptive research design will be considered by the researcher. It is
considered as one of the effective methods which help in describing the population covered in
the study. The rationale for selecting this research design is that it will help in presenting the
results in an effective manner with depth knowledge. It is critically evaluated that other research

design are not selected because the present topic was already covered in various previous studies.
Thus, owing this research design is proven to be effective for obtaining valid outcome (Tight,
2016).
SAMPLING
For researcher it is not easy to carry out the research from large number of populations. For
this purpose, sampling method need to be adopted at the time of applying primary method. For
primary research, it is important for researcher to selected appropriate sample size (Toye,
Williamson and Lamb, 2016). There are two methods for data collection that are random and
non-random sampling. In random sampling method every unit of population is provided equal
chances of being selected. On the other side in non-random sampling method, it is divided into
judgement sampling. Further it leads to make sure that every people in a population has a non-
zero probability to get selected. For the present research random sampling method will be used
by investigator. Here 50 customers of Marks and Spencer will be selected through survey.
Reason behind choosing random sampling method is that it will help in minimising the chances
of bias. Along with this each respondent will be provided equal chance of being selected for the
survey. Therefore, it can be stated that sampling is one of the effective tools which can be
considered by the for selecting the sample population from large number of populations.
ACTION PLAN
Designing a
research
proposal
Developing a
research aims
and objectives
Produce the
literature
review
Focusing on
the research
methodologie

s
Collection of
information
by primary
and
secondary
resource
Analyse and
examine
collected data
Interpretatio
n of the
collected
information
Conclusion
and Feedback
DATA COLLECTION
Data collection method:
Data collection is considered as essential chapter that help in demonstrating important tool
through which the research can gathered various types of information. There are two kinds of
data collection tools that can be used by investigator that are primary and secondary (Toye,
Williamson and Lamb, 2016). To carryout the present research based on examining the way
online shopping affects customer satisfaction, primary as well as secondary method of data
collection will be adopted by the investigator. Primary method assists in collecting information
which is new and gathered at the time of carrying out research. It is considered as specific
information that assist in making research highly reliable (Cooper, Desjardins and Croll, 2016.).
Different method under primary from where information and data can be gathered are interview,
survey, observation, etc. On the other side, secondary method is sued for gathering information
which is incorporated by various authors in their books and journals. It is considered as second-
hand tool for gathering information. Information can be gathered through books, internet,

journals and articles. For the present research primary information will be gathered through
survey. In this, question will be asked from customers of Marks and Spencer. While for
collecting the secondary information, research will be considered different published articles and
books of different authors which are based on the selected topic. Reason for selecting primary
method is that it helps in getting depth knowledge about the opinion of customers on the selected
topic.
Data analysis:
After gathering information from different sources data analysis is considered as important
part in which raw data is converted into meaningful information. It is considered as essential
aspect in the research effective as well as examined that data which is being assess through
sources of data collected through primary and secondary information (Bathelt and Glückler,
2017). It helps in analysing the gathered information in such as way which is critical for getting
right results. There are two tools that can be considered by the researcher that are qualitative and
quantitative.
In quantitative data analysis a researcher is expected to turn raw data into a meaningful data
with the help of critical thinking and effective application. It leads to include calculation of
frequencies of variables and identify difference between variables. Under this method different
statistical tools can be applied by investigator such as Z-test, Chi-square test etc for analysing the
results. On the other side in qualitative data is considered as non-numeric information for
instance, interview, notes, video, audio recording, transcript etc. it is divided into different
categories such as content analysis, discourse analysis etc. Under this method researcher can
focus on thematic perception for carrying out the research. For the present research qualitative
technique will be considered by the investigator (Peter, Werner and Alavi, 2017). Here,
researcher will prepare various themes on the basis of results and interpretation will be done.
Along with this different charts and tables will be prepare for supporting the findings. The reason
behind selecting this method is that it will help in presenting the findings in a systematic manner
and assist in conducting depth analysis.

Primary research on online shopping and customer satisfaction
Primary research is identified as an effective and essential method of collecting
information from the respondents (Bilgihan, 2016). In this, researcher will prepare a
questionnaire and ask different questions to the respondents which are determined as under.

DATA ANALYSIS
Question 1: Description of gender
Analysis : From the above mentioned graph, it can be concluded that 30 out of 50 respondents
are female that use online shopping, 15 are male and remaining are other. All this are use
purchase products or services through online.
Theme 2: Description of age
Analysis: According to the above mentioned chart it can be determined that 20 out of 50 are
belongs the age group of 20-29, 15 are 30-39, 10 are 40-49 and remaining are other. All this
prefer to purchase or buy their products or services through online.
Question 3: Description of occupation
30
15
5
Female
Male
Other
20
15
10
5 20-29
30-39
40-49
Other

Analysis: According to the above mentioned information it can be determined that respondents
are give equal chances to the employment full time, employment part time, self employment.
And remaining 5 are belong to other occupations.
Question 4: Concept of Online Shopping
Analysis: From the above mentioned information, it can be concluded that concpet of
online shopping. In this, 40 out of 50 respondents are agree and rest of the population are not
aware about the concept of online shopping.
Question 5: Benefits of Online shopping for customer's
15
15
15
5 Employment full
time
Employment part
time
Self employment
Other
40
10
Yes
No

Analysis: From the above mentioned graph, it has been concluded that online shopping is
more beneficial for the customers. Beside this, respondents have given equal opinions on the
easy price comparisons and more variety. Both are essential and important for the customers to
purchase more products in easy manner. Online shopping increase customer satisfaction and help
an organisation to maintain trust and loyalty of customer's towards an organisation.
Question 6: Importance of Online shopping
Analysis: From the above mentioned information, it can be concluded that importance of
online shopping is increasing customer satisfaction. In this, 50 out of 35 respondents were agree
with this statement where rest of the population were disagree. As a conclusion it can state that
Easy price comparisons
More Variety
0 5 10 15 20 25
25
25
Frequency
35
15
Agree
Disagree

online shopping is more convenience and comfortable for the customers and also help them to
save their time and select best quality from different variety.
Question 7: Significance of online shopping for M&S
Analysis: As per the above given chart, it can be determined importance of online
shopping to the M&S. Beside this, 50 out of 48 respondents were agree as online shopping
helped Marks and Spencer to maximise their sales and revenues within given time period. On the
other hand, 50 put of 12 respondents were not agree as online shopping help an organisation to
achieve better outcomes within predetermined time duration. They believes that online shopping
consume more time and cost of the company. Thus, online shopping is more significant and
essential for Marks & Spencer to increase their profitability and sales as well as retain long run
position at large scale.
Question 8: Significance of online shopping to increase customer satisfaction
48
12
Yes
No

Analysis: According to the above mentioned information, it can be determined that online
shopping is essential for the organisation to maximise satisfaction level of their customers. In
this respondents are provide equal opportunities to the secured website and easy access to the
online platform.
Question 9: Importance of online shopping
Analysis: As per the above mentioned data, it can be concluded that online shopping is more
essential and important for the customers as well as company also. In this 20 out of 50
respondents are say it is less important, other 20 are favour as it is important for the business to
25 25
Secured website
Easy access to the
online platform
20
20
10
Important Less
Important
Not very important

maximise customer base and remaining are agree as it is not very important because it required
more security.
Question 10: Problem in online shopping
Analysis: According to the graph, it can be determined that there are some issue which is faced
by the customers during online shopping. In this 25 out of 50 are say it is insure, 15 are say it is
secure and remaining are say it need data protection.
Therefore, more than half of the population are agree as online shopping is more convenience for
the customers and help a M&S to maximise customer base and increase their sales.
RECOMMENDATIONS
Marks and Spencer can use online shopping to increase customer satisfaction.
In order to increase customer base and get their satisfaction, a company used to offer its
products on online applications (Hsu, Chang and Chuang, 2015). By using such applications,
users can ascertain information of different commodities, their price rates and put orders for the
same. In context with M&S, if this company provide e-commerce facilities then it will aid to
improve and increase sales performance. Along with this, its managers can identify demand,
preference and purchasing power of national and international customers. Through this process,
they can offer services on different price rates to get attention of users as well as exceed their
satisfaction also. This will also give opportunity to M&S to promote its business and marketing
25
15
10
Insure
Secure
Data protection

products in large market area. Furthermore, it is also examined that today people like to go with
online shopping because this will provide them a range of products on easy price rates. They can
buy commodities as per requirement of any company (Khan, Liang and Shahzad, 2015).
Therefore, online shopping is beneficial for both organisations and people.
A. Recommendation
Data collection is identified as an important method of collective relevant data from the
respondents. In this, primary and secondary method are most effective technique which was
applied by the investigator to collect fresh data information for the selected respondents. Under
primary data, questionnaire will be drawn which will assist in gaining data from the client (Al-
Debei, Akroush and Ashouri, 2015). On the other hand, under secondary source of information,
journals, books, magazines will be followed which is essential for the investigator to assemble
information about the online sale and customer satisfaction which is required to be executed by
the M&S. Primary data source is more effective to choose information for few particular
purpose. Such method gives appropriate and proper data related to research project. This
information is gathered by researcher himself so this supports to perform and assemble more
accurate and relevant data. Secondary data is also effective and essential for gathered info from
large population.
B. Reflection
Customer satisfaction is one of the main part of the business growth and success at large
scale. For this, M&S apply concept of online shopping which will help them to maximise
customer base and achieve long term goals and objectives in given time period. There are
different methods and techniques used by researcher with purpose to collecting accurate and
proper information from the respondents. Beside this, I used different methods such as Research
Philosophy, Research approach, Research design, Data collection tool, Sampling, Data analysis
and many other. With the help of all these method I am able to identify basis needs and wants of
customer’s.
C. Conclusion
Research methodology is identify as an effective process used to gather data and
information for the motive of making business decision. These research project considerations
and thoughts require to identify the essential goals and destinations for enhancing business
outcomes. Compelling tools is analysis in which social breaking fallen ought to be completed.

While doing and following compelling work, components highlights and select to look at the
point of view which is essential for improving this variables. (Hsu, Chang and Chuang, 2015).
Also, for this inquiry, explanation foundation in such manner assist better. This accomplish
outline an essential and accurate quality with the motive that obliging idea could be drawn. There
are different methods of collecting information in an appropriate and proper manner. In this
questionnaire is identify as an effective method of gathering accurate and relevant amount of
data from the respondents. Alternative method of research is interview which is also essential
and useful for the researcher to gather appropriate information or data from the selected
respondents.
Both are useful and valuable tool for collecting data but as per the research topic,
investigator only use primary source of data collection and prepare a questionnaire because it
will support them to collect proper information and draw valid conclusion within pre-determined
time period. This method of research not take more time and cost of company which is a main
reason for selecting questionnaire.

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APPENDIX
QUESTIONNAIRE
Name:
Age:
Gender:
Address:
Email ID:
Phone Number:
Q1) Please indicate your gender
a) Female
b) Male
c) Other
Q2) Please indicate your age?
A) 20-29
B) 30-39
c) 40-49
D) Other
Q3) Please indicates your occupation?
A) Employment full time
B) Employment part time
C) Self employment
D) Other
Q4): Are you aware about the concept of online shopping?
a) Yes
b) No
Q5)) What are the benefits you gained through online shopping?
a) Easy price comparisons
b) More Variety
Q6) Does online shopping increase level of customer's satisfaction?