Research Project: E-commerce Impact on Customer Relationship - eBay

This research project investigates the impact of e-commerce on customer relationships, focusing on eBay as a case study. The project begins with a research proposal outlining the introduction, background of the organization, research aim and objectives, and research questions. A comprehensive literature review explores the meaning and role of e-commerce, its various types (B2B, B2G, B2C, C2C), and its importance for both businesses and individuals. The project then outlines the research methodology, including data collection and analysis. The collected data will be organized and analyzed to draw conclusions about the influence of e-commerce on customer satisfaction and relationship management within the eBay context. The project aims to assess the role of e-commerce in the retail industry, discover its importance for firms, and evaluate associated challenges, ultimately providing insights into how e-commerce impacts customer interactions and business outcomes. The final section presents a presentation and references.

Research Project

TABLE OF CONTENTS
TASK 1............................................................................................................................................1
A Research Proposal....................................................................................................................1
B Literature Review.....................................................................................................................2
C Research Methodology............................................................................................................7
TASK 2..........................................................................................................................................11
A Plan and organize the necessary outcomes............................................................................11
B Record and collect the relevant data......................................................................................14
TASK 3..........................................................................................................................................17
A Organize the collected data....................................................................................................17
B Conclusion.............................................................................................................................24
TASK 4 PRESENTATION...........................................................................................................25
REFERENCES..............................................................................................................................26

Title
To evaluate the impact of e-commerce on customer relationship – Case study of E-bay
TASK 1
A Research Proposal
Introduction
Constant advancements in Information and Communication field have facilitated the
emergence of phenomenon named E-commerce. Different firms around the world are making the
use of this tool within their businesses. Transaction of goods and services between companies
and consumers is being done with more flexibility with the help of such tool. Products are being
marketed through internet and it is creating many business opportunities worldwide. Radically, it
has become the most preferred mode of performing trading. At present, great transformation can
be seen in the traditionally accepted business practices. Rivalry between the firms has become
very high and dramatic. Due to presence of e-commerce, more and more corporations are
entering into the market. They are driving into this direction because it is helping them in
reaching to a wide section of customers. This is not possible through traditional retailing
methods. It is evident that change is the need of time and every business house needs to run
parallel with the prevailing trends in the market. Every new innovation has an impact on the
business. Similarly, this research has been undertaken to find out the impact of e-commerce on
the business activities of company. It will reflect its importance and role in managing customers.
Current issues and challenges associated with it are also examined.
Background of the organization
eBay is an American multinational corporation giving consumer to consumer and
business to consumer sales services through internet. The company is headquartered in San Joe
within California. It is having operations in more than 30 countries. Millions of collectibles,
décor, computers, furnishings, equipment, appliances, décor, vehicles and other miscellaneous
items are listed, bought and sold on the daily basis on eBay. Mission of the organization is to
provide a global online marketplace where every individual can trade anything in a practical
manner. Their aim is to provide the consumers new ways of shopping every time. They drive
technological advancements which delivers the next generation of commerce. This research has
been undertaken to find out whether customers of eBay are satisfied with its online services or
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not. The aim is to find out what are the challenges faced by the customers while availing the
online services of company.
Research Aim & Objectives
Aim
The major aim of the research is to evaluate the impact of e-commerce on customer
relationship within the context of eBay.
Objectives
 To assess the role of e-commerce in the retail industry.
 To discover the importance of e-commerce for the firms.
 To evaluate the challenges associated with the e-commerce.
Research Questions
 How phenomenon like e-commerce is benefitting company like eBay?
 Whether customers using services of eBay are satisfied or not?
 What improvements can be done in the e-commerce services of eBay?
B Literature Review
Meaning of E-commerce
E-commerce is relatively new and emerging concept which has changed whole scenario
of delivering the products to the respective buyers. This method is playing very important role in
the today's competitive scenario where each firm are striving for maintaining and enhancing the
satisfaction level of their respective buyers. In accordance with the given concept, as per the
view point of Agrawal and et.al (2012) e-commerce is the activity of buying and selling the
goods and services via electronic means such as internet. In addition to this, according to the
view point of Almousa (2013) e-commerce is the activity in which all the commercial transaction
are conducted by using different applications that are totally relied upon internet. The application
consist of instant messaging, email, EDI and shopping cart etc. These all services has significant
role in the process of delivering goods and services of the firm to the respective buyers. Bernard
and Simone (2011) have depicted that e-commerce is the mean which provides opportunity to the
organization with regard to deliver goods directly to the buyers without the presence of any
intermediaries in between.
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Role of E-commerce
The concept such as e-commerce plays very significant role within enterprise. In this
context, D Harrison McKnight (2001) has said that e-commerce helps in improving relationship
with the customers. In this regard, it has been seen that delivering fast and effective services is
being regarded as one of the aspect which firm can use in order to build an effective relationship
with the buyers. Generally, it has been seen that buyers prefers to get services from that firm
which tend to fulfil their convenience related need (Davies, 2010). The given need is being
effectively fulfilled by the e-commerce. This mean provide opportunity to the buyers with
respect to make the order of the specific well from their home only. Thus, through this way e-
commerce helps in maintaining the satisfaction level of its buyers in an effectual way.
In addition to this, according to the view point of Hawk (2004) e-commerce enable firms
with regard to sale and present their services among large number of buyers. Here, with the mean
such as internet firm has an opportunity to get entry in that specific market which is otherwise
outside of its range. Thus, the respective platform plays very critical role in terms of improving
the sales and profits of the enterprise within a very short period of time. Furthermore, Jones,
Davies and Muir (2003) have stated that e-commerce helps in giving thorough information about
the products which firms offers to the buyers. The buyer tend to build relationship with such
enterprise only which gives detailed information about the product. Thus, the given thing is
fulfilled by the mean such as e-commerce. Overall, it can be said that the concept such as e-
commerce have very effective role for the corporations.
Types of e-commerce
There are different forms of e-commerce identified which tend to rely upon the varied
objectives. The detailed explanation of the same is depicted in below:
B2B (Business to business) e-commerce
Kannabiran and Narayan (2005) have depicted that B2B is the type of e-commerce
wherein the internet is used in order to build the relationship between the business. Here, it has
been reviewed from the many researches that around 80% of the firm uses the respective mean.
The B2B market possess two different type of components such as e-market and e-frastructure.
In accordance with the given context, there are different aspects identified which are being
regarded as the part of e-frastructure. It consists of auction solution software, content
management software, logistic and application provider etc. However, e-market is the type of
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website where buyers and sellers interact with each other and conduct the transaction.
B2G (Business to government) e-commerce
Kariyawasam (2008) has depicted that it is form of e-commerce in which commercial
transaction is being carried out between companies and the public sector. Here, the mean such as
internet is used with an aim to carry out different government operation.
B2C (Business to consumer) e-commerce
As per the view point of Khare and Rakesh (2011) it is the most common form of
transaction in which transaction is being carried out between both buyers and sellers of goods
and services. This form of selling product has gained importance in the today's competitive
scenario. Thus, it is due to the presence of given aspect many firm such as e-bay are using this
form with an aim to deliver the produced goods and services to the respective buyers. In addition
to this, according to the view point of Kshetri (2007) it is the way in which commercial
transaction are held between both buyers and sellers. This method is used for the purpose to sale
the different type of goods and services of the corporation.
C2C (Consumer to consumer) e-commerce
According to the view point of Meetei and Singh (2011) online auction is the most
common form of C2C e-commerce. Here, in this form one of the customer who does not have
the need of specific good tend to sale the respective good in front of other buyers. Here, with the
help of online auction information about the respective good will be send by the enterprise
among many buyers.
Overall, it can be said that these all assessed form of e-commerce have different purpose.
But, they all use one single mean such as internet in order to fulfil their framed purpose in an
effectual manner.
Importance of E-commerce for business and individual
The concept such as e-commerce have importance for both individual and business. In
accordance with the given context Tucker and Lafferty (2004) have depicted that the activity
such as e-commerce helps in saving the time of buyers. Customers have to spend more of their
time of they tend to adopt the traditional way of shopping the goods. In addition to this, with an
aim to make the payment of their purchased goods, customers will also have to wait for longer
period of time. These all issues as being faced by the customers will be resolved through the e-
commerce. Thus, it is right to said that the activity such as e-commerce helps in maintaining the
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satisfaction level of buyers in an effectual way.
In addition to this, as per the view point of Vaithianathan (2010) the concept such as e-
commerce allows customers with respect to make the between two products which needs to be
purchased by them. For example, a buyer has to purchase some FMCG (Fast moving consumer
good) for the personal use. In this context, it has searched many websites which offers or delivers
such type of product. Thus, by comparing the product which is being offered by different website
customer can make an effective decision and thereby can get the product which tend to fulfill its
needs and wants. Moreover, according to the view point of Fritz (2013) e-commerce provides
benefit to the buyers with respect to purchase the product from the firm at the lower prices. By
adopting the given option firm can save varied type of cost which are related with the
construction of building and maintenance of building etc. The cost which firm has saved will be
used by it with an aim to deliver the goods to the respective buyers at the cost effective prices.
Thus, it gives opportunities to the buyers to get the product from the firm at that lower prices.
Besides this, AlGhamdi and et.al. (2012) have stated that e-commerce is not only
beneficial for the buyers but it has advantage for the companies too which operates such type of
services. In this respect, Lee, (2014) has depicted that the method help in saving different cost of
enterprise. Here, the firm need not carry out the recruitment of sales staff, when its sale the
produced good through online platform. Thus, through this way corporation tend to save its
labour cost. In addition to this, the payment with respect to the ordered goods are also made
through electronic means. Hence, it helps manager of firm in the activity in maintaining the
record of ordered good in papers. Furthermore, with the help of e-commerce enterprise removes
its cost of maintaining the physical storefront. However, by using the given mean firm will have
to invest majority of its cost in the process of maintaining the product in store or warehouse. The
cost which company has saved can be utilized by it in order to sale its product to the buyers at
the lower buyers. Through this way, firm has an opportunity to attract many buyers and thus it
raises its chances with regard to attain the high profits and sales in an effectual way.
Moreover, according to the view point of Wiele, Hesselink and Iwaarden, (2005) e-
commerce opens the way to get enter into the international market in front of the corporation.
There are varied means available which firm can use in order to get entry into the global market.
The means consists of franchising, joint venture, strategic alliance and direct exporting etc. In all
given mean firm will have to make major investment. But, with the use of e-commerce
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corporation can get entry into new market without making much investment. Thus, it is being
regarded as good platform for establishing the global presence. Agrawal and et.al. (2012) have
depicted that e-commerce helps in establishing relationship of firm directly with the buyers. This
is correctly said by author. This is because, in this regard it has been seen that with the use of
given means customer can give their feedback regarding the product directly to the corporation.
Hence, it gives opportunity to enterprise with respect to perform several changes within firm as
per the given feedback. Overall, it can be depicted that the respective mean have very important
role within enterprise.
Challenges associated with the E-commerce
E-commerce is an effectual mean, but there are number of challenges associated with the
given mean. The detailed explanation of the same is being depicted in below: Lack of awareness about the given mean among large number of buyers: Khare and
Rakesh (2011) have assessed that majority of its buyers are totally unaware about the use
of respective mean. Thus, it becomes major challenge in front of the firm like ebay that it
will get information about the respective mean of purchasing the product to the respective
customers. However, if information about the same is not sent to the buyers. Then in the
given situation firm can lost its chance of earning the high profits and sales in an effectual
way. In addition to this, AlGhamdi and et.al. (2012) have explored that many buyers do
not have their own bank account. As a result of it the firm such as ebay has taken the step
to start the cash on deliver system which possess number of complications and challenges
(Quayle, 2002). Bad internet services: The work of e-commerce totally depends upon the internet
services. In this regard, as per the view point of Hawk (2004) poor quality of internet
services tend to create many complications in the electronic transaction. Due to this, it
become very difficult for the enterprise with regard to deliver their high quality of
services to the customers in an effectual manner. Due to this, significant impact will be
seen upon the sales and profits of enterprise. Customer inappropriate information: The whole supply chain operation of e-commerce
is impacted if buyers do not provide correct information about the postal address. Due to
this small mistake, the whole supply chain operation of firm will get impacted. Hence, it
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is being consider as another most major challenge for the corporation (Meetei and Singh,
2011).
 The tax structure of country: The varied and differentiated tax structure of company also
create several problems in front of the corporation. For example, e-commerce industry of
developing country achieve lesser growth as its tax structure varies from sector to sector
(Davies, 2010).
C Research Methodology
It is important to develop and discuss relevant research methodology for a proposed
research. Various tools and techniques are to be described along with proper justification. The
methodology plays an important role in the collection of primary and secondary data (Bell,
2005). The application is important for the purpose of achieving quality results.
Research Philosophy
Research philosophy is considered as a thought process of the researcher. There are
mainly four types of philosophies. These includes pragmatism, positivism, realism and
interpretivism. For this research, positivism philosophy has been applied because the topic deals
with a reality which is prevailing within the society (Research Philosophies – Importance and
Relevance. 2009). It is appropriate because under this research, primary data is collected through
questionnaire approach. It requires analysis in a quantitative manner. The study is based on three
main principles which are observation, cause and effect relationship.
Research Approach
Research approach discloses the framework under which the whole subject is
investigated. It is applied to maintain effectiveness throughout the study. Inductive and deductive
are mainly two approaches (Cooper and Schindler, 2011). The inductive approach leads to
generation of new theory. On the other side, deductive approach is more related with application
from general observations to more specific observations.
For this research, inductive method has been used because it is emphasizing on causality.
Primary data is also collected by using the approach of questionnaire. The major objective here is
to evaluate the impact of one variable on another, i.e. impact of e-commerce on customer
relationship (Kimmel, 2009).
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Research Design
This is the blue print of study. It is essential to apply because the design makes sure that
data is being collected and interpreted in an effective manner. It is essential for improving the
quality of investigation (Kumar, 2005). By applying the research design, more conceptual
knowledge can be derived in a conceptual manner. Researcher has the option of using different
types of research designs. These includes casual, experimental, case study, exploratory and
prescriptive. Matching the resources effectively with the research questions.
For this research, a combination of descriptive and exploratory design has been used in
order to evaluate the impact of e-commerce on customer relationship. Use of descriptive design
assists in gaining some more information about the issue (McBurney and White, 2009). It is also
appropriate because the investigation is in context with a particular organization that is eBay.
Exploratory design has been used because the subject of e-commerce is explored by many
researchers and here, the researcher is exploring the subject to add his contribution.
Research Type
Selection of the type is dependent on the nature of investigation. It has to be used with
concentration and focus. It is of two types. These are qualitative and quantitative. Qualitative
type is suitable when there is a need to gain in-depth understanding of underlying reasons and
motivations (Saunders and et. al., 2009). It gives an insight view about the problem. Quantitative
research is adopted, when the main purpose of study is the quantification of data. It facilitates
generalizations of results from a sample to an entire population of interest.
For this research, both the types have been applied. Both types of information such as
subjective as well as objective have been collected for the study. The collected data is been
analysed through statistical technique (Zikmund and et.al., 2013).
Data Collection
It is the most important activity for the study as there is a need to collect ethical and
relevant data. There are two types of data primary and secondary. Primary data is very fresh and
raw in nature and is collected for the first time (Panneerselvam, 2004). It is filtered so that it can
be put into use. It can be collected from different techniques such as survey, questionnaire, focus
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groups, direct observation etc. While on the other side secondary data is the information
available from published sources like books, journals, newspapers, internet etc.
For this study, information has been collected from both the sources. Primary data has
been collected by using the technique of questionnaire. It is a semi-structured questionnaire
consisting of open ended and close ended questions (Patton, 2005). Secondary data has been
collected from relevant books, journals, newspapers, magazines, internet etc.
Sampling and sample size
Sampling is concerned with selection of representative samples from which the
information is to be collected. There are two types of sampling which are probability and non-
probability. For this research a combination of convenience and purposive sampling has been
applied. These two are appropriate because the investigation requires collection of primary data
from customers of eBay only (Bryman and Bell, 2007). The selected sample size for the
respondents is 30. It is expected that this size will be able to provide the needed results.
Data Analysis
There is a need to develop an effective data analysis plan for evaluating the results. For
this research both qualitative as well as quantitative approach has been selected. The responses
gathered from the research participants during the questionnaire process have been evaluated by
using the technique of SPSS (Cooper and Schindler, 2011). It is a statistical technique. The data
has been analysed in form of graphs, figures, tables and chart. It gives a quantitative outlook to
the study. The findings can be presented with more justification and reasoning.
Ethical Considerations
Following ethical framework has been followed by the researcher while the course of the study:
 All data has been collected from valid and authentic sources. There is no
misrepresentation of facts and figures
 Identity of all the selected respondents has not been disclosed without their prior
approval
 Complete freedom has been given to the participants during the questionnaire process so
that they give their opinions freely (Saunders and et. al., 2009)
 An unbiased attitude has been displayed by the researcher during the course of data
collection
Research Limitation
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Following drawbacks are associated with the research:
Lack of time – It is the most common barrier associated with every investigation. A lot of time is
consumed in collecting the primary data as it is a very complex process. There is a need of
adopting good time management strategies while this time (Kimmel, 2009).
Lack of quality – Taking of any unreliable information directly from any source may hamper the
quality of the study. Proper citation and referencing is required throughout the report.
Respondents – The sample respondents may refuse to fill the questionnaire and may leave the
process in the middle. Hence the goals of the research are to be communicated in proper manner
to them (Kumar, 2005).
Gantt chart
ACTIVITY/WEEK 1 2 3 4 5 6 7 8 9 10 11 12
 Identifying the problem
 Systematic analysis to choose
the topic for the study
 Choosing the research
 Conducting literature review
for secondary data collection
 Setting the objectives
 Primary data collection from
customers
 Identifying research approach
 Designing research
methodology
 Preparation of structured
questionnaire
 Make Fill up the questionnaire
from customers
 Organizing collected data in
excel sheets
 Applying suitable technique to
analyse data
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