Factors Affecting Online Customer Satisfaction: The Sri Lankan Perspective

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. Therefore, the purpose of this study was to identify the determinants of customer satisfaction in an online context. In this study, the authors proposed a conceptual model of customer satisfaction in the online context by identifying the key factors proposed by previous studies, and hypotheses were developed accordingly. The hypotheses were tested through multiple regression analysis, based on a sample of 150 online customers. The study found that customer service, website design and security perception were significantly associated with online customer satisfaction.

Thus, past researchers have looked at a variety of factors which would increase customer satisfaction. Accordingly, a research study conducted in Greek online shopping context has identified product information quality, user interface quality, service information quality, purchasing process convenience, security perception and product attractiveness as the significant determinants of customer satisfaction (Maditinos & Theodoridis, 2010). Another study done by Trong, Khanh, and Gim (2014) has found website design, merchandise attributes, transaction capability, security/privacy, payment, delivery, customer service as the significant predictors of online customer satisfaction. Additionally, a recent study conducted by Tandon, Kiran, & Sah (2017) has revealed website functionality and perceived usefulness as factors leading to customer satisfaction in an online shopping environment.
However, analysis of previous research indicated that the findings are inconsistent. For instance, Chen, Ling, Ying, and Meng (2012) found that website design is the most powerful independent variable which influences customer satisfaction in online shopping environment. In contrary to this study, Ranjbarian, Fathi, and Rezaei (2012) have identified that there is no significant association between website design and customer satisfaction. Further, Maditinos and Theodoridis (2010) identified that product information quality is highly related to the overall customer satisfaction. As oppose to this result, Evanschitzky, Iyer, Hesse, and Ahlert (2004) found that product information quality is not a significant determinant of online customer satisfaction.
The above discussion indicated that the findings related to customer satisfaction are not consistent and also, there are contradictory findings. Thus, it is apparent that there is no agreement among researchers about the significant factors influencing customer satisfaction. Therefore, the purpose of this study is to fill this research gap by identifying the significant factors affecting customer satisfaction in online context.

Customer Satisfaction
Customer satisfaction is identified as one of the most examined constructs in marketing literature. This plays a major role in competitive environment because of its ability to retain the existing customers and to introduce new customers. (Tandon et al., 2017). Kotler and Keller (2012, p.128) identified satisfaction as "a person's feeling of pleasure or disappointment which occurs as a result of the comparison between product or service performance and expectation". Another view point was provided by Oliver (2015, p.8), where he defined customer satisfaction as the "consumer's fulfillment response. It is a judgment related to a product/service feature, or the product or service has actually provided (or is providing) a pleasurable level of consumption-related fulfillment". Giese and Cote (2000) stated that customer satisfaction encompasses three basic components: a response (emotional or cognitive) pertaining to a particular focus (expectations, product, consumption experience, etc.) determined at a particular time (after consumption, after choice, based on accumulated experience, etc.).
However, in this research, customer satisfaction construct is mainly identified as the satisfaction of the customer in relation to his/her previous purchasing experience in online shopping. According to Flavián, Guinalíu, and Gurrea (2006) user satisfaction depends on the fulfillment of customer expectations. Therefore, it is important to undertake detailed analysis on the requirements of web site user.

Factors Affecting Online Customer Satisfaction
In order to achieve the objective of this study, first, the researchers had to determine the specific determinants of online customer satisfaction. This was not an easy task since different researchers had examined the area of online customer satisfaction differently, and of course using different constructs. Therefore, the researchers had to adopt an acceptable method for identifying the determinants of online customer satisfaction which can be used to develop a justifiable conceptual model. Consequently, the researchers went through thirty-one previous research articles which had examined online customer satisfaction. This extensive literature review enabled the researchers to uncover forty-five different determinants of online customer satisfaction, as identified in below  Szymanski and Hise (2000); Cho and Park (2001); Evanschitzky et al., (2004); Kim(2005) ; Kim and Stoel (2004); H. Lin (2007); Anand (2007); Liu, He, Gao, and Xie, (2008); Kim, Jin, and Swinney (2009)   . (2012) and Theordoridis d Belanger (2005 Tsai (2007) Tsai (2007) Yasin (2010) (2015)

Product Information Quality and Online Customer Satisfaction
Product information quality refers to whether an online website provides sufficient, up to date, understandable and consistent information about its products (Maditinos & Theordoridis, 2010). Park and Kim (2003) have identified that product information quality becomes crucial for customers when searching and purchasing products. The product information provided through an online store reduces the cost of information search and information processing (Park & Kim, 2003). In general, information quality includes the characteristics of accuracy, timeliness, usefulness and completeness (Guo et al., 2012) Many authors have empirically tested the relationship between product information quality and online customer satisfaction (Szymanski & Hise, 2000;Cho & Park, 2001;Kim, 2005;Lin, 2007;Liu et al., 2008;Maditinos & Theordoridis, 2010;Eid, 2011;C. Lin et al., 2011Gelard & Negahdari, 2011Polites et al., 2012;Guo et al., 2012;Dharmesti & Nugroho, 2012;Evanschitzky et al., 2014;Khan et al., 2015). Liu et al. (2008) and Maditinos and Theordoridis (2010) have identified product information quality as a strong predictor of online customer satisfaction. According to Liu et al. (2008), detailed product information need to be provided since the products are intangible in the online context. Therefore, customers highly rely on the information presented in the website during the information search and alternative evaluation stage. The quality information presented by the website assists customers in comparing products, making informed purchase decisions and enhancing transaction security (Liu & Arnett, 2000;Park & Kim, 2003;Lin, 2007). Khan et al. (2015) have also identified a positive association between product information quality and online customer satisfaction. Also, they have stated that the quality information shared by the website has a strong impact on customers since it helps consumers to overcome their fears, and then develop more favourable opinion towards the online store. Another study presented by Eid, 2011, identified that when the website provides accurate and reliable information, it will help to enhance customers' satisfaction and trust towards online website. Consequently, the following hypothesis is proposed.
H 1 : There is a positive effect of product information quality on online customer satisfaction

Website Design and Online Customer Satisfaction
Web site design describes the appeal that user interface design presents to customers (Kim & Lee, 2002). According to Szymanski and Hise (2000) the ambience associated with the website and how it functions play a significant role in determining whether customers are satisfied with the website or not. The existing literature have further argued that user friendly design is an important factor which ensures success of the website (Chen et al., 2012). Shopping is perceived to be more pleasurable and satisfying by the customers when the website is fast, unclutter and easy to navigate (Pastrick, 1997;Szymanski & Hise, 2000). According to Dharmesti and Nugroho (2012) good website design requires neat screen appearance, clear information path and quick information loading which will make online shopping more enjoyable to the customers and may affect customer satisfaction. It was further identified that, various website design factors such as navigation and graphic design have an effect on service quality which in turn affects online customer satisfaction (Kim, 2009).
The effect of website design on customer satisfaction has been studied extensively. Kim (2005) (as cited in Maditinos & Theordoridis, 2010) found that the website design is a significant determinant of online customer satisfaction. Liu et al., (2008) have also identified a positive relationship between website design and online satisfaction and their findings are consistent with the findings of Szymanski and Hise (2000); Chang and Chen (2009) and Eid (2011). The study of Liu et al. (2008) further indicates that putting much effort on website design is important since the customers' first impression on website is derived through page design, layout and colour match. Also a well-designed website helps to attract the customers and increase the possibility of purchase by improving the satisfaction level of customers. Al-Kasabeh et al. (2011), Gelard and Negahdari (2011) and Evanschitzky et al. (2014) have also empirically tested this effect and identified the website design as a strong predictor of customer satisfaction. Consequently, the following hypothesis is proposed.
H 2 : There is a positive effect of website design on online customer satisfaction

Purchasing Process Convenience and Online Customer Satisfaction
This construct highlights the easiness and convenience associated when purchasing a product via an online shopping site. It is vital for an online store to offer a simplified, easy, and quick purchasing process for the customer (Maditinos & Theordoridis, 2010). Their study has revealed that when the process is more convenient for the customers, higher the satisfaction level they have towards the online store.
H 3 : There is a positive effect of purchasing process convenience on online customer satisfaction

Security Perception and Online Customer Satisfaction
Security refers to safety, personal information management and payment security (Maditinos & Theordoridis, 2010). It is identified as one of the important factors considered by online customers. Therefore, the online retailers need to give special attention to create a safe online shopping environment (Liu et al, 2008). Security credential provided by the online store, privacy policy and trust are several parameters of online security (Maditinos & Theordoridis, 2010). According to Park and Kim (2003), before revealing their personal data and purchasing from an online store customers expect detailed information on how their personal and transaction data are secured.
The lack of perceived security is identified as one of the major reasons why the potential customers resist to shop online. Mainly, due to the risk involved in transmitting sensitive information such as credit card information, customers are reluctant to engage with online shopping activities. Customers who provide this information believe that their security can be compromised due to online activities. Therefore, much concern is given on the security of their transactions (Chang & Chen, 2009). When the e-retailers incorporate more security features to their website it results in high level of customer satisfaction (Maditinos & Theordoridis, 2010).
Several studies have attempted to investigate the effect of security perception on customer satisfaction and majority of researchers have established that there is a significant and positive association exist between security perception and online customer satisfaction (Szymanski & Hise,2000;Kim,2005;Schaupp & Belanger ,2005;H. Lin ,2007;Anand,2007;Liu et al.,2008;Kim et.al.,2009;Chang & Chen 2009 ;Maditinos & Theordoridis,2010;Gelard & Negahdari 2011;Guo et al.,2012;Dharmesti & Nugroho,2012 ;Ranjbarian,2012 ;Trong et al., 2014;Evanschitzky et al.,2014). A study done in the Sri Lankan context has also found that there is a signifincant and positive effect of security on customer satisfaction (Thilakarathne & Abeysekara, 2015). Consequently, the following hypothesis is proposed.  (2012) have tested customer service as one of the determinants of online customer satisfaction and revealed that customer service has a significant and positive influence on online customer satisfaction. In Sri Lanka also, customer service was tested by Thilakarathne and Abeysekara (2015) using the variable "customer care" and Silva and Abeysekara (2012) using the variable "bank staff assistance". Their findings also indicated that a positive relationship exists between customer service and customer satisfaction.
According to Liu et al. (2008) customer service play a significant role in online customer satisfaction. Prompt responses need to be provided in order to address customer concerns and inquiries. The customer representatives should be able to assist the customer in solving problems as soon as they occur. This is important because the ignorance of customer inquiries may cause customer dissatisfaction. The customers seem to be highly satisfied when quality of customer service is high (Dharmesti & Nugroho, 2012). Since the customer may need additional information or services from the organization, it is important to provide a method of contacting the customers to make complaints or ask information relevant to products or online store. Thilakarathne and Abeysekara (2016) have stated that customer service is a hygiene factor which affect customer satisfaction. Therefore, the absence of quality customer service can have adverse impact on customer satisfaction. Consequently, the following hypothesis is proposed.

Sample
The sample procedure used was convenient sampling since it is the best way to collect information quickly and efficiently (Momtaz et al., 2011). The study sample comprised of 230 MBA students of University of Sri Jayewardenepura. This sample was selected for the study due to several reasons. Firstly, students are among the most active online buyers. And they were considered to be suitable sample for online shopping research due to their online and actual purchasing experiences, technological advances and innovativeness (Yoo & Donthu, 2001). Secondly, online consumers are recognized as younger and highly educated than conventional consumers, making students more related to the online consumer population (McKnight, Choudhury, & Kacmar, 2002). Finally, they have the opportunity to use the Internet for communication and commercial transactions (Walczuch & Lundgren, 2004)

Data Collection
Data collection of the study was done by personally distributing the questionnaires to the MBA students who were present in the classes. Consequently, 178 responses could be collected in two attempts spanning two weeks. Evaluation of the questionnaires revealed that there were 21 respondents who lacked any online purchasing experience. Due to the nature of the research, those responses had to be eliminated. Further, there were 7 incomplete responses and they too were eliminated from further analysis. Consequently, the researchers were left with a total of 150 questionnaires for analysis of this study.

Instrument Development
The questionnaire consisted of two sections. The first section covered demographic information of respondents such as gender, age, income, online shopping experience and frequency of online shopping activities. The second section included the measurements to measure the six constructs identified in the conceptual model. In order to measure the constructs, pretested items were adopted from previous literature. The questionnaire was developed using multiple item method and each item was measured based on a five-point Likert scale ranging from "strongly disagree" to "strongly agree" (refer appendix for questionnaire). Table 2 illustrates the adaptation of measurements from different researchers.  (2003)

Respondents' Profile
As presented in Table 3, analysis of respondents' demographic characteristics indicated a higher percentage of female respondents (65.1%) compared to male respondents (34.9%). Also, majority of the respondents (62%) were from the age group of 18 -30 years, indicating the consistence of younger respondents in the sample. In terms of highest education qualifications, 95 respondents (63.3%) had undergraduate degrees whereas 42 respondents (28%) had postgraduate degrees. Besides that, a large number of respondents (42%) earn more the Rs. 100,000 as the monthly income, which is fairly above the average salary of employees in Sri Lanka. Seventy-seven respondents (51.3%) have shopped online less than 5 times during the last year, indicating that their frequency of online shopping is somewhat lower.

Data Analysis and Findings
The initial tests were performed in order to test multivariate assumptions. Normality was tested using Skewness and Kurtosis tests. Results indicated that all the values lie between -2 and +2 satisfying normal distribution of data set (George & Mallery, 2016). Linearity was tested using scatter plot which depicted that linear relationship exist between each of independent variable and dependent variable. Homoscedasticity was also found to be satisfied based on the residual plot (Hair, Black, Babin, & Anderson, 2014). Finally, multicollinearity was tested using correlation matrix which generated correlation coefficients below 0.9. This indicated that there is no considerable level of multicollinearity among variables in the study (Saunders, Lewis, & Thornhill, 2009). Since all the multivariate assumptions were satisfied analysis, the researchers could proceed with inferential statistics.

Validity and Reliability
Validity focuses on identifying, extent to which the research concept is correctly represented by the measures (Hair et al., 2014). This was tested using content validity and construct validity. Content validity is "assessment of the correspondence of the variables to be included in a summated scale and its conceptual definition" (Hair et al., 2014, pp.123). Constructs used for this study were developed based on established literature (Table 2). Also, the indicators of the independent and dependent variables were operationalized based on existing literature. Thus, this process ensured a higher level of content validity.
Construct validity was measured by utilizing convergent validity and discriminant validity. In order to suggest adequate convergent validity, average variance extracted (AVE) should be equal or greater than 0.5 (Hair et al., 2014). As per Table 4, AVE of all constructs lies above 0.5 indicating convergent validity of them. In order to determine discriminant validity, square root of AVE of each construct was compared to the squared correlations of other constructs. From Table 5, it is evident that square root of AVE value (bold values shown along the diagonal) of each construct is greater than the squared correlations of this construct to any other construct. Hence, the discriminant validity is established (Hair et al., 2014).
Reliability is "an assessment of the degree of consistency between multiple measurements of a variable" (Hair et al., 2014, pp123). The Cronbach's alpha was used to measure reliability of the measures. As per Hair et al. (2014) the value of Cronbach's alpha coefficient of 0.7 was taken as the threshold level in order to ensure the stability and consistency of the instruments. According to Table 4, the Cronbach's alpha value of all six constructs were above 0.7. Hence, the reliability of the construct is established.

Hypothesis Testing
Multiple regression analysis was performed to examine the effect of five constructs on online customer satisfaction and thereby test the five hypotheses. This method is considered as an appropriate method when the research problem includes a single dependent variable which is related with two or more independent variables (Hair et al., 2014). The results of this analysis are presented in Table 6 and Table 7.   Table 6 indicates the adjusted R squared (Coefficient of Determination) of the research model. The analysis reported adjusted R squared value of 0. 605 which describes 60.5% of the variation of the dependent variable (Online customer satisfaction) is explained by the five independent variables (product information quality, website design, purchasing process convenience, security perception and customer service) used in this study.
As shown in Table 7, regression coefficients for Website design, Security perception and Customer service are positive and significant (p<0.05). This indicates that each of these three variables has a positive and significant effect on online customer satisfaction. Therefore, hypotheses H2, H4 and H5 are accepted. However, it is apparent that Product information quality and Purchasing process convenience have no significant effect on online customer satisfaction. Consequently, hypotheses H1 and H3 are rejected.
Besides that, multiple regression results (Table 7) show that customer service has the highest impact (β = 0.473) on online customer satisfaction, followed by website design (β = 0.232) and security perception (β = 0.168). This illustrates that customer service is the most important construct influencing the online customer satisfaction amongst the constructs considered in this study. Finally, both Product information quality and Purchasing process convenience have less practical significance to the assessment of online customer satisfaction.

Discussion
In this study authors examined five literature based online customer satisfaction determinants in order to identify their effect on customer satisfaction in online shopping context. Findings of the study are consistent with previous findings to a greater extent.
Results of the study revealed that online customer satisfaction is positively and significantly influenced by customer service. This finding is consistent with the previous findings of Ranjbarian et al. (2012); Liu et al. (2008); Zeng et al. (2009);and Trong et al. (2014). According to the findings, there is a significant relationship between website design and online customer satisfaction. Similar results have been reported by Szymanski and Hise (2000); Cho and Park (2001); Part and Kim (2003); Liu et al (2010); Maditinos and Theordoridis (2010); Ting et al. (2016). Therefore, it is apparent that the findings of this study is consistent with previous findings.
Results of the study indicate that there is a positive and significant relationship between security perception and online customer satisfaction. These findings are consistent with the previous findings of Szymanski & Hise (2000); Park and Kim (2003); Eid (2011); Ranjbarian et al. (2012);and Evanschitzky et al. (2014). In addition, results concluded that other two variables used in this study (product information quality and purchasing process convenience) do not have significant effect on online customer satisfaction. Thus, results revealed that there is no significant relationship between product information quality and customer satisfaction. This finding is consistent with the previous findings of Evanschitzky et al., (2004). They have also revealed that there is no significant association between product information and e-satisfaction. Further, authors found that the relationship between purchasing process convenience and online customer satisfaction is not significant. However, it is apparent that this finding is not inconsistent with the previous studies done by Liu et al. (2008) and Trong et al. (2014).
This study has both theoretical and practical implications. Consequently, the study has implications for researchers, academics and online retailers.

Theoretical Implications
This study contributes to the theory by presenting a theoretical framework which supports to determine antecedents of online customer satisfaction and the effect of each variable on customer satisfaction. The significant relationships found in the study strengthen the existing knowledge related to online customer satisfaction. The findings may be more relevant to a developing country perspective where there is lesser number of online transactions performed by customers compared to developed countries. The findings help us to further our understanding in relation to the under-researched area of online customer satisfaction, especially in the Sri Lankan context. The study also contributed by validating five constructs (Website design, Security perspective, Customer service, Product information quality and Purchasing process convenience) used in this study, which were derived from previous conceptual frameworks studied in the literature. Finally, this study can induce future research because of the growing importance of online transactions, especially in developing nations.

Practical Implications
Also, the study will provide insights for managers, as well as for online retailers in several aspects. Due to high competition existing in the online context, businesses need to pay greater attention on customer satisfaction to attract and retain customers. The study helps the online retailer to identify the specific factors leading to the satisfaction of online customers. Further, they can identify the specific indicators of each factor, enabling them to focus on those areas to achieve greater customer satisfaction. This may even increase the preference of customers for online transactions, which is vital from online retailers' perspective. Thus, as found in this study, online retailers need to focus on Website design, Security perspective, and Customer service to increase customer satisfaction, helping them to retain those customers with them in the long run.
According to this study, customer service is the most critical factor that should be addressed by online retailers. Firstly, readiness and willingness of customer support staff of the retailer to address customer issues and provide prompt responses will be important to satisfy the customers. Lack of adequate customer support and delays in responses will result in dissatisfaction among customers. Secondly, the availability of multiple channels to contact can result in increased satisfaction since different customers usually prefer different contact options. Finally, availability of tracking of delivery has also been identified as an important area to be addressed by the online retailers. Thus, the online retailers need to pay proper attention to those areas and address them appropriately to increase customer satisfaction, which in turn will lead to increased sales.
The study suggests that online retailer need to pay a greater attention for website design. Firstly, there is a necessity to focus on the convenience of the usage of the website. When users find that a website is not user friendly and not convenient to use, they tend to leave it quickly. Secondly, it is necessary to build websites that are attractive and have good layout. Consequently, the colour combinations used, how the content is presented and arranged in the website matter a lot for the online retailer to attract customers and induce them for transactions. Finally, the website should provide a simple and easy method of completing transactions.
Security perspective is another important area that should be addressed by online retailers to increase customer satisfaction. The study provides evidence to the fact that customers are concerned about protecting their personal information. Therefore, the online store should have adequate security features to protect privacy of customers. The retailer may use detailed privacy statements to convince the customer about security and protection of privacy. Further, there is a necessity to build customer trust towards the website. Availability of contact information, reviews of satisfied customers, certification from trusted third parties etc. all can help to develop trust among customers, leading to increased satisfaction and better sales for the retailer.

Conclusion
The objective of this study was to identify the determinants of online customer satisfaction. In order to achieve this objective, first, a comprehensive literature review was performed. A total of sixty research papers were reviewed during this process. Research papers were carefully selected to ensure the validity and reliability of them. The researchers focused on the research papers which were published in well recognized scientific journals. Amongst the research papers studied, thirty one research papers were related to the determinants of online customer satisfaction. Thus, the thirty one research papers were used in the process of identifying the determinants used in different studies.
This process helped the researchers to explore forty five determinants with different frequencies of usage. After evaluating the forty five determinants, most commonly cited five determinants, with the highest frequencies were selected to develop the conceptual model. Those five determinants included: Website design, Security perception, Customer service, Product Information Quality, and Purchasing Process Convenience. The conceptual model was developed depicting the relationship between each of the determinant identified and online customer satisfaction. Based on the conceptual model, the researchers suggested five hypotheses for this study.
Data were analyzed using Statistical package for social sciences (SPSS) and multiple regression analysis was used to test the hypotheses developed. Analysis revealed that Customer service, Website design, and Security perspective have significant effects on online customer satisfaction. Consequently, three hypotheses were accepted and the balance two hypotheses were rejected. Amongst the factors, Customer service was identified as the most important factor followed by website design and Security perspective.

Limitations and Future Research Directions
Even though the researchers identified forty-five factors affecting customer satisfaction, the conceptual model was developed using only five factors. Therefore, there are other factors affecting customer satisfaction, which were not examined in this study. Future research can focus on incorporating more factors, leading to better prediction of online customer satisfaction.
The researchers focused only on the direct relationships between identified factors and online customer satisfaction. However, there can be mediating and moderating effects on these relationships. Therefore, future research can focus on such mediating and moderating effects.

Have you ever had online shopping?
Yes No

6.
Frequency of online shopping experience during the last year Never 5-20 times Less than 5 times More than 20 times If the answer to above question number 5 is "Yes", please move to Section II. If the answer to above question number 5 is "No", please do not attempt Section II.
Section II ─ (Online shopping related opinion) Please evaluate your opinion regarding each of the following statement in the scale from "Strongly Disagree" to "Strongly Agree" by placing a tick (√) in the most appropriate cage, based on your last online shopping experience.
The scale to be used in providing the responses is as follows. 1 -Strongly disagree 2 -Disagree 3 -Neutral 4 -Agree 5 -Strongly agree Statement 1 2 3 4 5

Product Information Quality
Product information provided by the website is up-to-date Product information provided by the website is sufficient Product information provided by the website is easy to understand Product information provided by the website is consistent Product information provided by the website is relevant

Website design
The website is convenient to search The website is convenient to order The website is easy to navigate The layout of the website is good The website uses good color combinations It is quick and easy to complete a transaction at this website

Purchasing Process
The website has arranged products in a convenient manner It is easy to manage the shopping basket of this website The website provides sufficient purchase directions

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