(LUẬN văn THẠC sĩ) the valuation of customer satisfaction and service quality in online purchasing in cambodia

INTRODUCTION AND BACKGROUND OF THE STUDY

Background of the study

This section offers an overview of the research area, focusing on e-commerce and online retailing as a crucial component of the industry It also provides a brief introduction to the current state of e-commerce, highlighting its significance in today's digital marketplace.

Cambodia is brought here This section also shows the importance of service quality and its relationship with customer satisfaction

E-commerce has many definitions In business today electronic commerce is one of the common topics of discussion (Daniel, Wilson & Myers 2002) Is not very far from what TawfikJelassi& Albrecht Enders in 2005 believed is “Electronic commerce deals with the facilitation of transactions and selling of products and services online, i.e via the Internet or any other telecommunications network".This was an academic definition for e-commerce, what practitioners believe is: "E- commerce is often referred to as e-business

E-commerce systems leverage World Wide Web-based applications to facilitate various business functions such as information provision, communication, buying, selling, distribution, customer service, delivery, and payment processing among producers, suppliers, and customers These systems enable organizations to market products and services online, allowing customers to perform numerous activities independently, including changing addresses, securing loans, and personalizing service agreements Electronic commerce represents an innovative approach to conducting and managing business transactions through computers.

The rapid growth of global electronics retailers has transformed the landscape of e-commerce, where B2B transactions now surpass B2C interactions While many online visitors primarily seek information rather than making purchases, e-CRM tools have become essential for retailers to thrive in a competitive market To distinguish themselves from competitors, value-added services are crucial Although the mid-2000s saw the collapse of numerous e-commerce startups, the success stories of surviving companies offer valuable insights into their strengths Ultimately, customer satisfaction remains the primary goal, as customers are the lifeblood of any organization.

In Cambodia, the Internet is primarily utilized in universities for research, while internet stations in cities offer limited functions like checking email and making long-distance calls As a result, electronic commerce is still in its infancy in the country However, e-commerce is a new frontier for Cambodia, with expectations for steady growth in the near future.

As followers of the retail sector, it is essential to leverage opportunities while mitigating risks By analyzing successful case studies and identifying key success factors, as well as examining trends among online retailers that have failed, we can develop effective policies and strategies Numerous studies on global online retail practices highlight the importance of proper guidance for new retailers launching their websites Additionally, academics focusing on the localization of foreign practices can assist companies in achieving international standards, particularly in Cambodia.

Here is some of the Cambodian online retailers which is starting their first step: www.bongthom.com, www.sombok.com.kh, etc.

Problem Discussion

Despite the growing prevalence of online shopping, many retailers are facing closures, highlighting the importance of understanding customer needs in a competitive marketplace Companies are shifting their focus from central product offerings to prioritizing customer-centric approaches, as customer satisfaction directly influences retention rates This challenge is particularly significant in internet-based services, where low switching costs enable customers to easily change providers Research by Khalifa and Liu (2003) and Van Riel, Lijander & Jurriens (2001) emphasizes the necessity of studying customer satisfaction determinants, given the high costs associated with acquiring new customers and the notable turnover in online services.

Customer satisfaction is crucial for an organization's success in building strong customer relationships, making its measurement essential Total Quality Management (TQM) emphasizes this concept by promoting a quality-focused management approach that involves all members of the organization TQM aims for long-term success through enhanced customer satisfaction while delivering benefits to both the organization’s members and society as a whole.

8402) The achievement of customer satisfaction actually include customer-oriented culture, an organization focused on customer, employee empowerment, ownership of the development team and relations working with customers and suppliers

• Improving the reputation and image of the company;

• Reducing the customer turnover, increasing attention to customer needs in TQM planning;

• Reducing the marketing costs and lower transaction costs;

• Reducing the costs related to product / service failures;

• And, finally, increasing the satisfaction among personnel and the stability of the workforce

Quality market research offers numerous advantages, particularly in assessing customer satisfaction, identifying product development needs, and analyzing customer retention and loyalty Companies invest millions in effective monitoring techniques to enhance customer satisfaction, as quantitative measurements provide valuable insights into how product quality influences consumer behavior.

To ensure the sustainability and profitability of online retailers, prioritizing customer retention is essential A key factor influencing customer loyalty is customer satisfaction, which significantly impacts their likelihood of returning Therefore, it is crucial to emphasize service quality as a critical component of enhancing customer satisfaction.

Research Question

To understand the most important dimensions of service quality that affect customer satisfaction in online purchasing in Cambodia

Based onresearch problem raising above the following research questions hasbeen developed:

1 Which Service Quality factors impact on online purchasing through

2 What are the orders of Service Quality factors that impact on online purchasing through Cambodia perspective?

Demarcation

This study aims to identify the key service quality dimensions that significantly impact customer satisfaction in online purchasing within Cambodia, addressing the diverse challenges faced in this area.

This article will explore the theory of service quality and customer satisfaction, providing readers with a clear understanding of the relevant concepts and the context of the study.

Disposition of the thesis

In this section we will outline how the thesis is structured:

Chapter 1: This chapter will present the background of the study

Chapter 2: This chapter will present theories related to the topic will be presented Chapter 3: This chapter will explain and justify our choices of methodology that will beused in order to conduct our thesis

Chapter 4: This chapter presents the data which is gathered through the questionnaire survey Chapter 5: This chapter will present the conclusions, implications and recommendationsbased on our findings

LITERATURE REVIEW

Customer Satisfaction

Satisfaction research has traditionally defined satisfaction as an evaluative judgment made after a purchase decision (Churchill and Sauprenant, 1992) Researchers commonly view satisfaction as an attitude shaped by the comparison between customers' pre-purchase expectations and their actual perceptions of the product's performance.

Several authors have defined satisfaction in a different way Following table will present some definition of customer satisfaction that will give us clear idea about satisfaction concept

Table 1Table 2.1: Definition of Customer Satisfaction

Table 2.1: Definition of Customer Satisfaction

Customer satisfaction is a collective outcome of perception, evaluation and psychological reactions to the consumption experience with a product/service

“Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations”

2.1.2 Techniques to measure customer satisfaction

Market research techniques to measure customer satisfaction which are:

• The survey methodologies of customer satisfaction;

• Focus groups to research the issue of customer satisfaction

• The standardized package for monitoring customer satisfaction

There are some technical problems with measuring customer satisfaction as the typical focus group, the survey methodologies of customer satisfaction software

• Analysis - concerned with the technical and formal procedures, systems, and so on;

• Behavioral – concerned with the attitudes, beliefs, perceptions, motivation, commitment and actions of those involved in the process;

• Organizational - concerned with the organizational structure, information flows, management styles and corporate culture, i.e the context in which the process is conducted (Ingrid FecIikovaA, 2004)

E-service quality

Customer perceived service quality encompasses two key dimensions: process (functional quality) and outcome (technical quality) The process dimension focuses on "how" the service is delivered, while the outcome dimension emphasizes "what" customers receive from the service For online services, it's essential to include a fourth factor—the user interface—alongside the traditional service components: core service, facilitating services, and supporting services While facilitating services, such as search tools and secure payment options, enhance the core service, supporting services, like book reviews and personal recommendations, provide additional value Moreover, supplementary services, which are independent yet related to the core offering, can also be included, such as specialized financial services or online medicine purchases on a medical portal.

Online trading sites involve a complex process that can be broken down into various sub-processes, including information retrieval, article exchanges, and book ordering Each of the four service components can be evaluated based on both process and outcome, with further analysis possible through sub-dimensions and quality determinants For instance, while customers may appreciate a search engine's responsiveness and user-friendliness, they might be disappointed with the reliability of the search results The success or failure of these interactions significantly impacts overall customer satisfaction with the website Typically, customers do not scrutinize each sub-process during a single visit; instead, they form an impression based on the overall experience unless a particular service element is notably positive or negative This trend is also evident in ongoing customer e-service relationships, where studies of critical incidents reveal that positive experiences are infrequent, and dissatisfaction often stems from process failures, such as lost orders.

The dimensions of e-service quality can be categorized into specific aspects, with the SERVQUAL model by Parasuraman et al (1988) identifying five key evaluation dimensions: tangibility, responsiveness, reliability, assurance, and empathy.

Parasuraman and Grewal (2000) highlight the need for research on how the definitions and significance of the five service quality dimensions may shift when customers engage with technology instead of service personnel Given that these dimensions were originally designed for interpersonal interactions, they should be redefined for e-service applications For instance, "tangibility" can be adapted to focus on the user interface, while "responsiveness" may pertain to the company's promptness in addressing customer requests and confirming orders "Reliability" should encompass timely delivery, accurate information, and error-free links, whereas "assurance" can relate to the security of online transactions and the company's personal information policies Assurance is crucial for establishing trust, a key factor in e-service satisfaction Lastly, "empathy" should reflect the level of personalized communication and the service provider's understanding of individual customer needs.

SERVQUAL Gaps Model

Parasuraman et al (1985; 1988) proposed a fundamental model suggesting that consumer perceptions of quality are shaped by the disparity between actual performance and expected performance When performance surpasses expectations, perceived quality improves, whereas a decline in performance relative to expectations leads to a decrease in perceived quality.

The SERVQUAL model identifies five gaps that hinder the delivery of exceptional service quality, with this study specifically examining Gap 5, which pertains to the discrepancies between consumer expectations and actual service performance This gap serves as a critical foundation for understanding how consumers assess service quality based on various attributes.

Figure 2.1: Service Quality Model , Source: Parasuraman et al (1985, p 44)

Figure 1Figure 2.1: Service Quality Model , Source: Parasuraman et al (1985, p 44)

Translation of Perceptions into Service Quality

Measuring e-Service Quality

Customer satisfaction is essential for the success of both traditional and online businesses In the dynamic e-commerce landscape, companies must prioritize understanding customer needs to maintain growth and market share This focus on satisfaction is crucial for fostering long-term client relationships, as evidenced by the rise of customer satisfaction surveys in financial institutions over the past five years Research into the factors influencing Web-customer satisfaction is increasingly vital for e-commerce, especially given the growing demand for sustained profitability among dotcom and “Net-enhanced” companies.

Customer satisfaction in e-commerce refers to the evaluation of a customer's experience based on their expectations compared to actual performance When perceived performance falls short of expectations, customers experience dissatisfaction Conversely, if the performance exceeds their expectations, customers feel satisfied Understanding this dynamic is crucial for enhancing customer satisfaction in the online shopping environment.

Dimensions and determinants of Service Quality

Parasuraman et al (1985; 1988) explored how customers evaluate service quality and identified ten key determinants for measuring it.

(1) Access (approachability and ease of contact);

(2) Communication (informing and listening to customers);

(3) Competence (possession of required skills and knowledge to perform the service);

(4) Courtesy (demeanor and attitude of contact personnel);

(5) Credibility (trust worthiness and honesty);

(6) Reliability (consistency of performance and dependability);

(7) Responsiveness (timeliness of service and willingness of employees);

(8) Security (freedom from danger, risk or doubt);

(9) Tangibles (physical evidence of service); and

(10) Understanding/knowing the customer (making an effort to understand the customer’s needs)

Credibility plays a crucial role in e-commerce, as customers often rely on external sources like advertising or word of mouth before making online transactions Ensuring security during these transactions is vital; reputable e-commerce sites typically highlight their secure status to reassure customers about the safety of sensitive information, such as credit card details Additionally, understanding customer needs and having access to relevant e-commerce market data are essential factors that contribute to a trustworthy online shopping experience.

A website must be continuously accessible, unlike traditional brick-and-mortar stores To enhance customer understanding, websites utilize smart cookies to recognize returning visitors, prompting new users to register their email addresses This allows businesses to send tailored information and offers based on previous purchases, aiming to fulfill customer needs akin to personal interactions in a business-to-business environment However, online communication often remains one-sided, with limited direct interaction unless a phone number or email is provided Many queries sent via email may go unanswered, leading to a lack of courtesy and competence in the online experience While a user-friendly website encourages navigation, customers cannot assess the skills or demeanor of the staff behind the interface, making customer service options crucial for evaluation, even if automated email responses lack human touch.

In e-commerce, tangible aspects are largely irrelevant to measuring service quality since customers cannot evaluate the physical properties of the service delivery Most e-commerce companies utilize warehouses for order fulfillment or rely on suppliers for direct shipping, making physical interactions distant from the customer's experience However, responsiveness and reliability are critical metrics as they reflect the company's commitments Reliability can be assessed by timely delivery of the correct product, ideally within 48 hours, highlighting the importance of seamless interaction between the user interface and backend processes Responsiveness, on the other hand, is gauged through customer service interactions, such as the effectiveness of telephone or email support when issues arise, including return processes or delays in delivery.

Parasuraman et al (1988) streamlined the initial ten determinants of service quality into five key categories: (1) Tangibles, which refer to the physical aspects of the service; (2) Reliability, indicating the ability to perform the promised service dependably; (3) Responsiveness, highlighting the willingness to help customers and provide prompt service; (4) Assurance, encompassing the knowledge and courtesy of employees; and (5) Empathy, which reflects the caring and individualized attention given to customers.

RESEARCH METHODOLOGY

Research Approach

The knowledge claims, the strategies and the method all contribute to a research approach that tends to be more quantitative, qualitative or mixed

The quantitative approach involves the use of post-positivist claims to develop knowledge through cause-and-effect reasoning, focusing on specific variables and hypotheses This method employs strategies such as experiments and surveys, utilizing predetermined instruments to collect statistical data for analysis.

Qualitative research employs a multi-method approach, emphasizing an interpretive and naturalistic perspective Researchers in this field examine subjects within their natural environments, aiming to understand and interpret phenomena based on the meanings that individuals attribute to them.

Since the purpose is to understand the most important dimensions of service quality from the Cambodian customers’ perspective, quantitative research is found to be more appropriate for this study.

Research Strategy

A research strategy outlines a comprehensive plan for addressing the research questions established by the researcher It includes specific objectives derived from these questions, identifies the sources for data collection, and takes into account potential constraints such as data access, time limitations, geographical factors, financial resources, and ethical considerations (Thornhill et al., 2003).

In social science, five research strategies have been identified based on specific criteria: the formulation of research questions, the necessity for control over behavioral events, and a focus on contemporary events These strategies include experiments, surveys, archival analysis, histories, and case studies.

This study focuses on a "what" question, which effectively translates to a "how many" inquiry Given that the investigator cannot control the actual behavioral events, a survey method is deemed the most suitable approach for gaining insights into the research area Surveys are particularly effective for quantitative studies.

This research aims to classify the dimensions of service quality in online shopping among Cambodian consumers The study focuses on individuals residing and working in Phnom Penh, as this demographic possesses greater e-commerce and online shopping experience compared to those in other regions of Cambodia A judgmental sampling method was employed, adhering to specific criteria during the selection process.

Sample should be more familiar with using Internet;

Sample should have experience of using Online purchasing;

The questionnaire was divided into two parts in order to let responders more time to concentrate on each question.

Research Process

Research process is presented in Figure 3.1 and the time of data collection is presented in Table 3.1

Table 2Table 3.1: Time of Research Process

Table 3.1: Time of Research Process

Step Types of Research Research method Technique Time

1 Draft version Qualitative Analysis Apr, 2011

2 Final version Quantitative Face-Face Interview Jul-Sep, 2011

Figure 2Figure 3.1: Research Process Flowchart

Research Model & Hypotheses

The relationship between service quality and customer satisfaction is illustrated in Figure 1, based on a focused literature review Five dimensions of service quality, derived from the SERVQUAL model, are utilized, with 28 statements assessing performance across these dimensions Each statement evaluates both customer expectations and experiences However, there is criticism regarding the long-term stability of the results obtained from this approach.

Eliminate variables that have low Item-Total Correlation coefficients

Eliminate variables that have low EFA loadings

Check Eigen values and extraction Sums of Squared Loadings

The SERVQUAL scale is a widely utilized tool among academics and practitioners for measuring service quality, despite the existence of alternative models This article examines the fitness of multiple regression equations within the SERVQUAL framework and assesses the overall applicability of its five dimensions.

Therefore, this model has been used as a point of reference in this thesis

Figure 3.2: Relationship between service quality and customer satisfaction based on SERVQUAL

Figure 3Figure 3.2: Relationship between service quality and customer satisfaction based on SERVQUAL

Based on the above research model, we propose the hypothesis of the study as below:

H1: Customer perception about the tangible of this service is increased or decreased, their level of satisfaction with services also increase or decrease with

H2: Customer perception about the reliability of this service is increased or decreased, their level of satisfaction with services also increase or decrease with

H3: Customer perception about the responsiveness of this service is increased or decreased, their level of satisfaction with services also increase or decrease with

H4: Customer perception about the assurance of this service is increased or decreased, their level of satisfaction with services also increase or decrease with

H5: Customer perception about the empathy of this service is increased or decreased,

Customer Satisfaction in Online Purchasing

SERVQUAL dimensions in relation to online Purchasing

In e-business, the tangibles factor, such as having up-to-date equipment and visually appealing physical facilities and materials, plays a crucial role due to the lack of face-to-face interaction between customers and employees The website serves as the sole visual connection to the organization, making it essential for businesses to maintain well-functioning and aesthetically pleasing online platforms Many customers abandon their shopping carts online due to frustrations with technology or poor website design and layout, highlighting the importance of a user-friendly interface.

The visual appeal of websites varies significantly across different age groups; younger users often prefer vibrant graphics and dynamic interfaces, while older individuals typically favor simpler designs without distracting elements like blinking text or excessive animations Although many websites provide customization options, these features primarily focus on content rather than altering visual elements such as graphics, animations, and sound effects.

Reliability in customer service hinges on fulfilling promises and meeting deadlines While many organizations believe that low prices are the primary driver for online shopping, convenience plays a significant role as well Customers are likely to feel dissatisfied if they cannot trust a company to deliver as expected For instance, Price Line faced significant challenges at the end of 2000 due to its emphasis on offering the lowest fares Although customers could purchase inexpensive plane tickets, inconvenient flight times led to dissatisfaction, prompting them to choose competitors who prioritized convenience over discounts.

The responsiveness of a website is significantly influenced by its ability to provide prompt service, particularly in terms of page loading times Research indicates that if a webpage takes longer than 7 seconds to load, user retention dramatically decreases, with 30% leaving after 8 seconds and 70% after 12 seconds Given the advancements in technology since 1999, users likely expect even faster loading times today Consequently, organizations must balance speed with visual appeal, as the inclusion of animations, images, and sounds can increase loading times, potentially deterring users Furthermore, companies strive to maintain a strong corporate identity through recognizable logos and graphics, which can further impact download speeds Ultimately, the challenge lies in determining whether users are willing to sacrifice speed for enhanced visual aesthetics that do not necessarily improve functionality.

In the realm of e-business, the assurance factor is crucial, particularly regarding the "knowledge to answer questions" that customers seek Unlike physical stores where limited inventory is acceptable, online shoppers expect comprehensive product information and a vast selection Trust is another key element; users are often hesitant to share personal details with unfamiliar organizations, with research indicating that over 50% of users worry about credit card misuse, unauthorized sharing of personal data, and tracking cookies Furthermore, two-thirds of active internet users tend to abandon sites that request personal information, and one in five admits to providing false data to access a site Therefore, ensuring a trustworthy environment and providing thorough product information are vital for successful online transactions.

• availability of a formal privacy and confidentiality policy on a Web site;

• secured access to a Web site (that customers are prompted to acknowledge);

• certifications or guarantees of assurance; and

• reports of experiences of other customers

The International Organization for Standardization (ISO) in Geneva emphasizes the importance of the Code of Practice for Information Security Management, which serves as a foundation for effectively managing sensitive data In the realm of e-business, certifications and assurance guarantees are increasingly vital, prompting organizations to pursue objective, consensus-based standards similar to those established for quality management This growing awareness highlights the benefits of certification in enhancing customer trust and confidence in these organizations.

Empathy is often lacking in website interactions due to the absence of personal attention To enhance user experience, many websites now feature customizable designs that allow users to create their own version of the site, fostering a sense of personal connection This tailored approach increases the likelihood of repeat visits from customers Advanced technologies, including artificial intelligence, facilitate face-to-virtual-face interactions through friendly virtual assistants that make users feel more comfortable These assistants can recommend products based on previous purchases and user interactions, enabling businesses to align their offerings with customer preferences and prevent dissatisfaction Ultimately, these innovations aim to infuse warmth into the online experience, addressing a crucial gap in web interactions.

RESEARCH RESULT

Sample and Response rate

The study focuses on Cambodian Internet users residing or working in Phnom Penh, specifically targeting individuals who are frequent Internet users and have experience with electronic commerce.

With face-to-face interviewing, the survey questionnaires collected 248 samples Within 30 days of the procession for checking & data entry, the result is

248 valid samples because the respondents do tick or circle the answer or the respondents not only tick or circle the same answer

Table 4.1 shows about 248 respondents which 127 respondents (approximately 51.2 percentages) were male and 121respondents (approximately 48.8 percentages) were female

Table 3Table 4.1: Number of respondents by gender

Table 4.1: Number of respondents by gender

Frequency Percent Valid Percent Cumulative Percent

The majority of the sample consisted of individuals aged 26 to 35 years According to Table 4.2, 59 participants (approximately 23.8%) were in the 36-45 age group, while 46 participants (around 18.5%) fell within the 18-25 age range Additionally, 21 participants (approximately 8.5%) were over 45 years old.

Table 4Table 4.2: Number of respondents by age

Table 4.2: Number of respondents by age

Service quality measurement

As presented in Chapter 3, the scale factors affect the customer satisfaction on service quality in online purchasing has 5 factors: (1) Tangibles; (2) Reliability; and (3) Responsiveness; (4) Assurance; and (5) Empathy

All the scales are measured by 2 primary tools:

Cronbach's alpha is a key metric for assessing internal consistency, indicating the degree of relatedness among a group of items A correlation coefficient below 0.3 is typically disregarded, while a reliable scale is characterized by a Cronbach's alpha of 0.6 or higher.

In conducting Exploratory Factor Analysis (EFA) using Principal Axis Factoring with the Promax method, any factor loadings below 0.4 are excluded from consideration Additionally, only those scales with a variance of 50% or greater are selected for analysis.

The Cronbach’sApha result of allscalefactors is presented in the following tables:

Table 5Table 4.3: Cronbach’sApha of scale factor: Assurance

Table 4.3:Cronbach’sApha of scale factor: Assurance

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

The assurance factor demonstrates a strong reliability with a Cronbach’s alpha of 879, indicating that the measured components are consistent The correlation coefficients of the variables range from a low of 589 for variable ASS1 to a high of 740 for variable ASS5 Consequently, these variable components will be utilized in the subsequent exploratory factor analysis (EFA).

Table 6Table 4.4: Cronbach’sApha of scale factor: Reliability

Table 4.4:Cronbach’sApha of scale factor: Reliability

The reliability factor, indicated by a Cronbach’s alpha of 832, demonstrates strong internal consistency among the measured variables The correlation coefficients for these components range from a low of 618 for variable REL3 to a high of 701 for variable REL4 Consequently, these variable components will be utilized in the subsequent exploratory factor analysis (EFA).

Table 7Table 4.5: Cronbach’sApha of scale factor: Responsiveness

Table 4.5:Cronbach’sApha of scale factor: Responsiveness

The responsiveness factor demonstrates a Cronbach’s alpha of 829, indicating strong reliability, with correlation coefficients for the measured variables ranging from 621 for variable RES1 to 685 for variable REL3 Consequently, these variable components will be utilized in the subsequent exploratory factor analysis (EFA).

Table 8Table 4.6: Cronbach’sApha of scale factor: Empathy

Table 4.6:Cronbach’sApha of scale factor: Empathy

Responsiveness factor has Cronbach’s alpha is 809 and the correlation

The smallest variable is 539 (variable EMP2) and the highest variable is 696 (variable EMP1) Therefore, the variable component of this measure is used in subsequent analysis of EFA

Table 9Table 4.7: Cronbach’sApha of scale factor: Tangible

Table 4.7:Cronbach’sApha of scale factor: Tangible

The responsiveness factor exhibits a Cronbach's alpha of 875, indicating strong reliability, while the correlation coefficients for the measured variables range from a low of 634 for variable TAN4 to a high of 800 for variable TAN5 Consequently, these variable components will be utilized in the subsequent exploratory factor analysis (EFA).

The Cronbach's Alpha for the user satisfaction scale is 859, indicating strong reliability Additionally, the correlation coefficients for the measured variations exceed the acceptable standard of 0.3, with the lowest at 649 (SATIS1) and the highest at 790 (SATIS2) Consequently, these variable components will be utilized in the subsequent Exploratory Factor Analysis (EFA).

Ta4.8: Cronbach’sApha of scale factor: Satisfaction

Table 4.8:Cronbach’sApha of scale factor: Satisfaction

Crobanch's Alpha demonstrates satisfactory variables for conducting Exploratory Factor Analysis (EFA) The KMO (Kaiser-Meyer-Olkin Measure of Sampling Adequacy) index is employed to assess the appropriateness of factor analysis, which is deemed valid only when the KMO coefficient exceeds 0.5.

The analysis of 28 variables and observed the following results:

KMO coefficient = 0.784, significance level sig is 000 in Bartlett's test expertise EFA results obtained 5 elements All variables haveansatisfactory value (>.40) we obtain results in the following table:

Table 10Table 4.9: EFA analysis Result of factors affecting Customer Satisfaction

Table 4.9: EFA analysis Result of factors affecting Customer Satisfaction

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 7 iterations

Table 11Table 4.10: KMO and Bartlett’s Test

Table 4.10: KMO and Bartlett’s Test

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy .784

Approx Chi-Square 400.232 Bartlett's Test of Sphericity df 6

Factor analysis revealed that 28 variables can be categorized into five significant observed factors, each with variable weights exceeding 0.40, indicating their practical importance The KMO index of 0.784 suggests that the exploratory factor analysis (EFA) is appropriate for the data.

Bartlett's test yielded a significance level of 000, indicating a strong correlation among the observed variables within the overall context Additionally, the extracted variance of 67.427% suggests that six factors account for 67.427% of the data's variability.

The analysis of user satisfaction levels reveals key factors that influence overall satisfaction, validated through an exploratory factor analysis (EFA) The model demonstrates measurement stability, highlighting specific components of the satisfaction scale.

• The first factor (Assurance) included 7 observed variables: Assign as ASS

ASS1: An email address for queries and complaints is provided

ASS2: Full product or service characteristics are available

ASS3: Full details of product or service pricing are available

ASS4: The user can make a purchase without web site registration

ASS5: Different payment options are stated clearly

ASS6: A complete overview of the order is presented before final purchase decision ASS7: All relevant order confirmation details are sent by e-mail within 24 hours

• The second factor (Reliability) included 4 observed variables: Assign as REL REL1: The security policy is accessible

REL2: The web site contains company details

REL3: External validation of trust worthiness is important

REL4: Brand image is important

• The third factor (Responsiveness) included 4 observed variables: Assign as RES RES1: Access is fast

RES2: Opening of new screens is kept to a minimum

RES3: It is easy to print from the web

RES4: Information is found with a minimum of clicks

• The forth factor (Empathy) included 4 observed variables: Assign as EMP EMP1: The home page features options for new and registered users

EMP2: A customer platform is provided for exchange of ideas

EMP3: Links are provided to pages on related products and services

EMP4: Searches on related sites are provided

• The fifth factor (Tangible) included 5 observed variables: Assign as TAN

TAN1: Scrolling through pages and text is kept to a minimum

TAN2: Web site animations are meaningful

TAN3: Access to anticipated delivery times is available at all times

TAN4: Colors, pictures and images are consistent, relevant and clear

TAN5: Terms and conditions of sales are accessible

• The fifth factor (Satisfaction) included 4 observed variables: Assign as SATIS SATIS1: You satisfy with the current speed connection

SATIS2: You satisfy with your current PC

SATIS3: You desire to have the well-function and good-looking web

SATIS4: You desire to print or download information directly from web

Table 12Table 4.11: EFA analysis of the satisfaction scale

Table 4.11: EFA analysis of the satisfaction scale

Extraction Method: Principal Component Analysis a 1 components extracted

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .784

Theabove tablewe see, only one factorwasextracted;weightedvariablesare greaterthan.40 So,theobservedvariablesareimportantfactorsofsatisfactionof users

Index KMO=0.784, Significance level of Bartlett's test is 0.000 The variance extracted by 62.94%.Therefore, EFA is appropriate These observed variables are satisfied for further analysis

Thus, the initial research model through analysis,theCronbach reliability factor, EFA, allthe factor is satisfied and the original model is retained to perform the further test

Theoretical model is presented in Chapter 2 has 5 factors, as perceived by the users of(1) Tangibles; (2) Reliability; and (3) Responsiveness; (4) Assurance; and

(5) Empathy; and other one factor is satisfaction

This research examines user satisfaction as the dependent variable, influenced by five independent factors that are believed to affect customer satisfaction levels.

Regression analysis is utilized to identify the specific weight of various factors influencing customer satisfaction This analysis employs the average values of observed variables, and is conducted using the Enter method with SPSS 11.5 software.

The linear regression analysis results indicate that the model has an R² value of 0.645 and an adjusted R² of 0.636, demonstrating a relevance of 63.6% This suggests that the overall satisfaction variable is explained by six observed variables.

Table 13Table 4.12: Regression model summary

Square Std Error of the Estimate

1 803(a) 645 636 56378 a Predictors: (Constant), M_TAN, M_EMP, M_RES, M_REL, M_ASS

Squares df Mean Square F Sig

Total 180.114 206 a Predictors: (Constant), M_TAN, M_EMP, M_RES, M_REL, M_ASS b Dependent Variable: M_SATIS

The ANOVA analysis reveals a significance value (Sig.) of 000 for the F parameter, indicating that the regression model aligns well with the collected data All variables are statistically significant at the 5% level, confirming that the independent variables in the model are associated with the dependent variable, SATIS.

The analysis results of regression coefficients show that the model is not violated by the phenomenon is called “Multicollinearity” Which variance of the independent variables are less than 2

The self-correlation (correlation sequence) is not necessary to consider, because the data to run the model is not the time series data, which is cross data

Examination research model

The emergence of the Internet and web technology has given customers access to vast information and a wide variety of products, making it challenging for both brick-and-mortar and online retailers to maintain a competitive edge solely through cost strategies Instead, understanding and addressing customers' needs, preferences, and quality dimensions have become crucial for enhancing customer satisfaction and attracting new clientele By identifying and prioritizing customers' expectations regarding online retail services, businesses can effectively align their offerings with customer preferences for improved service quality.

This study evaluates 28 factors of service quality from the perspective of Cambodians, highlighting the importance of Assurance, Reliability, Responsiveness, Empathy, and Tangibles for online retailers To enhance competitiveness in a highly competitive market, it is advisable for retailers to concentrate on these five key dimensions, with a particular emphasis on Assurance, Reliability, Responsiveness, and Empathy, while recognizing that the Tangible factor may hold less significance By focusing on these critical areas, online retailers can achieve high levels of service quality and customer satisfaction.

More specifically, the following implications are recommended to onlineretailers:

The speed of access to a website is crucial for the success of online retailers, especially in Cambodia, where internet connectivity can be slow Online visitors are more likely to choose websites that load quickly and efficiently To enhance customer satisfaction, it is essential for online retailers to prioritize fast and reliable website performance.

DISCUSSION AND CONCLUSION

Introduction

The emergence of the Internet and web technology has given customers access to vast information and a wide variety of products, making it challenging for brick-and-mortar and online retailers to maintain a competitive edge solely through cost strategies Instead, understanding and addressing customers' needs and preferences, along with the associated quality dimensions, has become crucial for enhancing customer satisfaction and attracting new clientele By identifying and ranking customer expectations regarding online retail services, businesses can better align their offerings with customer preferences for service quality.

This study evaluates 28 factors of service quality from the Cambodian perspective, highlighting the importance of Assurance, Reliability, Responsiveness, Empathy, and Tangibles for online retailers To maintain high service quality and customer satisfaction in a competitive market with limited resources, it is advisable for retailers to concentrate on these five key dimensions, while noting that the Tangible factor may hold less significance.

More specifically, the following implications are recommended to onlineretailers:

The speed of access to a website is crucial for the success of online retailers, particularly in Cambodia, where internet connectivity can be slow To enhance user experience, retailers should design websites that load quickly by minimizing the use of large flashes, graphics, and images Additionally, the website's structure significantly impacts how easily visitors can navigate to find the information they need, making it essential for managers to optimize the design for efficient access.

Websites must ensure 24/7 accessibility, as users expect them to be available at all times Managers should prioritize maintaining a strong online reputation and actively work to prevent downtime In the event of an outage, it is crucial to communicate relevant information regarding the issue and provide an estimated time for the website's restoration.

The assurance dimension emphasizes the importance of informing customers about privacy limits and security policies It is essential for managers to provide clear and accessible information regarding protection measures and privacy policies, ensuring that customers have a comprehensive understanding of how their data is secured on the website.

Implications for Theory

This study aims to identify the key dimensions of online service quality that influence Cambodian customers' perceptions in the online retail sector and to rank these dimensions accordingly By enhancing the understanding of service quality and customer satisfaction, this research contributes to the existing body of knowledge by focusing on the preferences of Cambodian consumers in online retailing The study evaluates five essential service quality dimensions within the context of online retail, grounded in established theories.

The findings of this study largely align with existing literature, revealing new insights through quantitative empirical data This research significantly enhances the understanding of the relative importance of service quality dimensions.

Implications for Further Research

The growth of e-commerce and web technology highlights intriguing areas not addressed in this study that warrant further exploration Additionally, the limitations identified in this research suggest valuable implications for future studies Expanding on this work could provide deeper insights and enhancements.

Further analysis is essential for this research, as it presents intriguing findings To validate our results and broaden our hypotheses, additional steps must be taken.

With over 45,000 Internet users in Phnom Penh, Cambodia, the current sample size of online users is insufficient for comprehensive research Therefore, conducting studies with larger samples that address similar questions would be beneficial for obtaining more reliable results.

Diverse languages, religions, and cultures significantly influence users' perceptions of website quality In today's competitive landscape, delivering exceptional service quality is crucial for companies to add value Consequently, online retailers are prioritizing the enhancement of their website aesthetics to boost user engagement and retention.

Understanding the key factors that drive website visits, engagement, and online purchases is essential for practitioners Researchers emphasize the importance of "loyal customers," who not only generate positive word-of-mouth but also resist switching to competitors, spend more, and are less costly to attract To enhance e-business strategies, it is crucial for practitioners to recognize the various elements influencing customer behavior Addressing this vital issue will pave the way for further research, ultimately improving the online experience and making life easier for consumers.

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QUESTIONAIRE

This research is part of the requirements for obtaining a Master of Business Administration degree at the University of Economics Ho Chi Minh City The primary aim of this study is to assess the outcomes of the evaluation.

Customer Satisfaction and Service Quality in Online Purchasing in Cambodia

I kindly request your support in completing this survey by filling out the questionnaires Your cooperation and valuable assistance are greatly appreciated Thank you for participating in this important survey.

1 Please indicatein which of these age groups you are?

2 Please indicate your gender? Male Female

Part II: Measuring Customer Satisfaction and Service Quality in online purchasing

For each statement, please circle the number provided that best describes your opinion (1 = Very disagree, 4 = Neutral, 7 = Very agree)

1 An email address for queries and complaints is provided 1 2 3 4 5 6 7

2 Full product or service characteristics are available 1 2 3 4 5 6 7

3 Full details of product or service pricing are available 1 2 3 4 5 6 7

4 The user can make a purchase without web site registration 1 2 3 4 5 6 7

5 Different payment options are stated clearly 1 2 3 4 5 6 7

6 A complete overview of the order is presented before final purchase decision 1 2 3 4 5 6 7

7 All relevant order confirmation details are sent by e-mail within 24 hours 1 2 3 4 5 6 7

8 The security policy is accessible 1 2 3 4 5 6 7

9 The web site contains company details 1 2 3 4 5 6 7

10 External validation of trust worthiness is important 1 2 3 4 5 6 7

13 Opening of new screens is kept to a minimum 1 2 3 4 5 6 7

14 It is easy to print from the web 1 2 3 4 5 6 7

15 Information is found with a minimum of clicks 1 2 3 4 5 6 7

16 The home page features options for new and registered users 1 2 3 4 5 6 7

17 A customer platform is provided for exchange of ideas 1 2 3 4 5 6 7

18 Links are provided to pages on related products and services 1 2 3 4 5 6 7

19 Searches on related sites are provided 1 2 3 4 5 6 7

20 Scrolling through pages and text is kept to a minimum 1 2 3 4 5 6 7

21 Web site animations are meaningful 1 2 3 4 5 6 7

22 Access to anticipated delivery times is available at all times 1 2 3 4 5 6 7

23 Colours, pictures and images are consistent, relevant and clear 1 2 3 4 5 6 7

24 Terms and conditions of sales are accessible 1 2 3 4 5 6 7

25 You satisfy with the current speed connection 1 2 3 4 5 6 7

26 You satisfy with your current PC 1 2 3 4 5 6 7

27 You desire to have the well-function and good-looking web 1 2 3 4 5 6 7

28 You desire to print or download information directly from web 1 2 3 4 5 6 7

TABLES

Table 4.1: Number of respondents by gender

Table 4.2: Number of respondents by age

Table 4.3: Cronbach’sApha of scale factor: Assurance

Table 4.4: Cronbach’sApha of scale factor: Reliability

Table 4.5: Cronbach’sApha of scale factor: Responsiveness

Table 4.6: Cronbach’sApha of scale factor: Empathy

Table 4.7: Cronbach’sApha of scale factor: Tangible

Table 4.8: Cronbach’sApha of scale factor: Satisfaction