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BUSINESS RESEARCH METHODS PROJECT
ON
E-SERVICE QUALITY OF AMAZON
Submitted to: Submitted By:
Prof. Anupama Tadarmala Amaresh Nayak- 18BSP2873
Manoj Kumar – 18BSP4078
CERTIFICATE
This is to certify that Mr. Amaresh Nayak and Mr. Manoj Kumar , students of 1st
year
M.B.A. IBS Pune ,ICFAI University have completed their BRM project on
E-SERVICE QUALITY OF AMAZON
They have submitted their project report for the partial fulfilment of the curriculum of the
M.B.A. from IBS Pune , ICFAI University.
Professor Anupama Tadarmala
Declaration
We, Amaresh Nayak and Manoj Kumar , Roll No. 18BSP2873 , 18BSP4078
respectively, MBA students of IBS Pune hereby declare that the BRM project on “E –
QUALITY SERVICE OF AMAZON” is an original piece of research work carried out by
us under the guidance and supervision of Prof. Anupama Tadarmala. We further declare
that the information has been collected from genuine & authentic sources and we have not
submitted this project report to anyone.
Date:
Place:
Acknowledgement
The completion of any inter-disciplinary project depends upon co-ordination and
cooperation and combined efforts of several sources of knowledge. We are grateful to Prof.
Anupama Tadarmala for her ever willingness to give us valuable advice and direction
whenever we approached her with a problem . We are thankful to her for providing
immense guidance for this project.
Table of contents
Content Page no.
Abstract 6
Introduction
 Objective
 Limitations
7
Methodology 8
Literature Review 9
Empirical Analysis
 Percentage analysis
 Chi- square analysis
 Factor analysis
 Correlation analysis
10
Findings and Suggestions 29
Conclusion 30
Appendix
 List of tables
 List of charts
 Questionnaire
31
Reference 33
Abstract
In today’s time the online shopping has become a trend. It has become possible because of
two things i.e. Internet and E-commerce websites which have given the platform to the
consumer and seller. Here the sellers can sell their products and consumers can purchase the
products from any part of the world and at any time from online shopping platforms.
Internet has made life simple for all. The purpose of this project is to understand E- service
quality of one of the online shopping website i.e. Amazon. It depend on eight dimension
which are very important Reliability, Responsiveness , Trust, Personalisation, Website
operations, providing discounts, authenticated products, Website design. Qualitative
research approach was used and data was collected through online surveys. Data analysis
and data presentation were conducted in accordance with the research paper and frame of
reference. Finally, the findings and conclusions were answered and some new dimensions
of e-service quality were discovered.
Introduction
Internet has become a popular marketing channel with a lot of online retailers selling their
product .The e- service quality is one of the key determinants of success of online retailers.
Online retailers fail due to poor quality of service provided to customer. Online customers
want fast, friendly, high quality, responsive services. Amazon is largest online retailers in
terms of revenue and market capitalisation.
Objective:
 To know the extent to which customer prefer Amazon.
 To gain better understanding of dimensions that affect customer perceived E-service
quality in online shopping.
 To find new dimensions
Limitations:
 People who use Amazon are to be considered.
 Sample size
 Survey method
Methodology
We used descriptive research approach and used survey method to collect the data. There
were 29 questions or statements and the questionnaire was shared online and the survey was
conducted. Judgemental sampling was done. People who use Amazon were considered.
Demographic survey is done. The questionnaire was sent to 70 people out of which 55
responses were received. Hence the sample size is 55. Qualitative research process was
approached. The data was validated for appropriate statistical analysis using Statistical
Package for Social Sciences SPSS software. All the questions were in form of Likert scale
(4-point) i.e. 1=strongly disagree, 2=disagree, 3=agree, 4=strongly agree. For negative
statements values were changed as 1=strongly agree, 2=agree, 3=disagree, 4=strongly
disagree.
Literature Review
In 2002 Parasuraman examined the issues of E-service quality and he found out that there
are 11 dimension of e- quality service which are those same as zeithamal. Then he
conducted the test by taking a sample of 540 internet users and he came on conclusion that
the key dimensions are four : efficiency, fulfilment, reliability and privacy.
In the same year 2002 Zeithamal also conducted the test and he identified 7 dimension of
e-quality service: efficiency, reliability, fulfilment, privacy, responsiveness, compensation
and contact.
In 2005 Lee & Lin examined e-service quality in online shopping found five service quality
dimensions i.e. website design, reliability, responsiveness, personalization, trust.
Farnaz Beheshti Zavareh, Mohd Shoki Md Ariff, Ahmad Jusoh, Norhayati Zakuan,
and Ahamad Zaidi Bahari, E-Service Quality Dimensions and Their Effects on E-
Customer Satisfaction in Internet Banking Services, The 2012 International Conference on
Asia Pacific Business Innovation and Technology Management
In 2015 Jurgita Zembelyte examined instrument for e-service quality found four
dimensional constructs i.e. compensation, responsiveness, website operation, reliability.
Empirical Analysis
We have used SPSS 23.0 to perform empirical analysis. A total of 55 responses are
collected, hence our sample size is 55. Total no. of variables are 29 including the
demographic variables. Percentage analysis, Chi-square analysis, correlation and factor
analysis is done.
Table 1:gender
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid male 34 59.6 61.8 61.8
female 21 36.8 38.2 100.0
Total 55 96.5 100.0
Missing System 2 3.5
Total 57 100.0
Chart 1 : gender
This shows that majority of my respondents are males with 61.8%. Women are 38.2%.
Table 2:age
Frequency Percent Valid Percent
Cumulative
Percent
Valid below 18 4 7.0 7.3 7.3
18-30 39 68.4 70.9 78.2
30-45 11 19.3 20.0 98.2
above 45 1 1.8 1.8 100.0
Total 55 96.5 100.0
Missing System 2 3.5
Total 57 100.0
Chart 2:age
This shows that majority of my respondents belong to 18-30 age group with 70.9%. 20%
belong to 30-45 age group, 7.3% are below 18 and 1.8% are above 45.
Table 3:income
Frequency Percent Valid Percent
Cumulative
Percent
Valid below 25000 1 1.8 1.8 1.8
25000-40000 3 5.3 5.5 7.3
40000-60000 16 28.1 29.1 36.4
above 60000 35 61.4 63.6 100.0
Total 55 96.5 100.0
Missing System 2 3.5
Total 57 100.0
Chart 3 : income
63.6% of the respondents’ monthly family income is greater than 60000. Income of 29.1% of respondents
lies between 40000 to 60000, 5.5% lies between 25000 to 40000, 1.8% earn below 25000.
Table 4:The orders are delivered in time.
Frequency Percent Valid Percent
Cumulative
Percent
Valid strongly disagree 3 5.3 5.5 5.5
Disagree 7 12.3 12.7 18.2
Agree 28 49.1 50.9 69.1
strongly agree 17 29.8 30.9 100.0
Total 55 96.5 100.0
Missing System 2 3.5
Total 57 100.0
Chart 4: order delivery
50.9% agree that Amazon delivers its order in time. 30.9% strongly agree to it. 12.7% disagree and the rest
strongly disagree.
Table 5:Provides quick response to queries.
Frequency Percent Valid Percent
Cumulative
Percent
Valid strongly disagree 2 3.5 3.6 3.6
Disagree 9 15.8 16.4 20.0
Agree 32 56.1 58.2 78.2
strongly agree 12 21.1 21.8 100.0
Total 55 96.5 100.0
Missing System 2 3.5
Total 57 100.0
Chart 5: query response
58.2% agree that Amazon provides quick response to queries. 21.8% strongly agree to it. 16.4% disagree
and 3.6% strongly disagree.
Table 6:Provide satisfactory service to customers when a problem occurs.
Frequency Percent Valid Percent
Cumulative
Percent
Valid strongly disagree 3 5.3 5.5 5.5
Disagree 2 3.5 3.6 9.1
Agree 41 71.9 74.5 83.6
strongly agree 9 15.8 16.4 100.0
Total 55 96.5 100.0
Missing System 2 3.5
Total 57 100.0
Chart 6 : problem solving
74.5% agree that Amazon solves customers’ problems. 16.4% strongly agree to it, 3.6% disagree and 5.5%
strongly disagree .
Table 7:Sells high quality product
Frequency Percent Valid Percent
Cumulative
Percent
Valid strongly disagree 2 3.5 3.6 3.6
disagree 13 22.8 23.6 27.3
agree 29 50.9 52.7 80.0
strongly agree 11 19.3 20.0 100.0
Total 55 96.5 100.0
Missing System 2 3.5
Total 57 100.0
Chart 7: product quality
52.7% agree that Amazon sells high quality product. 20% strongly agree to it. 23.6%
disagree and 3.6% strongly disagree.
Chi-Square analysis:
This is done to check whether any relationship exists between two variables.
 To check dependency between product quality and customer satisfaction.
H0 : product quality and customer satisfaction are independent.
Ha : product quality and customer satisfaction are dependent.
Table 8:Sells high quality product * Satisfies customers' needs. Crosstabulation
Satisfies customers' needs. Total
strongly
disagree disagree agree
strongly
agree
Sells high quality
product
strongly
disagree
Count 1 0 1 0 2
Expected Count .0 .1 1.3 .5 2.0
% within Sells high
quality product
50.0% 0.0% 50.0% 0.0% 100.0%
% within Satisfies
customers' needs.
100.0% 0.0% 2.8% 0.0% 3.6%
% of Total 1.8% 0.0% 1.8% 0.0% 3.6%
Disagree Count 0 1 11 1 13
Expected Count .2 .7 8.5 3.5 13.0
% within Sells high
quality product
0.0% 7.7% 84.6% 7.7% 100.0%
% within Satisfies
customers' needs.
0.0% 33.3% 30.6% 6.7% 23.6%
% of Total 0.0% 1.8% 20.0% 1.8% 23.6%
Agree Count 0 2 21 6 29
Expected Count .5 1.6 19.0 7.9 29.0
% within Sells high
quality product
0.0% 6.9% 72.4% 20.7% 100.0%
% within Satisfies
customers' needs.
0.0% 66.7% 58.3% 40.0% 52.7%
% of Total 0.0% 3.6% 38.2% 10.9% 52.7%
strongly agree Count 0 0 3 8 11
Expected Count .2 .6 7.2 3.0 11.0
% within Sells high
quality product
0.0% 0.0% 27.3% 72.7% 100.0%
% within Satisfies
customers' needs.
0.0% 0.0% 8.3% 53.3% 20.0%
% of Total 0.0% 0.0% 5.5% 14.5% 20.0%
Total Count 1 3 36 15 55
Expected Count 1.0 3.0 36.0 15.0 55.0
% within Sells high
quality product
1.8% 5.5% 65.5% 27.3% 100.0%
% within Satisfies
customers' needs.
100.0% 100.0% 100.0% 100.0% 100.0%
% of Total 1.8% 5.5% 65.5% 27.3% 100.0%
Table 8.1:Chi-Square Tests
Value Df
Asymptotic
Significance (2-
sided)
Pearson Chi-Square 42.073
a
9 .000
Likelihood Ratio 22.202 9 .008
Linear-by-Linear Association 14.628 1 .000
N of Valid Cases 55
Chi-square statistic is 42.073, degree of freedom =9. p = 0.000 which is less than 0.05,
hence, accept Ha. There is significant association between product quality and customer
satisfaction.
 To check dependency between problem solving and customer satisfaction.
H0 : problem solving and customer satisfaction are independent.
Ha : problem solving and customer satisfaction are dependent.
Table 9:Provide satisfactory service to customers when a problem occurs. * Satisfies customers' needs. Crosstabulation
Satisfies customers' needs.
Total
strongly
disagree disagree agree
strongly
agree
Provide satisfactory
service to customers
when a problem
occurs.
strongly disagree Count 1 0 2 0 3
Expected Count .1 .2 2.0 .8 3.0
% within Provide
satisfactory
service to
customers when a
problem occurs.
33.3% 0.0% 66.7% 0.0%
100.
0%
% within Satisfies
customers' needs.
100.0% 0.0% 5.6% 0.0% 5.5%
% of Total 1.8% 0.0% 3.6% 0.0% 5.5%
Disagree Count 0 2 0 0 2
Expected Count .0 .1 1.3 .5 2.0
% within Provide
satisfactory
service to
customers when a
problem occurs.
0.0% 100.0% 0.0% 0.0%
100.
0%
% within Satisfies
customers' needs.
0.0% 66.7% 0.0% 0.0% 3.6%
% of Total 0.0% 3.6% 0.0% 0.0% 3.6%
Agree Count 0 0 32 9 41
Expected Count .7 2.2 26.8 11.2 41.0
% within Provide
satisfactory
service to
customers when a
problem occurs.
0.0% 0.0% 78.0% 22.0%
100.
0%
% within Satisfies
customers' needs.
0.0% 0.0% 88.9% 60.0%
74.5
%
% of Total
0.0% 0.0% 58.2% 16.4%
74.5
%
strongly agree Count 0 1 2 6 9
Expected Count .2 .5 5.9 2.5 9.0
% within Provide
satisfactory
service to
customers when a
problem occurs.
0.0% 11.1% 22.2% 66.7%
100.
0%
% within Satisfies
customers' needs.
0.0% 33.3% 5.6% 40.0%
16.4
%
% of Total
0.0% 1.8% 3.6% 10.9%
16.4
%
Total Count 1 3 36 15 55
Expected Count 1.0 3.0 36.0 15.0 55.0
% within Provide
satisfactory
service to
customers when a
problem occurs.
1.8% 5.5% 65.5% 27.3%
100.
0%
% within Satisfies
customers' needs.
100.0% 100.0% 100.0% 100.0%
100.
0%
% of Total
1.8% 5.5% 65.5% 27.3%
100.
0%
Table 9.1:Chi-Square Tests
Value Df
Asymptotic
Significance (2-
sided)
Pearson Chi-Square 64.821
a
9 .000
Likelihood Ratio 32.709 9 .000
Linear-by-Linear Association 13.626 1 .000
N of Valid Cases 55
Chi-square statistic is 64.821, degree of freedom =9. p = 0.000 which is less than 0.05,
hence, accept Ha. There is significant association between problem solving and customer
satisfaction.
 To check dependency between response to queries and customer satisfaction.
H0 : response to queries and customer satisfaction are independent.
Ha : response to queries and customer satisfaction are dependent.
Table 10:Provides quick response to querries. * Satisfies customers' needs. Crosstabulation
Satisfies customers' needs.
Total
strongly
disagree disagree agree
strongly
agree
Provides quick
response to queries.
strongly disagree Count 1 0 1 0 2
Expected Count .0 .1 1.3 .5 2.0
% within Provides
quick response to
querries.
50.0% 0.0% 50.0% 0.0% 100.0%
% within Satisfies
customers' needs.
100.0% 0.0% 2.8% 0.0% 3.6%
% of Total 1.8% 0.0% 1.8% 0.0% 3.6%
Disagree Count 0 2 6 1 9
Expected Count .2 .5 5.9 2.5 9.0
% within Provides
quick response to
querries.
0.0% 22.2% 66.7% 11.1% 100.0%
% within Satisfies
customers' needs.
0.0% 66.7% 16.7% 6.7% 16.4%
% of Total 0.0% 3.6% 10.9% 1.8% 16.4%
Agree Count 0 1 24 7 32
Expected Count .6 1.7 20.9 8.7 32.0
% within Provides
quick response to
querries.
0.0% 3.1% 75.0% 21.9% 100.0%
% within Satisfies
customers' needs.
0.0% 33.3% 66.7% 46.7% 58.2%
% of Total 0.0% 1.8% 43.6% 12.7% 58.2%
strongly agree Count 0 0 5 7 12
Expected Count .2 .7 7.9 3.3 12.0
% within Provides
quick response to
querries.
0.0% 0.0% 41.7% 58.3% 100.0%
% within Satisfies
customers' needs.
0.0% 0.0% 13.9% 46.7% 21.8%
% of Total 0.0% 0.0% 9.1% 12.7% 21.8%
Total Count 1 3 36 15 55
Expected Count 1.0 3.0 36.0 15.0 55.0
% within Provides
quick response to
querries.
1.8% 5.5% 65.5% 27.3% 100.0%
% within Satisfies
customers' needs.
100.0% 100.0% 100.0% 100.0% 100.0%
% of Total 1.8% 5.5% 65.5% 27.3% 100.0%
Table 10.1:Chi-Square Tests
Value Df
Asymptotic
Significance (2-
sided)
Pearson Chi-Square 39.773
a
9 .000
Likelihood Ratio 18.593 9 .029
Linear-by-Linear Association 13.700 1 .000
N of Valid Cases 55
Chi-square statistic is 39.773, degree of freedom =9. p = 0.000 which is less than 0.05,
hence, accept Ha. There is significant association between quick response to queries and
customer satisfaction.
Factor analysis:
We have performed both exploratory factor analysis .It is done to reduce the no. of factors
from large no. of variables.
Kaiser-Mayor-Olkin (KMO) test is done to check how good the factors are.
Bartlett test is done to measure the multivariate normality of the set of distributions.
Communality (h2
) shows the percentage of variation explained by each variable.
Table 11:KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.775
Bartlett's Test of
Sphericity
Approx. Chi-Square 820.998
Df 325
Sig. .000
KMO = 0.775, which is greater than 0.5. So, variables are adequate to perform factor
analysis.
Bartlett test, p = 0.000, which is less than 0.05. Data doesn’t produce any identity matrix.
Table 12:Total Variance Explained
Component
Initial Eigenvalues
Extraction Sums of Squared
Loadings Rotation Sums of Squared Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 9.588 36.876 36.876 9.588 36.876 36.876 4.268 16.416 16.416
2 1.930 7.424 44.300 1.930 7.424 44.300 3.874 14.901 31.317
3 1.673 6.435 50.735 1.673 6.435 50.735 3.276 12.600 43.916
4 1.551 5.964 56.699 1.551 5.964 56.699 1.920 7.386 51.302
5 1.292 4.971 61.669 1.292 4.971 61.669 1.714 6.593 57.895
6 1.180 4.538 66.207 1.180 4.538 66.207 1.582 6.084 63.979
7 1.118 4.298 70.505 1.118 4.298 70.505 1.447 5.565 69.544
8 1.009 3.880 74.385 1.009 3.880 74.385 1.259 4.841 74.385
9 .851 3.273 77.658
10 .798 3.069 80.726
11 .641 2.464 83.191
12 .596 2.291 85.482
13 .569 2.188 87.670
14 .489 1.882 89.552
15 .456 1.753 91.305
16 .428 1.648 92.952
17 .365 1.403 94.355
18 .333 1.280 95.635
19 .250 .963 96.598
20 .222 .855 97.453
21 .166 .639 98.092
22 .139 .533 98.625
23 .122 .469 99.094
24 .099 .379 99.473
25 .083 .321 99.794
26 .054 .206 100.000
Extraction Method: Principal Component Analysis.
Under total variance explained eigen values 9.588, 1.930, 1.673, 1.551, 1.292, 1.180, 1.118,
1.009 are greater than 1. Hence 8 factors are derived.
Initially ,
Factor 1 explains 36.876%.
Factor 2 explains 7.424%.
Factor 3 explains 6.435%.
Factor 4 explains 5.964%.
Factor 5 explains 4.971%.
Factor 6 explains 4.538%
Factor 7 explains 4.298%
Factor 8 explains 3.880%
After iterations,
Factor 1 explains 16.416%.
Factor 2 explains 14.901%.
Factor 3 explains 12.6%.
Factor 4 explains 7.386%.
Factor 5 explains 6.593%.
Factor 6 explains 6.084%
Factor 7 explains 5.565%
Factor 8 explains 4.841%
Altogether they explain 74.385%.
Table 13:Rotated Component Matrix
a
Component
1 2 3 4 5 6 7 8
Product information provided
on the website are relevant.
.163 .523 .380 .346 -.012 -.023 .384 .167
Amazon offers good mix of
brands in all product
categories.
.373 .342 .493 .119 -.016 .363 .063 -.187
Prices are higher. .015 -.058 .001 .082 .806 .191 .334 .048
Provide discounts. .295 .056 .673 .236 -.139 -.288 -.127 -.063
Provides extra discount
coupons to regular
customers.
.328 .217 .707 -.118 -.020 -.062 .151 .057
Latest offers are advertised
widely.
.139 .561 .594 -.034 .151 .307 -.048 -.123
Provide notifications to
customers about new arrivals
based on customers' past
activity.
.168 .397 .498 .423 .172 .015 -.271 .090
Provide alternatives to
customers seeking a
particular type of product.
-.010 .494 .416 .372 -.235 -.257 .067 -.088
Personal informations such
as credit card no., home
address etc are kept secured.
.275 .378 .243 .587 .029 -.011 -.271 -.001
I order at least once in three
months.
.135 .109 -.021 .783 -.050 .151 .178 .090
The orders are fulfilled
correctly.
.526 -.049 .506 .378 -.071 .012 -.130 .299
You can track your order
accurately.
.750 .127 .139 .250 -.407 -.037 .014 -.066
The orders are delivered in
time.
.669 .406 .140 .146 .043 .178 .159 -.025
Provides quick response to
querries.
.579 .465 .146 .245 .205 -.041 .206 -.199
Provide satisfactory service
to customers when a problem
occurs.
.373 .712 .116 .237 .101 -.055 .123 .026
Good navigation speed. .567 .489 .285 -.047 .117 -.257 .163 .295
Products are authenticated
online.
.371 .199 .557 .070 -.297 -.035 .257 .145
User interface such as colour
and graphics used are
attractive.
.379 .633 .200 -.054 -.230 .141 -.027 .286
Provides message area to
customers for comments and
suggestions.
.264 .875 .099 .149 -.043 .133 .024 .031
Satisfies customers' needs. .704 .349 .174 .006 -.214 -.009 .016 .016
You get the exact product as
you see online.
.680 .225 .354 .042 .236 -.113 -.051 -.044
Sells high quality product .606 .086 .400 .172 .095 .203 -.059 .023
Picks up items to be returned
with minimum hassle
-.054 -.099 -.014 -.028 -.082 .014 -.852 .109
offers clear return policy and
guarantee
.046 -.086 -.004 -.098 -.133 -.048 .095 -.889
site is available 24x7 .001 .082 -.092 .098 -.064 .929 -.025 .070
options to filter brand,
price,size etc.
-.036 .059 -.078 -.094 .643 -.285 -.156 .109
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 14 iterations.
Factor 1
You can track your order accurately= 0.750
Satisfies customers' needs= 0.704
The orders are delivered in time.= 0.669
You get the exact product as you see online. = 0.680
Group name- Reliability
.Factor 2
Provide message area to customers for comments and suggestions. = 0.875
Provide satisfactory service to customers when a problem occurs = 0.712
Provide quick response to queries. = 0.579
Group name- Responsiveness
Factor 3
Provide discounts. = 0.707
Provides extra discount coupons to regular customers.= 0.673
Latest offers are advertised widely = 0.594
Group name- Providing discounts
Factor 4
Provide notifications to customers about new arrivals based on customers' past activity. =
0.423
The orders are fulfilled correctly.= 0.378
Provide alternatives to customers seeking a particular type of product. = 0.372
Group name- Personalisation
Factor 5
Prices are higher.= 0.902
Products are authenticated online. = 0.251
Group name- Guarantee
Factor 6
Site is available 24x7 = 0.929
Options to filter brand, price, size etc. = 0.285
Group name – Website Operations
Factor 7
Picks up items to be returned with minimum hassle = 0.852
Product information provided on the website are relevant= 0.384
Personal information such as credit card no., home address etc. are kept secured. = 0.271
Group name - Trust
Factor 8
Good navigation speed = 0.295
User interface such as colour and graphics used are attractive. = 0.286
Group name - Website design
Communalities
Product information provided on the website are relevant. = 0.7402
Amazon offers good mix of brands in all product categories. = 0.6842
Prices are higher. = 0.8103
Provide discounts. = 0.7215
Provides extra discount coupons to regular customers. = 0.6987
Latest offers are advertised widely. = 0.8225
Provide notifications to customers about new arrivals based on customers' past activity. = 0.7241
Provide alternatives to customers seeking a particular type of product. = 0.6891
Personal information such as credit card no., home address etc are kept secured. = 0.6965
I order at least once in three months. = 0.7087
The orders are fulfilled correctly. = 0.7894
You can track your order accurately. = 0.832
The orders are delivered in time. = 0.7127
Provides quick response to queries. = 0.7585
Provide satisfactory service to customers when a problem occurs. = 0.7447
Good navigation speed. = 0.8373
Products are authenticated online = 0.6689.
User interface such as colour and graphics used are attractive. = 0.7425
Provides message area to customers for comments and suggestions. = 0.8884
Satisfies customers' needs. = 0.6941
You get the exact product as you see online. = 0.7131
Sells high quality product = 0.6184
Picks up items to be returned with minimum hassle = 0.7584
offers clear return policy and guarantee = 0.8384
site is available 24x7 = 0.8974
options to filter brand, price, size etc. = 0.5506
Correlation Analysis:
It was done to check how strongly two variables are related to each other.
 Correlation between tracking of orders and delivery of orders in time.
H0 : There is no correlation between tracking of orders and delivery of orders.
Ha : There is correlation between tracking of orders and delivery of orders.
Table 14:Correlations
You can
track your
order
accurately.
The orders
are delivered
in time.
You can track your
order accurately.
Pearson
Correlation
1 .622**
Sig. (2-tailed) .000
N 55 55
The orders are
delivered in time.
Pearson
Correlation
.622**
1
Sig. (2-tailed) .000
N 55 55
**. Correlation is significant at the 0.01 level (2-tailed).
p = 0.000 which is less than 0.05, hence reject null hypothesis. Thus, tracking and delivery
of orders are correlated.
Correlation coefficient is 0.622 i.e. positive correlation. There is moderate degree of
correlation.
 Correlation between providing response to queries and satisfying the customer
by solving the query
H0 : there is no correlation between providing response to queries and satisfying the
customer by solving the query
Ha : there is correlation between providing response to queries and satisfying the
customer by solving the query
Table 15:Correlations
Provides
quick
response to
queries.
Provide
satisfactory
service to
customers
when a
problem
occurs.
Provides quick
response to queries.
Pearson
Correlation
1 .621**
Sig. (2-tailed) .000
N 55 55
Provide satisfactory
service to customers
when a problem occurs.
Pearson
Correlation
.621**
1
Sig. (2-tailed) .000
N 55 55
**. Correlation is significant at the 0.01 level (2-tailed).
p = 0.000 which is less than 0.05, hence reject null hypothesis. Thus, providing quick
response to queries and satisfying the customer by solving their queries are correlated.
Correlation coefficient is 0.621 i.e. positive correlation. There is moderate degree of
correlation.
 Correlation between product quality, delivery time and customer satisfaction
H0: Product quality, in-time delivery and customer satisfaction are not correlated.
Ha: Product quality, in-time delivery and customer satisfaction are correlated.
Table 16:Correlations
Satisfies
customers'
needs.
The orders
are delivered
in time.
Sells high
quality
product
Satisfies customers'
needs.
Pearson
Correlation
1 .532**
.520**
Sig. (2-tailed) .000 .000
N 55 55 55
The orders are
delivered in time.
Pearson
Correlation
.532**
1 .461**
Sig. (2-tailed) .000 .000
N 55 55 55
Sells high quality
product
Pearson
Correlation
.520**
.461**
1
Sig. (2-tailed) .000 .000
N 55 55 55
**. Correlation is significant at the 0.01 level (2-tailed).
p = 0.000 which is less than 0.05, hence reject null hypothesis.
Customer is satisfied if orders are delivered in time and product quality is high.
Correlation co-efficient between product quality and customer satisfaction = 0.520
(moderate correlation)
Correlation coefficient between product quality and order delivery = 0.461 (low correlation)
Correlation coefficient between order delivery and customer satisfaction = 0.532 (moderate
correlation)
 Correlation between price and customer satisfaction.
H0: no correlation between price and customer satisfaction
Ha: correlation exists between price and customer satisfaction
Table 17:Correlations
Satisfies
customers'
needs.
Prices are
higher.
Satisfies customers'
needs.
Pearson
Correlation
1 -.146
Sig. (2-tailed) .287
N 55 55
Prices are higher. Pearson
Correlation
-.146 1
Sig. (2-tailed) .287
N 55 55
p = 0.287, which is greater than 0.05, hence accept null hypothesis.
Findings and Suggestions
Thus, 8 important factors were derived and they explained 74.385% of e-service quality of
amazon based on customers’ perception. The most important e-service quality dimension
came out to be Reliability (variance explained 16.416%) and the least important came out
to be Website design(variance explained 4.841%) . Summing up the results it seems that the
e-service quality consists of eight dimensions i.e. responsiveness, website design,
reliability, personalisation, trust, website operation, providing discounts, guarantee.
Responsiveness describes how often an online store voluntarily provides services to
customers. It includes statements such as providing message areas to customers for
comments and suggestions and queries, providing quick response to queries and solving the
queries, providing relevant product information, advertising widely. Trust is defined as
customers’ willingness to accept online transaction based on their positive expectation to
online store behaviour. It includes securing personal information such as credit card no.,
home address etc., selling high quality product, suggesting alternatives to customers seeking
a particular type of product. Due to trust customers’ buying frequency is affected.
Reliability refers to fulfilling orders correctly, delivering the orders in time, providing the
exact product we see online. Personalisation refers to how online store provides information
to particular customers. Providing discounts includes providing extra discounts to regular
customers and providing notifications based on customers’ past activity. Website design
refers to attractive user interface, navigation speed and providing online guarantees.
Website operations refers to availability of site to operate and how to filter through brands,
size, price. Guarantee refers to authentication of products available online.
We have performed chi-square test to check whether a relationship exist between the
variables and then performed correlation analysis between those variables and found that
moderate degree of correlation exist between problem solving and providing response to
queries, tracking of order and in-time delivery. Customer satisfaction depends on quality of
product, delivery time (multiple correlation analysis).
Suggestions
 Should increase their problem solving and query responding process to increase
customer satisfaction.
 Should sell products that are authenticated. Guarantee plays an important role.
 Should provide exciting discounts and offers to attract customers.
Conclusion
Our findings show that e-service quality form customers’ point of view is an eight
dimensional construct i.e. comprises of five factors. They are responsiveness, reliability,
personalisation, trust, website design, website operation, providing discount, guarantee.
Responsiveness describes how often an online store voluntarily provides services to
customers. It includes statements such as providing message areas to customers for
comments and suggestions and queries, providing quick response to queries and solving the
queries, providing relevant product information, advertising widely. Trust is defined as
customers’ willingness to accept online transaction based on their positive expectation to
online store behaviour. It includes securing personal information such as credit card no.,
home address etc., selling high quality product, suggesting alternatives to customers seeking
a particular type of product. Due to trust customers’ buying frequency is affected.
Reliability refers to fulfilling orders correctly, delivering the orders in time, providing the
exact product we see online. Personalisation refers to how online store provides information
to particular customers. It includes providing extra discounts to regular customers and
providing notifications based on customers’ past activity. Website design refers to attractive
user interface, navigation speed and providing online guarantees. The three other factors
identified in our research were website operation, providing discount, product guarantees.
Appendices
Appendix A: List of tables
Table
no.
Table name Page no.
1 Gender 10
2 Age 10
3 Income 11
4 Order delivery 12
5 Query response 12
6 Problem solving 13
7 Product quality 13
8 Chi-square between product quality and
customer satisfaction
14
8.1 Chi-square test 15
9 Chi-square between problem solving and
customer satisfaction
17
9.1 Chi-square test 17
10 Chi-square between query response and
customer satisfaction
18
10.1 Chi-square test 19
11 KMO & Bartlett test 19
12 Total Variance Explained 20
13 Rotated component matrix 21
14 Correlation between tracking of orders
and delivery of orders in time.
25
15 Correlation between providing response
to queries and satisfying the customer by
solving the query
26
16 Correlation between product quality,
delivery time and customer satisfaction
27
17 Correlation between price and customer
satisfaction.
18
Appendix B: List of charts
Chart no. Chart name Page no.
1 gender 10
2 age 11
3 income 11
4 Order delivery 12
5 Query response 13
6 Problem solving 13
7 Product quality 14
References
 Xi Zhang, Yu Thang, Customer perceived e-service quality in online shopping, Lulea
university of technology.
 Jurgita Zembelyte, the instrument for evaluating e-service quality, 20th
international
scientific conference economics and management-2015
 Farnaz Beheshti Zavareh, Mohd Shoki Md Ariff, Ahmad Jusoh, Norhayati Zakuan,
and Ahamad Zaidi Bahari, E-Service Quality Dimensions and Their Effects on E-
Customer Satisfaction in Internet Banking Services, The 2012 International
Conference on Asia Pacific Business Innovation and Technology Management
 Shin-Yuan Hung, Charlie C. Chen, Ning-Hung Huang, AN INTEGRATIVE
APPROACH TO UNDERSTANDING CUSTOMER SATISFACTION WITH
E-SERVICE OF ONLINE STORES, Journal of Electronic Commerce Research,
VOL 15, NO 1, 2014
 Saeedeh Asadpoor1, Abolfazl Abolfazli2, Effect of Electronic Service Quality on
Customer Satisfaction and Loyalty Saderat Bank’s Customers

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Amazon e service quality

  • 1. BUSINESS RESEARCH METHODS PROJECT ON E-SERVICE QUALITY OF AMAZON Submitted to: Submitted By: Prof. Anupama Tadarmala Amaresh Nayak- 18BSP2873 Manoj Kumar – 18BSP4078
  • 2. CERTIFICATE This is to certify that Mr. Amaresh Nayak and Mr. Manoj Kumar , students of 1st year M.B.A. IBS Pune ,ICFAI University have completed their BRM project on E-SERVICE QUALITY OF AMAZON They have submitted their project report for the partial fulfilment of the curriculum of the M.B.A. from IBS Pune , ICFAI University. Professor Anupama Tadarmala
  • 3. Declaration We, Amaresh Nayak and Manoj Kumar , Roll No. 18BSP2873 , 18BSP4078 respectively, MBA students of IBS Pune hereby declare that the BRM project on “E – QUALITY SERVICE OF AMAZON” is an original piece of research work carried out by us under the guidance and supervision of Prof. Anupama Tadarmala. We further declare that the information has been collected from genuine & authentic sources and we have not submitted this project report to anyone. Date: Place:
  • 4. Acknowledgement The completion of any inter-disciplinary project depends upon co-ordination and cooperation and combined efforts of several sources of knowledge. We are grateful to Prof. Anupama Tadarmala for her ever willingness to give us valuable advice and direction whenever we approached her with a problem . We are thankful to her for providing immense guidance for this project.
  • 5. Table of contents Content Page no. Abstract 6 Introduction  Objective  Limitations 7 Methodology 8 Literature Review 9 Empirical Analysis  Percentage analysis  Chi- square analysis  Factor analysis  Correlation analysis 10 Findings and Suggestions 29 Conclusion 30 Appendix  List of tables  List of charts  Questionnaire 31 Reference 33
  • 6. Abstract In today’s time the online shopping has become a trend. It has become possible because of two things i.e. Internet and E-commerce websites which have given the platform to the consumer and seller. Here the sellers can sell their products and consumers can purchase the products from any part of the world and at any time from online shopping platforms. Internet has made life simple for all. The purpose of this project is to understand E- service quality of one of the online shopping website i.e. Amazon. It depend on eight dimension which are very important Reliability, Responsiveness , Trust, Personalisation, Website operations, providing discounts, authenticated products, Website design. Qualitative research approach was used and data was collected through online surveys. Data analysis and data presentation were conducted in accordance with the research paper and frame of reference. Finally, the findings and conclusions were answered and some new dimensions of e-service quality were discovered.
  • 7. Introduction Internet has become a popular marketing channel with a lot of online retailers selling their product .The e- service quality is one of the key determinants of success of online retailers. Online retailers fail due to poor quality of service provided to customer. Online customers want fast, friendly, high quality, responsive services. Amazon is largest online retailers in terms of revenue and market capitalisation. Objective:  To know the extent to which customer prefer Amazon.  To gain better understanding of dimensions that affect customer perceived E-service quality in online shopping.  To find new dimensions Limitations:  People who use Amazon are to be considered.  Sample size  Survey method
  • 8. Methodology We used descriptive research approach and used survey method to collect the data. There were 29 questions or statements and the questionnaire was shared online and the survey was conducted. Judgemental sampling was done. People who use Amazon were considered. Demographic survey is done. The questionnaire was sent to 70 people out of which 55 responses were received. Hence the sample size is 55. Qualitative research process was approached. The data was validated for appropriate statistical analysis using Statistical Package for Social Sciences SPSS software. All the questions were in form of Likert scale (4-point) i.e. 1=strongly disagree, 2=disagree, 3=agree, 4=strongly agree. For negative statements values were changed as 1=strongly agree, 2=agree, 3=disagree, 4=strongly disagree.
  • 9. Literature Review In 2002 Parasuraman examined the issues of E-service quality and he found out that there are 11 dimension of e- quality service which are those same as zeithamal. Then he conducted the test by taking a sample of 540 internet users and he came on conclusion that the key dimensions are four : efficiency, fulfilment, reliability and privacy. In the same year 2002 Zeithamal also conducted the test and he identified 7 dimension of e-quality service: efficiency, reliability, fulfilment, privacy, responsiveness, compensation and contact. In 2005 Lee & Lin examined e-service quality in online shopping found five service quality dimensions i.e. website design, reliability, responsiveness, personalization, trust. Farnaz Beheshti Zavareh, Mohd Shoki Md Ariff, Ahmad Jusoh, Norhayati Zakuan, and Ahamad Zaidi Bahari, E-Service Quality Dimensions and Their Effects on E- Customer Satisfaction in Internet Banking Services, The 2012 International Conference on Asia Pacific Business Innovation and Technology Management In 2015 Jurgita Zembelyte examined instrument for e-service quality found four dimensional constructs i.e. compensation, responsiveness, website operation, reliability.
  • 10. Empirical Analysis We have used SPSS 23.0 to perform empirical analysis. A total of 55 responses are collected, hence our sample size is 55. Total no. of variables are 29 including the demographic variables. Percentage analysis, Chi-square analysis, correlation and factor analysis is done. Table 1:gender Frequency Percent Valid Percent Cumulative Percent Valid male 34 59.6 61.8 61.8 female 21 36.8 38.2 100.0 Total 55 96.5 100.0 Missing System 2 3.5 Total 57 100.0 Chart 1 : gender This shows that majority of my respondents are males with 61.8%. Women are 38.2%. Table 2:age Frequency Percent Valid Percent Cumulative Percent Valid below 18 4 7.0 7.3 7.3 18-30 39 68.4 70.9 78.2 30-45 11 19.3 20.0 98.2 above 45 1 1.8 1.8 100.0 Total 55 96.5 100.0 Missing System 2 3.5 Total 57 100.0
  • 11. Chart 2:age This shows that majority of my respondents belong to 18-30 age group with 70.9%. 20% belong to 30-45 age group, 7.3% are below 18 and 1.8% are above 45. Table 3:income Frequency Percent Valid Percent Cumulative Percent Valid below 25000 1 1.8 1.8 1.8 25000-40000 3 5.3 5.5 7.3 40000-60000 16 28.1 29.1 36.4 above 60000 35 61.4 63.6 100.0 Total 55 96.5 100.0 Missing System 2 3.5 Total 57 100.0 Chart 3 : income
  • 12. 63.6% of the respondents’ monthly family income is greater than 60000. Income of 29.1% of respondents lies between 40000 to 60000, 5.5% lies between 25000 to 40000, 1.8% earn below 25000. Table 4:The orders are delivered in time. Frequency Percent Valid Percent Cumulative Percent Valid strongly disagree 3 5.3 5.5 5.5 Disagree 7 12.3 12.7 18.2 Agree 28 49.1 50.9 69.1 strongly agree 17 29.8 30.9 100.0 Total 55 96.5 100.0 Missing System 2 3.5 Total 57 100.0 Chart 4: order delivery 50.9% agree that Amazon delivers its order in time. 30.9% strongly agree to it. 12.7% disagree and the rest strongly disagree. Table 5:Provides quick response to queries. Frequency Percent Valid Percent Cumulative Percent Valid strongly disagree 2 3.5 3.6 3.6 Disagree 9 15.8 16.4 20.0 Agree 32 56.1 58.2 78.2 strongly agree 12 21.1 21.8 100.0 Total 55 96.5 100.0 Missing System 2 3.5
  • 13. Total 57 100.0 Chart 5: query response 58.2% agree that Amazon provides quick response to queries. 21.8% strongly agree to it. 16.4% disagree and 3.6% strongly disagree. Table 6:Provide satisfactory service to customers when a problem occurs. Frequency Percent Valid Percent Cumulative Percent Valid strongly disagree 3 5.3 5.5 5.5 Disagree 2 3.5 3.6 9.1 Agree 41 71.9 74.5 83.6 strongly agree 9 15.8 16.4 100.0 Total 55 96.5 100.0 Missing System 2 3.5 Total 57 100.0 Chart 6 : problem solving
  • 14. 74.5% agree that Amazon solves customers’ problems. 16.4% strongly agree to it, 3.6% disagree and 5.5% strongly disagree . Table 7:Sells high quality product Frequency Percent Valid Percent Cumulative Percent Valid strongly disagree 2 3.5 3.6 3.6 disagree 13 22.8 23.6 27.3 agree 29 50.9 52.7 80.0 strongly agree 11 19.3 20.0 100.0 Total 55 96.5 100.0 Missing System 2 3.5 Total 57 100.0 Chart 7: product quality 52.7% agree that Amazon sells high quality product. 20% strongly agree to it. 23.6% disagree and 3.6% strongly disagree. Chi-Square analysis: This is done to check whether any relationship exists between two variables.  To check dependency between product quality and customer satisfaction. H0 : product quality and customer satisfaction are independent. Ha : product quality and customer satisfaction are dependent. Table 8:Sells high quality product * Satisfies customers' needs. Crosstabulation Satisfies customers' needs. Total
  • 15. strongly disagree disagree agree strongly agree Sells high quality product strongly disagree Count 1 0 1 0 2 Expected Count .0 .1 1.3 .5 2.0 % within Sells high quality product 50.0% 0.0% 50.0% 0.0% 100.0% % within Satisfies customers' needs. 100.0% 0.0% 2.8% 0.0% 3.6% % of Total 1.8% 0.0% 1.8% 0.0% 3.6% Disagree Count 0 1 11 1 13 Expected Count .2 .7 8.5 3.5 13.0 % within Sells high quality product 0.0% 7.7% 84.6% 7.7% 100.0% % within Satisfies customers' needs. 0.0% 33.3% 30.6% 6.7% 23.6% % of Total 0.0% 1.8% 20.0% 1.8% 23.6% Agree Count 0 2 21 6 29 Expected Count .5 1.6 19.0 7.9 29.0 % within Sells high quality product 0.0% 6.9% 72.4% 20.7% 100.0% % within Satisfies customers' needs. 0.0% 66.7% 58.3% 40.0% 52.7% % of Total 0.0% 3.6% 38.2% 10.9% 52.7% strongly agree Count 0 0 3 8 11 Expected Count .2 .6 7.2 3.0 11.0 % within Sells high quality product 0.0% 0.0% 27.3% 72.7% 100.0% % within Satisfies customers' needs. 0.0% 0.0% 8.3% 53.3% 20.0% % of Total 0.0% 0.0% 5.5% 14.5% 20.0% Total Count 1 3 36 15 55 Expected Count 1.0 3.0 36.0 15.0 55.0 % within Sells high quality product 1.8% 5.5% 65.5% 27.3% 100.0% % within Satisfies customers' needs. 100.0% 100.0% 100.0% 100.0% 100.0% % of Total 1.8% 5.5% 65.5% 27.3% 100.0% Table 8.1:Chi-Square Tests
  • 16. Value Df Asymptotic Significance (2- sided) Pearson Chi-Square 42.073 a 9 .000 Likelihood Ratio 22.202 9 .008 Linear-by-Linear Association 14.628 1 .000 N of Valid Cases 55 Chi-square statistic is 42.073, degree of freedom =9. p = 0.000 which is less than 0.05, hence, accept Ha. There is significant association between product quality and customer satisfaction.  To check dependency between problem solving and customer satisfaction. H0 : problem solving and customer satisfaction are independent. Ha : problem solving and customer satisfaction are dependent. Table 9:Provide satisfactory service to customers when a problem occurs. * Satisfies customers' needs. Crosstabulation Satisfies customers' needs. Total strongly disagree disagree agree strongly agree Provide satisfactory service to customers when a problem occurs. strongly disagree Count 1 0 2 0 3 Expected Count .1 .2 2.0 .8 3.0 % within Provide satisfactory service to customers when a problem occurs. 33.3% 0.0% 66.7% 0.0% 100. 0% % within Satisfies customers' needs. 100.0% 0.0% 5.6% 0.0% 5.5% % of Total 1.8% 0.0% 3.6% 0.0% 5.5% Disagree Count 0 2 0 0 2 Expected Count .0 .1 1.3 .5 2.0 % within Provide satisfactory service to customers when a problem occurs. 0.0% 100.0% 0.0% 0.0% 100. 0% % within Satisfies customers' needs. 0.0% 66.7% 0.0% 0.0% 3.6% % of Total 0.0% 3.6% 0.0% 0.0% 3.6%
  • 17. Agree Count 0 0 32 9 41 Expected Count .7 2.2 26.8 11.2 41.0 % within Provide satisfactory service to customers when a problem occurs. 0.0% 0.0% 78.0% 22.0% 100. 0% % within Satisfies customers' needs. 0.0% 0.0% 88.9% 60.0% 74.5 % % of Total 0.0% 0.0% 58.2% 16.4% 74.5 % strongly agree Count 0 1 2 6 9 Expected Count .2 .5 5.9 2.5 9.0 % within Provide satisfactory service to customers when a problem occurs. 0.0% 11.1% 22.2% 66.7% 100. 0% % within Satisfies customers' needs. 0.0% 33.3% 5.6% 40.0% 16.4 % % of Total 0.0% 1.8% 3.6% 10.9% 16.4 % Total Count 1 3 36 15 55 Expected Count 1.0 3.0 36.0 15.0 55.0 % within Provide satisfactory service to customers when a problem occurs. 1.8% 5.5% 65.5% 27.3% 100. 0% % within Satisfies customers' needs. 100.0% 100.0% 100.0% 100.0% 100. 0% % of Total 1.8% 5.5% 65.5% 27.3% 100. 0% Table 9.1:Chi-Square Tests Value Df Asymptotic Significance (2- sided) Pearson Chi-Square 64.821 a 9 .000 Likelihood Ratio 32.709 9 .000 Linear-by-Linear Association 13.626 1 .000
  • 18. N of Valid Cases 55 Chi-square statistic is 64.821, degree of freedom =9. p = 0.000 which is less than 0.05, hence, accept Ha. There is significant association between problem solving and customer satisfaction.  To check dependency between response to queries and customer satisfaction. H0 : response to queries and customer satisfaction are independent. Ha : response to queries and customer satisfaction are dependent. Table 10:Provides quick response to querries. * Satisfies customers' needs. Crosstabulation Satisfies customers' needs. Total strongly disagree disagree agree strongly agree Provides quick response to queries. strongly disagree Count 1 0 1 0 2 Expected Count .0 .1 1.3 .5 2.0 % within Provides quick response to querries. 50.0% 0.0% 50.0% 0.0% 100.0% % within Satisfies customers' needs. 100.0% 0.0% 2.8% 0.0% 3.6% % of Total 1.8% 0.0% 1.8% 0.0% 3.6% Disagree Count 0 2 6 1 9 Expected Count .2 .5 5.9 2.5 9.0 % within Provides quick response to querries. 0.0% 22.2% 66.7% 11.1% 100.0% % within Satisfies customers' needs. 0.0% 66.7% 16.7% 6.7% 16.4% % of Total 0.0% 3.6% 10.9% 1.8% 16.4% Agree Count 0 1 24 7 32 Expected Count .6 1.7 20.9 8.7 32.0 % within Provides quick response to querries. 0.0% 3.1% 75.0% 21.9% 100.0%
  • 19. % within Satisfies customers' needs. 0.0% 33.3% 66.7% 46.7% 58.2% % of Total 0.0% 1.8% 43.6% 12.7% 58.2% strongly agree Count 0 0 5 7 12 Expected Count .2 .7 7.9 3.3 12.0 % within Provides quick response to querries. 0.0% 0.0% 41.7% 58.3% 100.0% % within Satisfies customers' needs. 0.0% 0.0% 13.9% 46.7% 21.8% % of Total 0.0% 0.0% 9.1% 12.7% 21.8% Total Count 1 3 36 15 55 Expected Count 1.0 3.0 36.0 15.0 55.0 % within Provides quick response to querries. 1.8% 5.5% 65.5% 27.3% 100.0% % within Satisfies customers' needs. 100.0% 100.0% 100.0% 100.0% 100.0% % of Total 1.8% 5.5% 65.5% 27.3% 100.0% Table 10.1:Chi-Square Tests Value Df Asymptotic Significance (2- sided) Pearson Chi-Square 39.773 a 9 .000 Likelihood Ratio 18.593 9 .029 Linear-by-Linear Association 13.700 1 .000 N of Valid Cases 55 Chi-square statistic is 39.773, degree of freedom =9. p = 0.000 which is less than 0.05, hence, accept Ha. There is significant association between quick response to queries and customer satisfaction. Factor analysis: We have performed both exploratory factor analysis .It is done to reduce the no. of factors from large no. of variables. Kaiser-Mayor-Olkin (KMO) test is done to check how good the factors are. Bartlett test is done to measure the multivariate normality of the set of distributions.
  • 20. Communality (h2 ) shows the percentage of variation explained by each variable. Table 11:KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .775 Bartlett's Test of Sphericity Approx. Chi-Square 820.998 Df 325 Sig. .000 KMO = 0.775, which is greater than 0.5. So, variables are adequate to perform factor analysis. Bartlett test, p = 0.000, which is less than 0.05. Data doesn’t produce any identity matrix. Table 12:Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative % 1 9.588 36.876 36.876 9.588 36.876 36.876 4.268 16.416 16.416 2 1.930 7.424 44.300 1.930 7.424 44.300 3.874 14.901 31.317 3 1.673 6.435 50.735 1.673 6.435 50.735 3.276 12.600 43.916 4 1.551 5.964 56.699 1.551 5.964 56.699 1.920 7.386 51.302 5 1.292 4.971 61.669 1.292 4.971 61.669 1.714 6.593 57.895 6 1.180 4.538 66.207 1.180 4.538 66.207 1.582 6.084 63.979 7 1.118 4.298 70.505 1.118 4.298 70.505 1.447 5.565 69.544 8 1.009 3.880 74.385 1.009 3.880 74.385 1.259 4.841 74.385 9 .851 3.273 77.658 10 .798 3.069 80.726 11 .641 2.464 83.191 12 .596 2.291 85.482 13 .569 2.188 87.670 14 .489 1.882 89.552 15 .456 1.753 91.305 16 .428 1.648 92.952 17 .365 1.403 94.355 18 .333 1.280 95.635 19 .250 .963 96.598 20 .222 .855 97.453 21 .166 .639 98.092
  • 21. 22 .139 .533 98.625 23 .122 .469 99.094 24 .099 .379 99.473 25 .083 .321 99.794 26 .054 .206 100.000 Extraction Method: Principal Component Analysis. Under total variance explained eigen values 9.588, 1.930, 1.673, 1.551, 1.292, 1.180, 1.118, 1.009 are greater than 1. Hence 8 factors are derived. Initially , Factor 1 explains 36.876%. Factor 2 explains 7.424%. Factor 3 explains 6.435%. Factor 4 explains 5.964%. Factor 5 explains 4.971%. Factor 6 explains 4.538% Factor 7 explains 4.298% Factor 8 explains 3.880% After iterations, Factor 1 explains 16.416%. Factor 2 explains 14.901%. Factor 3 explains 12.6%. Factor 4 explains 7.386%. Factor 5 explains 6.593%. Factor 6 explains 6.084% Factor 7 explains 5.565% Factor 8 explains 4.841% Altogether they explain 74.385%.
  • 22. Table 13:Rotated Component Matrix a Component 1 2 3 4 5 6 7 8 Product information provided on the website are relevant. .163 .523 .380 .346 -.012 -.023 .384 .167 Amazon offers good mix of brands in all product categories. .373 .342 .493 .119 -.016 .363 .063 -.187 Prices are higher. .015 -.058 .001 .082 .806 .191 .334 .048 Provide discounts. .295 .056 .673 .236 -.139 -.288 -.127 -.063 Provides extra discount coupons to regular customers. .328 .217 .707 -.118 -.020 -.062 .151 .057 Latest offers are advertised widely. .139 .561 .594 -.034 .151 .307 -.048 -.123 Provide notifications to customers about new arrivals based on customers' past activity. .168 .397 .498 .423 .172 .015 -.271 .090 Provide alternatives to customers seeking a particular type of product. -.010 .494 .416 .372 -.235 -.257 .067 -.088 Personal informations such as credit card no., home address etc are kept secured. .275 .378 .243 .587 .029 -.011 -.271 -.001 I order at least once in three months. .135 .109 -.021 .783 -.050 .151 .178 .090 The orders are fulfilled correctly. .526 -.049 .506 .378 -.071 .012 -.130 .299 You can track your order accurately. .750 .127 .139 .250 -.407 -.037 .014 -.066 The orders are delivered in time. .669 .406 .140 .146 .043 .178 .159 -.025 Provides quick response to querries. .579 .465 .146 .245 .205 -.041 .206 -.199 Provide satisfactory service to customers when a problem occurs. .373 .712 .116 .237 .101 -.055 .123 .026 Good navigation speed. .567 .489 .285 -.047 .117 -.257 .163 .295
  • 23. Products are authenticated online. .371 .199 .557 .070 -.297 -.035 .257 .145 User interface such as colour and graphics used are attractive. .379 .633 .200 -.054 -.230 .141 -.027 .286 Provides message area to customers for comments and suggestions. .264 .875 .099 .149 -.043 .133 .024 .031 Satisfies customers' needs. .704 .349 .174 .006 -.214 -.009 .016 .016 You get the exact product as you see online. .680 .225 .354 .042 .236 -.113 -.051 -.044 Sells high quality product .606 .086 .400 .172 .095 .203 -.059 .023 Picks up items to be returned with minimum hassle -.054 -.099 -.014 -.028 -.082 .014 -.852 .109 offers clear return policy and guarantee .046 -.086 -.004 -.098 -.133 -.048 .095 -.889 site is available 24x7 .001 .082 -.092 .098 -.064 .929 -.025 .070 options to filter brand, price,size etc. -.036 .059 -.078 -.094 .643 -.285 -.156 .109 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 14 iterations. Factor 1 You can track your order accurately= 0.750 Satisfies customers' needs= 0.704 The orders are delivered in time.= 0.669 You get the exact product as you see online. = 0.680 Group name- Reliability .Factor 2 Provide message area to customers for comments and suggestions. = 0.875 Provide satisfactory service to customers when a problem occurs = 0.712 Provide quick response to queries. = 0.579 Group name- Responsiveness
  • 24. Factor 3 Provide discounts. = 0.707 Provides extra discount coupons to regular customers.= 0.673 Latest offers are advertised widely = 0.594 Group name- Providing discounts Factor 4 Provide notifications to customers about new arrivals based on customers' past activity. = 0.423 The orders are fulfilled correctly.= 0.378 Provide alternatives to customers seeking a particular type of product. = 0.372 Group name- Personalisation Factor 5 Prices are higher.= 0.902 Products are authenticated online. = 0.251 Group name- Guarantee Factor 6 Site is available 24x7 = 0.929 Options to filter brand, price, size etc. = 0.285 Group name – Website Operations Factor 7 Picks up items to be returned with minimum hassle = 0.852 Product information provided on the website are relevant= 0.384 Personal information such as credit card no., home address etc. are kept secured. = 0.271 Group name - Trust Factor 8 Good navigation speed = 0.295 User interface such as colour and graphics used are attractive. = 0.286
  • 25. Group name - Website design Communalities Product information provided on the website are relevant. = 0.7402 Amazon offers good mix of brands in all product categories. = 0.6842 Prices are higher. = 0.8103 Provide discounts. = 0.7215 Provides extra discount coupons to regular customers. = 0.6987 Latest offers are advertised widely. = 0.8225 Provide notifications to customers about new arrivals based on customers' past activity. = 0.7241 Provide alternatives to customers seeking a particular type of product. = 0.6891 Personal information such as credit card no., home address etc are kept secured. = 0.6965 I order at least once in three months. = 0.7087 The orders are fulfilled correctly. = 0.7894 You can track your order accurately. = 0.832 The orders are delivered in time. = 0.7127 Provides quick response to queries. = 0.7585 Provide satisfactory service to customers when a problem occurs. = 0.7447 Good navigation speed. = 0.8373 Products are authenticated online = 0.6689. User interface such as colour and graphics used are attractive. = 0.7425 Provides message area to customers for comments and suggestions. = 0.8884 Satisfies customers' needs. = 0.6941 You get the exact product as you see online. = 0.7131 Sells high quality product = 0.6184 Picks up items to be returned with minimum hassle = 0.7584 offers clear return policy and guarantee = 0.8384 site is available 24x7 = 0.8974 options to filter brand, price, size etc. = 0.5506 Correlation Analysis: It was done to check how strongly two variables are related to each other.  Correlation between tracking of orders and delivery of orders in time. H0 : There is no correlation between tracking of orders and delivery of orders. Ha : There is correlation between tracking of orders and delivery of orders.
  • 26. Table 14:Correlations You can track your order accurately. The orders are delivered in time. You can track your order accurately. Pearson Correlation 1 .622** Sig. (2-tailed) .000 N 55 55 The orders are delivered in time. Pearson Correlation .622** 1 Sig. (2-tailed) .000 N 55 55 **. Correlation is significant at the 0.01 level (2-tailed). p = 0.000 which is less than 0.05, hence reject null hypothesis. Thus, tracking and delivery of orders are correlated. Correlation coefficient is 0.622 i.e. positive correlation. There is moderate degree of correlation.  Correlation between providing response to queries and satisfying the customer by solving the query H0 : there is no correlation between providing response to queries and satisfying the customer by solving the query Ha : there is correlation between providing response to queries and satisfying the customer by solving the query Table 15:Correlations Provides quick response to queries. Provide satisfactory service to customers when a problem occurs. Provides quick response to queries. Pearson Correlation 1 .621**
  • 27. Sig. (2-tailed) .000 N 55 55 Provide satisfactory service to customers when a problem occurs. Pearson Correlation .621** 1 Sig. (2-tailed) .000 N 55 55 **. Correlation is significant at the 0.01 level (2-tailed). p = 0.000 which is less than 0.05, hence reject null hypothesis. Thus, providing quick response to queries and satisfying the customer by solving their queries are correlated. Correlation coefficient is 0.621 i.e. positive correlation. There is moderate degree of correlation.  Correlation between product quality, delivery time and customer satisfaction H0: Product quality, in-time delivery and customer satisfaction are not correlated. Ha: Product quality, in-time delivery and customer satisfaction are correlated. Table 16:Correlations Satisfies customers' needs. The orders are delivered in time. Sells high quality product Satisfies customers' needs. Pearson Correlation 1 .532** .520** Sig. (2-tailed) .000 .000 N 55 55 55 The orders are delivered in time. Pearson Correlation .532** 1 .461** Sig. (2-tailed) .000 .000 N 55 55 55 Sells high quality product Pearson Correlation .520** .461** 1 Sig. (2-tailed) .000 .000 N 55 55 55 **. Correlation is significant at the 0.01 level (2-tailed). p = 0.000 which is less than 0.05, hence reject null hypothesis. Customer is satisfied if orders are delivered in time and product quality is high.
  • 28. Correlation co-efficient between product quality and customer satisfaction = 0.520 (moderate correlation) Correlation coefficient between product quality and order delivery = 0.461 (low correlation) Correlation coefficient between order delivery and customer satisfaction = 0.532 (moderate correlation)  Correlation between price and customer satisfaction. H0: no correlation between price and customer satisfaction Ha: correlation exists between price and customer satisfaction Table 17:Correlations Satisfies customers' needs. Prices are higher. Satisfies customers' needs. Pearson Correlation 1 -.146 Sig. (2-tailed) .287 N 55 55 Prices are higher. Pearson Correlation -.146 1 Sig. (2-tailed) .287 N 55 55 p = 0.287, which is greater than 0.05, hence accept null hypothesis.
  • 29. Findings and Suggestions Thus, 8 important factors were derived and they explained 74.385% of e-service quality of amazon based on customers’ perception. The most important e-service quality dimension came out to be Reliability (variance explained 16.416%) and the least important came out to be Website design(variance explained 4.841%) . Summing up the results it seems that the e-service quality consists of eight dimensions i.e. responsiveness, website design, reliability, personalisation, trust, website operation, providing discounts, guarantee. Responsiveness describes how often an online store voluntarily provides services to customers. It includes statements such as providing message areas to customers for comments and suggestions and queries, providing quick response to queries and solving the queries, providing relevant product information, advertising widely. Trust is defined as customers’ willingness to accept online transaction based on their positive expectation to online store behaviour. It includes securing personal information such as credit card no., home address etc., selling high quality product, suggesting alternatives to customers seeking a particular type of product. Due to trust customers’ buying frequency is affected. Reliability refers to fulfilling orders correctly, delivering the orders in time, providing the exact product we see online. Personalisation refers to how online store provides information to particular customers. Providing discounts includes providing extra discounts to regular customers and providing notifications based on customers’ past activity. Website design refers to attractive user interface, navigation speed and providing online guarantees. Website operations refers to availability of site to operate and how to filter through brands, size, price. Guarantee refers to authentication of products available online. We have performed chi-square test to check whether a relationship exist between the variables and then performed correlation analysis between those variables and found that moderate degree of correlation exist between problem solving and providing response to queries, tracking of order and in-time delivery. Customer satisfaction depends on quality of product, delivery time (multiple correlation analysis). Suggestions  Should increase their problem solving and query responding process to increase customer satisfaction.  Should sell products that are authenticated. Guarantee plays an important role.  Should provide exciting discounts and offers to attract customers.
  • 30. Conclusion Our findings show that e-service quality form customers’ point of view is an eight dimensional construct i.e. comprises of five factors. They are responsiveness, reliability, personalisation, trust, website design, website operation, providing discount, guarantee. Responsiveness describes how often an online store voluntarily provides services to customers. It includes statements such as providing message areas to customers for comments and suggestions and queries, providing quick response to queries and solving the queries, providing relevant product information, advertising widely. Trust is defined as customers’ willingness to accept online transaction based on their positive expectation to online store behaviour. It includes securing personal information such as credit card no., home address etc., selling high quality product, suggesting alternatives to customers seeking a particular type of product. Due to trust customers’ buying frequency is affected. Reliability refers to fulfilling orders correctly, delivering the orders in time, providing the exact product we see online. Personalisation refers to how online store provides information to particular customers. It includes providing extra discounts to regular customers and providing notifications based on customers’ past activity. Website design refers to attractive user interface, navigation speed and providing online guarantees. The three other factors identified in our research were website operation, providing discount, product guarantees.
  • 31. Appendices Appendix A: List of tables Table no. Table name Page no. 1 Gender 10 2 Age 10 3 Income 11 4 Order delivery 12 5 Query response 12 6 Problem solving 13 7 Product quality 13 8 Chi-square between product quality and customer satisfaction 14 8.1 Chi-square test 15 9 Chi-square between problem solving and customer satisfaction 17 9.1 Chi-square test 17 10 Chi-square between query response and customer satisfaction 18 10.1 Chi-square test 19 11 KMO & Bartlett test 19 12 Total Variance Explained 20 13 Rotated component matrix 21 14 Correlation between tracking of orders and delivery of orders in time. 25 15 Correlation between providing response to queries and satisfying the customer by solving the query 26 16 Correlation between product quality, delivery time and customer satisfaction 27 17 Correlation between price and customer satisfaction. 18
  • 32. Appendix B: List of charts Chart no. Chart name Page no. 1 gender 10 2 age 11 3 income 11 4 Order delivery 12 5 Query response 13 6 Problem solving 13 7 Product quality 14
  • 33. References  Xi Zhang, Yu Thang, Customer perceived e-service quality in online shopping, Lulea university of technology.  Jurgita Zembelyte, the instrument for evaluating e-service quality, 20th international scientific conference economics and management-2015  Farnaz Beheshti Zavareh, Mohd Shoki Md Ariff, Ahmad Jusoh, Norhayati Zakuan, and Ahamad Zaidi Bahari, E-Service Quality Dimensions and Their Effects on E- Customer Satisfaction in Internet Banking Services, The 2012 International Conference on Asia Pacific Business Innovation and Technology Management  Shin-Yuan Hung, Charlie C. Chen, Ning-Hung Huang, AN INTEGRATIVE APPROACH TO UNDERSTANDING CUSTOMER SATISFACTION WITH E-SERVICE OF ONLINE STORES, Journal of Electronic Commerce Research, VOL 15, NO 1, 2014  Saeedeh Asadpoor1, Abolfazl Abolfazli2, Effect of Electronic Service Quality on Customer Satisfaction and Loyalty Saderat Bank’s Customers