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A Case Study of Consumer Perceptions in Saudi Arabia, Trust, Loyalty, Satisfaction of Customer in E-Commerce

Category: Economics Paper Type: Case Study Writing Reference: APA Words: 3400

Introduction of Satisfaction of Customer in E-Commerce

        The web development along with the internet has been overgrowing and change the general purpose of the protection to successful applications. E-commerce came as one of the fastest improvements of information technology towards necessary modifications in a method to create more efficient and effective businesses’ operations. The progress of e-commerce offers many benefits to the companies as well as the industries. The advantages added the distribution of information, enhancement, and grow of innovative technologies, support the marketing and also distribute products and services and collaboration among the supply chain. E-commerce also creates a prospect to promote the globalization of international marketplaces, specifically online-based industries. Along with the growing of Internet entrance and the application of e-commerce services from the public is thriving worldwide as well as in KSA. The late current estimation of e-commerce earnings in Saudi Arabia mentioned as SR12 billion in the year of 2010, which made it the biggest in the Arab globe (Martínez-López, Anaya, Aguilar, & Molinillo, 2015).

        In a worldwide stage, customer loyalty is mostly and intensely associated with the productivity and long-term development of a company. The little growths in customer loyalty will able to enhance the profit for the company profoundly. This explains how loyal customers will visit the websites that have become their favorite ones and will spend more money if compare with non-loyal customers. Research even mentioned that 35% - 40% of sales incomes from e-commerce website mostly arrive from loyal customers. Therefore, it is common if customer loyalty is considered as an essential asset for e-retailer businesses. Another research also detailed that a massive cost of getting new customers online can lead to nonprofit customer interactions for the duration of more than three years. Thus, it is claimed to be essential to fix the main backgrounds or aspects which able to create customer loyalty (Eid, 2011).

        Saudi Arabia has a huge economy which based on the open service. But, the country still has not experienced the most significant advantages from the application of Internet and e-commerce technology system. Even though the practice of Internet at the entire stages has growth in the Arab world, e-commerce seems not showing any progress with a similar speed. The fact that Internet scam incidents are growing at a warning stage has made most companies in the Arab region which practicing e-commerce should able to secure the transmission of private information. The consequence that growth increasingly is that the awareness from the customers about the risk they might get from using e-commerce such as data theft or hacking has made them feel afraid, uncomfortable and distrust e-commerce companies (El-Gohary, 2013).

        Trust as a central aspect in e-commerce has progressively identified in educational and expert societies as the important noticeable aspect which influences the perception to e-commerce implementation. In e-commerce businesses, the opinions from the consumers on the legality of the companies are compulsory due to the transmission of assurance in the electronic type of the real world (Scheinbaum, 2012). However, practical research in this zone goes down in inconsistent perceptions of trust itself. The research gives the impact of reinforcing assurance in the growth of e-commerce in diverse cultural perspectives and structures.  To recognize the significance of customer loyalty in e-commerce, many revisions have practically observed customer loyalty, trust, and satisfaction for B2C (business-to-customer) e-commerce facilities in several countries. For the case of Saudi Arabia, the research was conducted to define whether consumer border value, info quality, confidentiality, and safety risk are the straight background of both consumer satisfaction as well as consumer trust, and unintended backgrounds of loyalty in B2C e-commerce (Oliver, 2014).

Methodology of Satisfaction of Customer in E-Commerce

        Fishbein and Ajzen (1975) release a Theory of Reasoned Action (TRA) which details the interactions between intentions, behaviors, and attitudes. The TRA explains that people create logical decisions based on the information that they get, and the most significant instant factor of an individual’s behavior determines which is the mindful demonstration of willingness to make a specified behavior. For that reason, information feature delivered by the websites in B2C e-commerce able to make a significant impact with the purpose of buying. Likewise, if the information given by the website consider as consistent and precise, then it might grow the trust and satisfaction from the online consumers which able to make the consumer to their first purchase. Consequently, the trust and satisfaction of consumer in e-commerce business could influence a total loyalty from the consumer (Fishbein & Ajzen, 2011).

        Expectation-Confirmation Theory (ECT) studies on the satisfaction of the consumer and repurchase manners. The ECT theory explains that consumers initially practice first anticipation former to buy, and then create opinions on the presentation of the spent product or service afterward a duration of early ingestion. Then, consumers would choose on their stage of satisfaction from the level to which their anticipation is complete throughout relating the real presence of the product or service in contradiction of their early expectation of the presentation. Thus, consumers with great satisfaction will shape repurchasing purposes. In the same way, when consumers have definite their expectations that a firm of e-commerce is reliable, they would become interested in repurchasing on one e-commerce company (Musso, 2014).

        The factors that influence the trust, loyalty, and satisfaction from the consumer to the e-commerce business are mentioned such as navigation design, visual design, and also information design. These consumer line design variables are the main backgrounds to website satisfaction and trust in the entire cultures. Consumer trust describes as a set of trust held by the consumer regarding several features of e-commerce companies, as well as the potential manner of the e-commerce supplier in the forthcoming days. Trust motivates for online purchasing and influences consumer behavior towards purchasing on e-retailers. For several years, the Arab world has struggled with being insulated from the worldwide online transaction that affects the financial development and progress in these countries. To a considerable level, Saudi Arabia experiences similar issues which influence the acceptance of e-commerce technology as well.

           For several companies in the Arab world which transfer private information throughout the Internet, it is essential to get the assurance of consumers to its company website, since consumers are reluctant to give information unprotected to threats as personality theft. There is a wide-ranging unwillingness to deliver private info like passwords, credit cards or further private info for fright that somebody might interrupt or even the website which they deliver the data interferes detrimental determinations. The rejection of businesses has converted a responsibility for e-commerce. Rendering to research on this matter, about 21 % of Internet consumers do not want to purchases on time due to they were worried about the data safety and robbery of credit card info (IBP, 2015).

        In general, loyalty has always been described as the recurrence buying occurrence or the similar capacity of acquiring the same brand. One of research describes consumer loyalty as an intensely alleged obligation to re-purchase or re-shop at a favored product or service steadily for the upcoming days. Thus, triggering similar dull brand or acquiring a set of the same brand, even though situational effects along with advertising give the effort, it will have the perspective to root converting performance. In the term of e-commerce, loyal consumers are measured tremendously appreciated. Nowadays, e-retailers are looking for information on what method to create consumer loyalty. Loyal consumers not just necessitate further information themselves, but they also attend as an information foundation for additional consumers. Constructing consumer loyalty is one of the initial trials for B2C e-commerce. Numerous backgrounds of consumer loyalty have been planned. Consumer trust and satisfaction have been carried frontward as a requirement for benefaction manners and the growth of long-term consumer relations. The research initiate that services value and retailer’s guarantee to the online consumers in Saudi Arabia, support to create satisfaction and trust, thereby enhancing consumer loyalty. The current research expects that both consumer trust along with consumer satisfaction will associate definitely with consumer loyalty in Saudi Arabia (AlGhamd, Nguyen, Nguyen, & Drew, 2012).

        Obviously, in e-commerce set up, the whole companies which concern on it have to think through and estimate e-marketing along with e-purchasing prospects comprehensively. A fundamental issue is defining how to design a website which is eye-catching for the consumers when they first view the site and also must able to motivate and inspire the customers to visit again. To make sure consumers will give a long-term obligation to one online e-commerce website, a lot of online businesses over and over again figure out further than satisfaction to increasing trust from the consumers to lessen the apparent risk of utilizing the service. Possibly, faith is likewise viewed as a fundamental aspect of vital importance in the practice of creating and preserving relations in online companies. The e-commerce companies also have to experience issues in growing the public’s trust to use e-commerce. They must able to make the customers feel that the data that they collect is private and will not sell it to other companies or persons. The consumers will have to give their trust that online transactions in e-commerce are safe and secure. The study recommends that above than 75 percent of online consumers never accomplished or never really purchase anything from e-commerce. Instead, the consumers use the company websites in e-commerce to search and study certain products or services before they will later on making their purchase with a stopover to a store location or by phone. Nonetheless, the theoretical contextual and the experimental trigger for these matters to arrive regularly from the advanced countries (Management Association, 2015).

Discussion of Satisfaction of Customer in E-Commerce

        The outcomes deliver certain funding which in specific, they back up the principle that in the culture of Saudi Arabia, consumer interface value and information value of e-commerce services are significant factors of e-commerce consumer loyalty along with consumer satisfaction in B2C e-commerce marketplaces. There are a lot of methods in which the Arab countries could apply to fight the security matters that occur in the e-commerce company. The persons of the e-commerce company must confirm the privacy of the information, so the consumers are able to deliver their information devoid of several frights of information theft. These methods will also make sure the e-commerce companies that valuable information is secure and kept private. With this method, they could assure that the company will not grieve any cost and will get the profit by getting the trust of the consumers. Understanding the consumer trust has a worth countless, and outgoings on technology desirable to shelter them is slight if compared with the benefits that notes and the general expenditures of an e-commerce company. If we want to evaluate these issues, advance the security of e-commerce website using the latest technology, or further procedures are important to some e-commerce companies which aim to prosper through the Internet world. The steady consumers of a site and the consumers who make their initial visit will be greatly improved if the e-commerce company applies a safety provider who’s known as the best and furthermost self-assurance inspiring (Association, 2013).

        The research presents that the satisfaction of consumers is consumer loyalty’s straight predecessor in B2C e-commerce. It is also shown by the research that trust on e-commerce organization is not a strong element in customer loyalty. That is, trusting the service of e-commerce business is actually a liberated concept of customer loyalty in the culture of KSA. The description of a weak connection trust and loyalty might that the service trust of e-commerce which is considered to be reliant on information safety and confidentiality could be apparent by the online Saudi consumers as a typical and standard part of satisfactory service from e-commerce, which is, nevertheless of how great an online consumer trusts on a website of e-commerce, this would not be able to touch their purpose to keep doing a commercial with that service of e-commerce (Chhabra, 2009).

        On the other hand, information safety, trust, and privacy are significant for effective and active e-commerce services. The researches present that for the consumer in Saudi Arabia to be further loyal and stick to the e-commerce industry, they must be overwhelmed with the consumer interface value and the delivered information on the accessible service or product, order modifications, modified Web pages, and appreciated customer service along with the support offered by the e-commerce company website. The acknowledged explained that a weak connection occurred among loyalty and trust of Saudi B2C online consumers (Al-maghrabi & Dennis, 2010).

        The outcomes deliver a number of back up for the theoretical model existing in Saudi Arabia. In specific, they believe on the principle which mentioned that in the culture of KSA, information quality and interface quality of customers in e-commerce company websites are very important factors of the satisfaction of consumers for e-commerce business along with the consumer loyalty in the e-commerce marketplaces of B2C. These effects are in route with the fact that the consumer interface quality and the quality of information which the e-commerce companies provided, directly influence on the consumer satisfaction of e-commerce. Meanwhile, the research also mentioned that the quality of information service in e-commerce websites does not affect consumer trust in e-commerce (Ciaramitaro, 2010).

        The research also presents that consumer satisfaction is a straight predecessor of the loyalty of the consumer in B2C e-commerce as well. The research also mentioned that higher levels of consumer satisfaction would able to create more loyalty from the consumer. The fact described that the trust of e-commerce service is a fragile factor of consumer loyalty. Which explain as the trust of e-commerce service is considered as a liberated concept or perception of consumer loyalty in the culture of Saudi Arabia. Another explanation of the fragile relationship among consumer loyalty and the trust of e-commerce service might be the fact that service trust of e-commerce is reliant on information security along with confidentiality could be alleged by the online Saudi consumers as an average and standard component of a conventional e-commerce service. So, no matter how much the trust from the online consumer for an e-commerce company website is, it will not be able to influence the consumer objective to retain doing trade with using e-commerce service. However, trust, privacy, and information security are essential for effective and successful services of e-commerce. To make the consumers in Saudi Arabia more truthful and loyal to the business of e-commerce, they must be fascinated with the interface quality of consumer and the delivered information on the presented product or service, order configurations, modified Web pages, appreciated customer service, and other features which offered by the e-commerce company website (Bahaddad, Houghton, & Drew., 2013).

 

Results of Satisfaction of Customer in E-Commerce

        According to the research study we can conclude the findings that some factors such as satisfaction of customers towards the products, loyalty and trust can influence the e-commerce particularly in B2C e-commerce.  Furthermore, research findings also present that in the targeted market of Saudi Arabia trust factor has very minor impact on the customer’s decision to buy from e-commerce websites or online shopping platform. Somehow, it does reduce the need for customer satisfaction and trust. E-commerce websites increases their sales and overall profitability through promoting the customers satisfaction level and trust towards their offered services and products. According to the studies conducted to summarize behavior of Saudi Arabian customers towards e-retailing it is concluded that almost 21% of the customers are preventing the use of online shopping system or e-retailing websites in order to avoid risk factor associated with the cyber theft. Particularly, because of the credit cards as data breaches for credit cards are quite common in the society. Such behavior represent the lack of trust towards online shopping websites. Summarizing all results findings it is clear that trust, loyalty, and satisfaction all are independent variables for the dependent variable of sales of e-commerce websites.  Each factor has significant impact that represents the strength of these variables.  

Conclusion on Satisfaction of Customer in E-Commerce

        It is not easy to get trust, loyalty, and satisfaction from the consumers to use e-commerce in Saudi Arabia. A theoretic study type which assumes the main aspects that persuading the three concepts is settled and statistically authenticated. The recognized main aspects mentioned are the quality of consumer interface, the quality in service information, the view of security issues, along with privacy awareness. The consumer interface quality and also the quality of information on e-commerce websites, both were created to consume a significant affirmative effect on the satisfaction of the consumer. Even though it was created which the consumer interface quality is sturdily connected to the trust of the consumer, but not the same for the information quality. The study also described that both alleged risk of security along with alleged privacy is sturdily connected to the trust of the consumer, but it considers to be inadequately connected to the satisfaction of the consumer.

        Satisfaction of the consumer in e-commerce considers to impact consumer loyalty suggestively and to take the central role of a limited intermediary among every of consumer interface quality and the quality of information and consumer loyalty to build up. On the other hand, the trust from e-commerce consumer was considered to give a weak impact to the loyalty of consumer. The consumer interface quality and the quality of information in e-commerce company websites were indeed given incidentally persuading for the loyalty of e-commerce consumer in Saudi. This matter highlights the significance of the quality of content information service provided by e-commerce companies along with the consumer interface scheme in the progress of e-commerce application. Moreover, the security risk stage and confidentiality as alleged by e-commerce consumers are the most significant matters for consumer trust, and therefore they are considered to be essential to the expansion of B2C e-commerce companies in Saudi Arabia. Likewise, both the alleged security risk and so-called privacy impact consumer satisfaction incidentally. This is due to that trust has become a wide-ranging intermediary part among every of the so-called security risk, alleged privacy, and satisfaction as well. The quality of consumer interface of e-commerce company websites has given the important effect for consumer trust. This point toward that online consumer in Saudi Arabia observe the various e-commerce company websites to be reliable if they are able to deliver the top level of reliability, consistency and also integrity in their consumer interface. This consequently decreases the worries from the consumers around the privacy issue and supports to create online trust headed for e-commerce company websites.

       

References of Satisfaction of Customer in E-Commerce

AlGhamd, R., Nguyen, J., Nguyen, A., & Drew, S. (2012). Factors influencing e-commerce adoption by retailers in Saudi Arabia: A quantitative analysis. International Journal of Electronic Commerce Studies, 83-100.

Al-maghrabi, T., & Dennis, C. (2010). Driving online shopping: Spending and behavioral differences among women in Saudi Arabia. International Journal of Business Science & Applied Management , 30-47.

Association, I. R. (2013). Small and Medium Enterprises: Concepts, Methodologies, Tools, and Applications. Idea Group Inc (IGI).

Bahaddad, A. A., Houghton, L., & Drew., S. (2013). Attracting customer in Saudi Arabia to buy from your business online. International Journal of Business and Management, 65-81.

Chhabra, S. (2009). Integrating E-Business Models for Government Solutions: Citizen-Centric Service Oriented Methodologies and Processes: Citizen-Centric Service Oriented Methodologies and Processes. IGI Global.

Ciaramitaro, B. (2010). Virtual Worlds and E-Commerce: Technologies and Applications for Building Customer Relationships: Technologies and Applications for Building Customer Relationships. IGI Global.

Eid, M. I. (2011). Determinants of e-commerce customer satisfaction, trust, and loyalty in Saudi Arabia. Journal of electronic commerce research, 78.

El-Gohary, H. (2013). ManaE-Marketing in Developed and Developing Countries: Emerging Practices: Emerging Practices. IGI Global.

Fishbein, M., & Ajzen, I. (2011). Predicting and Changing Behavior: The Reasoned Action Approach. Taylor & Francis.

IBP, I. (2015). Saudi Arabia Investment and Business Guide Volume 1 Strategic and Practical Information. Lulu.com.

Management Association, I. R. (2015). Public Affairs and Administration: Concepts, Methodologies, Tools, and Applications: Concepts, Methodologies, Tools, and Applications. IGI Global.

Martínez-López, F. J., Anaya, R., Aguilar, R., & Molinillo, S. (2015). Online Brand Communities: Using the Social Web for Branding and Marketing. Springer.

Musso, F. (2014). Handbook of Research on Retailer-Consumer Relationship Development. IGI Global.

Oliver, R. L. (2014). Satisfaction: A Behavioral Perspective on the Consumer: A Behavioral Perspective on the Consume. Routledge.

Scheinbaum, A. C. (2012). Online Consumer Behavior: Theory and Research in Social Media, Advertising and E-tail. Routledge.

 


 

 

 

 

 

 

 

 

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