E-COMMERCE AND CUSTOMER SATISFACTION: A STUDY OF JUMIA.COM AND KONGA.COM

ABSTRACT
Electronic commerce also known as e-commerce has facilitated the emergence of new marketing strategies and business models in several industries in developing countries, Nigeria inclusive. This study examined E-commerce and customer satisfaction. Users and employees of jumia.com and konga.com served as the study population. The broad aim of the study was to examine the effect of E-commerce on customer satisfaction while other objectives were: to determine causes of consumer re-order purchase in jumia.com and konga.com and to determine causes of consumer loyalty to the online products of jumia.com and konga.com. Analysis of data is based on 120 copies of questionnaire administered to users of jumia.com and konga.com. a total of 50 copies were filled and returned from jumia.com and 55 was filled and returned from konga.com making a total of 105 copies returned while 15 copies were withheld. The formulation hypothesis was tested using chi-square. Result of the study shows that there are factors responsible for customer re-order purchase in jumia.com and konga.com. The study therefore recommends that an online marketing organization should work at adopting policies that would reflect the factors that encourage customers to use online shops. For example, customer want to be sure of adequate security on their online transactions, they want to be sure that their personal identity and information are intact and that there is need for online shops to do lot of advertisement based on the fact that many consumers still do not know the advantages of buying their goods or service online.

1.1 Background of the Study
Electronic commerce also known as e- commerce has facilitated the emergence of new marketing strategies and business models in several industries in developing countries , Nigeria inclusive .significant changes are happening in product retailing with the introduction of online shopping , especially in terms of channel development and coordination, business scope redefinition , the development of fulfilment centre model and core processes, new ways of customer value creation, online partnership and general customers satisfaction . In fact the role of online marketing itself has undergone some significant changes in the last few years in Nigeria (Irene 2004).
The electronic commerce segment of the retail market has witnessed tremendous growth in terms of participation in the Nigeria economy in the few years. According to Johnson (2012) over 100 firms both local and foreign have shown greater interest in the sector alleged to worth $50 billion annually. The industry has no doubt opened doors for the coming generation of young Nigeria entrepreneurs. Electronic commerce industry has no doubt increased in percentage of local content in products and service as well as increased utilization of local capacity.

Ayo, Adewoye and Oni (2011) asserted that the adoption of e-commerce in Nigeria business organization has increased since the users of internet in Nigeria has grown from 0.1% in 2000 to 29.9% of its population in 2014 and still has the potential to grow higher. Tude (2014) also noted that online retail market in Nigeria has significant impacted the nation’s economy. In the same vein, Mary-Anne (2008) affirmed that e-commerce has offered a level playing ground for large businesses, as well as small and medium –scale enterprise (SMEs) to operate in the global market place; and for regional businesses and communities to participate in social, economic and culturalnetworks. Seamlessly across international boundaries, E-commerce refers to the use of communications technology particularly the internet to buy, sell and market goods and service to customers. The internet has brought about a fundamental shift in national economies that are isolated from each other by barriers to cross-border trade and investment; isolated by distance, time zone and language; and isolated by national difference in government regulations, culture and business system (Mohammad, 2004).

A customer is said to be satisfied when product and /or service meet the expectation of the customer. Trust which is a belief that one can rely upon a promise made by another (pavlou, 2003), is an important factor in customer satisfaction. Stewart, Ellis, Johnson and Meyer (2009) define trust in electronic commerce as the subjective probability with which consumers believe that an online transaction with a web retailer will occur in a manner consistent with their expectations. Scholars have identified lake of trust as one of the main reason for consumer’s cynicism toward electronic commerce. In the content of e-commerce, trust believes include the online consumer’s belief and expectation about trust related characteristics of the online sellers (McKnight and Chervanry, 2002).
The online consumers desire the online sellers to be willing and able to act in the consumer’s interest to be honest in transactions (not divulging personal information to other vendor) and to be capable of delivering the ordered goods as agreed. According to Mahmud (2004) the trust factor has significant positive contribution to consumer’s online shoppingbehaviour. jiang, Chen and Wang(2008) argued that consumer trust is a critical enabler of successful online retailing and knowledge is on important factor influencing the level of trust. The work of Gefen(2003) and Al-Dwairi, chapel and feindt(2009), among other presented an integrated trust model with the technology acceptance model for business –to-consumer (B2C) e-commerce .it is very important that customer is content with the product and service provided by the particular internet shop as satisfied customer are likely to be loyal and make repeat purchases which will increase profitably of that particular e-commerce company.

In this study, the concept of satisfaction will be referred in terms of outcome by comparing the prior expectation and the perceived performance for each antecedent factor in order to measure the attitude of the respondent for each of that factor. Many studies have been carried out to investigate the various degree of influence that e-commerce has on business development in Nigeria using different sector of the economy but there seems a dearth of research that has specifically studies the relationship between e-commerce adoption and customer satisfaction using online shop. Based on this, this study takes a comparative analysis of E-commerce and customer satisfaction in jumia.com and konga.com.