E-COMMERCE & CUSTOMER SATISFACTION; ASTUDY OF jumia.com & konga.com

CHAPTER ONE

INTRODUCTION

• 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 cultural networks. 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 shopping behaviour. 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.

• Statement of The Problem

Despite the growth of internet users in Nigeria, much research work has not been done in accessing the Business to Customer (B2C) e-commerce relationship. Presently, many online shopping sites are thriving in Nigeria, servicing thousands of searcher every week. Some of  them are www.234world, www.Xtaples.net, www.booksng.com, www.orderbay.com., www.jumia.com., and www.kona.com., some of these site make the transaction process so easy that buyers forget about the open market. A site like konga.com allows buyer to pay to a designate bank account after making online purchase. The items purchase is then shipped to the buyer at the speed of light. jumia.com allows individual to receive money online and thereafter use it to pay for purchase made. Considering all these, it is expected that the number of people engaging in e-commerce activity will increase. E-commerce has however not been widely tapped into in Nigeria. Many Nigeria still treat its benefit with deep scepticism. They do not believe that e-commerce transaction could be successfully conducted. Customers do not have trust on the delivery system the payment style and the facelessness of e-commerce activities. Therefore, there is need for online marketing organization in Nigeria to understand what satisfaction individual and e-commerce and customer satisfaction using jumia.com and konga.com, which are some of the leading online shops in Nigeria.

• Objective of The Study

The general objective of this study is to analyse e-commerce and customer satisfaction, while the other objective are as follows.

• To identify the factor responsible for consumer re-order purchase in jumia.com and konga.com;
• To determine cause of consumer loyalty to the online products of jumia.com and konga.com;
  • Research Question

In comparatively analysing e-commerce and service delivery the following question are pertinent:

• What are the factor responsible for consumer re-order purchase in jumia.com and konga.com?
• What are the causes of consumer loyalty to the online product of JUMIA.com and KONGA.com?
  • Research Hypotheses

Ho:      There is no factor responsible for consumer re-order purchase in jumia.com and konga.com

H1:      There are factors responsible for consumer re-order purchases in jumia.com and konga.com

• significance of the study

This study became extremely important because of observed knowledge gap on e-commerce and its impact on customer satisfaction. This has made it apparently necessary to carry out this study. This study is therefore of significant to the following user groups, managers of marketing organization in Nigeria would benefit from the study as recommendation would serve as necessary data for management strategic decision making, finding obtain from this study shall be of assistance to the Nigeria consumer public as recommendation would serve as a source of information for purchase decision making, the online shops in Nigeria would benefit from it as finding would assist them in formulating policies to counter competition in the sector. The study would also be of benefit to entrepreneurs who wish to venture into online market in Nigeria.

This study would be of importance to academics who are involve in knowledge transfer as findings would serve as research evidence.

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