Luận văn thạc sĩ the valuation of customer satisfaction and service quality in online purchasing in cambodia

INTRODUCTION AND BACKGROUND OF THE STUDY

Background of the study

This section offers an overview of the research area, focusing on e-commerce and online retailing as crucial components of the industry It also highlights the current e-commerce landscape in Cambodia Additionally, the significance of service quality and its correlation with customer satisfaction is emphasized.

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

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

The rapid growth of global electronics retailers highlights the significant role of both B2B and B2C e-commerce, transcending traditional brick-and-mortar stores While many online visitors primarily seek information rather than making purchases, effective e-CRM (customer relationship management) tools are essential for retailers to thrive in a competitive landscape To differentiate themselves, companies must offer value-added services Although the mid-2000s saw many e-commerce startups fail, understanding the strategies of successful companies can provide valuable insights Ultimately, customer satisfaction remains the lifeblood of any organization, driving its primary goals and success.

In Cambodia, the Internet is primarily utilized in universities for research, while internet stations in cities are mainly used for checking emails and making long-distance calls As a result, electronic commerce is still in its infancy in the country However, there is a strong expectation for steady growth in e-commerce in the near future, marking a new era for Cambodia's digital economy.

To succeed in the online retail sector, it is essential to leverage opportunities while mitigating risks By analyzing successful case studies and identifying key success factors, along with examining the trends of defunct online retailers, businesses can develop effective policies and strategies Numerous studies on global online retail practices highlight the importance of guiding new retailers as they establish their websites Additionally, academic insights on localizing foreign results can assist companies in meeting international standards, particularly in Cambodia.

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

Problem Discussion

Despite the growing reliance on online channels by retailers, many online stores continue to close due to intense competition Understanding customer needs is crucial for success in this environment, prompting companies to shift their focus from products to customer-centric strategies Customer satisfaction plays a vital role in retention, which is particularly challenging in internet-based services where switching costs are minimal As noted by Khalifa and Liu (2003), the ease of switching service providers underscores the importance of prioritizing customer satisfaction Furthermore, Van Riel, Lijander, and Jurriensin (2001) highlight the significance of studying the factors influencing customer satisfaction, given the high costs associated with acquiring new customers and the notable turnover rates in online services.

Customer satisfaction is crucial for the success of an organization in building strong customer relationships, making its measurement essential Total Quality Management (TQM) emphasizes the importance of customer satisfaction by promoting a quality-focused management approach that involves all members of the organization This strategy aims for long-term success by ensuring benefits for both customers and the organization, ultimately contributing positively to society.

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

• Improving the reputation and image of the company;

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

• Reducing the marketing costs and lower transaction costs;

• Reducing the costs related to product / service failures;

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

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

To ensure the longevity and profitability of online retailers, prioritizing customer retention is essential Customer satisfaction significantly influences loyalty, and a key factor in achieving this satisfaction is the quality of service provided.

Research Question

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

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

1 Which Service Quality factors impact on online purchasing through Cambodian perspective?

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

Demarcation

This study aims to identify the key service quality dimensions that significantly impact customer satisfaction in online purchasing within Cambodia, as researchers seek to narrow down the numerous choices related to the problem areas.

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

Disposition of the thesis

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

Chapter 1: This chapter will present the background of the study Chapter 2: This chapter will present theories related to the topic will be presented Chapter 3: This chapter will explain and justify our choices of methodology that will beused in order to conduct our thesis

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

LITERATURE REVIEW

Customer Satisfaction

Early satisfaction research defines satisfaction as an evaluative judgment made after a purchase, focusing on the comparison between pre-purchase expectations and actual product performance Researchers widely view satisfaction as an attitude shaped by customers' perceptions of their experiences relative to what they anticipated.

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

Table 1Table 2.1: Definition of Customer Satisfaction

Table 2.1: Definition of Customer Satisfaction

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

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

2.1.2 Techniques to measure customer satisfaction

Market research techniques to measure customer satisfaction which are:

• The survey methodologies of customer satisfaction;

• Focus groups to research the issue of customer satisfaction

• The standardized package for monitoring customer satisfaction

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

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

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

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

E-service quality

Customer perceived service quality encompasses two dimensions: process (functional quality) and outcome (technical quality) Process quality refers to "how" a service is delivered, while outcome quality pertains to "what" customers receive from the service For online services, it's essential to extend the traditional service concept to include a fourth factor, the user interface Differentiating between facilitating and supporting services can be challenging, leading to the term "supplementary services" to describe those not part of the core service Facilitating services, such as search capabilities and secure payment methods, enhance the core offering, while supporting services, like book reviews and personal recommendations, add value Additionally, related products, such as specialized financial services or online medicine purchases, can be offered through a portal, enriching the overall customer experience.

Online trading sites involve a complex process that can be broken down into sub-processes like information retrieval and order placement Each service component can be assessed based on its process and outcome, with various quality determinants For instance, customers might appreciate the responsiveness of a search engine but feel let down by the reliability of its results Overall customer satisfaction with a website is influenced by the success or failure of these interactions, although users typically perceive the service as a whole rather than analyzing each sub-process in detail during a single visit This holistic view also applies to ongoing customer e-service relationships Research on critical incidents indicates that while positive experiences are infrequent, negative experiences often arise from process failures, such as lost orders.

E-service quality can be assessed through specific dimensions, with the SERVQUAL model (Parasuraman et al., 1988) identifying five key evaluation criteria: tangibility, responsiveness, reliability, assurance, and empathy.

Research by Parasuraman and Grewal (2000) indicates the need to explore how the five service quality dimensions shift when customers engage with technology instead of service personnel Given that these dimensions were originally designed for interpersonal interactions, they must be redefined for e-service contexts For instance, "tangibility" could be reinterpreted as the user interface, while "responsiveness" might encompass the company's promptness in addressing customer requests and confirming orders "Reliability" could focus on timely delivery, accurate information, and error-free links "Assurance" would pertain to the security of online transactions and the company's policy on personal data usage, reflecting overall trustworthiness, which is crucial for e-service satisfaction Lastly, "empathy" could be viewed as the level of personalized communication and the service provider's understanding of individual customer needs.

SERVQUAL Gaps Model

According to Parasuraman et al (1985; 1988), consumer perceptions of quality are influenced by the gap between performance and expectations When performance surpasses expectations, the perceived quality increases; conversely, when performance falls short of expectations, perceived quality declines.

The SERVQUAL model is built on the concept of performance-to-expectations gaps, which are key attributes consumers use to assess service quality This framework identifies five critical gaps that hinder the provision of exceptional service, with this study specifically examining Gap 5.

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

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

Translation of Perceptions into Service Quality

Measuring e-Service Quality

Customer satisfaction is essential for the success of both traditional and online businesses, particularly in the competitive e-commerce landscape To maintain growth and market share, Internet companies must prioritize understanding customer satisfaction, as it is vital for fostering long-term client relationships The rise of customer satisfaction surveys in financial institutions over the past five years highlights this importance Consequently, gaining insights into the factors that influence Web-customer satisfaction is crucial for e-commerce success Additionally, the increasing emphasis on research in this area is driven by the need for sustained profitability in both dotcom and traditional "Net-enhanced" companies.

Customer satisfaction in e-commerce refers to the evaluation of a customer's experience based on their expectations versus actual performance When perceived performance falls short of expectations, dissatisfaction arises; conversely, exceeding expectations leads to customer satisfaction Understanding this dynamic is crucial for enhancing e-commerce success.

Dimensions and determinants of Service Quality

Parasuraman et al (1985; 1988) explored how customers evaluate service quality, identifying ten key determinants that can effectively measure this aspect of service.

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

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

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

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

(5) Credibility (trust worthiness and honesty);

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

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

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

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

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

Credibility plays a crucial role in e-commerce, as customers often rely on external sources, such as advertising or word of mouth, before engaging in transactions Ensuring security is paramount during online transactions, with reputable sites clearly indicating their secure status to protect sensitive information like credit card details Additionally, understanding customer needs and having access to relevant e-commerce market insights are vital factors that influence successful online transactions.

A website must be consistently accessible, unlike traditional businesses with set hours To enhance user experience, websites utilize cookies to recognize returning customers and prompt new visitors to register their email addresses This allows businesses to send tailored information and offers based on previous purchases, aiming to fulfill customer needs similarly to personal interactions in a business-to-business environment However, online communication can be challenging, as interactions are often one-sided, with websites primarily delivering information Direct customer engagement typically occurs through provided phone numbers or email addresses, but responses to inquiries are often lacking in personal touch and efficiency While a user-friendly website encourages navigation, it does not reveal the competence or character of the staff behind it Effective customer service options are essential for evaluation, yet automated email responses may lack the human qualities that customers seek.

In e-commerce, tangible elements are largely irrelevant to assessing service quality since customers do not interact with the physical aspects of service delivery Most e-commerce companies operate their own warehouses or rely on suppliers for order fulfillment, which occurs away from the customer's view However, aspects like responsiveness and reliability are crucial, as they reflect the company's commitments Reliability can be evaluated by timely delivery of the correct product, such as within 48 hours, which is vital for business success and indicates a seamless interaction between the user interface and backend processes Responsiveness, while less visible, is measured through customer service interactions, such as the efficiency of resolving issues via phone or email, especially when dealing with returns or delays.

Parasuraman et al (1988) refined their original ten determinants of service quality into five key dimensions The first three, which remain unchanged, are Tangibles, Reliability, and Responsiveness The remaining two dimensions are Assurance, reflecting the knowledge and courtesy of employees, and Empathy, which emphasizes the caring and individualized attention that a firm provides to its customers.

RESEARCH METHODOLOGY

Research Approach

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

The quantitative approach involves the use of post-positivist claims to develop knowledge through cause and effect reasoning, focusing on specific variables and hypotheses This methodology employs strategies like experiments and surveys, collecting data via predetermined instruments that generate statistical information.

Qualitative research employs a multi-method approach, focusing on an interpretive and naturalistic examination of subjects Researchers in this field investigate phenomena within their natural contexts, aiming to understand and interpret the meanings individuals attribute to these experiences.

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

Research Strategy

A research strategy is a comprehensive plan outlining how a researcher will address their research questions It includes well-defined objectives based on these questions, identifies the sources for data collection, and takes into account potential constraints such as data access, time limitations, geographical factors, budgetary restrictions, and ethical considerations (Thornhill et al., 2003).

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

This study employs a "what" question that essentially translates to a "how many" inquiry, where the investigator cannot control the actual behavioral events Therefore, utilizing a survey method is deemed more suitable for achieving a deeper understanding of the research area, particularly for quantitative analysis.

This research aims to classify the dimensions of service quality in online shopping among Cambodian shoppers The study focuses on a sample of individuals living and working in Phnom Penh, as this group possesses more experience with e-commerce compared to those in other provinces The sample was selected using a judgment-based approach, adhering to specific criteria throughout the selection process.

Sample should be more familiar with using Internet;

Sample should have experience of using Online purchasing;

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

Research Process

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

Table 2Table 3.1: Time of Research Process

Table 3.1: Time of Research Process

Step Types of Research Research method Technique Time

1 Draft version Qualitative Analysis Apr, 2011

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

Figure 2Figure 3.1: Research Process Flowchart

Research Model & Hypotheses

The relationship between service quality and customer satisfaction is illustrated in Figure 1, highlighting five dimensions derived from the SERVQUAL model The SERVQUAL instrument employs 28 statements to assess performance across these dimensions, comparing customer expectations with their actual experiences However, concerns have been raised regarding the long-term reliability of the results obtained from this assessment.

Eliminate variables that have low Item-Total Correlation coefficients

Eliminate variables that have low EFA loadings

Check Eigen values and extraction Sums of Squared Loadings

The SERVQUAL scale is a widely recognized tool for measuring service quality, despite the existence of alternative models This article examines the effectiveness of the multiple regression equation associated with the SERVQUAL scale and evaluates the overall applicability of its five dimensions in assessing service quality.

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

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

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

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

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

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

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

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

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

Customer Satisfaction in Online Purchasing

SERVQUAL dimensions in relation to online Purchasing

In e-business, tangible factors such as modern equipment and visually appealing physical facilities and materials are crucial, as they represent the sole visual connection between customers and organizations A well-designed and functional website is essential, as many customers abandon their online shopping carts due to frustrations with technology or poor website layout Therefore, investing in an attractive and user-friendly website is vital for retaining customers and enhancing their shopping experience.

The visual appeal of websites is perceived differently across age groups; younger users often prefer vibrant graphics and fast interfaces, while older users favor simplicity and readability, avoiding distracting elements like blinking text and excessive animations Although many websites allow for content customization, this feature typically does not extend to modifying graphics, sounds, or animations, leaving older users at a disadvantage in their browsing experience.

Reliability in business hinges on fulfilling promises and meeting deadlines While many organizations believe that low prices are the primary driver for online shopping, convenience plays a crucial role as well Customers prioritize trust and satisfaction; if they cannot rely on a company to deliver as promised, they are likely to feel dissatisfied For instance, Price Line faced significant challenges at the end of 2000 due to its emphasis on offering the lowest prices, which often came with inconvenient flight times This led to customer dissatisfaction, prompting many to choose competitors that offered greater convenience over Price Line's discounts.

The responsiveness of a website is crucial, particularly in terms of prompt service, as page download speed significantly impacts user retention Research indicates that if page response time remains under 7 seconds, fewer than 10% of users will leave, but this number jumps to 30% if the time exceeds 8 seconds, and a staggering 70% will abandon the site if delays exceed 12 seconds Given advancements in technology, users likely expect even faster load times today While organizations strive for quick-loading websites, they also face the challenge of creating visually appealing pages The inclusion of animations, images, and sounds can enhance aesthetics but also prolong loading times, leading to a delicate balance between appearance and speed Additionally, companies must ensure their websites reflect their corporate identity through logos and graphics, which can further increase download times Ultimately, it remains uncertain whether users will tolerate slower loading pages for enhanced visual appeal that does not contribute to the website's functionality.

In the realm of e-business, the assurance factor plays a crucial role, particularly in terms of providing comprehensive knowledge to address customer inquiries Unlike physical stores where a limited inventory may suffice, online shoppers expect a vast selection and detailed product information Trust in employees and the security of transactions are also vital; many users hesitate to share personal information with unfamiliar organizations Research indicates that over 50% of users are concerned about the misuse of credit card information, the sharing of personal data by website owners, and tracking cookies Furthermore, approximately two-thirds of active web users abandon sites that request personal information, with one in five resorting to providing false details to access a site Thus, ensuring trust and security is essential for successful e-business operations.

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

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

• certifications or guarantees of assurance; and

• reports of experiences of other customers

The International Organization for Standardization (ISO) in Geneva emphasizes the importance of the Code of Practice for Information Security Management, which serves as a foundation for effectively managing sensitive data In the realm of e-business, obtaining certifications and assurances is increasingly vital, as organizations recognize the benefits of adhering to objective, consensus-based standards This trend mirrors the earlier pursuit of quality management certifications, as companies aim to enhance customer trust and confidence through established certification processes.

Empathy is often lacking in website interactions due to the absence of personal attention To address this, many websites are now designed for user personalization, allowing individuals to create their own tailored experiences This customization enhances user satisfaction and encourages repeat visits Advanced technologies, including artificial intelligence, facilitate a virtual face-to-face interaction, with friendly virtual assistants designed to make customers feel at ease These assistants can recommend products based on past purchases and engage users with questions, enabling businesses to align their offerings with customer preferences Ultimately, these innovations aim to infuse warmth into the online experience, bridging the gap left by traditional web interactions.

RESEARCH RESULT

Sample and Response rate

The study focuses on Cambodian Internet users residing or working in Phnom Penh, emphasizing participants who are frequent Internet users and knowledgeable about electronic commerce.

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

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

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

Table 3Table 4.1: Number of respondents by gender

Table 4.1: Number of respondents by gender

Frequency Percent Valid Percent Cumulative Percent

The age distribution of the sample reveals that the largest group, comprising 26 to 35-year-olds, is followed by 59 individuals (23.8%) aged 36-45, 46 individuals (18.5%) aged 18-25, and 21 individuals (8.5%) who are over 45 years old.

Table 4Table 4.2: Number of respondents by age

Table 4.2: Number of respondents by age

Service quality measurement

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

All the scales are measured by 2 primary tools:

Cronbach's alpha is a key metric for assessing internal consistency, indicating the degree of relatedness among a group of items A correlation coefficient below 0.3 is generally deemed unacceptable, while a reliability coefficient of 0.6 or higher for Cronbach's alpha is considered the standard for selecting a scale.

In conducting Exploratory Factor Analysis (EFA) using Principal Axis Factoring with the Promax method, any factor loading below 0.4 is excluded from consideration The chosen scale must account for a variance of 50% or greater.

4.2.1 Cronbach’sApha Analysis 4.2.1.1 Measuring service quality

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

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

Table 4.3:Cronbach’sApha of scale factor: Assurance

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

The assurance factor demonstrates a Cronbach’s alpha of 879, indicating strong internal consistency among its components The correlation coefficients range from a low of 589 for variable ASS1 to a high of 740 for variable ASS5 Consequently, these variable components will be utilized in the subsequent exploratory factor analysis (EFA).

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

Table 4.4:Cronbach’sApha of scale factor: Reliability

The reliability of the measured variables is confirmed by a Cronbach’s alpha of 832, indicating strong internal consistency The correlation coefficients for the variables range from a minimum of 618 for REL3 to a maximum of 701 for REL4 Consequently, these variable components will be utilized in the subsequent Exploratory Factor Analysis (EFA).

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

Table 4.5:Cronbach’sApha of scale factor: Responsiveness

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

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

Table 4.6:Cronbach’sApha of scale factor: Empathy

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

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

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

Table 4.7:Cronbach’sApha of scale factor: Tangible

The responsiveness factor demonstrates a strong reliability with a Cronbach’s alpha of 875, indicating consistent measurement of its components The correlation coefficients for these variables show a range, with the lowest at 634 for TAN4 and the highest at 800 for TAN5 Consequently, these variable components will be utilized in the subsequent exploratory factor analysis (EFA).

The scale measuring user satisfaction demonstrates a Cronbach’s Alpha of 859, indicating strong reliability Additionally, the correlation coefficients for the variables within this concept exceed the acceptable threshold of 0.3, with the lowest at 649 (SATIS1) and the highest at 790 (SATIS2) Consequently, these variable components are utilized in the subsequent Exploratory Factor Analysis (EFA).

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

Table 4.8:Cronbach’sApha of scale factor: Satisfaction

4.2.2 EFA Factor Analysis 4.2.2.1 Measuring service quality

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

The analysis of 28 variables and observed the following results:

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

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

Table 4.9: EFA analysis Result of factors affecting Customer Satisfaction

Extraction Method: Principal Component Analysis

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

Table 11Table 4.10: KMO and Bartlett’s Test

Table 4.10: KMO and Bartlett’s Test

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

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

Factor analysis revealed that 28 variables can be categorized into five significant observed factors, each with variable weights exceeding 0.40, indicating their practical importance The KMO index was recorded at 0.784, confirming that the exploratory factor analysis (EFA) is well-suited to the data.

The inspection of Bartlett's test reveals a significance level of 000, indicating that the observed variables are significantly correlated Additionally, the variance extracted of 67.427% demonstrates that six factors account for this substantial variability in the data.

The analysis of user satisfaction levels, utilizing a scale and similar to Exploratory Factor Analysis (EFA), identifies key components that significantly influence overall satisfaction The model demonstrates measurement stability, highlighting specific elements that contribute to the satisfaction scale.

• The first factor (Assurance) included 7 observed variables: Assign as ASS ASS1: An email address for queries and complaints is provided

Our platform provides comprehensive information on product or service features, ensuring users have access to all necessary details Additionally, we offer transparent pricing for our products and services, allowing customers to make informed decisions Users can conveniently complete their purchases without the need for website registration, streamlining the shopping experience Furthermore, we clearly outline various payment options, giving customers the flexibility to choose their preferred method.

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

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

REL2: The web site contains company details REL3: External validation of trust worthiness is important REL4: Brand image is important

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

RES2: Opening of new screens is kept to a minimum RES3: It is easy to print from the web

RES4: Information is found with a minimum of clicks

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

EMP2: A customer platform is provided for exchange of ideas EMP3: Links are provided to pages on related products and services EMP4: Searches on related sites are provided

• The fifth factor (Tangible) included 5 observed variables: Assign as TAN TAN1: Scrolling through pages and text is kept to a minimum

Website animations enhance user engagement and convey meaningful information Users can access expected delivery times at any moment, ensuring transparency The use of consistent, relevant, and clear colors, pictures, and images contributes to an appealing design Additionally, the terms and conditions of sales are readily accessible, fostering trust and clarity for customers.

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

SATIS2: You are content with your current PC SATIS3: You seek a well-functioning and visually appealing website SATIS4: You want the ability to print or download information directly from the web.

Table 12Table 4.11: EFA analysis of the satisfaction scale

Table 4.11: EFA analysis of the satisfaction scale

1 SATIS2 890 SATIS3 860 SATIS4 813 SATIS1 803 Extraction Method: Principal Component Analysis a 1 components extracted

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .784

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

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

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

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

(5) Empathy; and other one factor is satisfaction

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

Examination research model

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

This study evaluates 28 factors of service quality from the perspective of Cambodian consumers, highlighting the importance of Assurance, Reliability, Responsiveness, Empathy, and Tangibles To achieve high service quality and customer satisfaction in a competitive market, online retailers should prioritize these five key dimensions, while noting that the Tangible factor may hold less significance By focusing on these essential areas, retailers can effectively enhance their service quality and maintain a competitive edge.

More specifically, the following implications are recommended to onlineretailers:

The speed of access to a website is a crucial factor for the success of online retailers, particularly in Cambodia, where internet connectivity can be slow As a result, online visitors tend to favor websites that load quickly and easily To enhance customer satisfaction, it is essential for online retailers to optimize their websites for faster access.

DISCUSSION AND CONCLUSION

Introduction

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

This study evaluates 28 factors of service quality from the perspective of Cambodian consumers, highlighting the importance of Assurance, Reliability, Responsiveness, Empathy, and Tangibles To sustain high overall service quality, online retailers must address all these dimensions However, to enhance competitiveness in a challenging market with limited resources, it is advisable for online retailers to concentrate on the five key dimensions: Assurance, Reliability, Responsiveness, Empathy, and Tangibles, with the understanding that the Tangible factor is less critical By prioritizing these areas, retailers can achieve elevated service quality and customer satisfaction.

More specifically, the following implications are recommended to onlineretailers:

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

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

The assurance dimension emphasizes the importance of customer awareness regarding privacy limits and security policies It is essential for managers to provide clear and accessible information about protection and privacy measures, ensuring customers fully understand how their data is secured on the website.

Implications for Theory

This study aims to identify the online service quality dimensions that influence Cambodian customers' perspectives in the online retail sector and to rank these dimensions based on their impact By enhancing the understanding of service quality and customer satisfaction, this research contributes to the existing knowledge of Cambodian consumer preferences in online retailing The study examines five key service quality dimensions within the context of online retailing, grounded in established theories.

The findings of this study largely align with existing literature, reinforcing previous research Additionally, new insights emerged from quantitative empirical data, contributing to a deeper understanding of the relative importance of service quality dimensions.

Implications for Further Research

The rise of e-commerce and advancements in web technology highlight intriguing areas that warrant further exploration beyond the scope of this study Additionally, the limitations identified in this research present valuable insights for future investigations, suggesting that subsequent studies could build upon and extend the findings of this work.

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

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

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

Understanding the factors that drive website visits, engagement, and online purchases is crucial for practitioners Research highlights the importance of "loyal customers," who not only promote positive word-of-mouth but are also less likely to switch to competitors, spend more, and are easier to attract It is essential for businesses to recognize the various influences on customer behavior Addressing this critical aspect of e-business is vital, and further studies are necessary to enhance our digital landscape and improve overall user experience.

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QUESTIONAIRE

This research is undertaken to fulfill part of the requirements for the Master of Business Administration degree at the University of Economics Ho Chi Minh City, with the primary aim of evaluating key aspects related to the subject matter.

Customer Satisfaction and Service Quality in Online Purchasing in Cambodia

I kindly request your support and cooperation in participating in this survey by completing the questionnaires Your valuable assistance is greatly appreciated, and I thank you for your participation.

1 Please indicatein which of these age groups you are?

2 Please indicate your gender? Male Female

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

TABLES

Table 4.1: Number of respondents by gender

Table 4.2: Number of respondents by age

Table 4.3: Cronbach’sApha of scale factor: Assurance

Table 4.4: Cronbach’sApha of scale factor: Reliability

Table 4.5: Cronbach’sApha of scale factor: Responsiveness

Table 4.6: Cronbach’sApha of scale factor: Empathy

Table 4.7: Cronbach’sApha of scale factor: Tangible

Table 4.8: Cronbach’sApha of scale factor: Satisfaction