Customer Satisfaction on Traditional Shopping and OnlineShopping during the Pandemic.
1. Introduction
1.1 Basic Information
The rapid boom of e-commerce is having an increasing effect on business arena specially in the pandemic. Because people are more concern about their health and safety. Though the growth of electronic platform is still in an infancy stage and the determinants to attract people towards online shopping remain vague well. To appraise and predict those immense impacts of electronic platform, it is important to further improve our understanding of consumers' Virtual Shopping behavior. Traditional Shopping is that practice where a person need to present physically but online shopping allows flexibility to shopping from anywhere. During this pandemic situation online platform booming up because people try to make distance from each other. The special feature of electronic platform is cutting of the intermediaries.
1.2 Background about the topic:
Online shopping is basically a process of selling & buying of goods & service on World Wide WEB (WWW). In developed country online shopping has become the fastest – growing use of the Internet. Most million consumers prefer this method for getting their shopping done. Online shopping has getting famous since the last few years after the Internet was being widely used. An online consumer or online seller must at least have one electronic gadget to access to the Internet. Online banking system had been launched before the era of online shopping. Therefore, online banking system made online shopping much convenient. Hence, payment can be made in several forms such as debit card, cash on delivery or various types using ATM machine and so on.
During, 1994, Netscape introduced SSL encryption method for data transformation online through the web, which became so important for secure online shopping. The first online shopping system was introduced by a German Company Called ‘INTERSHOP’. Follow by Amazon in 1995 & eBay 1996. Facebook Page, You-tube more focus on this COVID situation because mass people of Bangladesh are familiar with this online platform.
1.3 Significant / Importance of the study:
Online shopping is basically a process of selling & buying of goods & service on World Wide WEB (WWW). In developed country online shopping has become the fastest – growing use of the Internet. Most million consumers prefer this method for getting their shopping done. Online shopping has getting famous since the last few years after the Internet was being widely used. An online consumer or online seller must at least have one electronic gadget to access to the Internet. Online banking system had been launched before the era of online shopping. Therefore, online banking system made online shopping much convenient. Hence, payment can be made in several forms such as debit card, cash on delivery or various types using ATM machine and so on.
This study attempts to analyze the customer satisfaction of online and traditional shopping. Customer Satisfaction on Traditional Shopping and Online Shopping during the Pandemic. In this study using different socio economic variables. The outcomes of the study suggest that the better understanding of customer satisfaction between Traditional marketing VS Online marketing during the Pandemic. Significant / Importance are given below-
1) To know the theoretical aspects of traditional & online shopping during the Pandemic.
2) To find out the socio economic profiles of customers.
3) Find out the factors that influence the customers to prefer online shopping & traditional shopping during the pandemic.
4) Examining the customer’s level of satisfaction towards the products & various services offered by online & traditional shopping.
5) To suggest suitable steps for the improvement of online & traditional shopping.
1.4 Literature Review
There are few causes that influencing the customer satisfaction from their online shopping provider due to the changing preferences and satisfaction toward the demand and services provided. Customer satisfaction is an output, resulting from the customer's pre-purchase comparison of expected performance with perceived actual performance and incurred cost (Churchill and Surprenant, 1982).
Overall satisfaction is a more fundamental indicator of the firm's past, current and future performance (Anderson et al., 1994). It is an investment or a cost when consumers spending their time making purchases. It takes quite a lot of time for a consumer to make purchases from shop to shop, thus online shopping helps to save a lot of their precious time and effort. The time spent plays a very important role in consumer perceptions especially the time used for shopping. According to Rohm and Swaminathan's (2004), one possible explanation that online shopping saves time during the purchasing of goods and it can eliminate the traveling time required to go to the traditional store.
On the other side, some respondent think that it is also time taken for delivery of goods or services over online shopping. Security is another dominant factor which affects consumers to shop online. However many internet users avoid online shopping because of credit card fraud, privacy factors, non-delivery risk, post purchase service and so on. But transaction security on the online shopping has received attention. Safe and secured transaction of money and credit card information increases trust and decreases transaction risk. In 1995, UK has introduced Fraud free electronic shopping and later on Europe and Singapore introduced secured electronic transaction (SET).
According to Bhatnagar and Ghose (2004) Security is one of the attribute which limits buying on the web as they claim that there is a large segment of internet shoppers who don't like to buy online because of their thinking about the security of their sensitive information.
This chapter includes the research framework which identifies and helps explain the steps taken in investigating the research done. Discussion in this section will cover the research design and procedure, variables and measurement, data collection method, questionnaire design and data analysis. The research instruments, sampling process and data analysis techniques also will be discussed in this chapter.
The pandemic has accelerated the shift towards a more digital world and triggered changes in online shopping behaviors that are likely to have lasting effects.
The COVID-19 pandemic has forever changed online shopping behaviors, according to a survey of about 3,700 consumers in nine emerging and developed economies. The survey, entitled “COVID-19 and E-commerce”, examined how the pandemic has changed the way consumers use e-commerce and digital solutions. It covered Brazil, China, Germany, Italy, the Republic of Korea, Russian Federation, South Africa, Switzerland and Turkey. Following the pandemic, more than half of the survey’s respondents now shop online more frequently and rely on the internet more for news, health-related information and digital entertainment. Consumers in emerging economies have made the greatest shift to online shopping, the survey shows. “The COVID-19 pandemic has accelerated the shift towards a more digital world. The changes we make now will have lasting effects as the world economy begins to recover,” said UNCTAD Secretary-General Mukhisa Kituyi. He said the acceleration of online shopping globally underscores the urgency of ensuring all countries can seize the opportunities offered by digitalization as the world moves from pandemic response to recovery.
1.5 SWOT Analysis for Online Business:
SWOT Analysis for Online Business Use this SWOT analysis to develop a strategy and tactics to help your Online business to grow and succeed. The objective is to identify critical factors affecting your online business, build on strengths to reduce weaknesses, utilize opportunities and avoid potential threats.
Strengths
• Business strategy
• 24/7 availability Mobility
• Ease of communication
• Low costs for maintenance
• Competitive pricing
• Quality service and product
Weaknesses
• High shipping cost
• Absence of direct interaction with the end customer
• Inefficient supply chain
• Limited number of online shoppers
Opportunities
• Global expansion
• Reaching mobile users (mobile friendly business)
• Social Media advertising
• SEO and Ad words
• Collaboration with other firms’ Joint ventures.
Threats
• Heavy competition by the large players
• Unexpected regulations and Law changes in other territories
• Bad customer reviews
• Local competition