Luận văn thạc sĩ UEH 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 a comprehensive overview of the research area, highlighting the significance of e-commerce and online retailing as key components of the digital marketplace It also provides insights into the current state of e-commerce in Cambodia, emphasizing the critical role of service quality in fostering customer satisfaction.

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

E-commerce systems leverage web-based applications to facilitate essential business functions, including 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, allowing customers to independently perform various activities, such as updating their address, obtaining credit cards or loans, learning from peer reviews, and personalizing service agreements and purchases without the need for direct human interaction.

Electronic commerce is a new way of conducting, managing and executing business transactions using computer (Kalakota and Whinston 1996)

The rapid expansion of electronics retailers worldwide highlights the significance of both B2B and B2C e-commerce, transcending traditional brick-and-mortar stores While many online visitors primarily seek information rather than making purchases, e-CRM tools have become essential for retailers to thrive in a competitive landscape To differentiate themselves, retailers must offer value-added services Although the mid-2000s saw many e-commerce startups falter, the success stories of surviving companies provide valuable insights into their strengths Ultimately, customer satisfaction remains the primary objective, as customers are the lifeblood of any organization.

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 Consequently, the development of electronic commerce in Cambodia is still in its infancy Although e-commerce is a relatively new concept for the country, it is anticipated to experience steady growth in the near future.

To thrive in the online retail sector, it is essential to leverage opportunities while mitigating risks By analyzing successful case studies and identifying their key success factors, as well as examining the trends of defunct online retailers, we can develop effective policies and strategies Numerous global studies on online retail have been conducted, highlighting the importance of providing proper guidance to new retailers launching their websites Additionally, academics can play a crucial role in localizing foreign insights to help companies in Cambodia meet international standards.

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 popularity of online shopping, many retailers are facing closures, highlighting the critical need to understand customer preferences in a competitive marketplace Companies are shifting their focus from product-centric strategies to prioritizing customer-centric approaches Customer satisfaction plays a vital role in retention, which is particularly challenging in internet-based services where customers can easily switch providers at minimal cost As noted by Khalifa and Liu (2003), this ease of switching emphasizes the importance of understanding the factors that influence customer satisfaction Furthermore, Van Riel, Lijander, and Jurriens (2001) underscore the significance of studying these determinants, given the high costs associated with acquiring new customers and the substantial turnover rates in online services.

Customer satisfaction is the key factor determining how successful the organization will be in customer relationships, so it is very important to measure it

Total Quality Management (TQM) emphasizes customer satisfaction and involves all organizational members in a quality-focused management approach This strategy aims for long-term success by benefiting both the organization and society as a whole.

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 significant resources in monitoring customer satisfaction effectively, as quantitative measurements provide valuable insights into how product quality influences consumer behavior.

To ensure the sustainability of online retailers and achieve consistent profits, prioritizing customer retention is essential Customer satisfaction significantly influences customer loyalty, and a key factor in enhancing 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, addressing the complexities of various problem areas.

This article explores the theory of 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 decision (Churchill and Sauprenant, 1992) Researchers generally concur that satisfaction involves an attitude or evaluation shaped by the customer's comparison of their pre-purchase expectations with their actual perceptions of the product's performance.

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 consists of two key dimensions: process (functional quality) and outcome (technical quality) Functional quality refers to "how" a service is delivered, while technical quality pertains to "what" customers receive in terms of benefits For online services, this traditional model must be expanded to include a fourth dimension: the user interface Differentiating between facilitating services, which enhance the core service, and supporting services, which provide additional value, can be challenging Supplementary services encompass both facilitating and supporting services that complement the core offering For example, an online bookseller might offer facilitating services like search capabilities and secure payment options, while supporting services could include book reviews and personal recommendations Additionally, related products that are neither facilitating nor supporting can be provided, such as specialized financial services or online medicine purchases on a medical portal.

Online trading sites involve a complex process that includes various sub-processes like information retrieval and order placement Each service component can be analyzed based on its processes and outcomes, with specific dimensions and quality factors For instance, while users may appreciate the responsiveness and user-friendliness of a search engine, they may still be disappointed by unreliable search results The success or failure of these interactions significantly impacts overall customer satisfaction with the website Typically, customers assess the service as a whole rather than scrutinizing each sub-process during a single visit, unless a particular aspect is notably positive or negative This trend is also evident in ongoing customer e-service relationships, where studies show that positive experiences are infrequent, and dissatisfaction often arises from process failures, such as lost orders.

The evaluation of e-service quality can be categorized into specific dimensions, with the SERVQUAL model (Parasuraman et al., 1988) identifying five key factors: tangibility, responsiveness, reliability, assurance, and empathy.

Parasuraman and Grewal (2000) emphasize the necessity for research into how the definitions and significance of the five service quality dimensions may shift when customers engage with technology instead of service personnel Given that these dimensions were originally designed for interpersonal interactions, it is essential to reformulate the content description and scale items for effective application in e-service contexts For instance, the dimension of tangibility could be redefined as the user interface to better align with technological interactions.

Responsiveness encompasses a company's ability to promptly address customer requests and confirm orders swiftly Reliability, on the other hand, pertains to the timely delivery of ordered goods, the accuracy of supplied information, and the absence of errors in links.

Assurance encompasses the security of online transactions and the company's policy regarding personal information usage, contributing significantly to overall trustworthiness This trust is a crucial factor in enhancing e-service satisfaction Additionally, empathy reflects 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 shaped by the difference between performance and expectations; quality improves when performance surpasses expectations, while it declines when performance falls short.

1988) Thus, performance-to-expectations —gaps“ on attributes that consumers use to evaluate the quality of a service form the theoretical foundation of SERVQUAL

The SERVQUAL model concentrates on five “gaps'' impairing the delivery of excellent service quality; this study focuses on 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 grasp the elements that contribute to customer satisfaction, as it is vital for fostering long-term client relationships The prevalence of customer satisfaction surveys in financial institutions over the past five years highlights this importance Understanding the factors that influence web-customer satisfaction is crucial for e-commerce, especially given the increasing emphasis on long-term profitability for both dotcom and "Net-enhanced" companies.

Customer satisfaction in e-commerce is determined by a cognitive and emotional evaluation, where customers compare their expectations to the actual performance of a service or product When perceived performance falls short of expectations, dissatisfaction arises; conversely, if performance exceeds expectations, customers experience satisfaction.

Dimensions and determinants of Service Quality

Parasuraman et al (1985; 1988) explored how customers evaluate service quality and identified ten key determinants for measuring it.

(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 vital for 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 markets are essential factors that contribute to a positive online shopping experience.

A website must be accessible 24/7, unlike traditional high street banks or shops that have set hours To enhance user experience, websites utilize smart cookies that identify returning customers New visitors are prompted to register their email addresses, allowing the site to recognize different types of users during their visits.

To enhance customer engagement, businesses can send personalized emails or web offers based on previous purchases, aiming to fulfill individual customer needs akin to personal interactions in a Business Account Management (BAM) environment However, online communication often remains one-sided, primarily providing information without direct interaction Effective communication is facilitated when websites offer contact options like phone numbers or email addresses, yet many queries sent via email may go unanswered The website experience often lacks the courtesy and competence expected in personal service, as customers can only assess usability without gauging the skills of the personnel behind the interface Ultimately, customer service options serve as the primary means of evaluation, but automated email responses may lack the personal touch that customers desire.

In e-commerce, tangible aspects are largely irrelevant to assessing service quality since customers do not interact with physical properties during their online experience Most e-commerce companies utilize warehouses to fulfill orders, distancing the fulfillment process from the customer's location However, key factors such as responsiveness and reliability are crucial, as they reflect the company's commitments Reliability can be evaluated by the timely delivery of the correct product, typically within 48 hours, highlighting the importance of seamless interaction between the user interface and backend processes Responsiveness, though less tangible, is critical when customers encounter issues and need to reach out via phone or email for support The company's ability to address these concerns promptly is vital, especially in scenarios involving returns or delayed shipments.

Parasuraman et al (1988) streamlined the ten determinants of service quality into five key factors: (1) Tangibles, which refer to the physical aspects of the service; (2) Reliability, the ability to deliver promised services consistently; (3) Responsiveness, or the willingness to assist customers promptly; (4) Assurance, encompassing the knowledge and courtesy of employees; and (5) Empathy, highlighting the caring and individualized attention provided to 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 focuses on post-positivist claims to develop knowledge through cause and effect reasoning, specific variables, and hypothesis testing This method employs strategies like experiments and surveys, utilizing predetermined instruments to gather statistical data.

Qualitative research employs a multi-method approach, emphasizing an interpretive and naturalistic perspective on its subjects Researchers in this field examine phenomena within their natural contexts, striving to understand and interpret the meanings that individuals ascribe 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 serves as a comprehensive plan that outlines how a researcher intends to address the established research questions It includes clear objectives derived from these questions, specifies the data sources for collection, and takes into account inevitable constraints such as data access, time, location, budget, and ethical considerations (Thornhill et al., 2003).

In social science research, five key strategies are identified based on specific criteria: the formulation of research questions, the necessity for control over behavioral events, and a focus on contemporary issues These strategies include experiments, surveys, archival analysis, histories, and case studies, each offering unique approaches to understanding social phenomena.

This study focuses on a "what" question, which essentially translates to a "how many" inquiry, and since the investigator cannot control the actual behavioral events, a survey method is deemed more suitable Surveys are particularly effective for quantitative research, allowing for a deeper understanding of the research area.

This research aims to classify the dimensions of service quality in online shopping specifically for Cambodian shoppers The study focuses on a sample of individuals residing and working in Phnom Penh, as this demographic possesses greater experience with e-commerce compared to those in other provinces The sample selection employed a judgmental approach, adhering to specific criteria to ensure relevance and expertise in online shopping behaviors.

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, based on a focused literature review Five service quality dimensions, derived from the SERVQUAL model, are utilized, with 28 statements assessing performance across these dimensions Each statement evaluates both customer expectations and experiences, although there is some criticism regarding the long-term stability of the results.

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

Check the fitness of the multiple regression equation the SERVQUAL scale and on the general applicability of the five dimensions

Although alternative models have been proposed for the measurement of service quality, the SERVQUAL scale has been widely used by academics and practitioners to measure 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 up-to-date equipment and visually appealing physical facilities play a crucial role, especially since there is no direct interaction between customers and employees The website serves as the sole visual connection between customers and organizations, making it essential for businesses to maintain well-functioning and aesthetically pleasing websites Many customers abandon their online shopping carts due to frustrations with technology or poor website design and layout, highlighting the importance of a positive online user 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 clear, easy-to-read designs without distracting animations Although many websites allow for content customization, this feature primarily focuses on textual elements rather than adjusting graphics, animations, or sound effects to suit user preferences.

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 significant role for many customers If a business fails to deliver on its commitments, customer dissatisfaction is likely to follow For instance, Price line faced significant challenges at the end of 2000 by prioritizing low prices over customer convenience Although customers could purchase cheap plane tickets, inconvenient flight times led to frustration, prompting them to choose competitors who offered better convenience despite higher prices.

One of the aspects in the responsiveness factor is “gives prompt service”

The speed at which a webpage loads is crucial for internet users, with studies indicating that fewer than 10% leave a site if it loads in under 7 seconds, while 30% abandon it after 8 seconds, and a staggering 70% leave if it takes longer than 12 seconds Given advancements in technology, users likely expect even faster load times today Therefore, organizations must prioritize quick-loading websites while also ensuring they are visually appealing However, the inclusion of larger images, animations, and sounds to enhance visual appeal can negatively impact loading times, creating a trade-off between aesthetics and speed Additionally, companies face pressure to maintain a strong corporate image through recognizable logos and graphics, which further increases webpage size and loading times This raises the question of whether users will tolerate slower pages for the sake of added visual elements that do not enhance functionality.

Customers expect comprehensive information and a wide range of products when shopping online, contrasting with their comfort in physical stores with limited inventory To meet these expectations, e-commerce sites must offer extensive product selections and detailed, relevant information Additionally, customers prioritize trust in employees and the security of their transactions, as sharing personal information with unfamiliar organizations poses significant risks.

Research indicates that over 50% of users express significant concerns regarding the misuse of credit card information shared online, the potential selling or sharing of personal data by website owners, and the tracking of customers through cookies.

Research indicates that two-thirds of active web users abandon sites that request personal information, while one in five users provide false information to access a website Key factors influencing user assurance in e-business include trustworthiness and data privacy.

• 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 in Geneva emphasizes the importance of a Code of Practice for Information Security Management, which serves as a framework for managing sensitive data In the realm of e-business, certifications and assurance guarantees are increasingly vital, prompting organizations to pursue objective, consensus-based standards similar to those in quality management This growing awareness highlights the benefits of certification in enhancing customer trust in these organizations.

Empathy is often lacking in website interactions due to the absence of personal attention To address this, many websites now offer customizable designs, allowing users to create a personalized experience that fosters a sense of individual care The more a website aligns with a customer's needs, the higher the likelihood of repeat visits Advanced technologies aim to facilitate face-to-virtual-face interactions, using friendly virtual assistants to enhance user comfort By leveraging artificial intelligence, these assistants can recommend products based on previous purchases and user feedback, enabling businesses to tailor their offerings and minimize customer dissatisfaction Ultimately, these innovations strive to introduce warmth, a crucial element often missing from online experiences.

RESEARCH RESULT

Sample and Response rate

The sample for this study is drawn from Cambodian Internet users residing or working in Phnom Penh, focusing on individuals who are frequent Internet users and have a strong familiarity with 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 study's sample primarily consisted of individuals aged 26 to 35 years According to Table 4.2, 59 participants, or about 23.8%, were between 36 and 45 years old, while 46 participants, representing approximately 18.5%, fell within the 18 to 25 age range Additionally, 21 participants, making up roughly 8.5%, were 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 measures the internal consistency of a set of items, indicating how closely related they are as a group A correlation coefficient below 0.3 is typically excluded from consideration For a scale to be deemed reliable, a Cronbach’s alpha coefficient of 0.6 or higher is generally accepted.

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 final selection criteria require that the variance explained by the factors is at least 50%.

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 strong reliability with a Cronbach’s alpha of 879, indicating consistent measurement of its components The correlation coefficients for these variables range from a minimum of 589 for variable ASS1 to a maximum of 740 for variable ASS5, reflecting standard variations among the measured components.

Therefore, the variable component of this measure is used in subsequent analysis of EFA

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

Table 4.4:Cronbach’sApha of scale factor: Reliability

The reliability factor, indicated by a Cronbach’s alpha of 832, demonstrates a strong internal consistency among the measured variables The correlation coefficients for these components range from a low of 618 for variable REL3 to a high of 701 for variable REL4, highlighting the variations in reliability across the different variables.

Therefore, the variable component of this measure is used in subsequent analysis of EFA

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

Table 4.5:Cronbach’sApha of scale factor: Responsiveness

Responsiveness factor has Cronbach’s alpha is 829 and the correlation coefficient of the variable measured variations of these components are standard

The smallest variable is 621 (variable RES1) and the highest variable is 685 (variable REL3) Therefore, the variable component of this measure is used in subsequent analysis of 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

Responsiveness factor has Cronbach’s alpha is 875 and the correlation coefficient of the variable measured variations of these components are standard

The smallest variable is 634 (variable TAN4) and the highest variable is 800 (variable TAN5) Therefore, the variable component of this measure is used in subsequent analysis of EFA

The Cronbach’s Alpha for the user satisfaction scale is 859, indicating strong internal consistency Additionally, the correlation coefficients for the measured variations exceed the acceptable threshold of 0.3, with the lowest variable (SATIS1) at 649 and the highest (SATIS2) at 790 Consequently, these variable components will be 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 variables meet the criteria for analysis in Exploratory Factor Analysis (EFA) The KMO (Kaiser-Meyer-Olkin Measure of Sampling Adequacy) index assesses the suitability of factor analysis, and it is applicable 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 were categorized into five significant factors, with variable weights exceeding 0.40, indicating their practical relevance The KMO index was recorded at 0.784, confirming that the exploratory factor analysis (EFA) aligns well with the data.

Bartlett's test revealed a significance level of 000, indicating a strong correlation among the observed variables across the overall dataset Additionally, the variance extracted, measured at 67.427%, demonstrates that six factors account for 67.427% of the data's variability.

The key components influencing user satisfaction levels were identified through an analysis similar to Exploratory Factor Analysis (EFA) The model demonstrates stable measurement, highlighting specific factors that contribute to user satisfaction.

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

Our platform offers comprehensive information on all product and service characteristics, ensuring customers are fully informed Additionally, we provide complete pricing details for each offering, allowing for transparent decision-making Users can conveniently make purchases without the need for website registration, streamlining the shopping experience Furthermore, we clearly outline various payment options available, enhancing flexibility for our customers.

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 anticipated delivery times at any moment, ensuring transparency Consistent and relevant colors, pictures, and images contribute to a clear visual experience Additionally, the terms and conditions of sales are easily accessible, promoting 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 reflects your contentment with your current PC, while SATIS3 expresses your desire for a well-functioning and aesthetically pleasing website Additionally, SATIS4 highlights your wish to easily 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, which are believed to significantly impact customer satisfaction.

Regression analysis is utilized to identify the significance of various factors impacting Customer Satisfaction The analysis employs the average values of observed variables, utilizing the Enter method for overall regression variables This process is conducted using SPSS version 11.5 software.

The linear regression analysis indicates a model relevance of 63.6%, with an R² value of 0.645 and an adjusted R² of 0.636 This suggests that the overall satisfaction variable is influenced by six observed variables.

Table 13Table 4.12: Regression model summary

Square Std Error of the Estimate

1 803(a) 645 636 56378 a Predictors: (Constant), M_TAN, M_EMP, M_RES, M_REL, M_ASS

Squares df Mean Square F Sig

Total 180.114 206 a Predictors: (Constant), M_TAN, M_EMP, M_RES, M_REL, M_ASS b Dependent Variable: M_SATIS

Examination research model

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 brick-and-mortar and online retailers to maintain a competitive edge solely through cost strategies Instead, understanding customers' needs, preferences, and quality dimensions has become crucial for enhancing customer satisfaction and attracting new clientele By identifying and ranking customer expectations for online retail services, businesses can better align their offerings with consumer preferences for service quality.

This study evaluates 28 factors of service quality from the perspective of Cambodian consumers To sustain high overall service quality, online retailers must prioritize dimensions such as Assurance, Reliability, Responsiveness, Empathy, and Tangibles as identified by respondents However, in a highly competitive market with limited resources, it is advisable for online retailers to concentrate on the five key dimensions: Assurance and Reliability, to enhance their competitiveness.

Responsiveness; Empathy; and tangibles (in which Tangible factor seem to be not very important) in order to achieve high level of service quality and customer satisfaction simultaneously

More specifically, the following implications are recommended to onlineretailers:

The speed of access to a website is a crucial factor in the success of online retailers, particularly in Cambodia, where internet connectivity can be slow As a result, online visitors are more likely to choose websites that load quickly and efficiently To meet customer expectations, it is essential for online retailers to optimize their websites for faster access.

DISCUSSION AND CONCLUSION

Introduction

The rise of the Internet and Web technology has given customers access to an abundance of information and product options, making it challenging for both brick-and-mortar and online retailers to maintain a competitive edge solely through cost strategies Instead, understanding and addressing customer needs and preferences, along with their quality expectations, has become essential for boosting customer satisfaction and attracting new clientele By identifying and prioritizing customer expectations regarding online retail services, businesses can effectively enhance their service quality and align with customer 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 for online retailers To sustain high overall service quality, retailers must address all these dimensions However, in a highly competitive market with limited resources, it is advisable for online retailers to concentrate on the five key dimensions: Assurance and Reliability, to enhance their competitiveness.

Responsiveness; Empathy; and tangibles (in which Tangible factor seem to be not very important) in order to achieve high level of service quality and customer satisfaction simultaneously

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 customer satisfaction, retailers should prioritize creating websites that load quickly by minimizing the use of large flashes, graphics, and images Additionally, a well-structured website design is essential, as it affects the number of clicks needed to find desired information Therefore, managers must carefully consider various navigation methods to facilitate easy access to specific content on their websites.

Websites must maintain 24/7 accessibility to meet user expectations, making it crucial for managers to prioritize their site's reputation and minimize downtime In the event of an outage, it is essential to communicate relevant information about the issue and provide an estimated time for when the website will be back online.

The assurance dimension emphasizes the importance of customer awareness regarding privacy limits and security policies It is essential for managers to designate a clear area for presenting protection and privacy policies, ensuring they are easily accessible to customers This approach provides a comprehensive understanding of how the website maintains security and safeguards user information.

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 knowledge of Cambodian consumer preferences in online retailing The study tests five key service quality dimensions within the context of online retailing, grounded in existing theories.

The study's findings largely align with existing literature, reinforcing previous research Additionally, new insights emerged from the quantitative empirical data, enhancing the understanding of the relative importance of service quality dimensions.

Implications for Further Research

The growth of e-commerce and web technology highlights intriguing areas not addressed in this study, suggesting a need for further exploration Additionally, the limitations identified in this research offer valuable insights for future studies, which could expand upon these findings.

This research presents intriguing findings; however, additional analysis is necessary to validate the results and broaden the scope of our hypotheses.

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 similar questions is essential for more accurate and reliable results.

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' appeal to improve user engagement and retention.

Understanding the key factors that drive website visits and online purchases is essential for practitioners Researchers globally emphasize the importance of cultivating "loyal customers," who not only engage in positive word-of-mouth but also exhibit brand loyalty, making them less likely to switch to competitors These loyal customers tend to spend more money and are less expensive to attract, highlighting their value to businesses.

Understanding the various factors influencing customer behavior is essential for practitioners in the e-business sector Acknowledging this crucial aspect, it is imperative to conduct further research to enhance our digital landscape, ultimately improving user experience and quality of life.

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QUESTIONAIRE

This research serves as a partial requirement for obtaining a Master of Business Administration degree at the University of Economics Ho Chi Minh City The primary aim of this study is to evaluate the outcomes of the research.

Customer Satisfaction and Service Quality in Online Purchasing in Cambodia

I kindly request your support in achieving our goal by participating in this survey and completing the questionnaires Your cooperation and valuable assistance are greatly appreciated 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