The impact of service quality related to e commerce on customer satisfaction at retail genius (pvt) ltd

APIIT Business, Law & Technology Conference, 2018
July 19th, 2018 | Colombo, Sri Lanka
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The impact of service quality related to e-commerce
on customer satisfaction at Retail Genius (Pvt) Ltd
Vigneswaran Vipushan
School of Business
Business Management School (BMS)
Colombo 06, Sri Lanka
vipushan_1@yahoo.com
Chrishnakumar Janathanan
Dept. of Management
Business Management School (BMS)
Colombo 06, Sri Lanka
chrish@bms.lk
Abstract
Purpose – The purpose of this research is to identify how
the service quality of e-commerce industries cause an
impact on customer satisfaction and to identify the necessity
of service quality in an e-commerce industry.
Design/methodology/approach – This research examines
the impact of service quality of the e-commerce on customer
satisfaction with specific reference to Retail Genius.
Furthermore, qualitative analysis through questionnaire
while three interviews for qualitative analysis were
conducted as the data collection tools for this research. In
addition, the sampling method that was used is convenience
sampling as everyone was a potential customer. The sample
size was limited to 217 respondents. Furthermore, data that
were gathered from the data collection were analysed
through using SPSS software.
Findings – Furthermore, all four hypotheses in the research
were accepted for the relationships between customer
satisfaction and the independent variables such as ease of
use, trust, website design and information quality.
Furthermore, the correlation values between customer
satisfaction and ease of use was 0.712, while the
relationship between customer satisfaction and website
design is 0.770 and relationship between customer
satisfaction and trust is 0.811. And the relationship between
customer satisfaction and information quality is 0.821.
Therefore, the findings show that there are positive
correlations between the dependent and independent
variables.
Originality/value – This research helps to overcome the
problems which are faced in the based articles. Furthermore,
the research creates a functional and less complex process in
order to create service quality to forecast the customer
satisfaction.
Keywords: Digital technology, E-Commerce, SEVQUAL,
Online retailer
Article Type: Research paper
I. 1.0 INTRODUCTION
A. 1.1 Project rationale and significance
In the current era, with the influence of the internet and its
wide application in business, e-commerce has made a huge
impact and a rapid growth in many countries. In fact, e-
commerce helps to bring in more business opportunities and
also helps to increase the revenue growth. Anderson and
Srinivasan (2003) states that, in order to succeed in the
environment of e-commerce business, they have to develop a
loyal customer base in order to try their best to satisfy the
customers and build up a long run relationship with them.
Moreover, organizations begin and close with the customers
therefore, it is an essential factor to build up a relationship
with the customers so that they help to promote and
recommend the organisation to their networks (Anderson et
al, 1994). Prabhu and Ranaweera (2003) states that customer
satisfaction has been considered as an important determinant
for long-run customer behaviour because more the customer
gets satisfied the greater their retention.
1) 1.1.1 Project significance
The following research is significant for a number of
stakeholders and various parties who are included in the
process of research.
Employees: Retail Genius employees are the service
providers of the company. Therefore, the level of service
quality depends on the employees working at Retail Genius.
The success of Retail Genius depends on the quality of
service provided by these employees. Similarly, the success
and failure of a company mostly depend on the customer
satisfaction. Through this research the employees will be able
to evaluate the quality of service and the impact of it on the
customer satisfaction. They will be able to take necessary
actions to improve or maintain their quality of service to the
customers.
Owners: Owners of Retail Genius will be able to evaluate the
performance of the company from the quality perspective.
This research will show the importance of service quality on
the customer satisfaction to the owners of the company. They
will judge the efficiency of the management based on this and
recommend necessary advice to management to improve the

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level of service. Owners will be able to decide the confidence
on the company as well as the management of the company.
Management: This research will give the insight of the
company to the management on the quality of service
provided by Retail Genius. Management can implement a
necessary course of actions to rectify any problems or to
improve the quality of service. The success of the
management depends on the level of customer satisfaction
B. 1.2 Company Background
Retail Genius was founded in May 2015. It is the co-company
of Findmyfare which is online travel company in Sri Lanka.
Retail Genius is Sri Lanka is the number one online retail
market place for consumers to acquire all those hard to get
high end brands. Hence, a market place launched in 2015 with
one vision in mind to give buyers and sellers a singular
platform to meet and to transact online smoothly. Simply
Retail Genius delivers Sri Lanka the best and largest online
marketplace connecting them via any connected device to all
the things they love all in just a few clicks. Currently, over 4
million local active users are connected to a diverse range of
retailers that lead their products internationally and locally
through retail sites. They enable and empower users only with
the best selections. In fact, Retail Genius provides to 150
cities, containing 1500 featured brands with approximately
10,000 listed items live in just under 30 categories (Retail
Genius, 2017).
C. 1.3 Current situation of the company
Retail Genius has been operating in the business for 2 years
now. Since this is a start-up they have been incurring losses
in the past 2 years. The gross sales value of Retail Genius
during the first year was nearly Rs.110mn and it increased to
Rs.240mn during the second year which is 118% growth
when compared to the first year. Furthermore, they have a
customer base of 150,000 which they acquired through
promoting the brand through different channels of marketing
such as social media marketing and other offline channels.
The organisation also has 1500 sellers and 100,000 products
in the website. Moreover, they have been incurring high
losses due to the high investment cost in technology. Retail
Genius has invested most of their funds into developing the
required systems and platforms to automate the process
involved. These investments will result in immediate losses
but will harvest the benefit in the long run. They have
developed all the necessary systems through their own IT
department. They have been able to accomplish these projects
within a short period of time. Therefore, these short-term
losses will be justified by the long-term gains by the
technology developed. Retail genius has been able to increase
their customer base because of the customer loyalty. They are
able to achieve the customer loyalty through the customer
satisfaction. They also have referral programmes for the
customers and points system to value the loyalty of the
customers. They are able to achieve the sales growth from the
first year to the second year through the customer loyalty of
the customers. To reap the benefits of the long-term
investment in technology, customer satisfaction needs to be
maintained. The customer satisfaction does not directly
influence the losses incurred by the Retail Genius. However,
the customer satisfaction needs to be focused to achieve
profits in future as the sales will depend on it (Vigneswaran
Umeshan, Head of finance, Verbal Communication,
September 21, 2017).
D. 1.4 Research aims and objectives
The main aim of this research is to identify how the service
quality of e-commerce industries cause an impact on
customer satisfaction and to identify the necessity of service
quality in an e-commerce industry.
Research objectives:
 To review the literature on service quality and
customer satisfaction.
 To critical review on how service quality impacts
 To conduct primary research by the means of
questionnaires and interviews on how service
quality impacts customer satisfaction.
 To use practical findings and towards establish
conclusion and make a recommendation how
service quality may be used to drive customer
satisfaction.
E. 1.5 Research problems and questions
From the chosen theme, the discussion is on the impact of
service quality related to e-commerce on customer
satisfaction. Furthermore, the primary question here is if
service quality related to e-commerce impacts on customer
satisfaction in the modern world where advanced technology
is present.
F. 1.5.1 Research questions
 How does digital technology impacts e-commerce?
 How does customers determine the service quality
of e-commerce businesses with the impact of digital
technology?
 Why digital technology is significant for an e-
commerce business?
 How does digital technology influence the service
quality of an e-commerce businesses?
II. 2.0 INITIAL LITERATURE REVIEW
The researcher will first provide a brief explanation about e-
commerce. Secondly, an overview of service quality and
about understanding customer satisfaction. Thereafter, the
researcher will critically evaluate on the conceptual
framework that was selected in order to carry out the
research.
Electronic commerce (e-commerce) is a type of business
model or segment of a larger business model that enables a
firm or individual to conduct business over an electronic
network, typically the internet. Moreover, electronic

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commerce operates in all four of the major market segments,
business to business, business to consumer, consumer to
consumer and consumer to business. Furthermore, it can be
thought of as a more advanced form of mail order purchasing
through a catalogue (Trivellas and Tsimonis, 2001).
Therefore, Santouridi et al, (2012) states that the use of the
internet as a mean of shopping goods and services has been
growing over the past few years. The number of internet
stores which are through e-commerce is able to conduct
transactions over the internet and has been steadily increasing
while the revenue from online shopping exposes considerable
growth. The emergence of e-commerce is creating
fundamental changes to the way that business is conducted.
These changes are altering the way in which every enterprise
acquires wealth and creates shareholder value (Grover and
Jackson, 2002).
Overview of service quality
Over the past few years, there has been a heightened
emphasis on service quality and customer satisfaction in
business. Sureshchandar et al, (2003) identified that strong
relationships exist between service quality and customer
satisfaction while emphasizing that these two are
conceptually distinct constructs from the customer's point of
view. Spreng and Mackoy (1996) also argues that service
quality leads to customer satisfaction. In a recent study
conducted by Ribbink et.al (2004) revealed that this
relationship also exists in the e-commerce industry.
Understanding customer satisfaction
Customer satisfaction can be defined as a marketing term
which analyses how a products or services that are supplied
by the organisation meet or satisfies the expectation of a
customer. In fact, customer satisfaction helps marketers and
business owners with a metric which will help in managing
their organisation and various other ways to improve.
Furthermore, customer satisfaction is influenced by certain
factors such as responsive employees, accommodating
employees, employees with a good knowledge, employees
who are willing to help the customers, accuracy level of
billing, billing timeliness, pricing, service quality, good
esteem, clarity of the billing and retention (Souki and Filho,
2008). Moreover, customer satisfaction plays a major in an
organisation because, it acts as an indicator showing how
likely a customer would go for a repeat purchasing. It has
been said that once the customer is totally satisfied, it helps
in contributing 2.6 times more revenue than to a somewhat
satisfied customer (Beard, 2014).
A. 2.1 Ease of use
The way in which customers use a Website for e-commerce
is also important. The success of the information system is
often employed as a measurement of success of the entire
system. Also, ease of use can be an important determinant of
user satisfaction. Moreover, the ease of use is indeed an
essential element of customer usage of computer
technologies (Ribbink et al., 2004), and is of particular
importance for new users (Gefen and Straub, 2000).
Furthermore, this includes items such as functionality,
accessibility of information, and ease of ordering and
navigation (Reibstein, 2002). Customers should be able to
trust the system and use its online purchase capabilities. They
should feel that the system is both under their control and easy
to use. In fact, this also reflects the service provider’s
competence and therefore induces trust and customer
satisfaction (Gummerus et al., 2004).
H1a: There is a relationship between ease of use and customer
satisfaction
B. 2.2 Website design
Website design quality is crucial for online stores (Than and
Grandon, 2002). Website design describes the appeal that
user interface design presents to customers (Kim and Lee,
2002). The influence of website design on e-commerce
performance has been studied extensively. For instance, Cho
and Park (2001) conducted a practical research of a sample of
435 internet users to examine the e-commerce user consumer
satisfaction for internet shopping. They found that the
customer satisfaction is measured using the quality of website
design. Furthermore, a recent study found that website design
factors are strong predictors of customer satisfaction and
loyalty for internet retailers. Hence, the following hypothesis
is mentioned below.
H2a: There is a relationship between website design and
C. 2.3 Information quality
Informational or knowledge component is an increasingly
important part of the product offering today (Glazer, 1991).
Information quality plays a crucial role in shaping consumers
decision to purchase from an adverse influence on the
consumers online shopping experience Interface issues
related to navigation, search, and the ordering process must
be given special attention (Lohse and Spiller, 1998). One
stream of research originates from computer user interface
research, its usability study is being widely used in evaluating
the design of Web sites. It looks at Website architecture,
navigation, design and layout to predict how easy the Website
would be for users to navigate and find what they need.
H3a: There is a relationship between information quality and
customer satisfaction
D. 2.4 Trust
According to Bakos (1991), online shopping context
comprises the interaction customers and online stores.
Moreover, numerous studies have highlighted the importance
of online trust between customers and online stores
(McKnight et al., 2002). In fact, trust is a significant
predecessor of participation in commerce generally and
especially in online settings because of the increased ease
with which online stores can behave opportunistically
(Reichheld and Schefter, 2000). Moreover, trust is defined as
customer willingness to accept vulnerability in an online
transaction based on their positive expectations regarding
future online store behaviours (Kimery and McCard, 2002).

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Therefore, trust influences online customer purchasing
activity and affects customer satisfaction toward purchasing
from an online store.
H4a: There is a relationship between trust and customer
satisfaction.
III. 3.0 METHODOLOGY
A. 3.1 Introduction to research methodology
According to Nordquist (2017), research can be defined as a
process of gathering and evaluating information and data
about a particular context. The purpose of research is to give
rise to new knowledge by answering questions. Furthermore,
Research methodology can be stated as a procedure which
includes systematic methods and steps in order to find a result
for a problem on a specific matter. In addition, research
methodology helps to gain knowledge through the study of
methods. Moreover, various criteria and techniques are used
in order to solve a given problem (Williams, 2011).
Bhattacharyya (2006) states that research methodology is a
method how research problems are solved in a systematic
process. Similarly, it is a process of acquiring how a research
is conducted scientifically. The researcher will be conducting
the research based on positivism and since the research is
based on quantitative method, the deductive approach will be
used and therefore, surveys will be used to gather data.
Moreover, the researcher chooses cross sectional as the time
horizon since the research is done within one year. Findings
and analysis with be done with the 5 interviews with the
employees and 384 questionnaires from the customers.
B. 3.2 Conceptual framework
A conceptual framework is an analytical tool which is
presented in a form of a diagram and also acts as a guideline
in the research. It helps to support the findings and provides
a justification for a particular research problem. Moreover,
the conceptual framework includes variables and the
relationships that the researcher is trying to find out.
Conceptual framework is evolved through the theoretical
framework and links with a particular research problem
(Kumar, 2011).
C. 3.3 Research onion
Research onion is a diagram that imparts an overview of
issues that are important which is needed to be in considered
and analysed before undertaking a research. This model
explains the steps that are undergone by the researcher when
creating an effective methodology which was designed by
Saunders, Lewis and Thornhill (Longbottom and Lawson,
2017).
The researcher will use positivism research philosophy to
carry out the research proposal. Johnson (2017) states that
positivism tends to suppose that the basis for the knowledge
and thought should rely upon on the scientific method. The
advantage of using positivism philosophy in research is that
positivism depends on quantitative data more than qualitative
data because it provides objective data where the researcher
can use to build up the scientific assumption. In addition,
since positivism follows up a well-structured method during
studies, a number of errors that will occur are less and also it
makes the study more accurate. While some of the
disadvantages of using, positivism is even though positivism
tend to disregard human emotions, there is no assurance that
it may happen all the time during the process. Another
disadvantage of positivism is that positivist determines that
positivism tend to be inflexible even though everything can
be measured or calculated (Johnson, 2017)
The researcher will use deductive approach for this research
since it deals with developing of assumptions which are based
on theories which are already been existed. Furthermore, the
deductive approach can be further classified into qualitative
and quantitative research. The advantage of using deductive
approach is that it is time effective and simple to interpret and
use. Additionally, by the deductive approach, many rules can
be clarified easily and clearly. In addition, the deductive
approach allows additional time practising and learning.
Whereas, the disadvantage of using deductive approach is
that it is more formal, encourage the belief that learning in a
language is fundamentally an instance of knowing the rules.
And furthermore, that deductive approach is an uninteresting
lesson to be educated (Alias, 2013).
Huang and Benyoucef, (2013) states that deductive is fully
based on testing hypothesis and the negative side of this is
that it would not encourage contrast thinking and also limits
the creativeness.
The survey will be as the research strategy for this research.
Surveys are used in quantitative researchers and implicate
sampling a proportion of the population. The results are
produced by the surveys are quantitative data and can be
analysed by the means of observations. Moreover, surveys
are mostly used in order to examine the causative variables
among various types of data's (Bryman & Bell, 2011). The
advantage of using survey is that costs low. And also, the data
gathering technique is substantially simpler with the survey,
which will help to use the information sources that can be
compiled and analysed as required for your research needs.
Independent
Variable
Ease of use
Website design
Information quality
Trust
Customer
Satisfaction
Dependent
Variable

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Moreover, the survey enables individuals to feel more
comfortable with their responses. To get correct data, you
require your individuals to be as honest as possible with their
answers. On another hand, the disadvantages of the survey
are that sample choice. The researcher needs to guarantee that
they have a representative sample from which to gather
information. Another disadvantage of the survey is that
rigidity, before creating survey, we have to make sure to
record to all the possible answers and furthermore to program
study accordingly.
In this research, cross sectional will be used to carry on with
research. Cross sectional is used in research in order to collect
information based on data which was collected for a precise
point in time. The advantage of using cross sectional in
research is that it helps to proof or disproof assumptions. And
also, when conducting research with cross sectional, it does
not cost to implement use and the time consuming is less.
While some of the disadvantage of cross sectional is, it cannot
be used to study the performance over a certain period of time
and cross sectional does not help to control cause and the
outcome (Andrews, 2003).
For this research, all types of data generation methods are
used in order to study and analyse the outcomes. Moreover,
methods are used to generate ideas are through interviews,
questionnaires and observation while, secondary research
data are generated through established journals, books and
internet. The benefit of the interview is that easy correction
on speech, any misunderstanding and mistake can be
corrected easily in an interview. The interview also saves
time to choose the best appropriate candidate. Within a very
short time, communication correspondence can be proficient
with the interview. Moreover, the cost of conducting an
interview is low. On the other hand, the drawback of the
interview is that lack of attention, more attention is essential
for a good interview. Another drawback of the interview is
that interviewee may be disappointed while she or he faces
the interviewer's questions which are not related to the field
(Rouse, 2014). The advantage of observation is that it does
not have bias information and information which is received
by the research is the present information. On the other hand,
the disadvantage of observation is it consumes more time and
the information available are limited. Secondary Data is the
data that has been gathered by and quickly open from various
sources. Such data is less expensive and more quickly
conceivable than the primary data. The significant advantage
of utilizing secondary data is financial matters, which means
that data has been gathered by another person so the
researcher doesn't need to invest more to this section of
research. Another advantage of using secondary data is the
that the data gathering process often keeps up a level of ability
and professionalism hat may not be available to individual
researchers or small research projects. On the other hand, the
drawbacks of secondary data are that it may not answer the
researcher's specific research questions or contain specific
information that the researcher would like to have. Another
drawback of the secondary is that the research will not know
exactly how the data collection process was done and how
well it was carried out. The researcher is not usually
conscious of data about how truly the information is
influenced by issues, for example, low response rate or
respondent misunderstanding of specific survey questions
(Rouse, 2016). By using of convenience sampling method,
the author found out the population of the Colombo district
area with a sample size of 217 by means of analysing Morgan
table (Morgan and Riesen, 2016).
IV. 4.0 FINDINGS AND ANALYSIS
This chapter provides a complete analysis through the data
gathered. In addition, the total number of questionnaires that
have been gathered for this research study is 217 and IMB
statistical Package for Social Science (SPSS) is used to
comprehensive analyses the data that has been gathered. The
comprehensive analysis which is conducted is further divided
into separate segments. Furthermore, an analysis of the
sample profile, validity, reliability analysis using Cronbach
alpha statistic, test for normality, linearity, correlation and
regression are conducted. Finally, a significant discussion
will be analysed on the data collection on the research. And
also, a hypothesis test is set about as part of study. The
following study is based on the analysis on the impact of
service quality related to e-commerce on customer
satisfaction whilst the case study based on ‘Retail Genius’. In
addition, the following study of 217 was analysed from the
customers of ‘Retail Genius’.
Cronbach alpha is used to measure the reliability or the
internal consistency in the research. Furthermore, reliability
in this research is measured through Cronbach alpha test. In
addition, Cronbach alpha test is highlighted as a dominant
measure of how consistent the data is within the test statistic
(Tavakol, 2010). The Cronbach’s Alpha in this research is
.932 which is more than 0.6, therefore this shows that these
variables are reliable in order to conduct the research.
Reliability Statistics
Cronbach's
Alpha
N of Items
.932 4
Pearson correlation test determines the relationship between
two variables. Moreover, it shows strength of relationships
and the direction of the relationship that will be taken.
Given below is the summary of the correlation of both
dependent and independent variable. As the independent
variable of ease of use is 0.712 similar to those results of
Gefen and Straub (2000), website design is 0.770 like the
results of Cho and Park (2001), trust is 0.811 similar to
Lohse and Spiller (1998) and information quality is 0.821 in

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similarity to the results obtained by Kimery and McCard
(2002).
Variables Pearson correlation
Avg_CS
Avg_EOU
0.712
Avg_CE
Avg_WD
0.770
Avg_CE
Avg_Trust
0.811
Avg_CE
Avg_IQ
0.821
Model Summary
Model R R
Square
Adjusted R
Square
Std. Error of
the Estimate
1 .854a
.729 .724 .39868
a. Predictors: (Constant), Avg_IQ, Avg_EOU, Avg_WD,
Avg_Trust
According the table shown above, it provides R and R2
values. Furthermore, the R value represents the simple
correlation and which is 0.854 which also represented a
higher degree of correlation (The R column) while, the R2
value which indicates the customer satisfaction which can be
explained by the independent variables such as ease of use,
website design, trust and information quality are shown in the
R square column which can be predicted as 72.90%. This
indicates that the variables have been correctly chosen for the
model.
ANOVAa
Model Sum of
Squares
df Mean
Square
F Sig.
1
Regres
sion
90.288 4 22.572 142.0
11
.000b
Residu
al
33.537 211 .159
Total 123.825 215
a. Dependent Variable: Avg_CS
b. Predictors: (Constant), Avg_IQ, Avg_EOU, Avg_WD,
Avg_Trust
The above table represents the significance value which is
indicated is at 0.000 which is a good P value. And also, this
model also represents a good significant between the model
factors.
Coefficientsa
Model Unstandardized
Coefficients
Standardi
zed
Coefficien
ts
t Sig.
B Std.
Error
Beta
1
(Consta
nt)
.276 .156 1.77
6
.077
Avg_EO
U
.140 .059 .139 2.37
6
.018
Avg_W
D
.240 .061 .250 3.92
7
.000
Avg_Tru
st
.229 .087 .228 2.64
7
.009
Avg_IQ
.325 .089 .311 3.64
7
.000
a. Dependent Variable: Avg_CS
Regression equation
Y= mx + c
Y = mx1 + mx2 + mx3 + mx4 + c
Customer satisfaction= 0.229 (trust) + 0.140 (ease of use) +
0.325 (information quality) + 0.240 (website design) + 0.276
Customer satisfaction variable was identified that it was
affected by the other independent variables of the research. In
addition, ease of use, trust, website design and information
quality were emphasised to be statically significant.
Moreover, the regression and correlation analysis shows that
there is a positive relationship between independent and
dependent variables. Customer satisfaction variable was
identified that it was affected by the other independent
variables of the research. In addition, ease of use, trust,
website design and information quality were emphasised to
be statically significant. Moreover, the regression and
correlation analysis shows that there is a positive relationship
between independent and dependent variables.
The analysis provided using the SPSS software based
statistical analysis is important in order to identify four main
hypotheses, determining the relationship between ease of use,

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trust, information quality and website design on e-commerce
along with the dependent variable, customer satisfaction.
Hence, the results which was provided from SPSS software
helped to show that the four hypotheses were accepted.
V. 5.0 CONCLUSION AND RECOMMENDATIONS
It has been evident that the service quality has an influence
on the customer satisfaction in the e-commerce industry when
customers faces difficulty in a selecting a required product as
each organisation adopts new features and new technology
development which available on the alternate e-commerce
platforms. In addition, e-commerce industry is considered as
fast emerging industry in Sri Lanka due to the rapid growth
of e-commerce business. Hence, this research has identified
that the independent variables will have an impact on the
customer satisfaction along with identifying how they are
correlated with the dependent variable in order to identify the
relationship between each variable. Moreover, the total sum
of regression value for the variables were identified and the
R value for the independent variables was 0.854. In addition,
the Pearson correlation between the independent variable
ease of use and the dependent variable is valued at 0.712 and
showing the significant at 0.01 while the hypothesis is also
accepted. Furthermore, the Pearson correlation between
website design and customer satisfaction is valued at 0.770
and significant valued at 0.01. The hypothesis for the website
design is accepted in the research. Likewise, the Pearson
correlation between the information quality and customer
satisfaction is valued at 0.821 while the significant value at
0.01. And also, the hypothesis has been accepted. Moreover,
trust also has a relationship with the customer satisfaction in
which the Pearson Correlation between trust and customer
satisfaction valued at 0.811 while the significant valued at
0.01. The hypothesis for this relationship is also accepted.
During the research process, the author has analysed the
results which was gathered through data collection for this
research. Furthermore, the author determined problems
during the research and have provided recommendation for
Retail Genius.
Issue 1 - From the questionnaire conducted, 9.68% of the
responders’ states that the process of placing the order was
not really easy.
Recommendation - Online shopping retailers provides a fast
shopping experiences for their customers in which they can
find easily what they are looking for, find a new product and
quickly checkout to get back to their day. Furthermore, online
shopping retailers, placing is a time-consuming process with
limited information. In addition, ease of placing orders will
help the e-commerce businesses to gain repeat customers and
orders (Anderson and Anderson, 2002). Therefore, Retail
Genius should develop their website in a manner in which
customers are comfortable in accessing the website.
Moreover, in order to overcome this risk, the Retail Genius
should simplify the placing order more conveniently by
providing navigation throughout the process.
Issue 2- From the questionnaire conducted, 8.23% of the
responders’ states that I am not very confident that my
personal information will be kept confidential.
Recommendation - According to Hussain (2013), e-
commerce can be defined as conducting business online. In
addition, it plays a vital role in the growth of industry and
also, convenient and faster method of conducting business.
Furthermore, online transactions are in increase and at the
time same increase in number and types of attacks against the
security of online payment systems. Due to these threats, the
security of the system resulting in systems which may be
compromised and less protected leads in consumer privacy
issues. Furthermore, if personal information is copied or
reused by anyone who are not authorized to access, this leads
to loss of confidentiality. Some types of information are very
confidentially which is an important attribute in e-commerce
industry (Phelps, Nowak and Ferrell, 2000). Therefore, in
order to overcome this risk, Retail Genius can avoid store the
personal information of the customers such as customer’s
credit card details. Moreover, the website of the Retail Genius
should stay up to date with the security patches and demand
strong passwords from the customers.
Issue 3 - From the questionnaire conducted, 3.69% of the
responder’s states that the prices offered were not appropriate
to the items.
Recommendation - A good pricing strategy is a vital
component in for an e-commerce business. In addition, it
helps to determine the pricing point in which the organisation
can maximize the profits on the sale of the products.
Furthermore, e-commerce product pricing is the most
effective and efficient marketing tool in order to increase the
conversion rate optimization. By means of applying different
pricing strategies, the e-commerce business will sustain,
operate effectively and profitable in the long run (Hinz, Hann
and Spann, 2011). Therefore, Retail Genius needs to provide
a appropriate pricing for its product while targeting all types
of customers. Moreover, Retail Genius should place their
pricing considering the quality of the products.
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