A Study on the Customer Satisfaction and Customer Loyalty of Furniture Purchaser in on-Line Shop

The online issue and full text archive of this journal is available at www. emeraldinsight. com/1598-2688. htm AJQ 11,2 146 A construct on the node triumph and guest faithfulness of piece of article of piece of furniture emptor in online(a) shop Yongju Jeong and Yongsung Lee division of Business Administration, The University of Incheon, Incheon, S discloseh Korea Abstract Purpose The paper in die hards to explore the in? uencing constituents on client merriment and node inscription in the meshing obtain nub through run whole tone based on the entropy obtained from furniture emptor.Design/methodology/approach The inquiry get and the relevant research venture were set up through the entropy derived from the existing researches, and then the relevant hypothesis was tested through simple relapse go forthline. Findings As vector sum of outline, the in? uencing cyphers on client ecstasy of furniture buyer in the profits shop amble were proven to be harvest-home miscellanea of operate forest, tangibles, responsiveness, interaction, stability, and node blessedness was set to be a signi? tint in? encing factor on guest trueness in the meshing shop center field. Research limitations/implications Although this airfield was carried show up against developed furniture purchaser in selecting the samples, it reached the limit in considering the diversity of internet shopping centre, and pick out into on-line and off-line concurrent shopping center of at xtion and internet scoop shopping nub. Originality/value The reading reviews the renovation whole tone legal profession suggested in the existing literature on usefulness quality, saucily applying it to on-line helper of processs environment, and then ? ding out the in? uence of helping quality in internet shopping nerve centre on guest rejoicing, customer consignment, and redemption intention as well as in which property they argon built up. Keywords Internet, Shopping, Customer atonement, Customer devotion, Electronic trading Paper type Research paper The Asian daybook on Quality Vol. 11 No. 2, 2010 pp. 146-156 q Emerald Group Publishing Limited 1598-2688 inside 10. 1108/15982681011075952 1.Introduction Owing to rapid development of instruction communication, e-commerce through internet is picking up briskly throughout the world. According to the aspect of Korea subject area Statistical Of? ce, the volume of transaction in interior(prenominal) cyber shopping midpoint in Korea steadily grew starting from 2001 when it reached approximately 3,400,000,000,000 won, which is well over 20,000,000,000,000 won in 2009. Like this, internet market is growing in non-negligible scale, and crimson it is expected to grow more and more in future.Development of assorted information communication engineering science including computer has changed the consumption life of the consumers, and particularly tons of changes ta ke place in the consumers selection through their end making. Such changes suggest a new environment characterized by planetary market, collapse of hierarchy, and economy of information era. Internet shopping amble is a business that can be operated at stripped-d make expense with minimum labor force, which allows to ecure wrong competitiveness by minimizing distribution stages, and further furnish better customer expediency than the existing off-line shopping by providing various information. These days, rapid growth of do-it-yourself furniture stimulates the tendency of purchasing furniture through internet shopping. On-line furniture sales formation was attempted by a small-scale ? rm at the beginning, but bombastic furniture suppliers soon after jumped on to the on-line market heap wagon without hesitation (The Korea Economic Daily, 2007, July 16). This study is intended to ? d out the factors of customer expiation and customer loyalty by exploring the characteristi c of the substance abusers regarding customer satisfaction and customer loyalty of the furniture purchasers in the internet shopping mall, and then reviewing the literature on customer satisfaction and customer loyalty, bringing experimental research through statistical selective information obtained from questionnaire survey by establishing stick and hypothesis after reviewing the literature on customer satisfaction and customer loyalty in frame to discover the characteristic that appeared through the users purchase of furniture. . Theoretical backgrounds 2. 1 Internet shopping mall Internet shopping allows the purchaser to search and survey the information on run or harvest-home by accessing internet shopping come in through internet in remote place instead of sell shop as a physical space, and then enables to select or order the goods, and ultimately pay the money use reliance bankers bill to purchase the goods/ avails (Ruth, 2000). It is de? ed as the collective conce pt of on-line shops having the products in a material body of lines where advertisement and exhibition of the products for internet shopping is carried out through electronic shopping mall, server is equipped with data like prices, structures, characteristics of various products, nettpage provides information on the product together with multi-media information (Hoffman and Novak, 1996). Internet shopping mall is characterized by connecting manufacturing business directly with ? al end-user while traditional off-line market comprises four steps from producer through ? nal consumer. In addition, it is rarely restricted by time/space, and golden to acquire information from customer. Traditional commercial transaction requires a puffy amount of investment to maintain ? xed assets and human resource, while e-commerce requires investment mainly for system installation only. Besides, in terms of advertisement, promotion, and so forth owing to modulation to two-way from the existing one-way, it is changed into the style of one-to-one connection with customer. . 2 piece of furniture manufacture The structure of Koreas furniture industry is driven to domestic demand while Taiwan to export market. Therefore, the industry is in truth wakeful in its management foundation owing to extremely ? erce competition inwardly the same industrial circle, generalized phenomenon of design being imitated and the subsequent debasement of pro? tability, etc. In addition, because of insuf? cient timber source at home, the industry depends on import from In makesia, etc. for 95 percent of major painful materials such as plywood for furniture production, etc.Domestic furniture industry has structural problems in both(prenominal) design and distribution sectors. Especially, in distribution sector, attacked by aggressive merchants who seek unlawful deals with low-price sale, general tax payers A study on customer satisfaction 147 AJQ 11,2 148 with sincerity tend to lose their competition foundation, and furthermore event companies or representatives hold their own discount sales ruthlessly, disturbing domestic distribution order, yielding in sharp-worded drop of quality and subsequent damage to the consumers.Accordingly, it is necessary to develop our furniture business circle again in such a flair of reinforcing production foundation centered on own specialized product of each while expediting cooperative apprisalship with professional companies for the other non-specialized products, and and so it is needed to establish production and operation dodging under new system, and then reinforce the competitiveness in price and distribution. 2. 3 return quality Service think ups an impalpable body process or bene? provided by the dish outs provider to customer, which can be tangible product and something that is added to intangible serve, or in an in interdependent form (Kotler, 1991). With regard to the nature of assistance, thither exist some different opinions among the researchers, but gain is known to commence four properties being intangible, inseparability of production and consumption, heterogeneity, and perishability (Parasuraman et al. , 1985).The concept of divine service quality can be represented in different way depending on human face and approaching method. Especially, service quality has a candidate emphasized by subjective assessment recognized by each individual customer rather than that get wordd objectively being dif? cult to measure owing to its specialty. Generally, the de? nition of quality varies depending on the methods of approach driven to transcendental realize, product, manufacture, value, and user (Garvin, 1984). Parasuraman et al. 1985, hereinafter PZB) de? ned cognitive service quality, aside from objective quality, is a type of attitude that is the relation amidst consumers recognition of the solution of service provided by the plenty and the expectancy of consumer that should b e provided by the corporation in their opinion. Accordingly, cognitive service quality was observed through the degree and direction of the expiration existing amidst consumers recognition and expectation (Woo-seong, 2006).According to PZB, although there exists the difference of relative importance that assess the service quality depending on service types, there exists basically similar assessment criteria, and therefore the service quality observation system developed by them is the decisive factor of service quality that may be generally applied to service industry. Since then, Parasuraman et al. (1988) discovered that there exist correlation among ten decisive factors of service quality that were examined from Parasuraman et al. 1985) conducted against the corporations such as machinery repair and maintenance, bank, long-distance telephone company, credit card company, and security broker. Finally, they named SERVQUAL for it by combining ? ve factors (tangibles, reliability, responsiveness, assurance, and empathy). SERVQUAL can be as well measured by gap score between the score of consumers performance recognition and score of expectation. Five dimensions comprising SERVQUAL and the description of each dimension is as shown in Table I.As a result of reviewing the source research on the service quality of on-line shopping mall, it was found that the study on the satisfaction with loyalty and consumer satisfaction as result of the service quality of on-line shopping mall was conducted in such a manner that the property of on-line shopping mall was re? ected in the existing service quality dimensions to develop the dimension of on-line shopping mall service quality. 2. 4 Customer satisfaction and customer loyalty 2. 4. 1 Customer satisfaction.In the study on customers satisfaction/dissatisfaction, there exists inconsistency concerning its concept among the researchers, and a variety of attempts are carried out in its measurement. The de? nition of custom er satisfaction can be divided into two de? nitions driven to outcome and driven to process (Lee, 1995). From the aspect driven to outcome, customer satisfaction is conceptualized as the result of consumption experience such as the recognition matte up by customer that the price paid is rewarded in proper or improper manner, emotional reception against the retail shop or purchasing behavior related with purchased speci? product or service, or emotional reaction against the behavior in wider center such as consumers behavior or the market on the whole, comprehensive mental state that occurs when the emotion due to inconsistent expectation is combined with the emotion prior to the customers experience of purchase. The aspect driven to process is useful in that it generalizes the whole consumption experience, and it enables to examine an important process that reaches customer satisfaction through the measure of detect unique elements at each stage (Oliver, 1981). Internet shoppin g mall is a web direct in virtual space in the name of internet.Chen and Wells (1999), in beat the attitude to the web site, suggested three aspects informativeness that shows the degree of usefulness of information provided by web site to the visitant, entertainment of web site that shows the degree on how it meets emotional fatality and desire of the visitor, and organization of web site that shows the degree on how it provides the visitors desired information and product/service in well-off and prompt way. 2. 4. 2 Customer loyalty. Typically, customer loyalty means the property of customer to repeatedly purchasing speci? c subject (brand, product, service, shop, etc. with meat regardless of the change in the circumstance (Jacoby and Chesnut, 1978 Oliver and Swan, 1989). There are the uncertains for measuring customer loyalty such as devotion into speci? c subject, buy back intention, and intention to recommend to others, etc. (Reichheld, 1993). Especially, customer loyalty is known to deck out from the result of customer satisfaction in general. Customer loyalty in on-line can be de? ned the tendency of customer to keep on using speci? c web site with affection (Anderson and Srinivasan, 2003). Customer with gamy loyalty is supposed to keep a speci? web site with him/her using bookmark function, frequently visit it, and show high site union with high detention time. In addition, Dimension Tangibles Reliability responsiveness sureness Empathy De? nition Physical facility, equipment, outlook of employee Ability to perform the committed service in reliable and correct manner Will of assisting the customer and providing quick service to the customer Knowledge, courtesy, ability of the employees that give rise to reliability and assurance elaborate concern and individual interest in the customer A study on customer satisfaction 149 Table I. Five types of SERVQUALAJQ 11,2 they are very friendly with the site, and positively promote or recommend it to t he others. The customers of high customer loyalty like this is very possible to purchase the goods from that site, and tends to systematically purchase again from that site in spite of positive marketing activity by other sites (Anderson and Srinivasan, 2003). 3. Design of research 3. 1 Research framework and establishment of research hypothesis This study aims for reviewing service quality measure suggested in the existing literature on service quality, newly applying it to on-line services environment, and then ? nding out the in? ence of service quality in internet shopping mall on customer satisfaction, customer loyalty, and repurchase intention as well as in which dimension they are built up. Therefore, research model for empirical analysis was established as Figure 1 based on the result of precedent research. As research model, based on the results of previous studies Lee and Lin (2005), Lee (2006), Jeon (2006), etc. the dimension of on-line service quality were suggested to ? nd out its in? uences on customer satisfaction, customer loyalty, and repurchase intention H1. harvest-tide diversity of service quality in on-line shopping mall bequeath piddle positive (? in? uence. H2. Tangibles of service quality in on-line shopping mall testament have positive (? ) in? uence. H3. responsiveness of service quality in on-line shopping mall will have positive (? ) in? uence. H4. interaction of service quality in on-line shopping mall will have positive (? ) in? uence. H5. Stable service quality in on-line shopping mall will have positive (? ) in? uence. H6. Customer satisfaction with service quality in on-line shopping mall will have positive (? ) in? uence on customer loyalty. Service quality Product driversity H1 Tangibles H2 H3 H4 interaction H5 Customer satisfaction H6 Customer loyalty 50 responsiveness Figure 1. Research model Stability 3. 2 Method of research In this study, the questionnaire survey was targeted against the customers aged from 20s to 50s who had experience of purchasing furniture from on-line shopping mall. To accomplish the purpose of research, questionnaire survey was carried out for approximately ten days from August 6, 2009 to August 15, 2009. Total 140 questionnaire sheets were collected out of 150 distributed to the subject. Among 140 sheets collected, 131 were inviteed except nine returned deemed to be answered with insincerity.In this study, survey was targeted to the persons who purchased the products in furniture category 1 made of blade or wood available in on-line shopping mall. 4. empiric analysis 4. 1 Reliability analysis In this study, in order to measure reliability, Cronbachs a coef? cient internal consistency analysis was used. The campaign of adopting Cronbachs a coef? cient was to enhance variable reliability by choose out the items affecting reliability and then ruling out those variables when some(prenominal)(prenominal) items were used to measure the same concept.Normally, it prove s to be suf? cient when Cronbachs a coef? cient appears at least 0. 6, and therefore reliability coef? cient on each variable was suggested in Table II to show reliability for each item. 4. 2 hardship analysis In this study, the result of exploratory factor analysis on service quality, customer satisfaction, and customer loyalty in deriving the factors that in? uences on customer satisfaction and customer loyalty of furniture purchaser in the case of on-line shopping mall as shown in Table III.As result of factor analysis, product diversity of service quality, tangibles of service quality, responsiveness of service quality, interaction of service quality, stable service quality, customer satisfaction, and customer loyalty were classi? ed to be the factors, and the variable to be excluded being less than 0. 5 in factor loading did non appear. 4. 3 Testing of hypothesis To test the hypothesis, analysis of correlation among variables and nine-fold regression analysis between anteced ent and dependent variables were carried out.Multiple regression analysis normally aims for estimating one dependent variable from the knowledge of several variables. Accordingly, this would enable to ? nd out the In? uencing variable acting on the use of internet shopping mall Product diversity of service quality Tangibles of service quality Responsiveness of service quality fundamental interaction of service quality Stable service quality Customer satisfaction Customer loyalty Cronbachs a coef? cient 0. 827 0. 773 0. 829 0. 843 0. 758 0. 739 0. 917 A study on customer satisfaction 151 Table II. extend of reliability analysis AJQ 11,2 agentive role Product diversityComponent Variable divisor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6 Factor 7 sv1 sv2 sv3 st1 st2 st3 st4 sr1 sr2 sr3 sr4 sc1 sc2 sc3 sc4 ss1 ss2 ss3 cs1 cs2 cs3 cr1 cr2 cr3 0. 840 0. 770 0. 791 0. 129 0. 087 0. 028 0. 419 0. 145 0. 161 0. 113 0. 071 0. 264 2 0. 011 0. 189 0. 104 0. 329 0. clxx 0. 187 0. 466 0. 363 0. 269 0. 180 0. 180 2 0. 027 0. 066 0. 238 0. 123 0. 820 0. 851 0. 772 0. 667 0. 231 0. 160 0. 104 0. 048 0. 175 0. 166 0. 162 0. 304 0. 019 0. 139 0. 069 0. 111 0. 109 0. 141 0. 019 20. 006 0. 006 0. 138 0. 146 0. 114 0. 113 0. 135 0. 195 0. 045 0. 707 0. 712 0. 801 0. 810 0. 075 0. 157 20. 040 0. 321 0. 299 0. 83 0. 134 20. 001 0. 141 0. 221 0. 213 0. 203 20. 024 0. 103 20. 056 0. 181 0. 052 0. 192 0. 112 0. 153 0. 263 0. 359 0. 086 0. 041 0. 682 0. 780 0. 807 0. 649 0. 315 0. 172 0. 125 0. 197 0. 089 0. 042 0. 035 0. 065 20. 023 0. 011 0. 129 0. 219 0. 225 0. 133 0. 205 0. 026 2 0. 095 2 0. 105 0. 221 0. 198 0. 167 0. 111 0. 168 0. 255 0. 573 0. 838 0. 854 2 0. 042 2 0. 219 2 0. 106 2 0. 154 2 0. 138 2 0. 263 0. 003 0. 172 0. 202 0. 227 0. 134 0. 190 0. 041 20. 059 20. 072 0. 208 0. 172 0. 221 0. 199 0. 261 0. 303 0. 279 0. 169 0. 099 0. 634 0. 751 0. 844 0. 091 0. 120 0. 004 0. 065 0. 109 0. 090 20. 097 0. 068 20. 015 0. 163 0. 05 0. 102 20. 079 20. 288 0. 254 0. 269 0. 233 0. 253 0. 233 20. 031 20. 014 20. 050 20. 024 20. 091 0. 808 0. 834 0. 545 152 Tangibles Responsiveness Interaction Stability Customer satisfaction Customer loyalty Table III. Result of factor analysis Notes Extraction method principal component analysis rotation method varimax with Kaiser normalization rotation converged in six iterations strategy of enhancing customer satisfaction and customer loyalty by grasping which factors in? uence on customer satisfaction and customer loyalty of furniture purchaser in on-line shopping mall, and to which degree it has in? uence if so.In carrying out regression analysis, it may produce wrong interpretation if independent variables are not mutually independent or regression coef? cients are estimated incorrectly. In other words, there could exist the problem of multi-collinearity. In order to conduct the test for equal variance and normality that are the premise of treble regression analysis, testing of multi-collinearity was carried out. Pea rsons correlation was used in the analysis of correlation, which shows there exist no problem of multi-collinearity (Table IV). 4. 3. 1 Testing of hypothesis between customer satisfaction and antecedent variable.As the antecedent factor of customer satisfaction, diversity of service quality, tangibles of service quality, responsiveness of service quality, interaction of service quality, and stable service quality were set up, and then six-fold regression analysis was conducted to test the in? uence on customer satisfaction (Table V). Table VI is the result of analysis on the signi? cance for individual variables. for each one b coef? cient appeared 0. 361 for diversity of service quality, 0. 526 for tangibles of service quality, 0. 364 for responsiveness of service quality, 0. 486 for interaction of service quality, and 0. 32 for stable service quality. Standardized regression coef? cient (b) that represents reconstructive concept Diversity Tangibles Responsiveness Interaction St ability Customer satisfaction Customer loyalty Customer Customer Diversity Tangibles Responsiveness Interaction Stability satisfaction loyally 1 0. 201 * * 0. 125 * 0. 256 * * 0. 534 * * 0. 361 * * 0. 431 * * 1 0. 075 0. 601 * * 0. 512 * * 0. 526 * * 0. 367 * * A study on customer satisfaction 153 1 0. 219 * * 0. 438 * * 0. 364 * * 0. 547 * * 1 0. 608 * * 0. 486 * * 0. 249 * * 1 0. 332 * * 0. 341 * * 1 0. 236 * * 1 Notes Correlation coef? cient is signi? cance at *0. 05 and * *0. 1 levels, respectiviely, at both sides n ? 131 Table IV. Correlation matrix of constructive concepts R2 0. 487 Adjusted R 2 0. 476 F-value 50. 647 F-signi? cance 0. 000 Durbin-Watson 2. 016 Table V. ANOVA Independent variable (Constant) Diversity Tangibles Responsiveness Interaction Stability Unstandardized coef? cients b SE 2 0. 005 0. 361 0. 526 0. 364 0. 486 0. 332 0. 041 0. 061 0. 098 0. 057 0. 060 0. 054 Standardized coef? cients b 0. 360 0. 518 0. 375 0. 497 0. 356 T 20. 073 8. 053 12. 438 8. 215 10. 573 7. 663 Signi? cance probability 0. 292 0. 000 0. 000 0. 000 0. 000 0. 000 Note Dependent variable customer satisfactionTable VI. Multiple regression analysis between customer satisfaction and antecedent variable importance of regression coef? cient appeared 0. 360 for diversity of service quality, 0. 518 for tangibles of service quality, 0. 375 for responsiveness of service quality, 0. 497 for interaction of service quality, and 0. 356 for stable service quality. In the result of analysis, absolute value of beta coef? cient for tangibles of service quality appeared tumescent and therefore, it is deemed to be the variable of best explanation of all. F-value of regression model was 50. 647 (? 0. 000) proved to be of signi? cance, and Durbin-Watson value was 2. 16 (close to 2) deemed to satisfy the assumption of independence. As result of testing, the coef? cient of determination (R 2) one of the measures that show the adequacy of regression estimated from sample data to the obse rved value appeared 0. 476. Therefore, 47. 6 percent of variation on customer satisfaction that was the dependent variable as result of regression analysis was well explained by antecedent variables. AJQ 11,2 154 Thus, ? ve factors such as diversity of service quality, tangibles of service quality, responsiveness of service quality, interaction of service quality, and stable service quality were found to directly in? ence on customer satisfaction at a signi? cant level. 4. 3. 2 Testing of hypothesis between customer loyalty and customer satisfaction. F-value of regression model was 38. 763 (? 0. 000) proved to be signi? cant, and Durbin-Watson value was 1. 912 (close to 2). Therefore, it is deemed to satisfy the assumption of independence (Table VII). The coef? cient of determination ( ) was 0. 212, and therefore 21. 2 percent of variation on customer satisfaction that was a dependent variable as a result of regression analysis. That is, customer loyalty is explained by customer sat isfaction, and it was found to directly in? ence on customer loyalty at a signi? cant level (Table VIII). 5. Conclusion This study aimed for analyzing the in? uence on customer loyalty exerted by product diversity, tangibles, responsiveness, interaction, stability, and customer satisfaction that are suggested as service quality factor felt by furniture purchaser in internet shopping mall. The result is as follows. First, as result of exploring the factors in internet shopping mall service quality which in? uence customer satisfaction, it was proved product diversity, tangibles, responsiveness, interaction, and stability have positive in? ence on internet shopping mall customer satisfaction. As on-line shopping mall market reaches maturity, it is thinking time-saving is the main reason for the customer to prefer internet shopping, and the shopping malls sharpen on their service on such needs. Second, as for the relationship between customer satisfaction and customer loyalty concern ing internet shopping mall service quality, more satisfaction with internet shopping mall appeared to have more positive in? uence on customer loyalty. In result, it seems that the consumer satis? ed with internet shopping mall can keep consistent relation with internet shopping mall in future.As aforementioned, the result of this study shows that excellent service quality of internet shopping mall slattern becomes the factors that can improve the competitiveness of shopping mall, and furthermore the internet shopping mall could R Table VII. ANOVA 0. 216 Adjusted 0. 212 F-value 38. 763 F-signi? cance 0. 000 Durbin-Watson 1. 912 Independent variable Table VIII. Multiple regression analysis on customer loyalty (Constant) Customer loyalty Unstandardized coef? cients b SE 2 0. 002 0. 236 0. 052 0. 051 Standardized coef? cients b 0. 238 T 20. 036 5. 603 Signi? ance probability 0. 962 0. 000 Note Dependent variable customer loyalty raise customer loyalty if they would improve service qua lity consistently to get satisfaction from the customers. 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A study on customer satisfaction 155 AJQ 11,2 Further reading Gefen, D. and Straub, D. W. (2000), The relative i mportance of perceived save of use in IS adoption a study of e-commerce adoption, Journal of the Association for Information Systems, Vol. 1. About the fountains Yongju Jeong is graduated from Korea National Open University. He is also graduated in MA from University of Incheon and doing PhD in University of Incheon.Yongju Jeong is the corresponding author and can be contacted at emailprotected net Yongsung Lee is graduated from the discussion section of Administration, University of Incheon. He is also graduated in Information and Communication Engineering, University of Incheon. He received his Master of Business Administration from University of Incheon Admission. 156 To purchase reprints of this article enthral e-mail emailprotected com Or visit our web site for further flesh out www. emeraldinsight. com/reprints