Online Shopping And Customer Satisfaction: A Study On NEXT PLC In UK

Background of the Study

1. How are marketing strategies and promotions different between on-line and instore.

2. What type of different shopping and services options provided online? How do they satisfy customers?

3. What are customer’s perceptions on on-line security on NEXT?

Online shopping engages purchase of products, sales, and services over the platform of internet. During last few years, it has become increasingly popular in UK (Wu 2013). As the competition level in this retail market increased day by day, all the retail organizations are trying to gain more and more customers with the old clients. In this context, Ludin and Cheng (2014) has commented that applying best E-service, proper designing of website, E-loyalty, system and service satisfaction are key to attain customers satisfaction.

In today’s competitive market world, business success totally relies on fulfillments of customers requirements (Guo, Ling and Liu 2012). Greater customers’ satisfaction reflects the brand image of any organization. As the internet connectivity is increased at greater speed and with greater efficiency, UK retail industries have turned more customers towards their online shopping channel (Luo, Ba and Zhang 2012). As mentioned by Shiau and Luo (2012), the use of these retailing facilities, retail sectors in UK transforms their potential clients to the real one and offers them satisfactory services. However, this retail marketing strategies needs to be modified by considering the technical factors, shopping factors, product factors and logistic factors, which are greatly, affected the customers’ satisfaction over online platform (Kim et al. 2012).

The study focuses on NEXT plc organization in UK, as it is considered as the retail heart of the country. Their marketing strategies, promotions, and business operations have been evaluated to analyze the factors that are influencing or affecting its customers.

Online shopping eases the lives of the people at the greater extent. E-sales have overtaken the in-store marketing sales, and it is assumed that in the coming year sales over the internet will reach almost 91 billion pounds (Wu et al. 2014). However, the researcher has identified that people are sometimes afraid of online shopping as they have some serious concerns about online security. While shopping over the internet, customers have to give their personal information with financial details such as credit card details, net banking details for transaction purposes (Fang et al. 2014). Customers are afraid of the fact that in the absence of proper security over the online platform, these confidential details can be hacked. This problem is affecting the online sales of NEXT organization so that it becomes very difficult for the organization to maintain their customer loyalty.

Problem Statement

Yoon et al. (2013) pointed out that in order to combat this problem, management authorities of NEXT PLC has to strengthen their online security features such as proper privacy setting mechanism of their business website. For long-term sustainability, the organization has to provide a pleasant and user-friendly shopping environment to the customers. Nevertheless, in order to add more security setting in old security infrastructure, adoption of new information technology tools and trends can misbalance the financial structure of the organization. Therefore, this research study has taken the initiatives to find out alternative solutions, which can help to draw more consumers by fulfilling their demands successfully.

This particular research has aimed to identify and address the online shopping factors that affect customers’ satisfaction of NEXT plc and the marketing strategies that attract new clients by retaining the old customers.

I will establish proper framing of research objectives with the relevance of research aims. I will illustrate several section of this research study with accordance of the research objectives. This will allow categorizing the broad topic into small and appropriate forms. To achieve the research aim, I have enlisted the following objectives:

To identify the difference between marketing and promotions strategies of in-store and online store;

To identify the importance of security factors in online store that resulted customer satisfaction;

To recognize the influence of online shopping and service options on customer satisfaction;

Hypothesis 1:

H₀: Online security factors have significant impacts on customer satisfaction;

H₁: Online security factors have no significant impact on customers’ satisfaction;

Hypothesis 2:

H₀: Different shopping and service options have significant influence on the customer satisfaction;

H₁: Different shopping and service options have no influence on customer satisfaction;

I have used the research questions as a part of the research study to understand each and every concept in a detailed and easy way.  Research questions throw lights on the analysis area and emphasize on it to obtain useful, valid and relevant information as per the research topic. List of research questions are listed below:

What are the differences between online marketing and promotional strategies and in-store marketing and promotional strategies?

Is online security aspect is one of the major feature of customer satisfaction?

Is online shopping and service option has significant contribution towards customer satisfaction?

Customers’ satisfaction is directly related to the financial position and brand image of the organization. Significant engagement of a large number of potential customers inside the business operations helps to reluctant and effective output from the business process. The main and major reason to choose this topic for the research study is to analyze the importance of online shopping on customers’ lives. Significant growth of online marketing has changed and revolutionized customers’ shopping experience.  People are always interested in buying online due to its several benefits such as ease of use, convenience, 24/7 availability, quick service and most importantly to avoid long queue and to save time (Pappas et al. 2014). Thus, the crucial factors, which are responsible for the significant changes in customers’ satisfaction due to these online shopping strategies need to evaluate to make a strong position for the organization in this competitive marketing world.

Research Aim

In this century, UK retail market has entered into a new globalization phase, where usage of the internet changes the demands of the customers and sometimes affects their satisfactions. It is the best way to communicate with the customers and to get feedback from them about the products and services provided over the internet. This feedback helps the organization to agile their business process with flexibility for better productivity and better improvements in future. From the last two decades, NEXT plc has served their customers through their online distribution channel. However, some of their customers put their concerns that despite the convenience of online shopping; they do not get the facilities like to try the clothes for one time (Rose et al. 2012). Some of the customers are worried about the fact that their personal or financial details such as credit card information will be leaked. Therefore, online purchasing is related to several factors such as web information quality, web system quality, tangibility and reliability, which are the major area of this research study to evaluate and analyze.

The main and major purpose to select this topic for the research study is to identify and analyze the effects of online shopping factors on customers’ loyalty and satisfaction. This research aims to understand and reveal the priority factors of online purchasing that has significant effects on customers’ demands and requirements (Chen 2012). By this particular research study, I will try to focus on the marketing strategies and promotional activities of NEXT organization and how their online shopping channel satisfy the customer with proper security rules and legislations.

The major purpose of this research aim is to increase the profitability of NEXT by maintaining a large number of customers through their online shopping strategy. By the use of various concepts and several theories, I will try to explain the relationship of customers’ satisfaction with online marketing plans.

I have tried to make the small section of the research topic so that each perspective of the entire study can be observed and highlighted in the systematic fashion. To fulfill the research objectives with reliability, transparency, and validity the structure below was adopted.

Chapter 1: Introduction

In the introduction section, I have explained the brief and clear introduction to the research topic. Based on the research aims and objectives, and then focused on the background of the study with the rationale of the research. In this particular context, research questions have been structured with the accordance of research objectives, so that readers will be able to understand the base of the research topic.

Research Objectives

Chapter 2: Literature Review

This section is the major part of the entire research, where concepts have been set up with practical applications. In this context, I have tried to analyze and evaluate the whole concept in a standard way (Pratminingsih, Lipuringtyas and Rimenta 2013). Besides this, critical perspectives on the topic have helped to find out the benefits as well as the limitations of the topic.

Chapter 3: Research Methodology

This section consists of research methods, techniques, and implementation procedures. The researcher in this section has described research philosophy, approach, design, and data collection techniques. This chapter helps to gather suitable information by several tools and with proper justifications.

Chapter 4: Data Analysis and Interpretation:

Based on gathered data and information, research has selected proper data analysis technique, so that proper interpretations and findings can be explained in this chapter. Proper results have been obtained from interview and survey sessions. The results have been represented in statistical charts and table.

Chapter 5: Conclusion and Recommendations:

The concluding chapter of the research topic will help to present the overall view of the study with the inclusion of the results gathered from the previous section. As per the research objectives, the researcher has tried to provide some recommendations to obtain the research aims successfully.

The concept of online shopping is always an attractive factor for the customers, as it helps pt ease the lives beyond imagination. As identified, factors of online shopping chain sometimes dissatisfy the customers due to their several concerns (Orel and Kara 2014). This chapter also explains the content of the research study briefly with several small sections such as research aims, questions, and objectives.

Introduction

Literature review engages the theoretical evidence and practical applications regarding the research topic. In order to find out the online shopping parameters and factors affecting customer’s satisfaction, the case study of NEXT plc organization has been adopted, as it is one of the largest retail marketing stores in UK. Lin and Lekhawipat (2014) Mentioned that internet has transformed the traditional shopping patterns to online shopping era. Shoppers are highly benefitted from this purchasing of goods and services over the cyberspace.  The internet facilitates 365 days availability and 24/7 services with very little cost. However, customers’ demands, requirements and most importantly their satisfactions are greatly related to this e-commerce facilities and services (Morgan-Thomas and Veloutsou 2013).

This particular section will focus to establish academic knowledge related to online shopping factors and customers’ buying patterns. With this foundation researcher as well as the readers will get the opportunity to enhance the research topic in more detailed manner. This will help to understand the critical perspectives of the research study as well.

Research Hypothesis

According to Wang and Le (2016), E-shopping or online shopping allows the customers to use online stores for buying their favorite products. NEXT organization serves its customers over the internet by three major operations; NEXT retail channel, NEXT directory and NEXT international retail.  Four major components of online shopping are shopping cart, storefront, order fulfillment and payment process. Through the online store or storefront, customers shop their favorite products on the business website. This helps to provide different information to the consumers including product description, product types, and safety procedures, reviews of the products from other customers, store policies and contact information. Digital shopping carts allow the customers to select and to store various products, which they want to purchase. Payment method allows the customers to select payment option as per their convenience (Holmes, Byrne, and Rowley 2013). There are several payment options are available such as online net banking, credit card payment, debit card payment which collects payment information and process them to record the accounting details.

Motivation and Benefits of Online Shopping:

Wu and Huang (2015) stated that online shopping could provide greater benefits to the organization as well as to the customers. Due to the convenience of the e- business provided, customers do not have to go to the physical store to purchase their products and goods which save their time a lot. In order to access the business website to use the e-service, users can easily use the mobile phone or their personal computers to buy their products in the convenience of their workplace or home. Oliver (2014) opined that as the online shops provide 24/7 services, customers do not have to think, and they can use the service at anytime from anywhere. 

Marketing Strategies: As the competitions increase day by day, retail organizations put discounts on the products to attract more and more customers towards the organization. Gifts, promotional offers provided by the online retail organizations help to increase the business sales with larger profit margins.

According to Zha, Li and Yan (2013) customers are the biggest asset for any organization and customer satisfaction is greatly related to the brand image of the organization.  Organization should always keep in mind the fact that the products and services offered over the internet can meet up all the requirements of the customers. In order to improve business productivity and profitability more, it is very important to maintain customers’ loyalty by making repetitive purchases. Kim et al. (2013) has mentioned that retail organization like NEXT should always try to hold some unique and stylish attributes to attract new customers by retaining the older consumers. Dabholkar and Sheng (2012) identified that customer satisfaction is greatly engaged in consumer attitude and customer behaviors. Customer loyalty is an emotional factor, which is the base of the customer retention. Emotional factors of the customers are the perceptions of the consumers toward the particular retail organization, which helps to maximize the sale of the organization by sustaining and strong competition.  As opined by Klaus (2013), if the retail organizations can provide the best quality products with the best service facilities, it will help to contribute a larger part towards company’s income level and future earning opportunities.

Research Question

Hsu, Chuang, and Hsu (2014) identified some disadvantages of online shopping, which are affect customers buying intentions and their loyalty towards the organization. It was found out that most of the consumers do not want to go for online shopping as they are afraid of the fact their personal and confidential information such as credit card details, banking account details can be hacked or theft. Management authorities of NEXT Company always try to provide security applications and tips on their official website, but still there are some loopholes present in it, which are the greatest concerns of the customers. As per the opinions of the Kumar, Anand and Mutha (2016), another complaint, which has come from customers’ side, is that they cannot try the goods and products to check whether they fit their requirements or not.

Ball, Borger, and Greenwald (2013) identified a physiological factor of the customers that they have doubt about the fact whatever features and characteristics of the products shown on the website are the actual or not. Logistic factors, which are related to the delivery service and delivery performance, are also a bigger factor of online shopping.  In this case, the organization offers free shipping for the minimum amount orders, where most of the products found defective. Another greater disadvantage related to the logistic factor is that compared to the physical stores, online shopping platform long time to receive customers’ ordered products. All of these factors have been seen as the larger obstacles, which are imperative to measure customer satisfaction in terms of online shopping.

Figure 1: Conceptual framework of Online Shopping Factors

(Source: Bagdoniene and Zemblyte 2015, pp. 371)

Technology Factors: From the technical perspectives, Clemes, Gan and Zhang (2014) mentioned that designing of a reliable website is very crucial for an effective online shopping environment. According to a survey at the time of festive seasons, employees of the NEXT organization have faced many challenges due to over demands of the consumers, which block the distribution network (Kim, Suh and Lee 2013). Sometimes, to meet up the requirements of the customers to continue business operations, an organization has compromised with the quality of the products. As a result, the customer became frustrated and did not return to purchase products from the company again.

Business authorities must optimize the performance and scalability of the Internet infrastructure so that they will be able to manage increased traffic loads in peak season times. Before that, a major factor should keep in mind that if the organization hires any third party to manage their network infrastructure, proper security policies must be adopted to keep the record of accomplishment of the services. According to Shin et al. (2013), effective security applications such as firewall web applications, encryption and decryption technique, and antivirus software must be incorporated into the business website applications. All these applications will help to protect confidential information of the company along with customers’ personal and financial information (Jiang, Yang and Jun 2013). The website should provide a user-friendly environment to the customers so that they can be able to access the service of the organization without any obstacle and limitations.

Rationale for the Study

Shopping Factors: Amoroso and Ogawa (2013) have identified that customers are facing many problems while they go for the transaction of their purchase orders. After entering all the necessary details, suddenly the web page turned around, and instruction is shown to fill the details again. Then the payment method is quite hazardous, as it wants lots of information with the basic information, which are unnecessary at this stage. Therefore, this payment method should be convenient to ease the shopping method, to find out product details and to complete the contract information. All these will help to minimize the shopping effort so that customers will be highly satisfied (Riquelme and Roman 2014). In addition, information provided over the internet about the products and its price should contain clear and authentic information, which will help to build trust amongst the customers.

Product Factors:  In this growing economic world, customers’ demands are changing every day. Same kind of products with same brand quality cannot be able to draw new customers, moreover that, old customers are also getting bored with same types of products and services.  As the market competition is increased day by day, almost all the retail organizations are trying to offer new products of innovative styles and well-known brands. Therefore, customers easily switch their minds to these organizations as they get new products and innovative services. According to Dai, Forsythe and Kwon (2014), management authorities of the retail organization should always try to merge new product ideas with best brand quality in their business operations, so that organizational productivity can be increased at greater extent with higher customer satisfaction.

Logistic Factors:  Jiang, Yang and Jun (2013) highlighted a major fact that speed of delivery from the physical stores is higher than the online stores. This factor is directly related to the service delivery performance. After ordering the products from the customers, operational employees take lots of time to track that orders. As the tracking process takes a large amount of time, delivery times of the orders get delayed (Chang and Fang 2013). Therefore, it is very necessary to track and trace the product details in proper time with inventory management system and should deliver the products in accurate time at the appropriate place.

Research methodology chapter explores the process to solve the problems statements with proper evaluation and analysis. Based on the research aim and in accordance with the research objectives, research has adopted appropriate research methods, so that conclusion can successfully meet the research objectives at the end of the dissertation. The researcher has come up with an initiation to address the problems of the topic so that readers can analyze the results of proper validation. Weinstein and Roy (2012) opined that ideas, theories and concepts used in the research methodology technique contribute to analyzing the study deeply. Practical applications of research methodology tools help to evaluate the online shopping factors, which are greatly affecting the customers’ demands of NEXT organization.

Outline of the research method applications helps to drive the entire study with a basic symmetric structure in a complete framework (Heath 2012). This particular research report has considered the online shopping factors, which are significantly affecting customers’ satisfactions and loyalty. As per the requirements of the research topic, the researcher has considered descriptive design, positivism philosophy, primary and secondary data collection process, and deductive approach. The researcher to drive the entire study in the right direction has adopted quantitative as well as qualitative data analysis technique with non-probability sampling technique (Robson and McCartan 2016). In specific, the researcher has used convenience sampling technique. In order to select respondents for the questionnaire sessions and surveys, sampling technique has been considered by the researcher with accurate population size.

In the framework of research methodology process, research philosophy contributes to the research study to identify appropriate manner for gaining detail explanations and descriptions of the study. Kim et al. (2012) pointed out that approach of research philosophy helps to explain the assumptions, which have been conducted to process with the research study. However, assessment of the research topic can vary with different thoughts of people.  In order to identify the online shopping factors, which are greatly affecting the business of NEXT, the researcher has adopted proper, appropriate research philosophy.

For this particular research study, the researcher has considered positivism philosophy to find out the hidden factors and information from the research topic in a scientific way. Customers’ demands for the online shopping facilities can be better illustrated by this research approach (Pickard 2012). Therefore, it has become easy for the researcher identify the primary reasons responsible for this kind of scenario in UK retail market.

Positivism research approach helps to observe and evaluate each context of the research topic in a fair manner, so that accurate knowledge can be gained for future studies. In this study, the researcher has utilized the logical applications of positivism research approach to present the study in front of the readers in a better way (Bilgihan, Kandampully and Zhang 2016).  As this research is cross-sectional and has time-limited problems, positivism approach went perfectly with the contexts of the research topic.  In addition, positivism research approach has stopped the researcher to manipulate the data that can lead to errors.

It is very crucial to select the exact format, which is required to conduct this research study. The researcher chooses two kinds of research approaches; one is an inductive approach, and the other is the deductive approach. Liao and Keng (2013) mentioned that inductive approach with the use of proper research tools and techniques observes data collection and data analysis technique, which has been used for analyzing the research study. On the other hand, Zhang, Cheung and Lee (2014) acknowledged that deductive approach test the hypothesis of the study, analyzes the reasons for selected topic, confirm the implementation theories by analyzing the data.

Ashraf, Akbar, and Razzaque (2016) stated that deductive approach went perfectly in this particular case, as the researcher has already described all the theories related to online shopping of NEXT, it is marketing strategies, its promotional activities and online security services with proper evidence and applications. The deductive approach can help to provide theories with specific data analysis technique; therefore, it is more relevant in this case than inductive approach.

In order to perform this study, the researcher has chosen deductive research approach. It has seen that the researcher tried to identify each factor of online shopping channel of NEXT organization, which is the biggest concern for customers’ satisfaction (Gale et al. 2013). At the same time, it has become also the fact that online shopping model requires a selection approach to understanding the benefits and problems in a precise manner.  As there are no new theories or applications have been describing by the researcher, the accurate result can be obtained by the deductive approach. Hence, the selection of deductive research approach is appropriate for this study.

Bagdoniene and Zemblyte (2015) mentioned that appropriate research design application helps to extract relevant data and information to conduct the research study with proper validation. A collection of useful data and information needs proper research design. The researcher was generally processed with three kinds of design research techniques, exploratory, explanatory, and descriptive design. Exploratory research design highlights the background information of the identified problems. On the other hand, Khajehzadeh, Oppewal and Tojib (2014) stated that explanatory design helps to identify the reasons for the occurred problems. Bilgihan, Kandampully and Zhang (2016) acknowledged that descriptive design contributes to relate the findings of the research study with research aims and objectives. For this particular research study, the researcher has adopted the descriptive design method to obtain detail information about the research topic with proper descriptions.

Here, the researcher has chosen descriptive research design. The major reason to choose the descriptive design for this research study is it contributes to gather details of online marketing planning of NEXT organization.  In addition, it has also seen that descriptive design helps to relate the research objectives with the obtained findings and interpretations.  In order to relate the findings of the research study with the research objectives, which have already described in the above section, the researcher has considered descriptive design (Celik 2016.). In addition, with the applications of descriptive design effects of online shopping on the customers’ requirements and satisfactions can be appropriately scrutinized.   Hence, the selection of descriptive research design is appropriate here.

It is a major and crucial process for this study to collect appropriate facts, data and information for conducting the research.  In this context, Ozen and Engizek (2014), has mentioned that collection of data and information is very crucial and important to drive accurate and appropriate result for the research report.

This research report has focused on the online shopping plans and strategies provided by the NEXT plc organization to its customers. The data collection procedure helps to identify the major concerns and complaints of the customers against this online shopping facility (Tong et al. 2013). In order to relate these factors to the research study, primary data collection is very important. After collecting the data from the primary sources, data has to be gathered from secondary sources to highlight the hidden facts of the research for the future scope. Here, the researcher has considered the primary data collection technique. The detail of the primary data collection technique has been discussed under data sources. It has seen that use of primary data collection has major benefits in this case as through this; the researcher would be able to access all perception of customer about the organization. However, there will be biasness, which is one of the major issues of this data collection technique.

Data sources are very helpful to penetrate inside the research topic to extract relevant data and information as per the requirements of the research study. Research has collected useful data from primary and secondary sources. Hsu, Chang and Chuang (2015) mentioned that collection of data from primary sources help to obtain raw data, which can be utilized directly as per the requirements of the research topic. Collected primary data needs proper clarification of validity and reliability.

In this particular case, primary data has been gathered from the interview sessions with the managers of the organization. Also, close-ended questionnaire has been distributed amongst the customers to obtain accurate information (Tesch 2013). After the collection of primary data, the researcher has collected secondary data from online sources such as journals, articles and others.

Collected data has to be analyzed with appropriate data analysis tools and techniques. Two kinds of data analysis techniques are used in a research study, one is qualitative, and the other is quantitative data analysis technique. Qualitative analysis technique records the data in a narrative form to add better and clear descriptions in the research study. On the other hand, Bilgihan (2016) addressed that quantitative data analysis technique uses statistical data and facts, which are very useful for recording information on large sample size. For this research study, the researcher has taken mixed approach of qualitative and quantitative data analysis techniques. In this particular case, managers of NEXT organization have been considered for the qualitative analysis and customers has considered for the quantitative data analysis technique (Cameron and Trivedi 2013).

In this case, the researcher has used regression model, which has been developed from the identified hypothesis. It is a statistical approach to demonstrate the relations between several variables of the research. Here, the researcher has applied Microsoft Excel for multiple regression analysis. For the research framework, regression model is formulated as below

Online Customer Satisfaction = A+B *Security Features +C * website ease of use +D* User Friendly Website +E * Privacy + F*Time saving +G*More online information +H*Lower Traffic

A= Intercept of regression model

B=Co-efficient of security features

C=Co-efficient of website ease of use

D=Co-efficient of user-friendly website

E= Coefficient of privacy

F= Coefficient of Time saving

G= Coefficient of More online information

H= Coefficient of Lower Traffic

Online Customer Satisfaction = A+ B *Convenience +C * trustworthiness of information +D * ease of payment + E*Value for money +F*variety +G*Type of Product

A= Intercept of the regression model

B= Coefficient of convenience

C= Coefficient of trustworthiness of information

D=Co-efficient of ease of payment

E= Co-efficient of Value for money

F= Co-efficient of variety

G= Co-efficient of Type of Product

People who are directly or indirectly involved in the research process are considered as the population. In this particular research work, 5 managers and 100 customers are considered as the total population. However, the researcher cannot consider each customer, so the smaller presentation of the population is considered as the sample the sample size.

Sampling technique has considered for analyzing the online shopping factors, which have greater impacts on the customers buying behaviors and satisfaction. Sampling technique is very crucial and needed to conduct the entire survey with proper responses of the participants. Researcher generally uses two kinds of sampling technique, which are non-probability sampling method and random probability sampling technique (Shiau and Luo 2012). For this research study, non-probability sampling technique has been considered for the managers of the organization, where interview sessions have been set up at their convenient time, and no selection criterion has been adopted.

The researcher has selected 100 customers for this research study, where only 75% people have responded to the survey. In order to reduce the diversion of the participants, the convenient sampling technique is appropriate for this research study. The Proper conclusion can be drawn from the survey results with qualitative data collection procedure quantitative analysis technique (Riff, Lacy and Fico 2014).

In order to conduct the entire survey in a systematic and fair way, the researcher has considered all the ethical rules and regulation (Guo, Ling and Liu 2012). Data and information, which has been collected from the interview sessions, are kept secure with authenticity and integrity. The following ethical rules have been considered for this research study

Data Application: the entire research topic has been analyzed with proper descriptions and clarifications (Wu 2013). Commercial applications of data have been avoided to limit the finding of the research.

Involvements of the Participants: Throughout the research study, the researcher makes sure the fact that participants of this research are not affected by any kind of external influence or pressure.

Wu et al. (2014) mentioned that limitations are natural on any research topic, and this helps to find out the areas for better improvements in future. Some of the greatest limitations of this research study are enlisted as follows

Reliability: Manager of the organization can be biased towards the organizational loyalty, which may affect the assumptions and findings of the research study.

Time Limitations: While processing with the research study, researcher always has time limitation issues. As a result, deep details of the research topic were not possible.

Research activities	Week 1	Week 2	Week 3	Week 4	Week 5	Week 6	Week 7
Selection of the research topic
Primary data collection
Secondary data collection
Layout creation
Literature review
Formation plans for the research study
Adoption of proper research methods and techniques
Data finding
Analysis and interpretation  of data
Conclusion
Formation of Rough Work
Submission of Final Work

Research methodology chapter has explained several tools, techniques and research designs, which help to analyze the entire topic (Yoon et al. 2013). By this section, the researcher has always tried to meet up the requirements of the study with the research tools and techniques. Proper justifications of each research design have been explained to analyze the concepts of online shopping factors on customers’ demands.

Introduction

By this section, the researcher has tried to illustrate the data analysis part of the NEXT organization and its customers. With the use of quantitative and qualitative data analysis technique, quality of the data and information can be increased to make the best conclusion for the research topic. Mosteller, Donthu, and Eroglu (2014) mentioned that data analysis process help the researcher to utilize theoretical concepts with logical applications. However, Collier and Bienstock (2015) pointed out that this data analysis section contains some limitations, which has been observed via crosscheck process. Role of online shopping factors on customers’ satisfaction will be analyzed and evaluated in this section by the feedback of the participants (Cohen et al. 2014). For the data collection process, managers and customers of NEXT organization have been considered to extract proper data and information for this particular research work.

Part A: Demographic Analysis

A1: Gender

	Gender
Male	49
Female	51

Figure 2: Respondent

(Source: Created By Author)

From the statistical data chart and graph; it has been found that out of 100 customers of NEXT organization, 49% are male participants and 51% are female participants. Feedback from these respondents has been recorded to know about their thinking on these online facilities of NEXT organization.  By this analysis, the researcher will be able to understand the effect of online shopping on customers’ expectations.

Analysis:

As the survey questionnaire has been distributed amongst the female and male participants, the researcher will get balanced information. This balanced information will help to overcome the problem of data manipulation and lack of genuineness. Balanced information is very crucial to avoid the biased situation of the research work.

A2: Age Group

	Age group
Less than 20	12
21 – 25	41
26 – 30	30
31 – 40	8
Above 40	9

 

Figure 2: Responses Based On Age Group

(Source: Created By Author)

As illustrated and explained in the above figure, the maximum of the participants is of age between 21 to 25 years. Twelve people of age less than 20 are selected for this analysis sections. There are 30 people have been considered of age between 26 to 30 years. Eight people of age between 31 to 40 years are considered, and only nine people have been selected who have aged above nine years.

Analysis:

In this case, the researcher has considered some participants based on the age, because this new technical world and trends have greater impacts on the different ages of people. In this technological era youths are greatly attracted towards the internet based tools and applications. From the graph, it has been identified that a maximum number of the customers of NEXT organization are in between the age of 21 to 25 years. As this online marketing platform provides unique kind of garments, apparels and many other things, this has retransformed the wardrobe style of the young generations. In addition, 30% of the total respondents are of age 26 to 30, who can refurnish their home by stylish furniture.  Eight people have been considered of age 31 to 40 years, and nine people are selected who have age above 40 years. Opinions of these people are crucial in this part, as they are experienced can provide some useful feedback to improve the online marketing operations of NEXT organization.

A3: Preference of Online Shopping

Figure 3: Responses on Online Shopping

(Source: Created By Author)

This section is very important to know the feedback and experience of the customers about online shopping facilities. From the graph, it is clearly identified that maximum of the respondents has preferred to go with online shopping. On the other hand, 48% of the respondents are dissatisfied with this online marketing environment.

Analysis:  

52% respondents are satisfied with the facilities of online shopping provided by the NEXT organization, as this ease their lives beyond imagination. Shopping over the internet saves time and help to avoid long queues like in the in-store environment. Online shopping provides 24/7 services without any access limitations so that customers can but their products at any time by just one click. Conversely, 48% people are dissatisfied with the online shopping facilities as there are many security vulnerabilities present in the system due to the loopholes in the technical factors. Due to this, customers are afraid of the fact that their confidential information can be accessed by unauthorized individuals.

A4: Average Weekly Spending On Online Shopping

Figure 4: Responses on Average Weekly Shopping

(Source: Created By Author)

As per the statistical data and information present in the above charts, it has been summarized that 42% people out of 100 customers spend almost 100 to 150 pounds for online shopping. 34% people spend 150 pounds to 200 pounds on an average weekly shopping. The surprising fact of this data analysis part is that only 9% people spend more than 250 pounds for their weekly shopping.

Analysis:

According to the responses of the participants it has been found out that, maximum customers spend 100 to 150 pounds for their weekly shopping. NEXT organization provides stylish and innovative products than other retail organizations in UK so that most of the customers but their daily required products and goods in between 150 pounds. Only 15% people shop less than 100 pounds, as because they prefer to shop at the physical stores. These customers stated their concern over the fact that by the use of physical stores, people can try their products to check whether their requirements are met or not. 34% people shop their products with a cost value of more than 150 pounds. As per their opinions, they can find and buy all products they want with the fulfillment of their requirements. Only 9% people spend more than 250 pounds, as they are greatly satisfied with the online services provided by NEXT organization.

For the analysis of the developed hypothesis in this particular researcher, the Multiple Regression Analysis Model has been utilized in order to access the various factors affecting the customer satisfaction of the NEXT plc.

For developing the multiple regression analysis of the first hypothesis,

Online Customer Satisfaction = A+B *Security Features +C * website ease of use +D* User Friendly Website +E * Privacy + F*Time saving +G*More online information +H*Lower Traffic

A= Intercept of regression model

B=Co-efficient of security features

C=Co-efficient of website ease of use

D=Co-efficient of user-friendly website

E= Coefficient of privacy

F= Coefficient of Time saving

G= Coefficient of More online information

H= Coefficient of Lower Traffic

If the regression statistics table is taken into account, then it can be seen that the multiple correlation coefficient is 0.453513242. Since, the multiple correlation value is less than 0.75, it can be said that there is a positive relation in between dependent variable that is customer satisfaction with independent variables. At the same time, the regression statistics table has also demonstrated the value of coefficient of determination is 0.205674261. This indicates that 20.57 % variation of the dependent variable, that is, customer satisfaction can be predicted by the independent variables. Finally, the adjusted r square value represents the explanatory power of this model. Since, the value is 0.145236433, it can be said that the model is a moderate predictor of the proposed hypothesis.    
 

Regression Statistics
Multiple R	0.453513242
R Square	0.205674261
Adjusted R Square	0.145236433
Standard Error	0.744745984
Observations	100

ANOVA
	df	SS	MS	F	Significance F
Regression	7	13.212515	1.887502	3.403072	0.002811618
Residual	92	51.027485	0.554647
Total	99	64.24

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	0.96669	0.4923718	1.963338	0.052627	-0.01120053	1.944585208
Security feature	-0.0914	0.0686784	-1.3304	0.186675	-0.22777092	0.04503146
Website ease of use	0.05665	0.0621609	0.911332	0.364502	-0.06680764	0.180106037
User friendly website	-0.1394	0.0708667	-1.96709	0.052186	-0.28014834	0.001346402
Privacy	0.11231	0.0707355	1.587701	0.115785	-0.02817996	0.252793683
Time saving	-0.1083	0.1143604	-0.94706	0.346091	-0.33543534	0.118823983
More online information	0.15087	0.09736	1.54957	0.124678	-0.04249921	0.344231463
Lower traffic	0.3506	0.1280954	2.736995	0.007442	0.096187933	0.605005107

After putting the value of the coefficient on the developed model for the first hypothesis, the model looks like-

Online Customer Satisfaction = 0.9667+ -0.09137*Security Features + 0.0566* website ease of use + -0.1394* User Friendly Website + 0.1123 * Privacy + -0.1083*Time saving + 0.15087*More online information + 0.3507*Lower Traffic

From the analysis of the formula, it has been found that the value of significant F for first hypothesis is 0.0028 that is much less than 0.05. Thus, from the analysis of the regression model we have rejected the null hypothesis from the equation. Thus, it can be concluded that the online security factors provided by NEXT has significant impacts on customer satisfaction.

For the analysis of the second hypothesis of set by the researcher, the analyst have used regression model that looks like-

Online Customer Satisfaction = A+ B *Convenience +C * trustworthiness of information +D * ease of payment + E*Value for money +F*variety +G*Type of Product

A= Intercept of the regression model

B= Coefficient of convenience

C= Coefficient of trustworthiness of information

D=Co-efficient of ease of payment

E= Co-efficient of Value for money

F= Co-efficient of variety

G= Co-efficient of Type of Product

If the regression statistics table is taken into account, then it can be seen that the multiple correlation coefficient is 0.465943352. Since, the multiple correlation value is less than 0.75, it can be said that there is a positive relation in between dependent variable that is customer satisfaction with independent variables. At the same time, the regression statistics table has also demonstrated the value of coefficient of determination is 0.217103207. This indicates that 21.71 % variation of the dependent variable, that is, customer satisfaction can be predicted by the independent variables. Finally, the adjusted r square value represents the explanatory power of this model. Since, the value is 0.166593736, it can be said that the model is a moderate predictor of the proposed hypothesis.    

Regression Statistics
Multiple R	0.465943352
R Square	0.217103207
Adjusted R Square	0.166593736
Standard Error	1.148720992
Observations	100

ANOVA
	df	SS	MS	F	Significance F
Regression	6	34.03092768	5.67182	4.298267327	0.000720484
Residual	93	122.7190723	1.31956
Total	99	156.75

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	1.417779288	0.903807022	1.56867	0.12012008	-0.377002294	3.212561
Convenience	-0.250721102	0.097387334	-2.57447	0.011617962	-0.444113041	-0.05733
Trustworthiness of Information	0.442564939	0.117501199	3.76647	0.000290114	0.209230851	0.675899
Ease of payment	0.102325581	0.243391906	0.42041	0.675152223	-0.381002496	0.585654
Value for money	-0.260925948	0.177458232	-1.47035	0.144841883	-0.613322819	0.091471
Variety	0.026216476	0.159008132	0.16488	0.869400166	-0.289542154	0.341975
Type of product	0.402724782	0.133381574	3.01934	0.003269621	0.137855416	0.667594

After putting the value of coefficient, the model looks like-

Online Customer Satisfaction = 1.4178+ -0.2507 *Convenience + 0.4426* trustworthiness of information + 0.1023 * ease of payment + -0.2609*Value for money + 0.0262*variety + 0.4027*Type of Product

From analyzing and deducing the formula, it has been found that the value of significant F is 0.0007 that is much less than 0.05. Thus from the analysis, the researcher have rejected the null hypothesis. Therefore it can be concluded that different shopping and service options provided by NEXT has significant influence on the customer satisfaction.

Part B: Qualitative Analysis (Managers)

B1: The online shopping factors influence the customers’ satisfaction

The analysts for understanding the different influencing factors that are required to meet the customers’ satisfaction through online shopping interviewed the five managers of NEXT plc. The customer’s satisfaction is met through online shopping when the product received by the customers meets their expectation. The varieties of products offered by NEXT including their reliability and appropriate pricing has significant influence over the customer satisfaction. The NEXT plc needs to be having a competitive advantage on the market that helps them in forming a brand image.  The various factors provided through the online shopping has the great impact on the customers’ decision making choice thus proving the customers need allows NEXT to have customer satisfaction.

B2: The online shopping security provided by NEXT impact on customer satisfaction

Quality in the service directly influences the satisfaction of the customer in the online shopping NEXT plc. The most influential factor that affects the customer satisfaction is the online security. The customer needs to provide their sensitive information like their name, phone number, and bank accounts to the NEXT database to receive the order. If the customers are not sure about the privacy and security of the information provided by them, the NEXT plc will not be able to provide appropriate satisfaction to their customer through its services. The formal platform providing security in exchanging of data adds value to the customer services and enhances the customer satisfaction. Therefore, for having quality services and maintain customer satisfaction, the online shopping security is most needed.

B3: The various types of services and shopping provided by the NEXT enhances the customer satisfaction

Apart from different promotional factors, the different variety of shopping services provided by the NEXT influences the customer satisfaction. The NEXT provides Variety of services ranging from clothing to furniture in their online shopping site. Other than that, the services include customer helpline that assists in regarding any issues or difficulties faced by the customer. The delivery of services and products to the customer on said time helps in promoting the customer loyalty and satisfaction.

B4: The promotional activities influences the shopping trends and customer satisfaction

As per the data collected from the managers of the online shopping, the promotional factors in the online shopping plays a significant role in drawing the customer to the online site. During the event of any promotional factor, it has been identified that the online services have most of their business during that time. The promotional events control the shopping trends and customer activities in the online shopping.

Conclusions and Recommendations

Introduction

This section deals with the conclusions and recommendations, which are achieved, from data analysis and interpretations. For this particular research study, the researcher has described the conclusion with clear-cut explanations to achieve research aims and objectives successfully. This entire research topic is focused on the concepts of online shopping factors, which are significantly related to customers’ loyalty and satisfaction (Guo, Ling and Liu 2012).  For this research report, the retail business operation of NEXT organization has been considered. Over the last few decades, this organization provides online services to the customers over the internet. However, some of the customers are raised their concern against some online shopping factors such as technical security, product facilities and logistic operations. These issues are very serious in this aspect and are considered throughout the research work for better improvements. In order to overcome these problems, some useful recommendations have been provided at the end of this chapter.

Objective 1: To identify the marketing strategies and promotions different between in-store and online

Identification of online shopping factors is very important for the researcher to link up with the contents of this objective.  Some of the useful applications and benefits of online shopping have already described in the literature review section. It has been already described that convenience and reliability of the online website can ease the lives of the customers and help them to get their required products at any time. As the competition in the retail market world is increased day by day, NEXT organization has offered attractive discounts and gifts, which draw more and more customers towards their organization. As per the data provided in the data analysis part A, it is clearly identified that most of the consumers of NEXT organization are satisfied with the promotional activities and online services.

Objective 2: To identify the types of shopping and service options provided online to satisfy the customers

In order to meet up customers requirements with external demands, NEXT organization serves its customers through its three-distribution channel, which has already explained in the literature, review section. This organization always tries to provide the unique quality of products by proper inventory and merchandise management system. From the data analysis part a; it has already identified that out of 100 customers; more than 50% people shop their goods from this organization by spending more than 150 pounds in a week. This is because of the diverseness in product and service quality.

Objective 3: To address customer’s perception about the online security of NEXT organization

Some of the major concerns and complaints of the customers about the online security provided by NEXT organization has been highlighted in the literature review section. People do not prefer online shopping most, as they are afraid that when they provide their confidential details for transaction process, their information can be stolen or hacked. The network infrastructure of this large organization must be strengthening up by proper security application so that perceptions of the customers can be changed at larger extent.

After analyzing and evaluating all the internal and external aspects of online shopping, the researcher has recommended some solution to improve the business operation of NEXT organization in better and advanced way.

NEXT organization can improve customers’ satisfaction by maintaining some potential online shopping factors where each component can help to develop effective customers’ loyalty functions. Starting from the technical factors to logistic factors, if each factor can be considered properly, organizational benefits can be achieved through greater customers’ satisfaction.

Proper and advanced security applications such as the use of firewalls, encryption technique should be incorporated with the business network infrastructure, so that customers concern about the information loss can be mitigated to the greater extent.

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