Factors Affecting Customer Satisfaction towards
Online Shopping
Haslinda Musa1, Mohd Amin Mohamad1, Fararishah Abd Khalid1, Namirah Ab
Rahim1, Nur Najihah Ahmad Zamri1
1Fakulti Pengurusan Teknologi dan Teknousahawanan
Universiti Teknikal Malaysia Melaka (UTeM), 76100 Durian Tunggal,
Melaka,
Malaysia
Abstract
Nowadays people are intended to do online shopping. Shop on the
Internet becomes an alternative for consumers since it is more
comfortable than conventional shopping which usually attributed with
anxious, crowded, traffic jam, limited time, parking space and etc.
Internet in Malaysia is still considered as a new medium tool between
the retailers and the consumers, and also retaining customers on e-
retail is the most issue that are faced by any e-retail store. Because
of that, the research is to study the factors affecting customer
satisfaction towards online shopping among university students. There
are three factors contributed to this research, which are product
quality, brand, and shopping experience. This research was used a
survey method of distributing questionnaires to 150 respondents.
Questionnaires will be distributed among university student to gauge
their factors to shop online. The researcher used online survey and
manual method to collect data. The data that has been collected was
analyzed by using Statistical Package for Social Science (SPSS) and
Microsoft Excel. Based on the research, the product quality, brand and
shopping experience have a significant relationship to customer
satisfaction towards online shopping among university students at
UTeM.
Keywords: Brand, customer satisfaction, online shopping, product
quality, shopping experience
INTRODUCTION
Internet usage has grown rapidly over the past several years and
it has become a common means for delivering and trading information,
services and goods. The use of the Internet has increased
exponentially over the past years and it has become a mainstream tool
in delivering and trading information, services and goods (Albarq,
2006). Moreover, internet technologies create marketplaces for
consumers to purchase product or services from online Web sites
instead of shopping in the traditional market channels such as
department stores (Zhuang & Babin, 2015). As such, the university
student still has various reservations about purchasing through the
Internet, except those who use it as informative, entertaining and
communication tools.
In Malaysia, Internet shopping is still new and customers are
less familiar and often more skeptical towards online shopping.
Furthermore, a high double digit percentage of Internet users in
Malaysia shopping online, motivated by price advantages, product range
and availability of reviews. Malaysian shoppers look for free
shipping, convenience and exclusive online deals offered by online
stores. Moreover, online shopping is encouraged by new E-Commerce
regulations adopted in 2013, aimed at protecting consumer rights and
preventing online fraud. Malaysia, internet shoppers are relatively
young, highly educated, having higher social status, and command a
more favorable financial position.
Considering that Internet shopping, is still at the early stage
of development, little is known about consumers’ attitudes towards
adopting this new shopping channel and factors that influence their
attitude toward (Haque et al., 2006). According to Jariah, Husniyah,
Laily and Britt (2004), with the expansion of educational services in
Malaysia, university students become one of the most important market
segments for two reasons; First, this group has money and shopping
interests. Second, this is the segment of the population that has the
potential of earning a greater income than other segments of the
population.
PROBLEM STATEMENT
In the new era of modern science and technology, peoples' life
becoming easier and more convenient than prior life. One of the
benchmark of modern science and technology, the internet has been
deeply into every aspect of people’s life. According to Central
Intelligence Agency (CIA, 2009), there were 15.355 million number of
users that access the internet in Malaysia. Up to June, 2012, the
number of internet users in Malaysia has reached 17.723 million, with
an increase of 2.368 million compared to 2009, which is 60.7% of the
population, according to International Telecommunication Union (ITU,
cited in Internet World Stats, 2012). Therefore, all of these
statistics proved that the electronic commerce has grown rapidly in
recent years.
However, surveys of online consumers continue to indicate that
many remain unsatisfied with their online purchasing experiences. One
of the important reason when customers do not have good and perfect
information about product quality, once they make an online purchase.
Differed from the traditional business, consumers may evaluate the
quality of products by looking or also may allow to touch or feel the
products. However, these traditional ways of searching product
information are not suit for online purchasing. Besides, the
increasingly crowded online space also raises the issue of retailer
visibility, defined as the extent of the presence of an online
retailer in the consumer’s environment (Drèze and Zufryden, 2004).
Just because of online retailer easily locate the stores on internet
by only a mouse click away, not at all are equally visible to the
consumers. In short, the research intended to investigate the exact
factors play in the relationship between product quality, brand,
shopping experience and customer satisfaction.
RESEARCH OBJECTIVES
The purpose of the present paper is to the factors affecting
customer satisfaction toward online shopping. The specific objectives
of this study are 1) to examine the relationship between product
quality and customer satisfaction among university students, 2) to
determine the relationship between brand and customer satisfaction
among university students and 3) to analyze the relationship between
shopping experience and customer satisfaction among university
students.
HYPOTHESIS DEVELOPMENT
Hypothesis 1
H0: There is no significant relationship between product quality and
customer satisfaction towards online shopping among university
students
H1: There is a significant relationship between product quality and
customer satisfaction towards online shopping among university
students
Hypothesis 2
H0: There is no significant relationship between brand and customer
satisfaction towards online shopping among university students
H2: There is a significant relationship between brand and customer
satisfaction towards online shopping among university students
Hypothesis 3
H0: There is no significant relationship between shopping experience
and customer satisfaction towards online shopping among university
students
H3: There is a significant relationship between shopping experience
and customer satisfaction towards online shopping among university
students
LITERATURE REVIEW
Customer refer to the person who does the buying of the product
and satisfaction can refer to the person’s feelings of pleasure or
disappointment that results from comparing a product’s perceived
performance or outcome with their expectations. Customer satisfaction
refers to the degree a customer is happy about the quality of products
and services. In order to increase online shopping in Malaysia,
understanding customer online shopping satisfaction and factors
affecting this satisfaction when shopping online should be given
priority.
Product quality
Product quality refers to the group of features and
characteristics of a saleable good which determine its desirability
and which can be controlled by a manufacturer to meet certain basic
requirements. Most businesses that produce goods for sale have a
product quality or assurance department that monitors outgoing
products for consumer acceptability. Product quality means to
incorporate features that have a capacity to meet consumer needs
(wants) and gives customer satisfaction by improving products (goods)
and making them free of any deficiencies or defects. Customers are
satisfied when the perceived service meets or exceeds their
expectations. They are dissatisfied when they feel the service falls
below their expectations. Quality and customer satisfaction has
provided some insights into determining the levels of satisfaction for
product experience. The more quality information provided by the
online retailers, the better the decisions could be done
satisfactorily (Ludin & Cheng, 2014). Customer service and a positive
customer experience are critical to sales in the e-commerce
marketplace. Product quality is customers’ overall evaluation of the
excellence in the performance of the good or service (John, Mowen &
Michael, 1997).
Brand
Brand management in the twenty-first century has become almost
synonymous with building and managing customer relationships (Story &
Hess, 2010). A brand is similar to a living being: it has an identity
and personality, name, culture, vision, emotion and intelligence. All
these are conferred by the owner of the brand and needs to be
continually looked at to keep the brand relevant to the target it
intends to sell to. According to He, Li and Harris (2012),
satisfaction occurs when the performance of a brand meets the
expectations of the purchaser. Brand satisfaction refers to the
evaluation summary of direct consumption experience, based on the
different between prior expectation and the actual performance after
receiving the product.
However, brand satisfaction defined as the cumulative
satisfaction as overall consumer’s evaluation based on the consumer’s
total purchase and experience with a brand of product or service.
According to Chiu, Huang & Yen (2010), highly satisfied consumers tend
to reflect the brand personality traits by using some symbols related
to the brand as an expression of their attachment to that brand.
Similarly, consumers who trust a brand are willing to improve and
sustain an affective bond with the brand that makes them feel warm and
enjoyable.
Shopping experience
Nowadays, the shopping experience has become the most important
differentiating factor for retail companies. Previous research has
shown that when customers are satisfied with a company or service,
there is high possibility that they will share their experience with
other people (Nelson, 2012). For example, in Motorola company, the
retailers need to offer their customers the best possible customer
service as well as ensure a smooth transition between shopping on the
Internet and in the store if they want to provide a unique shopping
experience and resulting customer retention to ultimately increase
sales. Online shopping experience moderates the effect of the
perceived usefulness of behavioral intentions (Hsieh and Liao, 2011).
Frequency of purchases is positively related to the online shopping,
tendency and negatively related to the likelihood to abort an online
transaction.
A shopping experience is the cognitions and feelings the consumer
experiences during the use of a product or services. The customer
experience may provide a new means of competition (Robert & Xiangyu,
2011). According to Alam and Yasin, 2010, satisfied customers are most
likely to have the intention to repurchase if the service provider
reached or exceeded their expectation. Thus, the more experienced
consumers are with online shopping and the more satisfied they are
with past online transaction experiences, the higher their purchase
amounts and the more likely they are to be repeated purchasers and the
lower likelihood of them aborting an intended online transaction.
Based on the literature, the proposed research model is
illustrated in Figure 1.
Figure 1: Research Model
Source: Developed for the research
RESEARCH METHODOLOGY
One set of questions was designed and distributed to customers
who have online shopping experience as respondents. Respondents are
from student Universiti Teknikal Malaysia Melaka (UTeM) in Malacca to
get statistical information. The questionnaires distributed to 150
respondents to the targeted respondent to get data more accurately.
The questionnaires are based on this research topic.
In this study, two page questionnaire which consisted of 21 close
ended questions was employed. There are three main sections in the
questionnaire which is Section A, Section B and Section C. Section A
indicating demographic information: respondent’s gender, age,
education level, frequencies of purchasing over the Internet and
product purchased on online. Section B is about the level of
understanding of online shopping and Section B indicating factors
affecting customer satisfaction which is product quality, brands and
shopping experience. The questionnaire was designed based on a five-
point Likert-type scale. The scales represents, 1: “strongly
disagree”, 2: “disagree”, 3: “neutral”, 4: “agree”, 5: “strongly
agree”. The study concentrates on customer satisfaction that
immediately or indirectly involve in Malaysia online shopping.
DATA ANALYSIS
In this study, the researcher will be used descriptive analysis
and correlation analysis methods to analyze the data. All data will be
processed and analyzed using Statistical Package for Social Science
(SPSS) version 19; it can be used to analyze data collected from
surveys, tests, observation or even secondary data. This program helps
to facilitate data clearing, and checking for logical inconsistencies
in the dataset. The researcher will carry out data mining procedures
before the actual data analysis is performed. The responses from the
respondents will be coded accordingly before being transferred into a
data file.
RESULT AND ANALYSIS
Table 1 shows the summary of the demographic profile of
respondents. In this study demographic variables consisted of gender,
age, education level, often purchased and product purchased. In the
table, shows that there are 150 respondents participated in this
research. The results of the gender analysis show that the percentages
of respondents are 72% females and the rest of 28% are male. It
consists of 108 females and 42 males. For results by age, respondents
between age 22 and 25 years give the highest participation in this
research that is 96 respondents or 64%. Then, for the education level
of respondents in this research concludes that there is 96 % in 144 of
the respondents are Bachelor Degree level. Only one (0.70%) of
respondent have diploma and the other one has a PhD. For level of
education in Master, there are 2.7% in 4 of the respondents.
The summary results for frequencies of purchasing over the
Internet have 48% or 72 respondents, less than 5 times in a life. For
6 until 10 times buying, representing 26.7 % with 40 respondents
participated. Meanwhile, 11 to 15 times have the lowest number of
respondents that is 11.30% with 17 respondents. Based on this
research, the demographic data in product purchase online, it shows
that the highest percentage is 48.70% with 73 respondents come from
male and females that purchased fashion and apparel on online. The
lowest of frequency product purchased is 13 respondents or 8.70% are
categorized in buying others product such as food and beverages, sport
and equipment, books, service coupon, and electrical product.
Table 1: Summary of demographic profile
DemographicVariables
Categories Frequency Percentage(%)
Gender Male
Female
42
108
28
72
Age 18-21 years
22-25 years
41
96
27.3
64.0
26-29 years
30 and above
11
2
7.3
1.3
Education Level Diploma
Bachelor degree
Master
PhD
1
144
4
1
0.7
96.0
2.7
0.7
Often purchased Less than 5 times
6-10 times
11-15 times
16 times or more
72
40
17
21
48.0
26.7
11.3
14.0
Product purchased Fashion andapparel
Digital product
Ticket (traveland cinema)
Cosmetic product
Others
73
16
26
22
13
48.7
10.7
17.3
14.7
8.7
Source: Developed for the research
Reliability analysis
As referred in Table 2, it shows that the value of Cronbach’s
Alpha results for this research for all variables is 0.827. The value
is acceptable because it more than 0.5 which is at a very good result.
The Cronbach’s Alpha value that more than 0.7 is considering as
reliable result. Hence, the reliability analysis of the all variables
is acceptable.
Table 2: Reliability Statistics of Data Gathered
Cronbach'sAlpha
N of Items
.827 16
Source: Developed for the research
Pearson Correlation Coefficient Test
Pearson Correlation Coefficient is a method that
measures the validity of the data relationship. It is also indicates
the direction, the strength and significant of the relationship among
all variables. The value for a Pearson’s correlation can fall between
0.00 and 1.00.
Table 3: Correlations of Independent and Dependent Variable
CustomerSatisfact
ion
ProductQuality
Brand ShoppingExperienc
eCustomersatisfac
tion
PearsonCorrelati
onSig. (2-tailed)
N
1
150
.624**
.000150
.390**
.000150
.461**
.000150
ProductQuality
PearsonCorrelati
onSig. (2-tailed)
.624**
.000150
1
150
.394**
.000150
.341**
.000150
NBrand Pearson
Correlation
Sig. (2-tailed)
N
.390**
.000150
.394**
.000150
1
150
.480**
.000150
ShoppingExperien
ce
PearsonCorrelati
onSig. (2-tailed)
N
.461**
.000150
.341**
.000150
.480**
.000150
1
150
From the table 4.3 above, it shows that the result
analysis of the correlation between all the dependents variables and
independent variables. The dependent variable in this research is
customer satisfaction towards online shopping while there are three
independent variables which are product quality, brand and shopping
experience. Based on table, all the independent variables have a
significant relationship to dependent variable. This is based on the
Pearson Correlation value for each variable which are all positive
value. First, there is moderate relationship between product quality
and the customer satisfaction towards online shopping among university
students at Universiti Teknikal Malaysia Melaka. The value of the
coefficient correlation is 0.624, falls under the coefficient range of
“± 0.41 to ± 0.70”.
Next, there is weak relationship between brand and the
customer satisfaction towards online shopping among university
students at Universiti Teknikal Malaysia Melaka. The value of the
coefficient correlation is 0.390, falls under the coefficient range of
“± 0.21 to ± 0.40”. Last but not least, there is moderate relationship
between shopping experience and the customer satisfaction towards
online shopping among university students at Universiti Teknikal
Malaysia Melaka. The value of the coefficient correlation is 0.461,
falls under the coefficient range of “± 0.41 to ± 0.70”.
Regression Analysis
The regression analysis is used to test the hypothesis
relationship of factors affecting customer satisfaction towards online
shopping which is product quality, brands, and shopping experience.
Hypothesis of Product Quality and Customer Satisfaction
H0: There is no significant relationship between product quality and
customer satisfaction towards online shopping among university
students at Universiti Teknikal Malaysia Melaka
H1: There is a significant relationship between product quality andcustomer satisfaction towards online shopping among universitystudents at Universiti Teknikal Malaysia Melaka
Table 4: Regression for product quality
Model R R Square Adjusted RSquare
Std. Errorof the
Estimate
1 .624a .389 .385 .46114
a. Predictors: (Constant), Product Quality
Table 5: Coefficientsa for product quality
Model
1(Consta
nt)Product
Quality
Unstandardized
Coefficients
B 1.338 .660
Std.Error
.258 .068
Standardized
Coefficients
Beta
.624
t 5.178 9.708Sig. 0.000 0.000
a. Dependent Variable: Customer satisfaction
Table 4 shows that the results of the independent variable that
are needed into regression model and R (0.624) are the correlation of
the independent variable with the dependent variable. The results mean
that 39% of the variance (R square) has been significantly explained
by the independent variable. The adjusted R square also was taken into
account, 39% showed that there was a correlation. There has a
relationship between independent (product quality) and dependent
variable (customer satisfaction towards online shopping). Based on
coefficient Table 4, product quality is significant independent
variables that influences customer satisfaction toward online shopping
as the significant value are less than 0.05. Based on significant
level, p = 0.000 which is less than 0.05, then the H1 is accepted
hypothesis. It means that product quality has contributed to customer
satisfaction towards online shopping among university students.
Hypothesis of Brand and Customer Relationship
H0: There is no significant relationship between brand and customer
satisfaction towards online shopping among university students at
Universiti Teknikal Malaysia Melaka
H1: There is a significant relationship between brand and customer
satisfaction towards online shopping among university students at
Universiti Teknikal Malaysia Melaka
Table 6: Regression for brand
Model R R Square Adjusted RSquare
Std. Errorof the
Estimate
1 .390a .152 .146 .54337
a. Predictors: (Constant), Brand
Table 7: Coefficientsa for brand
Model 1
(Constant)
Brand
Unstandardized
Coefficients
B 2.562 .333
Std.Error
.249 .065
StandardizedCoefficients
Beta .390
t 10.307 5.146Sig. 0.000 0.000
a. Dependent Variable: Customer satisfaction
Table 5 shows that the results of the independent variable that
are needed into regression model and R (0.390) are the correlation of
the independent variable with the dependent variable. The results mean
that 15% of the variance (R square) has been significantly explained
by the independent variable. The adjusted R square also was taken into
account, 15% showed that there was a correlation. There has a
relationship between independent (brand) and dependent variable
(customer satisfaction towards online shopping). Based on coefficient
Table 5, brand is significant independent variables that influences
customer satisfactions toward online shopping as the significant value
are less than 0.05. Based on significant level, p = 0.000 which is
less than 0.05, then the H1 is accepted hypothesis. It means that
brand has contributed to customer satisfaction towards online shopping
among university students.
Hypothesis of Shopping Experience and Customer Satisfaction
H0: There is no significant relationship between shopping experience
and customer satisfaction towards online shopping among university
students at Universiti Teknikal Malaysia Melaka
H0: There is significant relationship between shopping experience and
customer satisfaction towards online shopping among university
students at Universiti Teknikal Malaysia Melaka
Table 8: Regression for Shopping Experience
Model R R Square Adjusted RSquare
Std. Errorof the
Estimate
1 .461a .213 .208 .52341
a. Predictors: (Constant), Shopping Experience
Table 9: Coefficientsa for Shopping Experience
Model 1
(Constant)
Shopping
Experience
Unstandardized
Coefficients
B 2.160 .660
Std.
Error
.266 .071
Standardized
Coefficients
Beta
.461
T 8.127 6.328Sig. 0.000 0.000
a. Dependent Variable: Customer satisfaction
Table 6 shows that the results of the independent variable that
are needed into regression model and R (0.461) are the correlation of
the independent variable with the dependent variable. The results mean
that 21% of the variance (R square) has been significantly explained
by the independent variable. The adjusted R square also was taken into
account, 21% showed that there was a correlation. There has a
relationship between independent (shopping experience) and dependent
variable (customer satisfaction towards online shopping).
Based on coefficient Table 7, shopping experience is significant
independent variables that influences customer satisfaction toward
online shopping as the significant value are less than 0.05. Based on
significant level, p = 0.000 which is less than 0.05, then the H1 is
accepted hypothesis. It means that shopping experience has contributed
to customer satisfaction towards online shopping among university
students.
DISCUSSION
Research Objective 1
The first objective of this research is to examine the
relationship between product quality and customer satisfaction among
university students at Universiti Teknikal Malaysia Melaka.
Based on data analysis in section 4, the researchers had
determined the independent variables that influences on customer
satisfaction, which are product quality, brand and shopping
experience. The researchers had analysed three factors by using
correlation analysis. The correlation analysis is used to find whether
all of these three factors have relationship with customer
satisfaction (dependent variable), thus influences this dependent
variable.
Based on the findings, it shows that the relationship between
product quality and customer satisfaction is significant. Thus, the
result interpreted that consumers have received what they were
expected on about the product they purchase. Therefore, it is directly
meant that they were satisfied with the product or service offered.
So, when the perceived product quality seems meet or exceed consumer
expectation, the probability for them to repeat online purchasing will
increase due confident level on the product quality offered, which
already experienced by the consumer.
Research Objective 2
The second objective is to determine the relationship between
brand and customer satisfaction among university students at
Universiti Teknikal Malaysia Melaka.
Besides product quality, brand also shown as significant
relationship with customer satisfaction towards online shopping. Based
on coefficient table in Table 5, brand is resulted as significant
independent variable that influences customer satisfactions toward
online shopping, which the significant value are 0.000 which is less
than 0.05. Thus, the result gained gives a meaning that, customers
were satisfied with the brand of product, which is originally not a
fake brand product. It is about overall consumer’s evaluation based on
the total purchase and experience with a brand of product or service
they purchase. However, brand trust, in this vein, expresses the
belief of consumers that the experienced brand satisfaction will
continue to be fulfilled by the brand (Zhou, Zhang, Su & Zhou, 2012).
Therefore, the higher the degree of brand satisfaction the customer
realizes, the higher the level of brand trust.
Research Objective 3
The third objective is to analyse the relationship between
shopping experience and customer satisfaction among university
students at Universiti Teknikal Malaysia Melaka.
Based on the result findings in section 4, shopping experience is
shown as significant relationship between shopping experience and
customer satisfaction. As been mentioned in literature review part,
shopping experience is the feelings of customer experiences during the
use of product and the process of purchasing the product which is the
delivery of product on time or not, the features of the product, the
features of website of the product and the service offer. Thus, this
positive result is interpreted as customer were satisfied with the
process of online purchasing products and services.
Therefore, brand is contributed as one of the vital variable
affected on customer satisfaction. The more experiences the consumers
towards the online shopping, the more satisfy they are with past
online transaction experiences. Besides, the higher the purchase
amounts, the more likely they are to repeat purchase then and the
lower likelihood of them aborting an intended online transaction.
RESEARCH RECOMMENDATION
In this research, the researcher is only test three independent
variables which are product quality, brand, and shopping experience on
customer satisfaction towards online shopping among university
students. This study provides many opportunities for future research,
for example a wide range of possible salient beliefs about shopping
online. So, the researcher hopes that for the future research may
include other factors of customer satisfaction towards online shopping
like advertisement that affected customer satisfaction. Furthermore,
future research should address other relevant construct that affects
customer satisfaction on online shopping. The measures created for
this study should support future research. It is clear that more and
different variables are needed to understand shopping on Internet
fully. It is relatively new phenomenon, and as such may require
additional rethinking of used models.
Lastly, if the researcher is interested in doing survey method in
the future, the questions in questionnaires should be simple and can
be understand by the respondent, so that the respondent will answer
based on their understandings. The targeted respondents should be to
the career person so that the result will be more acceptable.
CONCLUSION
Based on the findings, all components in factors that impact the
customer satisfaction towards online shopping have significant effect.
In this research the researcher just only focus on three factors that
give impact on customer satisfaction which are product quality, brand
and shopping experience. Various approaches have been used in finding
answers of objectives that stated in this research which are
distributed questionnaires, as well as some of methods used to analyze
the data obtained such as, validity and reliability analysis,
correlation coefficient and regression analysis. All data were
obtained from a variety of background of respondent which are the
Master student, PhD student, and Degree student that are from
different year in Faculty Technology Management and Technopreneurship
(FPTT). Finally, the finding sees that there is a significant
relationship between the customer satisfactions towards online
shopping (dependent variable) and the product quality, brand and
shopping experience (independent variables).
ACKNOWLEDGEMENT
This work is supported by Faculty of Technology Management and
Technopreneurship, Universiti Teknikal Malaysia Melaka.
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