Customer Satisfaction towards Online Shopping in Sri Lanka: Moderating Effect of Income Level

Aim: Online shopping is the most popular feature around the world as well as in Sri Lanka. People are tending to do online shopping by using those social media and also by using online shopping websites. As well as most of the business organizations try to use online shopping to sell their product and to increase their market. The objective of this research is to assess the factors influencing customer satisfaction while doing online shopping. Further, the study tested the moderating effect of income level on the relationship between factors influencing customer satisfaction on online shopping.

Design: This study used the deductive approach and research design was based on quantitative and cross sectional. The targeted population for this study is customers living around the Colombo area, those who have internet facility in their living place or working place. The sample size was 380. The survey method is employed to collect data through a standardizes questionnaire. The selected dimensions (customer satisfaction, convenience, security, website functionality and customer service) were measured by using a Likert scale measurement items, acknowledging the prior studies.

Findings: According to the survey findings of this study, Convenience, Web site functionality, Customer service have significant influence on customer satisfaction on online shopping. The results also indicated that the income level has a significant moderating effect on the relationship between Convenience, Web site Functionality, Security and Customer service and Customer satisfaction on online shopping.

Implications: According to the findings of this study online retailers can identified that their consumers are more concern about the website functionality, customer service, and convenience of the online shopping. Therefore, online retailers can develop their website by adding more functions which will be helpful and easy for the customers and they can further improve their customer service at the prior purchase level as well as at the post purchase level in order to attract more customers and retain the existing customers with their business.