E-COMMERCE AND CUSTOMER SATISFACTION (A STUDY OF JUMIA.COM AND OLX.COM)

E-COMMERCE AND CUSTOMER SATISFACTION (A STUDY OF JUMIA.COM AND OLX.COM)

ABSTRACT

Electronic commerce also known as e-commerce has facilitated the emergence of new marketing strategies and business models in several industries in developing countries, Nigeria inclusive. This study examined E-commerce and Customer satisfaction. Users of and employees of Jumia.com and OLX.com served as the study population. The broad aim of the study was to examine the effect of E-commerce on customer satisfaction while other objectives were; to identify the factors responsible for consumer re-order purchase in Jumia and OLX.com and to determine causes of consumer loyalty to the online products of Jumia.com and OLX.com. Analysis of data is based on 120 copies of questionnaire administered to users of Jumia.com and OLX.com. A total of 50 copies were filled and returned from Jumia.com and 55 was filled and returned from OLX.com, making a total of 105 copies returned while 15 was withheld. The formulated hypotheses were tested using chi-square. Results of the study shows that there are factors responsible for customer re-order purchase in Jumia and OLX.com. The study therefore recommends that an online marketing organization should work at adopting policies that would reflect the factors that encourages customers to use online shops. For example, customers want to be sure of adequate security on their online transactions, they want to be sure that their personal identity and information is intact and that there is need for online shops to do a lot of advertisement based on the fact that many consumers still do not know the advantages of buying their goods online.

TABLE OF CONTENT

Pages

Title Page

Certification                                                                                                                ii

Dedication                                                                                                                  iii

Acknowledgement                                                                                                      iv

Abstract                                                                                                                      v

Table of Content                                                                                                         vi

CHAPTER ONE: INTRODUCTION

1.1       Background to the Study                                                                                1

1.2       Statement of the Problem                                                                                3

1.3       Aim and Objectives of Study                                                                         4

1.4       Relevant Research Questions                                                                         4

1.5       Relevant Research Hypotheses                                                                      5

1.6       Significance of the Study                                                                               5

1.7       Scope of the study                                                                                          5

References                                                                                                      6

CHAPTER TWO: LITERATURE REVIEW                                                                  

2.1       Preamble                                                                                                         8

2.2       Theoretical Framework of the study                                                              9

2.3       Empirical Review of Previous works in the area of study                             10

References                                                                                                      22

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Preamble                                                                                                         25

3.2       Research Design                                                                                             25

3.3       Population of study                                                                                        25

3.4       Sampling Procedure and sample size                                                             26

3.5       Data Collection Instrument and validation                                                     26

3.6       Method of Data Analysis                                                                                27

3.7       Limitation of the Methodology                                                                      27

References                                                                                                      29

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 

4.1       Preamble                                                                                                         30

4.2       Analysis of respondents’ Bio-Data                                                                    32

4.3       Analysis of Questionnaire items                                                                        44

CHAPTERFIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1       Summary                                                                                                         46

5.2       Conclusion                                                                                                      48

5.3       Recommendations                                                                                          48

Bibliography                                                                                                   49

Appendix                                                                                                        54

CHAPTER ONE

INTRODUCTION

1.1              Background to the Study

Electronic commerce also known as e-commerce has facilitated the emergence of new marketing strategies and business models in several industries in developing countries, Nigeria inclusive. Significant changes are happening in product retailing with the introduction of online shopping, especially in terms of channel development and coordination, business scope redefinition, the development of fulfillment centre model and core processes, new ways of customer value creation, online partnerships and general customer satisfaction. In fact the role of online marketing itself has undergone some significant changes in the last few years in Nigeria (Irene 2004). The electronic commerce segment of the retail market has witnessed tremendous growth in terms of participation in the Nigerian economy in the past few years. According to Johnson, (2012) over 100 firms both local and foreign have shown greater interest in the sector alleged to worth over $50 billion annually. The industry has no doubt opened doors for the coming generation of young Nigerian entrepreneurs. Electronic commerce industry has no doubt increased the percentage of local content in products and services as well as increased utilization of local capacity.

E-COMMERCE AND CUSTOMER SATISFACTION (A STUDY OF JUMIA.COM AND OLX.COM)