Factors impacting online shopping on, satisfaction,

commitment and customer loyalty:

A case study on China’s Top 3 e-commerce platform

Luzi Lin(ID:6319937)

Assumption University
Doctor of Philosophy Program in Innovative Technology Management
Content
1. Introduction
2. Theoretical framework
3. Conceptual framework
4. Research methodology
5. Questionnaire
6. References
 01
Introduction
E-commerce and E-service

● E-commerce is defined as the business of delivering products and services over

the Internet between a company and its customers. Sellers can trade their
resources to buyers via the Internet, which improves efficiency and reduces
offline costs (Norizan M. Kassim & Asiah Abdullah, 2008) .

● E-service is defined as “services delivered via electronic medium (usually the

internet) and comprising transactions initiated and largely controlled by the
consumer” (Colby & Parasuraman, 2003).
Overview of China’s E-commerce market

China has long been the world’s largest market

for ecommerce and mcommerce, but in 2020 it
will overtake the US to become the world’s
largest overall retail market for the first time,
despite substantial economic headwinds
caused by the pandemic (Cramer-Flood,
2020).
Overview of China’s E-commerce market

Consumers will spend $2.090 trillion (RMB14.440 trillion) on retail

ecommerce this year, an increase of 16.0%. That is 7.7 percentage points less
than our pre-pandemic forecast but still hundreds of billions of dollars in
additional spending compared with 2019.
Alibaba, JD.com and Pinduoduo will command 83.6% of the retail
ecommerce market in 2020, compared with 80.3% last year (Crame-Flood,
2021).
Comparison of Chinese three major e-commerce platform

Alibaba JD.com Pinduoduo

Market
capitalization 530.18 110.89 113.87
(billion dollars)

Active user
(million) 811 500 823.80

Source1: Companiesmarketcap. (2021, July 31). Largerst

companies by market cap. https://companiesmarketcap.com/
Source2: China Internet Watch. (2021, March 31). Statistics:
total annual customers – Alibaba vs JD vs Pinduoduo.
https://www.chinainternetwatch.com/statistics/annual-
buyers-baba-jd-pdd/
Problem statement

1. Most of the studies and theories about e-service quality and consumer behavior related to e-commerce come
from western society (Zhang et al., 2014). As the largest e-commerce market in the world, there are relatively
few related studies. In addition, these studies basically only explore the impact of e-service quality on customer
satisfaction and loyalty, and rarely put customer commitment and perceived value into the framework for
research (e.g. Guo et al., 2012; Kuo et al., 2016; Sheng & Liu, 2010; Zhang et al., 2014).
2. As the epidemic continues, people's perception of the quality of electronic services on e-commerce platforms will
change compared with that before the epidemic. And since relevant researches in this area are relatively scarce,
this paper will conduct in-depth research in this field (Koch, 2020; McCabe, 2021; Nurhayati, 2021).
 Objective
To examine the factors impacting China’s
customers’ satisfaction, commitment and loyalty.
 02
Theoretical
framework
Theories related to the model
SERVQUAL theory
SERVQUAL is developed by Parasuraman et. al. (1988), which is a
multi-item scale. It builds a basic skeleton for retailers to understand
consumers’ service expectation and perception, and evaluates the actual
service quality by comparing the service expected by consumers with the
service actually perceived by consumers, so as to find out the gap and
help improve the service quality (Altuntas & Kansu, 2019; Parasuraman
et al., 1988; Rodrigues et al., 2011).
ES-QUAL theory
Parasuraman et al. (2005) developed ES-QUAL to measure the quality of
electronic services. Their research proposed seven dimensions
influencing the quality of electronic services, namely:
● Efficiency
● Reliability
● Fulfillment
● Privacy
● Responsiveness
● Compensation
● Contact
eTailQ theory
eTailQ is a scale integrated by Wolfinbarger and Gilly (2003) to test the
quality of e-service, which aims to explore the unique service
characteristics of online shopping experience. ETailQ theory summarizes
four dimensions of e-commerce service quality, which are
●Fulfillment/Reliability
●Website design
●Customer Service
●Security/Privacy
TRA theory
The theory of reasoned action (TRA) was developed by Fishbein and
Ajzen (1975). It describes the process of predicting human behavior and
explains the connections between attitude toward behavior, subjective
norms, behavioral intention, and behavior.

TRA is an intention model that is widely used in research to predict and

describe consumer behavior in many online and offline domains. In terms
of online shopping research, TRA is regarded as the most appropriate
theory (Raman, 2019).
Case 1
Al-dweeri, R. M., Ruiz Moreno, A., Montes, F. J. L., Obeidat, Z. M.,
& Al dwairi, K. M. (2019). The effect of e-service quality on
Jordanian student’s e-loyalty: an empirical study in online retailing.
Industrial Management & Data Systems, 119(4), 902-923.

Purpose: This paper describes a theoretical model for investigating the three main
antecedent influences on loyalty (attitudinal commitment and behavioral loyalty)
for e-service context: trust, customer satisfaction, and perceived value.

Results: The results indicate that trust, customer satisfaction, perceived value, and
commitment are separate constructs that combine to determine the loyalty, with
commitment exerting a stronger influence than trust, customer satisfaction, and
perceived value. Customer satisfaction and perceived value were also indirectly
related to loyalty through commitment.
Theoretical Framework 1

Source: Al-dweeri, R. M., Ruiz Moreno, A., Montes, F. J. L., Obeidat,

Z. M., & Al dwairi, K. M. (2019). The effect of e-service quality on
Jordanian student’s e-loyalty: an empirical study in online retailing.
Industrial Management & Data Systems, 119(4), 902-923.
Case 2
Kassim, N., & Abdullah, N. A. (2008). Customer Loyalty in e-
Commerce Settings: An Empirical Study. Electronic Markets, 18(3),
275-290.

Purpose: The aim of this paper is to investigate the impact of individual

dimensions of perceived service quality on customer satisfaction, trust and loyalty
in e-commerce settings.

Results: Empirical results indicate that the perceived service quality has positive
direct effects on both customer satisfaction and trust. The results also show that
customer satisfaction appears to have a positive direct effect on trust, while both
customer satisfaction and trust have direct positive effects on loyalty through
word-of-mouth and intention.
Theoretical Framework 2

Source: Kassim, N., & Abdullah, N. A. (2008).

Customer Loyalty in e-Commerce Settings: An
Empirical Study. Electronic Markets, 18(3), 275-290.
Case 3
Luarn, P., & Lin, H.-H. (2003). A Customer loyalty model for E-
service context. Journal of Electronic Commerce Research, 4(4),
156-167.

Purpose: The purpose of this paper is to examine the dimensions of e-service

quality, its effects on e-satisfaction and e-trust and its impact on behavioural and
attitudinal loyalty in Jordanian youth users of online retailing.

Results: It is found that privacy, reliability, emotional benefit and customer service
are important elements to measure the e-service quality, but efficiency is not. E-
trust was found to be an antecedent of e-satisfaction, and behavioural loyalty an
antecedent of attitudinal loyalty.
Theoretical Framework 3

Source: Luarn, P., & Lin, H.-H. (2003). A Customer loyalty model for
E-service context. Journal of Electronic Commerce Research, 4(4),
156-167.
Case 4
Minimol, M. C. (2018). E-Service Quality and Perceived Value as
Predictors of Customer Loyalty towards Online Supermarkets.
Asian Social Science, 14(3), 71-77.

Purpose: A conceptual model explaining the correlation among e ‐service quality

dimensions, customer’s perceived value and loyalty towards online super markets
is proposed and discussed in the present study.

Results: The study pinpointed that the four aspects of eservice quality, namely,
fulfilment, system availability, efficiency and privacy positively influence the
perceived value. It also disclosed that perceived value positively contributed to
customer loyalty.
Theoretical Framework 4

Source: Minimol, M. C. (2018). E-Service Quality and Perceived

Value as Predictors of Customer Loyalty towards Online
Supermarkets. Asian Social Science, 14(3), 71-77.
 03
Conceptual
framework
Conceptual Framework
Reliability
H1

H2
Responsiveness Satisfaction
H7
H5
H3

H8 Customer
Web design Commitment
H4 Loyalty

H6
H9
Perceived
Privacy
Value
Hypothesis
H1:Reliability has significant impact on Satisfaction.
H2:Responsiveness has significant impact on Satisfaction.
H3:Web design has significant impact on Satisfaction.
H4:Privacy has significant impact on Satisfaction.
H5:Satisfaction has significant impact on Commitment.
H6:Perceived value has significant impact on Commitment.
H7:Satisfaction has significant impact on Customer Loyalty.
H8:Commitment has significant impact on Customer Loyalty.
H9:Perceived value has significant impact on Customer Loyalty.
 04
Research
methodology
Target population

The population used in this research consists of customers who have

online shopping experience on China’s top 3 e-commerce companies and
do online shopping at least 1 to 2 times per week.
Sample size
A-Priori Sample Size Calculator for Structural Equation Models is used
to study the sample size required.

Source ： Soper, D. S. (2019). A-priori Sample Size Calculator for Structural Equation Models [Software].
www.danielsoper.com/statcalc/default.aspx
Sampling techniques
The researcher used multi-stage sampling in sampling
procedure for this study.

First stage, use purposive sampling to select customers who have

online shopping experience on China’s top 3 e-commerce companies
and do online shopping at least 1 to 2 times per week.
Sampling techniques
Second stage, to use probability sampling method of stratified random
sampling of total active users of these 3 e-commerce platform which
are 1664 million and was distributed by ratio per shown as the table
below.

Approximate Propotionate
Platform group Active users (million) Sample size

Alibaba 811.00 190

JD.com 500.00 193

Pinduoduo 823.80 117

Total 2134.80 500

Source: China Internet Watch. (2021, March 31). Statistics: total annual customers – Alibaba
vs JD vs Pinduoduo. https://www.chinainternetwatch.com/statistics/annual-buyers-baba-jd-
pdd/
Sampling techniques
Third stage, convenience sampling (non probability)

The questionnaires were distributed online and offline.

Screening questions will be set to ensure that respondents meet
the target group of customers who have online shopping
experience on China’s top 3 e-commerce companies and do
online shopping at least 1 to 2 times per week.
 05
Questionnaire
Questionnaire design

Part I : Screening Questions

Part II : Demographic Questions

Part III: Factors impacting

Questionnaire design
Part I : Screening Questions

1. Do you have the experience of shopping on the following e-commerce platforms?

Alibaba

JD.com

Pinduoduo

None

If None, please stop.

2. You shop online more than 1-2 times a week.

Yes No

If No, please stop.

Questionnaire design
Part I : Demographic Questions

1. Please specify your gender

Male Female
2. Please specify your age range

18-24 25-35 36-50 51 and above

3. What is your highest level of education?

Elementary School or lower Junior College

Junior High School Bachelor’s degree

Senior High School Master’s degree or above

Questionnaire design
Part I : Demographic Questions
4. What is your disposable income per month?

2000 China Yuan (CNY) or lower

2001-5000 CNY

5001-10000 CNY

10001 CNY or above

5. What is your current employment status?

Employed Full-time

Employed Part-Time

Seeking opportunities

Retired

Prefer not to say

Questionnaire design
Part III : Factors impacting
Questions related to factors impacting E-service quality on China’s customers’ perceived
value , commitment, satisfaction and loyalty

5 Point Likert Scale will be used

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree
Questionnaire design
Scale items
1.Reliability

1.1 This platform delivers orders when promised.

1.2 This platform makes items available for delivery within a suitable time frame.
1.3 This platform quickly delivers what I order.
1.4 This platform sends out the items ordered.
1.5 This platform is truthful about its offerings.
1.6 This platform makes accurate promises about delivery of products.

Source: Al-dweeri, R. M., Ruiz Moreno, A., Montes, F. J. L., Obeidat, Z. M., & Al dwairi, K. M. (2019). The effect of e-
service quality on Jordanian student’s e-loyalty: an empirical study in online retailing. Industrial Management & Data
Systems, 119(4), 902-923.
Questionnaire design
Scale items
2.Responsiveness

2.1 It is easy to get in contact with this platform te which provides the online services.
2.2 This platform is interested in getting feedback.
2.3 This platform is prompt in replying to queries.
2.4 This platform is prompt in replying to requests.

Source: Kassim, N., & Abdullah, N. A. (2008). Customer Loyalty in e-Commerce Settings: An Empirical Study. Electronic
Markets, 18(3), 275-290.
Questionnaire design
Scale items
3.Web design

3.1 The information on the this platform is attractively displayed.

3.2 The information on the this platform is well organized.
3.3 The information on the this platform is easy to understand and follow.
3.4 This platform layout and colours are appealing (fascinating).

Source: Kassim, N., & Abdullah, N. A. (2008). Customer Loyalty in e-Commerce Settings: An Empirical Study. Electronic
Markets, 18(3), 275-290.
Questionnaire design
Scale items
4.Privacy

4.1 This platform protects information about my webshopping behaviour.

4.2 This platform does not share my personal information with other sites.
4.3 This platform protects information about my credit card.
4.4 This platform appears symbols and messages gives a signal that the site is safe and
protected.

Source: Al-dweeri, R. M., Ruiz Moreno, A., Montes, F. J. L., Obeidat, Z. M., & Al dwairi, K. M. (2019). The effect of e-
service quality on Jordanian student’s e-loyalty: an empirical study in online retailing. Industrial Management & Data
Systems, 119(4), 902-923.
Questionnaire design
Scale items
5.Satisfaction

5.1 I am overall very happy with this platform.

5.2 I am satisfied with my decision to be purchased on this platform.
5.3 My decision in choosing this platform is correct.
5.4 I am satisfied with the purchase experience at this platform.

Source: Al-dweeri, R. M., Ruiz Moreno, A., Montes, F. J. L., Obeidat, Z. M., & Al dwairi, K. M. (2019). The effect of e-
service quality on Jordanian student’s e-loyalty: an empirical study in online retailing. Industrial Management & Data
Systems, 119(4), 902-923.
Questionnaire design
Scale items
6.Commitment

6.1 My preference for this platform would not willingly change.

6.2 It would be difficult to change my beliefs about this platform.
6.3 Even if close friends recommended another e-commerce platform, I would not change my
preference for this platform.
6.4 To change my preference from this platform would require major rethinking.

Source: Luarn, P., & Lin, H.-H. (2003). A Customer loyalty model for E-service context. Journal of Electronic Commerce
Research, 4(4), 156-167.
Questionnaire design
Scale items
7.Perceived value

7.1 The e-services provided by this platform is well priced.

7.2 Considering what I would pay for e-service of this platform, I will get much more than
the worth of my time, effort and money.
7.3 Based on simultaneous considerations of what I received and what I gave up to receive
it, I consider this e-service of this platform to be valuable.
Source: Luarn, P., & Lin, H.-H. (2003). A Customer loyalty model for E-service context. Journal of Electronic Commerce
Research, 4(4), 156-167.
Questionnaire design
Scale items
8.Customer loyalty

8.1 I will recommend the this platform to other people.

8.2 I would recommend the this platform to others.
8.3 I intend to continue using this platform.
8.4 I prefer this platform above others.

Source: Kassim, N., & Abdullah, N. A. (2008). Customer Loyalty in e-Commerce Settings: An Empirical Study. Electronic
Markets, 18(3), 275-290.
Research Analysis Process
Result of IOC
Table 1: Total Number of Items Measuring Variables (Before IOC)

Variables Number of Items

1. Reliability 6
2. Responsiveness 4
3. Web design 4
4. Privacy 4
5. Satisfaction 4
6. Commitment 4
7. Perceived value 3
8. Customer loyalty 4
Total number of items measuring 33
variables
Result of IOC
A total of 33 items were initially used for IOC rating, of which 31
had a result of 0.5 or above, and only two items that did not reach
0.5 were excluded.

1.5 This platform is truthful about its offerings.

5.3 My decision in choosing this platform is correct.

Table 2: Total Number of Items Measuring Variables (After IOC)

Variables Number of Items

1. Reliability 5
2. Responsiveness 4
3. Web design 4
4. Privacy 4
5. Satisfaction 3
6. Commitment 4
7. Perceived value 3
8. Customer loyalty 4
Total number of items measuring 31
variables
Sample size
A-Priori Sample Size Calculator for Structural Equation Models is used
to study the sample size required. (After IOC)

Source ： Soper, D. S. (2019). A-priori Sample Size Calculator for Structural Equation Models [Software].
www.danielsoper.com/statcalc/default.aspx
Result of Pilot test
Table 3: The Value of Reliability Analysis of Each Construct in this Study (n=50)

Variable Cronbach's Strength of

Alpha Association
Reliability 0.813 Good
Responsiveness 0.854 Good
Web design 0.801 Good
Privacy 0.925 Excellent
Satisfaction 0.918 Excellent
Commitment 0.920 Excellent
Perceived value 0.878 Good
Customer loyalty 0.910 Excellent
Hair et. al. (2020) believed that the composite reliability of construct scores should be between
0.7-0.95.
 06
References
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Management & Data Systems, 119(4), 902-923.
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Thank you ！