Classification of Customers’ Satisfaction on Online Grocery Shopping Based on Usefulness and Ease of Use; A Case of Kottawa East Grama Niladhari Division

Abstract

The ability of the consumer to shop online at anytime, anywhere has increased with the rapid growth of internet penetration. Consumer satisfaction is one of the most tested factors in the marketing process because it helps to retain the existing consumers and attract new consumers (Tandon et al, 2017). Davis (1989) developed Technology Acceptance Model (TAM), according to which users’ adoption of computer system depends on their behavioral intention to use, which in turn depends on attitude, consisting of two beliefs, namely Perceived Ease of Use (PEOU) and Perceived Usefulness (PU). The degree to which understanding, learning, and operating a certain system or technology with no physical or mental effort is referred to as ease of use (Davis, 1989). Perceived ease of use can influence the customers’ attitude of a product; thereby it pre-determines the customer’s impression of a company or business about the service they have experienced for customer satisfaction. Accordingly, the research problem of this study is “how to classify the customers’ satisfaction on online grocery shopping based on Perceived Ease of Use (PEOU) and Perceived Usefulness (PU)”. Thus, the aim of this research is to identify the customer satisfaction level based on PEOU and PU using discriminant analysis. Discriminant Analysis, which is a multivariate technique, has been used in this study to assign observation into a category (group) in dependent variable. This method can be used to identify the discrimination among responses. In this study PEOU, PU and Satisfaction have been measured for 211 respondents and 163 (75%) of respondents were taken as the test sample, whereas 48 are in the train sample. Sample has been collected from Kottawa East GN division via simple random sampling. Data was collected by a questionnaire. Results proved that the discriminating customer satisfaction based on PEOU and PU has provided significant outcome as the accuracy is more than 70%. Since PEOU and PU have significant weights in discriminant functions, it can be concluded that customer satisfaction has impacts from both usefulness and ease of use in online shopping.