The valuation of customer satisfaction and service quality in online purchasing in cambodia luận văn thạc sĩ

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HOCHIMINH CITY

CHENG BUNKRY

THE EVALUATION OF CUSTOMER
SATISFACTION AND SERVICE QUALITY IN
ONLINE PURCHASING IN CAMBODIA

MASTER OF BUSINESS ADMINISTRATION THESIS

Ho Chi Minh City – 2011


MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HOCHIMINH CITY

CHENG BUNKRY

THE EVALUATION OF CUSTOMER
SATISFACTION AND SERVICE QUALITY IN
ONLINE PURCHASING IN CAMBODIA
Major: Business Administration
Major Code: 60.34.05

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisor: Dr. TRAN HA MINH QUAN

Ho Chi Minh City – 2011

Abstract
The findings of this research are mostly useful to those (managers, web
designers, etc.) who intend to penetrate the Cambodian market with least cost, time
and energy. The results indicate the most important web quality factors through
Cambodian online shoppers’ perspective. In these recent years, a significant growth
has been noticed in the Internet- based services in the pure Internet businesses as
well as the traditional enterprises, which are developing their online services. One
of the key challenges of online businesses is how they manage service quality,
which holds a significant importance to customer satisfaction. In addition of success
stories, we should be aware of problems; in year 2000 nearly 900 US online firms
were shut down, 31% of them were online retailers (Minjoon Jun, 2004).
The purpose of this research is to rank the quality factors perceived to be
most important in relation to the use of online shops. The questionnaire utilized was
based on the SERVQUAL instrument that identifies five quality dimensions in
service environments.

I


Acknowledgements
First of all I would like to express my sincere gratitude to my supervisors,
Dr.Tran Ha Minh Quanat University of Economics Ho Chi Minh City, Vietnam,
for his intelligent guidance and helpful advice during the whole process, and Mr.
Dang HuuPhucat University of Economics Ho Chi Minh City, Vietnam, for his
very helpful supports on processing data.

I would like to thank all the participants who contributed to my work, not
just for their responses, but also for the good suggestions they made and their kind
help.

Special thanks to my family and friends for their consideration andsupport
during all the process.

Cheng Bunkry

II


Table of Content
CHAPTER 1: INTRODUCTION AND BACKGROUND OF THE STUDY .....1
1.1 Background of the study .......................................................................................1
1.1.1 E-commerce ....................................................................................................1
1.1.2 Online Retailing ..............................................................................................2
1.1.3 E-commerce in Cambodia...............................................................................2
1.2 Problem Discussion...............................................................................................3
1.3 Research Question.................................................................................................5
1.4 Demarcation ..........................................................................................................5
1.5 Disposition of the thesis ........................................................................................5

CHAPTER 2: LITERATURE REVIEW................................................................6
2.1 Customer Satisfaction ...........................................................................................6
2.1.1 Definition of Customer Satisfaction ...............................................................6
2.1.2 Techniques to measure customer satisfaction.................................................7
2.2 E-service quality....................................................................................................8
2.2.1 Conceptualization of e-Services .....................................................................8
2.2.2 E-service quality .............................................................................................8
2.3 SERVQUAL Gaps Model...................................................................................10
2.4 Measuring e-Service Quality...............................................................................11
2.5 Dimensions and determinants of Service Quality...............................................11

CHAPTER 3: RESEARCH METHODOLOGY .................................................14
3.1 Research Purpose ................................................................................................14
3.2 Research Approach .............................................................................................15
3.3 Research Strategy................................................................................................15
3.4 Research Process.................................................................................................16
3.5 Research Model & Hypotheses...........................................................................17
3.6 SERVQUAL dimensions in relation to online Purchasing.................................19

III


CHAPTER 4: RESEARCH RESULT...................................................................23
4.1 Sample and Response rate...................................................................................23
4.2 Service quality measurement ..............................................................................24
4.2.1 Cronbach’s Apha Analysis...............................................................................25
4.2.1.1 Measuring service quality ..........................................................................25
4.2.1.2 Measuring Customer Satisfaction ..............................................................27
4.2.2 EFA Factor Analysis ........................................................................................28
4.2.2.1 Measuring service quality ..........................................................................28
4.2.2.2 Measuring Customer Satisfaction ..............................................................32
4.3Examination research model ................................................................................32

CHAPTER 5: DISCUSSION AND CONCLUSION ...........................................38
5.1 Introduction .........................................................................................................38
5.2 Implications for Theory.......................................................................................39
5.3 Implications for Further Research.......................................................................40

REFERRENCES .......................................................................................................41
APPENDIX I: QUESTIONAIRE .............................................................................43
APPENDIX II: TABLES ..........................................................................................45

IV


List of Tables
Table 2.1: Definition of customer satisfaction............................................................7
Table 3.1: Time of research process .........................................................................16
Table 4.1: Number of respondents by gender ...........................................................23
Table 4.2: Number of respondents by age ................................................................24
Table 4.3: Cronbach’s apha of scale factor: assurance .............................................25
Table 4.4: Cronbach’s apha of scale factor: reliability .............................................25
Table 4.5: Cronbach’s apha of scale factor: responsiveness.....................................26
Table 4.6: Cronbach’s apha of scale factor: empathy...............................................26
Table 4.7: Cronbach’s apha of scale factor: tangible................................................27
Table 4.8: Cronbach’s apha of scale factor: satisfaction ..........................................28
Table 4.9: EFA analysis result of factors affecting customer satisfaction................29
Table 4.10: KMO and bartlett’s test..........................................................................30
Table 4.11: EFA analysis of the satisfaction scale....................................................32
Table 4.12: Regression model summary...................................................................33
Table 4.13: ANOVA (b) ...........................................................................................33
Table 4.14: Coefficients(a)........................................................................................33
Table 4.15: Hypothesis and research results.............................................................36

List of Figures
Figure 2.1: Service quality model , source: parasuraman et al. (1985, p. 44) ..........10
Figure 3.1: Research process flowchart ....................................................................17
Figure 3.2: Service Quality and Customer Satisfaction based on servqual ..............18
Figure 4.1: Hypothesis and research results..............................................................36

V

Page 1

CHAPTER 1
INTRODUCTION AND BACKGROUND OF THE STUDY
1. Introduction
The first chapter in this thesis introduces the background of the selected area.
This will be followed by a problem area discussion that will help reader to
understand the insight of the research area. The problem discussions end with a
research problem and specific research question. In the end of the first chapter we
will also present the disposition of the thesis.

1.1 Background of the study
This section will provide the background of the research area. This section
contains some idea of e-commerce and online retailing as one of the important
factor in e-commerce. Also, a brief introduction of e-commerce situation in
Cambodia is brought here. This section also shows the importance of service quality
and its relationship with customer satisfaction.

1.1.1 E-commerce
E-commerce has many definitions. In business today electronic commerce is
one of the common topics of discussion (Daniel, Wilson & Myers 2002). Is not very
far from what TawfikJelassi& Albrecht Enders in 2005 believed is “Electronic
commerce deals with the facilitation of transactions and selling of products and
services online, i.e. via the Internet or any other telecommunications network".This
was an academic definition for e-commerce, what practitioners believe is: "Ecommerce is often referred to as e-business.
In order to perform one or more of the business functions Internet based
e-commerce systems use World Wide Web based application solutions. These
business functions include information provision, communication, buying, selling,

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distribution, customer service, delivery and payment processing among producers,
suppliers and their customers etc. Using e-commerce systems organizations can
market their products and services online and provide a range of services that
customers themselves can perform without direct human assistance. Its allows
customers to conduct a wide range of activities such as changing address, securing a
credit card or loan, learning from other customers, personalizing a service
agreement and purchases without human assistance (Molla and Licker 2001).
Electronic commerce is a new way of conducting, managing and executing business
transactions using computer (Kalakota and Whinston 1996).

1.1.2 Online Retailing
The rapid growth of the electronics retailers worldwide as we have known
today. Although B2B plays a larger role in part of electronic commerce rather than
B2C, both of them go pass the bricks and mortar. Even if online visitors, most of
them just try to search more informationinstead of buying. These sites are e-CRM
(customer relationship management) necessary tools for retailers to survive in a
competitive market, value added services are necessary to keep the difference with
their competitor. After the emergence of many e-commerce companies start up the
website to the pioneers in this field, but in the mid-2000 many bubbles burst. The
story of the surviving company will lead us to a better understanding of the
strengths and powers.Customers are the lifeblood of an organization, so their
satisfaction is the primary goal of the company.

1.1.3 E-commerce in Cambodia
In Cambodia the Internet is mainly used in the universities for research
purposes, the internet stations throughout the cities are used for limited activities

such as checkinge-mail and making long distance phone calls. Thus the entryof
electronic commerce in Cambodia is in its early stages. Clearly, E-commerce is
something new for this country, but it’s expected to grow steadily in the near future.


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As the follower of this area, we should use the opportunities and avoid the
risks. By analyzing the success stories and looking for the key elements of their
success, and also studying the trend of online retailers which have gone away, we
will be in a better position to establish policies and strategies of us. Many studies
have been done in the field of online retailers worldwide, while many retailers start
their website, it is time to guide them appropriately. Academician who takes the
localization of foreign results to help companyachieving the world standards in
Cambodia.
Here is some of the Cambodian online retailers which is starting their first
step: www.bongthom.com, www.sombok.com.kh, etc.

1.2 Problem Discussion
Though the internet channel is increasingly being used by many online
stores, but many online retailers are closed. In the needs of a competitive market
place understanding customer’s needs become very important. So the company has
moved from a central product to a central location of the customer. Customer
retention is directly affected by customer satisfaction. Retention is an essential
challenge, particularly in Internet-based services, as customers can easily switch
from one service provider to another at low cost (Khalifa and Liu, 2003). Is not very
far from Van Riel, Lijander&Jurriensin 2001which believe that “Considering the
high costs of acquiring new customers and the apparently high customer turnover of
many online services, it is very important to study the determinants of customer
satisfaction”.

Customer satisfaction is the key factor determining how successful the
organization will be in customer relationships, so it is very important to measure it.
Total quality management (TQM) is based on the idea of customer satisfaction - an
approach to management of an organization focused on quality, based on the
participation of all members and towards its long-term success through customer
satisfaction and benefits to all members of the organization and to society (ISO


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8402). The achievement of customer satisfaction actually include customer-oriented
culture, an organization focused on customer, employee empowerment, ownership
of the development team and relations working with customers and suppliers.
In the other words:
• Improving the reputation and image of the company;
• Reducing the customer turnover, increasing attention to customer needs in
TQM planning;
• Reducing the marketing costs and lower transaction costs;
• Reducing the costs related to product / service failures;
• And, finally, increasing the satisfaction among personnel and the stability of
the workforce.

There are many benefits of quality found through market research, especially
in measuring the satisfaction of existing customers, identify customer needs for
product development, and analyzing customer retention and customer loyalty. To
better manage customer satisfaction, companies spend millions on effective monitor
the methods to ensure that customer satisfaction, because the quantitative
measurement of customer satisfaction is a great help to measure overall the impact
of product quality on consumer behavior.
For keeping online retailers alive with logical profits; retaining customers

must be the foremost aim. Customer satisfaction, as we discussed before, has the
most important effect on customer stickiness and in order to narrowing down we
focus on service quality as one of the customer satisfaction’s factors.


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1.3 Research Question
To understand the most important dimensions of service quality that affect
customer satisfaction in online purchasing in Cambodia.
Based onresearch problem raising above the following research questions
hasbeen developed:
1.

Which Service Quality factors impact on online purchasing through
Cambodian perspective?

2.

What are the orders of Service Quality factors that impact on online
purchasing through Cambodia perspective?

1.4 Demarcation
Since aspects of the problem areas are many choices, researchers have tried
to narrow down the focus. The purpose of this study is to find the most important
service quality dimensions that influence customer satisfaction online purchasing in
Cambodia.
In the literature, we will introduce the theory related to service quality and
satisfaction to give a clear idea about the specific area to the readerand to explain
the appropriate context of the study .

1.5 Disposition of the thesis
In this section we will outline how the thesis is structured:
Chapter 1: This chapter will present the background of the study
Chapter 2: This chapter will present theories related to the topic will be presented
Chapter 3: This chapter will explain and justify our choices of methodology that
will beused in order to conduct our thesis.
Chapter 4: This chapter presents the data which is gathered through the
questionnaire survey
Chapter 5: This chapter will present the conclusions, implications and
recommendationsbased on our findings


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CHAPTER 2
LITERATURE REVIEW
2. Literature Review
This chapter will give an overview of literature and models that are related
to the research problem presented in the previous chapter. This chapter will
introduce the concepts of customer satisfaction, service quality, relation between
customer satisfaction and service quality, traditional service quality dimensions,
online service quality dimensions and service quality model of online retailing in
order to give a clear idea about the research area.

2.1 Customer Satisfaction
Early concepts of satisfaction research have typically defined satisfaction as
a post choiceevaluative judgment concerning a specific purchase decision
(Churchill and Sauprenant 1992). Most researchers agree that satisfaction is an
attitude or evaluation that is formed by the customer comparing their pre-purchase

expectations of what they would receive from the product to their subjective
perceptions of the performance they actually did receive.

2.1.1 Definition of Customer Satisfaction
Several authors have defined satisfaction in a different way. Following table
will present some definition of customer satisfaction that will give us clear idea
about satisfaction concept.


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Table 1Table 2.1: Definition of Customer Satisfaction

Table 2.1: Definition of Customer Satisfaction
DEFINITION
Customer

satisfaction

is

a

collective

AUTHOR
outcome

of

Yi (1990)

perception, evaluation and psychological reactions to the
consumption experience with a product/service.
“Satisfaction is a person’s feelings of pleasure or
disappointment resulting from comparing a product’s

Kotler (2000, p.36)

perceived performance (or outcome) in relation to his or
her expectations”.

2.1.2 Techniques to measure customer satisfaction
Market research techniques to measure customer satisfaction which are:
• The survey methodologies of customer satisfaction;
• Focus groups to research the issue of customer satisfaction
• The standardized package for monitoring customer satisfaction
• Various computer software
There are some technical problems with measuring customer satisfaction as
the typical focus group, the survey methodologies of customer satisfaction software.
They include:
• Analysis - concerned with the technical and formal procedures, systems, and
so on;
• Behavioral – concerned with the attitudes, beliefs, perceptions, motivation,
commitment and actions of those involved in the process;
• Organizational - concerned with the organizational structure, information
flows, management styles and corporate culture, i.e. the context in which the
process is conducted. (Ingrid FecIikovaA, 2004)

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2.2 E-service quality
2.2.1 Conceptualization of e-Services
Customer perceived service quality has been theoretically represented as
consisting of two dimensions. Berry and Parasuraman (1991) distinguish a process
and an outcome dimension, whereas makes a distinction between functional and
technical quality. The process or functional quality refers to ``how’’ the service is
delivered, while the outcome or technical quality refers to ``what’’ customers
receive, the benefits of using the service. The propose that for services offered on
the Internet the traditional service concept, consisting ofthe core service, facilitating
and supporting services, needs to be extended with a fourth factor, the user
interface. As noted, it is often difficult to differentiate between facilitating and
supporting services. A term that has been coined to more generally denote services
that are not part of the core service is supplementary services.Facilitating and
supporting services are both closely connected with the core service. For an online
bookseller facilitating services could be search facilities, an invoice archive and
secure payment methods. Book reviews and personal recommendations could be
interpreted as supporting services. In addition, independent, though related products
that are neither facilitating nor supporting the core service can be offered through
the portal site. In the case of a medical portal, we could think of self-contained
products, such as specialized financial services, insurances, a travel agency, an
option to purchase medicine online, etc.

2.2.2 E-service quality
Using online trading sites can be described as a complex process that can be
divided into sub-processes, such as retrieving or exchanging information and
articles, or ordering books. Each of the four service components could be described
in terms of process and outcome, and could also be analyzed into sub-dimensions
and quality determinants. For example, customers may be satisfied with the

responsiveness and user-friendliness of a search engine but dissatisfied with the


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reliability of the search outcome. It is assumed that the un/successful process or
outcome of an interaction influences customers’ overall satisfaction with the Web
site. However, most likely the customer will not evaluate each sub-process in detail
during a single visit to a Web site, but will perceive the service as an overall process
and outcome, unless one of the service elements stands out as especially positive or
negative. The same applies to a series of interactions within a customer e-service
relationship. In a study of critical incidents found that positive incidents were rare
and that dissatisfying incidents were often caused by process failure, such as lost
orders.
The process and outcome dimensions of an e-service can thus be divided into
more specific service quality dimensions. The best-known evaluation dimensions
are the five proposed in the SERVQUAL model (Parasuraman et al.,1988):
tangibility, responsiveness, reliability, assurance and empathy.
Parasuraman and Grewal (2000, p. 171) suggest that research is needed on
whether ``the definitions and relative importance of the five service quality
dimensions change when customers interact with technology rather than with
service personnel’’. Since the dimensions were developed from, and for,
interpersonal encounters, in our opinion the content description and scale items
would have to be reformulated before they can be meaningfully used in an e-service
context. For example, tangibility could be replaced with the user interface.
Responsiveness could refer to the company’s responses to customers’ requests and
the speed of order confirmation. Reliability could relate to the on time delivery of
ordered goods, accurate supply of information and error freeness of links.
Assurance could refer to the safety of on-line transactions and the policy for using
personal information by the company. Assurance refers to a general trustworthiness,

which has been considered one of the most important drivers of e-service
satisfaction. Finally,empathy could be interpreted as the degree of customization of
communications and the service provider’s awareness of customers’ personal needs.


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2.3 SERVQUAL Gaps Model
Parasuraman et al.‘s (1985; 1988) basic model was that consumer
perceptions of quality emerge from the gap between performance and expectations,
as performance exceeds expectations, quality increases; and as performance
decreases relative to expectations, quality decreases (Parasuraman et al., 1985;
1988). Thus, performance-to-expectations —gaps“ on attributes that consumers use
to evaluate the quality of a service form the theoretical foundation of SERVQUAL.
The SERVQUAL model concentrates on five “gaps'' impairing the delivery of
excellent service quality; this study focuses on Gap 5:
Figure 2.1: Service Quality Model , Source: Parasuraman et al. (1985, p. 44)
Figure 1Figure 2.1: Service Quality Model , Source: Parasuraman et al. (1985, p. 44)

Customer

Expected Service
Gap 5
Perceived Service

Gap 4

Gap 1

Service Delivery

External
Communications
To Consumers

Translation of
Perceptions into
Service Quality

Gap 2
Management
Perception of
Consumer

Marketer

Gap 3


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2.4 Measuring e-Service Quality
Customer satisfaction is a critical issue in the success of any business system,
traditional or online. In a turbulent e-commerce environment, in order to sustain the
growth and market share, Internet companies need to understand how to satisfy
customers, since customer satisfaction is critical for establishing long-term client
relationships. It is evidenced by the fact that over the last five years, customer
satisfaction surveys have become common in many financial institutions. Thus, a
fundamental understanding of factors impacting Web-customer satisfaction is of
great importance to e-commerce. Furthermore, the need for research in Webcustomer satisfaction has been accentuated by the increasing demand for the longterm profitability of dotcom companies and traditional companies that are “Netenhanced” (Pather, Erwin &Remenyi, 2002).

To understand satisfaction in the e-commerce context, we need to have a
clear understanding of what is meant by customer satisfaction. Customer
satisfaction is defined as a result of a cognitive and affective evaluation, where
some comparison standard is compared to the actually perceived performance. If the
perceived performance is less than expected, customers will be dissatisfied. On the
other hand, if the perceived performance exceeds expectations, customer will be
satisfied.
2.5 Dimensions and determinants of Service Quality
Parasuraman et al. (1985; 1988) addressed the issue as to how the customer
makes an assessment of service quality. They came up with ten determinants that
can be used to measure service:
(1) Access (approachability and ease of contact);
(2) Communication (informing and listening to customers);
(3) Competence (possession of required skills and knowledge to perform
the service);
(4) Courtesy (demeanor and attitude of contact personnel);
(5) Credibility (trust worthiness and honesty);


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(6) Reliability (consistency of performance and dependability);
(7) Responsiveness (timeliness of service and willingness of employees);
(8) Security (freedom from danger, risk or doubt);
(9) Tangibles (physical evidence of service); and
(10) Understanding/knowing the customer (making an effort to understand
the customer’s needs).
Credibility is an evaluation that can be made before using this service that
has the same bearing in e-commerce. In general, a client will only make an ecommerce transaction after some type of introduction from an outside source,
whether through advertising, or by word of mouth. Security is very importance

when conducting transactions online. Typically, these sites would indicate that it is
a secure site for customers to provide, for example, credit card details, without
having to worry about other people access to this information. Other determinants
such as understanding the customer and also access to relevant e-commerce market.
A site must be available at all times and no opening and closing like a high street
bank or shop normally. To understand the client, a Web site has smart cookies files
that recognize repeat customers and do this by asking for a new customer to register
certain types of users as an e -mail each time which they enter on the visiting site.
This way, customers can be sent information by e-mail or offers to purchase on the
web depends on what they had bought. The goal is to meet customer’s needs and
provide the type of individual that a regular customer will receive from personnel
contacts in a BAM environment. Communication on the Internet is difficult because
the interaction between Web sites and the customer is often one way; the website
provides information to customers. It is only when a web site provides a phone
number or e-mail address where customers communicates with the company
directly, and in many cases, the queries received from e-mail cannot respond
directly to queries. In a similar manner, courtesy and competence can hardly be said
to non-existent in the website experience. The customer will generally navigate a
website if it is easy to use but he or she will not be able to judge what the personnel


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are like behind this interface, or if they have the skills necessary to perform a
service. It is only through customer service options that can be evaluated and even
then, answer e-mail messages are not automatically in human characteristics.
Tangibles are for the most part unrelated to measuring service quality in ecommerce as customers interact with the site. Therefore, customers cannot
comment on the physical properties are used to deliver a service. Most e-commerce
company or have their own warehouses to fulfill orders for products to be sent, or to
ensure suppliers do this directly. The activities may take place away from where the

customers sit and so is not applicable. Responsiveness and reliability, however,
applicable because they relate to what the company promises. There can be judged
reliability, for example, by getting the correct product exactly by the customer
within 48 hours. This is important for any business and related to the interaction
between the interface and the back-end process is complete. Responsiveness is
slightly more indiscernible, especially when directly interact with the Website. If
the customer has a problem, the customer service option of telephone or e-mail is
how to report and it is here the ability to respond well and at a reasonable speed of
company being assessed. This is also relevant if it is completed as part of customer
service and send back an item or it is late arriving.
Parasuraman et al. (1988, 1988) subsequently reduced these ten determinants
to five, the following first three being the original ones and the other seven original
ones categorized into (4) and (5): (1) Tangibles; (2) Reliability; and (3)
Responsiveness; (4) Assurance (knowledge and courtesy of employees); and (5)
Empathy (caring, individualized attention the firm provides its customers).


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CHAPTER 3
RESEARCH METHODOLOGY
3. Methodology
This part will provide the conceptual framework based on literature review.
This chapter will explain the key factors, variables and relationships among theories
or models and provides a theoretical overview. The conceptualization helps us to
answer the study’s research questions. This conceptual framework will also guide
the data collection of this study.

3.1 Research Design
Early in any research study, one faces the task of selecting the specific

design to use. A number of different design approaches exist but, unfortunately, no
simple classification system defines all the various that must be considered (Cooper
& Schindler, 2003).
Research can be classified in terms of their purpose. Accordingly, Saunders,
Lewis &Thornhil (2003) mentioned that they are most often classified exploratory,
descriptive or explanatory while Cooper and Schindler (2003) categorized in
descriptive and causal. This way the essential difference between descriptive and
causal studies lies in their objectives. If the research is concerned with finding out
who, what, where, when, or how much, then the study is descriptive. In a causal
study, we try to explain relationships among variables.
The purpose of the research is descriptive. The data has been collected
through questionnaire, is aimed to understand the most important factors of service
quality


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3.2Research Approach
The knowledge claims, the strategies and the method all contribute to a
research approach that tends to be more quantitative, qualitative or mixed.
Quantitative approach is one in which the investigator primarily uses post
positivist claims for developing knowledge (i.e. cause and effect thinking, reduction
to specific variables and hypotheses and questions, use of instrument and
observation, and the test of theories), employs strategies of inquiry such as
experiments and surveys and collects data on predetermined instruments that yield
statistical data.
Qualitative research is multi method in focus, involving an interpretive,
naturalistic approach to its subject matter. This means that qualitative researchers
study things in their natural settings, attempting to make sense of, or interpret,
phenomena in terms of the meanings people bring to them.

Since the purpose is to understand the most important dimensions of service
quality from the Cambodian customers’ perspective, quantitative research is found
to be more appropriate for this study.

3.3 Research Strategy
Research strategy will be a general plan of how researcher will go about
answering the research questions that has been set by researcher. It will contain
clear objectives, derived from research questions specify the sources from which
researcher intend to collect data and consider the constraints that researcher will
inevitably have such as access to data, time, location and money, ethical issues
(Thornhill et. al., 2003).
Based on the conditions 1) form of research question 2) requires control over
behavioral events and 3) focus on contemporary events five research strategies were
identified in social science. These are – experiments, surveys, archival analysis,
histories and case studies.


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Since question in this study is based on “what” question and this what
question is actually form a “how many” and investigator has no control over the
actual behavioral events, Survey is found to be a more appropriate approach in
order to gain a better understanding of the research area. Survey is more appropriate
for quantitative study.
Purpose of this research is to classify the service quality dimensions in online
shopping from the Cambodia shoppers. For the study sample has been selected from
people who works and live in Phnom Penh Capital, Cambodia; because this group
has more experience of e-commerce and online shopping than the rest of people in
other provinces or city, Cambodia. Sample was selected by using judgment because
some criteria were followed during the sample selection:

ƒ

Sample should be more familiar with using Internet;

ƒ

Sample should have experience of using Online purchasing;
The questionnaire was divided into two parts in order to let responders more

time to concentrate on each question.

3.4 Research Process
Research process is presented in Figure 3.1 and the time of data collection is
presented in Table 3.1
Table 2Table 3.1: Time of Research Process

Table 3.1: Time of Research Process
Step Types of Research

Research method

Technique

Time

1

Draft version

Qualitative

Analysis

Apr, 2011

2

Final version

Quantitative

Face-Face Interview

Jul-Sep, 2011


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Figure 3.1: Research Process Flowchart
Figure 2Figure 3.1: Research Process Flowchart

Draft
measurement
scales

Literature review
SERVQUAL

Face to Face Interview

Final
measurement
scales
Quantitative study
(n = 170)
ƒ Eliminate variables that have low Item-Total
Correlation coefficients.
Cronbach’s alpha
EFA

ƒ Check Cronbach’s alpha coefficients.
ƒ Eliminate variables that have low EFA loadings
ƒ Check Eigen values and extraction Sums of
Squared Loadings

ƒ Test hypotheses.
Multiple Regressions

ƒ

Check the fitness of the multiple regression
equation

3.5Research Model & Hypotheses
Based on the narrow down scope of literature review above, the relationship
between service quality and customer satisfaction can be shown in figure 1. The
five Service quality dimensions have been selected from the SERVQUAL. In the
SERVQUAL instrument, 28 statements measure the performance across these five
dimensions. For each statement, the expectation and the experience of a customer
are determined. There is some criticism on the long-term stability of the results of

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the SERVQUAL scale and on the general applicability of the five dimensions.
Although alternative models have been proposed for the measurement of service
quality, the SERVQUAL scale has been widely used by academics and practitioners
to measure service quality.
Therefore, this model has been used as a point of reference in this thesis.
Tangibles
Service Quality
Dimensions
(SERVQUAL)

Reliability
Responsiveness

Customer
Satisfaction in
Online Purchasing

Assurance
Empathy

Figure 3.2: Relationship between service quality and customer satisfaction based
on SERVQUAL
Figure 3Figure 3.2: Relationship between service quality and customer satisfaction based on SERVQUAL

Based on the above research model, we propose the hypothesis of the study
as below:

H1: Customer perception about the tangible of this service is increased or decreased,
their level of satisfaction with services also increase or decrease with.
H2: Customer perception about the reliability of this service is increased or decreased,
their level of satisfaction with services also increase or decrease with.
H3: Customer perception about the responsiveness of this service is increased or
decreased, their level of satisfaction with services also increase or decrease with.
H4: Customer perception about the assurance of this service is increased or decreased,
their level of satisfaction with services also increase or decrease with.
H5: Customer perception about the empathy of this service is increased or decreased,
their level of satisfaction with services also increase or decrease with.