Developing a scale to measure percieved service quality in online retailing among youngsters in...

8/12/2019 Developing a scale to measure percieved service quality in online retailing among youngsters in India

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eveloping a scale to measure service quality oonline retail sites as perceived by youngsters

By Ashish viswanath Prakash

Prashanth K N

Yashwanth krishnaSchool of Management

Manipal nstitute of Technology

Manipal University


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The growth rate of Online Shopping is gaining pace inIndia.39% during FY 2013 to FY 2016 .(E&Y report rebirthof ecommerce in India) World average 6-7 %lacking behind only USA and ChinaThe revenue generation

$2.5b in 2009

$6.3b in 2011$14b in 2012$24b by 2015.

It is expected to contribute 4% to our GDP by 2020.


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cash-on-delivery facilityIncreasing acceptance of online payment.

discounts & offersStrong courier networkEmerging logistic providersBusy lifestyle

(I ndian Onl ine Retai l M arket Analysis june 2012RNCOS repor t )

24/7 Availabilty (Malhotra & singh 2013)


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Internet shopping sites as web retail sites inwhich customers can browse, evaluate, order,

and purchase a product or service (yoo and donthu 2001 )

Sites can be classified into six retail models(Clark 1997)


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services are deeds, processes, and performances provided or co-produced by one

entity or person for another entity or person . Zeithaml et al . (2009, p. 4)

A service is a time-perishable, intangibleexperience performed for a customer acting inthe role of a co-producer.

(James Fitzsimmons)


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Service means different things in differentcontexts ..

Despite more than 25 years of study, scholarsin the field of services management do notagree on what a service is. (Haywood-Farmerand Nollet (1999))


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Service quality is the single most researchedarea in services marketing to date .

Baron et al ., (2009, p. 167)Improving service quality is crucial forgaining a competitive advantage (Baron et al .,2009; Parasuraman et al ., 1985)Poor quality -> disadvantage potentiallydriving away dissatisfied customers (Lovelockand Wirtz, 2011)


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The conformation to specifications Crosby(1979, p. 15)

a measure of how well the service leveldelivered matches customers expectations. Lewis and Booms (1983)service quality stems from a comparison of aconsumers general expectations with theiractual perceptions Parasuraman et al . (1988),


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Perceived service quality (Zeithaml etal ,1990)Concept PSQ Emerges from subjective nature

(Rust and Oliver, 1994)Hill (1995) ->co-production->participation/involvement of the customer.


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Despite numerous attempts by academics,no single model of service quality is

universally accepted (Clewes, 2003)service quality is difficult to define(Parasuraman et al ., 1985).Due to the intangible nature of services,making conceptualization more difficult forservices than goods (Palmer, 2011)


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Generic instrument not sufficientVoss (2000) argued that electronic channels

are simply so different from the bricks -and-mortar environment - a complete rethink ofelectronic service quality is necessary.


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Competition among online retailers hasbecome fierce (yang et al., 2003)

quality of Internet sites will play animportant role in differentiating sites . High quality sites will be able to attract morebrowsers and shoppers quality builds sustainable competitiveassets - ( Yoo and donthu 2001)


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As identified by previous researchers
http://localhost/var/www/apps/conversion/tmp/scratch_5/literature%20review.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_5/literature%20review.docx


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120 million people online in 2011 3rd largest60 percent of web users in India visit onlineretail sites.72- 78 % of online population


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young generation provides an emergingprospect for online retailers in india

(Malhotra & singh2013)Trend among youngstersAddiction ?Most of youngsters stick to internet forgrabbing best deals in online instead ofshopping in malls and supermarkets(malhotra & singh 2013 )


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Young at heart ???

12 to 25 years (UNESCO)

16-29 years (James (1986) )

15 -35 (mckinsey report 2013 )

16- 30 (malhotra and singh 2013 )


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Restricted to Indian youngsters


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Not many papers in Indian contextNot many previous studies which considers

youngsters (exclusively) perception ofservice quality.(Malhotra & singh (2013)


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Data primary

Type exploratory

Analysis & interpretation- IBM SPSS v. 20.

School of Management, Manipal 21


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1. Item generation literature review, focus group2. Data collection pretest - questionnaire3. The scale was tested for reliability

The item-to-total correlation and coefficient alpha were usedto assess the reliability of the scale and improve upon itemsto improve the reliability of the scale

4. Data collection 2 nd round5. Factor analysis was used to assess the construct

validity of the scale6. Testing predictive validity



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LiteratureOpen ended questions (Yoo & donthu 2001)

Focus group ( jain et al. 2012)



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Questionnaire s distributed 112Total questionnaires received 51

Not used online shopping 6Valid feedback 45

Response rate : 51/112
http://localhost/var/www/apps/conversion/tmp/focal%20group%20question%20for%20initial%20item%20generation.pdfhttp://localhost/var/www/apps/conversion/tmp/focal%20group%20question%20for%20initial%20item%20generation.pdf


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Regular shoppers among MBA students(operations, marketing, HR ) of SOM Manipal

Sample size : 10 (MacFarlane Smith, 1972;Cox et al., 1976)Duration :30 minsProcedure for analysis video recording -(Market Research Society R&Dsubcommittee, 1979


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Total pool focus group / questionnaire- 285

Removing redundancy 91

Screening 68


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Items : 68 Latent variables : 16

91 initial items ; Collier & bienstock (2006)121 items ;Parasuraman et al., (2005)

Hinkins (1995) suggests to include numerousmeasures in the initial survey to allow fordeletion of items after factor and reliabilityanalysis.

http://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/item%20report%20table.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/item%20report%20table.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/item%20report%20table.docx


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RESPONSIVENESS

EASE OF USE

COMPETITIVE VALUE

PRODUCT UNIQUENESS

CORPRATE BRAND EQUITY

PURCHASE PROCESS

PROCEDURAL FAIRNESS

PERSONALIZATION

EFFICIENCY

INFORMATION ACCURACY

SECURITY

PRIVACY

ORDER ACCURACY

DESIGN

ORDER CONDITION

SYSTEM AVAILABILITY

ServiceQuality


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Convenience samplingItems (belonging to different groups )were

deliberately mixed to avoid bias.Data collection link Management ,engineering, commerce andhospital administration, contacts in FB1 day to fillResponse rate : 256/310Sample size 237 after screening
http://localhost/var/www/apps/conversion/tmp/final%20questionnaire.pdfhttp://localhost/var/www/apps/conversion/tmp/final%20questionnaire.pdf


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A 5-point Likert-type scale was used toincrease response rate and response quality

along with reducing respondents frustrationlevel (Babakus and Mangold 1992).


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Mean(AGE)

23.41

RANGE 15 - 30


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Reliability testPurification of an instrument begins with

Cronbachs alpha & item to total correlationChurchill (1979)Cronbach's alpha is the most commonmeasure of internal consistency ("reliability")


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Item-to-total correlations < 0.3Deletion of item for improving cronbachs

alpha of latent variableLatent variable with


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13 items got eliminated .Now we have :

55 items under 13 latent variable groupNext stage : construct validity - EFA
http://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/reliability%20test%20table.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/final%20reliable%20test%20table.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/final%20reliable%20test%20table.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/reliability%20test%20table.docx


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New questionnaire - 55+ 3 global items distributed to

MIT Mtech students MBA Jewelry Management students MHA students Contacts in FB

Response rate : 236/300 78.6%After screening 228 samples

(yang et al., 2003) - 137(Yoo and donthu 2001) - 207
http://localhost/var/www/apps/conversion/tmp/item%20reduction%20after%201st%20round.pdfhttp://localhost/var/www/apps/conversion/tmp/item%20reduction%20after%201st%20round.pdf


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Mean(AGE)

22.41

RANGE 18 - 29


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EFA was performed using principalcomponent analysis and the Varimax rotation

(jain et. Al 2012)


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KMO measure of sampling adequacyKMO should be >0.7 (hair et al. 1998)

Communalities >0.5 (hair et al. 1998)

Criteria for deletion of items: (jain et. al 2012)< 0.4 loading on any of the factorCross loading > 04. on more than one factor


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KMO value 0.865 (significant at .001)

0.80's meritorious Andy field(2005)

All communalities > 0.5

15 factors explained 68.643% of variance

among items.


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Items coded asEFF1,INFA4,PERS3,INFA5,FAIR2,EASE6were having loading 0.4 onmore than one factorItems were removed and EFA was performedagain. link
http://localhost/var/www/apps/conversion/tmp/factor%20final.pdfhttp://localhost/var/www/apps/conversion/tmp/factor%20final.pdf


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37 items grouped under 10 factors3 items for global variable quality

Link
http://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/factor%20name%20after%20cross%20loading%20deletion.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/factor%20name%20after%20cross%20loading%20deletion.docx


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Validity is established when a criterionexternal to the measurement instrument is

correlated with the factor structure (Nunnally,1967).

Correlation test each factor against quality


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DIMENSION

CORRELATION WITHSERVICE QUALITY SIGNIFICANCE LEVEL

FACTOR1 .326** 0.000

FACTOR2 .424** 0.000

FACTOR3 .193** 0.003

FACTOR4 .296** 0.000

FACTOR5 .338** 0.000

FACTOR6 .404** 0.000FACTOR7 .303** 0.000

FACTOR8 .385** 0.000

FACTOR9 .303** 0.000

FACTOR10 .195** 0.003


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The results provide empirical evidence thatthere are 10 dimensions for online retail

service quality.The results of the EFA and predictive validityindicate that the scale is psychometricallysound


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This can be used as a diagnostic tool thatallows various online retail sites to align the

process of service provision with customerexpectations.Potentially, this scale will benefit Internetshopping site designers and researchers andcan be used to evaluate and track the qualityof Internet shopping sites


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Link
http://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/Bibliography.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_5/presentation/Bibliography.docx

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