The Understanding Gen Z Satisfaction and Loyalty Towards Online Shopping in Klang Valley, Malaysia

Abstract

E-Commerce has been a global trend since few years ago and it is predicted that the sales of e-commerce globally will grow exponentially, indicating that there are still huge room for growth. The e-commerce in Malaysia is not as developed as those in United States or China, mainly because of the late adoption of e-commerce in Malaysia. With e-commerce penetration rate predicted to grow in the future, it is important for businesses to get more understanding about how to make customers satisfied and loyal. Hence, this study would analyze the factors influencing customer satisfaction and customer loyalty among Gen Z in online shopping. Furthermore, since there are two different ways customer can do online shopping, this study will analyze the influencing factors between online shopping platform as well as independent platform.

This study uses the ACSI model to find the factors influencing customer loyalty and customer satisfaction. The independent variables in this study are perceived value, perceived product quality, trust, customer’s expectation on service quality, while customer satisfaction is the mediating variables and customer loyalty is the dependent variables.

The result from the multiple regression analysis shows that all four independent factors have significant positive relationship with customer satisfaction on both independent seller and platform. However, perceived value and perceived product quality are two of the most influencing variables towards customer satisfaction in independent sellers, while trust and perceived product quality are the two of the most influencing variables towards customer satisfaction in online shopping platform.

In both platform and independent seller, customer satisfaction is found to have significant positive relationship with customer loyalty. In other words, all of the independent variables have significant positive influence on customer loyalty by being mediated with customer satisfaction. However, if the direct relationship is observed between independent variables and the dependent variable, not all of the four variables have relationship with customer loyalty. In independent seller, only trust is found to have significant positive relationship with customer loyalty, while it is perceived product quality and trust that have significant positive relationship with customer loyalty in online shopping platform.