Page 473 - MARSIUM'21 COMP OF PAPER

Muhamad Rifqi Zafran Bin Abdul Hakim (2022)
1.1 Problem Statement

The COVID-19 epidemic has drastically altered our understanding of the world and the way people think, live, and
engage in trading. Furthermore, the COVID-19 pandemic has affected the supply chains significantly as retailers continue to exit
the business cycle. Globally, consumers are beginning to view products and brands (Wright & Blackburn, 2020). Consumers have
improved their knowledge about products by reading the reviews provided by past customers. If an individual wants to buy a
product, they are no longer confined to asking friends and family because there are numerous product evaluations on the internet
(Sunitha, C. K., & Gnanadhas, 2014).

Internet shopping is increasingly gaining favour among society's members with the rise of digitisation. Consumers
making online are unable to handle the object in their hands or inspect it, thereby leading to which may lead to a lack of trust in the
item's condition (Aryani et al., 2021). Furthermore, some internet merchants employ images that differ from the actual appearance
of the item being offered (Silpa et al., 2016). Customers who have been duped are unlikely to trust Internet vendors. Besides,
internet users avoid online purchasing due to credit card theft, loss of privacy, non-delivery risk, and a lack of assurance of the
quality of products and services. These events highlight the advantages and disadvantages of online purchasing (Ibrahim et al.,
2019).

It is often challenging to determine whether consumers or online users are satisfied or dissatisfied with their purchases.
Customers are embracing the Internet as a handy medium for purchasing in order to learn about new desires and they seem to be
at ease when shopping online (Sunitha & Gnanadhas, 2018). However, the assessment of customers’ satisfaction remains a crucial
part to determine whether a company or business is successful. Customers will use social media as a platform to review or share
experiences of their purchases with everyone. Meanwhile, the company must always put up their best effort anytime they interact
with customers to preserve their image as a seller. Therefore, the present study aims to provide empirical data on the factors
influencing customers’ satisfaction. The factors investigated in this study include online shopping experiences, external incentives,
seller or customer service, security, and privacy.

1.2 Research Objectives

I. To examine the influences of online shopping experiences towards customer satisfaction.
II. To examine the influences of external incentives towards customer satisfaction.
III. To examine the influences of seller or customer services towards customer satisfaction
IV. To examine the influences of security and privacy towards customer satisfaction

2.0 LITERATURE REVIEW
2.1 Customer Satisfaction
Customer satisfaction, according to Kotler and Keller (2013), is a person's emotional response upon comparing the performance of
a purchased product with the customers’ expectations. Consumer satisfaction results from a comparison of expectations and experience.
In other words, consumers are satisfied when the delivery matches or surpasses their expectations (Khristianto, 2012). According to
Nguyen (2020), customer satisfaction is a crucial factor that can affect the company's sales. Meanwhile, Chen (2013) assumed that
customer satisfaction affects future purchase intentions and behaviour, leading to increased sales and profitability. In other words,
customer satisfaction affects the cornerstone of every successful business in the present highly competitive market, including the beauty
and cosmetics industry. This could be attributed to the fact that a high level of customer satisfaction is important in motivating
consumers to repurchase goods or use services again (Hoyer et al., 2001; Park et al., 2019).

Customer satisfaction assists companies in gaining a significant competitive edge. It determines how a consumer feels after
purchasing a product or service from a seller, as well as whether the product or service meets the customer's expectations. According
to Deng (2009), consumer satisfaction is an important part of the business since it generates revenue for the firm when the customer is
satisfied with the services provided. Consumer satisfaction, which indicates whether customers are pleased or unsatisfied with the
quality of products or services, is used to gauge customer expectations. According to Kotler and Keller (2009), satisfaction is a sensation
of liking or annoyance resulting from a comparison of the performance and the customer's expectations.

2.2 FACTORS OF CUSTOMER SATISFACTION

2.2.1 Online Shopping Experiences
The expanding importance of digital environments in retail and customer behaviour necessitates a thorough grasp of online
experiences. According to Rose (2012), online customers’ experience is a psychological condition that consists of a cognitive and
emotional sensory experience expressed as a subjective reaction to the website. Furthermore, customers who are happy with prior

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