Customer Experience in Online-Retailing – An Analysis of the Main Segments in German Online-Retailing

Abstract

In line with the continuous growth rates in online retailing, the competitive situation for retailers has intensified. In order to strengthen their market position and exploit further potential, online retailers need to create a strong customer experience. The objective of the paper is to analyze the customer experience at the largest German online retailers with the aim of finding out whether the main four segments (marketplaces, generalists, fashion, consumer electronics) differ with respect to customer experience.

This study is based on extensive qualitative (focus groups) and quantitative research (a representative sample of 1,000 German online buyers). The construct “customer experience” was conceptualized and operationalized as a multidimensional construct with five dimensions: customer’s cognitive, fulfillment-related, affective, social and sensorial experience.

The data from the quantitative survey were analyzed using exploratory and confirmatory factor analysis as well as a structural equation model. Looking at the five individual dimensions, there are significant differences between the four industry segments for four of the dimensions, namely cognitive, fulfillment-related, affective and social customer experience. With regard to the sensorial experience dimension, there are no significant differences.

Appendix: Results of the Explorative Factor Analysis

Dimension	Indicator	Items	Factor loadings (≥0.7)	Explained variance (%) (≥50%)
Cognitive	K 1	The product selection at X is optimal (not too big or too small)	0.771	55.99
	K 2	The products at X are of a good quality	0.793
	K 3	X’s products are cost effective	0.728
	K 4	The information provided on the products is sufficient	0.780
	K 5	X allows me to consider other customers’ experiences when making a purchasing decision (customer reviews/product ratings)	0.667
	Se 7	It is easy to compare products	0.745
Fulfillment	F 1	X offers suitable payment options	0.762	66.12
	F 2	X offers suitable shipping options (alternative shipping addresses, choice of delivery time)	0.809
	F 3	The shipping service at X is all around good (cost, duration, packaging)	0.804
	F 4	Returning purchased items is uncomplicated	0.840
	F 5	The process for returning items works well (receipt notification, refund)	0.847
Affective	A 1	Shopping at X is an enjoyable experience	0.877	68.18
	A 2	Shopping at X is fun	0.866
	A 3	I feel safe providing my personal information	0.780
	A 4	I trust X	0.834
	A 5	On the whole, I hold a positive opinion of X	0.819
	A 6	Shopping at X is an escape from my daily worries	0.782
	Se 3	X appeals pleasantly to my senses	0.818
Sensorial	Se 1	I think the website design is appealing	0.805	67.50
	Se 2	The structure and setup of X’s website is clear	0.871
	Se 4	The website is easy to use	0.869
	Se 5	The website functions well (Loads quickly, good search function	0.838
	Se 6	It is easy to place an order	0.820
Social	So 1	X suggests products that match my needs	0.814	70.10
	So 2	X sends me advertisements and deals that are appropriate for my situation/needs	0.825
	So 3	X makes me feel unique as a customer	0.806
	So 4	Customer service personnel are helpful and accessible	0.852
	So 5	X handles complaints well	0.871
	So 6	Customer service is easy to reach when questions or problems arise	0.854
General customer experience	CE_1	X exactly meets my needs	0.887	72.64
	CE_2	X offers everything I need	0.845
	CE_3	Shopping at X is altogether easy	0.793
	CE_4	X does everything to make life easier for me as a customer	0.880
	CE_5	As a customer, I always feel welcome at X	0.850
	CE_6	X is constantly getting better at what they do for their customers	0.855

1. Note: X stands for the researched retailer