IADIS International Journal on WWW/Internet Vol. 5, No. 1, pp.

98-112 ISSN: 1645 7641

E-RETAILING MANAGEMENT: ANALYSING THE SPANISH E-CONSUMERS BEHAVIOUR

Eduard Cristbal Fransi Dep. Business Management. Universidad de Lleida, C/ Jaume II, 73.
25001. Lleida. cfeduard@aegern.udl.es

Frederic Marimon Viadiu Dep. Business Management. Universidad Internacional de Catalunya,

C/ Immaculada, 22. 08017. Barcelona. fmarimon@uic.es

ABSTRACT This article analyses various elements that influence the purchasing behaviour of online consumers. These elements include the aesthetic aspects of a website and the interactive processes that take place at the time of purchase. The study analyses the expectations and perceptions of a sample of Spanish online customers. On the basis of these attitudes, the sample of respondents is segmented. In addition, the main factors that determine online service satisfaction are identified. The analysis thus allows differentiation of both customers and service quality. The paper concludes with recommendations for online retailers who wish to operate a successful virtual retail outlet. KEYWORDS Usability, segmentation, Internet, e-commerce, marketing

1. INTRODUCTION
The Internet is becoming an increasingly important channel for conducting business and attracting clients. In February 2005 it was estimated that there were 817.5 million users of the Internetthat is, 12.7% of the global population (Nielsen/Netratings, 2005). In the USA alone, the Internet was responsible for USD$65 billion of commerce in 2005 (Jupiter 2005). The Internet enables businesses to reach new markets and new consumers. However, merely reaching new consumers is not enough; it is also necessary to retain them and earn their loyalty. Unfortunately, not all online companies are conscious of the importance of

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retention and loyalty. For example, a report by Healey & Baker consultancy (2000) noted that a significant proportion of attempts by consumers to purchase via the Net actually fail. In fact, according to the report, 46% of transactions are cancelled, and in some countries, such as Spain, this failure rate can be as high as 75%. In attempting to ascertain the causes of this extraordinary failure rate, it is likely that the problems might be either technical (that is, deficiencies in the vendors communication networks or the consumers connections) or personal (that is, a lack of experience in the use of Internet by consumers). However, there might well be other particular factors in each casesuch as errors in a given transaction, a lack of necessary information to complete a particular purchase, difficulties with certain websites, and so on. The retention of an online consumer is difficult and expensive (Van Riel et al., 2001). Online consumers can easily evaluate (and compare) the services offered by various providers. Numerous studies have demonstrated that the higher the quality perceived by consumers on a website, the greater the yield for the provider (Hoffman et al., 1995; Lohse and Spiller, 1998, 1999; Swaminathan et al., 1999; Tilson et al., 1998; Yang Xia et al., 2003). However, most of these studies have focused on elements of graphic design and consumer usability as perceived on various websites (Li Hairong et al., 1999; Mandel and Johnson, 1999; Menon and Khan, 1997). Other factors that might be relevant to consumer perceptions of service quality on a website have not been addressed. It is therefore necessary to complement these contributions (on attractive interfaces and usability) by investigating what other aspects of the service provided by a website determine consumer perceptions of service quality. Understanding such perceptions of website quality is essential to understanding online satisfaction, behaviour, and loyalty.

2. INTERNET BUSINESS PROCESSES

A real retail outlet (in a bricks-and-mortar shop or store) and a virtual retail outlet (in a website on the Internet) share many similarities. Indeed, consumers talk about visiting virtual stores, just as they talk about visiting real stores. However, although the two do share certain similarities, there are also clearly differences. Both the similarities and the differences are worthy of exploration. The essential tasks of a real store are: (i) informing and selling; (ii) enabling orders to be made; (iii) providing the product; and (iv) after-sales services. In essence, all of these tasks are also carried out in a virtual shop. Moreover, certain sub-functions (such as shelf displays and check-out counters) also have their equivalents in a virtual store. The first essential function noted aboveinforming and sellingis referred to as virtual merchandising in the online environment. Like traditional merchandising, virtual merchandising is concerned with the attractiveness of the selling environment, the presentation of products, the rotation of products, and so on. Looked at in this way, the equivalent of the real shop window is the design of the websitein terms of the attractiveness of its graphics and its ease of communication. In a proactive virtual store, these features are continuously being improved and updated by the incorporation of the latest in multimedia communication channels (such as enhanced audio and video facilities). However, having noted the similarities between a real store and a virtual store in this respect, it must also be acknowledged that there are certain limitations in the virtual store that 99

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prevent e-retailers using all of the traditional merchandising techniques. For example, the consumers perception of a virtual shop is essentially two-dimensional, and this restricts the presentation of certain three-dimensional incentives that might well constitute a significant motivation in making particular purchasing decisions (Rodriguez, 2000). Li Hairong et al. (1999) have noted that online stores have three main drawbacks compared with real stores. The way in which product information is presented in a virtual store often reduces the impact of a given brand. For example, the consumer might not be able to see familiar packaging, logos, and other distinguishing features. The links within a virtual store allow consumers to move directly to a specific desired productthus avoiding the distraction of other merchandising that is typical of a real shop. In these circumstances, impulse purchasing and consideration of alternative brands and products are less likely to occur. Online buyers do not experience the overall ambience of a traditional store. Such selling factors as the atmosphere of the shop, personal interaction with sales staff, and a variety of other sensory experiences cannot be utilised by online merchants to induce sales. For these reasons, some retail companies use virtual stores as a complementary service to their bricks-and-mortar stores. For example, using personal client databases, new technologies enable merchants to direct their clients to certain items that are likely to be of interest to a particular shopper. In addition, with a single click a shopper can be put in contact with a human agent who, via voice and image, can attend to the precise needs of a particular client. In effect, new technology enables an online store to undertake micro-merchandising. In this way, the webpages that constitute the Internet site of a company can become, simultaneously, a point of sale and a source of information. Used in a complementary fashion, an online shop and a physical shop can thus enhance each other through cross-promotions, logistical services, supply services, and other forms of value-added service (Steinfield and Whitten, 1999).

3. ELEMENTS OF INFLUENCE IN THE CONSUMER ONLINE BEHAVIOR

The design and the presentation of the Web site can have a great importance in the consumer online behavior since they are reference points with a great influence in the processes of purchase decision (Mandel and Jonson, 1998; Menon and Khan, 1997). Aspects like the speed of navigation, equipment, contents definition, and of course, creative aspects of the Web site, have to consider at the time of settling down in the Net (Rodriguez I., 2002). Therefore, it is not only that the online store would be attractive, but it is necessary use the design like an essential part of the global strategy of sales. The cultural and institutional element is another element to consider due to its significant influence in the Web site design (Phau and Poon, 2000). Some authors and consultants predicted a great development of the online sale at level of the final consumer, but many works are demonstrating that these expectations are not being carried out. The number of Web sites and total sales is still marginal, and partly, is caused by

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a poor navigation and design of the store (Hoffman, Novak and Chatterjee, 1995; Lohse and Spiller, 1998). A stream of investigation tries to demonstrate the effect that has the design of the Web site in the company profits. In this line, Lohse and Spiler (1998;1999), made a study in which affirmed that the Web site design affected significantly in the volume of traffic and the number of sales. They elaborated a model in which these variables were based on the characteristics of the Web site (number of links, hours of promotional ads, number of products and characteristics of navigation in the store). When we tried to establish criteria for the elaboration and design of a Web site, we must consider in the first place that this Web site is conformed by documents Web that are structured of a way more or less hierarchized (Hakman and Chung, 1998). In spite of their name the documents Web present characteristics very different from the most traditional documents in paper support, and even, of documents in electronic format but in other supports (for example in CDRom). Second, we must consider that in the Net we can find a lot of documents that contains advices and norms for the correct accomplishment of a Web site, but does not exist a list of advices universally accepted. In fact, not even a general agreement exists on the elements that must include a Web site, nor on the basic knowledge that must have a designer (Benavent, 2000). As one has already commented previously, in Internet we can find a great variety of lists of as much general recommendations as those that are centered solely some aspect of the document Web. An extract of the recommendations would be described in the following sections.

3.1. Graphic design

They are most abundant, as much in Internet as in the specialized magazines. Usually they make recommendations on aspects like the colour, the typography and the elements of navigation. These lists made recommendations about what type of images is adapted for the bottom of the Web: smooth ends, small size, complementary colors to those of the text, among others. And suggestions are even made on the size of the images that illustrate products. It is true that an image is worth more than thousand words, but a good image takes much in unloading, and a reduced image usually is of low quality even blurred. The ideal is to arrive at a balance point (Lohse and Spiller, 1998). The main problem of these norms based on advices and recommendations, is the almost total absence of objective elements that makes them trustworthy since the personal opinion and the experience of the authors are based on. In spite of everything, we can find some empirical studies that it explains as the website design can affect to the consumers perceptions and attitudes and therefore, how it influences in the purchase process (Mandel and Jonson, 1999). The investigation carried out by Mandel and Jonson (1999) showed that the environment in electronic businesses can have an important impact in the purchase decision. Although its study was only focused in the effects of the color of the bottom, the authors affirmed that the results could be extended to other elements that compose the atmosphere of the Web site like are those that they contribute to the sound or video.

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3.2. Design and usability

The Web site design must assure a high level of usability. This is a high degree of easy of use of the different elements from this document Web trying to diminish the problems of interaction between the user and the different applications from the Web site. Thus a good relation with the user will settle down, and therefore, the usability is discovered like a key element to obtain the client loyalty (Benavent, 2000). An empirical level, Tilson et al. (1998) in a study of usability carried out by IBM, showed in their results the most frequent failures in the webs, like for example, not explaining clearly as to be adding products to the shopping basket, and details 50 factors that affect the purchase decision. The five that the users mentioned as of more importance were: the security of the credit card, easy of change or the product return, the detailed description of articles, the prices, and the security of the provided personal information. An investigation made by Menon and Kahn (1997), suggests that characteristic of products, the websites and the shopping experiences that are located of a fast way can influence significantly in the satisfaction level that the consumers experiment, and therefore, to repel later in their purchase behaviour. These authors indicated two main differences between the e-commerce and the traditional one: first it is that the environment of the Website is reduced to a small screen; and second, that the distance and the time appear compressed. The narrow field of vision suggests that the consumers are centered immediately in certain products; and the condensation of time suggests them products seen before have more influence than seen products later. Thus, in the e-commerce, a new element of design that can influence in the consumer behaviour is the sequence with which are to the products (Menon and Kahn, 1997). As well, Lohse and Spiller (1999) studied, through a linear regression analisys, the design and the components of a determined type of website, verifying the existence of a positive relation between certain characteristics (like the assortment, the listing of products or the options of purchase) and volume of sales or flow of visitors. Due to the problems to obtain the numbers of sales of the companies, its study was limited several virtual shops only. However, the results are interesting and conclude that a poor navigation has an important influence in the conversion of visits in effective purchases.

3.3. Design and accessibility

When a Webpage is designed, this one must be accessible are as they are the configurations of the user (different Internet servers, operating systems, navigators, resolutions, versions, etc). This implies the application of the principle of the standardization. And not only for technical reasons, but also to allow the access to the contents of the document to handicapped people (problems with the mouse, difficulties with the monitor, accessible document by an acoustic navigator, etc.), condition indispensable for the construction of a Internet "for all". Similar problems appear with the speed of connection of the users modems. Not all the companies, nor the individuals, have the same speed of connection. A simple design is recommended (to avoid the abusive use of photos or extremely extensive pages). In spite of it, an approach of segmentation of the visitors will allow to fit the weight of the page based on the computer equipment of the users (Benavent, 2000).

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The accessibility to the information offered by a online salesman is identified like a key characteristic in a context of electronic transactions, together with the reliability, the convenience of the offered services, and the competitiveness in prices (Swaminathan et al., 1999).

4. DIFFERENT ASPECTS ABOUT ONLINE SERVICE QUALITY

With the ever-increasing use of e-commerce, there is a need to appraise service in the virtual world. A review of the literature on this subject reveals that the various studies of online service quality can be divided into two categories: (i) those that have focused on online retailing service quality; and those that have assessed website design quality. These are explored in greater detail below.

4.1 Online retailing service quality

Following their earlier research on service quality in conventional distribution channels, Zeithaml et al. (2000, 2001, 2002) and Parasuraman et al. (2005) have also conducted studies of Internet service quality. As a result of these studies, the E-S-Qual scale was developed (Parasuraman et al., 2005). Service quality was defined in this model as being the degree to which a website facilitates effective and efficient purchasing. The original E-S-Qual scale consisted of 11 dimensions (Zeithaml et al. 2001); however, later developments led to this number being reduced to seven (Parasuraman et al., 2005). Other authors have identified different sets of dimensions. According to Gefen (2002), the dimensions of e-commerce service quality can be divided into three categories: (i) tangibles; (ii) responsiveness, reliability, and assurance; and (iii) empathy. In a similar vein, Wolfinbarger and Gilly (2002) developed the .comQ scale, which consists of 14 items divided into four factors: (i) website design; (ii) reliability; (iii) privacy/security; and (iv) customer service. According to Cox and Dale (2001), some traditional dimensions of service quality (such as competence, courtesy, clarity, comfort, and friendliness) are not relevant to online sales; however, they contended that other factors (for example, accessibility, communication, credibility and appearance) are important to success in the online environment. More recently, Madu and Madu (2002) have identified 15 dimensions: (i) performance; (ii) features; (iii) structure; (iv) aesthetics; (v) reliability; (vi) storage capacity; (vii) serviceability; (viii) security and system integrity; (ix) trust; (x) responsiveness; (xi) product/service differentiation and customisation; (xii) web store policies; (xiii) reputation; (xiii) assurance; and (xiv) empathy.

4.2 Website design quality

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Several scales have been developed to assess website design quality. Yoo and Donthu (2001) developed the SITEQUAL scale to measure the perceived quality of an online shop; this consists of a nine-item scale of four dimensions: (i) ease of use; (ii) aesthetic design; (iii) processing speed; and (iv) security. Barnes and Vidgen (2002) also developed a scale of website quality, entitled the WebQual 4.0 scale, which consists of 22 items divided into five dimensions: (i) usability; (ii) design; (iii) information; (iv) trust; and (v) empathy. Liu and Arnett (2000) identified four factors to be considered in website design quality: (i) information and service quality; (ii) system use; (iii) playfulness; and (iv) system design quality. More recently, Loiacono et al. (2002) developed the WebQualTM scale, which is composed of 36 items and 12 dimensions: (i) informational fit to task; (ii) interactivity; (iii) trust; (iv) response time; (v) design appeal; (vi) intuitiveness; (vii) visual appeal; (viii) innovativeness; (ix) flow (emotional appeal); (x) integrated communication; (xi) business process; and (xii) substitutability. Despite these efforts to measure quality in Internet retail service, research in this area is still at an early phase (Van Riel et al., 2001). Several deficiencies are apparent in this early work. They can be summarised as follows. Many of the studies have focused on the technical aspects of service quality, at the expense of attention to other matterssuch as the relationship between online service quality and satisfaction, or that between online service quality and repurchasing intention. Many empirical studies have used online surveys, which have the potential to restrict the findings in various waysfor example, voluntary surveys restricted to Internet users can skew the results. Few studies of online service quality have used personal interviews (Yang and Fang, 2004). Those that have used personal interviews have suffered from a limited number of participants, which prevents the identification of reliable explanatory dimensions (Van Riel et al., 2001).

5. EMPIRICAL STUDY 5.1. Objectives and methodology

The paper presents an empirical study of a representative sample of online buyers. This study had two objectives: a) to investigate the important elements in designing a virtual store; and b) to study and classify online consumer behaviour on the basis of consumers attitudes to various elements of design. Field work for the study was carried out in Barcelona (Spain) in June 2001. Data collection was by personal interview and questionnaire. The total number of valid completed interviews was 464, representing a sample error of 4.66% for an infinite population (see Table 1).

Table 1. Methodology: Technical record.

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Population Sample Procedure Period of Study Method used to collect information

Internet users, who have visited, purchased or enjoyed the services of a virtual store, at least once during the three months immediately previous to the accomplishment of the survey. 464 valid responses with a margin of error of (k=2 and P=Q=50%) Simple random sample June, 2001

4.66 % and a confidence level of 95.5%

Personal Survey by means of semistructured questionnaire

For the purposes of the study, a user of a virtual store was taken to be a person who had visited, purchased from, or enjoyed the services offered by a virtual store at least once in the three months prior to answering the questionnaire. The profile of the average person interviewed for the study was: 61.1% per cent of whom were male, 50.1 per cent less than 30 years of age and 56.3 per cent had a university degree. In addition, 29.9 per cent is experienced Internet surfer (connected for more than three years); 43.6 per cent is user of Internet more than once a day; and 58.4 per cent is online buyer. The fact that this results, as the experience in the use of Internet, the purchase behaviour or the sociodemographic profile is so different with respect to other studies, is justified because the interviewed must have visited an online store previously to answer the survey. A questionnaire was prepared in which the main elements of a virtual shop were listed. The purpose was to ascertain the importance of these elements in the purchasing process on the Internet (see Table 1). Using this, a multivariant analysis was performed to segment the sample of respondents. Finally, the most valued characteristics of the online stores were then found through factor analysis. After some preliminary interviews and focus-group sessions, a questionnaire was designed, including a combination of open-ended questions and multiplechoice responses using 7-point Likert-type scales. The questionnaire was designed to provide ample information about respondents views, with an emphasis on: (i) their expectations of an ideal virtual store; and (ii) their perceptions of existing virtual stores.

5.2 Results
5.2.1 Consumer segmentation
A cluster analysis using the K-average method was carried out with the objective of distributing the interviewed people into homogenous segments. This was performed using the questions that related to the characteristics of an ideal online shopscored between 1 and 7 (see Table 2). The cluster analysis revealed four segments. The largest constituted 43.5% of the sample, and the smallest represented only 9.1%. The four segments shared certain characteristics in common. All respondents placed little importance on a virtual store having an area with leisure and entertainment elements. In addition, all four segments were similar with respect to global perception of the service, level of satisfaction, and future intention of purchasing.

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6.42
7 6 5 4 3 2 1 Segment 1 Segment 2 Expectations Segment 3 Perceptions Segment 4

5.61 5.07

4.79 3.94 4.24

5.31

4.95

Figure 1. Evaluation of the online store service by segments

The detailed findings for each of the segments are summarised below. Segment 1: The first segment can be characterised as consisting of young, demanding people who were worried about reliability and confidentiality. This was the largest segment (43.5% of the sample) and included those with the highest educational levels. They tended to be young people who lived in urban areas. This segment was also the only segment that contained a majority of women. With respect to online behaviour, this was a group of experienced users. Almost two-thirds (65.6%) had been using the Internet for more than three years, and an even larger proportion (68.9%) connected to the Internet one or more times per day, every day. Almost half (45.9%) of the members of this segment used the Internet as a source of information in deciding their purchases in the physical world. This segment had higher expectations about the service of an ideal virtual shop. However, this was also the group who had higher perceptions of the services already being offered. Moreover, it was the segment with the greatest difference between expectations and perceptions. In summary, this group of people had a greater desire for improvement in the service than did other segments. With respect to expectations, confidentiality was a high priority for the members of this group. This is in accordance with the findings of other studies. For example, PricewaterhouseCoopers (2001) emphasised that distrust of the payment system was a significant problem detected in e-commerce. The present study confirmed confidentiality as a very important factor in creating confidence in e-commerce. In summary, the main expectations of this segment with respect to an ideal online store were that such a store would: (i) solve consumers problems quickly and efficiently; (ii) fulfil expected delivery dates; and (iii) provide good service on the first visit. On the other hand, the less-valued items among the expectations of this segment included: (i) the entertainment elements (games, videos, music, and so on); (ii) the possibility of communicating with like-minded people; and (iii) links to related websites.

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With respect to perceptions of online stores that they had already visited, the most valued item was confirmation to customers that the purchasing process had been performed correctly. Other items that were valued were: (i) that the store projected an image of confidence and seriousness; (ii) that the website contained clear information on how to undertake shopping and purchases; and (iii) that the store provided privacy and security (as previously noted in assessments of their expectations). On the other hand, the least-valued items in perceptions of stores already visited were: (i) entertainment; (ii) the possibility of communication with other users; and (iii) links to other websites. It should be noted that these items were the same as those revealed in the analysis of expectations of an ideal store. To the people that integrate this segment we can call them: Young demanding people, and worried about the reliability. Segment 2: This segment can be characterised as consisting of young people who were worried about confidentiality and who were seeking fast and easy navigation. This was the second-largest segmentrepresenting 30% of the total sample. Most were young or middleaged males, with relatively high educational attainment, and living in an urban area. The members of this segment used the Internet with the greatest frequency of any segmentwith 73.5% connecting one or more times every day. They were also those who made the most purchases via the Internet69.2% of the segment stating that they had made such purchases. With respect to expectations, confidentiality was again the most-valued characteristic. However, unlike the other segments, the members of this segment had high expectations of being able to navigate quickly and easily. On the other hand, the least-valued items were: (i) the entertainment elements; (ii) the possibility of communicating with like-minded people; and (iii) links to related websites. It is to be noted that these least-valued items (in terms of expectations) were the same items as those mentioned by the members of other segments. With respect to perceptions, the most-valued items were: (i) confidence; (ii) seriousness of the projected image of the website; (iii) confirmation that the purchase had been performed correctly; and (iv) clarity of information. It is to be noted that this was the same pattern as found in the perceptions of Segment 1. To this segment we can put the label of: online buying young people worried about the confidentiality that looks for a fast and easy navigation Segment 3: This segment can be characterised as consisting of somewhat older Internet users who had low expectations of an ideal Internet store and who were not particularly satisfied with their purchase experiences. This group had lower educational attainment (47.2% had only primary or secondary education), were somewhat older (64% were more than 30 years of age), had a greater proportion of males (81.8%), and was the least urbanised segment. This segment was the smallest segment (representing only 9.1% of the sample). With a score of only 3.94 (on a scale of 17), the members of this segment had lower expectations about an ideal virtual store service than did the other segments. These respondents did refer to their expectation that an ideal online store should offer the possibility of payment through a variety of systems, and they did state that low prices were a key element in an ideal virtual shop. They also appreciated the graphic-design aspects of a good website, especially in terms of the display of products. Like the other segments, they placed little value on the elements of entertainment and the possibility of communicating with like-minded people. 107

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With regard to perceptions, the members of this segment were dissatisfied with the service that they had received (a score of 4.24 on a scale of 7). In particular, they placed little value on global quality, repurchase intention, and satisfaction in general. They were concerned about purchase process and placed high value on an opportunity to use a variety of payment systems. They also appreciated websites that conveyed clear advice on how to make a purchase, and clear confirmation that the purchase had been performed correctly. Despite this segment having the lowest perceptions of services actually received, it should be noted that was the only segment whose perceptions exceeded their expectations. This result might have been due to their lower levels of expectation. We can label this segment like: Adult internauts little satisfied with the purchase experience

Segment 4: This segment can be characterised as satisfied young buyers who were worried
about information. The members of this group had a history of purchasing via the Internet, but they were experimental users who connected to the Internet less frequently than other segments. They were mainly young males living in an urban setting. Approximately half of them had high educational achievement. With respect to expectations of an ideal virtual shop, this group, like the first segment, valued confirmation that a purchase has been made satisfactorily. They also appreciated confidentiality. With regard to perceptions after visiting virtual stores, they valued: (i) purchase confirmation; (ii) advice on how to make a purchase; and (iii) an attractive website design. Overall, the members of this group were more satisfied with their purchase experiences than other groups. They demonstrated high scores for global quality, repurchase intention, and general satisfaction. Finally, we can call this group: young satisfied buyers worried about the information.

5.2.2 Important factors in online quality

Having identified and characterised the four segments, a factor analysis of the main components of online service quality (using varimax rotation) was carried out. This reduced the number of variables of perception of service to a smaller number of mutually correlated components. As a result, a series of quantitative indices was obtained. The most important of these were the eigenvalues, the commonalities, and the factor matrix (see Table 2). The correlations among the variables demonstrated a degree of commonality in their explicative capacity. The matrix of correlations was submitted to two tests: Bartletts spherificity test and the Kaiser-Meyer-Olkin (KMO) index. The Bartlett statistic, which was found to have a value 2 = 5357.768 with a critical significance level of 0.000, enables rejection of the null hypothesis (of non-correlation) among the observed variables. The Bartlett test thus confirmed the existence of lineal dependence among the variables and justified continuing with the procedure. It was therefore appropriate to apply factor analysis. An exploratory factor analysis was carried out, and three factors (or components) were obtained. The Kaiser criterion was used in their elaboration in such a way as to conserve only those factors that presented eigen values of one or greater. The first three factors retained 57.1% of the initial variancewhich represents an appropriate proportion, given that each of the new components provided independent (and therefore unrepeated) information. 108

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Table 2. Rotated component matrix Factor 1 - The presentation and characteristics of the product are adequate - The pages download quickly - When they promise to do something within a certain period they do it - When a customer has a complaint it is dealt with quickly and efficiently - The contents of the web site are easy to find - The web site is regularly updated - Delivery is done within the agreed time and date - The service is carried out well first time - They give the impression of being a serious and trustworthy in their workings - They contain clear information about available stock at the purchase moment - They contain clear information about how to make a purchase - Security elements are incorporated which customers are informed about - Once the purchase is completed, confirmation is given of satisfactory completion of the purchase - Different methods of payment are permitted (credit card, C.O.D. ,etc.) - They give the possibility to change and/or postpone the purchase without compromise. - Customer information is guaranteed to be strictly confidential - They contain ample information about the characteristics of the product and the services offered - They contain clear information about the company (name, kind of company, country telephone, address etc.) - They have a leisure or entertainment element ( games, videos, interactive applications, etc) - They allow communication with other users with similar preferences or interests - They have access to other web sites which have a complementary content - The applications and elements which make up the websites are visually attractive - 24 hour customer telephone service - Different rates are offered for different kinds and periods of delivery - The online store gives clients personalized service 0.781 0.772 0.745 0.739 0.725 0.687 0.567 0.564 0.547 0.299 0.298 0.351 0.231 0.128 0.437 0.485 0.496 0.191 0.492 0.104 0.285 0.427 Factor 2 0.266 0.311 0.372 0.339 0.317 0.431 0.500 0.449 0.737 0.709 0.662 0.645 0.591 0.568 0.549 0.537 0.447 0.148 0.152 0.433 0.412 0.340 Factor 3 0.153 0.113 0.172 0.101 0.160 0.142 0.321 0.207 0.199 0.379 0.823 0.778 0.766 0.537 0.524 0.506 0.429

The factors derived from the analysis were characterised as: (i) reliability; (ii) assurance; and (iii) communication. Each was assigned an index (or score). This index was the arithmetic mean of the items that formed each factor. The variables with high saturations (which appear in italics in the rotated component matrix) corresponded to the following factors. Reliability was positively related to: (i) fulfilment of the promises; (ii) prompt attention to complaints; (iii) easy and effective navigation; (iv) fulfilment of promised delivery dates; (v) service having been carried out well in the first instance; (vi) suitable presentation of the product and its characteristics; and (vii) projection of a good image in transactions. The average score was 5.15. Assurance was defined by: (i) information regarding the purchase process; (ii) the availability of a product; (iii) the incorporation of security systems; (iv) purchase confirmation; (v) the possibility of making a payment through various means; and (vi) confidentiality of the clients data. The average score was 5.20.

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Communication was positively related to: (i) website information; (ii) leisure elements; (iii) communication with like-minded people; (iv) links to other websites; (v) individualised attention; (vi) having a 24-hour telephone contact ; and (vii) website design. The average score was 4.31.
7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00 5,15 5,20 4,31

Reliability

Assurance

Communication

Figure 2. Scorings for the three factors that define online stores quality service

As shown in the score averages, the three factors scored above four (on a scale from 1 to 7). This indicates that the level of satisfaction of customers with their online shopping experiences was good. However, the results also show that there is room for improvement, especially with respect to communication.

6. CONCLUSIONS
The present study has shown that e-commerce service quality is, in general, considered to be satisfactory by the respondents studied here. The three major factors that determine service quality obtained scores between 4.3 and 5.2 on a scale of 1 to 7. All segments of respondents had similar favourable attitudes with respect to global service perception, levels of satisfaction, and future intention to purchase. The results of the study also suggest that successful management of a virtual store differs in certain respects from that of a traditional retail outlet. Retailers operating online virtual stores need to be aware of the following important findings from the present study. In general, online buyers place little importance on the inclusion of leisure and entertainment elements. Communication with like-minded people is of little importance to online consumers. Online consumers emphasise the importance of confidentiality and reliability. Users are particularly worried about security with respect to both personal data and transactions. Confirmation that a purchase has been made correctly is highly valued, as is clear advice on how to make a purchase. A variety of payment options is desirable. A corporate image that projects seriousness instils confidence is important to online customers. 110

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It is of interest that most of these important findings relate to the inherent interactivity that characterises online commerce. Many factors are considered when e-retailers attempt to set up an effective virtual store. Such factors as new products, innovative marketing strategies, and attractive website design all play a part. However, the findings of the present study suggest that e-retailers should always bear in mind that the essence of successful e-commerce is efficient and secure interactivity with the potential consumer.

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