CUSTOMERS’ EXPERIENCES AND SATISFACTION WITH ONLINE SHOPPING IN LAGOS AND OYO STATES, NIGERIA

Abstract

Online shopping is a growing global transactional relations, which connects sellers and buyers through the aid of information and communication technology. Since about 2005, online transactions have gained popular acceptance in Nigeria. Literature indicates that the success of online shopping is due to the ease of transaction and disembodiment of face-to-face bargaining, with little attention paid to customers’ satisfaction with virtual transactions. This study, was therefore, designed to examine customers’ experiences and satisfaction with online shopping in Lagos and Oyo States. Diffusion of Innovation, Expectation Confirmation and Symbolic Interaction theories provided the framework. Research design was cross-sectional survey. Lagos (LAS) and Oyo (OYS) states were purposively selected being thehubs of online shopping activities. Leslie Kish’s (1965) sample size determination was used to select 1,399 participantscomprising 1,011 from LAS and 388 from OYS through proportionate sampling as follows: Lagos Mainland (125), Surulere (195), Lagos Island (83), Ibeju-Lekki (48), Ikorodu (208), Ojo (230) and Ikeja (122) while in OYS, Ibadan North (111), Ibadan South West (104), Ogbomoso North (109) and Atiba (64). A semi-structured questionnaire was used to elicit information on socio-demographic characteristics, customers’ experiences (CEX),satisfaction (SAT), challenges and coping strategies (CCS) adopted.Thirty-three in-depth interviews were conducted with customers in LAS (21) and OYS (12) and nine key informant interviews were conducted with operators of online retail shops to elicit information on CEX, SAT and CCS. The CEXwas measured using 3-point scale with 16 items categorised as unpleasant (≤24), moderately pleasant (25-32) and very pleasant (>33), while SAT was measured using 3-point scale with 18 items categorised as low (≤ 27), moderate (28-36) and high (>37). Quantitative data were subjected to descriptive analysis and chi-square at 5% level of significance. Qualitative data were content analysed. Respondents’ age was 27.1±1.0 years; 53.5% were males; 65.3% had tertiary education and 32.5% earned less than N18, 000 per month. Most patronised products in LAS (43.9%) and OYS (49.5%) were phones. Respondents’ pre-purchase, purchase and post purchase experiences were moderately pleasant in LAS (59.0%) and OYS (60.6%). Respondents’ SAT with technological, shopping and product factors was moderate in LAS (51.1%) and OYS (51.3%). There was a positive association between respondents’ experiences (X2 =37.19), age (X2 =17.11), marital status (X2=55.89), occupation (X2=17.62), income (X2=33.74) and levels of satisfaction.More than half, (51.3%) in LAS and 55.5% in OYS encountered challenges such as delay and non-delivery of products in LAS (51.7%) anddelivery of wrong products in OYS (49.6%). Customers in LAS who encountered challenges withdrew from patronage, whilethose in OYS discredited the service providers. Service providers experienced customers’ insincerity and multiple identity swaps by fraudulent buyers. Most customers in both locations were ignorant of the existence of regulatory bodies and did not lodge complaints. Customers’ experiences and satisfaction with online shopping in Lagos and Oyo States were similar. However, specific challenges and coping strategies differed. Customers and online service providers should be enlightened on the use of regulatory agencies to seek redress when they are dissatisfied.