Driving Customer Satisfaction and Stimulating Repurchase Intention: Insights from Palestinian Digital Retailers

Abstract

Recently, driven by the spread of advanced digital platforms and social media, many traditional brick-and-mortar retailers have ventured into the online marketplace to expand their sales channels. This research explores the crucial factors shaping customer satisfaction in local online retail. Furthermore, it examines how this level of satisfaction influences customers’ intentions to repurchase within the online sales channel. This study collected primary data by administering questionnaires to 410 customers. The research employs both Maximum Likelihood and Bayesian Structural Equation Modeling to measure the causal pathways of the outlined in the research model. The study’s findings indicate that information availability, perceived price, perceived quality, customer support, time-saving, and delivery services all have a positive and significant influence on customer satisfaction, with statistical significance at p < .05. Together, these exogenous variables account for 63% of the variation in customer satisfaction. Furthermore, the results demonstrate that customer satisfaction plays a significant and positive role in influencing customer repurchase intention in the online sales channel, explaining a substantial 74% of the variance in repurchase intention. The study’s findings highlight the importance for local retailers to acknowledge and prioritize the factors contributing to customer satisfaction. To achieve this, retailers must ensure that all product information, images, and terms and conditions are not only accurate but also clear and comprehensive. This way, customers have a precise understanding of what products they are purchasing, the quantity, and the details of the delivery process, including when and where they can expect to receive their orders.

Keywords

• customer satisfaction
• online order
• online sales channel
• retailer viability
• retail sector