Use of Factor Scores in Multiple Regression Model for Predicting Customer Satisfaction in Online Shopping

Abstract

Online shopping can be done from our convenient places like home, office, etc., and the product will be delivered to the respective places. There are many factors influencing online shopping. The purpose of this study is to develop a statistical model that is used to determine the factors that influence online shopping. In this study, using factor analysis five main factors have been obtained from 15 variables that influence online shopping. These five factors have significant effects on satisfaction of customers and accounted up to 56% of total variation. Using the factor scores as independent variables, multiple regression model has been developed for predicting customers satisfaction in online shopping. Customer satisfaction has been used as dependent variable in the regression model. The five main factors that contribute online shopping are: preference of consumers towards online shopping, the risk involved in purchasing products through online, time effectiveness in online shopping, difficulties faced during online shopping and getting products from trustworthy websites.