2.2 Theoretical Background: Choice Theory
Determining the purchasing behavior of the consumer and the factors determining it is difficult, but there are some theories that have been used in the past ten years to determine this behavior such as; diffusion of adoption, theory of reasoned action, technology acceptance model theory of planned behavior (Ajzen, 1991) and unified theory of acceptance of technology (Ebrahimi, Basirat, et al., 2022). This research is invoked and described unified theory of acceptance and use of technology. The main independent constructs of theory are performance expectancy, effort expectancy, social influence, facilitating conditions, gender, age, experience and voluntariness of use. So, the theory is aggregation with our study.
E-commerce platforms are categorized as the Business to Consumer (B2C) model. It includes the direct electronic retail sales of products and services from business organizations to customers. Business relationships of this type are easier and more dynamic, Also, in recent years, there have been significant developments in E-commerce between businesses and their customers. Nowadays, there are many electronic stores and virtual malls on the Internet that sell several types of goods such as electronic devices, furniture, clothes, shoes and even food (What is E-Commerce? Definition and Meaning, no date; E-Commerce - Business Models, no date).
The company offers its products or services directly to the consumer through its platform. Customers can browse the platform, look at photographs of the products' photos and read products' information. Then they can choose their orders and the company delivers the goods directly to them. These platforms can either own the goods or be an intermediary between the producer and the customer (marketing - Marketing intermediaries: the distribution channel | Britannica, no date).
2.2.1 After-Sales Services
If the e-commerce platforms contain information about (ASS), it shows the extent of the company's interest in customers’ rights. Many researchers have determined the (ASS) and they have agreed on the following services: namely, maintenance services; warranty services; delivery services; installation services; and training, (Sabbagha et al., 2016). Therefore, (ASS) contribute to improving the quality of the product through the information extracted from repair operations during and outside the period of the warranty. It presents, also, a good image of the company and maintains its position in the marketplace (HUANG, LI and QI, 2021). Moreover, the investment in communication technology enhances the customer’s connection with the company and contributes to improving its marketing plan. Modern technological communication methods vary to meet the customers’ needs and interests such as fixed telephone, mobile and social networking sites (Durugbo, 2020; Camilleri, 2021).
After-Sales Services can be divided into four main sections, These are:, namely, return and exchange policies (R); warranty period and maintenance (W); delivery and training (D); and electronic communication services (E) (Microsoft, 2018). The (ASS) is one of the most essential elements that contribute to promoting the product and increasing sales. Moreover, marketing experts recommend that continuous attention is paid to developing (ASS). Consequently, major international companies are keen to provide it to their customers in order to ensure the reputation of the company's products in the marketplace (Federal Trade Commission, 2009; Sabbagha et al., 2016).
Based on the idea that customer satisfaction is our goal, many people buy a product depending on the quality of the (ASS). This service is a part of the policy of winning and retaining customers after the initial sale. This service helps to spread the product in the marketplace and, then, achieves a high percentage of profits (Liu et al., 2017). The availability on the company's platform of information about (ASS), contributes to enhancing the customer’s purchase decision.
HCD. This study’s main hypothesis is the availability of information about (ASS) on e-commerce sites has a positive impact on the customers’ purchase decisions.
2.2.2 Return and Exchange Policies.
E-commerce has become the main driver in the retail market. People are frequently buying and selling products online. There is an urgent need to know the right principles in managing online commerce. E-store owners and customers alike are most concerned with managing sales returns. (Pandey and Parmar, 2019). In 2017 in the USA, return delivery costs were 381$ billion and are expected to reach 550$ billion by 2022. E-commerce retailers accept that the normal rates of return are around 20% (Ecommerce Returns Management - Logiwa Blog, 2022).
The return process is important (R1). The findings of Khalid Saleh’s study reveal that in.(E-commerce Product Return Rate – Statistics and Trends [Infographic], no date). the number of customers, who return products, is 89% of customers who complete a purchase online. This study’s findings show that there are three reasons why goods are returned. The highest percentage of 23% is due to errors in the shipping process and the arrival of a wrong product; 22% is due to the arrival of a different product to what was offered; the lowest percentage of 20% is due to the destruction of the product .35% is the percentage of the other reasons but the author did not state what these were.
Returns are a burden on electronic stores because of their customers’ returned goods. In addition to the time wasted, all electronic stores suffer from returned goods, returned goods in the American market during 2021. Clothes were the most returned products at 88% and computers were the least by 4% (Küster, Vila and Canales, 2016; Podolyakina, 2016; Dospinescu, Dospinescu and Bostan, 2021). Nesto’s study findings differ from those of previous studies. In fact, the researcher prefers this study because the results are more realistic since it shows that the product destruction index is the highest one at 80.2% while the lowest one at 7.5% is the lack of benefit from the product.
In most countries, the law protects, consumers' rights in terms of refund and return policies. Furthermore, many components should include refund and return policy, such as, the number of days a customer can return an item. Replacement is available to customers for a limited time. In certain circumstances, the gadget will be replaced in its entirety, while in others, only the problematic element will be replaced. In the event of a customer returning a product, it is sent back to the manufacturer and the buyer is given either a credit to his/her account or a replacement product, or a cash refund (Javed et al., 2020). Different companies have different rules.
However, if a customer returns an item, the site must refund the money, the method of returning money to the customer in cash or points in the account or returning it to the bank account or to the credit card according to the method of payment.
Information on return policies and conditions (R2) must be provided. Purchases that cannot be returned should be provided with a mention of their items. The site stated that purchases that cannot be returned are assembled or disassembled open sofas, natural plants, food products, used bedding (such as bed sheets, quilts, pillows, and pillowcases), any mattress or other stuffed and upholstered products without the original tag, Fabrics sold by the meter, Products made to measure (such as custom worktops), Products that have been altered, altered or washed and Products sold as is. Customers can cancel orders (R3) at any time before they receive them. Whenever the customer receives the delivery, he can inspect (R4) the contents before signing the receipt.
Replacing the old product (R5) with a new product is in specific types, if the store has this method of replacement, with the customer bearing the difference in price, it must be written on the platform. This type of return achieves customer satisfaction for two reasons, the first is to get rid of the old product. The second is to get a new product at a lower price. Also, the company achieves customer loyalty. The following hypothesis has been determined:
H1: The Return and exchange policies have a positive influence on the customer’s purchase decision.
2.2.3 Product Warranty Period and Maintenance Provision
Product warranty (W6) is the most common type of (ASS) that every company provides for most products (Pandey and Parmar, 2019). Many researchers emphasized the importance of having a warranty on goods, which is a major motivator in consumer purchasing behavior, especially for electrical and electronic devices. The warranty document must be provided to the customer in an electronic way, and it is separate from the purchase invoice.
Today, it's difficult to envision any internet business operating without dependable, consistent technical support (W7). This phrase refers to a set of services geared at offering customers of a website or app with immediate assistance with any issues that may emerge. In most circumstances, such services should be offered 24 hours a day, 7 days a week so that visitors can ask questions and resolve important issues whenever they choose. Unfortunately, not all modern businesses recognize the importance of tech assistance, which is why so many fail to satisfy their customers. It's also critical to avoid common misunderstandings: technical support's role is to assist users with their problems, not to educate them.
Technical support representatives should have a variety of roles. The most important is to address the customer's needs in the most efficient and timely manner feasible. It's a poor habit to create a waiting line on the phone or in chat. It's also a poor habit to be harsh or irritable. As a result, being a tech support agent necessitates more than strong technical abilities and product or service knowledge; it also necessitates exceptional communication skills.
Such specialists should evaluate the things themselves to see how simple and convenient they are for the typical person in order to function more efficiently. They may be able to propose some enhancements and repairs. So, why is there such a high demand for technical assistance? By failing to meet their tasks, these specialists may either boost or harm the company's reputation. As a result, employers should be cautious and discriminating when recruiting such employees.
Trial periods (W8) are usually for digital products such as software applications The number of days allowed to sample the software is usually around 30, however it might be shorter or longer depending on the software author. You might easily run expired software by simply backdating the date on your Windows operating system in the past, but some software has become smarter to detect this and automatically ends the trial time.
One of the duties of the maintenance team is to reach the broken devices in place (W9). Because some devices can be heavy in weight or large in size, that is, the reason for bringing in broken devices from the customer's home increases consumer satisfaction and loyalty to the company.
The expected time period (W10) between the date of taking the defective commodity from the house to the date of its return, must be roughly determined, based on previous experiences in the repair process. Some goods are necessary for the consumer, such as refrigerators and air conditioners in hot areas. Determining the approximate period of time for the customer helps in determining the appropriate decision for the consumer, between repairing or buying a new device.
The warranty period (W11) for electrical tools is usually two years but for cars the warranty period ranges from three to six years (MG Motor | Saudi Arabia | Do More, no date). However, whatever the warranty period is, it must be mentioned in a prominent place on the platform.
Maintenance is a joint responsibility between the seller and the buyer, but in the case of maintenance work that requires a large period of work, the seller must provide an alternative (W12) to the product. The types of products that can be provided with an alternative can be determined, as well as the repair period for which an alternative product can be provided.
The warranty includes the repair and replacement of selected parts for the period covered by the warranty (Isaac, 2013). For example, Apple provides a two years warranty from the date of purchase (iPhone - Apple (SA), no date). Customers have the option to extend (W13) their warranty by purchasing Apple Care before the date of warranty ends. Different companies have different policies for their products and the warranty, which is the best type of (ASS), varies from one company to another depending on the product (K. Li et al., 2019). (Shokouhyar, Shokoohyar and Safari, 2020).
Maintenance team services (W14) include assistance in the installation process such as computer software, updates software, oil changes, item repair and etc. Some companies establish a special (ASS) department depending on the size of the company and the quality of the products. The (ASS) differs according to the various products (Sellitto, 2021). (ASS) support is a part of a more comprehensive service plan. This may include easily accessible solutions and forums where customers interact with other users or experts (Federal Trade Commission, 2009). Companies have provided software upgrades for a limited time, for example, Apple’s policy is to provide upgrades to iOS software for about 4–5 years following which the upgrades will stop. Customers can continue to use their devices without the updated software (M Shivalingegowda, 2013; Qalati et al., 2021). The same strategy is applied for Android software. These are some of the most common technical support services. Free maintenance at the time of warranty gives the product credibility and increases customer satisfaction. Most support pages are used as support hubs where users can either find or obtain help about a product or other type of software (Liu et al., 2017). Therefore, the following hypothesis has been determined:
H2: The Warranty period and the maintenance provision have a positive influence on the customer’s purchase decision.
2.2.4 Electronic Communications Services
The platform might use the comment discussion (E15) to generate ideas for future blog posts. You know you're writing about what your readers care about, which is something every writer strives to achieve. There are also advantages to having good talks. Many times, a misunderstanding is clarified in the comments, and other people contribute their thoughts or experiences, making it even better. Marketers can only assume what people are thinking if they don't know what they're thinking. Sure, our assumptions are based on data, but data isn't the same as actual dialogue, and it has far less influence than thoughtful feedback from a person. Comments can assist keep customers engaged and guide them along the sales funnel, leading to prospective business. It is necessary for businesses to recognize the importance of customer feedback and to embrace what is most important to them. A good connection is built on trust, which leads to loyalty.
Electronic Communications Services (E16) are the ways, shown on the home page, that the platform communicates with customers. This includes offering advice and solutions to common or more complex issues and questions, whether by phone, email, chat, forums, and social media sites that can provide immediate feedback to monitor general complaints.(Kim and Lennon, 2013; Camilleri, 2021; Dospinescu, Dospinescu and Bostan, 2021; Hassan, 2021). The feedback can be used to cut down on returns and repair costs. Also, it can be used to improve the product or adjust future sales and delivery procedures. Therefore, in electronic transactions, it is the bridge between the company and the customer. It is a very important service for consumers. The findings of those studies [33, 50]of five countries (America, Britain, Brazil, Japan, and Germany) show that 65% of customers prefer to communicate in more than one way.
Tracking item is a free real time tracking service (E17). With this tracker, you can monitor item positions, item position, movement and activity of indoor distribution stations in a real time map. Therefore, the following hypothesis has been determined:
H3. The Electronic communication services have a positive influence on the customer’s purchase decision.
2.2.5 Delivery and Training
Delivery of products to the customer can either be free or there may be a small charge. Most customers prefer home delivery (D18). The findings of the eMarketer’s study of the American market show that 78.9% of customers prefer home delivery reached while 1.4%, which is the lowest percentage, prefer delivery to the store.
The provided services depend on the nature of the product; an installation guide may be included. While some goods have very explicit and accurate installation instructions, others, such as ceiling fans, air conditioners, and washing machines, necessitate professional skills. On the other hand, cell phones do not require such expertise. Most companies offer free help while, others apply charges. The provision of installation services (D19) has a tremendous impact on the customer’s purchase decision (M Shivalingegowda, 2013; Mikova and Sokolova, 2019; Aranda et al., 2021). End-user training is another aspect of (ASS). In the case of industrial machinery and medical instruments, this is a critical component, for example, the doctor must be trained on how to use the ultrasound device. As part of its (ASS), the business provides free training.
A Purchase Order Delivery Date (D20) is a date specified in a Purchase Order and verified by the Supplier for the delivery of any Product. Determined from the e-commerce platform, based on previous experiences in delivering products, whether the products are local or international. Therefore, the following hypothesis has been determined:
H4: The Delivery and training have a positive influence on the customer’s purchase decision.
As shown in Fig. 1, the researcher designed an organizational structural model for the relationship between the four independent variables and the dependent variable.
2.2.6 Customers’ Purchase Decision
Consumer Decision Processes are the stages of decision-making that a customer goes through before, during, and after purchasing a product or service. Consumers go through five steps when evaluating a purchase, according to John Dewey: problem or need recognition, information search, and decision-making. Alternative appraisal, purchase, and post-purchase behavior (Bone and Mowen, 2010; Polo and Sese, 2016; Pelletier and Collier, 2018).
This is the first step of the Customer Decision Process, in which the consumer recognizes the problem or need and, as a result, determines what product or type of product will best meet his need. It is sometimes seen as the first and most important phase in the process, because if consumers do not identify a problem or need, they are unlikely to consider purchasing a product. The availability of information is critical in making a purchasing decision and is regarded as a mainstay(Rosenbaum and Massiah, 2007; Dholakia, Singh and Westbrook, 2010; Lu et al., 2021).
The consumer decision-making process may appear mysterious, yet when making a purchase, all consumers go through the same fundamental processes to identify what items and after-sales services are available to meet their needs. Moreover, consider your own thought process while purchasing something, especially something large like a car. Before making a purchase decision, you examine what you require, conduct research, and weigh your possibilities (Bansal and Voyer, 2000).
This research focused on the availability of after-sales services in its impact on the purchase decision within four groups, namely: return and exchange policies; warranty period and maintenance; delivery and training; and electronic communication services.