The Dynamics of Service Quality on Customer Satisfaction: The Moderating Role of Post-Purchase Dissonance in E-Commerce

Abstract

The World is moving faster than ever the e-commerce markets aren’t only focusing on simple transaction completion but also managing the first class customer experience. This research paper aims to explore how the dimensions of Service Quality (Reliability, Responsiveness, Communication) affect Customer Satisfaction in the context of e-commerce services in Pakistan. The research model is based on the Expectation-Confirmation Theory (ECT) and Cognitive Dissonance Theory and suggests a complete model of mediation and moderation that involves the Customer Retention and Post-Purchase Dissonance respectively. The research design used in this study was quantitative, cross-sectional type and the sample used was 385 online consumers that had made at least one e-commerce transaction in the last six months. The conceptual model was then tested and validated empirically with the method of Partial Least Squares Structural Equation Modeling (PLS-SEM) with the software used is SMARTPLS. The findings indicate that Responsiveness and Communication have significant and positive impact on Customer Satisfaction. Interestingly, the hypothesis relating Reliability to Customer Satisfaction was rejected, which is explained in detail, as in Pakistan's highly Cash on Delivery (COD) oriented market, Reliability serves as a 'hygiene factor' and not as a customer satisfaction driver. This means that Customer Retention plays a crucial role as an intermediate step between these dimensions of service and satisfaction in the long run. Besides, the study has verified that the relationship between Customer Retention and Customer Satisfaction is not moderated by Post-Purchase Dissonance. The results offer important learning points, and these highlight the importance of proactive communication as opposed to basic reliability, which consumers expect.