LAHP-based theory of building e-commerce customer

satisfaction degree index system

Chunmei Jia1, a, Linghong Yu2,b 1Ningbo University of Technology, China

2Ningbo Nuotch Photoelectric Technology Co,.Ltd,China

ashenxian229229@hotmail.com, bjimslin@msn.com

Keywords: AHP, e-commerce, customer satisfaction

Abstract. According to the development of electronic commerce, this paper analyzed the case of

online shopping e-commerce customer satisfaction factors. Also based on AHP not only established

a customer satisfaction evaluation index system, and rank the factors that influenced the indicators,

and finally to propose a solution.

Introduction

With the advent of information age, we entered the Internet age. Traditional retail has reached the

white-hot level, so some businesses seize the network as the platform into e-commerce markets.

However, whether traditional or e-commence business, customer traffic has always been one of the

major factors which restrict the development of enterprises. Customer satisfaction, which

determines customer volume, further determines the success of enterprise. Therefore e-commerce

customer satisfaction must become a new hotspot. Current e-commerce customer satisfaction

research is still relatively limited, the main research focus on consumer psychology in e-commerce

and e-commerce customer behavior characteristics of the aspects of customer. This paper is going

to have a research on the online-shopping which contributes most to e-commence and gains high

popularity with multi-level gray comprehensive evaluation. Its significance lies in the building of

index system, which will grasp important factors of e-commerce. And this will provide

methodological guidance to attracting and retaining customers for e-commerce businesses.

The domestic and international e-commerce customer satisfaction research

Customer satisfaction status. The customer satisfaction means a feeling state which will be

formed after consumers have compared its expected experience with the perceived effect on an

organization’s all products, including services, activities, conditions and process. In foreign

countries, customer satisfaction research originated in the sixties of last century, Customer

satisfaction researches included researches which discussed the relationship between the customer

satisfaction with the business, performance, profits and expectations, such as customer satisfaction

measurement research, customer satisfaction models, etc. Also they included both qualitative and

quantitative research. In the 90's, most of the studies abroad focused on the relationship between

customer satisfaction and customer loyalty. In 2000, every nation has conducted their own pilot

survey and calculated their national customer satisfaction index, so far more than 50 countries

worldwide, such as the United States, Sweden, and Norway have set up its own customer

satisfaction index.

At present, the domestic theoretical study of customer satisfaction despite increasing, but is still

far behind compared with the level of foreign studies. However, there are also many recent

breakthroughs, Wang Jiankang who has conducted research in the aspect of customer satisfaction

management and many other scholars who have conducted research using the idea of the four maps,

fuzzy comprehensive evaluation method, AHP, etc have really made a difference. With more and

more experts joining in, our research on customer satisfaction will be fruitful in the near future.

Applied Mechanics and Materials Vol. 109 (2012) pp 641-645Online available since 2011/Oct/24 at www.scientific.net© (2012) Trans Tech Publications, Switzerlanddoi:10.4028/www.scientific.net/AMM.109.641

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Online Shopping Customer Satisfaction Status. Early in the last century, with the rise of the

Internet and the development of the network market, many foreign experts have conducted research

on online shopping. The focus mainly concentrates on online retail’s prospects and customers’

response to the situation of on-line shopping in the early 90's. The focus has tended to the factors

that influence the development of online shopping in 20th century. The achievements are widely

distributed, both qualitative and quantitative. Our researches place extra emphasis on the

relationship between the factors and customer satisfaction. Besides some which focus on the

influence customers’ main behavioral characteristics and next purchase. After all, those all give

online shopping customer satisfaction research guidance.

AHP analysis

Introduction to level analysis. Analytic hierarchy process is proposed by professor T.L.Saaty in

the early 1970's and be called AHP for short. It is a simple and practical combination of qualitative

and quantitative analysis method. How much every plan has influenced domestic agricultural

insurance target can be compared by the means of AHP so that the best managerial modes of

agricultural insurance can be obtained. A hierarchical structure Can be obtained based on the

overall goals of domestic agricultural insurance and the idea of dealing with issue according to its

hierarchy. The top hierarchy, which is the overall goal of system and be called “goal hierarchy”, has

only one element. Some intermediary hierarchies, which are the related measures to achieve overall

goal, is called “rule hierarchy”. The bottom hierarchy, which contains measures dealing with issues,

is called “scheme hierarchy”. According to the logic relationship between upper lower hierarchy,

comparing the hierarchy element in pair by the means of hierarchy or net structure, we can identify

priority and set up a ratio relationship.

The basic methods and steps of AHP. To break down into its component elements, AHP has

combined these elements in regular order of dominations relation into a hierarchical structure. And

the tootles sequencing of scheme’s relative importance can be obtained by comparing every

element’s relative importance in pair and anchor points. The process of AHP analysis, design and

decision-making can be divided into 4 steps:

Analyze every element’s relationship and build systemic hierarchical structure;

Compare the importance of one hierarchical every element as to some criteria and establish an

alternative judgment matrix;

Calculate the compared element’s relative weight to the criteria;

Calculate the synthetic weight of every hierarchical element and sort it.

The calculation, analysis and comparison of the model

Establish a judgment matrix according to hierarchy. In the form of matrices, judgment matrix

refers to the relative importance among every hierarchical element. In general, the judgment matrix

is established in order. We shall also establish all the matrices formed by one element and

neighboring relatively elements. As shown in fig 1, A hierarchy and B hierarchy can establish a

compared judgment matrix (shown in table 1), and elements in the matrix are gotten by alternative

comparing (shown in table 2).The above judgment is a subject conclusion based on experience and

comprehension degree to issues. Bj means the comparison between Bi and Bj. For A, Bi is a

relatively important data; Bij is scored by the approach of arithmetic progression.

Table 1. The spreadsheet of A-B judgment matrix.

A B1 B2 ┄ Bn

B1 B11 B12 ┄ B1n

┄ ┄ ┄ ┄ ┄

Bm Bm1 Bm2 ┄ Bmn

642 Emerging Systems for Materials, Mechanics and Manufacturing

Table 2: The comparison ratio and interpretation of hierarchy analysis

ratio Bij Implication of interpretation

1 Bi has same influence with Bj The two elements have the same

contribution as to one issue

3 Bi influences a little stronger than Bj One contributes a little more than the other

5 Bi influnces stronger than Bj One contributes more than the other

7 Bi influnces apparently stronger than Bj One contributes apparently more than the other

9 Bi influnces absolutely stronger than Bj One contributes absolutely more than the other

2,4,6,8 Bi and Bj’s influence ratio

between above adjacent hierarchy The interpolation of above adjacent hierarchy

1,1/2,…,1/9 Bi and Bj’s influence ratio The inverse of Bj

The judgment matrix meets the following condition: Bij=1/Bji>0，Bii=1.The judgment matrix of

secretion Bi-Cj and Ci-Dj can be established using the same approach. And the quantitative value is

determined by experts. The absolute data is the average of experts’ evaluation.

Establish a judgment matrix according to hierarchy. Single ordering sorts data according to

the importance of k + 1 hierarchical element to k (C hierarchical element to B or B hierarchical

element to A).The relative distance of data defines the order. And the relatively important data of Bi

for A can be represented by vector or be calculated by Square Algorithm. The vector’s represented

formula is as followed:

W=｛W1, W2, , Wm┄ ｝ (1)

Consistency checking. To insure the effectiveness of single ordering, we shall conduct

consistency checking. It is evaluated by CR here, if CR < 0.1, it meets condition.

Firstly, calculate consistency index (CI), its formula is as followed:

CI = (λmax - n)P( n - 1) (2)

In the formula, λmax refers to the largest Eigen value of the judgment matrix’s refers to order;

Second we can calculate RI on the basis of n. Combining A-B and B-C judgment, we can

calculate consistency ratio (CR), and the formula is as followed:

CR=CI/RI=∑Wci(CI)i/∑Wci(RI)i (3)

Wci refers to the weight criterion hierarchy relates to target hierarchy.

The total hierarchical sequencing. It refers to the sorting based on the importance A hierarchy

relates to the last hierarchy.

The References Section

The building of customer satisfaction’s evaluation index system. Customer satisfaction degree is

a dynamic system which includes a lot of elements. It is structured according to the problems of

CSD and the features of AHP.

Figures 1 CSD’s three-hierarchy

W

11V 12V

⋅⋅ ⋅

11nV

1U

…

21V 22V

⋅⋅ ⋅

22nV 1mV

2mV ⋅⋅ ⋅

mmnV

2U mU

Applied Mechanics and Materials Vol. 109 643

Target hierarchy：the target of CSD;

Criterion hierarchy: using the main elements which influence CSD to evaluate;

Element hierarchy: the main elements which influence CSD.

CSD index system is the core of online customer’s satisfaction. To a large degree, it tells us

whether the evaluation results are feasible and reliable or not. The criterion system designed by my

research is as followed. The measurement of information refers to many research papers at home

and abroad and is amended and integrated according to the experts’ opinions.

Table -3 Customer satisfaction evaluation index system weights

Web design

Clarity and friendliness of the page (0.27)

Simple operation (0.12)

Comprehensive search function (0.55)

System is running fast (0.06)

Product

Information

Commodity prices and discounts (0.22)

Logistics costs (0.03)

the presentation of the types of goods (0.18)

Sales of goods and assessment of the situation (0.34)

Product introduction and use (0.05)

Compare the price of the same commodity (0.06)

Commodity information which the customer can refer to (0.12)

Individual

Information

Shopping guide information (0.08)

Dynamic design of product(0.52)

Product experienced information (0.20)

Exchange platform between the customer (0.20)

Quality of

service

Response speed and attitude towards service

staff service level (0.26)

The customer experience and communication skills

Trading

standards

Payment types and process (0.08)

Privacy protection measures (0.37)

Online payment security and reliability (0.48)

System failure rate (0.07)

Logistics and

distribution

Speed and accuracy of delivery destination (0.29)

Customers can track the delivery process (0.08)

The extent of damage in the logistics process (0.63)

Commodity

Inspection

quantity of goods received is consistent with the purchase (0.15)

Description of the goods are consistent with the received (0.55)

Whether businesses solve quality problems that can be solved

(0.24)

The surprise gift (0.06)

Service

Communication channels (0.23)

The clarity of the process of returning (0.08)

The attitude of businesses dealing with the returning (0.45)

Timeliness of complaint handling (0.24)

Corporate

image

Integrity (0.63)

Brand awareness (0.09)

Corporate reputation and consistent level of performance (0.28)

644 Emerging Systems for Materials, Mechanics and Manufacturing

To take secondary index for example, using 1-9 methods of scale to take alternative comparison

for the elements in Table 1,if equally important, all take 1;if one is a little more important than the

other, the former takes 3,the latter takes 1/3;if one is apparently more important than the other, the

former takes 5,the latter takes 1/5;if one is especially more important than the other, the former

takes 7,the latter takes 1/7;if one is absolutely more important than the other, the former takes 9,the

latter takes 1/9;those intermediate these shall be valued 2,4,6,8 and their corresponding inverse, and

they establish a weight matrix A.

We can work out the Eigen value of matrix A: λmax=10.1119,and their corresponding

eigenvector are 0.07,0.15,0.04,0.18,0.58,0.28,0.63,0.32,0.10.With the normalization of eigenvector

Wi=Wi/ΣWi, (4)

we can get the standard weight:

W = (0.03, 0.06, 0.02, 0.08, 0.24, 0.12, 0.26, 0.14, 0.04) (5)

As a result of objective complexity and human’s subjectivity, every consequence can not be

exactly consistent. So we shall take consistency checking with extent to insure the rationality of the

evaluation result. If CI= (λmax-n) / (n-1) (n is the order of comparison matrix) values greater, the

more it deviates complete consistency. In the other hand, if CI values lower, the more it closes to

complete consistency.

Recommendations for improving CSD

This paper has found out that product information, logistics and distribution, trading standards and

service are the main factors which influence CSD mostly.

The enterprises which hope to keep the advantage in e-commerce condition and increase

customers’ repurchase rate shall learn how to improve CSD, So this paper put forward the following

recommendations:

Actively explore new logistics and distribution model. In the angle of logistics, because of long

delivery time, there lie a lot of complains. And long-range delivery damaged packaging, loss of

goods and north-south imbalance charges have contributed to customers’ complains too, there is no

doubt that these will lower CSD. In order to reduce the negative influence to min and find a

appropriate logistic model, enterprises shall work hard to improve logistics and distribution

according to its economic statue and logistics management level. It is quotable that alibi has already

built its own logistic system related to its own management and service.

Take efforts to explore the issue of the new e-commerce secure payment technology and model.

The Privacy security shall spare customers more information so that sellers have to reposition the

value of goods to let customers feel substantial. In result, we shall think over to cut down cost, and

on the base of low cost, we shall reward customers.

Supply abundant species and favorable price.

Establish consummate customer service system and speed up web response.

References

[1] Hu Yonghong, He Enhui. Comprehensive evaluation method [M] Beijing: Science Press, 2000

[2] Yin Yanling, zengqi, Pan Qidong. Based on artificial neural networks on Customer Satisfaction

Study [J] Value Engineering 2006-10-18

[3] Dong Simeon satisfaction index system and evaluation of e-commerce model [J]. 2007-09-25

Information Development & Economy

[4] Xudong Lei, C2C E-Commerce Customer Satisfaction Analysis [N]. Anhui University 2010-

04-0

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