This study investigates the impact of product quality on overseas direct purchase satisfaction. It uses a survey method to obtain data from Chinese consumers. The data were validated by exploratory and confirmatory factor analysis. The survey used a five-point Likert scale, with a convergent validity of.91 and a discriminant validity of.98.
Analysis of online overseas direct purchases in Korea
A study by the Korea Customs Service shows that over one billion dollars of overseas direct purchases are made in Korea each year. The most popular items are home appliances and electronics, apparel, home & car accessories, computers, and travel. The United States is the leading source for Korean online purchases. However, China is increasingly making its mark in the e-commerce market. Moreover, consumers have been diversifying their shopping habits. As a result, they are now purchasing from more than thirty countries.
Besides, fast delivery service is a key to attract more consumers. To address this need, Coupang, a leading online shopping mall in Korea, spent US$ 1.3 billion on its logistics infrastructure. This allowed it to provide same-day delivery. It also created a “rocket delivery” service to ensure timely delivery of goods.
The Korean consumer is increasingly becoming a “green” consumer. The emergence of a new generation of consumers who seek to purchase eco-friendly items is causing concern for the environment. In response to the environmental crisis, some people have begun to be more cautious about their spending. However, luxury goods are still popular. High-end brands have highly visible detailing and they’re seen as status symbols.
The growth of social media has helped companies find new ways to attract consumers. For example, many Korean consumers now make online grocery purchases. However, there are still some South Korean consumers who prefer offline stores for the physical experience of handling and touching products. In response, some retailers have launched online stores with same-day delivery services. This has helped retailers leverage their own capabilities and partner with logistics companies and hyperlocal delivery companies to maximize their exposure to customers.
Challenges of conducting a successful overseas direct purchase
One of the challenges of conducting a successful overseas direct purchase is managing the risk associated with international payments. African countries have diverse currencies, and if you don’t have a way to process payments in multiple currencies, you can end up incurring high transaction costs due to currency conversion. For this reason, working with a payment service provider (PSP) can help you reduce risk associated with international payments. Without the correct cross-border payment gateway, an e-commerce business might quickly go out of business because of a lack of cash flow.
Product quality has the biggest impact on satisfaction and repurchase
According to our study, product quality has the largest impact on future purchasing behaviour, which is reflected in the degree of customer satisfaction and repurchase intentions. It is important to note that this effect is not always directly proportional to customer satisfaction. The quality of the product also impacts the extent to which customers will recommend the product to others. We identified eight dimensions of product quality, and validated these in a pre-test with US consumers.
Product quality is a critical component of the purchasing experience, and is a key factor for business performance and competitive advantage. However, it can be difficult to define and measure. For instance, a car might be quality for an engineer because it meets standards, while a customer may judge the quality of a car based on the door-closing sound or engine size.