Determinants of customer satisfaction in online shopping: The roles of price and product quality

Abstract

This study aims to examine the influence of price and product quality on customer satisfaction in online shopping among government employees in Kuala Terengganu. A quantitative research design was adopted, incorporating a structured questionnaire distributed via Google Forms. A total of 327 questionnaires were distributed, of which 133 valid responses were obtained and analysed using Statistical Package for the Social Sciences (SPSS). Pearson correlation and multiple regression analyses were employed to test the proposed hypotheses. The findings indicate that price has a significant and positive effect on customer satisfaction in online shopping, whereas product quality does not demonstrate a statistically significant effect. These results suggest that price plays a more dominant role in influencing customer satisfaction, particularly among value‑conscious consumers such as government employees. The study provides important practical implications for online retailers by highlighting the need to implement competitive pricing strategies to enhance customer satisfaction. Although product quality remains an essential factor for maintaining consumer trust, pricing strategies appear to have a stronger impact on overall satisfaction in this context. Despite its contributions, the study is limited to government employees within a single geographical area. Future research is recommended to include a broader sample across different regions and sectors, as well as to incorporate additional variables such as trust, service quality, security, and delivery performance to provide a more comprehensive understanding of online shopping satisfaction.