TRADITIONAL TRADE VS. E-COMMERCE: DOES PRODUCT QUALITY HAVE THE SAME VALUE? A CASE STUDY OF THE CITY OF ANTANANARIVO, MADAGASCAR

  • Tsirinirina Solofomiarana Rapanoel Senior Lecturer, Qualification in Management Sciences, Faculty of Economics, Management and Sociology (EGS), University of Antananarivo, Madagascar
  • Pierre Benjamin Rakotomahenina Senior Lecturer, Management Department - Faculty of Economics, Management and Sociology- University of Antananarivo, Madagascar
  • T. Ramanankonenana Doctor in Agronomic Sciences, Qualification in Agro-Management, Higher School of Agronomic Sciences (ESSA), University of Antananarivo, Madagascar, (Consultant in Organization and Economic Studies)
Keywords: Satisfaction, Marketing, E-Commerce, Customer, Needs

Abstract

Globalization has caused a rapid evolution of commerce in all countries, including developing countries like Madagascar. This is reflected in the emergence of new, more accessible and faster distribution channels with the development of the Internet. Today, customers have a wider choice of products to satisfy their needs and personal convenience. To get closer to customers, traders resort to a range of sales channels. Online and traditional commercial transactions have distinct features which may not match up with customers’ real expectations. Indeed, social networks have grown rapidly in Madagascar since 2010 and have brought about a change that could disrupt customers’ habits. Moreover, the perception of quality might not be the same in each case. This study is intended to compare the perception of product quality from these two channels in order to assess customer satisfaction. The survey was conducted among a sample of 85 people from different socio-professional categories (SPCs), including students, employees, functionaries, unemployed, liberal professionals and stay-at-home persons. Multivariate analyses show the relationships between the expectations of each SPC and the channels used. The results highlight the mismatch between the needs and expectations of each category of customers according to the mode of business operation.

References

Beldad, Ardion, Memo de Jong, Michael Steehouder. (2010). How Shall I trust the faceless and the intangible? A literature Review on the Antecedents of Online Trust. . Computers in Human Behavior, pp 857 - 69. DOI: https://doi.org/10.1016/j.chb.2010.03.013

Berthon, Pierre R., Leyland F. Pitt, Kirk Plangger, and Daniel Shapiro. (2012). “Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy”. Business Horizons, 55, 3, 261–71. DOI: https://doi.org/10.1016/j.bushor.2012.01.007

Chang, Woojung, Jeong Eun Park, and Seoil Chaiy. (2010). “How Does CRM Technology Transform into Organizational Performance? A Mediating Role of Marketing Capability”. Journal of Business Research, 63, 8, 849–55. DOI: https://doi.org/10.1016/j.jbusres.2009.07.003

Giordano. (2006). L’approche qualité perçue. Ed Eyrolles.

Greenberg, Paul. (2010). “The Impact of CRM 2.0 on Customer Insight”. Journal of Business & Industrial Marketing, 25, 6, 410–9. DOI: https://doi.org/10.1108/08858621011066008

Gupta, Sunil and Donald R. Lehmann. (2003). Customers as Assets. Journal of Interactive Marketing, 17, 1, 9–24. DOI: https://doi.org/10.1002/dir.10045

Hansotia, Behram J. and Bradley Rukstales. (2002). Direct Marketing for Multichannel Retailers: Issues, Challenges and Solutions. Journal of Database Marketing, 9, 3, 259–66. DOI: https://doi.org/10.1057/palgrave.jdm.3240007

Jayachandran, Satish, Subhash Sharma, Peter Kaufman, and Pushkala Raman. (2005). “The Role of Relational Information Processes and Technology Use in Customer Relationship Management”. Journal of Marketing, 69, 4, 177–92. DOI: https://doi.org/10.1509/jmkg.2005.69.4.177

Lee Matthew K.O & Efraim Turban. (2001). A trust model for consumer internet shopping. International journal of electronic commerce, pp75-92.

Lenhart, Amanda, Kristen Purcell, Aaron Smith, and Kathryn Zickuhr. (2010). Social Media and Young Adults. http://www.pewinternet.org/2010/02/03/social-media-and-young-adults/ (Accessed Nov. 8th 2014).

Pfeifer, Phillip E. and Paul W. Farris. (2004). The Elasticity of Customer Value to Retention: The Duration of a Customer Relationship. Journal of Interactive Marketing 18, 2, 20–31. DOI: https://doi.org/10.1002/dir.20006

Prahalad, Coimbatore K. and Venkat Ramaswamy. (2004). “Co-creation Experiences: The Next Practice in Value Creation”. Journal of Interactive Marketing, 18, 3, 5–14. DOI: https://doi.org/10.1002/dir.20015

Rangaswamy, Arvind and Gerrit H. Van Bruggen. (2005). Opportunities and Challenges in Multichannel Marketing: An Introduction to the Special Issue. Journal of Interactive Marketing, 19, 2, 5–11. DOI: https://doi.org/10.1002/dir.20037

Reichheld, Frederick F. and W. Earl Sasser Jr. (1990). Zero Defections Quality Comes to Services. Harvard Business Review, 68, 5, 105–11.

Srinivasan, Raji and Christine Moorman. (2005). “Strategic Firm Commitments and Rewards for Customer Relationship Management in Online Retailing,”. Journal of Marketing, 69, 4, 193–200. DOI: https://doi.org/10.1509/jmkg.2005.69.4.193

Trainor. (2012). “Relating Social Media Technologies to Performance: A Capabilities-based Perspective,”. Journal of Personal Selling and Sales Management, 3, 317–31. DOI: https://doi.org/10.2753/PSS0885-3134320303

Trainor, James Mick Andzulis, Adam Rapp, and Raj Agnihotri. (2014). “Social Media Technology Usage and Customer Relationship Performance: A Capabilities-based Examination of Social CRM,”. Journal of Business Research, 67, 6, 1201–8. DOI: https://doi.org/10.1016/j.jbusres.2013.05.002

Trusov, Michael, Randolph E. Bucklin, and Koen Pauwels. (2009). “Effects of Word-of-Mouth Versus Traditional Marketing: Findings from an Internet Social Networking Site,”. Journal of Marketing, 73, 5, 90–102. DOI: https://doi.org/10.1509/jmkg.73.5.90

UNCTAD. (2017). Rapport sur l'économie de l'information. Numérisation, Commerce et développement.

Published
2020-12-21
How to Cite
Rapanoel, T. S., Rakotomahenina, P. B., & Ramanankonenana, T. (2020). TRADITIONAL TRADE VS. E-COMMERCE: DOES PRODUCT QUALITY HAVE THE SAME VALUE? A CASE STUDY OF THE CITY OF ANTANANARIVO, MADAGASCAR. International Journal of Engineering Technologies and Management Research, 7(12), 33-44. https://doi.org/10.29121/ijetmr.v7.i12.2020.829