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Impact of E-Commerce and Service Management and Marketing on Business Performance

Case Study of Siemens and Habib Bank Limited (HBL)

Written by H. Siddiqu

Paper category

Master Thesis


Business Administration>Marketing & Sales




Thesis: E-commerce With the continuous development of information technology, advanced research in the field of e-commerce has become more and more attractive. Therefore, companies can now take better care of their customers by providing better solutions that have never been possible before (Wigand 1997). There are different definitions of e-commerce. According to Zwass (1996), it uses Internet-based technology for information sharing, relationship enhancement, and transaction processing. E-commerce can also be defined from different perspectives such as commerce, communications, business processes, and services. Just like from a service point of view, it is a tool that responsibly adheres to the wishes of governments, consumers, companies, institutions, and management, and speeds up service delivery by improving customer service. Most importantly, it reduces service costs and makes customers more convenient (Turban et al., 2004). According to Lin (2003), it includes the exchange of information about products and services and the use of the Internet for electronic communications. It also includes commercial transactions for ordering and payment via the Internet. E-commerce brings huge advantages to customers and suppliers. Similar benefits for suppliers include low cost, high efficiency, 24-hour service, expanding market coverage, influencing customer purchases, adjusting market demand, and improving customer service. Its benefits to customers include simplified processes, convenience, low procurement costs, instant private shopping and transactions, etc. (Kotler 2003). Headscarves and so on. (2004) also strived for the benefits of e-commerce for business organizations and customers. For commercial organizations, it first leads to cost reduction, and then customization, extended working hours, supply chain management, organizational cost reduction, improved customer relations, efficient procurement, and fast time-to-market. Customer benefits include cheaper products and services, information availability, fast delivery, participation in auctions, and reduced trouble. 1.1.2. Service management and marketing Since 2000, the number of users of Internet technology has grown tremendously because it is fast, time-saving and convenient. And service management and marketing in emerging countries and developing countries continue to grow sharply every day. The growth trend of the service industry is the reason for the development of this field in these countries. Today, most companies are becoming more and more service-oriented (Lovelock & Witz 2007). Companies not only provide goods, but also the services generated by these goods, and these companies begin to associate them as service companies (Edvardsson & Echeverri 2002). 1.1.3. Service quality Service quality is a determinant of competitiveness in establishing and maintaining strong relationships with customers (Johnston 1997). There are different views on service quality. The European view points out that service quality should include three dimensions, including functional and technical quality and corporate image (Gronroos 1983; Lethinen & Lethinen 1982). The American view points out that the functional quality dimension of service quality assessment is described by five components, including reliability, responsibility, tangibility, empathy, and assurance (Kang & James 2004). According to Parasuraman et al. (1985), service quality is the comparison between customer's service expectations and service performance. Due to the continuous increase in the quality of electronic services on the Internet, it makes companies more attractive and efficient by helping them achieve higher levels of customer retention. Therefore, electronic service quality is the degree to which a website promotes effective shopping and delivery of products and services. Service quality is still one of the important aspects of the service marketing literature (Johnston 1997). The main challenge in managing service quality is to place great emphasis on customer satisfaction. Therefore, service managers really need to understand customer expectations, because service quality revolves around exceeding and meeting customer expectations. Academia pays attention to measuring service quality in order to better understand its consequences and antecedents, in order to establish new ways to improve service quality, in order to achieve customer satisfaction and gain a competitive advantage. (Palmer & Cole 1995) 1.1.4. Service quality of e-banking The development of the Internet has completely changed the way banks conduct business with their valuable customers. Service quality is mainly used to evaluate the operation of banking services through information systems. Therefore, banks now have channels to provide customers with 24-hour service. Customers can also obtain more financial information through a wide range of services. According to previous studies, the competitive advantage of banks on the Internet is based on the services provided by e-commerce, not just the attractiveness of the Internet (Furst et al. 2002). Electronic banking uses the Internet as a transaction channel for banking services. Therefore, in this way, banks innovated their products. This includes traditional services such as deposit account opening, transfer of funds between different accounts, and new services such as electronic bill payment (Jun & Cai 2001). Customers' expectations and perceptions of Internet services will change over time. Quality remains the top priority, and the banking industry is no exception. Read Less