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1.1 Background and e-commerce in China

The usage of information technologies not only renovated the provision of services but also transformed the process of service delivery. Over the past years, there has rapid increase in online shopping market which has altered the business pattern. Most of the businesses around the world has adopted electronic platform to differentiate themselves from the rivals in a view to provide superior quality service for satisfying consumers need, developing customer loyalty and creating customer value (Kassim and Asiah Abdullah, 2010). One of the key drivers of online shopping is e-service quality which consigns with the user satisfaction level.E-services have delivered key benefits to not only companies but also to customers(Carlos, José and José de la Vega, 2009). In relation to China, the online retaining has turned into an important business model or medium for many enterprises to gain market success. It has provided a new distribution channel in the online market which supports firms to trade their product through online channels to number of customers. E-service has witnessed steady and sustainable growth over the years in China (Bai, Law and Wen, 2008). The online companies are constantly enhancing their quality of online services for increasing customer satisfaction level. Online market is growing at a significant pace and it is believed that in future most firms will be using e-services for selling their different product ranges (Atkearney, 2014). On the other hand, many shopping sites concerns that they would face risk of losing consumers; therefore, they are trying to shift from inducing customers to undertake retailing website for stimulating consumers to buy products repeatedly from them (Sheng and Liu, 2010). In this current paper, the major focus is on studying the influence of e-service quality on the customers’ online repurchase intention. Therefore, the study will undertake Alibaba as a central case for examining the topic. Moreover, different models and theoretical aspects will be consider to know that how e-service quality influence the repurchase behaviour of the customers.

In China, the rate of internet users has considerably amplified to 688 million in 2015 (Statista, 2016).Destination websites and websites of firms are mostly sought by customer groups in the country to purchase any items. The intention of the consumers to use the internet for buying product is largely dependent on trustworthiness and ease of use of the shopping system (Gong, Stump and Maddox 2013). Therefore, the Chinese firms like other companies of the world provide accessibility and security for supporting consumer perceived value and enabling them to repurchase the goods/services online. There are two main business to business e-commerce modes in China, one is platform retailing and other is self-retailing model (Bao, 2015). Therefore, the behaviour of the customers differs between the two modes. According to the data from Enfodesk, online market turnover has achieved 40.40 billionRMB during fourth quarter of 2013 (Cecilia, 2014). Also, online retail market of China is largest in the world and in 2015 it generated $630 billion of sales. Moreover, e-commerce accounts for 13.5% in China of retail spending (Wang, Lau and Gong, 2016). However, Mckinsey survey pointed that the Chinese firms would have to prepare for new product categories, new customers segments and sales channels to continue gaining positive result for e-commerce. In China, the internet users have shown an explosive growth. China had 332 million online shoppers by the end of 2014 which showed a growth of 29.6 million in contrast to 2013. Also, percentage of online shoppers increased in 2014 from 48.9% to 52.5% in China (Khan, Liang and Shahzad, 2015). Therefore, it is predicted that if the e-commerce companies further enhance or improve their e-service quality then it will be increase the online shoppers’ percentage.

For online companies, online shopping is regarded as a key concern as it relates with the satisfaction of the consumers. If the consumers find that the quality of service of the online firms is inappropriate or low then would not buy the products again from that company in future rather would shifting to other enterprise that is high in service quality (Park, Lee and Han, 2007). On the other hand, the growing scale of online market has increased the competition level among the online firms. Due to this, sometimes companies compromise with the service quality delivery in order to earn high income. As a result, the customers are dissatisfied and do not will to repurchase the products which creates bad image of the company among the large number of people, thereby leading to loss to the company. However, use of e-commerce has grown in China and more numbers of people are using it for buying the products online without moving to physical stores (Liu et al.  2008). Therefore, it has given rise to high competition and the firms are moving to build sustainable online business models. Moreover, it is observed that most companies deals through e-commerce but fails in addressing the service quality level that is perceived by the customers which de-motivates them to repurchase online from the current company. Further, the online stores in China have been growing in a highly competitive market and repeatedly competition is rising over the demands and needs of the customers (Fang and Yen,2006). Therefore, there is a need to be informative about the e-service quality that can influence the consumers and provide them high online shopping experience.

1.2 Importance of paper

The study will provide a clear view of the e-service quality in context to online company, Alibaba and how e-service quality impacts the customers to repurchase the products from the same company. It will also focus on how the online company can ensure customer loyalty and satisfaction through its e-service quality.

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