An Integrated Multi-Criteria Decision Analysis and Structural Equation Modeling Application for the Attributes Influencing the Customer’s Satisfaction and Trust in E-Commerce Applications

Abstract

Since the COVID-19 pandemic has forced most industries to embrace an online platform utilizing technological breakthroughs, it has significantly impacted our daily lives. Businesses that use marketplaces to sell and trade products to customers while increasing their participation through online shopping or e-commerce are among the sectors that take advantage of these situations. The current study set out to evaluate the level of customer satisfaction, trust, and service quality of the e-commerce application to enhance the system and provide a better shopping experience. Facebook, Shopee, Lazada, Shein, and TikTok were the five e-commerce platforms evaluated. The Philippines was the location of this study, and at least 200 people answered the survey, which was conducted in-person and online and consisted of 72 questionnaires. The researchers assessed twelve latent variables: perceived security, customer satisfaction, application interface, brand equity, tangibility, reliability, responsiveness, assurance, empathy, and information credibility. Structural equation modeling and multi-criteria decision analysis were used to analyze the data. The findings demonstrated that assurance, application interface, information credibility, and brand equity directly impacted service quality. Moreover, a direct and significant correlation exists between customer satisfaction and service quality. Customers’ trust is significantly impacted by their level of satisfaction and perception of security. The e-commerce apps were ranked using a multi-criteria decision analysis technique, which is the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) based on tangibility, responsiveness, assurance, reliability, and empathy. Facebook received a low rating, whereas Shopee was ranked highest. To further enhance the services offered, the lowest rated application may use the results from the combination of the TOPSIS and SEM results. Additionally, application providers, managers, and researchers examining the user–software interaction of relevant e-commerce applications might utilize the study’s results to enhance their services regarding the purchasing experience and provide a sustainable service. Finally, this study is among the first to use the structural modeling approach to evaluate customer trust and satisfaction while integrating service quality and TOPSIS.