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.
Highlights
New Information and Communication Technologies (NICTs) are increasingly affecting business operations, as with the emergence of e-commerce
Customer motivations are different for these two purchasing methods
Customers evaluate product quality primarily through the transparency of the offer and the interaction that exists between the seller and the customer, which are the drivers of satisfaction with product quality
Summary
New Information and Communication Technologies (NICTs) are increasingly affecting business operations, as with the emergence of e-commerce. In Madagascar, online commerce still has a long way to go if we refer to dedicated websites. According to UNCTAD’s 2017 Information Economy Report, most African countries. Traditional Trade Vs. E-Commerce: Does Product Quality Have the Same Value? A Case Study of The City of Antananarivo, Madagascar including Madagascar are not ready for e-commerce yet. UNCTAD’s index helps countries understand their strengths and weaknesses. African countries still suffer from low Internet penetration rate, profit margins are huge and Africa can take advantage of the opportunities offered by e-commerce. UNCTAD Secretary-General Mukhista Kituya stated: “As the digital economy expands and more business activities are affected, it becomes more important for governments to consider policies that can help to harness e-commerce for sustainable development.”
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