Structural equation modeling reveals that digital transformation and customer agility reduce product return rates in e-commerce, indicating pathways to enhance customer satisfaction.
Key Points
To examine how digital transformation and customer agility decrease online product return frequency to improve customer service quality, while assessing the moderating role of market turbulence.
Formulated and tested a structural equation model grounded in dynamic capability theory using survey responses from Indian e-commerce service firms.
Assessed construct validity and model stability via exploratory factor analysis, confirmatory factor analysis, multicollinearity assessments, and endogeneity testing.
Conducted moderation analysis to determine how market turbulence alters the relationship between digital transformation and customer agility.
Digital transformation and customer agility both demonstrate a significant positive effect on lowering online product return frequency.
Reductions in product return frequency directly improve customer service quality, leading to higher customer satisfaction and repurchase intention.
Market turbulence moderates the link between digital transformation and customer agility in managing dynamic e-commerce market conditions.