CUSTOMER SATISFACTION: THE CASE OF SHOPEE
Tran Trong Vu Long” ABSTRACT
Vietnam will become one of the highly developed e-commerce markets in the world Vietnamese consumers engage more in e-commerce market However, there have been many obstacles and problems in this type of market It is therefore important to improve outcome quality so as to improve customer satisfaction in this market This study focuses on the impact of service outcome quality on customer satisfaction by examining the case of Shopee The data was collected by online survey and pencil-paper survey with the answer of 430 respondents who has at least one time bought products in the Shopee website Based on previous researches, a model is adapted to test the impact of order condition, timeliness, and order accuracy on customer satisfaction The data was then analyzed using linear regression with the support of SPSS software The results show that the three factors of order condition, timeliness and order accuracy have a positive impact on customer satisfaction Besides, the secondary data was used to compare with Shopee’s competitors This study also proposes recommendations for Shopee to improve customer satisfaction
Keywords: Customer satisfaction, shopee, outcome quality
Trang 21 INTRODUCTION
In Vietnam, e-commerce market is considered to have potential for booming development According to the Vietnam E-commerce Association, the growth rate of e-commerce in 2017 reached over 25% and this rate might remain stable in the next three years
Moreover, according to EU-Vietnam business network, Vietnam currently has one of the fastest growing B2C E-commerce markets in the Southeast Asia, with a 32.3% compound annual growth rate in 2013- 2017, translating to a market size of EUR 5.5 billion (Research report
of E-Commerce Industry in Vietnam, 2018) Otherwise, according to
Vietnam e-commerce and Digital Economy Agency, the percentage of people who bought product from an e-commerce website at least once a year reached 67% All figures showed that the e-commerce market in Vietnam is attractive, highly potential for development
Despite its high development, the e-commerce market in Vietnam still faces obstacles Some main obstacles can be mentioned including: products have lower quality compared to what it is said in advertisements, shipping services are weak, it is very hard to order online, etc Most of those issues are related to service outcome quality of e-commerce companies
In the world, there have been a number of researches on customer
satisfaction and loyalty in online shopping or e-commerce Some researches focused heavily on analyzing the impact of website design,
the ease of use of the website on customer satisfaction (Ladhari,
2010; Udo et al., 2010) However, outcome quality in e-commerce
market has not been researched deeply by scholars
In Vietnam, in the e-commerce field, some studies researched
Trang 3(Ngo Quoc Chien et al., 2017; Ha Ngoc Thang & Nguyen Thanh
Do, 2016)
Thus, researches about outcome quality are still constrained to the context in Vietnam as well as in the world Therefore researches on the issue of outcome quality are necessary for the development of
e-commerce market
2 LITERATURE REVIEW
2.1 E-service quality and customer satisfaction E-service quality
In each organization, company, enterprise, the concept of e-service quality is defined based on the policy, culture and internal factors Zeithaml et al (2000) states that service quality on the Internet is the extent to which a website facilitates efficient and effective shopping, purchasing, and delivery of products and services This definition is supported by the concept of service quality in e-commerce proposed by Santos (2006)
In term of online consumer, e-service quality becomes a key function for consumers For online suppliers, e-service quality can create differentiation point, motivate customer use online shopping Previous studies on online shopping have shown that e-service quality impacts to customer satisfaction and indirectly increases customer loyalty (Jain & Sareen 2015; Ludin & Cheng, 2014)
Customer satisfaction
Trang 4performance In conclusion, in term of e-commerce, the relationship
between e-service quality, customer satisfaction, customer loyalty and customer perceived value is particularly important
2.2 Outcome quality
Online shopping is a remote transaction; consumers cannot consume the product immediately and must wait for product delivery
Therefore, the outcome quality should be introduced as a dimension
of the e-retailing service quality In the study of Wu (2014), outcome quality is based on what customers are left with after the quality of
services is delivered
According to Zhang (2014), outcome quality is composed mainly of delivery accuracy and product completeness Delivery accuracy refers to the exact delivery to customers Product completeness refers to high-quality, timely and qualified products received by customers
Meanwhile, Collier & Bienstock (2006) defined outcome
quality is what the customer is left with at the end of the transaction and play an incredibly influential role in the evaluation of overall service quality The study proposed that the dimension of e-service outcome quality is made up of three factors: order condition,
timeliness, and order accuracy
2.3 Impact of outcome quality on customer satisfaction
Trang 5In 2006, the study of Collier (Collier & Bienstock, 2006)
proposed a framework for how customers judge e-service quality This model included three firs-order dimensions: process, outcome, and recovery quality Outcome quality and recovery quality have significant relationship with satisfaction, but no relationship with behavioral intentions However, outcome quality will be the popular
reason to attract customers to the online retailer’s website
The results of literature analysis are summarized in Table 1
Table 1: A review of the dimensions of outcome quality in e-service quality
Dimensions Resource
¢ Collier & Bienstock (2006) Order condition |s Zhang, Huang, He & Wang (2014)
¢ Jain, Gajjar, Shah & Sadh (2017) ¢ Collier & Bienstock (2006) Timeliness ¢ Ding, Hu & Sheng (201)
¢ Jain, Gajjar, Shah & Sadh (2017) ¢ Collier & Bienstock (2006) Order accuracy | Ding, Hu & Sheng (2011)
¢ Zhang, Huang, He & Wang (2014) Source: Author's collection 3 METHODOLOGY
Based on the models mentioned before, this study proposed a model include three scales: order condition, timeliness and order accuracy Moreover, the model proposed that e-service outcome quality dimensions are linked to customer satisfaction
Explain the model
Trang 6Table 2: Description of the measure scales satisfaction service can meets the customer's expectations
No.| Scale Description Source
Refers to the product being free ° Collier & Bienstock, 2006 ¢ Ding, Hu & Sheng, 2071 from damage and decay Measure
Order ¢ Li & Reima, 2009
] condition ¬ the extent to which customers ¢ Zhang, Huang, He receive the correct order with the
m% e & Wang, 2014
initial order information Measures whether the customer
receives the service withinthe |» Collier & Bienstock, 2006 desired time: delivery time, the |» Ding, Hu & Sheng, 2011 2 |Timeliness | time itis announced will receive |» Jain, Gajjar, Shah & Sadh, 2017
the product Or refer to receiving |» Zhang, Huang, He the service within an expectation j* & Wang, 2014 of time
Measures whether the customer
has received the right product: Collier & Bienstock, 2008 the product is not damaged when
wee as ¢ Ding, Hu & Sheng, 2011 Order shipped The specifications of the
3 accuracy _| product are in accordance with e Li & Reima, 2009
¢ Zhang, Huang, He
the information on the website, 8 Wana, 2014 the relevant information is fully a provided
The scale whether the ¢ Blut, Chowdhry, Mittal & Brock, Customer | measurement of the ability of 2015
4 y + Collier & Bienstock, 2006
¢ Wu, 2014
Chang, Wang &Yang, 2009
Hypothesis of the study
e Hypothesis 1: Order condition
customer satisfaction
Source: Author's collection
has positive impact to
e Hypothesis 2: Timeliness has positive impact to customer
Trang 7e Hypothesis 3: Order accuracy a positive impact to customer satisfaction Outcome quality Order condition Timeliness Order accuracy Customer satisfaction
Figure 1: The final conceptual model
Source: Adapt from research model of Collier & Bienstock (2006)
Sample of research
In this research, the sample will be the customers, who have the experience about shopping online in the Shopee website The study mostly studies customers in big cities such as Hanoi
Data collection
Primary data
Two types of methods obtaining primary data include online questionnaire with the Google.docs tool and pencil-and paper
questionnaire
Questionnaire is made of 15 questions to investigate customers’
opinion about the situation of outcome quality in Shopee It
Trang 8questions to evaluate the scale of Timeliness and 5 questions to measure the scale of Order accuracy Three final questions will measure the customer’ perceive about service in Shopee website In addition, three demographic questions are used (age, sex, income) All items except the demographic questions are on a 5-point
Likert-type scale, anchored by 1 = totally disagree, 2 = disagree, 4
= agree and 5 = totally agree Neither agree nor disagree at the scale midpoint was rated a 3
Secondary data
e Information provided by Shopee: Author has made various reference to information in the official web site of Shopee Vietnam (https://shopee.vn), where annual _ reports,
company policies, history summaries, etc., are presented
e Other documents: Official documents, reports become sources of reference within the study
The author used the SPSS 16.0 software to proceed the data
The result will show the relationship between the e-service outcome
quality dimensions‘ and customer satisfaction
4 RESULTS AND DISCUSSIONS
4.1 Correlations analysis
Correlation analysis is performed between the dependent variable: Customers Satisfaction (CS) and the independent variables:
(1) order condition (OC), (2) timeliness(TL), (3) order accuracy (OA)
Trang 9Table 3: Pearson's correlation coefficient Factors cS oc TL OA CS ; 0 496** 1 Ịự n2“ AIS™ 1 0A 529* 534** bá ] ** Correlation is significant at the 0.01 level (2-tailed)
Source: Data processing results from SPSS 16.0 software by author
According to the results, independent variables have a quite strong linear correlation with the dependent variable, the correlation coefficients are statistically significant (Sig < 0.01) Specifically, the correlation relationship between variables is as follows:
¢ Correlation of order condition (OC) and customers satisfaction (CS) is r = 0.496 ¢ Correlation of timeliness (TL) and customers satisfaction (CS) is r = 0.432 ¢ Correlation of order accuracy (OA) and customers satisfaction (CS) is r = 0.529
Results of correlation analysis also showed that correlation coefficient between independent variables are strong It leads to we could be considered for multi-collinearity phenomenon when analyzing regression such as correlation between order accuracy (OA)
Trang 104,2 Regression analysis
To assess the relationship and evaluate the impact dimension of group factors author used the analytical method regression with the support of SPSS software Relationship between customer satisfaction and factors groups in the Outcome quality scale was as follows:
Y=a,+4,0C+a,IL + a,0A + ef
In this formula:
Y: Dependent variable represents the customer satisfaction for outcome quality of Shopee
° a), a,, a, a,: Regression coefhicients
OC, TL, OA: Independent variable respectively: group
factors of order condition, timeliness, and order accuracy ei: Random error term
Table 4: Linear regression analysis result Adjusted R Square 351 ANOVA F 78.299 Sig 000 Cootiients | SWE Beta Order condition 266 000 1.494 Timeliness 133 006 1.538 Order accuracy JlẰ 000 1.672
Source: Data processing results from SPSS 16.0 software by the author
Trang 11by independent variables In this case, three independent
variables account for 35.1% of the variance of the dependent variables
Analysis of the ANOVA showed that F test had a value of
78.299 and sig value of F test is 0.000 < 0.05 Thus, the
linear regression model is significant and meaningful Sig value of whole of three independent variables is smaller than 0.05 It means that none of independent variables
should be estimated
The magnification coefficient of variance VIF is less than 4,
indicating that these independent variables are not closely related There is no multicollinearity phenomenon
The normalized beta of these three groups is greater than zero,
indicating that the independent variables affect positively
to the customer satisfaction In detail, the order accuracy
(OA) factor had greatest influence on customer satisfaction (Beta factor = 0.314), followed by order condition (OC) and
timeliness factor with Beta factor respectively equal 0.266 and 0.133 The regression equation is as follows:
Customers satisfaction (CS) = 0.266OC + 0.133TL + 0.314OA + ei
From the above regression:
For coeflicient a, = 0.266 It means that when other factors unchanged, when order condition factor increases (decreases)
by 1 point, customers satisfaction increases (decreases) by
0.266 points
For coefficient a, = 0.133 It means that when other factors
Trang 12by 1 point, customers satisfaction increases (decreases) by 0.133 points
For coefficient a, = 0.314 It also means that when other factors unchanged, when order accuracy factor increases (decreases) by 1 point, customers satisfaction increases
(decreases) by 0.314 points
Based on the findings of this research, Shopee and other e-commerce platform should notice the following ideas
Firstly, this research figure out that order condition has a
positive impact to customer satisfaction Because, customers
have close attention to how, when, and where a package is delivered If this psychological contract is broken, then not only will quality evaluations be affected but also satisfaction judgments and ultimately future behavioral intentions Consumers who are satisfied with the delivery of the e-service experience will be likely to exhibit positive behavioral intentions Condition of the product is a crucial dimension for the customers as they expect the shipped product to be non-defective and un-damaged Since customer cannot see product availability physically, any mismatch or shortage of product may lead to delay in shipment
Secondly, the study found out that timeliness has positive impact to customer satisfaction Generally, the study result indicate that customers can easily accurate product information presentations and detailed service descriptions
and receive what he or she orders, if the delivery of the
Trang 13satisfaction If they are not shipped on time, customer finds
no value of that product Therefore, e-retailer must track the
order shipment and pass on the order status information to their customers on a timely basis
e Lastly, this research also gives a better understanding of the impact of order accuracy on customer satisfaction When order accuracy is good, customers will have higher satisfaction Which supported by previous researches such
as Collier & Bienstock (2006) and Ding et al., (2011) that
order accuracy has a positive impact to customer satisfaction
However, the result has different from Zhang et al., (2014)
results This study only refer order accuracy is elemental of product completeness dimension, which is refers to the high-
quality, timely and qualified products received by customers The author also figure out other findings based on analyzing Shopee’s current situation of outcome quality policies It focused on the reliability to gain the satisfaction, belief and loyalty from customer They had a policy to protect consumers or buyers as much as possible Firstly, Shopee has clearly policy about package product before delivered to customer This policy is a huge difference of Shopee compared with other competitors They created very detail policy about packaged and delivery, although the Beta coefficient of this factor is one of the lowest, means that customers have the lower care about this factor This policy will ensure that customer always receive their product without damage from delivery time Customer can check where their products are during the delivery time This idea help customers feel secure about their product
Trang 14Shopee confirm that the order is right with advertising in the website
and have not any damage, the payment will be released to Sellers Lastly, Shopee do not have own delivery system as well as Tiki They outsource to other companies However, they still ensure customers can check the route of product during delivery time in Shopee app or delivery unit app
5 CONCLUSION
In conclusion, by conducting this research, we have learnt
about the impact of outcome quality on customer satisfaction
in the case of Shopee Moreover, the author had chances to read
and understand more about the theories and models that related
to outcome quality and customer satisfaction Hence, the author
provided a suitable conceptual model to the case of Shopee and it led to other tasks to be done This study pointed out that order condition, timeliness and order accuracy have positive impact to customer satisfaction of Shopee Order accuracy has highest impact
to customer satisfaction, followed by order condition and timeliness Moreover, through the qualitative analysis, the research also figured
out the current situation of outcome quality of Shopee, compared this situation with other competitors Finally, the research provided some recommendations for Shopee to increase the outcome quality and gain more customer satisfaction in the near future The research still has some limitations regarding research context and samples Future research should apply the model in other contexts for more interesting findings about outcome quality and customer
Trang 15REFERENCES
EU-Vietnam Business Network (2018), Research report of
E-Commerce Industry in Vietnam
Collier, J E., & Bienstock, C C (2006), “Measuring Service Quality in E-Retailing”, Journal of Service Research, 8, 260-275
Chang, H H., Wang, Y H., & Yang, W Y (2009), “The impact of
e-service quality, customer satisfaction and loyalty on e-marketing: Moderating effect of perceived value”, Total Quality Management, 20(4), 423-443
Ding, D X., Hu, P J H., & Sheng, O R L (2011), “E-SELFQUAL: A scale for measuring online self-service quality”, Journal of Business
Research, 64, 508-515
Ladhari, R (2010), “Developing e-service quality scales: A literature teview”, Journal of Retailing and Consumer Services, 17, 464-477
Udo, G J., Bagchi, K K., & Kirs, P J (2010), “An assessment of
customers’ e-service quality perception, satisfaction and intention’, International Journal of Information Management, 30, 481-492
Lovelock, C (1991), Services Marketing, Prentice-Hall, Englewood Cliffs, NJ
Zeithaml, V & Bitner, M.J (2003), Services Marketing: Integrating Customer Focus across the Firm, 3rd ed., McGraw-Hill, New York Vargo, S.L & Lusch, R.E (2004b), “The four service marketing myths — remnants of a goods-based, manufacturing model” Journal
of Service Research, 6(4), 324-35
Edvardsson, B., Gustafsson, A., Roos, I (2005), “Service portraits in service research: A critical review”, International Journal of Service Industry Management, 16 (1), 107-121