The role of r logistics in customer satisfaction improvement in vietnams retail industry

Himalayan Journal of Humanities and Cultural Studies Open Access Research Article The Role of R-Logistics in Customer Satisfaction Improvement in Vietnam's Retail Industry Bogdan Nogalski*1, Nguyen Hoang Tien2, Boleslaw Rafal Kuc3, Tran Anh Dung2 and Dinh Ba Hung Anh2 University of Gdansk, Poland Van Hien University, Vietnam Academy of Social Sciences, Poland *Corresponding Author BOGDAN NOGALSKI Article History Received: 10.03.2021 Accepted: 20.04.2021 Published: 30.04.2021 Citations: Bogdan Nogalski, Nguyen Hoang Tien …& Dinh Ba Hung Anh, (2021); The Role of R-Logistics in Customer Satisfaction Improvement in Vietnam's Retail Industry; Hmlyn J Human Cul Stud, 2(6) 47-54 Abstract: R-logistics's role in retail improving customer satisfaction in Vietnam has a strong influence on corporate governance, internally, party relationships and supply chain service R- Logistics, as a business philosophy, guides companies in finding customer satisfaction with consistent profitability The trend of international integration, the region that is changing and becoming more urgent than ever is the 4th Industrial Revolution To keep up with the technology trend, countries are racing to move towards an Industry 4.0, the opportunity for regional and international integration is still in human resources The pace of technological change is increasing, requiring more emphasis on the ability of workers to continually adapt, learn new skills and access new things in a variety of contexts, especially in improving retail customer satisfaction in Vietnam Keywords: R-logistics, Vietnam, exploitation, development, customer INTRODUCTIONS Urgency and Reason to Choose the Topic Vietnam's retail market is now said to be a market with long-term development potential Supermarkets in the country were born and developed rapidly, moreover, today with market opening policies, Vietnam will open completely to the retail service market, the number of foreign supermarkets will increase appear more and more Customers are gradually shopping professionally, carefully considering their purchasing decisions and becoming more and more "fastidious" about service quality In Hanoi, Ho Chi Minh City and other cities are one of the most developed cities in the country, with a large number of workers gathering here to study and work T seaweed about 20 in recent years the retail market gradually exciting with the arrival of the giant retail sector in the country and investors around the world to Vietnam, but this market is still attractive for retailers In addition, supermarkets in Vietnam have been established for more than 10 years, but there are no specific studies on customer satisfaction From the above reasons, the author has chosen the topic " The role of R-logistics in improving customer satisfaction in the retail industry in Vietnam ", in order to soon identify satisfied and dissatisfied customers satisfaction at any point, thereby proposing solutions to bring the best service quality in the future Research Objectives and Problems to Be Solved Systematize the rationale for customer satisfaction Determining the factors affecting customer satisfaction in the retail industry in Vietnam Determine the influence of factors on customer satisfaction in Vietnam Provide implications and policies to contribute to improving customer satisfaction in the retail industry in Vietnam The role of R-logistics in improving customer satisfaction in the retail industry in Vietnam OBJECTS AND SCOPE OF RESEARCH Research object: Research on customer satisfaction for the retail industry in Vietnam 47 Bogdan Nogalski et al., J Human Cul Stud; Vol-2, Iss- (Nov-Dec, 2021): 47-54 logistics management, businesses need to effectively implement reverse logistics activities Research Scope Space: Customers in the major cities of Vietnam are aged over 16 years Contributing to improving the level of customer service Through the recall of products that not meet the needs of customers to overcome, repair, warranty, maintain will contribute to better satisfaction customer requirements, improve customer service level With a good recall policy will contribute to bring competitive advantage to the business Time: from October 2020 to November 2020 RESEARCH METHODOLOGY The research process consists of two main steps: Preliminary research was carried out by qualitative method with focus group interviews to explore the factors affecting customer satisfaction Help Save Costs, Lower Product Costs The costs associated with transporting, storing, recovering, repairing, etc recovered goods are also significant According to economists, the cost of reverse logistics activities on average accounts for about 3% 15% of total costs of enterprises However, if the reverse logistics flow is well organized and implemented, businesses will save significant other costs such as raw material costs due to being recycled, reducing packaging costs many times, recovering prices residual value of discarded products, resold products to increase sales, etc Formal research is carried out by quantitative method, survey by questionnaire, data processing by software Contribution of the Topic to Management Practice in Vietnam The role of R-logistics in improving customer satisfaction in the retail industry in Vietnam is very important for retailers to supplement and improve the existing capabilities inherent in each business unit operating in the retail industry Helping retailers besides business management to understand all the requirements of customers, thereby setting the right specific directions for their business Besides taking advantage of the golden opportunity in the retail industry, improving customer satisfaction is a very important thing that retailers in Vietnam need to improve Create a "Green" Image for the Business One of the main causes of environmental pollution is production and business activities from enterprises Businesses need to reduce their negative impact on the environment through the recovery and utilization of raw materials, waste products and packaging for recycling Customers, regulators and the public always appreciate it enterprises with environmentally friendly production and business processes Theoretical Basis Introduction to the R-Logistics Reverse logistics (logistic inverse) is the process of planning, implementation and control effectively the flow of raw materials, semi-finished products and relevant information related from the point of consumption to the point of origin For the purposes of recovery or most appropriate disposal Currently, Vietnam has very few third-party businesses specializing in recycling and waste treatment so policies to encourage all types of businesses to participate in logistics activities are essential set The Basic Process of Reverse Logistics Flow Business enterprises are increasingly interested in the value of recovery from goods returned to the place of production Recovery is an activity in the reverse logistics chain First, collection, then a combination of assessment, selection, classification, then recovery, and finally redistribution Collection takes place from the time the product is brought from the customer to the point of collection At the time of inspection, the quality of the product is assessed and a decision is made depending on the type of restoration If the quality of products is near new, they can be returned to the market immediately through reuse, redistribution If the quality is not guaranteed, the form of restoration is applied with more stages Components of reverse logistics include: (1) Components of the forward supply chain such as: Suppliers, manufacturers, wholesalers and retailers this is an important component in the distribution system goods to consumers; (2) Components Reverse logistics is simply the management of the flow of goods from the final consumer back to the place of production It is the process by which businesses recover returned goods, make use of scraps and waste products from packaging, transportation, and recycled materials obtained from final consumers Reverse logistics activities bring many benefits to the sustainable development of enterprises This is also the social responsibility that businesses need to the following: Create Transparency for the Forward Logistics Process In many stages of the forward logistics process, unsatisfactory products appear that need to be repaired, etc To ensure that these products are returned to the downstream logistics channel quickly and in a timely manner, it is necessary to develop generates a series of reverse logistics operations To be effective in forward 48 Bogdan Nogalski et al., J Human Cul Stud; Vol-2, Iss- (Nov-Dec, 2021): 47-54 The modern retail market has seen significant growth in recent years, this channel is expected to contribute 45% of total retail value by 2020 Currently, modern retailers are concentrated in big cities like Hanoi and Ho Chi Minh City However, the penetration of modern retailers is expected to continue as both foreign and domestic companies have plans to expand their reach in Vietnam specialized in the reverse supply chain such as: Transport agents, recycling specialists - this is the component that makes the difference between the forward and reverse supply chain, and also the real component perform the function of reverse logistics: Recovery and recycling; (3) In addition, there are more people who have the opportunity to participate such as charity organizations - this is a necessary and important activity for the sake of sustainable development In 2016, Vietnam only had nearly 870 supermarkets and hypermarkets, mainly in Ho Chi Minh City and Hanoi This number is forecast to exceed 1,200 by 2020 due to increased urbanization and the adoption of modern retail outlets as one-stop shops for merchandise Supermarkets and hypermarkets carry a wide range of products, with groceries, food and beverage stores making up the majority of items Imported products are increasingly popular to meet the higher demand for foreign products and the growing number of expats and tourists in Vietnam Retail Industry Market Size Vietnam's retail market is booming In 2018, Vietnam ranked eleventh (50.2 points) in the world on the Global Retail Development Index (GRDI), in the ASEAN region, Vietnam is the market with the third highest index (after Malaysia) (61.9) and Indonesia (58.7) Given its relatively small size and retail market attractiveness index of 25.1, Vietnam is considered an important market with low saturation The value of Vietnam's retail market reached EUR 104.9 billion in 2017, an increase of 9.7% year-on-year This growth has been consistent over the years and is expected to continue to grow at an accelerating pace growth of 10.3% per year, by 2020 the retail market will reach 140.7 billion EUR The number of shopping malls is growing and is forecast to reach more than 300 by 2020 Located mainly in big cities, shopping malls contain well-known international brands These malls have changed their model from department stores to shopping malls to meet the demand for a destination where consumers can not only shop but also enjoy a variety of attractions such as cinema and food court This shift in consumer behavior has left some players unable to adapt Structure of the Retail Industry in Vietnam The retail market in Vietnam consists of three main channels: traditional, modern and online In this article we only discuss the traditional retail market and the modern retail market Fresh markets (markets for fresh meat, fish, produce, and other perishable goods, to be distinguished from "dry markets" that sell durable items such as fabrics and electronics) and grocery stores remain the mainstay of sales Retail is the most popular because Vietnamese consumers buy everyday items at these stores Convenience stores and minimarts are growing rapidly, from 350 stores in 2014 to more than 2,600 stores in 2017 Often located in residential areas, convenience stores compete with traditional grocery stores Supermarkets and hypermarkets are also dominating this market by leveraging their location and expertise in the retail sector Based on the fact that the population density per store in Vietnam (69,000) is still high compared to other countries such as Thailand (37,000) and China (29,000), the convenience store market is expected to maintain double-digit growth over the next five years Similar to supermarkets, the main challenge for convenience stores is renting space However, modern retailing is gaining popularity, especially in urban cities like Hanoi or Ho Chi Minh City The value contribution of modern retail channels has been increasing in recent years and, according to the Ministry of Commerce, could account for up to 45% of the total industry value by 2020 Overview of Customer Satisfaction According to Kotler (2001), customer satisfaction is the level of a person's sensory state resulting from a comparison of the results obtained from the consumption of a product/service and the customer's expectations Customer satisfaction is seen as a comparison between expectations before and after purchasing a product or service Traditional retail markets, i.e fresh markets and grocery stores, are familiar to Vietnamese consumers' daily lives As fresh ingredients are at the core of local cuisine, Vietnamese consumers still meet their daily needs at these traditional retail locations because of convenience and competitive prices Although the brick-and-mortar retail sector has the largest market share, this channel has seen modest growth as the number of stores has remained stable over the past few years with around 8,500 fresh markets and 1.3 million grocery stores This is due to the growing presence of modern retail stores as well as changing consumer behavior 49 Bogdan Nogalski et al., J Human Cul Stud; Vol-2, Iss- (Nov-Dec, 2021): 47-54 problems arising from plastic waste, building a roadmap to form and promote sustainable, business-oriented business models circular economy in Vietnam Currently, Coca-Cola is also in the process of aiming to use rPET recycled plastic to produce 20% of Dasani water bottles in the period 2019-2020 The Role of Logistics in Enhancing R-Satisfaction of the Customer Reverse Logistics Contribute to Improving the Level of Service Customers Through the recall of products that not meet the needs of customers to overcome, repair, warranty, maintenance will contribute to better satisfy customer requirements, improve customer service level goods of enterprises Help create customer sympathy for the business Customers will be satisfied with the company's service when their products are repaired and maintained on time Therefore, a good recall policy will contribute to bringing competitive advantages to enterprises The Role of Logistics in Enhancing R-Satisfaction of Customers in the Retail Sector R-Logistics Product Packaging Customers who are already fastidious are now even more demanding, besides choosing beautiful and impressive packaging that they like, the issue of environmental protection is being put on high Therefore, businesses need to this to improve customer love and loyalty 95% of consumers prefer to return products purchased online to a specific location; 43% often use this option where possible; 37% of online shoppers and 54% of web surfers hesitate to shop online because returns and exchanges are difficult In VinMart and VinMart+ systems, consumers also notice an unprecedented transformation when green space is flooded Posters, banners with calls and messages to "live green" are everywhere in the supermarket, food trays are replaced with bagasse trays, all plastic bags, packaging, and wrapping films food is biodegradable bags…or used battery recovery bins located at the supermarket door Customers are also encouraged to protect the environment by donating 1,000 VND to the bill when they refuse to use plastic bags In addition, this supermarket system also offers a particularly attractive policy to support non-profit sales for manufacturers supplying environmentally friendly products Some Sony batteries for Dell laptops are said to overheat, which can cause fires in cars This comment prompted the two companies to recall a series of products When a customer's car caught fire because of this, Dell and Sony were forced to recall a series of notebooks using this battery On August 20, 2020, BMW Korea and six other companies will voluntarily recall more than 19,000 vehicles to fix defective parts This is the latest product recall by car manufacturers operating in Korea and vehicle importers due to problems with vehicle components Referring to Bach Hoa Xanh supermarket, it refers to the supermarket chain that is always conscious of protecting the human environment, so in recent years, the Bach Hoa Xanh supermarket packaging line has been used at this supermarket It is biodegradable packaging Realizing the pollution of each living environment by dangerous plastic packaging, the supermarket chain ordered self-destructing packaging with gravure printing technology at the company Foam Bag With the advantages of durability, toughness and impressive color, this type of packaging is very convenient for the process of shopping and transporting goods At the same time, this type of packaging over time over months, when exposed to catalysts such as sunlight and rain, it will be decomposed and will not cause pollution harmful to the environment Helps create a "Green" Image for Businesses and is Environmentally Friendly Environmental protection is always a top concern everywhere, so customers are also among them The fact that the business is environmentally friendly is not only supported and cared for by them, but also loved by new customers Dow Chemical Company is a multinational chemical corporation of the Company that is one of the three largest chemical manufacturers in the world Dow manufactures plastics, chemicals, and agricultural products In 2019, Dow partnered with the value chain to build nearly 100 kilometers of roads using recycled plastic across Asia, Europe, North America and Latin America Several projects have used Dow's ELVALOY™ RET asphalt modification technology and converted nearly 200 tons of littered or landfilled plastic waste, the equivalent of 50 million plastic bags Has been selected by FORTUNE Magazine in the list of companies "Changing the World" Defective Product Recall Line One of the classic examples of the recovery logistics approach is Samsung Corporation In 2016, the information that the Galaxy Note series phones caused battery explosions affecting consumers was covered in newspapers and online Therefore, in order to minimize risks and damage and regain customer trust, they decided to recall all 2.5 million products on the market, with a cost of damage up to millions of dollars This loss is said to be greater if Samsung does Since 2018, Coca-Cola has launched the World Zero Waste campaign on a global level to strive to collect and recycle the equivalent of 100% of the packaging Coca-Cola sells by 2030 Zero Waste to Nature - No discharge to nature is a program aimed at solving 50 Bogdan Nogalski et al., J Human Cul Stud; Vol-2, Iss- (Nov-Dec, 2021): 47-54 not carry out Logistics Reverse - Logistics recovery at that time Data Processing Methods Preliminary research was carried out by qualitative method with focus group interviews to explore the factors affecting customer satisfaction RESEARCH METHODS Methods of Investigation and Data Collection The main methods used in the thesis include: document analysis method such as: qualitative method to find the basic ideological content of the document, find out the problems related to the topic Research and identify problems to be solved Documents, articles, interviews or scientific journals related to the issue of “Role of R-logistics in improving customer satisfaction in the retail industry in Vietnam”, as the secondary data level should be a lot of u related documents v ì Therefore, we need to filter the floor to get the most accurate document to the problem And the quantitative method "finds a way to group signs and find out the cause and effect in groups of objects", based on the literature and research sources of the qualitative method so that we can highlight the important roles importance of human resource management, and answer the question of why such companies fail when it comes to human resource management in the host country, and the companies succeed in the host country Methods of collecting secondary data, this method is based on the resources available should the application of this method requires specific means to clear, consistent h burp p with research objectives, as data accuracy and topicality And the method of comparison and contrast to find the most accurate documents on the research problem as well as reliable sources of information from the internet Research Process The research procedure should follow the following steps:  Plan a research topic  Refer to the references  Assign specific tasks to each specific member  Aggregate content from group members  Finalize the research topic RESULTS OF THE STUDY Consumer Satisfaction in the Retail Industry in Vietnam Overview of Consumer Satisfaction The most comprehensive definition of satisfaction has been provided by Kotler and Keller, who define satisfaction as "the person's feeling of pleasure or disappointment resulting from comparing the performance or outcome of a product with expectations their expectations" (Kotler and Keller, 2006, p.144) “Perception is defined as a consumer's belief, regarding service received or experienced” (Rai, 2008) Satisfaction as Webster defines it as anything that gives satisfaction, pleasure, or contentment The problem from a negotiator's perspective is that satisfaction is subjective, by definition difficult to measure The value or utility received from money or services varies from person to person In addition, there are methods such as comparing and contrasting research results, comparing the terms "business" and "international business", "Vietnam retail market" and "market retail" comparing Vietnamese enterprises with foreign ones to see more clearly the role in improving customer satisfaction to offer good solutions to help foreign enterprises invest successfully public in Vietnam Because when foreign enterprises successfully invest in Vietnam, it not only boosts the economy in Vietnam but also attracts foreign investment into Vietnam, helping Vietnam move faster on the path of international integration in the future The current industrial age 4.0, creating favorable conditions for Vietnam to advance quickly on the road to becoming a developed country in the future Customer satisfaction is equal to the customer's perception of the service received And consumers will expect customer service In this way, it is easy to generalize that if the perception of the service received exceeded the expectations of the customer satisfaction the service would be positive; on the other hand, if perceived service received is less than expected level of service, it will lead to customer dissatisfaction The Level of Satisfaction of Consumers When discussing customer satisfaction levels, Williams and Buswell (2003) refer to Oliver's theory that divides potential customer satisfaction levels into three categories: First, negative non-confirmation occurs when the service level becomes worse than the customer's expectations Second, positive confirmation, is the case where the service is better than the customer expected Third, simple validation, which occurs when, the service level matches the expected service level And incorporate more methods using primary data, such as using a survey, so that businesses can share their experiences with young businesses in the field of business in the host country Or now, when the internet is very developed, we can use the online survey method, to collect the most information quickly and save money on the issue "The role of R-logistics in improving customer satisfaction" customers in the retail industry in Vietnam” Factors Affecting Customer Satisfaction Regarding the assessment of individual variables of the customer, of the store, four types of buyers namely: normal, unstable, social and occasional, were identified While out of store attributes are seen as important determinants of customer satisfaction, when 51 Bogdan Nogalski et al., J Human Cul Stud; Vol-2, Iss- (Nov-Dec, 2021): 47-54 tested for invariance between the groups of price and product-related attributes, both equally significant in all four groups recovery At the point of recovery, the product will be “Inspected” through activities such as product quality inspection, product selection and classification Status of the R-Logistics Operations in Supermarkets in Vietnam In Vietnam, reverse logistics has long been known as an official system of waste management and recovery run by the State In parallel, there are informal private collection activities to increase income and find and utilize scrap for remanufacturing Shifting to a market economy, along with the policy of socializing urban environmental work, environmental management enterprises have appeared in Vietnam The state management of the environment and waste is transferred to these enterprises, forming a waste recovery market However, at present, these enterprises can only recover and process a small part of discarded products and wastes of industries, businesses, shops and households In addition, in Vietnamese enterprises today, reverse logistics only focuses on recovering products from customers for exchange, repair, warranty or recovery of packaging for reuse Enterprises not have a deep awareness of the role of reverse logistics in creating competitive advantages and sustainable development of enterprises At the same time, the limitation of management level, the weakness of infrastructure and technology have made it difficult for Vietnamese enterprises to organize, deploy and control reverse logistics activities in a methodical and professional manner Karma The results of phase are an important and necessary basis for determining the next process for most commercial products In stage "Disposal", when a product is recalled back, businesses will have many ways to handle: (1) Direct reuse or resale; (2) product recovery (repair, renew, re-manufacture, disassemble for spare parts ); and (3) waste treatment (incineration or release into the environment) The final stage is the “Redistribution” of the recovered product This phase refers to the logistics activities to bring the product back to the market and deliver it to the customer such as stocking, selling, and shipping activities Reselling is applied when products have been in a certain market for a long time but not sell because there is no demand or demand is saturated and can be withdrawn to be sold in another market that is in demand or sold through discount stores Comparative Analysis of the Role of R-Logistics in Improved Customer Satisfaction of Supermarkets and Convenience Stores The impact of online customer return experience can be summarized as below From the above fact, the development of reverse logistics in Vietnam is very necessary for businesses, industries as well as on the national level; especially in the context that sustainable development has become the Party's line, guidelines and policies of the State and Vietnam has signed many international commitments on sustainable development 85% of customers will not shop with you again if the return process is not convenient 95% of customers will shop with you again if the return process is convenient So if in the process of the customer placing an order for a manufacturer or a distributor, if the customer feels unsatisfied or after receiving the goods Customers can return the goods or cancel the order during the delivery process without any difficulty That creates shopping convenience for customers, helping them to be proactive in shopping With increasing customer expectations and new retailers entering the market, there is a constant battle to cut costs and improve the customer experience Efficient return order processing, is a big game changer here Status of the R-Logistics in the Convenience Store in Vietnam With the manufacturer's recovery and recycling services, they will assist customers in systematically implementing accountability for their products as well as create individual recall systems The reverse logistics line is formed due to many different reasons such as: recalling unsold products for upgrading; recall defective products for repair; recovery of used product for partial dismantling and reuse; packaging recovery and reuse… To compete in today's market, reverse logistics must be viewed as an entity directly related to consistency in profit or loss On-demand planning and optimization and shipments/returns work wonders, meeting customer expectations, increasing satisfaction The Reverse Logistics Process is Carried Out in Stages The first step in the reverse logistics process is “Assembling” which includes the activities required to collect unsold products, defective products or packaging and transport them to the point of 52 Bogdan Nogalski et al., J Human Cul Stud; Vol-2, Iss- (Nov-Dec, 2021): 47-54 Conclusive Remarks CONCLUSION Today, international integration has been a major trend of the modern world, having a profound impact on international relations and the development of each country And in the process of international integration is happening faster and stronger under the influence of many factors, including the factor of R-Logistics resources in the retail industry in Vietnam If businesses develop in the retail service industry without focusing on improving customer satisfaction, it will be difficult for businesses to survive and develop sustainably In the competition for the market of domestic and foreign enterprises, if anyone does better, that business will survive and develop more and more Consumer consumption trends have been gradually changing according to the trend of the new era of Industry 4.0 In this era, those who perform well and well will surely gain the trust of customers and take the best opportunity R-Logistics capital in the retail industry is a special type of capital that is necessary as financial capital, so it needs to be exploited and used in the best way, to avoid losses and expenses, and must always be invested and added value REFERENCES Recommended and Recommendations In addition, large foreign enterprises have been promoting the role of R-Logistics in improving customer satisfaction in the retail industry in Vietnam Therefore, domestic enterprises need to boldly convert to study and develop according to 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Research Finance and Management, 2(2), 75-80 55 ... many factors, including the factor of R- Logistics resources in the retail industry in Vietnam If businesses develop in the retail service industry without focusing on improving customer satisfaction, ... the most information quickly and save money on the issue "The role of R- logistics in improving customer satisfaction" customers in the retail industry in Vietnam” Factors Affecting Customer Satisfaction. .. 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