FACTOR AFFECTING CUSTOMER SATISFACTION WITH E-RETAILERS’ LOGISTICS SERVICE IN VIETNAM LOGISTICS COMPANIES

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THI HONG HANH FACTOR AFFECTING CUSTOMER SATISFACTION IN VIETNAMESE LOGISTICS COMPANIES MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THI HONG HANH FACTOR AFFECTING CUSTOMER SATISFACTION WITH E-RETAILERS’ LOGISTICS SERVICE IN VIETNAM MAJOR: MASTER OF BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: Prof TANABU MONONARI Assoc Prof PHAN CHI ANH Hanoi, 2022 ACKNOWLEDGEMENT This master thesis is a fantastic opportunity for me to see how I can utilize the knowledge and abilities I gained throughout my two years at university I'd like to express my gratitude to everyone who helped me accomplish this study First of all, I wish to express my sincere gratitude to my supervisors, Prof Dr Motonari and Associate Prof Dr Phan Chi Anh who gave me valuable advice and orientation to complete my thesis This research would not have been completed without their guidance, patience, sympathy, motivation, and valuable feedback, all of which have helped me enhance my study I am grateful to Prof Dr Matsui Yoshiki, Prof Dr Kurata Hisashi and Prof Dr Sadami Suzuki for their useful guidelines and motivation during seminars and the research process I want to express my deepest thanks to Vietnam Japan University (VJU) - Vietnam National University (VNU), Hanoi, and Yokohama National University (YNU) has provided me with an excellent opportunity to expand my research knowledge and skills I am also thankful to VJU officers, YNU IPO employees, all Professors, Japanese companies and Vietnamese companies, especially Ms Huong - MBA program assistant, those who motivate, encourage and support me to overcome difficult times to accomplish the research Last but not least, I would like to express my heartfelt gratitude to my family, friends and classmates for constantly motivating me and providing me with invaluable support while I completed the challenging task of finishing the paper Thank and Best Regards, Author Nguyen Thi Hong Hanh ABSTRACT Vietnam will become one of the world's most developed e-commerce markets This type of market and e-retailers will attract more customers In this market, however, there have been numerous challenges and issues The effects of logistics service quality on customer satisfaction were investigated from the consumer's perspective in order to identify the important logistical aspects affecting consumer satisfaction The findings of research identified four factors that influence positively customer satisfaction regarding the quality of logistics services in e-commerce in the order of descending strength The findings show that delivery service quality and staff service quality have favorable effects on customer satisfaction, while communication service quality and after-sales service quality have less impact In addition, there are substantial differences in demographic factors (including gender, age, income, and academic level) regarding customer satisfaction in the context of Vietnam Key words: customer satisfaction, e-commerce, e-retailer, service quality, logistics service, demographic, Vietnam TABLE OF CONTENTS ACKNOWLEDGEMENT ABSTRACT TABLE OF CONTENTS LIST OF TABLES i LIST OF FIGURES .ii CHAPTER INTRODUCTION 1.1 Research Background .1 1.2 Research Objective 1.3 Research Scope 1.4 Structure of research CHAPTER LITERATURE REVIEW 2.1 Ecommerce and e-retailer 2.2 Service quality and logistics service quality .5 2.3 Customer satisfaction 2.4 Demographics in Vietnam and Covid pandemic .10 2.5 Concept model and research hypothesis 11 CHAPTER RESEARCH METHODOLOGY 16 3.1 Research Methodology 16 3.2 Measurement Scale 16 3.3 Sample and Data collection .18 3.3.1 Sample size and Demographic information 18 3.3.2 Data collection 18 CHAPTER DATA ANALYSIS 20 4.1 Description Analysis 20 4.2 Testing Scale Reliability 24 4.3 Correlation and Regression Analysis 25 4.4 Examining the Differences 29 CHAPTER DISCUSSION AND CONCLUSION 31 5.1 Discussion .31 5.2 Recommendation and Implication 31 5.2.1 Delivery Service Quality 31 5.2.2 Staff Service Quality 32 5.2.3 Communication Service Quality 32 5.2.4 After-sale Service Quality 33 5.2.5 Demographic 33 5.3 Conclusion .34 5.4 Limitation and future research 34 REFERENCES 36 APPENDIX .40 LIST OF TABLES Table 3.1 Measurement items for Questionnaire .16 Table 4.1 Official survey data 20 Table 4.2 Consumer shopping statistics 21 Table 4.3 The variable codes .22 Table 4.4 Descriptive statistics consists of 140 samples 22 Table 4.5 Cronbach's Alpha coefficient of the variable .24 Table 4.6 KMO and Bartlett’s Test of Independent Variables 25 Table 4.7 Correlation analysis 26 Table 4.8 Results of regression analysis 27 Table 4.9 Hypothesis-testing results 30 LIST OF FIGURES Figure 2.1: Hypothesized Model of LSQ as a Process Figure 2.2: The model of e-commerce logistics service quality and customer satisfaction 12 Figure 2.3: Research model .15 LIST OF ABBREVIATIONS AS: After-sale service quality CO: Communication service quality CSR: Customer satisfaction DE: Delivery service quality LSQ: Logistics service quality PDSQ: Physical distribution service's quality SQ: Service quality SS: Staff service quality CHAPTER INTRODUCTION 1.1 Research Background Vietnam is becoming a land of opportunity for multinational E-commerce enterprises because the internet and smartphone are growing more prevalent in its young population with high penetration rate According to the Vietnam E-commerce Association (VECOM), the growth rate of e-commerce reached around 25% in 2017 and this rate may remain unchanged in the next three years This has a direct impact on habits and behaviors of the majority of consumers, particularly those who are busy, have chosen to use the online purchasing service from e-retailers The percentage of Internet users that their shopping online is 62%, which was reported by the Ministry of Industry and Trade's Vietnam E-Commerce and Information Technology Agency (VECITA) This information demonstrated that the e-commerce market in Vietnam is attractive and has a lot of land for growth There are many studies about logistics sector There are about 425 businesses providing delivery services in Hanoi, in which, Vietnam Post Corporation (Vietnam Post) is hired by 61% of online sales units; followed by Viettel Post Company (Viettel Post) with the rate of 25% (according Vietnam logistics report 2019) Although certain successes have been achieved, the quality of logistics services at express delivery enterprises still has some shortcomings and limitations In addition, scholars have recently focused more on the evolution of e-commerce and provided numerous valuable results for society Despite its rapid growth, Vietnam's e-commerce business still confronts challenges Some main obstacles can be mentioned including: poor product quality, shipping services are weak, online payment professionalism is lacking, as is data confidentiality, hard to order online and so on The majority of these challenges have led in a great deal of difficulty for the e-commerce field and for these type companies, such as Lazada, Tiki, Shopee, Sendo , because they haven't gained a high level of client's trust and satisfaction, which has resulted in a lack of growth As a result, research into customer satisfaction with the quality of online services is critical Consumer satisfaction is a subjective assessment of any result or experience related with the buying of goods by a customer (Westbrook, 1980) Client satisfaction typically leads to good effects for e-commerce enterprises (Zeithaml, 2000), for example higher revenue, increased customer retention, and excellent word of mouth DE3 (the e-retailer that I use delivers the correct commodities) is the subsequent component, which clients have a less positive satisfaction with This issue may come from an error system, confusion/ or lack of gathered information from sellers, or a similar product was sent to the buyer without their knowledge or consent… Customers should be encouraged by both the e-commerce company and the e-retailer to thoroughly inspect the product as soon as it is received If the customer receives the wrong item, they have the right to refuse it and the e-retailers are responsible for the return fee 5.2.2 Staff Service Quality In general, the SS2 and SS4 variables fall within the range of 3.64 to 3.65, respectively SS2 (the e-retailer that I use has amiable calls) has the lowest rating Maintaining and enhancing customer satisfaction is essential to ensure that customers are satisfied when shopping online Recommendations for this issue such as: create a section on the application labeled "Calling center", so users will always have access to a way to contact support via phone; customer service hotlines and email should have more staff, especially if an actual transaction is taking place SS4 (shipper contacts customers to deliver products and solve problems related to signing to receiving) is the next element that clients are less likely to agree with In this case, there is a need for regular training in areas such as delivery, negotiation, communication, and problem solving Improve the quality of staff service or shippers by ensuring that employees are always up-to-date on the latest products and procedures 5.2.3 Communication Service Quality Customers evaluated two components of this service which are not high Those are CO2 (the e-retailer that I use rapidly to reply to consumer inquiries) with a 3.48 score and CO1 (the e-commerce platform that I use rapidly replies to consumer inquiries) with the score 3.50 Therefore, it is essential to keep up with and continue to improve communication service in order to boost levels of customer satisfaction among those who engage in online purchasing The following are some ideas that could be considered for e-commerce and e-retailers: customer pleasure and loyalty are built on a foundation of responsiveness, quick resolution of issues raised by customers, and on- 31 going attention to their needs Clients need to know how and when their requirements are being handled and the outcomes are being solved at all times 5.2.4 After-sale Service Quality There are three of the variables, AS6, AS3, and AS5, which rank in the lower group, with grade 3.34; 3.38; and 3.44, respectively AS6 (the e-retailer that I use quick responses in changing or refunding), AS5 (the e-commerce platform that I use quick responses in changing or refunding) and AS3 (the e-commerce platform that I use creates convenience in changing or refunding), all of this factor relates to the changing products or refunding if sellers not meet the needs of customers So that improved information retrieval processes and handling of customer complaints are needed by businesses in e-commerce in order to ensure customer satisfaction while ensuring that the steps of receiving applications, handling complaints, and reporting outcomes to clients must be completed within the maximum amount of time permitted Make sure that every transaction, especially any online payments, is carried out in the appropriate manner at all times If the transaction is unsuccessful, the refund must be processed as fast as possible; otherwise, the customer will have the impression that the transaction was insecure and will be disinclined to use the online purchase again 5.2.5 Demographic The findings of the research indicate that customers' levels of satisfaction with their shopping experiences in e-commerce vary depending on factors such as their gender, age, level of income, and level of education To be more specific, younger female clients under the age of 25 will love shopping and be more satisfied with their experiences Moreover, the majority of consumers who shop online are either employees or managers of companies with annual revenues of 5-15 million VND or more The following are some proposals for the demographic factor: Pay attention to the development of e-commerce applications in order to make them more robust and userfriendly, as well as to keep up with the trends in the industry and to acknowledge that younger clients enjoy using smart phones The fact that some of the items should contain the qualities that assist filter the pricing of other products will make it much easier for clients to select the product that is appropriate for their level of salary 32 Considering that female customers make up the largest client database in the ecommerce sector at the moment, businesses should put money into marketing and promotions targeted toward them in order to quickly achieve success and to raise the level of pleasure experienced by existing clients It is imperative to have a quality control team in place to ensure that valuable products, such as those selling for over 15 million VND, are not tainted by counterfeits, false advertising, or poor materials Corporate financial institutions to facilitate the execution of associated promotions, thereby satisfying the shopping requirements of clients with sufficient and mediumlevel incomes 5.3 Conclusion In the increasingly competitive industry of ecommerce and e-retailers, firms that wish to succeed must improve customer satisfaction by enhancing logistics service quality This is the key to gaining competitive advantages for businesses This study was conducted with the objective of identifying and measuring the impact of logistics service quality on customer satisfaction in Vietnam The author used quantitative methodologies and had a sample size of 140 people Scales were verified by Cronbach's alpha reliability analysis, KMO, Pearson correlation analysis, regression analysis, and the analysis of the influence of demographic factors Because of the findings of the research, the most influential factor on customer satisfaction is delivery service quality, the second most influential factor is staff service quality, followed by communication service quality and after-sales service quality The results show that all dimensions have a positive correlation with customer satisfaction Hence employee communication and after-sales measures should be a priority for e-retailers And the logistics service quality can be improved, leading to better customer satisfaction and increased competitive power Besides, the findings indicate that there is a significant difference between each demographic variable with regard to customer satisfaction in the e-commerce sector, with income being of particular importance in Vietnam 5.4 Limitation and future research The research still has some limitations in terms of service quality factors and samples, so the representativeness is not high and have not fully evaluated the service quality There is no overall picture of the e-commerce market because the study only surveyed 33 Vietnamese citizens who had purchased goods on a Vietnamese e-commerce platform Further study should find more interesting 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Dimensionalizing, Measuring and Predicting etail Quality Journal of Retailing, 79(3), 183-198 Zeithaml, V., & Bitner, M (2003) Services Marketing New York, NY: McGraw-Hill Zeithaml V., Bitner M J & Gremler D (2009) Services marketing: Integrating customer focus across the firm Irwin McGraw-Hill, Singapore Zhao, Y., & Saha, 2005 Relationship between Online Service Quality and Customer Satisfaction Zwass, 1996 Electronic commerce: structures and issues 38 APPENDIX SURVEY OF LOGISTICS SERVICE IN E-COMMERCE I am researching on logistics service in e-commerce platform such as Tiki, Lazada, Shopee, Sendo… Thank you for agreeing to participate this survey It takes only around 10 minutes completing the following questionnaire Please answer based on your opinions about logistics service in e-commerce that you are using Your personal information will be absolutely secured All the responses and information from you are only used for research purpose Have a good time!!! Have you ever purchased online? Yes No Part 1: General information Q1: Gender Male Female Q2: Age Under 25 years old From 25 to 35 years old Over 35 years old Q3: What is your education level? Below university From university to above Q4: How much is your average monthly income? Less than million VND From to 15 million VND Over 15 million VND Q5: What is your occupation? Students Employees Managers Others Q6: Which name of ecommerce company you use? 39 Tiki Lazada Shopee Sendo Others Q7: How often (frequency) you purchase online? 1-2 times a month 3-4 times a month More than times a month Rarely purchase online Q8: How long (familiar) have you purchased online? Under year From to years Over years Part 2: Main questions Please choose to what extent you agree with following statement Explanation: The author would like to give some examples about E-commerce platform, such as: Tiki, Lazada, Shopee, Sendo… And another example about “Eretailers” is the owner of shop/ or seller, such as Unilever, Tiger beer, food seller (Acecook), book seller, fashion seller… 1-Strongly disagree 2-Disagree No 3-Hesitte 4-Agree 5-Strongly agree Content Agreemen E-commerce platform that I use rapidly replies to consumer t level CO1 inquiries (Tiki, Shopee…) E-retailer that I use rapidly replies to consumer inquiries (seller, CO2 shop owner…) E-commerce platform that I use communicates online with CO3 customers E-retailer that I use communicates online with customers E-retailer that I use delivers products at the appointed time Shipper delivers products at the appointed time E-retailer that I use delivers the correct commodities Shipper delivers the correct commodities E-retailer that I use delivers intact products CO4 DE1 DE2 DE3 DE4 DE5 40 10 11 12 13 14 Shipper delivers intact products E-retailer that I use packed products properly and intact E-commerce platform that I use has changing or refunding service E-retailer that I use has changing or refunding service E-commerce platform that I use creates convenience in changing or DE6 DE7 AS1 AS2 AS3 15 16 refunding E-retailer that I use creates convenience in changing or refunding E-commerce platform that I use quick responses in changing or AS4 AS5 17 18 19 20 21 refunding E-retailer that I use quick responses in changing or refunding E-commerce platform that I use has amiable calls E-retailer that I use has amiable calls Shipper has amiable calls Shipper contacts customers to deliver products and solve problems AS6 SS1 SS2 SS3 SS4 22 23 24 25 related to signing to receiving Shippers have good delivery methods The service from e-retailer meets my needs It is possible for me to buy the product from an e-retailer Overall, I am satisfied with this online experience SS5 CSR1 CSR2 CSR3 41 KHẢO SÁT VỀ CHẤT LƯỢNG LOGISTICS CỦA CÁC ĐƠN VỊ TRỰC TUYẾN Thân chào Anh/Chị, Tơi học viên chương trình Quản trị kinh doanh, Đại học Việt Nhật – Đại học Quốc gia Hà Nội Hiện tại, thực khảo sát hài lòng khách hàng đối dịch vụ logistic đợn vị bán lẻ trực tuyến Việt Nam Tôi nghiên cứu dịch vụ logistics tảng thương mại điện tử Tiki, Lazada, Shopee, Sendo… Cảm ơn bạn đồng ý tham gia khảo sát Chỉ khoảng 10 phút để hoàn thành bảng câu hỏi sau Vui lòng trả lời dựa ý kiến bạn dịch vụ logistics thương mại điện tử mà bạn sử dụng Thông tin cá nhân bạn bảo mật tuyệt đối Tất phản hồi thông tin từ bạn sử dụng cho mục đích nghiên cứu Chúc bạn vui vẻ!!! 1.Bạn mua hàng online Có Khơng Phần 1: Thơng tin chung Câu 1: Giới tính Nam Nữ Câu 2: Tuổi Dưới 25 tuổi Từ 25 đến 35 tuổi Trên 35 tuổi Câu 3: Trình độ học vấn Dưới Đại học Từ Đại học trở lên Câu 4: Thu nhập Dưới triệu VND Từ đến 15 triệu VND Trên 15 triệu VND Câu 6: Nghề nghiệp 42 Sinh viên Nhân viên Quản lý Khác Câu 6: Tên sàn TMĐT mà bạn sử dụng Tiki Lazada Shopee Sendo Others Câu 7: Tần suất mua hàng online bạn 1-2 lần tháng 3-4 lần tháng Trên lần tháng Hiếm Câu 8: Bạn quen với việc mua hàng online Dưới năm Từ đến năm Trên năm Phần 2: Mệnh đề Anh/Chị vui lịng đọc câu cho biết mức độ hài lòng anh/chị với mệnh đề sau, theo mức độ từ đến 5: Giải thích: Thuật ngữ "Nhà cung cấp dịch vụ" đối tượng sở hữu sàn thương mại điện tử (TMĐT) - Ví dụ: Tiki, Shopee, Lazada, Sendo Và "Nhà bán lẻ trực tuyến" chủ cửa hàng online (chủ shop) người bán hàng 12345ST T Hồn tồn khơng đồng ý Khơng đồng ý Lưỡng lự Đồng ý Hồn tồn đồng ý Mệnh đề Nhà cung cấp dịch vụ (Tiki, Shopee ) mà sử dụng phản hồi Thang mức độ CO1 43 nhanh chóng câu hỏi, yêu cầu khách hàng Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng phản hồi nhanh CO2 câu hỏi khách hàng Nhà cung cấp dịch vụ (Tiki, Shopee ) mà tơi sử dụng có phương CO3 thức giao tiếp trực tuyến với khách hàng Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng có phương thức CO4 giao tiếp trực tuyến với khách hàng Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng giao hàng DE1 thời gian định Người giao hàng giao sản phẩm thời gian định Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng phân phối DE2 DE3 mặt hàng Người giao hàng phân phối mặt hàng Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng giao sản phẩm DE4 DE5 10 11 nguyên vẹn Người giao hàng giao sản phẩm nguyên vẹn Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng đóng gói sản phẩm DE6 DE7 12 cách nguyên vẹn Nhà cung cấp dịch vụ (Tiki, Shopee ) mà tơi sử dụng có dịch vụ AS1 13 đổi trả hàng hoàn lại tiền Nhà bán lẻ trực tuyến (chủ shop) mà tơi sử dụng có dịch vụ đổi trả AS2 14 hàng hoàn lại tiền Nhà cung cấp dịch vụ (Tiki, Shopee ) mà sử dụng tạo thuận AS3 15 tiện việc đổi trả hàng hoàn lại tiền Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng tạo thuận tiện AS4 16 việc đổi trả hàng hoàn lại tiền Nhà cung cấp dịch vụ (Tiki, Shopee ) mà sử dụng phản hồi AS5 17 nhanh việc đổi trả hàng hoàn lại tiền Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng phản hồi nhanh AS6 18 việc đổi trả hàng hoàn lại tiền Nhà cung cấp dịch vụ (Tiki, Shopee ) mà tơi sử dụng có SS1 19 gọi hòa nhã Nhà bán lẻ trực tuyến (chủ shop) mà tơi sử dụng có gọi SS2 20 21 hịa nhã Người giao hàng có gọi hòa nhã Người giao hàng liên hệ khách hàng để giao sản phẩm giải SS3 SS4 22 23 vấn đề liên quan tới việc ký nhận hàng hóa Người giao hàng có cách thức giao hàng tốt Dịch vụ từ nhà bán lẻ trực tuyến (chủ shop) đáp ứng nhu cầu SS5 CSR1 44 24 25 tơi Tơi mua sản phẩm từ nhà bán lẻ trực tuyến (chủ shop) Nhìn chung, tơi hài lòng với trải nghiệm mua hàng trực tuyến CSR2 CSR3 45 .. .VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THI HONG HANH FACTOR AFFECTING CUSTOMER SATISFACTION WITH E-RETAILERS’ LOGISTICS SERVICE IN VIETNAM MAJOR: MASTER OF BUSINESS... transaction was insecure and will be disinclined to use the online purchase again 5.2.5 Demographic The findings of the research indicate that customers' levels of satisfaction with their shopping experiences... to gaining competitive advantages for businesses This study was conducted with the objective of identifying and measuring the impact of logistics service quality on customer satisfaction in Vietnam