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MINISTRY OF EDUCATION AND TRAINING University of Economics Ho Chi Minh City DANG NGOC HOANG CORE CRITERIA AFFECTING INTENTION TO SELECT A SUPPLIER OF LESS THAN CONTAINER LOAD (LCL) IMPORT SERVICE IN HO CHI MINH CITY MASTER THESIS IN ECONOMICS Ho Chi Minh City – 2018 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com MINISTRY OF EDUCATION AND TRAINING University of Economics Ho Chi Minh City DANG NGOC HOANG CORE CRITERIA AFFECTING INTENTION TO SELECT A SUPPLIER OF LESS THAN CONTAINER LOAD (LCL) IMPORT SERVICE IN HO CHI MINH CITY Major: Business Administration (Research) Code: 8340101 Master Thesis in Economics Supervisor: Dr Tran Thi Thanh Phuong Ho Chi Minh – 2018 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com COMMITMENTS I commit that: “Core criteria affecting intention to select a supplier of Less Than Container Load (LCL) import service in Ho Chi Minh city” is my own research, which is based on the study and guidance of Dr Tran Thi Thanh Phuong This thesis includes accurate referencing cited from the vast majority of research carried out by reputable authors in the world with detailed in-text citations The content and results of the analysis are honest and have not been published in any form before, so the comments, evaluations and conclusions are reliable Ho Chi Minh City, 2018 Dang Ngoc Hoang LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS BACK COVER PAGE COMMITMENTS TABLE OF CONTENTS LIST OF ABBEREVIATIONS LIST OF TABLES LIST OF FIGURES ABSTRACT CHAPTER INTRODUCTION 1.1 Introduction: 1.2 Purpose of the study: 1.3 Novelty value and significance of the Study .4 1.4 Subjects and Scopes of study: 1.5 Limitation of the Study: Error! Bookmark not defined 1.6 The thesis structure: CHAPTER LITERATURE REVIEWS 2.1 Definition and roles of international freight forwarders 2.1.1 Definition of international freight forwarder: .6 2.1.2 Roles of international freight forwarder: 2.2 Definition and roles of consolidator and less than container load (LCL) service: .9 2.2.1 Definition of consolidator and less than container load (LCL) shipment: 2.2.2 Roles of consolidator and less than container load (LCL) import shipment: 2.3 Standard Operating Procedure (SOP) of Consolidator for LCL Import Shipment: .12 2.4 The overview of less than container load (LCL) service in Ho Chi Minh City 13 2.5 Purchasing, Purchasing process and Behavioral Intention: 14 2.6 Factors influencing freight forwarder selection 18 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 2.7 An overview of related researches that analysis factors affecting to select a supplier of LCL service 21 2.8 Proposed Research Model and The Scale of Variables: 27 2.8.1 Proposed research model: 27 2.8.2 The measurement scale for selected factors: 29 CHAPTER RESEARCH METHODOLOGY 33 3.1 Research Process 33 3.2 The qualitative research: 35 3.3 The tools and method of survey: .35 3.4 Target respondents and the sampling 36 3.5 Measurement scales: 36 3.6 The quantitative analysis: 38 CHAPTER DATA ANALYSIS 40 4.1 Demographical Data of the Respondents: .40 4.1.1 Position of respondents: 40 4.1.2 Business type of respondents: 41 4.1.3 Consolidators were chosen by respondents 42 4.1.4 Commodities were imported by LCL import service 43 4.1.5 Frequency of using import service: 44 4.1.6 Markets imported LCL cargo into Vietnam: 44 4.1.7 The Level of Factors on Customer Selection Intention to use LCL Service 45 4.2 Reliability analysis: 46 4.3 Exploratory Factor Analysis (EFA): .48 4.3.1 EFA for independent variables: 49 4.3.2 EFA for dependent variable: .51 4.4 Correlation Testing 52 4.5 Multiple Regression Analysis 54 CHAPTER CONCLUSION AND RECOMMENDATIONS 59 5.1 Conclusion of the Study 59 5.2 Limitation and future research 60 5.3 Recommendations to LCL import supplier 61 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 5.3.1 Recommendations for Responsiveness .61 5.3.2 Recommendations for reliability: .62 5.3.3 Recommendations for Empathy .63 5.3.4 Recommendations for Rates .63 5.3.5 Recommendation for Assurance .64 5.3.6 Recommendations for resource 64 REFERENCE APPENDIX LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ABBEREVIATIONS CBM: Cubic Meter KMO: Kaiser – Meyer – Olkin KPI: Key Performance Indicator LCL: Less Than Container Load EFA: Exploratory Factor Analysis EXW: Ex-Work FOB: Free On Board FCL: Full of Container Load SOP: Standard Operating Procedure SPSS: Statistical Package Software For Social Science Sig.: Significant Value TEU: Twenty-foot Equivalent Units LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLE Table 2.1 Dimension of container according to ISO standard 10 Table 2.2 The measurement scales of Banomyong et al (2005) research 25 Table 2.3 The overview of factors influencing selection international freight forwarders and consolidators in related researches 26 Table 2.4 Research Hypotheses 32 Table 3.1 Measurement scales factors affect selection intention LCL import supplier 36 Table 4.1 Position of respondents 41 Table 4.2 Business type of respondents 42 Table 4.3 Consolidators were chosen by respondents 42 Table 4.4 Commodities were imported to Vietnam by LCL import service 43 Table 4.5 Frequency of using LCL import service 44 Table 4.6 Markets imported LCL cargo to Vietnam 45 Table 4.7 Mean and standard deviation of six predictors 45 Table 4.8 Reliability Statistics 47 Table 4.9 KMO and Bartlett’s Test of Independent Variables 49 Table 4-10 Rotated Component Matrixa for Indepentent Variables 50 Table 4.11 KMO and Bartlett's Test 51 Table 4.12 Rotated Component Matrix for The Dependent Variable 52 Table 4.13 Correlations 53 Table 4.14 Model Summaryb 54 Table 4.15 ANOVAa 55 Table 4.16 Coefficientsa 55 Table 4.17 The results of testing all hypotheses 57 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 2.1 Proposed research model……………………………………… 28 Figure 3.1 The research process 33 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT Importers and manufacturing factory in Vietnam are using more of their no inventory strategy to reduce storage cost and catch up with the changing need of the market Thus, there is significant change on quantity of import purchase order, from Full Container Load (FCL) into Less Than Container Load (LCL), but more in frequency of shipments The consolidator who is supplying the shipping service for LCL import shipments must always respond to their customers’ demand to ship LCL cargo with competitive cost, short transit time and good at handling service quality This study was conducted to find out the variables which impact the customer’s intention to select the supplier of LCL import service Understanding the customer’s behavioral intention will be one of the keys to competitive advantage, which improves the organization’s service level The requirements for LCL import service providers are becoming more severe, customers want their cargo must be shipped on time without delay and fastest service, cargo must be handled safely and always receive a willingness on resolving troubles and updating information also The criteria selected to examine the impact on customer selection intention to use the LCL import supplier based on the previous studies written by authors of the same topic in the world The result of research did showed that all six factors included Responsiveness, Rate, Resource, Assurance, Empathy, Reliability would positively affect customer intention to select the company's service, while the Responsiveness, Reliability, Empathy factors were the best significant impacts The findings will be the foundation for choosing strategy to develop a better service and getting more on LCL import shipping market share Keywords: Selection Intention, Less than container import service, Ho Chi Minh City LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Stank, T P., & Roath, A S (1998) Some propositions on international transportation and logistics facility development: Shippers' perspectives Journal of Transportation, 37(3), 13-24 Tokar, T (2010) Behavioral research in logistics and supply chain management The International Journal of Logistics Management, 21(1), 89-103 Vitasek, K (2006) Supply chain and logistics terms and glossary Retrieved November 11, 2009, from: http://www.logisticsservicelocator.com/resources Wah, P K (2009) Improving operating efficiency by integrating decisions on ship routing, berthing time assignment with transshipment options Working paper: Department of Logistics and Maritime Studies, The Hong Kong Polytechnic University, Webster, Frederick E., Jr., 1991, Industrial marketing strategy, 3rd ed, John Wiley& Sons, Inc Wind Y & Thomas, R.J., 1980, Conceptual and Methodological Issue in Organizational Buying Behaviour European Journal of Marketing, Vol 14, 239-263 Whyte, J L (1993) The freight transport market: Buyer-seller relationship and selection criteria International Journal of Physical Distribution & Logistics Management, 23(3), 29-37 Yael Perlm an, Tzvi Raz Livnat Moshka, 2009 Key Factors in Selecting an International Freight Forwarding Company The Open Transportation Journal, 2009, 3, 29-34 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com APPENDIX A ENGLISH QUESTIONNARE QUESTIONNARE OF INTENTION TO SELECT THE LCL IMPORT SERVICE SUPPLIER To: Respondent, I'm Dang Ngoc Hoang, I am a member of MBA course from University of Economic Ho Chi Minh City This questionnaire was prepared to collect data on core criteria affecting the decisions to select consolidator of LCL import service of importer/exporter and forwarders companies in Ho Chi Minh city Your opinions will support for educational purposes only, no part of this is for commercial use The thesis will be the useful documentation for improving service quality of consolidator who specialist on LCL import transportation Sincerely thank you! Part 1: General information Please fill in the correct information in the following questions: 1.Your name is: … Your company is: … What kind of your company: LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Which LCL import co-loader have you supported for regularly? (Choose the most you have supported, this company will be called “company X”) Shipco Thamico -horse Concord Oriental Others: What is your LCL import commodity shipped by company X 's service: iture How offen you use company X's service: Which market have you regularly imported LCL products: Others Part 2: Factors influencing decision to select Company X's LCL import service: Please specify your opinions carefully, the use the scale by making (X) in the space that is closest to your opinions Trongly disagree Disagree 3.No comment Agree Strongly disagree Strongly disagree←→Strongly agree LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TC Reliability TC1 You relied on Company X's reputation in consolidation market TC2 You know Company X's sales executive or manager TC3 Company X is a member of global transportation association with professional agent system TC4 X always delivers your shipments on time GC RATES GC1 X's LCL import ocean freight is competitive GC2 Local charges at origin and destination ports are standard as market tariff GC3 Currency exchange rate is accurate and acceptable GC4 Company X supports customer on credit term GC5 Easy payment methods applied NL Resource NL1 X's phone, email, skype, fax, are always available to contact NL2 You always get the freight space and booking confirmation from company X NL3 X's sailing schedules, cut off time, departure & arrival dates match your need LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com NL4 Company X's staff & equipment are always ready for shipment track & trace NL5 Company X is in convenient location DB Assurance DB1 The LCL import shipments are well delivered by X without loss or damage DB2 Company X always buy transportation insurance and support customer claim on transportation cost DB3 Company X has standard operating procedure for handling high value, easily teared – stolen cargo DB4 Un-stuffing cargo at destination warehouse will be monitored by Company X, sending photos and warehousing record to customer if cargo is in bad situation PH Responsiveness PH1 X gives you reply, quotation and shipment status with fast response PH2 X reports the correct measurement and correct billing amount PH3 X always send B/L, Arrival Notice, Delivery Order on time PH4 Company X's always update delay notice, rolling shipment to you on time PH5 Company X & agents give quick support on revise charge, and document amendment LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com PH6 Company X always reply customers’ complaints quickly and reasonably DC Empathy DC1 Company X protects business information for customers DC2 Company X always takes care customers’ benefits, interests and needs DC3 Company X always listen to customers' comments to improve service quality DC4 Company X keeps maintenance of good customer relationship YD Selection Intention YD1 You will consider X's service as the first choice to use LCL service YD2 You will re-purchase LCL service with XYZ logistics soon YD3 You are likely to maintain the percentage of using LCL import service with Company X YD4 You will encourage others to purchase LCL service from Company X Thanks for your contribution! LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com APENDIX B VIETNAMESE QUESTIONNARE BẢNG KHẢO SÁT ĐỊNH LƯỢNG CÁC YẾU TỐ TÁC ĐỘNG ĐẾN Ý ĐỊNH LỰA CHỌN NHÀ CUNG ỨNG DỊCH VỤ KHAI THÁC HÀNG LẺ NHẬP KHẨU TRÊN ĐỊA BÀN THÀNH PHỐ HỒ CHÍ MINH Xin chào anh/chị, Tơi Đặng Ngọc Hồng học viên lớp cao học trường Đại Học Kinh Tế Thành Phố Hồ Chí Minh Hiện tơi thực đề tài nghiên cứu “ Đánh giá nhân tố then chốt tác động đến định lựa chọn nhà cung ứng dịch vụ khai thác hàng lẻ nhập ( consolidator) công ty xuất nhập công ty giao nhận vận tải địa bàn thành phố Hồ Chí Minh ” Những ý kiến anh/chị nhằm mục đích phục vụ cho giáo dục, không phục vụ cho mục địch thương mại Nghiên cứu tài liệu tham khảo hữu ích cho doanh nghiệp hoạt động lĩnh vưc gom vận tải hàng lẻ nhập đường biển hoàn thiện chất lượng dịch vụ Rất mong nhận ý kiến đóng góp từ anh/chị! Xin chân thành cảm ơn! Phần 1: Thông Tin Chung Anh/Chị vui lịng cho biết thơng tin sau: Tên anh/chị : Tên công ty anh/chị: Công ty anh/chị công ty công ty: LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ận tải giao nhận Công ty xuất nhập ẻ Anh/chị sử dụng dịch vụ gom hàng lẻ nhập đơn vị gom hàng lẻ thường xuyên nhất? (chọn đơn vị mà anh/chị sử dụng nhiều nhât, gọi công ty X) Shipco Thamico Star- Concord Oriental rõ): Những mặt hàng công ty anh chị nhập thông qua dịch vụ công ty X: ất May mặc ội thất Thiết bị điện tử Mức độ thường xuyên sử dụng dịch vụ vận chuyển hàng lẻ công ty X: Hàng tuần Anh chị nhập hàng lẻ từ thị trường nhiều nhất: Châu Á ỹ rõ) Part 2: Anh chị cho biết cảm nhận anh chị phát biểu công ty X: LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Đối với phát biểu, anh chị đánh dấu vào số từ đến đó: Hồn tồn khơng đồng ý Không đồng ý Không ý kiến Đồng ý Hoàn toàn đồng ý Thang đo Ký hiệu TC Không đồng ý← →đồng ý Thang đo Tin Cậy TC1 Anh/chị dùng dịch vụ cơng ty X cơng ty công ty danh tiếng khai thác hàng lẻ thị trường TC2 Anh/chị quen biết với chuyên viên kinh doanh người quản lý công ty X TC3 Công ty X thành viên hiệp hội vận tải đường biển quốc tế uy tín giới có hệ thống đại lý tin cậy TC4 Cơng ty X vận chuyển hàng thời gian dự kiến GC Thang đo Giá GC1 Giá cước vận chuyển công ty X cạnh tranh GC2 Phụ phí cảng cảng đến cơng ty X mức chi phí phù hợp chung thị trường GC3 Tỷ giá tiền tệ công ty X sử dụng xác phù hợp LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com GC4 Công ty X hỗ trợ công nợ cho khách hàng u cầu GC5 Phương thức tốn cơng ty X dễ dang thuận tiện NL Thang đo Nguồn lực công ty NL1 Dễ dàng liên lạc với công ty X điện thoại, email, skype, fax, NL2 Anh/chị ln có chỗ nhận xác nhận đặt chỗ từ cơng ty X có nhu cầu NL3 Lịch tàu, ngày hàng, ngày tàu chạy, ngày tàu đến công ty X đáp ứng yêu cầu anh/chị NL4 Nhân viên hệ thống trang thiết bị công ty X sẵn sàng cho viện tìm kiếm, theo dõi chi tiết lơ hàng anh chị NL5 Công ty X đặt vị trí thuận tiện DB Thang đo Đảm bảo DB1 Các lô hàng vận chuyển container công ty X không bị mát hay hư hỏng DB2 Cơng ty X có mua bảo hiểm vận tải đường biển hỗ trợ đền bù LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com chi phí vận chuyện có hư hỏng xảy DB3 Cơng ty X có quy trình khai thác hàng giá trị cao, dễ vỡ, cung cấp đầy đủ hình ảnh trình khai thác DB4 Cơng ty X ln thơng báo tình trạng gửi hình ảnh hàng hóa hàng hóa mở container cảng đến hàng hóa có dấu hiệu bất thường PH Thang đo Phản hồi PH1 Công ty X báo giá, cung cấp thông tin lô hàng cách nhanh PH2 Công ty X báo thơng tin số đo hàng hóa số tiền cần tốn xác PH3 Cơng ty X gửi chứng từ: vận đơn, thông báo hàng đến PH4 Công ty X thông tin đến khách hàng sớm vấn đề tàu trễ, hàng hóa không ngày dự kiến PH5 Công ty X đại lý nhanh chóng hỗ trợ việc chỉnh sửa chứng từ có sai xót LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com PH6 Công ty X trả lời khiếu nại khách hàng nhanh chóng DC Thang đo đồng cảm DC1 Công ty X bảo mật thông tin kinh doanh cho khách hàng DC2 Công ty X quan tâm, đáp ứng yêu cầu, quyền lợi, mong muốn khách hàng DC3 Công ty X lắng nghe ý kiến khách hàng để cải thiện chất lượng dịch vụ DC4 Công ty X thường xuyên liên lạc, thăm hỏi, giữ mối quan hệ với khách hàng QD Thang đo định lựa chọn dịch vụ QD1 Anh/chị cân nhắc cơng ty X trước có nhu cầu sử dụng dịch vụ hàng lẻ nhâp QD2 Anh/chị sớm sử dụng lại dịch vụ vạn tải hàng lẻ nhập nhập công ty X QD3 Anh/chị tiếp tục trì tỷ lệ sử dụng dịch vụ vận tải hàng lẻ công ty X QD4 Anh/chị giới thiệu công ty X cho người có nhu cầu LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com APENDIX C TOTAL VARIANCE EXPLAINED IN EXPLORATORY FACTOR ANALYSIS Table C1: Total Variance Explained of Dependent Variables Comp Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings onent Total % of Cumula Variance tive % Total % of Cumulati Varianc ve % Total e % of Cumulati Varianc ve % e 5.673 20.260 20.260 5.673 20.260 20.260 2.559 9.139 9.139 2.100 7.500 27.760 2.100 7.500 27.760 2.534 9.048 18.188 1.889 6.747 34.508 1.889 6.747 34.508 2.330 8.320 26.508 1.737 6.204 40.711 1.737 6.204 40.711 2.328 8.313 34.821 1.424 5.084 45.795 1.424 5.084 45.795 2.199 7.854 42.674 1.304 4.658 50.453 1.304 4.658 50.453 2.178 7.778 50.453 975 3.483 53.936 959 3.427 57.363 898 3.206 60.569 10 847 3.025 63.594 11 819 12 800 2.856 69.377 13 778 2.777 72.154 14 742 2.652 74.805 15 681 2.433 77.239 16 650 2.321 79.559 17 630 2.250 81.809 18 606 2.164 83.974 19 571 2.040 86.014 20 534 1.908 87.922 21 502 1.794 89.717 22 485 1.733 91.450 23 474 1.692 93.142 2.926 66.520 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 24 448 1.601 94.743 25 403 1.440 96.182 26 401 1.432 97.614 27 360 1.285 98.899 28 308 1.101 100.000 Extraction Method: Principal Component Analysis Table C2: Total Variance Explained of Independent Variables Component Initial Eigenvalues Total % of Cumulativ Variance e% 2.181 54.515 54.515 747 18.665 73.180 646 16.154 89.334 427 10.666 100.000 Extraction Sums of Squared Loadings Total % of Cumulative % Variance 2.181 54.515 54.515 Extraction Method: Principal Component Analysis LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com APENDIX D TOTAL HISTOGRAM, NORMAL REGRESSION & SCATTER PLOT OF DEPENDENT VARIABLE LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ...MINISTRY OF EDUCATION AND TRAINING University of Economics Ho Chi Minh City DANG NGOC HOANG CORE CRITERIA AFFECTING INTENTION TO SELECT A SUPPLIER OF LESS THAN CONTAINER LOAD (LCL) IMPORT. .. LUONG download : add luanvanchat@agmail.com COMMITMENTS I commit that: ? ?Core criteria affecting intention to select a supplier of Less Than Container Load (LCL) import service in Ho Chi Minh city”... LUONG download : add luanvanchat@agmail.com 2.2 Definition and roles of consolidator and less than container load (LCL) service: 2.2.1 Definition of consolidator and less than container load (LCL)
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