Evaluating customer satisfaction among marketing strategy of website vatgia com

VNU- UNIVERSITY OF ECONOMICS AND BUSINESS SCHOOL OF BUSINESS ADMINISTRATION BACHELOR’S THESIS OF BUSINESS ADMINISTRATION EVALUATING CUSTOMER SATISFACTION AMONG MARKETING STRATEGY OF WEBSITE VATGIA.COM BY DUONG HUE THU A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (INTERNATIONAL STANDARD PROGRAM) 2013-2017 Hanoi – May, 2017 VNU- UNIVERSITY OF ECONOMICS AND BUSINESS SCHOOL OF BUSINESS ADMINISTRATION EVALUATING CUSTOMER SATISFACTION AMONG MARKETING STRATEGY OF WEBSITE VATGIA.COM Supervisor’s name: Dr Nguyen Thu Ha Student’s name: Duong Hue Thu Student ID: 13050397 Intake: QH2013 – E Program: International Standard Hanoi – May 2017 i TABLE OF CONTENT BACHELOR’S THESIS OF BUSINESS ADMINISTRATION 2013-2017 i VNU- UNIVERSITY OF ECONOMICS AND BUSINESS .i TABLE OF CONTENT .i ACKNOWLEDGEMENT .iii LIST OF FIGURES iv LIST OF TABLES v ABSTRACT .vi INTRODUCTION .1 1.1 Research background 1.2 Problem statement and research objective 1.3 The research objectives: 1.4 Methodology 1.5 Research structure CHAPTER 1: LITERATURE REVIEW 1.1 MARKETING STRATEGY 1.1.1 DEFINITION 1.1.2 WHY SHOULD THE COMPANY CREATE A MARKETING STRATEGY?.4 1.1.3 7PS MARKETING STRATEGY 1.2 CUSTOMER SATISFACTION 11 1.2.1 CONCEPT OF CUSTOMER SATISFACTION .11 1.2.2 WHY IS CUSTOMER SATISFACTION IMPORTANT TO BUSINESSES? 16 1.2.3 CUSTOMER SATISFACTION MODELS 18 CHAPTER 2: RESEARCH METHODOLOGY .22 2.1 RESEARCH CONTEXT 22 2.1.1 OVERVIEW OF E-COMMERCE MARKET IN VIETNAM 22 2.1.2 OVERVIEW OF WEBSITE VATGIA.COM 27 2.1.3 THE MARKETING STRATEGY OF WEBSITE VATGIA.COM 33 2.2 RESEARCH SAMPLE .41 2.3 RESEARCH FRAMEWORK 42 2.4 RESEARCH SURVEY 43 ii 2.5 MEASUREMENTS .45 CHAPTER 3: ANALYSIS 46 3.1 DATA COLLECTION 46 3.1.1 DESCRIPTIVE STATISTICS ABOUT FACTORS OF MARKETING 7PS AFFECTED ON CUSTOMER SATISFACTION 48 3.1.2 PROS AND CONS OF MARKETING STRATEGIES 60 CHAPTER 4: DISCUSSIONS 64 4.1 SUGGESTIONS TO IMPROVE SERVICE THE ELEMENTS OF MKT STRATEGY AND CUSTOMER SATISFACTION AT VATGIA.COM 64 The weaknesses have pointed out in the former, this chapter will suggest some solutions to improve each element of marketing strategy .64 4.1.1 SOLUTIONS FOR PRODUCT STRATEGY 64 4.1.2 SOLUTIONS FOR PRICE STRATEGY 64 4.1.3 SOLUTIONS FOR PLACE STRATEGY 65 4.1.4 SOLUTION FOR PROMOTION STRATEGY 65 4.1.5 SOLUTIONS FOR PEOPLE STRATEGY .66 4.1.6 SOLUTIONS FOR PROCESS STRATEGY .67 4.1.7 SOLUTIONS OF PHYSICAL EVIDENCE STRATEGY 68 4.2 EXPERIENCE LESSON FROM VATGIA.COM 68 4.2.1 WEBSITE OPTIMIZATION AND DEVELOPMENT OF INFORMATION SYSTEMS, PRODUCTS AND SERVICES RELIABLE 68 4.2.2 ALWAYS INNOVATE AND ENHANCE THE SYSTEM .68 4.2.3 INVESTMENT FOR MARKETING ACTIVITIES 69 4.2.4 ATTACHMENT TO CUSTOMER’S BENEFIT 69 CONCLUSIONS .71 REFERENCES 72 APPENDICES: QUESTIONNAIRE .74 iii ACKNOWLEDGEMENT I would like to show great gratitude to all people who have helped in making this thesis paper successfully possible from beginning to the end Firstly, I would like to thank my supervisor Dr Nguyễn Thu Hà, for her guideline and help as well as valuable feedback, which enable me to achieve and writing a well-structured paper Secondly, it is pleasure to thank Viet Nam Price Joint Stock Company and all of its staffs, who helped me a lot in my internship period and provided me details about the company as well as support me in data collection I am also very grateful for many participants who have spent their time for doing my questionnaire carefully Last but not least, thanks a lot to Faculty of Business Administration, University of Economics and Business, Vietnam National University for helping me in many ways during whole period of doing this thesis Student, Duong Hue Thu iv LIST OF FIGURES Figure 1 The Ps Marketing mix Figure ACSI Model 19 Figure European Customer Satisfaction Index – ECSI 21 Figure Market share of Vietnam EC and its Growth rate 23 Figure 2 Major EC sites in VN 27 Figure The Research Framework 42 Figure Product Strategy 48 Figure The basic benefit packages 50 Figure 3 The enhanced benefit packages 50 Figure Price Strategy 51 Figure Place Strategy .52 Figure Promotion Strategy .53 Figure Process Strategy 56 Figure People Strategy .57 Figure Physical Evidence Strategy 58 Figure 10 Guest Lounge of VNP Company 59 v LIST OF TABLES Table Four types of online shopping sites in VN 24 Table 2 Development History of VNP Group 28 Table The structure of survey questionnaire 43 Table Five-point Likert scale of measurement 45 Table The Characteristics of Gender .46 Table The Characteristics of Age 46 Table 3 The Characteristics of Marital Status .47 Table The Characteristics of Income .47 Table The Characteristics of Life of Contract 47 Table Comparison about services between Vatgia and rivals 49 Table Comparison about price between Vatgia.com and rivals .52 Table 10 Comparison about website between Vatgia and business rivals (Data at 5/12/ 2016) 54 Table Mean of Customer satisfaction 59 Table Descriptive statistics of 7Ps Marketing strategy 60 vi ABSTRACT This thesis examines the booth service at Viet Nam Price Joint Stock Company, carrying out the survey to assess perceived service quality of Website Vatgia.com, and then research the relationship between Marketing Strategy and customer satisfaction on booth service The researcher attempts to investigate how 7Ps Marketing Strategy applied at Vatgia.com Seven elements consist of Product, Price, Place, Promotion, People, Process and Physical Evidence It seems that Marketing Department handles flexibly and regularly innovate marketing plan according to this model Website vatgia.com has been proven the success of 7Ps Marketing Strategy specifically in practice In general, direct customers who vatgia.com provides booth services are likely to be businesses and suppliers They tend to select Vatgia.com as a reliable channel to broaden their market share and explore potential customers The proposed model is tested on a sample of 77 customers randomly at Vatgia.com Almost the evaluations of customer about the strategies of Vatgia.com are positive responds This contributed to create the motivation and cultivate the innovation spirit for not only the Board of directors but also the employees entirely In addition, based on these findings, the thesis also gives some suggestions for Vatgia.com to further improve service quality and customer satisfaction level INTRODUCTION 1.1 Research background One of the grow in areas of E-commerce is Online Buying More and more consumers are turning to the World Wide Web for their shopping needs, which gives them access to either local or international products with just a click of the mouse That has built the benefit for sides – seller and buyer E-commerce is the buying and selling of the goods and services online; internet is the best source to use this tool Today the amount of trade that is conducted electronically using e-commerce has increased with a wide spread usage of internet and technology In Vietnam, it started as buying of online services from other countries virtually and it involved a complete trade in which service was given through internet and money was transferred through credit cards to other country’s firm The internet is being developed rapidly since last two decades, and with relevant digital economy that is driven by information technology also being developed worldwide The detailed product information and improved service attracts more and more people and changed their consumer behavior from the traditional mode to more rely on the internet shopping Electronic commerce is an inevitable trend of development which is the fastest way for businesses expanding international market Therefore the company has always applied E-commerce in the production process, business activities to rapidly approach market information, products, competitors and perform the electronic transactions 1.2 Problem statement and research objective In top retail websites of Vietnam currently, there were websites owned by domestic firms According to the report conducted by comScore, a research agency, Vatgia.com, Lazada.vn (foreign owned website), 5giay.vn, Enbac.com and Thegioididong.com were the highest traffic retail websites in Vietnam With the fierce struggle, to guarantee the market share, each corporation must target the strategic category which be competitive advantage Vatgia.com, specifically, is familiar to the segmentation of technology, machine, mobile and accessories In 2016, vatgia.com got the big success as obtaining the positive cash flow Therefore, it can be assessed that vatgia.com site has built the customer trust and effective business through the strategic marketing system This research study conducted in Hanoi, focuses on investigating the factors that influence the customer satisfaction related to the marketing strategy Moreover, this study also provides insights into the characteristics of the respondents 1.3 - The research objectives: Identifying the common factors of marketing strategy influenced on the customer satisfaction of website vatgia.com - Building the solutions for marketing strategy to improve customer satisfaction The research questions are following: What are the common factors of marketing strategy applied by vatgia.com? How customers evaluate about the marketing strategy of website Vatgia.com? How should website Vatgia.com improve its marketing strategy? 1.4 Methodology Quantitative research provides a measure of how people think, feel or behave in a certain way and uses statistical analysis to determine the results Quantitative research methodology is used to finding the trend of customers’ perception about the service provided by Vatgia company, since it will be more reliable and objective This research uses quantitative methodology, it will provide details of in which factors company should focus on to increase purchase intention then boost up