Factors of customer shopping behavior via advantages of e commerce graduation paper, major business english

Full name: VÕ ĐÔNG TUYẾT VY Student’s code: 15DH710106 Email address: tuyetvyvo197@gmail.com Phone number: 0368287234 Subject: Graduation Thesis Date submitted: 18/06/2019 Word count: 8804 Võ Đông Tuyết Vy DECLARATION I certify that the attached material is my original work No other person’s work or ideas has been used without acknowledgement Except where I have clearly stated that I have used some of this material elsewhere, I have not presented this for assessment in another course or unit at this or any other institution Date: 18/06/ 2019 Writer’s Signature and Full name Võ Đông Tuyết Vy Võ Đông Tuyết Vy ABBREVIATIONS LIST Activities, Interests and Opinions AIO American Marketing Association AMA Automatic Transaction Machine ATM Cash On Delivery COD Gross Domestic Product GDP Personal Computer PC Quick Response Code QR Code Vietnam Dong .VND Vietnam E-Commerce Association VECOM Võ Đông Tuyết Vy ABSTRACT Online shopping is becoming popular in the modern society because the conveniences, which bring to people, make their shopping behavior changed Through the research, we would like to understand about the marketing, e-commerce, and its characteristics that could affect the customers more The study introduced how customers shopping behavior changed and what advantages of the e-commerce could that clearly Moreover, we also introduced some inconveniences when customer use the e-commerce for their shopping In order to get all information above, we would take the survey for people who live in Ho Chi Minh City and summarize the data to give the final conclusion for the study Through the result of the research, we hope that we could know the most important elements could change the shopping behavior, and the most difficult things that customers faced to prepare the good solutions to deal with it Based on it, the e-commercial companies could apply for their own business, and help it develop more and more in the future Key words: E-commerce, Customers shopping behavior, Advantages, Inconveniences Võ Đông Tuyết Vy LIST OF GRAPHS GRAPH 4.1 Percentages of people taking the survey in Ho Chi Minh City page 17 TABLE 4.1 Survey takers’ jobs in Ho Chi Minh City page 18 GRAPH 4.2 Monthly shopping expenses page 19 GRAPH 4.3 Monthly income of survey takers page 19 GRAPH 4.4 Percentage of people using the e-commerce in Ho Chi Minh City page 21 GRAPH 4.5 Percentage of devices in the online shopping page 22 GRAPH 4.6 Online shopping times of survey takers page 23 GRAPH 4.7 The advantages of the e-commerce page 24 GRAPH 4.8 Difficlties of the e-commerce page 26 GRAPH 4.9 The most popular goods on the e-commercial channels page 28 GRAPH 4.10 The appreciation of the survey takers for the e-commerce page 29 GRAPH 4.11 Percentage of survey takers continuing using the e-commerce page 30 Võ Đông Tuyết Vy TABLE OF CONTENTS ABSTRACT CHAPTER INTRODUCTION 1-3 1.1 Background and identification of the topic 1.2 Previous related studies 1.3 The purposes of the study 1.4 The scope of the study 1.5 The organization of the study CHAPTER LITERATURE REVIEW 4-11 2.1 Definitions of Marketing 2.2 Consumer buyer behavior 2.3 E-commerce CHAPTER METHODOLOGY 12-16 3.1 Overview of the experiment 12 3.2 Subjects of the experiment 12 3.3 Materials 14 3.4 Procedures 14 Võ Đông Tuyết Vy 3.5 Statistical treatments 15 CHAPTERR FINDINGS AND DISCUSSIONS 17-31 4.1 Subjects in the research 17 4.2 Click and mortar behavior 20 4.3 The advantages of the e-commerce influent on the customer shopping behaviors 24 4.4 Difficulties of e-commerce 25 4.5 Future appreciated development of ecommerce 27 CHAPTER DISCUSSIONS AND RECOMMENDATIONS 32-35 5.1 Conclusions 32 5.2 Recommendations 33 REFERENCES 36-38 APPENDIX 39-42 Võ Đông Tuyết Vy CHAPTER INTRODUCTION In this chapter, we would like to introduce some general information of the ecommerce and how important it is in the modern life We also showed the previous related studies done before to make the basis to compare and analyze in order to get the final purposes of the research 1.1 Background and identification of the topic We are living in a modern life with the development of all aspects, especially the development of economy, commerce and Internet They all support together in the business activities E-commerce has been created as a result of the cooperation - the development of economy, commerce and the improvement as well as the popularity of the Internet Therefore, the e-commerce has been created With the creation and the spread of the e-commerce all around the world, more and more companies apply it for their business because of benefits which it brings to them Not only it makes everything becomes more convenient, but it also makes the customer shopping behavior changes In the past, all transactions and trades were performed manually; it means, when customers wanted to buy something, they had to go to the stores and chose all goods that they needed directly Different from it, nowadays, people have lots of choices to buy goods, and buying through the ecommerce channels becomes a popular way 1.2 Previous related studies The e-commerce is becoming developed in Vietnamese market in general, and in Ho Chi Minh City market in particular According to Kurokawa Kengo (2018), more and more e-commercial companies established such as Tiki, Lazada, Shopee, etc Võ Đông Tuyết Vy combined with the investment of foreign companies into Vietnamese market makes the development of e-commerce in Vietnam becomes the potential market, especially the eventful market like Ho Chi Minh City These companies are competing to become stronger to conquer customers’ belief in Vietnam It is this competition that has created benefits for the customers when shopping online on the companies’ website and on their applications for IOS and Android In the viewpoint of Pham Thanh Binh (2018), with the improvement of the Internet in the 4.0 industrial life, numbers of people use smart phones and other smart equipment for shopping, paying, booking, etc are increasing day by day, it also leads to the change in customer shopping behavior Also following Kurokawa Kengo (2016), he did a report that mentioned about what behaviors of the customers often appeared on the e-commercial environment, and the products bought on the e-commercial channels by the customers However, we would like to research it again to compare whether the shopping trend of people change or not, and give the explanations for it Moreover, we also want to find out what main elements made the behavior of the customers changed 1.3 The purposes of the study Through the research, we would like to get the purpose of mastering the definitions of Marketing, E-commerce, Customer shopping behavior and characteristics change the consumer behavior following the theoretical basis under the perspective of Philip Kotler, Kevin Lane Keller and Dave Chaffey Based on it, we could create the questionnaire including the questions with advantages and disadvantages when shopping on e-commercial channels of customers in the reality in the most detailed way Võ Đông Tuyết Vy 1.4 The scope of the study In order to get the most correct result, we would take a survey with the people from varieties of jobs who were greater than or equal to 18 years-old, and all of them had to live in Ho Chi Minh City The most important thing to collect the correct data was we just selected the responses of people who used to use the e-commercial services for their shopping Through it, we could not only understand what elements of the e-commerce made them attracted and changed their shopping behavior, we but also know the difficulties that the customers often faced when shopping online 1.5 The organization of the study This research paper begins with the introduction about the general information of the e-commerce, where the background and the identification of the problem are shown The following chapter is devoted to the literature review, which revolves around the general matters of the idea It then goes to how the research is executed, which contains detailed information about the research conduction and how its data is collected and put in profound analysis The next chapter is presented with the research’s possible findings and a discussion The coming-after chapter of the research is dedicated for the conclusion of the topic, and some solutions to improve the difficulties of the research’s subject The final part of this research is wrapped up with the reference of reliable resources and indexes Võ Đông Tuyết Vy 4.3% 6.5% 15.2% Books Fashions and Cosmetics Electronic devices 73.9% Other: Graph 4.9 The most popular goods on the e-commercial channels Graph 4.9 shows us the goods which were searched and bought most by the customers As the percentages shown in the chart, the fashions and cosmetics took the largest proportion in the goods listed with 73.9% Following it, books took 15.2% while the electronic devices took only 4.3% Clearly, it was a big distance between kinds of goods In order to give the reasons why appearing the distance like this, we would take a look at Fashions and Cosmetics first In the modern life, the demand of fashion and beauty always change to keep pace with the trend It was also the goods, which has a variety of models, product lines, function and price That was the reason why there were lots of fashion shops and cosmetic stores established On the other hand, the modern life with the busyness in work makes the customers spent less time to go shopping for the outfits or cosmetics With the variety of product information, it was difficult for customers to choose the products which were suitable with them Understanding those problems, the stores opened their business on the e-commercial channels to be easy to approach more customer, make Võ Đông Tuyết Vy the customers could search the information and buy goods easily At the same time, it could also create a fair competition environment for business owners and more benefits for customers Vice versa, the electronic devices took the least percentage in the goods listed When buying the electronic devices on the e-commercial channels, it was difficult for customers to observe the models and find out the functions of the product directly Moreover, the warranty policy of some products could not be clear, that was the reason why the customers would not like to buy these goods online although there were lots of kinds of goods and models for the customers With the difficulties like that, we wondered how the customers appreciate the click and mortar, and the advantages of the e-commerce could cover the disadvantages to make the customers continue to use online shopping services or not Therefore, we mentioned two questions for this problem in order to get the answers leading to the results of the research Good 45.7% 54.3% Neutral/ Normal Bad Graph 4.10 The appreciation of the survey takers for the e-commerce Võ Đông Tuyết Vy 15.2% Yes No 84.8% Could consider Graph 4.11 Percentage of survey takers continuing using the e-commerce Graph 4.10 and graph 4.11 gives us the appreciation and the decision of the customers on continuing to use the e-commerce for their shopping or not Although there were still the difficulties which could obstruct the development of the ecommerce, the success in building the trust and stimulating the demand of the customers by non-stop improving the disadvantages make the customers could continue to use their services Based on the charts 4.10 and 4.11, we could realize that most of the people appreciated the quality of goods on the e-commerce and would keep the loyalty with it Through it, the companies could be confident to exploit more expects in the e-commercial business in order to satisfy the demand of the customers With a larger numbers of target customers, the companies could expand their business more and more Võ Đông Tuyết Vy Through the results in this chapter, we could see that although the e-commerce just has been a potential business in the Ho Chi Minh City market, with the non-stop efforts of improving the service quality of the businesses and the belief of the customers, it would develop strongly in the future According to the Vietnam ECommerce Association (VECOM, 2019), the e-commerce in Vietnam continues to develop comprehensively with the growth rate was over 30% in 2018 With the online retail field, the revenue growth rate increased by 35% in 2017 (VECOM, 2018) Based on the impressive growth rate like this, not only the click and mortar could be applied for other fields of the business in the future, but it could also attract more and more investment from both domestic and foreign investors They can help the e-commerce in the Vietnam market become a more active environment for the purposes of sustainable development, and bring more benefits for the customers and businesses In order to catch up the trends of the e-commercial playground in the future, the business owners must prepare everything from facilities to human resources well as soon as possible Through the graph 4.7, beside four good elements influent on the customer shopping behavior mentioned above, the owners could also exploit the other potential elements such as shipping – receiving field, payment and website development by building strong transportation network, developing the online payment systems with a highly safe security for the information of the customers instead of cash on delivery (COD), and building websites which are friendly for the users However, the most important thing could help the businesses to get the success in the e-commercial competition is the trust of the customers; therefore, the owners must try so much for that goal Võ Đông Tuyết Vy CHAPTER CONCLUSIONS AND RECOMMENDATIONS As started at the beginning of the research paper, the purpose of this article was to analyze the characteristics of the e-commerce which change the customers shopping behavior and showed the advantages leading to these changes Beside the advantages, we also gave the difficulties that could create the worry for the customers when using the e-commercial services Based on it, the companies could propose the solutions to improve the difficulties and promote the advantages to build a strong trust for the customers 5.1 Conclusions After taking the survey and analyzing the collected data in the chapter 4, we showed four advantages of the e-commerce changed the customers shopping behavior for the final results of the research They were “Getting conveniences in searching products”, “Getting more promotion than at store”, “Saving time and money” and “Being easy to compare the price among shops” The customers were attracted and led to give the decision to choose the e-commerce for their shopping because all of the good elements created the new and the interested things, also responded for the demand of the customers in the quality, model and price of the products; moreover, these things also met the needs in the modern and the busy life nowadays Through those advantages listed above, the companies should try to change their applications interface becomes more friendly, and the process speed to innovate the quality of the application and the website Moreover, the companies also should give more promotion programs on the holidays or the promotions for the members who had the frequent use history to stimulate their shopping demand Võ Đông Tuyết Vy On the other hand, parallel with keeping and improving the advantages, the companies should give the solutions to solve the difficulties, especially the problems of the fake goods To deal with this problem, the companies should create the listing report every month to find out the shops having the lowest appreciation or receiving more complaints about the quality of the products to reject these shops By those ways, companies could create the fair competition environment for all shops, give more benefits to the customers and build a strong development for their own business Although there were still the difficulties in the click and mortar, the satisfactory results of the research could make the business owners confident in expanding and developing their business campaigns and strategies in the future The more the ecommerce developed the more benefits for both the businesses and the customers All these things are for the largest target, making the trade environment in Vietnam in general, and in Ho Chi Minh City market in particular become an active and competitive place to attract more and more investment 5.2 Recommendations The e-commerce in the Vietnam market is not too new; however, it is not really exploded in all aspects of the business Till 2019, most people just approach the click and mortar through the online retail channels It means, they just define that the ecommerce is as the online selling without knowing the other sides of it such as booking or payment On the other hand, the appearance of the online payment applications such as VNPay, Momo, Samsung Pay, etc with the variety of payments in shopping, invoice, mobile card, etc However, online payment is not approached by many people because of the worry of the security policy Therefore, the customers often choose COD as a payment method when shopping instead of online payment On June 11th, there was a conference that mentioned the no cash in payment in Ho Chi Minh City, Võ Đông Tuyết Vy and on June 16th would be chosen as the annual Cashless Day by the Government According to Nguyen Kim Anh (2019), through this conference, the Government hopes that the Cashless Day would be popular to get the purpose of changing the habit of using cash in payment of the Vietnamese people into online payment in the future These are the reasons why we are interested in the online payment methods in the ecommerce in the future Nowadays, the online payment applications are running based on Quick Response Code (QR Code) and the linking of banking accounts through ATM card or Visa Master Card We wondered if there are any solutions to get more efficiency for the QR Code in the future, or recharge into the electronic wallet without linking with the banking account, and what solutions which the companies providing the online payment service would to keep the information of the customers safe, make sure about the security policy of the company with the information of the customers Finally, if these things above could become true in the future, how the companies could approach the customers and persuade them to use their service On the other hand, there are lots of co-operations between the e-commercial companies with the online payment companies such as Momo and Tiki; VNPay, Samsung Pay with the restaurants or milk tea shops with the attractive promotions for the customers who use the online payment Clearly, the co-operations promote the promotions in payment and create the benefits for the customers; however, the e-commercial companies and the shops encourage or not, and how to get the balance between them When the e-commerce in Vietnam becomes exploded in the future with the approaching in all aspects of the business, and people know more about the online payment methods, we think that it probably has a transference People would change from pay in cash or COD to pay online when shopping Moreover, they would also use Võ Đông Tuyết Vy online payment in other services such as booking tickets, reserving hotel rooms, paying the monthly invoices like electricity, internet, and other utilities Whatever happen in the future, we could say that the e-commerce in Vietnam in general, and Ho Chi Minh City in particular has still been a potential market, and it has all elements helping this market become as strong as previously developed markets Therefore, it could change many things in the business in the future including the customers shopping behavior Võ Đông Tuyết Vy REFERENCES Ahasanul Haque, Ali Khatibi & Shameem Al Mahmud (2009) Factors Determinate Customer Shopping Behaviour Through Internet: the Malaysian Case Australian Journal of Basic and Applied Sciences, 3(4), 3452-3463 Accessed on 14/06/2019 Dave Chaffey (2009) E-business And E-commerce Management Strategies (4th edition) New Jersey, US: Prentice Hall Douglas B Holt (2002) Why Do Brands Cause Trouble? A Dialectical Theory of Consumer Culture and Branding Journal of Consumer Research, 29(1), 70-90 Accessed on 14/06/2019 Hoàng Sơn (2019) Báo cáo khảo sát hành vi mua sắm online người tiêu dùng Việt Nam VietNam Finance Retrieved from https://vietnamfinance.vn/bao-caokhao-sat-ve-hanh-vi-mua-sam-online-cua-nguoi-tieu-dung-viet-nam20180504224221220.htm Accessed on 14/06/2019 Kurokawa Kengo (2016) Thị trường thương mại điện tử hành vi mua sắm trực tuyến Việt Nam Brandsvietnam Retrieved from https://www.brandsvietnam.com/congdong/topic/3074-Thi-truong-Thuong-maiDien-tu-va-Hanh-vi-mua-sam-truc-tuyen-tai-Viet-Nam Accessed on 11/03/2019 (Translated by Kim Huy) Kurokawa Kengo (2018) Vietnam E-commerce Market 2018 Retrieved from https://qandme.net/en/report/vietnam-ec-market-2018.html Accessed on 18/01/2019 Võ Đông Tuyết Vy Brandsvietnam Linh Nguyễn (2016) Thấu hiểu người tiêu dùng Việt Nam Vietnam Net Retrieved from https://vietnamnet.vn/vn/kinh-doanh/vef/thau-hieu-nguoi-tieu-dung-viet-nam314257.html Accessed on 14/06/2019 Nguyễn Kim Anh (2019) Ngày không tiền mặt: Dấu mốc cho thói quen tiêu dùng Tuổi Trẻ Online Retrieved from https://tuoitre.vn/ngay-khong-tien-mat-dau-moccho-thoi-quen-tieu-dung-moi-20190612072223595.htm Accessed on 14/06/2019 Phạm Thanh Bình (2018) Thương maị điện tử cho doanh nghiệp vừa nhỏ giai đoạn đầu Cách mạng cơng nghiệp 4.0 Tạp chí Tài Retrieved from http://tapchitaichinh.vn/tai-chinh-kinh-doanh/thuong-mai-dien-tu-cho-doanhnghiep-vua-va-nho-trong-giai-doan-dau-cach-mang-cong-nghiep-40148272.html Accessed on 13/03/2019 Philip Kotler & Gary Armstrong (2012) Principles Of Marketing (14th edition) New Jersey, US: Prentice Hall Philip Kotler & Kevin Lane Keller (2012) Marketing Management (14th edition) New Jersey, US: Prentice Hall Stephen L Vargo & Robert F Lusch (2004) Evolving to a New Dominant Logic for Marketing Journal of Marketing, 68, 1-17 Accessed on 14/06/2019 Trần Anh Thư & Lương Thị Minh Phương (2018) Phát triển thương mại điện tử Việt Nam bối cảnh kinh tế số Tạp chí Tài Retrieved from http://tapchitaichinh.vn/tai-chinh-kinh-doanh/phat-trien-thuong-mai-dien-tu-oviet-nam-trong-boi-canh-kinh-te-so-138944.html Accessed on 18/01/2019 Võ Đơng Tuyết Vy Vietnam E-commerce Association (2018) Chỉ số thương mại điện tử Việt Nam EBI 2018 Bộ Công Thương - Cục Thương Mại Điện Tử Và Kinh Tế Số Retrieved from http://www.idea.gov.vn/?page=document Accessed on 10/06/2019 Vietnam E-commerce Association (2019) Báo cáo số thương mại điện tử 2019 Bộ Công Thương - Cục Thương Mại Điện Tử Và Kinh Tế Số Retrieved from http://www.idea.gov.vn/?page=document Accessed on 10/06/2019 Võ Đông Tuyết Vy APPENDIX STUDENT’S QUESTIONNAIRE Hello, my name is Vo Dong Tuyet Vy I am doing a graduation research paper that really needs your co-operation I would be very grateful if you take your time to response to my questions I appreciate your participant and your answers would be kept in secret Here are some questions need to be answered, please follow the instruction correctly: Please put a ✓ in a box or write down your ideas in a blank to answer Only ONE answer is allowed for each question Both English and Vietnamese are acceptable SECTION 1: Your age:  18 – 22  23 – 27  28 – 35  More than 35 What is your job: ……………………… How much you often spend for shopping a month? (VND)  500.000 – Under 1.000.000  1.000.000 – 3.000.000  3.000.000 – 5.000.000  More than 5.000.000 How much is your income a month? (VND)  About 1.000.000 – 3.000.000  About 4.000.000 – 8.000.000  About 9.000.000 – 15.000.000  More than 15.000.000 Have you ever bought goods online? Võ Đông Tuyết Vy  YES  NO NOTE: If your answer is YES, please continue to answer these questions below: How many times you buy goods online?  – times/ month (Not frequently)  – times/ month (Frequently)  More than times/ month (Very frequently) What device you often use when shopping online?  Smart phone  Tablet  PC or laptop  Other: …………………… What kinds of goods you often buy?  Books  Fashions and Cosmetics  Electronic devices  Other: …………………… SECTION 2: Why you choose to buy goods online? Strongly agree Being introduced by family, friends, etc Being attracted by advertisements of e-commercial Võ Đông Tuyết Vy Agree Disagree Strongly disagree channels Getting varieties of goods and models Getting more promotion than at store Saving time and money Getting conveniences in shipping – receiving goods Getting conveniences in payment Getting conveniences in searching products Being easy to search product’s information 10 Being easy to compare the price among shops What difficulties/ inconveniences you often have when shopping online? Strongly agree Difficult to check the quality of the goods Unpredictable shipping time Fake goods Poor quality goods Difficult to change or return goods How you appreciate the e-commerce? Võ Đông Tuyết Vy Agree Disagree Strongly disagree  Good  Neutral/ Normal  Bad Do you continue to use e-commerce for your shopping?  Yes  No  Could consider This is the end of the questionnaire Thank you for your participation Your answers would contribute to my research’s success Võ Đông Tuyết Vy