Factors affecting customer satisfaction in vietnamese logistics companies

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THI HONG HANH FACTORS AFFECTING CUSTOMER SATISFACTION IN VIETNAMESE LOGISTICS COMPANIES MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THI HONG HANH FACTORS AFFECTING CUSTOMER SATISFACTION IN VIETNAMESE LOGISTICS COMPANIES MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: Prof MONONARI TANABU Assoc Prof PHAN CHI ANH Hanoi, 2022 COMMITMENT I have read and understood the plagiarism violations I would like to declare that my Master’s thesis of "FACTORS AFFECTING CUSTOMER SATISFACTION IN VIETNAMESE LOGISTICS COMPANIES" is the product of my research and has never been published in any other work I pledge with personal honor that this research result is my own and does not violate the Regulation on prevention of plagiarism in academic and scientific research activities at VNU Vietnam Japan University (Issued together with Decision No 700/QĐ-ĐHVN dated 30/9/2021 by the Rector of Vietnam Japan University) Hanoi, 28th May 2022 Master Student Nguyen Thi Hong Hanh 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 Tanabu 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 COMMITMENT ACKNOWLEDGEMENT ABSTRACT TABLE OF CONTENTS LIST OF TABLES i LIST OF FIGURES ii LIST OF ABBREVIATIONS ii CHAPTER INTRODUCTION 1.1 Research Background 1.2 Research Objective .3 1.3 Research Scope .4 1.4 Structure of research .4 CHAPTER LITERATURE REVIEW 2.1 Ecommerce and e-retailer .6 2.2 Service quality and logistics service quality 2.3 Customer satisfaction 10 2.4 Demographics in Vietnam and Covid pandemic 12 2.5 Concept model and research hypothesis 14 CHAPTER RESEARCH METHODOLOGY 19 3.1 Research Methodology .19 3.2 Measurement Scale .19 3.3 Sample and Data collection 21 3.3.1 Sample size and Demographic information 21 3.3.2 Data collection .22 CHAPTER DATA ANALYSIS 23 4.1 Description Analysis 23 4.2 Testing Scale Reliability 27 4.3 Correlation and Regression Analysis 28 4.4 Examining the Differences 32 CHAPTER DISCUSSION AND CONCLUSION 35 5.1 Discussion 35 5.2 Recommendations and Implications 36 5.2.1 Delivery Service Quality .36 5.2.2 Staff Service Quality 37 5.2.3 Communication Service Quality 37 5.2.4 After-sale Service Quality 37 5.2.5 Demographic 38 5.3 Conclusion 39 5.4 Limitation and future research 39 REFERENCES 40 APPENDIX 43 SURVEY OF LOGISTICS SERVICE IN E-COMMERCE 43 LIST OF TABLES Table 3.1 Measurement items for Questionnaire 19 Table 4.1 Official survey data 23 Table 4.2 Consumer shopping statistics .24 Table 4.3 The variable codes 25 Table 4.4 Descriptive statistics consists of 140 samples 25 Table 4.5 Cronbach's Alpha coefficient of the variable .27 Table 4.6 KMO and Bartlett’s Test of Independent Variables 28 Table 4.7 Correlation analysis 29 Table 4.8 Results of regression analysis .30 Table 4.9 Results of regression analysis (including demographic factors) 32 Table 4.10 Hypothesis-testing results 34 i 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 .15 Figure 2.3: Research model 18 ii LIST OF ABBREVIATIONS AS: CO: CSR: DE: LSQ: PDSQ: SQ: SS: After-sale service quality Communication service quality Customer satisfaction Delivery service quality Logistics service quality Physical distribution service's quality Service quality Staff service quality iii According to the findings of a data analysis based on multiple regression, the adjusted R square value is 86.6 percent, which suggests that the quality of the logistics service could explain 86.6 percent of the level of customer satisfaction The strength of the research model used in this paper, in which independent variables are considered to have a significant impact on customer satisfaction, may be justified by the adjusted R square statistic 5.2 Recommendations and Implications 5.2.1 Delivery Service Quality The variables that were observed are pretty satisfactory, with three of the variables, DE1, DE2 and DE3, being above neutralization levels but not reaching the agreed upon level DE1 (the e-retailer that I use delivers products at the appointed time) ranks lowest, and DE2 (shipper delivers products at the appointed time) is another factor that should not be overlooked, according to the observed variables of component delivery This demonstrates that the demands of customers with regard to delivery times are not satisfied because of several reasons: products are out of stock, lack of employees to ship goods, arduous and time-consuming administrative procedures… E-retailers and e-commerce businesses need to collaborate more closely in order to gradually improve this aspect, which will result in customers being more satisfied with the time of delivery 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 36 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 ongoing 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 37 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 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, 38 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 Vietnamese citizens who had purchased goods on a Vietnamese e-commerce platform Further study should find more interesting elements about service quality that have the impact on customer satisfaction in the e-commerce market in Vietnam 39 REFERENCES A.Parasuraman et al, 1988, SERVQUAL: A multiple -Item scale for measuring consumer perceptions of service quality Anh, P.C.; Ha, N.T.; Hoang, N.; Nhan; N.D, 2018, Determinants of customer 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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 43 Q4: How much is your average monthly income? Less than million VND From to 15 million VND Over 15 million VND Others Q5: What is your occupation? Students Employees Managers Others Q6: Which name of ecommerce company you use? 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 44 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 Agreement level E-commerce platform that I use rapidly replies to consumer inquiries (Tiki, Shopee…) E-retailer that I use rapidly replies to consumer inquiries (seller, shop owner…) E-commerce platform that I use communicates online with 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 10 Shipper delivers intact products 11 E-retailer that I use packed products properly and intact 12 E-commerce platform that I use has changing or refunding service 13 E-retailer that I use has changing or refunding service 14 E-commerce platform that I use creates convenience in changing or refunding 45 15 E-retailer that I use creates convenience in changing or refunding 16 E-commerce platform that I use quick responses in changing or refunding 17 E-retailer that I use quick responses in changing or refunding 18 E-commerce platform that I use has amiable calls 19 E-retailer that I use has amiable calls 20 Shipper has amiable calls 21 Shipper contacts customers to deliver products and solve problems related to signing to receiving 22 Shippers have good delivery methods 23 The service from e-retailer meets my needs 24 It is possible for me to buy the product from an e-retailer 25 Overall, I am satisfied with this online experience 46 KHẢO SÁT VỀ CHẤT LƯỢNG LOGISTICS CỦA CÁC ĐƠN VỊ THƯƠNG MẠI ĐIỆN TỬ Thân chào Anh/Chị, Tôi 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 47 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 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 48 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 1- Hoàn tồn khơng đồng ý 2- Khơng đồng ý 3- Lưỡng lự 4- Đồng ý 5- Hoàn toàn đồng ý Mệnh đề STT Thang mức độ Nhà cung cấp dịch vụ (Tiki, Shopee ) mà sử dụng phản hồi nhanh chóng câu hỏi, yêu cầu khách hàng Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng phản hồi nhanh câu hỏi khách hàng Nhà cung cấp dịch vụ (Tiki, Shopee ) mà tơi sử dụng có phương thức giao tiếp trực tuyến với khách hàng Nhà bán lẻ trực tuyến (chủ shop) mà tơi sử dụng có phương thức giao tiếp trực tuyến với khách hàng Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng giao hàng thời gian định Người giao hàng giao sản phẩm thời gian định 49 Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng phân phối mặt hàng Người giao hàng phân phối mặt hàng Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng giao sản phẩm nguyên vẹn 10 Người giao hàng giao sản phẩm nguyên vẹn 11 Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng đóng gói sản phẩm cách nguyên vẹn 12 Nhà cung cấp dịch vụ (Tiki, Shopee ) mà tơi sử dụng có dịch vụ đổi trả hàng hoàn lại tiền 13 Nhà bán lẻ trực tuyến (chủ shop) mà tơi sử dụng có dịch vụ đổi trả hàng hoàn lại tiền 14 Nhà cung cấp dịch vụ (Tiki, Shopee ) mà sử dụng tạo thuận tiện việc đổi trả hàng hoàn lại tiền 15 Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng tạo thuận tiện việc đổi trả hàng hoàn lại tiền 16 Nhà cung cấp dịch vụ (Tiki, Shopee ) mà sử dụng phản hồi nhanh việc đổi trả hàng hoàn lại tiền 17 Nhà bán lẻ trực tuyến (chủ shop) mà sử dụng phản hồi nhanh việc đổi trả hàng hoàn lại tiền 18 Nhà cung cấp dịch vụ (Tiki, Shopee ) mà tơi sử dụng có gọi hòa nhã 19 Nhà bán lẻ trực tuyến (chủ shop) mà tơi sử dụng có gọi hịa nhã 20 Người giao hàng có gọi hòa nhã 21 Người giao hàng liên hệ khách hàng để giao sản phẩm giải vấn đề liên quan tới việc ký nhận hàng hóa 22 Người giao hàng có cách thức giao hàng tốt 23 Dịch vụ từ nhà bán lẻ trực tuyến (chủ shop) đáp ứng nhu cầu tơi 24 Tơi mua sản phẩm từ nhà bán lẻ trực tuyến (chủ shop) 25 Nhìn chung, tơi hài lịng với trải nghiệm mua hàng trực tuyến 50