Rationale-
In today's digital age, electronic payments have become a prevalent method of transaction in developed countries, facilitated by seamless bank transfers and credit card services Conversely, in developing nations like Vietnam, electronic payment systems are just beginning to emerge and evolve through their initial development stages.
The rapid growth of electronic payment services in enterprises has led to significant advancements, with providers like Paynet and Vnpay at the forefront Banks are increasingly focusing on these services, as evidenced by the online banking offerings from institutions such as Vietcombank, Vietinbank, and Techcombank Additionally, payment services are continuously evolving, highlighted by the improvements from National Payment Services Joint Stock Company (NAPAS) and Banknetvn.
NAPAs operates a vast interconnect network comprising 16,800 ATMs and 220,000 POS machines, serving over 90 million cards from 43 commercial banks The company is also internationally active in Vietnam, offering a range of payment services.
200 firms in the airline sector, telecommunications, hotels, tourism and electronic payment services for other utilities customer
NAPAS has achieved notable success, yet it faces fierce competition and limitations in its payment service quality, particularly in areas like risk warning and management systems Additionally, the company has not effectively integrated with many popular e-commerce platforms To enhance its market share, NAPAS JSC must evaluate the impact of its payment service quality on its growth Consequently, a model for assessing the quality of its electronic payment services has been developed and implemented to identify both strengths and weaknesses, enabling the company to devise strategies for future market expansion.
The chosen topic for my graduation thesis is "The Impact of Payment Service Quality on Market Share Expansion of NAPAS." Notably, there is a lack of reports evaluating the effectiveness of payment service quality on NAPAS's market share growth in Vietnam This thesis aims to be one of the first comprehensive studies assessing the quality of NAPAS's payment services I hope this research will contribute to enhancing and advancing the payment services offered by NAPAS.
Literature review
For my thesis research, I concentrate on examining pertinent documents across three key literature groups: (1) Studies focused on payment services and their quality in online businesses; (2) Case studies evaluating payment service quality both in Vietnam and internationally; and (3) Experimental research investigating the correlation between service quality and market share.
In his 2010 thesis, "Payment in Electronic Commerce," Nguyen Tran Hung explores the fundamental theories of payment activities within the realm of electronic commerce, detailing the current e-payment systems The work highlights the significance, advantages, and limitations of electronic payment methods while also addressing security technologies related to e-payments Additionally, it offers insights into the theoretical foundations necessary for understanding the rapid growth of electronic commerce in Vietnam, supplemented by examples from developing countries Overall, the thesis effectively illustrates the concept of electronic payment and its crucial role in today's integrated economy.
In his 2009 thesis "Online Payment and Electronic Wallet," Hy Le Van emphasizes the significant advancements in electronic commerce in Vietnam, indicating that the country is ready for further development in this sector He discusses the evolution of electronic payment systems, particularly focusing on e-payment and electronic wallets, while also identifying key companies offering these services in Vietnam, along with their respective advantages and limitations The thesis underscores the need for these companies to implement targeted strategies to enhance the quality of electronic payment services, addressing existing challenges and leveraging their strengths for future growth.
Tyree, A (2000) published a thesis that named as “ Virtual Cash - payment on the internet ” This thesis provides basic and clear concepts of online payment method
The thesis outlines essential criteria for evaluating the quality of online payment service systems and popular online payment models This analysis is crucial for understanding the impact of electronic payment service quality on the growth and market expansion of companies offering these services.
In my thesis, I will use the collected knowledge in the thesis to build the research model to assess service quality of electronic payment of NAPAS JSC
In 2011, researchers from the University of Economics Ho Chi Minh City conducted a study titled “Research on the Actual Situation of Electronic Payment Systems in Vietnam,” which explored the concepts, characteristics, advantages, and disadvantages of electronic payment systems The study examined the global and Vietnamese development of electronic payment methods and identified popular models currently in use It also analyzed factors influencing the electronic payment service system in Vietnam and researched successful intermediary websites in both foreign and domestic contexts, aiming to identify pathways for enhancing electronic payment development in the country Consequently, electronic payment service providers must actively engage in strategic business planning and address existing limitations to boost revenue and market share, significantly contributing to NAPAS JSC's efforts to enhance their electronic payment service quality.
So, in recent years, there have been many research projects on the quality of electronic payment service as follows:
Choi, Stahl & Whinston (2010) conducted a detailed study on the quality of electronic payment service systems in the United States, examining key factors influencing this quality Utilizing SPSS software for data analysis, the authors identified both advantages and limitations within the electronic payment services Their findings led to the proposal of solutions aimed at enhancing service quality; however, some of these measures remain general and lack specificity.
Craig D Mason's 2011 research, "Effect of the Quality of Electronic Payments Service to Increase the Sales of Service Companies," investigates how electronic payment service quality influences market share growth for service companies in the UK By analyzing the current state of electronic payment services and gathering data through customer interviews, Mason highlights the significant impact of service quality on revenue growth for these companies Similarly, Hung Le Duy's 2013 study, "The Payment in Electronic Commerce in Vietnam," explores the theoretical foundations and processes of electronic commerce payments while examining the development of electronic payment systems in Vietnamese enterprises from 2010 to 2014 Through analysis and customer feedback, the research proposes strategic solutions to enhance electronic payment development in Vietnam.
2015 -2020 However, because the research topic is quite general and research problem is quite broad, the topic cannot be in the details and delve into research problem
In 2014, Le Duc Tung conducted a study on the development of electronic payment systems for enterprises in Vietnam, highlighting key issues related to the quality of these services The research emphasizes the significance of ensuring the safety and security of customer financial information, which directly impacts the effectiveness of electronic payments in the country However, the proposed solutions lack specificity and detail regarding the future direction for enhancing electronic payment quality in Vietnam.
(3) Experimental studies that relate to issues of service quality and expand market share
The author found no direct research linking service quality to increased market share; however, several studies may provide valuable insights for understanding this relationship.
Zeithaml et al (1996) in their study "The Behavioral Consequences of Service Quality," published in the Journal of Marketing, highlight the significant correlation between service quality and market performance The research indicates that companies providing exceptional service experience greater-than-average growth in market share.
According to Buzzell and Gale (1987), service quality significantly impacts profitability through mechanisms such as enhanced market share and the ability to charge premium prices (Phillips, Chang, and Buzzell 1983) This indicates that companies providing higher service quality tend to capture a larger market share.
In their 1993 study "Customer Satisfaction, Customer Retention, and Market Share," Rust and Zahorik highlight the importance of focusing marketing resources on retaining existing customers rather than solely attracting new ones They reference the findings of Fornell and Wernerfelt, which suggest that investing in service quality improvements can lead to greater benefits for companies, ultimately helping them maintain their market share.
On the other hand, many researchers (Trang, 2006) support for the conclusion that
Customer satisfaction and loyalty are closely linked; enhancing service quality boosts customer satisfaction, which in turn fosters loyalty and helps retain existing customers, thereby maintaining market share Furthermore, satisfied customers are likely to recommend the company to others, contributing to market share expansion.
In conclusion, the review of global and Vietnamese studies has equipped the author with fundamental insights into electronic payment services and the influence of service quality on the growth and market share of providers This thesis will serve as a foundation for developing models to evaluate the service quality of NAPAS's electronic payment offerings, providing a crucial theoretical framework for the research.
Aims of research
Researching the current quality of payment services at NAPAS JSC is essential for identifying effective solutions to enhance service quality, ultimately facilitating the expansion of the company's market share.
- Systematize the basic theoretical issues about the electronic payment and quality of electronic payment service
- Assess the effect of factors affecting the quality of electronic payment service and then find out its effect on expanding market share of NAPAS
- Find out the advantages and limitations in activities of electronic payment service at NAPAS
- Propose solutions to improve quality of electronic payment service to expand market share of NAPAS and give recommendations to relevant units.
Objects of research
The main object of this research is “The impact of the electronic payment quality on the market share expansion of NAPAS company”.
Scope of research
Location scope: The research is carried out at NAPAS JSC
The research is carried out from Aug, 2016 to Dec, 2016 Solutions applicable until
Research methodology
The model of the topic is synthesized and built from previous researches In which:
Based on Paret and Lyapunov, 2000
Based on Paret and Lyapunov, 2000
Safety and security of the system
Safety (confidentiality) based on Nguyen Ngoc Hien, 2003
The security based on Gary P.schneider, 2000
This is characteristic to ensure the accuracy of electronic payment system, including pricing, tax, product information, etc (Nguyen Ngoc An and Nguyen Van Hoang, 2003)
The user-friendly interface of a website plays a crucial role in presenting products and services, ensuring that users can easily access essential information and utilize electronic payment systems effectively (Tran Ba Thai, 2005).
The author builds a model to assess the effect of factors on the quality of the electronic payment service based on original assessment model of service quality of Parasuraman (1988)
Qualitative research: Qualitative research is used through group discussion In group discussion, the author will run a survey of 30 people as follows:
- 25 customers who use payment services of NAPAS
Qualitative research aims to explore and refine research concepts, and interview findings indicate unanimous agreement among participants regarding the impact of payment services on customer satisfaction Consequently, the author utilizes this set of factors for further investigation.
Quantitative research builds upon the findings of qualitative research to analyze factors influencing customer satisfaction and the market share growth of NAPAS The author conducts this research by designing questionnaires and administering surveys, targeting a sample size of 300 customers.
According to Roger (2006), a minimum sample size of 150-200 observations is essential for practical research Additionally, Hair et al (1998) suggest that the minimum sample size can be determined by multiplying the number of questions (n) by 5.
This research utilized a questionnaire consisting of approximately 30 questions, leading to a minimum sample size requirement of 150 observations (30 questions multiplied by 5) To enhance the generalizability of the findings, the author opted for a sample size of 300 observations.
The author plans to conduct direct interviews with customers as well as telephone interviews to gather insights Additionally, the annual customer conference hosted by the company serves as a valuable opportunity for the author to collect a wealth of customer ideas simultaneously.
+ Secondary data: secondary data will be collected at NAPAS in the period from
+ Primary data: The research will focus on collecting primary data within 3 weeks from 2 nd September, 2016 to 20 th September, 2016.
Thesis structure
The intended thesis structure as following:
(Not include Introduction and Conclusion)
CHAPTER 1: THEORETICAL BACKGROUND CHAPTER 2: ANALYSIS THE CURRENT SITUATIONS CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS
THE THEORETICAL BACKGROUND
Overview of the service quality, electronic payment service and market share 9
1.1.1 The basic definitions 1.1.1.1 Service quality
Service quality has been defined and conceptualized in various ways, leading to numerous measurement approaches While defining service quality is complex, several key concepts frequently emerge in research discussions.
Customer perceptions of quality vary significantly, making their involvement in the development and evaluation of service quality crucial In the service industry, quality is largely influenced by customer awareness, meaning that service quality is defined by how well it meets individual customer needs (Bui Nguyen Hung and Nguyen Thuy Quynh Loan, 2010).
There are two components of service quality: (1) technical quality is what the customers perceive; (2) function quality interprets how the services are provided (Grửnroos, 1984)
Service quality is defined as the gap between consumer expectations and their perceptions of the actual service received (Grünroos, 1984; Parasuraman et al., 1988) It encompasses the overall characteristics of services, highlighting their ability to meet user needs within specific economic and societal contexts (Ngo Thi Thu, 2002).
1.1.1.2 Electronic payment and Electronic payment service
Electronic payment is a way of making payment via electronic message instead of cash (Nguyen Tran Hung, 2010)
Electronic payment refers to non-cash transactions utilizing various electronic methods, such as payment cards, electronic checks, bank transfers, and electronic funds transfers It encompasses both online payments, which occur directly over the internet, and batch payments, where multiple transactions are processed collectively at the end of the day, as seen in supermarkets As a crucial component of electronic commerce, e-payment is essential for facilitating seamless financial transactions in today's digital economy (Nguyen Tran Hung, 2010).
An electronic payment gateway serves as a vital link between banks, buyers, and sellers, facilitating the seamless transfer of funds during online transactions This system ensures that sellers receive payments efficiently once a transaction is completed Buyers benefit from the convenience of using their registered online accounts to make payments through e-commerce websites, ensuring a smooth purchasing experience (Le Van Hy, 2010).
An electronic payment gateway is a software system that connects e-commerce websites to payment channels like banks, enabling customers to make payments for goods and services using credit accounts or credit cards This streamlined process eliminates the need for cash transactions or direct bank deposits, allowing customers to simply confirm their payments, which saves both time and costs Essentially, the electronic payment gateway serves as a virtual selling location (Le Duc Tung, 2011).
1.1.1.3 Service quality of Electronic payment service
The quality of electronic payment gateway services is closely linked to the user interface and the level of service expected by customers, as all user interactions occur through a computer interface Consequently, the effectiveness of electronic payment gateway systems can be assessed in terms of software quality and website performance (Vu Dinh Thu, 2010).
The electronic payment system comprises key components such as networked computers, client-server architectures, and multimedia services The effectiveness of electronic payment gateways is determined by their ability to meet end-user requirements, particularly through the computer interface (HCI) As highlighted by Kalakota and Winston (2007), the quality of this interface must adhere to established software quality principles to ensure a positive impact on electronic payment experiences.
The quality of electronic payment gateway services is determined by six key factors: functionality, reliability, efficiency, availability, maintenance, and portability Among these, availability is frequently emphasized as the most critical aspect, aligning with the ISO 9126 standard for electronic payment systems Regular reviews of these quality factors ensure that the service meets the necessary standards for optimal performance.
1.1.1.4 Market share and market share expansion
Market share is the market segment of the business has occupied In essence, it is the market segmentation of the business to competitors in the industry (Vuong Van Dao, 2013)
Expanding market share involves strategic measures that aim to maximize product consumption by a business This growth is achieved not only through the development of new markets but also by increasing the market presence of existing products in established markets (Nguyen Van Anh, 2013).
To assess the extent of market share of a business, the manager can rely on a number of indicators, such as broadening the geographic scope of the market, creating new customers
1.1.2 Characteristics of service quality of electronic payment
Electronic payment services offer unparalleled flexibility, allowing users to make transactions anytime and under any circumstances This key feature enhances the convenience and accessibility of financial transactions in today's digital landscape.
Electronic payments allow payment partners to narrow geographic distances, widen the scope of their payments globally Electronic payment is a component of the digital economy
Electronic payment services operate 24/7, enabling real-time transactions through computer networks and telecommunications Utilizing LANs and the internet, these services facilitate global payments at any time Additionally, electronic payment methods offer numerous advantages, making them a preferred choice for consumers and businesses alike.
The rise of electronic payment services is driving the shift towards non-cash payment methods, diminishing the reliance on traditional cash transactions and marking an essential trend for the future.
Electronic payment services to expand into new fields: exchange of electronic financial datas, electronic money, digital wallet, electronic sec, smart card, payment cards
1.1.3 Factor affecting the service quality of electronic payment
The effectiveness of the payment gateway
The efficiency of an e-payment gateway system is crucial for effectively managing customer requests This is evident in the rapid processing speed of transactions and the accuracy of information handling.
If the electronic payment system works more efficiently, the quality of the system of higher and the more satisfied the customer
The stability of the system
The stability of an electronic payment gateway is crucial for delivering high-quality service, as it directly impacts transaction processing speed and the accuracy of transaction information A reliable electronic payment system is characterized by its high stability, minimal issues, and the absence of errors or interruptions, ensuring a seamless experience for customers.
The safety and security of the system
Security and security are the prerequisite for any electronic payment system This factors are to ensure confidential information, the privacy rights of the account holder to use the service
Assessment models for service quality of electronic payment and relationship of
1.2.1 Assessment model for service quality of electronic payment 1.2.1.1 Assessment model for service quality of Parasuraman 1988
Parasuraman (1988) is recognized as a pioneer in the service industry for developing the SERVQUAL model, which evaluates service quality This model is grounded in the concept that perceived service quality arises from the comparison between customer expectations and the actual value they experience.
The SERVQUAL model, comprising five key components, is widely recognized and utilized for assessing service quality across various industries and countries, including the USA, UK, Singapore, Korea, Malaysia, Saudi Arabia, and Kuwait Its acceptance among researchers and practitioners alike highlights its prominence as a leading method for evaluating service quality in diverse fields.
Difference 1 Difference between expectation of customers and awareness of managers on expectation of customers Difference 2 Managers incorrectly transmit or can‟t transmit expectation of customers into procedure, specifications of quality
Difference 3 Staff don‟t work under proper procedure Difference 4 Advertise and introduce incorrectly Difference 5 Total of above difference, difference between received service and expectations of customers 5-different model is general model with its theoretical nature of service quality To be able to practice, Parasuraman et al tries to build the scale used to assess the quality in service field According to him, for any service, customers perceive quality basing on 10 following components: Reliability, Responsiveness, Competence, Access, Courtesy, Communication, Credibility, Security, Understanding customer, Tangibles
The advantage of this model lies in its comprehensive coverage of various service aspects; however, its assessment and analysis can be quite challenging In 1988, Parasuraman et al refined this model, introducing five key components: Reliability, Responsiveness, Competence, Sympathy, and Tangibles.
Model 1.1: Scale for service quality assessment SERVQUAL
According to Parasuraman's (1988) research model, numerous scholars have developed assessment models to evaluate service quality across various sectors In practical applications, the number of factors influencing service quality may vary, either exceeding or falling short of the original five identified factors These factors are also subject to change based on the specific industry and research context, highlighting the adaptability of prominent research models in different service fields.
1.2.1.2 Assessment model for service quality of online banking of Broderick and Vachirapornpuk 2002
In their research, the authors examined social websites in the UK to understand customer awareness of internet banking and its influencing factors They identified five key elements that significantly impact the perception of service quality in online banking: customer expectations, visual content, organizational reputation, service setup, and customer engagement.
Model 1.2: The assessment model forquality of online banking service
Source: Broderick and Vachirapornpuk (2002) 1.2.1.3 Assessment model for quality of electronic payment of ISO 2005
The ISO-International Organization for Standardization and the IEC-International Electrotechnical Commission have introduced the ISO/IEC 9126 standards for assessing software quality This initiative is overseen by project ISO 25000:2005, which defines a model for software product quality, outlines key quality characteristics, and establishes methods for calculating their relationships.
Under ISO 9126 standard, there are 6 groups of factors affecting the quality of electronic payment gateway, including factors as following model:
Model 1.3: Research model under ISO 9126 standard
Image, reputation of the organizations
Perception of service quality Customer expectation
Quality of electronic payment gateway
Base on model 2.3, we can see that research model under ISO 9126 standard includes
6 factors: functionality, reliability, efficiency, usability, maintainability and portability The research results show that all these factors have positive effect on the quality of electronic payment gateway service
When evaluating electronic payment systems, usability is frequently regarded as the most crucial quality factor However, it is essential to recognize that other quality aspects, such as operational performance, reliability, and efficiency, also significantly impact user experience and satisfaction.
1.2.1.4 Assessment model for quality of electronic payment of Liliana Solís 2011
British economist Liliana Solís (2011) has made significant contributions to the research on the quality of electronic payment gateway services for UK enterprises Her findings on the factors influencing service quality are synthesized into a comprehensive model.
Model 2.4: Research model of the author Liliana Solís (2011)
Source: Liliana Solís (2011) 1.2.2 The relationship between service quality and market share expansion
Service quality is closely linked to a company's ability to expand its market share High service quality increases the likelihood of attracting more customers, while poor service quality can hinder growth According to Curry and Sinclair (2002), when a company's service quality meets customer expectations, it leads to higher customer satisfaction, ultimately allowing the business to capture a larger market share.
Consistency Safety and security of the system
Quality of electronic payment gateway
Improving service and product quality is essential for enhancing customer satisfaction and loyalty, as noted by Wicks and Roethlein (2009) Satisfied customers are more likely to continue using a company's services, recommend them to others, and contribute to increased revenue Additionally, Al-Wugayan et al (2008) emphasize that high service quality is crucial for retaining existing customers and attracting new ones, ultimately leading to greater operational efficiency and an expanded market share for the business.
Numerous studies, including those by Craig D Mason (2011) and Choi, Stahl & Whinston (2010), have demonstrated the critical role of service quality in enhancing market share across various sectors, particularly in the e-commerce industry.
Based on Parasuraman's original service quality assessment model from 1988, numerous studies have focused on measuring service quality, particularly in the context of electronic payment gateways Many researchers have developed assessment models that evaluate the service quality of these systems Drawing from existing literature and the established relationship between service quality and market share growth, I propose a research model for this topic.
Model 2.5: Proposed asessment model of quality of electronic payment gateway of the topics
The model of the topic is synthesized and built from previou researches In which:
Safety and security of the system
Quality of electronic payment gateway
The system's capability to deliver optimal functions enhances resource conservation and boosts operational efficiency under specific conditions (Paret and Lyapunov, 2000) This effectiveness is influenced by two key factors.
This feature describes the ability to maintain a specific level of performance under different conditions
Stability is essential for an automatic system, as it ensures that the system can self-adjust and return to its balanced state after experiencing any changes or impacts (Paret and Lyapunov, 2000).
Safety and security of the system
Five components, which are identified in the related electronic payment are confidentiality, authentication, access control, accountability and use of data (Nguyen Ngoc Hien, 2003)
ANALYSIS THE CURRENT SITUATION
Introduction about NAPAS.JSC
2.1.1 The process of formation and development
NAPAS JSC (NAPAS) was established by the Joint Stock Commercial Bank for Foreign Trade of Vietnam along with 15 other joint-stock commercial banks Its primary goal is to professionalize and diversify services for supporting and processing non-cash payment transactions, in line with the policies set forth by the Government and the State Bank.
NAPAS operates an advanced information processing system that connects 51 member banks, financial institutions, airlines, telecommunications companies, and large enterprises across Vietnam This system facilitates convenient payment services through various electronic transaction channels, including ATMs, POS systems, mobile phones, and the Internet NAPAS focuses on providing and developing a range of essential services to enhance the digital payment landscape in the country.
1 Electronic data processing service for financial transactions - NAPAS Switching includes:
- Data processing service for ATM transactions
- Data processing service for POS transactions
2 Payment gateway service - NAPAS Payment Gateway includes:
- Online payment gateway via Internet (e-Commerce)
- Electronic payment gateway for Topup, Billing
3 Service of providing solutions and payment methods for electronic wallet - NAPAS eWallet
4 Service of training, consulting and developing card services and electronic payment
5 Other services After 6 years of operation, NAPAS has expanded the connection of ATMs, POS system for member banks with a network of 16,000.00 ATMs and 105,000.00 POS and accepted payment for 55 million domestic cardholders of domestic and foreign banks in Vietnam
NAPAS has established partnerships with various domestic entities, including major airlines like Vietnam Aviation Corporation and VietJet Aviation Joint Stock Company, as well as AirAsia Additionally, NAPAS collaborates with telecommunications companies and large enterprises that offer goods and services throughout Vietnam.
The Vietnam Military Telecommunications Group, Vietnam Mobile Telecom Services Company, Viet Nam Telecom Services Company, and Vina Group, among others, are committed to offering convenient payment solutions through electronic transaction channels like ATMs, POS systems, mobile phones, and the Internet to meet the essential payment needs of customers In terms of international collaboration, NAPAS is actively exploring partnerships to connect its system with global card organizations, including Visa, MasterCard, American Express, China Union Pay, and JCB, to enhance modern payment support services for banks.
2.1.2 Introduction about electronic payment gateway service (NAPAS Payment Gateway)
NAPAS Payment Gateway is the service to process the authentication and license electronic payment transactions on the internet environment
The NAPAS Payment Gateway empowers banks to enhance their online payment capabilities for international credit cards and domestic debit cards, facilitating seamless transactions on websites integrated with the NAPAS system.
- International cards: Visa, MasterCard, American Express, JCB…
Domestic debit cards, also known as ATM cards, are issued by banks in Vietnam The NAPAS Payment Gateway stands out as a leading online payment solution in the Vietnamese market, leveraging a robust switch connection with over 30 member banks It adheres to the highest security and safety standards in the finance and banking sectors, as well as those set by international card organizations.
- Number of international cards, domestic cards which are accepted on NAPAS Payment Gateway are the biggest and widest
- Connect with many large enterprises and many customers who have online payment habit such as VietnamAirlines, VinaGames, Ngan Luong, Bao Kim, etc
- Implement with the member banks quickly, simply on existing Switch connection platform
- Transaction process is standardized, simple, unified, easy for the customers to use
- The flows of transactions are standardized to minimize transaction risks, errors, improve service quality
- Provide more diverse payment channels based on existing connection with the banks
- Tools for control, automatic settlement are under the standards of finance and banking field
- Tools for transaction report for the banks and sales units, risk management, systems for monitoring and warning fake transactions under international standards
NAPAS Payment Gateway enables enterprises with e-commerce websites to accept online payments as following model:
+ Model of domestic card payment
- Customers purchase goods and services on the websites and choose the payment methods
- Customers will be switched to interface of NAPAS online payment gateway
- Customers fill in their card information and confirm the payments
- NAPAS online payment gateway will transfer payment request to the international card organizations to process
Upon receiving confirmation of payment transactions from international card organizations, the NAPAS online payment gateway promptly notifies the card acceptance unit and informs customers with a message indicating that the transaction was successful.
+ Model of domestic card payment
The payment process for domestic cards mirrors that of international cards After completing a purchase, customers are directed to the NAPAS online payment gateway, where they enter their card details and confirm the transaction.
Its difference compared with international payment gateway: NAPAS sends payment request to the issue bank
2.1.3 Business operation results of the company
The business operation results provide a comprehensive overview of the company's performance To assess the operational outcomes of NAPAS JSC, the author utilizes the following table for evaluation.
Table 2.1 : Business operation results of the Company
Net revenue from sales and rendering services
Cost of goods sold 6,861,973 8,286,779 20,300,932 1,424,806 20.76 12,014,153 144,98 Gross profit from sales and rendering services
Financial cost 200,000 603,512 1,003,395 403,512 201.76 399,883 66,26 Net operating profit 6,895,015 7,977,955 16,840,463 1,082,940 15.71 8,862,508 111,09 Other profit 590,136 743,407 718,568 153,271 25.97 -24.839 (3.34)
Earnings before tax 7,485,151 8,721,362 17,559,031 1,236,211 16.52 8,837,669 101.33 Current business income tax charge
Source: Data of NAPAS JSC
From 2014 to 2016, the company's revenue consistently grew, with a notable increase of 23.38% in 2015 compared to 2014 In 2016, the revenue surged dramatically by 121.01% compared to the previous year, 2015.
It proves that service-providing activities of the company are well implemented
In the latter half of 2015, the global economic crisis led to significant price fluctuations, impacting many domestic enterprises, including NAPAS JSC, which faced challenges in production and business To combat the risk of losing market share due to a decline in familiar partners, the company's leadership implemented strategic adjustments in service pricing and incentives to boost revenue As a result, NAPAS JSC achieved a 16.52% increase in profit after tax compared to 2014, demonstrating resilience in a challenging economic environment.
In 2016, our country experienced significant growth in international payment activities, prompting our company to capitalize on this opportunity by securing contracts with major partners like Vietnam Mobile Telecom Services, Vietcombank, Agribank, and VnExpress As a result, our service revenue surged by 121.01% compared to 2015, while sales expenses rose by 26.26% and general and administrative expenses increased by over 51.67%.
In the past three years, NAPAS JSC has experienced positive growth in its production and business operations, reflecting effective management and a successful diversification of products and services This strategy has resulted in a significant increase in revenue since 2013, largely driven by the expansion of electronic payment gateway services To further enhance income and profitability, the company should implement policies and measures aimed at improving service quality, ensuring continued revenue growth in the future.
Actual situations on market share of NAPAS JSC
2.2.1 Actual situation on the revenue of NAPAS JSCin comparison with other companies in the same field
Revenue from service provision is a key indicator of an enterprise's product and service consumption capacity This analysis focuses on NAPAS JSC, comparing its revenue with that of competitors in the same industry to assess its market impact The findings are presented in the following table.
Table 2.2 Revenue of NAPAS JSCin comparison with other companies
Vietnam Payment Solution JSC 23,092,154 24,112,010 28,097,189 33,089,904 47,091,023 Online Mobile
Viet Phu Payment Support Corp (Mobivi)
The table indicates a consistent growth in revenue from non-cash payment services, particularly for NAPAS JSC, which experienced significant increases from 2012 to 2016 In 2012, the company's revenue from these services was 9,908,297 thousand dongs, which surged to 39,727,852 thousand dongs by 2016, highlighting a robust upward trend in financial performance.
Since its inception, Vietnam Payment Solution JSC (Vnpayment) has established itself as a leader in the non-cash payment sector, boasting the highest revenue in the industry This success can be attributed to its pioneering role and strong reputation among customers Vnpayment's revenue surged from 23,092,154 thousand dongs in 2012 to 47,091,023 thousand dongs in 2016, reflecting its significant growth Competitors like Onepay, Mobivi, and M-service are also making strides in the market, intensifying competition for market share.
In recent years, companies have significantly increased their market share in service revenue To evaluate this growth, the author conducts a comparative analysis of the market share among these firms.
2.2.2 Market share in rendering services of NAPAS JSCin the market
Analyzing the market share of NAPAS JSC over the years, alongside its competitors, provides valuable insights into the company's recent market expansion The table below presents the market share data for NAPAS and its rivals, compiled through thorough research and data collection by the author.
Table 2.3 Market share in rendering services of NAPAS JSC
Name of the company Năm 2012 Năm 2013 Năm 2014 Năm 2015 Năm 2016
Onepay Online Service and Commercial JSC 9.25% 11.18% 11.72% 14.85% 17.76%
Between 2012 and 2016, Vietnam Payment Solution JSC (Vnpayment) emerged as the primary competitor to NAPAS in the non-cash payment sector, achieving a peak market share of 34.40% in 2012 However, Vnpayment's market share has gradually declined over the years By 2016, NAPAS JSC recorded its highest market share at 24.93% Overall, while NAPAS has consistently maintained a higher market share than other competitors, it still trails behind Vnpayment Consequently, the growth and expansion of NAPAS's market share are essential strategic priorities for the company moving forward.
2.2.3 Number of major partners of NAPAS JSC in comparison with other companies in the same field
Analyzing the number of partners of NAPAS JSC in comparison to other companies is an effective method for evaluating its competitive capacity in the market This research enables company leaders to implement strategies for acquiring new partners, thereby expanding the market for their products and services.
Table 2.4 Major partners of NAPAS JSCin comparison with the ones of other companies
Name of the company Năm
NAPAS JSC has experienced consistent growth in its partner network, reflecting the Sales Department's success in boosting revenue and expanding market share From 32 major partners in 2012, the company increased its partnerships to 51 by 2016, marking that year as a significant milestone with contracts signed with reputable organizations such as VnExpress, Vietcombank, Agribank, and Mobifone While NAPAS's partner count is lower than Vietnam Payment Solution JSC (Vnpayment), which grew from 36 partners in 2012 to 60 in 2016, it surpasses other competitors in the market This disparity is attributed to Vnpayment's strong market reputation and advantages.
Vietnam Payment Solution JSC (Vnpayment) stands out as a leading competitor to NAPAS in terms of both reputation and market share To successfully expand and develop its market presence, NAPAS JSC must conduct a thorough analysis of its competitors' strengths while simultaneously enhancing service quality to boost its reputation among customers.
2.2.4 Activities of NAPAS JSC in the market share expansion
To enhance market share and boost revenue from service offerings, NAPAS JSC has undertaken various impactful initiatives This study aims to assess NAPAS's competitive capacity relative to other companies in the non-cash payment support sector by analyzing their market expansion activities The findings of this research are detailed in the accompanying table.
Table 2.5 Activities to expand market share of NAPAS JSC NAPAS
Onepay Online Service and Commercial JSC
Online Mobile Services JSC (M-service)
Viet Phu Payment Support Corp (Mobivi)
- Increase accuracy for transactions with customers
+ Improve product quality and customer service
- Design new features for users
- Ensure accuracy for transactions with customers
+ Improve product quality and customer service
- Ensure consistency for money transfer transactions
- Increase security of the system
- Improve stability of the system
- Improve efficiency of transactions + Seek new partners + Diversify products and services + Cooperate with many prestigious organizations + Invest in modern technology functions for users
- Set up a lot of language interfaces for customers + Invest modern technology for the system + Pay attention to severing close customers + Diversify products and services access
- Increase accuracy for the transactions
- Set up error notification system when having transaction error
- Ensure security of customer information
- Beautiful interface + Focus on customer service + Diversify products and services + Invest in technology
+ Promote to seek customers + Frequently upgrade the system
- Auto support customer if necessary
- Speed up money transfer transactions
To enhance customer experience, it is essential to establish multiple language interfaces, invest in expanding the transaction network, prioritize the training and development of staff, and recognize customer engagement as the top priority.
Research indicates that companies in the non-cash payment sector engage in various activities to enhance their market share A primary focus for these companies is the improvement of product and service quality, although their approaches may differ This emphasis on service quality plays a crucial role in expanding market share within the industry.
NAPAS JSC prioritizes enhancing service quality to expand its market share, implementing various initiatives such as accelerating transaction speeds, enhancing transaction safety and system security, designing a user-friendly interface, improving system stability, and increasing transaction efficiency These factors are crucial for boosting the overall service quality of NAPAS and driving the company's market share growth.
To enhance market share, NAPAS JSC must prioritize service quality, recognizing its crucial role in achieving this objective By focusing on improving service quality and building customer trust, the company can effectively expand its market presence.
SOLUTIONS AND RECOMMENDATIONS
Solutions to improve the quality of electronic payment service
3.1.1 Training the technical staff of the company
Implementing professional training for company staff, particularly technical personnel, is essential for enhancing user experience through advanced features and establishing new risk warning and management systems Additionally, recruiting more technical staff will help address system issues and reduce the time required for necessary upgrades.
NAPAS JSC recognizes the challenges in deploying electronic payment gateway services, particularly in addressing human resource issues To effectively support business development, it is crucial to have a skilled workforce capable of operating these payment systems As the company continues to expand its business scope and scale, the importance of having qualified personnel becomes increasingly significant.
It also means that happened shortage of highly qualified labor with specialized training in electronic payments
To enhance the quality of human resources in electronic payments, the Company can either recruit skilled professionals externally or develop talent through internal training programs.
To address immediate needs, companies should prioritize training their internal workforce by encouraging employees to participate in short courses aimed at enhancing skills and qualifications These courses will equip staff with valuable knowledge, thereby improving the quality of electronic payment gateway services and other applications that benefit users Additionally, for external recruitment, companies should target young, knowledgeable candidates with expertise in IT, e-commerce, and customer communication skills, sourcing talent from universities, research institutes, and international graduates Implementing a competitive remuneration policy is essential to attract these skilled individuals, ultimately enhancing the company's competitiveness and service quality.
Training the business staff is capable of communicating with customers and implement transactions with partners in providing services
Training the skills administrator of Site and transaction processing such as:
+ Handle email: write emails, answer emails to customers
+ The basic operations for troubleshooting on the system popular
+ The administrator tasks: put images onto the system, the system administrator, updated information, the transaction processing operations,
3.1.2 Completing the system interface gateway payment services of the Company to raise the level of customer friendliness
The construction and design of the electronic payment system interface for transaction offices must cater to both domestic and international markets While a well-developed interface is essential, it is not sufficient on its own; continuous improvements in presentation, information updates, and user-friendliness are crucial An attractive payment gateway interface is vital, as outdated advertisements, broken links, or slow response times can frustrate visitors and harm the company's reputation, necessitating their removal.
An interface is considered to be friendly, to attract users when it satisfies the following factors:
- Present simple with easy to implement guidelines
- Number of connections is at least
- Engaging content without slowing down the operation of the system
- To ensure safety and reliability for users
In the future, the company should implement new technology applications in the design interface to create a more modular page system, enhancing user-friendliness and improving overall user experience.
- Establish a system language: Vietnamese, English, Chinese, Japanese, French, and distinguished by IP access to express language (Eg: customers in China access the display language exam is automatically Chinese)
To enhance the presentation of content, it is essential to transition from manual methods to a structured approach using a Content Management System (CMS) that aligns with industry standards While the company's service quality has improved, particularly in electronic payment transactions, a regular review of the payment gateway system is crucial for maintaining competitiveness This involves more than just monthly updates; it requires consistent attention to pricing information and ensuring that all service details are accurate and official to meet customer needs Recognizing the interface as a vital communication channel is key, as a cluttered and unscientific electronic payment gateway can deter customers To improve user experience, the company should implement clear navigation options, such as visible links to various features and a search engine, enabling customers to easily find the services they seek.
In the cashless service sector, the system interface is designed to provide essential information and updates about available services, enabling customers to complete transactions seamlessly Furthermore, the company should regularly update and offer additional valuable information related to its services at no cost, fostering a positive impression and building trust among viewers.
On the system should have full address, service instructions placed by phone or the service functions by email, through the form located service
3.1.3 Expanding cooperation, linking with organizations large e-commerce, popular with users of Vietnam
The significance of organizations and e-commerce websites is rapidly growing in today's business landscape By collaborating within e-commerce frameworks, companies can enhance mutual support in online operations, share costs associated with application deployment and IT infrastructure, safeguard against potential disputes in the evolving business environment, and strengthen their collective presence through a unified approach.
Companies should actively engage with the e-commerce Association of Vietnam (Vecom) to gain access to a variety of beneficial activities that enhance both member and individual business growth Participation offers support in security software and network security, while also fostering national development among members Additionally, companies can collaborate with diverse businesses, creating opportunities to broaden their market reach and expand their operations.
3.1.4 Investment and application of modern technology, advance to the work raising, improve the quality of the system's electronic payment gateway company to avoid limiting condition system crash
To enhance the electronic payment gateway system, companies must focus on developing advanced software that facilitates faster and more accurate transactions while ensuring robust security against hacking and theft This commitment to improving service quality will significantly bolster user safety and trust in the services provided.
Companies should assess their existing technological equipment and consider upgrades where possible Additionally, it is essential to invest in new computers that meet the demands of their work, prioritizing machines with high processing speeds to enhance payment processing efficiency.
Investing in advanced equipment and high-speed computing, along with ensuring compatibility between hardware and software, enables companies to streamline transaction processing This efficiency not only enhances customer experience but also attracts more clients, ultimately strengthening the company's competitive position in the market.
The company also attaches great importance to the maintenance, maintenance of computer equipment, software testing regularly check the backup device, besides, attach importance to the security and data storage
To retain existing customers, the company must enhance the quality of its payment gateway services by increasing the success rate of transactions through effective system monitoring and control Establishing a dedicated 24/7 customer service center will ensure that customer inquiries are promptly addressed, fostering loyalty and satisfaction.
To enhance payment accuracy and minimize transaction errors, it is essential to coordinate with member banks to guide customers in making payments, particularly to prevent issues like incorrect password entries or repeated misinformation Additionally, simplifying the online payment registration process for credit cardholders by enabling self-registration through online platforms or ATMs can significantly reduce complexity Furthermore, establishing backup links is crucial to mitigate system failures, especially during peak promotional periods for service providers.
Solutions expand market share of NAPAS
3.2.1 Solution to attract customers using NAPAS e-payment portal
To be able to continue attracting more customers using electronic payment gateway services of NAPAS in the near future NAPAS should promote solutions to expand market such as:
In response to the rapid evolution of e-commerce and emerging payment methods, NAPAS is launching e-payment training courses to help customers stay updated This initiative not only generates additional revenue for NAPAS but also enhances brand visibility and promotes its diverse range of products and services.
To effectively promote the NAPAS e-payment portal to both domestic and international customers, active participation in economic fairs is essential These events attract large businesses and organizations that represent potential future clients for NAPAS, a leading provider of comprehensive electronic payment solutions Engaging in these fairs not only increases visibility among key industry players but also serves as an excellent opportunity to showcase the quality of NAPAS's services to end consumers.
After Vietnam signed the TPP Agreement in 2016, the country faced increased competition from global markets, prompting the organization of numerous economic development seminars NAPAS should actively engage in these workshops to evaluate Vietnam's economic landscape during this integration phase By presenting insights from a young entrepreneur's perspective and proposing innovative e-payment solutions, NAPAS can enhance the competitiveness of Vietnamese enterprises This involvement will also serve as an excellent opportunity for NAPAS to promote its brand to potential customers.
The NAPAS annual meeting serves as a vital platform for one of Vietnam's leading electronic payment companies to evaluate its activities and attract media attention This event not only facilitates the creation of promotional content for NAPAS but also gathers valuable customer feedback on service quality Additionally, it provides insights into market trends, enabling NAPAS clients to refine their strategies in alignment with future market developments.
Active participation in seminars and fairs, along with engaging with customers across various channels, will enhance NAPAS's brand recognition among consumers Many will identify NAPAS as a provider of safe and secure electronic payment services, while businesses will recognize it for its diverse, high-quality offerings in Vietnam's leading electronic payment market This strategic positioning will solidify NAPAS's reputation and influence in the industry both now and in the future.
3.2.2 Group solutions to improve the security of electronic payment of NAPAS
NAPAS electronic payment gateway utilizes authentication programs from international card organizations, including MasterCard Security Code, Verified by Visa, J Secure, and AVS, to enhance security for banks and cardholders These programs facilitate the identification of cardholders and mitigate risks, ensuring customer protection through a secret code provided by the issuing bank, in accordance with international standards This approach not only safeguards customers but also helps businesses minimize risks and streamline reimbursement processes.
To enhance customer security during all stages of payment, NAPAS must implement measures beyond protecting information transmission Current programs only safeguard and authenticate customers after they complete the registration process, leaving them vulnerable to risks such as keylogger programs and computer worms that can compromise personal information like card account numbers and passwords Therefore, it is essential for NAPAS to explore additional security support methods for customers.
Utilizing virtual keyboard technology enhances security for customers by enabling them to input personal information directly on the payment website interface This method allows users to enter their account numbers and passwords by clicking on a virtual keyboard, effectively preventing keyloggers from capturing sensitive data.
Utilize digital matrix technology to authenticate each payment transaction, enhancing security For every transaction, the website will present a unique two-dimensional matrix number Customers must input the matrix information by column via SMS and send it to the digital service offered by NAPAS for verification before entering their payment card details on the site.
NAPAS offers a secure e-wallet technology that simplifies the payment process for customers Upon registration, users only need to input their payment card details once, which are then encrypted and stored on NAPAS's servers as an electronic wallet For subsequent transactions on various NAPAS-supported platforms, customers can easily access their wallet by entering just their information and password, eliminating the need to repeatedly enter sensitive payment card information This not only streamlines the payment experience but also significantly reduces the risk of personal data exposure.
Figure 3.1: Electronic wallet technology model
3.2.3 Solutions for the development of customer support services
NAPAS is actively providing solutions to assist customers in integrating e-payment gateway systems into their enterprise websites, offering consultancy on the development of electronic payment platforms and guidance on building online sales teams To enhance its role as a comprehensive e-payment solution provider, NAPAS needs to intensify its business support efforts in various activities.
- Sales regulations and policies in e-commerce
- Process and operate an online business
- Risk management in electronic payment
- Payment card and payment system
- Invoice of electronic voucher, electronic signature in electronic payment gateway
NAPAS should enhance its efforts to promote the benefits and safety of e-commerce and e-payment gateways, beyond its current collaboration with VnExpress for articles in the shopping section Given that young people, who are the primary users of electronic payments, may not engage with traditional media, NAPAS should focus on disseminating knowledge directly on the websites of its clients This strategy will effectively reach those who are most in need of electronic payment solutions, fostering greater awareness and adoption of e-payment systems.
3.2.4 NAPAS brand building and development solutions
In a competitive landscape, e-payment gateway providers must prioritize becoming the preferred choice for customers The uniqueness of electronic payment services often leads to challenges for customers in selecting their suppliers, as end users frequently encounter psychological barriers that complicate their decision-making process regarding the use of electronic payment methods.
Global electronic payment gateway service providers prioritize brand development, with established names like Visa, MasterCard, JCB, and Diners Club fostering customer trust Effective branding is crucial not just for major players but also for local payment service providers in specific markets To strengthen its brand, NAPAS must enhance service quality and customer confidentiality while investing significantly in public promotion Building unwavering trust in its payment and security systems is essential for reassuring consumers and encouraging participation in the NAPAS electronic payment gateway, even among those unfamiliar with the brand.
Building a strong brand needs to focus on the unit's competitive advantage Specifically, NAPAS is one of the leading companies in the electronic payment market in
Vietnam's electronic payment landscape has room for growth, and NAPAS should enhance its visibility By emphasizing its exceptional service quality, robust security measures, and a diverse range of products tailored to various business models, NAPAS can attract more customers Additionally, its expertise in technology consulting and commitment to high-quality customer service through innovative solutions will further strengthen its position in the market.
Scale for service quality assessment SERVQUAL
According to Parasuraman's (1988) research model, numerous scholars have developed service quality assessment models across various industries In practical applications, the number of factors influencing service quality may vary, with some studies identifying fewer or more than the original five factors These factors can also shift based on the specific industry and research focus, highlighting the adaptability of prominent research models in different service fields.
1.2.1.2 Assessment model for service quality of online banking of Broderick and Vachirapornpuk 2002
In their research, the authors analyzed social websites in the UK to understand customer awareness of internet banking and its influencing factors They identified five key elements that significantly impact the perception of service quality in online banking: customer expectations, visual content, organizational reputation, service setup, and customer engagement.
The assessment model forquality of online banking service
Source: Broderick and Vachirapornpuk (2002) 1.2.1.3 Assessment model for quality of electronic payment of ISO 2005
The ISO/IEC 9126 standards, established by the International Organization for Standardization and the International Electrotechnical Commission, provide a framework for assessing software product quality Governed by project ISO 25000:2005, these standards define quality characteristics and outline the relationships for calculating software quality metrics.
Under ISO 9126 standard, there are 6 groups of factors affecting the quality of electronic payment gateway, including factors as following model:
Research model under ISO 9126 standard
Image, reputation of the organizations
Perception of service quality Customer expectation
Quality of electronic payment gateway
Base on model 2.3, we can see that research model under ISO 9126 standard includes
6 factors: functionality, reliability, efficiency, usability, maintainability and portability The research results show that all these factors have positive effect on the quality of electronic payment gateway service
When evaluating electronic payment systems, usability is often regarded as the most crucial aspect of software quality However, it is important to recognize that other quality factors, such as operational performance, reliability, and efficiency, also significantly influence user experience and satisfaction.
1.2.1.4 Assessment model for quality of electronic payment of Liliana Solís 2011
British economist Liliana Solís (2011) has made significant contributions to the research on the quality of electronic payment gateway services in UK enterprises Her findings on the factors influencing service quality can be synthesized into a comprehensive model.
Research model of the author Liliana Solís (2011)
Source: Liliana Solís (2011) 1.2.2 The relationship between service quality and market share expansion
Service quality is closely linked to the ability of enterprises to expand their market share High service quality increases the likelihood of attracting more customers, thereby enhancing market share According to Curry and Sinclair (2002), when service quality meets customer expectations, it results in customer satisfaction, which in turn allows enterprises to capture a larger market share.
Consistency Safety and security of the system
Quality of electronic payment gateway
Improving service and product quality is essential for enhancing customer satisfaction and loyalty, which encourages customers to continue using a company's services and recommend them to others, ultimately increasing revenue (Wicks & Roethlein, 2009) Additionally, service quality is crucial for retaining existing customers and attracting new ones, leading to greater operational efficiency and a larger market share (Al-Wugayan et al., 2008).
Numerous studies, including those by Craig D Mason (2011) and Choi, Stahl & Whinston (2010), have demonstrated the critical role of service quality in enhancing market share across various sectors, particularly in the e-commerce industry.
Based on Parasuraman's original service quality assessment model from 1988, extensive research has been conducted on measuring service quality, particularly in the context of electronic payment gateways Many authors have developed assessment models that explore this area Drawing from previous studies and the established relationship between service quality and market share growth, I propose a research model for this topic.
Proposed asessment model of quality of electronic payment gateway of the
The model of the topic is synthesized and built from previou researches In which:
Safety and security of the system
Quality of electronic payment gateway
The system's capability to optimize resource utilization and enhance operational efficiency under specific conditions is crucial (Paret and Lyapunov, 2000) This effectiveness is influenced by two key factors.
This feature describes the ability to maintain a specific level of performance under different conditions
Stability is essential for an automatic system, as it ensures that after experiencing a change, the system can self-adjust and return to its balanced state (Paret and Lyapunov, 2000).
Safety and security of the system
Five components, which are identified in the related electronic payment are confidentiality, authentication, access control, accountability and use of data (Nguyen Ngoc Hien, 2003)
To achieve these objectives, digital certificates and security protocols are implemented to safeguard transactions Additionally, employing encryption methods enhances the reliability of electronic commerce systems, ensuring transaction security even during system failures.
The security means that electronic payment system needs to protect privacy for users(Gary P.schneider, 2000)
Users possess personal information like addresses, phone numbers, account numbers, and hobbies An effective electronic payment system empowers users to choose whether to share or conceal their personal details, as well as to add additional information To ensure user trust and safety, a secure electronic payment system must incorporate these functionalities.
To ensure the accuracy of electronic payment systems, it is essential to maintain consistency in pricing, tax, and product information (Nguyen Ngoc An and Nguyen Van Hoang, 2003) This consistency relies on the quality of usability, which is linked to the features of electronic payment gateway services Key elements include well-prepared website content that provides precise information, as well as instructional videos and images for the payment process Additionally, an engaging interface with clear instructions is crucial for attracting and guiding users effectively.
The user-friendly interface of a website is essential for effectively presenting products and services, as it enhances user experience by providing clear information and facilitating electronic payment processes (Tran Ba Thai, 2005).
These information can be represented in the form of text, images, videos and audios
When evaluating images, it's essential to determine if they can be zoomed out and whether they are three-dimensional (3D) in nature A thorough examination of these features is crucial for accurately assessing the quality of the system.
The name and loading speed of an electronic payment website significantly influence users' first impressions An appealing interface that is compatible with all browsers, supports multiple languages, and provides accurate information is essential for creating a positive user experience.
1.3 Indicators to assess market share expansion
Revenue represents the total economic benefits a business generates during an accounting period through its production activities and regular operations, ultimately contributing to the growth of equity.
Revenue of the business including sales, service provider revenue, financial operations and the unusual activity
Revenue encompasses all amounts received or expected to be earned from transactions, including the sale of goods and the provision of services, as well as any additional surcharges and fees beyond the selling price.
Revenue serves as a key indicator of a business's potential to grow its market share When a company's sales of products and services rise more significantly than those of its competitors, it indicates a greater capacity for market expansion Therefore, comparing a business's revenue with that of its rivals in the same industry is crucial for evaluating its competitiveness and market position.
Market share refers to the portion of the market that a company controls regarding its products and services Businesses with a significant market share can dominate their industry, providing them with a competitive edge This metric also serves as an indicator of the market's growth potential and the scalability of a company's operations.
Market share = sales of the business / total sales of the market
Or market share = number of products sold by the enterprise / total market consumption
Market share reflects the consumption of services and products by enterprises in relation to the overall market To effectively increase market share against competitors, businesses must implement strategic pricing policies, including necessary discounts, particularly when entering new markets Additionally, assessing relative market share is crucial for understanding competitive positioning.
Relative market share = The turnover of enterprises / The sales of competitors or relative market share = Total product sales of businesses / Total products sold by competitors
- If the relative market share is greater than 1, the competitive advantage of the business
- If the relative market share is smaller than 1, the competitive advantage of the opponent
- If the relative market share by 1, the competitive advantage of enterprises and opponents alike
1.3.3 The number of business cooperation partners
Partners, customers refers to collaborative relationships - cooperation between business enterprises together
Partners include two or more parties work together to enhance cooperation in the implementation of common goals
Construction of channels / mechanisms resolve disagreements / disputes, measures to promote cooperation and progress evaluation methods as well as to share the achievements of cooperation
Collaborating with partners who share a common objective is essential for successful partnerships A larger number of cooperation partners can significantly enhance business expansion and increase market share, providing a competitive edge over rivals.
Partners, partners are the term referring to the relationship of cooperation - cooperation between business enterprises together
Partners include two or more parties working together to enhance cooperation by pursuing common goals
Establishing channels / mechanisms for resolving disagreements / conflicts, measures for promoting cooperative relations and methods for assessing progress and sharing of cooperative achievements
Working together for common goals and shared interests are the criteria of the partnership
The greater the number of partnerships, the greater the incentive for an enterprise to expand its market share in business compared to its competitor
1.4 Practical experience on improving service quality to expand the market share of some enterprises
1.4.1 The experience Lazada of e-commerce business
Lazada is dedicated to expanding its market share by enhancing customer service quality To achieve this, the company is focused on upgrading its facilities and information technology According to Lazada's leadership, improving service delivery is the most effective strategy for market expansion The company has implemented various solutions to achieve these goals.