công trình customers behavior on intention to purchase on online shopping in vietnam

The study measures six factors: Service quality, information quality, interface design quality, perceived ease of purchasing online, perceived usefulness of purchasing online, and behavi

BỘ GIÁO DỤC VÀ ĐÀO TẠO ĐẠI HỌC KINH TẾ TP HỒ CHÍ MINH

CÔNG TRÌNH DỰ THI

TÊN CÔNG TRÌNH:

CUSTOMER’S BEHAVIOR ON INTENTION TO PURCHASE ON ONLINE SHOPPING IN VIETNAM

ĐỀ TÀI THUỘC KHOA/VIỆN: QUẢN TRỊ - ADF002

MSĐT (Do BTC ghi):

TP Hồ Chí Minh – 2023

Nguyễn Hoàng Quế Trân (Leader)

Bùi Ngọc Quí

Đồng Mỹ Linh

Nguyễn Minh Nhật

ABSTRACT

Online shopping is rapidly expanding around the world and gradually replacing brick-and-mortar stores Almost three decades have passed since the first introduction in

1994, and over 2,64 billion people worldwide now use this service (Yaguara, 2023) With multiple effective transactions, e-commerce platforms provide customers with convenient services In addition to saving time and simplifying product selection, customers are also able to find interesting items at affordable prices In essence, e-commerce is an online platform that facilitates sales and purchases of goods and services To increase customer purchases, businesses are increasingly relying on e-commerce to develop their business strategies In terms of population, more than 60%

of Vietnamese users buy online, ranking 13th globally (Repota, 2023) It is potentially lucrative for online retailers to enter a country with such a high level of population as Vietnam In the context of B2C e-commerce in Vietnam, this study examines the factors influencing customers' purchase intentions The study measures six factors: Service quality, information quality, interface design quality, perceived ease of

purchasing online, perceived usefulness of purchasing online, and behavioral intention

to purchase online These factors have a positive impact on the purchase intentions of Vietnamese e-shoppers

Keywords: online shopping, e-commerce, service quality, information quality, interface design quality, perceived ease of purchasing online, perceived

usefulness of purchasing online, behavioral intention to purchase online.

(Source: Tran Anh Vu et al., Journal of Business and Management Sciences, 2020, Vol 8, No 3, 85-88)

TABLE OF CONTENTS

ABSTRACT I

1 INTRODUCTION III 1.1 Introduction background III 1.2 Research questions IV 1.3 Research objectives V 1.4 Research structure V

2 RESEARCH METHODOLOGY V 2.1 Research design and framework VI 2.2 Research hypothesis: VII

3 RESULTS AND DISCUSSION IX 3.1 Research approach IX 3.2 Measurement scale XI

4 CONCLUSIONS AND RECOMMENDATIONS XIII

5 REFERENCES XIV

1 INTRODUCTION

1.1 Introduction background

Nowadays, in Vietnam technology seems to play a dispensable role in everyone's life Just by having a smartphone, people can solve many things in life with just a touch Internet users in Vietnam have increased rapidly in recent years, reaching over 70 million users in 2021 (Figure 1), and smartphone adoption rates in Vietnam are among the highest in Southeast Asia, with over 80% of the population owning a smartphone (Figure 2) This outstanding growth has greatly impacted the development of e -commerce platforms in Vietnam

Figure 1 Internet users in Vietnam from 2013 to 2023

(Source: Vnetwork)

Figure 2 Internet users in Vietnam from 2013 to 2023

(Source: Vnetwork)

The development of e-commerce has been driven by a combination of factors,

including the increasing internet access, the growing popularity of smartphones and mobile devices, and the rise of a tech-savvy population As a result, Vietnam is

expected to be the fastest-growing e-commerce market in Southeast Asia by 2026, with e-commerce Gross Merchandise Value (GMV) reaching 56 billion USD by 2026, 4.5 times the estimated value of 2021, according to a report by Facebook and Bain & Company (VNA Vietnamplus 2021, 26th November)

1.2 Research questions

In this study, the research aims to find out what influences Vietnamese when buying online, the following research questions are as below:

- What are the factors that influencing Vietnamese to purchase online?

- How do they feel about shopping online?

1.3 Research objectives

Understanding consumer psychology and behavior plays an extremely important role

in e-commerce, especially online shopping platforms Therefore, this study

investigates the factors influencing the online purchasing behavior of Vietnamese consumers by analyzing the relationship between their purchase intention and various contributing factors Specifically, the research will exploit information from

customers with different genders, ages and income sources about their behavior when shopping on online platforms

This research was conducted :

- To identify the factors that influence customers' decision to make purchases online

- To investigate the relationship between customers' demographic characteristics and their online shopping behavior

This study aims to develop a new model that identifies the key factors contributing to the success of e-commerce transactions in Vietnam By understanding these factors, Vietnamese businesses can develop effective and sustainable e-commerce strategies

1.4 Research structure

There are four main parts of the study and the next section will mention the research methodology Then the results and discussion will be reported after analyzing the data from the survey and internet Conclusions and recommendations will be given at the end of the paper

2 RESEARCH METHODOLOGY

In this study, we employ a quantitative framework to describe the consumption

patterns of online shoppers The use of post positivist claims for knowledge

development (e.g., reduction to specific variables and suppositions and questions, use

of instrument and observation, and the test of propositions) is one form of exploration

that is known as the quantitative approach, according to Creswell (2003) The

investigator also uses strategies of inquiry similar to trials and checks and gathers data

on instruments that are intended to yield statistical data The term "thesis-testing exploration" is frequently used to refer to quantitative exploration Statements of propositions serve as the starting point for studies, from which exploration hypotheses are inferred Additionally, an experimental design is created in which the relevant variables - also known as the dependent variables - are monitored while the goods of named independent variables Subjects included in the study are named arbitrarily to reduce errorand to cancel bias

2.1 Research design and framework

This study's model was created using the TAM model, which has six components These are: “Website Service Quality (WSQ), Website information Quality (WIQ), Website interface quality (Command), Perceived utility of coppingonline (PU), Perceived Ease of copping online (PE) and Behavioral Intention to buy online (BI)”( Tran Anh Vu et al., Journal of Business and Management Sciences, 2020, Vol 8, No

3, page 86).The research model utilized hypotheses to illustrate the relationship between the following factors:

Figure 3: Research model

(Source: Tran Anh Vu et al., Journal of Business and Management Sciences, 2020,

Vol 8, No 3, 85-88)

2.2 Research hypothesis:

“Leedy et al (2001) suggest that hypotheses are constantly generated in the human mind as we attempt to understand current, everyday events.” (Tran Anh Vu et al., Journal of Business and Management Sciences, 2020, Vol 8, No 3, page 87) By establishing a set of expectations about cause and effect, we can understand and examine situations in our environment The hypothesis acts a dispensable role because

it guides the research To test the effectiveness of the research framework, there are 9 hypotheses that we propose:

H1: The Usefulness of Online Shopping and Quality of Web Service have a positive relationship

H2: The Ease of Using Online Shopping Platforms and Quality of Web Service have a positive relationship

H3: The Usefulness of Online Shopping and Quality of Web Information have a positive relationship

H4: The Perceived Ease of Purchasing Online and Web Information Quality have a positive relationship

H5: The Perceived Usefulness of Purchasing Online and Web Interface Quality have a positive relationship

H6: The Perceived Ease of Purchasing Online and Web Interface Quality have a positive relationship

H7: The Perceived Ease of Use and The Perceived Usefulness of purchasing online have a positive relationship

H8: The Ease of Using Online Shopping Platforms and The Behavioral Intention to purchase online have a positive relationship

H9: The Perceived Usefulness and The Behavioral Intention to purchase online have a positive relationship

A preliminary survey was carried out as a precursor to the main study, aiming to assess the reliability and validity of the study's variables and constructs As part of this

preliminary survey, a questionnaire was distributed to participants via email, targeting

an estimated group of 62 individuals Invitations were extended to potential subjects through social media, providing a succinct overview of the study's objectives and encouraging their participation by completing the survey online through the Google Forms survey tool

The questionnaire specifically targeted individuals involved in e-commerce business management, e-selling, and e-customers in Vietnam from November 9th 2023 till November 14th 2023 Comprising 11 questions divided into two parts, the

questionnaire sought valuable insights from participants in these key areas:

Part 1: Information about survey subjects: comprises five questions that provide basic demographic information about the respondents

Part 2: Information about people's perceptions after using online shopping platforms with 6 questions designed according to 7 different levels (1 = Extremely disagree; 2 = Disagree; 3 = Slightly disagree; 4 = Normal; 5 = Slightly agree; 6 = Agree, and 7 = Extremely Agree)

Reliability pertains to the degree of consistency exhibited by a scale when

measurements are repeated The assessment of reliability is commonly known as reliability analysis, involving an examination of the systematic rate of variation within the scale This entails establishing the correlation between scale ratings obtained from various regulatory agencies Hence, if the correlations identified in the reliability analysis are high, the scale is deemed to yield consistent results and is considered reliable In this research, the authors employed Cronbach's coefficient α to evaluate the reliability of measuring structural variables This ensured that the scales designed for the questionnaire were highly representative of each variable

Validity, on the other hand, involves obtaining accurate and precise results from the collected data Essentially, valid measurements lead to reliable and accurate

conclusions, enabling the results of a sample to be regarded as valid representations of the larger population In this study, the authors utilized pilot testing to assess the validity of the variables and constructs, followed by an extensive survey involving a

large number of participants across different domains All items investigated in the study were found to be valid

3 RESULTS AND DISCUSSION

3.1 Research approach

The survey gathered data on participants' gender, age, experience using e-commerce websites and online shopping experience The specific parameters are detailed in graphs and tables below:

X

3.2 Measurement scale

Table 1 Characteristics of Sample Demographics

2-5 million/month

5-10 million/month

>10

Have you ever bought products or

experienced online shopping services?

How often do you visit

The sample is relatively young, with 85.5% of respondents being 17-22 years old The sample is also relatively affluent, with 56.5% of respondents having a monthly income of less than 2 million dong, but 30.6% having a monthly income of 2-5 million dong and 12.9% having a monthly income of more than 5 million dong All of the respondents have visited an e-commerce website and have shopped online before

The most common frequency of website visits is 1 time/week (37.1%), followed by 2 times/week (22.6%), 3 times/week (11.3%), and more than 3 times/week (29%)

Overall, the table shows that the sample is young, affluent, and experienced with

online shopping

Table 2 Customer satisfaction level with online shopping

Factors/

Web Service

Quality

%

14,52

%

9,68

%

6,45

%

% 8,06% 20,97% 25,81% 6,45% Web

information

Quality

%

11,29

%

20,97

%

1,61

%

1,61

%

% - 4,84% 16,13% 25,81% 12,9% 1,61% Interface

Quality

%

19,35

%

8,06

%

8,06

%

% 1,6% 1,6% 19,35% 16,13% 16,13% 6,45% Perceived

ease of use

%

9,68

%

11,29

%

12,9

%

Perceived

Usefulness

of

purchasing

online

%

6,45

%

25,81

%

%

%

%

14,52

%

30,65

%

Behavioral

Intention to

purchase

online

%

20,97

%

20,97

%

% 11,29% 29,03%

Notes: 1: Extremely Disagree; 2: Disagree; 3: Slightly Disagree; 4: Normal; 5:

Slightly Agree; 6: Agree, 7: Extremely Agree

The table shows that Vietnamese customers are generally satisfied with online

shopping The highest satisfaction levels are for the quality of online shopping web,

information quality, and the ease of shopping The lowest satisfaction levels are for behavioral intention to purchase online and perceived usefulness of purchasing online Overall, the table suggests that Vietnamese customers are increasingly embracing online shopping This is likely due to a number of factors, such as the convenience of online shopping, the wide variety of products available online, and the increasing affordability of internet access in Vietnam

Businesses that are targeting Vietnamese online shoppers should focus on providing high-quality web services, information, and interfaces They should also make it easy for customers to use their websites and find the products they are looking for

4 CONCLUSIONS AND RECOMMENDATIONS

Based on findings from a survey examining the current state of e-commerce in

Vietnam, the author conducts an analysis underscoring the significance of key factors within the model: Web Service Quality, Web Information Quality, Interface Quality, Perceived Ease of Use, Perceived Usefulness of online purchasing, and Behavioral Intention to purchase online The research emphasizes crucial points that e-commerce companies should prioritize in their consumer-focused activities:

1-The e-commerce website must offer sufficient service quality, providing customers with useful services to facilitate easy product selection, time and cost savings, and the ability to choose the right product of desired quality

2-Attention should be given to the information quality of e-commerce websites, ensuring completeness, accuracy, reliability, and a focus on providing necessary information for customer reference and product selection, beyond one-dimensional information from suppliers

3-Special emphasis on the quality of the e-commerce website interface is crucial The interface should be user-friendly, simple, and equipped with various features and utilities, enhancing the ease of use for customers during their shopping journey

Furthermore, the research highlights the importance for managers overseeing

e-commerce websites to consider customer preferences It recommends that services and