Khóa luận tốt nghiệp: Factors affecting satisfaction and reuse intention of Hanoi’s customers using online delivery services

GRADUATION THESISMAJOR: ECONOMICSTopic: Factors affecting satisfaction and reuse intention of Hanoi’s customers using online delivery services INSTRUCTOR: Dr.. Thispresents a significant

GRADUATION THESISMAJOR: ECONOMICS

INSTRUCTOR: Dr Nguyen Thuy Anh

STUDENT: Nguyen Yen Linh

CLASS: QH-2020-E Economics 5

PROGRAM: Honors

Hanoi, October 2023

GRADUATION THESISMAJOR: ECONOMICS

Topic: Factors affecting satisfaction and reuse intention of Hanoi’s

customers using online delivery services

INSTRUCTOR: Dr Nguyen Thuy Anh

STUDENT: Nguyen Yen Linh

CLASS: QH-2020-E Economics 5

PROGRAM: Honors

Hanoi, October 2023

I hereby declare that this paper was carried out by me under the guidanceand supervision of Dr Nguyen Thuy Anh; and that the work contained and theresults in it are true by the author and have not violated research ethics The dataand figures presented in this thesis are for analysis, comments, and evaluationsfrom various resources by my own work and have been duly acknowledged in the

reference part In addition, other comments, reviews and data used by other

authors, and organizations have been acknowledged, and explicitly cited I willtake full responsibility for any fraud detected in my thesis The University of

Economics and Business is unrelated to any copyright infringement caused by my work (if any).

Hanoi, October 2023

AuthorNguyen Yen Linh

University of Economics and Business - Vietnam National University, Hanoi, for

organizing, teaching, and imparting the best knowledge to me, as well as creating

a conducive environment for me to conduct and complete this graduation thesis.This work would not have been possible without the support of Dr Nguyen ThuyAnh I would like to express my sincere gratitude to her for her patient direction,passionate support, and helpful critiques while I was working on this paper

Also, I would like to thank the 624 persons who took part in my survey to help thestudy acquire objective data There were still many difficulties during the

implementation of this work due to my limited knowledge and experience As a

result, the study cannot avoid inaccuracies Please provide constructive criticismand suggestions to help me improve my work

Nguyen Yen Linh

LIST OF FIGURES - - 55-52555222 iv

INTRODUCTIO 1

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3 Research subjects and scope 3

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1.2.4 Factors affecting customers’ reuse intention . - 211.3 Research model

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3.2.1 Internal consistency reliability test resuÏts - -+-«-s+ 35

3.2.2 Convergent validity assessment

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4.2 Proposed recommendations for online delivery services providers 49

CONCLUSION

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2.1 Theoretical COMMIDUTION :.:.:s:ssssssssssssssessesssscsssssssssssszsesesssasosossesesesasesoss 52

2.2 Practical COMtIDUTION :.:.:s:sssssesecsssssesesssossssssescsessszssesessasszssaseneasazssesore 53

2 Limitations and future research directions

REEFERENCES St nhe 55APPENDIX St rre 68

ATM Automated teller machine

AVE Average variance extracted

B2B Business-to-business

B2C Business-to-consumer

CR Composite Reliability

EBI E-Business Index

ECM Expectation Confirmation Model

EFA Exploratory Factor Analysis

HTMT Heterotrait-Monotrait Ratio

ITU International Telecommunication

Union

MB Mobile banking

PLS Partial Least Squares

PLS-SEM Partial Least Squares Structural

Equation Modeling

SEM Structural Equation Modeling

SERVPERF Service Performance

SERVQUAL Service Quality

SMS Short Message Service

TAM Technology acceptance model

TRA Theory of Reasoned Action

of Technology 2VIF Variance Inflation Factor

Table 2 Final measurement scale 24

Table 3.1 Descriptive demographic statistics of 32

respondentsTable 3.2 Descriptive statistics of the respondents’ habit 34

of using online delivery services

Table 3.3 Scale reliability 36 Table 3.4 Outer loadings 37 Table 3.5 Findings of Discriminant Validity 39 Table 3.6 Heterotrait - Monotrait Ration (HTMT) ratio 41

Table 3.7 Path coefficient test results 42Table 3.8 Results of multicollinearity testing through 43

Inner VIF ValuesTable 3.9 Adjusted R? value 44 Table 3.10 Effect size f? 44 Table 3.11 Q values 45Table 3.12 Results of direct effect 46

LIST OF FIGURES

Figure Content Page

Figure 1.1 Technology Acceptance Model (TAM) 16

1 Source: Venkates and Davis (1996)Figure 1.2 The Expectation Confirmation Model 17

(ECM) Source: Bhattacherjee (2001)

Figure 1.3 Proposed research model 22 Figure 2 Research process 23

Figure 3 Path Analysis showing path coefficients 47

and T-values

of human life According to the International Telecommunications Union (ITU),more than 66% of the world's population, or 5.3 billion people, utilize the Internet

by 2022 Nearly three-quarters of the world's population over the age of ten own

a mobile phone, demonstrating the global reach of internet usage Technology hasaltered the way people live, enjoy themselves, shop, and work

Statistics show that by September 2022, Vietnam have more than 72 million

Internet users (73% of the population) With this number, Vietnam is the countrywith the 12th biggest number of Internet users in the world, with the Internet

economy reaching 23 billion USD in 2022 and is expected to reach 49 billion USD

in 2025 (VnEconomy, 2023) Along with technology, e-commerce in Vietnam isexpanding faster than ever, particularly in major cities such as Hanoi and Ho ChiMinh City In the announcement of the Vietnam E-commerce Index Report 2022

by the Vietnam E-commerce Association, Hanoi's e-business index (EBI) ranked2nd in the country, reaching 85.9 points The EBI index is composed of three

component indices: human resources and information technology infrastructure,

business-to-consumer (B2C) e-commerce transactions, and business-to-business

(B2B) e-commerce transactions.

Without a doubt, e-commerce has made purchasing, selling, and exchanging itemseasier than ever before, particularly with the help of online delivery services Usingonline delivery services is becoming more common in big cities, and it is

progressively becoming an unavoidable trend for consumers due to the

similar services is becoming increasingly fierce, notably in high-demand areas likeHanoi If the Vietnamese delivery service industry had only a few service

providers in the early 2000s, the online delivery business had blossomed, with

over 50 companies competing, from Vietnamese enterprises like VNPost andViettelPost to foreign entities such as Kerry Express or DHL Express Thispresents a significant challenge for online delivery service providers inmaintaining and improving service quality to fulfill client expectations andimprove customer satisfaction, therefore increasing the continuance intention

In fact, customer satisfaction and intent to reuse services play a critical influence

in a company's success or failure Customers who are satisfied with a company'sservices are more likely to write favorable reviews, share information with others,and utilize the service again in the future Previous research indicates that boostingcustomer retention by 5% can reduce operational costs by 18% (Crego & Schiffrin,1995) and contribute to profits increasing by 25% to 95% (Reichheld & Sasser,

1990) Dissatisfaction, on the other hand, can result in client loss, an unfavorable

brand image, and a reduction in corporate income and profits

As a result, a study into the factors affecting satisfaction and intention to reuseonline delivery services is critical By better understanding these critical factors,implications can be conveyed for businesses to change and improve the quality oftheir services, create better customer experiences, and increase their market

competitiveness Furthermore, the application of this research's findings can assist

e Determine the level of factors affecting Hanoi citizens’ satisfaction and

reuse intention towards online delivery services.

e Provide suggestions for online delivery services providers to improve

Hanoians’ satisfaction and reuse intention

3 Research subjects and scope

e Research subject: Factors affecting satisfaction and reuse intention ofHanoi’s customers using online delivery services

e Research scope:

To achieve research objectives and solve research tasks, this study used

quantitative research methods The quantitative research method consists of anonline survey for consumers of online delivery services in Hanoi The survey hascollected 624 samples in total The survey was conducted to collect primary datavia an online survey link, the cited survey questionnaire has a total of 27 observedvariables (the question used a 5-level Likert scale) for quantitative search Theauthor analyzed the data with PLS- SEM using Smart PLS 3.3.3

6 Outline of the research

e Chapter 1: Literature review and analytical framework

e Chapter 2: Research methodology

¢ Chapter 3: Research findings

e Chapter 4: Discussion and recommendations

1.1.1 Vietnamese research

Vo Thanh Truc et al (2021) evaluated the factors impacting customer satisfaction

for express delivery services provided by the Vinh Long City Post Office

Empathy; delivery manner; responsiveness and service capacity; tangibles and reliability of the shipping corporation (ordered by declining influence) are factors

that positively affect customer satisfaction for express delivery services Thedegree of influence of these factors varies, according to the conclusions of thisstudy on the factors affecting consumer satisfaction with Vinh Long Post's expressdelivery service Customer satisfaction is most influenced by the postal staff'sempathy and delivery manner, followed by responsiveness and service capacity,

reliability, and tangibles As a result, the Post Office must pay more attention to

customers' emotions both during and after the transaction, improve service design

to increase convenience and convenience at the transaction location, and prioritize customers’ interests Simultaneously, in order to improve customer happiness, the Post Office focuses more on packing and preserving items during shipping, as well

as teaching delivery staff communication skills and competency

Le Son Tung et al (2022) have similar results in the study “Factors influencingcustomer satisfaction of service quality: The study in Haiphong branch BeeLogistics Join Stock company” The paper uses quantitative methods and applies

the SERVPERF model of Cronin and Taylor (1992), surveying 186 customers The results show that there are five factors affecting customer satisfaction with

Le Hoang Viet Phuong (2020) explored and measured the factors affectingcustomer satisfaction in cargo delivery services in Vietnam Notably, theresearchers created a new scale to measure the effect of pricing on consumersatisfaction The authors conduct group talks and expert conversations beforeanalyzing 1,729 genuine responses based on five factors: resource, service

capability, management capacity, brand repute, and price Exploratory Factor Analysis (EFA) results demonstrate that all independent variables have a

substantial effect on customer satisfaction In this case, the most influential

component is brand reputation, while the least influential factor is management capacity Furthermore, the study found that price has an impact on customer

satisfaction in the context of cargo delivery Based on such, the researchproposes essential management solutions to boost customer happiness, as well asnew scales and ideas for future research in a new field and country

In the broader context of E-logistics, Ta Thi Yen et al (2022) did a study on theimpact of E-logistics service quality on customer’s satisfaction and loyalty 401

data points were collected from Vietnamese consumers using the survey

questionnaire The data was examined using the least-squares method (PLS-SEM).According to the findings, customer service, product quality, information quality,delivery service, perceived cost, and reverse logistics all have a beneficial impact

on customer loyalty via customer satisfaction Customer satisfaction, according tothe studies, is directly tied to client loyalty The research recommends that service

providers upgrade and improve the quality of their offerings.

perceived usefulness The study’s objective was to identify and measure factorsimpacting on satisfaction and reuse intention of customers using online motorbikeservices in Ho Chi Minh City The findings revealed that all five criteria influencedcustomer happiness, and that satisfaction and habit influenced reuse intention Thestudy also recommended managerial implications for improving the quality of

online motorcycle services.

Dao Cam Thuy and Nguyen Ngoc Quang (2022) also found that service quality

had an impact on customer satisfaction, along with reputation, and customer trust

in the research “Factors affecting satisfaction and intention to repurchase retailbanking services in Vietnam” Survey results of 605 customers have shown that 6factors affect positively the intention of individual customers to repurchasebanking services In the transition from satisfaction to intention to repurchase theservices, there are two moderating variables included in the study, which areswitching costs and commitment from the relationship The research results can

be suggestions to help customers improve their intention to use the services again

at Vietnamese commercial banks

1.1.2 International research

Uzir Hossian et al (2021) conducted a study in Dhaka, Bangladesh to investigate

the effects of service quality of home delivery personnel and perceived value oncustomer satisfaction, with trust playing an intervening role Data was collected

from 259 respondents who received home delivery services, using a structured

perceived value, and trust Trust mediated both the relationship between servicequality and customer satisfaction and the relationship between consumerperceived value and satisfaction The findings help to construct and validate atrust-based satisfaction model by expanding the SERVQUAL model to includeperceived value in the presence of trust while adhering to expectationdisconfirmation theory This study provides managers with insights intodeveloping reliability and trust in their service delivery workers.

In Islamabad, Pakistan, Muhammad Wassem et al (2022) also investigated factors affecting customer satisfaction in home delivery service Four hundred home

delivery service users were polled through email The Smart PLS framework usespartial least squares structural equation models (PLS-SEM) to assess conceptualmodels These studies emphasize the significance of service quality, perceivedvalue, and trust in determining customer happiness Trust enables a link to beformed between a customer's happiness and their impression of the value of the

service, as well as between a customer's satisfaction and how much they like using

the service These findings, based on Expectation Rejection Theory, broaden theSERVQUAL model by accounting for perceived value in the presence of trust,

assisting in the development and validation of trust-based customer satisfaction models Using the study's findings, managers can instruct their service providers

on how to be more dependable and trustworthy

Focusing on the impact of service convenience on customer satisfaction in home

delivery, Syeda Marium Mehmood and Arsalan Najmi (2017) examined the effect

of five types of service convenience namely decision, access, transaction, benefit

and post-benefit The service convenience model is used to identify the consumer'sexperience with various conveniences encountered at various stages of homedelivery Data was obtained for this purpose from 230 individuals who had usedthe home delivery service while shopping online After the application of EFA,regression analysis was used as a statistical tool to test the hypotheses The study'sfindings demonstrate that, with the exception of access convenience, allindependent factors have a positive and significant impact on customersatisfaction This demonstrates that customer happiness is unaffected by service

provider accessibility because they view internet shopping as an efficient virtual store where they can finish the purchasing process themselves It is suggested that

in order to boost consumer happiness, internet retailers should focus on providing

Sector in Myanmar” aims to identify the key factors influencing the intention to

reuse mobile banking (MB) services in Myanmar The research model incorporates six factors, namely, social influence, word-of-mouth (WOM), trust,

system quality, user satisfaction, and perceived efficacy, and assesses their degree

of influence on customer behavior with regard to MB Structural equation

modeling (SEM) was used to analyze the data and test the hypotheses The analysis

of the survey data collected from 275 MB users of private banks in Myanmar

indicates that customer intention to reuse mobile banking services is significantly influenced by social influence, user satisfaction and perceived efficacy The

effects of WOM, trust and system quality on the reuse of mobile banking, however,were found to be insignificant

Rizvi Khan and Sirion Chaipoopirutana (2020) had research “Factors InfluencingUsers’ Behavioral Intention to Reuse Mobile Financial Services In Bangladesh”

Based on various technology acceptance models such as TAM, UTAUT, and

comparable studies, a model was built and offered According to the findings,perceived ease of use influences perceived utility of mobile financial services,

while perceived ease of use, perceived usefulness, and security have no effect on trust in terms of behavioral intention to reuse mobile financial services in

Bangladesh With the exception of trust and perceived financial cost, theremaining variables such as perceived usefulness, perceived ease of use, security,perceived risk, social influence, and facilitating conditions all have a significantimpact on behavioral intentions to reuse mobile financial services in Bangladesh.The researcher tried to identify factors influencing both bank and non-bank users

to reuse mobile financial services for their digital transactions.

There is also a variety of research on applications satisfaction and intent to reuse.Ali Abdallah Alalwan (2020) did a study about factors affecting customer e-satisfaction and continued intention to reuse mobile food ordering apps Theresearch also proposes an integrated model based on the extended Unified Theory

of Acceptance and Use of Technology (UTAUT2), with data that was collected

from a convenience sample of Jordanie customers The main results are based on

structural equation modeling and support the role of online review, online rating,

online tracking, performance expectancy, hedonic motivation, and price value on e-satisfaction and continued intention to reuse.

The study “Analysis of factors affecting continuance use of intention of theelectronic money application in Indonesia” by Danarto Tri Sasongko, Putu WuriHandayani and Riri Satria (2021) uses an Expectation-Confirmation Model (ECM)framework to explore the Perceived Usefulness, Perceived Security and Privacy,

Trust, and Satisfaction factors that affect the continuance intention According to the results, Perceived Usefulness, Satisfaction and Trust have the strongest

influence The research provides understanding and guidelines for increasing the

continuance use intention of electronic money applications, especially in developing countries.

1.1.3 Research gap

Although the topic of factors impacting satisfaction and reuse intention is not recent, research on this topic in the context of online goods delivery services is limited in the international literature Most studies concentrate on other services, such as banking and online shopping (O Pappas et al., 2014; Afira & Yuliati, 2019; Phyo Min Tun, 2020; Febrian et al., 2021; Ligaraba et al., 2023) Other studies

focused on applications such as food ordering apps, electronic money apps, and

so on (Alalwan, 2020; J.-C Choi, 2020).

While several studies in Vietnam have looked into consumer satisfaction and the intention to reuse online delivery services, they have only looked at specific companies (Le et al., 2022; Vo et al., 2021), making it impossible to generalize the findings to online delivery services in general.

Clearly, to gain a more comprehensive understanding of the factors affecting

satisfaction and reuse intention in online delivery services, further research is needed, both in Vietnam and in other international contexts Broader studies that

encompass a range of online delivery services providers would contribute toknowledge in this area, aiding the development of strategies to enhance customersatisfaction and encourage reuse in the industry

courier service consists of immediately collecting the package from the sender and

then handing it over to the recipient (Semerádová & Weinlich, 2022) Besides

convenience, delivery services provide time-saving solutions, reduced commuting stress, and broader access to products that may not be available locally They can accommodate people with restricted movement and provide a safer choice during

health crises Furthermore, delivery services frequently contribute to lowerimpulse purchases and can promote more sustainable consumption patterns by

optimizing delivery routes, potentially lowering overall environmental impact.

Online delivery services refer to the process of delivering goods or packages from

one location to another using internet-based platforms and services Popular online delivery services providers include companies like ViettelPost, DHL,

GrabExpress, and many others (VietnamCredit, 2020) These services offer

various options, including domestic and international shipping, express or standard delivery, and additional features like insurance, package tracking, and

customs clearance assistance for international shipments

Satisfaction is defined as a customer's assessment of a product or service in terms

of whether it matches their wants and expectations (Zeithaml & Bitner, 2003).Customer satisfaction, according to Kotler & Keller (2006), is described as a

person's emotion of joy or disappointment in comparing a product's perceived

performance to their expectations In the context of delivery services, customersatisfaction refers to the level of contentment or fulfillment felt by clients with the

overall delivery experience It can include the customer's view of the delivery provider's ability to meet or exceed their expectations, deliver the goods or service

on time, and provide a smooth and satisfying experience from beginning to end

Reuse intention is described as an individual's decision to purchase a specific

service from the same organization again after considering his or her current

condition and likely circumstances (Hellier et al., 2003) According to Kotler & Keller (2016), reuse intention is when a person or consumer is satisfied with a product that matches expectations with the performance he expects Reuse

intention in the context of delivery services can refer to a customer's inclination orwillingness to reuse a particular delivery service for future deliveries Based onprevious experience, it is a measure of the customer's intent to continue using thesame delivery service provider

1.2.2 Theoretical framework

¢ Technology Acceptance Model (TAM)

Several theoretical models have been developed and applied to study the

acceptance and usage behavior of information technologies, but the Technology

Acceptance Model (TAM) is widely used by researchers to describe the

acceptance of a particular technology by individuals, studying the influence ofhuman factors in the adoption of new technologies (Dillon & Morris, 1996; Lee etal., 2003)

TAM is one of the most influential extensions of Ajzen and Fishbein's theory of

reasoned action (TRA) in the literature Developed by Fred Davis in 1989, TAMfocuses on the psychological and behavioral factors that influence individuals'

intentions to use technology According to the model, perceived usefulness (PU)

and perceived ease of use (PEOU) are the most important drivers of an individual'sattitude toward adopting technology, which influences their intention to acceptand use it According to TAM, people are more likely to accept and adopt atechnology if they believe it will help them achieve their goals and tasks and issimple to use (Davis, 1989) It is still an important foundation for understanding

user acceptance and guiding the development and deployment of new technologies TAM is simple to understand yet has a high level of predictiveness in various scenarios due to its few variables.

Usefulness

External Behavioral Actual

Variable Intention System use

Perceived —

Easse-of-use

Figure 1.1 Technology Acceptance Model (TAM) 1 Source: Venkates and

Davis (1996)

e Expectation Confirmation model (ECM)

Studies based on major theories (e.g., TAM and UTAUT) in information systems

(IS) assume that once a technological service or product is used for the first time,

it can be used for a long time and that the factors affecting the first use and

continued use of the aforementioned innovation or system are the same (e.g.,(Davis, 1989) Karahanna et al., 1999) However, in recent studies, this style of

thinking has been widely criticized, and it has been proposed that ongoing use

should be explained by alternative structures (Daghan & Akkoyunlu, 2016) Inlight of the belief that a precise sustainable usage of a recently adopted technologycannot be offered, the phenomena of continuous use have been studied usingmultiple methodologies from diverse perspectives (Hayashi et al., 2004; Limayem

and Cheung, 2008; Larsen et al., 2009) The ECM created by Bhattacherjee (2001)

is one of the most prominent of these approaches.

The ECM was developed to disclose the variables affecting the continuanceintention (continuous use) of information technology users and has its origins inexpectation confirmation theory (Oliver, 1980), which is frequently utilized in themarketing business (Bhattacherjee, 2001) The ECM is concerned with the

compatibility of individuals' desires to continue using IS and customers' purchase decisions According to this concept, an individual's intention to continue using an information system is determined by three factors: satisfaction, the degree of

confirming users' expectations, and the users' post-usage opinions about the

benefits of the information system (Thong et al., 2006) Figure 1.2 depicts the relationships between the model's variables (Bhattacherjee, 2001).

Continuance Usage Intention

1.2.3 Factors affecting customer satisfaction

e Perceived service quality

Perceived service quality is a widely studied construct (Parasuraman et al., 1988;

Cronin and Taylor, 1992; Asubonteng et al., 1996) Perceived service quality is

defined as the customer’s assessment of the overall superiority or excellence of

the service (Zeithaml, 1988) According to Parasuraman et al (1985), the

customer’s assessment of overall service quality depends on the gap betweenexpectations and perceptions of actual performance levels Service quality is

therefore operationalized as a function of the magnitude and direction of the gap between perceived service and expected service.

Previous studies indicated that service quality of providers is a factor that can

influence customer satisfaction through their perception of actual experiences after

using these services (Sureshchandar et al., 2002) Kassim & Asiah Abdullah (2010)found that perceived service quality has a significant impact on customersatisfaction in e-commerce settings in two cultures — Malaysian and Qatari Then,

Haddad et al (2012) proved that perceived service quality had a positive impact

on customer satisfaction towards the rebranded telecommunication companies inJordan Thus, hypothesis H1 is suggested as follows:

HI(+): Perceived service quality positively affects customer satisfaction

of give-and-get components (for example quality or convenience) (Zeithaml,

1988) Additionally, value is a more personal and individualistic construct (Zeithaml, 1988).

Tarn (1991) confirmed that perceived value is a crucial factor in customers’evaluations of satisfaction and post-purchase behavior This result is similar toKuo et al (2009), Slack et al (2020), Kusumawati & Rahayu (2020) Therefore,hypothesis H2 is suggested as follows:

H2(+): Perceived value positively affects customer satisfaction

e Transaction convenience

To complete the purchase transaction of the service, a consumer must again investtime and energy As such, transaction convenience is defined as “consumers’perceived expenditures of time and effort to effect a transaction” (Berry et al.,

2002) Providing convenience during the transaction stage, in essence, allows the consumer to efficiently take possession of the acquired service Colwell et al.

(2008) found that transaction convenience, as a component of service convenience,

is a significant predictor of overall satisfaction in the context of personal cellular

telephone and internet usage Besides, (Mehmood & Najmi, 2017) argue that transaction convenience, along with access convenience, benefit convenience, and

post-benefit convenience, impact how satisfied customers are with the servicesprovided by online retailers during home delivery in Pakistan In online deliveryservices, flexible payments provide customers with more options and save themtime Thus, hypothesis H3 is suggested as follows:

H3(+): Transaction convenience positively affects customer satisfaction

e Perceived ease of use

According to Davis, perceived ease of use is defined as “the degree to which aperson believes that using a particular system would be free of effort” (Davis,1989) According to Deshpande and Zatman (1987), perceived ease of use caninfluence a consumer's perception of a product, with the customer preferring to

buy a standardized product over one that varies between areas This is mostly due

to the fact that customers acquire the specifications and characteristics of a

standardized product more readily and quickly than they can items that differ

among regions If the customers find the service or the technology difficult to learn and use, they will not choose the service In the case of online delivery services,

perceived ease of use could be a user-friendly interface, clear instructions, andintuitive design that can enhance the overall user experience and reduce anypotential frustrations or difficulties during the ordering and delivery process

Perceived ease of use is found to have a significant effect on the satisfaction ofGo-Car users in Pading City in the study of Ayunda et al (2019) Amin et al

(2014), Wilson et al (2021), Amalia & Fahrudi (2021) also have the same findings.

Thus, hypothesis H4 is suggested as follows:

H4(+): Perceived ease of use positively affects customer satisfaction

e Perceived usefulness

Perceived usefulness can be defined as people's perceptions of whether a new technology would transform the way they do business and improve their performance (Ajzen, 1991; Eriksson et al., 2005; Jahangir and Begum, 2008;

Rahman et al., 2017) Similarly, Davis (1989) defined it as "the degree to which a

person believes that using a particular system would enhance their job

performance" It indicates whether or not someone considers the technology to be useful for the task at hand Various studies have confirmed that perceived

usefulness has a positive influence on customer satisfaction with hospitalmanagement information systems (Lenny & Kridanto, 2019), China’s computer

industry (Wilson, Keni, et al., 2021), Gojek applications in Jabodetabek

(Suryatenggara & Dahlan, 2022) and so on Thus, hypothesis HS is suggested asfollows:

H5(+): Perceived usefulness positively affects customer satisfaction

1.2.4 Factors affecting customers’ reuse intention

Customer satisfaction is the overall emotional response of customers to a

perceived difference between prior expectations and perceived performance afterconsumption (Oliver, 1980) In general, if consumers' service qualityexceeds expected, they are satisfied; if it is lower than expected, they aredissatisfied; and if the value is the same as predicted, both contentment anddissatisfaction are possible

Several research have been conducted to investigate the relationship between

customer satisfaction and intention Zhang & Kim (2021) found that customer

satisfaction has a significant positive impact on reuse intention in the delivery platform in China In addition, customer satisfaction has also shown a positive

influence on reuse intention in the field of Internet banking (Y Choi & Sun, 2016;Park, 2019; Phyo Min Tun, 2020; Febrian et al., 2021) As a result, hypothesis H6

is proposed as follows:

Hồ (+): Customer satisfaction positively affects the reuse intention of customers

1.3 Research model

Based on the above hypotheses, the research model is proposed in Figure 1

Perceived service quality

HI

Perceived value

Perceived usefulness

Figure 1.3: Proposed research model

CHAPTER 2: RESEARCH METHODOLOGY

2.1 Research process

Theoretical Research model Research

basis and hypotheses questionnaire

+

Descriptive - Demographic statistics Data collecting

oa kK]

Statistics - Respondents’ habit statistics (n= 624)

Scale ~ Cronbach’s Alpha

: : #®—————

evaluation - Convergent & Discriminant validity

Structutral - Path coefficients & p-values

k————Ì

model - Multicollinearity test

assessment

- R2, 2, Q2 evaluate

Figure 2 Research process

2.2 Sampling and Data collection

The data collection procedure entailed delivering an online survey to people

throughout Hanoi from September 2023 to October 2023 The questions from prior studies were used to construct a survey questionnaire The questionnaire was divided into three sections: (i) general questions about the respondents'

experiences with online delivery services; (ii) more specific questions about the

factors under investigation, such as perceived service quality, perceived value,

transaction convenience, perceived ease of use , perceived usefulness, customer satisfaction and intention to continue using online delivery services and (iii)

demographic data questions The survey's construct measures were built on a point Likert scale, which was supported by past research: (1)- Totally disagree;

five-(2)- Disagree; (3)- Normal; (4)- Agree; (5)-Totally agree

The sampling method used is purposive sampling and the criteria for respondent

selection were online delivery services users Purposive sampling is selected as it

is useful when the researcher has limited resources, time, and workforce and aims

to specify in a particular case (Etikan, 2016) and to obtain objectivity of the

research that focuses on a particular issue (Wilson et al., 2019) This article focuses

on the online delivery services from different service providers Therefore, it is

necessary to select respondents who have used the service The scope of therespondent is users who reside in Hanoi, Vietnam Therefore, after distributingquestionnaire online for 2 months, the usable response that meets the criteria is

624 respondents

2.3 Measurement scale

The following table provides detailed information regarding measuring items,

scales, and their sources

Table 2: Final measurement scale

Code Measurement scale Sources

Perceived service quality

PSOI Online delivery services is very safe (Morton et

PS02 The speed of delivering orders is very fast al., 2016)

PS03 Receiving and delivery time is on time as expected.

PS04 Online delivery services is always available when

I need it.

Perceived value

PV0I The cost of using online delivery services is very | Dodds et al

reasonable (1991)

PV02 The quality and value I received was

commensurate with the amount of money I spend

PV03 The cost of using the service is suitable for my

budget

Transaction convenience

TC01 The payment method when using online delivery | Pham (2015)

Services is very simple.

TC02 The payment method when using online delivery

services is very quick

TCO3 Payment methods when using online delivery

services are very convenient (cash, e-wallet, )

TC04 I have not encountered any difficulties in

transactions when using online delivery services.

Perceived ease of use

PE0I I can easily use the online delivery services Pappas et al

PE02 Online delivery services help me find a delivery G014

unit quickly.

PE03 I can change delivery/pickup time easily

PE04 The web interface or application of the service

providers is simple and easy to use.

PU03 Information about the service provider is fully

displayed on the application/website, making mefeel more secure

PU04 Online delivery services help me save time when

đelivering goods.

Satisfaction

CS0I The online delivery services have met my needs | Pappas et al.

(2014)

CS02 The online delivery services have met my

expectations

CS03 I feel comfortable using online delivery services

CS04 I will advise friends/relatives/colleagues to use

online delivery services.

testing models in which seen and latent (non-observable) variables coexist (Byrne,

2013; Eygii, 2017) SEM has been used to test many theories because of its features of clearly considering errors in all analyses and revealing precise results

in error calculations, conducting many analyses at once, and facilitating themediation effect (Meydan and Sesen, 2015) Because of all of these benefits, SEMwas chosen as the analysis method in the study The software used for the analysis

of this research is Smart PLS 3.3.3

After cleaning the data and analyzing the statistical characteristics of the collected research sample, the author conducted PLS-SEM model analysis.

The first step includes assessing reflective measurement models The modelmeasures evaluation results through 3 indicators: Internal consistency, Convergentvalidity and Discriminant validity

e Internal consistency was assessed through two indicators: Cronbach's Alphaand Composite reliability Cronbach's Alpha > 0.6, Composite reliability

(CR) = 0.7 means that assessment model ensures internal consistency (Hair

et al., 2016).

e Convergent validity is the extent to which the construct converges in order

to explain the variance of its items Convergent validity was assessedthrough the criteria outer loading and Average variance extracted AVE The

model ensures convergent validity when the outer loadings are > 0.7 (Hair

et al., 2016) and AVE = 0.5 (Fornell & Larcker, 1981).

e Discriminant validity, which is the extent to which a construct is empiricallydistinct from other constructs in the structural model, was assessed through

testing the confidence interval within the HTMT (heterotrait — monotrait) The HTMT is defined as the mean value of the item correlations across constructs (i.e., the heterotrait-heteromethod correlations) relative to the

(geometric) mean of the average correlations for the items measuring thesame construct (i.e., the monotrait-heteromethod correlations) If HTMTvalue < 0.85, the model is considered to have discriminant validity (Clark

& Watson, 1995; Kline, 2015) Fornell and Larcker (1981) proposed the

traditional metric, as well as comparing each construct's AVE to the squared

inter-construct correlation (as a measure of shared variance) of that same construct and all other reflectively measured constructs in the structural

model—the shared variance for all model constructs should not be greater

than their AVEs.

When the measurement model is satisfactory, the next step in reviewing PLS-SEMresults is to evaluate the structural model The coefficient of determination (R?), the blindfolding-based cross-validated redundancy measure Q3, and the statistical

significance and relevance of the path coefficients are all standard assessment criteria that should be addressed.

e Structural model coefficients for the relationships between the constructs are derived from estimating a series of regression equations Collinearity must be investigated before examining structural links to ensure that it does

not bias the regression results This procedure is similar to evaluating

formative measurement models, except that the variance inflation factor (VIF) values are calculated using the latent variable scores of the exogenous

constructs Collinearity problems can emerge at lower VIF values of 3 to 5