(OUM OPEN UNIVERSITY MALAYSIA 4108950 RESEARCH PROJECT (BMBRS103) THE MARKETING FACTORS AFFECT ONLINE CUSTOMER'S SATISFACTION
THE CASE SUNMALL WEBSITE
Trang 2Advisor’s assessment
Trang 3Contents
LIST OF EIGURES «seo HH1 HghHRgR011181021013010110A1T-1-1101A0100701 3
LIST OF TABLES .cssssscscsossesessecsssscssscssssesssssssssnsecsesassseuuescessssssssssnssasessessssssessersonnssseseestans 4 ABBREVIATIONS .sssssssssssssccssssssssssssescessessecsstecsessuentasuuvecocsauensesouseceessuecsssansecasssseessssaseeeenace 5 ABSTRACT .ssssssecccssssssesessessssesensecssssseesserssscoesctssssuensesssnssneecescsssassenssnssossesersnsneneensnavaanaseesesnaness 6 CHAPTER I - INTRODUCTION .cesssssssssscssssnsscsssrsssssensecessessessssessssnseesssnunenssssseesess 8 1.1) Company Introduction «e-eeseeiiiriieiiiiisree 8 1.2 Research Introduction -ceeeseeeeseiiiiiiiiiriiiiie 9 1.2.1 Background researCh: -.ceeeieierrirriiiiirie 9 1.2.2 Problem statement eeeseseiieeiiiiiieiiiiii 10
1.2.3 Purpose Of the study eeseeeieiiiiiiiie 11
1.2.4 The scope of the research -eeeiiiiiieire 11 1.2.5 Research questÏO'S e-eeeiiiiiriiiiiiriiee 12 CHAPTER II - LITERATURE REVIEW cccsssssssssssssssscsnssesssssrecensseessesneeessssses 13 Z.1 Customer Satisfaction e-eeecerieiieiiiiiiieeiree 13 2.2 O0verview Marketing 7PPS c-eeeeeiieiiiee 13 2.2.1 7Ps Marketing History eceeiieeiiiiriieirii 13
2.2.2 Strategy of marketing 7P eeeeeiiiemiie 14
2.2.3 7P Marketing role and its importance in online shopping 21
CHAPTER HI: RESEACH MODEL AND HYPOTHESES 23
3.1 Research Model seeesesriiiiiiiiiiiiianriee 23
3.2 Research Hypotheses eeieirriieieiiaiane 24 3.3 Instrument(S eeeieeeriieiieiiieiiiiiiiiiiiaiiee 29
3.4 Research Participants eeeeneseeiiiiiiiiiiiiiiee 30 3.5 Procedure for Data Collection and Analyze 30
Trang 44.1 Demographic Characteristics of the respondents 32 4.2 Reliability AnaÌySÌS cceieiiiiiriiiiriiialiiiee 33
4.2.1 Correlation ofall variables statistiCs 34
4.2.2 _ Hypotheses Testing: ii 36
CHAPTER V: CONCLUSION coi 38
Trang 5LIST OF FIGURES
Figure 1: The Marketing Mix 4P’s and 7P’s Explained
Trang 6LIST OF TABLES
Table 1: Summary of Cronbach’s Alpha of the variables - - 5c 33 Table 2:Summary of Correlations of all variables cccsseiereirrrreeree 35
Table 3: Model Summary of all hypoflieses che 36
Table 4: Coefficients of all hypotheses - - cành, 36
Trang 8ABSTRACT
With strongly competition in the current economic condition, making a right strategy to get more customers is always big question for any company, especially, top managers Understanding customer and providing what customer’s need is the right way to keep loyal customers and earn more new customers The 7P marketing mix seems to be a guideline and an effective step for managers looking through it before
making strategic plan
PGFV Company is a new comer in online shopping industry They find out that people in Vietnam, they now are changing the way shopping and more switch to
buying products via internet They recognize that online shopping market in Vietnam is big and still have a change for them penetrating the market 7P marketing mix
variables are basic step to design the good strategy The aim of this research was to know the influences of 7P marketing mix variables, which consists of product, price, promotion, place, people, physical evidence and process on attracting consumer’s satisfaction in determining appropriate marketing strategy of and improve Sunmall website in Vietnam
Questionnaires were delivered to 500 respondents in different background of educational degrees, gender, years of age as well as monthly income
403 samples were returned and put into further researched and analyzed practices The reliability analysis, descriptive analysis, and hypothesis testing were statically measured in the study with the support of SPSS software
The results showed that among seven independent elements involved in examining
with dependent element, there were only 3 elements supported These independent variables include Price, process, and physical evidence The more price strategy will keep company attracting more customers Quickly process and react customer requirement is factor that can bring more customer loyalty Last but not least, well
Trang 10CHAPTER I - INTRODUCTION
1.1 Company Introduction
The company in case, PGFV Ltd Company is a Vietnamese startup company which was found in June 2014 The company is located in Ho Chi Minh City, Vietnam Its original business was not related to IT as well as Internet Recently, the company was launched an online service, Sunmall.vn, in order to enter the Internet market The main idea of the service is to provide the premium product from different
brand from Korea for customers; it tries to provide the better service and product
quality to customers
The issue in this case is that there are many companies doing e-commerce but they are unsuccessful for many reasons such as: lack of capital, poor marketing strategy,
lack of skill and experience, insufficient market research, no website traffic In
addition, online purchasing is also not a common method of buying goods and services in this country Buying online is somehow untruthful to consumers and people would like to pay in cash and have a look at the product before buying These behaviors prevent people to get used to online shopping
| Currently, there are two big cities in Vietnam, which are Hanoi, the capital, and Ho Chi Minh city, the biggest city located in the South Both have the population of more than 15 million people and are the main markets of online shopping business (tuoitre.vn) Currently, sunmall.vn operates in Ho Chi Minh City with more than 50 types of products in supply network There are many big competitors, who have succeed in the industry such as: Lazada, chotot, vatgia, etc The market is getting tougher as new comers are entering In which, there are some big players in online service business not only in Vietnam but also in the world Therefore, the challenge for Sunmall.vn is quite high ,
Trang 111.2 Research Introducfion 1.2.1 Background research:
‘Nowadays, the Internet is being widely used in daily life The existence of the Internet brought many advantages to individuals’ daily lives With the help of the medium, people can communicate, learn, entertain, buy products and get services Of course the disadvantages of it have long been discussed; as the virus threat, the risk of personal information theft, spamming etc However since the advantages outweigh the drawbacks, most of the people cannot resist bringing it to the center of their lives, Since the beginning of the Internet, individuals have shown interest to the Internet According to Internet World Stats’ statistics (2015) today more than three billion people linked to the Internet This number shows that 50 percent of the world population uses the Internet Especially, Asia countries dominate a large number of users Consequently, the Internet can be used for the competitive advantage by
organizations and actually it is a powerful source to use (Hamill, 1997; p.300)
‘The Internet have been using for several different purposes Besides that, it has also brought a different dimension to commercial activities The Internet has created a new market for both customers and organizations, and has been an alternative market to the traditional market Web sites provide a chance to search information about products/services, place a comment or give orders (Hoffman and Novak, 1996; 51) Therefore, the previous experiences of marketing has turned into a different segment
Now organizations are taking consider to provide different payment methods,
different shipping alternatives and even different web interfaces for different geographic ,
Trang 12affect online customers' behavior and directly provide suitable plan to attract more
customers
Philip Cotler, marketing expert, have studied on this topic Theories about marketing mix have been used to understand customer behaviors and develop an effective marketing strategy Moreover, it is impossible to think marketing without the Internet in today's world.“Online marketing is the topic that have been researched and made applications many times by researcher from past to nowadays Studies on online shopping investigated the marketing factors that influence online shopping as well as motives for, value of and antecedents of online buying As a result, the academic researchers and the business world started to focus on the consumer side of the online purchasing behavior and a lot of researches and articles were prepared to make guidance for the development of online shopping.,
1.2.2 Problem statement
\ vy:
There are millions of people online any time and they all are a potential consumer in the online market Since there are so many providers, the most important thing for organizations is to understand what are consumer wants and needs in this competitive business environment based on marketing mix
‘In the Internet shopping market since there is no face-to-face contact, analyzing and identifying marketing factors that influence the consumer satisfaction is vital Moreover, consumers have new demands in the Internet medium Therefore, it becomes more important to answer consumer's demands to retain the customer \
Being aware that customers are performing a major role in marketing, finding out
how the marketing factors that are essentially affecting the purchasing intentions are important Analyzing the process of shopping activities, how consumer decide and
make purchasing over the Internet and what they buy need to be identified by online
providers in order to satisfy and succeed in the competitive business environment Customer satisfactions are influenced by different factors such as price, product,
Trang 13place, promotion, people, process, and physical evidence so they show different
customer satisfactions
Previous research streams on online shopping satisfaction, investigated main factors
influencing online shopping adoption However there has been limited number of studies marketing factors affect online customers’ satisfaction regarding online shopping website In this study, research has been found out the marketing factors influence customers satisfaction through launching Sunmall.vn website and studied on the findings of the research
1.2.3 Purpose of the study
The purpose of this research is to examine and approach whether items in terms of price, product, place, promotion, people, process, and physical evidence will have
any influence on the online customer satisfactions under sunmall.vn website."
It is expected that the finding of the research will give an overall view of what marketing factors most attract online customer on Sunmall.vn website Then, PGFV
management team be able to use the projective result as reference on developing a better marketing strategies to retain and attract more online customers in Vietnam
1.2.4 The scope of the research
This study is conducted in the collaboration with PGFV Company The focused area of the study is in Vietnam and in online shopping market Therefore, the result of this study is most probably valid only in the case of studied company To define the scope of the research, these following points need to be kept in mind:
- The geographical market is Vietnam, a developing country where online services is on the development
- Vietnamese culture and purchase behaviors has significant effects on the studied case
- The target market is online shopping in Vietnam
Trang 14First, the Vietnamese market has specific characteristics which are different from
other foreign market In which, culture and purchase behavior of Vietnamese
consumers are determinant factors Thus, any generalization to other markets should
consider the cultural and market-related differences Additionally, the research is conducted with a startup company and in a small market segment The result of the research may not be correct in other configurations However, by taking a comprehensive literature review on related topics, this research tries to build a
common understanding about the subject The constructed framework would be
useful in other similar cases
The results in this research are aimed to equip the case company with background knowledge regarding its target business Therefore, main readers of this study are the
managers of the company For academic purposes, this study is also useful for the
ones who look for some specific areas of research, for example the Vietnamese
market, the online shopping market and services
1.2.5 Research questions
The aim of this study is to investigate the marketing factors that affect online
customer’s satisfaction through Sunmall website Therefore, the following
questions will be addressed in the scope of study:
How does price influence to online buying satisfaction?
Does product take any affect customers regarding buying decision through internet?
How does place take influence on online shopping satisfaction? What is the impact of promotion on online buying satisfaction? What is the relation between people and electronic commerce?
How does process take influence on buying decision of online customers? How does physical evidence take influence on online shopping satisfaction?
Trang 15CHAPTER II - LITERATURE REVIEW
2.1 Customer Satisfaction
One of the main areas focused on by organizations today is how to satisfy customers, because of the organizational benefit of customer satisfaction Customer satisfaction is linked to customer loyalty (Fornell, 1992) Customer satisfaction is also associated with building and maintaining strong customer relationship (Blattberg, et al, 2009)
Customer satisfaction can be viewed as a relationship of perceived value of service
and the expected value by customers If the perceived value of services matches
customer perceived expected value, then customer is said to be satisfied Kotler and
Armstrong (2013: P37) define customer satisfaction as “the extent to which a product’s perceived performance matches a buyer’s expectation.”
2.2 Overview Marketing 7Ps 2.2.1 7Ps Marketing History
According to Dr Philip Kotler, marketing mix is defined as a set of tools and tactical
marketing that companies collaborate to create the desired response in key markets (Kotler and Armstrong, 2004)
Trang 17Price: This is about how to set the suitable price for the product Price should not be
too high so that customers can afford buying, but not too low so that the company can have profit (Kotler and Armstrong, 2004, p.107)
Moreover, Kotler et al (2008, 663) presents seven different strategies for adjusting the price; discount and allowance pricing, segmented pricing, psychological pricing, promotional pricing, geographical pricing, dynamic pricing and international pricing For example from discount and allowance pricing could mention a quantity dis-count
and seasonal discount which are important also for sunmall.vn Quantity discount means lower prices for those who buy big amounts of products or services Seasonal
discounts are given when demand is low for certain products For example in spring, winter clothes are often sold on sale, because they are not needed anymore (Kotler et al., 2008, 663.) Kotler et al (2008, 664) divides segmented pricing into four different categories Customer-segment pricing means different prices for different customers For example entrance fee to an amusing park is cheaper for children than for adults Product-form pricing is that different forms of certain product have different prices For example fresh pineapple and canned pineapple are basically the same product but in different forms and also priced differently Time pricing is usual form for example for electric companies who offer electricity at night with lower price
Trang 18Promotional pricing is used in a short term way, when companies want to increase their sales (Kotler et al 2008, 666) Stores can for example lower the price of cheese temporarily which gets people to come to the store, and may be at the same time, they buy something else Geographical pricing have to be thought of when doing business throughout the country or the world For example transport costs effects on the decision whether the price is same for European companies and American companies when the distance is bigger In dynamic pricing the customer’s situation is individually thought and the price is set based on that (Kotler et al 2008, 668) In international pricing is effected the whole situation in one certain country Pricing needs to be adjusted for example by the regulations and laws of the country and also costs need to be thought which also vary a lot from country to another (Kotler et al
2008, 671.)
Products: Which means combined "goods and services” that companies give to key
markets The decision about the company's products must be designed with
appropriate features that satisfy customers (Kotler and Armstrong, 2004, p.107) Services have mostly three common basic features (Grénroos, 2000, 47) Firstly, services are a process and these processes consist of functions or a series of functions, not from things Secondly, services are produced and consumed at the same time Third issue is that the customer takes part into the process of producing the service Grénroos (2000, 49) presents two ways, how services are classified Firstly services can be divided into groups which underline humanity and technology, secondly services which are provided from time to time or constantly create the second group Customers are not buying only the certain product but there comes so much more with it Product can be divided into three different levels which each of them in- creases the value of the product (Kotler et al 2008, 500-501) The first level is core product, the real product that customer is buying The next level is an actual product which includes all the supplementary material; for example packaging, brand, quality Third level is augmented product which includes for example delivery, credit,
Trang 19warranties and aftersales In Sunmall website all these aspects are also considered quite precisely and after sales play an important role when creating of Sunmall a
strong brand which tells about quality
Distribution: This includes activities aimed at making the company's products to key consumers Decision on distribution of the company includes the channels, coverage, location, inventory, shipping, warehousing (Kotler and Armstrong, 2004 p107) Nowadays the location is not necessarily so vital anymore for every company, it depends a type of the company Internet has made everything easier and access to other side of the globe can be even easier via Internet than visiting the store in down
town Although place is an important aspect to think in business but more vital is the
availability and accessibility (Krishna, Gopala Raghavan & Reddy, 2010, 85) Products need to be available for the customers and accessibility needs to be simple Selling can be direct selling at the place via sales people but it can also happen for example via catalogues, telephone or trade fairs and many uses combination of
different selling tactics (Tracy, 2004) The most important aspect is to find out the
most effective way to do business, the key is to find out what sells and how to sell it to the customers (Krishna et al., 2010, 85)
Promotions: This means that the activities to convey the beauty of the product and convince buyers to buy its key The promotion activity in the mixture as advertising, sales, promotions, (Kotler and Armstrong, 2004, p.107)
Krishna et al (2010, 79) defines promotion as a tool which is used to build the company’s image and difference from competitors Buyer’s behavior is one aspect which need to be taken considered of There is a rule which says:
Trang 20Promotion is used because of informing, reminding and persuading (Krishna et al., 2010, 80) Promotion means selling the product so promotion is everything that companies do in order to attract their customers and get their products sold Companies need to inform their customers for example about their new product, remind about the great advantage what there exists if they buy it from them and of course persuade in order to close the deal and either create a new customer relationship or strengthen an old one
Krishna et al (2010, 81) presents a promotional tool which every company should use when promoting their company Promotional tool is a promotional-mix where
should take into consideration for example aspects from advertising, personal selling
and public relations In working on sales, there is no one certain right answers
Markets live all the time and markets are huge which includes millions of different
opinions Companies need to develop among them or they are not going to manage
It is brutal game but customers determine the way
People: Including those related to services either directly or indirectly This mainly relates to staff (contact center employees, representatives, and management staff) (Bernard et al 1981)
Every company has their own alignments and policies concerning of their actions When thinking of personnel, this is a tough question for example what the right capacity is, needed qualification of the employees, is there need for further education, what is the right way to choose the personnel and of course how is all this going to be managed (Dienstleistungsmarketing, 2012) People section is important part for every company People section forms of personnel and of customers It is crucial for a company to have a motivated and qualified staff because they are the people who basically can increase or decrease the selling of the company If customers don’t like the person who they are doing business with and the person gives an incompetent feeling for the customer, it effects directly to the results (Krishna et al, 2010, 86.)
Trang 21Companies should have on their service only people, who have right training for the work and who knows about the products, which they are doing business with If this is not the case, a wise employer provides the right training for employees so people are able to do their work properly and customers will get professional image of the company, good service and they remain satisfied Especially people who works in customer service should have good communication skills and to be suitable for customer service If customer works with the company for the very first time and the first impression is poor because of poor customer service, has it clear reflections to the business According to Krishna et al (2010, 87) by providing a good training for
all employees and taking into service only people who have the right attitude towards
the job and managing the company as an inspiring style, provides good results Quality is one important aspect which determines whether the customers choose the company to do business with or not According to Grénroos (2000, 63) quality is determined by the customers thus quality is everything what customers think it is Process: This relates to the operational aspects of the service such as: receive and process orders, timing and sequence of activities leading to the experience of
consumers of services Create a process of effective services is essential for the
success of a service company (Bernard et al 1981)
In addition, process means all the systems which are used when company delivers the
service for their customers Process is all the steps that need to be taken from thinking
of buying to the final purchasing decision The company needs to convince the customer that their products and services are high-qualified and they are trustworthy When service and even every minor technical aspect works, it keeps customers happy and they become involvement with the company and their products (Kumar, 2010, 49-50.) When PGFV company gets a question about a online shopping they are offering for, a customer expects the answer the sooner the better
Trang 22policies and procedures that company follows, the function of all the mechanics and in nowadays electronics, employees’ ability to make circumspect decisions, how customer take part into the whole process, is the process rightly directed to the
customer and all the steps that need to be taken in the whole process of the company
Physical Evidence: is the entire environment, in which, the service is presented and provide to consumers It includes tangible value which creates awareness of services and company service providers (Bernard et al 1981) Three sizes physical environment represents the relationship between the service and the environment: Environmental conditions such as temperature, sound, smell, space and functionality
such as maps, equipment, decorations, signs, symbols and artifacts such as signatures,
personal contacts (Bernard et al 1981)
Moreover, physical evidence is everything that can be seen or touched around the company The quality of catalogues can effect on decision whether to buy something from one company or from the other Everything near the company is under supervision from the point of view of customers; furniture, the outfit of the premises, whether customer can get a cup of coffee during the visit or not, everything can effect to the customer (Krishna et al., 2010)
Krishna et al (2010, 88) divides physical evidence into two categories; peripheral evidence and essential or dominant evidence By peripheral is meant almost insignificant issues for the company which can mean a lot for the customer and give a certain image for the company Krishna, et al 2010 used as an example a movie ticket For the cinema it is only a system to supervise the customers so everyone who wants to see a film has to buy a ticket but for a customer it can be more For example Finnkino in Finland prints on the other side of the ticket usually a discount for example to the nearest pizzeria That way the ticket is not only a way to see the movie
for customer but he or she can also get other types of benefits of it which can improve
company’s image Essential evidences are those which give a direct image about the quality of the company, for example premises in the airplane
Trang 232.2.3 7P Marketing role and its importance in online shopping
The increase in the number of internet users have made online marketing's role is growing The spread brand and promote your products have become easier than traditional methods Shopping habits of users are also changed By internet marketing
tools, modern businesses can freely adjust as well as control the behavior of
consumers easily
By using free online tools like fan page, website, email, social networks People can cut the cost and time to reach potential customers Also based on the available
tools can now calculate and evaluate performance and customer behavior In addition,
it help business approaches to the target customer, retrench geographical gap, and keep away from intermediate cost, takes time
Based on the online marketing tools, businesses have high competitive advantage Spread and promote brand products is now easier via the Internet Moreover, they also create the popularity for products and services of enterprises Businesses can approach customers around the world through a mouse-click that traditional marketing cannot do
Can access, purchase, exchange of information anytime in unlimited time Payments are easy and diversify
Moreover, internet is considered the good choice for providing information The huge amount of information to be uploaded, millions of access per day so that the display of information on the internet is essential
If more than 10 years ago that we do every morning such as: read the newspapers and listen to the radio, but now those things is done through mainly Internet The number of people watching TV, listening to the radio, read newspapers are declining sharply due to the user's network access more quickly and be more active People use the internet daily to find information online, shopping, or even learn about a company
they want to cooperate
Trang 24Marketing online helps customer shopping become easier, and faster than before It improves the efficiency of the work day
Marketing online is a great opportunity in the business, if the enterprise not take this trend, enterprises will lose a large numbers of potential customer Therefore, developing online marketing strategy is very necessary
Trang 26Place (P3) Promotion (P4) People (P5) Process (P6) Physical evidence (P7) 3.1.3 Constructs Key construct: customer satisfaction (CS) Other constructs: Price (P1) Product (P2) Place (P3) Promotion (P4) People (P5) Process (P6) Physical evidence (P7) 3.2 Research Hypotheses Price:
Price is one of the ways marketers communicate with customers Price is seen as revenue oriented been the only marketing mix element that produces revenue Winkler (1995, p.439) defined that “price as the amount of money which is sacrificed to obtain something” Varki & Colgate (2001) studied customer perceptions of value (Price) The authors’ result showed that value (price) perceptions directly influence customer satisfaction Leverin & LiLjander (2006) suggest that customer satisfaction is influenced by factors such as the price of services, or the number and severity of
negative critical incidents However, Chen & Chang (2005) suggest value (price) is
Trang 27perceived to have a small impact on customer satisfaction, but should not be neglected since value plays a role in enhancing the level of customer satisfaction Therefore, the relationship between price and customer satisfaction has been established
P1, Price has a positive and significant effect on customer
Products:
Product is any things which are offered in the market for exchange or consumption (Kotler, 2000) In goods marketing, there is a tangible component to which some intangibles like style, aftersales-service, credit, etc., are integrated (Gronroos, 1987) In the case of services, the tangible component is nil or minimal (bang and Philipp, 2013) A service is a bundle of fractures and benefits and these have relevance for a specific target market (Taherdoost et al., 2014) Since the products offered to the online customer are more or less in nature, online business need to find the way to design and provide customize products/services to meet customer need (Pathmarajah 1991) Value added dimension includes those features which are embedded in service itself as its characteristics Online’s products/services such as provide various products with competitive price, goods delivery service, customer services Therefore, developing a service product it is important that the package of benefit in the service offer must have a customer perspective (Skowron and Kristensen, 2012) Hence, in the same direction our first hypothesis states that:
P2 Product has a positive and significant effect on customer Place:
Trang 28quality and customer loyalty in India The study revealed in what seemed a departure from the studies above that human aspects of service quality were found to influence customer satisfaction more than the technical and tangible aspect It will therefore not be out of place for management to harmonise the elements of place (distribution) to offer good satisfaction to customer Management should simplify the electronic aspect of distribution and embark on high orientation for customers Mohammad, et al, (2012), conducted research on impact of marketing mix elements on tourist satisfaction on East Lake Similarly, Duhaime (1988), conducted research on customer satisfaction with distribution for durable goods, the result concludes that customers are satisfied with overall distribution Therefore, the relationship between place and customer satisfaction has been established
P3, Place has a positive and significant effect on customer
Promotion:
Promotion is sending a persuasive message about a particular product to customers Mohammad et al, (2012), in their investigation of the impact of marketing mix elements on tourist satisfaction found promotion to be significantly related to customer satisfaction Mylonakis (2009), surveyed customers on bank satisfaction factors and loyalty and the findings point out that advertising (the humorous method) is generally accepted by people But Bena (2010), in a research on evaluation of customer satisfaction in online services, found customers are dissatisfied with promotion Management should involve in promotional messages that educate and enlighten customers Online shopping service should also use sales promotion that gives incentives such as discounts to customers to lower cost of charge when purchasing products Therefore, the relationship between promotion and customer satisfaction has been established
P4 Promotion has a positive and significant effect on customer
People:
Trang 29Judd (1987) came out with another ‘P’, People He even went further by recommending that people power should be formalized, institutionalized and managed like the other 4Ps as a distinctive component of the market mix Judd's argument was that it is the employees of an organization who represent the organization to the customers If these employees are not given training in how to go about face-to-face customer contact, the entire marketing effort may not prove to be effective (Salloum and Ajaka, 2013) Berry and Parasuraman (1991) suggested that a service firm can be only as good as its people
A service is a performance and it is usually difficult to separate the performance from
the people (Shanker, 2002) The way service is delivered by the people can be an important source of differentiation as well as competitive advantage (Raj et al., 2014) These are the reasons why the ‘People’ element forms such an important part of the 7Ps of services marketing mix (Zeithaml et al., 2008)
In the case online shopping, Customers’ perceptions of the performance of service
employees play an important role in customers’ evaluations of service quality (Gronroos, 1984) Therefore, the shopping managers’ attention should be focused on employee service quality and to develop of their services skills consistently (Ahearne et al 2012) In addition, customer-oriented service employees with a focus on showing personal attention, interpersonal care, willing to help, politeness, and promptness behavior are likely to contribute significantly toward the strength of customer— employee relationship (Gronroos and Helle, 2012) Thus, we propose the following hypothesis:
PS People have a positive and significant effect on customer Process:
Trang 30customers because they often result in slow, frustrating, bureaucratic and poor-quality service delivery (Lahteenmaki and Natti, 2013) The well designed process assures service availability, consistent quality, total ease and convenience to the customers (Purcarea et al., 2013) As service cannot be inventoried, it is essential to designed sound process management system which can balance service demand with service supply in peak hours (Sheorey et al., 2014)
P6 Process has a positive and significant effect on customer Physical evidence
Services are often intangible, and customers cannot assess their quality well So customers use the service environment as an important proxy for quality (Shanker, 2002) Service environments, also called service scape or physical evidence, relate to the style and appearance of the physical surroundings and other experiential elements encountered by customers at service delivery sites (Klaus and Maklan, 2012) Service firms need to manage physical evidence carefully, because it can have a profound impact on customers’ impressions (Kranias and Bourlessa, 2013) The appearance of buildings, landscaping, interior furnishing, equipment, staff members’ uniforms, signs, communication materials, and other visible cues all provide tangible evidence of a firm's service quality (Fukey et al., 2014)
The physical evidence is also important for online shopping service because it conveys to the customers an external image of the service package (Miles et al., 2012) If ane commerce business wants to have user friendly, hi-tech and efficient image, the branch infrastructure will have a comfortable seating, pleasant lighting and temperature, computer systems with advanced technology and network connectivity (Helm and Gritsch, 2014) The moder infrastructure with latest technology influences customers' perceptions of the service provider and customers' behavioral intentions (Sohn and Tadisina, 2008) Many technological and structural changes have taken place within the global environment to attract and retain the customers (Angur et al., 1999) Therefore, we hypothesize:
Trang 31P7 Physical evidence has a positive and significant effect on customer 3.3 Instruments
The questionnaire total consists of 28 questions The questionnaire will be organized into 7 parts which are price (part 1), products (part 2), place (part 3), promotion (part 4), people (part 5), process (part 6) and physical evidence (Part 7) In each part, there will be detailed questions related to the topic of each part and organized in the easiest way for the respondents to give their feedback
- Firstly, in part 1- price, there are 04 items being used to measure the agreements or disagreements of respondent to online shopping service Items were presented in Likert-type format with a scale ranging from | through 5 where / = strongly disagree and 5 = strongly agree
- Secondly, product is mentioned in part 2 with total of 4 items being used to describe how product affect customer satisfaction Items were presented in Likert-
type format with a scale to state the degree of certainty of each item from / = very uncertain to 5 = very certain
- Thirdly, place include 4 items were stated in part 3 Each statement
represented the situation of place (distribution) influence online shopping satisfaction Likert — type format was used with scale ranging from 1 through 5 / = strongly disagree and 5 = strongly agree
- Inpart 4— promotion total of 4 items was used, which measure assesses how promotion strategy influences customer satisfaction Items were presented in Likert-
type format with a scale ranging from 1 through 5 where / = very uncertain to 5 =
very certain
- Part 5 is about people There are total of 4 items used in this part These questionnaire measure service staff can motivate buying of customer The statements were presented in Likert-type format with a scale ranging from 1 through 5 where /
Trang 32- Part 6 is about process There are total of 4 items used in this part These questionnaire measure process can be a factor effecting customer buying The statements were presented in Likert-type format with a scale ranging from 1 through 5 where / = strongly disagree and 5 = strongly agree
- Finally, physical evidence is the final part of the questionnaire This part includes only four statements to assess the level of a customer is happy with business environment with a scale ranging from 1 through 5 / = strongly disagree and 5 = strongly agree
3.4 Research Participants
The sample of this study consists of people in Vietnam The questionnaires were personally given to each respondent and received feedback during January and March of the year 2016 I published questionnaire through the monkeysurvey.com to respondent and they completed and sent back Only completed questionnaires were collected and used to analyze
3.5 Procedure for Data Collection and Analyze
First, 600 questionnaires with clear instruction and guidelines were delivered to respondents Only 403 were returned in total
Second, all data of 403 returned questionnaires were input into SPSS software as the original source for further analysis All of 403 samples were valid The SPSS software was utilized to analyze the data Based on the input information in SPSS software, the following analysis has been done:
© The Cronbach's Alpha testing will be used as it is the most well accepted reliability test tools applied by social researcher (Sekaran, 2006) In Cronbach’s Alpha reliability analysis, the closer Cronbach’s Alpha to 1.0, it is higher than the internal consistency reliability (Cronbach’s Alpha; Cronbach,1946) Cronbach’s Alpha
measures:
¥ Reliability less than 0.6 considered poor
Y Reliability in the range 0.7 is considered to be acceptable
Trang 33¥ Reliability more than 0.8 are considered to be good
© Correlation Coefficient analysis: In order to determine whether there are
significant relationships among the independent variables and dependent variable, Pearson Correlation Coefficient analysis will be carry out The scale model suggested by Davies (1971) used to describe the relationship between the independent variables and the dependent variable, are as shown below:
¥ 0.7 and above — very strong relationship,
¥ 0.50 to 0.69 — strong relationship, ¥ 0.30 to 0.49 — moderate relationship, ¥ 0.10 to 0.29 — low relationships and ¥ 0.01 to 0.09 — very low relationship
e Finally, Multiple Regression Analysis is conducted to examine the relationship
between independent variables such as price, product, place, promotion, people, process
and physical evidence with the dependent variable of customer satisfaction of Sunmall
Trang 34CHAPTER IV: ANALYSIS AND RESULTS
4.1 Demographic Characteristics of the respondents
The respondents of Sunmall website involved in the study survey are in various background and different in terms of age, gender, working seniority and educational background The following are the summary of demographic characteristics of the respondents Category N Percentage (%) Gender Male 163 40.45 Female 240 59.55 Age <24 28 6.95 24-35 177 43.92 36 - 45 163 40.45 > 45 35 8.68 Academic degree High school 63 15.63 Colleges Degree 129 32.01 Bachelor Degree 199 49.38 Master Degree 12 2.98 Monthly income < 4.000.000 VND 11 2.73 4.000.000-6.000.000VND 96 23.82 6.000.000-10.000.000 VND 173 42.93 > 10.000.000 VND 123 30.52
40.45% of respondents are male meanwhile the rest of 59.55 are female employees The distribution of respondents’ gender also reflects the characteristics of the shopping online industry where majority of buyers are female
In term of age, the respondents are also various with the majority of the respondents in the group of age from 24 to 35 years old (43.92%), age from 36 to 45 years old (40.45%), only 8.68% of respondents of over 45 years old, and 6.95% is under 24 years old (
Trang 35Education background: Respondents with a college degree accounts for 32.01% and a Bachelor’s degree accounts for 49.38%, whereas only 2.98% has a Master’s degree The rest of respondents are in high school education with 15.63%
Monthly income: the respondents with under 4.000.000 VND income is 2.73%, the majority of respondents, who have income 6.000.000 to 10.000.000 VND, dominates 42.93%, people have income 4.000.000 to 6.000.000 VND, are 23.82%, the rest of income over 10.000.000 VND takes 30.52%
4.2 Reliability Analysis
For the reliability measurement, Cronbach’s Alpha test were conducted According to Sekaran (2006), Cronbach’s Alpha with a value of above 0.6 ensures the reliability
of the instrument As shown in Table 1, the Cronbach’s Alpha of all variables was
Trang 364.2.1 Correlation of all variables statistics
The scale model suggested by Davies (1971) used to describe the relationship between the variables, are as shown below:
The table given below shows the correlation of all variables:
Trang 37N 403 403 403 403 403 403 403 403 4 | Peason 0.530** | 0.524** | 0.224** | 0.458** 1| 0.552**| 0.608** | 0.522** Correlation Sig.(2-tailed) 000 000 000 000 000 000 000 N 403 403 403 403 403 403 403 403 5 | Peason 0.605** | 0.663** | 0.263** | 0.553** | 0.552** 1| 0.686** | 0.585** Correlation Sig.(2-tailed) 000 000 000 000 000 000 000 N 403 403 403 403 403 403 403 403 6 | Peason 0.714** | 0.665** | 0.382**| 0.591**| 0.608**| 0.686** 1 | 0.686** Correlation Sig.(2-tailed) 000 000 000 000 000 000 000 N 403 403 403 403 403 403 403 403 7 | Peason 0.619** | 0.571** | 0.311** | 0.480** | 0.522** 0.585** | 0.686** 1 Correlation Sig.(2-tailed) 000 000 000 000 000 000 000 N 403 403 403 403 403 403 403 403
Table 2:Summary of Correlations of all variables From the above table, it is depicted that:
- Hypotheses 1: P1 is moderate associated with CS at correlation of 0.653
- Hypotheses 2: P2 has low relationship with CS at correlation of 0.213
Trang 39The result indicates that:
- Hypothesis 1 - (Price) had Beta of 0.234 (>0) and significant of 0.000 Therefore, hypothesis 1 was supported The construct Product was in the same direction with Customer Satisfaction
- Hypothesis 2 - Product had Coefficient B = -0.061 Moreover, the significant was 0.091 (>0.05) Therefore, hypothesis 2 was not supported
- Hypothesis 3 - Place had Coefficient B = 0.055 (>0) However, the significant was 0.202 (>0.05) Therefore, hypothesis 3 was also not supported
- Hypothesis 4 — Promotion had Coefficient B = 0.011 (>0) However, the significant was 0.802 (>0.05) Therefore, hypothesis 4 was not supported - Hypothesis 5 — People had Coefficient B = 0.078 (>0) The significant was
0.127 (>0.05) Therefore, hypothesis 5 was not supported
- Hypothesis 6 — Process had Coefficient B = 0.366 (>0) The significant was 0.000 (<0.05) Therefore, hypothesis 6 was supported
Trang 40CHAPTER V: CONCLUSION 5.1 Summary and Discussion:
As stated in the beginning of this paper, the purpose of this research is to examine
and approach which marketing factors such as Price, Product, Place, Promotion, People, Process, and Physical Evidence will have any influence on Customer Satisfaction of Sunmall website The followings are some findings of the research and analysis
Firstly, hypothesis of Price was seen to be in the same direction with Customer Satisfaction The relationship between the two variables in online shopping was supported This may be price on online shopping seem to be cheaper than regular market ;
Secondly, hypothesis 2 (P2 — CS), hypothesis 3 (P3 — CS), hypothesis 4 (P4 — CS), hypothesis 5 (P5-—CS) were rejected because the significant were bigger than 0, 05 There were several reasons that could lead to this issue:
- Some of the samples might have been filled in wrong way; or
- The items in the questionnaires were not developed well enough to measure the construct; or
- There may be not much significant findings in relations between Price, Place, Promotion, People and Customer Satisfaction
Next, the hypothesis 6 was supported It means that the relation between Process and
Customer Satisfaction is in the same direction When the process increases, the customer satisfaction will increase as well, and vice versa It showed high relationship with the online shopping customer satisfaction
Finally, hypothesis 7 was supported in this study Physical evidence was found in the same direction with Customer Satisfaction From the result, it shows that online customers in Vietnam reacted the same way with online shopping environment, it
mean, if the online shopping has well designed and showroom is more attractive, the
number of customer will increase