Factors affecting customer satisfaction in group buying in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Thi My Chi FACTORS AFFECTING CUSTOMER SATISFACTION IN GROUP BUYING IN VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – 2013 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Thi My Chi FACTORS AFFECTING CUSTOMER SATISFACTION IN GROUP BUYING IN VIETNAM ID: 60340102 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr Tran Ha Minh Quan Ho Chi Minh City – 2013 -i - ABSTRACT Recently, group buying model is developing rapidly and impressively in Vietnam as a type of online shopping This study aims at investigating the motivations that influence customer satisfaction as well as service quality of group buying This research will find out that service quality, brand, trust and price are critical factors influenced customer satisfaction with service quality is the most important factor Keywords: group buying, group buying site, customer satisfaction - ii - TABLE OF CONTENTS ABSTRACT i TABLE OF CONTENTS ii LIST OF FIGURES iv LIST OF TABLES v I INTRODUCTION 1 Research background Research motivation 3 Research questions 4 Research objectives II LITERATURE REVIEW Group buying Service quality Online service quality Service quality and customer satisfaction 11 Price discount and customer satisfaction 12 Trust and customer satisfaction 13 Brand and customer satisfaction 13 Research framework 14 III RESEARCH METHODOLOGY 16 Research process 16 Research sampling method 18 Measurement scales 19 Data collection procedure 21 Data analysis method 21 5.1 Descriptive analysis 21 5.2 Reliability analysis 22 - iii - 5.3.Exploratory Factor Analysis (EFA 5.4.Multiple regression analysis IV FINDING AND ANALYSIS 1.Sample description 2.Evaluation and refinement of measurement scales 2.1 Cronbach Alpha Reliability Analysis 2.2.Exploratory Factor Analysis (EFA 2.2.1 EFA for independent variables 2.2.2 EFA for dependent variable 2.2.3 Pearson Correlation Coefficient 3.Hypotheses testing 3.1.Testing assumptions of Multiple R 3.2.Regression analysis 3.3.Summary of hypotheses testing res 4.Discussions of the findings V CONCLUSIONS AND IMPLICATIONS 1.Conclusion 2.Implications of this research 3.Research limitations and implications for future research REFERENCES APPENDIX A APPENDIX B APPENDIX C APPENDIX D APPENDIX E APPENDIX F - iv - LIST OF FIGURES Figure 2.1 The research model and hypotheses 14 Figure 3.1 Research process 17 Figure D.1 Histogram of SATIS dependent variable 68 Figure D.2 Normal P-P Plot of regression standardized residual 68 Figure D.3 Scatterplot 69 -v- LIST OF TABLES Table 3.1 Survey item summary 20 Table 4.1 Sample characteristics 24 Table 4.2 Cronbach’s alpha reliability test result 28 Table 4.3 KMO and Bartlett’s Test for independent variables .30 Table 4.4 Rotated Component Matrix 31 Table 4.5 Removal process during EFA 32 Table 4.6 Total Variance Explained 33 Table 4.7 Rotated Component Matrix 34 Table 4.8 Cronbach’s alpha summary after EFA 36 Table 4.9 KMO and Bartlett's Test for dependent variable 37 Table 4.10 Factor loading of satisfaction variable 37 Table 4.11 Pearson correlation coefficients between SATIS and other independent variables 38 a Table 4.12 Coefficients 40 Table 4.13 The summary of overall value 41 a Table 4.14 ANOVA result 41 Table 4.15 The result of testing hypotheses 42 Table C.1 Pearson correlations 66 Table E.1 Descriptive Statistics 70 Table F.1 Measurement scales 71 -1- I INTRODUCTION In the first chapter, the background of the chosen research subject will be presented, along with problem background and the purpose of this thesis Finally, the research question will be addressed with the research objectives which will be clarified clearly in later parts Research background In the past, consumers must go to the store and buy commodities directly It takes much times and also brings the inconvenience to consumers, especially who are far away from the store Nowadays, as the Internet has been developing, more buyers are enjoying online shopping because the Internet services are as a convenient way to shop Consumers can buy goods, even services, online, where makes more options for them Consumers who have a want for some favor services or goods could be gathered when making an online shopping (J Chen, Chen, & Song, 2002; Pi, Liao, Liu & Lee, 2011) Additionally, it offers many advantages, such as facility, rapidity, a 24-hour opening and unrestricted geography Due to the advantages of Internet, in the context of electronic commerce, online group buying becomes more and more popular According to Rezabakhsh et al (2006), “central idea of online group-buying is the aggregation of geographically dispersed consumer purchasing power from all over the countries that have a common interest in a certain product and come together on the group-buying sites to get price discounts” In addition, joining online group buying, consumers not only get competitive advantages of quantity system price and delivery service, but also have chances to share shopping experiences with other buyers -2- In Vietnam, according to electronic information website Maskonline, website phagia.com appeared officially on June 2010, making an underground river to the field of electronic commerce in the country Some months later, many other group buying sties were born to compete each other, as cungmua.com, muachung.vn, nhommua.com, etc According to Vu Hong Quang, a representative of the Southern VC Corp which owns muachung.com, after just months of operation, his site already has 100.000 members Muachung.com’s main competitor, nhommua.com has the same number of registered users but even some of the newer sites have 60.000 members According to uncompleted statistics, up to now, Vietnamese market has about 97 sites that offer group buying services (E-Money, 2011) Deals sites can create a winning situation all around that give benefit to three sites: business, coupon site and consumer Businesses get some much needed traffic, the coupon sites get a commission for pulling in that traffic and consumers get a good deal And Vietnamese are loving this model Group buying model adopts “tipping point” mechanism This mechanism requires a minimum number of participants for each deal There are two conditions make a transaction happens: the number of actual participants exceeds the minimum number and the potential buyers have prepaid for the deal (Cohen, 2009) A deal usually includes price discount of the product or service When the number of people reaches a certain limitation, customers will get direct discounts on goods or services or they can buy vouchers with attractive prices (E-Money, 2011) According to action.vn, group buying model is as a balloon inflated round two years ago, but it is now flat and gradually has to transform to survive (May 2012) Even Groupon in the U.S., the first group buying model in the world, also had bitterly announced dismal sales declines in the last months In Vietnam, the -3- group buying model is facing to changes to overcome this difficult period In the past, the majority of the initiators were main buyers in online group buying However, because of the impact of global economic recession, many initiators are aggressive being the roles of vendors holding the products or services to supply to consumers This research doesn’t focus on analyzing the reason why initiator acts as vendor, however, vendor role of initiator is considered as a part of group buying mechanism to evaluate service quality later Research motivation Kris Ashton (2011) noted that, since many consumers are not familiar or comfortable with online payments, most vouchers are purchased by money transfer or cash on delivery Vouchers are often lost or delivered lately and the cost of delivery can be costly There is also the problem of many merchants that don’t follow the rules of the contract, provide inferior service or treat voucher holders differently than they customers that are paying full price Summarily, they are all problems in service quality that group buying services need to focus more to survive in recent difficult environment In previous studies, some of them discussed online group buying in operator point of view: Wei et al (2011) proposed a management model in online group buying’s process, Matsuo (2009) proposed an effective pricing mechanism for traders, Anand and Aron (2003) using analytical economic models to study the phenomenon of online group buying The other discussed from consumer point of view: Liao et al (2012) focused on consumers’ demands and preference of stuff in online group buying, Tsai et al (2011) found out that trust in virtual community and website quality are the determinants of online group buying’s intention, etc Tôi chọn sản phẩm theo nhãn hiệu Với loại sản phẩm, chọn nhà cung cấp dịch vụ Mua Theo Nhóm có cung cấp nhãn hàng tơi u thích Tơi nghĩ giới thiệu cách tham gia vào Mua Hàng Theo Nhóm hỏi tơi -64- Tôi giới thiệu dịch vụ Mua Theo Nhóm với người thân bạn bè làm tơi hài lịng Sự hài lịng niềm tin… Tôi tin nhà cung cấp dịch vụ Mua Theo Nhóm giữ lời hứa họ sản phẩm/dịch vụ họ cung cấp Tôi tin nhà cung cấp dịch vụ Mua Theo Nhóm đáng tin Tơi tin trang web nhà cung cấp dịch vụ Mua Theo Nhóm khơng lừa gạt khác hàng để kiếm tiền bất Sự hài lịng giá cả… Tơi thấy đáng để mua sản phẩm/dịch vụ sử dụng coupon giảm giá trang web Mua Theo Nhóm mua với giá thức bên ngồi Tơi hài lịng với giá rẻ mà nhà cung cấp dịch vụ Mua Theo Nhóm cung cấp Tơi mua sản phẩm/dịch vụ từ trang web Mua Theo Nhóm cung cấp giá rẻ trang cịn lại Ảnh hưởng đến hài lòng khách hàng… Nhìn chung tơi hài lịng mua hàng trang web Mua Theo Nhóm Chất lượng trang web Mua Theo Nhóm với mong đợi tơi Tơi thấy hài lịng mua hàng trang web Mua Theo Nhóm so với trang web bán hàng online khác Tôi nghĩ định mua hàng trang web Mua Theo Nhóm III Thơng tin cá nhân Xin bạn cung cấp vài thông tin cá nhân nhằm mục đích phân loại đây: Giới tính: Nam Độ tuổi: Dướ Trình độ học vấn: Nghề nghiệp: Kỹ sư Bác Khá Mức thu nhập: Cám ơn hợp tác bạn! -66- APPENDIX C – PEARSON CORRELATIONS Table C.1 Pearson correlations Pearson Correlation RESPON CONTA PRIVA Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N BRAND Pearson Correlation Sig (2-tailed) N FULFIL Pearson Correlation Sig (2-tailed) N EFFIC Pearson Correlation Sig (2-tailed) N SYAVA Pearson Correlation Sig (2-tailed) N PRICE TRUST SATIS Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N ** Correlation is significant at the 0.01 level (2-tailed) * Correlation is significant at the 0.05 level (2-tailed) -68- APPENDIX D – MULTIPLE LINEAR REGRESSION ASSUMPTION TESTING RESULTS Histogram Dependent Variable: SATIS Figure D.1 Histogram of SATIS dependent variable Normal P-P Plot of Regression Standardized Residual Dependent Variable: SATIS Figure D.2 Normal P-P Plot of regression standardized residual -69- Figure D.3 Scatterplot -70- APPENDIX E – DESCRIPTIVE ANALYSIS Table E.1 Descriptive Statistics RESPON CONTA PRIVA BRAND FULFIL EFFIC SYAVA PRICE TRUST SATIS Valid N (listwise) -71- APPENDIX F – MEASUREMENT SCALES Table F.1 Measurement scales Construct Efficiency System availability Fulfillment -72- Privacy Responsiveness -73- Contact Brand image Brand awareness Trust Price discount Satisfaction ... quality of group buying and the influence of the measure to customer satisfaction - Analyze factors influencing customer satisfaction in group buying in Vietnam -4- II LITERATURE REVIEW In this chapter,... ECONOMICS HO CHI MINH CITY International School of Business Nguyen Thi My Chi FACTORS AFFECTING CUSTOMER SATISFACTION IN GROUP BUYING IN VIETNAM ID: 60340102 MASTER OF BUSINESS (Honours)... 2012) Even Groupon in the U.S., the first group buying model in the world, also had bitterly announced dismal sales declines in the last months In Vietnam, the -3- group buying model is facing to