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ASSIGNMENT SUBMISSION AND ASSESSMENT BMBR5103 BUSINESS RESEARCH METHOD JUNE 2018 SEMESTER THE SATISFACTION OF CUSTOMERS WHEN BUYING AT LAZADA ONLINE CHANNEL Teacher: DR LÊ TRUNG THÀNH Class: OUM K23C Name: Table of Contents CHAPTER 1: INTRODUCTION TO THE BASIS OF RESEARCH TOPICS, OBJECTIVES AND SCOPE OF RESEARCH, PRATICAL SIGNIFICANCE OF THE RESEARCH TOPIC .1 1.1 Introduction 1.1.1 Online sales market in Vietnam 1.1.2 Lazada Viet Nam .1 1.2 Reason for choosing topic .2 1.3 Objectives of the study: 1.4 Scope and Objectives of the Study 1.5 Practical implications 1.6 Structure of research report: CHAPTER 2: THEORETICAL STRUCTURE & RESEARCH 2.1 Theoretical background 2.1.1 The satisfaction 2.1.2 Model of customer satisfaction under relationship function 2.2 Research Models 2.2.1 Research Methods .7 2.2.2 Model Research Proposal 2.2.3 Concepts in model .8 CHAPTER 3:METHODS OF RESEARCH, PRESENTATION OF RESEARCH PROCESS, MEASURING SCALE 10 3.1 Methodological Design 10 3.2 Develop a scale 13 3.2.1 Price Scale Factor 13 3.2.2 Scale of factors Quality of products .13 3.2.3 Scale of factors Quality of delivery .13 3.2.4 Scale of factors Convenience 13 3.3 Scale 14 CHAPTER 4: PRESENTATION OF RESEARCH RESULTS, SCALE MEASUREMENT, FACTOR ANALYSIS, MODEL TESTING AND RESEARCH HYPOTHESES .14 4.1 Research sample statistics .14 4.1.1 Frequency statistics 14 4.1.2 Descriptive statistics .17 4.2 Analysis of results 19 4.2.1 Cronbach's Alpha 19 4.2.2 Analysis EFA 22 4.2.3 Analysis Correlation .25 4.2.4 Analysis Regression 27 4.2.5 Determine the variance difference of quanlitative variables 31 CHAPTER 5: SOLUTIONS TO ENHANCE CUSTOMER SATISFACTION 34 5.1 Summary of research result and recommendations 34 5.1.1 Summary of research results: 34 5.1.2 Recommendations 35 CONCLUSION .37 REFFERENCE .38 CHAPTER 1: INTRODUCTION TO THE BASIS OF RESEARCH TOPICS, OBJECTIVES AND SCOPE OF RESEARCH, PRATICAL SIGNIFICANCE OF THE RESEARCH TOPIC 1.1 Introduction 1.1.1 Online sales market in Vietnam The Internet is growing and people's purchasing power is increasing Today, the online market is expanding more and more online in Vietnam, so many items are sold online online and achieved many results as expected The online sales market accounts for a large share of total market share With many add-ons such as fast and convenient, online sales are growing fast and are more trusted than regular purchases 1.1.2 Lazada Viet Nam Lazada Vietnam is an e-commerce trading platform, offering products on a wide variety of products such as furniture, phones, tablets, fashion and accessories, health care products, beauty, toys and sports equipment, household appliances Lazada Vietnam is part of Lazada Group, a multinational e-commerce corporation and currently has subsidiaries in Indonesia, Philippines, Singapore, Thailand and Malaysia Lazada Founded in March 2012, at a time when Internet, social networking and mobile devices in Vietnam has grown rapidly, it is time to see the potential of e-commerce grow In December 2012, in order to encourage users to participate in online shopping, Lazada organized Lazada's Online Revolution, a large-scale online shopping and media campaign So far, this has become an annual event at Lazada.vn every year In 2015, the Lazada Online Shopping Revolution in Vietnam has attracted 1.5 million visitors with 100,000 orders in the last three days of the campaign Of that, 50% of total program revenue comes from Andoid and iOS mobile platforms, confirming the future development of M-Commercer Lazada's direction is the market place model - the middleman in the process of buying online In January 2016, Lazada Vietnam confirmed that the company is currently working with 3,000 suppliers with 500,000 different products In addition, Lazada offers merchants other services such as simple payment procedures, transportation services and professional customer care Page In order to improve the closed delivery process, Lazada continues to invest in infrastructure and transportation In 2013, Lazada Vietnam inaugurated the first warehouse in Vinh Loc Industrial Park, Ho Chi Minh City Shortly thereafter, a co-ordinating center was opened in the South East in 2014 to serve the growing number of clients in the region By March 2016, Lazada Vietnam has 35 coordination centers and a team of Lazada Express (LEX) provided by the company to support direct shipping (FBL) to the vendor 1.2 Reason for choosing topic Services are growing strongly in the economic structure of our country In addition to the diversity of services, we also need to pay close attention to consumer attitudes and satisfaction This is an important factor in assessing the failure of the service sector At present, the attitudes and satisfaction of consumers is always a concern of enterprises In Vietnam, the study of consumer satisfaction in the e-commerce market is limited because it is a complex social, technological, behavioral and psychological phenomenon Therefore, this study was conducted to identify the factors that help maintain consumer satisfaction in the e-commerce market, namely Lazada, which will help businesses adjust Its the best service in the market This is an important and necessary issue in the development of the modern economy 1.3 Objectives of the study: In our country, the research on service satisfaction is not yet common and popular and above all still not applicable and practical So this study aims to: - Assess the satisfaction of customers when buying at Lazada - Analyze factors influencing customer satisfaction on service quality in Lazada - Proposing solutions to improve the quality of purchase services at Lazada 1.4 Scope and Objectives of the Study Research scope in Ho Chi Minh City Study subjects: Those who are using Lazada's services in Ho Chi Minh City Research content: Customer satisfaction when shopping at the Lazada online channel Page 1.5 Practical implications The results of the research will provide Lazada with information on the level of satisfaction as well as the factors that affect the level of satisfaction of customers From there Lazada can: - Strategic planning to develop the service to a higher level and more perfect - Improve the quality of products of various types, models, services attached to: delivery, return goods, to meet the needs of customers - Improve marketing activities to bring more revenue to Lazada - Improve customer care services to improve customer loyalty and find new customers 1.6 Structure of research report: The research report is divided into six chapters: Chapter 1: Introduction to the basics of research topics, objectives and scope, practical implications of research topics Chapter 2: Presentation of theoretical foundations and prior studies used as the basis for the research It then develops a model of research that proposes and makes assumptions about the correlation between the factors in the research model Chapter 3: Methods of research, presentation of research process, scale construction, criteria for measuring scale, sample design and questionnaire Chapter 4: Presentation of research results, scale measurement, factor analysis, model testing and research hypotheses Chapter 5: Explanation of research results, recommendations, Chapter 6: Conclusion CHAPTER 2: THEORETICAL STRUCTURE & RESEARCH THEORETICAL BACKGROUND AND SOME MODELS OF SATISFACTION Page 2.1 Theoretical background 2.1.1 The satisfaction - According to Kotler and Keller (2006), satisfaction is the degree to which one's sense of state is derived from comparing the perception of a product to his or her expectations - According to Zeithaml and Bitner (2000), customer satisfaction is the customer's evaluation of a product or service that meets their needs and expectations - Oliver and Bearden (1995) argue that customer satisfaction is a business task expressed by the relationship between the value of the product or service and the expectations of the customer about them - Overall, according to Parasuraman et al (1991), there are five factors that affect customer satisfaction: (1) Reliability: the ability to perform services as promised and accurate (2) Responsiveness: the willingness to help the customer and quickly (3) Assurance: The qualities of the employee will create trust for the customer, professionalism, courtesy, respect for the customer, the ability to communicate (4) Empathy: staffs are easy to approach, pay attention to customers, create peace of mind (5) Tangible means: the appearance of facilities, equipment, products, personnel, materials and materials used for communication 2.1.2 Model of customer satisfaction under relationship function Page PRICE FUNCTIONAL FUNCTIONALITY QUALITY OF SERVICE PRODUCT QUALITY CUSTOMER SATISFACTION RELATIONSHIP CONTACT SERVICE QUALITY RELATIONS Customer Satisfaction Model by Parasuraman Relationship Functions, 1994 According to the above model, customer satisfaction depends on the characteristics of products, services and relationships Customer satisfaction is made up of two components: Satisfaction: Satisfaction is achieved by the purchase of good quality goods or services at reasonable prices Relationship: The relationship that comes from the business process that accumulates over time, such as trust in the service provider, the expertise of the employee, the customer service attitude Functional satisfaction and relationships are influenced by the following factors: - Price: is the value of the product or service value is converted into money The price depends on many factors such as quality, brand, service The trend of consumers today is that they are willing to pay a high price to get a product or service there good quality Therefore, value also has a certain impact on customer satisfaction - Product quality: Based on the following characteristics: • Main features: main operating characteristic or basic functionality of the product • Special features: complementary to basic functionality and feature enhancing features Page • Reliability: the probability of successfully executing a specified function over a specified period of time and under certain conditions The reliability of the product is usually measured by the mean time of first failure or the average time between failures However, these measures require that the product be used for a specified period of time and that it is not appropriate in cases where the product or service is used or consumed immediately • Relevance: The extent to which the design and operating characteristics of the product comply with the standards • Durability: product life Durability can be defined as the duration of use of a product before it is depreciated to a level that has to be replaced without repair • Convenience: ability, politeness and speed of repair cure The cost of repair is not only the cost of repair, it includes all aspects of the loss and inconvenience of equipment downtime, service team attitudes and the number of repairs Success for an incident • Aesthetics: How the product looks, feels, sounds, smells, and taste of the product Aesthetics depends a lot on individual preferences This is a highly subjective characteristic • Awareness: the reputation of a company Customers not always have complete information about the characteristics of the product or service, in which case, the reputation of the company is the only basis for them to compare between brands - The quality of service: Based on the following characteristics: Trust: the ability to perform a promised and accurate service • Feedback: the willingness to help the customer and quickly and start the service delivery • Assurance: The qualities of the employee will create trust for the customer, professionalism, courtesy, respect for the customer, the ability to communicate • Sympathy: Service staffs are easy to approach, pay attention to customers, create peace of mind • Visibility: the appearance of facilities, equipment, personnel, materials and materials used for communication Page Contact service and quality of relationship: factors related to the professional level, attitude of employees doing exactly what is committed, reputation with customers will affect customer satisfaction 2.2 Research Models 2.2.1 Research Methods The research focused on information from customers using the purchase service at Lazada in Ho Chi Minh City on the factors that affect the satisfaction and satisfaction of customers To ensure the science, research done in two steps: Primary data research: Primary information is presented through questionnaires, interviews I used a questionnaire survey technique in Ho Chi Minh City to collect data Samples were chosen according to the nonlinear, convenient method with sample size n = 151 This study aimed to test the measurement scale and the research model, from which the assessment and proposal were made Quantitative Quantitative Analysis: I use quantitative research methods for related factors Quantitative research includes technical analysis, direct data collection through questionnaire surveys on the Google form This method helps me to receive the information accurately, objectively and respond quickly to customers about the business Then, the recovered data will be processed with the support of the statistical management software SPSS Data Statistics 20 along with analysis, summary information survey 2.2.2 Model Research Proposal QUALITYOF DELIVERY SERVICES QUALITYOF PRODUCT PRICE CONVENIENCE SATISFACTION Page CUSTOMERSERVICE Based on the results, we find that the GC, CLSP, CLVC, DVKH coefficients are less than 0.05, and the sig factor is> 0.05, so we will eliminate TT variable In fact, we reject the hypotheses H1, H2, H3, H5, that is, the correlation between SATIS dependent variable with independent variables GC, CLSP, CLVC, DVKH - Correlation coefficient of SATIS with GC is 000 and correlation of SATIS with GC is positively correlated - SATIS's correlation coefficient with CLSP is 000 and SATIS correlation with CLSP is positively correlated - Correlation coefficient of SATIS with CLVC is 001 and correlation of SATIS with CLVC is positively correlated - Correlation coefficient of SATIS with DV is 000 and correlation of SATIS with DV is positively correlated From the results above, we conclude that independent variables GC, CLSP, CLVC, DVKH are suitable for inclusion in the linear regression model of the research model (According to Coakes, S J., & Steed, L (2007) & Ong 4.2.4 Analysis Regression Model Summaryb Model R R Square ,839a Adjusted R Std Error of the Square Estimate ,704 ,695 ,299 a Predictors: (Constant), DVKH, GC, CLVC, CLSP b Dependent Variable: SATIS Page 32 Durbin-Watson 1,918 Table 23 Result about suitable of variables ANOVAa Model Sum of Squares df Mean Square Regression 30,884 7,721 Residual 13,010 146 ,089 Total 43,894 150 F 86,642 Sig ,000b a Dependent Variable: SATIS b Predictors: (Constant), DVKH, GC, CLVC, CLSP Table 24 Verification F In the table above, the R-coefficient of 0.839 shows that the relationship between the variables in the model is strongly correlated The regression result of the model shows that the R Square value is 0.704, which indicates the suitability of the model is 70.4% or the variation of the SATIS variable is explained by the four factors Based on the F test, to evaluate the suitability of the overall regression model, consider the value of F from the ANOVA variance analysis table, F = 86.642, sig value = 0.000 there is no self correlation Multi-collinear testing Page 33 Table 25 Result of Coefficients From Coefficients table, we see that all the sig of GC, CLSP, CLVC, DVKH are 0.05 results in no statistically significant difference in customer satisfaction at different ages As a result, the reliability of the test is 95%, the H0 hypothesis is accepted, Anova analysis results can be used b Gender Test of Homogeneity of Variances Page 39 SATIS Levene Statistic df1 3,041 df2 Sig 148 ,051 As a result of Sig> 0.05, there is no statistically significant difference in the satisfaction of clients of different gender We examine the results of the Anova table as follows: ANOVA SATIS Sum of Squares Between Groups df Mean Square F 5,444 2,722 Within Groups 38,451 148 ,260 Total 43,894 150 Sig 10,476 ,000 Sig value 0.05 results in no statistically significant differences in the level of satisfaction of clients in different occupations As a result, the reliability of the test is 95%, the H0 hypothesis is accepted, Anova analysis results can be used CHAPTER 5: SOLUTIONS TO ENHANCE CUSTOMER SATISFACTION 5.1 Summary of research result and recommendations 5.1.1 Summary of research results: The purpose of this study is to explore the influence of price factors, product quality, transport quality, convenience of customer service, delivery and payment methods Satisfying the need for purchase at Lazada Vietnam Page 42 The Cronbach's Alpha analysis, all independent variables, has a Cronbach's Alpha value from [0.70.9], indicating that the reliability of the scales is good In terms of Corrected Item - Total Correlation, most of independent variables produce> 0.3 and Cronbach's Alpha If Item Deleted is smaller than Cronbach's Alpha Thus, all independent variable scales have good reliability because they satisfy the above three conditions The EFA analysis, from the results of the analysis, see Kaiser-Meyer-Olkin Measure of Sampling Adequacy> 0.5 and Sig 50%, Factor loading values> 0.5, Eigenvalue ≥ 1, The factors that need to be considered when evaluating customer satisfaction are the following: Price, Product Quality, Quality of Delivery, Customer Service Correlation analysis shows that the correlation between the dependent variable and the independent variable, in which the TT variable is uncorrelated and the other variables correlated with the SATIS dependent variable, we find that The convenience of buying is that almost every online shopping site must be ready to assist customers And this is also what most customers default buy channels so this is not a determinant of satisfaction when buying goods that are the typical factors such as price, quality, quality transportation… The regression method is used to determine the specific weight of each independent factor affecting the dependent factor and thus to determine the degree of their influence on the dependent factor The results of the Regression analysis are satisfactory and no correlation phenomena are observed Analytical methods to test the impact of price factors, product quality, the variety of product lines, promotions and customer care services, delivery and payment methods on the satisfied customers The results show that the impact of price and quality is the strongest, followed by the quality of shipping, customer service All factors affect the satisfaction of the purchase at Lazada The results of Anova test also show that age and occupation not affect customer satisfaction with Lazada This conclusion is based on the sample obtained, because the sample size is not large and the number of subjects in the groups is not uniform, so it is impossible to conclude the whole 5.1.2 Recommendations As expected in this study, hypotheses are empirically demonstrated that there are correlations between price, quality, customer service, transport quality on customer satisfaction in Lazada Research shows that people choose Lazada when they want to buy online is the highest and the services of Lazada most of satisfied customers Page 43 In addition, the results show that if the quality of Lazada products are good then customers will have a positive choice for Lazada When consumers have a good evaluation and look at the product, it will increase the intention to use the goods in Lazada Besides, customer service also has a positive influence on the formation of the satisfaction of customers when buying at Lazada And another contribution to this study is the simultaneous impact of many factors on the level of satisfaction, which increases the explanation for many of these variables Finally, this study has opened up many potential to apply theories to explaining the level of customer satisfaction when buying at Lazada With the data summarized above, the research team has made some recommendations for the Lazada purchase channel: In terms of price, Lazada should offer more competitive prices than online shopping channels to increase competitiveness, not necessarily lower prices, Lazada can support delivery costs to customers or donations Include the product when buying any product on Lazada, this is also one of the strategies to help customers remember Lazada more In addition, Lazada should also focus on customers who have been buying at their channel by offering attractive and different promotions Lazada should be more widely advertised on social networking sites, banner ads, pay special attention to groups of people have not purchased online, there are after-sales policies for member groups and members close In terms of product quality, the goods on Lazada should be improved on the quality, the origin of goods must be clear According to the survey data, some customers still are not satisfied with the quality of products, such as genuine products are not guaranteed and the durability of the product is not expected Lazada should strengthen the product quality testing department of the partners to ensure the quality of goods reach the consumers and the model they chose In addition, Lazada can co-ordinate exclusive distribution to a number of high-end brand products to enhance the status and trust of customers Quality of delivery, according to the survey is highly appreciated, but there are some cases of delivery not on schedule, the product when delivered to the place is not intact to affect the level of satisfaction of customers The goods and attitude of the delivery staff has not been good Lazada also needs a more professional team to handle orders and deliveries, as well as enhance professional and staff training to improve communication and care better customer Quality of transportation, according to the survey is highly appreciated, but there are some cases of delivery not on schedule, the product when delivered to the place is not intact to affect the level of Page 44 satisfaction of customers The goods and attitude of the delivery staff has not been good Lazada also needs a more professional team to handle orders and deliveries, as well as enhance professional and staff training to improve communication and carebetter customer CONCLUSION Generally, from the time of its establishment until now, the pace of development of Lazada in the eyes of consumers is not high Therefore, to make business sustainable in the future, the improvement of some points as above is extremely necessary It is not only profitable for business but also bring satisfaction to customers when choosing Lazada Nowadays, there are many online shopping sites that are established, and the creation of a reputable online site, trusted by people and used for a long time, is not easy, Lazada has been established since 2011 until Nowadays, the company has more or less experienced as well as grasp the needs of consumers.Therefore, one of the leading factors for customers to trust and use the service of Lazada is that the price, the optimal price and many incentives will attract consumers, in addition to the quality The product is also one of the important factors for Lazada to develop its brand, co-operate with well-known brands and distribute exclusive products that will help Lazada have many steps to develop and demonstrate the grow up In addition, the quality of transport and customer service is also important, when the product to the consumer needs to be focused packaging, after-sales service such as customer care and the solution Resolving warranty issues is one of the issues that every online shopper should take note of In order for staff to deal more fully with issues of care and professional customer care, the company should regularly organize staff training courses on communication skills and problem solving, and implement Survey programs have gifts for consumers, to show interest in the needs of customers as well as improve customer service better REFFERENCE Nunnally, J.C and Bernstein, I.H (1994) The Assessment of Reliability Psychometric Theory, 3, 248-292 Anderson, J C., & Gerbing D W (1988) Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach Psychological Bulletin, 103, 411-423 Kaiser (1970) (1974) KMO A second generation little jiffy Psychometrika, 35(4):401–415 Coakes, S J., & Steed, L (2007) & Ong: Analysis Correlation Jullie Pallant (2008) Analysis Regression (VIF