E service quality in e commerce an empirical evidence from vietnam

VIETNAM NATIONAL UNIVERSITY VIETNAM JAPAN UNIVERSITY NGUYEN THI HOA E–SERVICE QUALITY IN E–COMMERCE: AN EMPIRICAL EVIDENCE FROM VIETNAM MASTER THESIS BUSINESS ADMINISTRATION Hà Nội, 2018 VIETNAM NATIONAL UNIVERSITY VIETNAM JAPAN UNIVERSITY NGUYEN THI HOA E–SERVICE QUALITY IN E–COMMERCE: AN EMPIRICAL EVIDENCE FROM VIETNAM MAJOR: BUSINESS ADMINISTRATION COD: 60340102 RESEARCH SUPERVISORS: DR PHAN CHI ANH PROF DR MATSUI YOSHIKI Hà Nội, 2018 ACKNOWLEDGEMENTS I would like to express my gratitude to my advisors Associate Professor Phan Chi Anh and Professor Matsui Yoshiki for their enthusiastic guidance and support They accompanied with me over different phases of my master thesis and gave me a helpful hand whenever I need their advice Also, I would like to thank my family who always encourage me to complete this research I really appreciate the support of my husband and our friends who enthusiastically helped me to distribute and collect survey questionnaire I thank all people, acquaintance and strangers who helped me to accomplish this research survey ABSTRACT The aim of this report is to practically assess e-service quality of e-commerce sites in Vietnam Based on the e-service quality models proposed after 2000s, the survey questionnaire separated into three section: questions for screening and general information, 38 e-service quality constructs, customers’ satisfaction measures Data was collected from 593 customers of popular online shopping sites in Vietnam (Adayroi.com, Lazada.com, Shopee.vn, and Tiki.vn) Based on factor analysis, the research demonstrate properties of e-service quality with 22 variables The regression model was constructed to examine the connection between customers’ satisfaction and e-service quality At the same time, the managerial implications have been drawn TABLE OF CONTENT LIST OF TABLES LIST OF FIGURES CHAPTER 1.1 INTRODUCTION Motivation and Objectives of this research 1.1.1 Changes in online shopping in Vietnam 1.1.2 Objectives 1.1.3 Research Questions 1.2 Research Scope 1.2.1 Content Scope 1.2.2 Place Scope 1.2.3 Time Scope 1.3 Structure of the study 10 CHAPTER LITERATURE REVIEW 11 2.1 Traditional Service Quality 11 2.2 E-Commerce and E-Service Quality 11 2.3 Traditional SQ vs Electronic SQ 11 2.4 The scales of measuring e-SQ 12 2.5 Empirical tests on measuring scales of e-SQ 17 2.6 Theoretical gaps 22 CHAPTER ANALYTICAL FRAMEWORK 24 3.1 Research Design 24 3.2 Research Hypotheses 26 3.3 Methodology 27 CHAPTER DATA COLLECTION AND ANALYSIS 29 4.1 Data Collection 29 4.2 Data Analysis 31 4.2.1 Measurement Test 31 4.2.2 Hypothesis Test 36 CHAPTER FINDINGS AND CONCLUSIONS 41 5.1 Findings and implications 41 5.2 Limitations 43 5.3 Future Research’s Directions 43 5.4 Contributions of the study 43 Reference 45 LIST OF TABLES Table 2.1 The measuring scales of e-SQ Table 2.2 Empirical tests on measuring scales of e-SQ Table 3.1 Reallocation of question items Table 4.1 The number of respondents Table 4.2 Demographic characteristics of respondents Table 4.3 Cronbach's Alpha Table 4.4 Exploratory and confirmatory factor analysis Table 4.5 Goodness-of-fit statistics Table 4.6 Representation Factors Table 4.7 Correlations Matrix Table 4.8 Regression Analysis (Dependent Variable: Customers’ Satisfaction) LIST OF FIGURES Figure 1.1 E-commerce sales in Vietnam Figure 3.1 Research Framework Figure 4.1 Mean and Std Deviation of 14 variables 13-17 18-21 25 29 30 31-32 34 36 38 38 40 25 37 LIST OF ABBREVIATIONS AGFI Adjusted Goodness of Fit CFA Confirmatory Factor Analysis CFI Comparative Fit Index Df Degree of freedom EFA Explanatory Factor Analysis ESQ, e-SQ Electronic Service Quality FUL Fulfilment GFI Goodness of Fit Index NFI Normed Fit Index RFI Relative Fit Index RMSEA Root mean square error of approximation SQ Service Quality SUP Supplementary services SYS System quality TLI Tucker-Lewis Index Vs Versus X2 Chi-square INTRODUCTION 1.1 Motivation and objectives of this research While service quality has been studied since 1980s, the e-service quality started to attract attention from both researchers and practitioners since around 2000 When websites are being widely deployed commercially, e-service quality enter the picture as a differentiating strategy which is essential for a company’s success, possibly more crucial than web presence and low price (Zeithaml, 2002) The necessity of assessing the factors associated with e-service quality increases However, it should be noted that all dimensions of traditional service quality could be not appropriate for the ecommerce context (Gefen, 2002), (Zeithaml, 2002) Therefore, there is a need to construct a measuring scale for e-service quality The e-service quality in Vietnam, a booming e-commerce market which has not reached its peak also need to be evaluated However, the empirical tests on these models with real purchasers have been limited so far (Thoa & Ha, 2017) These empirical valuations are the base for the development of shopping online service in Vietnam to go on the right track 1.1.1 Changes in online shopping in Vietnam The growth of online transactions in Vietnam, particularly in the business-tocustomer sector present a huge potential of e-commerce The Vietnamese ecommerce market is predicted to soar to $10 billion by 2020 thanks to the revolution of internet, smart-phone and social network (Nikkei Asian Review, 2017) (vnews.gov.vn, 2017) Measuring e-service quality of e-commerce sites in Vietnam is necessary because it will support online vendors in Vietnam to control and enhance its performance 12 10 10 4.07 2.97 2.2 0 2013 2014 E-commerce sale (billion USD) 2015 2016 2020 The proportion of e-commerce retail sales against total retail sales Figure 1.1 E-commerce sales in Vietnam Source: Data provided by vnews.gov.vn (vnews.gov.vn, 2017) According to Vietnam E-Commerce Association (Vecom) in 2017, online retail revenue increased by 35 percent (Huong, 2018) in Vietnam with more than 53,86 million Internet-users (An, 2018) However, the consumer’s assessment of service quality for online shopping have not been studied in Vietnam While online shopping is widely spread, the need to assess factors associated with e-service quality increases 1.1.2 Objectives This study focused on two main objectives: - Constructing and testing a multi-dimensional scale of e-service quality specifically designed for online shopping websites - Examining the relationship among e-service quality and customer satisfaction 1.1.3 Research Questions There are three research questions in this study: - What are the dimensions of e-service quality? - Which dimensions of ESQ have impacts customer satisfaction in the online context? 1.2 How can online shopping sites in Vietnam improve their e-service quality? Research Scope 1.2.1 Content Scope This research studies e-service quality, its dimensions and the correlation between eservice quality dimensions and customer satisfaction The dimensions of e-service quality has been studied since around 2000s We can observe the transitions of eservice quality research from aiming at rating a website to evaluating the whole process of e-services, from assessing technical aspects of a website before a service encounter to trying to evaluate customer perspectives after a service encounter The study continued the research stream by studying the dimensions of e-service quality as well as the importance of these dimension and their impacts on customer satisfaction base on the whole process of e-services and customer perspectives after a service encounter 1.2.2 Place Scope The study used the data collected from four among top 10 most popular e-commerce marketplaces in Vietnam including Adayroi.com, Lazada.com, Shopee.vn, and Tiki.vn These websites are ranked based on number of internet users or revenue The scope of this research focuses on online shopping sites, excluding other type of internet sites, such as free download sites, online newspapers or pure service websites (i.e., internet banking) 1.2.3 Time Scope This research used the survey data collected during February – April 2018 This data is the newest database on the e-service quality of multiple online shopping sites in Vietnam 1.3 Structure of the study The study includes chapters: Introduction, Literature Review, Analytical Framework, Data Collection, Data Analysis, Findings and Implications, Conclusions and Limitations Literature Review provides basic concepts such as traditional service quality, e-service quality and e-commerce as well as reviews past studies related to e-service quality Next, Analytical Framework shows hypothesis constructing and explains constructs of the scale Subsequently, the study presents how to collect and analyse data Finally, findings and 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System quality SYS1 Easy to navigate (Parasuraman, Zeithaml, & Malhotra, 2005), (Loiacono et al., 2002), (Barnes & Vidgen, 2002), (Bauer, Falk, & Hammerschmidt, 2006), (Collier & Bienstock, 2006) SYS2 Loading speed (Parasuraman, Zeithaml, & Malhotra, 2005), (Collier & Bienstock, 2006), (Cristobal et al., 2007), (Zemblyt, 2015), (Ting et al., 2016) SYS3 Simple to use (Parasuraman, Zeithaml, & Malhotra, 2005), (Barnes & Vidgen, 2002), (Zemblyt, 2015), (Ting et al., 2016) SYS4 Well-organized appearance (Parasuraman, Zeithaml, & Malhotra, 2005), (Lee & Lin, 2005), (Zemblyt, 2015), (Ting et al., 2016) SYS5 (Parasuraman, Zeithaml, & Malhotra, 2005), (Sundaram et al., 2017) SYS6 (Parasuraman, Zeithaml, & Malhotra, 2005), (Cristobal et al., 2007), (Zemblyt, 2015), (Ting et al., 2016) SYS7 (Parasuraman, Zeithaml, & Malhotra, 2005), (Ting et al., 2016) FUL1 (Wolfinbarger & Gilly, 2003), (Collier & Bienstock, 2006) FUL2 (Wolfinbarger & Gilly, (Sundaram et al., 2017) FUL3 (Parasuraman, Zeithaml, & Malhotra, 2005), (Ting et al., 2016) FUL4 (Parasuraman, Zeithaml, & Malhotra, 2005), (Collier & Bienstock, 2006) Easy to get on Easy to find what you need Well-organized information Order Fulfilment Received the ordered item Accurately-represented item Suitable delivery time Delivery speed frame for 2003), 51 FUL5 (Parasuraman, Zeithaml, & Malhotra, 2005), (Ting et al., 2016) FUL6 (Wolfinbarger & Gilly, 2003), (Bauer, Falk, & Hammerschmidt, 2006), (Collier & Bienstock, 2006), (Zemblyt, 2015), (Ting et al., 2016), (Sundaram et al., 2017) Protection of web-shopping SUP1 behaviour (Parasuraman, Zeithaml, & Malhotra, 2005), (Ting et al., 2016) SUP2 (Parasuraman, Zeithaml, & Malhotra, 2005), (Collier & Bienstock, 2006), (Cristobal et al., 2007), (Ting et al., 2016) SUP3 (Wolfinbarger & Gilly, 2003), (Lee & Lin, 2005) SUP4 (Parasuraman, Zeithaml, & Malhotra, 2005), (Ting et al., 2016) SUP5 (Parasuraman, Zeithaml, & Malhotra, 2005), (Bauer, Falk, & Hammerschmidt, 2006), (Zemblyt, 2015), (Ting et al., 2016) Belief in website's handling SUP6 returns (Parasuraman, Zeithaml, & Malhotra, 2005) A meaningful offered SUP7 (Parasuraman, Zeithaml, & Malhotra, 2005) Guided customers in case of SUP8 unprocessed transactions (Parasuraman, Zeithaml, & Malhotra, 2005), (Ting et al., 2016) A sincere interest in solving SUP9 customers' problems (Wolfinbarger & Gilly, 2003), (Lee & Lin, 2005), (Collier & Bienstock, 2006) Truthful offerings Timeliness of order delivery Supplementary services Protection information of personal Adequate security features Protection of information credit Convenient options returning items card for guarantee Customer satisfaction Satisfied with online stores SAT1 (Lee & Lin, 2005), (Sundaram et al., 2017) 52 Satisfied with shopping experience online SAT2 (Lee & Lin, 2005), Bienstock, 2006) Continue making transactions future (Collier & SAT3 (Parasuraman, Zeithaml, & Malhotra, 2005), (Collier & Bienstock, 2006) Be your first choice for future SAT4 transactions (Parasuraman, Zeithaml, & Malhotra, 2005), (Sundaram et al., 2017) Appendix Descriptive Statistics SYS1 SYS2 SYS3 SYS4 SYS5 SYS6 SYS7 FUL1 FUL2 FUL3 FUL4 FUL5 FUL6 SUP1 SUP2 SUP3 SUP4 SUP5 SUP6 SUP7 SUP8 SUP9 N Minimum Maximum Mean Std Deviation 593 1.0 5.0 3.908 8942 593 1.0 5.0 3.900 9265 593 1.0 5.0 3.893 9164 593 1.0 5.0 3.829 9056 593 1.0 5.0 3.813 9225 593 1.0 5.0 3.836 8954 593 1.0 5.0 3.815 9181 593 1.0 5.0 3.902 8954 593 1.0 5.0 3.891 9190 593 1.0 5.0 3.786 9443 593 1.0 5.0 3.746 9409 593 1.0 5.0 3.908 8746 593 1.0 5.0 3.819 9113 593 1.0 5.0 3.598 1.0384 593 1.0 5.0 3.751 9228 593 1.0 5.0 3.775 8633 593 1.0 5.0 3.801 9038 593 1.0 5.0 3.672 9536 593 1.0 5.0 3.641 9677 593 1.0 5.0 3.713 8925 593 1.0 5.0 3.774 8778 593 1.0 5.0 3.687 9489 53 Appendix – Factor Analysis on separated groups Extraction Method: Principal Component Analysis Upper income group SUP1 SUP2 SUP8 SUP5 SUP6 SUP3 SUP7 SUP4 SUP9 SYS1 SYS3 SYS2 SYS5 SYS4 SYS6 SYS7 FUL1 FUL5 FUL3 FUL2 FUL4 FUL6 Component 798 738 729 721 648 633 611 608 546 800 790 788 737 727 670 597 780 729 729 724 639 637 Lower income group SUP2 SUP5 SUP1 SUP3 SUP6 SUP7 SUP4 SUP9 SUP8 SYS1 SYS2 SYS4 SYS3 SYS5 SYS6 SYS7 FUL1 FUL2 FUL4 FUL6 FUL5 FUL3 Component 721 718 712 707 701 694 694 647 555 776 770 753 688 634 632 600 771 733 708 688 670 667 54 Appendix – Factor Analysis on separated groups (continued) Extraction Method: Principal Component Analysis Male SUP6 SUP5 SUP7 SUP2 SUP1 SUP4 SUP8 SUP9 SUP3 SYS1 SYS2 SYS3 SYS4 SYS6 SYS5 SYS7 FUL1 FUL4 FUL3 FUL2 FUL6 FUL5 Component 781 760 708 685 684 645 635 633 613 803 797 793 748 717 690 644 746 734 733 727 700 673 Female SUP1 SUP2 SUP3 SUP5 SUP4 SUP8 SUP9 SUP7 SUP6 FUL1 FUL6 FUL3 FUL2 FUL5 FUL4 SYS2 SYS1 SYS4 SYS5 SYS3 SYS6 SYS7 Component 812 763 736 694 661 649 575 568 541 770 683 679 654 626 600 763 752 721 705 654 55 Appendix – Questionnaire SURVEY ON E-SERVICE QUALITY OF ONLINE SHOPPING WEBSITES IN VIETNAM If you have made at least purchase transactions at one of the online shopping websites (among Lazada.com, Adayroi.com, Tiki.vn, Shopee.vn) within the last three months, please evaluate the e-service quality of the websites you have transacted This survey aims to improve the quality of e-commerce sites in Vietnam We are looking forward to receiving your help SECTION – SCREENING QUESTIONS The online shopping site that you choose to evaluate in this survey  Adayroi.com  Lazada.com  Shopee.vn  Tiki.vn Frequency of online purchases in the last months at the website you are evaluating  No transactions  Less than three times  More than three times SECTION – E-SERVICE QUALITY SCALE Please evaluate your shopping experience on the 5-point Likert scale ranging from “strongly disagree” to “strongly agree” Likert scale 1-5 Meaning of Likert scale N o strongly disagree disagree neutral disagree strongly agree SYSTEM QUALITY This site enables me to get on to it quickly Trang bán hàng online khiến tơi nhanh chóng ý đến nó, nhận biết tiếp cận It makes it easy to get anywhere on the site Tôi dễ dàng di chuyển đến phần trang It loads its pages fast Trang bán hàng online tải thông tin nhanh This site is simple to use Sử dụng trang bán hàng online đơn giản This site is well organized Trang bán hàng online xếp, tổ chức tốt This site launches and runs right away Trang bán hàng online vận hành ổn định, không xảy lỗi This site does not crash Trang bán hàng online không xảy cố ngừng hoạt động đột ngột The site doesn’t waste my time Trang bán hàng online khơng lãng phí thời gian Information at this site is well organized Thông tin trang bán hàng online xếp khoa học, hợp lý 56 14 This site makes it easy to find what I need Tơi dễ dàng tìm thơng tin cần trang bán hàng online The website provides in-depth information Trang bán hàng online cung cấp thông tin đủ chi tiết sản phẩm It has in stock the items the company claims to have Trang bán hàng online đưa thông tin trung thực hàng kho This website has good selection Trang bán hàng online có chọn lọc tốt thông tin This site provides a telephone number to reach the company Trang bán hàng online cung cấp thông tin liên hệ (số điện thoại liên hệ, phận chăm sóc tơi online) tơi cần hỏi thông tin gặp cố 15 ORDER FULFILMENT It enables me to complete a transaction quickly Tơi thực hoàn thành giao dịch dễ dàng nhanh chóng trang bán hàng online 16 Pages at this site not freeze after I enter my order information Trang bán hàng online không ngừng hoạt động đặt lệnh mua hàng 10 11 12 13 17 18 19 20 This site makes items available for delivery within a suitable time frame Khung thời gian giao hàng cho sản phẩm đưa hợp lý The level of personalization at this site is about right, not too much or too little Mức độ yêu cầu cung cấp thông tin cá nhân khách hàng vừa đủ, khơng q nhiều, khơng q It quickly delivers what I order Hàng giao nhanh chóng sau đặt hàng The product is delivered by the time promised by the company Sản phẩm giao thời gian cam kết, thỏa thuận 22 You get what you ordered from this site Bạn nhận loại hàng mà bạn đặt từ trang bán hàng online The product that came was represented accurately by the website Hàng giao giống hình minh họa trang bán hàng online 23 It is truthful about its offerings Trang bán hàng online trung thực ưu đãi, quyền lợi dành cho khách hàng 21 57 30 SUPPLEMENTARY SERVICES The website has adequate security features Trang bán hàng online có đầy đủ tính bảo mật It protects information about my Webshopping behavior Trang bán hàng online bảo vệ thơng tin cá nhân thói quen, thái độ hành vi mua hàng It does not share my personal information with other sites Trang bán hàng online không chia sẻ thông tin cá nhân với trang khác This site protects information about my credit card Trang bán hàng online bảo mật thơng tin thẻ tín dụng tơi This site compensates me for problems it creates Trang bán hàng online đền bù cho vấn đề tạo It compensates me when what I ordered doesn’t arrive on time Trang bán hàng online đền bù cho hàng không giao lịch hẹn giao hang It picks up items I want to return from my home or business Trang bán hàng online nhận lại mặt hàng mà trả địa giao dịch 31 It takes care of problems promptly Trang bán hàng online quan tâm đến vấn đề, cố cách nhanh chóng 24 25 26 27 28 29 32 33 34 35 36 37 Inquiries are answered promptly Các yêu cầu trả lời nhanh chóng It provides me with convenient options for returning items Trang bán hàng online cung cấp cho phương án tiện lợi trả lại hàng This site offers a meaningful guarantee Trang bán hàng online có đảm bảo, bảo vệ cho người mua hàng sau mua hàng It tells me what to if my transaction is not processed Trang bán hàng online có dẫn việc phải làm giao dịch không thực thành công This site handles product returns well Trang bán hàng online giải vấn đề trả lại sản phẩm tốt When you have a problem, the website shows a sincere interest in solving it Khi có vấn đề xảy ra, trang bán hàng online thể quan tâm chân thành việc giải vấn đề 58 SECTION – GENERAL INFORMATION Please indicate your age  Less than 25 years old  From 25 to 40 years old  From 40 to 55 years old  Above 55 years old Please indicate your gender  Male  Female  Others Please indicate your income  Less than million per month  From 5-10 million per month  From 10-18 million per month  Above 18 million per month Please tell us your residence area: _ Please tell us your full name (optional): _ Sincerely thank you for your help 59 ... service quality in the context of online retailers Online service attributes to measure service performance of online retailers A multiple-item measure for assessing the perceived eservice quality. .. Changes in online shopping in Vietnam The growth of online transactions in Vietnam, particularly in the business-tocustomer sector present a huge potential of e- commerce The Vietnamese ecommerce... measuring scale for e- service quality The e- service quality in Vietnam, a booming e- commerce market which has not reached its peak also need to be evaluated However, the empirical tests on these