How social media usage related to customer relationship from e commerce model perspective in ho chi minh city, vietnam

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY -  - NGUYỄN NGỌC LOAN HOW SOCIAL MEDIA USAGE RELATED TO CUSTOMER RELATIONSHIP FROM E-COMMERCE MODEL PERSPECTIVE IN HO CHI MINH CITY, VIETNAM BACHELOR’S THESIS SPECIALIZED IN BUSINESS MANAGEMENT CODE: 7340101 HO CHI MINH CITY, 2018 MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY -  - NGUYỄN NGỌC LOAN HOW SOCIAL MEDIA USAGE RELATED TO CUSTOMER RELATIONSHIP FROM E-COMMERCE MODEL PERSPECTIVE IN HO CHI MINH CITY, VIETNAM BACHELOR’S THESIS SPECIALIZED IN BUSINESS MANAGEMENT CODE: 7340101 SUPERVISOR M.A DINH THU QUYNH HO CHI MINH CITY, 2018 i ABSTRACT It is undeniable that social media has becoming a huge part in everybody daily life in recent years More importantly, social media has affected customer‟s buying decisions in many ways and thus, the impact of social media is drawing more attention from researchers and E-commerce companies It is widely believed that using social media may benefit for e-commerce and because of that, many companies has started to involve social media into their business However, social media really make a big contribution to e-commerce? This study regards customer relationship as one aspect of e-commerce and focus to find out the relationship between the use of social media and customer relationship whether it is positive or negative ii DECLARATION I declare that this thesis research is entirely my own composition, the research‟s result is honest, in which there is no previously published content or other content performed by another person except the quotations are cited completely in the thesis I am responsible for my thesis Student iii ACKNOWLEDGEMENT I would like to take this opportunity to acknowledge several individuals who have helped me to complete my thesis First of all, I would like to express my special appreciation and thanks to my supervisor Dinh Thu Quynh, you have been a tremendous mentor for me I would like to thank you for encouraging my research and for allowing me to grow as a proud student of the Banking University of Ho Chi Minh city Your advice on both research as well as on my future career have been invaluable Without her motivation and instructions, the thesis would have been impossible to be done effectively Secondly, I would especially like to thank my amazing family for the love, support, and constant encouragement I have gotten over the years Finally, I am grateful to have all of my friends who always support me during time I study in university I am thankful for the times that they have listened to me, advised me and even comforted me Their kindly help, care and motivation gave me strength and lift me up all the trouble for the rest of my life iv TABLE OF CONTENT ABSTRACT i DECLARATION ii ACKNOWLEDGEMENT iii TABLE OF CONTENT iv LIST OF FIGURES vii LIST OF TABLES viii CHAPTER INTRODUCTION 1.2 RELATED RESEARCHES 1.3 AIMS AND OBJECTIVE OF THE RESEARCH 1.4 SUBJECT AND SCOPE OF THE STUDY 1.5 RESEARCH METHOD 1.6 STRUCTURE OF THE STUDY SUMMARY CHAPTER 10 LITERATURE REVIEW 10 2.1 SOCIAL MEDIA 10 2.1.1 The form of social media 12 2.2 E-COMMERCE 14 2.2.1 Customer Relationship Management 15 2.3 BUSINESS MODEL 17 2.3.1 E-Commerce Business Model 18 2.3.2 E-Business Model Ontology 19 2.4 OSTERWALDER & PIGNEUR MODEL 21 v 2.5 SOCIAL MEDIA IMPACTS 22 2.5.1 Information Strategy 23 2.5.2 Feel And Serve (Distribution Channels) 24 2.5.3 Trust And Loyalty 24 2.5.4 Customer Relationship 26 SUMMARY 28 CHAPTER 29 METHODOLOGY 29 3.1 CHOICE OF METHODOLOGY 29 3.2 RESEARCH APPROACH 30 3.3 RESEARCH STRATEGY 31 3.4 SAMPLE 31 3.5 QUESTIONNAIRE FORMAT 32 SUMMARY 37 CHAPTER 38 ANALYSIS SCALE STRUCTURE AND DATA PROCESSING 38 4.1 DEMOGRAPHIC CHARACTERISTICS 38 4.1.1 Frequencies: Gender 38 4.1.2 Frequencies: Age 40 4.1.3 Frequencies: Income 42 4.2 MODEL DESCRIPTION 43 4.2.1 Social Media 44 4.2.2 Information Strategy 46 4.2.3 Feels and Serve 47 4.2.4 Trust and Loyalty 49 4.2.5 Customer Relationship 50 4.3 MEASURING THE REALIABILITY OF THE SCALE BY CRONBACH’S ALPHA 52 vi SUMMARY 56 CHAPTER 57 CONCLUSION 57 5.1 CONCLUSION 57 5.2 LIMITATION 59 5.3 FUTURE RESEARCH 59 SUMMARY 61 APPENDIX 62 REFERENCES 66 vii LIST OF FIGURES Figure Social Trinity Model (MCKEE 2010, P.183) 13 Figure E-Commerce Model Frameworks (Osterwalder & Pigneur, 2002) 20 Figure Model A (Osterwalder & Pigneur, 2002, Modified) 22 Figure Gender Distributions 38 Figure Age Distributions 40 Figure Income Distributions 42 Figure Social Media Platforms 44 Figure Social Media Using Purpose 45 Figure Respondents distribution of Information Strategy 47 Figure 10 Respondents distribution of Feel and Serve 48 Figure 11 Respondents distribution of Trust and Loyalty 50 Figure 12 Respondents distribution of Customer Relationship 51 viii LIST OF TABLES Table Survey Question 34 Table Statistical description of Information Strategy 46 Table Statistical descriptions of Feel and Serve 47 Table Statistical descriptions of Trust and Loyalty 49 Table Statistical descriptions of Customer Relationship 50 55 Item-Total Statistics Scale Corrected Cronbach's Scale Mean if Variance if Item-Total Alpha if Item Item Deleted Item Deleted Correlation Deleted CR1 7.2646 3.934 575 861 CR2 7.0717 2.743 757 678 CR3 7.1166 2.653 748 690 The results of Cronbach alpha analysis of the above conceptual scale show that all measurement concepts reach the Cronbach Alpha coefficient of 0.70 or higher Specifically, the Cronbach Alpha coefficient varies from 0.761 to 0.825 so there is no need for variables to raise Cronbach Alpha Thus, the scale of research concepts reaches the required reliability After all the variables have been reached, we determine the representative factor in terms of the average calculation for further analysis COMPUTE cr = (CR1 + CR2 + CR3) / 56 SUMMARY In Chapter 4, the thesis analyzed the descriptive statistics of the sample, evaluated the reliability of the scale by using Cronbach's Alpha Based on the result obtained after processing and analyzing data in chapter 4, the next chapter presents the conclusion of the current study, and identifies limitations as well as propose direction for further research 57 CHAPTER CONCLUSION This chapter summarized the research process and outcomes of this study And it will also answer the research questions based on the above discussion section The research limitation and recommend further research have also been mentioned in this final chapter 5.1 CONCLUSION The objective of this study is to investigate the generated influences of social media on the customer relationship aspect of e-commerce To identify the concept of customer relationship, an e-commerce model approach has been adopted The study used the element of customer relationship, which is inside the e-business model ontology (e-BMO) model, and selected the customer relationship part as the starting point of this research In the e-commerce model ontology, the customer relationship element is composed of three parts: information strategy, feel and serve, trust and loyalty “What‟s the relationship between the use of social media and e-commerce customer relationship?” is our main research question To answer this question, we need to first answer the two developed sub-questions ● Sub-question 1: Is social media use related to the customer relationship? ● Sub-question 2: How is social media use related to the customer relationship? In this study, we found out that social media is in fact related to the customer relationship and has a positive impact by looking at the responses from survey Questionnaires were prepared and distributed among individual contacts and received 223 responses According to the result, most respondents agreed that by using social 58 media, they are more likely to aware about the products and please with the service of the company It can be seen that social media is now a very popular means to interact and shopping in both sexes: female and male The majority of respondents are young, which are between the age of 18 to 24 and 25 to 34 The convenience of being able to make a purchase from the comfort behind one‟s laptop or smartphone fits the busy lifestyle that many consumers engage in today With young people using social media frequently, they usually set trends and thus companies can take advantage of this to promote products that are in trends It indicates if that e-commerce companies use more social media forms, the customer‟s relationship can be improved Therefore, a company should select the appropriate social media types to use and interact more with its users to increase customer‟s positive attitude However, the primary reason to utilize social media is still to stay connected with friends and family Businesses should be mindful of this and tread carefully, avoiding overflowing customer‟ newsfeeds and homepages Moreover, it is important though to sustain a healthy balance between posting discounts and promotions, while not bombarding consumers As stated prior, many consumers utilize social media to stay in touch with friends There is certainly something to be said for sharing inside information and appealing to consumers as an acquaintance, rather than a pushy salesperson, therefore increase their trust and loyalty Overall, we concluded that social media is in associated with customer relationship within an e-commerce content Involving more social media applications into e-commerce customer relationship management will produce positive effects, which is as our expectation Therefore, e-commerce companies should carefully develop their customer relationship management strategy with the use of social media By understanding the consumers‟ information needs of the purchasing, companies can actively use this to benefit the consumers‟ shopping experience 59 5.2 LIMITATION As with any study, this study has several limitations, including: The use of a non-random convenience sample does not ensure the generalizability of the study Considering practical impossibility of getting a list of all the members of population who use social media and also shopping online But a random sampling method could make it possible to apply the results to the whole population Questionnaire could be send to random users so they may not answer truthfully Secondly, the current study only used a sample size of 223 respondents, this sample size is just guaranteed according to the theory of choosing sample It was difficult to ensure that this sample properly represented the population The respondents may have answered in a way that were not completely truthful, in order to please the interviewer The value of this study will be higher if the sample size is larger Due to time and capacity are limited The research question is quite a new academic area, which makes it hard to find relevant research literature to guide the questionnaire design 5.3 FUTURE RESEARCH This study is a qualitative and quantitative study with survey method, which approached from the customer‟s point of view Within a quantitative research method, the study only obtained general result and still require further studies Maybe to continue this study with a qualitative research method, such as doing interview methods from the company aspect can give different results Furthermore, this study only studied the customer relationship part of e-commerce model ontology, and revised this part with social media influences Other parts of e-commerce model ontology model: Product innovation, Infrastructure management and Finance also could be 60 interesting for further researchers Besides the above topic, since in this study, the chosen interested population is people in Ho Chi Minh city Further researches can choose another group as their target population to study 61 SUMMARY This chapter gives a general conclusion about the result of this study which discussed the key findings and highlights important issues relevant to the relationship between the use of social media and customer relationship In addition, the study also presented some limitations as well as recommendations for future research 62 APPENDIX APPENDIX 1: Survey - Questionnaire Social Media Survey Thank you for agreeing to participate in this survey The research is being conducted for academic purposes at the Banking University of Ho Chi Minh City Your participation will help us to investigate the social media impacts on e-commerce, which is focus on how social media influence customer relationship The questionnaire will take no longer than five minutes to complete Please tick box below Gender  Male  Female Did you shop online before?  Yes  No Which social media you use? (You can choose more than one choice)  Facebook  Instagram  Zalo  Youtube  Twitter  Pinterest 63  Tumblr  Other: Why you use social media? (you can choose more than one choice)  To keep in touch with friends and family.
  To meet new people.
  To make professional and business contacts.
  To discover and share new music, books, films, and other entertainment  To find information and share feedback about brands and products  To play games Please provide your level of Level of agreement agreement/disagreement which represents your opinion about the following statements ( 1-Completely Disagree, 2Disagree, 3-No idea, 4-Agree, 5Completely Agree) A INFORMATION STRATEGY I am more likely to share my online shopping experience with others via social media 64 I am more likely to recommend the product, service or company since I becoming a fan/ follower of it (i.e.Facebook, Twitter) I like to participate in product communities‟ discussions B FEEL AND SERVE 1 5 Social media is the main resource, which made me aware about the product My feeling about this product increase since I become its fan/ follower I believe the quality of customer services is higher when company embrace social media into its business C TRUST AND LOYALTY I trust the information shared with me by people I know through social media channels E-commerce companies who are well known in social media are credible I feel a sense of loyalty with companies I 65 know via social media using D CUSTOMER RELATIONSHIP I have a more effective relationship with ecommerce company because of the use of social media technologies
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