HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES — INFORMATION TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION HUFLIT GRADUATION PAPER Major: Business Administration THE EFFECTS OF E-REVIEW ON ONLINE SHOPPING INTENTION OF iGEN Student’s name: Nguyen Thi Thuy Thanh ID Number: 18DH480328 Class: KM1803 Course: K24 Instructor: Mr. Dang Quan Tri HCMC, 07/2022 ACKNOWLEDGEMENTS I would like to thank many people who have directly and indirectly given their advice, suggestions, and support me to complete this graduation dissertation. First and foremost, I would like to thank my lecturer Mr. Nguyen Thanh Luan, who is the first person to open up and lead me into the world of scientific research.
Next, thank you to my supervisor, Mr. Dang Quan Tri, for discovering and exploding my potential. His invaluable advice and guidance throughout the various stages of my study did make me grow and glow myself a lot. I also would like to thank Ho Chi Minh City University of Foreign Languages — Information Technology (HUFLIT) and the Faculty of Business Administration (FBA) for providing excellent courses for me to pursue my study.
Finally, I would like to thank my beloved friend, Mr. Nguyen Phuoc Thanh, for always standing by my side and listening to me whenever I feel down. Thanks to his big encouragement, I was motivated to go on my own journey and be more assertive with my decision. ADVISOR’S ASSESSMENT DISSERTATION ASSESSMENT FORM Name of Student: Nguyen Thi Thuy Thanh ID number: 18DH480328 Title: The effects of e-review on online shopping intention of iGen Supervisor’s Name: Dang Quan Tri Starting: Feb, 2022 Finishing: July, 2022 FORMAL PRECONDITIONS Preconditions Assessment Comments Correct use of language met (sentence structure, spelling, - L] not met punctuation) |⁄|met e The dissertation is organized and Table of contents and summary L] not met consistent with the format.
Notation and list of sources in t e This report is also proof-read me accordance with formal rules in carefully and effectively. L] not met the field Design and layout in accordance met with degree programme L] not met guidelines EVALUATION OF THE CONTENT PRECONDITIONS ASSESSMENT COMMENTS 1. THEORETICAL CX insufficient The theory used in this report is FRAMEWORK & ACADEMIC sufficient appropriate and consistent with the RELEVANCE research context. CX insufficient Appropriate method with clear 2.
METHOD sufficient explanation how to use it. CX insufficient Good analysis with evidence from 3. ANALYSIS sufficient practice. CX insufficient Good conclusion and further 4.
CONCLUSION sufficient research 5. USE & CITATION OF CX insufficient Appropriate citation SOURCES sufficient 6. STRUCTURE OF THE CX insufficient Good written and full of ARGUMENT sufficient motivation to give justification for argument. COMPOSITION & STYLE CX insufficient Clear.
sufficient Other comments: Date: July 17", 2022 Name and signature of the examiner a Ding. @ Duan Ce ABSTRACT Nobody can deny that online shopping is growing and becoming a new consumption trend in Vietnam. In addition, iGen or Generation Z, who were born between late 1995 and early 2010, are expected to become potential consumers for this market in the future. Besides, e-review has become a primary source of product information and an important influence on customers’ online shopping intention.
The effects of e-review on customer behavior have recently gained significant academic attention. Therefore, there is a need to provide a review of such effects. This paper, thus, aims to investigate customers’ online shopping intention of iGen by following an inductive and more differentiated approach. By examining the link between e-review and customers’ online shopping intention through e-satisfaction, results help to gain a broader understanding of the effects of e-review on online shopping intention of iGen.
E-review is categorized into 3 specific variables in this study, namely valence, the quantity of e-review, and quality of e-review. The conceptual framework of this study was tested using data gathered from the online questionnaires directed to a total sample of 222 iGen located in Ho Chi Minh city and was then analyzed using the PLS-SEM approach. The investigation produces three findings: (1) the valence has a positive effect on e-satisfaction, (2) e-satisfaction generally increases with the high-quality of e-review but the quantity of e- review does not necessarily affect customers’ e-satisfaction, (3) customers’ online shopping intention is strongly affected by e-satisfaction given in e-commerce platform context. The research contributes novel insights into iGen’s online shopping behavior and provides important managerial implications that are of interest to iGen, online store owners, and e- commerce platforms.
Keywords: e-WOM; e-review; review valence; quantity of e-review; quality of e- review, e-salisfaction; online shopping intention LIST OF TABLES Table 1.1 The Mapping of E-commerce in Vietnam .1 Previous research abOuf ©-T€VICW. cà cà HH HH Hư nhe 12 Table 4.3 Overview of measurement model qu4ÌÏIÍy.- eeeeeeeee cece ceeeceeeeeceeeseaeseeeeaee 27 Table 4.4 Outer loadings of the measurement 11Od€Ì .- -- -- 5 - se + xem 28 Table 4.5 Fornell-Lacker’s CTIẨ€TIOTI. 32 LIST OF FIGURES Figure 3. LIST OF ABBREVIATION ANOVA Analysis of Variance AVE Average Variance Extracted CMB Common Method Bias e-WOM e-Word of Mouth GCT Generation Cohort Theory GDP Gross domestic product HTMT Heterotrait-Monotrait PLS-SEM The Partial Least Squares-Structural Equation Modeling TPB Theory of Planned Behavior VECOM Vietnam E-Commerce Association WOM Word of Mouth TABLE OF CONTENT 05/1405).
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13 “Nghị ao on. RESEARCH MODEL AND HYPOTHESES DEVELOPMENT. E-review and E-SatISfACfIOI.- 5G << HH HH HH nh re 17 3. E-satisfaction and Online Shopping ÍnfentIOI.-- - -- 5 se sx nh nh nh ng rr 17 3.- -- -- «HH nh nh ru ke 18 0057.
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DISCUSSION AND IMPLICA TION. Theoretical co nh ae. bo ii 000i co 1n. Background of the study In the past, the practice of Word of Mouth (WOM) as the medium of reference is widely practiced by customers.
WOM has grown as a result of the development of the Internet, enabling people to more quickly access the thoughts, views, assessments, and experiences of others (Sen & Lerman, 2007). It consequently created more chances for acquiring and disseminating product information. People no longer only utilize physical modes of communication to exchange information; rather, they also use online forums, chat rooms, blogs, online reviews, and newsgroups (Fei, 2011). However, there is now more information than ever before that may affect and aid in customer decision-making.
In today's modern world, there is more advanced WOM that the customer can refer to before making a purchasing decision known as e-Word of Mouth (e- WOM). eWOM is an internet-based development in which the delivery of reviews takes place on the Internet (Belarmino & Koh, 2018). The e-WOM is the electronic type of WOM that has more wide coverage rather than WOM. The quick rise and widespread expansion of virtual communities has given rise to a new sort of e- WOM, also known as e-review.
According to research, e- review is one of the most common and vital types of e-WOM. (Purnawirawan et al. Research from Nielsen revealed that 61% of customers read e-review before making a purchase decision (Nielsen, 2012). It is also estimated that 69% of customers place equal weight on e-reviews and personal recommendations (Myles Anderson, 2011).
Considering the significance of e-review, this study examines its impacts and the relationship with e-satisfaction on the online shopping intention of iGen. Online shopping overview in recent years (Covid-19) Online shopping is increasing day by day, characterized by strong customer demand and the increasing type of available goods (Tolstoy et al. With the advancement of modern technology, the online market is growing considerably. People nowadays prefer online shopping because it saves time, energy, and money.
Due to the blessing of the Internet that online shopping has made its debut which also affects the common citizens for online shopping (PermataBank, 2021). Online shopping is growing so fast that the global online shopping market size nearly hit 4 trillion in 2020. It is estimated that in 2023, eCommerce retail purchases are expected to rise from 14. Throughout history, disease outbreaks and pandemics have shaped politics, altered societies, affected personal relationships, and changed world paradigms (Snowden, 2019).
The Coronavirus (Covid-19) pandemic has already heavily influenced the way we live. As governments try to minimize the spread of the pandemic, several lockdown restrictions have been imposed that directly affect the way people and businesses operate. One of the sudden changes imposed by lockdowns is a higher use of various digital technologies such as internet- based services for communicating, interacting, and working from home (De’ et al. Customers have been more inclined to change their preferences and behavioral patterns such as shifting to online shopping and alternative pickup and delivery options (De’ et al.
Due to the extraordinary containment measures, some customers for instance have had to move to online shopping, home deliveries, or cashless payment, which they never considered before (Pantano et al. The Covid-19 pandemic impacts the whole e- commerce of the world. It has changed the nature of business. According to research, 52% of customers avoiding to go brick and mortar shopping and crowded areas (Khan et al.
Furthermore, 36% avoiding brick and mortar shopping until they get the Covid-19 vaccine (Tibay, 2021). Covid-19 pandemic affects differently on different nature of products. It means the impact of Covid-19 on several products is very high and on some products less impact (Andrienko, 2020). People now avoid going out, keep their social distance, buy from home, and work from home.
The overall sale of e-commerce increases because of this virus such as Walmart’s grocery e-commerce increased by 74% (Troy, 2020). The emergence of special circumstances due to Covid-19 has created unique conditions where users do not have the time to go through the usual decision-making process of technology adoption, initial use, and post-adoptive use phases as defined by (Snowden, 2019). Transitioning between various stages happens more rapidly and often under different levels of social isolation, where customers do not have the same access to information resources when making decisions (Raza et al. Therefore, a question arises about how and to what extent e-review affects customers’ online shopping intention.
Moreover, it is important to examine whether effectiveness also results in any new mechanisms affecting online shopping intention. Online shopping in Vietnam It has been more than two decades since the Internet started to have been used in Vietnam. When Vietnam connected to the world in 2000, the Internet users was a small figure, just 0.3% of the population 2000. However, in 2014, according to the Vietnam Internet Network Information Center, Vietnam ranks 18/20 countries with the largest number of Internet users in the world, ranking eighth in Asia and ranking third in Southeast Asia with 31,302,752 Internet users as of Dec 2013, 35.53% of the population.
Moreover, Vietnam is among the countries with the most Internet users in the Asia Pacific region. As of January 2021, out of its population of over 96 million people, the number of Internet users reached approximately 69 million (Statista, 2021). The number of Vietnam Internet users has increased from 1.3% of the population in 2001 to 70.3% of the population in 2020 (Datacommons, 2020). Such an advantage of the Internet is very potential for the development of e-commerce services.
Developing in line with the popularity of the Internet, Vietnam's online shopping market has become more vibrant.