UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF POLITICAL ECONOMY GRADUATION THESIS MAJOR: ECONOMICS INSTRUCTOR: Dr. Nguyen Thuy Anh STUDENT: Nguyen Yen Linh CLASS: QH-2020-E Economics 5 PROGRAM: Honors Hanoi, October 2023 UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF POLITICAL ECONOMY GRADUATION THESIS MAJOR: ECONOMICS Topic: Factors affecting satisfaction and reuse intention of Hanoi’s customers using online delivery services INSTRUCTOR: Dr. Nguyen Thuy Anh STUDENT: Nguyen Yen Linh CLASS: QH-2020-E Economics 5 PROGRAM: Honors Hanoi, October 2023 DECLARATION OF AUTHORSHIP I hereby declare that this paper was carried out by me under the guidance and supervision of Dr. Nguyen Thuy Anh; and that the work contained and the results in it are true by the author and have not violated research ethics.
The data and figures presented in this thesis are for analysis, comments, and evaluations from various resources by my own work and have been duly acknowledged in the reference part. In addition, other comments, reviews and data used by other authors, and organizations have been acknowledged, and explicitly cited. I will take full responsibility for any fraud detected in my thesis. The University of Economics and Business is unrelated to any copyright infringement caused by my work (if any).
Hanoi, October 2023 Author Nguyen Yen Linh ACKNOWLEDGMENT I would like to express my heartfelt thanks to the Faculty of Political Economy, University of Economics and Business - Vietnam National University, Hanoi, for organizing, teaching, and imparting the best knowledge to me, as well as creating a conducive environment for me to conduct and complete this graduation thesis. This work would not have been possible without the support of Dr. Nguyen Thuy Anh. I would like to express my sincere gratitude to her for her patient direction, passionate support, and helpful critiques while I was working on this paper.
Also, I would like to thank the 624 persons who took part in my survey to help the study acquire objective data. There were still many difficulties during the implementation of this work due to my limited knowledge and experience. As a result, the study cannot avoid inaccuracies. Please provide constructive criticism and suggestions to help me improve my work.
Nguyen Yen Linh TABLE OF CONTENTS ABBREVIATIONS. i LIST OF TABLES LIST OF FIGURES .--- --- 55-52555222 iv INTRODUCTIO 1 Í, The relevance Of the tOpic. St th H222 1221212121111 ước 3 2.scsseresssessesessssssssesesessssseosssssssensossssssnensosessessenseees 3 2:2, SPCCHAC ODJECHIVES. Research subjects and scope.
Research iHC(HO(OlOEY. 4 CHAPTER 1: LITERATURE REVIEW AND ANALYTICAL FRAMEWORK. nành HH Hy 6 1. Factors affecting customer satisfaction.4 Factors affecting customers’ reuse intention.
CHAPTER 2: RESEARCH METHODOLOGSY.2 Sampling and Data Collection .4 Data Analysi CHAPTER 3: RESEARCH FINDINGS.1! DGSCHIPH Ve 6LSLISUHOS(.2 Assessing measurement MOE] .1 Internal consistency reliability test resuÏts.2 Convergent validity assessment.3 Discriminant validity as$eSSIN€TI. 5-5-5 5c 5S server 39 3,3 AsSGSSIfIG StYUCtUEAi HHOdC]. Al 23/2 MuUlticOllinearity test ,;¿¿¿¿.3 Evaluate the adjusted coefficient of determination RỶ.4 Evaluate effect Size ÍP.5 Evaluate predictive ability Q?.sceccecsesssssesesseestectesnecseestesneeneensesteenes 45 CHAPTER 4: DISCUSSION AND RECOMMENDATIONS.2 Proposed recommendations for online delivery services providers.:4:s:ssssssssssssssssssesasssssssssssscsssssssssesssssacsssssesssasesesesssesess 52 2, COIIiFIDUUOH OF TE TOPIC. Limitations and future research directions.
St nhe 55 APPENDIX. 68 ABBREVIATIONS ABBREVIATIONS MEANING ATM Automated teller machine AVE Average variance extracted B2B Business-to-business B2C Business-to-consumer CR Composite Reliability EBI E-Business Index ECM Expectation Confirmation Model EFA Exploratory Factor Analysis HTMT Heterotrait-Monotrait Ratio ITU International Telecommunication Union MB Mobile banking PLS Partial Least Squares PLS-SEM Partial Least Squares Structural Equation Modeling SEM Structural Equation Modeling SERVPERF Service Performance SERVQUAL Service Quality SMS Short Message Service TAM Technology acceptance model TRA Theory of Reasoned Action UTAUT Unified Theory of Acceptance and Use of Technology UTAUT2 Unified Theory of Acceptance and Use of Technology 2 VIF Variance Inflation Factor WOM Word Of Mouth LIST OF TABLES Table Content Page Table 2 Final measurement scale 24 Table 3.1 Descriptive demographic statistics of 32 respondents Table 3.2 Descriptive statistics of the respondents’ habit 34 of using online delivery services Table 3.3 Scale reliability 36 Table 3.4 Outer loadings 37 Table 3.5 Findings of Discriminant Validity 39 Table 3.6 Heterotrait - Monotrait Ration (HTMT) ratio 41 Table 3.7 Path coefficient test results 42 Table 3.8 Results of multicollinearity testing through 43 Inner VIF Values Table 3.9 Adjusted R? value 44 Table 3.10 Effect size f? 44 Table 3.12 Results of direct effect 46 IV LIST OF FIGURES Figure Content Page Figure 1.1 Technology Acceptance Model (TAM) 16 1. Source: Venkates and Davis (1996) Figure 1.2 The Expectation Confirmation Model 17 (ECM). Source: Bhattacherjee (2001) Figure 1.3 Proposed research model 22 Figure 2 Research process 23 Figure 3 Path Analysis showing path coefficients 47 and T-values INTRODUCTION 1.
The relevance of the topic Technology and the Internet have drastically changed and influenced every aspect of human life. According to the International Telecommunications Union (ITU), more than 66% of the world's population, or 5.3 billion people, utilize the Internet by 2022. Nearly three-quarters of the world's population over the age of ten own a mobile phone, demonstrating the global reach of internet usage. Technology has altered the way people live, enjoy themselves, shop, and work.
Statistics show that by September 2022, Vietnam have more than 72 million Internet users (73% of the population). With this number, Vietnam is the country with the 12th biggest number of Internet users in the world, with the Internet economy reaching 23 billion USD in 2022 and is expected to reach 49 billion USD in 2025 (VnEconomy, 2023). Along with technology, e-commerce in Vietnam is expanding faster than ever, particularly in major cities such as Hanoi and Ho Chi Minh City. In the announcement of the Vietnam E-commerce Index Report 2022 by the Vietnam E-commerce Association, Hanoi's e-business index (EBI) ranked 2nd in the country, reaching 85.
The EBI index is composed of three component indices: human resources and information technology infrastructure, business-to-consumer (B2C) e-commerce transactions, and business-to-business (B2B) e-commerce transactions. Without a doubt, e-commerce has made purchasing, selling, and exchanging items easier than ever before, particularly with the help of online delivery services. Using online delivery services is becoming more common in big cities, and it is progressively becoming an unavoidable trend for consumers due to the convenience it provides. Online delivery services will deliver your order when and where you want it for a very affordable charge.
It is clear that, in addition to the growing demand for transportation services, competition from businesses offering similar services is becoming increasingly fierce, notably in high-demand areas like Hanoi. If the Vietnamese delivery service industry had only a few service providers in the early 2000s, the online delivery business had blossomed, with over 50 companies competing, from Vietnamese enterprises like VNPost and ViettelPost to foreign entities such as Kerry Express or DHL Express. This presents a significant challenge for online delivery service providers in maintaining and improving service quality to fulfill client expectations and improve customer satisfaction, therefore increasing the continuance intention. In fact, customer satisfaction and intent to reuse services play a critical influence in a company's success or failure.
Customers who are satisfied with a company's services are more likely to write favorable reviews, share information with others, and utilize the service again in the future. Previous research indicates that boosting customer retention by 5% can reduce operational costs by 18% (Crego & Schiffrin, 1995) and contribute to profits increasing by 25% to 95% (Reichheld & Sasser, 1990). Dissatisfaction, on the other hand, can result in client loss, an unfavorable brand image, and a reduction in corporate income and profits. As a result, a study into the factors affecting satisfaction and intention to reuse online delivery services is critical.
By better understanding these critical factors, implications can be conveyed for businesses to change and improve the quality of their services, create better customer experiences, and increase their market competitiveness. Furthermore, the application of this research's findings can assist managers and decision-makers in developing successful business strategies to achieve growth and long-term development goals in transportation services online goods in particular, and the delivery industry in general.1 General objective Identify the factors affecting the satisfaction and reuse intention of Hanoi’s customers using online delivery services. On that basis, propose suggestions for delivery service providers.2 Specific objectives e Determine the factors that affect Hanoi citizens’ satisfaction with online delivery services. e Determine the factors that affect Hanoi citizens’ reuse intention of online delivery services.
e Determine the level of factors affecting Hanoi citizens’ satisfaction and reuse intention towards online delivery services. e Provide suggestions for online delivery services providers to improve Hanoians’ satisfaction and reuse intention. Research subjects and scope e Research subject: Factors affecting satisfaction and reuse intention of Hanoi’s customers using online delivery services e Research scope: > Space: Hanoi city > Time: Y Secondary data: 2017 — 2023 v Primary data: September - October 2023 4, Research questions ¢ What factors affect the satisfaction with online delivery services of Hanoi’s people? e What factors affect the reuse intention of online delivery services by Hanoi’s people? e The level of effect these factors have on Hanoians’ satisfaction and reuse intention towards online delivery services? e What are the most reasonable suggestions for delivery service providers? 5. Research methodology To achieve research objectives and solve research tasks, this study used quantitative research methods.
The quantitative research method consists of an online survey for consumers of online delivery services in Hanoi. The survey has collected 624 samples in total. The survey was conducted to collect primary data via an online survey link, the cited survey questionnaire has a total of 27 observed variables (the question used a 5-level Likert scale) for quantitative search. The author analyzed the data with PLS- SEM using Smart PLS 3.
Outline of the research Besides the introduction and conclusion, abbreviations list, table and figure list, reference list and appendix, the study is structured into four chapters as follows: e Chapter 1: Literature review and analytical framework e Chapter 2: Research methodology ¢ Chapter 3: Research findings e Chapter 4: Discussion and recommendations CHAPTER 1: LITERATURE REVIEW AND ANALYTICAL FRAMEWORK 1.1 Vietnamese research Vo Thanh Truc et al (2021) evaluated the factors impacting customer satisfaction for express delivery services provided by the Vinh Long City Post Office. Empathy; delivery manner; responsiveness and service capacity; tangibles and reliability of the shipping corporation (ordered by declining influence) are factors that positively affect customer satisfaction for express delivery services. The degree of influence of these factors varies, according to the conclusions of this study on the factors affecting consumer satisfaction with Vinh Long Post's express delivery service. Customer satisfaction is most influenced by the postal staff's empathy and delivery manner, followed by responsiveness and service capacity, reliability, and tangibles.
As a result, the Post Office must pay more attention to customers' emotions both during and after the transaction, improve service design to increase convenience and convenience at the transaction location, and prioritize customers’ interests. Simultaneously, in order to improve customer happiness, the Post Office focuses more on packing and preserving items during shipping, as well as teaching delivery staff communication skills and competency. Le Son Tung et al (2022) have similar results in the study “Factors influencing customer satisfaction of service quality: The study in Haiphong branch Bee Logistics Join Stock company”. The paper uses quantitative methods and applies the SERVPERF model of Cronin and Taylor (1992), surveying 186 customers.
The results show that there are five factors affecting customer satisfaction with service quality, including: Tangibles, responsiveness, assurance, empathy and reliability. Le Hoang Viet Phuong (2020) explored and measured the factors affecting customer satisfaction in cargo delivery services in Vietnam. Notably, the researchers created a new scale to measure the effect of pricing on consumer satisfaction. The authors conduct group talks and expert conversations before analyzing 1,729 genuine responses based on five factors: resource, service capability, management capacity, brand repute, and price.
Exploratory Factor Analysis (EFA) results demonstrate that all independent variables have a substantial effect on customer satisfaction.