VNU- UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF BUSINESS AND ADMINISTRATION EVALUATING C2C AUCTION ON E-COMMERCE MARKET IN VIET NAM Student’s name: Giang Thi Phuong Thao Student ID:09050311 Intake: QH2009-E Hanoi — May, 2013 TABLE OF CONTENT LIST OF ABBREVIA TIONS.L 0112211122 1111121111192 11112111 ty ili LIST OF FIGURES 10111. - G1 1131212120111 1 11 1n vn ng vn re V ABSTRACT. HT TT ng ưu vi CHAPTER 1: INTRODUCTION.1 Problem stat€eIme€nn(.3 Research Question ad. 2 LF TBS SEGUE a0 ececesvereixerwns ersiensiiens ceumenes amavabnins KE300180014- 180509955 9969)019/00i0150705483/44% 3 CHAPTER, I: LITERATURE FEV UY ccncesnssasusnesnsnaninsecdedananens taichsicwcxeniivs cithietel 4 s5.
UHHẾREKIRUTD OE creer leis menonndc cscesabeninoollasl unprinted 4 Zid 1a HENWÍEVNNĐ TEWUĐ cc se wbernrrees ertmnniervenucths krenelebeddEcebosarprdodsltes gang poày waieencinen 4 CHAPTER HI: THEORETICAL FRAMEWORK.2 Definition of Online C2C auCfIOR.-- 2c 3222111312 2 c2 cv crrky II 3.3 Type of online aUCtIOTI.4 Benefit and limitation of electronic auction (e-auction)/online auction.1 Benefit of e-aUCfIOI. 2c 1v H121 v1 HH vn vn ng vớt 14 3.2 Limitation Of €-aUCfIOTI.c c1 1112 2v 112v ng TH vớt 17 3.3 Impact Of ©e-aUCfION.5 Online auction process and software SUPpPOF. 6 Critical success factor for online C2C auction acfiVifieS.----- 27 CHAPTER IV ONLINE C2C AUCTION ACTIVITIES IN VIET NAM. 31 A], TPEECHUHBHTDTÏL se: xung sons cee 1060220080 16/0511223.se sannm idan cưng HH mi tre oeamannnentionns 31 4.2 Type of online C2C auction in Viet Nam.3 Online C2C auction process in Viet Nam e-commerce market .1 Stage 1: Searching and ComparIng.2 Stage 2: Getting started at an auCfIOI.3 Stage 3: The actual bidding.4 Current situation of online C2C auction development in Viet Nam .5 Recommendation for online C2C auction sites in Viet Nam.ốếếếếaếaaaaốốaố anh 49 Su: |TT NT Leussenganssgbranawaeseesesrioeesleseveoridtsr.pstnerebsrmexeeserererinianixerermul 49 KHE: EblEc EU LuzÖ sence ses pene ire 5 SRS Lãng 1 L8En eR omens regen enon 51 APPENDIX — QUESTIONNARIE: CRITICAL SUCCESS FACTORS OF LIST OF ABBREVIATIONS Abbreviation Meaning CÁC» Customer to Customer TE E-commerce Electronic commerce EC Electronic commerce CSF/CSFs Critical success factor(s) MAS Multi-agent System e-auction Electronic auction e-auctioneer Electronic auctioneer iv LIST OF FIGURES Figure/Table Page Figure 3.1: Benefit of e-auction 21,22 Figure 3.2: Impact of e-auction [24 Figure 3.3: Summary of impact area 24, 25 Figure 3.4: E-auction process 26 Figure 3.5: Summary of CSFs of online C2C auction 35,35,36 Figure 4.1: Demographic table 49,50 Figure 4.2: The summary of importance level of CSF in | 50,51 online C2C auction in Viet Nam ACKNOWLEDGEMENT In this part, I would like to express my sincere thank and appreciation to people who gave me numerous support and encouragement during the time of preparing and completing my graduation thesis.
Without their help, I cannot complete such as good thesis as today. I would like to give my special thanks to my supervisor, Dr. Nguyen Viet Khoi for providing me with valuable recommendations, explanation and helpful materials. Despite his busy work and far distance, he spent much time on reading my draft and helping me correct the mistakes carefully and kindly.
Working with him, I gained a deeper knowledge background about how to conduct a thesis. Last, but by no means least, my sincere thanks are devoted to University of Economics and Business, Vietnam National University, especially the academic board, for providing me such a huge support to improve myself and gain helpful experiences. vi ABSTRACT It has been widely recognized that Internet explosion is changing the way people communicate study, interact with outer world and do business. As a result, electronic commerce has been emerging and rapidly replaced traditional business transaction environment.
In Viet Nam, from past to present exchanging products among individual is the most popular way of doing business. At the same time, Viet Nam is one of the countries which have the highest index in term of Internet usage in the world hence it is obvious that electronic commerce will affect dramatically toward Vietnamese business models. Consumer to consumer (C2C) electronic commerce started to develop significantly in Viet Nam with online shopping. One of the new developed but very potential business models is (C2C) online auction where consumers are able to sell, buy and bid to have the cheapest price for a product in a virtual world.
Although Online C2C auction could be an good method to enhance the development of e commerce, many internet users still doubt and hesitate to use it. This paper investigates the existing Online C2C auction models in Viet Nam and evaluates critical success factors that have a significant impact on the development of Online C2C auction activities in Viet Nam e-commerce market.1 Problem statement With the development of Internet in Viet Nam in general, the potential for electronic commerce is obvious. E-auction is one of the online models that is very new but potential to develop in Vietnamese electronic commerce market. In all over the world, online auction varies with different types of models and users believe and use them as an integral transaction in their buying and selling habit.
But to Vietnamese users, they tend to be very cautious to online auction websites and models especially Online C2C auction. Therefore in Viet Nam, there are only some of Online C2C auction models and websites exist such as 5giay.With such high rate of internet explosion, why Vietnamese Internet users still doubt and have a little use of Online C2C auction model? The reasons for that are still the secrets. They may originate from the security of the Online C2C auction website, the trust toward the website or sellers, the infrastructure of the website or the user satisfaction. This thesis has been chosen for discovering such problems to find new solutions for Online C2C auction website in Viet Nam.
Therefore I choose the topic “Evaluating C2C auction on e-commerce market in Viet Nam”.2 Research purpose eReview theoretical basis of online auction especially Online C2C auction model. eFind out which models are used in Viet Nam e commerce market e Review theoretical framework of critical success factors (CSF) of Online C2C auction eApply CSF in Vietnamese electronic commerce market to find out which factors are the most significant ones. eFind out real situation of online C2C auction development in Viet Nam eRecommendation to improve Online C2C auction website in Viet Nam 1.3 Research question eHow does Online C2C auction websites in Viet Nam work? eHow is current development of online C2C auction in Viet Nam? 1.4 Scope and objectives Evaluate the quality of Online C2C auction in Viet Nam and help them to improve their service 1.5 Research methodology eThe main research methodology of the thesis is desk study. It means that this research is based on the secondary data from different sources of materials such as academic researches, economic reports, financial reports, surveys and journals.
eThis thesis also uses primary data collected by sending questionnaires to Online C2C auction users to consult them about the services in Vietnamese websites. From their comments and opinions, it can be found out the solutions for improvement of Online C2C auction models in Viet Nam.6 Limitation eThe thesis only concerns on Vietnam electronic commerce therefore the result only apply for Vietnamese market. seThe sample size of the survey is limited and could be expanded to the experts and admin of Online C2C auction website in Viet Nam 1.7 Thesis structure eIntroduction eLiterature review e Theoretical framework eOnline C2C auction activities in Viet Nam eRecommendation eConclusion CHAPTER II: LITERATURE REVIEW 2.1 Introduction This chapter aims to provide background knowledge about electronic auction and CSF elements to evaluate the success of Online C2C auction website 2.2 Literature review Auction existed as a traditional form for many years ago when people started to exchange good. The examples of traditional auction were buying and selling slaves or antique.
There have been many different ways of defining what is auction. An academic concept that readers could view is “Auction is a mechanism that uses a competitive process by which a seller solicits consecutive bids from buyer (forward auctions) or buyer solicits bids from sellers (reserve auction). Prices are determined dynamically by the bids. A wide range of markets qualify as auctions using this definition.
According to McAfee and McMillan, “an auction is a market institution with an explicit set of rules determining resource allocation and prices on the basis of bids from the market participant”. Whatever the definition people form, it is generally seen as auction is a form of price negotiation that enables efficient trading of scare resource. But with the development of technology and internet explosion, auction nowadays has been migrating to the online world with almost kind of products. Many studies established the common meaning of online auction that it is the auction which is held over the Internet.
The original meaning of auction is still the same but one different thing is the environment that auction activities occur. Nowadays, we do not need a space to gather all the buyers to bid for a product. We do it virtually. Auction over internet actually started in 1995.
It is totally similar to offline auctions except for the fact that they are done on a computer. And everything became much easier. Host sites on the Internet act like a broker, they offer the services for sellers to post their goods for sale and allow buyers to bid on those items. Detail information on every item for sale is available online.
For high value items, additional information may be obtained via email. Bidders look at the descriptions and then start the bidding by sending email or filling out an election form. The biddings, which may last for a few days, are shown on a page at the host’s website, updated continually to show the current highest bids. Names of bidders are kept coded to maintain privacy.
Most auctions are live; there you compete in real time against others. In term of the format of online auction, generally it can be classified into four types “English auction, the Dutch auction, first price sealed bid and second price sealed-bid auctions” (Thomas and Wilson (2001). Kumar and Feldman divided auction into Open cry auction including English and Dutch auction, -sealed-bid auction, multi-item auction, Vickrey (second price) auction, reserve price, bid increment or bid close time. Efraim Turban had another way of classifying auction model.
Four categories of auction are respectively “one buyer, one seller”, “one seller, many potential buyers” (forward auction), “one buyer, many potential sellers (including reserve auction and the name your own price) and “many sellers, many buyers”. In Viet Nam, the most common online auction is English auction. Online C2C auction is considered the most popular method of C2C e-commerce. To evaluate the success of an online auction website, we need to find out the critical success factors.
What is the critical success factor (CSF)? CSF is defined as “the limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organization” (Rockart (1979) Even though many researchers have identified the important factors for successful e commerce, only few people could find what are the CSFs of C2C e- auction website in developing country like Viet Nam. In most of researches, they focused mainly on security and website design (Schaupp and Belanger (2005) while they seem to neglect another important element such as user’s satisfaction. According to Rawski et al 2009, user’s satisfaction includes website content, usability, format and transaction. Website design To be considered as a good website, it must be attracted visitors gradually.
It can keep them repeat browsing the same website. Website consists of text, pictures, graphs, design, sound and activities. Based on Rosen and Purinton (2004), infrastructure of a website including hyperlink, navigation bars and sitemaps attract users. The friendlier to user website provides, the more addicted visitors browse.
However, Rawski et al (2009) concluded that format, content, usability, ease of use and transaction result in more loyal user. That can increase users’ satisfaction. What a Online C2C auction website need pay more attention is the design.