MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY CHENG BUNKRY THE EVALUATION OF CUSTOMER SATISFACTION AND SERVICE QUALITY IN ONLINE PURCHASING IN CAMBODIA MASTER OF BUSINESS ADMINISTRATION THESIS Ho Chi Minh City – 2011 TIEU LUAN MOI download : skknchat@gmail.com MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY CHENG BUNKRY THE EVALUATION OF CUSTOMER SATISFACTION AND SERVICE QUALITY IN ONLINE PURCHASING IN CAMBODIA Major: Business Administration Major Code: 60.05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr. TRAN HA MINH QUAN Ho Chi Minh City – 2011 TIEU LUAN MOI download : skknchat@gmail.com Abstract The findings of this research are mostly useful to those (managers, web designers, etc.) who intend to penetrate the Cambodian market with least cost, time and energy. The results indicate the most important web quality factors through Cambodian online shoppers’ perspective. In these recent years, a significant growth has been noticed in the Internet- based services in the pure Internet businesses as well as the traditional enterprises, which are developing their online services.
One of the key challenges of online businesses is how they manage service quality, which holds a significant importance to customer satisfaction. In addition of success stories, we should be aware of problems; in year 2000 nearly 900 US online firms were shut down, 31% of them were online retailers (Minjoon Jun, 2004). The purpose of this research is to rank the quality factors perceived to be most important in relation to the use of online shops. The questionnaire utilized was based on the SERVQUAL instrument that identifies five quality dimensions in service environments.
I TIEU LUAN MOI download : skknchat@gmail.com Acknowledgements First of all I would like to express my sincere gratitude to my supervisors, Dr.Tran Ha Minh Quanat University of Economics Ho Chi Minh City, Vietnam, for his intelligent guidance and helpful advice during the whole process, and Mr. Dang HuuPhucat University of Economics Ho Chi Minh City, Vietnam, for his very helpful supports on processing data. I would like to thank all the participants who contributed to my work, not just for their responses, but also for the good suggestions they made and their kind help. Special thanks to my family and friends for their consideration andsupport during all the process.
Cheng Bunkry II TIEU LUAN MOI download : skknchat@gmail.com Table of Content CHAPTER 1: INTRODUCTION AND BACKGROUND OF THE STUDY .1 Background of the study .3 E-commerce in Cambodia.5 Disposition of the thesis .5 CHAPTER 2: LITERATURE REVIEW.1 Definition of Customer Satisfaction .2 Techniques to measure customer satisfaction.1 Conceptualization of e-Services .3 SERVQUAL Gaps Model.4 Measuring e-Service Quality.5 Dimensions and determinants of Service Quality.11 CHAPTER 3: RESEARCH METHODOLOGY .5 Research Model & Hypotheses.6 SERVQUAL dimensions in relation to online Purchasing.19 III TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 4: RESEARCH RESULT.1 Sample and Response rate.2 Service quality measurement .1 Cronbach’s Apha Analysis.1 Measuring service quality .2 Measuring Customer Satisfaction .2 EFA Factor Analysis .1 Measuring service quality .2 Measuring Customer Satisfaction .3Examination research model .32 CHAPTER 5: DISCUSSION AND CONCLUSION .2 Implications for Theory.3 Implications for Further Research.43 APPENDIX II: TABLES .45 IV TIEU LUAN MOI download : skknchat@gmail.com List of Tables Table 2.1: Definition of customer satisfaction.1: Time of research process .1: Number of respondents by gender .2: Number of respondents by age .3: Cronbach’s apha of scale factor: assurance .4: Cronbach’s apha of scale factor: reliability .5: Cronbach’s apha of scale factor: responsiveness.6: Cronbach’s apha of scale factor: empathy.7: Cronbach’s apha of scale factor: tangible.8: Cronbach’s apha of scale factor: satisfaction .9: EFA analysis result of factors affecting customer satisfaction.10: KMO and bartlett’s test.11: EFA analysis of the satisfaction scale.12: Regression model summary.15: Hypothesis and research results.36 List of Figures Figure 2.1: Service quality model , source: parasuraman et al.1: Research process flowchart .2: Service Quality and Customer Satisfaction based on servqual .1: Hypothesis and research results.36 V TIEU LUAN MOI download : skknchat@gmail.com Page 1 CHAPTER 1 INTRODUCTION AND BACKGROUND OF THE STUDY 1. Introduction The first chapter in this thesis introduces the background of the selected area. This will be followed by a problem area discussion that will help reader to understand the insight of the research area. The problem discussions end with a research problem and specific research question.
In the end of the first chapter we will also present the disposition of the thesis.1 Background of the study This section will provide the background of the research area. This section contains some idea of e-commerce and online retailing as one of the important factor in e-commerce. Also, a brief introduction of e-commerce situation in Cambodia is brought here. This section also shows the importance of service quality and its relationship with customer satisfaction.1 E-commerce E-commerce has many definitions.
In business today electronic commerce is one of the common topics of discussion (Daniel, Wilson & Myers 2002). Is not very far from what TawfikJelassi& Albrecht Enders in 2005 believed is “Electronic commerce deals with the facilitation of transactions and selling of products and services online, i. via the Internet or any other telecommunications network".This was an academic definition for e-commerce, what practitioners believe is: "E- commerce is often referred to as e-business. In order to perform one or more of the business functions Internet based e-commerce systems use World Wide Web based application solutions.
These business functions include information provision, communication, buying, selling, TIEU LUAN MOI download : skknchat@gmail.com Page 2 distribution, customer service, delivery and payment processing among producers, suppliers and their customers etc. Using e-commerce systems organizations can market their products and services online and provide a range of services that customers themselves can perform without direct human assistance. Its allows customers to conduct a wide range of activities such as changing address, securing a credit card or loan, learning from other customers, personalizing a service agreement and purchases without human assistance (Molla and Licker 2001). Electronic commerce is a new way of conducting, managing and executing business transactions using computer (Kalakota and Whinston 1996).2 Online Retailing The rapid growth of the electronics retailers worldwide as we have known today.
Although B2B plays a larger role in part of electronic commerce rather than B2C, both of them go pass the bricks and mortar. Even if online visitors, most of them just try to search more informationinstead of buying. These sites are e-CRM (customer relationship management) necessary tools for retailers to survive in a competitive market, value added services are necessary to keep the difference with their competitor. After the emergence of many e-commerce companies start up the website to the pioneers in this field, but in the mid-2000 many bubbles burst.
The story of the surviving company will lead us to a better understanding of the strengths and powers.Customers are the lifeblood of an organization, so their satisfaction is the primary goal of the company.3 E-commerce in Cambodia In Cambodia the Internet is mainly used in the universities for research purposes, the internet stations throughout the cities are used for limited activities such as checkinge-mail and making long distance phone calls. Thus the entryof electronic commerce in Cambodia is in its early stages. Clearly, E-commerce is something new for this country, but it’s expected to grow steadily in the near future. TIEU LUAN MOI download : skknchat@gmail.com Page 3 As the follower of this area, we should use the opportunities and avoid the risks.
By analyzing the success stories and looking for the key elements of their success, and also studying the trend of online retailers which have gone away, we will be in a better position to establish policies and strategies of us. Many studies have been done in the field of online retailers worldwide, while many retailers start their website, it is time to guide them appropriately. Academician who takes the localization of foreign results to help companyachieving the world standards in Cambodia. Here is some of the Cambodian online retailers which is starting their first step: www.2 Problem Discussion Though the internet channel is increasingly being used by many online stores, but many online retailers are closed.
In the needs of a competitive market place understanding customer’s needs become very important. So the company has moved from a central product to a central location of the customer. Customer retention is directly affected by customer satisfaction. Retention is an essential challenge, particularly in Internet-based services, as customers can easily switch from one service provider to another at low cost (Khalifa and Liu, 2003).
Is not very far from Van Riel, Lijander&Jurriensin 2001which believe that “Considering the high costs of acquiring new customers and the apparently high customer turnover of many online services, it is very important to study the determinants of customer satisfaction”. Customer satisfaction is the key factor determining how successful the organization will be in customer relationships, so it is very important to measure it. Total quality management (TQM) is based on the idea of customer satisfaction - an approach to management of an organization focused on quality, based on the participation of all members and towards its long-term success through customer satisfaction and benefits to all members of the organization and to society (ISO TIEU LUAN MOI download : skknchat@gmail. The achievement of customer satisfaction actually include customer-oriented culture, an organization focused on customer, employee empowerment, ownership of the development team and relations working with customers and suppliers.
In the other words: • Improving the reputation and image of the company; • Reducing the customer turnover, increasing attention to customer needs in TQM planning; • Reducing the marketing costs and lower transaction costs; • Reducing the costs related to product / service failures; • And, finally, increasing the satisfaction among personnel and the stability of the workforce. There are many benefits of quality found through market research, especially in measuring the satisfaction of existing customers, identify customer needs for product development, and analyzing customer retention and customer loyalty. To better manage customer satisfaction, companies spend millions on effective monitor the methods to ensure that customer satisfaction, because the quantitative measurement of customer satisfaction is a great help to measure overall the impact of product quality on consumer behavior. For keeping online retailers alive with logical profits; retaining customers must be the foremost aim.
Customer satisfaction, as we discussed before, has the most important effect on customer stickiness and in order to narrowing down we focus on service quality as one of the customer satisfaction’s factors. TIEU LUAN MOI download : skknchat@gmail.3 Research Question To understand the most important dimensions of service quality that affect customer satisfaction in online purchasing in Cambodia. Based onresearch problem raising above the following research questions hasbeen developed: 1. Which Service Quality factors impact on online purchasing through Cambodian perspective? 2.
What are the orders of Service Quality factors that impact on online purchasing through Cambodia perspective? 1.4 Demarcation Since aspects of the problem areas are many choices, researchers have tried to narrow down the focus. The purpose of this study is to find the most important service quality dimensions that influence customer satisfaction online purchasing in Cambodia. In the literature, we will introduce the theory related to service quality and satisfaction to give a clear idea about the specific area to the readerand to explain the appropriate context of the study .5 Disposition of the thesis In this section we will outline how the thesis is structured: Chapter 1: This chapter will present the background of the study Chapter 2: This chapter will present theories related to the topic will be presented Chapter 3: This chapter will explain and justify our choices of methodology that will beused in order to conduct our thesis. Chapter 4: This chapter presents the data which is gathered through the questionnaire survey Chapter 5: This chapter will present the conclusions, implications and recommendationsbased on our findings TIEU LUAN MOI download : skknchat@gmail.com Page 6 CHAPTER 2 LITERATURE REVIEW 2.
Literature Review This chapter will give an overview of literature and models that are related to the research problem presented in the previous chapter.