THE UNIVERSITY OF DA NANG UNIVERSITY OF ECONOMICS --------------------- COURSE PROJECT COMMERCIAL BUSINESS The impact of customer experience when buying online on the satisfaction and online purchase intention of consumers in Da Nang city Lecturer: Phan Thi Nhung Students: Le Phuong Cam Linh – 191124008112 Nguyen Thi My Quynh – 191124008338 Nguyen Thi Thu Thao – 191124008342 Trinh Thi Thu - 191124008346 DA NANG, 25TH DECEMBER, 2022 TABLE OF CONTENTS PART 1 : INTRODUCTION. Reason for choosing the topic of the research paper. General research objective. Specific research objective.
Research subject and scope. Scope of research in terms of space. Scope of research in terms of time. Qualitative research method.
Quantitative research method. Research paper layout. 5 PART 2 : CONTENT OF THE REPORT. Theoretical basis and research model.
Overview of current online shopping behavior. Some related concepts. Online customer satisfaction. Online purchase intention.
An overview of the theoretical background of online customer experience. Related research models. Research model and hypothesis development. Research model development.
Pre-purchase stage and customer satisfaction. Ease of use. Purchase stage and customer satisfaction. Ease of check out.
Post-purchase stage and customer satisfaction. Ease of return. Customer satisfaction and online purchase intention. Research Method and Measurement.
Research method and process. Approach to quantitative research. Scale construction and designing the questionnaire. Ease of use (EOU).
Ease of check out (CO). Ease of return (RE). Online purchase intention (OPI). Official questionnaire structure.
Survey subjects and data collection methods. Sampling method and sample size. Data analysis methods.42 SUMMARY OF CHAPTER 2.47 Too long to read on your phone? Save to read later on your computer LIST OF FIGURES Figure 1 Growth rates of some regions in 2020 and 2021.7 Figure 2 Research model of Thi Song Hanh Pham và Mohammad Faisal Ahammad (2017) Save to a Studylist. 13 Figure 3 Research model of Ting Chi (2018).14 Figure 4 Research model of Shefali Jaiswal và Anurag Singh (2020).15 Figure 5 Research model of Nan Chen và Yunpeng Yang (2020).17 Figure 6 Research model of Sanjay Dhingra, Shelly Gupta và Ruchi Bhatt (2020).18 Figure 7 Research model of Muh Haerdiansyah Syahnur, Jafar Basalamah và Ackhriansyah Ahmad Gani (2020).
19 Figure 8 Research model of Ganesh Dash, Kip Kiefer và Justin Paul (2021).20 Figure 9 Research model of Nguyen To Nhu, Nguyen To Uyen, Dang Thi Kim Ngan (2017)21 Figure 10 Research method. 26 Figure 11 Research process. 33 Figure 12 Structure model evaluation process.44 LIST OF TABLES Table 1 Synthesis of studies using customer experience theories in research on customer satisfaction and online purchase intention.11 Table 2 Scale construction: Website design.33 Table 3 Scale construction: Ease of use.34 Table 4 Scale construction: Information quality.34 Table 5 Scale construction: Brand reputation.35 Table 6 Scale construction: Ease of check out.35 Table 7 Scale construction: Security.36 Table 8 Scale construction: Order fulfilment.36 Table 9 Scale construction: Customer service.37 Table 10 Scale construction: Ease of return.37 Table 11 Scale construction: Customer satisfaction.38 Table 12 Scale construction: Online purchase intention.39 Table 13 Questionnaire structure.40 Table 14 Internally consistent reliability evaluation criteria.42 Table 15 Criteria for assessing convergence accuracy and discriminant accuracy.43 Table 16 Structural model testing criteria.44 PART 1 : INTRODUCTION ABSTRACT Online customer experience has been an important academic and practical topic of interest, especially in the rapidly developing era of information technology. This study theoretically developed a new research model and examined the factors of three different stages of the purchasing process (before, during and after purchase) to customer satisfaction, which leads to online purchase intention.
The study's sample includes 450 consumers living and working in Da Nang city. This research paper will contribute to the literature related to online customer experience by analyzing the influence of the above factors. Implications and recommendations for further studies are also discussed in this study. Keywords: Customer experience, online customer experience, customer satisfaction, online purchase intention.
Reason for choosing the topic of the research paper According to Holmlund et al. (2020), with the rapid development of online shopping, customer experience gradually became the main source of a retailer's sustainable competitive advantage through providing differentiated values. Retailers needed to pay attention to changes in the customer experience to increase customer satisfaction in order to gain a long-term sustainable competitive advantage (Arijit et al. According to research conducted in 2013 by Trueman et al., studying the factors that create the online customer experience was an area that plays an extremely important role in marketing research.
Although sales in the online retail industry are still experiencing safe growth, online retailers are still facing major challenges. From a customer perspective, it costed them very little (even zero) to switch between online stores (Mutum et al. So, to attract and retain customers, online retailers need to create a more enjoyable and amazing shopping experience than the competition. This means that they must understand the online experience to nurture customer loyalty.
Most research investigating factors that influence online customer experience had a tendency to focus on the pre-purchase and purchase stages, such as retail website features, including website design and performance, information quality, ease of use, and security (Turban et al. (2000), Srinivasan et al. (2002), Park and Kim (2003), Pereay Monsuwé et al. (2004), and Rose et al.
These studies had paid little attention to the post-purchase phase. Additionally, studies examining customer satisfaction across all stages of the online shopping process are still limited. Only Rao et al. (2011) examined the impact of retailers' ability to fulfill orders; Griffis et al.
(2012) examined the impact of merchandise returns on online customer satisfaction. Besides, Liu et al. (2008) along with Thirumalai and Sinha (2011) were the only two research groups that are trying to combine many different elements of the entire online shopping process. However, their study overlooked an important factor in the post- purchase period, which is the customer's experience of product returns.
If only looking at one component of the entire online customer experience process, it would be difficult for retailers to fully understand the whole process so that they can recommend effective business strategies to improve customer satisfaction, customer experience and enterprise sales (Liu et al. Specifically, after analyzing research papers and scientific articles in the field of Customer Satisfaction and Online Purchase Intention of customers, the authors has found 8 related articles. General research objective Analyze the factors and evaluate their influence on customer satisfaction, thereby affecting the online purchase intention of people in Da Nang city. Specific research objective - Research relevant literature to propose theoretical research models.
- Determining the factors affecting customer satisfaction, thereby affecting the online purchase intention of Da Nang people. - Assess the influence of factors on customer satisfaction, thereby affecting the online purchase intention of Da Nang citizens. Determine which factors have the strongest influence on customer satisfaction. - Assessing the influence of customer satisfaction on the online purchase intention of Da Nang inhabitants.
- Propose administrative implications for businesses to improve online customer experience, impact customer satisfaction, thereby leading to online purchase intention of consumers living and working in Da Nang city. Research question - Which factors affect customer satisfaction, thereby affecting the online purchase intention of Da Nang people? - What is the influence of these factors on customer satisfaction? - Which factor has the strongest influence on customer satisfaction? - How does customer satisfaction affect online purchase intention? - What should businesses do to influence consumer satisfaction, thereby affecting the online purchase intention of Da Nang people? - What should businesses do to improve the likelihood of consumers buying online in Da Nang? 2. Research subject and scope 2. Research subject Factors affecting customer satisfaction, thereby affecting the online purchase intention of consumers in Da Nang city.
Scope of research in terms of space This research studies consumers in Da Nang city. Scope of research in terms of time This research collects data from October 2022 to December 2022. Research method This study uses a combination of both qualitative and quantitative research methods. Qualitative research method - Desk research: Collecting documents and research articles available in Vietnam and abroad to have an overview of the research problem and understand the theoretical bases for the research topic.
- Interviewing experts: Interviewing experts who are lecturers of the Faculty of E-commerce in order to complete the theoretical basis, research models on the factors affecting customer satisfaction, thereby affecting the customer's online intention to purchase. In addition, the authors also conduct interviews with people doing online business in Da Nang city to understand the actual situation of the topic better, thereby offering suitable solutions for the research. - Group discussion: Participate in discussions with experts and lecturers in the industry to perfect the theoretical basis. Besides, the research members also cooperate with each other, discussed and exchange to develop the topic as well as complete the survey questionnaire.
- Observation: Observe consumer interactions on websites, e-commerce sites and Fanpages of online businesses in Da Nang to capture customer trends of online shopping behavior today. Quantitative research method - Quantitative research method is to collect and analyze information based on data collected from the market - Da Nang city, specifically, consumers answering the study's questionnaire. The data that is collected in this research is primary data. Data will be collected through surveys sent to online consumers by Google Forms.
- This method is implemented through the process of collecting and analyzing data in order to test the model, verify the scale, confirm the hypothesis and answer the research questions that have been set out previously. 4 - After collecting, the team will review the valid data to perform data encryption. The authors use SPSS to make descriptive statistics, evaluate the research scale, analyze relationships and finally draw conclusions. This investigation helps to understand the market situation to come up with appropriate solutions and business models better.
Research paper layout Chapter 1: Theoretical basis and research model Chapter 2: Research method and measurement Chapter 3: Research results Chapter 4: Conclusion and management implications 5 PART 2 : CONTENT OF THE REPORT CHAPTER 1. Theoretical basis and research model I. Research overview The rapid change of technology has led to a significant change in the purchasing behavior of consumers. Instead of shopping directly at the store, many people have turned to online shopping because of its convenience.
Moreover, the customer's store-to-store switching costs are nearly zero. This has posed a big challenge for e-retail businesses in understanding the factors affecting customer satisfaction, thereby leading to online purchase intention. Based on the idea of Dynamic Model of Online Customer Experience, this study has explored the satisfaction and purchase intention of Da Nang consumers from the perspective of considering factors belonging to three different stages (4 elements of the pre-purchase stage, 2 elements of the buying stage and 3 elements of the post- purchase stage) of the customer journey. A questionnaire was designed to confirm the proposed hypotheses.
The results of the study will show that e-retail businesses should invest their company's resources in improving which factors in which stage to improve customer experience; thereby, increasing customer satisfaction and stimulating online purchase intention. Overview of current online shopping behavior Online shopping is currently the most popular trend in the digital age because of the tremendous development of technology and the conveniences it brings, including the ability to save time, money, effort, money and many other benefits. This is reflected in the percentage of consumers who shop online as well as the income generated by online retail, both of which are constantly increasing over time (Germany et al. According to the Vietnam E-commerce Association (VECOM), the average growth rate of e-commerce from 2016 to 2019 was about 30%.
Retail e-commerce of consumer goods and services had grown in size, from $4 billion in 2015 to about $11. Vietnam's e-commerce grew by about 15% in 2020, and reach about 13. By 2021, the growth rate of Vietnam's e-commerce had reached over 20% and surpassed the 16 billion USD mark.