THE IMPACT OF THE C UTCOME QUALITY ON CUSTOMER SATISFACTION: THE CASE OF SHOPEE45323

This study focuses on the impact of service outcome quality on customer satisfaction by examining the case of Shopee.. Based on previous researches, a model is adapted to test the impac

CUSTOMER SATISFACTION: THE CASE OF SHOPEE

Tran Trong Vu Long” ABSTRACT

Vietnam will become one of the highly developed e-commerce markets

in the world Vietnamese consumers engage more in e-commerce market However, there have been many obstacles and problems in this type of market It is therefore important to improve outcome quality so

as to improve customer satisfaction in this market This study focuses

on the impact of service outcome quality on customer satisfaction by examining the case of Shopee The data was collected by online survey and pencil-paper survey with the answer of 430 respondents who has

at least one time bought products in the Shopee website Based on previous researches, a model is adapted to test the impact of order condition, timeliness, and order accuracy on customer satisfaction The data was then analyzed using linear regression with the support

of SPSS software The results show that the three factors of order condition, timeliness and order accuracy have a positive impact on customer satisfaction Besides, the secondary data was used to compare with Shopee’s competitors This study also proposes recommendations for Shopee to improve customer satisfaction

Keywords: Customer satisfaction, shopee, outcome quality

1 VNU University of Economics and Business, Vietnam

*Corresponding author: vulong190197@gmail.com

1 INTRODUCTION

In Vietnam, e-commerce market is considered to have potential for booming development According to the Vietnam E-commerce Association, the growth rate of e-commerce in 2017 reached over 25% and this rate might remain stable in the next three years Moreover, according to EU-Vietnam business network, Vietnam currently has one of the fastest growing B2C E-commerce markets in the Southeast Asia, with a 32.3% compound annual growth rate in 2013-

2017, translating to a market size of EUR 5.5 billion (Research report

of E-Commerce Industry in Vietnam, 2018) Otherwise, according to

Vietnam e-commerce and Digital Economy Agency, the percentage of people who bought product from an e-commerce website at least once

a year reached 67% All figures showed that the e-commerce market in Vietnam is attractive, highly potential for development

Despite its high development, the e-commerce market in Vietnam still faces obstacles Some main obstacles can be mentioned including: products have lower quality compared to what it is said

in advertisements, shipping services are weak, it is very hard to order online, etc Most of those issues are related to service outcome quality

of e-commerce companies

In the world, there have been a number of researches on customer

satisfaction and loyalty in online shopping or e-commerce Some researches focused heavily on analyzing the impact of website design,

the ease of use of the website on customer satisfaction (Ladhari,

2010; Udo et al., 2010) However, outcome quality in e-commerce

market has not been researched deeply by scholars

In Vietnam, in the e-commerce field, some studies researched

factors on affecting intention of online shopping or customer loyalty

(Ngo Quoc Chien et al., 2017; Ha Ngoc Thang & Nguyen Thanh

Do, 2016)

Thus, researches about outcome quality are still constrained to the context in Vietnam as well as in the world Therefore researches

on the issue of outcome quality are necessary for the development of

e-commerce market

2 LITERATURE REVIEW

2.1 E-service quality and customer satisfaction

E-service quality

In each organization, company, enterprise, the concept of e-service quality is defined based on the policy, culture and internal factors Zeithaml et al (2000) states that service quality on the Internet is the extent to which a website facilitates efficient and effective shopping, purchasing, and delivery of products and services This definition is supported by the concept of service quality in e-commerce proposed by Santos (2006)

In term of online consumer, e-service quality becomes a key function for consumers For online suppliers, e-service quality can create differentiation point, motivate customer use online shopping Previous studies on online shopping have shown that e-service quality impacts to customer satisfaction and indirectly increases customer loyalty (Jain & Sareen 2015; Ludin & Cheng, 2014)

Customer satisfaction

Researchers defined customer satisfaction in a variety of perspectives Chang et al (2009) defined customer satisfaction as

‘the psychological reaction of the customer with respect to his or her prior experience with the comparison between expected and perceived

performance In conclusion, in term of e-commerce, the relationship

between e-service quality, customer satisfaction, customer loyalty and customer perceived value is particularly important

2.2 Outcome quality

Online shopping is a remote transaction; consumers cannot consume the product immediately and must wait for product delivery

Therefore, the outcome quality should be introduced as a dimension

of the e-retailing service quality In the study of Wu (2014), outcome quality is based on what customers are left with after the quality of

services is delivered

According to Zhang (2014), outcome quality is composed mainly

of delivery accuracy and product completeness Delivery accuracy refers to the exact delivery to customers Product completeness refers

to high-quality, timely and qualified products received by customers

Meanwhile, Collier & Bienstock (2006) defined outcome

quality is what the customer is left with at the end of the transaction and play an incredibly influential role in the evaluation of overall service quality The study proposed that the dimension of e-service outcome quality is made up of three factors: order condition,

timeliness, and order accuracy

2.3 Impact of outcome quality on customer satisfaction

To evaluate the factors affecting quality of service in the gaming industry, Wu (2014) proposed a model with three primary dimensions and 13 subdimensions to measure the service quality perceived by customers The research discovered among three primary dimensions (Outcome Quality, Physical Environment quality, Interaction), outcome quality is the most important dimension perceived by customers

In 2006, the study of Collier (Collier & Bienstock, 2006)

proposed a framework for how customers judge e-service quality This model included three firs-order dimensions: process, outcome, and recovery quality Outcome quality and recovery quality have significant relationship with satisfaction, but no relationship with behavioral intentions However, outcome quality will be the popular

reason to attract customers to the online retailer’s website

The results of literature analysis are summarized in Table 1

Table 1: A review of the dimensions of outcome quality

in e-service quality

¢ Collier & Bienstock (2006) Order condition |s Zhang, Huang, He & Wang (2014)

¢ Jain, Gajjar, Shah & Sadh (2017)

¢ Collier & Bienstock (2006) Timeliness ¢ Ding, Hu & Sheng (201)

¢ Jain, Gajjar, Shah & Sadh (2017)

¢ Collier & Bienstock (2006) Order accuracy | Ding, Hu & Sheng (2011)

¢ Zhang, Huang, He & Wang (2014)

Source: Author's collection

3 METHODOLOGY

Based on the models mentioned before, this study proposed

a model include three scales: order condition, timeliness and order accuracy Moreover, the model proposed that e-service outcome quality dimensions are linked to customer satisfaction

Explain the model

Outcome quality: It is understood that all the customers realized after the service quality is provided (Fassnacht Koese, 2006) Outcome quality is measured by three scales:

Table 2: Description of the measure scales

satisfaction service can meets the customer's

Refers to the product being free ° Collier & Bienstock, 2006 ¢ Ding, Hu & Sheng, 2071 from damage and decay Measure

] condition ¬ the extent to which customers ¢ Zhang, Huang, He

receive the correct order with the

initial order information Measures whether the customer receives the service withinthe |» Collier & Bienstock, 2006 desired time: delivery time, the |» Ding, Hu & Sheng, 2011

2 |Timeliness | time itis announced will receive |» Jain, Gajjar, Shah & Sadh, 2017

the product Or refer to receiving |» Zhang, Huang, He the service within an expectation j* & Wang, 2014

of time Measures whether the customer has received the right product: Collier & Bienstock, 2008 the product is not damaged when

wee as ¢ Ding, Hu & Sheng, 2011 Order shipped The specifications of the

3 accuracy _| product are in accordance with e Li & Reima, 2009

the information on the website, 8 Wana, 2014 the relevant information is fully a provided

The scale whether the ¢ Blut, Chowdhry, Mittal & Brock, Customer | measurement of the ability of 2015

4 y + Collier & Bienstock, 2006

¢ Wu, 2014 Chang, Wang &Yang, 2009

Hypothesis of the study

e Hypothesis 1: Order condition

customer satisfaction

Source: Author's collection

has positive impact to

e Hypothesis 2: Timeliness has positive impact to customer

satisfaction

e Hypothesis 3: Order accuracy a positive impact to customer

satisfaction

Outcome quality

Order condition

Order accuracy

Customer satisfaction

Figure 1: The final conceptual model

Source: Adapt from research model of Collier & Bienstock (2006)

Sample of research

In this research, the sample will be the customers, who have the experience about shopping online in the Shopee website The study mostly studies customers in big cities such as Hanoi

Data collection

Primary data

Two types of methods obtaining primary data include online questionnaire with the Google.docs tool and pencil-and paper

questionnaire

Questionnaire is made of 15 questions to investigate customers’

opinion about the situation of outcome quality in Shopee It

includes: 4 questions to measure the scale of Order condition, 3

questions to evaluate the scale of Timeliness and 5 questions to measure the scale of Order accuracy Three final questions will measure the customer’ perceive about service in Shopee website In addition, three demographic questions are used (age, sex, income) All items except the demographic questions are on a 5-point

Likert-type scale, anchored by 1 = totally disagree, 2 = disagree, 4

= agree and 5 = totally agree Neither agree nor disagree at the scale midpoint was rated a 3

Secondary data

e Information provided by Shopee: Author has made various reference to information in the official web site of Shopee Vietnam (https://shopee.vn), where annual _ reports,

company policies, history summaries, etc., are presented

e Other documents: Official documents, reports become sources of reference within the study

The author used the SPSS 16.0 software to proceed the data

The result will show the relationship between the e-service outcome

quality dimensions‘ and customer satisfaction

4 RESULTS AND DISCUSSIONS

4.1 Correlations analysis

Correlation analysis is performed between the dependent variable: Customers Satisfaction (CS) and the independent variables:

(1) order condition (OC), (2) timeliness(TL), (3) order accuracy (OA)

While correlation between independent variables is also analyzed to detect close correlations among independent variables

Table 3: Pearson's correlation coefficient

** Correlation is significant at

the 0.01 level (2-tailed)

Source: Data processing results from SPSS 16.0 software by author

According to the results, independent variables have a quite strong linear correlation with the dependent variable, the correlation coefficients are statistically significant (Sig < 0.01) Specifically, the correlation relationship between variables is as follows:

¢ Correlation of order condition (OC) and customers satisfaction (CS) is r = 0.496

¢ Correlation of timeliness (TL) and customers satisfaction (CS)

is r = 0.432

¢ Correlation of order accuracy (OA) and customers satisfaction (CS) is r = 0.529

Results of correlation analysis also showed that correlation coefficient between independent variables are strong It leads to

we could be considered for multi-collinearity phenomenon when analyzing regression such as correlation between order accuracy (OA)

and order condition (OC) with r = 0.534.

4,2 Regression analysis

To assess the relationship and evaluate the impact dimension of group factors author used the analytical method regression with the support of SPSS software Relationship between customer satisfaction and factors groups in the Outcome quality scale was as follows:

Y=a,+4,0C+a,IL + a,0A + ef

In this formula:

Y: Dependent variable represents the customer satisfaction for outcome quality of Shopee

° a), a,, a, a,: Regression coefhicients

OC, TL, OA: Independent variable respectively: group

factors of order condition, timeliness, and order accuracy ei: Random error term

Table 4: Linear regression analysis result

Cootiients | SWE

Beta

Source: Data processing results from SPSS 16.0 software by the author

e Adjusted R square illustrates how many percent variables of the dependent variable (customer satisfaction) is explained