Almost all Vietnamese internet users engage in the electronic marketplace, while some customers resist online transactions.. Not only that, Vietnamese customers tend to spend more time a
Trang 1SCHOOL OF
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STUDENT DETAILS
Student name: Đặng Hoàng Ngọc Trân Student ID number: 21000593
UNIT AND TUTORIAL DETAILS
Lecturer or Tutor name: Mr Gabriel C Ryan
ASSIGNMENT DETAILS
Title: Discuss the impacts of E-commerce on Vietnamese customer behavior.
Length: 1,236 words Due date: 2ND JAN 2022 Date submitted: 1ST JAN 2022 Home campus (where you are enrolled):
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Trang 2In recent years, Vietnam's e-commerce market has been increasingly expanded and has now become a popular business method known to businesses and people Especially in the context of the
Covid-19 pandemic, 25% of Vietnamese polled stated they have increased their internet purchasing while decreasing their out-of-home consumption (Nelson, 2020, as cited in Van et al., 2021) It can be seen that this type of business assists both sellers and shoppers conduct bargaining transactions easier Moreover, customer behavior plays an important role in the immense growth of online shopping Blackwell et al (2006) defined that consumer behavior as the actions and the decision processes of people who purchase goods and services for personal consumption Almost all Vietnamese internet users engage in the electronic marketplace, while some customers resist online transactions This paper emphasizes that the convenient features on e-commerce platforms encourage consumers to check previous customers reviews before purchasing Not only that, Vietnamese customers tend to spend more time and money on online shopping
In contrast, the risk of being lacked personal information and fakes on e-commerce prevents purchasers from participating in this new type of marketplace Additionally, Vietnamese customers are afraid of being addicted to online shopping due to the attractiveness of electronic commerce
The convenience of conducting bargaining transactions on E-commerce have been apparently impacted on Vietnamese customer behavior Compare to the past, when E-commerce did not exist in
Vietnam, customers visited many different physical retail stores to select the most suitable kinds of
merchandise for themselves The effective searching products information engine on E-commerce have remarkably influenced the decision processes of Vietnamese customers Customers are increasingly
searching online rather than physically shopping, as seen by webrooming, and conversely, more customers are searching physically and then shopping online (Hang, 2021) The most obvious proof for the quality of e-commerce items will be client feedback, both positive and negative (Le, 2020) Therefore, nearly 90% of Vietnamese customers check previous customers’ reviews before visiting a business, 31% are more inclined
to spend 31% more on a firm with outstanding evaluations, and 72% will only act after reading a positive review (Le & Ho, 2021) In general, Vietnamese internet users tend to look for product information via E-commerce platform instead of wandering physical stores or shopping malls
Trang 3According to Dang and Pham (2018), the popularity of the internet is encouraging a growing number of Vietnamese individuals to switch from physical businesses to online shopping As an
evolutionary business model, electronic commerce is believed to be more effective than traditional
commerce because consumers can conduct transactions through wireless connections anytime and
anywhere (Nguyen et al 2021) Although the functions on e-commerce platforms saved consumers’ time, Vietnamese consumers probably spend more time online shopping Shoppers can quickly identify similar goods, causing them to spend more time on the e-commerce site and lowering bounce rates (Le, 2020) Thus, Vietnamese online purchasers spend an average of 48 hours per week online, or about 6.5 hours per day (Pham et al., 2020) In conclusion, Vietnamese consumers spend more time shopping, especially online shopping
Furthermore, not only do Vietnamese shoppers spend more time online shopping, but they also spend more money on E-commerce purchases The variety of goods and the eycatching interface of the e-commerce platform have stimulated consumers to spend more money In terms of online buying experience, around 36.7 percent of Vietnamese internet users had made less than three purchases, 30.8 percent had made three to six purchases, 7.2 percent had made six to nine purchases, and 25.3 percent had made nine or more purchases (Dang & Pham, 2018) The B2C e-Commerce market in Vietnam generated 10.1 billion dollars in sales in 2019, more than double the previous year's figure of USD 5 billion (Nguyen et al , 2021)
To sum up, because of the perceived ease of access to electronic marketplace, Vietnamese customers
probably spend more money for online purchases
On the contrary, almost all Vietnamese customers have engaged in electronic commerce, but some customers resist online transactions In 2018, Vietnam continued to remain at the top among countries attacked by encryptors, holding the 5th position (2.12% of users attacked), and the 11th position among countries under the greatest risk of online infection (34.45% of users attacked) (Kaspersky, 2018, as cited in
Trang 4Luong et al , 2019) Therefore, the risk of leaked personal information discourages Vietnamese customers from participating in e-transactions Online customers are concerned that their personal information and credit card information may be sold to other firms (Vu et al., 2019) Not only that, a list containing 1500 names, addresses, and mobile numbers of subscribers of the Mobifone, Vinaphone, and Viettel mobile networks may be sold for roughly 1 million VND (around 50 USD) (Duc, 2014, Giam, 2014, as cited in Luong et al , 2019) In other words, Vietnamese customers are likely to face a high risk of personal
information leakage
Moreover, Vietnamese customers are afraid of taking part in electronic commerce due to low-quality products or fakes The majority of consumers are concerned about the risk of purchasing low-low-quality items since they cannot touch or feel them, the photographs of goods online may differ from their true images, and sellers do not offer adequate information about the products on the web (Vu et al., 2019) In addition, end-users in Vietnam complain about counterfeit goods more than in any other nation in South East Asia (Choi & Do, 2018) According to Hoa et al, (2021), when it comes to internet purchases, 64.2 percent of Vietnamese buyers have received bad-quality items which are different from items shown on websites To sum up, the low quality of products or fakes is the noticeable impediment that discourages consumers from engaging in the electronic marketplace
Additionally, due to the attractive visual appearance and the convenience of conducting
transactions on E-commerce, customers are easily addicted to online shopping Lo and Harvey (2012, as cited in Kirezli, 2019) claim that shopping addiction is preoccupied with shopping to the point where
customers are driven by uncontrollable shopping desires and face significant psychological, social, and financial repercussions as a result According to Tran et al (2017), 21.2 percent of young Vietnamese
suffered from internet addiction, and 5 percent of them were addicted to online shopping Furthermore, being addicted to online shopping results in mental disorders Thi and Liaw (2017) claimed that individuals with behavioral addiction fail to recognize the severity of post-addiction cravings and regulate their urges
As a consequence, the risk of being addicted to shopping results in Vietnam
Trang 5In conclusion, e-commerce indeed has its own positive and negative impacts on Vietnamese customer behavior Shoppers find it comfortable to look for product information by checking previous customers' reviews and to spend more time and money on the electronic marketplace On the other hand, some Vietnamese customers refuse to engage in e-commerce because they probably face the high risks related to personal information leakage and low-quality products which differ from posted images on
websites Moreover, being addicted to online shopping is also a negative influence that discourages
Vietnamese internet users from joining e-commerce In the future, e-commerce will be an indispensable part
of the Vietnamese economy Therefore, the security and quality of products on Vietnam's e-commerce should be guaranteed to create trust for current customers as well as attract more potential ones
Trang 6Reference List
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