Researching customer loyalty of e service the case of traveloka application

Since maintaining customer loyalty is important and necessary, the authors conduct this study in order to increase customer loyalty for Traveloka application, as well as understanding th

BACHELOR OF BUSINESS ADMINISTRATION THESIS

Researching Customer Loyalty Of E-Service

The Case Of Traveloka Application

Group Members Dien Minh Hoang

Nguyen Thi Quy Loc

Vo Ha Thien My Pham Huong Lan Duong Viet Phuong

SB60885 SB60823 SB60794 SB60767 SB60790

Supervisor Nguyen Thi Minh Tam

Da Nang City, Vietnam April 2017

ACKNOWLEDGEMENT

First and foremost, we would like to express our gratitude to our supervisor - Ms Nguyen Thi Minh Tam Without her guidance and persistent help, this thesis would not have been possible We are extremely thankful and indebted to her for sharing expertise and valuable support during the course of this thesis

We also take this opportunity to express gratitude to all FPT University lecturers, who teach

us useful knowledge and being patient with us during nine semesters past Thanks for providing intellectually and sharing precious experience with us This paper would have never been accomplished without previous researches and studies We must also thank former researchers who inspire us to find out more information about this topic

We would like to thank respondents who spent time to answer our questionnaire Their friendly and enthusiastic attitude provides us precious data for this thesis

Most importantly, none of this could have happened without support from our beloved parents Their moral support and encouragement is gargantuan motivation for us during the recent period

Da Nang City, April 26th, 2017

Authors of thesis

ABSTRACT

In recent years, beside the development of technology and the Internet, demand of travel by plane of Vietnamese also increases, for more detail, total passenger who travels by plane has increased 29% in comparison with 2015 (Vietnam Aviation Department, 2016) Catch up that trend, with the support of technology, online booking airline ticket3 service appeared Traveloka is an online booking airfare and booking hotel application This application is widely used in Southeast Asian countries like Indonesia, Singapore, Malaysia, Thailand and Philippines On September 2016, Traveloka entered the Vietnam market and they have to compete with many competitors such as Agoda, Atadi, iVivu, etc Customer loyalty is an important condition to maintain the number of consumers and attract more new customers in such challenged market

Since maintaining customer loyalty is important and necessary, the authors conduct this study

in order to increase customer loyalty for Traveloka application, as well as understanding the impact of e-service quality dimensions to customer loyalty by using quantitative data approach The purpose of this study is researching customer loyalty of e-service in case of Traveloka application This study shows how Customer Loyalty be created by Ease of Use, Assurance, Application Design, Responsiveness, Customization These factors also positive influence on Customer Loyalty value The authors also suggest some recommendations for Traveloka Application in Chapter 5 of the paper

The survey has 30 questions, Sample size of the questionnaire is 300, with respondents are who has used Traveloka application and live in the South – Central – North of Vietnam

Keywords: E-Service Quality, Customer Loyalty, E-Service, Traveloka Application

Table of Contents

CHAPTER 1 11

INTRODUCTION 11

1.1 TOPIC DEFINITION 12

1.1.1 BACKGROUND 12

1.1.2 PRACTICAL PROBLEM AND TOPIC RATIONALE 13

1.2 RESEARCH OBJECTIVES AND RESEARCH QUESTIONS 15

1.2.1 RESEARCH OBJECTIVES 15

1.2.2 RESEARCH QUESTIONS 16

1.3 SCOPE AND LIMITATION 16

1.4 METHODOLOGY AND DATA OVERVIEW 16

1.5 THESIS OUTLINE 17

1.6 Conclusion 17

CHAPTER 2 18

LITERATURE REVIEW 18

2.1 ELECTRONIC SERVICE AND ELECTRONIC SERVICE QUALITY 19

2.1.1 ELECTRONIC SERVICE 19

2.1.1.1 Definition 19

2.1.1.2 Characteristics 20

2.1.1.3 Advantages 20

2.1.1.4 Disadvantages 20

2.1.2 ELECTRONIC SERVICE QUALITY 20

2.1.2.1 Service Quality and E-Service Quality 20

2.1.2.2 Servqual Scale 21

2.2 CONSUMER BEHAVIOR ONLINE AND ELECTRONIC LOYALTY 24

2.2.1 CONSUMER BEHAVIOR ONLINE 24

2.2.2 ELECTRONIC LOYALTY 25

2.2.3 ELECTRONIC TRUST 26

2.2.4 ELECTRONIC SATISFACTION 27

2.3 CUSTOMER LOYALTY OF ELECTRONIC SERVICE QUALITY 28

2.4 THEORETICAL MODEL AND HYPOTHESIS DEVELOPMENT 29

2.4.1 RELATED MODEL 29

2.4.1.1 Topic: A Customer Loyalty Model For E-Service Context 29

2.4.1.2 Topic: E-Loyalty In Fashion E-Commerce 30

2.4.1.3 Topic: Journal Of Electronic Banking Systems 31

2.4.2 SELECTED MODEL 32

2.4.3 HYPOTHESIS DEVELOPMENT 35

CHAPTER 3 36

METHODOLOGY 36

3.1 METHODOLOGY 37

3.1.1 RESEARCH PHILOSOPHY 37

3.1.2 RESEARCH APPROACH 37

3.1.3 RESEARCH PROCESS 38

3.2 DATA COLLECTION METHOD 39

3.2.1 PRIMARY DATA 39

3.2.2 SECONDARY DATA 40

3.3 QUESTIONNAIRE DESIGN 40

3.3.1 TYPES OF QUESTIONNAIRE 40

3.3.2 TYPES OF SELF-ADMINISTRATED QUESTIONNAIRE 41

3.3.3 MEASUREMENT SCALES 41

3.3.4 ORIGIN OF CONSTRUCT 42

3.3.5 SURVEY QUESTION 43

3.3.6 PILOT TEST 45

3.4 SAMPLE 46

3.4.1 SAMPLING TECHNIQUES 46

3.4.2 SAMPLE SIZE 47

3.4.3 SAMPLE CHARACTERISTIC 47

3.5 DATA ANALYSIS METHOD 48

3.5.1 SOFTWARE 48

3.5.2 DESCPTIVE STATISTICAL ANALYSIS 48

3.5.3 RELIABILITY ANALYSIS 48

3.5.4 EXPLORATORY FACTOR ANALYSIS (EFA) 49

3.5.5 CONFIRMATORY FACTOR ANALYSIS (CFA) 49

3.5.6 LINEAR REGRESSION ANALYSIS 49

3.5.7 INDEPENDENT T-TEST 50

3.5.8 ANALYSIS OF VARIANCE (ONE-WAY ANOVA) 50

3.6 ETHICAL CONSIDERATION 50

3.7 LIMITATION OF RESEARCH METHOD 51

CHAPTER 4 52

ANALYSIS AND FINDING 52

4.1 DATA DESCRIPTIVE ANALYSIS 53

4.1.1 GENDER 54

4.1.2 AGE 54

4.1.3 OCCUPATION 55

4.1.4 MONTHLY INCOME 55

4.1.5 USING TIME 56

4.1.6 USING TIMES FOR AREA: 56

4.2 RELIABILITY TEST-VERIFY CRONBACH ALPHA 57

4.2.1 MEASUREMENT SCALES OF EASE OF USE (EOU) 57

4.2.2 MEASUREMENT SCALES OF APPLICATION DESIGN (APP) 58

4.2.3 MEASUREMENT SCALES OF CUSTOMIZATION (CUS) 58

4.2.4 MEASUREMENT SCALES OF RESPONSIVENESS (RES) 59

4.2.5 MEASUREMENT SCALES OF ASSURANCE (ASS) 59

4.2.6 MEASUREMENT SCALES OF LOYALTY (LOY) 60

4.3 EXPLORATORY FACTOR ANALYSIS (EFA): 60

4.4 CONFIRMATORY FACTOR ANALYSIS (CFA) 64

4.5 CORRELATION AND LINEAR REGRESSION ANALYSIS 66

4.5.1 CORRELATION ANALYSIS 66

4.5.2 LINEAR REGRESSION ANALYSIS 69

4.5.3 HYPOTHESIS TESTING 70

4.6 T-TEST AND ANOVA ANALYSIS 71

4.6.1 GENDER DISCRIMINATION 71

4.6.2 AGE DISCRIMINATION 72

4.6.3 OCCUPATION DISCRIMINATION 73

4.6.4 MONTHLY INCOME DISCRIMINATION 75

4.6.5 USING TIME DISCRIMINATION 76

4.6.6 LIVING PLACE DISCRIMINATION 77

4.7 OFFICIAL RESEARCH MODEL 78

CHAPTER 5 80

CONCLUSION AND RECOMMENDATIONS 80

5.1 KEY FINDING – ANSWER OF RESEARCH QUESTION 81

5.2 CONCLUSION AND RECOMMENDATION 82

5.2.1 APPLICATION DESIGN 82

5.2.2 ASSURANCE 83

5.2.3 CUSTOMIZATION 84

5.2.4 RESPONSIVENESS 85

5.2.5 EASE OF USE 86

5.3 LIMITATION AND FUTHER RESEARCH 87

REFERENCE LIST 88

APPENDIXES 95

APPENDIX 1: OFFICIAL ENGLISH QUESTIONAIRE 96

APPENDIX 2: OFFICIAL VIETNAMESE QUESTIONAIRE 100

APPENDIX 3: OFFICIAL STATISTIC RESULT 104

LIST OF TABLE

Table 2.1: Dimension measure of E-loyalty 33

Table 3.2: Operationalization 43

Table 3.3: Variable Table 45

Table 3.4: Reliability Of Sample Size 47

Table 3.5: Sample Size For Area 47

Table 3.6: Values Of Cronbach‟s Alpha Coefficient 48

Table 4.1: Testing Sample Size 53

Table 3.6: Values Of Cronbach‟s Alpha Coefficient 57

Table 4.2: Reliability Test for Ease Of Use 57

Table 4.3: Reliability Test for Application Design 58

Table 4.4: Reliability Test for Customization 58

Table 4.5: Reliability Test for Responsiveness 59

Table 4.6: Reliability Test for Assurance 59

Table 4.7: Reliability Test for Loyalty 60

Table 4.8: Result of Exploratory Factor Analysis (EFA) 62

Table 4.9: Result of Exploratory Factor Analysis 63

Table 4.10: Result of Confirmatory Factor Analysis (CFA) 64

Table 4.11: Standardized Regression Weights 65

Table 4.12: The summarized result of testing scales 66

Table 4.13: Result of Descriptive Statistics 67

Table 4.14: Result of Correlations 68

Table 4.15: Result of Linear Regression Analysis 69

Table 4.16: Result of T-test analysis 71

Table 4.17: Result of Group Statistics 72

Table 4.18: Result of Homogeneity of Variances 72

Table 4.19: Result of Multiple Comparisons 73

Table 4.20: Result of Homogeneity of Variances 73

Table 4.21: Result of Multiple Comparisons 74

Table 4.22: Result of Homogeneity of Variances 75

Table 4.23: Result of ANOVA 75

Table 4.24: Result of Multiple Comparisons 76

Table 4.25: Result of Homogeneity of Variances 76

Table 4.26: Result of Multiple Comparisons 77

Table 4.27: Result of Homogeneity of Variances 77

Table 4.28: Result of ANOVA 77

Table 4.29: Result of Multiple Comparisons 78

Table 5.1: The agreement degree of Application Design scales 82

Table 5.2: The agreement degree of Assurance scales 83

Table 5.3: The agreement degree of Customization scales 84

Table 5.4: The agreement degree of Responsiveness scales 85

Table 5.5: The agreement degree of Ease Of Use scales 86

LIST OF FIGURE

Figure 1.1: B2C Market Scale in Vietnam 13

Figure 1.2: Top 20 Internet Countries- With the Highest Number of Internet Users 14

Figure 1.3: Popular goods/services on E-commerce websites (2015) 15

Figure 2.1: Customer Buying Process 24

Figure 2.2: Original Model Of Pin Luarn & Hsin-Hui Lin 29

Figure 2.3: Original Model Of Ellinor Hansen & Erika Jonson 30

Figure 2.4: Original Model Of Beh Yin Yee & T.M Faziharudean 31

Figure 2.5: Original Model Of Ellinor Hansen & Erika Jonson 32

Figure 2.6: The Propose Framework 34

Figure 4.1: Frequency of Gender 54

Figure 4.2: Frequency of Age 54

Figure 4.3: Frequency of Occupation 55

Figure 4.4: Frequency of Monthly Income 55

Figure 4.5: Frequency of Using Time 56

Figure 4.6: Frequency of Using Time for Area 56

LIST OF ABBREVIATIONS AMOS Analysis of Moment Structures

ANOVA Analysis of Variance

CFA Confirmatory Factor Analysis

EFA Exploratory Factors Analysis

SPSS Statistical Package for the Social Science

CHAPTER 1

INTRODUCTION

1.1 TOPIC DEFINITION

1.1.1 BACKGROUND

The travelogue is a leading tech startup based in Jakarta, Indonesia Founded in 2012 by Silicon Valley engineers, Traveloka aims to revolutionize human mobility through technology Traveloka want to build large impact consumer products and services, real time and big data systems and platforms, devise creative solutions to business and engineering problems, derive insights from massive amount of data, and transform markets with technology In September 2016, Traveloka launched the first office in Vietnam

ex-Traveloka is now one of the leading and fastest growing technology companies and have launched to others Southeast Asia countries such as: Singapore (02/2015), Thailand (10/2015), Malaysia (04/2016), Philippines (05/2016) Traveloka aims to be the top site/app

in hotel and flight ticket booking across Southeast Asia These are the two services that Traveloka is now concentrating on building its reliability upon

E-service is a general term for services on the Internet E-service involves e-commerce transaction services for managing online orders and application hosting by application service providers E-service can be separated into some tasks, such as: Business-to-Business (B2B), Business to Customer (B2C) or Customer to Customer (C2C) In which, B2C is the most popular business method In B2C, firms, traders and vendors can sell their products or services to customers through the Internet In addition, the amount of competitor has increased rapidly in recent years Hence, several online vendors have to face with many difficult to retain and attract their customers

Customer loyalty is not a different description in traditional market because loyal customers are definitely essential to business existence (Semejin et al., 2005, Reichheld, 1995) Customer loyalty is part of a cause-effect chain that contains progressions from the first interaction with customers to the economic accomplishment of the business (Bruhn, 2001) Reichheld (2001) state that gaining a new customer which is acquired more fee and time than keep up a current customer Marketers are exerted to improve this by building good relationships with clients However, it is challenging to find because of the intangibility, heterogeneity, and performance ambiguity (Webwatch, 2002)

This report makes a study of the relationship between e-service and customer loyalty, specially the customer loyalty in B2C model of Traveloka application Besides, iVIVU.com

is the first online booking website in Vietnam that offers an online solution for finding & booking hotel rooms and flight ticket with same methods as well as Traveloka Although Traveloka have launched into Vietnam business after iVIVU, but it received a lot of support

and welcome from Vietnamese people Base on this research of Traveloka customer loyalty,

it is easier to determine and evaluate the impact of E-Service Quality on E-Loyalty in Vietnam environment

1.1.2 PRACTICAL PROBLEM AND TOPIC RATIONALE

Since appearance over a decade, E-commerce gradually becomes more familiar with both businesses and consumers Moreover, now in Vietnam, E-commerce is one of the most attractive business trends in online market

The chart below shows the revenue of B2C market scale in Vietnam From 2013 to 2014, it is

a steady increase In 2014, it is approached 2.95 billion USD, accounted by 2.12% of total national retail sales Specially, the number in 2015 jumped to 40 billion It is nearly doubled the market size

Figure 1.1: B2C Market Scale in Vietnam

Source: GSO- General Statistics Office of Vietnam

This is the chart of Top 20 Internet countries which have the highest number of Internet users

on June 30, 2016 (Published by Internet World Stats) Based on this chart, Vietnam ranks 16 among 20 Internet countries which have the highest number of Internet users in 2016 with 49 million users, higher than Turkey, South Korea, Thailand and Italy respectively Furthermore, the amount of these people accounts for over 50 percent of Vietnam population (General Statistics Office of Vietnam-2014)

Figure 1.2: Top 20 Internet Countries- With the Highest Number of Internet Users

Source: Internet World Stats

The graph below illustrates some common goods or services that people are interested in electronic commerce websites According to VECITA, train and air tickets are standing on the fifth with the number of 34% Besides, tour and hotel booking were the eighth most popular services purchased online, about 19%

39,2 41,0 45,3 46,1 49,0 54,0 55,8 56,7 60,2 63,2 69,0 71,7 97,2 103,1 115,1 132,7 139,1

286,9

462,1

721,4

0,0 100,0 200,0 300,0 400,0 500,0 600,0 700,0 800,0 ITALY

THAILAND SOUTH KOREA

TURKEY VIETNAM PHILIPINES FRANCE IRAN UNITED KINGDOM

BANGLADESH MEXICO GERMANY NIGERIA RUSSIA JAPAN INDONESIA BRAZIL UNITED STAES

INDIA CHINA

TOP 20 Internet Countries - 2016 With The Highest Number Of Inetrnet Users

(Millions Users)

Figure 1.3: Popular goods/services on E-commerce websites (2015)

Source: VECITA- Vietnam E-commerce and Information Technology Agency

At this period, the online sales in Vietnam market are gaining more concern from other companies or domestic and foreign corporations Traveloka is a great example Traveloka provides an amazing experience of booking hotel and flight ticket for customers through website and application from international to domestic Because of the same scale and services, form of operation either; Traveloka certainly has other components such as iVIVU.com, Atadi.vn

Customers are an important part which contribute to the success and growth of the company

at this challenges environment nowadays Traveloka always want to supply the best service and take care of customers However, it is not easy to turn them to loyal customer Traveloka Vietnam is the best example of customer loyalty in Vietnam e-commerce market Based on that, it is revealed the key elements impact to customer loyalty and the way to advance

1.2 RESEARCH OBJECTIVES AND RESEARCH QUESTIONS

1.2.1 RESEARCH OBJECTIVES

There are three main research objectives of this study:

 Determining customer loyalty of e-service

 Identifying and analyzing the situation of customer loyalty of e-service in case of

Professional service Music/Video/DVD/Game

Tour and hotel booking

Movie, concert ticket

Food Train and Air tickets Book, stationery, flower, gift

Home appliance Technology Clothing, footwear, cosmetic

Popular goods/services on E-commerce

websites (2015)

1.2.2 RESEARCH QUESTIONS

There are three main research questions to clarify those objectives:

 What is customer loyalty of e-service?

 What is the situation of customer loyalty of e-service in case of Traveloka

application?

 How can customer loyalty of Traveloka application be improved in Viet Nam?

1.3 SCOPE AND LIMITATION

In this research, we concentrate on group of Traveloka application‟s customers This group

includes students, workers, officers and many others who are over 14 years old; have cared or used hotel and flight ticket booking service on Traveloka In addition, this scope is carried out in Vietnam and limited around 300 samples for 3 weeks

1.4 METHODOLOGY AND DATA OVERVIEW

Quantitative approach is the research approach which is applied in our research Quantitative approach helps test theory and collect data to analyse the real situation

This study uses both primary data and secondary data Primary data: The data is collected via

an online survey with 300 online responds who are living and working in Vietnam Secondary data: The data is referred to newspapers, television, website, research report and the other public resources

For data analysis, our report uses SPSS and AMOS as the major tool to inspect the raw data that collected from the survey SPSS is used for evaluation, includes descriptive statistical

approximation of the reliability by Cronbach‟s Alpha, Exploratory Factor Analysis (EFA),

Correlation, Linear Regression, T-Test and ANOVA AMOS is used to evaluate Confirmatory Factor Analysis (CFA) By that way, the influence of service quality to customer loyalty will be simplified Furthermore, this study also clarifies the impact of E-service quality on E-loyalty

Chapter 2: Literature review and theoretical models

This chapter clarifies the key concepts and theoretical framework It also mentions about specific examination methods about the correlations between Electronic Customer Loyalty and relevant factors to propose the research framework

Chapter 3: Methodology

This chapter presents the methodology to conduct the research, which includes research philosophy, research approach includes quantitative and qualitative method, questionnaire design, data analysis method and the limitations of research method

Chapter 4: Data analysis and finding

This chapter analyses data which is collected from the research process Data analysis methods are used which include Reliability Test-Cronbach Alpha, Exploratory Factor Analysis (EFA), Correlation, Linear Regression, T-Test, ANOVA and Confirmatory Factor

Analysis (CFA) Those operations are utilized by using SPSS and AMOS

Chapter 5: Conclusion and recommendations

After answering the research questions by using the results of data analysis, the researchers evaluate the findings combine actual situation of Traveloka application to find out good solutions to enhance E-Loyalty This chapter also gives some suggestions for future researches

1.6 Conclusion

In this chapter, we describe an overview of e-commerce in Vietnam and focus on Traveloka Application This report link to research objectives and research questions to clarify the factors which affecting to electronic customer loyalty

CHAPTER 2

LITERATURE REVIEW

The range of E-Service is really large as well as the limitation of time and qualification If we try to cover all of theory, information and customer idea about E-service field, it will be unrealistic to conduct a research at that scale within three months Thus, we concentrate on E-service quality side to the research Customer loyalty of E-service In this chapter, relevant literature on research topic is introduced and reviewed as it is a necessary step to understand what the research is about and help clarifying the direction for performing this research The theoretical framework which intends to guide this research also is clarified in this chapter

2.1 ELECTRONIC SERVICE AND ELECTRONIC SERVICE QUALITY

2.1.1 ELECTRONIC SERVICE

2.1.1.1 Definition

Zeithaml et al (2000) state that e-service is web services which are provided to users over the Internet In e-service customer contact or interact with service providers through technology, such as their websites Customers have to depend completely on information technology in an e-service encounter (Zeithaml et al., 2000) According to United Nations Conference on Trade and Development (2002), E-service can be generally defined as a service which can be delivered electronically Applications - which are also included in the concept of e-service where the service can be provided by the mediation of information technology and by Rowley (2006) e-services as “deeds, efforts or performances whose delivery is mediated by

information technology, including the Web, information kiosks and mobile devices.”

According to Ruyter et al (2001), E-service is considered a powerful in B2C E-Commerce because of its ways to meet the demand solutions to customers, intensify customer–service

provider relations, originating transactional efficiencies and improving customer satisfaction The concept of e-service seems to be inseparably to e-business Turban et al., (2002) state that in a situation where the product, the distributor, and the process converts all into digital,

it is pure e-commerce In most cases, customer almost received the products in a physical way, which makes pure e-commerce is impossible However, with the digital product/service industry, pure e-commerce can be used in most cases, since the industry deals with contents that can be digitized easily with automating the entire process (including product/service delivery) Consequently, there are a lot of departments such as banks, travel agencies, airlines, are increasingly opting for online service delivery to meet e-customer demand (Forrest and Mizerski, 1996; Turban et al., 2002) In conclusion, E-Service was established and became a part of E-Commerce

2.1.1.2 Characteristics

According to Scupola (2008), there are some characteristics of e-services: E-Service is reachable via the Internet or mobile networks in the form of applications, computing resources, services, processes or information In additional, E-Service is used by individuals, applications and businesses that the user might pay fee to provider for using the E-Services, excluding some free e-Services offered by the government

2.1.1.3 Advantages

E-service offers many advantages over the traditional one Service providers can save the cost for office or marketing, increasing the market share and arrest consumer information also tendency (Sahra Ashton July 10, 2015) Moreover, consumers can compare prices with the other brands by easy and quick way (Zorayda Ruth Andam, 2003) Besides that, user can

save their time as Amol Vyavhare (2007) said: “Transactions can be handled over the Internet

instantaneously without high response times, most of the times much faster than offline

systems.” According to Robert Dunn (2008) “E-commerce gives the remote consumer an option to shop somewhere else” means it is convenient for consumers who are in different

places E-service also offers a wider range of choice for consumer from many providers as

Robert Dunn (2008) stated “the consumer can browse and buy from many different sellers,

making it easier to find exactly what they are looking for.”

2.1.1.4 Disadvantages

Besides these bright points, it still exists many disadvantages of service Firstly, commerce market growing rapidly, there are up to 24 million E-Commerce websites in the world (Omer Rachamim et al.), so e-commerce owners entangled with a great competition (Leslie Truex) Moreover, in developing countries, the lack of infrastructure such as internet, device and payment system; knowledge; political; earnings and culture also affect excessively to development of E-Commerce (Odedra Strau, 2003)

e-2.1.2 ELECTRONIC SERVICE QUALITY

2.1.2.1 Service Quality and E-Service Quality

Parasuraman et al (1988), who defines that service quality is the difference level between customer expectation and customer perception about the service outcome The quality of service is mentioned as the general impression of customer about a service provider and services On the other hand, Santos (2003) describes the quality of e-services are the general customer evaluation and rating about excellence and quality of e-services which serve customers in the virtual market Zeithaml et al (1996; 2001: 11) defines the quality of online

services as “the extent to which a Website facility, efficient and effective shopping, purchasing, and delivering of products and services” It is a critical condition for website

suppliers who facilitate customer service during the visiting and buying period as well as in the before and after this time (Chang et al 2009)

Zeithaml et al (2002) means that focusing on the quality of service can help E-commerce entrepreneur encourage customer to rebuy and build customer loyalty Lee & Lin (2005) research that positive quality of cognitive services has the impact on customer buying intentions and customer satisfaction in the positive way (Ruyter et al., 2001, Luarn and Lin, 2003) claim that the definition and concept of e-service is the interactive service and customer service which is controlled by the customers These services are integrated with the organizations and technology to grow the relationship between customers and providers 2.1.2.2 Servqual Scale

Parasuraman et al (1988) developed a model called SERVQUAL with five dimensions which has the ability to measure and evaluate customer perception of service quality The SERVQUAL model includes: tangibles, reliability, responsiveness, assurance and empathy (Parasuraman et al., 1988) Nevertheless, the service quality dimensions are changed to become more appropriate in the online environment Zeithaml et al (2002) have developed a SERVQUAL model which concentrates on the Internet environment They name this model, e-SERVQUAL, which influences online service quality by involving dimensions Ribbink et

al (2005) select five dimensions that are regularly used in order to measure and evaluate service quality online: ease of use, web design (e-scape), customization, responsiveness, and assurance

Ease Of Use

According to Constantinides (2004), usability has the relationship with the success or failure

of website and website experience of the customer He claims that this feature is really necessary for Websites Zeithaml et al (2002) claim that ease of use is a key consideration when customers judge the service quality on the Website The term usability and ease of use are the synonyms in the online setting The relative elements of this dimension are: websites functions, speed, general design, and the site‟s organization (Zeithaml et al., 2002)

Nah and Davis (2002:99) define usability as “the ability to find one‟s way around the Web, to

locate desired information, to know what, to do next and importantly, to do so with minimal effort Central to this idea of usability is the important concepts of ease of navigation and

search” Ease of use dimension includes: function, information access, and navigation

(Constantinides, 2004; Ribbink et al., 2004) Zeithaml et al (2002) discuss that information accessibility and information range influence the service quality Ribbink et al (2004) discuss that ease of use dimension is particularly important for new guests They also argue that it is a vital condition for consumer satisfaction because it is connected to develop customer experience

Web Design

According to Lee & Lin (2005), Web design is necessary for online retailers It is shown clearly on the interface which customers watch when they access to a website Thus, it can gain the first impression of the customer, keep their attention and let them interact when they enter the website This theory is suitable to apply for service websites because service websites also have the same characteristic and display as retailer websites Performance online quality impacts on the whole opinion that customers feel about the website (Constantinides, 2004) Ribbink et al., (2004) claim that the design of the website is a conditional factor which has the ability to check overall service quality The design method also is important with the first attraction which increases the customer trust (Kassim & Abdullah, 2010)

Moreover, Lee & Lin (2005) state that Website design is considered to judge the Satisfaction Constantinides (2004) prove other elements in the design of website and name them aesthetic He argues that aesthetic is the degree of website quality and it can rise belief

E-of the user E-of the website The part E-of aesthetics contains the innovative condition as multimedia, domain name, outline, colour combination It also contains general design, detail design, website display, and mode Besides, Kassim & Abdullah (2010) state that web design dimension is vital for service quality and it affects customer satisfaction They create the combination between content, structure and display on design language to make the website become useful, amazing and friendly for the visitor The comparison between of website and application shows that the application has all of main characteristic and function of the website Furthermore, applications increase interaction between customer and service provider through actions as advertisement, notification, and customer setting The significant difference of website and application is that the website can run on all of the platforms if you have the website browser program However, the application must set up and run on the platforms or operating system which software manufacturers accept As a result, all of theory

of web design can apply to the application and we name it application design

Customization

Tsai & Huang (2007) and Ribbink et al (2004) argue that online retailers have more chances

to consider the customer need and want through the Internet and technology information because the data of visitor can be collected and stored It means that customization dimension can help entrepreneurs know exactly their customer demand by collecting data As a result, it

is also suitable to apply for e-service companies to collect consumer behaviour

Customization mentions the level of service which is designed appropriately to adapt the customer need (Kassim & Abdullah, 2010) It is also promoted to maintain the quantity of online customer (Tsai & Huang, 2007) As a reason, customers have more opportunities to find out the suitable goods and services Website services start to be more time efficient and

it makes services more attractive to encourage customer to return (Srinivasan et al., 2002) Following to Constantinides (2004), interaction online capacity is an occasion that online entrepreneurs generate more personal services Thus, they increase certainly contribution for the practice of customers on the website Kassim & Abdullah (2010: 354) claim that

customization has four different elements: “personal attention, preferences, understanding of the specific customers and information regarding the products modification”

Assurance

Ribbink et al (2004:448) define assurance as “the customer‟s perceived security and privacy

when using the e-tailer‟s services” According to Kassim & Abdullah (2010) and Zeithaml et

al (2002), security and privacy are the main options of service quality Security is the way

Need

Identification

Information Search

Evaluate Alternatives

Purchase Decision Post Purchase

providers defend their consumers against deception and finance loss when customers carry out transactions on the Website Privacy involves how online companies protect individual information of customers It also contains maintaining anonymity for customer information and not sharing for other parties (Zeithaml et al., 2002) According to Kassim & Abdullah (2010), if customers do not believe in safety and secrecy of e-service companies, it can influence customer intention of these online services

2.2 CONSUMER BEHAVIOR ONLINE AND ELECTRONIC LOYALTY

2.2.1 CONSUMER BEHAVIOR ONLINE

According to Kotler Keller (2013) consumer behaviour is the process that individual, groups, and organizations display in selecting, evaluating, buying, using, and disposing of products and services that they expect will satisfy their needs After that, customers can distribute some positive or negative feedbacks based on their experience

Koufaris (2002) state that consumer behaviour has similar characteristics in the online environment and traditional offline environment However, they have some differences because every consumer is a computer user Besides, the online consumer has more expectation and demands than offline customers In addition, the online customer becomes more convenient and requires more control, more time-saving, less effort, efficiency on websites Websites increase the convenience and control for the customer will meet this need for the customer (Koufaris et al., 2002)

Mentioned in “Advances in Wireless Networks and Information Systems”, five factors that

affect to customer behaviour are: service quality, customer satisfaction, trust, commitment, behavioural intentions In which, service quality plays the key role in this effect

Based on Solomon (2010) research about the customer buying process (also called a buying decision process), the five stages framework has introduced that remains a good way to evaluate the customer decision making process, includes:

Figure 2.1: Customer Buying Process

Source: Solomon (2010)

Exit: Consumers just buy once, then leave

Voice: Consumers share their experience to others

Loyalty: If consumers feel satisfied with products or services, they will become a recurring customer

2.2.2 ELECTRONIC LOYALTY

According to Kotler (1999), the act of purchasing back something previously sold with specific brand is customer loyalty, or customer willing to commend to others Although the changing price, the loyalty ratio still faithful approves And so, loyalty premium is the factor which contributes to set the value of the company Stated by Oliver (1997:392), customer loyalty is defined as the repurchase commitment of products or services time after time in the hereafter Reichheld & Schefter (2000:113) claim that "building superior customer loyalty is

no longer just one of many ways to boost profits It is essential for survival." or "You cannot generate superior long- term profits unless you achieve superior customer loyalty.” by

Reichheld & Schefter (2000:107) Moreover, Bushry (2005) bring common good about this matter Loyal customers hold constancy of sales by increase in purchasing power and help company to reduce expenses to attract attention Besides, loyal customers advance the

competitive edge for companies and not to be susceptible of the changing price In addition, loyal customers convey optimistic behaviour about the company

Allagui & Temessek (2005) claim that the basic theory of electronic loyalty and traditional ones are alike In the Internet environment, Kim et al (2009, b) state that the key factor in business is loyalty Srinivasan et al (2002) define that E-Loyalty is the customer attitude about buying behaviour which is repeated several times on the internet Furthermore, Reichheld & Schefter (2000) confirm that it is high priority to achieve loyal customers in the virtual world than in the physical world; by the way, it is costlier to gain new customers in online market than in traditional market E-Loyalty can be separated into two sections which involve the welfares with the customer spreading positive word of mouth and customer‟s

intention to repurchase from the supplier in later on

Word Of Mouth

Word of mouth can be defined as individuals who make the optimistic externality They also offer information about products or services of the company and against negative feedback from others of their free will (Hennig-Thurau et al, 2002) Besides, Islam et al (2012:215)

define customer loyalty as “the chance of a customer returning, providing positive word of mouth as well as providing references and publicity for the business”

Retention Intention

According to Bansal & Taylor (1999), retention intentions are the buying behaviour and remain support for the specific company of loyal customers Additionally, loyal customers tend to purchase more repeatedly than new customers Anderson & Srinivasan (2003:125)

define as “the customer‟s favourable attitude toward an electronic business, resulting in

repeat purchasing behaviours” Ribbink et al (2004) state that electronic loyalty context can

be affected by diverse antecedents and generate E-Satisfaction, E-Trust, and e-service quality Thus, it is very important to comprehend the effective elements which have the ability to create and increase loyal customers

2.2.3 ELECTRONIC TRUST

Rousseau et al (1998:395) define “Trust as a psychological state composing the intention to

accept vulnerability based on expectations of the intentions or behaviour of another”

Reichheld & Schefter (2000) also say that an organization have to create customer trust before they create customer loyalty Kassim & Abdullah (2010) state that trust is also necessary for a company in building and preserving relationships with their customers According to the book “Electronic Commerce 2012” trust is the psychological status which

depends on another person‟s behaviour According to Kim et al (2009, a), Reichheld &

Schefter, (2000), and Ribbink et al (2004) trust plays a vital role in the loyalty building process, therefore it also is an important key of E-Loyalty Trust is a critical component of long-term business interaction (Dasgupta 1988; Fukuyama 1995; Gambetta 1988; Ganesan 1994; Gulati 1995; Kumar et al 1995b; Moorman et al 1992; Williamson 1985) According

to previous research of trust in e-commerce (Gefen 2000), Mayer et al (1995), and Rousseau

et al (1998) trust is completely based on a person feeling of confidence, even it is bad for themselves Base on Ha (2004), security, privacy, word of mouth, good online experience, information quality and brand name are the main elements which affect E-Trust

According to Eid (2011) and Constantinides (2004) security risks, privacy and satisfaction are important for customer experience on the website as they influence the intention of use Quelch & Klein (1996) state that trust is a vital factor in encouraging purchases on the internet Hence, Corbitt et al (2003) claim that trust can be seen as a significant factor in building relationship with customers online In e-commerce environment, there is lack of interacting between customers and vendors Hence, it is difficult to attract customers and to gain their trust because of the low level of guarantee in this kind of environment Base on Gefen (2000), Jarvenpaa and Tractinsky (1999), Reichheld and Schefter (2000, from this risk, customers who do not trust in e-vendors will do less business with them and come back to traditional markets

2.2.4 ELECTRONIC SATISFACTION

According to Ribbink et al (2004), satisfaction is one of the most important elements to create E-Loyalty Hansemark and Albinsom (2004) state that satisfaction is a customer feeling or behaviour during receiving process According to Kotler (2000) satisfaction is a

person‟s feeling of pleasure from comparing a product performance to their expectations

Anderson & Srinivasan (2003) argue that customers who were satisfied, are more willing to spread positive word of mouth and more likely to purchase again

In e-service, there are a lot of rival companies which increase the customer willingness to switch to other suppliers Therefore, if a company can satisfy customers, these customers will tend to stay with that provider (Tsai & Huang 2007) Hence, creating satisfaction in the online market is more important than in traditional (Ribbink et al 2004) Following Rodger et

al (2004) and Olorunniwo et al (2006), E-Satisfaction is customer emotion after they interact

with the website Hence, website‟s features also affect to customer satisfaction and customer

can enjoy the web which they feel interested According to Szymanski & Hise (2000),

Muylle, Moenaert & Despontin (2004) if a company wants to create E-Satisfaction, it has to make customer feel comfortable when shopping on website which leads to a positive attitude and response to the whole experience process Base on Bansal, McDougall, Dikoli & Sedatole (2004) creating E-Satisfaction will be accomplished when the website features and the service exceed customer expectation

2.3 CUSTOMER LOYALTY OF ELECTRONIC SERVICE QUALITY

There are a lot of researches argued that E-Satisfaction, E-Trust and E-service quality are vital factors which create and influence E-Loyalty Following to Radwan et al (2009), assurance service quality is a typical of e-provider, which has ability to effect on customer loyalty Srinivasan (2002) claims that interaction of service quality in electronic market is so effective and make clients become loyal As a result, service quality becomes the indispensable element which helps companies retain and improve their customer loyalty

Cöner and Güngör (2002) discuss that quality of product, service quality and sample picture

influence customer loyalty They also claim that "quality [of product and service]ầ is

directly related to customer satisfaction, andầ lead [s] to the loyalty of the customer" (Cöner & Güngör, 2002, p.195)

According to Hsu‟s (2008), quality of electronic service is used to estimate customer loyalty

Ju and Wang (2006) discuss that service quality has ability to forecast Loyalty and Satisfaction Cronin & Taylor (1992) prove that service quality is antecedent of customer loyalty and customer satisfaction In the electronic environment, E-service quality also is the antecedents of E-Loyalty (Herington and Weaven, 2009; Hu et al., 2009) Furthermore, Kassim and Ismail (2009) discuss the service quality impact directly on customer satisfaction and customer trust then influence customer loyalty On the other hand, service quality has relationship with word-of-mouth and retention intention and relative to customer loyalty (Cronin et al 2000) Brand names have a high degree of service which is supposed to enhance customer loyalty on the successful way (Huang and Liu, 2010; Kim et al., 2007) Consumers can continue using the services, if service companies have the professional interactive action

E-to create high quality for these services As a result, the online service entrepreneur has the chance to directly establish and keep E-Loyalty from consumers

Zahorik and Rust (1992) claim that perceived quality is an impacting element of customer loyalty which can deliver major analytical capacity to every model which customer loyalty is

a dependent variable There are a lot of researches accept that service quality relates customer loyalty in the existing and certain ways (Anderson and Sullivan, 1993; Cronin and Taylor,

1992; Harrison-Walker, 2001) E-service quality can be considered as the overall picture of the customer experience about online provider (Kim et al (2009, b))

2.4 THEORETICAL MODEL AND HYPOTHESIS DEVELOPMENT

2.4.1 RELATED MODEL

2.4.1.1 Topic: A Customer Loyalty Model For E-Service Context

Author: Pin Luarn & Hsin-Hui Lin

Problem: Explore the factors that influence attitudinal commitment and purchase loyalty of service in Taiwan

e-Time: 2003

Sample size: 180 respondents

Framework:

Figure 2.2: Original Model Of Pin Luarn & Hsin-Hui Lin

Source : Pin Luarn & Hsin-Hui Lin (2003)

Result: Researching the influence of trust, customer satisfaction, perceived value and commitment of loyalty provides the result that trust and customer satisfaction have a strong positive impact on customer loyalty Moreover, perceived value and commitment have significant positive influence on loyalty Especially, commitment has the strongest direct effect on loyalty Examine the paths from a trust, customer satisfaction, and perceived value

of commitment provides the result that both customer satisfaction and perceived value have a

considerable positive impact on the commitment Furthermore, the trust has no substantial effect of the commitment while customer satisfaction exhibited the strongest impact on commitment

2.4.1.2 Topic: E-Loyalty In Fashion E-Commerce

Author: Ellinor Hansen & Erika Jonson

Problem: Evaluate the antecedents of E-Loyalty in the online fashion industry in Sweden Time: June 2013

Sample size: 250 respondents

Framework:

Figure 2.3: Original Model Of Ellinor Hansen & Erika Jonson

Source: Ellinor Hansen and Erika Jonson (2013)

Result: In this research, there are three relationships which are established First, E-Trust, Ease of use/ Web design, Responsiveness, Assurance directly and positively influence E-Satisfaction In this relationship, Ease of use/Web design, Responsiveness, and E-Trust are approved main drivers for E-Satisfaction Second, Ease of use/ Web design, Responsiveness, Assurance influences E-Trust in direct and positive way E-Trust has two main drivers: Assurance, Responsiveness Third, E-Satisfaction, E-Trust, Ease of use/ Web design, Responsiveness, Assurance directly and positively influence E-Loyalty Main drivers for E-Loyalty: E-Satisfaction, Responsiveness, andE-Trust Finally, E-Satisfaction is a major

driver for customer loyalty in the online fashion industry

LOYALTY

E-TRUST EASE OF USE

2.4.1.3 Topic: Journal Of Electronic Banking Systems

Author: Beh Yin Yee and T.M Faziharudean

Problem: Factors affecting customer loyalty of using internet banking in Malaysia

Time: 2010

Sample size: 350 respondents

Framework:

Figure 2.4: Original Model Of Beh Yin Yee & T.M Faziharudean

Source: Beh Yin Yee and T.M Faziharudean (2010)

Result: This research focuses on the factors influencing customer loyalty which consists of the relationship of service quality, perceived value, trust, habit and reputation with respect to customer loyalty towards Internet banking websites Trust, habit and online reputation have a positive influence on customer loyalty while service quality and perceived value is not a predictor of customer loyalty towards Internet banking websites in Malaysia Finally, the reputation of the Internet banking website or provider is the most important factor in Malaysia in retaining customer Internet banking website use, with a greater importance than both trust and habit factors

2.4.2 SELECTED MODEL

The range of E-Service is so large as well as the limitation of time and qualification so that our research focuses on E-service quality side to study that in Vietnam E-service market, the relationship of E-service quality, E-Trust and E-Satisfaction effects on E-Loyalty or not Moreover, nowadays there are a lot of competitors such as iVIVU.com and Atadi.vn which follow nearly the same business form of Traveloka so that E-service quality always is considered as the key factor to help Traveloka become different and successful intermediary service in the customer‟s mind

Considering with related models, framework of Pin Luarn & Hsin-Hui Lin was established in

2003, it was a long time Now, there are a lot of new concepts of market, different business styles and innovative technologies which create a lot of change in the customer mind and business knowledge Thus, this framework is not suitable to apply Besides, when we compare the framework of Beh Yin Yee & T.M Faziharudean (2010) with Ellinor Hansen & Erika Jonson (2013) The research range of Beh Yin Yee & T.M Faziharudean (2010) is so wide because they use Service Quality, Perceived Value, Trust, Habit and Reputation to research Customer Loyalty However, Ellinor Hansen & Erika Jonson (2013) focus on E-Service Quality and use the relationship between E-service Quality, E-Trust, and E-Satisfaction to research E-Loyalty It is suitable with our objective and qualification Finally, our team decides to apply the frame work of Ellinor Hansen and Erika Jonson (2013) and change Web design factor to Application design factor to research customer loyalty of E-service

Figure 2.5: Original Model Of Ellinor Hansen & Erika Jonson

Source: Ellinor Hansen and Erika Jonson (2013)

E-LOYALTY

E-TRUST EASE OF USE

In general, this research model can be divided two main parts The first part includes the independent variables that determined E-service quality The rest of the model is dependent variables that affected by E-service quality Service quality affects to trust and satisfaction, after that lead to customer loyalty But in this model, the study shows service quality or E-service quality can affect to E-loyalty and not pass through E-trust and E-satisfaction

According to Ellinor Hansen and Erika Joson (2013) the factors of E-service quality (ease of use, web design, responsiveness, customization, and assurance) can affect to E-loyalty and E-service is the promise when building customer loyalty on E-commerce market

Moreover, many authors claim that there is a direct and strong connection between the five dimension of E-service quality and E-loyalty (Parasuraman, 1988) There are many authors also claim the same affection of E-service to E-loyalty It is shown in the list below:

No Author Page Topic Factor

Empathy (Customization) Reliability (Ease of use)

2 Badara (2012) 240 Internet Banking Responsiveness

Assurance

3 Chang & Chen (2008) 577 E-Commerce Customization

Character (Web Design) Interactivity

Visual attractiveness Site information Personalization Security/Privacy

Table 2.1: Dimension measure of E-loyalty

Source: Synthesized from the previous studies about customer loyalty in E-commerce

Through previous research, it confirmed the influence of the E-service quality dimensions on E-loyalty through E-trust and E-satisfaction E-service quality is the overall picture of a customer experience from online provider (Kim et al (2009, b)) However, there is no much research evaluate direct on E-loyalty with E-service quality Chang et al (2009) mean that good E-service quality plays important role for online trading companies, to satisfy customers and success They also believe that many companies improve their E-service quality to increase E-loyalty Base on Fan & Tsai (2010) and Kassim & Abdullah (2010), customization also can have an influence on E-loyalty as well as influencing intention to purchase Thereby,

it can be of interest to see if E-service quality has an influence on E-loyalty Finally, the group has decided to revise the research model originally and proposed a new framework (Figure 2.6) to focus on testing the impact of five E-service quality variables on E-loyalty This research framework is divided two main parts such as: dependent variable part and independent variable part Independent variables part include five variables as Ease of use variable, Application design variable, Responsiveness variable, Customization variable and Assurance variable Both of them perform E-service quality Besides, dependent variable part contains: E-Loyalty variable E-Service quality of independent variables part directly impacts

on E-Loyalty of dependent variables part

Figure 2.6: The Propose Framework

Source: The previous studies about customer loyalty in E-commerce

2.4.3 HYPOTHESIS DEVELOPMENT

Chang et al (2009) claim that E-Loyalty is increased by rising service quality of the company Kim et al (2009, b) argue that explanation of e-service quality is the set of estimation about electronic service brands from customer and it also contains overall customer perception and customer experience when customers use these services Moreover, e-service quality impacts not only E-Satisfaction but also E-Trust and both two these antecedents influence E-Loyalty Nevertheless, Lee & Lin (2005) argue that e-service generally influences E-Loyalty They also state that web design dimension creates the impact

on E-Loyalty Besides, Fan & Tsai (2010) research that customization affects E-Loyalty Thus, e-service quality has the ability to impact on E-Loyalty so that hypothesis is formulated:

Hypothesis 1: Ease Of Use directly and positively influences E-Loyalty

Hypothesis 2: Application Design directly and positively influences E-Loyalty

Hypothesis 3: Responsiveness directly and positively influences E-Loyalty

Hypothesis 4: Customization directly and positively influences E-Loyalty

Hypothesis 5: Assurance directly and positively influences E-Loyalty

CHAPTER 3

METHODOLOGY

This chapter describes how the researchers conduct the survey, how the hypotheses are tested and how the findings are evaluated through the process The end of the chapter also discusses reliability and validity Ultimately, limitation of research method is presented

3.1 METHODOLOGY

3.1.1 RESEARCH PHILOSOPHY

According to Saunders et al (2009) research philosophy is the development of knowledge and the nature of knowledge Hence, when the researchers conduct a research, they have to explain the basic meaning definition precisely Then they will have more choices and creativity in research method after understanding clearly the basic information of research philosophy According to Guba and Lincoln (1994) and Saunders et al (2009) the research philosophy was divided into four groups: positivism, realism, interpretivism and pragmatism The positivism group tends to apply scientific methods to research The realism group also applies scientific method to research, but the result is usually based on their mind Unlike previous groups, the interpretivism use social view to prove their point of view The last group is pragmatism, they collect data and use relevant data to support their viewpoint

In this study, our team determines the research philosophy is pragmatism The result of pragmatism philosophy refers to the way of collecting quantitative and qualitative data Therefore, basing on the collected information, the researchers use relevant data to evaluate point of view in both subjective and objective way

3.1.2 RESEARCH APPROACH

According to Kothari (2007), there are two approaches to research the project, which is a quantitative approach (or deductive approach), and qualitative approach (or inductive approach) Inductive approach involves with constructing the theory and theoretical framework after process of data clarification Base on Saunders (2008) deductive approach is applied to test theory, collect quantitative data, but still use qualitative data to refer

This study is based on quantitative approach (deductive approach) due to the researchers have already established theory and framework to investigate the result with reality which involves compiling statistics, surveys, then examining the results base on collecting data

1 Identifying A Research Problem: consists of specifying an issue to study, developing

a justification, suggesting the importance of the study

2 Reviewing The Literature: locating summaries, books, journals relates the research

topic, selecting literature which includes in your review, then summarizing in a report

3 Research Method Selection: researcher consists of quantitative approach and

qualitative approach, then they choose which approach can apply in their research

4 Initial Measurement Scales: base on the concepts which is collected from previous

research, provide the concept of scales for conducting research for this study

5 Final Measurement Scales: base on the initial measurement scales, choose the most

suitable scale for the research

6 Initial Questionnaire: base on the definition and variable table which is inherited and

collected from previous researches and other authors, create questionnaire

7 Pilot Test: a small-scale trial is used to collect ideas and experience of some

participants to check the initial questionnaire

8 Final Questionnaires: base on the initial questionnaire and pilot test, propose the final

survey and send to research participants

9 Sample Design Selection: collect previous sampling methods and compare them

together to select the most reasonable sampling methods for analysis

10 Collecting Data: selecting individuals for a study, obtaining their permission to study

them, and gathering information by asking questions

11 Analyzing And Interpreting Data: involves drawing conclusions, representing it in

tables, figures to summarize, and explaining the conclusions

12 Reporting And Evaluating Research: Reporting research involves deciding on

audiences, structuring the report in a specific format, and then writing the report Evaluating research involves assessing the quality of a study bases on standards of previous researchers

3.2 DATA COLLECTION METHOD

According to Saunders et al (2009), data collection is an important stage in academic studies

In this paper, we use both primary and secondary data In primary data analysis, qualitative and quantitative method are applied since both of them are appropriate for any research model (Guba and Lincoln, 1994) Quantitative data need to be processed and analyzed to turn

to be useful data or information because before processed, quantitative data just have little meaning (Saunders et al., 2009) Secondary data not only informing the primary research design but also allows understand the topic area Moreover, Saunders et al (2009) state that secondary data also provide a useful source to answer the research question

3.2.1 PRIMARY DATA

Base on Saunders et al (2009), primary data includes information collected from interviews, experiments, surveys, questionnaires, measurements and observations When using primary data, researchers can collect the raw data for a specific research problem and the objective, it was designed to the need of researchers (Hox and Boeije, 2005:593) Questionnaire/survey is the basic tool for collecting primary data The purpose of survey is collecting information and data of customers about the service or product so the language of the questions must be clearly, understandable and simple in order to get the nearest accurate answer from customers

or users, the clearly language also helps customers understand correctly about the survey According to Hair et al (2010), a set of questions which are employ to gather data from numerous and diverse people is a questionnaire

3.2.2 SECONDARY DATA

Secondary data provides a standard to compare with the results of the primary data and in some cases, secondary data also is helpful to design a research Saunders et al (2009) claim that documents, surveys and sources are three main groups of secondary information Researchers do not collect secondary data directly, but gather from variable sources, it is widely available and obtained from previous researches, publications, Secondary data offers an advantage that primary data does not have: it is cheaper and obtain more quickly In some cases, secondary data is available when primary data cannot be obtained at all (Ranjit Kumar, 1996) In this study, secondary data is mostly collected from the previous researches and articles Secondary data in this research is collected from online documentaries, articles, report and some published sources Some related studies of e-service quality dimension effect

on customer loyalty and researches about customer loyalty in e-service also included in secondary data in this paper Although some disadvantages of secondary data such as the data may be out of date or incorrect, it still offers many benefits such as time-saving and economical for the researchers Therefore, instead of wasting time in getting the data which was already existed, researchers using the secondary data because the usefulness and convenience

In conclusion, both primary and secondary data are used in this thesis Our team can collect effective and trustworthy primary data from using the questionnaire In this paper, the primary data only used to detect the customer loyalty with Traveloka application, prompted mainly in chapter four Besides that, secondary data is also important in this paper, chapter two mostly bases on theories of previous studies from other researchers while main information of chapter one are also provided by statistic, articles from companies, organizations and associations such as: Traveloka, Internet World Stats and VECITA Furthermore, chapter three and chapter four also inherit and follow the research method and statistic approach of previous authors and scientists

3.3 QUESTIONNAIRE DESIGN

3.3.1 TYPES OF QUESTIONNAIRE

The questionnaire is a list of many questions that is collected from respondents (Malhotra & Briks, 1999) Saunders et al (2009), Gorard (2001) and Neuman (2003) claim that there are two different types of questionnaires: self-administrated and, interviewer-administrated Interviewer-administrated questionnaire is completed by the interviewer afterwards and is recorded during the interview The self - administrated questionnaire is completed by the