Factors influence on customers repurchase intention in customer to customer e marketplace the case of shopee vietnam

ThequestionnaireforobservationsinTable1[seeTable1]isdesignedbasedonpreviouspapersandpilottest adjustmentswiththeLikert scaleof5points:1totallydisagree;2disagree;3neutral;4agree;.

Abstract

Thispaperempiricallyinvestigatestheinfluenceofcustomers’perceptiononcustomersatisfactionandr e p u r c h a s e intentiontowardsoneparticularsellerincustomer-to-

commercemarket.InVietnam,C2Ce-commercehasbeenmoreactiveduetotheentryofShopeein2015.Ifinthepast,theC2CmodelinVietnamisanonly personalbusinessmodel thatsellstoindividualsand mostonlyappears onforumsandsocialnetworks.Individualsandsmallshopswillpostproductinformation,allthere

deliveryaredonemanually.Thismethodd o e s noth a v e muchperformanceandscale.Nowadays,theC2Cmodelisbecomingmoreprofessional.Althoughitisdefinedasam a r k e t p l a c e , itisnotsimilartotraditionalmarket.Transactionsaremainlyconductedbetweenbuyerands e l l e r ; allordershavebeencompleted,automaticallyimplementedthroughtheelectronicsystem.Bythisway,s e l l e r s canbenefitfromhighersales,whilebuyershavemoreoptionsforlowerprices(Tian,Y.etal.2015)

FoundedinJuly2015,ShopeeisaSingapore-basedmobileshoppingplatform.Shopee'sstrategyfocusesontheSoutheastAsian

market,includingSingapore,Malaysia,Indonesia,Thailand,thePhilippines,Taiwana n d Vietnam.InVietnam,there arenopromotionalactivities,butShopee is ranked intop3onlineshoppingsites.ShopeedevelopsbasedontheC2Cmodel(customerstocustomers),theonlineplatformservicethatp r o v i d e s a p l a c e a n d o p p o r t u n i t y forthes a l e ofgoodsb e t w e

e n thebuyera n d thes e l l e r Shopeehass u c c e s s f u l l y integratedsocialnetworkinglikeFacebook,Zalo,Twitterintheire-commerceplatforminorder

toenhancetheeffectivenessincommunicationbetweenparties.BuyersandSellersareconnected,exchangedd i r e c t l y throughthefeatures:Chat,Bid,Comment,Rating,ProductSharingandTracking.Thesefeatureshelpbuyersgatherm o r e informationaboutthep r o d u c t a n d sellerbeforet h e y r e a l l y f e e lconfidentforo r d e r P a r t i c u l a r l y , i n r e c e n t t i m e s , L a z a d a v n , Adayroi.vn,Tiki.vn,takingl a r g e s t m a r k e t sharei n Vietname-

c o m m e r c e markethaveshiftedfromB2CplatformtoC2Cplatform,whichhasshownthepotentialofC2Cd e v e l o p m e n t inVietname-commercemarket

TheincreasingnumberofVietname-marketplacesh a s brokend o w n thee n t r y b a r r i e r s

marketcompetitionwhichisverylowprofitability andsurvivalrateforonlinebusinesses.Itisnotedthattheexpensefordevelopinganewcustomerinthee-

marketplaceisconsideredhigherthanintraditionalone.Butrepurchasedonlinebuyersh a v etendenciestospendmorethantheydointhefirsttime,oncebuyer-

sellerrelationshipexists,profitswillgrowfasterandfaster(ReichheldandSchefter,2000).Therefore,inordertosurviveintheC2Ce-

marketplacelikeShopee,onlinesellersmusthaveeffectivewaystoattractpreviouscustomerstomakeanotherpurchase( C h e n etal.,2017) Chiuetal.(2009)alsoindicatedthatinordertogainprofitsfromabuyer,thatbuyer

mustp u r c h a s e

atleastfourtimesatonesameseller’sstore.However,ine-marketplace,onlyhalfofthemhaveintentiontor e p e a t p u r c h a s e s T h i s l e a d s tot h e f o l l o w

i n g q u e s t i o n : W h a t f a c t o r s i m p a c t o n l i n e b u y e r s ’ r e p u r c h a s e intentiontoaparticularseller?

ThemainobjectiveofthisstudyistoexaminethepotentialfactorsaffectingthedecisiontorepurchaseinC2Ce-marketplace,therebysuggestingappropriatesolutionstosellersa n d websitedevelopers

Numerousempiricalstudieshaveattemptedtoexaminefactorsleadingtoonlinerepurchaseintention,focuso n definedb u y i n g f a c t o r s buying( K i m e t a l 2 0 1 3 ) ; informationsystems( I S ) s

u c c e s s ( W a n g 2 0 0 8 ) ; customersatisfaction(KhalifaandLiu2007);websitequality(Shinetal.,2013);websiteidentification(Kingeta l , 2016)andcomputer-

mediatedcommunicationtools(Baoetal.2017,Ouetal.2014).However,thesefactorsabovehadnotbeenintegratedintoacomprehensivemodelyet.ThisintegratedapproachisalsolackinginVietnameseonlinebuyersresearches.Moreover,mostofthee-

commercestudieshaveexaminedprimarilyonthebusiness-to-customer(B2C)context,largelyignoringtheC2Ccontext.Inordertofulfillthegapofpreviousr e s e a r c h e

r s andaccomplishthecomprehensivemodelofrepurchaseintention;thisresearchwillexploremorer e l

e v a n t literatureaboutcustomerloyaltyandfromthatdevelopsanintegratedmodelofrepurchaseintentioni n C2Ce-marketplace

Basedontheaboveargument,thispaperaimstoanswer:1)whatfactorsimpactoncustomersatisfactiona n d repurchaseintentiontowardsoneparticularsellerintheC2Ce-marketplace?

revisitingintentioninthefutureofonlinebuyersatonesameshop(Kimetal.,2012).Gruenetal

( 2 0 0 6 ) findthatcustomerrepurchaseintentionisusedtomeasurethecustomerloyaltyinC2Conline

timecustomers(Jiang&Rosenbllom,2005).Thus,theidentificationofdeterminantsofintentiontorepeatp u r c h a s i n g i n theC 2 C e -

c o m me r c e i s i mpo r t a nt forboths e l l e r s a nd pr a c t i t i o n e r s i n predictingcustomerbehaviorinthefuture.(Kimetal.2013;KhalifaandLiu2007;Shin2013;Baoetal.2017,Ouetal.2014)

Satisfactionwithseller

r y , suggestedthats a t i s fi e d c u s t o m e r s w i l l f o r m r e p u r c h a s e intention;b e c a u s e a dissatisfiedbuyeri s m o r e l i k e l y tos e a r c h foralternativeproductsa n d m o v e toa competitorthanasatisfiedbuyer.Paststudieswereconsistentwiththefindingsthatsupportedthepositiverelationshipbetweensatisfactionwithbehavioralretention(Wang,2008;Shinetal.,2013;Hsuetal.,2014).Thisstudythusproposesthefollowinghypothesis:

H1:SatisfactionwithsellerhasapositiveeffectonRepurchaseintention

PerceivedProductQuality

Inpreviousstudies,productqualityperceptionisdefinedasthewayconsumersevaluateorperceiveabouttheproduct’soverallperformance(Chen,2003).Keeney(1999)suggestedthattosurviveintheonlinebusiness,i t isrequiredthatsellersmustmaximizeproductqualityalongwithminimizeproductcost.Patterson(1993)figuredoutthatp e r c e i v e d productqualityi s t h e m o s t s i g n i fi c a n t f a c t o r i m p a c t i n g c u s t

o m e r s a t i s f a c t i o n M u l t i p l e researcheshavesimilarfindingthatsupportedacorrelationbetweenperceivedproductqualitywithcustomersatisfaction(Sweeney,Soutar,&Johnson1999;Tsiotsou,R.2006,Lin;C.Cetal.2011).Inthecontextofconsumers’satisfaction,Tsiotsou(2005)furthershowedthatthereisastrongrelationshipbetweenproductqualityperceptionandintentiontopurchase,includingpredictingrepurchaseintention.Manystudieshavep r o v i d e d theempiricalevidencetosupport

apositivedirect

effectofcustomerperceivedproductqualityonp u r c h a s i n g behaviorincludingintentiontorepeat(Bei&Chiao,2006;Tsiotsou,R.2006;Kingetal.,2016).B a s e d ontheabovearguments,thisstudythusproposesthefollowinghypotheses:

H2a:PerceivedproductqualityhasapositiveeffectonRepurchaseintentionH

2b:PerceivedproductqualityhasapositiveeffectonSatisfactionwithseller

PerceivedInformationQuality

DeLone&McLean(1992)definedinformationqualityasdesiredcharacteristicsoftheproductinformation.Onlineinformationqualityisthebuyer’sevaluationofthequalityofinformationaboutproductsdisplayedonthesellerwebsite(McKinney etal.,2002).Accordingtopreviouspapers, informationqualityhasbeenm e a s u r e d byf o l l o w i n g subconstructs:i n f o r m a t i o n a c c u r a c y ; timeliness;

f o r m a t ; r e l e v a n c y ; c o m p l e t e n e s s ; c l a r i t y and understandability;timeliness;easeofunderstandingper so na li za ti o n; and reliability(Brown& Jayakody,2008;DeLone&McLean,2003;Chenetal.,2017;Wang,2016)

Whensellersprovidebuyerswithcompleteandhelpfulinformation,thebuyerswilltakelessefforttoconductadditionalsearchesfordiminishedinformation(LiangandChen2009).Thisimpliesthathigh-qualityi n f o r m a t i o n displayedonthesellerwebsitedemonstratesthesellers’capabilityandtheirhonestinterestinc u s t o m e r s ; whichwillinfluenceconsumers’satisfactiontowardsthissellerwebsite(Chenetal.2017).Hence,accordingtoC h e n e t a l

(2017),themorec u s t o m e r s p e r c e i v e d thatthea c c u r a c y , format,reliability,a n d completenessoftheinformationdisplayedonbuyer’swebsite,themoretheywillbesatisfiedwiththesellers.W h a t ismore?

Informationqualityalsoenablescustomerstomakecomparisonsamongproducts,enhancetransactionsecurityaswellasunderstandpurchasingprocedures (Liu&Arnett,2000).Thus,informationqualitycanbeaconsiderablefactorwhenonlineshoppersrevisitsellerwebsiteinfutureintentionstomakeanotherpurchase(Shinetal.,2013;KimandNiehm2009).Thisstudythusproposesthefollowinghypotheses:

H3a:PerceivedinformationqualityhasapositiveeffectonRepurchaseintentionH3b:P e r

c e i v e d informationqualityhasapositiveeffectonSatisfactionwiththeseller

PerceivedPriceFairness

repeatpurchase.I n contrast,i f c u s t o m e r s p e r c e i v e a monetarylossonp r i c e , theyw i l l switchtoanotheronlinev e n d o r (Keaveney,1995).AccordingtoFornell,etal.(1992),priceperceptiontakesanimportantimpactoncustomersatisfactionsincecustomerstendtoconcernonpricewhenevaluatingproductandservicevalue.Manystudiesh a v e providedthefindingthatsupportedaninfluence offairnessperceptiononcustomersatisfactionandr e p u r c h a s e intentiontowardsonlineshopping(Jiang&Rosenbloom,2005;Grewaletal.2004;Martin2009,Suhaily,L.,&Soelasih,Y.2017).Thisstudythusproposesthefollowinghypotheses:

P e r c e i v e d highinteractivitymayallowconsumerstocommunicatewithothermemberstoaccessinformationf r o m thewebsite,whichresultstogreatercontroloftheirshoppingexperience(Ballantine,2005).Thus,itissuggestedthatperceivedinteractivityisunderstoodasanantecedentofsatisfaction(Shankar

&Rangaswamy,2 0 0 3 ; Ballantine,2005).I n C2Cmarkets,Chenetal

(2009)foundthatthecorecompetitiveadvantageofaC2Cplatformcomesfrommemberscommunication.Thisisexplainedbyinteractivityissignificantdeterminantforenhancinge-

commerceloyaltybecauseitenablescustomertocollectmoreinformationthansearchingexperiencessothatitincreasestheamountofinformationavailabletothecustomer(Haetal.,2010).Thankstocommunication,buyerandsellerhavemorechancetounderstandeachotherwhichwillcreatealong-termbuyer-

sellerrelationshipinonlinecontext(Ouetal.2014).Therearemanystudieshavedemonstratedthatinteractivityisthesignificantdeterminantofrepurchasedecisions(Song&Zinkhan,2008;Haetal.,2010).Thefollowinghypothesesaresuggested:

Instantmessengerisan

“onlineprivatecommunicationchannel”whichcanmimictraditionalinteractivef a c e t o

-f a c e communications.Thus,customerseasilyexchangein-formationbyattachingpictures,getadv

icef r o m buyer,adjusttheorderinformationaswellasnegotiateforlowerprice(Baoetal2016).OnShopee,Instantmessengertoolisembeddedonthewebsiteandcustomersuseittocommunicatewithbuyers.Instantmessengeralsocombinespictureorphototakingfeaturesothatpicturesofproductscanbesentdirectlytosellertochecktherelated information.Besides,Instantmessengerissimilartowell-knownchattoolssuchasFacebookmessenger,AppleI-message,bywhichcustomerscan useavatarsandemoticons(suchassmileys,

flashingicons)indiagramswhichresultsinenhancingabuyer-

sellerrelationship.Insum,theeffectiveuseofInstantmessengerinC2Ce-marketplaceslikeShopeefacilitatecommunicationandnegotiationprocessesinonlineshoppingexperience,astheresult,itenhancesinteractivityperceptionfromcustomers(Baoetal,2016,Ouetal,2014).Feedback&commentsystemplaysaroleofevaluationtoolthatallowscustomersevaluatetoaspecificproductafterpurchasingandthesellerisalsoabletorespondtocustomer’sfeedback(Pavlou&Dimoka,2 0 0 6 ) InC2Cplatform,feedback&commentsystemcanbeviewedasa“two-waycommunication”toolintermofratingsandevaluations.Indetails,whencustomersfinishatransaction,bothbuyersandsellerscanr a t e andwritedetailedtextcommentsaboutthattransaction.Shopeeencouragescustomerstogivefeedback,c o m m en t s byproviding apromotionthat

3.Methodology

Researchmethodology

Thisstudyemploysacasualresearchdesignwithquantitativeapproach.Thereasonwhychoosingthismethodisthatquantitativeanalysisisconsideredanappropriatemethodtomeasurethedegreeandextentofattitudes,ideas,performance,andothervariables(Ledgerwood&White,2006)

Thisstudycollectsdatathroughusingonlinesurveys.TargetpopulationthatisappropriatetothetopicisonlinecustomerswhohavealreadyusedShopeeonlineshoppingservice.Moreover,thestudyfocusesonc o l l e c t i n g d a t a f o r m u n i v e r s i t y studentsi n c l u d i n g InternationalU n i v e r s i

t y T h e r e a s o n s forthisi s thats t u d e n t s a r e c o n s i d e r e d asl a r g e

-s c a l e internetu -s e r -s a -s w e l l a -s r e p r e -s e n t a potential-s e g m e n t ofonline-shopper-s.Thu-s,theycanreflectthebehaviorsofonlineshoppersdeeply(Lietal.,2006)

ResearchDesignandDataCollection

Thequestionnairemustbedesignedineasy,clearandeasysentencesforparticipantstounderstanding.Itconsistsofthreemainparts.Thefirstpartincludesscreenquestiontoclassifyrespondentstofindtherightone.T h e s e c o n d p a r t i n c l u d e s questionst h a t determineobservationsoff a c t o r s m e n

t i o n e d i n c o n c e p t u a l model.Thefi nal part i n c l u d e s questionsto collect demographicinformationsuch a s: gender,age,c ar eer, incomepermonth,howlonghaverespondentengagedinshoppingonline

Thepilottestisconductedtestthequestionnaireeffectiveness,andthenmakemoreappropriateadjustmentsintermsofcontentandlanguagesothatrespondentscaneasilyunderstandaswellasaccessthestudy.Thesuggestionsandfeedbackfromthepilotareincludedinthefinalversionofthequestionnaire.Thefinalquestionnaireisusedtotestlargersamplesforthestudy

ThequestionnaireforobservationsinTable1[seeTable1]isdesignedbasedonpreviouspapersandpilottest adjustmentswiththeLikert scaleof5points:(1)totallydisagree;(2)disagree;(3)neutral;(4)agree;

(5)totallyagree.

Collectingdataactivityisspreadoutfornearly8weeks(includingpilottests).ThequestionnaireissendprivateonShopeeandFacebookthroughInstantMessengersystemto400people.330answerswerereturnedtothesystemduetoinvalidaddresses,andsoon.11ofthesurveysareeliminatedfromthestudyduetom i s s i n g dataandrandom,resultinginatotalof319validresponseswhichareusedforfurtheranalysisinthisstudy.

Surveyresponse

Table2illustratesproportionofrespondents’demographicinformation[seeTable2].Thenumberoffemalerespondentsisgreaterthannumberofmalerespondents(69.6%>30.4%).Themajorityofthecustomersaref r o m 1 8 to24with73.4%.Students andofficersarefamiliarwith theonlineshopping onShopeeaccountfor7 7 7 % and11.9%,thatiswhymostofrespondentsinsurveyearnlessthan3millionVND(62.4%).Moreover,peoplehavemoreexperiencedandkeeponlineshoppinghabitfor2yearsrate46.7

%hashighestvalue,whilenumberofpeoplehaveundersixmonthsexperienceslessenjoyshoppingonlineonShopeeaccountfor25.4%

4.Results

StatisticalProducta nd Se rv ice sSol ut io ns 20.0 (SPSS)softwarea ndA na l y s i s ofM o m e n t Structure22.0(AMOS)areusedtoanalyzeresponsesfromparticipants.Thedataanalysisisconductedwithseveraltests;theresultsofthesetestsarepresentedasbelow:

ExploratoryFactorAnalysis(EFA)andConfirmatoryfactoranalysis(CFA)

First,EFAisconductedtoreducedataintoasmallersetofvariablesandthenmeasurethenumberoffactor

a n d thefactorstructureasasetofvariables.Afterfinalizingthenumberoffactors,CFAisconducedtotestwhetherthemeasurementmodelfitswiththedatafromsurvey,whichEFAtechniqueisnotmeanttomeasure

A t thefirstroundofEFAtest[seeTable3a],variableswhosefactorloadingaregreaterthan0.5groupedintoeightfactorsasexpectedintheproposedtheoreticalmodel.ItemRI2haveapositivevalueofl

oadingv a l u e

l e s s thantherecommended0.5,whileItemPP3andPQ5haveapositivevalueofloadingvalueminuscrossingvalueislessthan0.3,whichdoesnotsatisfywiththethresholdofEFAtest(Hairetal.,2010).Thus

R I 2 , PP3,andPQ5aredeleted.AfterPQ5,RI2andPP3aredropped,thenewadjustedEFAtesthasremainitemsgroupedintoei ghtf ac t or sa s ex pe ct edint he proposedtheoreticalmodel [ s e e Tabl

e3 b] T he v al ue loadingsoftheremainingitemsaredisplayedinTable3b.Allitemshavefactorloadinggreaterthan0.5

loadingsandcross-aswellasthevalueofloadingvalueminuscrossingvaluegreaterthan0.3,whichisconsistentwithcriteriaforExploratoryFactorAnalysis(Hairetal.,2010)

t ill inacceptables c a l e (Gas ki n, J & Lim,J., 2016).T h e r e f o r e , thelowvalueofCFIdoesnotdistorttheresultsofthestudy

Alpha>0.6,Item-totalcorrelation>0.3.,Compositereliability>0.70(NunnallyandBernstein,1 9 9 4 ; Chin,1998).Tables4presentstheCronbach’sAlphaandCompositeReliability(CR)ofallitemsofall

factorsafterrunningSPSS20.0software.ThetablepresentsthatCronbach’sAlphaissignificantshowingthatmostitemsa r e effectivelym e a s u r i n g thesamef a c t o r A l l itemswhicha r e over0 3 satisfythe

I t e m

-t o -t a l correla-tion.Moreover,-theCRresul-tsobviouslysa-tisfy-thecondi-tionsof-the-tes-twi-th-thevaluesaregreater

0.7.Therefore,theinternalconsistencyreliabilityisconfirmedwithconfidence

AverageVarianceExtracted(AVE)istheimportanttestsintestingtheconstructvalidityanddiscriminantv a l i d i t y toguaranteethefitnessofmeasuredmodel.Thethresholdsforthisvalueare:theAVEvaluemustg r e a t e r than0.5,thecorrelationsbetweentwoconstructsareallsmallerthanthesquarerootoftheconstruct’sAVE(FornellandLarcker,1981;Hairetal.,2014).Inthefirsttest(resultsareshowedinthetable4),thereisaC o n v e r g e n t Validityconcernintermsoffactor“EffectiveuseofFeedback&commentsystem”(FB)becausetheAVElessthan0,5,whichdoesnot satisfytheconditions ofthetest.TosolvetheConvergent Validityproblem,theitemFB4iseliminatedinordertoimprovethevalueofAVE.Afteradjustment,theresultsofAVEvalueareshowedinthetable5.AllthevalueobviouslysatisfythevaliditymeasurethresholdswiththeAVEvaluesaregreater0.5,andthesquarerootofAVEvaluesarelargerthantheinter-

constructcorrelations;H e n c e , theresultsthevaliditytestsatisfytomovethenextsteps

Testingthehypothesesanddiscussion:

StructuralEquationModeling(SEM)testisusedtotestthehypothesizedrelationshipsintheproposedconceptualmodel.Table6showstheresultsofSEMbyAMOS22.0software

Theeffectsofperceptionfactorsoncustomersatisfactionwithseller(H2b,H3b,H4b,H5b):

BasedonSEM’sresults[seeTable6],allthesehypothesesaresupportedbecausetheirp-valuesarelessthan0.05.ThisimpliesthatallfactorsofperceptionincludingProductquality(PQ),Informationquality(IQ),P r i c e Fairness(PP)andInteractivity(IT)havesignificantpositiveimpactsonsatisfactionwithseller(SA)withtheirstandardizedregressionweightofthedirectionare0.293,0.314,0.222and0.134.Thisfindingissimilart o theargumentofBallantine’s(2005),LinC.Cetal.’s(2011)andKimetal.’s(2013)studieswhichhighlightedthatconsumersatisfaction issignificantlyimpacted bythequalityofproduct,informationinteractionandp r i c e fairness.ThisshowsthateventhoughthecurrentstudyexaminesinVietnamC2CcontextinsteadofB2Cplatform,anditstillfindthatVietnamesebuyersinbothe-

commerceplatformconsiderperceptionsofProductquality,Informationquality,PriceFairnessandInteractivityareimportantdeterminantsinbuildingonlinecustomersatisfaction

Theeffectsofperceptionfactorsoncustomerrepurchaseintention(H1,H2a,H3a,H4a,H5a):

BasedonSEM’sresults[seeTable6],onlythreehypothesesareH1;H3aandH5aaresupportedbecausetheirp-valuesarelessthan0.05.Indetails,thereareonlythree

outof5factorsnamelySatisfactionwithseller( S A ) ,

P e r c e i v e d Informationquality(IQ),andPerceivedInteractivity(IT)have directlysignificantinfluencesoncustomerrepurchaseintention(RI)withtheirstandardizedregressionweightofthedirectionare0.605,

0.194and0.204.ThisprovesthatSatisfactionwithseller(SA)isthefactorhasthemostinfluenceonrepurchasei n t e n t i o n (RI).TheresultofthisstudyisappropriatewithHsuetal.’s(2013),Wang(2008)’s,KimandNiehm’s( 2 0 0 9 ) a n d H a e t a l ’ s (2010)findingss u g g e s tinga p o s i t i v e influenceofcustomersatisfaction,p e r c e i v e d informationqualityandperceivedinteractivitytorepurchaseintentions.Thus,sellerine-

marketplaceshouldd e v e l o p appropriatebusinessstrategiesandmethodstomeetcustomers’expectation,especiallyimprovethequalityofinformationandinteractiontomaintainlongtermrelationshipwithcustomers.Thiscanbeachievedbydevelopingtherightmixofwebsitecontentandservices,especiallyafter-