FACTORS AFFECTING STUDENTS ONLINE PURCHASES SATISFACTION IN HO CHI MINH CITY

The rapid growth of ecommerce has revolutionized the way consumers purchase products and services, and students in particular have become an increasingly important segment of online shoppers. This research aims to investigate the factors influencing students satisfaction with online purchases in Ho Chi Minh City, Vietnam. Understanding these factors is crucial for online retailers and policymakers to develop effective strategies that enhance customer satisfaction and improve the overall online shopping experience for students. The study employs a mixedmethods research approach, combining qualitative and quantitative techniques. A comprehensive literature review is conducted to identify key determinants that may influence students satisfaction with online purchases. Overall, this research contributes to the existing literature by specifically focusing on factors affecting students online purchase satisfaction in Ho Chi Minh City. By addressing the unique characteristics and preferences of this target group, it offers practical implications for businesses and policymakers in Vietnams dynamic ecommerce landscape.

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

AND INFORMATION TECHNOLOGY

BUSINESS ADMINISTRATIONS

-*** -

FACTORS AFFECTING STUDENTS' ONLINE PURCHASES

SATISFACTION IN HO CHI MINH CITY

Full name: Trần Hoàng Vy

ID: 21DH483276

The rapid growth of e-commerce has revolutionized the way consumers purchase products and services, and students in particular have become an increasingly important segment of online shoppers This research aims to investigate the factors influencing

students' satisfaction with online purchases in Ho Chi Minh City, Vietnam Understanding these factors is crucial for online retailers and policymakers to develop effective strategies that enhance customer satisfaction and improve the overall online shopping experience for students

The study employs a mixed-methods research approach, combining qualitative and quantitative techniques A comprehensive literature review is conducted to identify key determinants that may influence students' satisfaction with online purchases

Overall, this research contributes to the existing literature by specifically focusing on factors affecting students' online purchase satisfaction in Ho Chi Minh City By addressing the unique characteristics and preferences of this target group, it offers practical implicationsfor businesses and policymakers in Vietnam's dynamic e-commerce landscape

TABLE OF CONTENT

CHAPTER I: INTRODUCTION 1

1.1 Overviews 1

1.2 Reason for topic 1

1.3 Research Objectives 2

1.4 Research Scope 2

CHAPTER II: LITERATURE REVIEW 4

2.1 Definition of online shopping 4

2.1.1 Definition of e-commerce 4

2.1.2 Definition of online shopping 5

2.1.3 Benefits of online shopping 5

2.2 Definition of customer satisfaction 6

2.2.1 Definition of customer satisfaction 6

2.2.2 The importance of improve customer satisfaction 7

2.3 Differences in students' online shopping behavior and satisfaction 8

2.4 Reference model 9

2.4.1 Research model of Ho and Wu (1999) 9

2.4.2 Research model of Guo et al (2012) 9

2.4.3 Research model of Trang (2014) 11

2.4.4 Research model of Giang (2018) 11

2.4.5 Research model of Wolfinbarger and Gilly (2003) 12

2.5 Overview of previous research 13

CHAPTER III: METHODOLOGY 14

3.1.1 Research model 14

3.1.2 Research hypothesis 14

3.2 Research question 15

3.3 Research design 16

3.3.1 Research objectives and methods 16

3.4 Research methods 17

3.4.1 Qualitative research 17

3.4.2 Quantitative research 17

3.4.3 Methods of processing research data 18

3.5 Research process 19

3.6 The method of data collection 20

3.6.1 Primary research 20

3.6.2 Secondary research 23

CHAPTER IV: RESULTS 24

4.1 Description of the research sample 24

4.2 Result of model regression 26

4.3 Discussing the research results 28

4.3.1 Security 28

4.3.2 Website design 28

4.3.3 Customer Service 28

4.3.4 Delivery service 28

4.3.5 Product diversity 29

4.3.6 Product quality 29

REFERENCES 30

CHAPTER I: INTRODUCTION 1.1 Overviews

Online shopping can be considered as a popular consumption trend in most countries with developed economies in the world The appearance of a series of e-commerce websites such as Tiki, Lazada, Shopee has made the online shopping market in Vietnam more exciting In addition, more and more young people are

participating in shopping with the interaction of social media networks such as

Facebook, Zalo and most recently, Tiktok Since then, the trend of online shopping hasbeen increasingly developed and shows the importance of commerce and services Online shopping has become a fertile and potential land for retailers to exploit and promises to bring many benefits to consumers

Especially during and after the Covid-19 epidemic, due to travel restrictions and social distancing, the demand for shopping through online channels is increasing day

by day According to Google (2022), in 2021, the number of Vietnamese people shopping online will reach more than 51 million, up 13.5% over the previous year, total spending on online shopping will reach 12 42 billion USD Accordingly,

Vietnam's prediction of the digital economy by 2025 will exceed 52 billion USD and

be one of the top three markets in the region According to the Ministry of Industry and Trade (2021), the percentage of Vietnamese people using the Internet that

contributes to online shopping behavior in 2020 will reach about 88%, compared to 77% in 2019 With the entry and competition of many new suppliers along with the increasing popularity of e-commerce, measuring customer satisfaction has become very important for online shopping and for researchers

1.2 Reason for topic

Consumers spend money to use the service and satisfaction will determine the consumer's next purchase behavior, so the customer's satisfaction should be paid attention to by administrators In order to build an appropriate and effective policy to

improve customer experience, managers need to know what factors customers are not satisfied with and its impact on customers' satisfaction is high or low From those insights, businesses can develop policies to further improve the quality of services and customer experience, thereby increasing consumers' attachment to the brand .

In Vietnam, there have also been many other studies conducted to find and

evaluate the factors that may affect customers' satisfaction in the context of shopping through online channels, such as Trang (2014); Nhu et al (2016), Giang (2018) … However, with the rapid development of science and technology (Science and

Technology), along with the fluctuations of the economy in the past period, it has also changed change consumer habits and behavior, especially after the Covid-19

pandemic Therefore, it is very important to focus on finding and assessing the

influence of factors on customers' satisfaction in the context of online shopping at this stage Besides, most of the previous studies were general research for consumers, not many studies really focused specifically on an object With the above arguments, the researcher boldly chose the topic "Factors affecting satisfaction when buying online bystudents in Ho Chi Minh City" as the topic

1.3 Research Objectives

This study was conducted with the following main objectives:

Firstly, systematize the theoretical framework related to customer's satisfaction and factors affecting customer's satisfaction in the context of online shopping of

consumers in general and students in particular

Second, identify the influencing factors and estimate the impact of those factors

on the satisfaction of students in Ho Chi Minh City when buying online

Third, propose some suitable solutions for businesses associated with the

research paper to improve the satisfaction of the student customer segment in Ho Chi Minh City in the context of online shopping

1.4 Research Scope

Research objective: factors affecting satisfaction when buying online by students

in Ho Chi Minh City

- Spatial scope: Ho Chi Minh city

- Time range: Primary data is collected in 2023

CHAPTER II: LITERATURE REVIEW 2.1 Definition of online shopping

2.1.1 Definition of e-commerce

“E-commerce” is also known by many different names such as: online commerce, paperless commerce, e-business… (Hong and Thoa, 2012) However, e-commerce is still the most popular name and is widely used in research works in this field Up to now, there is no fixed concept of e-commerce From different perspectives, different research will define e-commerce differently, but in general, scholars have pointed out that e-commerce can be considered from two angles: broad and narrow meanings (Hong and Thoa, 2012)

According to WTO (2020), e-commerce includes a chain of actions from

production, communication and promotion through the Internet, but the customer will receive the product organically According to the Trans-Pacific Dialogue Forum (1997), transactions of goods or services established through electronic devices are referred to as e-commerce According to EITO (1997) the performance of business transactions where value is transferred through telecommunications networks is called e-commerce In Vietnam, according to Hong and Thoa (2012), from a narrow perspective, trading

activities through the Internet are called commerce For example, buying through commerce platforms such as Shopee, Lazada or social networks Facebook, Tiktok Shop

e-is an e-commerce activity

In summary, whether in a broad or narrow sense, the views on e-commerce can be understood more simply than buying and selling goods and services on the Internet E-commerce in reality is extremely rich and diverse, so it is difficult for us to define it exactly It includes not only main activities such as sales, collection of money, but also marketing activities, customer care, they are especially important for both sellers and buyers Especially when the Internet develops at a rapid pace and the epidemic situation

is complicated and difficult to control, the role of e-commerce has become an important field for consumers in many places

2.1.2 Definition of online shopping

Online shopping is an important part of e-commerce According to Jusoh and Ling (2012), online shopping is defined as the customer taking various steps to purchase a service or product over the Internet It means going online, visiting a seller's website, choosing something and arranging for delivery Buyers make payment for products or services online by credit card, debit card, bank transfer or in person upon delivery

According to Trang (2014), online shopping is when consumers directly make purchases

of goods and services from sellers through the internet without any other intermediary Shopping and delivery are all via email, customers cannot touch or feel the items, so the interaction between buyers and sellers is mainly based on trust, unlike traditional retail

2.1.3 Benefits of online shopping

In the digital era, a series of new business models based on the application of

science and technology have been born, in which it can be said that the explosion of commerce leads to a change in customer behavioral intentions while shopping Modern consumers increasingly prefer online shopping because of the convenience and

e-usefulness that it brings The growth of e-commerce has also led to a revolution in the way businesses do business at retailers Doing business through online channels helps businesses increase productivity, reach customers in a wider environment, and improve order accuracy With the benefits that online shopping brings to buyers, besides, it also makes them change their previous behavior Nowadays, online shopping is really

becoming a rapidly growing phenomenon More and more consumers are shopping online to purchase goods and services

Some of those benefits include:

Firstly, online shopping helps customers save time and shop more flexibly In today's busy life, many people cannot arrange to move between stores to shop, so sitting

at home or office and just using electronic devices connected to the Internet is an option Getting the products you want is considered the biggest advantage of online shopping Online shopping helps consumers reduce the time it takes to sort through products and services They also take less time to resolve invoice and order discrepancies

Furthermore, consumers can shop online 24 hours a day This is because e-commerce is open for 365 days and never closes even for a minute

Second, when compared with traditional shopping, the convenience of consumers inonline shopping is far superior Instead of having to worry about traffic problems when shopping directly at the store and transporting goods from the store to home, online shopping brings comfort to consumers when they do not have to go out If you have to carry heavy goods home, all the goods can be delivered to your home instead.

Third, online shopping helps consumers easily compare prices to choose the most optimal price For online shopping, just through a few clicks, customers will have access

to information about the price of each product of each brand and each store The process

of comparing prices and product quality between different brands and stores will help users make the optimal consumption choice and suit their needs

Fourth, online shopping often has incentives with discount codes for customers to buy goods at the best price Platforms that provide online shopping often offer discounts, promotions, and free shipping policies so that consumers can save money on online shopping This process helps customers increase the perceived value of online shopping and bring them satisfaction

Fifth, on online shopping sites, there are often reviews of old customers about products - services they have purchased and used This will be a useful source of

information to help consumers make the most appropriate and optimal choice of productsand services

Finally, along with the advancement of e-commerce, more and more electronic payment methods appear to increase the convenience for users Instead of receiving goods and then paying, now, consumers can also safely use online payment services via e-wallets, cards, accounts, etc With the temporary payment feature, absolute buyer protection offers a variety of payment services, customers can exchange goods, can complain, give suggestions, and get help and support 24 /7

2.2 Definition of customer satisfaction

2.2.1 Definition of customer satisfaction

Although customer satisfaction has been a topic of interest to many researchers for decades, it is still a controversial term among scholars There is no unified definition of customer satisfaction Based on different research approaches and objectives, researchers

offer different concepts of satisfaction According to Johnson et al (1995), after

customers use the product or service, there will be a response of satisfaction or

disappointment This feeling arises due to the difference in expectations before

consumption and perceived after actual consumption According to Oliver et al (1997), customer satisfaction is the difference between customers' expectations and actual

perceptions while Westbrook (1987) thinks that customer satisfaction is the customer's perception of products or services they use According to Zeithaml and Bitner (2000), customers' assessment of the degree to which a product or service meets their needs and expectations is customer satisfaction Meanwhile, according to Kotler (2000), satisfaction

is the consumer's feeling of satisfaction or disappointment after using it based on the comparison between expectations and actual feelings after use Although there are many different definitions, in general, satisfaction is understood as the difference between customer expectations and the actual perception received

Thus, consumer satisfaction is the result of a comparison between expectations and experiences; In other words, consumers are satisfied when in the process of experiencing products or using services, they feel satisfied or even more than their expectations

Satisfaction and loyalty are important factors affecting the strong development of

businesses in the market because satisfied customers are the ones who will repeat the purchase if the service provider achieves or exceed their expectations

2.2.2 The importance of improve customer satisfaction

In the fiercely competitive market economy, improving customer satisfaction has become a strategy that many businesses are interested in because it benefits businesses in establishing long-term relationships with customers customers thus clearly position the brand in the market The study of customer satisfaction also helps businesses have a basis

to innovate and improve products and services that are close to the tastes and needs of customers, thereby stimulating customers to experience and stick with them with more brands

Expectations when shopping are mostly formed from past buying experiences, word

of mouth information from people around such as family, friends, colleagues, and

information received through business activities communication and promotion of

products and services When the actual buying experience does not meet the expectations

of consumers, they will tend to be disappointed and will spread word of mouth to those around them Therefore, learning about customer satisfaction has become an annual activity in businesses A high level of satisfaction can bring many benefits to a business First of all, the likelihood of a satisfied customer returning to use a product or service is very high, so a high level of customer satisfaction will improve customer loyalty and attachment to the brand Besides, satisfied customers can introduce products and services

of the business to their surroundings, so the business cannot need to promote and still get new customers thereby increasing sales revenue and profit Improving customer

satisfaction also helps businesses save money because serving old customers always costsless than serving a new customer At the same time, a customer with a high level of satisfaction is willing to pay more for a company's other product or service

Most businesses today realize the rapid change in customer behavior and

continuously follow the movement of the economy along with the increasingly fierce competition of the market economy Therefore, they need to take specific actions to increase their competitive advantage and in which improving customer satisfaction is an indispensable thing for any business that wants to maintain the sustainability of the market Because customer satisfaction is the key to turning new customers into loyal customers and is a free advertising channel for businesses to attract more new customers Improving customer satisfaction is considered an important tool that can help businesses increase market share and dominate the market more quickly and effectively

2.3 Differences in students' online shopping behavior and satisfaction

Online shopping trend is becoming a popular culture among young people,

especially students It can be seen that students are the object of access to online

shopping very quickly because of their ability to access modern electronic devices such

as computers and phones to access the Internet and surf the web every day, so they are important customer audience of online shopping business platforms However, students are also consumers with low income, so their ability to accept payment as well as the items they choose to shop will also be different compared to the elderly customer group Besides, with the agility and understanding of technology, the behavioral intention and satisfaction of this group of customers will also be different from that of the elderly groupwho are able to access and use the technology is still limited Because of these

differences, it is very necessary to study the factors affecting online shopping satisfaction for students because this is a large customer group of this market and trends in attitudes, behaviors and perceptions of services also differ from those of other consumer groups.

2.4 Reference model

2.4.1 Research model of Ho and Wu (1999)

Research model of Ho and Wu (1999) was conducted to study the influence of service quality on consumers' satisfaction when shopping online The academics' sample consisted of 79 random consumers who purchased from 5 online stores in Taiwan The researchers found that 5 factors have an impact on the satisfaction of survey participants when shopping online on the Internet Among them website presentation is a new and unique element that has never existed in traditional marketing

e-Figure 2.1 Research by Ho and Wu (1999)

2.4.2 Research model of Guo et al (2012)

Guo et al (2012) studied to determine the factors that affect satisfaction when customers shop online In the study, these scholars propose 8 aspects related to e-servicesthat can be predicted for satisfaction when making consumers' online shopping including

presentation and website design, security, information quality, payment method, e-servicequality, product quality, product variety and finally delivery service Accordingly, the factors mentioned above are expected to have the effect of promoting the improvement ofcustomers' satisfaction They gathered from a survey of 350 customers who had ever shopped in China to use as data for the study Through multivariable linear regression model estimation, the scholars found that all 8 factors proposed above have a positive impact on consumers' satisfaction for online shopping in China.

Figure 2.2 Research model of Guo et al (2012)

2.4.3 Research model of Trang (2014)

Trang (2014) conducted a study to assess the impact of e-service quality on

consumers' satisfaction in Ho Chi Minh City when shopping online According to this researcher, the quality of e-services provided is based on four factors including website design, security, order fulfillment and finally system availability Through a survey of

354 customers in Ho Chi Minh City In Ho Chi Minh City, there is an online shopping behavior, the researcher has built a data set for research The results of the OLS

estimation for the multivariable linear regression model help the researcher to conclude that the factors including order fulfillment, security, website design, and system

availability all have an impact affect the customer's satisfaction when shopping online

Figure 2.3 Research model of Trang (2014)

2.4.4 Research model of Giang (2018)

Giang (2018) studied the factors that affect the satisfaction of consumers in Bien Hoa City when shopping online In addition to factors related to e-service quality, the researcher also considers the influence of demographic variables on consumers'

satisfaction when shopping online The data is recorded by the researcher from 257 users who have purchased online in the area By estimating OLS with multivariable linear regression model, Luu Hoang Giang discovered that when shopping online, there are 5 factors that affect customer satisfaction including website design, security, customer

service, utility, and finally product characteristics In which, the two factors that have the strongest impact on customer satisfaction are product characteristics and security.

Figure 2.4 Research model of Giang (2018)

2.4.5 Research model of Wolfinbarger and Gilly (2003)

Wolfinbarger and Gilly (2003) developed a scale to measure the quality of online sales websites called eTailQ The eTailQ scale has 4 main scales with 14 observed

variables The scales that reflect the quality of online sales websites proposed by these scholars include website design, trust, security and finally customer service In there

- Website design: refers to the attributes of an application or e-commerce website such as product filters, navigability, accessibility, and ease of use

- Trust: the accuracy and truthfulness of the information posted on the application,website, the ability to deliver on time and exactly as committed

- Security: the safety and protection of customer data, means of payment of the website

- Customer service: feedback and support to customers with problems related to products, manners, behavior of staff in the process of helping, answering

customers' questions

2.5 Overview of previous research

Thus, in the past decade, with the great progress of e-commerce and online

shopping, it has become a potential field and strong growth in many regions, including developed and developing countries including Vietnam Consumers are choosing to shop online more and more, especially during the Covid-19 pandemic, consumers' online shopping behavior has changed significantly In Vietnam, the issue related to online shopping has become a topic of interest to many policy makers, but research topics on this topic are not really diverse, complete and up to date In addition, most of the previousresearch have only focused on the online shopping intention of consumers in Vietnam buthave not paid much attention to satisfaction as well as their loyalty when shopping

online While there are not many studies aimed at students, even a large segment of the online shopping market for businesses These things create a research gap for the

researcher to carry out this topic

CHAPTER III: METHODOLOGY 3.1 Research model and research hypothesis

Hypothesis H2: Website design has a positive impact on the satisfaction of students

in Ho Chi Minh City when shopping online