Some factors impact to customer loyalty in the process of online shopping in Vietnam

This study uses analytical methods on SPSS 20.0 software which building, analyzing and testing the model of factors affecting customer loyalty in process of online buying as well as theoretical relationships related to online shopping. Đề tài Hoàn thiện công tác quản trị nhân sự tại Công ty TNHH Mộc Khải Tuyên được nghiên cứu nhằm giúp công ty TNHH Mộc Khải Tuyên làm rõ được thực trạng công tác quản trị nhân sự trong công ty như thế nào từ đó đề ra các giải pháp giúp công ty hoàn thiện công tác quản trị nhân sự tốt hơn trong thời gian tới.

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SOME FACTORS IMPACT TO CUSTOMER LOYALTY

IN THE PROCESS OF ONLINE SHOPPING IN VIETNAM

MA Vu Xuan Truong Marketing Faculty, Thuongmai University

Email: truong2203@gmail.com MA.Nguyen Minh Phuong Economics Faculty, Thuongmai University Email: ngminhphuong78@gmail.com

Abstracts: The strong development of e-commerce and online sales

are making competition in this industry more intense Therefore, creating and

maintaining customer loyalty is essential This study uses analytical methods on

SPSS 20.0 software which building, analyzing and testing the model of factors

affecting customer loyalty in process of online buying as well as theoretical

relationships related to online shopping From that, it is concluded that four

factors (trust in online shopping, website quality, service quality, switching costs)

have an indirect influence on loyalty through customer satisfaction

Keywords: loyalty, online shopping, trust, satisfaction, influencing factors

MỘT SỐ NHÂN TỐ TÁC ĐỘNG ĐẾN LÒNG TRUNG THÀNH CỦA KHÁCH HÀNG MUA SẮM TRỰC TUYẾN TẠI VIỆT NAM

Tóm tắt: Sự phát triển mạnh mẽ của thương mại diện tử (TMĐT) và hình

thức bán hàng trực tuyến làm cạnh tranh trong ngành này càng gay gắt Do đó,

việc tạo ra và duy trì lòng trung thành của khách hàng là rất cần thiết Nghiên

cứu sử dụng phương pháp phân tích trên phần mềm SPSS 20.0 để xây dựng, phân

tích và kiểm định mô hình các yếu tố ảnh hưởng đến lòng trung thành của khách

hàng khi mua hàng trực tuyến cũng như các mối quan hệ lý thuyết liên quan Với

4 yếu tố niềm tin vào mua sắm trực tuyến, chất lượng website, chất lượng dịch

vụ, chi phí chuyển đổi có ảnh hưởng gián tiếp đến lòng trung thành thông qua sự

thỏa mãn của khách hàng

Từ khóa: lòng trung thành;mua sắm trực tuyến, niềm tin, sự thỏa mãn;

1 Introduction

Online selling is a form of e-commerce that allows a customer directly purchases goods or services from a seller over the Internet by using web browsers,

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007831 f08 be8d9d7ff3 b76ae 1592ff8e 63eb f42 c19 6b4e 12415 4cc9ae7 9f3 34b 4ff81fc08e7 f157 c55 64f5d7e 0d0 b616 f418 78ddc6 c0a3 3da66 3243 588b128 c0 7e0e875 d038 1c6 12a3 c660 2b1e c6b1d05 b9 cc6 f02 11d9 93d8 2ab8 c510 c6e 2f3 3 7cf78f9aeb78 42a85 d478 d5e b2f44c4d87 5da7 c36a2 c1a9 f55 baf5 d9e0 2ce8 c5 4c13 fcf09d1ef3f6 867ac773 fc0 c859 d3 f430e 90b3 6fe3 2a401 d79a7a 3c2 6f8 6 c7a175 df1a3207 5f6a 3e081 53c84e7a0 533 c10 d158e 0d50fb4a 8d8 b94 f2f729 f 1355bea 1087 be4b57d7 b92 7eff6702 465a1 b9d2 3a389 409 c39a30 312b5fe0 6fe 62b8ff4 cfb7b2 b498 1e6 c5e54 de90e 94c0130 0f8e 5158 f5 b0044 471 f83d013 f7 ab27a6e2 e738a2 f0 c256 bd5 9b74 d78e 78c6c1 597b758e5 5e7 f9d6 025 c9f2685a shopping apps, social networks, etc Since 2016, customers can buy online using a variety

of computers and other deviceseach other, including desktops, laptops, tablets, and smart

phones According to the report of Vietnam E-commerce Association (VECOM), e-commerce

in Vietnam in the past 5 years has been growing strongly The average e-commerce sales in

Vietnam reached about 11 billion USD with an average growth rate of 22% (E-commerce

White Paper, 2022).

Figure 1 Vietnam B2C e-commerce revenue (2017-2022)

Source: E-commerce White Paper (2022)

Along with the development of online shopping in Vietnam, series of e-commerce

websites were born which meeting the significant needs of customers Currently, Vietnamese

customers, especially young consumers, are quite familiar with online shopping websites

such as: Tiki, Lazada, Shopee, Sendo with many points similarity in products and pricing

policies, delivery methods, after-sales and service quality Although e-commerce websites

have proliferated recently to provide online shopping services to customers, the story of

customers shopping online only once and not shopping again happens very often Therefore,

how to create and maintain customer loyalty when shopping online is an issue that needs to

be studied and solved to help businesses operate better There have been a number of studies

on the loyalty of customers in the service sector as well as in online shopping.

Customer loyalty is a concept that refers to customers’ propensity to buy and use the

product/service of a certain brand in a set of competittive brands in the market and repeats

this behavior (Chaudhuri and Holbrook, 2001); as an extra attachment that a customer has

to a product/service (Aaker, 1991); such as the extent to which customers feel that they are

associated with product/service brand (Keller, 1998); exhibiting attitudes or behaviors of

attachment with the customer’s service provider (Oliver, 1993) Loyalty of customers are

very important because it will help bring profits to the business (Kabiraj and Shanmugan,

2011) and it is a valuable asset of all brands (Tho et al., 2011).

This article focuses on studying customer loyalty models in the B2C or C2C electronic

marketing environment (businesses or individuals selling to end-consumers) In this section,

we discuss the shifting from the customer loyalty model in the traditional marketing

environment to the customer loyalty model in the e-marketing environment, also known

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as e-loyalty (e-loyalty) In general, these studies all build the relationship between Service

Quality - Satisfaction - Loyalty and analyzing the influence of other factors related to

customer behavior.

These behavioral factors act on loyalty as variables adjusted in the traditional service

quality satisfaction model Some influencing factors to customer loyalty when shopping

online in these studies These can be mentioned as: trust in online shopping, customer

satisfaction, commitment connection, service quality, website quality, switching costs,

technology adoption, Convenience, safety and privacy, information quality, security,

innovation website, order fulfillment, system availability Target of the study to explore the

factors affecting customer loyalty in process online shopping in Vietnam.

2 Theory of customer loyalty

The theory of customer loyalty in the traditional marketing environment has been

studied and discussed for a long time and very deeply, because this is an emphasized

and important factor in the operation Marketing and is a huge competitive advantage for

businesses There are two approaches to customer loyalty: behavioral loyalty and attitudinal

loyalty According to Olive (1997), customer loyalty model is an effective combination of

cognitive, emotional, purpose (purchasing purpose or need) and action (repetition) factors

of customer purchases) Olive defines customer loyalty as follows: “A firm commitment to

continue to purchase or to continue to visit the store each time there is a need to purchase

a product or service in the future by the customer customers, or repeat consumption using

the same brand for existing products/services or other products/services of the same brand,

regardless of circumstances (to customers) and (competitors’) marketing efforts to entice

customers or change their buying behaviour.

Loyalty Attitudes: Customer loyalty attitudes was talking about loyalty in the traditional

marketing environment include cognitive, affective, and behavioral aspects Usually,

customer loyalty develops based on the consistency of the brand image, the consistency

of communication messages through mass media communications tools Customer loyalty

implies customer satisfaction, but customer satisfaction is not enough to bring customer

loyalty to the business Customers with high loyalty to the brand of products and services

of the business often have positive attitudes and feelings towards the brand of the business

And of course, when customers have good and positive attitudes and feelings towards the

business’s brand, customers will become more and more loyalty.

Behavioral Intent: The intention of a customer’s buying behavior is an intermediate

behavior between the customer’s attitude and the customer’s behavior (Mittal & Kamakura)

(Mittal & Kamakura) , 2001) Researching on customer loyalty has shown that it is necessary

to focus on relevant factors in order to maintain and increase the commitment of customers

to continue to buy products and services of the business they are interested in which have

chosen and redirected from purpose to actual buying behavior (Kuhl & Beckmann, 1985)

Behavioral Loyalty: Customer loyalty behavior is understood as the repetition of buying

behavior for brands of products and services that customers have been using, which can be

expressed in many different forms For example, customers can be loyal to a specific brand

(or more) or they are loyal to a specific store/supermarket Customer satisfaction when

shopping and using products and services will create loyalty in their shopping behavior

(Schultz, 2000).

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3 Factors affecting customer loyalty in process of online shopping

3.1 Trust in online shopping

Trust in online shopping is the degree of trust customers have in transactions translate

online or into online sales channels (Sri et al 2013, p 105) In online shopping, this is

especially important to create loyalty because customers lack direct contact with suppliers

to complete online transactions line The positive influence of trust in online shopping on

loyalty demonstrated in increased customer spending, purchase intention, and repurchase

goods (Pavlou 2003, pp 74 - 75; Kim et al 2008, pp 99 - 100) In addition, faith is has a

positive effect on customer satisfaction (Sri et al 2013, p 105).

H1a: Trust in online shopping has a direct, positive influence on heart loyal

H1b: Trust in online shopping has a direct, positive influence on customer satisfaction

customer satisfaction

3.2 Website quality

Website quality is the characteristics of the website that meet the requirements of the

website customers when shopping online (Liu C., Arnett K P 2000, pp 27 - 29) Website

has good quality will help strengthen the relationship between seller and buyer, increase

sales sales and thereby increase customer loyalty because customers will visit website, the

ability to trade and re-transact will also be more (Poh-Ming and associates 2014, p 712).

H2a: Website quality has a positive influence, directly to loyalty

H2b: Website quality affects in the same direction, directly to the satisfaction of client

3.3 Service quality

Service quality is the difference between customer expectations of service service

and their perceptions of service outcomes (Parasuraman et al 1988, p 15) The previous

research on online shopping also showed an impact on service quality customer satisfaction

and indirectly increase customer loyalty (Anchal Jain, Mamta Sareen 2015, pp 1; Izyan

Bt Hila Ludin, Boon Liat Cheng 2014, p 462) Parasuraman et al (1988) proposed the five

quality gap model services, along with the SERVQUAL scale, which is considered by many

researchers to be quite comprehensive when assessing service quality This model is also

applied to evaluate the quality the number of services that online businesses provide.

H3a: Service quality has a direct, positive influence on loyalty

H3b: Service quality has a direct, direct influence on customer satisfaction row

3.4 Switching costs

Switching costs are costs associated with switching from one supplier to another other

suppliers (Porter 1998) Switching costs play an important role in keeping customer feet

When switching costs are perceived to be high, customers will not be available switch to

another supplier Conversely, when the perceived switching cost is low, customers will be

more inclined to switch to another supplier In e-commerce, the convenience of using the

Internet can reduce switching costs when delivery costs are no longer considered a conversion

cost, and moving to the website just by clicking the mouse can make the conversion barrier

much lower Some research suggests that switching costs have a direct and indirect effect

(through the customer satisfaction) to loyalty (Colgate, Lang 2001, p 332; Lee, Cunningham

2001, p 113 -130) while some studies show that the cost conversion only affects loyalty

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007831 f08 be8d9d7ff3 b76ae 1592ff8e 63eb f42 c19 6b4e 12415 4cc9ae7 9f3 34b 4ff81fc08e7 f157 c55 64f5d7e 0d0 b616 f418 78ddc6 c0a3 3da66 3243 588b128 c0 7e0e875 d038 1c6 12a3 c660 2b1e c6b1d05 b9 cc6 f02 11d9 93d8 2ab8 c510 c6e 2f3 3 7cf78f9aeb78 42a85 d478 d5e b2f44c4d87 5da7 c36a2 c1a9 f55 baf5 d9e0 2ce8 c5 4c13 fcf09d1ef3f6 867ac773 fc0 c859 d3 f430e 90b3 6fe3 2a401 d79a7a 3c2 6f8 6 c7a175 df1a3207 5f6a 3e081 53c84e7a0 533 c10 d158e 0d50fb4a 8d8 b94 f2f729 f 1355bea 1087 be4b57d7 b92 7eff6702 465a1 b9d2 3a389 409 c39a30 312b5fe0 6fe 62b8ff4 cfb7b2 b498 1e6 c5e54 de90e 94c0130 0f8e 5158 f5 b0044 471 f83d013 f7 ab27a6e2 e738a2 f0 c256 bd5 9b74 d78e 78c6c1 597b758e5 5e7 f9d6 025 c9f2685a directly, not indirectly through customer satisfaction (Beerli et al 2004, pp 253 - 275; Grace

T.R Lin, Chia-Chi Sun 209, p 458; Canon Tong et al 2012, p 105).

H4a: Switching costs have a direct, positive effect on loyalty

H4b: Switching costs have a direct, direct influence on customer satisfaction row

3.5 Customer Satisfaction (Satisfaction)

According to Oliver, customer satisfaction is the feeling of satisfaction that customers

have obtained during the procurement process (Oliver 1999, pp 33 - 44) Bitner and Zeithaml

argue that the satisfaction is the customer’s evaluation of the product or service received as

meeting expectations their expectations (Bitner M J., Zeithaml V A 2003) If the product

or service received If expectations are met, the customer is satisfied Satisfaction is the key

factor in customer retention and loyalty.

H5: Customer satisfaction has a direct, positive influence on loyalty

3.6 Loyalty (e-loyalty)

Loyalty is the positive attitude and commitment of customers towards the website,

leads to repurchase behavior and not to switch to another website Loyalty closes important

role in the success of the company and is the main goal of the plan strategic marketing Loyal

customers are more likely to repurchase, say good about the website and encourage others

to buy on the website (Sri et al 2013, p 104) From learning the factors that affect loyalty

when shopping online and the influence of each factor, service providers Online shopping

can increase customer loyalty.

Based on previous studies in the world and Vietnam, the research model factors affecting

customer loyalty when shopping online in this study is shown in Figure 2.1.

Figure 2.1 Research model of factors affecting customer loyalty

in process online shopping

4 Research Methodology

Using the convenience (non-probability) sampling method, it was carried out through

two stages: preliminary research and formal research All scales of research concepts in

the model are multivariate scales The scales use a 5-point Likert form (from 1 - strongly

disagree, to 5 - strongly agree) Preliminary research was carried out through a survey

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007831 f08 be8d9d7ff3 b76ae 1592ff8e 63eb f42 c19 6b4e 12415 4cc9ae7 9f3 34b 4ff81fc08e7 f157 c55 64f5d7e 0d0 b616 f418 78ddc6 c0a3 3da66 3243 588b128 c0 7e0e875 d038 1c6 12a3 c660 2b1e c6b1d05 b9 cc6 f02 11d9 93d8 2ab8 c510 c6e 2f3 3 7cf78f9aeb78 42a85 d478 d5e b2f44c4d87 5da7 c36a2 c1a9 f55 baf5 d9e0 2ce8 c5 4c13 fcf09d1ef3f6 867ac773 fc0 c859 d3 f430e 90b3 6fe3 2a401 d79a7a 3c2 6f8 6 c7a175 df1a3207 5f6a 3e081 53c84e7a0 533 c10 d158e 0d50fb4a 8d8 b94 f2f729 f 1355bea 1087 be4b57d7 b92 7eff6702 465a1 b9d2 3a389 409 c39a30 312b5fe0 6fe 62b8ff4 cfb7b2 b498 1e6 c5e54 de90e 94c0130 0f8e 5158 f5 b0044 471 f83d013 f7 ab27a6e2 e738a2 f0 c256 bd5 9b74 d78e 78c6c1 597b758e5 5e7 f9d6 025 c9f2685a using a preliminary quantitative questionnaire of 58 customers who had an online shopping

experience in the past 6 months (Hair et al., 2009, p 102).

5 Research results

With the preliminary quantitative questionnaire printed and distributed directly to the

respondents, a total of 58 valid questionnaires were collected After performing Cronbach’s

Alpha reliability analysis and EFA exploratory factor analysis for each scale in order to

evaluate the reliability and unidirectionality of the scales, preliminary quantitative analysis

results are summarized at Table 5.1.

Table 5.1 Preliminary results of quantitative research

Numbers Concept scale Number of variable Loading factor Cronbach’s

Alpha

1 Trust in online shopping 6 0.775 0.901 0.882

2 Website quality 8 0.583 0.890 0.884

3 Service quality 8 0.609 0.884 0.825

4 Conversion cost 6 0.591 0.876 0.867

5 Customer Satisfaction 6 0.731 0.827 0.768

Preliminary quantitative analysis results show that Cronbach’s Alpha coefficients

range from 0.768 to 0.884 (> 0.60) ie the confidence is reached When analyzing EFA for

each scale, all cases upload a single factor with load factors ranging from 0.583 to 0.901 (>

0.50), that is, meet the requirements for unidirectionality Thus, 40 variables are designed

to measure 6 concepts of research that can be used to collect formal data without further

adjustment of the variable.

6 Conclusion on factors affecting loyalty in process online shopping

Among the 5 factors according to the research model, only the customer satisfaction

factor is a direct influence on customer loyalty when shopping online Hypotheses H1a,

H2a, H3a, H4a are rejected, proving belief in online shopping, website quality, service

quality, conversion costs have no direct influence to customer loyalty when shopping online

However, the hypotheses H1b, H2b, H3b, H4b, H5 are supported, showing that these factors

have a direct impact on customer satisfaction, thereby indirectly affecting loyalty This result

slightly different from previous studies:

l Research by Pavlou 2003, Kim et al 2008: trust in online shopping has a direct and

indirect influence on loyalty through satisfaction.

l Research by Poh-Ming et al 2014: website quality directly affects to loyalty.

l Research by Beerli et al 2004, Grace T.R Lin, Chia-Chi Sun 2009, Canon Tong

et al 2012: switching costs only directly affect loyalty, not indirectly through customer

satisfaction.

However, these differences do not change the meaning of finding the factors affecting

the loyalty of the study Refusal of some theories of previous studies in this study further

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007831 f08 be8d9d7ff3 b76ae 1592ff8e 63eb f42 c19 6b4e 12415 4cc9ae7 9f3 34b 4ff81fc08e7 f157 c55 64f5d7e 0d0 b616 f418 78ddc6 c0a3 3da66 3243 588b128 c0 7e0e875 d038 1c6 12a3 c660 2b1e c6b1d05 b9 cc6 f02 11d9 93d8 2ab8 c510 c6e 2f3 3 7cf78f9aeb78 42a85 d478 d5e b2f44c4d87 5da7 c36a2 c1a9 f55 baf5 d9e0 2ce8 c5 4c13 fcf09d1ef3f6 867ac773 fc0 c859 d3 f430e 90b3 6fe3 2a401 d79a7a 3c2 6f8 6 c7a175 df1a3207 5f6a 3e081 53c84e7a0 533 c10 d158e 0d50fb4a 8d8 b94 f2f729 f 1355bea 1087 be4b57d7 b92 7eff6702 465a1 b9d2 3a389 409 c39a30 312b5fe0 6fe 62b8ff4 cfb7b2 b498 1e6 c5e54 de90e 94c0130 0f8e 5158 f5 b0044 471 f83d013 f7 ab27a6e2 e738a2 f0 c256 bd5 9b74 d78e 78c6c1 597b758e5 5e7 f9d6 025 c9f2685a confirmed the important role of importance of the satisfaction factor The reinforcement

of trust factors in online shopping, website quality, Service quality, Conversion costs will

contribute to the increase customer satisfaction, resulting in increased customer loyalty.

The order of importance of factors depends on Beta coefficient (regression coefficient

has been standardized) Which factor has the greater the absolute value of the Beta coefficient,

the greater the degree of influence the higher Normalized regression coefficients of trust

factors in online shopping, website quality, service quality, conversion cost are all positive,

so there are pictures positively affect customer satisfaction Besides, the standard regression

coefficient The value of the customer satisfaction factor is also positive, so customer

satisfaction is has a positive effect on loyalty.

Thus, the following conclusions can be drawn:

l Customer satisfaction is the most important factor that directly and together dimension

to customer loyalty when shopping online (standard regression coefficient turns 0.816).

l Trust in online shopping is a direct, one-way and strong impact factorcustomer

satisfaction (normalized regression coefficient 0.336), followed by quality service quality

(0.304), switching costs (0.232) and finally website quality (0.114), thereby indirectly

affecting loyalty.

Some suggestions and recommendations from the research results

Among the factors affecting customer loyalty in process online shopping, customer

satisfaction has the strongest impact and role Alike other industries, the online shopping

sector also needs to achieve maximum satisfaction customer satisfaction to be able to

retain and retain customers most effectively Satisfaction of customers is directly affected

by factors ranked in descending order, including: trust in online shopping, service quality,

switching costs, quality website Therefore, to improve customer satisfaction, it is necessary

to improve quality of the above factors In addition, businesses should consider the plan,

time and implementation resources, factors that businesses consider more important and

urgent for businesses, it is done first, less important factors are done later, because at the

same time, it may be difficult for businesses to implement complete solutions.

Trust in online shopping is a direct, one-way and strong impact factor customer

satisfaction, thereby indirectly affecting loyalty.

6.3.1 Increase customer satisfaction by focusing on the booking process products and

payment methods

Simple order process improvement: online sales need to improve sales process, payment

is fast, flexible and suitable for all customers It’s as simple as that: customers just need to

click on the product of their choice and to the second click to fill in the necessary information

such as the buyer’s name order, phone, email is complete For example, when a customer

logs in to the website with a personal password and find out product information During

the selection process goods, save to cart, on the website interface should appear the history

of items customers have bought the same price in total so customers know they have spent

how much to spend, instead of them having to go to the last step to know the total amount,

very time consuming time Besides, in the process they want to compare this product with

the product Otherwise, the website should also have an option to understand the market

on 2 products of the same type to customers choose When a customer places an order, the

delivery must be guaranteed goods on time and at the most competitive rates.

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6.3.2 Committed to the quality of goods

Research results show that product quality is an influencing factor strongest to loyalty

and second strongest to customer satisfaction when using online shopping services on the

online sales channel.

Whether a customer makes his or her purchase experience in-store or buying online,

the core of a positive experience is still the quality of the product with a clear and honest

origin in line with the enterprise’s commitment Currently, many parts of online transactions

is done based on customer trust For businesses, what retail businesses offer and implement

properly commitment to product quality and origin is a contributing factor to maintaining

and develop your customers Therefore, online sellers need to take measures to strengthen

the quality control of their products sold online.

6.3.3 Considering to enterprise’s resources to make key choices

Besides the two suggestions and recommendations from the above research results,

online businesses can actually consider their internal resource factors, thereby choosing which

factors contribute to their success, increasing the trust of online customers, which factors

have a strong impact on customer satisfaction, thereby indirectly affecting customer loyalty

in the future For example, if enterprises need to increase the online shopping experience

for customers, they can consider investing in the website interface and quickly interaction

on shopping applications: focusing on technology factors and technical solutions for online

shopping The factors businesses consider important and urgent to bring about efficiency for

online business should be done first, the less important factors should be done later, because

at the same time, it may be difficult for businesses to implement complete solutions.

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1 Ngo Quoc Chien, Nguyen Thi Que Thanh (2017) Factors affecting the heart customer

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2 Nguyen Thi Nhu Hoa, Nguyen Thao Nguyen (2019) The relationship between quality

transactions, relationship quality and customer loyalty online shopping Yersin Science Journal, 4(1),

3-16.

3 Nguyen Van Huan, Nguyen Thi Hang and Bui Thi Thu (2019) Satisfaction rating for

e-commerce websites of enterprises - A study in TNG Thai Nguyen Trading Investment Joint Stock

Company Science magazine Commercial, 140/2020, 22-32.

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Economics, commerce and Management, Vol V, Issue 2, Feb 2017

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Tiêu đề	Some Factors Impact To Customer Loyalty In The Process Of Online Shopping In Vietnam
Tác giả	Ma. Vu Xuan Truong, Ma. Nguyen Minh Phuong
Trường học	Thuongmai University
Chuyên ngành	Marketing
Thể loại	conference proceedings

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