Tiltle “ The impact of after-sales service factors on electronic satisfaction, electronic loyalty, and repuchase intentions for cosmetics on e-commerce platforms: a case study of student
INTRODUCTION
Rationale of the study
E-commerce has rapidly evolved into a crucial component of global retail, transforming the buying and selling of goods through the internet The ongoing digitization of everyday life has enabled consumers worldwide to enjoy the benefits of online transactions In fact, Statista reports that global retail e-commerce sales surpassed $5.7 trillion in 2022, capturing 20% of the total global retail market share.
The Vietnamese market is witnessing a growing trend towards online shopping, driven by its diversity, convenience, and speed As reported by Statisla, e-commerce constitutes 8% of total retail sales in Vietnam, with 63 million active users The Ministry of Industry and Trade estimates that the retail e-commerce market reached $16.4 billion in 2022, representing 7.5% of the country's consumer goods and services revenue, marking a 20% increase from the previous year.
The cosmetics market is one of the largest and fastest-growing retail sectors, with Vietnam's Ministry of Industry and Trade reporting that 75% of the population uses the Internet, and 74.8% of these users engage in online shopping Popular online shopping categories include clothing, shoes, and cosmetics According to Thormundsson (2023), the global cosmetics market revenue reached an impressive $103.80 billion.
The Vietnamese cosmetics market is projected to experience significant growth, with a compound annual growth rate (CAGR) of 4.43% from 2023 to 2028 In 2023, the market revenue reached $528.90 million, highlighting its potential as a thriving industry that Vietnam should prioritize for accelerated development.
In the competitive e-commerce landscape, businesses encounter significant challenges and opportunities as consumers can swiftly switch suppliers To foster customer loyalty and encourage repeat purchases, companies must enhance their after-sales services, including return policies, warranty offerings, delivery options, and customer support By establishing robust policies and added benefits, businesses can build trust with consumers and incentivize them to return for future purchases.
After-sales service plays a crucial role in enhancing customer experience in online shopping, fostering confidence and encouraging higher spending This positive interaction not only boosts customer satisfaction but also strengthens brand loyalty, ultimately driving sales growth in the online sector The implementation of efficient, secure, and customer-centric after-sales support is key to achieving these benefits.
Shopee, the leading Vietnamese e-commerce giant, has outperformed competitors like TIKI, Lazada, and Sendo Meanwhile, Sendo has seen a decline in customer loyalty and market share, dropping out of the top 10 most popular e-commerce platforms on social media, as reported by Reputa at the end of 2022.
In the competitive online cosmetics industry, businesses are increasingly prioritizing the post-purchase experience alongside product sales Quality after-sales service fosters trust and confidence between brands and customers while establishing ongoing communication channels This interaction not only enhances the customer experience but also enables brands to gather valuable feedback for service and product improvements Furthermore, effective after-sales strategies, such as special promotions, gifts, and personalized consultations, serve as crucial marketing tools to attract and retain customers, ultimately creating a memorable shopping experience and fostering long-term relationships.
Sephora's tiered loyalty program, featuring Beauty Insider, VIB, and Rouge levels, effectively incentivizes customers to increase their spending and foster brand loyalty Similarly, L'Oreal enhances customer satisfaction by offering premium 24/7 customer service, allowing consumers to replicate their in-store experience online with prompt responses to inquiries This commitment to exceptional service has played a crucial role in L'Oreal's consistent revenue growth over the years.
To enhance customer trust and encourage repeat purchases, businesses must improve their after-sales services, including return policies, warranty policies, delivery policies, customer support, and additional benefits Despite the importance of this area, research on after-sales service in Vietnam's e-commerce sector remains limited This gap motivates the current study, which aims to explore how to boost customer satisfaction, loyalty, and repurchase intentions specifically for online cosmetics purchases The proposed research topic is "The Impact of After-Sales Service Factors on Electronic Satisfaction, Electronic Loyalty, and Repurchase Intentions for Cosmetics on E-commerce Platforms: A Case Study of Students in Ho Chi Minh City."
Objective of the study
This study examines how after-sales service impacts electronic satisfaction, loyalty, and repeat purchase intentions among students in Ho Chi Minh City when purchasing cosmetics on e-commerce platforms The findings aim to offer valuable recommendations for both businesses and consumers, enhancing customer satisfaction and encouraging repeat purchases in the cosmetics sector online.
Identify the factors affecting the intention to purchase cosmetics of students in
Ho Chi Minh City on c-commcrcc platforms.
Identify the factors affecting the impact of after-sales sendee of e-commerce platforms on electronic satisfaction, electronic loyalty, and repurchase intentions of students in Ho Chi Minh City.
Estimate the impact of after-sales sendee on the cosmetics industry on e commerce platforms in Ho Chi Minh City.
To enhance customer experience and boost electronic loyalty for cosmetics on e-commerce platforms in Ho Chi Minh, businesses should implement comprehensive after-sales services This includes timely follow-ups, personalized communication, and easy return processes to ensure customer satisfaction Additionally, offering loyalty programs and exclusive discounts can encourage repeat purchases By prioritizing customer feedback and continuously improving service quality, businesses can foster long-term relationships, ultimately driving revenue growth in the competitive online cosmetics market.
City in particular and Vietnam in general.
The subject and scope of the study
The factors of after-sales service affecting electronic satisfaction, electronic loyalty, and repurchase intentions for cosmetics on e-commerce platforms of students in Ho Chi Minh City.
Students in Ho Chi Minh City.
1.3.2 The scope of the study
The data and information serving the research were collected from December
The data and information serving the research were collected in Ho Chi Minh City.
Research methods
Qualitative research methods were employed to refine and enhance the draft scale after its initial development This involved interviewing experts with backgrounds in cosmetics and e-commerce, ensuring the collection of precise information and the adaptation of language to effectively resonate with the target consumer group for subsequent quantitative surveys.
A qualitative survey was conducted by the research team involving five online cosmetics consumers in Ho Chi Minh City, focusing on key factors such as purchase intention, repeat purchasing, after-sales service, electronic satisfaction, and electronic loyalty The team carefully designed the questionnaire, and the insights gained from the survey will inform future quantitative research efforts.
The team needs to rely on the research model to have a specific number of questions to then design the sample correctly.
Sampling survey: Using the convenient sampling method by survey questionnaires to collect primary survey samples.
Data analysis based on SPSS software through Descriptive statistics,Cronbach's Alpha reliability test, EFA examination, Pearson correlation analysis, and regression analysis to assess the research model.
Chapter 1 provides an overview of the research, emphasizing the significance of e-commerce in global retail, particularly in Vietnam's rapidly developing market The central focus of the entire research topic is on after-sales service in the cosmetics industry, where the online sector is expanding rapidly With the increasing dependence on online shopping in the Vietnamese market, the research aims to explore the impact of after-sales service factors on electronic satisfaction, electronic loyalty, and repurchase intentions for cosmetics on e-commerce platforms, especially among students in Ho Chi Minh City Objectives include identifying key factors influencing students' cosmetic purchasing decisions, evaluating the impact of e-commerce after sales service, and proposing recommendations to optimize customer experiences, enhance electronic loyalty, and increase revenue The study seeks to build a loyal customer base for cosmetic businesses in particular and e-commerce platforms in general The research employs both qualitative and quantitative research methods, incorporating expert interviews and surveys with online cosmetics consumers in Ho Chi Minh City.
OVERVIEW OF RESEARCH SITUATION AND THEORETICAL BASIS
Status of research issues
2.1.1 Research on the effect of after-sale services on customer satisfaction and loyalty in the automotive industry of Ethiopia by Kindye Essa Mustofa in 2011
This research examines the after-sales service provided by automotive companies, highlighting key components such as PDI service, regular maintenance, car wash, spare parts supply, online support, warranty, driving instruction, annual inspections, towing, and documentation services Customer satisfaction is evaluated based on quality, time, and price, revealing that while most customers are satisfied, there are also neutral and dissatisfied respondents The study indicates satisfactory feedback across most service parameters, but significant differences exist in customer responses regarding maintenance time, overall satisfaction, spare parts provision, documentation, phone support, and warranty services Notably, no significant differences were found in problem resolution and maintenance service pricing A positive correlation between customer satisfaction in after-sales service and customer loyalty is also identified Challenges faced by automotive companies include customer misunderstandings about warranty content, insufficient training, limited workshop and parking space, incorrect customer information, and restricted spare parts access In conclusion, the study emphasizes that the quality of after-sales service significantly impacts customer satisfaction and loyalty.
2.1.2 Research on the effect of e-commerce post-purchase activities on customer retention in Shopee Indonesia by Margaretha Pink and Nicoline Djohan in 2021
This research highlights a significant positive correlation between customer service and customer satisfaction in online shopping Consistent with Cao et al (2018), customer service is identified as a crucial factor influencing satisfaction Additionally, the study reveals a strong relationship between shipping and customer satisfaction, aligning with Handoko's (2016) findings on delivery's impact on online buyers in Indonesia Furthermore, a positive relationship between return policies and customer satisfaction is supported by Janakiraman et al (2016), who noted that flexible return policies enhance satisfaction and repurchase intentions Similarly, Jain et al (2017) found that order fulfillment positively affects customer satisfaction and repurchase intent Overall, the hypothesis testing confirms that customer support policies, delivery, returns, and order fulfillment significantly enhance customer satisfaction, which in turn positively influences customer retention.
2.1.3 Research on the impact of after-sales service on satisfaction and intention to continue online shopping for fashion products in Ho Chi Minh City by author Tran Thi Minh Thu in 2021
Research indicates that after-sales service significantly influences online customer satisfaction and their intention to continue shopping Online retailers must prioritize effective after-sales services, including clear return and warranty policies, reliable delivery options, and accessible customer support A study conducted in Ho Chi Minh City highlights the positive impact of these components on customer satisfaction and loyalty in the fashion sector By measuring the collective influence of these elements, the study underscores their importance in enhancing customer relationships and satisfaction beyond mere shopping activities Additionally, it emphasizes that transparent and easily accessible after-sales services can serve as a competitive advantage for online retailers, ultimately leading to increased customer retention and revenue However, the research acknowledges limitations in its ability to generalize findings due to sampling constraints and a lack of demographic analysis, which could provide deeper insights into varying customer behaviors and perceptions.
2.1.4 Research on the impact of after-sales service quality on loyalty through customer satisfaction: The case of Head Honda in Dong Nai province by Nguyen Hoang Sinh and Luong Dinh Hicn in 2023
The research successfully achieved its objectives by identifying key factors of after-sales service quality at Head Honda in Dong Nai province, namely Tangibility, Reliability, Responsiveness, Assurance, and Empathy, which directly influence customer loyalty through satisfaction Additionally, the study highlighted the significant role of alternative attractiveness in customers' decisions to return for services It also measured the impact of satisfaction and alternative attractiveness on customer loyalty, demonstrating how these elements shape customer decisions and behaviors Overall, the findings confirm that the research model is both suitable and accurate based on the collected data, supporting the initial hypotheses.
The concepts of research
E-commerce is defined as the art of trading goods and services through electronic tools (Kotler & Keller, 2006) It serves as a dynamic platform for buying, selling, exchanging, and transferring products, services, and information across digital networks, particularly the Internet and intranet (Turban, 2008) This perspective is further supported by Laudon and Traver, highlighting the significance of e-commerce in today’s digital marketplace.
E-commerce is defined as the facilitation of commercial transactions through the Internet, mobile applications, and web browsers, seamlessly integrated into handheld devices It represents a complex network of transactions involving the exchange of goods and services via electronic channels and telecommunications.
Currently, many organizations have proposed the concept of e-commerce such as:
The World Trade Organization (WTO) defines e-commerce as the entire process of producing, advertising, selling, and distributing products online, emphasizing the delivery of digital products and information Similarly, the European Commission characterizes e-commerce as electronic transactions conducted via the Internet or intermediary networks, which includes ordering and providing online services The E-commerce Committee of the Asia-Pacific Economic Cooperation (APEC) highlights that e-commerce encompasses the exchange of goods and services through Internet systems, focusing on electronic transactions between individuals or organizations Furthermore, the Ministry of Industry and Trade of Vietnam notes that e-commerce extends beyond mere buying and selling, encompassing a wide range of fields and applications.
2.2.2 Concept and characteristics of cosmetics
A cosmetic product is a formulation designed for use on external body surfaces, including skin, hair, nails, lips, and even the external genital organs, as well as teeth and oral mucosa The main purposes of these products are to cleanse, add fragrance, enhance appearance, shape, regulate body odor, protect the body, and maintain overall well-being, as outlined in Circular No 06/2011/TT-BYT regarding cosmetic regulation.
According to the ASEAN Harmonization System Agreement on cosmetic management, a "Cosmetic product" is defined as any substance or formulation intended to interact with the outer parts of the human body, including the skin, hair, nails, lips, and external genital organs, as well as for contact with teeth and oral mucosa These products are primarily aimed at cleansing, perfuming, enhancing appearance, or maintaining the optimal condition of the body.
The rise of the Internet has made cosmetics widely accessible on online news platforms and social networks, engaging consumers more frequently E-commerce has transformed the shopping experience, allowing customers to easily purchase cosmetics online without visiting physical stores As a result, the online cosmetics market is a growing trend that is expected to continue expanding and evolving in the future.
2.2.3 Concept of after-sales services
After-sales service is essential for addressing and resolving any issues related to a product post-purchase, regardless of the source, whether from businesses, retailers, or suppliers This service plays a crucial role in a company's strategy and demonstrates a strong commitment to customer rights and experiences throughout all phases of the shopping journey, including before, during, and after the sale.
After-sales service is essential for fostering strong customer relationships, as it goes beyond merely addressing issues after a purchase Its primary objective is to enhance customer satisfaction and value throughout the entire product journey, from initial interest to long-term usage By focusing on optimizing the overall customer experience, after-sales service ensures that customers feel supported and valued at every stage.
In the competitive e-commerce landscape, businesses are increasingly investing in after-sales service to exceed customer expectations and enhance the shopping experience This commitment transforms the post-purchase journey into a comprehensive process that includes attentive care and effective problem-solving As a result, after-sales service on e-commerce platforms has become a crucial guarantee for customer satisfaction.
24/7 customer support service: Provide advice and support through online channels such as online chat, phone, and email to solve all customer problems immediately.
Flexible return policy: Create favorable conditions for exchanging or returning products within a certain period of time after purchase, to ensure customer satisfaction.
Extended warranty: Provide extended or expanded warranty packages to protect the customer's product for a longer time.
Regular customer incentive program: Create promotional programs, discounts, or special gifts for loyal and regular shoppers.
Detailed usage guide: Provide clear instructional documents, instructional videos, or online training sessions to help customers use the product effectively.
Professional delivery and installation: Fast and safe delivery sendee, along with a professional installation option if requested.
Post-shopping incentives: Provide special incentives for related products or services after customers have successfully shopped.
Point accumulation program and membership card: Create a point accumulation system or membership card to encourage loyalty and provide exclusive incentives.
The rapid growth of the Internet has transformed business operations and consumer shopping habits, particularly during the COVID-19 pandemic, which has sparked a revolution in online shopping According to Javadi and colleagues, online shopping behavior refers to consumers purchasing through online stores or websites Research by Adnan (2014) highlights that online shopping offers numerous advantages, including convenience, ease of use, cost-effectiveness, time savings, a wide variety of products and brands, and faster delivery services compared to traditional shopping methods.
Studying online shopping behavior involves a thorough assessment of customers' perceptions, experiences, and evaluations of products or services throughout the online shopping journey Research indicates that several factors influence an individual's online shopping behavior, including satisfaction, trust, financial risk, product performance risk, delivery risk, shopping intention, and repeat purchase intention This study will specifically examine the "electronic" aspects of consumer online shopping behavior, with a particular focus on Electronic Satisfaction and Electronic Loyalty within e-commerce platforms.
Intention plays a crucial role in predicting an individual's future behavior, particularly in the context of e-commerce It is defined as the customer's desire to complete a transaction online to acquire goods and services that meet their needs This intention encompasses the plan to utilize online platforms, such as websites and social networks, for purchasing The strength of a customer's online shopping intention significantly influences their actual shopping behavior, establishing a strong connection between intention and final purchasing actions.
Online shopping in Vietnam is rapidly gaining popularity, making up 15% of Southeast Asia's total online shopping market as of July 12, 2022, just behind Thailand's 16% This growth is evident in the rising number of e-commerce websites, social media platforms, and mobile shopping apps, alongside the success of major e-commerce players like Shopee, Lazada, Tiki, and Sendo.
In 2007, there were approximately 20 million Internet users in the country, representing 24% of the population By January 2023, this figure surged to 77.93 million, or 79.1% of the population The rapid growth of Internet access, coupled with advancements in information technology and the impact of the Covid pandemic, has led consumers to reduce direct shopping in favor of online shopping.
The online shopping market in Vietnam is experiencing stable growth, particularly in e-commerce platforms, despite commercial activities and services facing negative growth.
Theoretical basis
2.3.1 Theory of Reasoned Action (TRA)
The Theory of Reasoned Action (TRA), developed by Martin Fishbein and Icek Ajzen in 1975, is a key framework in social psychology that effectively helps in understanding and predicting human behavior.
It helps researchers and experts identify key factors influencing people's intentions and behaviors, thereby developing strategics and solutions that can positively influence their behavior.
Figure 2.1 TRA Model (Source: Fishbein & Ajzen (1975))
The I'RA model identifies two key factors influencing behavioral intention: attitude and subjective norms A positive attitude towards a behavior significantly increases the likelihood of its performance Additionally, subjective norms, which represent perceived social pressure from influential individuals, can either encourage or discourage specific behaviors When individuals believe that significant others endorse a behavior, it enhances their intention to engage in it, highlighting the importance of social support in shaping actions.
The theory has been successfully applied in various fields such as education, health, management, and marketing, demonstrating its flexibility and strength in explaining and predicting human behavior.
While the Theory of Reasoned Action (TRA) offers valuable insights into human behavior, it has notable limitations Its rigidity stems from the assumption that human actions are primarily driven by intention and attitude, which can hinder its ability to account for unexpected behaviors Additionally, TRA falls short in offering practical solutions for improving intentions and behaviors, serving primarily as a theoretical framework for understanding participant actions.
Although focusing on major influencing factors, TRA may also overlook other important factors contributing to participant behavior.
2.3.2 Theory of Planned Behavior (TPB)
The Theory of Planned Behavior (TPB), developed by Ajzen in 1991, represents a crucial evolution of the Theory of Reasoned Action (TRA), addressing the shortcomings of viewing individual behavior as purely rational.
Figure 2.2 TPB Model (Source: leek Ajzen (1991))
The Theory of Planned Behavior suggests that individuals have a basis and motivation in the decision-making process and make a rational choice among solutions.
An individual's attitude towards a behavior reflects their positive or negative evaluation of it, shaped by their beliefs about the behavior's consequences and how they assess those outcomes.
Subjective norms refer to an individual's perception of the expectations held by their reference group regarding their behavior These norms are shaped by the individual's beliefs about what others expect and their motivation to meet those expectations Understanding subjective norms is crucial for analyzing how social influences affect personal decision-making and behavior.
Perceived behavioral control refers to an individual's belief in their ability to manage their own behavior This concept is influenced by past experiences and personal beliefs regarding their capability to execute specific actions.
The Theory of Planned Behavior (TPB) posits that attitudes towards behavior, subjective norms, and perceived behavioral control significantly influence online shopping intentions and behaviors Attitudes reflect positive or negative evaluations of the shopping process, while TPB allows researchers to identify specific beliefs that impact these attitudes This theory provides a framework for testing the relationship between attitudes, intentions, and actual shopping behaviors Additionally, the beliefs about how significant others perceive online shopping can shape individuals' intentions and their likelihood of repeat purchases Lastly, perceived behavioral control relates to individuals' beliefs about their access to the necessary resources and opportunities to engage in online shopping (Ajzen, 1991).
Understanding customer attitudes and perceptions is essential for effective after-sales service By providing support post-purchase, businesses show they care about customer needs, fostering trust and long-term relationships Enhanced after-sales services lead to increased customer satisfaction and brand loyalty, resulting in repeat purchases and business growth Ultimately, after-sales service offers valuable insights into customer behavior and significantly influences their intention to buy again.
The Theory of Planned Behavior (TPB) has been extensively utilized in information systems research, as evidenced by studies conducted by Mathieson (1991), Taylor and Todd (1995a, b), and Harrison et al (1997) Additionally, both the TPB and the Theory of Reasoned Action (TRA) have served as foundational frameworks for examining online shopping behaviors in various studies, including those by Celik (2008), George (2002), Jarvenpaa and Todd (1997a, b), Khalifa and Limayen (2003), Limayem et al (2000), Pavlou (2002), Suh and Han (2003), Song and Zahedi (2001), and Tan and Teo (2000).
However, the Theory of Planned Behavior (TPB) does have some limitations:
- Demographics and Personality: TPB does not explicitly consider factors such as demographics or personality within its framework.
- Perceived Behavioral Control: While TPB emphasizes perceived behavioral control, there is no clear definition of this construct, making it challenging to measure accurately!.
- Time Factor: The more time that elapses between behavioral intent and actual behavior, the less likely the behavior will occur
To effectively understand consumer behavior and attitudes toward after-sales service in cosmetics, it is crucial to integrate diverse research methods, including interviews, online surveys, and real-life behavior observations This comprehensive approach addresses the limitations of the Theory of Planned Behavior (TPB) and allows for a deeper exploration of a specific group of subjects.
The Expectation-Confirmation Theory (ECT) effectively explains consumer behavior by highlighting the importance of meeting expectations, which can positively influence morale (Spector, 1956) This model has been applied in various studies, such as car repurchases (Oliver, 1993), camcorder repurchases (Spreng et al., 1996), and organizational photography products (Dabholkar et al., 2000) In the business context, ECT illustrates the psychological journey of consumers, starting with the formation of initial expectations prior to purchase As consumers use the product or service, they develop perceptions of its performance, which they then compare to their initial expectations If the performance aligns with their expectations, satisfaction ensues, fostering a willingness to repurchase; conversely, dissatisfaction can lead to a lack of intent to repurchase or discontinuation of use.
The ECT theory highlights that satisfaction is crucial for driving repurchase intentions and ongoing service usage, establishing a strong connection between initial expectations, perceived performance, and consumer satisfaction It illustrates how high expectations can lead to increased satisfaction, while low expectations may result in diminished satisfaction, ultimately influencing consumer loyalty.
The implementation of the ECT model in this research is crucial, particularly in the context of online shopping Customers face distinct challenges as they are unable to physically examine products, relying instead on online images and videos to form their expectations regarding product performance.
After-sales service is essential for businesses to meet and exceed customer expectations, providing peace of mind and enhancing their overall impression Offering flexible returns, reliable warranties, and post-purchase benefits contributes to a positive after-sales experience, fostering customer satisfaction and loyalty The ECT theory underscores the importance of after-sales service in ensuring customers feel satisfied with their online shopping experience, ultimately creating a lasting bond between them and the business.
Research hypothesis
With the rise of online shopping, consumers are increasingly evaluating after-sales service based on return policies rather than solely on personal experiences or recommendations from friends and family A well-defined return policy not only protects consumers but also demonstrates a retailer's commitment to quality products and services Research indicates that a flexible and transparent return policy fosters positive impressions and builds consumer trust, while a restrictive or complicated policy can diminish that trust (Wang, M., et al., 2017; The New York Times).
A recent Harris Poll survey conducted in 2007 revealed that 91% of consumers consider a store's return policy to be a crucial factor in their purchasing decisions, significantly influencing their perception of after-sales service.
From previous studies by Bingjia Shao, Zhendong Cheng, and colleagues
In their 2021 study, Tyagi and Dhingra demonstrated that return policies play a crucial role in shaping customers' perceptions of after-sales service and overall satisfaction They plan to further investigate the connection between return policies and electronic satisfaction, leading to the formulation of a new research hypothesis.
Hl: The return policy has a positive relationship with electronic satisfaction.
After-sales service plays a vital role in fostering long-term customer relationships, as effective support enhances customer satisfaction and trust, ultimately boosting loyalty and driving sales (Saccani, Songini, & Gaiardelli, 2006) Key elements such as installation and delivery significantly influence the customer experience, with assurance of product functionality being paramount (Rigopoulou et al., 2008) A robust warranty policy can address customer concerns, demonstrating that the product will perform reliably (Murthy, Djamaludin & Wilson, 1995) To meet these expectations, organizations must focus on developing high-quality products and offering extended warranty services (Kelley, 1988) Improved warranty terms can instill buyer confidence and lead to increased sales Furthermore, effective compensation for complaints is essential to meet customer expectations Satisfaction arises when customers' perceptions exceed their initial expectations, while dissatisfaction occurs otherwise In cases of service issues, a strong recovery policy, such as a warranty, is crucial to avoid "double defects" and enhance customer satisfaction and loyalty (A Phan).
H Nguyen, T Pham, 2021) Therefore, our research team proposes the hypothesis:
H2: The warranty policy has a positive relationship with electronic satisfaction.2.4.3 Information security policy
The information security policy significantly impacts customer satisfaction, as highlighted by Datta and Acharjec (2018), who identified trust, safety, and personal information security as primary concerns for online shoppers Many consumers fear the misuse of their personal data, and the inability to monitor the safety of their information during online transactions adds to this anxiety (Lee & Turban, 2001) E-commerce sites that prioritize high security for personal and financial information tend to enhance customer satisfaction and preference (Zeithaml et al., 2002) Enhanced security measures not only boost the likelihood of using online shopping services (Vijayasarathy & Jones, 2000) but also improve the quality of information services (Yang & Yun, 2002) and overall consumer satisfaction (Szymanski & Hise, 2000) Youn (2009) underscores the link between information security and privacy, noting the uncertainty consumers face regarding the management of their personal data This challenge is compounded by the difficulty in verifying claims made by shopping websites about product safety and environmental impact (Milne and Culnan, 2004) Thus, we propose the following hypothesis:
H3: The information security policy has a positive relationship with electronic satisfaction.
The delivery service is essential for organizing suppliers' logistics to ensure goods reach customers effectively (Delger et al., 2020) It plays a vital role in the supply chain and significantly impacts customer satisfaction (Hedin, Jonsson, & Ljunggren, 2006) In the realm of online shopping, reliable, safe, and timely delivery is crucial for meeting customer expectations (Ziauliah, Yi, & Akhter, 2014) Satisfied customers are more likely to make repeat purchases, highlighting the importance of offering multiple delivery location options to meet customer demand (Lee, 2016) By providing flexibility in delivery locations, businesses can enhance the shopping experience and facilitate easier future purchases.
Esper et al (2003) identified four key factors influencing service providers' product delivery: delivery time, product condition, customer satisfaction expectations, and service provider reliability Additionally, research by Cho et al (2008) highlights the significance of responsiveness, organization, and accessible contact information Customers increasingly value personal interactions during the delivery process, underscoring the need for well-trained delivery personnel However, the outsourcing of logistics to third parties can diminish control over these critical delivery elements.
Electronic retailers should implement training programs for their contacts to enhance customer interactions and effectively resolve issues like unmet expectations, incorrect deliveries, and reverse logistics challenges The distribution of goods is crucial to the overall customer experience (Graves, 2013) and significantly influences customers' decisions regarding their loyalty and conversion with the retailer Thus, we propose the following hypothesis:
114: The delivery policy has a positive relationship with electronic satisfaction.
Customer interaction, defined as employees' willingness to assist and provide quality service, significantly enhances after-sales service quality (Munusamy et al., 2010) This motivation to resolve customer issues positively influences customer satisfaction, as noted by Saad Andaleeb & Conway (2006) Agility in service—characterized by promptness and readiness to assist without waiting for customer requests—further boosts satisfaction levels Consumers' perceptions of employee responsiveness, including the speed and accuracy of problem resolution, are crucial for enhancing satisfaction (Mahamad & Ramayah, 2010) Additionally, Siddiqi (2011) highlights that customer interaction is vital for service quality and electronic satisfaction Therefore, the proposed hypothesis is that improved customer interaction positively impacts overall satisfaction.
H5: Customer interaction has a positive relationship with electronic satisfaction. 2.4.6 Added benefits
Babin et al (1994) assert that consumers are motivated by economic benefits such as cost savings and financial rewards, which positively influence customer satisfaction and repurchase intentions (Dick & Basu, 1994; Kim et al., 2011) Conversely, Kniveton (2005) highlights the significance of non-economic benefits in fostering emotional and psychological connections between sellers and consumers, ultimately enhancing customer satisfaction and loyalty This indicates that in the realm of online shopping, the additional benefits experienced post-purchase play a crucial role in shaping consumer behavior.
Research indicates that both economic benefits, such as discounts and vouchers, and non-economic benefits, including superior service and special recognition, significantly influence customer satisfaction and shopping behavior (Babin & Walts, 2007; Attaway, 2000; Bridson et al., 2008).
H6: Added benefits have a positive relationship with electronic satisfaction.
Service recovery, as defined by Gronroos (2007), involves actions taken by service providers to address customer complaints and restore trust following service failures By showing commitment to resolving issues, providers can enhance customer trust in service quality and strengthen relationships Online service recovery mirrors offline practices, focusing on responsiveness, communication resolution, and economic compensation for service loss (Parasuraman et al., 2005) To attract more customers and increase profits, online companies are prioritizing the reduction of service failures and the enhancement of online service quality (Zhao et al., 2014) Research indicates that apology and compensation are key strategies in service recovery (Smith et al., 1999; Mattila and Cranage, 2005; Weber and Sparks, 2009) Furthermore, effective recovery measures positively influence customer satisfaction, with factors such as compensation, response speed, and the initiation of the recovery process playing crucial roles (Zhang, 2013).
H7: Service recovery has a positive relationship with electronic satisfaction.
Technology enables consumers to easily compare products and services across businesses, prompting them to switch if quality falls short (Faiz, 2018) To thrive, businesses must meet the demands of the digital landscape and understand consumer priorities An effective e-commerce strategy not only fulfills customer needs but also enhances service quality, boosts operational efficiency, reduces costs, and increases customer satisfaction Our research emphasizes the significance of the "electronic" aspect in "electronic satisfaction" and "electronic loyalty," highlighting the differences between online and traditional shopping experiences Typically, electronic satisfaction is viewed as a vital precursor to electronic loyalty, with online customer satisfaction acting as a key factor influencing perceived electronic loyalty (Anderson and Srinivasan, 2003) Satisfied customers are more likely to continue using services, show a greater intent to repurchase, and recommend products to others compared to their dissatisfied counterparts.
Dissatisfied customers tend to seek alternative options and are less inclined to form strong relationships with retailers Research indicates that customer satisfaction positively influences loyalty, a trend that is particularly pronounced in online settings Shankar, Smith, and Rangaswamy (2003) found that the impact of electronic satisfaction on loyalty surpasses that of traditional retail environments Therefore, we hypothesize that electronic satisfaction significantly drives electronic loyalty.
H8: Electronic satisfaction has a positive relationship with electronic loyalty.
Customer satisfaction plays a crucial role in influencing repurchase decisions, as satisfied customers are more likely to use services frequently, intend to repurchase, and recommend products to others Conversely, unsatisfied customers tend to seek alternatives and avoid forming strong relationships with retailers Research by Ghance et al (2011) indicates that positive experiences with online retailers enhance the likelihood of repeat purchases, while another study highlights that customer satisfaction is essential for fostering purchase intentions To cultivate ongoing customer loyalty, companies must prioritize maintaining strong relationships with their current customers, as satisfying experiences significantly boost repurchase intentions (Chang et al., 2014; Azam et al.).
2012) Therefore, our research team proposes the hypothesis:
H9: Electronic satisfaction has a positive relationship with the repurchase intention.
RESEARCH METHODS AND IMPLEMENTATION
Qualitative research
This article identifies critical knowledge gaps and emphasizes the urgency of the research topic, leading to the proposal of a research model and the construction of a preliminary scale The qualitative research aims to evaluate the suitability of the adjusted scale in comparison to the original, enhance measurement quality by eliminating unsuitable observed variables, and refine the official scale to align with consumer behavior and the specific characteristics of the online cosmetics market in Ho Chi Minh City.
The research team must review existing studies on "after-sales service" to develop an official questionnaire for their quantitative research Additionally, the team has conducted qualitative research building on previous findings to establish a preliminary scale.
Table 3.1 Compilation of proposed scales used in previous research.
1 Warranty policy 6 Muhammad Kashif Javed (2020); Zyad
Thalji (2022); Zhichao Zhang and colleagues (2023)
2 Return policy 5 Amresh Kumar, Bhawna Anjaly (2017)
3 Delivery policy 5 Amresh Kumar Bhawna Anjaly (2017);
ComScore (2014); Liu and colleagues (2008); Hsu (2008)
Acharjee (2018); (Lee & Turban, 2001); (Milne and Culnan, 2004)
6 Added benefits 4 Amresh Kumar, Bhawna Anjaly (2017)
The research team employed a 5-point Likert scale ranging from "Strongly disagree" to "Strongly agree" to gauge responses They further refined the scale by conducting interviews with experts in cosmetics and e-commerce platforms, focusing on those knowledgeable about after-sales service These expert consultations aimed to gather precise information that would help tailor the terms to better align with the target consumers of the quantitative study.
To enhance the preliminary scale, the research team conducted a qualitative survey with a focus group of five experienced online cosmetics shoppers in Ho Chi Minh City This survey utilized original scales from prior studies to explore online shopping intentions, repeat purchase intentions, and the influence of after-sales service on these intentions, as well as the role of electronic satisfaction and loyalty as intermediary variables Participants engaged in discussions to evaluate the questionnaire design, considering factors such as length, clarity, language, and conceptual relevance The insights gained from this qualitative survey were synthesized to inform the development of the questionnaire for subsequent quantitative research.
3.2.3 The results of the scale adjustment
Table 3.2 The results of the scale adjustment
No Encoding Original scale Official scale Source
1 WPl As per my perception, an adequately fair time was taken for product repair by this website
My requests for cosmetic warranty were quickly responded to by the e- commcrcc platform.
2 WP2 As per my perception, the overall procedure of product repair is convenient
I find the cosmetic warranty process of the e commerce platform convenient.
3 WP3 The declared warranty period for the product influences the purchase decision
The warranty period stated on the product influences my purchasing decision.
4 WP4 The platform states the possibility of extending the warranty period, in exchange for a reasonable amount of money
I find the fee that the e commerce platform charges for extending the warranty period reasonable.
5 WP5 The relative trust to the warranty provided by the platform over that by the manufacturer
I trust the warranty provided by the platform more than the manufacturer's warranty.
6 WP6 The warranty fee that the warranty underwriter bears to have the failed product repaired or replaced
I believe that the warranty provider is obligated to cover all warranty costs for repairing or replacing a defective product.
7 RPl My online retailer gives free returns
I do not need to pay a fee when returning cosmetics purchased on the e commerce platform.
8 RP2 It is easy to return to my online retailer
I can easily return the cosmetics I bought to the e-commerce platform.
9 RP3 My online retailer allows me to cancel orders anytime
I can cancel my cosmetics order at any time on the c- commerce platform.
10 RP4 My online retailer provides multiple refund options
I am provided with many refund options when returning cosmetics on the e-commerce platform (cash, bank transfer, etc.).
11 RP5 My online retailer offers order replacement within a specified lime
I can return or exchange cosmetic items within the specified lime on the c- commerce platform.
12 DL1 I can easily track my orders/package during the delivery processes
I can easily track my cosmetic orders/packages during the delivery process.
13 DL2 Companies that supply cosmetic products online allow me to arrange flexible delivery limes
I am supported in arranging flexible delivery limes from e-commerce platforms that provide cosmetic products
14 DL3 I am regularly informed about the delivery progress (email, SMS, )
I am regularly notified about the delivery progress (email, SMS, etc.).
15 DL4 I usually receive my online cosmetic products within the estimated time
I usually receive online cosmetic products within the expected time.
16 DL5 I usually get discounted/free shipping
I often get discounts/free shipping for cosmetic items when shopping online.
(address, phone number, email, ) is guaranteed to be kept confidential.
I am assured of the security and privacy of my personal information (address, phone number, email, etc).
18 IS2 Credit card information and e-wallet information linked to my account after online shopping will be absolutely confidential.
I will be absolutely secure about my credit card information, and electronic wallets linked to my account after shopping for cosmetics online on the e commerce platform.
19 IS3 When there are reports of information leak incidents, customer information security services handle them quickly, professionally, and clearly.
When there are reports of information leakage incidents, the customer information security service handles them quickly, professionally, and transparently.
20 IS4 This c-commcrcc platform protects information about online purchasing behavior
I am assured that the c- commerce platform protects information about online shopping behavior.
21 IS5 Authorization mechanisms of this site make me feel comfortable
I feel comfortable with the authorization mechanism of the e-commerce platform.
22 1C1 My online retailer allows me to interact with live customer representatives
I can interact with online cosmetic retailers on the e commerce platform.
23 IC2 I have any time access to customer service (mail/tclcphonic) of my online retailer
I can access services to contact the cosmetic seller at any time on the c- commerce platform.
24 IC3 My online retailer has toll-free telephone
I am provided with free customer service for customer service buying cosmetics over the phone.
25 1C4 Conflict resolution Time is reasonable for my online retailer
I am assisted by the e commerce platform in resolving my queries about cosmetics in a reasonable time.
26 IC5 My online retailer has an easy conflict resolution process
I receive messages from the seller through the e commerce platform inquiring about my experience using the cosmetics.
27 IB1 My online retailer offers additional discounts on repeat purchases
I am offered additional discounts when I make repeat purchases of cosmetics on the e commerce platform.
( for customers only) from my online retailer
I receive exclusive offers for customers buying cosmetics from the c- commerce platform.
29 1B3 I gel cash back on my purchase from my online retailer
I get a refund when buying cosmetics at the e commerce platform.
30 1B4 My online retailer gives loyalty reward points
1 am awarded extra loyalty points for frequent cosmetic customers when shopping on the e commerce platform.
31 SRI When a sendee failure occurs, the online retailer must first send an apology to me
When a service error occurs, I expect the cosmetics company on the e-commerce platform to first send me an apology.
32 SR2 The online retailer must compensate for any after-sales service incident
The cosmetics company must compensate when there is a problem with the after-sales service on the e- commerce platform.
33 SR3 The online retailer needs to promptly respond to my messages when addressing service issues
The cosmetics company needs to respond to my messages immediately through the e-commerce platform when rectifying a service error.
34 SR4 I believe the online retailer needs to proactively initiate the resolution process when service errors occur
I believe that the cosmetics company on the e commerce platform needs to proactively start the rectification process when a service error occurs.
35 ESI Overall, I am satisfied with the experience of purchasing products from the online store.
In general, I am satisfied with my online cosmetics shopping experience on the e-commerce platform.
36 ES2 I prefer online shopping rather than visiting physical stores for shopping
I prefer buying cosmetics online rather than going to physical stores.
37 ES3 I believe that the attractiveness of online shopping websites plays an important role in making purchase decisions
I believe that the attractiveness of the e commerce platform for online shopping plays a significant role in my decision to buy cosmetics.
38 ES4 I believe that companies selling products online pay great attention to your complaints in case of conflict in described and delivered products
I am satisfied when the cosmetics companies on the e-commerce platform pay attention to my complaints in cases of discrepancies between the product description and the delivered product.
39 ES5 I find it very satisfactory the way online business companies are providing service to make their customers satisfied
I am veiy satisfied with how the e-commerce platforms provide after sales service to satisfy their customers.
Shopping for cosmetics online is a time-saving and convenient alternative to searching through physical stores, allowing for a more efficient purchasing experience.
41 ELI I seldom consider switching another to the internet shopping mall.
I frequently shop for cosmetics on this e commerce platform.
42 EL2 I believe that this is my favorite internet shopping mall.
I believe that this is my favorite e-commerce site to buy cosmetics online.
43 EL3 When I need to purchase, this shopping mall is my best choice.
When I need to buy cosmetics, c-commcrcc is my best choice.
44 RI1 I will continue to purchase products online in the future
I will continue to buy cosmetics on this e commerce platform in the future because of its after sales service.
45 RI2 I will maximize online shopping rather than store shopping in the future
I will prioritize buying cosmetics on the e commerce platform over shopping for cosmetics in physical stores in the future because of its after sales service.
46 RI3 I will recommend or encourage online shopping to others
I will recommend or encourage others to shop for cosmetics because of the after-sales service of the e-commerce platform.
47 RI4 I will definitely buy products from this site again in the near future
I will definitely buy cosmetics on this e commerce platform again in the near future.
48 RI5 It is likely that I will repurchase from this Internet store in the near future.
There is a possibility that I will repurchase cosmetics on this e-commerce platform in the near future.
Quantitative research
The survey targeted students in Ho Chi Minh City aged 18 to 22, a demographic that represents a key consumer group in the cosmetics industry This age range is marked by significant bodily and hormonal changes, such as increased androgen secretion, which often results in oily skin and acne As a result, there is a heightened interest in cosmetics among these young individuals Furthermore, their adaptability to the latest trends and influence from celebrities and media drives their consumer behavior, making them more focused on investing in their appearance.
A well-designed questionnaire is an essential tool for gathering information from diverse individuals, effectively measuring customer opinions, experiences, and behaviors over time To achieve accurate data collection and meaningful results that can be interpreted and generalized, careful consideration must be given to the design of the questionnaire, guided by qualitative research findings.
This section introduces the topic and emphasizes our commitment to ensuring the security of respondent data It defines valid survey participants as students in Ho Chi Minh City who have previously purchased cosmetic products online.
The primary survey section features closed-ended questions designed by the author, utilizing a 5-point Likert scale that ranges from 1 (completely dissatisfied) to 5 (very satisfied) These questions are intended to gather assessments of after-sales service, e-satisfaction, e-loyalty, and repurchase intention.
(3) The section for collecting respondent’s personal information includes questions related to age, gender, average income, and the frequency of online cosmetic product purchases
Researchers Hair et al (2008) state that for Exploratory Factor Analysis (EFA), a minimum sample size of N > 5*x is required, where N represents the sample size and x denotes the number of observed variables Hoàng Trọng and Chu Nguyền Mộng Ngọc (2008) recommend a ratio of 4 or 5 In this study, with 48 observed variables, the minimum sample size needed is calculated to be 240 samples.
To conduct multiple regression analysis effectively, according to authors Tabachnick and Fidell (1996), the minimum required sample size should be N > 8*m +
In this study, the author determined the required sample size using the formula N = 8*m + 50, where N represents the sample size and m denotes the number of independent variables With 7 independent variables in the model, the calculated sample size is N = 8*7 + 50, resulting in a total of 106 samples needed for the analysis.
To ensure accurate analysis and meet the criteria for Exploratory Factor Analysis (EFA) and multiple regression methods, the study aims to collect a sample size of 300 participants, exceeding the minimum requirement of N > 240 This larger sample will enhance the reliability of the findings and provide a 95% confidence level, reflecting the overall population Consequently, the study will prepare 350 questionnaires for distribution to achieve this target.
Data collection utilized a convenient sampling method, which, while offering easy access to subjects and reducing time and costs, presents challenges due to uncertainty regarding sampling errors The survey was executed through two approaches: direct and indirect For the direct method, printed questionnaires were distributed to university students, while the indirect method involved creating an online survey via Google Docs, shared through accessible online platforms such as social media and email.
The research team analyzed survey responses using tables and pie charts to visually represent the feedback related to their study subjects In the descriptive statistics section, the team focused on specific objectives to comprehensively interpret the collected data.
Provide an overall statistical overview of students across Ho Chi Minh City.
Classify the gender groups to identify trends in online cosmetics shopping within each group.
Statistically gather individual information and average spending on online cosmetics shopping for survey participants.
Determine the most preferred e-commerce platforms for online cosmetics shopping among users.
Gain basic insights from survey responses on the "Level of interest," "Level of trust," and "Shopping priority for cosmetics" related to after-sales service.
3.3.4.2 Assessing Reliability of the Scale
According to Hoang Trong and Chu Nguyen Mong Ngoc (2014, page 18),
Cronbach's Alpha coefficient is a statistical measure that assesses the consistency of items within a scale A coefficient ranging from 0.8 to nearly 1 indicates a good scale, while a range of 0.7 to 0.8 suggests the scale is usable Scores above 0.6 may be acceptable, especially for new concepts in research contexts (Nunnally, 1978; Peterson, 1994; Slater, 1995, as cited by Hoang Trong and Chu Nguyen Mong Ngoc, 2008) Conversely, a Cronbach's Alpha of 0.95 or higher signals redundancy among scale variables (Nguyen Dinh Tho, 2011) In this study, the authors selected a scale with a reliability score greater than 0.6.
The total variable correlation coefficient, represented by the chi-square coefficient of "linkage," indicates the relationship between an observed variable and other variables within a factor, highlighting the specific observed variable's contribution to the factor's overall concept value A Corrected item-total correlation coefficient of 0.3 or higher signifies that the variable meets the necessary criteria (Nunnally, 1978; Hoang Trong and Chu Nguyen Mong Ngoc).
An observed variable is deemed standard if it exhibits a correlation with other variables on the scale, achieving a Cronbach’s Alpha coefficient of 0.6 or above, along with a total variable correlation coefficient of 0.3 or higher.
3.3.4.3 Assessing Validity of the Scale
To validate the model, Exploratory Factor Analysis (EFA) is employed as a data reduction and summarization technique (Hoang Trong & Chu Nguyen Mong Ngoc, 2008) Only observed variables that satisfy the Cronbach's Alpha reliability requirement are incorporated into the EFA analysis, which assesses different types of convergence and discriminant values The selection criteria and variables utilized during the EFA process are clearly defined.
(1) Factor loading should not be less than 0.4 (Gerbing and Anderson, 1988), and the difference between factor loading scores within each variable should be greater than 0.3 (Jabnoun and Al-Tamimi, 2003).
The Kaiser-Meyer-Olkin (KMO) coefficient is a key index for evaluating the suitability of factor analysis With a KMO value between 0.5 and 1, it suggests that exploratory factor analysis is appropriate for market data (Hair et al., 2006).
Barlett's Test of Sphericity is a crucial statistical test that determines if variables are correlated within a dataset, with significance indicated by a p-value (Sig.) of less than 0.05 A statistically significant result suggests that the observed variables exhibit correlation, supporting the validity of factor analysis (Hair et al., 2006).
(4) Total Variance Explained coefficient should be 50% or higher, and Eigenvalue coefficient must be greater than 1 to explain the variability of each factor (Gerbing and Anderson, 1988).