THE RELATIONSHIP BETWEEN ONLINE CONVENIENCE, ONLINE
CUSTOMER SATISFACTION, BUYING INTENTION AND ELECTRONIC WORD-OF-MOUTH
Phuong Viet Le-Hoang
Ho Chi Minh City Open University, Vietnam
E-mail: lehoangvietphuong@gmail.com
Submission: 1/19/2020
Revision: 2/11/2020
Accept: 2/20/2020
ABSTRACT
The purpose of
this research aims to explore, measure, and analyze the relationship between
online convenience, online customer satisfaction, buying intention, and
electronic word-of-mouth (E-WOM) of the customers via the Exploratory Factor
Analysis (EFA) and three model regression. To conduct the research, the author
distributed 300 surveyed questionnaires, and the author collected 285 valid
respondents. The results showed that online convenience, which has seven
dimensions about convenience, includes access, search, evaluation,
attentiveness, transaction, possession, post-possession convenience affect
online customer satisfaction. Furthermore, as a result, online customer
satisfaction influences online buying intention and electronic word-of-mouth.
Based on that, the research recommends the necessary solutions to improve the
buying intention and encourage customers to do E-WOM. Besides, this research opens
a new field for further research in Vietnam.
Keywords: Online
convenience; Online customer satisfaction;
buying intention; electronic
word-of-mouth; convenience dimension
1.
INTRODUCTION
The
development of the Internet that has completely changed the lives of people and
the business form small, medium, and large enterprises over the world; besides,
the e-commerce industry was born as the indispensable. The e-commerce industry
covers a wide range of socio-economic activities and brings significant benefits.
Thanks to e-commerce, human life becomes more comfortable, and people can save
time and money because of the flexibility, simplicity, and excellent
applications of e-commerce.
Consumers quickly access and read the sharing of ideas and feelings of other individuals to compare and select the most of their benefits. Consumers can submit comments, ratings, and product reviews on websites, blogs, forums, social networking sites (Facebook, Twitter, Youtube,…). It has led to the creation of a diverse online word of mouth community that has a tremendous impact on businesses, retailers, and wholesalers.
E-commerce is a modern tool to help
businesses penetrate the market better, collect market information quickly and
timely; also, e-commerce helps trade activities take place faster with many
utilities. Enterprises can also provide information about products and services
to potential customers anytime, anywhere, when the customers use the Internet.
It can be seen that e-commerce is overgrowing in many Asian countries,
including Vietnam, it is considered to be born along with the mandatory
development of the digital economy and information society.
Moreover, the expansion of shopping
in many new industries in the online environment is prospective, and it tends
to use e-commerce more in the future. So it is also easy to satisfy customers.
For customers who spend money to use the services, they always consider which
is the best for them. Customer satisfaction is a big question that the business
needs to focus on, so the sellers and e-commerce site owners must identify the
crucial factors that affecting customer satisfaction.
Currently,
Ho Chi Minh City is the most dynamic city in Vietnam, and it has a high income,
a high standard of living, and a high population density. It is required for
e-commerce sites to provide products with good service quality, such as online
convenience when shopping to be able to attract customers to shop online at
their website. It makes a difference and an advantage over competitors.
When
the customers feel satisfied by the online convenience, it will affect the
online purchasing intention and encourage electronic word-of-mouth (E-WOM) of
the customers spreadly. Understanding the essentials and practicality of the
above problem, the author conducted the research “The relationship between
online convenience, online customer satisfaction, buying intention and
electronic word-of-mouth.”
2.
LITERATURE REVIEW
2.1.
Online convenience
Today, online users can easily access
to convenient services and products through the Internet, so they can do online
shopping that meets their needs quickly and easily. The online shopping has
unique advantages. Notably, customers can easily access product information
from various sources. The online form provides a wide variety of products and
services, especially clothing, electronics, toys, and cosmetics. Most of the
e-commerce sites allow customers to rate and review products after purchase, so
the other customers can see the rate and review and decide to buy products or
services.
Researchers indicated that online
shopping brings many benefits such as the convenience of purchase, ease of
product selection, ease of use as well as online shopping process, or delight
of customers when making online transactions. Buyers can receive the benefit
from e-commerce shopping such as the speed, shopping efficiency, lower costs,
and 24-hour service and on-site support (LAW;
HSU, 2006).
Meixian (2015) showed some of the
previous views, and finally acknowledged three significant benefits associated
with online shopping behavior: (1) Price benefits; (2) available benefits; and
(3) recreational benefits. Besides, Tsai and Wu. (2011) recognize that
the perceived of usefulness, the ability to personalize and customize the
product benefits through online group shopping gives many benefits for customer.
2.2.
Electronic Word-Of-Mouth (E-WOM)
Electronic
word-of-mouth is a positive or negative comment created by both old customers,
current customers, and potential customers about a product, a service, a brand,
or a business. Individuals, community groups, or organizations generate these
comments via the Internet (HENNIG-THURAU et al., 2004). Consumers feel that other
consumers perceive the source of information, and electronic word-of-mouth does
not come from companies (GOYETTE et al. 2010).
E-WOM
is an interpersonal communication about online mechanisms. It is an exchange of
non-commercial and informal conversations using internet platforms (GOYETTE et
al., 2010). E-WOM is a collective term that describes the delivery of
information related to goods or services exchanged from buyer to buyer through
the web.
2.3.
The effects of E-WOM
The origin of E-WOM from a consumer is
often unknown, making it difficult to determine the quality of information and
the reliability of the information posted (CHATTERJEE, 2001). E-WOM is scalable, and the
transmission speed is high. The main difference between E-WOM and traditional WOM is
that the effect of traditional WOM is usually limited to a local area. In
contrast, the E-WOM impact can far exceed local communities because consumers
can access reviews anywhere in the world.
Most of the information on the
Internet is presented or displayed in text form, and therefore, the information
will be stored for an indefinite period (PARK; LEE, 2009). E-WOM can measure more easily
than word-of-mouth (LEE et al.,
2008; PARK;
KIM, 2008). E-WOM can be viewed and read by anyone, anytime, and anywhere if
the user has access to the Internet (CHEN;
XIE, 2008). E-WOM is a useful and influential source for consumers when they
need information. (CHATTERJEE, 2001). Thus the effect of E-WOM on the receiver
will be affected by the factors of the communicator (sender of information),
stimulus (message), and characteristics of the recipient.
2.4.
Behavior intention (buying
intention)
Consumer
behavior in the context of online shopping manifests in the actions of
continuing to buy, repurchases, evaluation, and feedback to the seller,
introducing to others when satisfied, and get the information by E-WOM. The
behavior of consumers when buying online is the same as that of traditional
purchases; some of the main differences being the shopping environment and
marketing communications (CHAYAPA et al., 2011).
In the research of Azjen (1991),
Azjen and Fishbein (1975) also mentioned influencing factors including
attitude, buying intent, personal factors, behavioral belief, subject norms,
Control beliefs, and perceived behavioral control. Jayendra and Kim (2012)
proposed a research model of six factors affecting consumers' intention to buy
online: Awareness of ease of use, perceived usefulness (from technology accept
model, DAVIS 1989), financial risk awareness, product risk awareness,
convenience risk perception, after-sales policy.
According to Li and Zhang (2002),
factors that influence online shopping behavior include the external
environment, demographics, personal characteristics. According to Forsythe et al. (2006),
online shopping has advantages such as shopping quickly, no need to visit
the store, quickly find the product that the customer needs. Also, the customer can buy products anywhere.
3.
HYPOTHESES DEVELOPMENT
This
research uses the seven dimensions (access convenience, search convenience,
evaluation convenience, attentiveness convenience, transaction convenience,
possession convenience, post-possession convenience) of online convenience of
Duarte et al. (2018). However, there is a difference between this research and
the research of Duarte et al. (2018). According to Duarte et al. (2018), seven
dimensions affect online convenience, and online convenience affects online
customer satisfaction. The research of the author indicated that seven
dimensions directly affect online customer satisfaction.
Access
convenience is measured by accessibility, and as a result, consumers have easy
access to retailers (BERRY et al., 2002). Convenient access is a profoundly
crucial aspect of local convenience, because if a consumer is unable to access
the retailer, then the consumer will never have a chance to get the products
that they want.
Traditional
retailers can improve access convenience by placing the store in an accessible
location that closes to most consumers (BERRY et al., 2002). In contrast,
online retailers can certainly provide convenient access when the store
location becomes an unimportant factor (ROHM; SWAMINATHAN, 2004), and consumers can
shop online from any location, at any time of day, even consumers can buy seven
days a week.
The
accessibility of websites is considered to be an essential factor for consumers
to realize the convenience of online shopping (KING; LIOU, 2004). Compared to traditional shopping, online
shopping reduces the time spent on transportation/effort to place, time/effort
for parking, and time/effort on parking foot to the store (BHATNAGAR et al., 2000). Convenient access helps retailers
get off to a good start with busy consumers (SEIDERS et al., 2000). By the way,
the author proposes the following hypothesis:
·
H1: Access convenience
has a positive effect on online customer satisfaction.
The Internet search allows retailers
to improve their business relations and build advertising strategies. Through
this tool, consumers can view the product on their computer screens and
visualize how the products can fit their needs. Consumers can also participate
in online discussions with other consumers about the products and services they
seek and compare prices easily.
These types of flexibility (navigation,
selection, and product availability) provide psychological benefits by avoiding
crowds, reducing waiting time, and spending less effort in going to physical
stores (BEAUCHAMP;
PONDER, 2010). It is why convenient search is vital for retailers to improve
their website. Convenience is an intuitive, easy-to-handle, and attractive
design tool to guide customers in decision making. By doing so, retailers are
improving the convenience of searching for speed and ease of use so that
consumers identify and select the products they want to buy online (BEAUCHAMP; PONDER, 2010).
Access convenience reduces the time
and effort required to reach a retailer, while search convenience helps
consumers through the shopping process by assisting them in making their decisions.
Consumers often face a wide range of product classifications and less time to
make decisions. Therefore, online search engines of retailers must be available
to provide full written information about the product. Retailers are more
efficient at enabling customers to search for products. The customer search
process is faster and easier through shopping experience (BERRY et al., 2002).
Therefore, the author wants to propose the following hypothesis:
· H2:
Search
convenience has a positive effect on online customer satisfaction.
Evaluation convenience is related to
the availability of product description details in an easy-to-understand manner
by using various presentation features. For instance, text presentation types,
graphics, and videos, on the company's website (JIANG et al., 2013). The
categories for presenting this product allow consumers to familiarize
themselves with the product and compare it with others.
At the same time, consumers make the
purchase process faster. Besides, in recent years, diverse product categories
and information details are easily accessible with just one click. Therefore,
online shoppers are more sensitive than ever to assess convenience (JIANG et
al., 2013). Accordingly, the author proposes the following hypothesis:
· H3:
Evaluation convenience
has a positive effect on online customer satisfaction.
Luedi (1997), Madu and Madu (2002)
argued that the intense competition in the market of online retail websites
directly exposing the product or service portfolio on the Web is not sufficient
to ensure their existence. Attentiveness convenience refers to the extent to
which online retailers provide personalized services to their customers (JUN et al., 2004).
Although a website is a personal platform
of business that used to retain customers, a company needs to distinguish the
products and services from competitors based on personalized services for
customers (JUN et
al., 2004). Online customers expect customized attention, customizing their needs
and areas for customer questions and discussion. Due to this fact, many online
retailers are providing decision support (i.e., recommendation or shopping
bots, human assistant) to better provide personalized services (BEAUCHAMP; PONDER, 2010). In this
way, this study proposes the following hypothesis:
· H4:
Attentiveness convenience has a
positive effect on online customer satisfaction.
Convenience in transactions is
defined as that consumers can make or modify their transactions quickly and
easily (BEAUCHAMP;
PONDER, 2010).
Customers can buy online products with one-click payments, and easy return
policies will get higher ranking for convenient deals (SEIDERS et al., 2000)
because waiting to pay is an undeniable negative experience (BERRY et al., 2002).
At traditional stores, shoppers
often spend time waiting for the queue to complete a transaction, which can be
suspicious for companies. It leads to a negative impact on overall service
evaluation (KUMAR; KASHYAP, 2018). One of the main
benefits of online shopping is that customers never have to queue (WOLFINBARGER; GILLY, 2001). Online
shoppers are in virtual check-out and payment where they can complete
transactions themselves (DE KERVILER et al., 2016).
The easily complete or modify orders
are crucial. The transaction with inconvenience may prevent a customer from
buying a retailer's product in the near future (BERRY et al., 2002). Concerns
about privacy, the fear of insecure trading, the risk of losing money have been
argued as the most significant inhibitors for online shopping (JAVADI et al.,
2012), and that is why easy, safe, and convenient online payment method is
essential for customers. From the above arguments, the author wants to propose
the following hypothesis:
· H5:
Transaction convenience
has a positive effect on online customer satisfaction.
Possession convenience is the speed
and comfort that the customer can buy the needed products. As a result, to make
the possession convenient for customers, there is crucial when the business
determines the products in stock and delivers the products on time (BEAUCHAMP; PONDER, 2010). According to Jiang et al. (2013), This
aspect involves consumers aware of the time and effort spent to own what they
want.
Customers feel comfortable to shop
online, while customers who shop directly at the store have to bear the burden
of carrying goods at physical stores. Therefore, for heavy-weight goods or lots
of bulk items, customers prefer to buy online rather than traditional goods to
avoid dealing with physical efforts (JIANG et al., 2013). Online buyers must
wait for their orders to be processed and shipped to receive their goods.
The waiting time for order
processing and delivery is a non-monetary cost associated with online shopping
(BEAUCHAMP et al., 2010). One of the primary motivations for purchasing in
stores is the ability to leave the store with the intended product (ALBA et al.
1997; ROHM;
SWAMINATHAN, 2004). Therefore, the author proposes the following hypothesis:
· H6:
Possession convenience has a positive
effect on online customer satisfaction.
The importance of post-possession
convenience (convenience after purchase) has been emphasized in recent years
because of the difficulties consumers have encountered in returning products
purchased over the Internet (SEIDERS et al., 2002). Post-possession convenience
becomes essential after exchanging services and involves consumers realizing
the time and effort spent when re-communicating with a company after purchasing
the intended product (SEIDERS et al., 2002).
Factors determining convenience
after owning a product (also known as post-possession convenience) are
records/reports for consumers who need repair, maintenance, or exchange of
products (BERRY et al., 2002). Sometimes consumers contact the seller because
of an unrecognized error in the initial purchase.
Other reasons for contacting the
retailer also include transaction issues, customer complaints, defective
products or services, and customers changing their minds (SEIDERS et al.,
2007). Post-possession convenience efforts may also influence other factors,
affecting customer purchasing stages (SEIDERS et al., 2002). For example, a
service error may affect evaluation convenience if consumers are provided with
unrealistic information. Access convenience may be concerned if the online
connection fails.
Transaction convenience will be
undervalued if prices are inaccurate or price manipulation leads to a delay in
the buying behavior of consumers (SEIDERS et al., 2002). In general, less time
and effort is needed to deal effectively with a failed service; the higher the
perceived convenience in online transactions (SEIDERS et al., 2002). Therefore,
the hypothesis is as below:
· H7:
Post-Possession convenience has a
positive effect on online customer satisfaction.
Following the model presented by
Zeithaml et al. (1996), intentional behavior can be perceived by means such as
intent to acquire, word-of-mouth, loyalty, complaining, sensitivity behavior,
perceived price level. A high quality of service (as perceived by the customer)
often results in positive behavioral intent.
In contrast, the low quality of the
service tends to result in negative behavioral intention. An experienced
consumer of online shopping will have a significant influence on customers who
intend to buy in the future for online shopping (JAYAWARDHENA et al., 2007).
Therefore, research indicates that the more positive a customer experience is,
the more likely it is that customers are reusing store services.
This
argument is similar to that of Zeithaml et al. (1996), they emphasize that the
intention of behavior is related to a customer who decides to stay or leave a
brand/company. From the comments discussed, it can be understood that
convenience influences consumer satisfaction, and therefore online satisfaction
influences purchasing behavior. Consequently, the hypothesis is as follow:
· H8:
Online customer satisfaction has a positive effect on online buying intention.
Traditional word-of-mouth (WOM) is a
communication method described initially as a means of sharing ideas and
opinions related to the products and services that people purchased (GRUEN, 2006). WOM has been
shown in situations to be more effective than traditional marketing tools and
some types of advertising (KATZ;
LAZARFELD, 1955; ENGEL et al., 1969). However, word-of-mouth has evolved into a
whole new form through modern technology. It is nominated as electronic
word-of-mouth (E-WOM).
Hennig-Thurau et al., (2004) refer to
E-WOM as any positive or negative statements made by potential customers,
previous customers about a product or company. By word-of-mouth is provided to
many people by the information of individuals or groups via the internet. The
significant growth in online social networking has dramatically expanded the
potential impact of electronic word-of-mouth (E-WOM) on consumer purchasing
decisions. The digital platform is composed of blogs, vlogs, discussion forums,
social networking sites, review of sale websites. Indeed, word-of-mouth has
found a new way to assert its value in marketing products in new forms of
electronic communication (GRUEN, 2006).
E-WOM is an online consumer review
that includes analytics and comments created and posted by customers who have
the experience of products. Four factors that affect the E-WOM adoption of the
online customers are the trust of eWOM news source, the quantity of eWOM, the
quality of eWOM, and consumer expertise (LE-HOANG, 2020).
Online shoppers always read reviews and
experiences of other shoppers before they buy products online. Millions of
people have access to an online review, and this is the power of E-WOM (PARK et
al., 2011). In general, consumers find it necessary to know others' opinions
before/while/after making purchasing decisions.
They talk and discuss their purchase
intention with family members and friends on the Internet. The customer awareness of the influence of others such
as family, co-workers or media (LE-HOANG et al., 2019).
Customers who have a pleasant experience or are satisfied with a retailer are
more likely to do positive reviews through E-WOM (DUARTE et al., 2018). As a result, the
customers are most likely to be affected by make decisions because they
interact and communicate with others. (PARK et al., 2011). The hypothesis is as
below:
· H9:
Online customer satisfaction has a positive effect on Electronic Word-Of-Mouth (E-WOM).
Figure 1: Proposed research model of the
author
4.
METHODOLOGY
This
research uses the qualitative research method via group discussions and expert
discussions to build research models, scales, questionnaires, and preliminary
surveys to complete research models before issuing the questionnaire. The
author surveyed the vice-chairman of the Vietnam E-Commerce Association (VECOM), chairman of the Vietnam Marketing
Association (VMA), surveyed three
members of the Executive Committee of VECOM and three members of the Executive
Committee of VMA to complete the group discussion.
Quantitative
research method based on information collected from the online customers who
live in Ho Chi Minh City. Likert scale with five levels, namely strongly
disagree, disagree, neutral, agree, and strongly agree, is used to measure the
impact of factors affecting online customer satisfaction, and this research
uses the convenient sampling method. Hair et al. (2014) pointed out that when
the study uses the Likert scale five levels with the n variables, the study
should ensure a minimum sample size of 5*n=5n. To ensure the quality of the
sample, the author decided to get from 250-300 questionnaires.
In
quantitative research, the author assessed for reliability through Cronbach's
Alpha coefficients, EFA method, and three regression models to find the
relationship between seven convenience dimensions, online customer
satisfaction, buying intention, and electronic word-of-mouth.
The
author conducts an online survey on December 2019 by sending survey
questionnaires to relatives, friends, and colleagues via applications such as
Messenger, Zalo, Email, Facebook for people to do online surveys about the
relationship between online convenience, online customer satisfaction,
intention to buy, and electronic word-of-mouth (E-WOM).
The
author sends the survey link through the four applications mentioned above.
When the author collected all 300 responses, the author closed the survey link
and did not conduct the survey. Fifteen respondents were not valid for a
variety of reasons. Six respondents answered incompletely; while, four
respondents answer all of the questions with strongly disagree. Five responses
are not valid in science.
The
reason is that the component scales are around 2-3 values (Likert level), and
the total scales are 5. Finally, the author obtained the online survey results
with 285 respondents with valid answers and used for conducting Cronbach Alpha,
EFA, and regression.
5.
ANALYSIS AND RESULTS
5.1.
Reliability test: Cronbach’s Alpha
According to Nunnally and Bernstein
(1994), the condition to accepting variables is that Corrected Item - Total Correlation
is equal or greater than 0.3 and Cronbach’s Alpha if item deleted is equal or
greater than 0.7. According to Hair et al. (2014), new studies can accept that
Cronbach’s Alpha if item deleted is equal or greater than 0.6. Therefore, the
remaining items satisfy the condition (see the table 1 below), so this can be used for
analyzing Exploratory Factor.
Table 1: Constructs, corrected item – total correlation
and Cronbach Alpha
Constructs |
Corrected Item – Total
Correlation |
Cronbach’s
Alpha if item deleted |
|
Access
convenience - Cronbach’s Alpha = 0.889 |
|||
AC1 |
The website
operates 24/24, so I can shop whenever I want |
0.790 |
0.835 |
AC2 |
I can order
products wherever I connected the internet |
0.746 |
0.872 |
AC3 |
The website is always accessible |
0.841 |
0.814 |
Search
convenience - Cronbach’s Alpha = 0.855 |
|||
SC1 |
I can quickly go to the links
within site to find the information I am looking for |
0.711 |
0.810 |
SC2 |
I can find what I want without
having to look elsewhere |
0.645 |
0.837 |
SC3 |
The website provides useful
information |
0.712 |
0.809 |
SC4 |
It's easy to get the information
I need to make my purchase decisions |
0.722 |
0.805 |
Evaluation
convenience - Cronbach’s Alpha = 0.826 |
|||
EC1 |
The website provides detailed
product specifications |
0.707 |
0.739 |
EC2 |
The website uses a combination
of content and images in the product information |
0.693 |
0.755 |
EC3 |
The website provides enough
information to identify the various products |
0.658 |
0.784 |
Attentiveness
convenience - Cronbach’s Alpha = 0.811 |
|||
ATC1 |
The website
has given me personal attention |
0.678 |
0.734 |
ATC2 |
The website
has a messaging area for questions and comments of the customer |
0.621 |
0.786 |
ATC3 |
I have
received a personal thank you message via email or other media after I placed
an order from the Website |
0.706 |
0.694 |
Transaction
convenience - Cronbach’s
Alpha = 0.853 |
|||
TC1 |
The payment process is fast |
0.701 |
0.809 |
TC2 |
My purchase was completed easily |
0.689 |
0.814 |
TC3 |
It does not take long to
complete the purchase process at the website |
0.703 |
0.810 |
TC4 |
I feel safe to provide my
personal and private data |
0.684 |
0.817 |
Possession
convenience - Cronbach’s Alpha = 0.831 |
|||
PC1 |
I got exactly what I wanted |
0.715 |
0.761 |
PC2 |
My order was delivered on time |
0.617 |
0.805 |
PC3 |
Products are not damaged on
delivery |
0.642 |
0.794 |
PC4 |
I got all the items that I ordered |
0.662 |
0.785 |
Post-Possession
convenience - Cronbach’s Alpha = 0.840 |
|||
PPC1 |
The website is interested in
exchanging and returning products to retailers |
0.725 |
0.756 |
PPC2 |
The website pays attention to the
timely return and exchange of products |
0.663 |
0.816 |
PPC3 |
The retailer quickly resolves
any post-purchase problems that I encounter |
0.723 |
0.758 |
Online customer
satisfaction - Cronbach’s Alpha = 0.823 |
|||
OCS1 |
Shopping online is an enjoyable
experience |
0.689 |
0.744 |
OCS2 |
I am satisfied with my previous
online shopping experience |
0.731 |
0.702 |
OCS3 |
I am delighted when doing the
transaction on the website |
0.616 |
0.817 |
Buying intention -
Cronbach’s Alpha = 0.787 |
|||
BI1 |
I will continue shopping online at
this website |
0.593 |
0.747 |
BI2 |
I encourage others to shop
online at this website |
0.686 |
0.646 |
BI3 |
I will use this website more
often to make online purchases |
0.603 |
0.737 |
Electronic
Word-Of-Mouth - Cronbach’s Alpha = 0.808 |
|||
EW1 |
I always share my knowledge and
information on online sales websites |
0.629 |
0.767 |
EW2 |
I always read online consumer
reviews when I do online shopping |
0.689 |
0.706 |
EW3 |
I recommend people to buy
products online from the website where I usually buy them |
0.654 |
0.739 |
5.2.
Exploratory Factor Analysis (EFA)
Exploratory Factor Analysis (EFA)
is an analytical technique which is aimed to reduce data, so it is beneficial
for identifying variables by group. In the exploratory factor analysis, the author
used Principal Component Analysis and Varimax rotation to group the components.
5.2.1. Independent variables
The results
show that KMO is 0.786 and can make sure the requirement 0.5<KMO<1. Bartlett
is 3844.04 with sig = 0.00 (very small), so all of the variables are correlated
together in each component. Total variance explained equals 74.713%, and it is
greater than 50%; as a result, it can meet the requirement of variance
explained. From this one, this research can conclude that variables can explain
74.713% in changing factors. Also, eigenvalue value equals 1.369 >1, and it
is the fluctuation that can explain for each factor, so the extracted factors
have a significant summarize in the best way. The rotated matrix in EFA show
that the loading factor is higher than 0.55, and it can divide into seven
components by the following table:
Table 2: Rotated matrix
Concepts |
Items |
|
Component |
|||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
||
Transaction convenience |
TC1 |
0.841 |
|
|
|
|
|
|
TC3 |
0.797 |
|
|
|
|
|
|
|
TC2 |
0.761 |
|
|
|
|
|
|
|
TC4 |
0.750 |
|
|
|
|
|
|
|
Search convenience |
SC1 |
|
0.837 |
|
|
|
|
|
SC2 |
|
0.799 |
|
|
|
|
|
|
SC4 |
|
0.795 |
|
|
|
|
|
|
SC3 |
|
0.787 |
|
|
|
|
|
|
Possession convenience |
PC1 |
|
|
0.876 |
|
|
|
|
PC4 |
|
|
0.785 |
|
|
|
|
|
PC3 |
|
|
0.782 |
|
|
|
|
|
PC2 |
|
|
0.770 |
|
|
|
|
|
Access convenience |
AC3 |
|
|
|
0.875 |
|
|
|
AC2 |
|
|
|
0.873 |
|
|
|
|
AC1 |
|
|
|
0.846 |
|
|
|
|
Post-Possession convenience |
PPC1 |
|
|
|
|
0.882 |
|
|
PPC3 |
|
|
|
|
0.876 |
|
|
|
PPP2 |
|
|
|
|
0.778 |
|
|
|
Evaluation convenience |
EC2 |
|
|
|
|
|
0.825 |
|
EC1 |
|
|
|
|
|
0.798 |
|
|
EC3 |
|
|
|
|
|
0.775 |
|
|
Attentiveness
convenience |
ATC1 |
|
|
|
|
|
|
0.848 |
ATC3 |
|
|
|
|
|
|
0.790 |
|
ATC2 |
|
|
|
|
|
|
0.759 |
|
KMO |
|
0.786 (sig.=0.000) |
||||||
Bartlett's |
|
3844.04 |
||||||
Eigenvalues |
6.034 |
3.170 |
2.313 |
1.973 |
1.671 |
1.401 |
1.369 |
|
Total Variance Explained |
25.142 |
38.350 |
47.986 |
56.208 |
63.172 |
69.010 |
74.713 |
5.2.2. Dependent variable:
The results
show that KMO of OCS, BI, and EW is respectively 0.701, 0.689, 0.710, and can
make sure the requirement 0.5<KMO<1. Bartlett of OCS, BI, and EW are
respectively 321.42, 253.20, 283.73 with sig = 0.00 (very small and so
sig<0.05), all of the variables are correlation together in each component.
Total variance explained of OCS, BI, and EW respectively equals 73.97%, 70.18%,
72.43%, and it is greater than 50%; as a result, it can meet the requirement of
variance explained. Besides, eigenvalues of OCS, BI, and EW respectively equal
2.219, 2.105, 2.173, and they are higher than 1. It is the fluctuation that can
explain each factor, so the extracted factors have a significant summarize in
the best way. Finally, all of the variables have a loading factor that is
greater than 0.55 and meet the requirement.
Table 3: Dependent variable, and testing
Criteria |
Online customer satisfaction |
Buying intention |
Electronic Word-Of-Mouth |
|||
OCS1 |
0.869 |
BI1 |
0.816 |
EW1 |
0.833 |
|
OCS2 |
0.891 |
BI2 |
0.874 |
EW2 |
0.870 |
|
OCS3 |
0.819 |
BI4 |
0.823 |
EW3 |
0.850 |
|
KMO |
0.701 (sig=0.000) |
0.689 (sig=0.000) |
0.710 (sig=0.000) |
|||
Bartlett's |
321.42 |
253.20 |
283.73 |
|||
Eigenvalues |
2.219 |
2.105 |
2.173 |
|||
Total
Variance Explained |
73.97 % |
70.18 % |
72.43 % |
|||
Cronbach’s
Alpha |
0.823 |
0.787 |
0.808 |
5.3.
Three regression model
From the EFA
results, the author does compute the mean value of online customer
satisfaction, buying intention, E-WOM, and seven dimensions of online convenience
(access convenience, search convenience, evaluation convenience, attentiveness
convenience, transaction convenience, possession convenience, post-possession
convenience. Whereas:
AC: Access convenience (AC1, AC2, AC3)
SC: Search convenience (SC1, SC2, SC3, SC4)
EC: Evaluation convenience (EC1, EC2, EC3)
ATC: Attentiveness convenience (ATC1, ATC2, ATC3)
TC: Transaction convenience (TC1, TC2, TC3, TC4)
PC: Possession convenience (PC1, PC2, PC3, PC4)
PPC: Post-possession convenience (PPC1, PPC2, PPC3)
OCS: Online customer satisfaction (OCS1, OCS2, OCS3)
BI: Buying intention (BI1, BI2, BI3)
OW: Electronic word-of-mouth (OW1, OW2, OW3)
The following formula can describe the regression model 1 in this research:
OCS = β01 + β1*TC + β2*SC + β3*PC + β4*AC +
β5*PPC + β6*EC + β7*ATC
Then, the author computes the predicted value of OCS (OCSP) and the
predicted value of OCS equals the actual value of OCS minus the error term.
So the regression model 2 is:
BI = β02 + β8*OCSP
Furthermore, the regression model 3 is:
EW = β03 + β9*OCSP
Table 4: Regression results (three model)
Model |
Unstandardized Coefficients |
Standardized Coefficients |
t |
Sig. |
Collinearity |
|||
Beta |
Sd. Error |
Beta |
Tolerance |
VIF |
||||
1 |
(Constant) |
-0.553 |
0.232 |
|
-2.38 |
0.018 |
|
|
TC |
0.102 |
0.035 |
0.126 |
2.89 |
0.004 |
0.700 |
1.43 |
|
SC |
0.242 |
0.036 |
6.66 |
0.000 |
0.805 |
1.24 |
||
PC |
0.101 |
0.034 |
0.111 |
2.95 |
0.003 |
0.911 |
1.10 |
|
AC |
0.273 |
0.031 |
0.359 |
8.91 |
0.000 |
0.800 |
1.25 |
|
PPC |
0.095 |
0.037 |
0.099 |
2.59 |
0.010 |
0.892 |
1.12 |
|
EC |
0.204 |
0.049 |
0.179 |
4.15 |
0.000 |
0.705 |
1.42 |
|
ATC |
0.148 |
0.037 |
0.171 |
4.03 |
0.000 |
0.726 |
1.38 |
|
Dependent variable: Online customer safisfaction
(OCS) R2=0.639, Adjusted R2=0.630, Sig.=0.000 |
||||||||
2 |
(Constant) |
0.194 |
0.200 |
|
0.97 |
0.334 |
|
|
OCSP |
0.594 |
0.049 |
0.757 |
19.48 |
0.000 |
1.00 |
1.00 |
|
Dependent variable: Buying
intention (BI) R2=0.573, Adjusted R2=0.571, Sig.=0.000 |
||||||||
3 |
(Constant) |
0.335 |
0.239 |
|
1.40 |
0.162 |
|
|
OCSP |
0.901 |
0.059 |
0.672 |
15.26 |
0.000 |
1.00 |
1.00 |
|
Dependent variable:
Electronic Word-Of-Mouth (E-WOM) R2=0.451, Adjusted R2=0.450, Sig.=0.000 |
From the results of the regression model 1 show that the
sig of all seven dimensions of convenience such as access convenience, search
convenience, evaluation convenience, attentiveness convenience, transaction convenience,
possession convenience, and post-possession convenience have a significant
statistic because the sig of them equals 0.00 (very small). As a result, these
variables affect online customer satisfaction.
R2
value is 0.639, and it means that 63.90% of the satisfaction of online
customers is from seven factors, and 36.10% of that is from the factors which
are outside of the model. The sig value is 0.000, and it is less than 0.05, so
the research model is fit, and the variables which use in the model have a
significant statistic. What is more, variance inflation factors (VIF) are too
small, and these point out that there is no multicollinearity in this model, so
all of the independent variables do not correlate together.
The multiple
regression model 1 by unstandardized coefficients can be identified:
OCS = -0.553 +
0.102*TC + 0.242*SC + 0.101*PC + 0.273*AC + 0.095*PPC + 0.204*EC + 0.148*AAC
The multiple
regression model 1 by standardized coefficients can be identified:
OCS = 0.126*TC
+ 0.268*SC + 0.111*PC + 0.359*AC + 0.099*PPC + 0.179*EC + 0.171*AAC
The results of
the regression model 2 and 3 show that the OCSP (online customer satisfaction
predicted value) affect buying intention and E-WOM. Because the model 2 and 3 meet
all of the requirements of regression model, the multiple regression model 1
and 2 by unstandardized coefficients can be identified:
BI =
0.757*OCSP
EW =
0.672*OCSP
6.
CONCLUSION
6.1.
Access convenience
The access convenience has the most
substantial impact on customer satisfaction when shopping online (standardized
beta = 0.359). It is the factor that e-commerce sites need to focus on creating
solutions to improve convenient access for the website. From there, businesses can attract
and receive customer satisfaction reviews.
The e-commerce websites must fully
meet the following factors: page load speed, standard website design (with
Search Engine Optimization - SEO), valuable content, website compatible on all
mobile devices: PC, smartphone, tablet. Besides, the website must ensure uptime
throughout the day to create convenience for customers when they need to access
shopping. Keeping the online shop running will create favorable conditions for
customers to have flexible shopping time when needed. Moreover, the website
must ensure stability, network security so that the website is always in good
working condition, and customers can access it at any time without any problem.
6.2.
Search convenience
Search convenience is the second
most influential factor in online customer satisfaction (standardized beta =
0.268). Putting an e-commerce site on the top of search engines is a must, but
optimizing the search engine on the website to make it convenient for customers
is a more important job. There will be no massive amount of traffic every day
if the website is too confusing, too difficult for customers to manipulate and
find the products. Some solutions are more straightforward with ways to
optimize search for an e-commerce website.
The navigation bar and filters: According
to usability studies, it shows that the user's eyes naturally look from left to
right, so place the navigation bar on the left; and add space for details on
the left side of the screen. From there, customers can choose to expand the
navigation bar into a drop-down box displaying subcategories. When users have
followed the navigation, they will be taken to a page full of products. Website
owners need to provide filter options that allow customers to quickly see their
products - by price, color, material, most recently.
In addition to providing products
with colorful, high-resolution images, remember to add unique, compelling
descriptions. That will not only attract shoppers to click on the main product
page more, but Google is also more likely to prioritize a unique product
description over non-original content. Website owners make cross-links between
product pages and categories. That way, shoppers will easily find related
products, all of which make them spend more time on the e-commerce site and reduce
bounce rates. Cross-linking is one of the most effective search methods for
e-commerce customers, especially those browsing without having a clear purchase
intent in mind.
Optimize the search box on the web:
The search box can help to target customers when the e-commerce site has a
large number of product pages. Depending on the effectiveness of this tool, the
search will take shoppers to the full page of the corresponding product.
However, the site should still entice users into the "task" of
exploring the site. Consider using floating sidebars with the most popular
products or categories that follow shoppers during a search or feed for sales,
such as a social shopping page of Fab.com. E-commerce websites should always be
changing with featured products, sales, and content selection, so that online
loyalty customers are more tempted to discover.
Create a natural search: Mention
about the homepage, Google will crawl the data on the website with the most
SEO, usually the homepage. Therefore, the pages that the website links to the
homepage should be the most important. These pages may not necessarily reflect
the navigation bar categories of the e-commerce website. It should be indexed
for all the main pages, catalog pages, and even specific product pages of an
e-commerce website. Use Google Webmaster Tools and Webmaster Central to learn
how to effectively index pages, then track what users search and find in
e-commerce pages.
Making optimizing search better: It
is necessary to attach strategic keywords (including long keywords) to
e-commerce websites. Use Google's free and paid keyword tool to estimate
website traffic that can be expected from particular words and keyword phrases.
6.3.
Evaluation convenience
Evaluation convenience is the third
most strong factor that affects online customer satisfaction (standardized beta
= 0.179). Customers always want to make their comments, opinions, and reviews
when they do online shopping at e-commerce sites. Therefore, in order to meet
the needs as well as create interest and confidence for customers, e-commerce
sites need to provide forms for customers to make reviews on the website
itself.
Save customer comments: Positive and
negative feedback from customers will be the most apparent evidence for the
quality of e-commerce products. When buying online, customers often read
reviews and product reviews to decide whether to buy or not. The website should
publicize the compliments and criticism of customers right on the website to
improve the trustworthiness and publicity of the website.
The website needs to provide
detailed specifications of the products that the e-commerce business website
sells. Include content and images in product information to create a convenient
assessment for customers when shopping. Help customers understand the product
information to buy. The e-commerce site also provides enough information to
identify various products.
6.4.
Attentiveness convenience
Attentiveness convenience is the fourth most effective
factor for online customer satisfaction (standardized beta = 0.171). One of the
biggest problems customers that buy and sell online products is the thoughtful
convenience of e-commerce sites. E-commerce websites need to include features
like product catalog management.
The website has a messaging area for customer questions
and opinions. E-commerce sites may have to solve all customer complaints
quickly and promptly. So the website needs to have software to manage and take
care of customers. The storage of information and customer buying behavior is
the basis for the website to devise effective marketing strategies. Also,
e-commerce websites need add-ons that support multilingual support.
E-commerce sites need to have customer care service to
take care of the customer before and after shopping at the site. The customer
care service will take action to send personal notices with thanks via email or
various media when customers shop at the website and update the status of the
shipping process to customers.
6.5.
Transaction convenience
Transaction convenience is the fifth
influence factor that affecting online customer satisfaction (standardized beta
= 0.126). Nowadays, more and more e-commerce sites are competing with each
other, so solutions to make a difference, usefulness, convenience in sales
stages are focused on improving websites to attract customers and create a
competitive advantage. One of the advantages that e-commerce sites need to pay
attention to is building deals.
The payment process must be fast.
The website needs to program the specific steps and simplify as much as
possible so that the payment process between customers and the website takes
place quickly. After adding products to the shopping cart, customers are
required to confirm orders and proceed with the prepayment process via
electronic card service or pay cash on delivery. The payment process takes
place quickly and simply without bringing discomfort or hassle to customers
shopping at the site.
Diversified payment methods: In
order to create convenience for customers when paying for shopping expenses,
the website needs to offer different forms of payment, ensuring flexibility and
convenience for customers as usual via e-wallet, bank card linking with
personal accounts, pay in cash after receiving goods.
The business must ensure the
security of personal data information for customers. For payment and delivery
to take place, customers are required to provide personal information such as
contact phone number, address, gender, year of birth. Providing personal information
is not simple and sometimes uncomfortable for the majority of customers. In
order to create peace of mind, trust customers when providing personal
information, e-commerce sites need to ensure the confidentiality and privacy of
customer information.
6.6.
Possession convenience
Convenience ownership is the sixth
most influential factor that affects online customer satisfaction (standardized
beta = 0.111). In order to improve the convenience of e-commerce sites,
businesses need to do some solutions related to accuracy and delivery time.
Business needs to guarantee absolute
accuracy for what customers order. E-commerce sites need to make sure that the
delivery of products is the right product that customers shop on the site.
Create customer satisfaction and customer confidence in the site. Delivery of
the right products to customers will decrease time, costs, and workforce for
the return process when the delivered products are wrong compared to the
customer's orders.
Delivery time needs to be on time.
Compared to shopping directly at the store or supermarket, customers can also
receive their products with fast and timely delivery time without having to
spend too much time moving. Also, to ensure the speed of delivery to customers,
the site requires a large delivery force, understanding the transport process
is an advantage to be able to deliver goods to customers in the fastest way.
6.7.
Post-possession convenience
Convenience after purchase
(post-possession convenience) is the weakest factor affecting customer satisfaction
when shopping online (standardized beta = 0.099). Compared to other impact
factors, post-possession convenience needs durable solutions to increase the
impact on the customer satisfaction process.
E-commerce websites must have a
process for exchanging and returning products from buyers to retailers. In case
the delivery is not the same as the original product ordered by the customer,
the process of exchanging and returning the product to the retailer will be
interested and done by customers. Therefore, it is necessary to specify the
time to exchange and return, the form of shipping order for the exchange and
return process, the method of contacting the retailer, the shipping and
conversion costs that customers need to make to exchange and return products to
retailers quickly.
There is an interaction of retailers
on e-commerce websites: Problems around products that customers do not
understand can contact the retailer directly for answers and problem-solving
process. The customer's process is carried out quickly and promptly, ensuring
the shortening time for answering customers. The method to contact the retailer
for distribution of products that customers order on the website is also
clearly displayed, such as phone number, address, the manager.
6.8.
Buying intention and Electronic
Word-Of-Mouth (E-WOM)
Through the experience of online convenience, customers
will feel satisfied. From there, customers will continue to shop online at that
website. Besides, customer satisfaction will lead to customers using this
website more often to make online purchases. Therefore, online customer
satisfaction from online convenience (access convenience, search convenience,
evaluation convenience, attentiveness convenience, transaction convenience,
possession convenience, and post-possession convenience) is essential.
From
online customer satisfaction, customers tend to perform electronic
word-of-mouth. Customers share knowledge and information on online sales
websites. Also, for other customers, they will read online consumer reviews of
the old customers when they do online shopping. Finally, businesses will also
receive more benefits and sell more when online loyalty customers recommend
people to buy products online from the website where the online loyalty
customers usually buy them.
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