Inspecting the relationship among E-Service quality, E-Trust, E-Customer satisfaction and behavioral intentions of online shopping customers in Ho Chi Minh city, Vietnam, 2018

BANKING UNIVERSITY OF HO CHI MINH CITY

VU QUANG HUY

INSPECTING THE RELATIONSHIP AMONG E-SERVICE QUALITY, E￾TRUST, E-CUSTOMER SATISFACTION AND BEHAVIORAL INTENTIONS OF

ONLINE SHOPPING CUSTOMERS IN HO CHI MINH CITY, VIETNAM

GRADUATION THESIS

Major: BUSINESS ADMINISTRATION

Code: 7340101

Ho Chi Minh City, 2018

STATE BANK OF VIETNAM STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

2

BANKING UNIVERSITY OF HO CHI MINH CITY

VU QUANG HUY

INSPECTING THE RELATIONSHIP AMONG E-SERVICE QUALITY, E￾TRUST, E-CUSTOMER SATISFACTION AND BEHAVIORAL INTENTIONS OF

ONLINE SHOPPING CUSTOMERS IN HO CHI MINH CITY, VIETNAM

GRADUATION THESIS

Major: BUSINESS ADMINISTRATION

Code: 7340101

ADVISOR: Ph.D TRAN VAN DAT

Ho Chi Minh City, 2018

3

INSPECTING THE RELATIONSHIP AMONG E-SERVICE QUALITY, E￾TRUST, E-CUSTOMER SATISFACTION AND BEHAVIORAL INTENTIONS OF

ONLINE SHOPPING CUSTOMERS IN HO CHI MINH CITY, VIETNAM

APPROVED BY: Advisor APPROVED BY: Committee

________________________________ ________________________________

Tran Van Dat, Ph.D.

________________________________

________________________________

________________________________

THESIS COMMITTEE

4

ACKNOWLEGEMENT

This thesis is the author's own work, the research results are honest, in which no

previously published content or content done by others except for cited quotes in the

thesis.

During my thesis time, I received lots of supports and encouragements from many

individuals. This thesis would not have been accomplished without those valuable input,

support, counsel, and advice.

First and foremost, I would like to express my deepest acknowledge to my advisor –

PhD. Tran Van Dat – lecturer at Banking University of Ho Chi Minh City – for his

unbelievable and unreserved help, valuable advices and recommendation. Thank for his

effort and wide knowledge to make my topic possible, his recommendations, guidance

and advices are always highly appreciated and greatly contributing to the success of this

thesis.

Next, I would like to express my earnest appreciation to the professors and lecturers

for their guidance during my academic years at Banking University. The knowledge and

skills that I have learned, have assisted me in the completing of this thesis.

Another one I would like to show my sincere gratitude is my brother and friend –

Mr. Nguyen Minh Dung, Master of Business Administration. During my hard times, he

has been contributing great support such as providing useful experiences and willing to

help me in data analysis process, and gave many useful advices without hesitation during

the time of constructing my thesis.

Last but not least, honestly the most supported ones are my family. Words fail me to

express my thankfulness for my parents for their endless love.

To all the above, and so many more, I just simply want to say again “Thank you for

all your encouragement, support, and love”.

5

TABLE OF CONTENTS

ACKNOWLEGEMENT........................................................................................................................ 4

TABLE OF CONTENTS....................................................................................................................... 5

LIST OF FIGURES ............................................................................................................................... 8

LIST OF SHORTENED WORDS....................................................................................................... 10

CHAPTER I: INTRODUCTION .................................................................................................................. 11

1.1. Background........................................................................................................................... 11

1.2. Purpose and Aims of The Study ........................................................................................... 13

1.3. Research Question ................................................................................................................ 13

1.4. Research Subject .................................................................................................................. 13

1.5. Research Design.................................................................................................................... 13

1.6. Significance ........................................................................................................................... 14

1.7. Proposed Thesis Structure.................................................................................................... 14

CHAPTER II: LITERATURE REVIEW.......................................................................................................... 16

2.1. Terms and Definitions .......................................................................................................... 16

2.1.1 E-Service Quality .......................................................................................................... 16

2.1.2 E-Trust .......................................................................................................................... 17

2.1.3 E-Customer Satisfaction ............................................................................................... 20

2.1.4 Behavioral Intentions.................................................................................................... 24

2.2 Conceptual Framework........................................................................................................ 24

2.2.1 Dimensions of E-Service Quality, E-Trust and E-Customer Satisfaction ................... 24

2.2.2 Dimensions of E-Service Quality, E-Customer Satisfaction and

Behavioral Intentions................................................................................................................... 26

2.2.3 Dimensions of E-Service Quality, E-Trust and Behavioral Intention ......................... 28

2.3 Research Issues..................................................................................................................... 29

CHAPTER III: RESEARCH METHOD.......................................................................................................... 31

3.1 Research Context.................................................................................................................. 31

6

3.2 Research Design.................................................................................................................... 31

3.2.1 E-Service Quality Measurement................................................................................... 31

3.2.2 E-Trust Measurement................................................................................................... 36

3.2.3 E-Customer Satisfaction Measurement........................................................................ 37

3.2.4 Behavioral Intentions Measurement ............................................................................ 37

3.2.5 Questionnaire Development.......................................................................................... 37

3.3 Description of Population and Sample ................................................................................. 40

3.4 Research Hypothesis............................................................................................................. 41

3.5 Research Model .................................................................................................................... 41

3.6 Instruments Development .................................................................................................... 42

3.7 Analysis Procedures.............................................................................................................. 42

CHAPTER IV: DATA ANALYSIS ................................................................................................................ 45

4.1 Descriptive Statistics............................................................................................................. 45

4.1.1 E-Service Quality .......................................................................................................... 45

4.1.2 E-Trust .......................................................................................................................... 46

4.1.3 E-Customer Satisfaction ............................................................................................... 47

4.1.4 Behavioral Intentions.................................................................................................... 48

4.2 Reliability Analysis............................................................................................................... 49

4.2.1 E-Service Quality .......................................................................................................... 49

4.2.2 E-Trust .......................................................................................................................... 51

4.2.3 E-Customer Satisfaction ............................................................................................... 52

4.2.4 Behavioral Intentions.................................................................................................... 53

4.3 Exploratory Factor Analysis – EFA..................................................................................... 54

4.4 Confirmatory Factor Analysis – CFA.................................................................................. 58

4.5 Reliability and Validity......................................................................................................... 61

4.6 Structural Equation Modeling – SEM ................................................................................. 67

CHAPTER V: CONCLUSION AND RECOMMENDATION............................................................................ 75

7

5.1 Conclusion............................................................................................................................. 75

5.2 Managerial Implications and Theoretical Contributions.................................................... 78

5.3 Limitations and Recommendation for Future Studies ........................................................ 80

REFERENCE ...................................................................................................................................... 81

APPENDIX .......................................................................................................................................... 93

APPENDIX 1: QUESTIONNAIRE................................................................................................. 93

APPENDIX 2: DATA ANALYSIS RESULT................................................................................ 103

1. Descriptive Statistics .............................................................................................................. 103

1.1. E-Service Quality ............................................................................................................ 103

1.2. E-Trust............................................................................................................................ 103

1.3. E-Customer Satisfaction................................................................................................. 103

1.4. Behavioral Intentions...................................................................................................... 104

2. Reliability Analysis................................................................................................................. 104

2.1. E-Service Quality ............................................................................................................ 104

2.2. E-Trust............................................................................................................................ 105

2.3. E-Customer Satisfaction................................................................................................. 105

2.4. Behavioral Intentions: .................................................................................................... 106

3. Exploratory Factor Analysis.................................................................................................. 107

4. Confirmatory Factor Analysis ............................................................................................... 109

5. Structural Equation Modeling ............................................................................................... 113

8

LIST OF FIGURES

Figure 2-1: Trust level during transaction phases (from Petrovic et al., 2003).................................. 19

Figure 4-2: CFA Result........................................................................................................................ 59

Figure 4-3: Revised Research Model................................................................................................... 61

Figure 4-4: SEM Result ....................................................................................................................... 68

Figure 4-5: Standardized Direct Effect ............................................................................................... 71

Figure 4-6: Standardized Indirect Effect ............................................................................................ 72

Figure 4-7: Total Effect of Research Model ........................................................................................ 74

9

LIST OF TABLES

Table 2-1:Prior studies for determining drivers of e-customer satisfaction (from

Barutçu, Süleyman, 2010).................................................................................................................... 21

Table 3-2:Final Draft Questionnaire ................................................................................................... 38

Table 4-3: Descriptive Statistics of E-Customer Satisfaction ............................................................. 47

Table 4-5: Reliability Statistics of E-Service Quality.......................................................................... 49

Table 4-6: Item-Total Statistics of E-Service Quality ......................................................................... 50

Table 4-7: Reliability Statistics of E-Trust.......................................................................................... 51

Table 4-8: Item-Total Statistics of E-Trust ......................................................................................... 51

Table 4-9: Reliability Statistics of E-Customer Satisfaction............................................................... 52

Table 4-10: Item-Total Statistics of E-Customer Satisfaction ............................................................ 52

Table 4-11: Reliability Statistics of Behavioral Intentions.................................................................. 53

Table 4-12: Item-Total Statistics of Behavioral Intentions................................................................. 53

Table 4-13: Reliability tests result – Cronbach’s Alpha ..................................................................... 54

Table 4-14: KMO and Bartlett's Test of dependents variables .......................................................... 55

Table 4-15: Total Variance Explained................................................................................................. 56

Table 4-16: Pattern Matrix.................................................................................................................. 57

Table 4-17: CFA Result – Standardized Regression Weights............................................................. 60

Table 4-18: Calculated Composite Reliability..................................................................................... 64

Table 4-19: Correlation Between Constructs...................................................................................... 64

Table 4-20: AVE and Squared Correlations between the constructs................................................. 66

Table 4-21: Unstandardized Regression Weight................................................................................. 68

Table 4-22: Standardized Regression Weight ..................................................................................... 69

Table 4-23 Standardized Direct Effect ................................................................................................ 70

Table 4-24: Standardized Indirect Effect............................................................................................ 71

Table 4-25:Standardized Total Effect ................................................................................................. 72

10

LIST OF SHORTENED WORDS

AVE : Average Variance Extracted

BI : Behavioral Intentions

CFA : Confirmatory Factor Analysis

CFI : Comparative Fit Index

ECS : Electronic Customer Satisfaction

ESQ : Electronic Service Quality

ET Electronic Trust

GFI : Goodness of Fit Index

KMO : Kaiser – Meyer – Olkin

MI : Modification Indices

ρc

: Composite Reliability

ρvc : Average Variance Extracted

RMSEA : Root Mean Square Error Approximation

RMSEA : Root Mean Square Error Approximation

SEM : Structural Equation Modeling

TLI : Tucker and Lewis Index

HCMC : Ho Chi Minh City

α : Cronbach’s alpha

: Estimate

11

CHAPTER I: INTRODUCTION

1.1.Background

If we had to choose a single word to describe today’s consumers, “connected” would

surely rise to the top of the list. In fact, with 3.5 billion people using the internet, 7.4

billion mobile-phone subscriptions and 1.79 billion active Facebook users, connected

might not even adequately describe the current marketplace. Increasingly, everything and

everyone is moving online, resulting in the breaking of old habits and establishment of

new ones. The way we shop is no exception. Digital retailing gives consumers more ways

to shop and more access to products and services than ever before. It’s clear that

consumers are embracing the freedom of shopping whenever and wherever they please, as

online sales are capturing a double-digit share of retail dollars in some markets. In China￾the world’s largest e-commerce market-online retail sales accounted for 12.9% of the total

retail purchases in 2015; in South Korea, it was 11.6%. In Great Britain, online accounted

for an average of 12.5% of all retail spending through the first 10 months of 2016, and in

the U.S., e-commerce represented an average 8.1% of total retail sales through the first

three quarters of 2016, a rate that Nielsen projects will grow at a compound annual

growth rate (CAGR) of 12.2% through 2020 (Nielsen Global Connected Commerce

Report, 2017).

Vietnam is home to 92 million people with a total GDP of 194 billion USD. GDP

per capita is currently 2,327 USD and expected to reach 3,105 USD by 2021. The country

is also ranked 164th by the World Bank GDP per capita rankings. There are currently

35.4 million e-Commerce users in Vietnam, with an additional 6.6 million users to be

shopping online by 2021. The average user spends 62 USD online, which will grow to 96

USD by 2021 (WorldBank, OECD, Statista, eShopWorld). These statistics are significant

signs, informing that Vietnam is a hotspot for e-businesses to prospect. Indeed, recently,

there is a trend that foreign companies come and buy companies in Vietnam, in order to

expand their business operation and also set foot in Vietnam market, where is emerging as

a potential market of the area. On April 12th 2016, the China’s giant technology group