MPRA Paper 115976
MPRA Paper 115976
12 January 2023
Online at https://mpra.ub.uni-muenchen.de/115976/
MPRA Paper No. 115976, posted 13 Jan 2023 08:08 UTC
Sustainable E-commerce Logistics for Customer
Satisfaction: Evidence from Vietnam
Abstract
Recent technical development, globalization, and the COVID-19 pandemic have all contributed to
an increase in the number of e-commerce logistics activities. However, there has been little
investigation on the quality of e-commerce logistics services. This study fills this gap in the existing
literature with the evidence from an emerging market like Vietnam, especially in Binh Duong
province. It aims to identify the service quality factors of the e-commerce logistics that affect
customer satisfaction, such as quality of information, quality of order, delivery quality, price of
delivery, and customer service. Results find that: i) customer service has the greatest impact on
customer satisfaction; ii) the quality of the order, the quality of the information, and the quality of
the delivery come after, respectively; and iii) price of delivery is the final component that has the
least impact. Our findings provide useful evidence for businesses in the e-commerce industry in
satisfying their customer experiences.
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1. Introduction
In recent years, some keywords that come to every person's mind when talking about social
phenomena would be sustainability and online shopping. An obvious fact that we all have to accept
is that sustainable development is indispensable in the human race. Global sustainability defines
the conditions under which humans and nature, societies and the biosphere, the world and the Earth
can co-exist in ways that enable productive harmony, stability and resilience to support present
and future generations. In logistics, we consider the environmental and human impact of their
products' journey through the supply chain by lowering the ecological footprint of their tasks, such
as CO2 emissions, noise pollution, and accidents (Luther, 2021).
Through nearly 2 years of COVID-19, online shopping is growing rapidly. Before COVID-
19 happened, we could all see the potential of online shopping. However, thanks to the long time
at home, people from all over the country, all ages, and all walks of life have had to get used to
buying online. With about 49.3 million people participating in online shopping, Vietnam is the
country with the highest percentage of people shopping for e-commerce in Southeast Asia. Besides
that, according to the E-commerce Industry Overview report with the theme "E-commerce in 2021:
Adapting and quickly overcoming obstacles from COVID-19" released by Lazada Vietnam in
collaboration with experts, 58% of Vietnamese consumers said they would continue to shop for
groceries on e-commerce platforms (Thien, 2021).
E-commerce and logistics are inseparable because online purchases must be delivered by
road, rail, river, or air. Online retailers and home shopping channels, in addition to the logistics
business, increase traffic and have an impact on customer convenience and reliability (and price).
Shopping is already associated with logistical and storage issues. The importance of e-commerce,
on the other hand, resides in stakeholders' awareness of duties that extend beyond the products and
the business. For instance, CO2 reduction is linked to sustainable logistics.
Following the research of Yang et al. (2017), they examined the main perspectives found
in research on sustainable retailing in the fashion industry. They found that the most prominent
topics in the field are: sustainable retailing in disposable fashion, fast fashion, slow fashion, green
branding, and eco-labeling; retailing of secondhand fashion; reverse logistics in fashion retailing;
and emerging retailing opportunities in e-commerce. This finding implies that research on
sustainable retailing in the fashion industry in developing markets is lacking.
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To sum up, the issues of sustainable development and online shopping have been and will
be of interest to many people. Therefore, in the long term, the research for this phenomenon will
help those who are investigating and working in the field of logistics to be able to predict and have
a better understanding of its relationship. In other words, this study investigates the impact of
logistic services from online malls in Binh Duong on customer’s satisfaction levels.
Online shopping malls differ from offline shopping malls in that they are electronic retail
markets that provide e-commerce to individual customers and businesses. Online shopping malls
are websites that provide a multi-vendor checkout system, allowing shops to sell in one portal
while allowing customers to pay with one credit card transaction. Affiliate Links are used by
several online malls to connect shoppers to different stores. These sites do not process payments
themselves, but they do collect minor commissions for things sold through links from their online
malls to participating stores. According to Hasa (2020), the fundamental difference between
online and traditional shopping is that internet shopping is more convenient because you can shop
whenever and wherever you want, but traditional shopping can be time-consuming but allows you
to see and touch the things you're buying. Online shopping is also called electronic shopping, home
shopping or virtual shopping. Therefore, this paper uses the term “online shopping malls” to define
the e-commerce environment.
Online shopping malls can be classified according to their role, since they can serve as
either comprehensive or specialized shopping malls, depending on the products and services they
offer. Following Leanne et al, they categorized them further into comprehensive (multiple type)
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and specialized shopping malls (single type), according to the range of product categories they
represent.
The number of Internet users in Vietnam is growing, and most people are now familiar
with the Internet. Each year, the advantages of the Internet are driving customers to consider online
shopping. According to Anderson and Srinivasan, the early stages of the Internet revealed
problems with the security of private information as well as general reservations about online
shopping. These have since been resolved, and the upward trajectory of online shopping continues.
In the first half of 2021, nearly 4.5 million new online consumers came from suburban areas,
accounting for 55% of the country's total of 8 million new online consumers.
In addition, those five independent variable factors also indicate the sustainable by
providing the improving in the e-commerce. To be more specific, Oláh et al (2019) stated that as
businesses generate economic value and prevent labor unrest, a sustainable e-commerce
environment has more advantages for online businesses as well as for policy-making and
environmental protection.
To sum up, there is a strong relationship between the rapid growth of online shopping and
the number of customers using the internet for shopping.
About the relationship between the quality of logistics service and online shopping, John
T. Mentzer and his colleagues have provided four main factors: quality of the order, quality of
delivery, customer service, and the delivery price. Furthermore, according to McDougall and
Levesque, they provide the elements in logistics service: quality of employees, the accuracy of the
delivery service, the punctuality of delivery, customer service, and the condition of the delivered
product have a significant impact on the customer satisfaction.
Hafez et al. (2021), after conducting a study for E-shoppers in Egypt, have concluded that
information quality, product quality, delivery service, product condition, customer service and
reverse logistics are factors that affect the customer satisfaction. They found that information
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quality, product quality, product condition and reverse logistics are the most significant variables
related to customer satisfaction.
Andrejić (2012) concluded that the reliability, responsiveness, competence, empathy, and
tangibility has an impact on not only logistic quality but also the customer satisfaction and loyalty.
Furthermore, it is necessary to simultaneously observe the impact of other variables, such as:
prices, competition, relations toward customers, changing provider costs and others.
Based on this theoretical background, scientists in this field commonly propose that the
main aspects influence logistics service quality: order cycle, product availability, order size
constraints, ordering process convenience, order detail, delivered product condition, and return
policy. As a result, by adding information quality and delivery price to the criteria previously
discovered by academic research, this study establishes the determinants of logistics service
quality.
In the subject of consumer behavior, customer satisfaction is one of the most studied
concepts. Consumer satisfaction is a parameter and a result variable in several research.
Following Lin (2003) Customer satisfaction as in the work by Lin is defined as the positive
(pleasure) or negative (disappointment) feelings of an individual as the result of comparing
perceived performance and expectations of a product or services. When a comparison is based on
real perceived performance of a product, she also pointed out that customer pleasure is the result
of cognitive and effective evaluation. Customers will not be satisfied if the perceived performance
of a product or service fails to fulfill, but they will be pleased and satisfied if the perceived
performance of a product or service exceeds expectations.
Hernon et al. (1998) defined that customer satisfaction is transaction specific, is a more
short-term measure, and focuses on personal, emotional reaction to service. Satisfaction, as Mary
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Jo Bitner and Amy R. Hubbert proposes, consists of service encounter satisfaction, “the
consumer’s dis/satisfaction with a discrete service encounter,” and overall service satisfaction, “the
consumer’s overall disl satisfaction with the organization based on all encounters and experiences
with that particular organization.”
Liu et al. (2008), empirically demonstrated that elements in logistics service quality have
a statistically significant impact on repeat purchasing behavior and customer referrals, and that
they have a significant impact on customer satisfaction.
To sum up, this paper defines customer satisfaction as a customer’s judgment of their online
shopping experience for a product or service.
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H1: The quality of information has a positive influence on customer satisfaction.
"Delivery Quality" is a term used to describe the extent to which services meet the
customer’s needs. Customers often define quality by the level of service they receive, the cost, and
their overall satisfaction (Russel, 2021). Following Kempny (2001), it is an ability or capacity to
satisfy the requirements and expectations of customers, mainly as to the time and place of the
ordered supplies, using all available forms of logistics activity, including transportation,
warehousing, inventory management, information, and packaging. Ficón (2001) also mentions that
it is a collection of all activity on the level of management and executive level, related to the
preparation for the adoption and implementation of the customer’s order, contacting the customer
and information service, or delivery of the product to the customer. To sum up, all of these factors
are intended to be perceived by customers as creating value for them and affecting their satisfaction
(Kułyk et al, 2017). Consequently, the second hypothesis will be stated in this research as below:
Order quality is the extent to which the customer has ordered products that match the
machine or purchase order details. To do this, we need to ensure a high level of order accuracy.
Callarman (2020) defined order accuracy as the percentage of all ecommerce orders that are
fulfilled and shipped to their final destination without error, such as a mis-pick of an item or an
incorrect unit quantity. A high order accuracy means that your customers almost always receive
the exact items they ordered in the proper condition. Besides that, the quality of order can increase
or decrease customer satisfaction depending on the fulfillment of certain demands and
expectations, such as the operation of a purchased product, whether it matches the intended use,
or if the customer’s expectations are met. Therefore, this paper will formulate the third hypothesis
that supposes a direct relationship between quality of order and customer satisfaction:
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Price of Delivery can also be called as shipping fee or delivery fee, is important in online
retail for consumers and sellers (Qiang, 2019). Following Hernandez et al, they claimed with
various incentives such as free shipping, buying three products and receiving shipping discounts,
vouchers, and so on, shipping fees have been the trigger for customers to double their purchase
volumes or the immediate fact that they are purchasing any item at all. In addition, Chen & Ngwe
(2018) stated that e-commerce nowadays has offered the customers lots of free delivery cost with
minimal purchase, thus the system has increased the customer expenditure basket size. Customers
usually check the cost of shipping and the shipping service provider before they placed the order
on e-commerce (DHL,2016). Free shipping is usually used as an alternative to cover the lengthy
delivery to maintain customer satisfaction. For some customers, the shipping fee is not important
as long as the price total is the same (Panko, 2019). Additionally, the price of delivery can vary
between locations and conditions. Consequently, the fourth hypothesis will be stated in this
research below:
There are a number of definitions for customer service. Following Calif (1987), customer
service is one of the organizational processes which companies perform considering the growing
competition and for attracting entrepreneurial opportunities for increasing profitability and better
access to the market and increasing the customer satisfaction and loyalty level. According to
Goofin and Price (1996) customer service has importance because it ends in increasing product
quality, gaining competitive advantage, gaining profitable opportunities, and as a result increasing
sales and income. In addition, Daeheon et al. (2019) defined that customer service includes the
after-sales support or other logistics services performed on behalf of the customer upon completion
of a transaction such as: incorrect product specifications, customers may request a refund or to
return goods. However, most online shopping malls do not provide an after-sales service. In fact,
many ecommerce stores provide an incredible online shopping experience, with simple navigation
and payment processes, a lot of useful product content, a well-executed SEO strategy to position
their store first in search results, and a great marketing strategy to promote products through social
media, influencers, and the appropriate channels. However, once a customer purchases a product,
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the service may rapidly deteriorate (or doesn't exist at all) (Giner, 2021). Accordingly, this study
posits customer service as an important factor influencing customer satisfaction.
H5: The customer service quality has a positive effect on customer satisfaction.
Base on Choi et al. (2019) and previous studies discussed in the literature review above, a
conceptual framework in this study is proposed to demonstrate the effect of sustainable online
shopping logistic to customer satisfaction in as follows:
In this study, quantitative research method can be utilized to test the research hypotheses and
evaluate the influence of the independent variables on the dependent variables. Therefore, this
paper will apply quantitative research to find out the impacts of 5 independent variables, which
are quality of information, quality of delivery, quality of order, price of delivery, and customer
service on the dependent variable – customer satisfaction.
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This study will use convenience sampling which is a non-probability sampling technique.
Convenience sampling can be used to collect relevant data from a sample or unit of study
(Zikmund, 1997). According to Lym et al (2020). In most cases, convenience sampling is used to
collect quickly and cheaply a large number of completed surveys.
The subjects in this paper are those who are working in e-commerce and logistic industry
in all positions, and they have been or are a customer using the online shopping service in Binh
Duong by the online and offline survey.
First, this paper will use some demographic questions to select the target respondents. This study
will apply the 5 points Likert scale to measure 5 independent variables, including quality of
information, quality of delivery, quality of order, price of delivery, and customer service, and one
dependent variable which is customer satisfaction. Likert scale is a five-point scale to allow the
individual to express how much they agree or disagree with a particular statement including 1 =
Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, and 5 = Strongly Agree (Saul, 2019).
Quality of QI1 Products you want to purchase from online shopping malls can be
Information searched for easily
QI4 Various details are provided on the products you want to purchase
Quality of Order QO1 Orders are processed accurately and quickly when using online
shopping malls
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QO2 Products ordered and delivered are identical
QO4 If the product has been substituted, the substituted product is almost
the same as the ordered product
DQ2 The means of delivery are diverse and can be freely selected
PD5 You do not have to pay additional delivery charges for refunds
Customer Service CS1 Online shopping malls provide information on delivery processes
after purchasing products
CS2 When asked about product delivery, the response from the shopping
mall is compassionate
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CS3 Reception/service by the delivery person is friendly
Customer SAT1 Use of online shopping malls saves time compared with using
Satisfaction conventional malls
SAT2 Online shopping malls you use most frequently offer certain items
cheaper than those offered in offline stores
SAT3 Are you satisfied with purchases from the shopping mall you use?
SAT5 Are you satisfied with the logistics service of online shopping malls
in general?
After 3 weeks of collecting survey, I received 204 responds but there are only 183 responds that
qualified for the study. Other responds, due to incomplete information or missing portions, were
eliminated and not being used for further analysis. We used Statistical Package for the Social
Science (SPSS) software version 20.0 for data analysis with procedure including descriptive
statistics, reliability test, exploratory factor analysis (EFA), correlation test, and multiple linear
regression.
4.1 Descriptive Statistic
The percentage of male among the 183 responds is 41 percent, lower than that of female. To be
more specific, the proportion of female is 59 percent, which is accounted for 108 responds out of
183. Whereas the proportion of males was 41 percent, which corresponds to 75 people. In term of
age, the number of people under 19 years old and above 40 years old are the two lowest responds,
accounting for 9.8 and 10.4 percent respectively. On the other hand, 46.4 percent – the highest
proportion come from people who from 20 – 29 years old. In addition, there are 33.3 percent of
people between 30 and 39 years old. About the occupation, most of the responds are student and
staff/employees, which account for 29.5 and 31.7 percent. By contrast, there are only 5.5 percent
of responds received by housewife. Besides, the proportion of respond from self-employed and
others jobs are 14.2 and 19.1 percent respectively. Because most of the responds of this survey are
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student and staff/employee (base on table 5, it is also show that the two highest proportion of
average monthly income come from under 7,000,000 VND and 7,000,000 – under 13,000,000
VND (31.7 and 39.3 percent, respectively). Additionally, there are 33 persons who earn between
13 and 20 million VND, account for 18 percent of total. The percentages of respondents earning
between 20 and 27 million VND and above 27 million VND are barely at 8.2 and 2.7 percent,
respectively.
Table 2 Average monthly income
7,000,000 - under
72 39.3 39.3 71.0
13,000,000 VND
13,000,000 - under
33 18.0 18.0 89.1
Valid 20,000,000 VND
20,000,000 - under
15 8.2 8.2 97.3
27,000,000 VND
Descriptive Statistics
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PD3 183 1 5 3.65 .811
PD4 183 1 5 3.69 .816
PD5 183 1 5 3.60 .832
CS1 183 1 5 3.89 .851
CS2 183 1 5 3.81 .851
CS3 183 1 5 3.85 .851
CS4 183 1 5 3.76 .843
SAT1 183 1 5 3.72 .816
SAT2 183 1 5 3.74 .815
SAT3 183 1 5 3.80 .822
SAT4 183 1 5 3.78 .831
SAT5 183 1 5 3.79 .826
Valid N (listwise) 183
The summary of descriptive statistics for all variables, including their minimum,
maximum, mean, and standard deviation, is shown in Table 5. Generally, almost all value of the
items is from the minimum at 1 to the maximum at 5. As a result, it can be claimed that each
survey, the question’s level of agreement and disagreement may be seen clearly.
N Minimum Maximum Mean Std. Deviation
For the QI variable, most of the items in this variable have a high degree of agreement with
the mean value from 3.70 to 3.88. The highest value is 3.88 which comes from the item QI1
(Products you want to purchase from online shopping malls can be searched for easily) indicate
that responders prefer to receive the clarity when surfing. In addition, QI4 has the highest standard
deviation, indicate that it has the most different.
QO1 183 1 5 3.84 .846
With the QO variable, with the mean value is 3.67, QO5 (Guaranteed refund/return
processes) remain the lowest value compare to others which show that the experience of refund or
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return is not so frequent. By contrast, the mean value of QI1 (Orders are processed accurately and
quickly when using online shopping malls), QO3 (There aren’t many cases of product substitutions
due to products being out of stock) and QO4 (If the product has been substituted, the substituted
product is almost the same as the ordered product) are quite similar at 3.84, 3.80 and 3.74
respectively. Furthermore, QO5 has the highest standard deviation, with a value of 0.853,
indicating the greatest difference compared to the other QO.
DQ1 183 1 5 3.75 .825
At the DQ variable, DQ1 (Delivery is fast and safe) and DQ4 (The delivery is done on
time) are the two highest mean value (3.75 and 3.77, respectively). This value show that the
quality of online shopping logistics has increased in order to receive agreement from responders.
On the other hand, the mean value of DQ3 (The current location of products can be easily
identified during delivery) and DQ5 (The product is not damaged during delivery) are lower, at
3.68 and 3.60 for each. Furthermore, DQ4 has the highest standard deviation, at 0.846.
PD1 183 1 5 3.99 .858
For the PD variable, PD1 (Price of delivery is specified before the purchase) and PD2
(Price of delivery is easily identifiable before the purchase) receives the highest mean value at 3.99
and 3.85 respectively. However, the others three, PD3 (Delivery is cheaper than from an offline
store), PD4 (Price of delivery is the same regardless of the quantity purchased/total expenditure
on products) and PD5 (You do not have to pay additional delivery charges for refunds) are quite
low, just 3.65, 3.69 and 3.60 for each. In addition, PD2 has the highest standard deviation, 0.861,
making it the most difference to the others.
CS1 183 1 5 3.89 .851
The mean value of CS is quite similar and high with the three first items, CS1 (Online
shopping malls provide information on delivery processes after purchasing products), CS2 (When
asked about product delivery, the response from the shopping mall is compassionate) and CS3
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(Reception/service by the delivery person is friendly) at 3.89, 3.81 and 3.85 respectively.
However, the mean value of CS 4 (The malls provide swift answers to customers’ questions) is
lower, at 3.76 compared to the other CS.
SAT1 183 1 5 3.72 .816
Lastly, it is clear that the all of mean value for Customer Satisfaction (SAT) variable are
approximately to 4, indicate that responders feel pleased with the experiences they receive. To be
more specific, the mean value of SAT is from 3.72 to 3.80, with SAT3 (Are you satisfied with
purchases from the shopping mall you use?) remain the highest position. Regarding standard
deviation, SAT4 (Are you satisfied with the logistics service?) have the highest standard deviation
0.831, indicating that it had the most difference.
4.2 Reliability test
Cronbach's alpha is a reliability test that demonstrates how the scale's observed variables are
related to the scale's reliability. Cronbach's Alpha should be greater than 0.6 for each variable, and
the Corrected item - Total Correlation value cannot be lower than 0.3. Remove the variable from
the scale if it does not meet these two conditions (Bonett & Wright, 2014).
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha
Item Deleted Item Deleted Total Correlation if Item Deleted
QI1 15.04 6.982 .596 .798
QI2 15.13 7.049 .588 .800
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QI3 15.22 6.710 .667 .778
QI4 15.19 6.987 .586 .801
QI5 15.10 6.727 .667 .777
Following the above two tables, the Cronbach’s Alpha of Quality of Information (QI) is
0.826 which higher than 0.6. Besides that, the corrected item-total correlation is higher than 0.3.
As a result of this, the variable achieves the requirement.
Reliability Statistics
Cronbach's Alpha N of Items
.822 5
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha
Item Deleted Item Deleted Total Correlation if Item Deleted
DQ1 14.67 6.960 .550 .806
DQ2 14.80 6.489 .693 .764
DQ3 14.74 6.612 .632 .782
DQ4 14.65 6.514 .649 .777
DQ5 14.83 6.969 .554 .804
In tables 5a and 5b, the Cronbach's alpha and item-total statistics for Delivery Quality are
displayed. Cronbach's alpha (0.822) is greater than 0.6, and the corrected item-total correlation
between the two items is greater than 0.3. As a result, this variable (DQ) meets the requirement to
use in EFA
Reliability Statistics
Cronbach's Alpha N of Items
.839 5
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Table 6b. Total Statistics - Quality of Order
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha
Item Deleted Item Deleted Total Correlation if Item Deleted
QO1 14.98 7.340 .621 .813
QO2 15.06 6.914 .724 .784
QO3 15.02 7.302 .630 .811
QO4 15.08 7.280 .658 .803
QO5 15.15 7.467 .582 .823
Looking at the table 11, the Cronbach Alpha’s of Quality of Order (QO) is 0.839 which is
lower than 0.6. According to the table 6b, the Corrected Item- Total Correlation among five items
is greater than 0.3. In order words, Quality of Order meets the evaluation criteria for usability, and
all items are approved.
Reliability Statistics
Cronbach's Alpha N of Items
.817 5
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha
Item Deleted Item Deleted Total Correlation if Item Deleted
PD1 14.79 6.781 .572 .791
PD2 14.93 6.616 .613 .779
PD3 15.13 6.774 .626 .775
PD4 15.09 6.865 .594 .784
PD5 15.18 6.676 .629 .774
The table 13 and 14 contain information regarding the Price of Delivery to reliability test.
Cronbach's alpha is higher than 0.6 (0.817 > 0.6), and the corrected item-total correlation is greater
than 0.3. Therefore, Price of Delivery meets all criteria for reliability, and no items are excluded
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Table 8a. Reliability Statistic - Customer Service
Reliability Statistics
Cronbach's Alpha N of Items
.832 5
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha
Item Deleted Item Deleted Total Correlation if Item Deleted
CS1 15.07 7.435 .543 .822
CS2 15.14 7.353 .564 .816
CS3 15.11 6.955 .669 .787
CS4 15.20 6.939 .682 .783
CS5 15.31 6.930 .698 .779
The table 8a and 8b show that the Cronbach’s Alpha of Customer Service (CS) is 0.832 and
Corrected Items- Total Correlation of all items of this variable are higher than 0.3. Therefore, the
Customer Service satisfies all criteria of reliability test and can be used for using Exploratory
Factor Analysis (EFA).
Reliability Statistics
Cronbach's Alpha N of Items
.818 5
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha
Item Deleted Item Deleted Total Correlation if Item Deleted
SAT1 15.11 6.520 .622 .778
SAT2 15.09 6.619 .595 .786
SAT3 15.03 6.477 .628 .777
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SAT4 15.05 6.612 .579 .791
SAT5 15.04 6.488 .620 .779
The Cronbach’ Alpha of Customer Satisfaction (SAT) is 0.818 (higher than 0.6) and all
followed items have the Corrected Item- Total Correlation greater than 0.3. In short, the Customer
satisfaction is a reliable variable to be analyzed in Exploratory Factor Analysis (EFA).
According to the table, the KMO value of independent variables is 0.777 which is higher
than 0.5. Besides that, the Sig value of Bartlett's Test of Sphericity is 0.000, which is less than
0.05. In order words, this result of the independent variables is qualified for exploratory factor
analysis (EFA).
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3 2.114 8.456 49.414 2.114 8.456 49.414 3.224 12.896 39.548
4 1.817 7.269 56.683 1.817 7.269 56.683 3.215 12.861 52.409
5 1.702 6.809 63.492 1.702 6.809 63.492 2.771 11.083 63.492
Following the table 10b, the Initial Eigenvalues of the first five components are 8.058,
2.181, 2.114, 1.817 and 1.702 respectively, which are all higher than 1 as determined by the EFA
analysis. As a result of this, all of those five factors can be kept in the exploratory factor analysis
model. Moreover, the cumulative percent variance for extracted factors of independent variables
is 63.492 % which is higher 50% indicates 63.492% of the variation of the data is explained by 5
factors measured through 25 observed variables and are completely consistent.
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Table 10c. Rotated component matrix of independent variables 1st
The outcome of rotated component matrix for independent variables is showed in the table
10c, it is clear that the factor loading values of independent variables are all higher than 0.5.
However, the case of cross-loading happens in 4 “items”: QI5, CS5, QO2 and DQ2.
• QI5: 0.663 – 0.575 = 0.088 (<0.3)
• CS5: 0.658 – 0.601 = 0.057 (<0.3)
• QO2: 0.658 – 0.640 = 0.018 (<0.3)
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• DQ2: 0.653 – 0.620 = 0.033 (<0.3)
As the result of calculation, all of the outcome are smaller than 0.3 which does not meet the
discriminant validity. In order word, those four variable will be eliminated and the exploratory
factor analysis for the independent variables will be conducted again.
Table 11a. KMO and Bartlett's Test for Independent variable 2nd
In the second time, all unqualified variables were eliminated and the outcome are showed
in table 11a. According to the table, the KMO value of independent variables is 0.836 which is
higher than 0.5. Besides that, the Sig value of Bartlett's Test of Sphericity is 0.000, which is less
than 0.05. In order words, this result of the independent variables is qualified for exploratory factor
analysis (EFA).
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12 .532 2.533 83.181
Following the table 11b, the Initial Eigenvalues of the first five components are 5.874,
1.912, 1.900, 1.477 and 1.444 respectively, which are all higher than 1 as determined by the EFA
analysis. As a result of this, all of those five factors can be kept in the exploratory factor analysis
model. Moreover, the cumulative percent variance for extracted factors of independent variables
is 60.031 % which is higher 50% indicates 60.031% of the variation of the data is explained by 5
factors measured through 21 observed variables and are completely consistent.
Table 11c. Rotated Component Matrix of Independent variable 2nd
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CS1 .715
QI3 .756
QI4 .753
QI1 .744
QI2 .687
DQ5 .753
DQ4 .744
DQ3 .726
DQ1 .686
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
In the second time, the case of cross-loading variable is not happened and all the factor
loading are greater than 0.5. To be more detailed, value of the first item PD3 is the highest (0.776),
means that it contributes the most to determining the Price of Delivery variable. Besides that, the
value of QO1 is also the highest (0.764), indicates that QO1 contribute more to the Quality of
Information variable. Similarity, the value of item CS3 (0.788) is higher than the other three which
show the greater contribution to the Customer Service variable. The fourth item QI3’s value of
0.756 is the highest, suggest that QI3 has the most supports for the Quality of Information variable.
Lastly, DQ5 has the higher value than the other three (0.753), also indicates that DQ5 contribute
the most to the Delivery Quality variable.
According to the table 12a, the KMO value of dependent variable is 0.841, and the Sig
value of Bertlett’s Test of Spherricity is 0.000, which is less than 0.05. Consequently, this result is
suitable for exploratory factor analysis (EFA).
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Table 12b. Total Variance Explained for Dependent variable
Follow the table 12b, only 1 item is extracted, with Eigenvalue = 2.895 (higher than 1) and
the cumulative percent variance is 57.907 % which is higher 50%. As a result, it can be also reliable
and comparable for further analysis.
Component Matrixa
Component
1
SAT3 .776
SAT1 .772
SAT5 .771
SAT2 .750
SAT4 .735
Extraction Method:
Principal Component
Analysis.
a. 1 components
extracted.
Looking at the table 12c, it is clear that five items of Customer satisfaction variable are in
one component and the value of all factor loading are higher than 0.5. To sum up, all five items
will be kept for the later step of analysis.
4.4 Correlation
Pearson Correlation coefficient (r) is to measure the degree of linear correlation between two
variables (Lind, et al., 2018). This study will use Pearson correlation coefficient to analyze the
26
relationship between five independent variables (Quality of Information - QI, Quality of Order –
QO, Delivery Quality – DQ, Price of Delivery – PD, Customer Service) and one dependent
variable which is Customer Satisfaction. According to Field, (2018), the significance values must
be lower than 0.05 in order for a correlation to be considered meaningful. Besides, Pearson
correlation analysis aims to test the close linear correlation between the dependent variable and
the independent variables and early identify the problem of multi-collinearity when the
independent variables are also strongly correlated with each other. Additionally, the Pearson
correlation coefficient will range from -1 to +1 and will represent many perspectives:
Correlations
SAT QI QO DQ PD CS
Pearson Correlation 1 .528** .561** .535** .486** .561**
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**. Correlation is significant at the 0.01 level (2-tailed).
The table 13 describes the Pearson correlation coefficient of six variables as above. Overall,
all of significant values of five dependent variables meet the requirement (lower than 0.05).
• To be more detail, the two variable – Quality of Order (QO) and Customer Service (CS)
have the highest level of correlation with the dependent variable (0.561).
• Delivery Quality (QD) variable have the third position with a Pearson Correlation value at
0.535
• The fourth is Quality of Information (QI) with Pearson Correlation value at 0.528.
• Finally, with the value of Pearson Correlation at 0.486, Price of Delivery (PD) indicate the
lowest positive correlation.
We use the Multiple linear regression to estimate the impact of five independent variables
(Quality of information, Quality of Order, Delivery Quality, Price of Delivery and Customer
Service) on dependent variable (Customer Satisfaction). Results are reported in Tables 14, 15, and
16.
Table 14. Model Summaryb
Model Summaryb
Model R R Square Adjusted R Std. Error of the Durbin-Watson
Square Estimate
1 .786a .618 .607 .39217 1.839
a. Predictors: (Constant), CS, QO, QI, PD, DQ
b. Dependent Variable: SAT
The Model summary displays the R Square and the Adjusted R Square to evaluate the
relevance’s degree of the model.
The result of Adjusted R Square is 0.607 (60.7%) means that all independent variables
(Quality of Information, Delivery Quality, Quality of Order, Price of Delivery and Customer
Service) can explain 60.7% of Dependent variable (Customer Satisfaction). Consequently, the rest
of 39.3% of Customer Satisfaction is describe other variables which are not included in this study.
Additionally, the Durbin-Watson is 1.839 which is still in the acceptable range (1.5 to 2.5),
indicating that there is no autocorrelation in this statistical model.
28
Table 15. ANOVA
ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 43.968 5 8.794 57.177 .000b
In the ANOVA table, the result of F test is 57.177 and the value of Sig is 0.000, which is
smaller than 0.05. As a result, there is linear regression model between Customer Satisfaction and
five influencing factors.
Table 16. Coefficientsa
Coefficientsa
Model Unstandardized Coefficients Standardized t Sig. Collinearity Statistics
Coefficients
B Std. Error Beta Tolerance VIF
The collinearity statistic is used to test if the multi collinearity happens in the linear
regression model. The multi-collinearity happens when tolerance values are low and variance
inflation factor (VIF) are high. If the VIF values are higher than two, the multi collinearity is high
(Hair, 2009).
The VIF is then used to test the linear relationship between one predictor and another.
According to Field (2010), the VIF value should be less than 2, and the tolerance should be at least
0.2, because anything less than 0.2 is considered excessive multi-collinearity. According to the
table 16, all of the VIF value are lower than two. To be more detailed, the VIF value of QI, QO,
DQ, PD and CS are 1.334, 1.344, 1.318, 1.305, 1.242 respectively which show that there is no
multi-collinearity. As a result, there is sufficient evidence to conclude findings as follows:
29
Customer Satisfaction is always a top concern of businesses especially when Covid-19 has
made an enormous change in their shopping behavior – switching from offline to online store.
Consequently, the attention to the online shopping logistics is inevitable because it is an
indispensable part that helps business connect and serve their customer. Business owners need to
identify the factors that affect their customer’s satisfaction level in order to improve their
operation.
Firstly, Customer Service was proved to have a positive impact with Customer Satisfaction
and considered as the most influence variable (β = 0.309, t = 5.967, Sig = 0.000). This statement
also being confirmed by other studies. Kitapci et al (2014) supports the idea that there is a
significant relationship between e-service quality and customer satisfaction. In other words,
providing good service quality enhances customer satisfaction. This result is aligned with previous
studies conducted by Wu et al. (2010) and Wu et al. (2018). This statement is similarly proven in
others industry. Following Cao et al (2018), Customer service plays the most important role in
determining customer satisfaction in China. Janahi et al (2017) conducted a study about Customer
Service in banking confirms the significant and positive relationship between service quality and
customer satisfaction.
Secondly, Quality of Order also have a positive influence with customer satisfaction and
remained the second position ((β = 0.263, t = 4.876, Sig = 0.000). Following Kumar et al (2006),
they found that e-commerce has dramatically improved order entry accuracy; concluding that the
ability to order directly and not through a series of channels, reduces the potential for human error
or misinterpretation. Besides, customers are less likely to make future orders from the same
company when an order is delivered incorrectly due to their negative memories of the previous
order (Chen et al, 2019). As a result, the owner of online stores need to pay attention to the order
throughout the logistic chain.
Thirdly, Quality of Information is the third influencing factor ((β = 0.213, t = 3.961, Sig =
0.000) and was found to have a positive impact with customer satisfaction. Following research by
Patma et al (2021), good quality of information which is provided follows the perception of
customer perceived value can create the customer satisfaction. Furthermore, other research also
supports for this finding such as useful and complete information can create a memorable
experience (An et al, 2021) and useful, high-quality information would influence consumer
30
perceptions and create customer satisfaction (Hossain et al, 2020). In order words, when customers
experience online shopping, the more well-organize and accurate information, the more
satisfaction level businesses can create for their customers.
Fourthly, Delivery Quality variable also has a positive influence on Customer Satisfaction
and kept the fourth position (β = 0.210, t = 3.938, Sig = 0.000). Follow a study of Zlatkovic (2013),
the ordered item must be delivered to the client in perfect condition. In other word, it is crucial for
online store to secure the products in a way that prevents damage during processing and shipping.
Moreover, delivery quality is also considered as the most important factors in customer satisfaction
(Lin et al, 2011). Therefore, e-commerce proprietors have to select carefully and cooperate with
high quality delivery suppliers in order to offer a higher standard of delivery, such as right order,
speediness, and safety packaging.
Lastly, the last influencing factor was Price of Delivery (β = 0.148, t = 2.796, Sig = 0.000).
There was a positive influence found between Price of Delivery and Customer Satisfaction. To be
more specific, because the measurement items asked about the accuracy and gap between online
and offline stores, the outcome often have a high mark. Customers tend to analyze the cost they
incur and the benefits they receive when making orders have showed in the research of Rita et al.
(2019), Hirata (2019), and Chicu et al. (2019). They would expect that additional fee for home
delivery service is reasonable, competitive compared to those offered by other service providers
and feel safe with the delivery personnel service. Consequently, the ability to provide superior
service will assure customers that they are getting value and quality service for the price of the
delivery charge (Uzir et al, 2021). Price of Delivery, therefore, should be adjusted to be
competitive and reasonable so that customers will not think they are paying more than they have
to.
The purpose of this study is to analyze the effects of five independent elements in sustainable
online shopping logistics on Customer Satisfaction in Binh Duong. Our result illustrates that
Customer Satisfaction in Binh Duong is positively affected by Quality of Information, Delivery
Quality, Quality of Order, Price of Delivery and Customer Service. Especially, Customer Service
has the strongest impact on the level of satisfaction of customer.
31
The finding of this study provides literature and guidance to other authors who investigate
the subject of Customer Satisfaction in Logistic industry. This study will act as a resource for
additional research on Satisfaction level of Customer for not only Online shopping logistics but
also serve as a reference for further research on this topic in another industries or places.
Additionally, this research offers a number of legitimate and useful managerial implications to
owners of online stores. The variables influencing Customer Satisfaction using logistics service
have been investigated and confirmed in this study. It also demonstrates the element that has the
highest influence on the level of satisfaction. By this, owners of business will be able to review
and adjust those variables in order to allocate their resources more effectively. Besides, they will
know which aspects of their logistics service require greater focus in order to increase customer
satisfaction, pleased more customers and increase their sales or profit. Lastly, according to VTV
(2022), more than 50% of users in Southeast Asia search for products directly on e-commerce
platforms without intermediaries and the scale of Vietnam's e-commerce can reach nearly 40
billion USD by 2025. Furthermore, revenue from business-to-consumer (B2C) e-commerce in
Vietnam is expected will increase over 20% per year. In other words, those statistical show that
the e-commerce market in general, and Vietnam in particular, is expected to have a very positive
development in the near future. Consequently, this is a golden time for e-commerce owners to have
a deeper understand about their business, especially the logistic system to provide a better
experiences and services for their customers.
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