NATIONAL ECONOMICS UNIVERSITY

NEU BUSINESS SCHOOL

***

RESEARCH PROPOSAL
 Factors affecting customer's repurchase
intention on Shopee

                                                                  
Lecturer: Le Thi My Linh                         
Subject: Research Methodology
Class: EBDB 3
Group 11: Members

Nguyễn Thái Quỳnh Anh - 11219328

Nguyễn Trần Tuấn Cường - 11211211
Trần Quý Dương - 11211648
Đặng Nguyễn Ngân Hà - 11219333

Hanoi, October 2022

  Factors affecting customer's repurchase intention on Shopee

TABLE OF CONTENT
1. Rationale...............................................................................................................2

2.Research objectives..............................................................................................3

3.Research questions...............................................................................................3

4.Literature review..................................................................................................3

5. Theoretical framework and hypothesis.............................................................5

5.1 Research model..............................................................................................5

5.2 Hypothesis.......................................................................................................6

6. Research Methodology........................................................................................9

6.1 Research Design.............................................................................................9

6.2 Data collection method................................................................................10

6.3 Data analysis method...................................................................................10

7. Time frame.........................................................................................................11

8. Reference............................................................................................................12

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1. Rationale

Compulsive and addictive forms of consumption and buying behavior have been
researched in both business and medical literature. Shopping enabled via the Internet now
introduces new features to the shopping experience that translate to positive benefits for
the shopper.
Nowadays, young Vietnamese people use social media platforms as an
indispensable daily activity for several purposes such as entertainment, communication,
sharing information and even boosting sales activities. Internet shopping is a
phenomenon that is growing rapidly nowadays. A peep into the exponential growth of the
main players in this industry indicates there is still a large reservoir of market potential
for e-commerce. The convenience of online shopping rendering it an emerging trend
among consumers, especially Gen Y and Gen Z. The prevalence of online shopping has
raised the interest of the retailers to focus on this area. Therefore, this research was to
determine the relationship between subjective norm, perceived usefulness and online
shopping behavior while mediated by purchase intention.

2.Research objectives

This research undertook the challenge to explicate the underlying factors that
stimulate consumers’ decisions in repurchasing items on Shopee. The second objective of
this research is to gain knowledge on how the purchase decision process is being made by
individual consumers. Furthermore, this inquiry makes recommendations to help Shopee
attract more customers to repurchase their products; provide materials to orient, attract
the exact target customers. To achieve the above objectives, our group will carry out
some specific research:
 Determine the factors that affect customers’ repurchase decision on Shopee.
 Synthesize theoretical bases to build models of factors affecting customers’
repurchase decisions.
 Make recommendations to Shopee to make online shopping easier and more
convenient.

3.Research questions

This research is designed to answer the following questions:

 What are the factors that  affect consumers’ purchase intention ? How is the
purchase intention being affected? Which factor has the biggest impact on the
customer’s decision on repurchasing products on Shopee?
 How can Shopee influence customers to repurchase their products?

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4.Literature review

a. Subjective Norm

Ajzen (1991) and Orapin (2009) advocated that external elements such as
perceived social pressure may actually influence one’s behavior. Previous studies on
subjective norms focused on family Takaful scheme (Husin & Rahman, 2013), intention
to work in older age, infused soft drinks , telepresence systems , participation in online
community, online shopping . The subjects of analysis of most research focused on
university students as respondents and others on the public, including professionals as the
respondents. There is no direct significant relationship between subjective norm and
consumer behavior and it has been proven by Ajzen(1991) that personal considerations
tend to overshadow the influence of subjective norm Most of the studies on subjective
norm are mediated by purchase intentions before performing actual buying. A related
finding by Jamil and Mat (2011) proposed that subjective norms do not significantly
influence actual buying through the internet but have a profound significant effect on
online purchase intention. The results implied that families, friends and the media only
have a minor influence on the actual internet purchasing. Subjective norm was the second
most influential factors after perceived behavioral control to influence the purchase
intention to shop online (Orapin, 2009). He et al. (2008) hypothesized that the
recommendations by third parties (subjective norm) significantly impacted the purchase
intention of the consumers. Most of the findings indicated that subjective norm does have
a direct significant influence on purchase intention towards online shopping (Leeraphong
& Mardjo, 2013; Jamil & Mat, 2011; Siti, Mohammed & Nik Kamariah, 2012; Xie et al.,
2011). The conclusion is applicable to Malaysian since Malaysian is culture-bounded and
averse to changes (Harn et al., 2006;Jamil & Mat, 2011).

b. Perceived Usefulness

Perceived usefulness is defined as the extent to which consumers feel the online
website could add value and efficacy to them when performing online shopping (Hu et
al., 2009; Lai & Wang, 2012). Perceived usefulness could also be defined from an
individual’s point of view that by using a system would improve task performance . The
perceived usefulness of the website usually depends on the efficiency of technological
characteristics such as advanced search engines and the personal service provided by the
service provider to consumers (Kim & Song, 2010). Various information and high quality
goods’ descriptions must be provided to the customers to help customers in making an
well-informed decision. Previous studies on perceived usefulness were mostly conducted
in developing countries such as China (He et al., 2008; Hu et al., 2009; Lai & Wang,
2012; Liu et al., 2010; Xie et al., 2011; Zhao & Cao, 2012), Malaysia (Letchumanan &
Muniandy, 2013; Yulihasri et al., 2011) Vietnam (Nguyen & Barrett, 2006) and Iran
(Aghdaie et al., 2011) while a minor percentage conducted in developed countries such as

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Taiwan (Liao et al., 2013), South Korea (Kim & Song, 2010; Seo, Kun & Dae, 2013) and
Spain (Enrique, Carla, Joaquin & Silvia, 2008; Hernandez et al., 2011; Jose, Silvia, Carla
& Joaquin, 2013). It is because developing countries are still at the infant stage of
information technology compared to developed countries (Hana, Mike & Parvaneh,
2012). Previous studies on the correlation between perceived usefulness and consumer
behaviors were conducted. Hernandez et al. (2011) revealed that perceived usefulness has
significant effect towards online shopping behavior in Spain but Aghdaie et al. (2011)
suggested that perceived usefulness do not have significant effect on internet purchasing
behavior in Iran. It could be due to different standpoints of respondents from developed
and developing countries regarding the perceived usefulness influence on their internet
shopping behavior. Concerns of price, quality, durability and other product-related
aspects are the main drivers of buying decisions in developed countries but the
considerations could vary from the developing countries (Ahmed, 2012). Previous study
in Malaysia found that perceived usefulness of a specific system will have a direct
significant impact on its information system usage (Ndubisi & Jantan, 2003). According
to Enrique et al. (2008), Kim & Song (2010) and Xie et al. (2011), perceived usefulness
was proven to have a significant impact on the intention to purchase via the internet.

c. Purchase Intention and Consumer Behavior

Ajzen (1991) suggested that intentions are presumed to be an indicator of to what

extent people are willing to approach certain behavior and how many attempts they are
trying in order to perform certain behavior. According to the studies by He et al. (2008),
lack of intention to purchase online is the main obstacle in the development of electronic
commerce. The theory of planned behavior (TPB) applied on Thai consumers implied
that the intention to shop online was most likely to be affected by perceived behavioral
control and subjective norm, the sum of the attitudes from the people surrounding them
(Orapin, 2009). These two factors can influence consumers’ purchase intention , thus
influencing their behavior towards online shopping and eventually lead to actual action
(Orapin, 2009). The shopping intention as a substitute for purchasing behavior also needs
to be explored. Although intention has been determined as a salient predictor of actual
behavior to shop online (He et al., 2008; Orapin, 2009; Pavlou & Fygenson, 2006; Roca
et al., 2009), it should be acknowledged that purchase intention does not translate into
purchase action (Kim & Jones, 2009). Based on the Technology Acceptance Model
(TAM), perceived ease of use and perceived usefulness determined the online shoppers’
decision after online behavioral intention sank in (Hu et al., 2009). An online website
should understand the customers’ purchasing behavior in order to build and maintain the
good relationship with customers (Kim & Hong, 2010). Jamil and Mat (2011) proposed
that purchase intention may have a positive influence on actual online purchasing and
recommended further investigation on the relationship between these two variables in
future studies. Limayem et al. (2000) admonished researchers to investigate on the
intention, assuming that behavior will automatically string along.

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5. Theoretical framework and hypothesis

5.1 Research model 

E-commerce is being used in all types of businesses and is essential for businesses to
compete globally. In Vietnam, e-commerce has become a popular and pervasive form of
business in society. Vietnam is also the only country in Southeast Asia with double-digit
e-commerce growth.

Brands that have grown strongly in the e-commerce industry in Vietnam such as Lazada,
Shopee, Tiki, Sendo, Shopee... In which, Shopee is one of the most popular brands of
consumers. In the first quarter of 2021, the e-commerce platform Shopee Vietnam held
the "throne" in terms of website traffic with over 63.7 million visits, this is the 11th
consecutive quarter, and Shopee ranked first in terms of traffic.

The research results indicate 3 factors affecting the intention to re-shop online at Shopee
channel as follows:

(1):Perceived Usefulness - Consumers feel the benefits of using a website based on their
interactions with the website, example, if they get good items, whether they can find
information online of the product, or if the site can improve their purchasing experience
(Zhang et al., 2011). 
Perceived usefulness becomes a strong influence on the formation of use intentions
(Fred, Richard, & Paul, 1989).

(2): Perceived risk is a crucial factor determining online consumer purchases and
repurchases (Peng, Wang, & Cai, 2008).

(3): Trust is a belief that can positively affect one's desires in managing online activities.
It builds trust based on the stages of interaction that arise between buyers and merchants
(Chen & Rau, 2014).

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   5.2 Hypothesis

 Perceived Risk toward Online Trust

In e-commerce reference, the perceived risk can explain to what extent for consumers to
believe that using a website can get negative results or unsatisfactory results (Glover &
Benbasat, 2010). When connected in the online transaction process, consumers are
usually conscious of the risks they face (Pavlou, 2003). Consumers worry that the
products or services they purchase on the internet may not provide the expected benefits
or they are afraid that they will face unexpected dangers when they make online
transactions (Glover & Benbasat, 2010). Because getting new custom- ers is decidedly
more expensive than retaining loyal customers, reducing consumers' risk perceptions is
very relevant to make sure they will come back to online stores (David et al., 2003).
Repeat customers usually feel a lower level of confidence in transactions with websites
compared to potential customers, because of personal experience with the site (Kim, Xu,
& Gupta, 2012). However, the perceived risk decreases the possibility of a trusting
relationship between repeat consumers and online buyers. One of the ways to retain the
consumers is to keep their trust in online stores (David et al., 2003; Jarvenpaa,
Tractinsky, & Saarinen, 1999; Pavlou, 2003). Trust plays an essential role in helping
consumers to resolve risk perceptions and uncertainty in the online environment (Lai &
Tong, 2013). If consumers feel that online merchants will breach formal and informal
obliga- tions (e.g., not sending the right product at the right time as promised), they will
select not to trust the website (Dan et al., 2009). Consistently with prior literature, we
hypothesize that.

H1: Perceived risk has a negative effect on online trust.

 Perceived Usefulness toward Online Trust

Online trust has been felt like a significant element of perceived benefits, especially in an
online setting (David et al., 2003; Pavlou, 2003). David et al. (2003) state that trust must
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increase the perceived benefits of interaction through a website by increasing the primary
profits. Here, purchasing products or services from honest and attentive merchants can
lead to a top level of trust by transferring satisfaction from past transactions and
increasing buyer expectations for current interactions (Sun, 2010). When a website was
seen as trustworthy in the past, consumers will pay a premium price (David et al., 2003).
In online shopping refer- ence, feelings of mutual trust can develop between online
merchants and consumers, it will enable consumers to understand thoroughly the
information described and have more enjoyable experiences using the website (Al-Natour
et al., 2011). Consumers can fully complete their transactions on the website (shopping)
if they can trust the merchants ((David et al., 2003). Consistently with the literature, we
hypothesize that.

H2: Perceived usefulness has a positive effect on online trust.

 Perceived Risk toward Repurchase Intention

Although the perceived risk is known as a determining factor that affects purchase
intentions in the pre- purchase stage, perceived risk also plays an essential role in the
post-purchase stage (Chang & Wildt, 1994). If an online merchant succeeds on selling the
product as promised, the risk of confusion can be minimized, and consumers will
possibly return and make repeat purchases from the same site (Pavlou, Liang, & Xue,
2007). On the other hand, if anxious buyers are worried about online transactions that
will be carried out, they will possibly avoid future repurchases with the same merchant
(C.-M. Chiu, Hsu, Lai, & Chang, 2012). Consistently with the literature, we hypothesize
that.

H3: Perceived risk has a negative effect on repurchase intention.

 Perceived Usefulness award Repurchase Intention

An online site with a high level of usability can support and help the consumer shopping
experience and build positive atten- tion to the online website (Zhang et al., 2011). Based
on the adoption of technology by users, perceived usefulness becomes a strong influence
on the formation of use intentions (Fred, Richard, & Paul, 1989). Of course, all internet
shoppers need to get more richness and enjoy the pays of the existing marketplace, so
perceived usefulness is the most important factor that can interest returned use (Al‐
Maghrabi, Dennis, & Vaux Halliday, 2011). Besides, buyers will only use online sites to
shop if they believe that using these online sites can help performance or benefit their
users (Fred et al., 1989).

Users are trusted to repurchase if they felt the profits of the goods and services they
receive. It was also supported by Aren, Güzel, Kabadayı, and Alpkan (2013) from a study
of 300 students who had made online purchases. The study explained that the perception
of repurchase has a positive effect on repurchase intention. Internet shoppers, of course,

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wish to get more productivity by moving from an online site to another online site, so
perceived usefulness is considered the most leading factor of TAM that can involve the
intention of continuing the use of buyers Al‐Maghrabi et al. (2011). So, it can be
concluded that perceived usefulness involves a significant effect on repurchase
intention.Consistently with the literature, we hypothesize that.

H4: Perceived usefulness has a positive effect on repurchase intention.

 Online Trust toward Repurchase Intention

Trust results from past e-retail use expe- rience because it can help buyers to predict
different undesirable events but may arise when making activities online. A quality
relationship between buyer and seller can only arise if previous interactions are favorable
so that there can be a possibility of future repurchases (Zhang et al., 2011). Therefore
building trust with buyers is significant for the success of e-retail store in the form of
business-to-consumer (Murphy & Tocher, 2011). Thus, it can be concluded that trust in
an online site has a direct impact on the wish to make repeat purchases from the same
online website. Consistently with the literature, we hypothesize that.

H5: Online trust has a positive effect on repurchase intention.

6. Research Methodology 

6.1 Research Design

Purpose of the study: The article depicts a study of the customer’s repurchase
intention on Shopee. The study's overall goal was to explore the elements influencing the
repurchase intention of Shopee users. Our research not only helps Shopee to improve
their service and retain customers but also help other enterprises to learn from Shopee.

Extent of the researcher interference: The extent of researcher interference is

minimal in this study because the study investigates the factors affecting customer’s
repurchase intention based on existing facts, recorded statistics, and recorded studies on
the subject.

Study setting: The research is in non-contrived settings. It is done in the natural

environment where work proceeds normally.       
                                              
Research strategy: We believe that the descriptive design and quantitative
research method would be the optimal strategy for this study. Quantitative research is a
research technique that quantifies data gathering and analysis in order to generate and
apply mathematical models, theories, and hypotheses about phenomena.       
                        

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 Unit of analysis: The unit of analysis in this study is the customers who have
purchased goods on Shopee from all ages and sexes

6.2 Data collection method

Our research subjects were the customers of online companies who had Shopee shopping
experiences from the first of September to the end of October. The participants were
asked to fill out the questionnaires based on their experience with e-commerce and
especially Shopee. The questionnaires were also sent through the Internet to the email of
some participants whom we had their email address in order to speed up data collection.
The number of respondents was 283, from which 18 questionnaires were discarded
because of the same rating given to all questions or they were incomplete. Finally, 265
questionnaires were retained for analysis. 
The questionnaire was divided into 3 sections:
 Demographic questions (4 questions).
 Customer’s experience on Shopee and other e-commerce platforms (10 questions).
 The major proportion of the survey contains questions of factors affecting
customer’s repurchase intention on Shopee.

6.3 Data analysis method

Quantitative data were analyzed using SPSS, and qualitative data were coded, topics were
obtained and analyzed. We will use SPSS 20.0 to analyze the results of the valid
responses. Details:
- Frequency table will be created to find out the distribution of customer information like
age, gender, etc.
- Analysis of Cronbach's Alpha coefficient will be used to make preliminary evaluation
data of the scale, determine the degree of correlation, as a basis for the elimination of an
observed variable and the failure of the scale. Variables that do not guarantee
confidentiality will be excluded from the study and will not be used in Exploratory Factor
Analysis (EFA). The minimum acceptable Cronbach's Alpha coefficient is 0.6, any
coefficient less than 0.5 is considered unacceptable and will be expanded (George and
Mallery, 2003).
- EFA (Exploratory Factor Analysis) is used to evaluate the accuracy of the observed
variables in the scale. EFA results will be used to distinguish concepts in the study.

Measurements:

Factors Items References

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 Perceived I feel comfortable when I can buy any Safa, N.S. &
Usefulness place and time. Von Solms, R.,
(2016)
A user-friendly and simple website lead
to my satisfaction.
Easiness of transaction and accessibility
of information satisfy me
Considering reward and discount in
Internet purchasing lead to my
satisfaction. 

Perceived Risk If I want to purchase products online, I Shinta Lukito

fear that the purchase is overpriced and Ridho
Bramulya
I fear wasting time when shopping Ikhsan (2020)
online
I fear not getting the desired results when
I want to purchase products or services
online
I am fearful that the products bought
online will not be what I want

Online Trust I trust this website in terms of my Safa, N.S. &

privacy. Von Solms, R.,
(2016)
I trusted this website when I realized
nobody accesses my account and
transaction information.
This company has a secure path for data
transfer.

7. Time frame

13/08/2022- 07/09/2022: Review literature and develop instrument

 

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08/09/2022 - 30/09/2022: Finalize the instrmentation
                                         Collect primary data

31/09/2022 - 15/10/2022: Processed collected 

16/10/2022 - 27/10/2022: Writing report

8. Reference

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