Professional Documents
Culture Documents
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Table of Content
I) Introduction ............................................................................................................................ 3
1. Research background and research motivation ............................................................... 3
2. Research objectives, research question & research scope............................................... 4
3. Research methods and survey............................................................................................. 5
4. Research contribution ......................................................................................................... 5
II) Questionnaires ...................................................................................................................... 6
III) Data analysis ...................................................................................................................... 12
1. Descriptive analysis .......................................................................................................... 12
2. Cronbach’s Alpha ............................................................................................................. 13
2.1. Trust ........................................................................................................................... 14
2.2. Return policy .............................................................................................................. 14
2.3. Delivery service ......................................................................................................... 14
2.4. Delivery service ......................................................................................................... 14
2.5. Money back policy ..................................................................................................... 14
2.6. Convenience of payments .......................................................................................... 15
2.7. Promotion ................................................................................................................... 15
2.8. Perceive of use ........................................................................................................... 15
2.9. Buying intention......................................................................................................... 15
3. Correlation Analysis ......................................................................................................... 18
4.Regression ......................................................................................................................... 21
5. One-way Anova ................................................................................................................ 26
5.1 BI with gender............................................................................................................. 26
5.2 BI with age .................................................................................................................. 26
5.3 BI with income ............................................................................................................ 27
5.4 BI with address ........................................................................................................... 28
IV) Conclusion ......................................................................................................................... 28
1. Findings and discussion .................................................................................................... 28
2. Implications ...................................................................................................................... 30
2.1. Study implications ..................................................................................................... 31
2.2. Pratical implications................................................................................................... 31
3. Limitations and future research directions ....................................................................... 31
4. Conclusion ........................................................................................................................ 31
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V) References ........................................................................................................................... 31
I) Introduction
1. Research background and research motivation
The Internet has contributed to the expansion of e-commerce as online personalized
purchases have increased considerably in the last decades. This phenomenon creates a new
thing of consumer behavior in online shopping that people can easily buy and sells their
product using e-commerce facility, social media, and community (Vasić, Kilibarda, &
Kaurin, 2019). From all sales worldwide, e-commerce sales account for 18%. According
to Satista, the proportion of sales of e-commerce accounts for 10.2% of the total retail sales
of the world; experts also predict this rate in 2021 will continue to increase to 17.5%.
The development of the internet and e-commerce has impacted consumers' lives, the way
they traded, and the decision-making process is thereby creating the difference between
online consumer behavior and behavior traditional consumption (PAVLOU, 2003;
PAVLOU; FYGENSON, 2006). Shopping on the Internet becomes an alternative for
consumers since it is more comfortable than conventional shopping, which is usually
attributed with anxiety, crowdedness, traffic jams, limited time, parking space, etc.
Advances in technology also lead to the development of e-commerce with ease, there are
many banks that provide the features of Internet Banking (e-banking) that can help support
the payment process and there are a lot of free applications to build e-commerce sites. Since
joining the World Trade Organization, foreign investors have invested in many fields
including the internet and e-commerce in Vietnam. Prospectively, it is a good infrastructure
for Vietnam's development in the e-commerce industry. According to the Ministry of
Information and Communications in Vietnam, there is up to 54% of people use the internet,
which is higher than the global average of only 46.5%. The Vietnam E-commerce White
Paper 2021 issued by the Ministry of Industry and Trad illustrated that the Vietnamese e-
commerce market has seen a steady growth over the past 5 years, the value of this market
started at 5 billion USD in 2016 then significantly doubled to reach over 10 billion USD by
2019. This upward trend continued in 2020, with 11.8 billion dollars, a rise of 18% over
2019. In the light of the Covid-19 pandemic, there has been a significant growth in the
digital economy in general and e-commerce in particular. According to a report by Google,
Temasek and Bain & Company, the total merchandise value (GMV) of the e-commerce
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industry in Vietnam grew dramatically from 8 billion USD in 2020 to 13 billion USD in
2021.
However, the proportion of Vietnamese consumers participating in online shopping is still
lower than in other countries in the region and the world (MINISTRY OF INDUSTRY
AND TRADE, 2015). Therefore, in order to attract more online shopping consumers, it is
necessary to identify the factors that influence the customer's intention to buy online for
online retailers in the context of development fast of internet and e-commerce like today
(LOHSE; BELLMAN; JOHNSON, 2000) in order to prepare or change the business to meet
the needs of customers.
Until May 2022, Lazada is the second giant with a market share of 20.9%, equivalent to
VND 12,539 bn. According to data collected in the month of February 2022, the total
number of visits on Shopee were 78.5 million, Lazada had 14.8 million. Therefore, we
chooseWith the desire to learn about the factors affecting buying decisions, we chose
Lazada to conduct our topic research "Factors affecting online purchase intention” with the
aim to provide new information and scientific arguments for online buying intention at e-
commerce websites.
2. Research objectives, research question & research scope
According to the study of Sahney et al. (2013), online trust has the significant correlations
with guarantee return policy, perceived image of website, transaction security and consumer
database safety. The perceived risk for purchase online reduces the trust leading to online
transaction. (D’Alessandro, Girardi and Tiangsoongnern, 2012). Hsin and Wen (2008)
found out that the dependency between perceived risk and trust is reciprocal even though
the two factors influence the online purchasing intention. Hence, the main goal of the study
is to explore the factors that affect buying decisions of Vietnamese customers on Lazada
such as trust, customer services…. .
In order to achieve that objective, this thesis will answer the following questions:
▪ “What are factors affecting online purchase intention on Lazada?’
▪ Among the factors identified, how is the impact degree of factors on the purchasing
decisions of consumers in Lazada.vn?
▪ Do personal characteristics influence the decision to buy online at Lazada.vn? If yes,
then how are their impact?
Objectives:
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● To analyze the scientific literature that focuses on the scientific approach to online
shopping as well as e-commerce and factors that encourage such shopping.
● To perform the survey with people who shop online to distinguish the factors that
encourage online shopping on Lazada
● To make proposals and recommendations on using the main factors contributing to
shopping online on Lazada.
3. Research methods and survey
The study wasconducted through two main phases:Initial preliminary research through qu
alitative research methods and formal research through quantitative research methods.
Qualitative research with hand-to-hand discussion methods. Purpose of this method is used
to adjust and supplement the observed variables of the factors affecting to online buying
intention, build and complete the interview sheet.
Formal research is carried out via quantitative research methods, using personal interview
by questionnaire to collect data via Google form. The data collected will be processed using
SPSS 20.0 software. The items after being deleted by Cronbach’s alpha will be used to
analyze Pearson correlation, Regression analysis to measure the impact degree of each item
on online buying intention. Lastly, we will use T-tests and ANOVA tests to determine the
difference in research results for each individual group.
4. Research contribution
In the past research, firstly it was observed that most of the earlier research on the topic
“Online Buying behavior” were quantitative studies. We could not find exclusive
qualitative research on this topic. Qualitative research is used to discover what sensory
feelings are important for customers and such feelings cannot be uncovered by quantitative
research (Malhotra and Dash, 2009). Hence, our study is an attempt to address this first gap.
Moreover, from our research, Lazada can improve its systems as well as strategies to meet
the customer’s demand
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II) Questionnaires
A. General Information
1. What is your gender?
Male
Female
Other:
2. How old are you?
Under 18
18-34
35-55
Over 55
3.Where do you live?
Urban
Suburban
Countryside
4.How much is your income?
<5.000.000 VND
5.000.000 VND – 10.000.000 VND
10.000.000 VND – 15.000.000 VND
>15.000.000 VND
5. How much do you usually spend to buying on E-commerce per month?
<1.000.000 VND
1.000.000 VND – 3.000.000 VND
3.000.000 VND – 5.000.000 VND
>5.000.000 VND
6. Have you ever bought something on Lazada?
Yes
No
7. If yes, how often do you shop online on Lazada?
Never
Rarely
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Occasionally
Sometimes
Often
Always
B. 8 factors affecting buying decision on Lazada
a) Trust (1= totally disagree, 2=disagree, 3=neutral, 4=agree, 5=totally agree)
1 2 3 4 5
b) Return policy (1= totally disagree, 2=disagree, 3=neutral, 4=agree, 5=totally agree)
1 2 3 4 5
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It takes a long time for orders to be returned to
sellers on Lazada.
1 2 3 4 5
1 2 3 4 5
8
Lazada customer service responded promptly
to my inquiries.
1 2 3 4 5
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Throughout the refund process, Lazada's Help
Center personnel assisted me by answering my
queries passionately and immediately.
1 2 3 4 5
1 2 3 4 5
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Discount when using cashless payment promotes
your experience on Lazada
h) Perceived ease of use (1= totally disagree, 2=disagree, 3=neutral, 4=agree, 5=totally
agree)
1 2 3 4 5
k) Buying intention (1= totally disagree, 2=disagree, 3=neutral, 4=agree, 5=totally agree)
1 2 3 4 5
I've been shopping on Lazada.vn more when I
have demand
I am confident in my shopping decisions on
Lazada.vn
I've recommended for at least a person I know to
buying online on Lazada
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I will continue using Lazada when shopping
online
I prioritize Lazada for my future online
transactions
C. Depth interview
➢ Describe yourself in one word
➢ Tell me about an interesting experience or encounter you’ve had recently
➢ What annoys you the most when shopping online?
III) Data analysis
1. Descriptive analysis
Data was collected via questionnaire including 2 main parts: general information and the
factors affecting buying intention on Lazada. After deleting invalid answers (inadequately
answered all questions, answered uniformly with one answer, not eligible to participate in
the answer), we collected 91valid answers to analyze quantitative by using SPSS.
Characteristics of 91 answers are gathered in the table below.
Factors Characteristic Frequency Percent
Gender Male 18 19.8
Female 73 80.2
Sum 91 100
Age Under 18 4 4.4
18-34 75 82.4
35-55 12 13.2
Sum 91 100
Address Urban 60 65.9
Suburban 5 5.5
Countryside 26 28.6
Sum 91
Income <5,000,000 VND 65 70.3
5,000,000 VND- 18 19.8
10,000,000 VND
12
10,000,000 VND- 5 5.5
15,000,000
>15,000,000,000 4 4.4
VND
Sum 91 100
Spending on online <1.000.000 vnd 73 80.2
buying/month
1.000.000 VND – 14 15.4
3.000.000 VND
3.000.000 VND- 3 3.3
5.0000.000 VND
>5.000.000 VND 1 1.1
Sum 91 100
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variable are internal consistency and not conflict with each other. If research has several
Likert questions in the questionnaire, it is important to assess if the scale is reliable. It is
common to use Cronbach's alpha in this situation. The value of alpha ranges between 0 - 1.
The acceptable value that all the items in a variable are consistency is in the range of 0.5
Theoretically, the greater the value, the better the case, but not always. If the Cronbach's
Alpha coefficient of is so high (about 0.95 or more), it shows that the scale has multiple
variables that do not differ at all, and this phenomenon is referred to as duplication or
redundancy. Therefore, it is preferable if the alpha is in the 0.5-0.95 range, the alpha below
0.5 can be viewed as low reliability and more than 0.9 can be considered the best
2.1. Trust
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2.6. Convenience of payments
2.7. Promotion
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RP3 13,68 7,731 0,433 0,635
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Cronbach’s Alpha: 0,929
Cronbach’s Alpha:0,874
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Perceive of use PEU1 14,15 11,332 0,773 0,898
9 factors all have Cronbach’s Alpha coefficient that is from 0,6 and 0,936. It means that
items that are used to measure a variable are good internal consistency and not conflict with
each other and duplication or redundancy doesn’t happen. Corrected Item - Total
Correlation of all items are greater than 0.3, ranged from 0,371 to 0,909. Hence, all items
of 9 factors are accepted, none of 9 factors is deleted.
3. Correlation Analysis
Correlation analysis was performed between the dependent variable, which is the Buying
Intention, and the independent variables: Trust, Return Policy, Delivery Service, Customer
Service, Money Back Guarantee, Convenience of Payments, Promotion, and Perceived of
Use. Furthermore, we analyze the correlation between the independent variables to detect
close correlations between the variables, as such correlations can strongly influence the
results of regression analysis, such as causing multicollinearity.
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Correlations
Pearson
.626*
Correlati 1 .551** .693** .675** .431** .386** .565** .558**
*
on
Trust
Sig. (2-
.000 .000 .000 .000 .000 .000 .000 .000
tailed)
N 91 91 91 91 91 91 91 91 91
Pearson
.626*
Correlati * 1 .535** .578** .557** .429** .442** .431** .532**
on
Return Policy
Sig. (2-
.000 .000 .000 .000 .000 .000 .000 .000
tailed)
N 91 91 91 91 91 91 91 91 91
Pearson
.551* .535*
Correlati * *
1 .723** .724** .580** .278** .481** .966**
on
Delivery Service
Sig. (2-
.000 .000 .000 .000 .000 .008 .000 .000
tailed)
N 91 91 91 91 91 91 91 91 91
Pearson
.693* .578*
Correlati * .723** 1 .832** .585** .477** .585** .690**
*
Customer on
Service Sig. (2-
.000 .000 .000 .000 .000 .000 .000 .000
tailed)
N 91 91 91 91 91 91 91 91 91
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Pearson
.675* .557*
Correlati * *
.724** .832** 1 .612** .383** .560** .707**
Money Back on
Guarantee Sig. (2-
.000 .000 .000 .000 .000 .000 .000 .000
tailed)
N 91 91 91 91 91 91 91 91 91
Pearson
.431* .429*
Correlati * *
.580** .585** .612** 1 .446** .675** .580**
Convinie-nce of on
Payments Sig. (2-
.000 .000 .000 .000 .000 .000 .000 .000
tailed)
N 91 91 91 91 91 91 91 91 91
Pearson
.386* .442*
Correlati * .278** .477** .383** .446** 1 .487** .296**
*
on
Promotion
Sig. (2-
.000 .000 .008 .000 .000 .000 .000 .004
tailed)
N 91 91 91 91 91 91 91 91 91
Pearson
.565* .431*
Correlati * .481** .585** .560** .675** .487** 1 .500**
*
on
Perceived of Use
Sig. (2-
.000 .000 .000 .000 .000 .000 .000 .000
tailed)
N 91 91 91 91 91 91 91 91 91
Pearson
.558* .532*
Correlati * .966** .690** .707** .580** .296** .500** 1
*
Buying Intention on
Sig. (2-
.000 .000 .000 .000 .000 .000 .004 .000
tailed)
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N 91 91 91 91 91 91 91 91 91
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Model R R Adjusted R Std.Error of the Durbin-
Square Square Estimate Waston
Total 38.702 90
The ANOVA table gives us the results of the F test to evaluate the hypothesis of fit of the
regression model. Sig value of test F = 0.000 < 0.05, so the regression model is suitable
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Model Unstandardized Standardized Sig Collinearity
Coefficient t Statistics
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buying intention on policy, they have
Lazada intention to buying on
Lazada
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customers’ buying perform higher
decision in Lazada shopping behavior.
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5. One-way Anova
5.1 BI with gender
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Hypothesis H2: There is no difference in the purchasing decision of consumers by age.
From the results of One-way ANOVA test of the shopping decision by age, the Levene
statistic shows the value Sig.=0.581 > 0.05, showing that the variance between the age
groups is uniform and the ANOVA test results for the value Sig.=0.548 > 0.05 means there
is no basis to reject hypothesis H2. As such, there is no difference in Shopping Decisions
by age.
5.3 BI with income
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Sig.=0.730>0.05; This means that there is no basis to reject hypothesis H3. Thus, there is
no difference in terms of Shopping Decisions by Income.
5.4 BI with address
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very strong relationship with the buying intention with respect to the online buying in
Lazada.
The research shows that Delivery Services have the strongest impact on the online buying
intention of Vietnamese customer on Lazada. It is a combination of delivery fee, delivery
time, and delivery reception (Nguyen et al. 2019). Survey results show that consumers will
shop more when they see benefits in terms of delivery, for example, customers may have
more intention to buy if they get free shipping. Besides, consumers also have very high
requirements on the speed, safety and attitude of delivery man. It can be said that the
Delivery Services factor has a close relationship with the online shopping experience and
is a factor that directly affects the purchase intention. Therefore, in order to enhance online
consumers' shopping decisions, Lazada needs to focus on factors related to delivery to
attract consumers. Lazada may offer free shipping programs in the form of “golden hours”,
vouchers, etc. Besides, it is to simplify the delivery process, avoid cumbersome procedures
that cause delays in the delivery process, and always improve the delivery team.
In the research model, the Customer Services factor has the second largest impact on the
buying intention. Customer service affects purchase decisions through vendor knowledge,
responsiveness and reliability (Baker, Levy, & Grewal, 1992; Gefen, 2002). It can be
achieve by running a discount campaign for those who have not purchased on Lazada for a
long time in order to encourage them to purchase. By giving away the discount vouchers or
discount codes, Lazada may be able to compete with other competitors in the marketplace.
Services provided to customers that are also very important and excellent services may
retain the loyalty of customers to use the platform continuously. Not only that, Lazada can
also have a small gift for their customers who had spent more than a specific amount in a
particular period. In addition, Lazada can launch an event for around one month and
encourage their customers to purchase more by giving a small gift.
The survey results also show that customers' purchasing decisions are strongly influenced
by the Trust factor, when customers' confidence in goods and suppliers is high, the ability
to make their purchases is very large. Additionally, in order to run a successful Lazada shop,
e-retailers need pay closer attention to the Trust factor and consider how it may be cultivated
and how it affects online purchase intention. In order to spread the intention of online
shopping, Lazada businesses and the Lazada platform should pay special attention to
building trust in the minds of online buyers. Providing complete assurances, outlining clear
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privacy rules, conveying brand repute, and establishing connections with people who
already have the clients' trust are further strategies that are advised (Stewart, 2003).
In addition to the three factors above, the study also shows that the factors that have a
positive effect on buying intention on Lazada are: Perceive of Use, Promotion, Money Back
Guarantee, Convenience of Payment and Return Policy. In order to establish Perceive of
use, investing in web presence carefully in terms of form, features and content is extremely
important. In addition, promotion campaign on billboards, TV commercials, social media
or endorsements also contribute to increasing purchase intention on Lazada. Along with that
is the convenience and reasonableness in the Money Back Guarantee, Convenience of
Payment and Return Policy.
Difference between the
Previous Research Result of the Research Research and our
Research
The Influence of Trust, Security - The three main - This research shows that
and Service Quality toward influencing factors in the Delivery service has the
Purchase Decision at Lazada research model include: strongest imoact on
(Prasetyo, 2018) Trust, Security and customers’ buying
Service Quality intention at Lazada.
-Trust is the factors has - This research also
the strongest impact. specified service quality
into delivery service and
customer service.
Factors affecting c’stomers' Online word-of-mouth is The research not include
purchasing decision at the factor that has the the impact of online
ecommerce platform Lazada.vn strongest impact on word-of mouth but
(Le,2018) consumers' purchasing combines it with the
decisions. promotion factor.
2. Implications
The research paper has a certain contribution in theory and practice in the field of e-
commerce, especially with the Lazada platform.
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2.1. Study implications
By developing a research model on the factors influencing customers' purchasing intention
at Lazada, this study has led to the development of a more scientific literature in the area of
online shopping.
2.2. Pratical implications
Our research provides relevant implications for practice. The research has given Lazada
Vietnam online retailers a more detailed understanding of customer attitudes towards online
buying by identifying the elements influencing consumers' purchasing intention at Lazada.
Because this study was conducted on a specific topic (Lazada), its findings are quite
applicable. Online merchants may use the research's suggestions to encourage their online
clients to make purchases.
3. Limitations and future research directions
The study didn't fully capture customer behavior because it only polled a tiny sample of
Lazada users (91 samples). As a result, the following line of inquiry may be conducted using
a bigger sample size, probability sampling, and object categorization to improve the study's
generalizability.
Besides, 69% of the variance in Buying Intention can be explained by Trust, Return Policy,
Delivery Service, Customer Service, Money Back Guarantee, Convenience of Payment,
Promotion, Perceived of Use. To complete the picture, more factors influencing buying
intention need to be researched and incorporated, although up to 31% of the variance in
buying intention is still unexplained.
4. Conclusion
In this study, we developed and tested a theoretical model that explains factors that
influence the intention of purchasing at Lazada. By combining other prior research in this
field and our findings from analyzing data with 91 observations, we found that delivery
service, customer service and trust are the three factors that give stronger impact on the
decision of buying online in Lazada compare to others. Thus, it is necessary to focus on
boosting the quality of service in order to attract customer to buy.
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