FACTORS AFFECTING CUSTOMER SATISFACTION IN VIETNAMESE LOGISTICS COMPANIES

VIETNAM NATIONAL UNIVERSITY, HANOI
VIETNAM JAPAN UNIVERSITY

NGUYEN THI HONG HANH

FACTORS AFFECTING CUSTOMER
SATISFACTION IN VIETNAMESE
LOGISTICS COMPANIES

MAJOR: BUSINESS ADMINISTRATION
CODE: 8340101.01

RESEARCH SUPERVISORS:
Prof. MONONARI TANABU
Assoc. Prof. PHAN CHI ANH

Hanoi, 2022

1


COMMITMENT
I have read and understood the plagiarism violations. I would like to declare that my
Master’s thesis of "FACTORS AFFECTING CUSTOMER SATISFACTION IN
VIETNAMESE LOGISTICS COMPANIES" is the product of my research and has
never been published in any other work. I pledge with personal honor that this research
result is my own and does not violate the Regulation on prevention of plagiarism in
academic and scientific research activities at VNU Vietnam Japan University (Issued
together with Decision No 700/QĐ-ĐHVN dated 30/9/2021 by the Rector of Vietnam
Japan University).
Hanoi, 28th May 2022

Master Student

Nguyen Thi Hong Hanh

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ACKNOWLEDGEMENT
This master thesis is a fantastic opportunity for me to see how I can utilize the
knowledge and abilities I gained throughout my two years at university. I'd like to
express my gratitude to everyone who helped me accomplish this study.
First of all, I wish to express my sincere gratitude to my supervisors, Prof. Dr.
Motonari Tanabu and Associate Prof. Dr. Phan Chi Anh who gave me valuable advice
and orientation to complete my thesis. This research would not have been completed
without their guidance, patience, sympathy, motivation, and valuable feedback, all of
which have helped me enhance my study.
I am grateful to Prof. Dr. Matsui Yoshiki, Prof. Dr. Kurata Hisashi and Prof. Dr.
Sadami Suzuki for their useful guidelines and motivation during seminars and the
research process.
I want to express my deepest thanks to Vietnam Japan University (VJU) - Vietnam
National University (VNU), Hanoi, and Yokohama National University (YNU) has
provided me with an excellent opportunity to expand my research knowledge and
skills.
I am also thankful to VJU officers, YNU IPO employees, all Professors, Japanese
companies and Vietnamese companies, especially Ms Huong - MBA program
assistant, those who motivate, encourage and support me to overcome difficult times to
accomplish the research.
Last but not least, I would like to express my heartfelt gratitude to my family, friends
and classmates for constantly motivating me and providing me with invaluable support
while I completed the challenging task of finishing the paper.

Thank and Best Regards,

Author
Nguyen Thi Hong Hanh
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ABSTRACT
Vietnam will become one of the world's most developed e-commerce markets. This
type of market and e-retailers will attract more customers. In this market, however,
there have been numerous challenges and issues. The effects of logistics service
quality on customer satisfaction were investigated from the consumer's perspective in
order to identify the important logistical aspects affecting consumer satisfaction. The
findings of research identified four factors that influence positively customer
satisfaction regarding the quality of logistics services in e-commerce in the order of
descending strength. The findings show that delivery service quality and staff service
quality have favorable effects on customer satisfaction, while communication service
quality and after-sales service quality have less impact. In addition, there are
substantial differences in demographic factors (including gender, age, income, and
academic level) regarding customer satisfaction in the context of Vietnam.

Key words: customer satisfaction, e-commerce, e-retailer, service quality, logistics
service, demographic, Vietnam

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TABLE OF CONTENTS

5

LIST OF TABLES

6


LIST OF FIGURES

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LIST OF ABBREVIATIONS
AS:
CO:
CSR:
DE:
LSQ:
PDSQ:
SQ:
SS:

8

After-sale service quality
Communication service quality
Customer satisfaction
Delivery service quality
Logistics service quality
Physical distribution service's quality

Service quality
Staff service quality


CHAPTER 1. INTRODUCTION
1.1. Research Background
Vietnam is becoming a land of opportunity for multinational E-commerce enterprises
because the internet and smartphone are growing more prevalent in its young
population with high penetration rate. According to the Vietnam E-commerce
Association (VECOM), the growth rate of e-commerce reached around 25% in 2017
and this rate may remain unchanged in the next three years. This has a direct impact on
habits and behaviors of the majority of consumers, particularly those who are busy,
have chosen to use the online purchasing service from e-retailers. The percentage of
Internet users that do their shopping online is 62%, which was reported by the
Ministry of Industry and Trade's Vietnam E-Commerce and Information Technology
Agency (VECITA). This information demonstrated that the e-commerce market in
Vietnam is attractive and has a lot of land for growth.
Vietnamese businesses in the competitive e-commerce market go to tremendous
measures to increase website visitors. Improved brand recognition and improved
conversion rates result from more website visitors, and these factors (including
logistics service) ultimately increase revenues. E-commerce logistics services make it
easier to deliver goods and communicate information about consumer orders in realtime. These services assist the flow of products through the transaction cycle, from
order to check-out, communication, packing, delivery, payment tracking, staff services
and after-sales services. The substantial expenditures in e-commerce logistics are
anticipated to accelerate the industry's expansion. There are many studies about
logistics sector. There are about 425 businesses providing delivery services in Hanoi,
in which, Vietnam Post Corporation (Vietnam Post) is hired by 61% of online sales
units; followed by Viettel Post Company (Viettel Post) with the rate of 25% (according
Vietnam logistics report 2019) ... Although certain successes have been achieved, the
quality of logistics services at express delivery enterprises still has some shortcomings

and limitations. In addition, scholars have recently focused more on the evolution of ecommerce and provided numerous valuable results for society. Despite its rapid
growth, Vietnam's e-commerce business still confronts challenges. Some main
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obstacles can be mentioned including: poor product quality, shipping services are
weak, online payment professionalism is lacking, as is data confidentiality, hard to
order online and so on (Giao, 2020). The majority of these challenges have led in a
great deal of difficulty for the e-commerce field and for these type companies, such as
Lazada, Tiki, Shopee, Sendo..., because they haven't gained a high level of client's
trust and satisfaction, which has resulted in a lack of growth. As a result, research into
customer satisfaction with the quality of online services is critical.
Consumer satisfaction is a subjective assessment of any result or experience related
with the buying of goods by a customer (Westbrook, 1980). Client satisfaction
typically leads to good effects for e-commerce enterprises (Zeithaml, 2000), for
example higher revenue, increased customer retention, and excellent word of mouth.
Furthermore, Bhattacherjee (2001) debated that consumer satisfaction in B2C ecommerce is more difficult than in traditional shopping because clients are more
becoming more discerning, have the knowledge they require to make their own
judgments, and expect their non-purchase must be met right away, flawlessly, and with
no cost. In this field, it is vital for e-commerce companies to know consumer needs
and recognize the elements that influence customer satisfaction.
Flow of information, flow of capital, and commercial flow is all easy in e-commerce,
thanks to high-efficiency and fast information interaction technology, whereas offline
logistics should be managed. One of the most important supporting platforms, the
logistics platform not only serves as the final connection in e-commerce operations,
but it also plays a crucial part in their outcome. Through collaboration with
professional logistics providers, ecommerce enterprises and shop owners supply
clients with crucial logistical services, and that is the only way for networking
businesses to effectively touch customers. Consumer perception and behaviors are
significantly influenced by this opportunity.

In fact, consumers have not shown a high degree of trust and contentment with ecommerce and e-retailer business because the quality of logistics services and the
massive network purchasing amount does not correspond. The shopping experience of
customers has been significantly impacted by the primary barriers in logistical
services. Exploring whether components of logistics services have a substantial impact
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on consumer pleasure is useful since it can aid in improving logistics service quality
and promoting ecommerce growth. There has been an increase in interest among
academics in studying the development of e-commerce, although studies like
Kussusanti, Tjiptoherijanto, Halim & Furinto (2019) and He & Wang (2019) did not
focus on client pleasure or have a Vietnamese focus (Giao, 2020). Numerous studies
have investigated service quality issues, although they have primarily concentrated on
the online and logistics aspects. In addition, Vietnamese context has been the subject
of few studies examining the relationship between the logistics aspects of e-commerce
and customer satisfaction. Therefore, the aim of this study is to focus on customer
satisfaction about the quality of logistics services in the e-commerce field in Vietnam.
1.2. Research Objective
Currently, very few studies in Vietnam have examined the connection between the
quality of e-commerce logistics and customer pleasure. So, the purpose of this study is
to provide a contribution to empirical research on the topic of identifying key
elements, including demographics elements, for customer satisfaction.
This study focuses on investigating the two following targets:
+ To examine how the quality of communication service, delivery service, aftersales service, and staff service affect customer satisfaction in the e-commerce field.
+ To examine the influence of different demographic factors on the connection
between the quality of logistical services and the level of satisfaction experienced by
customers.
The purpose of this research is to examine the impact of logistics service quality on the
level of customer satisfaction in the e-commerce sector in Vietnam. The study also is
to answer a pertinent research question: Which factors have significant impact on

customer satisfaction in terms of logistics service quality on e-commerce activities in
Vietnamese settings.
1.3. Research Scope
Because of limitations in terms of survey scale, only online customers who are
purchasing products through app or website that will conduct survey. Besides, during

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the covid pandemic there were several lockdowns between cities in the whole nation,
so that people and vehicles (including trucks, bus, trains, airplane and so on) could not
operate as usual. To meet the basic requirement from customers at that time, ecommerce companies, e-retailers and shippers had to arrange resources to ensure
health safety, commodities, time delivery and respond quickly with each situation.
Therefore, the study will investigate customer satisfaction with the logistics service
quality in e-commerce field in the Vietnam context.
+ The study's subject will be the online customers who have experienced
purchasing items from e-commerce providers and e-retailers in Vietnam.
+ The scope of this paper: The paper will be performed in the Vietnamese ecommerce sector to examine which factors of logistical services have significant
impact on client pleasure.
Vietnam e-commerce is growing rapidly so people of all ages and backgrounds are
welcome to take part in this study. Vietnam is considered as a potential destination or a
promising land for investors in the next coming year, which will lead to create more
jobs, increase salary and higher education for million youngsters at golden ages, who
prefer to purchase online and require high quality of service. This research is
performed around 7 months, from October 2021 to May 2022. The period of collecting
data from May 10th, 2022 to May 20th, 2022.
1.4. Structure of research
This study is divided into five chapters, which are described in further detail below:
Chapter 1. Introduction
The purpose of this chapter is to provide background information on the theoretical

and practical issues that motivated the investigation.

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Chapter 2. Literature Review
This part will provide an outline regarding the theoretical importance of the present
study to suggest the hypothesis and framework model.
Chapter 3. Research Methodology
An overview of the study process is provided in this section, as well as a look at the
sampling and data gathering methods and scales.
Chapter 4. Data analysis
In this chapter, the author will conduct an analysis of the results obtained from the data
gathering.
Chapter 5. Discussion and conclusion
The results of the investigation will be discussed, along with some suggestions, in this
section. The author will discuss the restrictions that were placed on the research.

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CHAPTER 2. LITERATURE REVIEW
2.1. Ecommerce and e-retailer
E-commerce on the Internet entails a wide range of pre- and post-sales activities, such
as

promoting,

preserving

business

relationships,

and

improving

business

communication, in addition to merely buying and selling electronically (Zwass, 1996).
According to Ranganathan & Ganapathy (2002), one of many e-commerce models,
business-to-consumer electronic commerce (e-retailer), is an efficient way for
businesses and their customers to conduct online transactions using Internet-based
technologies. The rise of e-retailer activity has necessitated a better understanding of
how and why people purchase online. So, e-retailer can improve consumer satisfaction
by offering a variety of benefits such as ease, personalized information, a wide range
of product information... (Verhoef & Langerak, 2001; Park & Kim, 2003), as well as a
high level of service quality and excellent logistics service.
In e-commerce transactions, the significance of trust between buyers and unknown
suppliers has been confirmed by empirical study (Hoffman, Novak & Kalsbeek, 1999;
Shankar, Sultan & Urban, 2002). Because online trust is such a crucial aspect of ecommerce and shop owners, hence it is linked to their success. E-commerce merchants
and consumers may have differing perspectives on the role of assurance procedures.
Therefore, understanding customer's needs, guaranteeing good service quality,
responding quickly and solving issues effectively will lead to the success of e-retailers.
The definition of e-commerce following the Decree 52/2013/ND-CP (Vietnam) that is:
“E-commerce involves conducting part or all of a commercial transaction via the
Internet, a mobile network, or another open network”. With a compound annual
growth rate (CAGR) of 32.3% from 2013-2017, Vietnam now has one of the fastest
growing business-to-consumer (B2C) e-commerce sectors in Southeast Asia. This

growth rate translates to a market size of 5.5 billion euros in 2017. It is anticipated that
the E-commerce market in Vietnam will keep expanding at a high pace, achieving a
compound annual growth rate (CAGR) of 14% between 2017 and 20f, and eventually
making up 5.2% of the country's total retail sales. Despite E-relatively commerce's low
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market share, Vietnam's shift from traditional to online shopping seems inevitable,
given the country's young (i.e., Millennials, born between 1981 and 1996; and
Generation Z, born between 1997 and 2010), tech-savvy population and widespread
use of smartphones. A great number of businesses, both domestic and foreign, are well
aware of the possibility presented here, and as a result, they have made large
investments in order to obtain the first-mover advantage.
2.2. Service quality and logistics service quality
Since Grönroos (1982) developed the notion of service quality, it has grown in
importance as a research issue in the literature on marketing. The quality of the service
provided is an essential component of the way customers perceive a company
(Takeuchi and Quelch, 1983). The clients evaluate the characteristics of quality service
based on how well those characteristics match up to their expectations and how well
the service really performs (Lewis and Booms, 1983; Parasuraman et al., 1985, 1988;
Gronroos, 1987; Mackay and Crompton, 1990). Furthermore, a conceptual model
known as the GAP model that was proposed by Parasuraman et al. (1985) and
improved in their future efforts has mainly motivated research on service quality
(Parasuraman et al., 1988, 1991). Generally, "a comparison of consumer expectations
with actual service performance" can be used to determine service quality
(Parasuraman et al., 1985, p. 42). In addition, the goal of providing high-quality
service is to ensure that customers are happy with the assistance they receive, so that
they will have a constructive outlook on those services (Ostrowski et al., 1993). When
it comes to attracting more customers, a service provider should place a primary
emphasis on the quality of the service they give (Backman and Veldkamp, 1995).

Overall customer appraisals and opinions of the quality of online service delivery in
the internet shopping context are referred to as service quality (Santos, 2003). In terms
of online consumers, e-service quality has become a critical factor. For online
providers, e-service quality can serve as a differentiator and encourage customers to
shop online. Furthermore, past research on online buying has demonstrated that the
quality of an e-service has an impact on consumer satisfaction and, as a result,
indirectly promotes customer loyalty (Jain & Sareen 2015; Ludin & Cheng, 2014).

15


Therefore, e-service quality is widely acknowledged as having a significant impact on
customer satisfaction and online clients' purchase intentions.
Logistics services, that is defined by FIATA in 2004, is type of services relating to the
carriage (performed by multimodal transport or single-mode), in relation to
consolidating, transporting, managing, packaging, or distributing goods, or
supplementary and consulting services, including but not limited to customs and fiscal
matters, officially declared the goods, provision of goods insurance, and processing or
acquisition of payment or goods documentations. In the online buying environment,
logistics services are inextricably linked to customers. Customers' post-purchase
evaluations reveal how important logistics service quality is to them. According to
studies, the quality of service has a significant impact on customer satisfaction.
Logistics service and quality, as one of the most crucial linkages in online buying,
have a favorable impact on consumer satisfaction. As a result, providing thorough,
punctual, and dependable logistics services can effectively boost customer satisfaction.
On the basis of the duration and procedure of logistics services, Mentzer and his team
developed an LSQ model in their study in 1999 and 2001 as the following figure with
nine dimensions (personnel contact quality, order release quantities, information
quality, ordering procedures, order accuracy, order condition, order quality, timeliness,
and order discrepancy handling):

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Figure 2.1: Hypothesized Model of LSQ as a Process
Sources: Logistics service quality as a segment-customized process, Mentzer et al,
2001
This model was developed to investigate the link between the quality of logistics
services in several aspects and examine how each one affects customer satisfaction in
various market segments. Following studying logistics services after online
transactions, BianWenliang et al. concluded that consumer pleasure was significantly
influenced by perceptions of logistics service aspects, indicating that enhancing
logistical quality of service is critical for B2C online shops to acquire market share.
Although findings from the 1970s show that logistical service quality is hard to
quantify, especially in the online purchasing context. In the business-to-customer
sector, the availability of product, delivery time, and the quality of delivery are three
B2C characteristics that can be used to evaluate the physical distribution service's
quality of supply chain (PDSQ, Mentzer et al., 1989). Third-party logistics (3PL)
providers play an important role in e-commerce because they can either deliver the
items themselves or outsource it to companies that specialize in this type of service
(Semeijn et al., 2005). Inadequate research on logistics' contribution to online
shopping and the success of e-retailers chain has led to a lack of appreciation for its
significance and functions (Semeijn et al., 2005; Xing et al., 2011). In addition to the
basic three pillars of existence, timing, and condition, an e-PDSQ evaluation form
includes return goods to evaluate how the e-retailers handles broken, unsuitable, or
defective products (Xing & Grant, 2006; Xing et al., 2011). If e-retailers are able to
verify the timeliness and comprehensiveness of after-sales approaches to address these
issues, this can aid online customers with better experience and increase their level of
contentment.
In contrast, there are three result pillars to consider when evaluating PDSQ for B2B

purposes: existence, timing, and condition (Bienstock et al., 1997). The PDSQ
framework was expanded by Mentzer et al. (1999), who included numerous new
elements to address the ordering and receiving processes. Mentzer et al. (2001) used a
US organization called DLA to further develop and evaluate the level of quality
offered by their logistics service scales. Mentzer et al. (2001) developed a paradigm of
17


service quality, which Collier and Bienstock (2006) used to develop a paradigm of eservice quality. Instruments for measuring logistics service quality developed by
Mentzer et al. (2001), which were examined by Rafiq and Jaafar (2007) in the context
of the UK 3PL business, and the instruments were determined to be valid and reliable.
There have been numerous studies on the subject of logistics service quality looking at
the connection between various quality components and how satisfied customers are
with such services. Many scholars have emphasized the favorable outcome of
logistical service quality on consumer pleasure, recommending that enterprises should
adapt their logistical services to the needs of diverse client segments (Mentzer et al.,
2001). Customer pleasure is clearly, positively, and significantly influenced by the
quality of logistics services (timing, personnel, information, and order quality),
according to Saura et al. (2008). Furthermore, Bienstock and Royne (2010) discovered
that the quality of logistics services is a major influence in industrial clients'
satisfaction with this type of service. Communication has been introduced as the fourth
factor to emphasize the significance of order status information in the process of
elevating the quality of service (Emerson & Grimm, 1996). Personal interaction
quality, for instance, has a beneficial impact on customer pleasure and buying habits
(Bode et al., 2011). As a result, the quality of the personnel contact that is had with
customers is an essential component of the employee–customer interface (Hartline &
Ferrell 1996; Hartline et al. 2000), and the perceptions of service quality are more
closely related to the service procedure, which requires interpersonal contact, than the
end result of the service (Surprenant & Solomon, 1987). Several studies showed that
the good quality of staff service can aid clients with information that is both accurate

and up to date. Consistent training for all employees could improve their manners,
etiquette, and ability to communicate (Krishna Naik et al., 2010).
2.3. Customer satisfaction
There are many definitions of customer satisfaction. Customer satisfaction was
described by Chang et al. (2009) as the customer's psychological reaction to his or her
previous experience with the comparison of expected and perceived performance.
Satisfaction is defined as a person's feeling of fulfillment as a result of weighing the
benefits of the product against his or her aspirations (Kotler & Amstrong, 2004). The

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provision of quality service to clients is essential to the successful operation of any
business (Denizci and Li, 2009; Morgan et al., 2005). Providing satisfied customers is
the result of providing good service to customers. Besides, the level of satisfaction
experienced by one's clientele is an essential factor in the overall quality assessment
(Grigoroudis and Siskos, 2010). The degree to which an organization satisfies its
clients is one of the factors that determines its level of success (Luo and Homburg,
2007), as well as being a factor in the evaluation (Morgan et al., 2005) of the
company's competitiveness. Additionally, the degree to which customers are pleased
has a beneficial effect not only on the rate of return on investments, the return on
assets (Zeithaml, 2000; Rust et al., 2002), but also the net profit (Manafi et al., 2011).
When compared to the expense of maintaining and supporting an existing client base,
the process of acquiring new customers is five times more expensive (Kotler et al,
2016). A customer's level of satisfaction with goods or services is measured by their
emotional response to their experience with it, according to Bachelet (1995).
Moreover, consumer satisfaction is the response of customers to their aspirations being
satisfied (Oliver (1997). Therefore, satisfaction refers to a client's contentment with
goods or services that meets their requirements, encompassing both above and below
the ideal degree of satisfaction (Giao, 2018; Giao, Vinh & Hoai, 2019).

Zeithaml et al., 1996; Olorunniwo et al., 2006; Kitapci et al., 2013) did numerous
studies on the relationship between service quality, customer satisfaction, and
customer loyalty. Delivering high-quality service promotes organizational branding
and offers exceptional customer experiences (Parasuraman et al., 1988), and according
to some studies, perceived service quality either has a positive impact on or is a
predictor of customer pleasure (Lee et al., 2000 Tam, 2004; Pan et al., 2010).
Additionally, customer pleasure has been proven in numerous studies to have direct
effects, and possibly indirect ones as well, on the loyalty of clients (and consequently
intentions of client's behavior), such as repurchase intent and recommendations
through word-of-mouth (Zeithaml et al., 1996; Cronin et al., 2000; Ladhari, 2009);
positive behavior, in fact, has a significant effect on profits (Zeithaml et al., 1996,
2000; Cronin et al., 2000; Ladhari, 2000). The criteria of service quality in the
traditional business setting (such as cleanliness and comfort) are no longer applicable
in the e-commerce scenario (Cox & Dale, 2001); therefore, more studies on the
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predictors of service quality in the context of e-commerce and e-retailer setting is
required. Many studies have looked into service quality problems, but many have
focused on the online (Santos, 2003) and logistics (Mentzer et al., 1989) experiences
of clients independently. Nonetheless, a limited number of studies have looked at the
connection between the various aspects of logistics service quality and client pleasure
from the customer's perspective. This research intended to bridge the gap and
investigate from the customer's perspective in the following sections.
2.4. Demographics in Vietnam and Covid pandemic
Vietnam is currently ranked 15th in terms of total population and is one of the world's

highest population densities because in the decades of the 1960s and 1970s saw a
significant rise in Vietnam's overall population. Despite the fact that more than half of
Vietnamese citizens were under 35 years old in that year, the country's population is

rapidly aging. However, the population does not appear to be spread out uniformly
across the nation. Economic activities such as farming and fishing have historically
contributed to a high population density in both the Red and Mekong river deltas.
Due to the country's cultural preference for men, Vietnam has one of the most skewed
gender ratios among Asian countries (according to Vietnam online). When looking at
the population pyramid of Vietnam in the year 2020, it is easy to see that the bottom
bars, which represent the group of toddlers, have a significantly higher proportion of
males than females. In general, despite the fact that Vietnam is reaping enormous
benefits as a direct result of the golden structure population, there are obstacles that
need to be surmounted in Vietnam is making an effort to broaden its educational
system in light of the country's currently robust GDP growth rate. The estimated
percentage of the national budget allocated to education in 2012 was 6.3%. The
primary objective of education is "enhancing people's general knowledge, training
quality human resources, cultivating and fostering talent "the relatively near future in
order to guarantee the country's continued sustainable growth. Vietnamese business
has benefited from its youthful workforce. In the year 1999, there were 34% of people
in the population who were between the ages of 5 and 19 (according McKinsey's
report). Because of this, 12 million people entered the workforce in the following
decade. Around a third of the country's growth occurred as a result of the labor force
20


expanding at a 2.8% annual rate from 2000 to 2010. Recent years have seen a robust
increase in the proportion of the population that is of working age, which has been a
contributing factor in Vietnam's ability to more than double its GDP per capita.
As incomes increase, living standards increase, people's shopping needs will change.
In 2018, CBRE carried out a survey of 1,000 people in Hanoi and Ho Chi Minh that 25
percent of shoppers intend to cut back on in-person purchases in the future. 45-50%
stated they would purchase online more with a PC, laptop, smartphone, or tablet.
Recent studies have shown that in metropolitan areas, people with higher incomes are

more likely to make purchases online and do so more frequently. Actually, those
between the ages of 23 and 39 make up the largest demographic of online buyers,
likely due to their busy schedules. Because of this discovery, businesses may more
easily target Vietnam's growing middle class with high-end offerings as incomes rise.
In the context of online business in Vietnam, trust is an extremely important factor.
Because the e-commerce business is not yet fully matured, customers have concerns
regarding the products' quality as well as the dependability of the service. According to
a study conducted by iPrice and Trusted Company, which analyzed 30,000 customer
evaluations from across 5,000 websites in Vietnam, Malaysia, Singapore, Indonesia,
and the Philippines, Vietnamese customers have the lowest degree of trust among
consumers worldwide; as a result, Vietnamese customers spend less money shopping
online than customers from other countries. E-commerce companies must ensure they
are obtaining high-quality products and developing robust data protection practices to
safeguard their clients in light of this vulnerability and to satisfy their customers.
There is no economic crisis posed by the COVID-19 pandemic; it is a health crisis
with economic implications only. As we have seen, the most significant danger to the
economy is the failure to contain the virus. The Vietnam government should need to
take the lead in bolstering domestic demand through strategic public investment,
concentrating on projects that contribute to rapid productivity growth, environmental
sustainability, and the achievement of the Sustainable Development Goals (SDGs), in
order to address this situation and create the conditions for the possibility of economic
recovery. It will be necessary for the government to provide direct assistance to certain
industries, such as the transportation and hospitality industries, in order to put these
21


fields in a position where they can resume growing once the appropriate conditions
have been met. At the height of the pandemic, the healthcare services field experienced
the greatest rate of expansion. Next, a positive growth rate in internal wholesale and
retail and trade was recorded despite the presence of the covid pandemic due in part to

the contribution of online commerce.
2.5. Concept model and research hypothesis
Understanding the demands of the consumer has become crucial in a competitive
market. Therefore, businesses have shifted their focus from product to customer. Many
scholars have either studied a product- and customer-oriented perspective or a
technological and client-oriented standpoint in order to discover the important
elements of the market and e-commerce. Long and McMellon (2004) suggested that in
order to attract and keep clients, e-commerce merchants must have a firm grasp of
what online shoppers anticipate in terms of service quality. According to Mentzer et al.
(1991), the client is the aim of logistics service, so defining and evaluating logistics
service quality in terms of consumer needs is a more equitable and practical approach
for decision makers. Hence, the entire procedure from order placement to delivery
completion, as well as after-sales service, is included in this study's logistics service
quality.
The relationship between logistics service quality and customer satisfaction has been
the topic of some research on logistics service quality. Customer satisfaction is
influenced by the quality of logistics services (timeliness, staff, information, and order
quality) (Saura et al., 2008). Many researchers studied logistics service quality (LSQ)
constructs, and showed that they include nine dimensions which are: quality of
personnel contact, order quantities for release, quality of information, processes for
ordering, order precision, order situation, quality order, handling of order
discrepancies, and punctuality, according to Bienstock et al. (1997), Mentzer et al.
(2001), Ribbink et al. (2004), Rafiq and Jaafar (2007), Bienstock and Royne (2010).
Furthermore, in B2B situations, Mentzer et al., (1989) proposed that logistics service
quality (LSQ) should have nine characteristics that are: information quality, order
procedure, order release number, timeliness, order correctness, order quality, product
condition, handling of errors, and communication between personnel. Also, they

22

examine the logical correlations between the nine variables and the level of customer
satisfaction. Moreover, Wei Hua and Zhou Jing (2015) has developed their LSQ
framework with four dimensions that are: communication service quality, delivery
service quality, after-sale service quality and staff service quality, see figure 2.2:

Figure 2.2: The model of e-commerce logistics service quality and customer
satisfaction
Sources: An empirical study on ecommerce logistics service quality and customer
satisfaction, Wei Hua & Zhou Jing, 2015
Communication in traditional shopping will help merchants retain customers; while in
internet shopping, there is no face-to-face interaction, which leads to difficult to
develop relationships between e-retailers and customers. This means that e-retailers
must communicate well with customers, then they can sell products to customers and
be successful in the e-market place. Many researchers pointed out the incorporation of
communication service as one of the aspects of logistics service quality in the
development of the LSQ demonstrates the significance of logistics service quality in
relation to the quality of communication service. Nowadays, most e-retailers have
offered clients communication services through various online service channels such
as email, mobile app, youtube, tiktok, social media and telephone. These tools can
assist e-retailers in anticipating and resolving difficulties that customers may encounter
while purchasing, and enhancing the e-retailers' positive image with customers.
Communication quality was linked to customer satisfaction, according to Mentzer 200,
and communication quality attracted the most attention from customers. Thus, better
communication may improve customer satisfaction. Hence, the following hypotheses
are proposed:
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H1: Communication service quality has a positive relationship with customer

satisfaction.
Quality of service can be defined as the sum of evaluations and judgements made by
customers regarding the quality of e-service delivery in an online purchase
environment (Santos, 2003). Customers' decisions and behaviors may enable eretailers to obtain a competitive edge by delivering real-time services, time-space
effect, and personalized information to customers (Luo & Seyedian, 2003). Delivery
service provides an influence of time and space to logistics and facilitates the change
in ownership of the property of items in ecommerce. Hence, of all the parts of
logistics, delivery services have the most direct interaction with their clients, and are at
the center of both the needs of customers and the logistical services provided.
Delivering well-packed items whose amount and specifications are in agreement with
the order at the specified time and place is what delivery service entails. Additionally,
it necessitates punctuality, the condition of the goods, and the accuracy of the order. If
customers receive the correct merchandise and there is no damage, they can avoid the
hassle of interacting with service personnel to return the items. In other words, the
better the delivery service, the happier the clients are. Another hypothesis is derived
from this:
H2: Delivery service quality has a positive relationship with customer satisfaction.
When purchasing online, customers can only get a sense of the goods' information by
looking at photographs and reading descriptions. So, high-quality data is expected to
assist customers in comparing items, making educated decisions, and improving
transaction security (Liu & Arnett, 2000; Park & Kim, 2003). It is, in reality,
sometimes unavoidable for clients to get broken items or things that do not meet their
expectations. If e-retailers can plan ahead to solve difficulties and take the necessary
steps to deal with challenges that arise in a timely manner, they can demonstrate their
responsibility to clients and make purchasing more secure for them. Therefore, this
study expects that customers' buying experiences can be improved and their
satisfaction increased if after-sales measures are timely and comprehensive. Thus, the
following hypotheses are proposed:

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H3: After-sale service quality has a favorable correlation with customer satisfaction.
Customer demands, growing competition, and the availability of complicated products
and procedures have all increased the demand for better customer service.
Improvements in services are essential for survival today and in the future (Badler, H.
2004). Customer pleasure and positive communications are dependent on the level of
service provided (Lang, 2011). Furthermore, emotion input was identified as one of the
service quality characteristics by Parasuraman et al. (1988), demonstrating the
importance of employee services. Employees' assistance primarily mentions the image
of logistical personnel, attitude of customer service, customer attention, and proactive
assistance in resolving customer issues. Logistics staff should have effective contact
with consumers in the online purchasing delivery procedure because the manner in
which they interact with clients and the expressions they use can impact directly on
clients' future actions. Customer satisfaction will undoubtedly rise if logistics service
officers are able to offer service that is focused on the client, totally grasp the demands
of the customer, and deliver service that is friendly, respectful, welcoming, and
compassionate. Therefore, the fourth hypotheses are proposed:
H4: Staff service quality has a positive relationship with customer satisfaction.
Besides the aspects of logistical service quality, this study will check the influence of
demographic elements (includes gender, age, income, academic level, and occupation)
on the level of client satisfaction. The hypothesis regarding the influence of
demographic factors on the connection between the quality of e-services and consumer
pleasure as below:
H5a: The gender moderates the relationship between logistics services quality and
customer satisfaction.
H5b: The age moderates the relationship between logistics services quality and
customer satisfaction.
H5c: The income moderates the relationship between logistics services quality and
customer satisfaction.

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