DSpace at VNU: Trust and Customer Satisfaction in Online Shopping: A Study in Vietnam

TRUST AND CUSTO M ER SA TISFA CTIO N IN ONLINE
SHOPPING: A STUDY IN V IETN A M
Nguyen Tlti Tuyet M ai - Nil am Phong Tuan

1. Introduction
The appearance o f the Internet has being paving the way for the rapid growth
of electronic commerce (e-commerce). The economy and transaction methods turn
to the new paee since the high-technology systems are exploited into applications.
Finding partners and customers is not limited by the borders o f countries and
therefore the choices o f products/services increase due to more suppliers in all over
thí world that are available on the Internet. Beside more opportunities, the
competition among electric vendors (e-vendors) has been also stronger and stronger,
especially for the emerging markets in which there are many international giants.
Hence marketers have tried to keep customer intention by raisins customer
satisfaction mainly through improving trust.
One approach online companies can do is to ensure distributive fairness and
procedural fairness. Distributive and procedural fairness will trigger the feelinss of
equity o f outputs (what is received) departed from inputs (what is invested) (Adams,
1963, p. 347, 1965) and o f outcome-determining procedures (Folger & Greenberg,
1985). From then, trust and customer satisfaction will be maintained (Chiu. Lin,
Sun, & Hsu, 2009).
Other aspects are customer interface quality, perceived security and perceived
usefulness. In the offline commerce, face-to-face interaction may directly satisfy
buyers through supporting services. In e-commerce, salespeople interact via
interface o f the websites. The challenges facingCP the online sellers are to alleviate the
uncertainty and incomplete or distorted information (Ba & Pavlou, 2002) as well as
ensure the security for sensitive contents and transactions. Moreover, in the
errerging markets, the belief o f customer on the virtual transactions is not strong.
Therefore, the mission o f designers is creating the attractive interface, updating
latest information, and security systems, thus enhancing the perception of
usefulness o f customers. However,7 few studies investigate

the above mentioned
o
cognition related to determinants o f trust and satisfaction in online context. The
TS. Đại học Hiroshima - Nhật Bản.
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TRUST AND CUSTOMER SATISFACTION.

above reasons motivate our work to profoundly understand the impacting factors on
trust and customer satisfaction.
2. Research m odel and hypotheses developm ent
The proposed model is shown in Figure 1.
Figure 1. Research model

Distributive fairness
Distributive fairness, also called as perceived fairness o f outcomes, was startỉd
by Adams (1963). Adams emphasized that there are correlations between inputs aad
expected outcomes. The expectation departs from the contributions to the exchange,
for which the fair return will be hopefully gained.
There are many previous studies that mention the relationship betwein
distributive fairness and trust. Pilai, Williams, & Tan (2001) had their strong argument
on high levels o f trust ensuing fair outcomes distributions. Particularly in the case ofecommerce, Chiu et al. (2009) added the ideas that when customers get the products
equal with their expectation, the level o f their trust in the vendor will raise.
On the other hand, distributive fairness is also found to be correlated with
customer satisfaction. Distributive fairness is traditionally explored as a predictor
for customer satisfaction (Huppertz, Arenson, & Evans, 1978). In e-commerce

context, Chiu, et al. (2009) also tested successfully the im pacts o f distributive
fairness on customer satisfaction.

Thus, based on the above discussion, we propose the following hypotheses:
Hypothesis I (H I): Distributive fairness positively influences trust in online
shopping.
Hypothesis 2 (H2): Distributive fairness positively influences custoixer
satisfaction in online shopping.

Procedural fairness
Another stream o f fairness is procedural fairness which refers to the equity of
the process o f how outcomes are determined (Folger & Greenberg, 1985).
The relationship between procedural fairness and trust is found in many studiỉs.
According to Pearce, Biglev, & Branyiczki (1998), trust as well as organizational
commitment results from procedural fairness in coworkers. In online shopping
context particularly, Chiu, et al. (2009) argued that the perceived fairness o f polices
and procedures o f shopping in the virtual markets has the influences on trust.
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On the other side, the coưelation between procedural fairness and customer
satisfaction has been estimated. Prior scholars emphasized the importance of
procedural process in which the receivers do not feel satisfied even though they set
favorable returns. In contrast, they are happy with fair procedures even if the
outcomes are not proportional (Lind & Tyler, 1988). M any researches also find the
positive influence o f procedure on customer satisfaction in service encounters
(Bolton, 1998),

in service quality (Smith, Bolton, & Wagner, 1999) and also in

online shopping (Chiu, et al., 2009).

Therefore:
Hypothesis 3 (H3): Procedural fairness positively influences trust in online
shopping.
Hypothesis 4 (H4): Procedural
satisfaction in online shopping.

fairness positively

influences customer

Customer interface quality
Customer interface quality is a concept involving many aspects and is
measured in different ways. Based on the prior researches (Chang & Chen, 2009;
Thakur & Summey, 2007), our study is composed o f information and character of
website.
The most important determinant o f e-trust is the information presentation on
the website (Thakur & Summey, 2007). According to Hoffman, Novak, & Peralta
(1999), customers may not trust website providers due to their suspicious entity
data. The online storefront design actually improves store traffic and sales, and then
customer satisfaction (Lohse & Spiller, 1999). Montoya-W eis & Voss (2003)
recognized that information content, navigation structure, and graphic style are
three website design factors impacting customers’ use o f an online channel and
overall satisfaction. Therefore:
Hypothesis 5 (H5): Customer interface quality positively influences trust in
online shopping.
Hypothesis 6 (H6): Customer interface quality positively influences customer
satisfaction in online shopping.
Perceived security
Perceived security refers to the belief o f customers about the safely
transmitting sensitive information (Chang & Chen, 2009). Hoffman, et al. (1999)

proved that 69 percent o f web users did not give any data to the websites because
they do not know what they will do with the sensitive information. The trustful

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TRUST AND CUSTOMER SATISFACTION.

relationship between customer and e-vendor
alliance o f information technology, financial
2000). In line with the discussion above, Jin
(2000) and Park & Kim (2003) proved that
contributor to trust and satisfaction. Therefore:

is build only by ensurina a major
control and audit functions (Keen,
& Park (2006), Szvmanski & Hise
perceived security is a significant

Hypothesis 7 (H7): Perceived security positively influences trust in online
shopping.
Hypothesis

8

(H8):

Perceived

security

positively

influences

customer

satisfaction in online shopping.

Perceived usefulness
Perceived usefulness is the belief o f customers about enhancing online
transaction performances (Chiu, et al., 2009; Davis, 1989). Since customers have
perceived usefulness, they will trust the e-vendor (Pavlou & Fvgenson, 2006).
Perceived usefulness is essential in shaping consumer attitudes and satisfaction with
e-commerce channel (Devaraj, Fan, & Kohli, 2002). The usage of Internet-based
learning systems relied on extended version o f the technology acceptance model
(TAM) is perceived to be useful in helping increase learners’ satisfaction
(Bhattacherjee & Premkumar, 2004; Saade & Bahli, 2004). Therefore:
Hypothesis 9 (H9): Perceived usefulness positively influences trust in online
shopping.
Hypothesis 10 (H10): Perceived usefulness positively influences customer
satisfaction in online shopping.

Trust
Based on social exchange theory (Blau, 1964), some scholars theorized that
trust will create the strong impacts on customer satisfaction (Chiou, 2003; Singh &
Sirdeshmukh, 2000). M organ & Hunt (1994) indicated the key role o f trust to
influence customer satisfaction. Singh & Sirdeshmukh (2000) specified trust
mechanisms in cooperating and competing with agency mechanisms to know the
effect on satisfaction in individual encounters. They proved that trust will have

direct effect on post-purchase satisfaction. Chiou (2003) and Lin & Wang (2006)
argued that accumulated trust will impact on overall satisfaction. In terms of ecommerce, Chiu, et al. (2009) proved that trust is the strongest variable that have
impacts on customer satisfaction in online shopping. Therefore:
Hypothesis ỉ l (H I I): Trust positively influences customer satisfaction in
online shopping.

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MỆT NAM HỌC - KỶ YÉU HỘI THẢO Q l í ó c TÉ LÀN TH Ử TƯ

3. Research m ethodology

Data collection
The data was collected in October 2011 via an online survey because of
advantages o f cost and speed. This online data collection method was also in
consistent with the research subjects o f the study, online buyers. We distributed the
Ink through the survey website www.nothan.vn. The duration o f survey was two
nonths. The participants were volunteers who were interested in such a research
tipic and had the shopping experiences before.
A total o f 1,025 responses were received. 267 out o f 1,025 responses were
hvalid. incomplete or save the same rating for all items; the remaining 758
cuestionnaires were used for the analysis.
cuestionnaires was summarized in the Table 1.

The

demographic

Table I: Dem ographic profile (N = 758)

Frequency

%

Male

222

29.3

Female

536

70.7

<20

245

32.3

20-25

423

55.8

> 25

90

11.9

Junior high school

1

0.1

High school

16

2.1

Vocational school

17

22

Technical college

39

5.1

University

676

89.3

Master or higher

9

1.2

Full-time student

380

50.1

Non-full-time student*

197

26.0

Employment

171

22.5

Characteristics
Gender

Age

Education background

Job
Student

466

profile

of


TRUST AND CUSTOMER SATISFACTION.

Unemployed

6

0.8

Housewife

2

0.3

Retired

2

0.3

1 year

64

8.4

2-5 years

474

62.5

5-10 years

217

28.6

Years o f experience with the Internet

0.5

Ỉ 0 years+
Number o f visits for last six months
< 1 time

81

10.7

1 time

417

55.0

2 times

148

19.5

3-5 times

85

11.2

6-10times
10 times

19

2.5

8

1.1

*Despite of working with permanent full-time jobs, they are enrolling some course CO
have higher degrees

Source; author
Measurement
The questionnaire was designed to measure research constructs using
multiple-items scales adapted from previous studies that reported high statistical
reliability and validity. Each item was evaluated on a five-point Likert scale ranging
from (1) Strongly disagree to (5) Strongly agree.
4. Data analysis

4.1 Analysis o f the measurement model
Confirmatory factor analysis (CFA) was developed for measurement model in
order to establish the unidimensionality, reliability, convergent validity and
discriminant validity. The good-of-fit indices satisfied the suggested value (x2/di =
2.759; GFI = 0 94; CFI = 0.97; TLI = 0.967; NFI = 0.956; AGFI = 0.919; RMSEA
= 0.048), therefore there was a reasonable overall fit between the model and
observed data. The reliability assessment was based on comparable fit index (CR).
All CR indexes o f constructs were over the respective recommended cut-off levels
o f 0.7. In term o f convergent validity, all standardized regression weights are higher

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than 0.60 and the critical ratios are significant at p = 0.001. In addition, two criteria,
C'R and average variance extracted (AVE), were above the suggested levels, 0.7 and
0.5 respectively. Finally, discriminant validity was examined using the guideline in
the research o f Fornell & Larcker (1981). The correlations among constructs were
listed with the AVE on the diagonal. All diagonal elements were larger than inter­
construct correlations; hence discriminant validity was proved.

4.2 Analysis o f the SEM
Table 2 shows the result of the SEM.

Referred to the corresponding

recommended values all fit indices achieved a good model fit (x2 = 479.036 (p =
0.000); d f = 168; xV df= 2.851; GFI = 0.942; CFI = 0.973; TLI = 0.967; NFI - 0.96;
AGFI = 0.92; RMSEA = 0.049). The explanatory power of the research model was
shown in Figure 2 in which the model accounts for 71 and 72% of variance (R score).
Ten out o f eleven paths were significant. Among them, nine exhibited a pvalue o f 0.001. H I, H2 were supported by the significant coefficient paths from
distributive fairness to trust and customer satisfaction o f 0.232 and 0.145.
Procedural fairness was associated with trust and with insignificant coefficient path
with customer satisfaction, therefore H3 was supported but H4 was not supported.
H5, H6, H7, H8 proposed that customer interface quality and perceived security
would positively impact on trust and customer satisfaction, and the results were

strongly supported (7 3 1 = 0.285; p 32 = 0.165 ; 741=0.161; [3,42= 0.099).

H9 and H10

posited that perceived usefulness would positively affect on trust and customer
satisfaction, the result were significant, and therefore H9 and 1110 were supported.
H1Ỉ was supported because trust had positive influence on customer satisfaction

0*2=0.32).
Table 3: T he result of the SEM
Hypothesized relationship

P a ra m e te r

Estimate

Critical ratio

Conclusion

(t-value)
HI
----- Distributive fairness —>Trust
-—

Yu

0.232

5.78*

Supported

Distributive fairness

p 12

0.145

3.85*

Supported

H2

—►Customer satisfaction
H3

Procedural fairness —>Trust

721

0.265

6.39*

Supported

H4

Procedural fairness

P22

0.065

1.68

Not
supported

—♦Customer satisfaction
H5

Customer interface quality
—►Trust

468

73!

0.285

7.88*

Supported


TRUST AND CUSTOMER SATISFACTO'J.

H6

Customer interface quality
—♦Customer satisfaction

P32

0.165

4.68*

Suppored

H7

Perceived security —>Trust

741

0.161

6.30*

Supị:or:ed

H8

Perceived security —>Customer
satisafction

p42

0.099

4.1 1*

Supfored

H9

Perceived usefulness —->Trust

751

0.091

2.94**

Supported

H 10 Perceived usefulness
—►Customer satisfaction

P52

0.179

6.34*

Supported

HI 1 Trust -^Customer satisfaction

^-62

0.320

6.20*

Supported

Overall goodness-of-fit indices
X2 = 479.036 (p = 0.000); df = 168; x2/df= 2.851
GFI = 0.942; CFI = 0.973; TLI = 0.967; NFI = 0.96; AGFI = 0.92; RMSEA = 0.049
Note: X2- chi-square; df, degrees of freedom; GFI, goodness-of-fit index; CFI,
comparable fit index; TLI, tucker lewis index; NFI, normed fit index; AGFI, adjusted
goodness of fit index; RMSEA, root mean square error of approximation; *p< (.031,
**p<0.01
Source: author
5, Discussion and implications

In general, our study support for the theoretical model and hypotheses among
constructs. There are several findings.
First, among the expected determinants o f trust, distributive fairness and
procedural fairness are positive predictors. The results have the consensus with
antecedents (Kumar, Scheer, & Steenkamp, 1995; Tyler & Lind, 1992). Customer
interface quality, perceived security and perceived usefulness are also significant
predictors o f trust. It is appropriate to suggest that receiving the authentic and
updated information, safe insurance as well as enhancing the beliefs using the
websites can improve the transaction performance that will trigger the trust
responses from customers.
Second,

regarding the expected determinants

o f customer satisfaction,

distributive fairness, customer interface quality, perceived security and perceived

usefulness as well as trust are proved to be positive predictors. Since customers feel
the outcomes are proportional with inputs, the good environments, the safety,
perception o f usefulness, they will be satisfied and result in repeat intention. On the
other hand, the study has an insignificant result in the relationship between
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VIỆT NAM HỌC - KỶ YÉU HỘI THẢO QUỐC TẾ LÀN THÚ TƯ

procedural fairness and customer satisfaction. It may be due to the unperfected
implementation in procedure-problem-solving systems. It is clear that trust involves
with all process from the beginning with customers’ previous experience until the
service after shopping whereas customer satisfaction is the contentment o f the
customers after shopping in a eiven virtual store. That is the difference between
trust and customer satisfaction from which procedural fairness has significant co­
efficient with trust but insignificant with customer satisfaction.
6. Limitation and future research
Despite contributing to the literature and finding out some interesting points,
the current study also has some limitations that open avenues for future researches.
First, the questionnaire was designed to force the respondents to answer all the
questions. Respondents mav prefer not answering the questions than answer
erroneously. The online survey could add some choices in which the respondents
can choose not to answer questions. Another point was that although we took care
to translate the questionnaire in Vietnamese, but it still could influence on the
results o f factor structures.
Second, customer interface quality is a multi-faceted concept, but we could
not include every component, just focused on information and character that were
most related with online context. The results could be yielded differently with
different components.
7. Conclusion

Trust and customer satisfaction are very important to e-companies in post­
consumption intention. Our study empirically examined the significant influence of
distributive fairness, procedural fairness, customer interface quality, perceived
security and perceived usefulness on trust as well as on customer satisfaction. The
mediator role o f trust also was proved successfully. Practitioners can consider our
study as the reference to establish trust and satisfaction in e-commerce in which in
order to raise post-consumption intention, distributive fairness, procedural fairness,
customer interface quality, perceived security, perceived usefulness need to be paid
more attention, especially trust as well.

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