TAILIEUCHUNG - Customer satisfaction with online group buying services

Customer satisfaction with online group buying services. Given the essential role of customers to the success of any business, particularly newly-established ones, it is crucialf or Hanoi s’ online group-buying (OGB) comp a- nies to make constant eff orts to keep their customers satisf ied. | Journal of Economics and Development Vol. 15, , April 2013, pp. 91 - 120 Customer Satisfaction with Online Group-Buying Services ISSN 1859 0020 Vu Huy Thong National Economics University, Vietnam Email: vhthong@ Tran Mai Trang Academy of Finance, Vietnam Abstract Given the essential role of customers to the success of any business, particularly newly-established ones, it is crucial for Hanoi’s online group-buying (OGB) companies to make constant efforts to keep their customers satisfied. This research aims at investigating customer satisfaction in the context of Hanoi’s OGB through both quantitative and qualitative methods including an online customer survey with 150 OGB customers, in-depth interviews with 20 customers, and participant observation of five OGB websites. The research results show that the key factors affecting OGB customer satisfaction include product price, merchandise variety, information quality, product quality, and delivery. Also, despite the high likelihood of customers’ repurchasing and recommending to others, Hanoi’s OGB business has not yet met customer satisfaction, particularly in terms of the information quality, supplier’s reputation, product quality and delivery. The root causes of this situation include the incomplete legal framework and ineffective management at macro-level; the poor quality management and business ethics of OGB companies; and the limited OGB customers’ awareness of their rights and responsibilities. Keywords: Online group-buying, customer satisfaction, macro-management, Hanoi, business ethics. Journal of Economics and Development 91 Vol. 15, , April 2013 1. Introduction of OGB sites, which further implies the severe competition within this harsh and unsystematic business context. This stresses the necessity for attracting and retaining OGB customers to maximise the potential of the business model. Improvement in customer satisfaction can be seen as the key to achieving this purpose, .

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