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國立高雄大學國際企業管理碩士學位學程

碩士論文

The Study of Customer Loyalty On

Thailand’s Online Shopping Platform

研究生(Graduate Student):Jaruwan Kowitthyawong 撰

指導教授(Advisor):Professor Yung-Kai Yang, Ph.D.

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I

ACKNOWLEDGEMENT

First of all, I am greatly thankful to my thesis adviser professor Yung-Kai Yang, who is the guider and always solved problems in this thesis. Thank you for always appeared when I asked for help and gave the direction to improve my research.

Second, I would like to thank the Everclver Company for providing my scholarships throughout the beautiful journey at NUK for 2 years and all professors who taught me to had great access to all of this research in every step by their class. Thirdly, special thanks to my family. Thank you for believing in me when I didn't believe in myself at all. Thank you for always encouraging, supporting, and caring for me. Thank you for being home that I feel safe and warm even though I have traveled a long way from them. I feel like they always beside and ready to support me anytime. I love you guys and will love forever.

Finally, thank you to all my friends and the Taiwan host family. There are both my school friends and my university friends, both bachelor and master, as well as the exchange students from SWU. Thank you for guiding me, remind me when I get lost, kept encouraging me, and always said that I can do it. Thank you to my Taiwan host family for always taking me on a vacation so that I can take a rest from my studies and make me know more about Taiwan. And it is indispensable to thanks all Thai exchange students who came to exchange at NUK on this semester, thank you for making my master's degree life so fantastic experience. You guys are one of the parts that helped me finish this research, thanks to everyone.

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II

The Study of Customer Loyalty

On Thailand’s Online Shopping Platform

Advisor: Professor Yung-Kai Yang, Ph.D. (楊詠凱) Department of Asia-Pacific Industrial and Business Management

National University of Kaohsiung

Graduate Student: Jaruwan Kowitthayawong (許佳文) International Master of Business Administration

National University of Kaohsiung

ABSTRACT

Thai businesses are changing from stores at department stores to online stores. Not only does the online store keep growing, but there is also a growing online sales competition as well. Therefore, more important than selling is maintaining online customer loyalty at the same time. The objectives of this research were (1) To review existing literature on the issue of online customer loyalty with specific attention to the Thailand market and (2) To analyze the factors affect the loyalty of Thailand’s online customers. Data were collected from the online customer in Thailand in Bangkok area 10 people in a variety of careers and ages. The research tools used in this research were qualitative methods by means of data collection using interviews. Research finding were as: Customer satisfaction, Trust, Security, and Privacy strongly affected online customer loyalty, while Price was only 90% affects customer efficiency. Service efficiency and Customer expectation are 80% and 60% that affects customer loyalty respectively. In addition, there are factors that can affect customer loyalty in addition to the above factors. There are promotion or discount price, delivery fees, product quality, product information, product image, seller manners, reviews, give away product, marketing, and platform process. On the other side, the most factors that affect customer loyalty are also studied by according to priority order. This research was found that in terms of Customer satisfaction gave priority to Price, Service efficiency, and Customer expectation respectively. In terms of Trust, the interviewer gave Security first priority, and Privacy second.

Keywords: Customer loyalty, Customer satisfaction, Price, Customer expectation, Service

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III

TABLE OF CONTENTS

Chapter 1 : Introduction ... 1

1.1 Research Background ... 1

1.2 Motivation and Objective ... 4

1.3 Research Procedure ... 5

1.4 Thesis Overview ... 7

Chapter 2 : Literature Review ... 8

2.1 E-commerce & Online Platform ... 8

2.2 Customer Satisfaction ... 10

2.3 Trust ... 13

2.4 Customer Loyalty ... 14

2.4.1 The relationship between customer satisfaction and customer loyalty ... 16

2.4.2 The relationship between trust and customer loyalty ... 17

Chapter 3 : Research Method ... 18

3.1 Research Structure ... 18

3.2 Qualitative Method ... 18

3.3 Data Collection Technique ... 19

3.4 Interview Questions ... 20

3.5 Data Analysis Technique ... 22

3.6 Data Validity ... 23

Chapter 4 : Research Results ... 25

4.1 Finding ... 25

4.1.1 Description of interviewee’s profile ... 25

4.1.2 Overall shopping experience ... 26

4.2 Finding of the Template Analysis ... 28

4.2.1 Satisfaction affect customer loyalty ... 28

4.2.2 Price affect customer loyalty ... 29

4.2.3 Customer expectation affect customer loyalty ... 31

4.2.4 Service efficiency affect customer loyalty ... 32

4.2.5 Trust affect customer loyalty ... 34

4.2.6 Security affect customer loyalty... 35

4.2.7 Privacy affect customer loyalty ... 36

4.3 Analysis Results ... 38 4.3.1 Price ... 38 4.3.2 Customer expectation ... 39 4.3.3 Service efficiency ... 40 4.3.4 Security ... 41 4.3.5 Privacy ... 42

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4.4 Conclusion of Finding ... 44

Chapter 5 : Conclusion and Discussion ... 47

5.1 Summary ... 47

5.2 Discussion ... 47

5.3 Implication ... 49

5.4 Research Limitation and Future Studies ... 50

References ... 52

Appendix ... 57

Appendix A: The 1st interview ... 57

Appendix B: The 2nd interview ... 59

Appendix C: The 3rd interview ... 61

Appendix D: The 4th interview ... 64

Appendix E: The 5th interview ... 67

Appendix F: The 6th interview ... 69

Appendix G: The 7th interview ... 71

Appendix H: The 8th interview ... 74

Appendix I: The 9th interview ... 76

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V

LIST OF TABLES

Table 3.1: Selection Interviewees ... 20

Table 3.2: Interview Questions ... 21

Table 4.1: Profile Distribution of Interviewees ... 25

Table 4.2: Online Shopping Experience and Online Shopping Information ... 26

Table 4.3: The Reasons Why the Interviewee Change an Online Platform ... 27

Table 4.4: The Reasons of “Satisfaction” affect Customer Loyalty ... 29

Table 4.5: The Reasons of “Price” affect Customer Loyalty ... 30

Table 4.6: The Reasons of “Customer Expectation” affect Customer Loyalty ... 31

Table 4.7: The Reasons of “Service Efficiency” affect Customer Loyalty ... 33

Table 4.8: The Reasons of “Trust” affect Customer Loyalty ... 34

Table 4.9: The Reasons of “Security” affect Customer Loyalty ... 36

Table 4.10: The Reasons of “Privacy” affect Customer Loyalty ... 37

Table 4.11: The Results of “Satisfaction” Priorities of the Factors Affect Customer Loyalty ... 46

Table 4.12: The Results of “Trust” Priorities of the Factors Affect Customer Loyalty ... 46

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LIST OF FIGURES

Figure 1.1: Moderated effect of E-satisfaction on E-loyalty ... 3

Figure 1.2: Research Procedure ... 6

Figure 2.1: The Origin of Online Platform ... 9

Figure 2.2: Relevant Factors Developed from the ACSI Model ... 12

Figure 2.3: The Relationship between Customer Satisfaction and Customer Loyalty ... 16

Figure 2.4: The Relationship between Trust and Customer Loyalty ... 17

Figure 3.1: Research Structure ... 18

Figure 4.1: Evident of “Satisfaction” Important to make Customer Loyalty ... 28

Figure 4.2: Evident of “Price” Important to make Customer Loyalty ... 30

Figure 4.3: Evident of “Customer Expectation” Important to make Customer Loyalty ... 31

Figure 4.4: Evident of “Service Efficiency” Important to make Customer Loyalty ... 32

Figure 4.5: Evident of “Trust” Important to make Customer Loyalty ... 34

Figure 4.6: Evident of “Security” Important to make Customer Loyalty ... 35

Figure 4.7: Evident of “Privacy” Important to make Customer Loyalty ... 37

Figure 4.8: Sorting the Position of "Price" Importance ... 39

Figure 4.9: Sorting the Position of "Customer Expectation" Importance ... 40

Figure 4.10: Sorting the Position of "Service Efficiency" Importance ... 41

Figure 4.11: Sorting the Position of "Security" Importance ... 42

Figure 4.12: Sorting the Position of "Privacy" Importance ... 43

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CHAPTER 1 : INTRODUCTION

1.1 Research Background

In the past, presenting products both domestically and internationally had to use print media such as catalogs, brochures and various forms of advertising and it make high cost. It is time-consuming to revise the catalog information to improve the products, nowadays, electronic commerce or E-commerce can be presented in the form of online catalogs or online shop, which helps to reduce the time for updating the information. (Kimaporn, Suranart, and Thanita, 2013) E-commerce came to Thailand around 1970 by using an internet on Government process, such as sent an e-mail or document, they develop an internet and create media to disseminate knowledge on the internet. Start with website of the Ministry of Science (www.nectce.or.th). Next period is when the internet is becoming popular, people are getting to know the internet better than in the past. Including, becoming very interested in the internet because it was during the time that various schools began to use the internet as a medium of instruction and infiltrate into various studies. The last is the current range, there is a completely competitive range, which is the start of fierce competition and the era in which the government has been involved. The Ministry of Commerce started to push for businesses that want to build stores via the internet to have more ways to create under the name “Electronic Commerce” or “E-commerce”. There are many entrepreneurs supporting it because an online business can make huge profits for their business.

There are many methods of technology used by humans to communicate. One of them is that social media is a way for people can communicate with each other all the times, leading to make business through social networks or E-commerce businesses. It can also be called as the online shopping platform. The term online shopping platform is like the way the business connects with customers might in the form of websites or applications. E-commerce grow up because of the increasing demand for customers to buy products at all times, in every location. The spending behavior of Thai people changes according to society and various values occurs within the society. Found that online trading tends to expand rapidly from Thai people prefer to buy online because is convenient and fast. Thai people like anything that is easy and uncomplicated. Therefore, it is not strange to make online trading very popular in Thailand at this time. Moreover, sometimes shopping online is cheaper than buying from in-store because there has a promotion or discount price.

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E-commerce also has some process support shopping time by easily compare prices with a lot of options to show within that time period. When convenience becomes an important factor in online shopping, in just a few clicks, products can be delivered straight to their homes. That is the main reason why they prefer online shopping more than going out to buy things by themselves.

At Thailand, there are many kinds of an online shopping platform. An online platform that starts with the consumer to consumer (C2C) market and later increases the marketing channel between the business and the consumer (B2C) in a combined form Hybrid Model for example Lazada, Shoppee, JD Central, and 11street. In addition, it also includes online platforms that are scaled up to enable trading, such as the Facebook market or business category on Instagram. One of the largest platforms in Thailand at this time is Lazada and Shopee on both platforms, reaching the highest monthly viewer visits gain of 44.1 million times and 31.19 million times, but downloading the application, Shopee came in at number one surpassing Lazada. They are both huge online shopping platform that is a contender all along. The value of the E-commerce market is steadily growing, according to a survey of the Electronic Transactions Development Agency (ETDA). In 2017, Thailand has a value of E-commerce is 2.8 trillion baht (around 92 billion USD) and in the following year 2018, the value of E-commerce has grown by 14.04%, with a total value of 3.2 trillion baht (around 105 billion USD). Thailand is considered to have the highest growth rate of business to consumer (B2C) in ASEAN due to the confidence in E-Payment technology and fast transportation.

Today's online entrepreneurs should know how to use online platform to benefit their businesses by using technology to generate more sales. If used correctly, it will become a way to grow their business. At present, many online entrepreneurs have started to expand the business from only having an offline storefront move to do an online store while most new business owners have an online storefront only, as this online platform does not require high investment like store rent fees and can open for sale 24 hours a day. The thing can help E-commerce businesses in Thailand to grow quickly is the development of telecommunications. The development of the speed of the internet has made data communication via the internet much easier than in the past. It combined with devices used to access the internet, such as smartphones or computers, are cheap and allowing customers to buy can be easily owned. Resulting in customers being able to access the internet anytime. These things make the market of E-commerce in Thailand bigger and more trend continues to expand.

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The high competition in this type of business makes marketing as important factors to beat competitors and get the loyalty from customers because the marketing activities of E-commerce will lead customers to know the shop and create satisfaction for customers by offering products that meet customer's needs until causing trade at the satisfied level between sellers and customers. In addition, marketing factors are not just a tool for exchanging but are also a tool that continuously creates satisfaction for customers causing customers to be loyal to the product as well as re-use or re-purchase when needed. (Thawatchai, 2014)

The thing makes E-commerce still launch is the customer. Customer Loyalty is a relationship or commitment that customers have with the brand, store, manufacturer, service, etc. that is based on a satisfied attitude or behavioral responses, such as participating in marketing activities online shop and repeatedly purchasing goods. Customer loyalty is also the level of customer relations with the online shop. Loyal customers are not interested in other competitors, whether or not they are better than us. Customers will believe that the business will be able to offer things to them knowingly without having to wait for them to speak and the business should able to continuously meet customer needs and satisfaction. Strategy for making customers be impressed and returning repeatedly, the business believes that customers come back to buy because of reasonable prices and the availability of various promotions, brand image, store location or buying channels, and brand image in the media. Business owners are always looking to open up new markets. Grouping new customers are important but those owners forget that one of the key factors that make a business survive is a success is customer loyalty or re-purchasing from the customer. The moderated effect of E-satisfaction that results in customer loyalty can be explained by Figure1.1.

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However, nowadays E-commerce businesses are rarely interested in maintaining the loyalty of their former customers. Most of them tend to give special privileges to new customers while existing customers will have different privileges depending on promotion or the store's opinion. The benefit of customer loyalty is that it allows you to have regular customers, make the activity have a continuous income, and customers may also help to publicize for us in another way as well. Regular customers always satisfied with the product, quality, and price then become customer satisfaction. Making products still able to sell in the market is being unique and different because if they stand out and different from the same product will make their customers choose them instead of choosing competitors. Value and reliability are important, but this is customer satisfaction that sellers can't determine. Value and reliability are determine by the customer's own mind. Above all, apart from excellent products and services, an important component of buying and selling products is customers, because customers are the most important components in doing business. Regardless of advanced technology equipment or beautiful picture of products, customers are still the heart of doing business. Customers are the person who drives products and the main push for any business, on the other hand, if they are not successful in communicating with customers that business will be difficult to survive.

1.2 Motivation and Objective

Due to electronics commercial or E-commerce is becoming popular in Thailand. There are various channels throughout the website or other online shopping platforms, such as applications, to reach customers easily via the internet. In recent times, there have been many business launching into both small and large product sales platforms. Some of them are going well and expanding branches or platforms continuously but some of them have to shut down or had taken over with regret because they can't find customers. The reason might be the loyalty of customers who use the service to buy products on the channels they have bought before, new channels that are opened are not popular and that affects the new business has just started.

In the online shopping platform, many business competition learns how to make customers choose to shop by provide suitable products and services for the customer and hope to gain customer’s loyalty after that. Moreover, the researcher is relevant

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to the E-commerce business in Thailand and expect to maintain a loyalty relationship between E-commerce or online shop with customers. For study the customers' loyalty this research thesis is conducted to reach three objectives as follows.

(1) To review existing literature on the issue of online customer loyalty with specific attention to the Thailand market.

(2) To analyze the factors affect the loyalty of Thailand’s online customers.

1.3 Research Procedure

The purpose of this study is to investigate the factor that affects customers loyalty or the factor that cause customers to come back to buy products again. The research procedure is presented in Figure 1.2. After determining research topic and objective, literature review is investigated in order to provide understanding customers loyalty and customer’s behavior, which help to confirm the scope of study, as well as define the problem. Research method is a qualitative approach that collects data from using an interview questionnaire. Then, data analysis is conducted to give conclusions and suggestions based on the results.

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Figure 1.2: Research Procedure Research Background Motivation & Objectives

Literature Review

Research Method Design: Interview Questionnaire

Research Conclusion & Suggestions Data Collection & Analysis

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1.4 Thesis Overview

This research includes five main chapters, which is structured in the following way:

Chapter 1: Introduction – This chapter includes general research background explains research motivations and objective with overview of research procedure and structure of study.

Chapter 2: Literature Review – First part of the chapter take a look at E-commerce and online platform in Thailand. Second part mention about customer satisfaction. Lastly, discussed with the relationship between customer satisfaction and customer loyalty and the measure of customer loyalty.

Chapter 3: Research Method – This chapter explains the research methodology conducted in this study, which includes the research structure, qualitative method, data collection technique, an interview questions, data analysis technique, data validity, and overall conceptual research framework.

Chapter 4: Research Results – Qualitative analysis is conducted to analyze interview data.

Chapter 5: Conclusion and Discussion – This chapter represents a short summary of this study and illustrates research findings and suggestions for Thailand's shopping platform, and then proposes some directions for future studies.

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CHAPTER 2 : LITERATURE REVIEW

2.1 E-commerce & Online Platform

Electronic Commerce or E-Commerce began around the early 1970s, beginning with electronic money transfers between agencies. In the beginning, most of relevant departments were only big companies, there were not many small companies. Later, when electronic data interchange (EDI) became more widespread and the computer has expanded rapidly with the development of the internet and the website. So various agencies and individuals can afford to use electronic commerce. Nowadays, electronic commerce covers many types of transactions such as advertising, trading goods, buying shares, working, bidding, and providing customer service.

Electronic Commerce or E-Commerce means all forms of transactions, including the purchase of goods & services, payment, advertisements through various types of electronic media, especially the internet network.

The Electronic Commerce Development Center (1999) has defined that "Electronic commerce is a business operation using electronic media." The World Trade Organization (WTO 1998) states that "Electronic commerce is the production, distribution, marketing, sales or transportation of products and services using electronic media"

E-commerce meaning in a broad way, Turban et al. namely "The process of buying, selling, exchanging goods, services, and/or information via computer networks mostly through Internet and Intranet" (Nattakan, 2016). From this definition, electronic commerce is not just trading but includes customer service, cooperation between business partners, online learning and online transactions, whether internal or external. In the other side, Laudon and Traver give a narrow definition of Electronic commerce, that is to say, means only transactions involving the exchange of valuables, such as money between organizations or individuals, in order to obtain goods or services (Nattakan, 2016). In the case of online transactions that occur within the company is called Electronic Business or E-business.

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Figure 2.1: The Origin of Online Platform

Platform is a business that focuses on creating value from the creator and the customer meet, talk to each other and create transactions between them. Which the platform will be created to be an open system with basic emphasis on participation, with clear rules and regulations. Geoffrey, Marshall, and Sangeet found that help exchange products and services which in the end create more value for all parties (Wanlika, 2016). Later, the platform was used on the internet and became an online platform. Online Platform is a technology platform that comes from business evolution. That uses the principles of data management and management of the resources that exist on this planet to maximize value. There consists of 3 S: Self-management, Safe and Trust, and Scale-up. Today's business strategies needs to change from traditional business structures to data management businesses structures. There are many forms of online platforms and popular one is the form of websites. The website is the media to present information on the computer or is a collection multiple webpage which are connected via hyperlinks. Another platform that comes in the form of Application, which we often call for short, App. It is a program that facilitates various fields and designed for smartphone, tablet, or mobile devices as we know. In each operating system, there will be many application developers to meet the needs of users which will be available to download, both free and paid, both in education communication or even entertainment etc.

There are 4 types of E-commerce platforms which are used to make the platform, consisting of Creator Customer Internet (Online) E-commerce Self-Management

Safe & Trust

Scale Up

Online Platform Place

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1. Business to Business or B2B

A form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to business that is conducted between companies, rather than between a company and individual consumers.

2. Business to Consumers or B2C

The process of selling products and services directly between consumers who are the end-users of its products or services. Most companies that sell directly to consumers, such as Line man, JIB, and Konvy.com.

3. Business to Government or B2G

A business model that refers to businesses selling products, services or information to governments or government agencies. B2G networks or models provide a way for businesses to bid on government projects or products that governments might purchase or need for their organizations. B2G is also referred to as public sector marketing.

4. Consumer to Consumer or C2C

The business model that facilitates commerce between private individuals. Whether it's for goods or services, this category of E-commerce connects people to do business with one another. The goal of a C2C is to enable these relationships, helping buyers and sellers locate each other. Customers can benefit from the competition for products and easily find products that may otherwise be difficult to locate. For example, Lazada, Shopee, Airbnb, and eBay.

2.2 Customer Satisfaction

The definition of satisfaction according to behavioral dictionary has defined that feeling happy when people achieve their goals, needs, or motivation (Jarinee, 2017). Peters Drucker (2002) observed that the first job of companies is to create customers. However, customers have many options ahead, from products, brands, prices, and seller (Warot, 2015). They believed that customers will assess the value of business offerings and choose the highest value presentation under the limitations of cost,

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knowledge, moving or wasting time as well as customer income restrictions. Expectations in value and take action to achieve those expectations so what the business has to offer will affect the customer satisfaction and return to buy more or less. Customer Satisfaction is a personal matter to something by referring to the experience of the person which is different and similar to each person. Satisfaction means to satisfy, please, or the person's liking towards work and other elements or incentives (Royal Institute Dictionary, 1999). Individual satisfaction can never end can always change be according to time and environment. Individuals, therefore, have the opportunity to be dissatisfied with what they had already been satisfied before. Satisfaction is a personal feeling that is the result of the comparison between the recognition of results from working or the efficiency of goods and services with the expectations of customers about products and services. If the results obtained from those goods and services are lower than expectations will cause dissatisfaction. If the results obtained from the goods and services match expectations will create satisfaction. If the results obtained from the goods and services exceed expectations will make an impression (Supatcha, 2016).

Satisfaction is main of the key factors that helps business to succeed, especially if the work is related to service. Moreover, the management will provide service operators to satisfied with their work, it is still necessary to make the customer satisfied too because it is the growth of the service. The factor that is an indicator is the number of people who use the service. The smart management should take a deep study of the factors and the elements that will satisfy both the service provider and the customer. Satisfaction will happen or not depends on the service of the organization combined with the feeling level of the customer in various dimensions of each person. Therefore, the measure of satisfaction can be done in the following ways

1. Questionnaires: Which is a method that is widely used by requesting cooperation from the group of people who want to measure comment on the defined form.

2. Interviews: Require special techniques and expertise of the interviewer to motivate respondent answered the truth.

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3. Observation: It is to observe behavior before both services, while receiving the service, and after receiving the service, the measurements by this method must be taken seriously and with a definite plan.

As above, there are many ways to measure service satisfaction depends on convenience suitable as well as the purpose of the measurement as well will result in the measurement being effective and reliable.

On the other side, Tosapon (2008) has mentioned the Thailand Customer Satisfaction Index (TCSI) pilot study of the National Productivity Institute. Which is a project that adapted the ACSI model to study the satisfaction of bank counter services in Thailand, consisting of money deposit, withdrawal, money transfer, product payment and the check service has a scope of study covering all 6 commercial banks, especially in Bangkok and its vicinity. By the questions will be developed from the original of the United States in accordance with Thailand more resulting in the relation of various factors as shown in Figure 2.1.

Figure 2.2: Relevant Factors Developed from the ACSI Model

Customer Expectation has a positive relationship with perceived quality and perceived value, showed that the bank has the data communication service is true. Therefore, allowing customers to have service expectations in same direction with the actual service. In addition, customer expectations are still involved can affect satisfaction (TCSI) through both of the above factors.

Perceived Quality Customer Expectation Perceived Value Customer Complaints Customer Loyalty Thailand Customer Satisfaction Index (TCSI)

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Perceived quality has the most direct effect on satisfaction (TCSI) and also indirectly affects satisfaction (TCSI) through factors of customer value. It shows that banks should give the highest priority to service quality.

Satisfaction (TCSI) has the opposite effect on customer complaints but has a positive effect on customer loyalty. It shows that if a customer is satisfied they will few complaints. On the other hand, if satisfied, will create loyalty.

Customer expectations affect customer satisfaction but apart from these, there are other factors that affect customer satisfaction such as price and service efficiency (Chinaso and Thuan, 2018). Price influences the purchase of goods for each purchase of products. Customers tend to use the price that is displayed along with the product as part of their decision making for every purchase because the price numbers can tell many things, both the quality of the product is significant and can also affect the demand of customers as well. If the price is higher than the budget that the customer has price may cause customers to be unhappy with the purchase of that product. On the other part, the service can impress the customers. In order to create satisfaction, resulting in the decision to buy products and repeat purchases as well (Chaweewong, 2017). By the way, that store can solve all the problems that customers need and can confirm the efficiency of the store. Customers always need the best service when they want to buy products. When the shop impresses customers certainly creating an opportunity for customers to return and buy products again for sure.

2.3 Trust

The credibility of the website is part of the decision to make a purchase. Trust has power that affects the decision to buy repeatedly (Jutarat, 2015). Online shopping purchases the customers must identify themselves and the process of buying products online the store will have information about customers, so it's important to be reliable. The secure payment system, there should be a policy or regulation for the storage of customer personal information clearly, can track payment results money, easy but safe, and there are ways to solve problems for customers immediately in the event of an error such as sending the wrong product.

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2.4 Customer Loyalty

Customer Loyalty is behavior that customers display on the product brand affect operations and its can create a competitive advantage (Bloenmer, Ruyter, and Peeters, 1998). Natteera (2018) mention to Shoemaker and Lewis, they mention customers' loyalty are important to the organization because maintaining old customers affects the profitability of the organization. Customers will repeat buying behavior when they are satisfied with the past or communicate good things to others. The product brand gets high loyalty from customers will be stable and grow because the organization will profit from the sale of products and services (Woraphon and Sudaporn, 2012). When customers are satisfied with the use of the products and services they will feel good and want to uses it again. A study by Nural and Putra (2013) found that customer satisfaction, perceived by the quality of hotel services, is a reason for retaining old customers and expectations of new customers who have never used the service. If something received is equal or more, the customer will be satisfied and come back to use the service again. The study by Rahim et al. (2010) found that customer loyalty is considered from

1. Communication behavior is a positive communication about products and services to other people.

2. The intention to buy is to think first when they want and make a purchase decision without thinking of buying another brand's products and services.

3. Price sensitivity is ignoring, if there is a change in the selling price, there are still buy.

4. The complaint behavior is they do not complaining to those ones who have the power in an organization when things do not go as expected or some problems occur (Natteera, 2018).

From Anucha (2017), Jacoby and Robert conclude that customer loyalty is measured by belief, behavior, and attitude. Maliwan (2014) studied about Dick and Basu, and they think customer loyalty is the strength of the relationship between personal attitudes with sponsors which is a long-term commitment whether repeat purchases will come in the future. Akhter et al. (2011) think loyal customers will tell (word-of-mouth) to friends or family about favorite products and services (Narit, PaiTun, Tipparat, and Nawin, 2014). Customer loyalty can increase market share

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through the creation of new customer bases helps build and add value to the organization (Boonthawan, Atchara, and Boonchanit, 2016).

Customer loyalty as primarily an attitude-based phenomenon that can be influenced significantly by customer relationship management initiatives such as the increasingly popular loyalty (Mark, Grahame, and Kathy, 2002). From Somruthai (2017) mentioned 3 studies. First, Akbari et al., studied loyalty in a competitive market retaining customers and building trust and loyalty are important. They found that marketing affects customer loyalty. In terms of attention to service that will make customers return to use the service repeatedly after using the service already consistent with the research, next is Bunyamin has developed and tested models to demonstrate customer loyalty. Found that the service provided by the bank (or company) if word-of-mouth was not good will affect the customer base, causing customers to not return to use the service repeatedly, On the other hand, the last from Habib and Aslam conducted a study of the brand image or reputation found that customer satisfaction comes from the image of the brand which also creates customer loyalty as well.

Customer loyalty is like the image of an undisputed promise which is a component of honest behavior fit the beliefs of individuals blending with other perceptions (Maliwan, 2014), while Itinun (2015) found Oliver states that loyalty is the deep obligation to provide patronage or re-purchase of goods or services that are consistently satisfied in the future which will be the nature of the purchase in the original brand or the set of the original brand. This behavior change will be influenced by the circumstances that have an impact and the potential of the marketing effort. And Anucha (2017) studied found Panu says that loyalty is a deep relationship in back to re-purchase products or providing support continuing on favorite products and services by ignoring the influence of situations and marketing efforts that are likely to cause behavioral changes.

Concluding, customer loyalty is the intention and behavior of customers that are bound to buy products or services that they consistently satisfied. Customer loyalty is involved in both the buying behavior and the attitude of the customers towards the products and services, including service providers and service organizations. When the customer has a good attitude and good long-term relationships between customers and the organization will result in consistent buying behavior and

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participation in the protection of products, services, and service organizations that they are satisfied.

2.4.1 The Relationship between Customer Satisfaction and Customer Loyalty

The American Society of Quality (ASQ) studies customer satisfaction resulting in a competitive advantage found that the cause of high business losing customers by 68% due to dissatisfaction in products and services. This means that if we are able to satisfy our customers with the service, not only can we retain 68% of our customers, but we can also compete for 68% of our competitors who are not able to satisfy them as well. Customer satisfaction is often reflected in the nature of loyalty in the product or company which represents the company's profits. Customer loyalty will result in customers buying that product many more times because customers have learned about the product which the products meet the needs and make the customers feel satisfied (Wanlika, 2016).

Figure 2.3: The Relationship between Customer Satisfaction and Customer Loyalty

Anderson and Sullivan (1993) study about customer satisfaction found that, customer satisfaction will positively affect re-purchase behavior, and that customer satisfaction and customer loyalty both have a positive correlation. Karolina (2013) noted the customer satisfaction index as a base for managing new strategic marketing related to merchant services that can affect customer loyalty.

Abdullah, Amjad, and Husain (2000) pointed out, there are a number of studies suggest that customer satisfaction will determine customer loyalty. On

Service efficiency Price Customer expectation Customer Satisfaction Customer Loyalty

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the other hand, Oliva, Oliver, and Macmillan (1992) pointed out that customer satisfaction and customer loyalty the relationship between is a nonlinear correlation. When satisfied with the level of customer satisfied above the critical point, the willingness to make customer satisfaction increased rapidly increased to buy; conversely, the satisfaction level of customer satisfaction is lower that the critical point when the customer satisfaction will be reduced rapidly of purchase intention. While, Hellier, Geursen, Carr, and Rickard (2003) believes that companies should not just pay attention to customer satisfaction only, but should concern real customer loyalty.

2.4.2 The Relationship between Trust and Customer Loyalty

Platform trust or reliability in service data storage or the various trading procedures that are very important. If the customer's financial information is leaked, it is considered highly unsafe. Customers may lose their savings in seconds. Some online customers always choose to shop on a trusted platform. The trust of the website will make customers confident that this purchase will receive a safe service for personal information and privacy, others must not be able to access their personal information (Nuntapon, Kwankamol, and Sareeya, 2018). Trust of stores or products customers may find by reading reviews, people who have previously bought products or from blogger and then bringing the information all to compare assess the value assess confidence in the store combined with the availability of financial liquidity until the response or making a purchase decision (Phatsita and Thirawat, 2016). The credibility that is established is a guarantee of security for customers. When the service of that platform is reliable customers will trust and buy products. Once the product has been purchased and received a safety impression, it will allow customers to repurchase in the future.

Figure 2.4: The Relationship between Trust and Customer Loyalty Security

Privacy

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CHAPTHER 3 : RESEARCH METHOD

3.1 Research Structure

According to the literature review and research purposes, this study the factor leads to customer loyalty, also want to explore the impact of customer satisfaction and trust, including sub-topics that indirectly affect customer loyalty, whether directly affecting customer loyalty or not, therefore, according to the derivation the research framework of this study show:

Figure 3.1 Research Framework

3.2 Qualitative Method

In general, research is usually done by qualitative research to study the tendency of hypotheses. But in this research, I choose qualitative research. Qualitative research aimed is at studying social phenomena related to human behavior to explain the behavior of why humans behave like that and how that phenomenon relates to the environment. This is a study of the reason that there is a source in which human behavior is often determined by experience past understanding, emotions, feelings, beliefs, and values systems that hold and reasoning depending on the habits and thoughts of each individual. Maershall (1995) discussed the characteristics of qualitative research that must eliminate both the researchers and the theoretical bias,

Customer Satisfaction - Price - Customer Expectation - Service Efficiency Customer Loyalty Trust - Security - Privacy

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the work method must be clear, the data collected must be able to be analyzed and re-examined, recorded as writing, researchers must be sensitive and ethical. In addition, Macintyre (2000) Schmuck (2006) discusses the method of conducting qualitative research in the form of interviews that have the advantage of being able to ask important issues until the details are deep and complete. The good for this method is before the interview the researcher can make a relationship with the person who give the data collected to be trusted, suitable for confidential information or sensitive issues that data providers do not want to record as evidence but want to speak out.

The advantages of conducting qualitative research are in explaining the details of the study. Focus on understanding social behavior and interaction within various contexts. In which, the researcher must understand the views of the informant and accept the subject's identity. Analyze the story and social life may change according to the conditions of time and situation. That will direct to this study that wants to study opinions. The researcher, therefore, has chosen a qualitative research method to get the best results.

3.3 Data Collection Technique

In this study, the researcher used quality data collection by choosing the interview method to collect data. The researcher thinks that data collection using this method will best serve the purpose of this research. The interview will found the real factors that actually affect the interviewee and can search for other factors that will affect Thai customer loyalty directly. The researcher taking time from the semester break to travel back to Thailand and finding Thai interviewees. I searching for 10 interviewees, divided into 5 male and 5 female interviewees. The interview will take approximately 15-20 minutes per person. This interview as an open-ended interview, asks reasons and opinions including recommendations for data analysis. The method of data collection must initially be familiar with and trust to let the interviewee feels relaxed before entering the interview in order to get answers that truly come from the mind of the interviewees.

The other way, the person participating in the interview may be part of the interviewer who knows each other for easy data collection, because we are familiar

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and know each other well. About the process, before the interview, I will ask for cooperating and make an appointment to meet each other. The interview will be a face-to-face interview only. I will tell interviewees about recording for later study and analysis. Interviewees’ selection will have an inquiry for an online shopping experience. The interviewees must have more or less experience in online shopping. The interview will ask both the answer and the reason. End asking with an open-ended question for the interviewee to express personal opinions. The purpose of the research, the researcher laid out the main questions for interviewing lead to online customer loyalty. The principle of choosing the interviewees is to choose general people with the online shopping experience, love to shop online, and have various views. After the interview, the researcher will get an audio clip and will be used to change the information to the alphabet of the dialogue and continue to analyze the results of this research.

3.4 Interview Questions

This research will start with questions asking for personal information. Then, asking about the experience of online shopping. Next, ask about the variables that affect the customer loyalty of the interviewees. Last, concluding with an inquiry for further comments. According to the following table, Table 3.1 lists the names of interviewees, and Table 3.2 shows interview questions respectively.

Table 3.1: Selection Interviewees

Interviewees Name I1 Anothai J. I2 Siriprapha J. I3 Pittinun P. I4 Chawakorn L. I5 Chenkamol S. I6 Nattida K. I7 Pasin T. I8 Kodchakorn K. I9 Pacharakit D. I10 Phanurat M.

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Table 3.2: Interview Questions

Part Questions

First part: personal information Name: Age: Sex:

Occupation: Second part: online shopping

experience and online shopping information

Do you have online shopping experience? How often you online shopping?

How much you spend for online shopping per month?

Which website is your favorite online shopping?

What factor make you be customer loyalty?

Do you have any experience that you change the website shopping?

Third part: factor make customer loyalty

Do you think “Satisfaction” is important to make you be customer loyalty?

Do you think “Price” is important to make you be customer loyalty?

Do you think “Customer expectation” is important to make you be customer loyalty?

Do you think “Service efficiency” is important to make you be customer loyalty?

Do you think “Trust” is important to make you be customer loyalty?

Do you think “Security” is important to make you be customer loyalty?

Do you think “Privacy” is important to make you be customer loyalty?

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Fourth part: personal viewpoint If “Satisfaction” consisted of price, customer expectation, and service efficiency, what you think is the most important? (Ranks 1, 2, and 3) If “Trust” is consisted of security and privacy, what you think is more important? (Ranks 1 and 2)

Fifth past: personal opinion What factor make you not loyalty? Do you have any other factors that you think are relevant to your loyalty in addition to those mentioned?

3.5 Data Analysis Technique

We use template analysis to differentiate data for greater clarity. Template analysis is a unique method of qualitative data analysis often use in the form of results of data collection. This may be any textual information, including notes from interviews or open-top questionnaires written surveys are also considered template analysis. Joanna et al. (2015) mentioned that template Analysis is a form of thematic analysis that emphasizes the use of hierarchical coding but balances a relatively high degree of structure in the process of analyzing textual data with the flexibility to adapt it to the needs of a particular study. On University of Huddersfield website (https://research.hud.ac.uk/) mentioned that analysis template analysis involves the development of a coding ‘template’, which summarize themes identified by the researcher(s) as important in a data set, and organizes them in a meaningful and useful manner. This will make it easier for readers to access the results of the data because the data has been organized in proportion.

Analysis often starts from the big topic to the subtopics. Template analysis is simply a format that makes it easier to analyze the data or the data that needs to be examined but does not prove to be useful. Therefore, data analysis using template analysis is only to manage all the data that the researcher receives and carry them separately so that it will help those who are reading this research can more understand. And Nigel (2016) said about template analysis that there are many ways

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in which styles of analysis can be categorized, and thus useful for researchers who need to decide which style would best suit their needs.

However, the researcher will define and compile all relevant information, identify and consider carefully from the operation of the audio files collected, in the hope that template analysis serves as the basis for the researcher's interpretation or illumination of the data set and the writing up of findings.

3.6 Data Validity

The accuracy of the test will tell how well the test can be measured. Validity tells us what can be referenced from the test scores. Guilford (1988) has given the definition of validity that in a general sense the accuracy test is to find the correlation. The quality of the generated tests can predict the future of behavior also controls the definition that the accuracy of the test is equal to the correlation of the test created with the measured components which is not like confidence. Accuracy is not a common feature of the test but is a feature that has a specific aim point. Therefore, tests or questionnaires should have the highest accuracy in one objective, but not all of the objectives should be validity.

In addition, Cureton (1988) in the first chapter of the educational measurement book is defined as the relationship of the observed scores of the tests to the actual scores. We show the difference in validity testing from the predictive power of the test. By definition, it is the relationship between the observed score of the test and the observable score criteria. Both differences are called relevance, which is the relationship between the true score of both the predictor and the criteria. But because the research data of this researcher is not a test research quantitative data collection resulting in no precise criteria then the researcher examined the validity of the data collection by taking the audio files that have been recorded and convert them into articles or text files for verification once again.

The validation was done by checking the data collection again from the interviewees. The researcher was send a letter file to the interviewees to check whether the information is correct to the meaning that they mean at that time or not. If the interviewees want to edit some of the information, it can be done now so that the information meets the interviewee's needs in all respects and to give the

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information that the researcher received is accurate to the meaning of the interviewees for the most accurate results in this research. In addition, template analysis for the accuracy and precision of procedures or processes will validation again by an academic expert in the template analysis, which was the adviser of this research.

Lastly, the second validation was done by the reviews triangulation analysis. This analysis did by data analysis from non-researchers to review the findings from the analysis. This process will be carried out by interviewees and an expert to ensure that the data analyzed and the results of the analysis are correct. The experts who validated the results at this stage is an expert who is the adviser of this research.

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CHAPTHER 4 : RESEARCH RESULTS

4.1 Finding

4.1.1 Description of interviewee’s profile

The researcher was collected the data from January 15th to February 10th in

Thailand by finding people who the researcher think they are appropriate including inquiring about the date and time that is appropriate for requesting cooperation to interview. By collecting this information, use face to face interviews only, no online interviews. In which the interviewee must have main criteria that have prior experience in online shopping. The overall interviews took approximately 15-20 minutes per person. This research consisted of 10 interviewees, there are 5 males and 5 females mainly concentrated in the age group 25 years old to 30 years old is 50% (5), the second high is 31 years old to 35 years old is 30% (3), and last is 20 years old to 25 years old is 20% (2). In the “occupation”, mainly concentrated in full time employee who is accountant (1), banker (1), government officer (1), sale employee (1), and teacher (1). There also have other sector, 2 people are business owner (20%) and 2 people are student (20%). In “numbers of online shopping per month”, there are 90% of interviewees have 1 time to 5 times shopping per month (9) and 10% is 6 times to 10 times shopping per month (1). Furthermore, this study also found 80% of interviewees have “amount of online shopping per month” 1ntd to 5,000ntd per month (8), and 20% have 5,001ntd to 10,000ntd per month(2). Profile distribution of interviewees as shown in Table 4.1.

Table 4.1: Profile Distribution of Interviewees

Information Frequency Percentage

Gender Male 5 50%

Female 5 50%

Age 20 ~ 24 years old 2 20%

25 ~ 30 years old 5 50%

31 ~ 35 years old 3 30%

Occupation Accountant 1 10%

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26 Business owner 2 20% Engineer 1 10% Government officer 1 10% Sale employee 1 10% Student 2 20% Teacher 1 10% Numbers of online shopping per month 1 ~ 5 times 9 90% 6 ~ 10 times 1 10% Amount of online shopping per month 1 ~ 5,000ntd 8 80% 5,001 ~ 10,000ntd 2 20%

1 NTD = 1 THB (An exchange rate in Feb 2020)

4.1.2 Overall shopping experience

The data of interview of interviewees as shown in Table 4.2 and Table 4.3. These contain the second part of the interview about the online shopping experience and online shopping information. In this section, inquire about the interviewee's online shopping experience and the reasons for changing the website to shop online as shown below. After this the code in the table shows the respective of interviewees by number, "I" means interviewee. After "I" followed by the number of interviewees respectively.

Table 4.2: Online Shopping Experience and Online Shopping Information

Questions Interviewee Answer

Which website is your favorite online shopping? I1 Lazada I2 Facebook I3 Facebook I4 Shopee I5 Shopee I6 Lazada I7 Shopee

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27 I8 Instagram I9 Lazada I10 Facebook What factor make you be customer loyalty? I1 Promotion.

I2 Trustworthiness of stores and sales person. I3 Easy to contact with seller.

I4 Variety of options, the quality is not much different and cheap.

I5 Price and care customer process.

I6 Promotion and discount code.

I7 Variety of options.

I8 Beautiful image.

I9 Service and promotion.

I10 Regular use Facebook.

Do you have any experience that you change the website shopping?

Interviewee Answers From Move to

I1 Yes True shopping Lazada

I2 Yes Shopee Facebook

I3 Yes Lazada Facebook

I4 Yes Instagram Shopee

I5 Yes Instagram Shopee

I6 Yes Directly shop’s

platform

Lazada

I7 Yes Instagram Shopee

I8 Yes Shopee & Lazada Instagram

I9 Yes Shopee Lazada

I10 Yes Instagram Facebook

Table 4.3: The Reasons Why the Interviewee Change an Online Platform

Interviewee Reasons

I1 Didn’t found the product want to buy.

I2 The real product didn’t same with image. I3 Hard to contract the seller.

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I5 No promotion and discount.

I6 Can’t compare information between shops.

I7 Didn't found the product want to buy.

I8 Image didn’t look good.

I9 Didn't found the product want to buy.

I10 Always use Facebook.

4.2 Finding of the Template Analysis

The results of the interview are presented in the template analysis by the figure of each content. The study found that there are many factors that affect the loyalty of online customers in Thailand. Factors that affect loyalty include satisfaction, price, customer expectation, service efficiency, trust, security, and privacy. The answers of the interviewees were "Yes" and "No" together with the reasons for those answers as follows:

4.2.1 Satisfaction affect customer loyalty

In the interviews of all 10 interviewees, satisfaction is a factor that all interviewees, responded that affects the loyalty of repeat purchases by referring to previous purchases that affected their loyalty causing them to return. There are a variety of reasons as follows.

Figure 4.1: Evident of “Satisfaction” Important to make Customer Loyalty

Satisfaction Customer Loyalty

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Figure 4.1 shows all of the interviewees answer “Yes” for satisfaction affect customer loyalty as strongly evidence “Satisfaction” affects an online customer loyalty. And Table 4.4 shows the reason that each interviewee mentioned.

Table 4.4: The Reasons of “Satisfaction” affect Customer Loyalty

Interviewee Reasons

I1 Satisfaction is the key to making a human do something again. I2 If I’m not satisfied with the shop I will not back to shop again. If

I back to buy again that's means I satisfied something from that shop may be the product or maybe the seller.

I3 If I satisfied when I have received that item at the first time I will back to shop others but I also look at other things such as appearance, products, clarity, honesty, reviews, and pictures. I4 After I satisfy don’t want to take a risk again. I mean that shop

going to be the one I trust there are the good shop, I didn’t want to find new shop again.

I5 I’m online shopping focuses on satisfaction. I6 Satisfied can make I’m loyal.

I7 I always shopping with the shop that I satisfied the price with. I8 I think it depends on the person. But for me, if it’s good and I'm

satisfied so I’m loyal.

I9 Satisfaction makes me still back to shopping that shop.

I10 I prefer shopping online to find something that I satisfied with more than walk-in shopping at the department store.

4.2.2 Price affect customer loyalty

Price is another factor that most interviewees give importance. Some interviewees say that they choose to shop online because the price is what attracts them to buy more than going to the department store. Which some stores are more expensive than online. Price is one thing that can affect online

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shopping very much, including resulting in customer loyalty in that store as well.

Figure 4.2: Evident of “Price” Important to make Customer Loyalty

Figure 4.2 shows 9 interviewees answer “Yes” and only 1 interviewee answer “No” for price affect customer loyalty. This figure shows 90% of the interviewees agree that the price leads to customer loyalty. And Table 4.5 shows the reasons why "Yes" and "No"

Table 4.5: The Reasons of “Price” affect Customer Loyalty

Interviewee Answer Reasons

I1 Yes I online shopping because it's cheap. Going back and buying again is because I can't find a cheaper price. I2 Yes But not the most it’s depend on quality of product.

I3 Yes When shopping I will look at many websites to

compare price but if prices have a few different I will choose which shop more trust.

I4 Yes Before online shopping, I always compare prices before making an order.

I5 Yes I want to pay a cheap price. If very cheap, I don't want to find a new shop back to buy with them twice for sure. I6 Yes If first time I don’t satisfied with price after that I will

find new shop.

9 interviewees answer “Yes” 1 interviewees answer “No”

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I7 Yes Cheaper is better than the expensive one.

I8 No On Instagram is more expensive but I'm still shopping.

I9 Yes Cheap price is better. I can keep the money to spend on other things.

I10 No The price must be reasonable. If the price doesn't make a sense, don't go back and buy again.

4.2.3 Customer expectation affect customer loyalty

Customer expectation affect only part of customer loyalty. Some interviewees said that they don't consider this much because there are other factors that affect their online purchases more than their expectations. Therefore make me get the interview results as follows

Figure 4.3: Evident of “Customer Expectation” Important to make Customer Loyalty

Figure 4.3 shows the interviewees who responded that their expectations affect customer loyalty are 6 people of interviewees (60%). The remaining 4 interviewees (40%) say that it does not affect. They give reasons as in Table 4.6.

Table 4.6: The Reasons of “Customer Expectation” affect Customer Loyalty

Interviewee Answer Reasons

I1 No Probably not related. I didn't expect anything. 6 interviewees answer “Yes”

4 interviewees answer “No”

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I2 Yes I expect to have a good quality as same as the first time or better than that.

I3 No Not that much. It would be about satisfaction more than expectations.

I4 No Because I’m looking for the cheapest not expect that should be the best one.

I5 Yes Expect to get all good things again. But sometimes I'm not expecting.

I6 Yes The first time will be great the second third fourth also expect to be great too.

I7 No I didn’t expect anything in online shopping.

I8 Yes If the first time I had a good experience the second I'll expect to get it again.

I9 Yes The first time is not. But I think I expect to have a service mind the same as the first time.

I10 Yes I’m expect to have new experience that better than the first time.

4.2.4 Service efficiency affect customer loyalty

About service efficiency, they were answering differently. There are 8 people of interviewees say that service efficiency or the online store's service is very important and it affects their loyalty. While the other 2 responded that the service didn't affect his loyalty to online shopping at all.

Figure 4.4: Evident of “Service Efficiency” Important to make Customer Loyalty

8 interviewees answer “Yes”

2 interviewees answer “No”

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All 10 interviewees have different reasons for the effect of the online store's services. Some interviewees pay full attention. Some interviewees don't pay attention at all because there are other things that are more important. There are reasons shows in Table 4.7.

Table 4.7: The Reasons of “Service Efficiency” affect Customer Loyalty

Interviewee Answer Reasons

I1 Yes Cheap price and good service too. Including the service after sale. Certainly, going back to buy.

I2 Yes The seller must have a good service mind to service their online customer. When I’m a customer I also need good service too. Good service will remind me that this shop welcoming, like a good talk I would like to order again.

I3 Yes When I ask some questions, the seller should reply as

quickly as possible and the way they answer should be polite, let me feel friendly or sometimes they can remember my name.

I4 No I don’t think the cheap one must have good service. I

search only the cheapest price doesn't mind the service efficiency.

I5 Yes Thai people like seller who take care of customers. That’s affect my loyalty.

I6 Yes I need good service efficiency to make good online shopping experience and after that also want too. I7 No I don’t like to talk with the seller just order.

I8 Yes Good service is one thing that impressed me.

I9 Yes The service mind can show the attention of the seller. I’m not sure every people want to be an important person or not but I want. I want to ask more information want the seller to pay attention and take time to answer me.

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I10 Yes Good service made me loyalty too. Good service is mean the seller really care customer that made me feel important.

4.2.5 Trust affect customer loyalty

The credibility of online stores is very important in Thai society. Because online shopping in Thailand tends to continue cheating. Either a large amount or a little depends on the price of the product. Some news is famous, so this may be one of the reasons why Thai people are interested in the reliability of the store. According to the results of the interview, all interviewees, agree that trust strongly affects their loyalty, as in Figure 4.5

Figure 4.5: Evident of “Trust” Important to make Customer Loyalty

The reason for the interviewee's belief that trust is important, some give similar reasons. Some interviewees said that trust affects their customer’s loyalty and also affects things other than customer loyalty or repeat purchases, as in Table 4.8.

Table 4.8: The Reasons of “Trust” affect Customer Loyalty

Interviewee Reasons

I1 Some products need trust. Such as cosmetic it’s real or fake very important, need trust.

I2 If unreliable I probably won't return to order again.

Trust Customer Loyalty

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I3 Trust is important to me. It’s will be the first reason to choose a shop for online shopping.

I4 If bought and doesn't work probably wouldn't go back and buy again because I don't trust it.

I5 Online shopping is easily cheated we must focus on trust.

I6 We don’t face-to-face buy the product so I need trust that after I transfer money I'll receive the product.

I7 If unreliable I don’t dare to buy. That’s risk maybe after I transfer money the seller might not send the product to me.

I8 Online shopping is full of risks. Trust can make me take a repeat purchase.

I9 Trust is important to me. It’s will be the first reason to choose a shop for online shopping.

I10 Online shopping is cheap but has to be exchanged with trust. Must believe in the first time that after transferring money I’ll receive the product. Once reliable, then okay I can go back and buy again.

4.2.6 Security affect customer loyalty

In this study, data security is part of the trust. Online shopping in some platforms required the customer filling financial information such as credit card codes or bank account numbers. This also includes certain types of personal information that can lead to personal insecurity. As mentioned before, the danger of online shopping in society causing all the interviewees to answer in one answer that the security of their data is important and can affect their customer loyalty.

Figure 4.6: Evident of “Security” Important to make Customer Loyalty

Security Customer Loyalty

數據

Figure 1.1: Moderated effect of E-satisfaction on E-loyalty.
Figure 1.2: Research Procedure Research Background Motivation & Objectives
Figure 2.1: The Origin of Online Platform
Figure 2.2: Relevant Factors Developed from the ACSI Model
+7

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