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ISSN : 2288-4637(Print)
ISSN : 2288-4645(Online)
The Journal of Asian Finance, Economics and Business Vol.6 No.1 pp.195-203
DOI : http://doi.org/10.13106/jafeb.2019.vol6.no1.195

The Impact of Click and Collect’s Service Quality on Customer Emotion and Purchase Decision: A Case Study of Mobile World in Vietnam

Quang Hung Le1, Luu Thanh Tan Nguyen2, Ngoc Tram Anh Pham3
2 Lecturer, Faculty of Business Administration, Ho Chi Minh City University of Technology (HUTECH), Vietnam. E-mail: nlt.tan@hutech.edu.vn
3. Lecturer, Faculty of Business Administration, Ho Chi Minh City University of Technology (HUTECH), Vietnam. E-mail: pnt.anh@hutech.edu.vn
1 First Author and Corresponding Author. Vice Dean, Faculty of Business Administration, Ho Chi Minh City University of Technology (HUTECH), Vietnam [Postal Address: 78 Vo Oanh, Ward 25, Binh Thanh District, Ho Chi Minh City 70 000, Vietnam]. Tel: +84-91-679-8955, E-mail: lq.hung@hutech.edu.vn
December 31, 2018 January 8, 2019 January 14, 2019

Abstract

The study aims to identify Service Quality factors that affect purchase decision on Click and Collect service through the mediating variable of customer emotions at Mobile World stores in Ho Chi Minh City. This study employs a mixed methods research design. Data were collected through online self-completion questionnaire distributed to 316 customers who used to experience Click and Collect service at the Mobile World stores in Ho Chi Minh City, Vietnam. The theoretical model was tested through two-stage regression analysis (PATH model). The findings show that factors of service quality such as Reliability, Responsiveness, Assurance, Empathy, Tangibility, and Emotions affect the decision to purchase online and receive products directly at Mobile World stores in Ho Chi Minh City. Responsiveness and Assurance have a significant positive impact on the customer's emotions. Consequently, these factors should be considered and addressed when conducting multi-channel services. Obviously, employees must first be trained to be able to deliver the promise of the retailer to their customers. Based on the results of the study, the authors provide managerial implications for retailers in Vietnam in the multi-channel retail environment to develop Click and Collect at retail stores across the country and the world.

JEL Classification Code: L81, M31, M54.

초록


1. Introduction

 

In the context of today's harsh economy, due to the decline in consumption, changes in habits and fierce competition in the consumer market, supermarkets are now facing a lot of challenges. In recent years, multichannel retailers are gradually occupying retail positions. Multichannel retailing comprises a range of activities conducted through multiple channels to sell goods and services to customers. However, besides the advantages of multi-channel operation, retailers are facing many challenges in delivering and maintaining integrated multi-channel service quality. Clearly, the impact of multichannel retail services, specifically Click and Collect on shopping behavior is more complex than single-channel service because of the multi-channel consumer behavior that narrows the boundaries of classic online channels and physical channels.

This study explores the effectiveness of Click and Collect service as an atmospheric factor contributing to change customer emotions and behavioral responses, namely purchase decision. The objective of the study was to determine service quality factors and to conceptualize a theoretical framework of factors influencing the purchase decision to use Click and Collect service at the Mobile World Stores in Ho Chi Minh City. Specifically, researchers reviewed the research model proposed by one of our research members in the current context of multi-channel retailing in Vietnam instead of the UK multi-channel retailing (Nguyen, Jamal, O’Brien, & Nawaz, 2017). Instead of the dependent variable being the repurchasing intention, the research focused on the dependent variable is purchase decision to use Click and Collect at the Mobile World stores in Ho Chi Minh City since this service is relatively new in Vietnam. We then built up the customer emotions factor that emphasizes satisfaction and excitement contributing to perfecting this theoretical model. This topic was also analyzed by the PATH model in August of 2018, it was not only an experimental test on the model through the intermediate variable – Customer emotions factor but also was compared with the model tested by Nguyen et al. (2017) to demonstrate the reliability of each model.

 

2. Literature Review and Hypothesis Development

 

2.1. Click and Collect Service in the Context of Multi-channel Retailing

 

Hsieh, Roan, Pant, Hsieh, Chen, Lee, and Chiu (2012) argued that brick-and-mortar stores are portrayed as the only marketing channel that businesses use to interact directly with customers and vice versa. However, according to Pantano and Naccarato (2010), this type of channel is transitioning to a multi-channel stage as enterprises are gradually introducing new interactive technology in the store to implement a new type of service called Click and Collect. The results of Chatterjee (2010) and Hsieh et al. (2012) found out that at multi-channel retailers offering Click and Collect service, a customer could initiate a shopping transaction on one channel and then complete a transaction at another. In Vietnam, this business model has been applied in stores of giant retailers in big cities such as Ha Noi and Ho Chi Minh City. Mobile World is known as one of the first movers in the application of multichannel-retailing. With the appropriate investment on technological advancement, Mobile World stores now allow their customers to purchase smartphones and accessories at any time and any place that they demand.

 

2.2. Service Quality

 

In the field of goods, quality means conformance to requirements, or no defects (Parasuraman, Zeithaml, & Berry, 1988). However, existing knowledge of quality in the field of goods is not sufficient to understand the service quality. Parasuraman et al. (1988) proposed SERVQUAL to measure service quality including five factors of reliability, visibility, empathy, responsibility and assurance. According to Parasuraman et al. (1988), service quality is the distance between customer expectations and their perceptions when using the service. He is considered the first researcher to study the service quality specifically in the field of marketing with the introduction of a 5-gap model in service quality. Parasuraman et al. (1988) came to the conclusion that service quality consists of five basic components, namely Reliability (the ability to provide the service as promised to customers), Responsiveness (the willingness and willingness of the staff to deliver the service quickly), Assurance (the professional level, professionalism, respect and the way to serve the customer, courtesy), Empathy (the attentive service, special attention to customers and the ability to understand the unique needs of customers), and Tangibles (the appearance, costumes of service personnel, equipment for service).

Gummesson (1991) argued that utilities and customer satisfaction should be taken into account when determining the customers’ perceived quality, which is a blend of objective reality and subjective opinions, knowledge as well as unknowledge. Taylor and Baker (1994) suggest that the concepts of Parasuraman et al. (1988) represents for the full significance of service quality. The latter study implemented by Zeithaml and Bitner (2003) argued that service quality is defined as the result of a customer's expectation of service quality and perception. They are about the actual results of the quality of service provided. The results of Yarimoglu (2014) argues that these five factors are compatible with the three complementary components of service marketing mix (3Ps) that are physical evidence, people and process conditions that determine the quality of the Click and Collect service in the context of multi-channel atmosphere.

 

2.3. Store Atmospherics

 

Poncin and Mimoun (2014) stated that the store atmosphere is used as a marketing tool, allowing retail managers to design and control environmental elements to reach customer behavior and create a positive shopping experience for the customers. According to Baker (1992), the elements in the atmosphere include three groups of social, design and spatial factors. However, Turley and Milliman (2000) suggested that the in-store environment is formed by five environmental variables including internal, external variables, design and placement, shopping area and people. This study combines two climate models of Baker (1992) and Turley and Milliman (2000) to analyze the variables of multi-channel retailing, namely the Click and Collect service.

 

2.4. Customer Emotions

 

Customer emotions are personal states, private and subjective which could change differently in response to the environment, and obviously it varies within a customer and across customers, and gets reflected as a psychological arousal. The work of Mehrabian and Russell (1974) is the most widely cited and is known as the Stimulus-Organism-Response (S-O-R) model and the Pleasure-Arousal-Dominance (P-A-D), which is used to explain customer emotions in the surrounding environment. Turley and Milliman (2000) argued that the S-O-R model is intended to explain the concepts and spatial relationship of stores, consumer sentiment and shopping behavior through three stages with social and environmental stimuli playing role in peripheral premises to the object. Hsieh et al. (2012) added that this model suggests that environmental stimuli (S) leads to human emotional responses such as emotional states, satisfaction, attitudes, and retail quality perception (O), thereby affecting behavioral responses (R) such as willingness to stay and spend, become loyal and sustainable. In this paper, researchers employ the S-O-R and P-A-D to explain the ways in which customer emotions are affected by atmospheric stimuli, namely factors of Click and Collect service quality.

 

2.6. Purchase Decision

 

According to Turley and Millian (2000), purchase decision can be explained from the atmospherics perspective. Undoubtedly, within a pleasant ambient condition, consumers will be likely to be stimulated to pay more and buy again. These stimulations contribute to enhancing purchase decisions. Hellier, Geursen, Carr, and Rickard (2003) defined purchase decision as the consumer's judgment about buy or patronize a designated product/service more often in the future from the same firm. In the latter study of Hogg and Penz (2008), such emotional states like enjoyment, pleasure and arousal lead to the willingness to purchase. A customer will determine to purchase a product or service if he/she believes that the emerging outcome is beneficial (Wu, Lee, Fu, & Wang, 2014). In other words, if consumers have a good shopping experience during service encounters, they are more likely to come back for future purchases compared to those who have a negative shopping experience.

 

3. Research Methodology

 

3.1. Operationalization of Constructs

 

Two qualitative and quantitative methods are used in the process of the research, the models and the hypotheses of the factors of Click and Collect service at the Mobile World stores in Ho Chi Minh City.

 

3.2. Qualitative Research

 

Qualitative research was conducted through focus group discussions with five lecturers, five business specialists and five customers who used Click and Collect service. The groups discuss directly to explore scales, aiming to adjust and add to suit the research context in Ho Chi Minh City. Therefore, this method is used to adjust and add observational variables used to measure concepts in the research model. Each sentence will be a statement of a criterion considered as the basis for the study. Based on this qualitative research, the questionnaire was completed and used for quantitative research. The 5-level Likert scale is chosen from 1 point - representing a very disagreeable, up to 5 points - indicating very agreeable levels. The official questionnaire consisted of 31 observation variables corresponding to 7 scales of the research model.

The scale is designed as follows:

The concept of Reliability is denoted by RELI and measured by the following 5 observed variables:

 

 

 

The concept of Responsiveness is denoted by RESP and measured by the following 4 observed variables:

 

 

The concept of Assurance is denoted by ASS and measured by the following 5 observed variables:

 

 

The concept of Empathy is denoted by EMPA and measured by the following 4 observed variables:

 

 

The concept of Tangibility is denoted by TANG and measured by the following 5 observed variables:

 

 

 

The concept of Emotional status is denoted by EM and measured by the following 6 observed variables:

 

 

 

The concept of Repurchase decision is denoted by RPU and measured by the following 3 observed variables:

 

 

3.3. Quantitative Research

 

3.3.1. Sampling Method

 

The surveyed customers are those who have used the online shopping service at the Mobile World stores in Ho Chi Minh City. Convenience method was chosen to interview customers directly. The survey period is from 1 June 2018 to July 31, 2018. A total of 350 questionnaires were distributed, there were 330 ones collected, in which there were 316 valid ones.

 

3.3.2. Research Process

 

The research process began with the formation of research objectives and the proposition of theoretical framework. The draft scale was then finalized by a focus group interview (n = 15). The formal scale was finally formed and the quantitative research method is employed to quantify factors of Click and Collect service quality influencing consumer buying behaviors after encountering the multichannel service provided by Mobile World stores in Ho Chi Minh City. Primary data was subsequently processed by software SPSS 20.0 to measure the impact of the factors on both customers’ cognitive and behavioral responses using Cronbach’s Alpha, Exploratory Factor Analysis, Multiple linear regression, Path analysis. The questionnaire was designed based on 5-likert scale to test factors of Click and Collect service quality on customer emotions and purchase decisions.

 

4. Research Findings

 

4.1. Assess the Reliability of the Scale by Cronbach's Alpha

 

There were 5 observed variables that failed to achieve reliability (α <0.7). They were rejected as RELI5, RESP1, TANG5, EM5, EM6 (Table 1).

 

 

 

 

 

The findings of measurements of the seven component scales were significant with a Cronbach’s Alpha coefficient of 0.7 and the observed variables in the component scales had a coefficient of Total Correlation greater than 0.3. Consequently, the observed variables of this scales are maintained for the next step of EFA.

 

4.2. Results of EFA Analysis

 

With the Axis Component and Promax Turning methods, the results of the first EFA analysis revealed that the observation variable RELI4 was rejected because the factor loading factor was less than 0.5. Moreover, the results of the second EFA analysis showed that all seven variables were retained as the initial model. Bartlett's test of sphericity showed that the variables in the overall were correlated (sig = 0.00 <0.05). At the same time, the coefficient KMO is 0.722, greater than 0.5, demonstrating that the factor analysis to group the variables together is appropriate and significant data for factor analysis. The factors had Eigenvalues greater than 1, with seven factors extracted from 25 observed variables. Fractional error is 68.96%, greater than 50% that is significant. This shows that eight factors extracted, demonstrating the ability to explain 68.96% change in dependent variable in the whole (Table 2).

 

 

 

 

 

The findings of the last factors were collected as follows:

  • Empathy: There are 4 observation variables: EMPA1, EMPA2, EMPA3, EMPA4.
  • Assurance: Four observation variables are ASS1, ASS2, ASS3, ASS4.
  • Tangibility: There are 4 observation variables: TANG1, TANG2, TANG3, TANG4.
  • Responsiveness: There are 3 observation variables: RESP2, RESP3, RESP4.
  • Reliability: There are 3 observable variables: RELI1, RELI2, RELI3.
  • Emotional state: There are 4 observable variables: EMO1, EMO2, EMO3, EMO4.
  • Decision to repurchase: there are 3 observation variables are RPU1, RPU2, RPU3.

 

4.3. Multivariate Linear Regression Analysis

 

The coefficient of R square is 0.543, which means that the linear regression model was constructed in accordance with the 54.3% data. In other words, 54.3% of the emotional state is explained by the regression model. The rest is due to errors and other factors. Durbin Watson = 2,090 in the range of [1 <D <3], so there is no correlation of residuals (Table 3).

 

 

 

 

 

Considering t-stat and tα / 2 of variables for reliability measurements, independent variables RELI, EMPA, TANG, RESP, ASS were met by t-stat greater than 1.9676 and Sig. values presents relatively high reliability, greater than 0.05. In addition, the VIF coefficients of the Beta coefficients are less than 2 and the Tolerance coefficient is greater than 0.5, indicating no multi-collinearity occurs.

 

Emotional state = 0.283 * Empathy + 0.275 * Tangibles + 0.306 * Assurance + 0.333 * Responsiveness + 0.261 * Reliability

 

The results in Table 4 show that all five factors RELI, EMPA, TANG, RESP and ASS have the same effect on emotional state. It means that the higher the RELI, EMPA, TANG, RESP, ASS are, the higher the emotional state is. This indicates that the feedback factor had the greatest impact (Beta = 0.333), the second highest assurance factor (Beta = 0.306), and the Reliability factor having the least effect (Beta = 0.261) (Figure 1).

 

4.4. Analyze the PATH model

 

The findings of the regression analysis using the PATH model showed that the Emotion State variable had a positive influence on the degree to which the decision to continue to use (R = 0.792), the coefficient R square is 0.628 (Table 4). The PATH model accounted for 62.8% of the Customer's Residual Use Change with Emotional State when using Click and Collect service at Mobile World Store in Ho Chi Minh City (Figure 2).

PATH regression: Decision to continue using = 0,792 * Emotional state

 

 

 

 

 

 

 

 

 

 

 

5. Results and Discussion

 

The study re-examined the model proposed by Nguyen et al. (2017) in the context of multi-channel retail in Vietnam (Figure 3).

Nguyen et al. (2017) carried out their research with the separation of service quality scales into two component scales with the following concepts: Virtual service with Tangibles and Reliability; Physical service with Responsiveness, Assurance, and Empathy as well as the separation of the emotional state scale into three component scales with the concepts consisting of Pleasure, Arousal, and Dominance, and each of these three variables becomes the intermediate variable for independent variables including virtual service and physical service, as well as dependent variable for Repurchase intention. Moreover, they created a correlation between the two independent variables Virtual service and Physical service with the dependent variable Repurchase intention. This correlation is needless to have in the above model. In the research model, the authors used all 11 linear and multivariate linear regression functions, which generated complexity in the analysis. The result of the coefficient of R square from these 11 regression functions was not high, the lowest is 0.216 (Multivariate linear regression function between Virtual service and Dominance) and the highest was 0.409 (Multivariate linear regression function between Physical service with Repurchase intention) showed the effect of independent variables on the dependent variable.

In this research, we proposed the Emotional state factor with six observation variables emphasizing on Satisfaction and Excitement to contribute to the improvement of the theoretical model. By measuring Cronbach's alpha reliability and the EFA (Rotated Matrix and Pattern Matrix), Emotional state factors remained 4 observed variables including EMO1, EMO2, EMO3, EMO4 in which it emphasized on the satisfaction (EMO2) and Interest (EMO3) in accordance with the original intention of the research team. This suggests that putting the emotional state into the PATH model is appropriate.

Stage 1: The five components of service quality including Tangibility, Reliability, Responsiveness, Assurance and Empathy have a positive correlation with the Emotional state (dependent variable). The Responsiveness factor has the greatest impact, the next is the Assurance and the lowest is the trust. Value R = 0.737 and R2 = 0.543.

Stage 2: The Emotional state has a strong influence on the decision to continue using the Click and Collect service. The Emotional state factor not only had a Cronbach's alpha coefficient of 0.800, R = 0.792 and R2 = 0.628 as independent variables correlated favorably with the dependent variable. The decision to continue using the Click and Collect service.

The analysis demonstrates that using the PATH model to test the relationship between Quality of Service, Emotional State and the Customer's decision to continue using Click and Collect services is appropriate.

The comparison of the PATH model with the model of Nguyen et al. (2017) aims to demonstrate the reliability of each model. It suggests managerial implications and recommendations not only to the leaders of Mobile World in Ho Chi Minh City, but also to individuals and businesses engaged in the context of Vietnamese multichannel retailing (Table 5).

 

6. Conclusion and Managerial Implication

 

Through the PATH analysis, this study provides detailed information for retailers on how to improve the quality of Click & Collect services through assessing the impact of five factors of quality of service: Reliability, Assurance, Responsiveness, Empathy and Tangibility. In addition, for customers to continue using the Click and Collect service, it is important to pay attention to their emotional state. This study also contributed to addressing the question of the future design of retail stores.

The findings also show the emotional state with satisfaction and enjoyment has a significant impact on the customers’ decision to continue using the services at Mobile World stores in Ho Chi Minh City. Therefore, this is a lesson for traditional retailers in Vietnam. To be able to improve sales and customer loyalty, retailers first need to focus on improving the quality of multi-channel services to create positive emotional states for their customers.

This study provides retailers with detailed information on how to improve the quality of Click and Collect services through a five-dimension evaluation of service quality. In addition, through the Click and Collect service review as part of an atmosphere that was largely ignored by previous researches, as well as discovering the interaction of customers with multi-channel retail platforms in the same retail setting.

This study also contributed to answer the questions of the future design of retail stores. Clearly, Click and Collect now operates as an additional service of traditional stores and therefore retailers are required to have places for sales and physical service improvements including the interaction between Employees and customers in the service encounter.

Retailers should adjust their retail strategy to gain information about customer preferences and habits and understand how customers interact with each channel independently to provide better multi-channel retail services. The use of advanced technology also allows retailers to collect customers’ specific information about other multi-channel shopping behaviors, which are then used to design customers’ loyalty programs and communications. However, this requires understanding of the different needs between age, sex and education.

To improve the quality of multi-channel services, visibility and reliability should be considered by ensuring that facilities, materials and communications materials as well as the places for new contact, Websites, social networks, to deliver promised and reliable services.

Responsiveness and Assurance have a significant positive impact on the customer's emotions. Consequently, these factors should be considered and addressed when conducting multi-channel services. Obviously, employees must first be trained to be able to deliver the promise of the retailer to their customers. In addition, employees are obliged to help their clients and communicate their trust and confidence.

 

 

Figure

Table

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