FPT UNIVERSITY

Department of Business Administration

  

Bachelor of Business Administration Thesis

An Analysis of The Enterprise Website Credibility

and Customer Engagement in E-commerce -
The Case Study in HCMC.

Group Members Huynh Thi My Hao SB60894

Nguyen Thi Thanh Hoa SB60781
Hoang Anh Quan SB60882
Tran Huynh Anh Tu SB61109

Supervisor MA. Bui Thanh Khoa

Ho Chi Minh, December 2018
 TABLE OF CONTENT

TABLE OF CONTENT ....................................................................................... i

ACKNOWLEDGMENT.................................................................................... iv
ABSTRACT ......................................................................................................... v
LIST OF TABLES ............................................................................................. vi
LIST OF FIGURES .......................................................................................... vii
LIST OF ABBREVIATION ............................................................................viii
CHAPTER 1: INTRODUCTION ...................................................................... 1
REASON OF THIS RESEARCH.................................................................. 1
Practical Problem .......................................................................................... 1
Theorical problem......................................................................................... 5
RESEARCH QUESTION.............................................................................. 6
RESEARCH OBJECTIVES .......................................................................... 7
RESEARCH SCOPE ..................................................................................... 7
Location ........................................................................................................ 7
Time .............................................................................................................. 7
RESEARCH METHOD ................................................................................ 8
SIGNIFICANCE OF RESEARCH ................................................................ 8
Theoretical .................................................................................................... 8
Practical ........................................................................................................ 9
RESEARCH STRUCTURE .......................................................................... 9
SUMMARY ................................................................................................. 10
CHAPTER 2: LITERATURE REVIEW ........................................................ 11
E-COMMERCE ........................................................................................... 11
Definition .................................................................................................... 11
Functions of E-commerce........................................................................... 11
Classification .............................................................................................. 12
THE PROCESS OF ONLINE SHOPPING ON WEBSITE........................ 12
THEORETICAL BACKGROUND ............................................................. 13
Theory of The Information Processing Model ........................................... 13
The enterprise of the website credibility in e-commerce ........................... 14
Customer Engagement ................................................................................ 18
THEORETICAL FRAMEWORK ............................................................... 23
Hypothesises ............................................................................................... 23

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 Proposed Model .......................................................................................... 26
SUMMARY ................................................................................................. 27
CHAPTER 3: RESEARCH METHODOLOGY ........................................... 28
RESEARCH PROCESS .............................................................................. 28
RESEARCH APPROACH .......................................................................... 29
Qualitative Research ................................................................................... 29
Quantitative Research ................................................................................. 29
DATA COLLECTION METHODS ............................................................ 30
Qualitative data collection method ............................................................. 30
Quantitative data collection method ........................................................... 32
DESIGN QUESTIONNAIRE...................................................................... 32
Questionnaire Structure .............................................................................. 33
Scale Construction ...................................................................................... 33
SAMPLING DESIGN ................................................................................. 34
Sampling Techniques ................................................................................. 34
Sample Size ................................................................................................ 35
DATA ANALYSIS METHOD ................................................................... 36
Descriptive Statistics .................................................................................. 36
Scale of Reliability ..................................................................................... 36
Exploratory Factor Analysis (EFA) ............................................................ 36
Confirmatory Factor Analysis (CFA) ......................................................... 37
Test Modeling with Structural Equation Modelling (SEM) ....................... 38
Testing Bootstrap ........................................................................................ 38
PILOT TEST ................................................................................................ 38
SUMMARY ................................................................................................. 39
CHAPTER 4: DATA ANALYSIS ................................................................... 40
RESPONSES AND MISSING VALUES ................................................... 40
DESCRIPTIVE ANALYSIS ....................................................................... 40
Gender ........................................................................................................ 40
Age ............................................................................................................. 40
Career.......................................................................................................... 40
Income ........................................................................................................ 41
The degree of purchasing ........................................................................... 41
VERIFYING RELIABILITY ...................................................................... 41
4.4. EXPLORATORY FACTOR ANALYSIS (EFA) ....................................... 42
CONFIRMATORY FACTOR ANALYSIS (CFA) .................................... 44
STRUCTURAL EQUATION MODELING (SEM) ................................... 50

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 TESTING BOOTSTRAP ............................................................................ 52
SUMMARY ................................................................................................. 52
CHAPTER 5: FINDINGS AND IMPLICATIONS ....................................... 53
5.1. KEY FINDINGS ............................................................................................ 53
5.2. MANAGERIAL IMPLICATIONS ................................................................ 54
5.2.1. Website Quality ............................................................................................ 54
5.2.2. Referral ......................................................................................................... 56
5.2.3. Reputatiom ................................................................................................... 58
5.3. LIMITATIONS AND FUTURE RESEARCHES ......................................... 59
5.3.1. Limitations .................................................................................................... 59
5.3.2. Future Researches ......................................................................................... 60
5.4. SUMMARY.................................................................................................... 60
APPENDIX ........................................................................................................ 70
Appendix A: Questions for Main Interview .......................................................... 70
Appendix B: Questionnaire of Quantitative Research .......................................... 71
Appendix C: SPSS Results .................................................................................... 75
Appendix D: AMOS Result ................................................................................... 86

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 ACKNOWLEDGMENT

First of all, we are so thankful our supervisor who has imparted knowledge, valuable
experiences, and useful guidance and especially helped us to complete the thesis, Master. Bui
Thanh Khoa at FPT University in Ho Chi Minh City. Besides that, we would like to
acknowledge lecturer's kindness at FPT University in Business Administration Faculty whose
helped and taught us during 4 years of university, also provided us a lot of helpful knowledge
in the past time.

We would also love to give our big thanks to colleagues, groups, and respondents who
have supported and cooperate us to complete the data collection for our graduation thesis. In
addition, the authors of previous research have also played an important role in providing the
theoretical foundation for completing this study.

Once again, we hope all the lecturers have a good health and success for both life and
career. Thank you so much for being by our side and helping us in the past time.

Sincerely.

Ho Chi Minh City, 10th December, 2018

Authors of Thesis

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 ABSTRACT

The Internet is becoming an increasingly important part of daily life guide to the rising
of E-commerce also. According to Rajan Anandan, vice president and CEO of Google
Southeast Asia and India pronounced that, Vietnam has the most energetic Internet market in
the world today as this is the only market which has more Internet users than unused people.
From the growing up of the E-commerce, the research team considers website’s credibility can
be seen as an important part in approach customer and engage customer for long term.
Therefore, this research is implemented to demonstrate the factors of website credibility can
impact customer engagement. However, the appearance of the E-commerce website usually
was ignored because of the credibility issues and the factors which reduce the customer
engagement. While research about the credibility of the website and user engagement has been
widely reported in the literature before, the efforts in combining both in a single study are still
rare. That is the reason why this study suggested a framework which has the combination of
website credibility and customer engagement. Based on the literature, three elements of website
credibility and two elements of customer engagement is hypothesized that have a significant
relationship. In order to clarify the factors have an effect on enterprise website credibility and
customer engagement in the electronic commerce context, data collected from an online and
offline survey of 420 individuals that living in Ho Chi Minh City and using electronic
commerce. This research will provide useful implications for enterprises in designing and
maintaining their website credibility and also able to achieve positive customer engagement.
Moreover, it also gives some suggestions for enterprises the way how to draw attention and
maintain their both existing customers and potential customers.

Keywords: Website credibility, Customer engagement, Website quality, Referral,

Reputation, Repurchase, Advocating, E-commerce

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 LIST OF TABLES

Table 1 – 1: Research Time ........................................................................................................ 8

Table 3 - 1: Information of Respondents .................................................................................. 31
Table 3 - 2: Information of Respondents .................................................................................. 32
Table 3 – 3: Construct components’ scale ................................................................................ 33
Table 3 – 4: Sample amount and quality .................................................................................. 35
Table 3 – 5: Index of CFA ........................................................................................................ 37
Table 3 – 6: Cronbach’s Alpha result (Pilot-test) ..................................................................... 39
Table 4 - 1: Number of Valid Answer ...................................................................................... 40
Table 4 – 2: Cronbach’s Alpha of Website Quality Scale ........................................................ 41
Table 4 – 3: Cronbach’s Alpha of Scale ................................................................................... 42
Table 4 – 4: KMO and Barlett’s Test ....................................................................................... 43
Table 4 – 5: The result of Total Variance Explained and Pattern Metrix ................................ 44
Table 4 – 6: The result of Composite Reliability and Average Variance Extrated. ................. 45
Table 4 – 7: The Coefficient of Regression Weights and Standardized Regression Weights.. 46
Table 4 – 8: Results of Average Variance Extrated of factors from Table 4 - 12 .................... 47
Table 4 – 9: Correlation between factors.................................................................................. 47
Table 4 - 10: The analyzing result of Structural Equation Modeling (SEM) ........................... 51
Table 4 - 11: The analyzing result of Bootstrap ....................................................................... 52
Table 5 – 1: The mean value of Website Quality ..................................................................... 54
Table 5 – 2: The mean value of Referral .................................................................................. 56
Table 5 – 3: The mean value of Reputation.............................................................................. 58

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 LIST OF FIGURES

Figure 1 - 1: Number of internet users in Vietnam from 2015 to 2022 (in millions) ................. 1
Figure 1 - 2: Smartphone penetration rates in Vietnam.............................................................. 2
Figure 1 – 3: Percentage of enterprises with websites over the years ........................................ 3
Figure 1 - 4: Percentage of online purchase methods in Vietnam, 2013 – 2016 ........................ 3
Figure 1 – 5: Obstacles that customers encounter when engaging in e-commerce .................... 4
Figure 1 – 6: The reason why people do not shop online ........................................................... 4
Figure 1 – 7: The rate of E-commerce Websites in Vietnam ..................................................... 5
Figure 2 - 1: The Online Shopping Model Based on Credibility of Enterprise’s Website....... 13
Figure 2 - 2: The information processing model ...................................................................... 14
Figure 2 - 3: Theoretical Framework ........................................................................................ 26
Figure 3 – 1: Research Process ................................................................................................. 29
Figure 4 - 1: Analysis results of Confirmatory Factor Analysis (CFA) ................................... 48
Figure 4 – 2: The CFA result of independent variables ........................................................... 49
Figure 4 – 3: The CFA result of dependent variables............................................................... 49
Figure 4 - 4: Analysis results of Structural Equation Modeling (SEM) ................................... 50
Figure 5 – 1: Website Quality item statistics............................................................................ 54
Figure 5 – 2: Referral item statistics ......................................................................................... 56
Figure 5 – 3: Reputation item statistics .................................................................................... 58

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 LIST OF ABBREVIATION

AMOS Analysis of A Moment Structures

AVE Average Variance Extracted

B2B Business to Business

B2C Business to Consumer

B2G Business to Government

C2C Customer to Customer

CE Customer Engagement

CFA Confirmatory Factor Analysis

CFI Comparative fit index

CMIN Chi-square λ²

CMIN/df Chi-square adjusted to degrees of freedom

CR Composite Reliability

EFA Exploratory Factor Analysis

EUVN EU-Vietnam Business Network

eWOM Electronic Word-of-Mouth

GFI Goodness of fit

KMO Kaiser-Meyer-Olkin

RMSEA Root mean square error of approximation

SEM Structural Equation Modeling

SPSS Statistical Package for the Social Sciences

TLI Tucker – Lewis Index

VECITA Vietnam Electronic Commerce and Information Technology Agency

WOM Word-of-Mouth

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 CHAPTER 1: INTRODUCTION

REASON OF THIS RESEARCH

Practical Problem

The growing of the Internet's user in Vietnam has not the sign of downward, more than that
the number of Internet user has the rising and especially is forecasted that will rise for the continuous
years. Based on the number is given by Statista.com (2018) showed that the number of the user has
risen from 49.7 million users in 2015 up to 53.86 million users in 2017 and is forecasted that will
gain 55.19 million users in 2018. Furthermore, this number is going to increase to 59.48 million users
in 2022.

Source: statista.com (2017)

Figure 1 - 1: Number of internet users in Vietnam from 2015 to 2022 (in millions)

This rise of Internet adoption can be due in part to rise in the utilization rate of smartphones
in the country. Over the past five years, the country has witnessed an increase in smartphone
ownership, thanks to the popularity of smartphones in Vietnam. According to 2017 statistics from
Google, nearly 72% of the population of Vietnam use the smartphone in 2016 and 2017. When the
smartphone is the key to conduct the operation e-commerce online, the increase in ownership of
smartphones will have a profound influence on the landscape of e-commerce.

1
 Source: Google Consumer Barometer
Figure 1 - 2: Smartphone penetration rates in Vietnam

In E-commerce fields, the credibility is the essential issue for enterprises and customers.
Nowadays, in Vietnam, E-commerce is developing, the quality of products and reliability of the
service is still the concerns of customers, especially middle-aged. In the EU-Vietnam Business
Network report (2018), Vietnam is the country that consumers' level of trust is the lowest compared
with Singapore, Indonesia, and the Philippines. And consequently, Vietnamese consumers’ spend of
the online transactions is less than consumers in other countries. These is the barrier to build the
relationship between enterprises and customers. From the research group’s perspective, the
disadvantage point which the enterprise has to encounter will be listed into two parts are website
credibility and customer engagement are below.

First of all, the overview of the E-commerce market in Vietnam which is analyzed by the
Vietnam E-commerce Association (VECOM) in the report "Vietnam's E-commerce index - 2018"
pointed out that. The level of enterprise has the website in Vietnam from 2013 to 2017 doesn't change
too much and just stay at 43% in 2017. This ratio shows a truth about the appearence of the business
websites is still low in Vietnam.

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 Source: Vietnam E-commerce Association (2018)
Figure 1 – 3: Percentage of enterprises with websites over the years

According to EUVN 2018, the E-commerce's market share is still relatively small, with its
digitally savvy young population and a high smartphone penetration, Vietnam's transition from brick-
and-mortar to online retail seems inevitable. Vietnam's e-commerce landscape has witnessed the
emergence of several electronic markets such as Sendo (Sendo.vn), Adayroi (adayroi.vn), Shopee
(shopee.vn) and Tiki (tiki.vn). E-marketplaces are becoming more and more popular, according to a
survey of 1,159 Vietnamese Internet users by the Vietnam Electronic Commerce and Information
Technology Agency (VECITA). Users who reported using e-marketplace sites increased from 19%
in 2013 to 41% of respondents in 2016. The use of e-commerce sites has grown from 61% (2013) to
76% (2015) but had gone down 57% in 2016, while the use of group buying sites - a type of online
promotion site - has fallen from 51% to 24% in the same period. It should be noted that although the
number of e-commerce sites grow faster than the sites in the electronic marketplace, they are often
online versions of brick-and-mortar retail outlets.

Source: VECITA
Figure 1 - 4: Percentage of online purchase methods in Vietnam, 2013 – 2016

Secondly, proceed to find out many problems about “what are the barriers that customers meet
in the online transaction in E-commerce?” Based on the research of M.A Kim Phuong (2017) about

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 “Development of E-commerce in Vietnam – 2018” showed the highest ratio is the “customer have
less the belief” with 25%. This is the barrier which is the most influence.

Source: Tapchicongthuong.vn (2018)

Figure 1 – 5: Obstacles that customers encounter when engaging in e-commerce

Based on the same report of Master Kim Phuong (2017), the report pointed a list of reasons
why the customer don’t want to join in the E-commerce transaction. And the highest is the customer
don’t believe in the enterprise websites with 50%. Especially a reason is pointed in these factors
although is low but can reflect the enterprise website’s element is “The way to order so hard” with
19%.

Source: Tapchicongthuong.vn (2018)

Figure 1 – 6: The reason why people do not shop online

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 According to Google's definition, Bounce Rate is the percentage of sessions to a specific
website who navigate away from the site after viewing only one page. The number of bounce rate in
the concept of E-commerce and retail website should be stayed at 20 to 45% then, based on the
number of E-commerce website's bounce rate is listed in Vietnam can see almost the pages stay at an
acceptable level (Customedialabs). When four of eight websites have the bounce rate very high
include Adayroi, dienmayxanh, fptshop and thegioididong are higher than 50%. The two others
website is Tiki and Sendo is nearly the dangerous level. So the amount of customer leaves the page
still be high and need to be careful as soon as possible by the enterprise. On the contrary, Shopee.vn
has the lowest bounce rate. From these ratio can realize that the customer retention for businesses is
so important to make them repurchase and maintain the time on site of a website is longer.

BOUNCE RATE OF E -COMMERCE

WEBSITES IN VIETNAM
60.00% 55.67% 54.03%
50.60% 52.25%
50.00% 41.75% 43.56% 43.97%
40.00% 34.11%
30.00%
20.00%
10.00%
0.00%

Source: similarweb.com (2018)

Figure 1 – 7: The rate of E-commerce Websites in Vietnam

In conclusion, the confidence of customers is the major obstacle remain unchanged while
online shopping is not fast, online payment is not popular, delivery services and order fulfillment has
not kept up the demand. Thus, in the field of research, the research team wants to implement this
study to identify clearly that for the effect of enterprise website credibility on customer engagement
in e-commerce in case Ho Chi Minh City.

Theorical problem

Currently, the website’s credibility is researched and proven by many authors around the
world. Mostly, the website’s credibility is presented as a multi-dimension concept and uni-
dimensional concept. In one-dimensional, Robin and Holmes (2008) have suggested that the

5
 credibility like customers trusts towards the informational content on a website. As the
multidimensional variable, Fogg and Tseng (1999) also released “Credibility is defined as multiple
constructs comprising of surface credibility, source credibility, content credibility, and reputed
credibility. And Hovland et al. (1953) also pronounced that credibility source is defined as "expertise"
and "trustworthy" that can be interpreted by the information receiver.

In the context of E-commerce’s rising, the website can be seen as a decisive tool for an
enterprise to gain the market for their own. The website has the role of representative for hall
enterprise, so if the credibility of a website is affected, the enterprise’s benefit will also be affected.
Based on the research team’s point of view and through finding process, Vietnam is being in the
context of lacking research about the website’s credibility in recent years. The above reasons are the
motivation for the researches about the credibility of a website.

Customer engagement is researched as widely as the website’s credibility. Customer

engagement is also considered as both sides, seen as a uni-dimensional and multi-dimensions. In
unidimensional, has research about the psychological process (Bowden 2009), motivational
psychology perspective belongs to (Brodie et al. 2011) and behavioral manifestation (Van Doorn et
al. 2010). In multidimensional view, customer engagement is defined as a combination of many
elements. Marks and Printy (2003) suggested that customer engagement is cognitive and emotional;
Bejerholm, Eklund (2007) pointed out that is the combination of cognitive and behavioral, meanwhile
Norris et al. (2003) – emotional and behavioral (Hollebeek, 2011a). Almost the research, about the
engagement of customer with the enterprise website, is proceeded through many lists of research
about the loyalty and in the context of the traditional business model (Trang, 2006, Thành and Thúy,
2007, Hân et al., 2011).

That is the reason why researching about how the credibility of a website concept affect to
customer engagement under multidimensional in the context of Vietnam’s E-commerce website is
necessary for improve the E-commerce website in Vietnam and make further research in the future.

RESEARCH QUESTION

Q1: What are the factors of the enterprise website credibility in e-commerce websites?

Q2: What are the factors of customer engagement in e-commerce websites?

Q3: How is the relationship between the enterprise website credibility and customer
engagement in E-commerce?

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 Q4: What should implications do to improve customer engagement in E-commerce in HCM
City?

RESEARCH OBJECTIVES

This research aims to answer the following four main questions:

To identify factors of the enterprise website credibility of E-commerce websites.

To identify factors of the engagement of the customer with an e-commerce website

To find out the relationships between the enterprise website credibility and the customer
engagement in E-commerce context.

To suggest the implications for the elements of website credibility to increase customer
engagement in E-commerce in HCMC.

RESEARCH SCOPE

The research team selected students from the Universities, offical workers and those who have
purchased on e-commerce sites or use the Internet who are respondents to our research because of
their accessibility. The survey sample is about 420 people.

Location

The research team focuses on guaranteeing for the accuracy and the quality of the data in case
of lacking ability and conditions, the research team decided to choose some places in Ho Chi Minh
City, for both type of research is Preliminary research and Official research.

Time

The research team set the deadline for research from 11th September 2018 and 1st December
2018.

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 Table 1 – 1: Research Time

Research
Method Technique Time Place
type

In-depth
October, 16st2018 - The public place,
Interview Qualitative Interview, Focus
October, 17th 2018 Universities.
Group

Preliminary
Quantitative Questionnaire November 4th 2018 FPT University
Survey

November, 9th 2018 -

Official Online
Quantitative Questionnaire November, 13th 2018
Survey And Offline

Source: Authors

RESEARCH METHOD
This research is carried out by mixed methods based on the following process. The first stage:
The research is carried out by the interview process. The interview aims to the group interview and
individual interview to seek information and insights from the diversity of answer and preparing the
step to build the theoretical model. The second stage: the research team run the preliminary survey to
examine the accuracy of the questionnaires to make the official survey. The third stage: the research
team starts to distribute 420 surveys for gathering data which is used for official research in Ho Chi
Minh City area. This data will be processed by SPSS and AMOS tool for analyzing the model which
is established. And final, research team suggests the business managerial implications for enterprises
operating in Ho Chi Minh City.

SIGNIFICANCE OF RESEARCH
In this part, there are two problems. They are theoretical and practical problems.

Theoretical

Theoretically the study contributes to the future research. The research team has identified a
scale between enterprise website credibility and customer engagement based on theories in the world.
Besides that, the authors have also developed and tested the model about the relationship between
enterprise website credibility and customer engagement

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 Practical

The study was conducted in Ho Chi Minh City particularly and in Viet Nam generally, so it
can create a clear and specific understanding about the behavior of the customer in Vietnam when
they buy on the E-commerce websites. After that, the authors suggest the implication for Viet Nam
enterprises to increase customer engagement between customer and business.

RESEARCH STRUCTURE

This article is presented in five characteristics we will discuss below:

Chapter 1 – Introduction:

In this chapter, the study will present some general information about the research objective,
research scopes, methodology and data overview, research question, an overview of the research
structure and thesis outline as well

Chapter 2 – Literature Review:

In this chapter, the team mentions a number of definitions related to the topic, examines the
literatures relate to the research question, and present the theoretical models that the research team
has chosen to use in the article.

Chapter 3 – Research Design:

In this chapter, the research mentions the research process, giving an overview of the methods
of conducting research. The quantitative and qualitative method, research measurement scale are
discussed in this part to serve for analyzing the data in chapter 4 and show the result of the Pilot –
Test that helps for the reliability of the research.

Chapter 4 – Data Analysis:

In this chapter, the research group will analyze and interpret the data is collected from the
research. The data analysis is used which is SPSS and AMOS which will clarify the variables in the
study

Chapter 5 – Findings and Implications:

This is the last part of the study, in this chapter, the group will emphasize the effect of
enterprise website credibility and customer engagement in e-commerce. Moreover, the research group
suggests implications for some problem that e-commerce websites are facing.

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 SUMMARY

This chapter, we have explored the Internet landscape and the development of E-commerce
in Vietnam. Finding out the purposes and objectives of our research in this chapter. Besides that, we
mention the main research questions to examine and identify the important factors of enterprise
website credibility and customer engagement in the development of e-commerce websites.

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 CHAPTER 2: LITERATURE REVIEW

E-COMMERCE

Definition

Related to the term of E-commerce, most people think that it is related to the E-business. For
more details, in the academic and research domains, the term "E-commerce" belongs to the definition
of E-business.

According to Turban et al. (1999), they assume that E-commerce is the process of buying,
selling, transferring, or exchanging products, services, and information through computer networks,
mostly the Internet and Intranet. In the approach to information and communication, the Web is
seemed like a medium to assist marketing, bring benefits to customers and build relationships with
them. The firm, therefore, can build brand awareness and strong image and can use the Website as an
effective way by providing a large amount of information to customers and helping the company to
take part in the marketplace as a global position.

Scholar definitions are narrower and targeted on applications and business supports. Zwass
(1996), for instance, defines e-commerce as “the sharing of business information, keeping up business
connections and conducting business transactions by means of telecommunications networks”.
Others also support this and take into account e-commerce to embody varied processes among and
outside the organization in addition to buying and selling activities.

Functions of E-commerce

With the great benefits and popularity of E-Commerce, E-Commerce websites have become
an important tool for all businesses in their business areas. The functions that E-Commerce brings to
the business are as follows:

 Business: Automate many stages in business.

 Information: Internet or the other networks is used as a tool to provide information about
the product, service, and payment.

 Service: Reduce costs and save time in delivery

 Online: Provides the ability to sell and purchase products and services through the Internet
and other online services.

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  Type of payment: use non-cash payment, E-Commerce permits use of credit cards, debit
cards. Fast and convenient for firms and customers.

Classification

With strongly increases in advanced technology over the few past couples of decades, E-
Commerce has become a main force in the world economy. E-commerce is categorized based on the
nature of the transaction, they represent when firm doing business. According to Djan (2008), there
are 4 categories of E-commerce below:

 Business – to – Business (B2B) e-commerce is defined as the model of E-commerce, in

which the transactions of B2B can take place directly between businesses. Businesses use
e-commerce to reduce the transaction costs of the business and save on time and effort
when conducting business.

 Business – to – Consumer (B2C): E-commerce from B2C involves the introduction of

products and services to consumers through internet technology. This includes companies
that sell through the internet, receive orders for products then be delivered to consumers,
and provide digital services such as online magazines and search engines. More than that,
they can make a comparison between the products before giving the decision. This type of
E-commerce can be called by the others names as E-tailing.

 Consumer – to – Consumer (C2C) is the model where the consumer can sell, buy or
exchange their products and services straight to the consumer through E-commerce. The
most outstanding C2C business is eBay and the sites allow consumers to offer goods and
services to other consumers on an individual basis.

 Business to – Government (B2G) is a kind of E-commerce which the participants are

between the firms and governments, and the government like as the customer of the firm.
B2G involves business needs to sell goods or services to governments or government
agencies. These activities include providing products or services to the military, police
forces, hospitals, and schools.

In Vietnam context, nowadays, B2B and B2C are the most popular types of E-Commerce.

THE PROCESS OF ONLINE SHOPPING ON WEBSITE

There are many ways for customers to purchase on the online and there are many reasons for
customers to continue shopping or stop. The major reason why consumers buy or stopping shopping
is that they pay more attention to the credibility of the e-commerce websites. According to Gitte

12
 Lindgaard of Carleton University in Ottawa (2007) that customers just evaluate websites within a
second, but their decisions and perceptions continue until later. Therefore, it is hugely important for
the websites to leave a first good impression and a good sense of trust with the websites. It can be
identified that a successful firm’s website should be a website which exists with a high credibility
level. A website’s credibility has been called an important element for creating the success of a
website or maybe more. This not just stop, the credibility can seem as the factor which promotes for
further buying behavior of the customer. Indeed, the customer who bought online will be lead from
the result of estimating the credibility of the website, this can look at the model in Fig 2-1. Due to the
openness and convenience of the Internet, along with the improvement of the technical expertise of
the customer, it offers the convenience for customers to compare prices before buying and minimize
risk. If the credibility of a business website is not high, customers can visit a website from another
site, with just one click (Qiu & Tan, 2007)

Source: Qiu & Tan, The Credibility of Enterprise’s Website and Its Evaluation in the Customer’s Perspective, 2007.
Figure 2 - 1: The Online Shopping Model Based on Credibility of Enterprise’s Website

THEORETICAL BACKGROUND

Theory of The Information Processing Model

According to William McGuire, there are three stages of the persuasion process. They are
expressed through the Information Processing model. The information processing model is the model
which considers the issue of retention that the customer will accept to retain when the segment of the
message is relevant or valid to their environment. This model includes 6 steps: presentation, attention,
comprehension, yielding, retention, and behavior. And 6 steps are divided into 3 stages: firstly, the
cognitive stage includes the presentation, attention, and comprehension. Secondly is affective stages
that include yielding and retention. The finally is behavioral stages. In this stages, it is behavior.

13
 Source: McGuire’s (1968) model of the persuasion process
Figure 2 - 2: The information processing model

“Presentation” is McGuire’s term for the persuasive message. Then he argues that people can
not be persuaded by the message they ignore, hence the message is presented to the people, and the
next step in the persuasion process is paying “attention”. Third, they must understand the message
before it can affect their attitude, thus "comprehension" follows the attention in his model. "Yielding"
is McGuire's term for acceptance, the point at which change in attitudes occurs. When a persuasive
message succeeds, they change the mind and attitudes of the listener, McGuire says that the receiver
has accepted the message. The fifth step is "retention" and people will remember the message and
define the message to the enterprises and its products/services, and involves “how long does the
change of attitude last?” Finally, McGuire views "behavior" as the ultimate goal of the persuasive
process. If we look at the persuasiveness around us - the message of selling goods and services, the
message of public service urging us not to drink and drive, friends try to convince us watching movies
or concerts - we can see that persuasion often has behavior as the ultimate goal.

In research, when considering the credibility aspect which is credibility source is defined as
expertise and trustworthy that can be interpreted by the information receiver. Most of we are not
persuaded by the uncertain source of a message. The words of experts will affect more than non-
experts, and those credible sources are more likely to change the attitude of people. Hence, the website
credibility is the essential issue of the E-commerce field. The people pay attention to those who they
trust and ignore those who they feel uninformed. After that, they will comprehend the value which
they can receive. The website credibility probably helps most with yielding, they are more likely to
accept as they trust the source. It is important to define what the customer’s perceptions of the source
are the most important in credibility. They will lead to the behavior of customer and customer
engagement in which corresponds with behavioral stages.

The enterprise of the website credibility in e-commerce

2.3.2.1. Website Credibility

For e-commerce, credibility is a factor that is important in the customer's purchase decision
from the website. On an opened public network, like the Internet, building the credibility in the eye
of the customer is not easy. Robin and Holmes (2008) have defined that the credibility like customers
trusts towards the informational content on a website. The term credibility is referring to believability
and a perceived quality (B.J. Fogg & Tseng, H, 1999). Besides that, Schwarz and Morris (2011)

14
 shows that the credibility of the website is when a website that has the correct information and the
customer does not need to search elsewhere. Furthermore, the credibility is also assessed through the
concern about the communication devices, for instance, clear content, technical aspects, correct
source, visuals, the trust of language (Johnson & Martin, 2014). Hovland et al, (1953) argue that
credibility source is defined as "expertise" and "trustworthy" that can be interpreted by the
information receiver. Besides that, Tseng and Fogg (1999), the credibility of a website based on the
combination of some factors like reputed credibility, surface credibility, presumed credibility, and
experienced credibility.

In particular, presumed credibility is considered credibility rely on general assumptions.

Surface credibility is based on simple inspection and first impressions. In other words, surface
credibility is the first type of credibility that customer will appreciate when using a website. Surface
credibility is defined as the appearance of a site or outlook that is perceived by a customer as credible.
Wathen and Burkell (2002) have defined that the surface credibility as customer’s simple inspection
of superficial characteristics such as evaluating the quality of the book by simply looking at the book
cover. Reputed credibility relies upon third-party endorsements, referrals. To clearer, reputed
credibility as introduced by B.J. Fogg and H. Tseng, H (1999) describe how much the perceiver
believes in someone or an object’s reputation and because of what third parties have reported about
it. In the context of the website, reputed credibility cues can be created by referrals, third-party
endorsement, authors’qualification, official titles, prestigious awards, and affiliations. Christiansen
(2015), who studies on the search engine reputations, believes that reputed credibility can be unstable
and easily changed as it is derived from external cues. Finally, experienced credibility relied on direct
experience.

Fogg et al (2003) showed that there were four elements of a website when people evaluate the
credibility of the website:

 The first was the site presentation. This included visual design elements such as the
graphics and readability of the site as well as the site’s navigability and functionality (e.g.,
broken links, the presence of a search feature). Interestingly, the presentation and the
design elements of the website were the criteria which were used the most frequently while
evaluating the website credibility.

 The second factor to consider was the information on the page. It mentions the accuracy,
usefulness, breadth/depth, bias, organization, the tone and clarity of writing.

15
  A third consideration related to the site operator’s or source’s motives, including selling
intent, treatment of customers, the presence of advertising and clear identification of the
website sponsor.

 Finally, the reputation sources was also a factor in evaluating the credibility of the website.

In summary, based on these studies, the authors realize that the credibility of the website refers
to evaluations of website quality, third parties, and reputable sources that relate to enterprises. So the
research team considers website quality, referral, and reputation that are three elements in the research
of the website credibility in e-commerce.

2.3.2.2.Website Quality

Website quality is the overall perception of the website'quality from the perspective of the
customer (Yoo & Donthu, 2001). According to an article (Yoo & Donthu, 2001), customer's
perception about website quality is based on the elements of the website that meet the needs of the
customer and impress the total excellence of that website. According to Kim and Stoel (2004), a
website provides an interface for internet users to search for information or purchase products or
services. The authors of the previous article also mentioned aspects of website quality as ease of use,
information quality, security, service quality, enjoyment. Besides that, structure and design also
incorporate elements which impact to order of presentation, speed and browsing is a crucial
determinant of website functionality and is very important in achieving the quality of service provided
to customers through the website. The key features in successful website design are the aesthetics of
the interface, navigation, organization, and display of content. For website content, many scholars
claim that the website should change the information continuously to users can catch up with them
(Hasan & Abuelrub, 2011).

An article by H. Kim and F. Fesenmaier (2008) showed that the visual appeal of website is as
surface credibility which affects the judgment for the credibility by customer. Website design factors
such as colors and fonts, the attractiveness of image and some other factors such clear layout,
facilitating menu and interactive tool will affect to the evaluation of customer about the credibility of
the website. When a website quality is highly valued by customers, it will increase the credibility of
the website (R.E. Petty & J.T. Cacioppo, 1986; P.B. Lowry, D.W. Wilson, W.L. Haig, 2014).

2.3.2.3. Referral

Referral or recommendation comes from the third party such as family, friends, professionals,
reviewers…etc. They are the information resources and is an important f actor affecting the trust of
customers in e-commerce (Ardnt 1967). Referral is one of the many sources of information that

16
 potential customers can use to make better decisions (Andreasen, 1968). According to Spurr’s (1988)
referral is defined as a recommendation from referrers to the potential customer that they should or
shouldn’t purchase the product or service from that website. This definition stress out the role of
referrals in marketing and influence the decisions of potential customers. Furthermore, (Yan-Fei Li
& Peng Fan, 2015), in the online context, consumers’ attitudes are affected by the quantity and ratings
of online reviews. Customers are hinted by positive or negative comments or likes or dislikes by this
website from other customers before making a purchase decision to buy the thing on a particular
website.

In transactions on the websites, the trust between suppliers and buyers is the essential
consideration and driving consumer decision-making and transactions (Botsman, 2012). Hence, in
this environment of cues and hints, particularly reviews are considered the factor which impacts to
the trust of the customer, and to be the most influential factor in making the decision of customer for
the online marketplaces characterized by information asymmetry (Chatterjee, 2001). However, while
all types of online reviews may affect consumer choice, negative reviews will particularly attract
customers' attention and leave a deeper impression than positive reviews (Bambauer-Sachse &
Mangold, 2011). Blal and Sturman (2014) expressed that online reviews of previously experienced
customers facilitate the selection of services or products, and through countless reviews which are
provided, customers will have their own options.

Fogg et al showed that the credibility was built based on the third party such as referrals or
reports. So customers often look for referral resources as factors and markers to reflect the credibility
of these websites. Rieh and Belkin (1998, 2000) also state that customer wants to access the specific
sites and they use the referrals as trusted sources (known expert, families, friend…). It is considered
as the reason for visiting a given site.

2.3.2.4. Reputation

Reputation is one of the key factors that make the business success (Lee & Eze, 2011).
Reputation can help enhance the performance of business (Davies 2003), retain customers and
guarantee the sustainability of the business (Portmann 2013). For instance, the customer can pay a
higher price when purchasing from a reputable and well-known website such as Amazon.com (Smith
& Brynjolfsson, 2001). However, the enterprises have to go through a long process to have a good
reputation and it can be tarnished easily (Portmann, 2013).

Reputation refers to brand equity or customer-perceived credibility of the organization (F.

Alsudani & M. Casey, 2009). Most enterprises today need to base on their website to built reputation
because it becomes the first gatekeeper which contacts with the customer in the online environment.

17
 Besides that, the website also needs to maintain its visibility to build an online reputation. In
connection with this, website visibility also was highly correlated with reputation and been a factor
of website ranking result (Bahry, Masrom & Masrek , 2015). A site is considered as the reputation as
it is recognized by third parties who have gained favorable experience from this site and give a high
ranking for the website (Tom & Taves, 2004). In the particular community, reputation derived from
the rating of customers from that become well-known, besides that can be used as the measurement
of trustworthiness by Josang, Ismail, and Boyd (2007). Especially, for the customers who the lack of
experience in previous, then reputation can help them reduce the perception of risk and increase the
confidence of them with online vendors (McKnight, Choudhury, & Kacmar, 2002). Customers
believe that online vendors will endeavor to protect their reputation from any disadvantage so that
customers can predict the credibility of online vendors and confident few retailers (Grazioli &
Jarvenpaa, 2000).

The credibility of the seller also builds the reputation when they meet what they have promised
with the customer (Donney & Cannon, 1997), and shows the interest to the customers. Doorley &
Garcia, (2011) expressed that the company needs to incorporate behavior, performance,
communication to have a strong reputation in the long-term. Reputation is also a factor which helps
evaluate the credibility of the website (Portmann, 2013). Customers usually have a higher expectation
of the performance of a website with a better reputation than a website with a low reputation (Li,
2014).

According to Abimbola and Kocak, (2007), reputation-building are key resources that allow
an organization to be successful over an extended period. Reputation refers to value judgments about
an organization's qualities, trustworthiness, and reliability built up over time. Fogg et al, 2002 found
out that reputation is one of the most mentioned factors when customers evaluate the credibility of e-
commerce websites.

Customer Engagement

2.3.3.1.Definition of Customer Engagement

According to many previous authors, to cope with the current changes in the marketing
environment, especially the rise of customer expectations, companies are extremely necessary to
make significant changes in their strategies. It may no longer be effective for companies to
differentiate their brand of price, quality or customer satisfaction but must strive to build strong
relationships with customers (Alqahtani, 2011; Carter, 2008). The relationship between the customer
and the brand that is strong is considered essential for brand differences, without which the ability to
achieve overall performance and sustainability would be severely endangered (Eisingerich & Rubera,

18
 2010). In order to establish a strong brand-customer relationship, marketers not only focus on
promoting customer commitment and loyalty but also do more by encouraging customers to actively
engage along with the brand on a continuous basis (Eisingerich & Rubera, 2010).

In term of the concept of customer engagement, which is one of the key factors for success in
today's business is the ability to create and maintain long-term relationships with customers.
According to Malthouse et al., (2016), customer engagement has been considered as a concern of
firms and the appearance of social media and the Web 2.0 stand out the importance of establishing
interactions with customers. Marketing scholars have recently begun to appreciate customer
engagement (Bowden, 2009b; Brodie, Hollebeek, Juric, & Ilic, 2011). It has been argued that
customer engagement is a motivational state variable that is broader and greater than the role of
commitment. Although it has been emphasized that customer engagement not only reflects most of
the emotional connection between the customer and the brand, it also includes cognitive and
behavioral components.

Customer engagement was conceptualized based on two major perspectives. First, customer
engagement was viewed as a psychological state (Brodie, et al., 2011) that is characterized by the
level of emotional, cognitive and behavioral connections and commitment (Bowden, 2009a, 2009b;
Mollen & Wilson, 2010). Furthermore, when customers have the positive state of mind which drive
their willingness to exhibit brand supporting behaviors as to sustain a long-term relationship with the
relationship partners. Particularly, customer engagement was defined as “the level of an individual
customer’s motivational, brand-related and context-dependent state of mind characterized by specific
levels of cognitive, emotional and behavioral activity in direct brand interactions” (Brodie, et al.,
2013). Second, the customer engagement was identified as behaviors are exhibited by the customer,
and are known as a manifestation of a strong psychological ties towards the engagement object as
well as his/her strong willingness to participate, involve and cooperate with brand that not merely the
purchase situation (Van Doorn, et al., 2010; Verhoef, et al., 2010…).

According to studies of Van Doorn et al. 2010, the focus solely on the behavioral aspects of
customer engagement in their conceptualizations. They define customer engagement as behaviors
that go beyond purchase and may be specifically defined as a customer’s behavioral manifestations
that have a brand or company focus, result from motivational drivers. Similarly, Verhoef et al., (2010)
also state that customer engagement as a behavioral manifestation that customers toward the brand or
firm. Additionally, Kumar et al. (2010) support that purchases should also be included in customer
engagement as a manifestation towards the firm. Besides that behavioral manifestations include
purchase and nonpurchase both measure customer engagement and customers can interact with

19
 companies in a lot of ways (Jahn and Kunz 2012). Moreover, according to later studies, they recognize
that the emphasis on the behavioral manifestations highlights the role of customers.

Van Doorn et al., (2010) has expanded the idea of focusing on behavior aspects, they define
that numerous customer activities such as retention, cross-buying, word-of-mouth (WOM), customer
recommends, shares or writing blogging, posting on website and many other behaviors that influence
its brands and firms are considered as be different manifestations of the customer engagement. The
continuum of behaviors includes pure voice as complaint behavior, a positive or negative
recommendation, positive or negative WOM, and many other behaviors. Based on the above proposal
for customer engagement, two crucial conclusions may be drawn. First, regarding the CE has an effect
on the firm, the root of business survival is the customer, and building a good relationship with them
is the foundation for a business's long-term survival. When the interaction is expressed positively
(i.e.posting a positive brand message on a blog), so maintaining customer loyalty and establishing a
tight relationship, are the most important issues for firms. On the contrary, when customer actions
against a firm the interaction become more negative (van Doorn et al., 2010; Kumar et al., 2010).
Second, regarding the subjects of CE interactions, not only focus on firms/ brands, but also focuses
on a much broader network of actors including other current and potential customers, as well as
suppliers, the general public, and firm employees (van Doorn et al., 2010).

In short, there is no consensus on the definition of customer engagement until now. While
some authors emphasize the course of psychological development, others focus on behavior (Binh.
H. N., 2017). The authors consider repurchase and advocating as the behaviors reflect and measure
customer engagement in e-commerce.

2.3.3.2.Repurchase

In term of repurchase, Peyrot and Van Doren, (1994) pointed that “The majority of customer’s
purchases are potential repeat purchases”. Customers buy the same goods repeatedly from the same
sellers, and most purchases show a series of events more than just an only single isolated event. The
repurchase is the concept that has been studied by many scholars. A consumer’s actual behavior
resulting in the purchase of the same product/ service on more than one occasion is known as
repurchase (Peyrot & Van Doren 1994). Shih Wei, (2005) defined online repurchase is an action of a
customer which is called “re-use” of the online channel to buy from a specific retailer. According to
Zeithaml, et al., 1996, repurchase is the intention to rebuy. Similarly, repurchase is the probability or
willingness of consumers to continue using the website and engage in repurchase behavior from the
same website (Kuan, Bock, & Vathanophas, 2008). To predict the possible behavior of customers
then repurchase intention is essential (Kim, Lee, & Youn, 2012). According to Ajzen (1985), a

20
 behavior or action of each person can be measured through their intention. The intensity of intention
will determine the possibility of the person to carry out desired behavior.

There are many authors refer to the concept of customer engagement, and each one has its
perspective. Fernandes. T & Esteves. F (2016) suggest that there are many authors studied levels of
customer engagement through indicators such as repurchase, recommendation. According to Forbes
(2010), customer engagement was defined as “the interaction, experiences, and context that create
and nurture enduring profitable customer relationship”. In other words, this option shows that
customer engagement reflects the repeated interactions the relationship between a customer and a
company, a brand or the specific objects, and emphasize on the development of great customer
emotional, intellectual and behavioral experiences (Sedley, 2010). Moreover, Macey & Schneider
(2008) also defined that customer engagement is the repeated interactions that strengthen the
emotional, psychological, or physical investment a customer with an enterprise. In this research, the
term of repurchase as the repeated interaction and especially is in the e-commerce of the customer. If
a customer spends more time looking for information, learning more about the firm, and event invest
more their resources for a single enterprise, increase in the numbers of transactions will express the
relationship between a brand and a customer. Flynn.L.M (2012) point out that when an enterprise
provides products to customers then these service providers will influence customer engagement via
quality of service/products, and so on… which they provided. By meeting the needs and expectations
of customers, and facilitating a personal relationship. Customer engagement is quite the importance,
recognizing that most companies have rushed spend huge amounts of money trying to adjust their
products/ brands to meet their customers' preferences and thus create customer engagement (Gallup,
2001). When customers receive the values that exceed their expectations, they will reciprocate by
investing the effort to help the enterprises succeed by repurchase, and referring others to the business.

Based on the theories above, the research team shows that repurchase as the component that
reflects the customer engagement. Some authors argue that customer engagement is a set of behaviors
beyond purchases where others indicate that purchases are the foundational factor to measure
customer engagement. According to the behavioral perspective of studies on customer engagement
(Sashi, 2012; Gummerus et al., 2012,…) based on the research about the definition that is elaborated
by Van Doorn et al. (2010) that considers customer engagement as customer behavioral
manifestations that have a brand or a firm focus, beyond purchase, resulting from motivational
drivers. Then, the measurement of customer engagement through consumers’ activities in their
interactions with brands such as word-of-mouth, recommendations, repurchase. Roberts and Alpert
(2010) assert that behavioural manifestation is all kinds of behaviors, and include those that are
characteristic of high degrees of loyalty (Libai 2011). In terms of customer’s resources, customer

21
 engagement can be expressed when customer engages (van Doom el al, 2010). Therefore when a
person has the abilities or resources (e.g. time, money, and skills) to support their intention, the ability
to carry out the actual action is higher (Ajzen, 1991). Hence, when consumers have the abilities or
resources, consumers are willing to conduct actual repurchase behavior.

2.3.3.3.Advocating

According to Sashi (2012), Electronic word-of-mouth (eWOM) in particular

recommendations and online reviews, are a type of consumer engagement activity. This is known as
advocating, which customers interact with others in the online platform spread the word about their
positive experiences with a product or brand. Van Doorn et al. claim that numerous customer
activities such as retention, cross-buying, WOM, customer recommends, shares or writing blogging,
posting on the website and many other behaviors that influence its brands and firms are considered
as being different manifestations of the customer engagement. Brodie et al. (2013) suggest that
advocating is a customer’s expression of customer engagement. Poorrezaei, M (2016) defined that
customers actively encourage other customers to buy a specific brand and recommend a service or
product to them is known as advocating. Jaakkola and Alexander (2014) suggested that the
recommendations of the customer will affect community. By sharing experiences and information
through recommendations, the effect of customer on each other’s expectation and are likely to affect
other stakeholders over time about the interpretation of the value of the firm’s offerings (Fuggetta,
2012)

From a management perspective, this is significant because the customer engagement can be
categorized as positive or negative and the recommending actions have significant effects in the long-
term customer retention and building the relationship with customers (Van Doorn et al., 2010).
According to Vivek, Betty, and Morgan (2012) recognized that customers often give the positive
WOM as advocating the brands.

In conclusion, the research team considers advocating element which reflect the level of
customer engagement, and the concept of Van Doorn et al, (2010) also stress out that to make
customers advocate the brand, the firms should establish and enhance active promotions such as the
various types of rewards to they recommend a specific brand from that building the bonds between
the brand and customer strongly.

22
 THEORETICAL FRAMEWORK

Hypothesises

2.4.1.1.Website Quality

According to Ranganathan and Ganapathy (2002), the website is a factor that plays an
important role in attracting customers to come back in the online market, and Liang and Lai, (2002)
thought that customers get more to visit, buy and rebuy from the website which has the better design.
Support for this perception, Li and Zhang, (2002) state that website quality really influences the
attitude and behavior of customer. These perception has determined that some factors of website
quality like the design outside, security, or service quality have affected directly to the customer
behavior. If the website impresses by the better website quality, then can guide the consumers
complete transactions smoothly besides attracting them to revisit the website of enterprises.
Moreover, a website with high quality can encourage them to buy and repeat purchase to the site by
Song and Zinkhan (2003. Online marketers providing real-time services and personalized information
to customers may become a source of competitive advantage to gain customer’s repeats visits and
repurchase (Luo & Seyedian, 2003). From the perception above, the authors realized that a website
with high quality can have a positive impact on customer behavior and lead to increase customer’s
repurchase. Therefore, this study presents the following hypothesis:

H1: Website quality has a significant positive influence on the repurchase in e-commerce.

According to one study (Mona et. al 2013), the perception of customers about website quality
is based on features in a website that meet customers' needs and impress the total excellence of that
website. The authors of the study also mentioned that the multiple dimensions of website quality can
be categorized as security, enjoyment, information quality, ease of use, and service quality…
According to Santos, 2003, website is with good support, fast loading speed… it could increase
customer retention rates and encourage positive recommendations from customers. From that can see
a truth that when an online website or brand can demonstrate their quality, they get the support from
the customer and especially spread the positive recommendations. Jeon and Myunghee (2009) pointed
out that providing the quality website to customers on the Internet may encourage them to spread out
recommendations. This really impressed that, the action of customer really is affected by quality. If
they perceived the quality, they will recommend it to others. Therefore, this study presents the
following hypothesis:

H2: Website quality has a significant positive influence on advocating in e-commerce.

23
 2.4.1.2.Referral

Gao (2014) found that online referral has positively effect on consumers’ decision making.
These referrals have the positive relationship with customer’s transaction intention, whereas
transaction intention has positive relationship with repurchase of websites (Wong & Chau, 2013).
According to Gauri et al. (2008) defined that repurchase was affected by positive referrals rather than
other aspects. Chung and Shin (2010) also suggest that referral affected to repurchase. Besides that
referral sources from friends who had the privous experiences also bring the most influent to online
purchase behavior of consumers because they felt confident to buy through websites (Dumpe &
Peterson, 2011).

Dawes et al., (1991) define that to evaluate the firms, brand or online websites… customers
tend to use word of mouth, referrals and referencing from others as essential information sources.
Regarding the suppliers, they provide new customers a list of the evaluation of previous customers
with whom they can contact as a tool to reduce the perceived risk in dealing with the service provider
is known as referencing (Salminen and Möller, 2004). Competition in e-commerce is intense, the
price is just one of the factors that influence customer choice. Referrals are from friends, positive past
experiences and a close relationship with service providers can all lead customers to revisit (Asamoah,
G., 2012).

According to Mo, Z., Li, Y. and Fan, P (2015), in the online context, consumers’ attitude is
affected by the quantity and ratings of online referrals. This opinion is stated that customers are hinted
by positive or negative comments or likes or dislikes by this website from other customers before
making a purchase decision to buy the thing on a particular website. When customers read high-
quality referrals, customer impulse will continue to get strengthened. However, with low-quality
referrals, their impulse is gone down (Mo, Z., Li, Y. & Fan, P., 2015).

Furthermore, (Kumar, N. & Benbasat, I., 2006), online reviews provide the customer with the
real shopping experience. Some scholars believe that the motivation of consumers to search online
reviews are asymmetric information, lack of available information, the cognitive perception authority
and perceptual economic. Thus, searching the online review behaviors of previous consumers before
buying is an important step. Meanwhile, consumer perception can be improved by online reviews
about shopping sites and products, attract consumers caring potentially, and sense of community to
the site, allowing consumers to make decisions better shopping. Shan (2016) asserted that referral or
recommendation is considered as one of the important factors to shape consumer attitudes and to
facilitate their purchase decisions. Therefore, this study presents the following hypothesis:

H3: Referral has a significant positive influence on the repurchase in e-commerce.

24
 Referral or recommendation is considered as one of the important factors to shape consumer
attitudes and to facilitate their purchase decisions. Product reviews are evaluated as the second most
trusted source of product information online, while the third sources are recommendations from
friends and family (Shan, 2016). López & Sicilia (2014) state that participation within peer-to-peer
referral and the willingness to receive and send market information will vary between individuals,
therefore the participation is divided into two specific behaviors, including opinion-seeking and
opinion-giving behavior. As mentioned by Filieri et al. (2015), when consumers use other consumers'
recommendations which they rely on and improving their decision making. If consumers find out
high-quality referrals and adopt these recommendations from other customers, this experience will
motivate them to engage in conversations and even recommend positively the website with friends or
family.

In online context, Hennig-Thurau et al. (2004) claim that from utilizing the contributions of
other customers (i.e product reviews and comments that are shared and written by others…) which in
turn can also promote customers who have read these referrals to write other comments, encourage
or recommending for other to a special website. Therefore, this study presents the following
hypothesis:

H4: Referral has a significant positive influence on the advocating in e-commerce.

2.4.1.3.Reputaion

The website can represent the company itself (McHale & Garulay, 2012). Beldad et al (2010)
explained that customers who don’t have previous experience, they may rely on online retailer
reputation. Past research (e.g., Byoungho et al., 2008; Caruana and Ewing, 2009…) has supported
reputation’s positive influence on repurchase for various product categories, such as life insurance,
education, airlines, online purchasing, and mobile phones. Reputation refers to the value assessment
of an organization's quality, reliability and credibility that are built over time (Abimbola and Kocak,
2007). According to Piraman, A. and Fathi, S (2011) reputation is one of main factors influence to
repurchase. Yen.C.H and Lu.H.P (2008) studied that reputation will have an impact on the repurchase
of consumers on the website. Therefore, this study presents the following hypothesis:

H5: Reputation has a significant positive influence on the repurchase in e-commerce.

Most enterprises and organizations nowadays need to rely on their websites for establishing a
reputation as it becomes the first or main gatekeeper portraying their company in the online
environment. Rogerson (1983) showed that a reputation is going to increase the likelihood that
encourages customers to recommend to other. A strong reputation as one of the crucial factors when

25
 people are deciding what products to buy (Argenti.P & Forman.J, 2002). Following the research by
Eccles, Newquist and Schatz (2007), the strong reputations make the customers more loyal and they
will buy from a broader range of the company’s products. Besides that, according to Bahry and
Masrom (2016), the website visibility also was highly correlated with reputation and been a factor of
website ranking result. Fombrun & van Riel (2004) describe that real reputation needs to the web
visibility, the customer will consequently support and advocate. Therefore, this study presents the
following hypothesis:

H6: Reputation has a significant positive influence on the advocating in e-commerce

Proposed Model

After studying the previous related research as well as implementing quantitative research,
research team finds that evaluating the enterprise website credibility when shopping online in e-
commerce is formed from 3 main components: Website quality, referral, and reputation. These
components have an effect on customer engagement.

In this research, when implementing quantitative research, the research team recognizes that
most of our respondents who frequently shop online said that they rely on these components to
evaluate website credibility and these impact on repurchase and advocating. Thus, three components
of website credibility are considered as independent variables, and two components of customer
engagement are considered as dependent variables. In conclusion, the authors proposed the model
below:

Source: Authors
Figure 2 - 3: Theoretical Framework

H1: Website quality has a significant positive influence on the repurchase in e-commerce.

26
 H2: Website quality has a significant positive influence on advocating in e-commerce.

H3: Referral has a significant positive influence on the repurchase in e-commerce.

H4: Referral has a significant positive influence on the advocating in e-commerce.

H5: Reputation has a significant positive influence on the repurchase in e-commerce.

H6: Reputation has a significant positive influence on the advocating in e-commerce

SUMMARY
This chapter makes a model. This model can be formed by 3 independent variables of Website
Credibility which are Website Quality, Referral, Reputation, and 2 dependent variables of Customer
Engagement which are Repurchase and Advocating. A theoretical model has been suggested. This
model analyzing the enterprise website credibility and customer engagement in E-commerce.

27
 CHAPTER 3: RESEARCH METHODOLOGY

RESEARCH PROCESS

This part has a role which is important for the study. The authors should make a plan for the
research process in a logical way. It helps them know where the problem is and is easy to solve
quickly. The process of research has many steps.

To determine exactly what the researchers are doing, they need to identify and ensure they
understand the topic. Then, to determine the research topic and creates a question that the research
paper needs to answer, the research which is successful or failure is demonstrated in this step. Next,
the research team selects the theories which are relevant to the topic, which help to answer the
research questions. After that, the team chooses the research method to measure the scale and prepare
for the official research. And the survey is conducted by a quantitative and qualitative method. The
research team conducts interview individual and group to adjust the scale and then run the Pilot test
to find out the final questionnaires. After that, the team select a sample design and collect the data.
The data collected will be run in SPSS and AMOS. And finally, the research team suggest some
implication. The research process is summarized in the diagram below.

Source: Authors

28
 Figure 3 – 1: Research Process

RESEARCH APPROACH

Qualitative Research

Clissett (2008) argued that qualitative research consists of a series of approaches to exploring
human experience, motivations, behaviors, perceptions by collecting and analyzing data in both
writing and speech. From there, the team will collect data in writing through the use of open-ended
questions and direct interviews or group discussions (Hair et al., 2010). The method which creates a
comfortable space to collect the most accurate results from the responders in research. During the
collection process, information can be adjusted appropriately before the new information appears.

Hair et al. (2010) suggested that focus group research begin by gathering together a small
group of 8 to 12 people to discuss and interact on this topic. Therefore, the team set up a focus group
consisting of 4 to 6 participants in each group who purchased items through the e-commerce website.
During the interview, researchers gathered their opinions about enterprise website credibility and
customer engagement in e-commerce. Specifically, interviewees also assisted the research team to
develop and adjust variables that matched the scale, adding, subtracting or changing of words to
understand and fit all participants in the official survey.

Quantitative Research

Quantitative research is a method of research that uses statistics to process data. Data is
numbers and anything that can be systematically measured to investigate phenomena and their
relationships. Quantitative methods are used to answer questions about the relationship in measurable
variables for the purpose of explaining, predicting and controlling the phenomenon (Leedy 1993).

The team uses the quantitative methods, as reporting the results, must pay attention to the
interpretation of the collected data. When planning data collection, in reality, results are
unpredictable, the authors should pay attention to these factors. The techniques for cleaning the data
should also be explained by the author. The authors presented the data through charts, tables, and
figures that help readers to understand. These respondents in the quantitative research are asked
responding multiple questions, either yes or no, and some questions relate to the level such as
questions levels are numbered from 1 to 5.

29
 DATA COLLECTION METHODS

Qualitative data collection method

Clissett (2008) argued that qualitative research consists of a series of approaches to explore
human experience, motivations, and behaviors, perceptions by collecting and analyzing data in both
writing and speech. From there, the team will collect data in writing through the use of open-ended
questions, face-to-face interviews, and group discussions (Hair et al., 2010). The method which
creates a comfortable space to collect the most accurate results from the responders in research.
During the collection process, information can be adjusted appropriately before the new information
appears. In this research, the authors apply the way to collect qualitative data is the in-deepth and
focus-group interview.

In-deepth Interview

According to Boyce and Neale (2006), in-depth interviews are a qualitative research technique
that involves the personal interviews with a small number of respondents to explore their views on
specific ideas, programs or situations. In other word, in-depth interviews are repetitive conversations
between the researcher and those who provide information to understand the life, experiences and
perceptions of the person who provides information through their views. The team prepares the
questions in advance and try to create the comfortable space for respondents. As a result, the answers
of respondents are able to compare different answers that is given to the same questions, and give the
reliable data for research. During the interview, researchers gathered their opinions that relate to
enterprise website credibility and customer engagement in e-commerce.

Time

The authors conduct the interviews with ten respondents at FPT University at District 12,
Vincom Trade Center, District 1 and Tao Dan Park in Ho Chi Minh City. The meeting is implemented
in 2 days, 16th and 17th, October 2018. Each interview lasts 5 minutes.

30
 Table 3 - 1: Information of Respondents

No. Name Gender Job Accommodation

1 Miss. Ha Female Office Worker HCM

2 Mr.Thanh Male Worker of E-Mart HCM

3 Mr.Ngoc Male Office Worker HCM

4 Mr.Van Male Salesman HCM

5 Miss.Yen Female Worker of English Center HCM

6 Miss.Nguyen Female Office Worker HCM

Student of FPT
7 Mr.Khanh Male HCM
University
Student of University of
8 Mr.Phuc Male HCM
Medicine and Pharmacy
9 Miss.Vy Female Student of Sai Gon University HCM

10 Mr.Bao Male Student of FPT University HCM

Source: Authors

Focus-Group

Focus group or focus group interview is a qualitative technique for collecting data (Anderson,
1990). According to Denscombe (2007), the focus group consists of a small group of people, usually
between six and nine, who are gathered by a researcher to explore attitudes, feelings, and perceptions
about the topic. The purpose of this technique is to gain insights into the research problem by listening
to a selected group is from a target market that is relevant to the issues that the researcher is interested
in. The value of this approach is that unanticipated conclusions are often obtained from the group's
free discussion. Therefore, the team set up a focus group consisting of 4 to 6 participants in each
group who purchased items through the e-commerce website and using the Internet.

Time

The authors conduct the interviews with ten respondents at Le Van Tam Park and City Post
Office at District 1 in Ho Chi Minh City. The meeting is implemented in 1 days, 17th, October 2018.
Each interview lasts 7 minutes.

31
 Table 3 - 2: Information of Respondents
No. Job Accommodation
Students from University of
HCM
Group 1 Medicine and Pharmacy
Students from Vietnam National
Group 2 HCM
University
Respondent 1: The employee of
Korea Furniture Company
Respondent 2: Student of Hoa Sen
Group 3 HCM
University
Respondent 3: The Marketing
Staff of Real Estate Company
Students from Viet Nam National
Group 4 HCM
University
Source: Authors

Structured Interview Process

There are three kind of interview as structured interviews, unstructured interviews, and semi-
unstructured interviews (John Dudovskiy, 2013). The authors conduct the structured interviews. This
is an interview method that is performed with all subjects through the same questions. Firstly, the
team will interpret clearly the meaning of website credibility and customer engagement. Secondly,
after the interviees get understand, then the team will ask them some open-questions which relate to
the study. The team will record and note their answers and use it to support for the research.

Quantitative data collection method

Quantitative research is to gather information to accurately predict the relationship between

factors and behaviors, relationships validating, and hypothesis testing (Hair et al., 2010). The authors
have adapted the scale then creating the official questionnaire survey through the reviews of
respondents and do Pilot Test. In this research, the data is gained through this quessionaire survey
from respondents who have purchased through online transactions in E-commerce. After that the team
choose to combine SPSS and AMOS for processing.

DESIGN QUESTIONNAIRE
The researchers use the Likert scale in the survey. According to Likert (1932), there are five
levels in the Likert scale. It starts at 1 and ends at 5 corresponding to totally disagree and totally agree

32
 Questionnaire Structure

Questionnaires structure include 3 parts:

Part 1: Introduction and warm-up questions. This includes filtering questions to eliminate
people who do not live in Ho Chi Minh and have never purchased in online shopping.

Part 2: Conclusion about the variable that evaluates the enterprise website credibility and has
an effect on customer engagement as purchasing online in an E-commerce website.

Part 3: Demographic questions that relate to the respondents

The questionnaire is attached in Appendix B: Questionnaire of Quantitative Research.

Scale Construction

Table 3 – 3: Construct components’ scale

Variables Reference
Items Questions
resources
Thomas S.
WQ1 These websites have fast loading speeds. Tullis and
Jacqueline N.
These websites regularly update new product Stetson – 2004
WQ2
information. B.J. Fogg,
Ph.D., Cathy
Website layout is clear and very Soohoo, David
WQ3
Website Quality professional. Danielson –
2002
This website helps me to easily find
WQ4 Balabanis and
information that I need.
Reynolds
(2001);
Chakraborty et.
WQ5 This website navigate easier. al (2002), Yoon
(2002)

RF1 I was recommended to these websites

through my friends and relatives.

I purchase on these websites based on Ardnt, 1967

RF2
referral sources from the online community. Luisa
Cavallero, 2016
Referral It is important to me that a person/friend
RF3 Dan J. Kim
recommends a website to me before I buy
(2005)
from it.

RF4 It is important to me that previous customers'

reviews are available on a web site.

33
 REP1 I think these websites are honest and reliable.
Ong, Andrew
These websites are well-known in the online Lek Perng and
REP2 Chong, Fo
community.
Thing and
Reputation Tham, Yin
In my opinion, these websites is highly
REP3 Fong (2014)
appreciated by its customers
Donney &
These websites fulfill the commitments with Cannon, 1997
REP4
customers.

I intend to continue trading with these Ong, Andrew

RP1
websites. Lek Perng and
Chong, Fo
I will continue to buy the products I used Thing and
RP2
Repurchase before from these websites. Tham, Yin
Fong, 2014
RP3 I will still choose these websites for purchase Shih-Wei Chou
again. & Chia-Shiang
Hsu, 2015
I recommend this site to others on social
AD1
network sites. Baldus et al.,
2015
I share experiences and information with
Advocating Fuggetta, 2012
AD2 others to help them better understand this
website Luisa
Cavallero, 2016
AD3 I speak positively about this website to others
Source: Authors

SAMPLING DESIGN

Sampling Techniques

According to Alvi, M. (2016) non-probability sampling methods is no random selection will

be made. Sample selection was done on the basis of subjective assessment of the investigator. These
techniques need not be precisely defined. The sampling techniques are discussed in advance it is
based on the assumption that the sample of researchers will be randomly selected according to
statistics.

This research used convenience, judgment sampling and snowball sampling that are types of
non-probability sampling methods for selecting the respondents to this survey. Because the authors
don’t have the condition to conduct the probability sampling methods. Due to the lack of research
budget, the team has optimized the convenient sampling to distribute questionnaire surveys to
students and lecturers at universities in Ho Chi Minh City. In addition, office buildings in which the

34
 team focuses on finding the respondents that are suitable for the research. We have approached any
respondents through online or drop-off of questionnaires depending on their accessibility. Next, the
team used judgment sampling. This is the method by which the research team who makes a judgment
about the object to be selected for the sample. This research approached respondents who used the
Internet by the judgment that they could have an online shopping experience. Because their response
is quite feasible for the study. The authors tried to send online surveys via online channels and paper
surveys to invite respondents to conduct the survey. Finally, snowball sampling helps the study to get
more data through the initial respondents who gave the information of other respondents. The using
of the snowball sampling method that referrals would help the team identify more additional people
introduced and get more useful information.

Sample Size

The sample size is at least 5 times the total number of observation variables to ensure the
accuracy of the results (Trọng and Ngọc 2008, or Hair et al. 2010). Following the investigation of
Comrey (1973) define the minimum amount of sample size should be calculated by the formula below
to reach the highest reliabale rate as much as possible:

n = 5*m (m: number of questions in the scale)

So the research included 19 observed variables, and the minimum sample scale is 95
respondents. According to Tabachnick, Fidell, and Osterlind (2001) suggested that Sample scales
give the appropriate research results as shown in the following table.

Table 3 – 4: Sample amount and quality

Amount of sample Quality

50 Worst
100 Worse
200 Average
300 Good
500 Very Good
1000 Excellent
Source: Tabachnick, Fidell and Osterlind, 2001

In conclusion, the authors decide to take the sample quantity is 420. During the survey process,
the research team decides to deliver online and paper surveys in order to collect data easily. The
research team selected people who are from 18 years of age to conduct the survey (Vietnam E-
Commerce Report 2016–2017). Finally, the researchers collected only 383 valid questionnaires.

35
 DATA ANALYSIS METHOD

Descriptive Statistics

According to Thompson (2009), descriptive statistics are brief descriptive coefficients that are
used to summarize data with the purpose is to describe what happens in the sampling. In this study,
researchers used descriptive statistics to analyze respondents' demographics including gender, age,
income, occupation, and the degree of frequency of respondents who have purchased on the Internet.
Demographic data were presented in percentage (%) and frequency (f) (Kumar, et al., 2009). The
team uses SPSS 20 to analyze the demography from the collected data.

Scale of Reliability

Reliability analysis is used to test the reliability and consistency of each item in factor.
Reliability of scale verifying is judged by Cronbach's Alpha ratio.

The Cronbach's Alpha ratio is the reliability ratio which is used to estimate the correlation
scale between observed variable-pairs.

Estimating reliability scale via Cronbach’s Alpha ratio:

0.8 ≤ α < 1: Good measurement scale.

0.7 ≤ α < 0.8: Usable measurement scale.

α ≥ 0.6: Usable with new research conception.

Scale reliability estimates can be determined by Corrected Item-Total Correlation to remove

the invalid variables from the scale. Corrected Item-Total Correlation is the correlation ratio of a
variable with the average point of other variables on the same measurement scale. Therefore, this
higher proportion is more correlated in group variables. According to Nunnally and Bernstein (1994),
variables with Corrected Item-Total Correlations greater than 0.3 are considered as valid variables.

Exploratory Factor Analysis (EFA)

Exploratory Factor Analysis (EFA) is used in research as a tool to reduce the observed
variables meanwhile the information content and meaning of variable before still be guaranteed (Hair
et al., 2010). Each observation variable was calculated to a ratio called the factor loading, which
allowed the researchers to identify which variables belonged to which factor. Factor analysis model
is considered appropriate when the criteria are satisfied:

36
 Factor loading ratio is the ratio which can show the correlation relationship of the observed
variable and the factors. According to Hair et al. (2009):

Factor loading > 0.3 can be kept.

Factor loading > 0.4 has good meaning in research.

Factor loading > 0.5 has very good meaning in research.

Kaiser-Meyer-Olkin (KMO) is the ratio used to observe the suitability of the factor analysis
(Kaiser, 1974). 0.5 ≤ KMO ≤ 1 is the most suitable range when considering the suitability. The
standard which accepts factor analysis has total variance explained is greater than 50% with
Eigenvalue must greater than 1.

Confirmatory Factor Analysis (CFA)

Confirmatory Factor Analysis (CFA) is a method to determine the relevance of research data
to theoretical models. With CFA, researchers have to know in advance how many factors, how many
variables in each factor. The CFA is responsible for considering the suitability of the model available
with the research data. In other words, CFA seeks to assert the relevance of the theoretical model
available to the research data. CFA is a better method for evaluating the validity and the reliability of
measures (Bagozzi & Foxall, 1996). Measuring the fit of the model with market information, one
usually uses the following indicators and the model is considered appropriate when

Table 3 – 5: Index of CFA

Fit index Acceptable threshold levels Sources
Chi-square adjusted to
CMIN / df < 2, some cases CMIN / df Carmines and
degrees of freedom
may be < 3 McIver, 1981
(CMIN/df)

Goodness of fit (GFI) > 0.90

Segar, Grover, 1993
Comparative fit index CFI >= 0.90 (fit) & Chin & Todd,
(CFI) CFI >= 0.95 (good fit) 1995
Tucker – Lewis Index (TLI) TLI > = 0.90 : good fit
RMSEA (Root mean square
Very good if RMSEA ≤ 0.05 Steiger, 1990
error of approximation)

Besides that confirmatory factor analysis (CFA) helps to clarify the evaluation criteria, (1)
Uni-dimensional; (2) Reliability of the scale; (3) Convergence value; (4) Discriminative value.

37
 Test Modeling with Structural Equation Modelling (SEM)

The Structural Equation Model (SEM) has become one of the techniques that researchers have
chosen in the field of study (Hooper et.al, 2008). SEM is a comprehensive statistical approach to
represent, estimate and test the theoretical network of linear relationships between variables. In other
words, to test hypotheses about the relationship between variables then the authors use SEM (Hoyle,
1995; Rigdon, 1998). Furthermore, according to Kline (1998), the reason for using SEM is to
understand the patterns of correlation/covariance among a set of variables and SEM clarifies as much
of their variance as possible with the model specified. However, to conduct SEM then the model test
criteria used in the previous CFA were also used in this analysis.

Testing Bootstrap

With the option of Anderson & Gerbing (1988), there are two methods to evaluate the
reliability of estimates in quantitative methods by sampling method. First, those researchers will
repeat the study with another sample. Second, they will divide the samples into two sub-samples to
estimate the model parameters and re-evaluate. However, these methods are quite costly and the waste
of time. Then the bootstrap testing method is the best way for replacement (Schumacker & Lomax,
2006). The bootstrap method is a set of analytical techniques based on sampling with replacement to
estimate the parameters in which the initial sample acted as a crowd.

PILOT TEST

In the Pilot test, the research team distributed 58 surveys to run in Preliminary research. After
that the research team sent the survey directly to lecturers and a small number of students for one day
at FPT University, then the team collected the data from this. The result shows that there are 50
surveys which are valid and 8 surveys which are invalid because some respondents had miss some
questions in the survey and have some respondents who have never bought through the online. The
sampling technique applied in Pilot-Test is the same with the sampling technique of official research.

The purpose of this step is to test the logic of the questionnaire, the grammar, and the layout
mistakes. Besides that, this part also helps the research team to get more experience for an official
survey

38
 Cronback’s Alpha

Table 3 – 6: Cronbach’s Alpha result (Pilot-test)

Component Cronbach’s Alpha

Website
0.905
Quality

Referral 0.843

Reputation 0.841

Repurchase 0.817

Advocating 0.764
Source: Authors
The result shows that the scale of Preliminary Survey is reliability. The Cronbach’s Alpha
index are greater than 0.6, and The Corrected Item – Total Corelation value are greater than 0.3. All
observed variables is accept in Official survey. Through the pilot test, advice from the participants
was received, and the authors corrected some spelling errors in the questionnaire. There were very
few complaints about the logic of the questionnaire which was then resolved.

SUMMARY

In this chapter, the author mentions methods that will be applied to handle the data and the
result of collecting the data. From the result of the preliminary survey in this chapter, the team builds
the official survey. In particular, all variables of the study is accepted because they meet the criteria
of the reliability test. On the data collection method, the questionnaire was the source for the primary
data and the secondary data including various types of relevant information and previous studies.
Next, the identification of the target population and the sampling strategy was explained by the
sampling design. The respondents who use the Internet and have purchased in the online websites are
the target audience for this study and the survey is conducted through both online survey and hard-
copy questionnaire. This study mainly uses non-probable sampling, including convenient sampling,
judgment sampling, and snowball sampling method. Finally, statistical procedures and tools for
processing and analyzing data are included in the last section of this chapter. Check the questionnaire,
edit the data, encrypt the data, copy the data and clean the data is conducted through SPSS and AMOS
version 20.

39
 CHAPTER 4: DATA ANALYSIS

RESPONSES AND MISSING VALUES

In this survey, two ways are used to collect data including online survey and paper
questionnaires. For the online survey, Google Doc questionnaires are used to conduct the survey.
Paper questionnaires are hand-delivered directly to people who use the Internet or who have
purchased on E-commerce websites in Ho Chi Minh City. The collected data is saved to Microsoft
Excel and analyzed through the support of SPSS and AMOS 20 software.

Table 4 - 1: Number of Valid Answer

Total Online Invalid Valid

Paper Survey
Respondent Surveys Answer Answer

420 152 232 37 383

Source: Authors

DESCRIPTIVE ANALYSIS
In this part, we show the questions in the questionnaire survey which describe the
demographic of participants, including gender, age, career, income and the degree of purchasing. All
of the results below are from frequency statistic in SPSS software.

Gender

The male has 182, hit ratio is 47.5%. In addition, the number of females is bigger than the
number of males - the number of females is 201, occupies 52.5% of the entire.

Age

According to the results, the age of from 18 - 25 years old is dominated by 53% with 203
individuals, and the second highest age group is 26 - 35 years old with 38.6% with 148 people.
Followed by the 36 – 45 years old group with only 7% - 27 people. Finally, over 45 years old is the
lowest among the four age groups just has only 1.3% with 5 participants.

Career

With the data collected from the surveys, the groups are most likely to use e-commerce sites
are students who account for nearly half the total number of participants as much as 43.1%. Officers
and businessman also had high e-commerce usage rates of 23.0% and 12.5% respectively. Because

40
 the need to use e-commerce sites is high such as shopping, work, exchange, and communication.
Furthermore, the group of housewife and other have the low ratio – only a total of 70 people and
appropriate 18.3%. Finally, teachers are the lowest group among occupational groups with only 3.1%
- 12 people took the survey.

Income

According the result, it refers to the level of monthly income of those who performed the
survey. 44.1% respondents have the income level from 5 to less than 10 million VND, has the highest
ratio in all groups. Next, that is the group whose income level is under 5 million VND per month also
have a large ratio of percentage – 26.6%. The group of income level from 10 to less than 15 million
VND per month is the third with 18%. The last group has income over 15 million VND is the lowest
percentage with only 11.2%.

The degree of purchasing

The result has shown the three level of the frequency of using website online to purchase, the
level of transaction is acted over five times per months is lowest with only 10.2%. In the second
position is the level less than three times per months with 41%. Stand at the highest rate is the level
from three to five times per month with rate is about 48.8%.

From the rate was showed can realize that, the opportunity of using the website for buying goods and
service of the customer is very large. The chance for E-commerce will be smooth while the rate of
choosing the website for buying is high in recent time.

VERIFYING RELIABILITY

Table 4 – 2: Cronbach’s Alpha of Website Quality Scale

Corrected Item- Cronbach’s

Component Code Total Alpha if Deleted
Correlation Item
Cronbach’s Alpha = 0.718
WQ1 0.128 0.889
WQ2 0.688 0.600
WQ3 0.642 0.618
WQ4 0.666 0.608
WQ5 0.624 0.623
Source: Authors

41
 Table 4 – 3: Cronbach’s Alpha of Scale

Component Code Corrected Item- Cronbach’s Alpha if Deleted Item

Total
Correlation
Cronbach’s Alpha = 0.889
Website Quality
WQ5 0.747 0.861
Referral Cronbach’s Alpha = 0.883
RF1 0.685 0.874
Cronbach’s Alpha = 0.897
Reputation
REP3 0.691 0.897
Cronbach’s Alpha = 0.832
Repurchase
RP1 0.640 0.816
Cronbach’s Alpha = 0.873
Advocating
AD1 0.713 0.585
Source: Authors

The results of Cronbach's Alpha of all the components showed that is greater than 0.6 and the
corrected item-total correlation of whole factors are higher than 0.3 but the WQ1 with the Corrected
Item-Total Correlation is lower than 0.3 and Cronbach’s Alpha if Deleted Item ratio is higher than
Cronbach’s Alpha. This number showed that the WQ1 is not kept. So the scale used in this research
has the reliability when removing WQ1. Since, we accept the factor “Website Quality” with 4
observed variables, “Referral” with 4 observed variables, “Reputation” with 4 observed variables,
“Repurchase” with 3 observed variables, and “Advocating” with 3 observed variables. Therefore, the
scale is used in our research meet the reliability and all of the 18 variables are kept for the exploratory
factor analysis (EFA).

4.4. EXPLORATORY FACTOR ANALYSIS (EFA)

In this research topic, factor analysis will help us to consider the ability to shortcut the number
of 18 observation variables to a few variables to specifically reflect the impact of the factors. The
results of the factor analysis are shown below:

 KMO Test (Kaiser-Meyer-Olkin Test)

To perform EFA then the obtained data must meet the conditions of the KMO test and
Bartlett's test. Bartlett's Test used to test the hypothesis H0 is that the variables are not interrelated in
the whole, the KMO coefficient used to determine whether the sample size is consistent with the
factor analysis (Trọng, H. & Ngọc, C, N, M. 2008), Sig value of Bartlett's Test less than 0.05 allows
rejecting the H0 hypothesis and 0.5 <KMO <1 means that factor analysis is appropriate.

42
 Table 4 – 4: KMO and Barlett’s Test
KMO and Bartlett’s Test

Kaiser-Meyer-Olkin of Sampling Adequacy 0.900

Bartlett’s Approx. Chi-Square 4217.719

Test of
Sphericity Df 153

Sig. 0.000

Source: Authors

The test result for the KMO's value was 0.900 greater than 0.5, and Sig. Of Bartlett's Test is
0.000 was less than 0.05, showing 18 observed variables and fully consistent with the factor analysis.

 Pattern Metrix

The chosen method here is Promax. Therefore, it will enhance the ability to explain the factors.
Only observed variables with a factor loading are greater than 0.5 are used to explain a factor. The
EFA will retain observed variables with factor loading which are greater than 0.5 and arrange them
into main factors.

Results of the factor analysis revealed 5 factors and no observed variable with factor loading
less than 0.5. In addition, there are five groups of factors were extracted and explaining 67.682%
variability in data. To determine the number of factors in this study using two criterias:

 The Kaiser Criterion determines the number of factors is extracted from the scale. The
less important factors are eliminated, leaving only the important factors by considering
the value of the Eigenvalue. The Eigenvalue value represents the variance explained by
each factor, is a commonly used criterion for determining the number of factors in an EFA
analysis, only those factors have an Eigenvalue greater than 1 is retained in the analysis
model.

 Variance Explained Criteria: Factor analysis is appropriate if the total variance explained
is not less than 50%.

For the results of the exploratory factor analysis below, the total variance explained is
67.682%, is greater than 50% and the eigenvalues of the five factors are greater than 1, so using the
factor analysis is appropriate.

43
 Table 4 – 5: The result of Total Variance Explained and Pattern Metrix
Item Factor Loading
1 2 3 4 5
REP4 0.92
REP1 0.849
REP2 0.817
REP3 0.695
RF2 0.858
RF4 0.848
RF3 0.846
RF1 0.662
WQ2 0.838
WQ5 0.837
WQ4 0.793
WQ3 0.774
AD3 0.92
AD2 0.853
AD1 0.672
RP2 0.904
RP3 0.757
RP1 0.709
Eigenvalues 7.284 2.238 1.607 1.443 1.182
Variance 38.712 10.693 7.092 6.178 5.007
Explained Total Variance Explained: 67.682 %
Source: Authors

After rotating the factors, we define that the concentration of observed variables by each factor
is quite clear. The results of the analysis showed that there were 18 observed variables and generating
5 factors, which were eligible for further analysis.

CONFIRMATORY FACTOR ANALYSIS (CFA)

Confirmatory factor analysis (CFA) was performed with 18 observed variables. Based on the
results of the EFA analysis, five factors were drawn with corresponding scale groups to form the
conceptual measurement model and included in the CFA analysis to examine the suitability of the
model with the research data. The results of the CFA analysis are as follows:

 Verification of the fit of the model:

As the result, CMIN / DF = 1.376 (<2) (Carmines & McIver, 1981), GFI = 0.952, TLI = 0.986,
CFI = 0.989 > 0.9 (Bentler & Bonett, 1980) and RMSEA = 0.031 less than 0.08 are consistent
(Steiger, 1990). Therefore, the model is appropriate or compatible with the research data. In addition,
some issues: (1) Uni-dimensional; (2) Reliability of the scale; (3) Convergence value; (4)
Discriminative value.

44
  Uni-dimensional: According to Steenkamp & Van Trijp (1991), the degree of fit for the
model with the research data gives us the necessary and sufficient conditions for the
observed set to achieve uni-dimensional except for the error of the observed variables
correlated with each other. From the results obtained, the model is considered consistent
with the research data and there is no correlation between the measurement errors so it can
be concluded that it is uni-dimensional.

 Reliability of the scale: Scale reliability was assessed through 3 values: Composite
Reliability (CR), Average Variance Extracted (AVE) and Cronbach's Alpha (Fornell &
Larcker 1981). Cronbach's Alpha: Analyzed in part 4.2

Table 4 – 6: The result of Composite Reliability and Average Variance Extrated.

Composite Reliability Average Variance Extracted
Factor
(CR) (AVE)
RF 0.886 0.660
WQ 0.889 0.667
REP 0.899 0.692
AD 0.874 0.699
RP 0.836 0.631
Source: Authors

The scale is considered to be reliable when the Composite Reliability is significant at a value
greater than 0.7 and the Average Variance Extracted is significant at a value greater than 0.5 (Hair et
al., 1995; Nunnally, 1978). From the above table, we can see that the CR and AVE of all scales are
greater than 0.7 and 0.5. As a result, the scales are generally reliable.

 Convergence value: The scale is considered to be convergence value when The Standardized
Regression Weights of the scale are greater than 0.5 and statistically significant (Gerbring &
Anderson, 1988; Hair & associates, 1992). In addition, another criterion for examining
convergence values is AVE of the concepts. Fornell and Larcker (1981) argue that for a factor
to achieve convergence value, the AVE must be at least 0.5. According to the analysis, all The
Standardized Regression Weights and Regression Weights are greater than 0.5, and AVE
values are greater than 0.5, so it can be concluded that the factors have the convergence value.

45
 Table 4 – 7: The Coefficient of Regression Weights and Standardized Regression Weights

Standardized
Relationship between factor
Regression Weights

RF2 ← RF 0.838

RF4 ← RF 0.825

RF3 ← RF 0.841

RF1 ← RF 0.742

WQ2 ← WQ 0.809

WQ3 ← WQ 0.840

WQ5 ← WQ 0.794

WQ4 ← WQ 0.823

REP4 ← REP 0.887

REP1 ← REP 0.844

REP2 ← REP 0.852

REP3 ← REP 0.737

AD3 ← AD 0.855

AD2 ← AD 0.862

AD1 ← AD 0.790

RP2 ← RP 0.894

RP3 ← RP 0.771

RP1 ← RP 0.707
Source: Authors

 Discriminative value is assessed through the following criterias: (Hair, et al., 2010):

(1) Evaluate the correlation coefficient between factors that differ from 1 or not.

(2) Compare the square root of the AVE is larger than with correlation coefficients of one factor
with the other (Fornall & Larcker, 1981):

We find that the correlation coefficient between the pair of factors is different from 1 at the 95%
confidence level.

46
 Table 4 – 8: Results of Average Variance Extrated of factors from Table 4 - 12

RF WQ REP AD RP
AVE 0.660 0.667 0.692 0.699 0.631
AVE1/2 0.812 0.817 0.832 0.836 0.794
Source: Authors

Table 4 – 9: Correlation between factors

RF WQ REP AD RP

RF 1
WQ 0.466 1
REP 0.361 0.569 1
AD 0.423 0.498 0.600 1
RP 0.485 0.407 0.356 0.384 1
Source: Authors

By comparing the square root of the AVE in the table with the coefficients of correlation
between concepts, it can be seen that the square root of the AVE of each concept is larger than the
correlation coefficients between the concept and the other. Thus, from all these results, one can assert
that concepts or scale have discriminative value. Thus, we have a model of CFA analysis:

47
 Source: Authors

Figure 4 - 1: Analysis results of Confirmatory Factor Analysis (CFA)

CFA of independent variables

According to the result, CMIN / DF = 1.463 (<2) (Carmines & McIver, 1981), GFI = 0.968,
TLI = 0.989, CFI = 0.992 > 0.9 (Bentler & Bonett, 1980) and RMSEA = 0.035 less than 0.08 are
consistent (Steiger, 1990). Therefore, the model is appropriate or compatible with the research data.
Besides that, the model has the unidimensional. The scale is reliability, and reach the convergence
and disciminant value. The result is at Appendix D.

48
 Source: Authors
Figure 4 – 2: The CFA result of independent variables

CFA of dependent variables

According to the result, CMIN / DF = 0.890 (<2) (Carmines & McIver, 1981), GFI = 0.994,
TLI = 1.002, CFI = 1.000 > 0.9 (Bentler & Bonett, 1980) and RMSEA = 0.000 less than 0.08 are
consistent (Steiger, 1990). Therefore, the model is appropriate or compatible with the research data.
Besides that, the model has the unidimension. The scale is reliability, and reach the convergence and
disciminant value. The result is at Appendix D.

Source: Authors
Figure 4 – 3: The CFA result of dependent variables

49
 STRUCTURAL EQUATION MODELING (SEM)

After analyzing the CFA, the study uses a structural model SEM to determine the factors that
influence and the degree of influence of each factor to RP, AD. SEM analysis was conducted starting
from the proposed research model, then the model was modified to obtain a better model.

In hypothesis testing and model, the SEM model has many advantages because it can calculate
the error measure. Hypothesises:

H1: Website quality has a significant positive influence on the repurchase in e-commerce.

H2: Website quality has a significant positive influence on advocating in e-commerce.

H3: Referral has a significant positive influence on the repurchase in e-commerce.

H4: Referral has a significant positive influence on the advocating in e-commerce.

H5: Reputation has a significant positive influence on the repurchase in e-commerce.

H6: Reputation has a significant positive influence on the advocating in e-commerce

Source: Authors

Figure 4 - 4: Analysis results of Structural Equation Modeling (SEM)

50
 The results are shown in Fig. 4 - 1. The model is consistent with the study data because Chi-
square/df = 1,389 (<2); GFI, TLI, CFI> 0.9; RMSEA = 0.032 (& lt; 0.08). After considering the
suitability of the model, the next issue of the study will evaluate the results of the SEM analysis.

Table 4 - 10: The analyzing result of Structural Equation Modeling (SEM)

Relationship of correlation
P Standardized
between the factors

RP ← RF *** 0.362
AD ← RF *** 0.194
RP ← WQ 0.021 0.163
AD ← WQ 0.014 0.158
RP ← REP 0.035 0.137
AD ← REP *** 0.441
Source: Authors (*** = 0.000)

The analysis results show that there is a significant effect of factors on RP, AD, so the
assumptions for H1, H2, H3, H4, H5, and H6 are acceptable because of statistical significance (p <
0.05).

There is a positive correlation between Referral and Repurchase with a standardized

coefficient of 0.362

There is a positive correlation between Website Quality and Repurchase with a standardized
coefficient of 0.163

There is a positive correlation between Reputation and Repurchase with a standardized

coefficient of 0.137

There is a positive correlation between Referral and Advocating with a standardized

coefficient of 0.194

There is a positive correlation between Website Quality and Advocating with a standardized
coefficient of 0.158

There is a positive correlation between Reputation and Advocating with the standardized
coefficient of 0.441

51
 TESTING BOOTSTRAP

Table 4 - 11: The analyzing result of Bootstrap

SE SE
Parameter Estimate Mean SE CR
(SE) Bias (Bias)

RP ← REP 0.137 0.129 0.073 0.002 -0.008 0.002 -4

RP ← RF 0.362 0.367 0.062 0.001 0.005 0.002 2.5

RP ← WQ 0.163 0.163 0.077 0.002 0.001 0.002 0.5

AD ← REP 0.441 0.439 0.072 0.002 -0.003 0.002 -1.5

AD ← RF 0.194 0.199 0.075 0.002 0.005 0.002 2.5

AD ← WQ 0.158 0.159 0.089 0.002 0.001 0.003 0.333333

Source: Authors
The absolute value of critical ration (CR) is smaller than 1.96 so P-Value > 5%, it can be said
that the deviation is very small, not statistically significant at 95% confidence (Duy, K, N., 2009).
When conducting Bootstrap with 1000 samplings, the parameter of Website Quality with Repurchase
and Advocating, and Reputation with Advocating have the result of the absolute values of CR are
smaller than 1.96, thus the deviation is not significant, the conclusion is that the estimation in the
model can be reliable. However, the Referral with Repurchase and Advocating, and Reputation with
Repurchase have the result of the absolute values of CR are greater than 1.96, thus the deviation is
significant, the conclusion is that the estimation in the model can not be reliable.

SUMMARY
In this chapter, the data collected from questionnaires were gathered to explain, and are
transformed into meaningful value. The results are divided into descriptive statistic about general
information of respondents and find out the association and the relationship between independent and
dependent variables. The results show that six hypotheses are accepted based on the results of this
study. The three independent variables which brought significant impact on consumer engagement
were website quality, referral, and reputation. In the next chapter, a summary of statistical analyzes,
key findings, implications from this research, limitations in the study and suggestion of
recommendation.

52
 CHAPTER 5: FINDINGS AND IMPLICATIONS

5.1. KEY FINDINGS

After the team performs the process of collecting and analyzing data in the previous chapter,
the researchers have got sufficient basis to answer the research questions to gain the objectives posed
from the beginning of the study.

The first question is: "What are the factors of the enterprise website credibility in e-commerce
websites?”. There are three factors that reflect the enterprise website credibility: Website Quality
(WQ), Referral (RF), and Reputation (REP).

The second question is: “What are the factors of customer engagement in e-commerce
websites?". There are two factors that reflect customer engagement: Repurchase (RP) and Advocating
(AD).

To answer the third question in chapter one, the team has focused on the result of SPSS and
AMOS test in chapter four. The results of the study are divided into two main parts: the measurement
model and the theoretical model:

The Measurement Model

The results of the measurement model after analyzing shows that the scale achieves reliability,
convergence value, and discriminative value. All observed variables converge on the corresponding
factor, and all of them have high reliability and convergence values that contribute to easier
measurement. However, the Website Quality variable is removed an observation variable (WQ1)
because of unreliability. The results of this study also confirm a problem, when studied about the
relationship between website credibility and customer engagement in e-commerce in Ho Chi Minh
City can be measured by behavioral questions through the Likert scale.

The Theoretical Model

The results of the study confirm that the value of the scale has the convergence value,
discriminative value, reliability and uni-dimensional that previous studies have not done. It is the
premise for further research to continue to confirm the value of this scale. The results also confirmed
the reputation has the strongest impact on customer engagement. Research results have determined
the level of impact of each element of website credibility to the customer engagement that previous
studies have not solved. In particular, Reputation is the factor that has the strongest impact to
Advocating (ß=0.441); next to is Referral affect to Repurchase (ß=0.362); the third is Referral that

53
 influents on Advocating (ß=0.194); the forth is Website quality has the significant effect on
Repurchase and Advocating respectively (ß = 0.163 and 0.158); and the final Reputation has the
lowest effect on Repurchase (ß = 0.137).

For the last question, based on the result, the team finds out some problems from respondents
in the survey. Those problems are made clearly and detailed in implication part below.

5.2. MANAGERIAL IMPLICATIONS

The credibility is a crucial factor in the transactions on E-commerce websites. The credibility
of the enterprise websites becomes the basis for their online business activities. Hence, enterprises
should highlight and enhance the factors that relate to them such as Website Quality, Referral, and
Reputation. These will maintain the credibility and increase customer engagement in Vietnam.

5.2.1. Website Quality

Table 5 – 1: The mean value of Website Quality

Mean

WQ2 3.96

WQ3 3.90

WQ4 3.91

WQ5 3.97

Source: Authors

Source: Authors
Figure 5 – 1: Website Quality item statistics

Based on the information displayed on Appendix C, it is realized that variables from WQ2 to
WQ5 have their mean values located from 3.90 to 3.97. This result reflects that most respondents

54
 “agree” with Website Quality items. The difference between the highest value (This website navigate
easier.) and the lowest one (Website layout is clear and very professional.) is 0.07 which is not a
significant number. Therefore, it can be concluded website quality is the factor which respondents
focus on and quite important for them who have purchased on online shops or are using the Internet.

Implication

The report of Neilsen (2000) argued that users make the decisions stay or leave the website
based on the first impression of websites. Users form a certain level of confidence and trust in the
quality website after a favorable experience at the website. Consequently, the perception of website
quality is more important for customer conversion. When customers have accumulated positive
experience and impressed with the quality of the website can also influence in determining the
intention to continue to buy due to the formation of trust and confidence in the site system.

For the element Website quality, can see almost the report of Vietnam E-Commerce
Association about E-commerce in 2017, almost website just concentrate the ability and resources for
the content, information update, searching tool and navigation. Websites that are not user-friendly
and do not update can frustrate consumers and will turn them into competitors. In other to enhance
the website quality, the design of the website should be updated frequently and try to improve the
layout of the website. The website design should aim to the points as the interactive easily, the layout
is clear, the menu column is arranged suitably. More than that, the guidance steps for the first users
should be invested also to make the customer feel that more easily in use because many of website
don’t have the guidance for the customer. If the customer is not familiar with the technology, they
will not feel comfortable. The design of this element should usually be viewed about the content and
the outside to catch the trend in the market.

In addition, websites need to evaluate whether the information they present in the form of
content and format is relevant to the customer's point of view. This can be achieved through customer
surveys whenever product information is presented to the customer. In a dynamic world where
information is changing rapidly, customers will want the accurate and timely information. Providing
credible information and giving timestamps of information can increase the customer's perception of
the accuracy and timeliness of the information provided. Therefore, customers can return to the site
continuously in the future.

55
 5.2.2. Referral

Table 5 – 2: The mean value of Referral

Mean

RF1 3.44

RF2 3.46

RF3 3.51

RF4 3.70

Source: Authors

Source: Authors
Figure 5 – 2: Referral item statistics

The four items of Referral also have the mean value with the highest mean value of 3.70 which
belongs to (It is important to me that previous customers' reviews are available on a website.) and the
lowest one of 3.44 which belongs to (I was recommended to these websites through my friends and
relatives.). All four items are marked between “neutral” and “agree” proving that Referral is also a
strong factor encouraging customers to believe in the online shopping.

Implication

Based on some of the reason in the report about factors that guide to the decision of buying
from the online user by Google 2014 pointed that, 29% the people who have never do buying online,
make a decision of buying through their friend or family who have ever bought the product on the
online and have the prior positive experiences. As a result, the referral plays the important role which

56
 affect to customer’s decision and influent to the website credibility in the context of E-commerce.
Thus the team has several implications to improve the referral sources which relate to the enterprises.

Noted that although findings in this research reflected that referral factor is the second most
important influence on repurchase variable, and is the third influence on advocating of customer
engagement. It is necessary to improve this aspect. The effect of negative referrals pay more attention
than positive referrals and so the enterprises should prevent these from minority customers. They
could lead to the snowball effect, and the confidence of other customers would decrease when
conducting the transactions in websites. The problem is how a website/company manage the risk and
their actions. After receiving a response, the enterprises should have a quick answer. Keeping an eye
out for negative referrals with quick actions, to show that you are really interested in improving
services, and watching as an opportunity for the enterprise to progress. The consideration to the
customer after sale should be considered as a step in managing the negative referral to make customer
have more positive emotion when using website.

Furthermore, the implication of the research team for rising the referral of E-commerce
website by enhancing the referral directly through the promotional programs for the customer.
Customer experience mainly depends on referrals from other customers who share on the online
websites. This program will concentrate on motivating customer for introducing or guiding to the
relatives or familiar peoples to the websites, this purpose aims to increase the positive referral to the
website. The result of this program not only retain the existed customer through the discount program
but also concentrate on collecting more new customers in the future. When increasing the referral to
the website, it will boost the customer’s motivation for repurchasing and advocating.

Moreover, creating the family shopping packages mean that family members purchase with
the same website will be accumulated the points into the member account. That customer just read
the code for employees or import the code on the websites then the system will automatically plus
points. After the customer have enough points according to the rule of the website, the customer can
use this points to buy other products on these E-commerce websites or receive gifts from the
enterprises. This implication aims to promote the encouragement each other and become the referral
sources for enterprise websites. In addition, the website should invite famous people or influencers
to talk about enterprises website. They play a role such third-party that makes the site more credibility
and lead to an increase the advocating and repurchase of the customer.

57
 5.2.3. Reputation

Table 5 – 3: The mean value of Reputation

Mean

REP1 3.82

REP2 3.82

REP3 3.69

REP4 3.73

Source: Authors

Source: Authors
Figure 5 – 3: Reputation item statistics

According to table 5 – 3, the means of four observed variables in Reputation are from 3.69 to
3.82. It explained that most of the respondents take care about the Reputation when buying online
and they almost agree. Besides that, the highest is 3.82 that corresponds with variable REP1 and
REP2 (I think these websites are honest and reliable and these websites are well-known in the online
community). In conclusion, almost respondents recognize that the Reputation as a factor to evaluate
the website credibility from E-commerce.

Implication

Based on the result which the authors have analyzed above. It shows that reputation has the
strongest influence on advocating variable of customer engagement, but impact the lowest to
repurchase variable of customer engagement. As the result, the authors suggest that the enterprises
should concentrate on maintaining its good reputation and avoid damaging it. Firstly, the

58
 enterprises/websites should take both proactive and reactive movement to protect its reputation. The
proactive movement which includes plans on how to deal with threats to the reputation that may occur
in enterprise’s operations while reactive movement requests timely corrective action to protect the
reputation of the company after the problem arises. The enterprise must deal with any problems that
customers create on the online platform. When the personnel can solve the problem with a good
attitude and professional. This helps the company/website avoid any problems that can spread to the
public and affect the company/website’s reputation. Secondly, sometimes there are a few incidents
result from the poor performance of the vendor has also affected the reputation of a
businesses/websites. The enterprises should ensure the quality of vendors, which is a win-win
situation for both parties, by that way they could protect their own reputation as well as the reputation
of vendors. The E-commerce websites should offer a particular vendor on its websites. It is best for
enterprises to conduct the background checks of vendors in advance, and ensuring they have
registered their business and previous records for the responsibility of liability in business.

Finally, the website should show clearly the sales policies and certifications of the government
to increase the reputation of the website for customers, besides that businesses/websites also need to
participate in the forum create posts on those forums. The website should add rating items to the
website for customers to evaluate the website, which also contributes to the reputation of the website.
In addition, public relations is also a necessary element for the company to maintain its reputation for
business. It means that businesses should expand their relationships with the communities in which
they operate or participate in social activities such as environmental protection, charity. So if business
improves on the factors mentioned above, their reputation will be protected, and lead to develop
advocating and repurchase of the customer.

5.3. LIMITATIONS AND FUTURE RESEARCHES

5.3.1. Limitations

In the process of performing this study, we faced with some limitations. Firstly, there is a lack
of variety in the demographic profile of respondents from the collected data in this study. The team
just uses the non-probability sampling method to choose the samplings from respondents. Although
this research has been used convenience, judgment, and the snowball sampling method to increase
the chances of reaching respondents from different populations, however, the collected samples
cannot represent each ethnic, age and gender group because the research is mostly focused on students
in Ho Chi Minh City. This is the big limitation of authors because these could affect the accuracy of
the result. Secondly, the team doesn’t have enough the ability to cover the research completely. The
limitation of the time and knowledge are the barriers of authors. The level of English skills also causes

59
 difficult issues in searching the documents in the team. Because the thesis is written totally by English.
Thus, when we present the report, the using of language can cause the error in grammar and academic
words. Furthermore, some sentences maybe get misunderstanding. Besides that the team has not been
able to cover all the resource in terms of quantity as well as knowledge of the content completely.

5.3.2. Future Researches

From the above limitation, a number of recommendations have been proposed to improve the
quality of future research and other possible views to study e-commerce in the Vietnamese context.
First of all, it is necessary to conduct the data collection by a reasonable sampling method. The team
just uses the non-probability sampling method to choose the samplings from respondents. Although
this research has been used convenience, judgment, and the snowball sampling method to increase
the chances of reaching respondents from different populations, however, the collected samples
cannot represent each ethnic, age and gender group in Ho Chi Minh City. As a result, it is
recommended to consider the probability sampling methods by basing on the annual reports on the
number of E-commerce users of the Ministry of Industry and Trade.

Secondly, it is essential to perform related research in broader areas to achieve more

comprehensive results for study. If the authors are able to gather data from respondents from
diversified sub-group at major cities across the country. Finally, instead of narrowing the scope to
specific research, the later researchers should study more about the issues related to this topic and
compare the differences in customer engagement with the enterprise website credibility in E-
commerce websites. Due to this study only concentrate on three variables of the enterprise website
credibility and two variables of customer engagement. We may have overlooked other relevant
variables that are very important. Therefore, other variables should be included for further
investigation to analyze specifically the effect of the enterprise website credibility on the customer
engagement in e-commerce websites.

5.4. SUMMARY

In this chapter presents the implications to improve the three elements of website credibility
which are reputation, referral and website quality that leads to an increase of advocating and
repurchase. Besides that, this chapter also mentions limitations that the research team has not
implemented because of several reasons and the research team expects that other researchers will
develop this topic further in the future.

60
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APPENDIX

Appendix A: Questions for Main Interview

Xin chào! Chúng tôi là nhóm sinh viên khóa 10 của trường Đại học FPT, chuyên ngành
Marketing. Hiện nay chúng tôi đang thực hiện đề tài nghiên cứu “Phân Tích Sự Uy Tín Của
Website Doanh Nghiệp và Sự Gắn Kết Khách Hàng Trong Thương Mại Điện Tử Tại Thành Phố
Hồ Chí Minh”.

Kính mong Anh/Chị dành chút ít thời gian để trả lời cho chúng tôi một số câu hỏi dưới đây,
theo quan điểm cá nhân của Anh/Chị. Do không có quan điểm nào là đúng hay sai, tất cả quan
điểm của Anh/Chị đều đóng góp vào sự thành công của nghiên cứu này nên rất mong nhận được
sự tham gia tích cực của các anh chị. Câu trả lời của Anh/Chị sẽ được bảo mật và chỉ phục vụ cho
mục đích nghiên cứu này.

Phần 1: Câu hỏi mở đầu

1) Anh/Chị tên gì?

2) Anh/Chị bao nhiêu tuổi? Hiện tại anh/chị đang làm công việc gi?

2) Anh/Chị có thường mua hàng trên các trang thương mại điện tử? Đó là những website nào?

3) Anh/Chị thường hay mua gì trên những trang thường hay mua gì trên những website đó?

Phần 2: Câu hỏi về website credibility:

1) Anh/Chị có nghĩa rằng những website thương mại điện tử ngày nay có uy tín và đảm bảo an
toàn với khách hàng? Đối với anh/chị, anh/ chị cảm thất một website thương mại điện tử có
uy tín là khi nào?

2) Anh/chị có đánh giá một website thương mại điên tử uy tin qua chất lượng website của nó
không? Nếu có thì đánh giá thông qua những tiêu chí nào?

70
 3) Anh/Chị nghĩ rằng lí do chính khiến người tiêu dùng lựa chọn mua sắm trực tuyến tại website
đó là vì website đó có danh tiếng không? Và danh tiếng có ảnh hưởng đến uy tín của website
doanh nghiệp không?

4) Theo Anh/Chị, các nguồn giới thiệu hay review online từ những khách hàng trước đó có nhận
xét về website đó có đánh giá được sư uy tín của website đó không?

Phần 3: Câu hỏi về sự gắn kết khách hàng

1) Anh/Chị đã bao giờ nghe đến khái niệm gắn kết khách hàng chưa?

4) Anh/chị đã bao giờ gắn kết với những website thướng mại điện tử nào mà mình hay mua sắm
chưa? Hành vi nào của anh/chị thể hiện được rằng anh/chị và website đó có sự gắn kết?

5) Anh/chị hay thường xuyên quay lại website mà mình đã từng mua trước đó, có nói lên được là
anh/chị đang gắn kết với website đó không?

6) Anh/ chị có hay khuyến khích người thân và bạn bè mua hàng trên những website mà mình
quan tâm không? Và anh chị thường khuyến khích họ như thế nào? Vậy điều đó có thể hiện được
sự gắn kết giữa anh/chị với website đó hay không?

Xin chân thành cảm ơn Anh/Chị đã hỗ trợ nhóm trong buổi phỏng vấn này!

Appendix B: Questionnaire of Quantitative Research

BẢNG KHẢO SÁT PHÂN TÍCH VỀ SỰ UY TÍN CỦA WEBSITE DOANH
NGHIỆP VÀ SỰ GẮN KẾT KHÁCH HÀNG TRONG THƯƠNG MẠI ĐIỆN
TỬ TẠI THÀNH PHỐ HỒ CHÍ MINH
Xin chào! Chúng tôi là nhóm sinh viên khóa 10 của trường Đại học FPT, chuyên ngành Marketing.
Hiện nay chúng tôi đang thực hiện đề tài nghiên cứu “Phân Tích Sự Uy Tín Của Website Doanh
Nghiệp Và Sự Gắn Kết Khách Hàng Trong Thương Mại Điện Tử Ở Thành Phố Hồ Chí Minh”.

Kính mong Anh/Chị dành chút ít thời gian để trả lời cho chúng tôi một số câu hỏi dưới đây, theo
quan điểm cá nhân của Anh/Chị. Do không có quan điểm nào là đúng hay sai, tất cả quan điểm
của Anh/Chị đều đóng góp vào sự thành công của nghiên cứu này nên rất mong nhận được sự
tham gia tích cực của các anh chị. Câu trả lời của Anh/Chị sẽ được bảo mật và chỉ phục vụ cho
mục đích nghiên cứu này.

71
 1. Anh/Chị đã từng mua sắm trên website thương mại điện tử chưa?

 Có.  Chưa.

2. Anh/Chị có đang sinh sống tại Thành phố Hồ Chí Minh?

 Có  Không.

3. Tần xuất mua hàng của Anh/Chị như thế nào?

 Dưới 3 lần/ tháng

 Từ 3 – 5 lần/ tháng

 Trên 5 lần/ tháng

4. Anh/Chị đã từng mua loại mặt hàng gì thông qua các trang thương mại điện tử?

 Thiết bị điện tử  Sách

 Thời trang  Thực phẩm

 Mỹ phẩm  Khác

5. Anh/Chị đã mua tại trang thương mại điện tử nào?

 Lazada.vn  Tiki.vn

 Shopee.vn  Adayroi.com

 Sendo.vn  Khác

Nếu các Anh/Chị có từng sử dụng các trang thương mại điện tử và đang sinh sống tại Thành
phố Hồ Chí Minh, xin Anh/Chị vui lòng trả lời tiếp. Ngược lại, khảo sát xin hết tại đây và chân thành
cảm ơn anh chị.

Lưu ý: Bảng khảo sát này Anh/Chị cho ý kiến dựa trên trang web mà Anh/Chị đã chọn
ở câu 5

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 Từ câu 1 đến câu 20 dưới đây, Anh/Chị vui lòng cho biết mức độ đồng ý của Anh/Chị
về các phát biểu dưới đây:

1 - Hoàn toàn không đồng ý. 2 - Không đồng ý.

3 – Bình thường. 4 - Đồng ý.

5 - Hoàn toàn đồng ý.

CHẤT LƯỢNG WEBSITE 1 2 3 4 5

1 Những website này có tốc độ tải nhanh.

2 Những website thường xuyên cập nhật thông tin sản phẩm mới.

3 Những website có bố cục rõ ràng và chuyên nghiệp.

Những website này giúp tôi dễ dàng tìm kiếm thông tin cần
4
thiết.

5 Những website này giúp định hướng dễ dàng

NGUỒN GIỚI THIỆU 1 2 3 4 5

Tôi được giới thiệu tới những website này thông qua bạn bè và
6
người thân.

Tôi mua hàng trên những website này dựa trên các nguồn giới
7
thiệu từ cộng đồng mạng.

Những đề xuất từ bạn bè, gia đình là rất quan trọng với tôi trước
8
khi quyết định mua hàng ở những website này.

Các đánh giá của khách hàng trên những website này quan
9
trọng với tôi.

DANH TIẾNG 1 2 3 4 5

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 10 Tôi nghĩ những website này trung thực và có uy tín

Tôi nghĩa những website này nổi tiếng trong cộng đồng trực
11
tuyến.

Theo ý kiến của tôi, những website này được khách hàng đánh
12
giá cao.

13 Những website này thực hiện đúng các cam kết với khách hàng.

SỰ MUA LẠI 1 2 3 4 5

14 Tôi dự định sẽ tiếp tục giao dịch với những website này.

Tôi sẽ tiếp tục mua lại những sản phẩm mà tôi đã dùng trước
15
đây từ những website này,

Tôi vẫn sẽ chọn những website này để mua hàng vào những lần
16
sau.

SỰ ỦNG HỘ 1 2 3 4 5

Tôi đề xuất những website này đến những người trong cộng
17
động trực tuyến.

Tôi chia sẻ kinh nghiệm và thông tin mà tôi biết về những
18
website này đến người khác.

Tôi nói những điều tích cực về những website này với những
19
người khác

Xin Anh/Chị vui lòng cho biết một số thông tin cá nhân:

6. Xin vui lòng cho biết giới tính:

 Nam.  Nữ.

7. Xin vui lòng cho biết nghề nghiệp của Anh/ Chị:

74
  Sinh viên/ học sinh  Nội trợ

 Nhân viên văn phòng  Doanh nhân

 Giáo viên/ Giảng viên  Khác

8. Anh/Chị xin vui lòng cho biết nhóm tuổi của bản thân:

 18 – 25 tuổi.  36 – 45 tuổi.

 26 – 35 tuổi.  Trên 45 tuổi.

9. Xin vui lòng cho biết mức thu nhập hằng tháng của Anh/Chị:

 Dưới 5 triệu đồng.  Từ 10 đến dưới 15 triệu đồng.

 Từ 5 đến dưới 10 triệu đồng.  Trên 15 triệu đồng.

Xin chân thành cảm ơn Anh/Chị đã thực hiện bảng câu hỏi!

Appendix C: SPSS Results

PILOT-TEST

Reliability Testing

Website Credibility (WE)

Reliability Statistics

Cronbach's Alpha N of Items

.905 5

Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha

Deleted Item Deleted Total Correlation if Item Deleted

WQ1 15.16 14.464 .755 .885

WQ2 15.18 14.028 .799 .876
WQ3 14.92 15.014 .717 .893
WQ4 14.90 14.255 .747 .887

75
 WQ5 15.12 14.271 .790 .878

Referral (RF)

Reliability Statistics

Cronbach's Alpha N of Items

.843 4

Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha

Deleted Item Deleted Total Correlation if Item Deleted

RF1 9.90 8.296 .725 .779

RF2 9.30 8.786 .741 .775
RF3 9.40 9.265 .665 .807
RF4 10.04 8.896 .592 .841

Reputation (REP)

Reliability Statistics

Cronbach's Alpha N of Items

.841 4

Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha

Deleted Item Deleted Total Correlation if Item Deleted

REP1 9.14 5.878 .701 .789

REP2 9.06 5.200 .744 .767
REP3 9.08 5.585 .670 .801
REP4 9.02 6.183 .592 .833

Repurchase (RP)

Reliability Statistics

Cronbach's Alpha N of Items

.817 3

76
 Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha

Deleted Item Deleted Total Correlation if Item Deleted

RP1 6.22 1.644 .744 .677

RP2 6.54 2.376 .599 .816
RP3 6.40 2.163 .694 .728

Advocating (AD)

Reliability Statistics

Cronbach's Alpha N of Items

.764 3

Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha

Deleted Item Deleted Total Correlation if Item Deleted

AD1 6.22 3.155 .596 .684

AD2 6.32 2.793 .594 .694
AD3 6.26 3.298 .609 .675

OFFICIAL RESEARCH

Discriptive statistic:
Gender

Frequency Percent Valid Percent Cumulative

Percent

Male. 182 47.5 47.5 47.5

Valid Female. 201 52.5 52.5 100.0

Total 383 100.0 100.0

Age

Cumulative
Frequency Percent Valid Percent Percent

Valid 18 - 25 age. 203 53.0 53.0 53.0

26 - 35 age. 148 38.6 38.6 91.6

36 - 45 age. 27 7.0 7.0 98.7

Over 45 age. 5 1.3 1.3 100.0

77
 Total 383 100.0 100.0

Carrer

Frequency Percent Valid Percent Cumulative

Percent

Student 165 43.1 43.1 43.1

Officer 88 23.0 23.0 66.1

Housewife 33 8.6 8.6 74.7

Valid Business 48 12.5 12.5 87.2

Teacher 12 3.1 3.1 90.3

Other 37 9.7 9.7 100.0

Total 383 100.0 100.0

Income

Cumulative
Frequency Percent Valid Percent Percent

Valid Under 5 million VND 102 26.6 26.6 26.6

From 5 to less than 10 million 169 44.1 44.1 70.8

VND.

From 10 to less than 15 million 69 18.0 18.0 88.8

VND.

More than 15 million VND. 43 11.2 11.2 100.0

Total 383 100.0 100.0

How_often

Cumulative
Frequency Percent Valid Percent Percent

Valid Less than 3 times/ month 157 41.0 41.0 41.0

From 3 - 5 times/ month 187 48.8 48.8 89.8

More than 5 times/ month 39 10.2 10.2 100.0

Total 383 100.0 100.0

Reliability Testing

Website Quality (WE)

Reliability Statistics

Cronbach's Alpha N of Items

.718 5

Item-Total Statistics

78
 Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha
Deleted Item Deleted Total Correlation if Item Deleted

WQ1 15.74 8.235 .128 .889

WQ2 14.91 7.576 .688 .600
WQ3 14.97 7.795 .642 .618
WQ4 14.96 7.658 .666 .608
WQ5 14.90 7.820 .624 .623

Reliability Statistics

Cronbach's Alpha N of Items

.889 4

Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha

Deleted Item Deleted Total Correlation if Item Deleted

WQ2 11.78 4.800 .755 .858

WQ3 11.84 4.808 .765 .854
WQ4 11.83 4.785 .759 .856
WQ5 11.77 4.821 .747 .861

Referral (RF)

Reliability Statistics

Cronbach's Alpha N of Items

.883 4

Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha

Deleted Item Deleted Total Correlation if Item Deleted

RF1 10.68 6.000 .685 .874

RF2 10.65 5.704 .770 .841
RF3 10.60 5.764 .776 .839
RF4 10.42 6.113 .760 .847

Reputation (REP)

Reliability Statistics

Cronbach's Alpha N of Items

.897 4

79
 Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha

Deleted Item Deleted Total Correlation if Item Deleted

REP1 11.24 4.738 .782 .863

REP2 11.24 4.656 .788 .861
REP3 11.37 4.914 .691 .897
REP4 11.33 4.551 .827 .847

Repurchase (RP)

Reliability Statistics

Cronbach's Alpha N of Items

.832 3

Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha

Deleted Item Deleted Total Correlation if Item Deleted

RP1 5.57 2.680 .640 .816

RP2 5.45 2.279 .754 .701
RP3 5.57 2.434 .683 .775

Advocating (AD)

Reliability Statistics

Cronbach's Alpha N of Items

.873 3

Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha

Deleted Item Deleted Total Correlation if Item Deleted

AD1 7.78 1.724 .713 .858

AD2 7.92 1.558 .775 .803
AD3 7.81 1.609 .780 .798

Exploratory Factor Analysis

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .900

Bartlett's Test of Sphericity Approx. Chi-Square 4217.719

80
 df 153

Sig. .000

Communalities

Initial Extraction

WQ2 .592 .677

WQ3 .629 .691
WQ4 .604 .672
WQ5 .575 .653
RF1 .523 .549
RF2 .633 .716
RF3 .637 .718
RF4 .605 .685
REP1 .647 .710
REP2 .670 .725
REP3 .519 .551
REP4 .696 .801
RP1 .457 .505
RP2 .620 .810
RP3 .517 .596
AD1 .568 .614
AD2 .634 .735
AD3 .630 .775

Extraction Method: Principal Axis

Factoring.

Total Variance Explained

Rotation Sums
of Squared
Initial Eigenvalues Extraction Sums of Squared Loadings Loadingsa

Factor Total % of Variance Cumulative % Total % of Variance Cumulative % Total

1 7.284 40.466 40.466 6.968 38.712 38.712 4.995

2 2.238 12.432 52.898 1.925 10.693 49.406 4.393
3 1.607 8.927 61.825 1.277 7.092 56.498 4.926
4 1.443 8.018 69.843 1.112 6.178 62.675 4.461
5 1.182 6.564 76.407 .901 5.007 67.682 3.669
6 .532 2.958 79.365
7 .428 2.380 81.745
8 .399 2.215 83.960
9 .387 2.150 86.110
10 .363 2.018 88.127
11 .346 1.920 90.047
12 .328 1.820 91.867

81
 13 .279 1.551 93.418
14 .275 1.530 94.948
15 .255 1.415 96.363
16 .229 1.272 97.635
17 .220 1.223 98.858
18 .206 1.142 100.000

Pattern Matrixa

Factor

1 2 3 4 5

REP4 .920
REP1 .849
REP2 .817
REP3 .695
RF2 .858
RF4 .848
RF3 .846
RF1 .662
WQ2 .838
WQ5 .837
WQ4 .793
WQ3 .774
AD3 .920
AD2 .853
AD1 .672
RP2 .904
RP3 .757
RP1 .709

Frequency Statistic of Scale

Website Quality

Statistics

WQ2 WQ3 WQ4 WQ5

Valid 383 383 383 383

N
Missing 0 0 0 0
Mean 3.96 3.90 3.91 3.97

WQ2

82
 Frequency Percent Valid Percent Cumulative
Percent

1 7 1.8 1.8 1.8

2 17 4.4 4.4 6.3

3 47 12.3 12.3 18.5

Valid
4 226 59.0 59.0 77.5

5 86 22.5 22.5 100.0

Total 383 100.0 100.0

WQ3

Frequency Percent Valid Percent Cumulative

Percent

1 9 2.3 2.3 2.3

2 13 3.4 3.4 5.7

3 56 14.6 14.6 20.4

Valid
4 233 60.8 60.8 81.2

5 72 18.8 18.8 100.0

Total 383 100.0 100.0

WQ4

Frequency Percent Valid Percent Cumulative

Percent

1 9 2.3 2.3 2.3

2 11 2.9 2.9 5.2

3 64 16.7 16.7 21.9

Valid
4 221 57.7 57.7 79.6

5 78 20.4 20.4 100.0

Total 383 100.0 100.0

WQ5

Frequency Percent Valid Percent Cumulative

Percent

1 9 2.3 2.3 2.3

2 8 2.1 2.1 4.4

3 60 15.7 15.7 20.1

Valid
4 215 56.1 56.1 76.2

5 91 23.8 23.8 100.0

Total 383 100.0 100.0

83
 Referral

Statistics

RF1 RF2 RF3 RF4

Valid 383 383 383 383

N
Missing 0 0 0 0
Mean 3.44 3.46 3.51 3.70

RF1

Frequency Percent Valid Percent Cumulative

Percent

1 11 2.9 2.9 2.9

2 52 13.6 13.6 16.4

3 117 30.5 30.5 47.0

Valid
4 163 42.6 42.6 89.6

5 40 10.4 10.4 100.0

Total 383 100.0 100.0

RF2

Frequency Percent Valid Percent Cumulative

Percent

1 11 2.9 2.9 2.9

2 51 13.3 13.3 16.2

3 110 28.7 28.7 44.9

Valid
4 171 44.6 44.6 89.6

5 40 10.4 10.4 100.0

Total 383 100.0 100.0

RF3

Frequency Percent Valid Percent Cumulative

Percent

1 13 3.4 3.4 3.4

2 39 10.2 10.2 13.6

3 108 28.2 28.2 41.8

Valid
4 184 48.0 48.0 89.8

5 39 10.2 10.2 100.0

Total 383 100.0 100.0

RF4

84
 Frequency Percent Valid Percent Cumulative
Percent

1 10 2.6 2.6 2.6

2 28 7.3 7.3 9.9

3 73 19.1 19.1 29.0

Valid
4 229 59.8 59.8 88.8

5 43 11.2 11.2 100.0

Total 383 100.0 100.0

Reputation

Statistics

REP1 REP2 REP3 REP4

Valid 383 383 383 383

N
Missing 0 0 0 0
Mean 3.82 3.82 3.69 3.73

REP1

Frequency Percent Valid Percent Cumulative

Percent

1 8 2.1 2.1 2.1

2 16 4.2 4.2 6.3

3 67 17.5 17.5 23.8

Valid
4 238 62.1 62.1 85.9

5 54 14.1 14.1 100.0

Total 383 100.0 100.0

REP2

Frequency Percent Valid Percent Cumulative

Percent

1 7 1.8 1.8 1.8

2 16 4.2 4.2 6.0

3 79 20.6 20.6 26.6

Valid
4 219 57.2 57.2 83.8

5 62 16.2 16.2 100.0

Total 383 100.0 100.0

REP3

Frequency Percent Valid Percent Cumulative

Percent

85
 1 8 2.1 2.1 2.1

2 23 6.0 6.0 8.1

3 89 23.2 23.2 31.3

Valid
4 222 58.0 58.0 89.3

5 41 10.7 10.7 100.0

Total 383 100.0 100.0

REP4

Frequency Percent Valid Percent Cumulative

Percent

1 8 2.1 2.1 2.1

2 22 5.7 5.7 7.8

3 79 20.6 20.6 28.5

Valid
4 230 60.1 60.1 88.5

5 44 11.5 11.5 100.0

Total 383 100.0 100.0

Appendix D: AMOS Result

Confirmatory factor analysis (CFA)

Regression Weights: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

RF2 <--- RF 1.000
RF4 <--- RF .894 .048 18.525 ***
RF3 <--- RF .984 .052 19.005 ***
RF1 <--- RF .888 .055 16.077 ***
WQ2 <--- WQ 1.000
WQ3 <--- WQ 1.026 .057 18.161 ***
WQ5 <--- WQ .982 .058 16.940 ***
WQ4 <--- WQ 1.019 .057 17.728 ***
REP4 <--- REP 1.000
REP1 <--- REP .931 .043 21.564 ***
REP2 <--- REP .960 .044 21.904 ***
REP3 <--- REP .835 .048 17.242 ***
AD3 <--- AD 1.000
AD2 <--- AD 1.043 .054 19.373 ***
AD1 <--- AD .906 .052 17.574 ***
RP2 <--- RP 1.000

86
 Estimate S.E. C.R. P Label
RP3 <--- RP .857 .055 15.551 ***
RP1 <--- RP .736 .052 14.288 ***
Standardized Regression Weights: (Group number 1 - Default model)

Estimate
RF2 <--- RF .838
RF4 <--- RF .825
RF3 <--- RF .841
RF1 <--- RF .742
WQ2 <--- WQ .809
WQ3 <--- WQ .840
WQ5 <--- WQ .794
WQ4 <--- WQ .823
REP4 <--- REP .887
REP1 <--- REP .844
REP2 <--- REP .852
REP3 <--- REP .737
AD3 <--- AD .855
AD2 <--- AD .862
AD1 <--- AD .790
RP2 <--- RP .894
RP3 <--- RP .771
RP1 <--- RP .707
Covariances: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

RF <--> WQ .248 .035 7.051 ***
RF <--> REP .207 .035 5.875 ***
RF <--> AD .198 .030 6.578 ***
RF <--> RP .307 .042 7.348 ***
WQ <--> REP .276 .033 8.321 ***
WQ <--> AD .197 .027 7.405 ***
WQ <--> RP .218 .034 6.344 ***
REP <--> AD .256 .029 8.737 ***
REP <--> RP .206 .036 5.782 ***
AD <--> RP .181 .030 6.061 ***
Correlations: (Group number 1 - Default model)

Estimate
RF <--> WQ .466
RF <--> REP .361
RF <--> AD .423
RF <--> RP .485
WQ <--> REP .569
WQ <--> AD .498
WQ <--> RP .407

87
 Estimate
REP <--> AD .600
REP <--> RP .356
AD <--> RP .384
Variances: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

RF .629 .065 9.713 ***
WQ .450 .049 9.230 ***
REP .524 .049 10.759 ***
AD .347 .035 9.911 ***
RP .637 .063 10.046 ***
e1 .267 .027 9.858 ***
e2 .236 .023 10.249 ***
e3 .252 .026 9.743 ***
e5 .404 .034 11.792 ***
e6 .238 .022 10.734 ***
e7 .198 .020 9.908 ***
e8 .254 .023 11.044 ***
e9 .222 .021 10.381 ***
e10 .142 .016 8.836 ***
e11 .184 .018 10.469 ***
e12 .183 .018 10.231 ***
e13 .307 .025 12.255 ***
e14 .127 .015 8.632 ***
e15 .131 .016 8.357 ***
e16 .172 .016 10.759 ***
e17 .160 .031 5.167 ***
e18 .319 .032 10.023 ***
e19 .345 .030 11.441 ***
CMIN

Model NPAR CMIN DF P CMIN/DF

Default model 46 172.055 125 .003 1.376
Saturated model 171 .000 0
Independence model 18 4294.541 153 .000 28.069
RMR, GFI

Model RMR GFI AGFI PGFI

Default model .024 .952 .934 .696
Saturated model .000 1.000
Independence model .258 .274 .189 .245
Baseline Comparisons

NFI RFI IFI TLI

Model CFI
Delta1 rho1 Delta2 rho2
Default model .960 .951 .989 .986 .989

88
 NFI RFI IFI TLI
Model CFI
Delta1 rho1 Delta2 rho2
Saturated model 1.000 1.000 1.000
Independence model .000 .000 .000 .000 .000
RMSEA

Model RMSEA LO 90 HI 90 PCLOSE

Default model .031 .019 .042 .998
Independence model .266 .259 .273 .000

CFA of Independent Variables

Regression Weights: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

REP4 <--- Reputation 1.000
REP1 <--- Reputation .929 .043 21.542 ***
REP2 <--- Reputation .956 .044 21.839 ***
REP3 <--- Reputation .828 .048 17.095 ***
RF2 <--- Referral 1.000
RF3 <--- Referral .993 .053 18.876 ***
RF4 <--- Referral .901 .049 18.396 ***
RF1 <--- Referral .890 .056 15.881 ***
WQ2 <--- websitequality 1.000
WQ5 <--- websitequality .988 .058 16.934 ***
WQ4 <--- websitequality 1.023 .058 17.664 ***
WQ3 <--- websitequality 1.027 .057 18.027 ***
Standardized Regression Weights: (Group number 1 - Default model)

Estimate
REP4 <--- Reputation .890
REP1 <--- Reputation .844
REP2 <--- Reputation .851
REP3 <--- Reputation .733
RF2 <--- Referral .833
RF3 <--- Referral .845
RF4 <--- Referral .827
RF1 <--- Referral .740
WQ2 <--- websitequality .807
WQ5 <--- websitequality .797
WQ4 <--- websitequality .824
WQ3 <--- websitequality .838

Covariances: (Group number 1 - Default model)

89
 Estimate S.E. C.R. P Label
Reputation <--> Referral .207 .035 5.874 ***
Reputation <--> WebsiteQuality .276 .033 8.314 ***
Referral <--> WebsiteQuality .246 .035 7.040 ***
Correlations: (Group number 1 - Default model)

Estimate
Reputation <--> Referral .361
Reputation <--> WebsiteQuality .569
Referral <--> WebsiteQuality .466
CMIN

Model NPAR CMIN DF P CMIN/DF

Default model 27 74.622 51 .017 1.463
Saturated model 78 .000 0
Independence model 12 2883.404 66 .000 43.688

RMR, GFI

Model RMR GFI AGFI PGFI

Default model .024 .968 .951 .633
Saturated model .000 1.000
Independence model .298 .314 .189 .266
Baseline Comparisons

NFI RFI IFI TLI

Model CFI
Delta1 rho1 Delta2 rho2
Default model .974 .967 .992 .989 .992
Saturated model 1.000 1.000 1.000
Independence model .000 .000 .000 .000 .000
RMSEA

Model RMSEA LO 90 HI 90 PCLOSE

Default model .035 .015 .051 .937
Independence model .334 .324 .345 .000

CFA of Dependent Variables

Regression Weights: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

AD3 <--- Advocating 1.000
AD2 <--- Advocating 1.036 .055 18.773 ***
AD1 <--- Advocating .880 .052 17.003 ***

90
 Estimate S.E. C.R. P Label
RP2 <--- Repurchase 1.000
RP3 <--- Repurchase .849 .057 14.796 ***
RP1 <--- Repurchase .734 .053 13.842 ***
Standardized Regression Weights: (Group number 1 - Default model)

Estimate
AD3 <--- Advocating .864
AD2 <--- Advocating .865
AD1 <--- Advocating .775
RP2 <--- Repurchase .897
RP3 <--- Repurchase .767
RP1 <--- Repurchase .708
Covariances: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

Advocating <--> Repurchase .182 .030 6.030 ***
Correlations: (Group number 1 - Default model)

Estimate
Advocating <--> Repurchase .381
CMIN

Model NPAR CMIN DF P CMIN/DF

Default model 13 7.124 8 .523 .890
Saturated model 21 .000 0
Independence model 6 1096.425 15 .000 73.095
RMR, GFI

Model RMR GFI AGFI PGFI

Default model .012 .994 .984 .379
Saturated model .000 1.000
Independence model .243 .481 .273 .344
RMSEA

Model RMSEA LO 90 HI 90 PCLOSE

Default model .000 .000 .056 .919
Independence model .434 .413 .456 .000
Baseline Comparisons

NFI RFI IFI TLI

Model CFI
Delta1 rho1 Delta2 rho2
Default model .994 .988 1.001 1.002 1.000
Saturated model 1.000 1.000 1.000
Independence model .000 .000 .000 .000 .000

91
 Structural Equation Modeling (SEM)

Regression Weights: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

RP <--- RF .364 .062 5.893 ***
RP <--- WQ .193 .084 2.316 .021
RP <--- REP .151 .071 2.111 .035
AD <--- RF .144 .041 3.516 ***
AD <--- WQ .139 .057 2.454 .014
AD <--- REP .360 .050 7.167 ***
RF2 <--- RF 1.000
RF4 <--- RF .893 .048 18.519 ***
RF3 <--- RF .984 .052 19.002 ***
RF1 <--- RF .888 .055 16.086 ***
WQ2 <--- WQ 1.000
WQ3 <--- WQ 1.026 .056 18.168 ***
WQ5 <--- WQ .982 .058 16.938 ***
WQ4 <--- WQ 1.018 .057 17.730 ***
REP4 <--- REP 1.000
REP1 <--- REP .931 .043 21.547 ***
REP2 <--- REP .960 .044 21.894 ***
REP3 <--- REP .835 .048 17.258 ***
AD3 <--- AD 1.000
AD2 <--- AD 1.041 .054 19.381 ***
AD1 <--- AD .903 .051 17.560 ***
RP2 <--- RP 1.000
RP3 <--- RP .857 .055 15.519 ***
RP1 <--- RP .737 .052 14.273 ***
Standardized Regression Weights: (Group number 1 - Default model)

Estimate
RP <--- RF .362
RP <--- WQ .163
RP <--- REP .137
AD <--- RF .194
AD <--- WQ .158
AD <--- REP .441
RF2 <--- RF .838
RF4 <--- RF .824
RF3 <--- RF .841
RF1 <--- RF .743
WQ2 <--- WQ .809
WQ3 <--- WQ .840
WQ5 <--- WQ .794
WQ4 <--- WQ .823
REP4 <--- REP .887

92
 Estimate
REP1 <--- REP .844
REP2 <--- REP .852
REP3 <--- REP .737
AD3 <--- AD .857
AD2 <--- AD .861
AD1 <--- AD .789
RP2 <--- RP .894
RP3 <--- RP .771
RP1 <--- RP .707

Bootstrap

Standardized Regression Weights: (Group number 1 - Default model)

Estimate
Repurchase <--- Reputation .137
Repurchase <--- Referral .362
Repurchase <--- WebsiteQuality .163
Advocating <--- Reputation .441
Advocating <--- Referral .194
Advocating <--- WebsiteQuality .158
REP4 <--- Reputation .887
REP1 <--- Reputation .844
REP2 <--- Reputation .852
REP3 <--- Reputation .737
RF2 <--- Referral .838
RF4 <--- Referral .824
RF3 <--- Referral .841
RF1 <--- Referral .743
WQ2 <--- WebsiteQuality .809
WQ5 <--- WebsiteQuality .794
WQ4 <--- WebsiteQuality .823
WQ3 <--- WebsiteQuality .840
AD3 <--- Advocating .857
AD2 <--- Advocating .861
AD1 <--- Advocating .789
RP2 <--- Repurchase .894
RP3 <--- Repurchase .771
RP1 <--- Repurchase .707

Standardized Regression Weights: (Group number 1 - Default model)

Parameter SE SE-SE Mean Bias SE-Bias

Repurchase <--- Reputation .073 .002 .129 -.008 .002

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 Parameter SE SE-SE Mean Bias SE-Bias
Repurchase <--- Referral .062 .001 .367 .005 .002
Repurchase <--- WebsiteQuality .077 .002 .163 .001 .002
Advocating <--- Reputation .072 .002 .439 -.003 .002
Advocating <--- Referral .075 .002 .199 .005 .002
Advocating <--- WebsiteQuality .089 .002 .159 .001 .003
REP4 <--- Reputation .043 .001 .888 .001 .001
REP1 <--- Reputation .047 .001 .846 .003 .001
REP2 <--- Reputation .048 .001 .849 -.003 .002
REP3 <--- Reputation .047 .001 .737 .000 .001
RF2 <--- Referral .039 .001 .839 .001 .001
RF4 <--- Referral .046 .001 .825 .001 .001
RF3 <--- Referral .033 .001 .838 -.003 .001
RF1 <--- Referral .044 .001 .740 -.002 .001
WQ2 <--- WebsiteQuality .052 .001 .809 .000 .002
WQ5 <--- WebsiteQuality .054 .001 .793 -.001 .002
WQ4 <--- WebsiteQuality .055 .001 .823 .001 .002
WQ3 <--- WebsiteQuality .050 .001 .841 .002 .002
AD3 <--- Advocating .032 .001 .858 .001 .001
AD2 <--- Advocating .028 .001 .860 -.001 .001
AD1 <--- Advocating .039 .001 .787 -.001 .001
RP2 <--- Repurchase .028 .001 .894 .000 .001
RP3 <--- Repurchase .037 .001 .772 .001 .001
RP1 <--- Repurchase .046 .001 .706 -.001 .001

94