THE RELATIONSHIP BETWEEN PERCEIVED VALUE, PERCEIVED SERVICE QUALITY, CUSTOMER SATISFACTION AND BEHAVIORAL INTENTION ON LAZADA APPLICATION USERS IN BANGKOK By SUNNY DURVE An Independent Research Project Submitted in Partial Fulfillment of the Requirements For the Degree of Master of Business Administration (Management Emphasis), Faculty of Business Administration Asia-Pacific International University May 2023
i DECLARATION I declare that this submission is my own work. It contains neither material previously published or written by another person, nor any material previously submitted for an award of any other degree or diploma at Asia-Pacific International University, except where due acknowledgment has been made in the Independent Study. Also, I declare that the intellectual content of this independent study is the result of my own work, except where attributed and acknowledged in this research. …………………………… Sunny Durve 30 November 2022
ii Research Project Title: The Relationship between Perceived Value, Perceived Service Quality, Customer Satisfaction and Behavioral Intention on Lazada Application Users in Bangkok Author: Sunny Durve Research Advisor: Dr. Damrong Satayawaksakoon Research Advisor: Master of Business Administration Academic Year: 2023
iii ACKNOWLEDGMENTS I would like to express my thanks to all those who have been instrumental in ensuring that my independent study research was of the highest quality. First and foremost, I would like to thank my Lord God Almighty, whose Providence has brought me to this level of my academic career. I would like to express my deep and profound appreciation to my primary supervisor and advisor, Assistant Professor Dr. Damrong Satayavaksakoon Vice President for Financial Administration and Principal Lecturer at Asia-Pacific International University. His guidance and support during my Master’s program have been superb. I express my thanks for mentoring and encouraging me from my very first semester as a master’s student and guiding my development as an educator and a scholar. Particularly, I owe a great deal for Dr. Damrong’s input and guidance during the process of completing my independent study, and I have been enriched through my association with him. Words cannot express my gratitude towards Asia-Pacific International University’s MBA instructors: Assistant Professor Dr. Wayne Hamra, Dr. Henry Foster, and Dr. Noah Balraj. Their guidance and support during my master’s program have been outstanding. Thank you for being so supportive of my dreams and aspirations. They have been consistently tough yet fair, challenging and encouraging me throughout my program of study. I would like to take this opportunity to thank them for their patience and being outstanding mentors for the last 4 years. My sincere thanks also go to my family for always being there. I thank my parents for their never-ending love, support, and encouragement. I dedicate this Master’s degree to both my parents; without them I would not be the person that I am today. I also want to thank my brother
iv and sisters who have been there for me throughout the years. Without their patience, support, strength, and love, I would not have been able to successfully get through this program. Sunny Durve
v Table of Contents Contents List of Tables ............................................................................................................................... viii CHAPTER 1 ................................................................................................................................... 1 INTRODUCTION....................................................................................................................... 1 1.1 Discovering a Product ...................................................................................................... 4 1.2 Research Objective ................................................................................................................... 8 1.3 Research Questions............................................................................................................... 8 1.4 Benefits of the Research........................................................................................................ 9 1.5 Definitions of Key Concepts................................................................................................. 9 1.5.1 Perceived Value............................................................................................................ 10 1.5.2 Service Quality ............................................................................................................. 10 1.5.3 Customer Satisfaction................................................................................................... 11 1.5.4 Behavioral Intention ..................................................................................................... 11 1.5.5 Lazada........................................................................................................................... 11 CHAPTER 2 LITERATURE REVIEW ....................................................................................... 13 2.1 Perceived Value............................................................................................................... 13 2.2 Service Quality ................................................................................................................ 14 2.3 Customer Satisfaction...................................................................................................... 15 2.4 Behavioral Intention ........................................................................................................ 16 2.5 Lazada.............................................................................................................................. 17 2.6 Hypotheses Based on the Literature Review................................................................. 18 2.7 Conceptual Framework.................................................................................................... 19 2.8 Summary.......................................................................................................................... 19 CHAPTER 3 RESEARCH METHODOLOGY ........................................................................... 20 3.1 Introduction ..................................................................................................................... 20
vi 3.2 Methodology.................................................................................................................... 20 3.3 Population and Sample Size ............................................................................................ 21 3.4 Sample Technique ........................................................................................................... 22 3.5 Data Collection ................................................................................................................ 22 3.6 Data Analysis................................................................................................................... 23 3.7 Research Instrument ........................................................................................................ 24 3.8 Ethical Considerations..................................................................................................... 26 3.9 Summary.......................................................................................................................... 26 CHAPTER 4 ................................................................................................................................. 27 RESULTS ..................................................................................................................................... 27 4.1 Introduction ......................................................................................................................... 27 4.2 Descriptive Analysis............................................................................................................ 27 4.2.1 Demographic Information ............................................................................................ 27 4.4 Summary of the Hypothesis Testing ................................................................................... 32 4.5 Summary ............................................................................................................................. 33 CHAPTER 5 ................................................................................................................................. 35 DISCUSSION............................................................................................................................... 35 5.1 Introduction ......................................................................................................................... 35 5.2 Perceived Value of buying products on Lazada has a positive effect on Customer Satisfaction toward buying a product online. (Hypothesis 1)................................................... 35 5.3 Service Quality of Lazada has a positive effect on Behavioral Intention toward buying products online. (Hypothesis 2) ................................................................................................ 37 5.4 Perceived Value of buying products on Lazada has a positive effect on Behavioral Intention toward buying products online. (Hypothesis 3)......................................................... 38
vii 5.5 Service Quality of Lazada has a positive effect on Customer Satisfaction toward buying products online. (Hypothesis 4) ................................................................................................ 39 5.6 Customer Satisfaction toward Lazada has a positive effect on Behavioral Intention toward buying products online. (Hypothesis 5) .................................................................................... 40 CHAPTER 6 ................................................................................................................................. 42 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS............................................. 42 6.1 Introduction ..................................................................................................................... 42 6.2 Summary and Conclusion of the Study ........................................................................... 42 6.3 Theoretical and Managerial Implications........................................................................ 42 6.4 Recommendations for Future Research........................................................................... 44 REFERENCES ............................................................................................................................. 46 Appendix A ............................................................................................................................... 49 Questionnaire ............................................................................................................................ 49 A Survey questionnaire ............................................................................................................. 49 Appendix B................................................................................................................................... 53 Appendix C................................................................................................................................... 55 Appendix D................................................................................................................................... 55 Appendix E ................................................................................................................................... 55
viii List of Tables Table 1. Demographic Information (N = 456).............................................................................. 28 Table 2. Mean and Standard Deviation of Distinctive Competencies (N = 456)......................... 29 Table 3. Mean and Standard Deviation of Distinctive Competencies (Cont.)…………………...29 Table 4. Regression Result of Perceived Value and Service Quality as Predictors of Customer Satisfaction.................................................................................................................................... 31 Table 5. Regression Results of Perceived Value, Service Quality, and Customer Satisfaction as Predictors of Behavioral Intentions .............................................................................................. 32 Table 6. Summary of Hypothesis Testing..................................................................................... 33
1 CHAPTER 1 INTRODUCTION Customer dissatisfaction occurs when your product or service does not live up to your customer's expectations or has several flaws. When a consumer engages with your brand, he or she has one or more expectations for the interaction. These may include satisfying a need or resolving an issue (Hudson, 2021). Given that only a small percentage of unsatisfied customers return to the same service or product (Gupta, 2021), researchers should seriously consider the role of emotions in the satisfaction-behavioral intention relationship before concluding whether or not satisfaction has a significant effect on behavioral intentions (White & Yu, 2005). Solving client problems and complaints is a critical function for many firms and industries, since it enables them to assist customers in overcoming obstacles and resolving inquiries or concerns. If I am hoping to assist customers with their concerns and boost their happiness or customer satisfaction, it's critical to grasp the advantages of consumer assistance and how to resolve a variety of client issues. Resolving customer complaints demonstrates a company's concern and contributes to overall customer satisfaction. Satisfied consumers are often more inclined to suggest a business to their friends and family, resulting in an increase in sales and income for the firm (Roger, 2020). That being said, the perceived value serves as the foundation for a customer's engagement with a certain business. If a firm's goods or services do not fulfill the customer's perceived value, all of its strategies are futile. There is a need to discover industry perceptions of consumer perceived value, particularly in the online shopping platform Lazada. Specifically, to what extent
2 is the firm aware of and does it anticipate its customers' perceived values? (Friend & Masoumeh, 2014). The Internet has had a significant impact on people's attitudes, satisfaction, and behavioral intention all over the planet. As a consequence of this privilege, Internet shopping has developed, changing ordinary people's lives. Online businesses like Lazada's fundamental objective are to provide products and services that best meet the needs of its customers. A business that consistently meets consumer wants will probably be more successful than its competitors, as satisfied customers are more likely to make repeat purchases. Additionally, online shopping in Thailand has grown rapidly in recent years and has the potential to expand massively in the future, as Internet connectivity spreads widely beyond urban areas. However, it is also true that Thai people are generally conservative in their shopping habits, and as modernity and fast-paced life continue, reliance on Internet shopping will grow (Chan, 2016). Thus, the goal of this study is to better understand consumer behavioral intention regarding online buying, including their preferences, dislikes, and level of satisfaction With the current highly competitive environment, it is difficult to look for new customers. There could be several reasons involved, for example, 1. Prices are too high, 2. Customer service is not satisfactory, 3. Marketing reach is poor, 4. Aiming at the wrong market (Smith, 2019). At the same time, business firms must avoid losing their current customers. Attracting new customers is very important for the business firm to expand its market and generate revenue. At the same time, it is more expensive to recruit new customers than it is to retain current customers. Customer retention is a critical topic for almost every business firm, and it is thought to be linked to increased revenue and lower costs. Retaining customers is a difficult task for business firms because customers are free to switch to other options. Thus, the business firm must do both: recruit new
3 customers and retain current customers. In doing this, business firms must understand customers' attitudes toward a specific purchasing behavior as well as the consumer's willingness to pay. Several studies have investigated factors that contribute to increasing customers' behavioral intentions, and these researchers found a relationship between customer satisfaction and behavioral intention (Lu & Yuwen Shiu, 2009; Olorunniwo et al., 2006). However, most of their findings are generalized to retailing and service businesses. Research in customers' behavioral intentions should be extended to online trading businesses. Online shopping and trading have become significant pieces of the lives of numerous individuals (Hops, 2014). Online retailers offer consumers the option of purchasing from the tranquility of their houses without the anxiety of meeting a salesperson. For all intents and purposes, online commercial centers provide a new and more beneficial environment for trading a broad variety of services and goods. Customers and companies alike have acknowledged virtual sales as a more cost-effective and easy method to shop (Morah, 2021). Still, much like anything else connected to the Internet, there are advantages and disadvantages to purchasing online. Continue reading to discover how to be safe while using this useful tool (Morah, 2021). The Internet and brand-new innovations are growing hugely and have changed buyers’ regular daily existence (Statista 101, 2017). Shopping online is a wonder for clients. The way that the Internet and innovation re-imagined the method involved in obtaining labor and products has added to the prominence of Internet purchasing. In 2022, global e-commerce sales totaled $5.545 trillion dollars, but forecasts predicted that this figure would rise to 9% growth by 2025 (Gaubys, 2022). How do these online-based businesses work? Shopping on the Internet is the same as going to the store. You may often find the same items online that are available in a physical store, and you can occasionally find better deals.
4 Lazada Thailand is one of the organizations that utilize the online business model in ecommerce retail by selling a wide scope of goods and items for kids and grown-ups. The firm is essential for the Lazada Group, which has developed all through Southeast Asia and was established in Thailand in March 2012. As per an IlmuOneData overview, Lazada Thailand was rated first in web shopper merchandise with 21.35% of the market. It was also the top customer products online business, with a 60% increase in visits from January to June 2021 or the equivalent of 39.3 million visits every month. As per these insights, consequently Lazada faces more challenges than other companies in building their business in different countries (Statista, 2021). 1.1 Discovering a Product When buying online a shopper should begin by looking for a certain item. This can usually be accomplished by personally entering a retailer's website; however, to find a specific item or to check the price between shops, one can usually search for the items using an online tool, and then analyze the results. On reputable retail sites, organizations provide pictures and costs. On the off chance that an organization or individual cannot develop a dedicated website, businesses like Amazon and Etsy make it workable for them to show items or construct their own E-commerce shops for a monthly fee, or a charge per item that is sold. Different sites like Lazada give a bartering design in which merchants can show things at the lowest cost, and purchasers can make offers on these things until the posting closes, or the dealer decides to sell it to a purchaser. A majority of the stores additionally have put online client assistance into their sites. There is an option to call, contact via email, or talk with a live client assistance agent in the event that one has questions. This may include talking to a robot before being transferred to a live agent.
5 Specialists are particularly intrigued by the conduct of clients buying staple goods online. For example, an online brand determination is practically indistinguishable from those in conventional stores (Anesbury et al., 2016). Anyway, online staple sites as a rule sell a neighborhood new and delicious food, which definitely influences clients who are looking for s creative additions for their local area (Miškolci, 2017). The effects of online innovation definitely cause differences in purchasing behavior between the web and traditional purchasing settings. For example, the Internet cuts down on the amount of time it takes to buy groceries (Anesbury, 2016). Purchasing conduct has bit by bit changed in container organizations because of constant improvement in online shopping for food. For instance, online shoppers spend more on new items despite the well-known bias that clients fear to shop for new items on the web (Munsonet et al., 2017). These previous studies have looked at the elements that influence repurchasing behavior and discovered that customer satisfaction and perceived shopping values play important roles. Prior research has shown that contentment and perceived shopping values have an influence on boosting repurchase rates. Academics and practitioners, on the other hand, have come to differing conclusions on the explanatory and predictive capacity of satisfaction and the impact of perceived values on repurchase behavior (Olsen, 2007). In particular, one study examined and discovered varying degrees of connection between customer satisfaction and repurchase intentions, ranging from high to zero impact (Kamakura, 2001). For instance, Olsen (2018) claimed that only 40% of pleased customers with a particular brand in the automotive industry will purchase the same model again. That is, in some cases if a client is happy with a product, he or she will return to purchase the same thing. However, in other situations, the pleased consumer does not purchase the goods
6 based on prior purchases and positive experiences. To put it another way, great customer satisfaction does not ensure a positive response (Godfrey & Seiders, 2010). Shoosanuk et al. (2018) also agreed with the theory of interceding for the client, and found a link between customer loyalty and customer repurchases. However, (Benjawan, 2013) reported that a customer's reaction can't be completely predicted, especially when it comes to long-term loyalty to different brands. Furthermore, Olsen (2007) found that these connections differ by industry and other factors. It would seem that the relationship between customer loyalty and repurchases should be very strong. However, that is not always the case (Benjawan, 2013). By performing exploratory research, this study attempts to discover important customer habits and their links to repurchasing. In particular, the current study finds some relevant constructs as factors affecting customer satisfaction and behavioral intention in the preliminary review of the literature. The goal is to examine the level of perceived value, service quality, satisfaction, and behavioral intention among Lazada customers. In addition, the link between perceived value, service quality, customer satisfaction, and behavioral intention should be investigated. The study's specific research question is, what factor(s) improves the effectiveness of customer satisfaction and its perceived influence on repurchase behavior? By and large, making a profit is one of the main targets for a business. Subsequently, organizations need to discover techniques to make yet more profits. One of the techniques is to expand client repurchase rates. Repurchase depends on the idea that retaining existing clients is less expensive than discovering new ones. That is, when clients return to buy the items or services, organizations will have lower advertising costs, and a higher volume of repurchases (Studies, 2019).
7 Before beginning, it is important to understand the meaning of ‘customer satisfaction’ and ‘behavioral intention’. Consumer Satisfaction is a statistic that measures how happy customers are with a company's goods, services, and skills. Consumer loyalty data, such as reviews and ratings, may assist a company in choosing how to improve or change its products and services. Customers are critical to a business because they are the ones who buy the products or services it provides. If clients are unsatisfied, the company will be unable to sell its products or services, resulting in no profit and the threat of bankruptcy (Mikolci, 2017). Satisfaction is characterized as a general post-purchase utilization assessment that came about because of a correlation between earlier assumptions and real item experience, plus intellectually positive feelings about the purchased item (Oliver, 1997). The customary reasonable system shows that consumer loyalty can decidedly build a firm’s client dedication, business notoriety, client repurchase, and thus decrease costs. Good customer service is essential for client pleasure. Customer service refers to the treatment a customer gets before, during, and after purchasing a product or service. A happy consumer is more likely to return to a firm and contribute to its profitability. The reason customer service is important for a business is because it may enhance customer loyalty; it may help a business to improve its reputation and increase customer satisfaction (Sense Business Studies, 2019; Miyatake et al., 2016). If customers get decent quality assistance, they will be more likely to return. This may prompt expanded deals and benefits. Good customer service is crucial to consumer happiness. A satisfied client will often return and contribute to the company's earnings (Miyatake et al., 2016). Client loyalty would make it simpler for a business to advance new items as the client is as of now faithful to the brand (Sense Business Studies, 2019).
8 Next referring to ‘Behavioral Intention’. Behavioral Intention - This alludes to the inspirational elements that impact the given conduct where the more grounded is the goal to act out the conduct, the more probable it is that the conduct will be performed (LaMorte, 2019). 1.2 Research Objective This examination has two principal purposes, (a) To examine the level of perceived value, service quality, satisfaction, and behavioral intention among customers of Lazada Bangkok in Thailand. (b) To investigate the relationship among perceived value, service quality, customer satisfaction, and behavioral intention. 1.3 Research Questions The research questions are as following: 1. To what extent are perceived value and service quality correlated with behavioral intention to buy products online among Lazada customers in Bangkok? The objective of this research question is to determine the effects of service quality and perceived value on behavioral intention. The study also introduces a new integrated structural model that combines service quality’s dimensions of perceived value and service quality on behavioral intention. The analysis was also applied to examine the co-relationships of service quality, perceived value, and customer satisfaction with behavioral intention to buy products online among Lazada customers in Bangkok. 2. How does customer satisfaction influence the relationships among perceived value, service quality, and behavioral intention toward buying products online among Lazada customers in Bangkok?
9 Marketing professionals are particularly interested in aspects such as service quality, perceived value, and customer satisfaction. The presence of these characteristics has been hypothesized to have an impact on customers' behavioral intentions. Within the context of Lazada consumers in Bangkok, this independent study seeks to determine the critical impact that these factors play in determining post-purchase behavior by comparing the study’s findings with previous research and articles. This question is designed to fulfill the purpose of providing enough information so that the extent to which customer satisfaction influences the relationships among perceived value, service quality, and behavioral intention toward buying product online among Lazada customer in Bangkok may be determined. 1.4 Benefits of the Research The benefit of this study is that it will help the reader and the researcher understand the levels of perceived value, service quality, satisfaction, and behavioral intention among Bangkok customers of Lazada. This will allow development of a more powerful explanation and prediction model for customer satisfaction, as well as a behavioral intention model. Furthermore, online buyers on Lazada, especially in Thailand, may utilize the findings of this study to make preliminary decisions about what steps to take to enhance customer happiness, behavioral intention, and sales. 1.5 Definitions of Key Concepts There are five main concepts or terms that re central to this independent study. These are: 1) perceived value; 2) service quality; 3) customer satisfaction; 4) behavioral intention; 5) Lazada. All five concepts are defined and briefly introduced below. These terms will be discussed more fully in Chapter 2.
10 1.5.1 Perceived Value In marketing terms, perceived value refers to a customer's evaluation of a product or service's qualities, as well as its capacity to satisfy their requirements and expectations, especially when compared to rivals. Marketing gurus try to convince buyers of the value of a product by emphasizing the aspects that set it different from the competition. Perceived value refers to the price that the general population is prepared to pay for a given item or service. Even a haphazard purchase in a store aisle needs a comparison of a product's ability to satisfy demand and provide pleasure in contrast to other commodities with diverse brand identities (Kopp, 2021). 1.5.2 Service Quality Even in the case of pure service systems, service quality is usually seen as a product of the service delivery system, rather than as an input. Furthermore, customer happiness is correlated with the standard of service. The perception of service quality is formed by the consumer who does not develop judgments about service quality based on a single reference, but rather on a variety of contributing variables (Pitt, 2019). It is well acknowledged that service quality refers to the comparison of a customer's service expectations with the performance of an organization. In order to satisfy client demands while still staying economically competitive in their particular sector, a company must maintain a high degree of service quality to be successful in that endeavor. In order to stay competitive and relevant in the marketplace, successful companies work proactively to gather information from their existing or prospective client base in order to guarantee that their products and services are fulfilling their requirements (Pitt, 2019).
11 1.5.3 Customer Satisfaction Customer satisfaction is a metric that assesses how satisfied consumers are with a company and its products, services, and capabilities, among other things (Oliver, 1997). Customer satisfaction data, such as surveys and ratings, may help a company figure out how to improve or change its products and services to better fulfill customer demands. The primary goal of every company should be to serve its consumers. Specifically, this is applicable to industrial enterprises, retail and wholesale establishments, government agencies, service businesses, NGO’s, and any division within a company (Oliver, 1997). 1.5.4 Behavioral Intention Behavioral intention refersto the motivating elements that affect a particular action (Hanus, 2016). The greater the desire to execute a behavior, the more probable it is that the activity will be completed. Individual subjective norms relate to perceptions about whether the majority of the people accept or reject a certain action. For example, the acceptance or approval of one's family and peers are likely to affect a person's development of a favorable attitude toward a certain event or action, thus strengthening his/her desire to see the specific activity through to completion (Basaran & Aksoy, 2017). 1.5.5 Lazada The Lazada Group, which was established in 2012, is the largest e-commerce platform in Southeast Asia. The technology, logistics, and payments capabilities of its six-country footprint - - Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam – help it to link this large and varied area (Kustiwi & Isnalita, 2018). With over 300 million consumers to be served by 2030,
12 it aspires to be the biggest marketplace with the widest variety of brands and sellers. As of 2016, Lazada has been designated as the group's regional flagship, and the company is supported by Alibaba's best-in-class technology resources (Lazada, 2021).
13 CHAPTER 2 LITERATURE REVIEW 2.1 Perceived Value In marketing, perceived value applies to a customer's evaluation of a product's or service's attributes, as well as its capacity to satisfy customer requirements and expectations, particularly in comparison to competitors. Marketing experts strive to persuade customers of a product's worth by explaining the features that set it apart from the competitors. Seen values were additionally proposed as an arbiter of consumer loyalty repurchase conduct relationship after this exploration tracked down a positive connection between them. In this exploration, the apparent worth was characterized as seen values from shopping. Seen shopping esteem implies the client's general appraisal of the utility of an item dependent on the impression of what was gotten and what was given. Moreover, depicted that the impression of significant worth normally elaborates a compromise between what the client got (for example quality, advantages, and utility) and what the person offered up to obtain and utilize an item (for example, value (Kopp, 2021). Perceived value refers to the price that the general public is comfortable paying for a product or service. Even a last-minute purchase in a shop aisle involves a comparison between a product that is capable of satisfying demand and providing pleasure and other things with various brandings (Kopp, 2021). Customers' perceived shopping value and repurchase behavior have a favorable association, according to research (Sweeney & Soutar, 2001). According to the researchers, the higher a customer's perceived value from buying at a store, the more likely he or she is to return to buy products and services from that store. Based on these reasons, it is acceptable to assume
14 that greater repurchase rates are a consequence of improved consumer satisfaction. Customers' perceived shopping values, according to this research, should better reflect the link between consumer contentment and repurchase behavior. 2.2 Service Quality Service Quality is a mix of two words: service and quality, with the focus on providing high-quality services to end consumers. The term quality refers to the standard or specification that a service provider promises. There can't be a clear line between good and bad. For a quality generation, the sky is the limit. Scientific advancements and innovations pave the way for quality to be produced. More frequent innovations mean fewer gaps in the process of quality improvement (Murphy, 2019). Service-generating organizations, like goods-producing organizations, are proven to be vital in fostering research and inventing something fresh that distinguishes their services and plans and offers profitable market chances to capitalize on. It is against this backdrop that the process of inventions is more common in industrialized countries (Murphy, 2019). Technical measures direct our attention to inventions and improvements that serve to increase the quality of services. They emphasize the use of innovation or services that are technology driven. The operational measures focus our attention on increasing the quality of services provided by employees, paving the way for work style, work culture, the design of a lucrative package, and employee behavioral profiles, among other things (Pitt, 2019). The dominant factor in customer assessment is the level of service quality, which is a key component of the customer's impression. When customer service is provided in conjunction with a commodity, the quality of the service may also be a significant factor in determining customer
15 satisfaction. When customers evaluate the quality of their service, they consider both the technical result and the manner in which the solution was given. For example, a customer of legal service would evaluate the quality of the result, or the manner in which the court case was presented, as well as the overall quality of the process. Additionally, process quality includes factors such as a lawyer’s punctuality, attentiveness in answering phone calls, empathy for the client, politeness, and interviewing abilities, among others. Additionally, a restaurant client will evaluate the service based on the customer's impression of the food (technical result quality), how the meal was delivered, and how the workers interacted with the customers (process quality) (Pitt, 2019). 2.3 Customer Satisfaction Customer satisfaction is a number that shows how pleased a company's consumers are with its offerings, solutions, and abilities. Customer satisfaction data, such as questionnaires and reviews, may help a company figure out how to improve or alter its products and services (Benjawan, 2019). The primary goal of every business should be to please its consumers. This holds true for manufacturing enterprises, retail and wholesale businesses, government agencies, service businesses, charitable organizations, and every subdivision within a company (Kemapanmanas et al., 2016). Satisfaction is defined as an overall assessment of customer comments in comparison with previous standards and perceived service and product effectiveness. This includes both cognitive and emotional components. (Oliver, 1997). Customer pleasure may improve customer loyalty, company image, customer repurchase, and advertising expenditure reduction (Leecharoen, 2019) There are two types of satisfaction: transactional and quantifiable (Carter, S. 2018). The first is about a customer's response to a recent transaction with a business. The latter consider
16 product quality, pricing, brand name, seller reliability, competence, and after service, among other things (Mittal & Kamakura, 2001). The satisfaction component of this research focuses on the two aforementioned factors (Carter, 2018). Organizations should not make the mistake of assuming they know exactly what their customers want. Instead, they should utilize techniques like customer surveys, focus groups, and polling. It is critical to understand the consumer's voice (Yıldırım, 2012). Organizations may get comprehensive insights into what their consumers’ desire by using these technologies, allowing them to better adapt their services or goods to improve the quality-of-service (Benjawan, 2019). Customer satisfaction is a number that shows how satisfied a company's consumers are with its goods, solutions, and competencies. Customer satisfaction data, such as questionnaires and rankings, may help a company figure out how to improve or alter its items/solutions (Leecharoen, 2019). 2.4 Behavioral Intention Behavior Intention - This refers to the motivating factors that influence a particular action, with the more grounded the purpose to carry out the action, the more likely the action will be carried out. Consumer behavior is directly impacted by health consciousness, but it is also influenced passively by both health and social awareness, according to the ‘social agricultural food perceived service quality characteristic’. According to the data, there is a high level of curiosity among potential customers (LaMorte, 2019). The reader and researcher will profit from this study since it reveals the degree of perceived value, service quality, contentment, and behavioral intention among Lazada consumers. This will
17 therefore assist in developing a more powerful explanation and prediction model for customer satisfaction, as well as behavioral intention. Furthermore, online sellers on Lazada, especially in Thailand, may utilize the findings of this study to make preliminary decisions about what measures to take to enhance customer happiness, behavioral intention, and sales (Mardiana, 2015). The intention may simply be described as how hard someone is willing to try and how much determination will be put into carrying out an action. Behavioral intention (BI) is defined as "a person's perceived likelihood of doing a behavior." Furthermore, consumer attitude, subjective norm, and perceived behavioral control are all separate antecedents that influence behavioral intention (Hanus, 2016). However, according to the theory of reason action (TRA), the behavioral purpose is the most important predictor of conduct. According to another research, an individual's purpose guides behavior implementation in the same direction. It was said that once an intention is engaged, it will operate as a self-fulfilling mechanism, driving people into a state of "must do" or "will do." Behavioral intentions are motivating variables that reflect how much effort a person is willing to put in to carrying out an action (Chao, 2019). 2.5 Lazada Rocket Internet established the Lazada Group in 2012 to offer to Southeast Asia the benefit of a high-quality online purchasing experience. In 2012, Lazada launched its e-commerce platforms in five ASEAN nations, including Thailand. By 2016, Lazada's South Asian marketplaces had earned a cumulative Gross Merchandise Value of US$1.3 billion per year. With a US$1 billion investment in early 2016, Alibaba acquired a 51 percent controlling interest in Lazada, and more recently expanded their stakes by another US$1 billion, giving them an 83 percent ownership in the business. With Board of Investment assistance, Lazada established a local subsidiary in Thailand, Lazada IHQ. Ltd, in 2015 (Lazada, 2021).
18 Thailand was chosen as a marketplace because the country has completely embraced the digital age, with 46 million monthly users accounting for 67% of the age group. With 47 million Facebook users and 33 million Line users, Thailand has one of the world's largest social media populations. Thailand has a vast market and a variety of delivery providers, including the Kingdom Postal System, Lala Move, Kerry Express, UPS, FedEx, and others (Kustiwi & Isnalita, 2018). In March 2016, Lazada announced the opening of the Lazada Tech Hub, a product production and marketing center in Thailand that would focus on enhancing the architecture of the firm's mobile shopping website and apps. With over 30 million apps available and 60 percent of its gross production volumes currently coming from mobile sales, Lazada aims to expand its reach to better compete with brick-and-mortar stores while also allowing smaller companies to set up shop on its e-commerce platform. It's also getting ready for greater cross-border e-commerce by harnessing parent company Alibaba's clout in China's burgeoning market (Lazada, 2021). 2.6 Hypotheses Based on the Literature Review H1: The Perceived Value of buying products on Lazada has a positive effect on Customer Satisfaction toward buying products online. H2: The Service Quality of Lazada has a positive effect on Behavioral Intention toward buying products online. H3: The Perceived Value of buying products on Lazada has a positive effect on Behavioral Intention toward buying products online. H4: The Service Quality of Lazada has a positive effect on Customer Satisfaction toward buying products online.
19 H5: The Customer Satisfaction toward Lazada has a positive effect on Behavioral Intention toward buying products online. 2.7 Conceptual Framework This study examines the causes and focuses on the concept of online shopping, namely Lazada Thailand. Perceived Value is related to the Customer Satisfaction of a product bought from the Lazada platform; another element that plays a significant part in customer satisfaction is Service Quality. Combining all the aforementioned variables results in favorable Behavioral Intention for the product, online retail platform Lazada. Figure 1 Conceptual Framework 2.8 Summary In this chapter, a review of the literature was completed that covered the meaning of the variables perceived value, service quality, customer satisfaction, behavioral intention, and provided a brief background for Lazada. Based on this material, hypotheses and a conceptual framework were formulated to enable visualization of the connection among the different concepts.
20 CHAPTER 3 RESEARCH METHODOLOGY 3.1 Introduction In this chapter the research methodology is given, the type and number of respondents surveyed, the research instrument used in the study, data collection, and the statistical analysis of the data. The purpose of this independent study is to test if the study examines the factors affecting customer satisfaction and behavioral intentions: A case study of Lazada application. 3.2 Methodology This Research examines the direct effects of the factors affecting customer satisfaction and behavioral intentions especially focusing on Lazada. In addition, this research investigates the direct effects of the relationship between customer satisfaction and behavioral intention (Mardiana, 2015). This study talks about how to retain customers in this competitive environment. There are four main variables in this research. It is important for business firms to understand customers’ attitudes toward a specific purchasing behavior as well as customer willingness to pay. Factors that are mainly involved are perceived value, service quality, customer satisfaction, behavioral intention, and Lazada. i. Descriptive and analytical data on the perceived value of a product or service to a customer's judgment of its potential to satisfy their demands and standards, especially in relation to its rivals. This study is valuable because it will provide a clearer picture of how the marketing experts attempt to persuade customers of a product’s worth by highlighting the features that set it apart from competitors.
21 ii. Descriptive and analytical information on the customers' satisfaction indicates how satisfied they are with a company's goods, services, and capabilities, among other things. This study is valuable information because the primary goal of a company is to serve its customers. In this research, we will learn about how a customer's views of a product or service might influence their decision to take a certain action. 3.3 Population and Sample Size The population of this study is the Lazada application users/customers in Bangkok. According to Statista (2022), the estimated total population of Bangkok is about 10.7 million. Since there is no exact data about the number of Lazada application users/customers in Bangkok, the researcher employed the 10.7 million populations using “Yamane’s Formula” to determine the sample size determination. n = N/(1+N(e)2 = 10,700,000/((1+(10,700,000 (.05)2 ) = 400 n = Sample Size N = Population size e = Level of Precision or Margin of Error The study examines the factors affecting customer satisfaction and behavioral intention when purchasing a product from Lazada in Thailand. Out of 10.7 Million individuals in Bangkok 400 individuals were selected who buy products or services online on Lazada. In order to specify Lazada users, I have mentioned in the beginning of the survey questionnaire, (this questionnaire is for Lazada users in Bangkok). Every individual taking part was contacted through email, Facebook Messenger, Instagram, Line, Zoom, and Teams. In total, the sample size is 400
22 candidates. The sample size of 400 individuals was intended to provide a confidence level of 95% and margin of error 5% accuracy in the findings with the help of ‘Yamane’s Formula’. This indicates the level of certainty about the margin of error. It's given as a percentage and indicates how often the genuine proportion of people who would choose a particular response fall within the margin of error. 3.4 Sample Technique A method known as purposive sampling was used. Individuals who are unfamiliar with Internet buying were disqualified from participating in the survey. The reason this strategy was chosen was because the audience was targeted. They must possess specialized knowledge about online shopping, which will enable data to be collected about their satisfaction experience, behavioral intention, perceived value, and perceived service quality. Additionally, the practice of purposive sampling method is well-known for being time- and cost-effective. 3.5 Data Collection The researcher asked individuals from Bangkok to spend about ten minutes participating in this study by completing a survey questionnaire, which was sent via various social media platforms or by Email. (Due to the COVID-19 pandemic, it was recommended to maintain social distancing, which is why it was best to distribute and collect surveys online). Five Hundred (500) copies of the survey questionnaire (the link) were distributed online to individuals from Bangkok in August 2022. People who liked or followed Lazada Thailand page and advertisements on digital platforms such as Instagram, LinkedIn, Twitter, Facebook, Reddit discussions were contacted through private messages, emails, social media platforms such as WhatsApp, Line, Telegram, Messenger, Gmail. Also known people (friends, acquaintances, gym mates, work mates) who live in Bangkok and have used Lazada for shopping were encouraged to participate in the research
23 survey. However, there were 456 respondents. In addition, Fifteen (15) regular consumers from Bangkok were also chosen and contacted through Email/Messenger/Instagram/Line depending on the number of products they had bought from Lazada in a given month. They were invited to participate in a 30-minute Zoom call interview and online interview guide. The main purpose of the interview is to get a better understanding from the consumers’ standpoints and get opinions related to their experiences. Interviews help to provide a better picture of respondents’ non-verbal behavior, which would be beneficial to the research findings. Here are the questions that were used for the interviews (the 5 best questions were chosen depending on the individual) 1. How often do you shop on Lazada Thailand? 2. What makes you choose Lazada over other online shopping platforms? 3. What product category do you buy from Lazada frequently? 4. What is the biggest challenge you face with shopping on Lazada Thailand? 5. What is your biggest concern about shopping on Lazada? 6. How likely are you to recommend Lazada to your peers? 7. How much do you spend on Lazada in 1 month? 8. If you had one thing to change In Lazada, what would it be? 3.6 Data Analysis Descriptive statistics, Pearson’s Correlation Coefficient, Simple Regression Analysis, and Multiple Regression Analysis were used to test the hypotheses against the data obtained from the questionnaires.
24 3.7 Research Instrument The survey instrument was comprised of two sections. Section 1 addressed the demographic variables of age, gender, location, and level of education. Section 2 was the Likerttype statements, which measured the participants' perception of overall dimensions of personal behavior and purchase decisions when it came to online shopping, mainly after and during the COVID-19 pandemic. The Likert scale employed in this study was a 5-point scale with 1 = Strongly Disagree, and 5 = Strongly Agree. These measurement items were adapted from previously validated instruments, as well as items written by the researcher. Before the final version of the survey questionnaire, the content validity was determined using the Index of ItemObjective Congruence (IOC). The questionnaire were reviewed by three experts in the field. Out of 20 question items, one question item received the IOC value of 0.67, two question items received the IOC value of 0.833, the other 17 question items received the IOC value of 1.00 (Appendix C). One expert reviewed the questionnaire again throughout this procedure (my advisor). To guarantee that the answers acquired via the instrument would be accurate and consistent, the questionnaire's dependability was assessed. A total of 30 college students who were not part of the sample group took the survey. Cronbach's alpha was used to determine the dependability rating to check that the items were internally consistent. Appendix D reveals the results of internally consistent analysis from the 20 question items, and Appendix E shows the Cronbach’s alpha scores for each item. Most items received Cronbach's alpha scores of more than 0.70, which means that they can be used for this study. For the meaning of the definition of the mean score level of perceived value, service quality, customer satisfaction, and behavioral intentions toward the service of Lazada, cut-off
25 points were used to determine the range of each response category. The cut-off points for each range are calculated using the Class Interval Formula: Class Interval=(Highest Value -Lowest Value)/(Number of Classes) The highest value was 5, the lowest 1, and the number of classes 5; therefore, the class interval was 0.8. The cut-off points and their interpretation were as follows: 1.00 and 1.80 were the cut-off points on the five-point Likert scale that represented very low level of perceived value, service quality, customer satisfaction, and behavioral intentions toward the service of Lazada. 1.81 and 2.60 were the cut-off points on the five-point Likert scale that represented low level of perceived value, service quality, customer satisfaction, and behavioral intentions toward the service of Lazada. 2.61 and 3.40 were the cut-off points on the five-point Likert scale that represented neutral/moderate level of perceived value, service quality, customer satisfaction, and behavioral intentions toward the service of Lazada. 3.41 and 4.20 were the cut-off points on the five-point Likert scale that represented high level of perceived value, service quality, customer satisfaction, and behavioral intentions toward the service of Lazada. 4.21 and 5.00 were the cut-off points on the five-point Likert scale that represented very high level of perceived value, service quality, customer satisfaction, and behavioral intentions toward the service of Lazada.
26 3.8 Ethical Considerations The ideals and principles of ethical behavior must always be considered by researchers while developing and conducting studies using human data. The study questionnaire did not gather personal information that could be used to identify a person. The ethical appropriateness of research projects is usually evaluated by research committees. The MBA Research Committee approved the survey instrument and data collection plan for this research study. Potential respondents were politely invited to participate in this study, but they were free to refuse if they wished. The researcher ensured that study participants were not harmed, that their dignity was maintained, that their privacy was safeguarded, that proper confidentiality of the research data was assured, and that there was no deceit or exaggeration about the research's goals and objectives. 3.9 Summary In this chapter, explanations of the research methodology, population, sample size, and instrument were included. A justification of the quality of the research instrument was also provided and broken down. The measures taken before the data collection were explained, and the details of the statistical treatment were given. Finally, the ethical considerations taken during the research were explained.
27 CHAPTER 4 RESULTS 4.1 Introduction This chapter will present the results of the data analysis to examine the direct effects of the factors affecting customer satisfaction and behavioral intentions concerning Lazada. The chapter includes descriptive analysis summarizing the gathered sample information (frequencies and percentages of the study participants, means and standard deviations of the predictor and criterion variables), and data analysis used to answer the research questions and hypotheses. The data analysis section includes Pearson correlation and Multiple Regression. Finally, a summary of hypothesis testing is provided. 4.2 Descriptive Analysis In this section, summaries are provided of the frequencies of the study participants and means and standard deviations of the predictor and criterion variables. 4.2.1 Demographic Information The personal information from the sample comprised 456 individuals from Bangkok including their gender, ages, education qualifications, occupation, and how frequently they buy products from Lazada. This information is shown in Table 1.
28 Table 1 Demographic Information (N = 456) Demographic Frequency Percentage Gender Male 256 56.1 Female 200 43.9 Age ≤ 20 years old 88 19.3 21-30 years old 230 50.4 31-40 years old 86 18.9 41-50 years old 52 11.4 Education Qualification Secondary school 58 12.7 High school 87 19.1 Technical college 83 18.2 Bachelor’s degree 169 37.1 Master’s degree and higher 59 12.9 Occupation Student 146 32.0 Self-employment/Business 110 24.1 Private employee 139 30.5 Public employee 60 13.2 Other professions 1 0.2 Purchasing Pattern 1-5 times a month 148 32.5 6-10 times a month 187 41.0 11-15 times a month 92 20.2 More than 16 times a month 29 6.4
29 Table 1 shows that a majority of participants were 21-30 years old (50.4%), male (56.1%), had finished a bachelor’s degree (37.1%), students and private employees (32.0% and 30.5% respectively), and buy products from Lazada 6-10 times a month (41.0%). 4.2.2 Level of Perceived Value, Service Quality, Customer Satisfaction, and Behavioral Intentions The mean and standard deviation values were adopted and a 5-point Likert scale was used to assess the level of perceived value, service quality, customer satisfaction, and behavioral intentions toward the service of Lazada. Table 2 shows the descriptive analysis of these factors. Table 2 Mean and Standard Deviation of Distinctive Competencies (N = 456) Variable Mean SD Level Perceived Value Lazada provides good value for the money. 4.63 0.61 Very High The products from Lazada are always in good condition 4.45 0.62 Very High Lazada provides good quality for the money 4.51 0.63 Very High Lazada has a good selection of products that I like. 4.54 0.62 Very High I like the convenience of shopping on Lazada which saves me time 4.55 0.62 Very High Total Average of Perceived Value 4.54 0.43 Very High Service Quality Lazada's website is attractive and easy to use. 4.49 0.66 Very High Products displayed on Lazada are visually appealing. 4.47 0.63 Very High Lazada has an ability to deliver their product with speed. 4.47 0.67 Very High Lazada’s customer service is reliable and provides help as fast as possible. 4.45 0.67 Very High Lazada’s order fulfillment accurately delivering what I order. 4.46 0.70 Very High Total Average of Service Quality 4.47 0.46 Very High
30 Table 3 Mean and Standard Deviation of Distinctive Competencies (Cont.) Customer Satisfaction How satisfied are you with your Lazada purchase experience? 4.55 0.61 Very High If I bought a product on Lazada at (selling price), I feel I would be getting my money’s worth. 4.48 0.65 Very High How likely are you to recommend (product or service) to others? 4.45 0.68 Very High Does Perceived Value of buying products on Lazada have a positive effect on purchaser with buying products online? 4.45 0.66 Very High I am very likely to save money with Lazada purchases 4.50 0.64 Very High Total Average of Customer Satisfaction 4.49 0.46 Very High Behavior Intentions The Perceived Value of Purchasing Products on Lazada has a Positive Influence on Behavioral Intention to Purchase Products Online. 4.54 0.62 Very High I will recommend Lazada to my relatives and friends 4.45 0.67 Very High I prefer Lazada over other online selling platforms 4.47 0.66 Very High Those with a higher level of education will have a higher purchasing intention from Lazada than those with lower level of education 4.49 0.65 Very High Due to the convenience the consumer tends to buy more on Lazada. 4.52 0.62 Very High Total Average of Behavior Intentions 4.50 0.46 Very High The analysis showed that all studied variables related to the service of Lazada were at high levels. The perceived value of Lazada service was the highest score, followed by behavior intentions and customer satisfaction. Service quality had the lowest scores, although they were only slightly lower than the scores for the remaining variables.
31 4.3 Hypothesis Testing: Analysis of Factors Affecting Customer Satisfaction and Behavioral Intentions This section presents the results of data analysis to examine the direct effects of the factors affecting customer satisfaction and behavioral intentions focusing on Lazada. There were two models in the study. The first model examined the direct effects of the factors affecting customer satisfaction. The researcher regressed customer satisfaction with perceived value and service quality. Table 3 shows the multiple regression analysis of this relationship. Table 4. Regression Results of Perceived Value and Service Quality as Predictors of Customer Satisfaction Independent Variable DV: Customer Satisfaction Constant 0.411* Perceived Value 0.500* Service Quality 0.405* R 2 0.650 Adjusted R2 0.648 F 420.604* Note: * p < .01 The multiple regression analysis (Table 3) showed that perceived value and service quality of Lazada positively affected customer satisfaction toward buying products online. The second model examined the direct effects of the factors affecting behavioral intentions. The researcher regressed behavioral intentions with customer satisfaction, perceived value, and service quality. Table 4 shows the multiple regression analysis of this relationship.
32 Table 5. Regression Results of Perceived Value, Service Quality, and Customer Satisfaction as Predictors of Behavioral Intentions Independent Variable DV: Behavioral Intentions Model 2.1 Model 2.2 Model 2.3 Model 2.4 Constant 0.982* 0.943* 0.947* 0.264* Perceived Value 0.774* 0.150* Service Quality 0.796* 0.407* Customer Satisfaction 0.791* 0.386* R 2 0.522 0.623 0.624 0.725 Adjusted R2 0.521 0.623 0.623 0.723 F 495.148* 751.560* 753.283* 397.018* Note: * p < .01 The results of the multiple regression analysis in Table 5 showed that customer satisfaction, perceived value, and service quality toward Lazada positively influenced behavioral intention toward buying products online. Model 2.1 measured the relationship between perceived value and behavioral intentions; Model 2.2 the relationship between service quality and behavioral intentions; Model 2.3 the relationship between customer satisfaction and behavioral intentions, and Model 2.4 combined variable relationships for perceived value, service quality, and customer satisfaction that have on behavioral intentions). All models showed similar significant results. The results in Tables 4 and 5 also showed that the perceived value and service quality of Lazada has both direct effects and indirect effects through customer satisfaction with Lazada on behavioral intention toward buying products online. 4.4 Summary of the Hypothesis Testing The analyses showed support for all of the alternative hypotheses. A summary of the results of the hypotheses testing is given in Table 6.
33 Table 6 Summary of Hypothesis Testing Hypothesis Description Result H1 Perceived Value of buying products on Lazada has a positive effect on Customer Satisfaction toward buying product online. Supported* H2 Service Quality of Lazada has a positive effect on Behavioral Intention toward buying products online. Supported* H3 Perceived Value of buying products on Lazada has a positive effect on Behavioral Intention toward buying products online. Supported* H4 Service Quality of Lazada has a positive effect on Customer Satisfaction toward buying products online. Supported* H5 Customer Satisfaction toward Lazada has a positive effect on Behavioral Intention toward buying products online. Supported* Note: * p <0 .01 4.5 Summary In this chapter, the results of descriptive analysis and hypothesis testing were reported. All of the alternative hypotheses were supported. They are as follows: The perceived value of buying products on Lazada has a positive effect on customer satisfaction toward buying a product online. The service quality of Lazada has a positive effect on behavioral intention toward buying products online.
34 The perceived value of buying products on Lazada has a positive effect on behavioral intention toward buying products online. The service quality of Lazada has a positive effect on customer satisfaction toward buying products online Customer satisfaction toward Lazada also has a positive effect on behavioral intention toward buying products online. In the next chapter the conclusions, discussion, managerial implications, and recommendations for future study will be presented.
35 CHAPTER 5 DISCUSSION 5.1 Introduction This chapter discusses findings related to the concept of online shopping, namely Lazada Thailand. Perceived Value is related to the Customer Satisfaction of a product bought from the Lazada platform. Another element that plays a significant part in customer satisfaction is Service Quality. Combining Perceived Value, Customer Satisfaction and Service Quality results in favorable Behavioral Intention to purchase the products sold on the online retail platform Lazada. The chapter begins with a discussion of the direct effects of the factors affecting customer satisfaction and behavioral intentions focusing on Lazada. The theoretical managerial implications of the findings and the limitations of this study are also explained, followed by suggestions/recommendations for future research. 5.2 Perceived Value of buying products on Lazada has a positive effect on Customer Satisfaction toward buying a product online. (Hypothesis 1) Here are two significant concepts, perceived value and customer satisfaction, which have a positive effect toward buying a product online. This study’s findings have included customer satisfaction in online purchasing while examining the key drivers of customers' perceived value in relation to online shopping (Al Karim, 2013). The results (H1) revealed that perceived value of buying products on Lazada had a positive effect on customer satisfaction. According to (Mascarenhas, 2018), online shopping allows Lazada to assure better customer happiness in the organizational context, and the majority of respondents point to this when an organization's position in the market is at stake. Lazada is capable of offering its consumers high-quality goods
36 and services, new customers for the businesses, as well as assistance in meeting client requests and expectations. The researcher found that customer satisfaction came from various factors such as timely product delivery, product authenticity, and product quality. The factors mentioned lead to a relationship and trust between the online seller and the buyer, which contributes to perceived value having a positive effect on customer satisfaction (Mascarenhas, 2018). Firstly, most online shoppers have experienced that Lazada provides value for money, products are in good condition, there is vast product availability, and convenience in shopping. Secondly, customers are satisfied with their purchases on Lazada Thailand, and are willing to recommend Lazada to their peers because they are able to save money by buying products on Lazada. Now Lazada can use this information and apply it to their marketing strategy and maintain competitiveness in the current online marketplace. The finding is similar to a prior study (Al Karim, 2013). Consumer perceptions indicate that "time saving" is the main driving force behind online purchases. Other aspects are "information accessibility," "open 24/7," "large selection of brands and items," "affordable costs," "different offers for online products," "simple ordering system," and "shopping enjoyment." All these aspects encourage consumers to purchase online (Vongurai, 2021). Perceived value having a positive impact on customer satisfaction is not a surprise because Lazada is doing an exceptionally good job understanding customers’ needs and fulfilling them diligently. The above explanation and justifications from the research results make it clear that the outcome of the research has met the research objectives. The perceived value of buying products on Lazada has a positive effect on customer satisfaction.
37 5.3 Service Quality of Lazada has a positive effect on Behavioral Intention toward buying products online. (Hypothesis 2) Because of the current state of the economy (Kumar, 2000), retailers will comprehend how customers are responding to these developments and what their intentions are. Evidence suggests that service quality is a key strategy for success, arguably more so than low prices and a strong online presence. Research by (Tang, 2006) identified the aspects of service quality that influenced when consumers purchase online. According to (Zhang, 2019), female consumers prefer to do online shopping, and consumers with different monthly incomes have different economic strengths, and also have different degrees of willingness to shop online. The more positive the consumer's attitude towards a website, the higher their willingness to buy on that website. The result of (H2) showed that the service quality of Lazada had a positive effect on behavioral intention toward buying products online. According to the findings, the mean score (4.47) of service quality was at a high level. This study revealed that similarity and relevance between service quality was one of the key factors to determine holistic behavioral intention. Service quality plays a massive role in making the customer repurchase goods from the Lazada online store. This had a positive effect on behavioral intention when buying from Lazada. The life of the typical customer is getting busier every day. People are looking for methods to make their lives simpler, and online services like Lazada have been filling a massive gap for purchasers (Zhang, 2019). Another study from (Tang, 2006) also found that through a variety of aspects, responsiveness affected how well an online purchasing experience was viewed. Giving consumers the right service quality when an issue arises is one of the crucial elements. In addition, the speed
38 of the navigation, the setup of online commitments, and the promptness of the response to requests are important elements of responsiveness that can also influence the behavioral intention toward online buying. 5.4 Perceived Value of buying products on Lazada has a positive effect on Behavioral Intention toward buying products online. (Hypothesis 3) Behavioral intention refers to the motivating factors that influence a particular action, with the more grounded the purpose to carry out the action, the more likely the action will be carried out (LaMorte, 2019). This study was prompted by a lack of information on elements that may encourage or inhibit consumer behavior while purchasing health foods online (Leelyayouthayotin, 2014). This study investigated the direct relationship between perceived value and behavioral intention when it comes to buying products online. The result (H3) reveals that perceived value of buying products on Lazada had a positive effect on behavioral intention towards buying products online. The idea of perceived value is complex and dynamic in nature. According to (Zehir et al., 2014), customers' preferences or choices should be based on how they assess the quality or advantages of a product rather than the cost or sacrifice implicit in the price (Francisco, 2021). It has been stated that purchasers' judgments of value indicate a form of trade-off between the perceived quality or advantages of the goods and the perceived commitment of paying the price. The analysis of this research has shown that the perceived value of Lazada service was the highest (mean = 4.54), followed by behavior intention (mean = 4.50). Therefore, we understand that customers have perceived positive value when buying products on Lazada, showing that there is a positive effect on behavioral intention towards buying products online.
39 5.5 Service Quality of Lazada has a positive effect on Customer Satisfaction toward buying products online. (Hypothesis 4) The goal of this research was to discover the primary reasons for online Lazada purchasing as well as the barriers to online Lazada shopping. According to a previous study (Raman, 2020), with the increased use of the World Wide Web, often known as www, online shopping is growing more popular by the day. Understanding the needs of customers in regard to online sales has become a problem for marketers. (Raman, 2020) Understanding customer sentiments regarding Internet shopping is very important in order to enhance the variables that encourage customers to purchase online. Marketers will gain a competitive advantage by focusing on the variables that influence customers to purchase online. Finally, having access to online buying has actually transformed and affected our whole civilization. This application of technology has created new doors and opportunities that provide for a more convenient way of living. Customer satisfaction and service quality are two of the major factors that play important roles in encouraging customers to buy products online from Lazada. Consumer satisfaction is a current concern in the success of any company strategy, whether traditional or online (Hu, 2014). The online business environment is disorganized without a clear end objective of managing the whole industry's development. Because customer loyalty is important, website firms are now considering ways to please customers. That is required for establishing extended customer ties (Biswas et al., 2019). This study can help the marketer gain a better knowledge about customers’ thoughts and preferences in regard to related factors. The result (H4) reveals that customer satisfaction is directly related to service quality. Each has a positive effect on the other. The multiple regression analysis
40 also showed that Lazada's perceived value and service quality positively affected customer satisfaction with buying products online. 5.6 Customer Satisfaction toward Lazada has a positive effect on Behavioral Intention toward buying products online. (Hypothesis 5) Behavioral Intention may simply be described as how hard someone is willing to try and how much determination they intend to put into carrying out an action. The purpose of this hypothesis (H5) was to predict consumers’ behavior in regard to customer satisfaction with online shopping on Lazada. These predictions were based on consumers’ attitudes, subjective norms, perceptions of behavioral control, demographic, and personal characteristics (Kumar, 2000). Behavioral Intention is defined as "a person's perceived likelihood of doing a behavior." Customer Satisfaction is defined as an overall assessment of customer comments in comparison with previous standards, perceived service, and product effectiveness. This includes both cognitive and emotional components (Oliver, 1997). The results (H5) for customer satisfaction were directly related to the behavioral intention when it comes to buying products on Lazada. According to the findings, consumers feel that online shopping is very convenient, that it will be easy to accept and use. Furthermore, as was also shown in the framework, customer satisfaction was the interlink that connected all the variables to the others. Behavioral intention comes at the end, and is also correlated to the rest of the variables. The researcher found that the multiple regression analysis results in Table 4 showed customer satisfaction, perceived value, and service quality from Lazada positively influenced behavioral intention toward buying products online. The analysis of the mean and standard deviation of distinctive competencies have also shown that the perceived value of Lazada’s service was the highest score. It was followed by behavioral intention and customer satisfaction. Customer