Group 4 – International School,VNU

International School, VNU

E-WOM, BRAND TRUST, BRAND LOYALTY: AFFECTING THE
DEVELOPMENT OF E-COMMERCE IN VIIETNAM:
CASE STUDY OF SHOPEE
by Group 4

Table of contents
1. Abstract………………………………………………………………………………….2
2. Introduction……………………………………………………………………………..2
3. Review of related Literature…………………………………………………………...3
4. Methodology…………………………………………………………………………….4
5. Data analysis………………………………………………………………………….....5
5.1- Characteristics of Respondents……………………………………………………...5
5.2- Descriptive Statistic…………………………………………………………………5
6. Discussion and recommendation…………………………………………………........7
6.1 – Discussion…………………………………………………………………….........7
6.2 – Recommendation…………………………………………………………………..7
7. References………………………………………………………………………………..8

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1. Abstract
Shopee has come to Vietnam from 2015 and officially launched on 8/8/2016. Born after many
other e-commerce websites but Shopee quickly gained the advantages and influences by
identifying the segment of customers, focusing on online shoppers and young customers. In
addition, the easy-to-use website interface and fast order processing, smart product filters are
also an advantage of Shopee. By the time of its official launch, Shopee had 1.8 million app
downloads and topped the shopping list in Vietnam with over 3 million products sold. 
Nowadays, along with the superior development of the Internet and Internet technology,
Vietnam is one of the countries have a tendency to develop cmmoercial activities through the
Internet in the world market and adopting and bringing e- commerce into an important element,
changing the behavior of users in Vietnam, bringing a new era in which people can use
electronic device features to simplify shopping activities. 
Shopee is the largest e-commerce platform in Pan Asia. Its main markets include Indonesia,
Thailand and other six major countries, as well as Taiwan. As of 2016, Shopee made a
remarkable achievement. With more than US$1.3 billion in GMV, the daily volume reached
more than 200,000. More than 2,000 employees are located in different countries and regions,
and Shopee launched in 7 countries and regions. If we are going to sell on a platform, we are
more concerned about how much traffic of this platform, ie how many customers can see the
products I am selling. In this regard, Shopee also made outstanding performance. According to
statistics, Shopee ranks first in Taiwan and Indonesia in mobile shopping apps. In Singapore and
Malaysia, Shopee ranks in the top five and comes second in Thailand.

2. Introduction
Shopee is currently the leading buying application in seven countries: Singapore, Malaysia,
Thailand, Indonesia, Vietnam, Philippines and Taiwan. In 2015, Shopee was launched in
Singapore with the orientation of being an e-commerce platform developed mainly on mobile
devices,acting as a social network for shopping anytime, anywhere. for users. Integrating the
operation system, delivery and payment support, Shopee is an intermediary that makes online
shopping easier and safer for both buyers and sellers. 
Different from Amazon, eBay and other shopping platforms, Shopee is a mobile social shopping
platform, and it conforms to the global e-commerce trend of mobile e-commerce. According to
surveys, more than 51% of online shopping people in Southeast Asia like to shop through social
media. In Thailand, for example, about 71% of smart phone users shop once on average two
months. PayPal and Facebook also started to explore the commercialization of social media.
Shopee takes “social” as the starting point, and takes socially-minded women as its main users to
quickly enter the mobile e-commerce market, attract large numbers of users through mainstream
social media in a short period of time, and compatible feature settings with strong social
attributes such as one-click sharing, chat comments, and fan resumption. At present, 60%-70%
of users of Shopee are young female. The main product categories are beauty care, baby
products, watch accessories, popular shoes and home furnishings, and now are expanding in the
entire category.
At the same time, Shopee is now also working hard to promote its business. They access traffic
from multiple channels to acquire a large number of users within a short period of time. They
advertise on television, network, vertical media, OOH, and KOL dissemination. Shopee focuses
on word of mouth, attracts users through various social channels and online community
activities, and conducts a variety of exchange activities in various countries and regions offline.
Shopee users can share products and stores to Facebook, Line, Instagram, Twitter, BeeTalk and
other platforms, and consumers can also see which products their friends like. It differs from the
other most is the chat function, where buyers and sellers can chat in real time. 

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Over the past 5 years, Shopee have noticed the three key trends which have shaped and will
continue to drive the growth of e-commerce: Social, Personalisation, and Integration. 
First, today’s users are more social than ever and they demand a more meaningful, engaging and
entertaining online shopping experience with rich and unique content. Online shopping is now
more than just a transactional experience. Consumers want to be entertained, informed and
connect with one another. Shopee has continuously improved on its in-app engagement features
over the past five years to make the online shopping experience more social. As a result, the
average time spent by a user in-app has consistently increased year-on-year. 

Second, personalisation is critical in the e-commerce of today. As brands increasingly grow their
online presence and consumers spend more time shopping online, it is easy to become
overwhelmed by choices, which negatively impacts the customer experience. A highly
personalised experience will make online shopping more enjoyable and unique for consumers,
while helping brands and sellers drive increased traffic and growth. Shopee also continually
refines our recommendation engines to offer more customised and relevant shopping
suggestions, promotions and push notifications made to fit consumers’ needs.

Last but not least, with 2020 being a year of accelerated digitalisation, businesses large and small
had to quickly implement digital strategies to continue reaching customers amidst the
lockdowns. While e-commerce adoption has grown steadily over the past few months and will
likely continue to do so, spending time at shopping malls remains a popular pastime for
consumers in the region. Brands will need to be able to provide truly seamless online-to-offline
experience, ensuring that each touchpoint enhances the overall customer journey. Shopee has
also enhanced its features to replicate the offline shopping experience. This includes providing
an integrated payments and logistics ecosystem which allows users to enjoy a fuss-free and
seamless check-out experience, as well as engagement features such as Shopee Live Chat, to
enable conversations between buyers and sellers in real-time.

3. Review of related Literature

Shopee has been the subject of several studies in the past. Our aim was to investigate and
reach a consensus on online IT users' behaviors. The findings revealed that the majority of IT
people are concerned with quality, as well as observational data that 70% of respondents agreed
that they would buy online if it make them felt reliable. Acording to the findings, the majority of
IT apps have the message is straightforward: If an e-commerce business is to thrive and prosper,
confidence and familiarly have an impact on e-commerce, with trust having a particularly strong
impact on people’s intent to buy. In this research, we analysed and calculated 3 faces of e-
commerce growth. Research discovered universal views and opinions on the psychological, and
transactional levels through these documents. The relationship between these perceptions and
their effect on e-commerce growth is critical. The following are some of the facets of this
research: Brand Trust, brand loyalty and E-WOM.
The research looked at what factors support or impede the growth of e-commerce.
Consumers have faced numerous issues relating to trust and loyalty, according to us. Acording to
the research, a large number of people believe that shopping on the internet is reasonable in the
moderm life nowaday. Instead of going out to get products, they now can be at home purchase
by using Shopee. But with elder people, an example, they have no need to shopping online
because of some reasons like quality or image of goods in the internet and real.
We proposed several main measures for both consumers and producers for deploying
ecommerce solutions, including: Setting specific goals, Assessing readiness – before
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experiencing the complexities and risks that may be emcountered, the orgnization should
carefully inspect the operation system, Design the project, Integrate the solution and measuring
effectiveness.
The research identified and explained key considerations that must be considered in order
to promote the growth and diffusion of Shopee. The results of the study will help business
participants to understand their future client’s desires and existing perferences and vice versa.
Finally, we said that future studies should focus on the evolution of Shopee and model
research. This study’s possible features include surveys in many customers who like shopping in
general and customers who usually shopping online in particular, which may result in more
precise, complete. And detailed analytical findings. Furthermore, analysis that could be used to
compare studies from differents resouces will yeild more comprehensive results.

E-WOM

Brand
Shopee
Trust
Brand
Loyalty
Fig.1: Research model

4. Methodology
In this study, descriptive method is the main method used to find out the result. Descriptive
methods emphasize objective measurements and analysis of statistics, mathematics or data collected
through surveys, questionnaires or by manipulating preceded statistical data by using computational
techniques. Descriptive research focuses on the collection of numerical data and generalizing it to
groups of people or to explain a particular phenomenon (Babbie, 2015).
In terms of the current analysis, it arms to test the factors that have an impact on the growth of
Vietnam’s largest e-commerce channel, Shopee, by applying the model research from previous
research to the e-commerce insustry in Vietnam.
E-WOM Review of customers after experiencing products or services
to someone else, orally or via written comunication
Brand trust The customer's views and expectations about the products /
services that the business is providing
Brand loyalty Positive feelings towards a brand and dedication to purchase
the same product or service repeatedly, regardless of
deficiencies, a competitor's actions or changes in the
environment.
Table1: Definition independent variable
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The questionnaire is designed to have 3 factors: E-WOM, Brand Trust and Brand Loyalty.
Questions in this survey designed in English and is used Multiple Choice and five-step Likert scale:
 1= “Strongly disagree”
 2= “Disagree”
 3= “Neutral”
 4= “Agree”
 5= “Strongly agree”
The questionnaire includes two parts:
 Part 1: Respondents’ demographics: The general information that gathers the demographic
information includes platform, gender, age, income, shopping time.
 Part 2: The evaluation and dimensions influencing e-commerce development. The purpose of
this part is to collect information relating to the evaluation of customers and figure out the relationship
of factors toward the development of Shopee.
The test had been conducted directly with 55 respondents of the relevant population. The
feedback about the survey contained some comments about the questions and the answers that hard to
understandable and some sentences that create confusion when reading. Then, the questionnaire was
edited after obtaining the feedback and review from respondents.

5. Data analysis
5.1- Characteristics of Respondents (N=55).
This study uses respondents to fulfill the questionnaire, and the detail of the respondents as presented in
Table 2:
Table 2. Respondent Data
Category Frequency Percentage
Gender Female 36 65.5%
Male 14 25.5%
Others 5 9.1%
Age 19-25 37 67.3%
Less than 18 13 23.6%
More than 26 5 9.1%
Shopping Frequency Usually 32 65.5%
Sometimes 18 32.8%
Never 1 1.8%
5.2- Descriptive Statistic
EW1 - I often read other consumers’ product review on Shopee to know what products/brands make
good impressions on others
EW2 - To make sure I buy the right product/brand, I often read other consumers’ product reviews on
Shopee
EW3 - I often consult other consumers’ product reviews on Shopee to help choose the right
product/brand
EW4 - I frequently gather information from consumers’ product reviews Shopee
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EW5 - If I don’t read consumers’ product reviews on Shopee when I buy a product/brand, I worry about
my decision
EW6 - When I buy a product/brand , consumers’ product reviews on Shopee make me confident
purchasing the product/ brand
Table 3: EWOM
Standard
N Minimum Maximum Mean
deviation
EW1 55 2 5 10.6 4.586938
EW2 55 1 5 10.4 1.0198039
EW3 55 4 5 10.2 0.9797959
EW4 55 2 5 10 2.8982753
EW5 55 3 5 10.4 3.720215
EW6 55 2 5 10.4 1.8547237

BT1 - I trust on Shopee

BT2 - I rely on Shopee
BT3 - Shopee meets my expectations
BT4 - Shopee is safe
Table 4: BRAND TRUST
Standard
N Minimum Maximum Mean
deviation
BT1 55 3 5 10.6 7.0880181
BT2 55 4 5 10.4 4.1761226
BT3 55 3 5 10.4 4.1761226
BT4 55 4 5 10.8 5.9799666

BL1 - Shopee would be first my choice

BL2 - I consider myself to be loyal to Shopee
BL3 - I wll not buy other Apps if the same products available on Shopee
BL4 - I recommend Shopee to someone who seeks my advice
BL5 - I get good value for my money
BL6 - I say positive things about Shopee to other people
Table 5: BRAND LOYALTY
Standard
N Minimum Maximum Mean
deviation
EW1 55 2 5 10.8 5.3441557
EW2 55 2 5 10.2 5.6356011
EW3 55 3 5 10.8 5.2306787

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EW4 55 2 5 10.5 6.7941151

EW5 55 3 5 10.4 4.3081318
EW6 55 2 5 10.6 4.874423

6. Discussion and recommendation

6.1: Discussion

According to the descriptive test, of the 55 participants, 36 were female (65.5%) whilst 14 were male
(25.5%) and 5 were others (9.1%) left. The majority of respondents (N=55, 67.3%) were between the
ages 19-25 whilst 23.6 percent of the respondents were less than 18, representing a total of 13
respondents and lastly, the others (more than 26) year age group made up 9.1 percent of the respondents,
which represented 5 respondents. In terms of purchase frequency on Shopee, 32 of the response were
“Usually” (65.5%) whereas 18 were “Sometimes” (32.8%) and 1 was ‘never’ left.
The results indicating that in Vietnam market, Shopee is playing a very good role of satisfy customer
with it nature of advantages: making customer feel convenient, providing better price, helping customers
save time and so on. These advantages are what people in the era of technology and in the world that
people have to work hard and have less time to go shopping looking for, making the benefit of e-
commerce is undeniable. In addtion, e-WOM, Brand Trust and Loyaty also contribute to the
development of Shopee. Creating trust in customers’ mind is a rough process that require enterprises to
invest and put effort into, but the results after would be worth the effort as they become loyal customers
and bring many benefits not only in terms of money but also image and popularity for it.
6.2: Recommendation
Through the outcome of the research, the targeted consumers in the survey indicate a low level in brand
loyalty due to their lifestyle and the effect from competitors. Thus, searching for solutions on how to
upgrade their loyalty level is essential for long-term strategy. Based on the brand loyalty model by
Aaker (1998), the next level of loyalty in consumer’s perception would be to create and achieve a
greater brand values differentiation compared to the other competitors such as the values if they switch
the brand, brand values, brand image, etc. that would help build up consumer’s commitment towards the
brand. In details, the company should enhance the relationship between brand and consumers through
marketing, promotional programs, and advertising strategies to improve the functional and non-
functional attributes of the brand to achieve customer satisfaction. However, by creating promotional
programs is not a long-term plan as other strong competitors within the market also own an enormous
financial strength to duplicate the same strategies to catch consumer’s attention and drive their purchase
intention. Hence, the promotional programs need to be planned carefully with the objectives of
maintaining and strengthening the brand images and values which hopefully will position the brand
positively in the minds of consumers, significantly affect brand trust and accordingly, enhance
consumer’s loyalty perception regarding the brand. Additionally, during the strategies mentioned above,
the company should pay attention to e-WOM and control if needed to fit with the four characteristics of
e-WOM consisting of complete comment, clear information, transparent information and open to
opinions.

7. References

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AAKER, David A. Marcas. (1998). Brand Equity: gerenciando o valor da marca. São Paulo: Negócios
Babbie ER (2015). The practice of social research. Nelson Education. Toronto, Canada.
THE FACTORS THAT AFFECT CUSTOMER LOYALTY IN SHOPEE ONLINE SHOP, Ariadanti
Nurisa Wardhani
https://dspace.uii.ac.id/bitstream/handle/123456789/11592/bismillah%20thesis%20jurnal.pdf?
sequence=2&isAllowed=y

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