CHAPTER 2: LITERATURE REVIEW

2.1. E-commerce
E-commerce is understood to be electronic commerce, which refers to the exchange of
buying and selling activities over electronic networks, primarily the Internet. This
exchange can be business-to-business or business-to-customer.
Today, with the development of mobile devices, computers, laptops, etc., e-commerce
transactions are becoming more popular and easier than ever. E-commerce is considered
an indispensable part of today's economy. E-commerce allows businesses to cross
geographic boundaries and allows customers to buy goods anywhere, anytime. The online
marketplace enables retailers to set up shops on the Internet that can be visited and
shopped by all customers. Shoppers can sit at home and see all the items that interest
them, and the ordered goods will be delivered to their doorstep. The e-commerce sales
module makes it easy for buyers and sellers to contact with unlimited connections. In
addition,'s e-commerce helps reduce selling costs and reduce redundant selling stages,
providing buyers with a better price.
2.2. Customer Satisfaction(CS)
Customer satisfaction is the feeling of fulfillment that arises when the customer's
expectations and needs are met. CS is generated specifically through the process of
experience and accumulation when purchasing or using goods and services. The level of
satisfaction will depend on the expectations and the results received. If the expectations
exceed the actual results, the customer will be dissatisfied. On the other hand, if reality
meets or exceeds expectations, the customer will be pleased or extremely satisfied (Viet
Da, 2022). Customer satisfaction is crucial to shaping consumer behavior. Furthermore,
customer service has a substantial impact on product repurchases and consumer loyalty
(Hallowell, 1996).
Customer satisfaction frequently regards as an essential base of customer loyalty. In other
words, customer loyalty directly affects customer satisfaction(Leninkumar, 2017). As a
result, businesses must make every effort to improve their CS level by focusing on the
demands and desires of their customers(LaBarbera & Mazursky, 1983). Companies
should promote perfect ideas and methods with the necessary documentation to maximize
customer satisfaction. Besides improving customer satisfaction, service quality, product
quality, and value for money contribute to higher customer satisfaction(Khadka &
Maharjan, 2017).
Specific characteristics of a product or service and perceptions of quality have an effect
on customer satisfaction. Furthermore, emotional reactions, attitudes, and equity
perceptions of customers also affect their level of satisfaction(Zeithaml et al., 2006).
Customer loyalty, prolonging the customer lifecycle, and extending the product lifespan
are all benefits of increasing customer satisfaction. It also enhances the likelihood of their
spreading positive word of mouth to others. On the other hand, if customers are not
completely satisfied, we predict that they will spread the word about their unlucky or
unpleasant shopping experiences (Zairi, 2000).
2.2.1. Online shopping experience (OSE)
Etymologically, the experience technique is a test, an attempt, and refers to
experimentation, that is to say, the knowledge based upon sense experience as opposed to
pure and a priori knowledge. So reveling in is enabled through a man or woman getting
to know the process. Experience can also be revealed (as an instance the mystical revel
in), due to this that that revel in is part of the man or woman’s subjective notion revel in.
From an anthropological perspective, revel in refers to how each person experiments
collectively alongside together along with his non-public culture (Michaud-Trevinal &
Stenger, 2012). The experience differs from behavior, which is a visible part of the
experience (what is seen from the outside) and differs from the situation itself.
2.2.2. Seller or customer service (SS)
As mentioned earlier, the BSOS industry is considered an exponentially growing but
extremely competitive business. Then the biggest challenge of shopping online is staying
relevant and effective. To achieve this, it is imperative that internet companies adopt
customers of high-quality products and services discussed positively affect their loyalty
(Gounaris et al., 2010). When SS is highly valued online shoppers are likely to show
positive behavior intentions (Brady & Robertson, 2001). There is a demonstration about
the quality of the website design, i. H. That means online shoppers can find everything
easily important and relevant information about the product, including features,
functions, origin, and payments. Because electronic services are considered one of the
most important milestones of the network commercial hits (Sharma et al., 2005). So, CS
will behad a positive impact on both the properties and characteristics of the online
service thanks to the excellent quality of electronic services (Blut et al., 2015). It is
important to note that the delivery/service relates to online activities, businesses can
ensure that online shoppers receive the correct order (i.e. delivery time and status, order
accuracy) (Blut et al., 2016). This can be evaluated after the purchase and payment
process is fully completed. Previous experiments have shown that compared to when
shopping in-store, dissonance is more likely to occur at stages of the online purchase,
after the customer has paid. It's just because online buyers could not personally view the
previously purchased products/services purchase decision process (Keeney et al., 2006).
Internet companies, therefore, require guarantees and assurances for their customers
delivers the right products at the agreed time and date for other complaints. Therefore, we
consider execution to be one of the determining factors for the quality of electronic
services. In addition, SS also covers other aspects such as orders, payment methods,
warranty policy, and other customer services. If these elements are perfect, CS can
increase your shopping experience is good.
2.2.3. Customer Satisfaction(CS)
Customer satisfaction is the feeling of fulfillment that arises when the customer's
expectations and needs are met. CS is generated specifically through the process of
experience and accumulation when purchasing or using goods and services. The level of
satisfaction will depend on the expectations and the results received. If the expectations
exceed the actual results, the customer will be dissatisfied. On the other hand, if reality
meets or exceeds expectations, the customer will be pleased or extremely satisfied (Viet
Da, 2022). Customer satisfaction is crucial to shaping consumer behavior. Furthermore,
customer service has a substantial impact on product repurchases and consumer loyalty
(Hallowell, 1996).
Customer satisfaction frequently regards as an essential base of customer loyalty. In other
words, customer loyalty directly affects customer satisfaction(Leninkumar, 2017). As a
result, businesses must make every effort to improve their CS level by focusing on the
demands and desires of their customers(LaBarbera & Mazursky, 1983). Companies
should promote perfect ideas and methods with the necessary documentation to maximize
customer satisfaction. Besides improving customer satisfaction, service quality, product
quality, and value for money contribute to higher customer satisfaction(Khadka &
Maharjan, 2017).
Specific characteristics of a product or service and perceptions of quality have an effect
on customer satisfaction. Furthermore, emotional reactions, attitudes, and equity
perceptions of customers also affect their level of satisfaction(Zeithaml et al., 2006).
Customer loyalty, prolonging the customer lifecycle, and extending the product lifespan
are all benefits of increasing customer satisfaction. It also enhances the likelihood of their
spreading positive word of mouth to others. On the other hand, if customers are not
completely satisfied, we predict that they will spread the word about their unlucky or
unpleasant shopping experiences (Zairi, 2000).
2.2.4. External incentives (EI)
Previous research has highlighted external incentives (EI) as a factor that covers a variety
of elements, such as product pricing, promotion activities, and policies. In addition, it
also includes product features and quality, product brands, and product suppliers(Rita et
al., 2019). In particular, these factors are expected to have positive effects on customer
experience and satisfaction. Individuals who shop online may usually obtain products and
services at lower rates since they don't have to pay for extra costs, such as controlling
traffic or putting effort, time, and energy into comparing product pricing. These minimize
online shoppers' stress and offers comfort and accessibility. It includes getting lower costs
and more accurate product information from many online sellers. Moreover, customers
can experience goods and services more conveniently and rapidly than at a physical
store(Yaylı & Bayram, 2012). In addition, online businesses can provide better
promotional offerings, such as discounts (EI), to attract and satisfy customers. These
imply that promotions and lower prices affect consumers' perceptions of emotional value
and customer satisfaction. Furthermore, the distinctive features and high quality of online
household goods influence the trust and contentment of customers, which increases
customer satisfaction.
2.2.5. Security and privacy (SP)
Previous research(Liu et al., 2013) and(Rita et al., 2019) has also revealed the possible
effects of security and privacy on CS. Therefore, we include this structure group in our
survey and theoretical model. More specifically, SP can understand the security of credit
card payments from customers' purchases. In other words, it is presumed that during the
checkout process, consumer privacy is shared(Blut et al., 2016). When online firms
conduct advertising and sales transactions via their website, they should prioritize
customer trust with, for example, secure personal information and payment details. They
include customer demographics, phone numbers, mailing addresses, and credit card
information (Holloway & Beatty, 2008). Customers' trust and contentment can be
damaged if organizations fail to do so. As a result, businesses will be criticized for their
honor and customer service. In particular, once an internet shopper completes a
transaction, security, and privacy may protect them from fraud (Schmidt et al., 2008).
Furthermore, ninety percent of firms in Vietnam said the privacy law has a good impact.
In Vietnam, 92% of the respondents indicated that security and privacy had become
critical issues for their firm. Privacy and security are becoming mandatory business
requirements in Vietnam and other countries worldwide (Minh Thien, 2023). Therefore,
we contend that the SP structure is crucial for enhancing customer service and trust.
2.2.6. Personal Characteristics(PC)
Individual traits are also included in our models and surveys. (Liebermann & Stashevsky,
2002) claim that a customer's PC, including gender, age, and education level, affects their
perception of Internet use. In particular, (Simon & Peppas, 2005) discovered that men and
women had different perceptions and levels of satisfaction when using websites. Men
purchase items based on rationality and necessity. As a result, for them to select their
products and services, the brand must present compelling reasons and facts as to why
they should do so. On the other hand, women tend to shop based on emotions, so online
sellers need to build shopping experiences that directly touch emotions and elicit
emotional reactions to reach and attract women(subiz, 2018). Moreover, we claim that
because e-commerce is one of the most important aspects of Internet activity, Simon's
discovery can apply to the context of online purchasing. In addition, previous research
has also experimentally investigated distinct elements such as trust, commitment,
relationship cohesion, and social interaction linkages(Nguyen, 2020).