The perceived value of estore EATDELI towards online purchasing: The case of UboFood Vietnam Joint Stock Company THUONG MAI UNIVERSIY INTERNATIONAL TRAINING INSTITUTE ~~~~~o0o~~~~~ INTERNSHIP REPORT TOPIC The perceived value of e store EATDELI towards online purchasing The case of UboFood Vietnam Joint Stock Com.
CONTEXT AND JUSTIFICATION OF THE RESEARCH
The Covid-19 pandemic and the rise of social media have significantly transformed marketing strategies, making social media an essential channel for businesses In Vietnam, a remarkable 77% of consumers actively seek information about various products online and through social networks, while 79% express a willingness to explore new brands in food and fashion The importance of a multi-channel shopping experience has become increasingly evident, with 82% of online shoppers conducting research before making purchases Notably, even in physical stores, 39% of shoppers consult social media reviews, highlighting the critical role of digital platforms in consumer decision-making.
Online shopping services have become a central focus of e-commerce, driven by high revenue potential and low risk in the retail sector With a young population, widespread social media usage, and a growing demand for clean food sources in Hanoi and nationwide, consumer shopping habits are evolving As preferences shift between traditional markets and online stores, this research aims to enhance customers' perceived value of the EatDeli e-store.
AhmadRezaAsadollahi et al (2012) highlight the significance of analyzing factors that influence consumers' intentions to shop online, emphasizing its critical role in e-commerce and marketing Their study utilizes a model to explore how perceived risk, convenience, and return policies affect online shopping attitudes, subjective norms, and perceived self-esteem This research underscores the importance of understanding consumer behavior in the digital marketplace.
RESEARCH OBJECTIVE
The study was carried out to achieve the following objectives:
Firstly: Determining the components of customers’ perceived value of service quality at EatDeli
Secondly: Analysis of the current situation of factors constituting customer's perceived value of service quality at EatDeli
To enhance customers' re-purchase intentions at EatDeli, it is essential to implement various solutions that boost perceived value and improve customer satisfaction By focusing on these areas, EatDeli can create a distinct competitive advantage, ultimately attracting and retaining customers who utilize their online food shopping services.
As online shopping, particularly in the food sector, continues to grow, understanding customers' perceived value at EatDeli is crucial for enhancing consumer value and service quality This study aims to explore the relationship between perceived value dimensions and online purchase intentions, emphasizing the importance of identifying key perceived values in the context of consumer behavior and e-commerce By examining the factors that influence consumer intentions in online shopping, this research will provide valuable insights and recommendations to improve customer value and foster trust when ordering from EatDeli.
SCOPE OF THE RESEARCH
This study aims to improve the perceived value of the online food shopping experience on the EatDeli Fanpage by identifying key factors that influence customer perceptions.
The research is concentrated on Hanoi, the capital of Vietnam, which is recognized for its high demand for clean food and organic products EatDeli, a new player in the market, targets consumers in the inner city districts of Hanoi, specifically focusing on homemakers and office workers who often lack the time to visit traditional markets This demographic is increasingly turning to online platforms for their food purchases, making them a key audience for EatDeli's offerings.
The topic was studied at the Eat Deli e-store project of Ubofood Vietnam Joint Stock Company.
During the internship, the author focuses on report and thesis writing, analyzing customer perceived value related to the Eat Deli project at Ubo Food Vietnam Joint Stock Company This analysis is based on financial statements, business results reports, and research papers, utilizing data collected from 2019 to May 2022 to draw objective conclusions.
METHODOLOGY
Data collection methods
Secondary data is collected from two data sources inside and outside the company to serve the research topic as the basis for the topic analysis:
Internal data sources for analysis include business activity reports, website performance metrics, customer service efficiency forms, personnel assessments, and financial statements External data sources encompass references from academic lectures and textbooks that highlight the perceived value of Thuong Mai University, as well as reputable online documents related to e-commerce and customer benefits.
In addition, information is also searched through forums, articles at the library, and articles in electronic newspapers or magazines.
Primary data, which is collected for the first time and organized by the researcher, is crucial for addressing urgent issues Its direct collection method ensures higher accuracy In this study, primary data was gathered through a customer survey, providing valuable insights for effective problem-solving.
The survey consists of multiple-choice questions designed to gauge customers' perceptions, understanding, and evaluations of service attitudes and quality This approach aims to assess customer sentiments towards the Eat Deli e-store, providing valuable insights into their experiences and satisfaction levels.
The investigation aims to collect reviews from customers about the company’s service provision status From there, evaluate the effectiveness of the operation and offer a reasonable solution.
Objects of investigation: The questionnaire is a simple multiple-choice question for customers who regularly order from the company.
Form of investigation: Building a survey form with multiple-choice questions related to the research problem Build and distribute 30 questionnaires to customers, then collect and analyze.
Advantages: Interviewing customers who have bought products of the company the subject is researching, thereby exploiting the results with high accuracy.
One significant disadvantage is the challenge of obtaining a clear and objective assessment of the market and the company's sales management process Additionally, it necessitates that researchers possess strong analytical skills to effectively interpret and select appropriate responses.
Data processing method
They were conducted by the focus group discussion method to supplement and correct the scale of perceived value components.
Synthetic-inductive methods consist of two complementary approaches: the synthetic method, which emphasizes the presentation and causal explanation of facts, and the inductive method, which highlights the relationships between these points to establish overarching rules.
The dramatic method involves using specific examples to illustrate a rule, making it effective for testing theories and hypotheses Its primary aim is to draw conclusions that logically follow from the provided reasons By demonstrating these reasons through concrete examples, the method effectively leads to well-supported conclusions.
A quantitative method involves a systematic and empirical examination of observable phenomena using statistics, mathematics, or computer engineering This approach focuses on understanding relationships in theory and research from a deductive perspective.
This article discusses the use of Microsoft Excel, a leading spreadsheet program, for synthesizing and analyzing data Excel offers various tools for statistical data analysis, enabling users to organize, present, tabulate, graph, and analyze data effectively Ultimately, after aggregating, classifying, and selecting the data, users can draw meaningful conclusions from their analysis.
The study utilizes descriptive, synthetic, and comparative statistical methods to evaluate the factors influencing customer perceived value in EatDeli's online food shopping service.
Investigative method: Build a questionnaire with multiple-choice questions related to the research problem Build and issue customer surveys (60 survey ballots), then collect and process information and data.
Step 1: Determine the objectives and content to be researched.
Step 2: Design the questionnaire: Multiple choice questions related to the topic. Step 3: Send the questionnaire after design to customers who have purchased through the online food exchange Eat Deli; the questionnaire after the customer has answered will be aggregated and processed data.
Step 4: Handling: Select honest and correct questionnaires, and remove invalid votes Synthesize and process data from which to draw comments and conclusions. Distributing survey form: 90 ballots
Number of votes collected: 55 votes
From those data, data processing, and analysis, conclusions are made.
LITERATURE REVIEW 6 2.1 THE BASICS OF PERCEIVED VALUE
Definition of perceived value
Perceived value, as defined by Zeithaml (1988), refers to a consumer's overall evaluation of a product or service based on their assessment of what they receive in relation to what they spend Monroe (1990) emphasizes that this perception reflects the balance between the perceived quality or benefits of the product and its cost Additionally, Butz & Goodstein (1990) highlight that customer perceived value encompasses the emotional connection formed between the customer and the supplier after experiencing the product or service, leading to a sense of added value.
Customer perceived value, as defined by Anderson, Jain, and Chintagunta (1993), refers to the monetary value that customers associate with the technical, economic, service, and social benefits they anticipate from a product This perception is influenced by the price they pay and the costs and offerings from competing suppliers.
According to Gale (1994), customer perceived value refers to the perceived quality relative to the price paid for a product It reflects the customer's assessment of a company's offerings in comparison to those of its competitors.
Perceived value, as defined by Cronin et al (1997), encompasses the interplay between service quality and the benefits—functional, social, and economic—that a customer gains, alongside the sacrifices of time, effort, and money required to access those services This concept is further shaped by the individual's experiences with the services received.
Customer perceived value, as defined by Woodruff (1997), encompasses how customers appreciate, perceive, and assess a product's features and performance It reflects the outcomes and benefits derived from using the product, which ultimately help customers achieve their goals and objectives in various use cases.
The perceived value of a customer is defined as the difference between the total value received and the total cost incurred It encompasses the benefits that consumers anticipate from a product or service, while total costs include all expenses associated with comparing, purchasing, and utilizing that product or service.
The role of perceived value
a Perceived value and customer choice
Bartering is a fundamental business activity where enterprises exchange goods and services to meet their needs It is one of four primary methods of acquiring products, alongside self-production, coercion, and begging In a barter system, individuals obtain desired outcomes by offering something that fulfills the other party's requirements, facilitating a mutually beneficial exchange.
There must be at least two sides.
Each party must have something of value to the other.
Each party must deal with and deliver its goods.
Each party has the right to accept or reject the proposal from the other party.
Each party is convinced that it wants or doesn’t want to deal with the other party.
Communication is fundamentally a process involving an exchange between two parties, particularly in the context of consumer decision-making When faced with numerous products and services that meet specific needs, consumers aim to maximize their utility by evaluating the costs and benefits associated with each option This evaluation shapes their perceived value of a product or service, serving as a key criterion for determining its worth Consequently, the assessment of customer value is crucial in influencing purchasing decisions Research indicates that perceived value significantly impacts customers' purchase intentions and loyalty.
Grewal & Ctg emphasize that customer value significantly influences repeat purchases and brand loyalty When customers perceive higher value, their willingness to buy increases while their search for alternatives diminishes Therefore, the essential strategy for companies to enhance customer choice and commitment lies in delivering exceptional value.
Customer’s perceived value determines consumers’ choice of products/services and their loyalty Therefore, perceived value will determine the success of a competitive strategy.
Competition is fundamentally a battle of awareness rather than a contest of products While many believe that the best product will ultimately prevail, the reality is that there is no definitive "best" product in the market.
In today's competitive landscape, success hinges on understanding customer perceptions, which are often deeply ingrained and challenging to alter Consumers typically associate themselves with specific experiences within a product category, making it essential for businesses to focus on delivering exceptional value rather than merely competing with rivals By offering significant benefits, companies can effectively attract, win, and retain customers, ultimately boosting their market share and profitability.
To develop an effective competitive strategy, businesses need to comprehend how customers perceive the value of their products and services Understanding customer expectations is crucial for guiding decisions related to product offerings and investments aimed at enhancing customer satisfaction Customer insights serve as the cornerstone of a strategic framework that aligns activities to deliver exceptional value to target audiences.
Measuring customer perceived value
When making a purchase, customers prioritize the benefits of a product over its functionality For instance, a buyer selects a computer not just for its hardware, but for the value and advantages it offers Ultimately, customer perceived value is shaped by the balance between the perceived benefits and the perceived costs associated with the product.
Figure 2.1 The formula for measuring perceived value
The CPV is an evaluation done by a customer on what value a product or a service would be able to provide if they buy it by paying money.
Note: the benefits and costs also include the emotional benefits and costs.
Elements of customer perceived value
According to Sheth et al (1991), perceived value consists of 5 elements: a Functional Value
Research by Ok-Kim and Jin (2001) highlights that perceived shopping efficiency, characterized by convenience and speed, significantly influences online shopping behavior Online retailing is recognized as a more convenient and time-saving option compared to traditional shopping methods (Hsin Chang & Wang, 2011; Lee, Eze, & Ndubisi, 2011) This efficiency enhances the functional value of online shopping, leading to an increased intention among consumers to make larger purchases (Pavlou, 2003).
Refers to customers’ economic benefits derived from attributes of products and services (features, utilities, etc ). b Epistemic Value
According to Ok-Kim and Jin (2001), perceived shopping efficiency, convenience, and speed are crucial factors in online purchasing Online shopping is recognized as the most effective method for accepting and exchanging offers, offering significant advantages in convenience and speed Scholars such as Hsin Chang & Wang (2011) and Lee, Eze, & Ndubisi (2011) have highlighted that internet retailing is not only more convenient but also saves time compared to traditional shopping methods Additionally, the efficiency of online shopping enhances its functional value, as noted by Pavlou (2003) This approach also provides benefits by introducing new features that stimulate customer curiosity and creativity, addressing their knowledge development needs while delivering emotional value.
Emotional responses play a crucial role in shaping customer satisfaction, as they reflect the pleasure derived from a product or service (Parasuraman & Grewal, 2000; Sweeney et al., 1998) Strong emotional connections foster customer loyalty, creating significant barriers for competitors (Crosby & Johnson, 2005) Moreover, the emotional value generated by service providers can evoke profound psychological states in customers, enhancing their overall experience (Sheth et al., 1991).
Refers to the values related to emotions or emotional state, happiness, and sadness when buying products or services and impressions of customers in consuming products and services. d Social Value
Social value, as defined by Sheth et al (1991), is the recognition and esteem that individuals receive from their social group when using certain products or services It emphasizes the alignment between the customer's desired image and the perceptions held by others Furthermore, social values encompass personal beliefs, social integration, and the influence of recommendations from friends and family (Neringa et al., 2012).
Social value: Refers to social benefits, that is, the value recognized by customers, appreciated, or entered into social relationships. e Conditional Value
Conditional value is derived from specific purchasing situations and contexts, influencing consumer decision-making processes (Long & Schiffman, 2000) It encompasses a set of choice contingencies, highlighting how situational factors can provide temporary functional and social utility (Pope, 1998) Elements such as income, stock availability, and fashion trends can significantly affect a consumer's purchasing decisions Additionally, various research avenues emphasize the role of experiential learning in shaping conditional value (Pihlström & Brush).
Consumer purchase intentions are significantly influenced by their individual circumstances, as various factors affect their final decisions To enhance online purchasing intent, retailers must establish a favorable environment that caters to these diverse consumer situations.
HYPOTHESES DEVELOPMENT
2.2.1 Relationship between perceived value and customer satisfaction
Customer satisfaction measures the gap between customer expectations and the actual service received, but it is crucial to differentiate it from customer perceived value, as many people mistakenly conflate the two While organizations often use customer satisfaction to gauge evaluations of their products or services, it is important to note that a customer can be satisfied yet still perceive the value of the product or service as low, particularly if the cost is perceived as high Customer satisfaction reflects feedback after a purchase, whereas customer perceived value is shaped throughout the entire purchasing process, from pre-purchase to post-purchase experiences.
Customer perceived value is evident throughout various stages of the buying process, whereas customer satisfaction is realized only post-purchase Woodruff and Gardial (1996) define customer satisfaction as the positive or negative perception customers have regarding the value they derive from using a product or service.
Perceived value significantly influences customer satisfaction, creating a strong connection between the two concepts Understanding customer perceived value enables organizations to determine what products or services to develop, while assessing customer satisfaction provides insights into their performance.
2.2.2 Relationship between Customer Perception of Service Quality and Customer Perceived Value
Professional services are distinguished by their exceptional quality and reliability, largely attributed to the characteristics of frontline employees Key attributes such as expertise, strong interpersonal skills, a customer-oriented approach, technical proficiency, and a deep understanding of customer needs contribute significantly to this high standard of service.
According to Day and Barksdale (1992), Murali and Muralidharan (2016), and Bolzani (2018), all customers are seen as buyers, highlighting the importance for organizations to recruit employees from a skilled talent pool equipped with essential technical expertise.
Research indicates that high-quality business interactions rely on effective staffing, development, and training, as emphasized by Garavan (1997), Hurrell and Scholarios (2014), and Utkarsh (2018) Developing interpersonal communication skills is essential, as the expertise of frontline workers and their ability to leverage technology can enhance the perceived value of services, according to Breidbach and Srinivasan (2013) Additionally, studies by Brady and Cronin (2001) and Jiang and Cardinali (2018) highlight a strong correlation between customer satisfaction and perceived service quality To enhance service value from the customer's perspective, service providers must be proactive in adapting to changing needs and delivering effective solutions.
Research by Cronin et al (2000) and Bauer et al (2006) highlights a positive correlation between service quality and customer perceived value (CPV) This indicates that enhanced service quality directly influences CPV Consequently, the four service quality variables identified in the conceptual model are expected to positively affect CPV Based on these findings, the following hypotheses are proposed.
H1a, H2a, H3a, H4a: Customers' perception of the company's service quality in general includes (1a) interpersonal communication skills, (2a) technical skills, (3a) technology, and (4a) reliability is positively related to customer perceived value.
2.2.3 Relationship between Customer Satisfaction and Repurchase Intention
Oliver (2014) and Nagengast et al (2014) support the view that there is a positive relationship between behavioral intention and satisfaction In addition, Bufquin et al.
Research shows that behavioral intentions, particularly repurchase intentions, are closely tied to customer satisfaction Studies by Brady et al (2001), Cronin et al (2000), and Johnson and Fornell (1991) highlight that a positive relationship exists between these two factors Zeithaml et al (1996) further emphasize that highly satisfied customers are more likely to recommend a product and express intentions to repurchase it Thus, enhancing customer satisfaction is crucial for increasing repurchase intentions.
These two factors are favorable In addition, research by Cronin and Morris
(1989), Cronin and Taylor (1992), Anderson and Sullivan (1993), Gotlieb et al.
(1994), Patterson et al (1997), and Lajevardi (2014) also showed that there is a positive relationship between repurchase intention and satisfaction We then hypothesize 7a:
H7a: Customer satisfaction has a positive effect on repurchase intention.
PROPOSING A RESEARCH MODEL
The proposed research model is primarily grounded in Zeithaml's (1988) framework and the SERVPERVAL scale developed by Petrick (2002) In Vietnam, this model has been utilized by researchers to assess the perceived value across various service types.
Source: Proposal of the researcher
Petrick (2002) created a perceived value scale specifically for SERV-PERCIVAL services, utilizing a perceived value measurement model This study customized the scale to align with the context of online food shopping services, ensuring relevance and accuracy in its application.
Emotional ValueSocial ValueEpistemic Value
UBOFOOD VIETNAM JOINT STOCK COMPANY: RESEARCH
History of formation and development
In December 2019, the Covid-19 pandemic and the enforcement of social distancing measures led to a temporary halt in the consumption of agricultural products at traditional markets In response, Hanoi City, alongside local businesses, initiated the development of a food supply chain via an e-commerce platform, facilitating online shopping to reduce large gatherings in supermarkets and stores Leveraging 15 years of experience in the clean food sector, UboFood's founder, Dao Ngoc Nam, invested in connecting suppliers to ensure that consumers receive the freshest, safest, and highest quality products during the pandemic.
Ubofood Vietnam Joint Stock Company, part of AnVietGroup since April 2019, operates an innovative e-commerce platform that connects consumers directly with food manufacturers This system emphasizes transparency, quality assurance, and safety, allowing consumers to easily consult and select products that meet their needs With the motto, "Just sit at home to buy clean agricultural products; you can have whatever you need!", UboFood aims to simplify the purchasing process for high-quality agricultural goods.
Do Food Joint Stock Company has launched an electronic trading platform, UboFood, to directly connect consumers with clean agricultural products, eliminating traditional intermediary wholesale stages This innovative approach allows farmers to offer their products, such as litchi, passion fruit, and dragon fruit, at competitive prices Furthermore, UboFood actively collaborates with local farmers facing challenges in selling their produce and has significantly boosted its advertising efforts on Facebook and other platforms, resulting in tens of thousands of app downloads.
In response to the Covid-19 pandemic, the implementation of e-commerce sales strategies has significantly boosted online food purchasing, leading to a remarkable doubling of Ubofood's revenue over the past year.
Organizational structure
Figure 3.1 The organizational structure of Ubo Food Vietnam Joint Stock
The Technology Department is dedicated to resolving website and application errors while collaborating with the operations team to enhance user experience It is responsible for managing maintenance, upgrades, technical assurance, and information security, as well as overseeing project appraisals The department also develops and implements comprehensive plans and regulations related to information technology safety Additionally, it undertakes projects that utilize information technology for the collection, storage, and processing of digital data to support company leadership in decision-making, alongside providing regular reports and evaluations of its work progress.
The Marketing Department plays a crucial role in a company's success by crafting targeted communication plans to promote products available on the website through various channels, including social media, newspapers, and online advertisements Their primary responsibilities include devising, developing, and implementing effective promotional strategies while researching and understanding customer needs and market trends Additionally, the department is tasked with creating and managing content across the company's communication platforms, such as the website, fan page, and Zalo, to enhance brand visibility and engagement.
The Research and Development (R&D) department focuses on enhancing existing products and exploring new potential offerings It actively engages with suppliers to negotiate quality, pricing, and certification standards to align with customer demands Additionally, the R&D team manages inventory effectively to ensure prompt response to market needs.
Operation Dept : Organize marketing activities, find suppliers, and develop/test products for consumers Make monthly/quarterly/yearly plans for the company and monitor the progress of the set plans.
The Human Resources department plays a crucial role in the recruitment process by interviewing and selecting new employees Additionally, it focuses on enhancing workplace culture and ensuring employee welfare This department is also responsible for managing employee documentation, procedures, and records, as well as overseeing company assets.
To effectively attract qualified candidates, it is essential to collaborate with various departments to identify their specific recruitment needs This collaboration will inform the creation of job postings, including the timing and channels for distribution, ensuring a targeted approach to reach potential applicants.
The Accountant Department is responsible for generating daily financial reports that align with administrative software, overseeing monthly revenue and expenses, and managing tax payments, domain registrations, and service fees essential for the operation of the application and website, as directed by the chief accountant.
Table 3.1 The organizational structure of Ubo Food Vietnam Joint Stock
Over the years, the company's workforce has grown in both quantity and quality, with a notable increase in female employees due to the predominantly computer-based nature of the business In 2019, women comprised 54% of the total workforce, a figure that slightly decreased to 42% in 2020 However, by 2021, there was a modest increase of 2%, underscoring the significant role that female employees play in the company's operations, despite the near equal representation of male couriers due to direct delivery to customers.
In response to stringent business demands, companies are prioritizing employees with relevant qualifications and a vibrant, innovative work approach From 2019 to 2021, the workforce comprised entirely of college-educated individuals, highlighting the organization's commitment to attracting top-tier talent.
The data reveals a steady growth in the company's young workforce, with the number of employees under 30 rising from 28 in 2019 to 48 in 2022 This trend highlights the company's commitment to nurturing young talent who are resilient, enthusiastic, and capable of efficiently meeting the increasing demands of customers.
The data reveals that the sales and customer service departments are the largest within the company, consistently growing each year As a forwarding company, these two divisions represent over half of the workforce In 2019, both the sales and service departments comprised 40% of the total employees, which increased to 43% in 2020 By 2021, the sales department emerged as the fastest-growing sector, accounting for 50% of the company's total workforce Meanwhile, the business accounting department's staffing levels remained stable from 2020 to 2021, reflecting the need for highly qualified and experienced personnel in that area.
BUSINESS PERFORMANCE
Ubofood, which began its pilot program in Hanoi in 2019, has successfully established over 60 distribution and transaction points throughout the city Following its expansion into Hai Phong, Ubofood plans to further penetrate markets in Quang Ninh, Da Nang, Ho Chi Minh City, and other regions across the country.
Table 3.2 The company’s revenue table from 2019-to 2021
Source: Accounting Department of Ubo Food Vietnam Joint Stock Company The capital increase over time:
Table 3.3 First capital table at Ubo Food from 2019-2021 (unit: VND)
Source: Accounting Department of Ubo Food Vietnam Joint Stock Company
The report on UboFood Vietnam Joint Stock Company's production and business results from 2019 to 2021 highlights a comparative analysis of the company's performance over two years, specifically examining the results from 2019 to 2020 against the final months of 2020 through the end of 2021.
In the first year of business (2019), revenue is 900,000,000 Furthermore, one year later (2020), the total revenue is 9,000,000,000 VND And by the end of 2021, the total revenue will be 25,000,000,000 VND.
Compared to the first year, the company has made significant progress in many aspects in the second year Sales and service provider revenue increased compared to
In 2019, despite high expenses, total profits increased due to stable revenue streams The unstable epidemic situation in 2020 and 2021, however, led to a significant surge in e-commerce, as consumers increasingly turned to online shopping During the first half of 2020, revenue remained stable, driven by the necessity of online orders, particularly as local supermarkets struggled to meet the demands of the people in Hanoi.
This shows that the company’s business activities have achieved efficiency and tend to develop over time, promising many outstanding developments in the coming years.
MARKET AND CUSTOMERS
UBOFOOD is a pioneering Online to Offline (O2O) model in Vietnam's food industry, effectively addressing the limitations of traditional online platforms while enhancing the benefits of offline experiences.
The food market urgently needs to adopt innovative technology to minimize direct contact and reduce overcrowding in supermarkets and traditional markets By implementing these advancements, fresh food products can be delivered to consumers within 24 hours, ensuring they receive the highest quality items.
The online food ordering market is experiencing significant growth nationwide, driven by technology applications and door-to-door delivery services Major retailers like BigC, Vinmart, Bach Hoa Xanh, Saigon Co.op, and Lotte Mart are enhancing their offerings by providing online shopping services for food and goods Consequently, consumers now enjoy an increasing array of choices when it comes to ordering food online.
Online shopping presents significant challenges for UboFood, especially as competition continues to rise post-pandemic In Hanoi, the demand for clean food is substantial, particularly among individuals with higher incomes and limited knowledge about food sourcing Products like bio-meat and organic vegetables are increasingly sought after, driven by concerns over swine fever, green ear disease in animals, and pesticide contamination in traditional market produce With profit margins ranging from 15% to 30%, the clean food sector offers lucrative opportunities for businesses.
UboFood caters to customers aged 20 to 45, primarily targeting homemakers and working women who frequently utilize social media This demographic often lacks the time to visit traditional markets, opting instead to shop for groceries online during early mornings or lunch breaks to efficiently prepare meals for their families throughout the week.
UboFood delivers high-quality food products in the densely populated central districts of Hanoi, catering to a consumer base with a strong demand for online shopping and higher income levels With a focus on health and food safety, families are increasingly willing to invest in quality food for their daily meals.
DESCRIPTION OF THE COMPANY’S PRODUCTS AND MARKETS
Ubofood has gained the trust of discerning homemakers who are hesitant to download apps or change their shopping habits, preferring to personally select food for their families The platform offers a range of natural and fresh products, including bio-pork, chicken, beef, fish, vegetables, milk, dairy, poultry eggs, rice, dry goods, and regional specialties Ubofood ensures quality through a closed process that encompasses careful selection of input materials, livestock breeds, and feed, as well as stringent supervision during slaughter and processing This commitment guarantees that all food delivered is fresh and comes with a certificate of origin.
Currently, UboFood company supplies about 1,500 products from 200 suppliers in 30 provinces and cities nationwide Includes categories such as:
Ubo Garden: UboFood specializes in providing organic fruit and vegetable products grown according to Vietgap standards and fresh/frozen seafood products.
King of home kitchen: In this category will include products such as spices,marinated products and
Specialty Market: UboFood also connects with localities to bring back regional specialties for consumers, such as meat and poultry: pork, beef, and chicken.
In which bio-pork is the main product line, which consumers highly appreciate
Experience the convenience of our ready-made meal sets, designed to enhance your cooking experience Our unique, pre-seasoned products allow you to prepare delicious meals effortlessly Each set is expertly crafted with all the necessary ingredients and accessories, enabling you to cook right away and enjoy a wholesome meal without the hassle Cook now and savor the ease of eating well!
UboFood is set to launch a new service that will assist customers in hosting professional parties at home and in the workplace, featuring the expertise of top chefs.
OVERVIEW OF THE EATDELI PROJECT OF UBOFOOD COMPANY21 3.6 MAIN ANALYSIS MEASUREMENT ASSESSMENT
EatDeli, a subsidiary of UboFood Joint Stock Company, operates as a retail system utilizing a 4.0 technology platform to connect suppliers with consumers By collaborating with food chain stores, restaurants, and supermarkets, EatDeli ensures that consumers have access to high-quality, guaranteed food at competitive prices, promoting sustainable food consumption and minimizing environmental waste.
EatDeli aims to support farmers facing challenges in selling their agricultural products, particularly highlighted during the Covid-19 pandemic in Vietnam Regions like Bac Giang, Hai Duong, and Dak Nong experienced significant difficulties in product consumption To address this issue, EatDeli's team proactively promoted their offerings through their Fan Page and website, reflecting the growing trend of online food shopping in Hanoi.
EatDeli’s main products are Organic Vegetables, Prepared Foods, Kitchen Spices, and Agricultural Products With these products, EatDeli used a combination of sales via Website, mobile application,n, and Facebook Fanpage
In the digital age, a significant number of Vietnamese individuals access the Internet via smart devices like smartphones and computers Consequently, EatDeli has identified this as its main sales channel, allowing consumers to conveniently search for products online By simply entering the product name, customers can quickly find the items they need without the hassle of visiting physical stores or shopping centers.
The company’s website has basic information about the company, its services, and product groups arranged by easy-to-understand keywords so that customers can find the products they need.
Figure 3.3 List of “Prepared foods.”
Figure 3.4 The interface on the mobile application
EatDeli provides a variety of product groups, as illustrated in Figure 3.4, showcasing the user-friendly product interface that appears when customers select their desired items Additionally, customers can view their entire selection in a shopping cart before finalizing their order.
EVALUATION OF THE PERCEIVED VALUE OF THE E-STORE EAT
3.7.1 Current status of functional factors
EatDeli ensures that all its products feature clear labeling from their respective suppliers, allowing customers to easily identify the origin of each item However, this practice may not create a strong, lasting impression of the EatDeli brand itself.
Meat products, including pigs, chickens, and fish, undergo preliminary processing and are sealed in trays upon arrival at the warehouse; however, the lack of clear labeling can lead to confusion Additionally, high order volumes may result in a shortage of product stamps, leaving customers uncertain about the origins of the products they consume.
The website's connection issues frequently disrupt employees' ability to access the admin account for product updates and new activity additions, leading to customer feedback To enhance user experience on EatDeli's ordering platforms, the company should consider investing in improved technology solutions.
A recent survey revealed that 62.3% of respondents regularly use the Eat Deli mobile app for their orders, while 13.2% prefer purchasing through the website Notably, although Eat Deli primarily serves individual consumers, not all opt for online or app-based purchasing Additionally, 24.5% of customers place orders via the company's Facebook fan page.
The website's low order placement rate may be attributed to its unappealing interface, which hinders user experience and results in limited customer purchases.
Figure 3.5 Ordering form used by the customer
Source: Data from the survey that the author has compiled
3.7.2 Current status of Epistemic Value factor
In March 2021, Eat Deli introduced the Flash Sale program, running daily from 3 p.m to 5 p.m., featuring significant discounts on limited-quantity products, including 30% off frozen items and select products priced at just 1K This time frame has been identified as a "GOLDEN HOUR," when customers are most active online and eager to purchase products or services through social media.
Up to 21% of Eat Deli's customers utilize the mobile application to place orders, particularly during Flash Sales, which generate significant interest and enthusiasm among shoppers This reflects a common psychological tendency towards seeking out discounted products, while Vietnamese consumers remain committed to maintaining quality in their purchases.
Despite the implementation of Flash Sales, the revenue generated remains low, primarily due to the discounted items being frozen products or less popular goods Additionally, the costs associated with advertising are high, making it challenging for the company to achieve profitability, even at break-even sales levels.
Fl a sh Sale 21% Đầ u tuần 22%
Flash Sale Đầ u tuần Cuối tuần Không có thời gian nhất định
Figure 3.6 When customers choose to order
Source: Data from the survey that the author has compiled
3.7.3 Current status of the emotional value factor
Following a customer's order, our customer care policy includes a follow-up call to inquire about their purchasing experience and to provide a "customer gratitude" discount code Despite this effort, only 40% of customers redeem the discount code, indicating that many forget to use it.
Figure.3.7 Satisfaction level of customer service staff
Source: Data from the survey that the author has compiled
A recent survey revealed that only 3.7% of customers expressed dissatisfaction with Eat Deli's employees during their shopping experience, indicating that the majority had a positive interaction In fact, 55.6% of the 53 respondents reported being satisfied with the service provided by the customer service staff, highlighting the effectiveness of Eat Deli's team in enhancing the overall shopping experience.
Eat Deli has achieved a customer satisfaction score of 27.8%, indicating that a significant portion of customers are very satisfied with its service While this figure falls short of the company's initial targets, it highlights the need for enhanced customer care strategies to improve retention and foster loyalty among customers.
Figure 3.8 Difficulties encountered when buying goods
Source: Data from the survey that the author has compiled
A recent survey revealed that 3.8% of customers experienced challenges when purchasing products on the Eat Deli e-commerce platform, primarily due to the limited payment options available—cash and transfer This payment model poses difficulties, especially for items like squash, watermelon, and cabbage, which often do not match the exact weight ordered by customers, making pre-payment less suitable for the food business model.
3.7.4 Current status of the social value factor
Eat Deli actively utilizes social media platforms, specifically its Fanpage and Zalo, to effectively promote its products and share current offers These targeted channels enable the store to engage with customers and enhance visibility for its offerings.
Actual situation of customer outreach activities via Fanpage of Eat Deli e-store:
Eat Deli's online store has developed a strategy to engage customers through Facebook, enhancing brand visibility and fostering connections This initiative aims to effectively promote and showcase products and services, ensuring a strong presence on the social media platform.
The target audience for Eat Deli includes office workers and homemakers, as the products offered are essential daily necessities and food items Customers can discover these products and services through various platforms, particularly Facebook and mobile applications To enhance customer engagement, Eat Deli established a Facebook Fanpage and a dedicated website at http://eatdeli.vn/, along with a mobile app These platforms are interconnected, allowing customers to easily navigate between the website and the Fanpage to access more information about products, services, and app download instructions.
CONCLUSIONS AND SOME SOLUTIONS TO ENHANCE
Successes have been achieved
Through research on activities to improve the perceived value of the EatDeli online store, the company has found the following results:
The company has established a dynamic marketing department that consistently innovates visually engaging marketing campaigns Long-time customers have shown unwavering trust and support for the project since its launch Additionally, the appealing promotional programs have attracted a growing number of new customers, many of whom have been referred from the existing customer base of Eat Deli.
The company has built a solid technology operation system and a stable network system to ensure that its technology system always works smoothly, avoiding congestion when customers access it.
Unresolved problems
Online marketing efforts on Facebook have lacked investment and consistency, with the content team failing to post regularly or provide in-depth content To effectively reach a vast customer base on social networks, it is crucial for the company to understand its target market Without this understanding, formulating an effective marketing strategy and selecting the best marketing tools to connect with target customers becomes challenging.
We are underutilizing our advertising tools, resulting in low traffic to our fan page and website Our advertisements lack a compelling message and brand image, failing to attract customers effectively Additionally, our online advertising strategy for targeting potential customers is impractical and has not leveraged the company's full potential.
Cause of existence
The legal framework governing online marketing in our country remains incomplete, despite the rapid growth and evolution of online advertising in recent years Existing regulations are often vague and inconsistent, posing challenges for businesses seeking to develop their online marketing strategies through social media platforms.
The overwhelming presence of advertisements on Facebook is becoming increasingly bothersome for users In response, a Facebook representative highlighted that the platform's primary goal is to foster connections among people To enhance user experience, Facebook has revised its news ranking system, prioritizing meaningful content from friends and family over promotional posts in users' news feeds.
The Covid-19 pandemic has significantly disrupted business operations, leading to a scarcity of supplies and a decline in human resources as infection rates continue to rise.
The company lacks a robust online marketing strategy, resulting in vague and unclear goals for its digital marketing development This ambiguity hinders the ability to effectively monitor and assess the success of reaching target customers.
Despite the establishment of a dedicated customer care department, a clear strategy to enhance factors influencing customers' perceived value remains absent Furthermore, most employees have only undergone basic training and lack specialized skills, leading to a learning-on-the-job approach in their business activities.
The lack of close coordination among the company's departments has hindered effective analysis of customer behavior and needs, resulting in insufficient attention to customer emotions Additionally, the company's budget constraints limit the ability to implement long-term strategies immediately.
SOLUTIONS TO ENHANCE THE PERCEIVED VALUE OF THE E-
4.2.1 Solution about function value factor
The functional value factor significantly influences customer satisfaction by enhancing trust and the reputation of an e-store To address limitations in this area, specific solutions must be implemented to improve overall customer experience and confidence in the brand.
Invest in stamps and product labels
Investing in detailed product labels is crucial for an online store like EatDeli, as it instills customer confidence and enhances brand recognition Comprehensive labels that include essential information such as packaging dates, expiry dates, and product names are vital, as customers are less likely to purchase items lacking this transparency By providing clear and informative labels, EatDeli not only fosters trust but also ensures that consumers feel more secure in their purchasing decisions.
We are constantly investing in technology.
The level of technology is crucial for modernizing retail operations, especially for online selling, where a growing number of customers engage through numerous social media accounts To support this demand, EatDeli continually upgrades its website interface, ensures seamless connectivity to prevent network congestion during transactions, and regularly updates promotions to enhance competitiveness These efforts significantly improve service quality and help EatDeli win customer loyalty.
Apps like Grab, Go-Jek, and Baemin boast millions of users, providing EatDeli with a valuable opportunity to reach a vast audience By selling on these platforms, EatDeli can expand its customer base significantly without the need for costly marketing and advertising efforts.
These applications feature a dedicated "Mart" section for food stores, allowing businesses to save on delivery costs by utilizing the platform's built-in delivery team Additionally, they frequently offer promotions and discounts, which not only attract users but also help businesses reduce advertising expenses while drawing customers to EatDeli.
This solution is entirely doable Investing in technology helps shorten access time, improve work quality, manage customer information well, and serve quickly and accurately.
4.2.2 Solution about Epistemic Value factor
Enhancing a store's attractiveness through user-centric value is crucial for boosting commercial performance and increasing purchase intentions in online retail By stimulating customers' curiosity and creativity, retailers can provide significant benefits to users, ultimately driving engagement and sales.
Open the program “Accumulate coins to redeem gifts.”
Customers will earn Coins equivalent to 3% of their order value for every purchase made These Coins can be applied as discounts on future orders, encouraging customers to place multiple orders to maximize their rewards and receive refunds directly into their app wallet.
Customers can enhance their coin balance by referring friends and family through the app, earning an additional 30K coins This incentive not only delights current users but also attracts new customers, making it clear that shopping at EatDeli offers valuable benefits.
With the following order, the customer can only deduct up to 50% of the existing Coins; not 100% of the existing Coins should be deducted.
Program to give away Organic Vegetables or buy Organic Vegetables for 1K for orders from 200K
EatDeli e-store specializes in food, making Organic Vegetables a popular choice among female customers This program offers affordable options, ensuring that healthy eating is accessible without breaking the bank.
When customers buy an invoice of 300K or more during the promotion period, they will be given 1Kg of organic vegetables, ensuring food hygiene and safety and passing strict inspection.
4.2.3 Solution about emotional value factor
The primary objective of this solution is to foster a sense of comfort and friendliness, ensuring that customers feel secure and confident while shopping online at EatDeli When customers experience happiness and ease during their online transactions, they are more likely to make additional purchases and recommend the EatDeli e-store to friends and family.
Regularly exchange and contact customers to inform customers about customer gratitude programs and active promotions.
After a customer places an order, it is essential for customer service staff to routinely check in on the product's status, ensuring it has not been damaged during transit or delivered incomplete This proactive approach allows for quick resolution of any issues that may arise, demonstrating effective risk management while also fostering a sense of care and attention for customers.
Segment customers into distinct groups to effectively allocate staff for their care and management Implement tailored preferential policies for each group to ensure comprehensive application for all customers Additionally, establish regular incentive programs to reward long-time and loyal customers.
While implementing effective solutions to attract new customers is essential, neglecting after-sales care can be a significant oversight in the sales process Failing to engage with customers post-purchase may lead to a lack of interest, ultimately resulting in decreased customer retention and loyalty.
4.2.4 The solution to the social value factor
Maslow's hierarchy of needs suggests that once basic needs are met, customers prioritize higher-level needs like esteem and social connections To effectively address these needs, businesses should consider social values and ensure that their stores are convenient, visually appealing, and create an environment where customers feel respected.
EatDeli needs to coordinate and unify promotional strategies and branding to build a distinctive brand image.
Building a positive brand image is crucial for enhancing customer perceptions of service quality at EatDeli A strong first impression fosters trust and loyalty, making it easier to evaluate service quality and maintain lasting relationships with customers To attract new potential clients and support ongoing growth, EatDeli should invest in robust, long-term PR and marketing strategies that effectively communicate the brand's values and offerings However, it is essential to consider that advertising costs must align with the company's profit margins and financial capabilities.
Encourage existing customers, and refer new customers.
DISCUSSION 38 REFERENCES
Research indicates that customers perceive various benefits from online shopping, including social, epistemic, emotional, and conditional values To enhance these benefits, businesses can invest in systems, develop sales applications, provide shopping process guidance, and create entertaining shopping experiences As online shopping has become integral to modern life, driven by widespread Internet access and technological advancements, companies are increasingly focused on innovative strategies to boost consumer engagement and online purchases.
Emotional value plays a crucial role in predicting online purchases, as emotions significantly influence consumer behavior To effectively address this, business managers must prioritize creating an enjoyable online shopping experience This can be achieved by developing a web interface and platform that fosters interest and curiosity, encouraging consumers to engage and continue shopping online.
UboFood Joint Stock Company recognizes the critical importance of online marketing through mobile applications, websites, and Facebook Fanpage for its EatDeli project to successfully penetrate the Vietnamese market Despite their efforts, existing campaigns face challenges such as inadequate human resources and insufficient investment in advertising, leading to low customer interaction on their fan page To enhance the effectiveness of their online marketing, Eat Deli must assess current activities on social networks, focusing on feedback from existing customers and users By adopting new strategies and adapting to market trends, the company aims to improve the perceived value of its e-store The insights from the analysis titled “The perceived value of e-store Eat Deli towards online purchasing: The case of UboFood Vietnam Joint Stock Company” can guide the company in implementing tailored solutions that foster growth and contribute to the broader development of the nation.
1 Davis, F D (1989) “Perceived usefulness, perceived ease of use, and user acceptance of information technology” MIS quarterly, 319-340.
2 “How do Consumption Values Influence Online Purchase Intention among…”
3 Customer Perceived Value: “Understanding What Appeals to the Consumer”
4 Perceived Value - Explained - The Business Professor, LLC
5 Customer Perceived Value - Slide Team - slideteam.net
6 Chen, Z (2003) “Consumers’ Value Perception of An e-Store and Its Impact on eStore Loyalty Intention.” Unpublished Ph.D dissertation Purdue University, West Lafayette,
7 The Influences of Perceived Value on Consumer Purchase Intention
8 Customer Perceived Value (CPV) Meaning, Importance & Example
9 The Impact of Perceived Risk on Perceived Value and Purchase Intention in E-commerce
11 Luận văn thạc sĩ “Nghiên cứu các yếu tố tạo giá trị cảm nhận của khách hàng đối với phấn trang điểm tại thị trường TP.HCM”
12 Luận văn tốt nghiệp “Lợi ích cảm nhận của thương mại di động với khách hàng tại TP.Hồ Chí Minh: Tiếp cận với khái niệm đa chiều”
APPENDIX PHIẾU KHẢO SÁT Ý KIẾN KHÁCH HÀNG CỦA CỬA HÀNG TRỰC TUYẾN
EATDELI/ CUSTOMER SURVEY OF E-STORE
Tôi là sinh viên Đại học Thương Mại, hiện đang thực hiện dự án "Nâng cao giá trị cảm nhận khách hàng của cửa hàng trực tuyến EatDeli" Tôi rất mong quý khách hàng dành chút thời gian để hoàn thành phiếu khảo sát này, điều này sẽ giúp tôi hoàn thiện dự án Mọi ý kiến từ khách hàng đều có ý nghĩa quan trọng đối với công ty và dự án của tôi Xin cam kết rằng tất cả thông tin sẽ được bảo mật và chỉ sử dụng cho mục đích nghiên cứu.
I am a student of ThuongMai university Currently, I am working on a project,
We invite EatDeli customers to participate in a brief survey aimed at enhancing the perceived value of our e-store Your insights are invaluable to our project, and we greatly appreciate your feedback Rest assured, all responses will be kept confidential and used solely for research purposes Thank you for helping us improve your experience!