BAEMIN Group Report - SMK Group 10

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GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS
Student name: Bùi Đức Thuận Student ID number: 31171020470
Student name Nguyễn Sơn Mai Vi Student ID number 31171020724

Student name: Nguyễn Thế Hải Student ID number: 31161024471


Student name: Lương Minh Khoa Student ID number: 31171022192
Student name: Nguyễn Đức Duy Student ID number: 31161024357
Student name: Student ID number:

UNIT AND TUTORIAL DETAILS


Unit name: Service Marketing
Tutorial/Lecture: Class day and time:
Lecturer or Tutor
name: Nguyễn Thị Mai Trang

ASSIGNMENT DETAILS
Title: Group project report
Date
Length: Due date: 21/12/2019 submitted: 21/12/2019

DECLARATION
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I hereby certify that no part of this assignment or product has been
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where appropriately referenced, and with prior permission from the
Lecturer / Tutor / Unit Coordinator for this unit.
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Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above
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Chapter 1: Introduction

1. Background of the study:

Co-creation Value

"Consumers are beginning in a very real sense to own our brands and participate in their creation.
We need to learn to begin to let go."
-A. G. Lafley, CEO of Proctor and Gamble-
Co-creation awards consumers free rein to work with organization with an aim to be given assets
in the generation of their own worth contributions. The continuous cooperation of dynamic
customers in the generation of their own utilization and trade esteem upsets the long-standing
advertising universality of the organization as the mediator of significant worth. Instead of oppose
this essential move in the locus of significant worth creation, clever firms decidedly grasp the
change and look to oversee purchaser opportunities so as to tackle the shoppers' profitable
capacities. Utilizing the case of the Apple iPhone and App Store, and drawing on work hypotheses
of significant worth and Foucault's idea of government, it shows how allowing customers
opportunity through co-creation has become the best method of generation for contemporary
advertisers. (Darmony A., 2009)
The web and versatile advertising have started enthusiasm for co-formation of significant worth
characterized as the cooperation of makers and buyers in the making of significant worth through
the definition, generation, conveyance, and utilization of items and administrations.
To the conventional advertiser, the enthusiasm for the co-making of significant worth may appear
to be a move (Darmony A., 2009). Conventional brand the board was about severe control of the
structure of the item and exact execution of the advertiser characterized showcasing blend.
In any case, it's helpful to understand that the customer—either a family unit or a business—has
consistently been associated with the production of significant worth:

 In the Agrarian age, the family purchased cucumber seeds, and afterward developed the
cucumbers, salted them, and served them on supper plates so the family could appreciate
them. For all intents and purposes all the worth was made by the customer family.
 In the Industrial age the expense of produced pickles dropped and the open door cost of
time expanded, so the sound family quit pickling and purchased pickles in the market. The
family unit still needed to go to the store, purchase, bring home, and plate the pickles for
the family to encounter esteem, yet an enormous level of significant worth creation was
moved to the maker.
 In the Internet age, the open door cost of time has expanded to the point where we depict
our wealthy customers as encountering time-neediness—and Uber Eats conveys the
pickles, moving significantly a greater amount of the worth creation away from the buyer.

The present financial matters are making numerous movements of significant which are worth
creation from maker customer (Jagdish & Karl, 2018):

 ATMs move money related administrations from the bank employee to oneself serving
customers. The two banks and their clients advantage—banks however diminished costs;
clients through expanded accommodation, more noteworthy personalization, and time
reserve funds.
 Amazon shifts many retail works—looking for items, putting orders, installment
exchanges, even at times getting the item from a nearby drop-off point from the retailer to
the purchaser.
 Intel tackled the issue of item usefulness configuration by giving the architects of their
clients configuration units to tweak Intel chips.

The web has a lot of ability and the number and sorts of significant worth creation openings that it
bodes well for shoppers to perform (Jagdish & Karl, 2018):

 Group financing shifts are crafted by the broker (business credits and hazard assessment)
and financial speculators (fire up subsidizing and business thought appraisal) to the
individual speculator.
 Frito Lay broadly had the most well-known Super Bowl promotion made by buyers.
 Web gatherings moved the making of the estimation of business correspondence from
aircrafts to working from home specialists.

Online food-delivery market


2019 witnessed the expansion of the online food delivery market through apps, as more and more
consumers are willing to pay for food online.
According to new research results published by the market research company GCOMM, the
frequency of using online ordering services of urban people is quite high. Specifically, 99% of
respondents said they use online food ordering services at least 2-3 times per month. Notably, up
to 39% of the survey respondents place orders through the application 2-3 times/week. The above
figures have been clearly demonstrated by the shipper images from Now, GoFood, GrabFood ...
standing in the shops every day. (Hoai T., 2019)
In the potential consumer market, many food delivery applications have appeared and created a
"fierce" race. A survey of market research firm Kantar TNS in April 2019 showed that GrabFood
is the most frequently used food delivery brand in Vietnam with 81% of choices, followed by Now
and GoFood of Go - Viet. (Hoai T., 2019)

In the middle of the past May, the food delivery market has rookie from Korea - Woowa Brothers.
This unit has also deployed the food delivery application BAEMIN in Vietnam after acquiring the
Vietnammm application.

BAEMIN
On June 10, 2019, the top food ordering app in Korea "BAEMIN", which stands for Baedal
Minjeok, has just officially entered the vibrant Vietnamese market (Lan M., 2019), with the desire
to introduce cultural features. , the unique identity and technology of South Korea come to South-
east Asia country.
Baemin is owned by Woowa Brothers, which is the leading delivery service of Baedal Minjok
food in Korea. The news that Woowa Brothers acquired Vietnammm has been available since the
end of February. At that time, Reuters said that Korean businesses are expected to start doing
business in Vietnam in the first half of 2019. (Lan M., 2019)
Last year, the business raised $ 320 million and became a unicorn startup worth about $ 2.6 billion.
Woowa Brothers wants to use the money raised to expand the market to international markets,
including Vietnam.
Established in February 2011, Vietnammm is one of the first online food delivery service providers
in Vietnam. In 2015, Vietnammm once acquired Foodpanda Vietnam from Rocket Internet. (Tu
A., 2019)
Despite its rich potential, the Korean giant can still face many difficulties when entering the
Vietnamese market quite late. Currently, the dominant enterprises such as GrabFood, Now,
GoFood ... are still in the race to win market share. For Grab or GoViet, food delivery is an
important part of the ambition to become a daily super app.
2. Problem statement:
The study is to have a deeper understanding of the main factors of customer participation
behaviors that affect the perceived service performance and therefore has any effect on the
customer’s well being/happiness
3. Research questions:
RQ1: What are the factors of customer participation behaviors that affect the perceived service
performance?

RQ2: Will the customer’s perceived service performance affect their well being/happiness?

RQ3: Among the factors, which one is the most dominant that marketers should pay attention to?
4. Scopes and limitations:
Scope:
30 students studying in UEH-ISB

Limitations:
 Differences in language (translation between 2 languages)
 Limited time and human resource
 Small sample size

These limitations contribute to the fact that the outcome may not be the best representative results.
Chapter 2: Literature review

2.1. Define concepts/theories:


In this research, we will mainly focus on the factors of customer participation behavior
using Baemin service since they are easier to approach and obtain information from customers
than other factors. After having small discussions with our teammates in this group, we come to
the conclusion that there are too many other factors that can affect their happiness when using the
service such as effort, ability, emotions, … so we have decided to choose the most significantly
impacted factors that will be used to measure and they are more appropriate and approachable to
apply.

Name of the Authors Definition


concept

Happiness and Diener 1984 Diener and Happiness as subjective well-being (SWB) as
Well-being Lucas 2000; Yang, 2014 an affective and cognitive evaluation of life

Customer Lambert, L., Passmore, H.- Customer participation is ‘‘the degree to


participation A., & Holder, M. D. (2015) which the customer is involved in producing
behaviour and delivering the service’’; customer
participation behaviour refers to the in-role
actions for a successful service creation.
Information Marlene A. Pratt (1998) The understanding service status and
seeking parameters from actively acquire information
about how and what to do during the co-
creation process to reach the desired
performance.

Information Willem Smit (2006) Firms need the essential information that
sharing customers provide in order to create new ideas
or perform their duties

Responsible James A. Roberts (Fall 1995) Customers need to follow employees guidance
behaviour and be physically present for successful value
co-creation. Without customer responsible
behavior, little value co-creation can occur.

Personal Yufei Zhao, Li Yan, Hean Interpersonal relations between customers and
interaction Tat Keh (14 May 2018) employees (courtesy, friendliness, and respect
between customers and employees)
;customers need to act responsibly when they
recognize their duties and requirements and
behave cooperatively, in line with existing
rules and policies and according to the
directions offered by employees.

Perceived Zeithaml, 1988 The consumer’s evaluation of the service


service performance received and how it compared
performance with their expectation.

2.2. Hypotheses development


A recent study says one out of every four customers uses a food ordering app in their
mobile. Online food delivery created a new wave in the Vietnamese food industry. This trend first
started in the urban communities. Now it has spread to all provinces, cities, and towns as well.
But the reason why customers are embracing food delivery lies in this corporate driven world, and
time is an important factor. The corporate lives are programmed between 9 am to 5 pm. Students
and working professionals staying away from home are victims of unhealthy and unhygienic food.
The scenario where women staying back at home to prepare food is changing. Women are also
playing a significant role in all spheres of life. They are more competent, highly aspirational and
willing to achieve greater heights. Since then the food delivery service industry becomes more
competitive than ever with many companies and rivals such as: Baemin, Grab food, Now
delivery,etc… However, customers are gods, and each company must find a way to differentiate
and provide different quality services among competing rivals to increase its number of customers
and be more sustainable. In our research, we want to give an insight about factors that affect
customer participation behavior and the positive relationship between customer participation
behavior, customer’s perceived service performance and customer’s happiness in the case of food
delivery service company Baemin.

2.2.1. Information seeking:


In the first place, businesses are found to be very active in seeking information to increase
their competitiveness (Porter and Millar 1985; Tapscott et al. 2000).In definition, information
seeking is a subset of information behaviour that includes the purposive seeking of information in
relation to a goal (Wilson 2000). Among the important concepts in relation to information seeking
actions, tasks have been conceptualised as actions performed to achieve particular goals in
information seeking studies (Byström and Järvelin 1995; Vakkari 2003). A work task, referring to
an activity people perform to fulfil their responsibility for their work, such as a work-related task
(Li and Belkin 2010: 1771), is considered as a trigger of other types of tasks such as information
seeking tasks (Byström and Hansen 2005; Li and Belkin 2010). Information-seeking tasks refer to
the activities that users engage in for gathering information from a variety of information sources
such as people, paper-based documents, and information systems (Li 2009).
For Baemin, there are many ways to keep the flow of information between the company
and customers, for example, company can make their announcement on the app with the launch of
a promotion program. Therefore, when Baemin offer a variety of food orders for customers to
choose according to their interests with an attractive price, this can give customers satisfaction
with the service of Baemin.

2.2.2 Information sharing:


Secondly, Information sharing is an essential activity in all collaborative work. When
working together, members must continually provide information to others and to some degree
mutually understand and use information others provide (Sonnenwald, 2006). Accompanied with
many discount offers and promotion programs, Baemin can offer the customers to share their
feedbacks about the company service in order to take advantage of the information and increase
the service performance quality.

2.2.3. Responsible behavior:


Not all of the customers will be able to understand service the same way. Some of them
will require a more detailed, or simply different explanation to make a purchase. For example,
let’s say Baemin is having a hard time implementing promotion program on the company
website. The company can approach this matter in two ways:
a) As long as the customers follow the tutorial instructions it all should be fine, unless they’re
doing something wrong. Or maybe the site is not working properly.
b) Let’s follow the instructions together step by step. If it’s not going to work this time too, the
company will ask for help if there’s another way to do it.
Provide alternative ways of approaching a particular subject. If customers need an
example, come up with one. If they would prefer a step by step explanation, the company should
go for it.

2.2.4. Personal interaction:


Customer interactions may take place along a wide variety of touch points, of which each
organization may employ some subset. Some of these touch points involve direct human–human
interaction, such as when a customer talks to a bank teller inside a branch office. Although over
recent years the volume of customer interactions has greatly accelerated, a conceptual social
contract still connects companies to their customers in the desire to provide quality products and
impeccable customer service that binds both together throughout the customer’s lifetime. In
reaction to the accelerated speed and frequency, and consequently the “depersonalization”
(Joachimsthaler and Aaker, 1997) of the customer interaction, there have been numerous industry
initiatives over the past few years that have promoted concepts centering on business strategies
and approaches to maintain acceptable, if not exceptionable, levels of customer satisfaction. For
Baemin, personal interaction with customers is one of the key factors to increase their satisfaction,
especially when it comes to service encounters.

H1: Customer participation behavior relates positively to customer’s perceived


service performance of BAEMIN.
Customer participation behavior is an effective form of customer engagement widely used by
organizations (e.g., Harmeling et al. 2017; Pansari and Kumar 2017; Venkatesan 2017). From a
strategic perspective, organizations rely on this concept to draw customers closer to the brand (e.g.,
Fang, Palmatier, and Grewal 2011). Customer participation behavior varies widely from requiring
customers’ mere physical presence or information provision, to customers as active co-producers
(Bitner et al. 1997; Hsieh, Yen, and Chin 2003). Drawing on the service dominant logic of
marketing (Vargo and Lusch 2004), we define customer participation behavior as customers’
involvement in the service co-creation and delivery process by their engagement in sharing
information, making suggestions, informing personal needs, and participating in decision-making
processes (Chan, Yim, and Lam 2010). This definition underscores that the concept is a behavioral
construct with a utilitarian focus that captures customers’ investment in time, effort, and decision-
making in improving service delivery processes and outcomes (e.g., Auh et al. 2007; Haumann et
al. 2015).
For the case of Baemin, the company needs to make their customers as a core value to increase
their service performance with more profit.
H2: Customer’s perceived service performance relates positively to customer’s
happiness.
This hypothesis empirically examines the positive relationship between customer’s perceived
service performance and customer’s hapiness. Using the extended mice-quality model developed
by Zeithaml, Berry, and Parasuraman (Journal of Marketing, 52, 35-48) as a conceptual
framework, four specific factors implied by the model and by earlier studies contributing to its
development were tested.

2.3. Research Model


Based on the theoretical framework, an overview of previous studies and assumptions, the
authors proposed the following research model.
H1: Customer participation behavior relates positively to customer’s perceived service
performance of BAEMIN.
H2: Customer’s perceived service performance relates positively to customer’s happiness.

Chapter 3: Research methodology:

3.1. Sampling design:


In the purpose of finding out the well-being of customers, which are affected by the perceived
performance of Baemin, we conducted online surveys with the potential app users, specifically
the students in UEH and ISB campus. The Baemin app is familiar with the youngsters, especially
the students, so most of the interviewees know quite clear about the app. Besides, the online
surveys were conducted on a large scale so it was time-saving and it effectively gave out the
results with adequate data and figures. Thus, we could have a better understanding of the factors
that have an impact on the perceived performance, leading to the final well-being of the
customers of the service. We used the method of exploratory research design to investigate a
problem which is not clearly defined, helping us to have a better understanding of existing
problem but not provide conclusive results.

3.2. Research approaches:


Due to the purpose of this assignment, we conducted a quantitative research, which we focused
on the number of respondents. With the support of google platform, we prepared the
questionnaire via Google Form and distributed the form through social networks like Facebook.
We targeted people who could have potentials and demands to use Baemin as their online-
ordering app. This convenience sampling method helped us reach as many online interviewees as
possible in a short time. During this period, we received a total of 43 respondents, who are from
16 to 25 years old within the UEH-ISB network. Some of them could also be outsiders but are
still the potential users of this app. The survey we created included numerous likert scale-based
questions and the scale ranges from 1 to 7, with 1 being ‘worst’ and 7 being ‘best’. In greater
detail, we measured the variables of Information Seeking (IS), Information Sharing (Ishare),
Responsible Behavior (Res), Personal Interaction (PI), Perceived Service Performance (PSP) and
Happiness/ Well-being (Hap). The supporting tool we used to analyze the data was SPSS.

Chapter 4: DATA ANALYSIS

4.1. Reliability level - Cronbach’s Alpha Score


a. Definition:
Overall, Cronbach’s Alpha is a measurement of internal consistency and reliability which is used
for identifying how closely a set of items is related as a group (Marketing Research, Naresh K.
Malhotra, n.d). By technical terms, it is a coefficient of consistency rather than a statistical test.
The value of Cronbach’s Alpha has to be larger than 0.6 which indicates the situation of
satisfactory internal consistency reliability (Peterson, & A., R. 1994). To be more specific, this
study contains five independent variables including a variety of items given in the questionnaire
and the Cronbach’s Alpha test for each independent variable is conducted below
b. Analysis
Information Seeking
Initially, the first predictor or independent variable - Information Seeking denoted IS was tested
with three items. With the view to examining the relationship between Information Seeking and
Perceived Service Performance (PSP) and after that influence Happiness/Well-being of the
customers, three following questions has been used.

Obviously, the result shows the Cronbach’s Alpha score which describes a situation of good
internal consistency. The Total Correlation value of all three items are larger than 0.3 and the
Cronbach’s Alpha if Item Deleted are larger than 0.6. Subsequently, the result can satisfy the
reliability requirements

Information Sharing

Secondly, the Crobach’s Alpha test of the following predictor which is Information Sharing

denoted Ishare including four questions is added.


Based on two table above, it is noticeable that the overall Cronbach’s Alpha score is 0.913 which
is larger than 0.6, the Total correlation of all items are larger than 0.3 and the Cronbach’s Alpha
if Item Deleted are also larger than 0.6, hence, the consistency and reliability of this predictor is
acceptable.

Responsible Behavior

Responsible Behavior is the third tested independent variable denoted Res which consist of three
following items.

As shown in the tables above, the overall Cronbach’s Alpha score is 0.890 which is larger than
0.6 and all of the three items have qualified total correlation which are larger than 0.3. Therefore,
these items are suitable for further analysis.

Personal Interaction

Fourthly, the reliability of Personal Interaction denoted PI was tested and this independent
variable comprises of four items.
Accordingly, it can be interpreted that Personal Interaction has the overall Cronbach’s Alpha
score of 0.91 which is larger than 0.6 indicating a good situation. Moreover, the Total-
Correlation of the four items are larger than 0.3 which is eligible for further analysis.

4.2. Correlation

Generally speaking, correlation refers to a statistical method which enables researchers to


examine the strength of associative correlation between pairs of variables. In other words, it
helps to figure out the linearity degree between paired observations on two quantitative variables
X and Y (Marketing Research, Naresh K. Malhotra, n.d).

In addition, the value of Pearson correlation could be positive, negative or zero and each value of
correlation will indicate different understanding about the relationship between these variables
(Jason Brownlee, 2018). The positive Pearson correlation of more than 0.5 means that both
variables are strongly correlated to each other. The Pearson correlation of less than 0.5 indicates
a situation of low correlation of paired variables. Lastly, the value of Pearson correlation is zero
meaning that the variables are not correlated to each other.

Correlations

IS Res Ishare PI PSP

Pearson Correlation 1 .404* .562** .336 .559**

IS Sig. (2-tailed) .027 .001 .070 .001

N 30 30 30 30 30
Res Pearson Correlation .404* 1 .782** .598** .472**
Sig. (2-tailed) .027 .000 .000 .008
N 30 30 30 30 30
Pearson Correlation .562** .782** 1 .698** .362*
Ishare Sig. (2-tailed) .001 .000 .000 .049
N 30 30 30 30 30
Pearson Correlation .336 .598** .698** 1 .335
PI Sig. (2-tailed) .070 .000 .000 .071
N 30 30 30 30 30
Pearson Correlation .559** .472** .362* .335 1
PSP Sig. (2-tailed) .001 .008 .049 .071
N 30 30 30 30 30

*. Correlation is significant at the 0.05 level (2-tailed).


**. Correlation is significant at the 0.01 level (2-tailed).

As easily be seen from the Correlations table above, it is highly noticeable that the p-value of
three independent variables namely Information Seeking, Information Sharing, Responsible
Behavior are 0.001, 0.008, 0.049, respectively, smaller than 0.05. Only p-value of Personal
Interaction is 0.071 > 0.05. As a result, it is acceptable to conclude that there is a statistically
significant correlation between these three independent variables with the dependent variable
Perceived Service Performance (PSP) and not statistically significant between Personal
Interaction and Perceived Service Performance. Furthermore, in the situation that the p-value is
less than 0.05, the Pearson Correlation (r) index should be appropriately taken into account.
Accordingly, it is eligible to have a conclusion that Information Seeking (IS) and Responsible
Behavior (Res) have the strongest correlation with the highest Pearson Correlation of 0.559 (>
0.5) and 0.472 (between 0.3 and 0.5); Information Sharing (Ishare) have the weakest correlation
with the smallest Pearson Correlation of 0.362 (< 0.3).

4.3. Multiple Regression Analysis


Theoretically, multiple regression analysis facilitates the prediction of the value of Y (Student
Motivation) for given values of X1 (Classroom Environment), X2 (Teachers Behavior), X3
(Teaching Method), X4 (Self-motivation) and X5 (Peer Relationships). The multiple regression
equation of Y on X1, X2, X3, X4 and X5 is given by: Y = b0 + b1*X1 + b2*X2 + b3*X3 +
b4*X4 + b5*X5 where:

 b0 is the intercept
 b1, b2, b3, b4 and b5 are the slope parameters in linear regression equation and are also
called regression coefficients

a. R-Squared

i. Definition

In theory, R-Squared refers to the interpretation degree of dependent variables given independent
variables in the regression model (Adam Hayes, 2019). This value ranges from 0 to 1 and it is
included in the Model Summary table. Additionally, it should be noted that the more the value
goes to 1, the more it is meaningful.

ii. Analysis

*. Relationship between Perceived Service Performance and Customer Happiness/Well-


Being

According to the table expressed above, the adjusted R-Squared indicates the total proportion of
dependent variable that can be explained by other independent variables. Therefore, the result
shows that there is 23.4% of Customer Happiness/Well-being can be explained by Perceived
Service Performance (PSP). Besides, it is noted that the result is relatively low (lower than 50%),
which means that the research model does not have sufficient independent variables. Therefore,
in order to improve the model in future research, it is properly considered to add more
meaningful and related independent variables by deeply and thoroughly researching.
As the results shown above, the Sig. value (p-value) indicates whether the impacts of
independent variables are identical to each other so that further regression analysis is meaningful.

Specifically, the Sig. value above is lower than 0.05 (0.000 < 0.05). Hence, it is eligible to
conclude that the regression model can statistically significantly predict the outcome variable.

We can see, Beta of Perceived Service Performance = 0.484. From that results, we can conclude
that the Perceived service performance positively relates to Customer well-being/happiness.
*. Relationship between four factors: Information Seeking, Information Sharing,
Responsible Behavior, Personal Interaction and Customer Happiness/Well-Being

According to the table expressed above, the adjusted R-Squared indicates the total proportion of
dependent variable that can be explained by other independent variables. Therefore, the result
shows that there is 44.1% of Perceived Service Performance (PSP) can be explained by four
factors: Information Seeking, Information Sharing, Responsible Behavior, Personal Interaction.
Besides, it is noted that the result is relatively low (lower than 50%), which means that the
research model does not have sufficient independent variables. Therefore, in order to improve
the model in future research, it is properly considered to add more meaningful and related
independent variables by deeply and thoroughly researching.

As the results shown above, the Sig. value (p-value) indicates whether the impacts of
independent variables are identical to each other so that further regression analysis is meaningful.

Specifically, the Sig. value above is lower than 0.05 (0.000 < 0.05). Hence, it is eligible to
conclude that the regression model can statistically significantly predict the outcome variable.

According to the Coefficients table above, the first vital statistics that should be taken into
consideration is the Sig. value. It is easily observed that the independent variables which
statistically significantly contribute to determine the dependent variable include Information
Seeking - IS with the p-value = 0.005 < 0.05 and Responsible Behavior (Res) possessing the p-
value = 0.044 < 0.05.

In other words, it can be interpreted that these two independent variables can greatly be utilized
in predicting the dependent variable, Perceived service performance (PSP). On the other hand,
two remaining independent variables namely Information Sharing - IS with the p-value = 0.125 >
0.05 and Personal Interaction- PI with the p-value = 0.413 > 0.05 are not statistically significant
in determining the dependent variable Perceived service performance (PSP).

Subsequently, the regression equation can be formed as follows:


PSP = 0.905 + 0.427*IS + 0.573*Res.

Moreover, the impact degree of the factors on Student Motivation can be examined based on the
Standardized Coefficients Beta. The result illustrates that Responsible Behavior (Res) is the most
important factor which contributes to determine Perceived service performance (PSP), obtaining
the highest Beta = 0.573, followed by Information Seeking (IS) with the Beta = 0.427.
Additionally, the VIF results of IS and Res are all below 10 and all Tolerance score is larger than
0.1, which means there is no multicollinearity situation.

Chapter 5: Discussion, Recommendation and Conclusion

I. DISCUSSION
Following the analyzed results from the collected data of the questionnaire, it can be concluded
that among the 4 factors: Information Seeking, Information Sharing, Responsible Behavior and
Personal Interaction, only 2 factors which are Information Seeking and Responsible Behavior
have positive effects on Perceived Service Performance. At the same time, Perceived Service
Performance is also proved to affect the customer’s Happiness/Well Being.

II. RECOMMENDATION
1. Generate motivation for value co-creating through Information Seeking
Customers seek information so that they can have an overview about the service
specifications, process and other related parameters (Yi and Gong, 2013). From the Information
Seeking part of the questionnaire, it can be seen that customers actively look for information
about the service before they actually try it out. This, therefore, positively affect their Perceived
Service Performance because by acknowledging the service in advance of trying it, the
customers have productively play their role and help completing the process more effectively.
Implicating to BAEMIN, customers tend to get to know what the app is for, what is the
difference that it has other than the existing food delivery service in Vietnam,... The company’s
marketers can take advantage of this and develop more on the factor. Some recommendations
would be:

 Create affiliate programs that reward users each time they successfully introduce
BAEMIN to another customers: users who can convince others to use the app should
be provided with a discount code or a coupon. By doing this, BAEMIN would effectively
make use of the Information Seeking factor by spreading the information not only
through direct marketing but also through their customers, extending their public
recognition as well as keeping their existing users satisfied with the service.
 Run advertisement of the BAEMIN app installation where customers can easily find
and download: the company should choose their advertisement place wisely so that new
customers can effortlessly see and see it regularly. At the same time, the procedures that
lead the customer to download should also be very simple in order to not lose the
customers’ interest. For example, the advertisement can appear on the social media
(Facebook, Instagram, Youtube,...) where it can approach a wide range of new customers
to stimulate their curiosity; also, the ad should include as download button that lead the
customers straight to the Appstore (Apple) or Playstore (Android) to install the app.
 Giveaway different coupon/voucher/discount code campaigns to promote customers
seeking for information of the campaign: by releasing multiple coupons, vouchers,
discount codes each week and on special occasions, BAEMIN can attract its users’
attention and they will therefore, find more information on how to use the promotions
(when can they use, what is the minimum order and maximum discount amount,...). This
would positively increase the current users’ re-creation

2. Generate motivation for value co-creating through Responsible Behaviour


According to the questionnaire results of the Responsible Behaviour part, it can be seen that by
using the right strategy to increase customers’ Responsible Behaviour, firm can make their
service delivering process more efficient and as a result, lift up the customers’ satisfaction about
the service they perceived. The reason for that is because when the customers have to be
responsible for their purchase of the service, they can feel more involved in the service
delivering process rather than just a receiver and this, resultedly leads to users’ motivation the
co-create value with firm. Some recommendations will be presented below gathered from our
research data:
 Create a clear guidance for customers to complete all requirements of creating a
BAEMIN account as well as making an order: when the required procedures for
signing up for an account as well as placing an order on the app is uncomplicated, both
new customers and current users can feel more motivated to participate in using the app
more often and more responsibly. There are some examples such as: auto finding location
of customer, fast filling information form (pre-collect data: name, phone number,
email,...), easy order tracking, cancel or add-on order/reorder,...
 Training staffs to have a friendly and willing-to-help attitude: when the consumers
feel appreciated by the company’s employee (especially the customer service
department), they will naturally gain more sympathetic with BAEMIN and as a result, be
a more responsible user of the app. The company can set the “hard” and “soft” customer-
defined standards for the employees to always make sure that the customers are satisfied

III. CONCLUSION
The research was conducted successfully, giving us a more precise perception about the
relationship between the factors of customer value co-creation and how it affect their perceived
service performance and lastly indirectly affect the customer’s happiness/wellbeing through the
case of BAEMIN. Value obtained from co-creation could help satisfy customers and
simultaneously benefit firms (Maglio et al., 2009, Edvardsson et al., 2011). On the other hand,
our research was conducted with very little studies and theories searched. This is our limitation
that we did not include enough factors that affect students motivation. In the future research, we
need to research more on the model to have a completed model that will give more precise result
and will be reliable to give recommendations.
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