BAEMIN Group Report - SMK Group 10
BAEMIN Group Report - SMK Group 10
BAEMIN Group Report - SMK Group 10
STUDENT DETAILS
Student name: Bùi Đức Thuận Student ID number: 31171020470
Student name Nguyễn Sơn Mai Vi Student ID number 31171020724
ASSIGNMENT DETAILS
Title: Group project report
Date
Length: Due date: 21/12/2019 submitted: 21/12/2019
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Chapter 1: Introduction
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.
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
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
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.
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
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
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
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
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).
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
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).
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.
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
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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