2. Multicollinearity phenomenon
Multicollinearity is a phenomenon in which independent variables have a very strong correlation with each other. A regression model with multicollinearity will cause many indicators to be distorted, leading to the results of quantitative analysis no longer being meaningful. Therefore, checking this phenomenon is based on the VIF index (Variance inflation factor). According to Hoang Trong & Chu Nguyen Mong Ngoc (2005). When the VIF value exceeds 10, it is a sign of multicollinearity. However, in reality, with research topics that have models and questionnaires using Likert scales, VIF < 2 will not cause multicollinearity. In this case, the VIF values of the independent variables are all less than 2, so multicollinearity does not occur. Therefore, the relationship between these independent variables does not significantly affect the results of the regression model explanation.
Regression analysis results
Table 2.18 Regression analysis results
Variables
Unstandardized coefficient | Standardization factor | t | Significance level Sig. | Multicollinearity statistics | ||||
B | Error | Beta | Tolerance | VIF | ||||
1 | Constant | 2,908E-016 | 0.054 | 0.000 | 1,000 | 1,000 | 1,000 | |
TT | 0.170 | 0.054 | 0.164 | - 3,155 | 0.002 | 1,000 | 1,000 | |
Customer Service | 0.570 | 0.054 | 0.537 | 10,598 | 0.000 | 1,000 | 1,000 | |
DNBH | - 0.021 | 0.054 | - 0.017 | - 0.389 | 0.698 | 1,000 | 1,000 | |
GH | 0.088 | 0.054 | 0.067 | 1,632 | 0.105 | 1,000 | 1,000 | |
BHTT | 0.176 | 0.054 | 0.154 | 3,280 | 0.001 | 1,000 | 1,000 | |
KB | 0.478 | 0.054 | 0.395 | 8,891 | 0.000 | 1,000 | 1,000 | |
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( Source: Data processing results via SPSS software)
Explain:
- TT – Variable representing the factor group “Payment policy”
- CSKH – Variable representing the factor group “Customer care policy”
online”
- DNBH – Variable representing the factor group “Sales team”
- GH – Variable representing the factor group “Delivery policy”
- BHTT – Variable representing the factor group “Online sales policy”
- KB – Variable representing the factor group “Online sales channel”
The constant in the regression equation represents the slope coefficient, it does not go with the variable so it does not affect the equation. In particular, the models using the Likert scale this constant has no comment meaning, so the Sig. of the constant whether it is larger or smaller than 0.05, the constant is negative or positive is not important.
From the regression results, it shows that the factors "TT", "CSKH", "BHTT", "KB" have Sig.
< 0.05, so these factors have an impact on the effectiveness of online sales activities. For the factors "DNBH" and "GH", because the Sig. is 0.698 and 0.105 respectively, greater than 0.05, we need to remove these two variables from the model.
We can derive a regression model describing the variation of the dependent variable as follows:
DG = 0.170.TT + 0.570.CSKH + 0.176.BHTT + 0.478.KB
- Coefficient β1 = 0.170 indicates that: under conditions where other factors remain constant, when the factor "TT" increases by 1 unit, the overall customer assessment of the effectiveness of online sales activities at the company increases by 0.170 units.
- Coefficient β2 = 0.570 indicates that: under conditions where other factors remain constant, when the factor "CSKH" increases by 1 unit, the overall customer assessment of the effectiveness of online sales activities at the company increases by 0.570 units.
- Coefficient β5 = 0.176 indicates that: under the condition that other factors remain unchanged, when the factor "BHTT" increases by 1 unit, the overall customer assessment of the effectiveness of online sales activities at the company increases by 0.176 units.
- Coefficient β6 = 0.478 indicates that: under the condition that other factors remain constant, when the factor "KB" increases by 1 unit, the overall customer evaluation level increases by 0.478 units.
Thus, through the regression analysis process, it is found that of the extracted factors, the variable "CSKH" has the greatest influence on the overall customer assessment of the effectiveness of online sales activities with coefficient β = 0.570. The next factor affecting the overall customer assessment of the effectiveness of online sales activities is "KB" with coefficient β = 0.478. The next factor affecting the overall customer assessment of the effectiveness of online sales activities is "BHTT" with coefficient β = 0.176.
We can see that the factor "CSKH - Customer care policy" is the factor that has the greatest impact on the effectiveness of the company's online sales activities. When the company sells essential products, high value and long-term use, building good relationships is something that should be focused on. On online channels, a high-paced business environment, customers always want to be responded to quickly and promptly, the company needs to handle the speed, otherwise it will be easy to lose potential customers to other competitors who know how to please customers. In addition, the company grasps the trend of online channels that users frequently access, increases presence, conveys messages, prestige and image. The company is increasingly perfecting its sales policy to make customers feel prestigious and beneficial when buying the company's products. In addition, perfecting the online sales system, improving product warranty and delivery quality to make customers feel secure as well as when evaluating the service quality when experiencing shopping at the company.
CHAPTER 2 SUMMARY
The first content is a brief introduction to HTV Hue Import Export Company Limited, its fields of operation, business results, human resources, and organizational structure.
Next is to learn about the current status of online sales activities through collected data and the actual situation at HTV Hue Import Export Company Limited.
The third content is to show the level of influence of the factors Online sales channel, Online sales policy, Delivery policy, Payment policy, Staff and Online customer care policy on the company's online sales effectiveness by methods of testing the reliability of the scale, EFA factor analysis, regression analysis and One-Sample T-Test.
CHAPTER 3: ORIENTATION AND SOLUTIONS TO IMPROVE ONLINE SALES EFFICIENCY OF HTV HUE IMPORT-EXPORT COMPANY LIMITED
3.1 Development orientation of online sales activities of HTV Hue Import Export Company Limited
E-commerce activities, along with the globalization trend of the world economy, competition in the domestic and international markets is increasingly high. With the purpose of long-term existence and development, the company must perform well in sales activities, with this study the company also needs to focus on performing well in online sales activities.
Improving the efficiency of both online and traditional sales activities helps the company achieve higher and higher sales profits, has high competitiveness against competitors and helps the company stand firm in the market. The company needs to improve and perfect sales stages, improve service quality, specifically:
- Improve sales efficiency by enhancing close relationships between the company and suppliers, ensuring information flow, coordinating timely supply of goods. Expand relationships with other suppliers. Strengthen relationships between sales staff and customers.
- Improving the effectiveness of sales activities needs to be organized based on specific strategies for each stage. There are many activities to boost sales, customer care, incentives, and promotions.
- Develop human resources, train and develop staff to improve professional quality and increase sales productivity.
- Strengthen communication, marketing and brand promotion activities, participate in construction bidding sessions and business conferences.
- Invest in developing e-commerce activities, developing human resources along with the popularity of online sales trends.
- Retain current customers, increase customer loyalty, attract customers
potential, reduce business costs
- In customer care, it is necessary to continue to maintain and promote the motto "Customer is king".
3.2 Some solutions to improve the efficiency of online sales activities at HTV Hue Import Export Company Limited
Based on analyzing the current situation, finding out the limitations and factors affecting online sales activities, the author proposes some solutions to improve the effectiveness of online sales at HTV Hue Import Export Company Limited.
3.2.1 Solution for Online Sales Channel factor group
Sales channels play an important role in online business, including communication channels, communication methods, advertising, media, product posting and images, and company reputation. The solution for this factor is:
- Diversify sales channels, research and select channels with high feasibility to
no time, no cost
- Improve posted content, suitable for business products, articles must be attractive and valuable to readers.
- Promote and enhance the feasibility and presence of the channel such as using communication tools.
- Integrates with online sales management software to create many sales support utilities.
3.2.2 Solutions for Online Sales Policy
Online sales policy is an important reference factor that customers trust when buying online with many risks, thanks to the sales policy, customers feel more secure to agree to close the order. However, the company still has some limitations in policy, the following proposed solutions:
Complete your existing sales policy by adding policies such as:
- Discounts and price reductions when buying in bulk give customers the feeling that the price will not be high but will be beneficial, helping to increase revenue.
- Warranty policy should be directly included in the regulations instead of only having the warranty card for customers to know the information.
- Leaking the responsibility of seller and buyer after transaction, this will significantly increase the number of loyal customers.
- The return policy is one of the advantages, customers will feel more secure.
If there is a problem with the product.
3.2.3 Solution for Delivery Policy
Delivery is an activity that the company needs to focus on controlling because it ensures product safety, commitment time and delivery to customers. The proposed solution:
- The company must seriously carry out delivery activities according to the commitments set out with specific regulations, and handle cases with unreasonable reasons.
- Contact and commit with the shipping unit to ensure product safety and correctness.
time.
- Use the travel schedule notification system integrated into the management system
Sales to notify customers and control the delivery unit journey.
3.2.4 Solution for Payment Policy
- To encourage customers to pay on time, before the deadline,
The company should offer discounts to speed up payment.
- For loyal customers and customers who buy in large quantities, we offer incentives, discounts and rebates.
- Flexible in payment and receipt, when ordering must pay at
a specific level then receive the goods will continue to pay.
3.2.5 Solutions for Sales Team
Whether it is traditional sales or online sales, the staff is a very important factor, interacting with customers, creating sympathy, impression will speed up the customer's purchasing speed. This is the image and reputation of the company if the company has a team of highly qualified, professional staff will contribute to improving business efficiency. To be able to build a team of staff, the author makes the following suggestions:
- Looking for candidates with confident personality, eager to learn, ready to accept challenges, great motivation, good listening skills, perseverance, good attitude.
- Organize training, coaching sales skills and sales management for staff.
- Need to organize employee supervision, avoid laziness and lack of enthusiasm in supporting customers.
- Build a friendly working environment, connecting employees and leaders.
- Determine the bonus level based on sales to create motivation and interest in the job.
Depending on each case, sales staff should have appropriate explanations and interpretations to correctly and fully answer customers' questions.
3.2.6 Solutions for Online Customer Care Policy
Customer care plays a huge role in deciding whether a customer will return or not. A well-cared for customer is a customer who is completely satisfied with the advice, products, and services provided and continues to receive the attention of the staff even when they have not made a subsequent purchase. They can completely become loyal customers and they are the bridge to bring potential customers. To further improve the quality of customer care, here are some suggestions:
- Promote and maintain the motto "Customer is king" always support wholeheartedly and sell for customer satisfaction.