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BUSINESS RESEARCH 2 RESEARCH PROJECT REPORT GROUP NAME:

Iris Group

GROUP MEMBERS (NAME IN FULL

Từ Đông Nghi – 43.01.751.176

AND STUDENTS IDs):

Lê Trung Tuyết Nhi – 43.01.751.199 Nguyễn Quang Trường –43.01.751.337 Nguyễn Tấn Cường – 43.01.751.028 Hà Chí Thanh – 43.01.751.265

Business Research 2 (2020)

Unit name

Nguyen Thanh Binh, PhD

Name of course instructor

Assignment 2: Research project report

Assignment name

(60%) An evaluation of customers’ insights

Title of your paper

towards BaeminPay – a new e-wallet for Baemin application Word count (excluding list of references,

4314 words

and appendix) Soft copy Jan 17, 2021 23:59

Due date

Hard copy Jan 20, 2021 11:00 at Room B603 (Ms. Hồng Yến)

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You must keep a photocopy or electronic copy of your assignment.

Student declaration I certify that the attached assignment is my own work. Materials drawn from other sources have been acknowledged according to course-specific requirements for referencing. I certify that this assessment item has not been submitted previously for academic credit in this or any other course. I certify that I have not given a copy or have shown a copy of this assessment item to another student enrolled in the course. I acknowledge that the assessor of this assignment may, for the purpose of assessing this assignment: ∙ Reproduce this assessment item and provide a copy to another member of the Department of English; and/or ∙ Communicate a copy of this assessment item to a plagiarism checking service (which may then retain a copy of the item on its database for the purpose of future plagiarism checking). ∙ Submit the assessment item to other forms of plagiarism checking. I certify that any electronic version of this assessment item that I have submitted is identical to its paper version.

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Signature of student (Please sign here after printing): Date:

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BUSINESS RESEARCH 2 RESEARCH PROJECT REPORT

ASSIGNMENT 2 ASSESSMENT SHEET: Diagnostic for the reflection

A

Outstanding

B

Very Good

C

Satisfactory

D

Needs further attention (minor flaws or errors)

E

Unsatisfactory (major flaws or errors)

QUALITIES 5

Use of references and referencing style

5

Structural composition of proposal

5

Comprehension of the readings

5

Mechanics of writing

20

Coherence of presentation and quality of argument

20

Reflectiveness Total 60%

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Contents Introduction ......................................................................................................................... 6 Context of research .............................................................................................................. 8 Literature review .................................................................................................................. 8 Hypothesis ......................................................................................................................... 15 Research design ................................................................................................................. 16 Findings ............................................................................................................................. 17 Discussions of findings ...................................................................................................... 20 Recommendations and Conclusion ................................................................................... 21

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Introduction There is no doubt that food is a source of life for mankind every day. From very early history, prehistoric humans were aware of the importance of food and they started to collect fruits and other kinds of food for survival in the research of Behre (2008). The history lasts for thousand years until now, therefore food has been significantly changed to adapt to the contemporary community as consequent. Vietnam - a country that has experienced a long history - is not an exception. In Vietnam, there are considerable changes in food culture from the past to the present. It is not just mentioned the changes in food ingredient varieties but the ways human beings have meals. To be more clarified, Chung (1998) pointed out that Vietnam is a combination of several different food cultures over the world, especially the Asian food culture, along with the creatively invented mixtures of colors, flavors, textures, and temperatures. Regarding the ways people have meals, Dzung (2005) indicated that members of a family like to enjoy dishes together in the past, especially dinner. They put families above all the other things. That is the unique tradition of Vietnam that has been preserved until now. Although it is a valuable custom, it has been changed gradually due to the growth of the economy and other objective factors. The growing economy leads to much more workload need to be completed, this requires people to work harder and longer working time. Therefore, plenty of people working in all fields nowadays are adopting the trend of having meals at their workplaces because they do not have more time to return home and then back to their workplaces. With the progress of technology, they have more options in choosing kinds of

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food and making mealtime as convenient as possible. The foundation of the Internet has facilitated online food service platforms that allow users to browse various food items easily and compare products effectively (Chang, Chou, and Lo, 2014; Yeo, Goh, and Rezaei, 2017). The full significance of these platforms is the formation of online delivery services that enable customers to order food through these platforms conveniently. It cannot be failed to mention the well-known leading online food delivery service applications Now Delivery, GrabFood, Go-Food, and Baemin (Cheng, 2019). Wei and Das (2018) stated that university students are gradually altering into a busy lifestyle- who frequently have a dense schedule all day long with numerous assignments, presentations, group activities, exams, and so on. According to YouNet Media (2019), the young generation aging from 18 to 24 years old and living in Ho Chi Minh City accounts for 38.1% of the people who love using Baemin applications. With this figure, it is clear to determine that university students are also contributing significantly to the development of the applications. Online food delivery apps are created to satisfy the hustling persons with the needs of ordering food online and getting food in a short time (Zulkarnain, 2015). Quy (2020) reported in the survey posted on VnExpress that Ho Chi Minh citizens use online food delivery applications more frequently and spend more than people living in Ha Noi. Baemin is one of the most-used applications among the top leading online food delivery applications which have been used widely by university students in Ho Chi Minh City (Cheng, 2019; Quy, 2020).

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Context of research Baemin is a mobile application specializing in online food and beverage ordering and delivery, it is currently administered by Woowa Brothers Vietnam Company Limited - a subsidy of Woowa Brothers Corporation whose headquarter is located in Korea (Baemin, n.d). Baemin has been developing intensively and maximizing the convenience for customers with a user-friendly interface and easy-to-use manipulation (Minh, 2020). Similar to the other online food delivery applications like Now Delivery, GrabFood, or GoFood, Baemin also facilitates the applications for customers to browse food restaurants and select products conveniently just by some clicks. It is much more convenient with the payment method when the Baemin application allows customers to pay through an electronic wallet like Momo or bank accounts instead of cash (Baemin, n.d). However, the other online food delivery applications have also applied this method already in the applications. Therefore, to compete with them, Baemin should apply a new brand of a cashless e-wallet method to build more customer loyalty and brand optimization which means this digital is only used for food and beverages transactions online including order payment delivery payment on Baemin application named BaeminPay.

Literature review Technology development is fundamental for the establishment of e-wallets nowadays. With the assistance of technology advances, many e-wallet flatforms are introduced such 8

as Momo, Zalopay, ViettelPay, and Moca (Phuong, Luan, Dong, and Khanh., 2020). There are many pieces of research about non-cash payment methods that have been done before. The study of Yadav and Arora (2019) defined an e-wallet as a contemporary payment system that can perform transactions online as long as it is connected with a processor or a smartphone linking with a bank account. Money is kept intangibly in the account and is deduced when paying for a product online. This payment method is currently applied in food orders and delivery. In particular, online food delivery payment is vastly popular in India. In the research of Ghosh and Tapash (2018), it is indicated that Swiggy is one of the primary leading players in India that allows customers to order food online from the nearby restaurants and pay in both cash on delivery or online by using e-wallets. Based on the research, we can infer that the online payment method had been studied by many researchers before it was introduced publicly, thereby having a huge impact on the growth of the online food delivery industry. This is also supported by another study conducted in Malaysia by Bakar et al., (2020) in which the types of e-wallet are figured out and the success of a digital wallet application named Vestapay. It initially gains success after a long-term of doing research and testing the effectiveness and customers’ behavior in practice. The results of the test emphasize the importance of the application’s interfaces and software administrator. Tran and Duong (2020) indicated that e-wallet has come into practice in Vietnam a long time ago but it was not until 2014 that this type of payment became popular with the breakthrough of the big names such as Momo E-wallet, VTC Pay, Samsung Pay, andZalo 9

Pay. However, regarding the top leading digital wallets in the online food and beverage orders and delivery industry, it cannot help to mention the big four players at the present in Vietnam including Momo E-Wallet, GrabPay by Moca, and Airpay (Van, 2019, 2020). a) The case of Momo E-wallet: From the official website of Momo, this e-wallet is said to be established in 2007 and described as a payment platform linked directly with 25 commercial banks operating in the country, thereby users are allowed to pay daily for products and services in all fields when their accounts are connected to the banks they registered. It can be used in any restaurant or store that accepts paying through Momo. It is popular in most stores in Ho Chi Minh City when it is used to pay for online food and delivery every single hour. Furthermore, according to Forbes Vietnam (2020), Momo is currently collaborating with more than 30 thousand partners in all business fields from banking services, educational services to online food and delivery services, and so on. It also functions as an intermediary for the payment of electricity, water, and Internet bills. Also from its official website, Momo is considered as the first e-wallet unit that gains the highest degree of certification - PCI DSS - Level 1. Furthermore, it applied the most advanced technologies such as two-factor verification, using fingerprints and face recognition to unlock the screen, or turning off automatically when not used, and some more authentic outstanding functions. With a smartphone and the application Momo installed in, users can easily pay via the Internet without physical money. It is on the increase when it is reported on Forbes Vietnam (2020) that Momo accounts for 68% of the market share of online mobile transactions. It is 10

recognized as the most used e-wallet among more than 30 top leading e- wallets in Vietnam in early 2020 by Asia Plus. In 2018, Momo is on the podium when it reached 10 million users and 100,000 payment points nationwide within 10 years since the first publication according to Momo's official website. In the first half of 2020, this e-wallet service is honored as the best 10 brands with the best customer experience provision announced by KPMG and the third time of receiving the award named “Typical Fintech Vietnam 2020” (Momo, 2020). Momo takes full advantage of the internet and technology development to create the best experience and the most convenient for customers nationwide. It can be recognized that Momo has a wide variety in all fields of business, which allows users to pay for products or services cashlessly. From the findings above, we can learn from the way Momo has applied to get customer trust and great experiences through using the mobile online application. b) The case of GrabPay by Moca: Moca is another big brand in the e-wallet industry. According to the introduction on its official website, Moca is said to be built on mobile applications to facilitate users to pay online and directly at the points with bank cards such as ATM cards, Visa, Mastercard, or JCB cards safely and conveniently. Moca is currently doing business with the top leading banks in Vietnam and numerous retailers to provide users with a modern, advanced, safe, and easy-to-use ecosystem for daily payments. In the report of Hung (2018), he said that Grab had introduced in September 2018 a new non-cash payment method in the collaboration with Moca which was named GrabPay. As a planned strategic partnership 11

between Grab and Moca, GrabPay is a new seamless and secured cashless payment method for users in Vietnam when using in-store services, Grab rides, fund transfers, and GrabFood deliveries (including online orders and delivery) (Grab, 2020). GrabPay is described as a trustworthy payment system where users can make online transactions safely and privately with personal information. GrabPay is honored to be awarded “Best Fraud Prevention Innovation 2016” by Florin Awards Asia 2016. Thinh (2018) stated that users will be required to install the Moca e-wallet on the GrabPay application when they wish to make any transaction on it. To utilize the application’s service’s functions effectively, customers will link their ATM cards which are issued by commercial banks that are Moca’s partners. After the creation of the link, customers can top up their e-wallet on the Grab application directly from their ATM, debit or credit accounts. According to Lan (2019), it is only 6 months after GrabPay is introduced that Grab users spend more on GrabFood and GrabExpress than the other services of Grab with the convenience and several promotions of using the cashless payment. Hence, we can conclude that Grab users are eager to use GrabPay in online food and delivery services and they have a high frequency of ordering food online and getting it delivered. c) The case of Airpay Cited from the official website of Airpay, Airpay is under the control of Airpay Corporation and licensed by the State Bank of Vietnam. It is known as a free e-wallet operated on mobile phones on which users enable to pay for products or services anywhere and anytime with a high level of modernness and information security. It allows users to fulfill complete 12

wishes from the depository, cash withdrawals within the account, phone recharges, monetary services payments, monthly payments for electricity, water, internet, cable TV in addition to different leisure providers with elevated information security. Additionally, it is a cashless payment method linked in with many e-commerce platforms such as Shopee, Garena, Ocha, Foody, Now Delivery with a mission to bring a better experience for customers and level up the modern standard of living. Users are initially required to link their bank accounts to their Airpay application so that they can make transactions online on the application (Airpay, n.d.). In the collaboration with other e-commerce platforms, Airpay is used widely in daily payments for many types of products with the campaign of launching numerous promotions, vouchers, and many other benefits for users when they use Airpay as a payment method. Therefore, it is considered one of the most favorable online mobile payment applications among Vietnamese people, especially the youth (Van, 2019). Van (2020) also reported that after acquiring food delivery from the Foody application, Airpay is on the way to thrive on the market, especially the online food orders and delivery industry. d) The case of ZaloPay Zalo was one of the OTT (over the top) products of VNG (Vina Game) which has been widely used by about 100 million in the past few years (Adtima, 2019). In 2019, another finance and payment platform was established, ZaloPay brings users huge benefits since then. Its official website states that ZaloPay provides users with many functions such as transferring money from one account to another, paying for electricity and water bills, 13

sending gifts to others. Moreover, people can pay for any purchase in convenience stores including Circle K and 7Elven, even on shopping online platforms (Lazada and Tiki) and Baemin- an online food and delivery application. Besides, it is extremely practical with university students who frequently commute by bus because it allows them to scan the QR code for bus fare. In order to use this software, users must download and install on their electronic devices, both two applications, Zalo and ZaloPay. It requires an available Zalo account beforehand to run this application. In addition, ZaloPay also allows users to sign in by using their phone number. Nevertheless, the users are required to install the ZaloPay application separated from Zalo (ZaloPay, n.d). Having the same functions as other ewallet applications, users are able to transfer money with any connected banks that require no fee, however, ZaloPay has a detailed policy and agreement between users and the application. Based on this offer, Vietnamese users are now familiar with ZaloPay. From the collected findings above, we find that e-wallets are extremely useful for Vietnamese people in particular.in the age of technology. However, they have connected with many other platforms as a channel for users to pay money intangibly over the Internet and they do not focus only on online food and delivery services. Besides, these e-wallets are separate applications, whenever users wish to pay for online orders, they must connect with other separate applications (Nguyen, Nguyen and Tran, 2020). Take Momo as an example, when users want to pay for any bills on Baemin, they must have Momo application installed and linked with the Baemin application on their devices which means they have to use two applications at the same time to pay for the order. This may cause

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confusion and inconvenience for users, especially low-tech ones. Moreover, their markets are massive within the country including rural areas, and their targeted customers are varying. We realize that university students contribute hugely to the popularity and development of e-wallets in the field of online food orders and delivery in Vietnam, especially in Ho Chi Minh City. Baemin is also connected with Momo to conduct payments for food and delivery online. But the thing is Baemin is the new player in the food delivery industry, to make it unique and independent in the market, there should be a new e-wallet payment application that is used only for transactions of Baemin application. This new ewallet will be operated un...