MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY HCMC NGUYEN TRAN MAI VY FACTORS AFFECTING CUSTOMER’S PURCHASING DECISION FOR CONSUMER GOODS BRANDS IN HO CHI MINH CITY IN THE INTEGRATION COMPETITION BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 52340101 INSTRUCTOR: M. DANG TRUONG THANH NHAN Ho Chi Minh City, 2018 2 ABSTRACT The purpose of this research is to analyze the factors affecting customer‟s purchasing decision for consumer goods brands in Ho Chi Minh City in the integration competition, also help Ho Chi Minh City business owners orient and define the strategy and competitiveness of their brands and find solutions to promote the brand and develop the business. This study collected data from the survey of the factors affecting customer‟s purchasing decision for consumer goods brands in Ho Chi Minh City in integration competition. After the data being analyzed by concurrent data on SPSS software, the main objectives of this study are to: First, identify the factors affecting customer‟s purchasing decision for consumer goods brands in HCMC in integration competition.
Second, determine the priority order of the impact level these factors affecting customer‟s purchasing decision for consumer goods brands in HCMC in integration competition. Third, propose solutions to improve Ho Chi Minh City consumer goods brands in integration competition BACHELOR THESIS NGUYEN TRAN MAI VY 3 COMMITMENT AND THANKS This thesis is the researcher's own work, the research result is honest, in which no previously published content or content of other researchers are presented, except for citations are fully cited in the thesis. After a period of time studying, the researcher was helped by all the teachers and friends in support of implementing the knowledge more and more abundant. With deepest gratitude, the researcher would like to sincerely thank all the teachers of the Business Administration Department who use their knowledge and enthusiasm to convey the precious knowledge to students during the study period at Banking University HCMC.
In particular, the researcher would like to give a special thank to Ph. Dang Truong Thanh Nhan for spending time in guidance and support for the researcher‟s bachelor thesis. Due to the researcher‟s limited knowledge and many more, the researcher will not be able to avoid the shortcomings. Consequently, the researcher would like to receive valuable comments from teachers and classmates so that the knowledge in this field will be enhanced and improved.
BACHELOR THESIS NGUYEN TRAN MAI VY 4 IMPLEMENTATION SCHEDULE Table 1. Implementation schedule From Jan / 2018 To Dec / 2018 1 3 5 7 9 11 + + + + + + 2 4 6 8 10 12 Expect the content Develop thesis outline Collecting materials for basic definitions, literature review, and survey building Develop questionnaire surveys, complete the questionnaire and collect information from experts and people Processing and analyzing survey information Essay writing Ask for guidance from instructors, complete thesis Thesis defense BACHELOR THESIS NGUYEN TRAN MAI VY 5 TABLE OF CONTENTS LIST OF ACRONYMS. 8 LIST OF TABLES AND FIGURES. The urgency of the research:.
Purpose and target of the research:. Object and scope of the research:. Object of study:. Scope of study:.
Overview of the brand:. History of the brand: （Matt, 2014）. Definition of the brand:. Component of the brand:.
Scale of the brand:. Overview of the consumer goods industry in Vietnam:. Overview of marketing:. Overview of brand marketing:.
Definition of brand marketing: （Kotler, Armstrong, Trifts, Peggy, 2004) 44 2. Using marketing in establishing and developing business's brand:. Overview of customer: （Hitesh, 2018）. The decision to buy from consumers:.
51 BACHELOR THESIS NGUYEN TRAN MAI VY 6 2. The progress of decision to buy from consumers:. The factors affect the decision to buy from consumers:. Factors of cultural level:.
Elements of social nature:. Factors of a personal nature:. Factors of psychological nature:. The views of researchers on perceived value:.
Proposed model about factors affecting customer‟s purchasing decision to consumer goods brand in Ho Chi Minh City:. Methodology of theoretical research:. Practical research method:. Determination of the sample selection method:.
Build the scale:. Scale of Quality Value:. Scale of Price Value:. Scale of Social Value:.
Scale of Emotional Value:. Scale of Personnel Value:. Scale of Distribution Density:. Scale of customer‟s purchasing decision to consumer goods brand:.
Data processing methods:. Cronbach‟s Alpha analysing:. Regression and ANOVA analysing:. THE RESEARCH RESULT.
Reliability coefficients Cronbach‟s Alpha:. 92 BACHELOR THESIS NGUYEN TRAN MAI VY 7 4. Customer‟s purchasing decision to consumer goods brand:. EFA Analysis result of independent variables:.
EFA analysis result of dependent variables:. Analyze Regression model:. Determining the difference by the characteristics of the research object: 109 4. Educational Level Differences:.
127 REFERENCES 130 BACHELOR THESIS NGUYEN TRAN MAI VY 8 LIST OF ACRONYMS ADB Asian Development Bank ANOVA Analysis of Variance CFA Confirmatory Factor Analysis CRPs Consumer Reach Points CSR Corporate Social Responsibility EFA Exploratory Factor Analysis Etc. Et Cetera FMCG Fast Moving Consumer Goods GRI Global Reporting Initiative HCMC Ho Chi Minh City HDI Human Development Index IUCN International Union for Conservation of Nature and Natural Resources KPIs Key Performance Indicators SPSS Statistical Package for Social Sciences SWOT Strengths–Weaknesses–Opportunities–Threats USP Unique Selling Proposition WIPO World Intellectual Property Organization BACHELOR THESIS NGUYEN TRAN MAI VY 9 LIST OF TABLES AND FIGURES TABLES: Table 2. Scale of Lacoeuilhe (2000) Page 21 Table 2. Scale of Thomson and partner (2005) Page 23 Table 2.
Research sample statistics Page 24 Table 2. Top 10 most-purchased manufacturers in 4 main cities and rural areas in Vietnam Page 27 Table 2. Brand ranking by Health and Beauty Page 29 Table 2. Brand ranking by Family care Page 31 Table 2.
Brand ranking by Foods Page 33 Table 2. Brand ranking by Beverages Page 35 Table 2. Brand ranking by Diary and Dairy products Page 37 Table 3.2b Relationship between the hypothesis and the customers‟ decision to choose consumer goods brands Page 78 Table 3. The list of urban and suburbs has been investigated Page 79 Table 3.
Scale of Quality Value Page 81 Table 3. Scale of Price Value Page 81 Table 3. Scale of Social Value Page 82 Table 3. Scale of Emotional Value Page 82 Table 3.
Scale of Personnel Value Page 83 BACHELOR THESIS NGUYEN TRAN MAI VY 10 Table 3. Scale of Distribution Density Page 83 Table 3. Scale of customer‟s purchasing decision to consumer goods brand Page 84 Table 4. Reliability Statistics of Quality Value (QV) Page 92 Table 4.
Item-Total Statistics of Quality Value (QV) Page 92 Table 4. Reliability Statistics of Price Value (PCV) Page 93 Table 4. Item-Total Statistics of Price Value (PCV) Page 93 Table 4. Reliability Statistics of Social Value (SV) Page 94 Table 4.
Item-Total Statistics of Social Value (SV) Page 94 Table 4. Reliability Statistics of Emotional Value (EV) Page 95 Table 4. Item-Total Statistics of Emotional Value (EV) Page 95 Table 4. Reliability Statistics of Personnel Value (PV) Page 96 Table 4.
Item-Total Statistics of Personnel Value (PV) Page 96 Table 4. Reliability Statistics of Distribution Density (DD) Page 97 Table 4. Item-Total Statistics of Distribution Density (DD) Page 97 Table 4. Reliability Statistics of Customer‟s decision (CD) Page 98 Table 4.
Item-Total Statistics of Customer‟s decision (CD) Page 98 Table 4. KMO and Bartlett‟s Test Page 99 Table 4. Total Variance Explained Page 100 Table 4. Rotated Component Matrix Page 101 Table 4.
KMO and Bartlett‟s Test Page 102 Table 4. Total Variance Explained Page 102 BACHELOR THESIS NGUYEN TRAN MAI VY 11 Table 4. Model Summary Page 106 Table 4. ANOVA Analysis Page 107 Table 4.
Linear Regression Result Page 108 Table 4. Compare differences in gender Page 109 Table 4. ANOVA Comparing Differences by Gender Page 110 Table 4. Compare differences in age Page 111 Table 4.
ANOVA Comparing Differences by Age Page 112 Table 4. Compare differences in educational level Page 113 Table 4. ANOVA Comparing Differences by educational level Page 114 Table 4. Compare differences in income Page 115 Table 4.
ANOVA Comparing Differences by income Page 116 Table 4. Compare differences in Residence Page 117 Table 4. ANOVA Comparing Differences by Residence Page 118 FIGURES: Model 2. The stages of customer concept Page 47 Figure 2.
Consumer Behaviors Model Page 50 Figure 2. Buyer‟s Decision Progress Model Page 51 Figure 2. Sweeney and Soutar‟s customer perceived value measurement models Page 59 Figure 2. Sanchez et al.‟s customer perceived value measurement models Page 61 Figure 2.
Five values affecting customer‟s choice behaviors Page 62 Figure 2. Affecting of perceived value on customer‟s purchasing decision – Research‟s Chang & Hsiao Page 63 Figure 2. Proposed Research Model (Theoretical Model) Page 65 BACHELOR THESIS NGUYEN TRAN MAI VY 12 Chart 3. Research Design Page 69 Figure 3.
Proposed Research Model (Official Model) Page 80 Chart 4. Statistics by gender Page 89 Chart 4. Statistics by age Page 90 Chart 4. Statistics by education level Page 90 Chart 4.
Statistics by income Page 91 Chart 4. Statistics by residence Page 91 BACHELOR THESIS NGUYEN TRAN MAI VY 13 CHAPTER I. The urgency of the research: Prior to the global economic integration trend, Vietnamese businesses paid more attention to establishing and developing their brand. Business owners understand the importance and value of the brand for competitiveness in the market.
Brand is no longer just a sign to identify and distinguish the product of this business towards other businesses, but much higher, is very valuable assets, is the prestige of the business and expressed the belief of consumers of the business‟s product. Building a brand is not just about putting a name on it and signing up for that, it's a synthesis of activities to create a "clear and distinct" image of the enterprise. （Haskins, 2015） Brands are now paying attention by many businesses, even small and medium enterprises. The brand is a vital factor for businesses, especially in the context of deepening international and regional integration.
Brand is considered as an intangible asset, very valuable of the business. (Laura, 2018） A brand is a sign that a consumer chooses the goods and services of the business in a variety of other goods. Brand name contributes to maintaining and expanding the market for businesses, improving commercial civilization and preventing unfair competition among enterprises. In the trend of internationalization and globalization of economic life, with the harsh competition conditions at present, Vietnamese businesses in general and Ho Chi Minh City businesses in particular, must build their own and good brands.
Only building brand, business is not afraid of being slammed on the yard as well as when entering the world market. ( Laura, 2018） First of all, through the brand, consumers are more confident, more reassuring and have the desire to select and purchase products and services of enterprises. Brand building is to build credibility of the business for consumers. BACHELOR THESIS NGUYEN TRAN MAI VY 14 A successful brand, known and loved by consumers will bring great benefits to the business.
The value of a brand is the profit outlook that the brand brings to the business in the present and in the future. In addition, when having the famous brand, investors are not afraid to invest in business. Business partners will also be willing to cooperate with business, supplying raw materials and goods to the business. Brands are always intangible and valuable assets of the business.
These things have prompted Vietnamese enterprises, even small and medium enterprises in building and developing the brand. Branding is not just about getting your target market to select you over the competition. It's also about getting your prospects to see you as the sole provider of a solution to their problem or need. In its essence, branding is a problem-solver.