THE STATE BANK OF MINISTRY OF EDUCATION VIET NAM AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY ----------------------------- HONG THIEN PHUC FACTORS AFFECTING THE DECISION TO BUY CLOTHES ONLINE OF PEOPLE IN BIEN HOA CITY GRADUATION REPORT Major: BUSINESS ADMINISTRATION Code: 7 34 01 01 Ho Chi Minh City, 2023 THE STATE BANK OF MINISTRY OF EDUCATION VIET NAM AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY Student’s name: Hong Thien Phuc ----------------------------- Class: HQ7 – GE13 Student’s number: 050607190391 FACTORS AFFECTING THE DECISION TO BUY CLOTHES ONLINE OF PEOPLE IN BIEN HOA CITY GRADUATION REPORT Major: BUSINESS ADMINISTRATION Code: 7 34 01 01 SUPERVISOR Dang Truong Thanh Nhan, PhD. Ho Chi Minh City, 202 i Promise This thesis is the author‘s own research work. The results of the research are honest as there are no previously published contents or content made by others except for the full citations in the thesis. Bien Hoa City, June 2023 Signature Hong Thien Phuc ii Acknowledgement In order to complete this graduation thesis, in addition to my own efforts, I have received the attention and dedicated help of many people.
Therefore, I would like to express my sincere gratitude to the teachers who are working and teaching at The Banking University of Ho Chi Minh City has taught me a lot of useful knowledge and experiences during my time studying at the school, especially the teachers of the Faculty of Business Administration. And most of all, I would like to express my gratitude and sincere thanks to Dr. Dang Truong Thanh Nhan, the direct supervisor of the thesis, who wholeheartedly guided and guided me to find a research direction and approach. Thanks to the help of the supervisor, I was able to finish my graduation thesis.
Moreover, I would also like to thank to my friends, relatives – who have helped and supported me in the process of researching and collecting data for this topic. At the same time, I also sincerely thanks the authors who have studied relative topics before so that I have a complete and useful source of materials for the implementation of the thesis. Due to the limitation of time, manpower and lack of knowledge, this graduation thesis can not avoid shortcomings and mistakes. I look forward to receiving suggestions from teachers as well as contributions from readers.
I sincerely appreciate! iii Abstract With the changing of technology, shopping in general and shopping for clothes in particular has changed. As e-commerce is growing fast, traditional shopping already has the participation and involvement of technology. Moreover, the outbreak of the COVID-19 epidemic has contributed to the promotion of online shopping. After months of lockdown in Vietnam, the demands for fashion and meetings have gone up since then.
Therefore, this thesis with the topic ―Factors affecting the decision to shop for clothes online of people in Bien Hoa City‖ is conducted in order to identify the decision to buy apparels online within the city. Thus, the thesis proposes managerial implications so that e-commerce platforms, businessess and following studies can use this thesis as a reference. Qualititative research is used as the main research method. From the previous theories and related researches, the author has mainly based on the Theory of Reasoned Action – TRA and the Theory of Planned Behavior – TPB as well as models of other researches to build a proposed model consisting of 7 hypotheses including Product Design/ Style, Product Quality, Price, Convenience, Social Influence, Brand Image and Perceived Risk.
After conducting qualitative research by giving the questionnaire to the supervisor and other 14 people who are close to the author, an official scale and questionnaire with the totals of 28 observed variables have been built. Quantitative research is conducted based on the analysis of collected data through questionnaires with 200 research samples on SPSS 20. Research results show that all 7 hypotheses have impacts on consumers‘ online shopping decision for clothes in Bien Hoa City. Based on the analysis results, the author has proposed several managerial implications for each factors in descending order: Product Quality, Product Design/ Style, Convenience, Perceived Risk, Price, Brand Image and Social Influence.
iv TABLE OF CONTENTS Promise. iii LIST OF MODELS. viii CHAPTER 1: INTRODUCTION TO THE RESEARCH TOPIC. The necessity of the topic.
Subject and scope of research. Contribution of the topic .6 CHAPTER 2: LITERATURE REVIEW. Theories of consumers‘ online shopping behaviors and decisions. Online shopping behavior.
Online shopping decision. Theory of Reasoned Action (TRA). Theory of Planned Behavior (TPB). Technology Acceptance Model (TAM).
C-TAM-TPB Model. The Unified Theory of Acceptance and Use of Technology (UTAUT). Research hypothesis and model. Proposed research model .31 CHAPTER 3: RESEARCH METHOD.
Building a scale for the factors in the model. Data collection method. Data processing and analysis method .37 CHAPTER 4: RESEARCH RESULTS AND DISCUSSION. Survey sample characteristics.
Evaluate the reliability of the scale and factor analysis. Pearson‘s correlation coefficient test. Discuss the result of regression analysis .57 CHAPTER 5: CONCLUSION AND MANAGEMENT IMPLICATIONS. Product Design/ Style.
Limitations of the thesis and future research directions. Limitations of the thesis. Future research directions .76 viii LIST OF MODELS Model 2.1: The basic Theory of Reasoned Action .2: The theory of Planned Behavor. Technology Acceptance Model .4: Model of C-TAM-TPB.
The Unified theory of Acceptance and Use of Technology .6: Model of studying online shopping intenion .7: Model of studying the risks of consumers buying fashion online .8: Model of factors affecting online shopping decisions of consumers in Ho Chi Minh City.9: Model of studying online purchasing decision .10: Model of determinant faactors of e-commerce purchase decision in Jakarta and Tagerang .11: Model of the affecting factors on online clothing purchase .1: Summary of previous studies .12: Research model of factors affecting the decision to buy clothes online of Bien Hoa citizens .1: Table of factors and observed variables .2: Table of requaired sample size corresponding to the factor loading value .1: Survey sample characteristics .2: Cronbach‘s Alpha reliability test .3: Factor analysis with independent variables .4: Factor analysis with dependent variables .5: Results of Pearson's test of the relationship between the dependent variable and the independent variable .6: Regression model summary .6: Multi-variable regression result .7: Differences in online shopping decisions by gender .8: Differences in online shopping decisions by age .9: Differences in online shopping decisions by income .57 1 CHAPTER 1: INTRODUCTION TO THE RESEARCH TOPIC 1. Introduction Clothing is one of the basic needs of human. People wear different clothes for different ocasssions, from daily comfortable clothes to formal clothes according to their needs. Clothes have many functions such as protection from the polluted environment, providing a shield agains heat or cold and possible toxic materials as well as improve the ease of the wearer in doing their daily activities.
Besides its functionality, clothing is the way to show the taste, character and style of the owner to the world. A traditional way is to shop at retail shops or boutiques to get their clothing. With the development of technology and the Internet, all kinds of products are available for purchase online which became a new way of shopping for people across the world (Purwaningtyas, A. In the present 4.0 era, human necessities can be easily found and purchased online.
Digitization has benefitted consumers by providing better quality products and personalized options. This illustrates that online shopping has replaced traditional shopping (Warrier et al. Moreover, over the last century, the world has been frequently affected by pandemics such as the Spanish Flu (1918 – 1919), the Asian Flu (1957 – 1958), the Hong Kong Flu (1968), SARS (2002 – 2003), the Swine Flu (2009 – 2010) and the most recent one is COVID-19 pandemic at the beginning of 2020. Most countries had restricted social life and some even imposed partial or comlpete lockdown upon their citizens in order to control the rapid spread of the virus.
Most retail stores and services had to stop their operations during the lockdown. As a result, online shopping has become the only means for many consumers to satisfy their consumption needs safely (Koch et al. With the popular of online shopping and the reduction of the COVID-19 pandemic, the demand for clothes and meetings has also gradually recovered and increased. Therefore, author decided to study about ―Factors affecting the decision 2 to buy clothes online of people in Bien Hoa City‖ in order to identify the factors driving Bien Hoa consumers to buy clothes and to meet their needs.
The necessity of the topic Undeniably, the biggest benefit that online shopping brings is cost saving and transaction facilitation. Transactions by electronic gadgets are faster than traditional ones. For example, sending faxes or e-mails reaches the recipient faster than sending a letter. Transactions over the Internet are very cheap, a business can send marketing letters, offers to a large number of customers with just the same cost as sending to one customer (Minh, L.
Therefore, in order to compete in extremely competitive marketplaces, many businesses have started using the internet to reduce their marketing expenses and, as a result, lower the price of their goods and services. Also, businesses utilize the internet to transmit, communicate, and disseminate information in order to market their products, get clients‘ feedback, and conduct customer surveys. Consumers utilize the internet to evaluate costs, product characteristics, and the availability of after-sale services from various retailers in addition to making online purchases. With online shopping, the parties can conduct transactions from a very long distance, between the city and the countryside, from one country to another, or in the words, not limited by geographical space.
This allows businesses and consumers to save travel costs, meeting time while buying and selling. Moreover, for consumers, they can sit at home to order and shop for a variety of goods and services with quick payment (Minh, L. However, there are still a lot of stores or businesses that struggle to connect with customers. Besides, the results showed that perceived risk elements have negative effect on purchase intention, with functional risk having the greatest influence, followed by financial risk and psychological risk (Huong, P.
According to Phillip Kotler, research on consumer behavior is an important task and has great influence on the marketing decision process of business. Thus, correctly assessing and predicting consumer behavior will help e- 3 commerce business have the right business strategties in and increasingly competitive environment. Although there are many studies aiming to identify and evaluate the factors affecting the decision to buy clothes of consumers, only a few research has been conducted within the range of Bien Hoa City. Moreover, the data of the previous researches is still old, they have not updated the economic situation after the breakout of COVID-19.
Therefore, this research is considered to be new in context and research object. Overall objective The main goal is to identify and evaluate the elements influencing Bien Hoa City residents' online clothing purchasing choices then make suggestions for ways to help e-commerce platforms, people, or online businesses expand their types of consumers in Bien Hoa City. Detail objectives - Identify factors affecting the decision to buy clothes online of Bien Hoa citizens. - Evaluate the level of impact of the identified factors on shopping clothes online decision of people in Bien Hoa City.
- Propose managerial implcations for the enhancement of the marketing of companies or individuals doing online businesses. Research questions The following questions must be answered in order to deal with the research's objectives: - What factors influence people in Bien Hoa City's decision to shop for clothes online? 4 - Which level do the factors affect on the decision to buy clothes online of Bien Hoa citizens? - What tactics can e-marketplaces, online entrepreneurs, and enterprises use to improve their clothes sales? 1. Subject and scope of research 1.