MINISTRY OF EDUCATION & TRAINING UNIVERSITY OF ECONOMICS HCM CITY **************** NGUYEN THANH UY VU CONSUMER BEHAVIOR TOWARD ATM CARDS AT HO CHI MINH CITY Major: Banking ID: 60.12 Master of Banking Thesis Tutor : TS. HỒ VIẾT TIẾN Ho Chi Minh City - 2010 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENTS Two year studying with many subjects and hardly timetables, sometimes I feel exhausted to keep up both work and study at the same time. However, until now when I am taking the last steps on the studying road, I feel like ever stronger, confident with knowledge. I have learned at University of Economics Hochiminh City.
I would like to take this opportunity to express my sincere thanks to all professors who provide me with a lot of knowledge. I would like to express my deep gratitude to Prof Dr. Ho Viet Tien, my thesis tutor in supporting me to complete the thesis. His enthusiasm and whole-hearted guidance are strong encouraging for me to accomplish the research.
I would like to extend a grateful acknowledgement to the Board of Directors and the administration staff of University of Economics Hochiminh City for their assistance and supporting me in studying during years. Finally, thank you for being essential part of my life: family and friends, they always love, care and continuously encourage me in study and career. Love and thank you all! Nguyen Thanh Uy Vu LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS LIST OF FIGURE LIST OF TABLES CHAPRTER 1 : INTRODUCTION ……………………………………………. Rationale of the research………………………………………………….
Objective of the research …………………………………………………. The meaning of research …………………………………………………. The scope and methodology of research …………………………………. The research scope ………………………………………………………… 4 1.
The research methodology ………………………………………………… 4 1. Structure of thesis …………………………………………………………. 4 CHAPRTER 2 : LITERATURE REVIEW. Concept of consumer behavior …………………………………………….
Models of consumer behavior ……………………………………………. Characteristics influencing consumer behavior …………………………… 7 2. The stages of the buying decision process ……………………………….… 14 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Problem recognition: perceiving a need…………………………………… 15 2.
Information searching: seeking value …………………………………. Alternatives evaluation: assessing value ………………………………. Purchase decision: buying value ………………………………………. Post purchase behavior: value in consumption or use…………………….
Four types of consumer buying behavior ………………………………. Complex buying behavior ………………………………………………. Dissonance- reducing buyer behavior …………………………………. Habitual buying decision……………………………………………….
Variety- seeking buying decision ………………………………………. Bank marketing approach.… 22 CHAPTER 3 : RESEARCH METHODOLOGY …………………………. The major techniques of motivational research …………………………. Projective techniques in motivational research ………………………….
Source of information ………………………………………………….… 28 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. The survey process ………………………………………………………… 30 3. 32 CHAPRTER 4 : ATM CARD MARKET …. Overview about ATM card market at Vietnam ….
Bank alliances in Vietnam ….……………………………………………… 36 CHAPRTER 5 : RESEARCH FINDINGS …. Overview of respondent profile …………………………………………. Research on ATM card usage ……………………………………………. Penetrationof ATM card ………………………………………………….
Number of ATM cards own and use ……………………………………… 41 5. Length of ATM cards usage ………………………………………………. Bank of current usage ATM cards ………………………………………… 42 5. Average money of each withdrawal ……………………………………….
Active services linkage with ATM cards …………………………………… 44 5. People influence to the choice about bank of ATM cards ………………… 44 5. Place to registered current usage ATM cards ……………………………. 45 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Level of satisfaction with current usage ATM cards ……………………… 47 5. The barrier of ATM cards non-users………………………………………. New ATM card and service ………………………………………………… 48 5. Intend to have new card ………………………………………….
Bank choose in future for new ATM cards ………………………………… 49 5. Source of information to decide banks for new ATM cards ………………. Kinds of information to decide banks for new ATM card ………………. Acceptable fee for new ATM cards ………………………………….
Place to register new ATM cards ……………………………………. Impact of promotion program …………………………………………. Criteria of new ATM cards …………………………………………. Evaluation services related to ATM cards……………………………… 56 5.
Research on banks …………………………………………. 57 CHAPRTER 6: CONCLUSTION AND RECOMMENDATION ……………. Research finding conclusion ………………………………………………. About scale system………………………………………………………….
About the research finding.2 Recommendation for banks at HCM city …………………………………. 62 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Limitation ………………………………………………………………… 0 APPENDIX Interview guideline for focus group discussion Questionnaire Statistic and test analysis with SPSS REFERENCE LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 2.1: Model of consumer behavior ………………………………….2: Maslow’s hierarchy of needs ………………………………….3: Buyer decision process………………………………………… 15 Figure 2.4:Steps between evaluation of alternatives and purchase decision 17 Figure 2.5: Four types of Consumer Buying Behavior …….6: The Adoption Process ………………………………………… 21 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF CHARTS Chart 5.1: Respondent Profile Analysis – Gender …………………………….2: Respondent Profile Analysis - Age ………………………………… 37 Chart 5.3: Respondent Profile Analysis – Occupation ………………………… 38 Chart 5.4: Respondent Profile Analysis – Monthly Income …………………….5: Respondent Profile Analysis – Education …………………………… 39 Chart 5.6: Top of mind awareness ……………………………………………….7: Spontaneous brand awareness ……………………………………….8: Aided brand awareness ……………………………………………….9: Penetration of ATM card …………………………………………….10: Number of ATM card own and use ………………………………… 41 Chart 5.11: Length of ATM cards usage ………………………………………… 42 Chart 5.12: Bank of current usage ATM cards ………………………………….13: Average money of each withdraw ………………………………… 43 Chart 5.14: Active services linkage with ATM cards ………………………….15: People influence to the choice about bank of ATM cards ………….16: Place to registered current ATM cards ……………………………… 46 Chart 5.17: Reason to chose that place to registered current ATM cards ……….18: Level of satisfaction with current usage ATM cards ……………… 47 Chart 5.19: The barrier of ATM cards non-users ………………………………… 48 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.20: Intend to have new card …………………………………………….21: Bank chose in future for new ATM cards ………………………….22: Sources of information to decide banks for new ATM cards ……….23: Kinds of information to decide banks for new ATM cards………….24: Acceptable fee for new ATM cards ………………………………….25: Place to register new ATM cards …………………………………… 53 Chart 5.26: Criteria to decide place for new ATM cards registration ………….27: Impact of promotion program on decision for new ATM cards …….28: Criteria of new ATM cards ………………………………………… 55 Chart 5.29: Evaluation service related to ATM cards …………………………….30: Evaluation of banks ………………………………………………….31: Evaluation attractiveness of banks …………………………………… 58 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 1 CHAPRTER 1 : INTRODUCTION 1. RATIONALE OF THE RESEARCH Within several recently years, when macro economics has many dramatic changes and at the same time, it impacts on consumer behaviors towards to banking services, especially usage of different kinds of card.
Personal finance service of bank have raised a need of evaluation current situation and potential exploration of market. And then, building up strategy to develop in both short term and long term. Within personal finance service, other services (such as savings, loan, etc) established, while card service is still emerging. Developing card service is future growth in retailing banking strategy Considering that, study about consumer behaviors toward card service is necessary and bringing benefits to business.
The bank could know which are consumer’s needs about this kind of personal finance service. It can help management team define solutions to improve and build up strategy of card service; then sustaining the position and gain more market share in banking industry. This is also the rationale of research “CONSUMER BEHAVIOR TOWARD ATM CARDS AT HO CHI MINH CITY” This research is aiming to, draw down consumer profile of cards. And at the same, studying the current situation of card market and find out conclusion to contribute marketing plan of this emerging market, which is really potential and interesting.
OBJECTIVE OF THE RESEARCH The first objective of this research is, making clear theories about consumer behaviors - which is one of basic process in marketing planning. And base on these theories, developing research model to: LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 2 (1) Define consumer profile of cards service, thru questions about sex, age, occupation, income, etc. (2) Study consumer evaluation about card services of different banks in market, then, define positioning, attractiveness of each bank on card service. (3) Study usage behaviors of current users and potential users of card service, thru questions about : - The purpose of using card service among current users.
- Which information current users look for and sources of these information. - Which criteria are used for qualification card service, bank, and bank counters. - How the register for new card? When? Is there any kind of promotion consumers prefer? 1. THE MEANING OF RESEARCH This research brings some reality meaning for banks in developing card service and securing their position in total banking market.
It could help banks to have an overall about current user profiles, to sustain loyalty consumers; providing information to decide marketing plan to gain back lapped users and attract more new users, explore potential segmentation. In details as following: LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 3 Information Marketing Strategy Define service as consumer need Purpose of usage Service developing strategy Communication plan and strategy Source and kind of information Design strategy Register without enough Display, card design, attract new users information Promotion strategy Role of branding, Reason of banking choosing Segmentation strategy Brand developing strategy Reason of service chosing Service developingstrategy Reasong of bank counters chosing Distribution strategy Marketing activities at bank counters 1. THE SCOPE AND METHODOLOGY OF RESEARCH 1. The research scope - Geography: downtown districts of HCM city - Target respondent: consumer from 20 – 49 year olds at downtown districts of HCM city - Service: ATM card service which is available at HCM city - Size: 100 questionnaires.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail. The research methodology Research process includes two main periods’ qualitative study and quantitative study as following: Qualitative studying was conducted by in-depth interview and focused group discussion with consumers to define evaluation criteria, chose factors which consumer care, adjust and add on relative scale to design questionnaire using for step of quantitative studying. Quantitative studying was conducted by interviewing consumers thru questionnaire. Data collection was cross-checked and processed by software SPSS 16.
STRUCTURE OF THESIS This thesis has 5 chapters as following: Chapter 1: Introduction Including about rationale of research, purpose of research with reality meaning. And introduce about scope and method of research. Chapter 2: Literature Review Include general theories and model related to consumer behaviors and buying decision process, which is principle using for research implementation. From that, develop research model and factors in model.
Chapter 3: Research Methodology Including consumers’ need and source of information, then define research methodology and data collection, research process, developing questionnaire. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 5 Chapter 4: ATM Card Market Introduce overall about ATM card and card service in personal finance in Việt Nam. From that, define role, position and potential of card service. Chapter 5: Research Findings Present the findings of research and give comments, from general information about respondent to details of: service appraisal, usage behavior towards card service.
Chapter 6: Conclusion & Recommendation Give the key findings of research to propose solutions for banks. And self- assessment about limitation of research and the suggestion topic for research in future. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 6 CHAPRTER 2 : LITERATURE REVIEW 2. CONCEPT OF CONSUMER BEHAVIOR According to the American Marketing Association1, Consumer Behavior is defined as "the dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives”.
More generally, Consumer Behavior is the psychology behind Marketing and the behavior of consumers in the Marketing environment. According to Michael Solomon (2006), consumer behavior may be defined as the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires. A consumer may purchase, use and/or dispose of a product, but these functions may be performed by different people. In addition, consumers maybe thought of as role players who need different products to help them play their various parts.