UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS ADMINISTRATION --- NGUYEN VO BAO NGOC PERCEPTIONS OF VIETNAMESE CONSUMERS IN PURCHASE INTENTION AT WET MARKETS AS WELL AS THEIR READINESS INTO THE TECHNOLOGICAL TRANSFORMATION MAJOR : BUSINESS ADMINISTRATION CODE: 7340101 GRADUATION THESIS INSTRUCTOR: DR. LE THI HAI YEN HO CHI MINH CITY, MARCH 12TH 2024 UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS ADMINISTRATION --- GRADUATION THESIS PERCEPTIONS OF VIETNAMESE CONSUMERS IN PURCHASE INTENTION AT WET MARKETS AS WELL AS THEIR READINESS INTO THE TECHNOLOGICAL TRANSFORMATION MAJOR : BUSINESS ADMINISTRATION CODE: 7340101 STUDENT: NGUYEN VO BAO NGOC STUDENT ID: K204070365 INSTRUCTOR: DR. LE THI HAI YEN i Table of contents Abstract. 1 Chapter 1: Introduction and theorical backgrounds.
7 Chapter 2: Conceptual framework and research hypotheses .1 Product usage automaticity .7 Channel-switching intention. 19 Chapter 3: Research method .1 Measurement of constructs .2 Limitations and directions for future research. 57 Appendix 1: The outer loadings of 7 constructs. 57 Appendix 2: The HTMT between variables.
62 Appendix 3: Survey form. 63 iii Table of figures Figure 1. Final conceptual framework. 41 Table of tables Table 4.
1 Description of sample. 2 Channel usage of consumers. 3 Indexes of internal consistency. 4 The VIF values.
5 Coefficients of determination (R²). 8 The original sample and p-values of each hypothesis. 40 iv LIST OF ABBREVIATIONS AVE Average variance extracted CB-SEM Covariance-based Structural Equation Modeling CR Composite Reliability CSI Channel-switching intention FQ Food quality HTMT Heterotrait-monotrait PA Place attachment PI Purchase intention PLS-SEM Partial least square Structural Equation Modeling PUA Product usage automaticity RB Relational benefits SEM Structural Equation Modeling TR Technology readiness VIF Variance Inflation Factor 1 Abstract In Asia, specifically in China, Hong Kong, Taiwan, there are preceding studies in the field of special features of wet markets, the replacement of supermarkets for traditional markets. However, in Vietnam, there is a small number of studies involved in wet markets, especially the relationships between the characteristics of traditional markets and consumers.
Thus, in this research, it provides the perception as well as purchase intention at wet markets of consumers in the 2 main places: Dong Nai province and Ho Chi Minh city. Moreover, this study also mentions the technology readiness of consumers to see their willingness if the new technology is applied into wet markets. A conceptual framework is formed to illustrate the reaction of 202 consumers. To analyze the data in this study, PLS- SEM is used as the technique modeling with appropriate indexes to prove the validity and reliability of variables as well as witness the impact between latent variables.
The results show that the purchase intention is influenced by the place attachment and food quality. Besides that, technology readiness also has an impact on the channel-switching intention of consumers. Keywords: Wet markets, Purchase intention, Technology readiness Chapter 1: Introduction and theorical backgrounds Today, as the world continues to develop, with places and cities becoming more urbanized as well as modernized, it is witnessed that there is a greater concentration and expansion of supermarkets. Since the government desires to build cities in a more civilized manner.
Besides that, retail modernization, along with super marketization, is thought to guarantee the hygiene and safety of food supply, particularly vegetables (Wertheim-Heck et al. Moreover, there are policies, regulations related to food safety (Wertheim-Heck et al., 2015) and the new form of marketing urban food retail (Zhang & Pan, 2013) emphasized the importance of supermarkets. According to Thanh et al., (2014), supermarkets offer a wide range of products, including consumer goods, electronics, apparel, fresh and processed food, and food. Supermarkets provide consumers with access to 2 luxury goods and foreign goods that are not available in conventional markets.
The supermarket's richness and diversity are what draw customers in. Additionally, since every product offered in supermarkets has a verified place of origin, customers may avoid purchasing subpar, counterfeit, or pirated goods. Another compelling argument in favor of supermarket shopping among consumers is this one. However, those are not the reasons why wet markets do not outweigh supermarkets.
In Asia such as China, Singapore, Taiwan, Vietnam, etc., traditional markets play an important role in daily lives and other dimensions. According to Huang et al., (2015), wet markets outperform supermarkets in terms of fresh food availability. Traditional markets also keep valuable advantages like freshness and food preparation to compete with their modern alternatives (Goldman et al. Regarding cultural and social dimensions, wet markets create a friendly environment and social interactions, behaviors between sellers and buyers during purchasing (Mele et al.
Customers who frequent the market on a daily basis see it as a place to connect and converse with friends in addition to making purchases. Furthermore, customers will establish intimate ties with a few tiny firms in the market when making long-term purchases there. They can then purchase products at a reduced cost from there. In addition, two more factors that draw a lot of customers to traditional marketplaces are the abundance of fresh food and the affordable costs (Thanh et al.1 Wet markets The term 'wet market' refers to the routine act of hosing down and washing the market's flooring with water in order to keep the area clean and sanitary (Mele et al.
According to Zhang & Pan (2013), wet markets are defined as traditional and popular sort of food marketplace in which a variety of independent merchants offer various 'wet items' (fresh food). Another definition of wet markets is that they are made up of small vendors who specialize in one fresh food line (meat, fish, fruit, or vegetables) or a subline (e., leaf vegetables, exotic fruits). Retailers complement one another by providing a complete fresh food assortment. 3 Furthermore, a number of adjacent stalls sell the same product lines, allowing for price and quality comparisons (Goldman et al.
In Hongkong, there are 2 types of wet markets: government-owned and controlled under a set of laws and regulations. The markets in residential districts are part of the public market system run by the Urban and Regional Councils. These markets are huge and frequently operate in multilevel enclosed structures with convenient locations near bus and train stations, as well as government buildings and other public institutions. This system also includes open-air markets, which are mainly found in older communities.
The second system is found in public housing developments. It is made up of smaller enclosed markets overseen by the Housing Authority (Goldman et al. In Singapore, wet markets are mainly open-air, partially protected venues populated by dozens of sellers selling fresh food goods such as fish, poultry, pig, cattle, vegetables, and fruits, as well as spices and other sundries (Mele et al. According to Zhong et al., (2022), a typical wet market in urban China is a concrete commercial facility with dozens to hundreds of vending stalls arranged in rows, located within a 10-minute walk of a populated neighborhood.
In spite of the fast development of modern retail, traditional markets continue to thrive in metropolitan China, which serves as the cornerstone of fresh produce delivery in the Chinese food system since they are viewed as superior to supermarkets in terms of food price, variety, and freshness. Wet markets are perceived as similarity at countries such as Hongkong, Taiwan, Vietnam, which are considered as the features of most Asian nations. In the context of Vietnam, it is also defined as the place selling not only fresh meat, pork, food product but also daily consumer goods. Wet markets are also categorized as informal and provisional form, which are organized at the vendor streets.
Meanwhile, others are situated in a certain section of the town or hamlet and are well-organized. In general, it is usually to witness slices of meat, fish, and fresh food are left out at room temperature on tables or in stalls (Nhung et al.In terms of authorization, wet markets in Vietnam are also separated to 2 kinds: government-owned and spontaneous at the local level. Besides that, these types of 4 wet markets, there is another kind of traditional markets related to immensely in culture such as Cai Rang - floated market in Western of Vietnam or Ben Thanh market in Ho Chi Minh city. These markets are inclined to illustrate the culture and specifically local customs, travel rather emphasized the daily trading between vendors and local shoppers (Huynh, 2015).
One of the disadvantages of wet markets is the sanitary and hygiene. There are rarely wet markets being tidy and clean. In contrast, a majority of market floors are damp, oily, and filthy from water used to wash vegetables, sanitize vending stalls, package meat and seafood, and keep fish alive. Moreover, there are stalls that often feature piles of rubbish, mainly rotten vegetable bits.
It also exists annoying smells linger in these markets, caused by the lack of ventilation systems and hot weather. Sanitary issues occur due to negligent vendors, but fundamentally are related to insufficient facilities and inattentive owners (Zhong et al. The locations of some wet markets were marginalized in the capital market before those areas became the most valuable in the city. However, with the low revenue from the rent stalls of traditional markets, it does not create competitive profits as well as attract more commercial investment.
It is more potential when turning the site of wet markets into the building with great chances of land development (Zhang & Pan, 2013). Subsequently, there is a trend to globalize, modernize. Thus, government would increasingly desire to develop in a more civilized manner by constructing and expanding supermarkets in the shopping and buying habits of citizens. Furthermore, in the growth of nuclear families of parents and a child living in the apartment, this type of family has the tendency to buy groceries, vegetables, pork through the supermarkets, stores upstairs their apartment rather than in wet markets.
Hence, it partly generates some struggles in the development and maintenance of wet markets (Wertheim-Heck et al. As having mentioned above, Thanh et al., (2014) states that the replacement of supermarket is the disadvantage for wet markets. Supermarkets sell a variety of commodities, such as food, apparel, electronics, consumer goods, and both fresh and processed food. Supermarkets give customers access to high-end and international products that aren't found in traditional markets.
The diversity and wealth of the store are what 5 entices customers. Additionally, consumers may avoid buying inferior, fake, or pirated goods because every product sold in supermarkets has a verified place of origin. This is just another strong argument for consumers to shop at supermarkets. As stated by Mele et al., (2015), food supplies from vegetables, pork, poultry, etc., in traditional markets tend to be fresher than other places like supermarkets, convenient stores.
Moreover, some buyers suppose that although the origin of products can be guaranteed in supermarkets, and they frequently purchase packaged and pre-cooked goods, they prefer to go to the wet markets to get fresh ingredients. Besides the fresh supplies, wet markets in Vietnam usually are located in convenient sites near the densely populated areas, outside the streets, which buyers do not need to park their vehicles to purchase goods. In terms of economic side, in comparison of expenses with supermarkets, which consists of higher similar fees as well as additional expenses from processing, categorizing, packaging, refrigeration, specialized store facilities, distribution and processing center, etc. Wet markets gain more competitive costs such as lower loss from shrinkage and waste, lower labor expenses, etc.
Hence, the price of goods and ingredients bought in traditional markets is cheaper than other places thanks to their use of low-cost retail technologies; their reliance on family members' labor; and the basic shopping procedures. In addition, when buying at open-air markets, purchasers could get the precise amount, size of goods, vegetables, pork, etc., as they want, which is different from packaged amount of food in the supermarkets (Goldman et al.