Thesis for the Degree of Master Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city June 2017 Department of Business Administration Graduate School of Soongsil University Do Thi Hong Xinh Thesis for the Degree of Master Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city June 2017 Department of Business Administration Graduate School of Soongsil University Do Thi Hong Xinh Thesis for the Degree of Master Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city A thesis supervisor: prof. Shin, Ho Chul Thesis submitted in partial fulfillment of the requirements for the Degree of Master June 2017 Department of Business Administration Graduate School of Soongsil University Do Thi Hong Xinh To approve the submitted thesis for the Degree of Master by Do Thi Hong Xinh Thesis Committee Chair Gim, Gwang Yong (signature) Member Park, Jong Woo (signature) Member Hoang Dinh Hai (signature) June 2017 Graduate School of Soongsil University ACKNOWLEDGEMENT I would like to thank my supervisors Prof. Shin Ho Chul, who gave me valuable assistance and advices in completing the dissertation and the Master of Business Administration course. I also thank to all lecturers and staff of Soongsil University and Hong Duc University for their supports.
Thanks to Home Centre electronic supermarket (HC) in Thanh Hoa city and my workmates who provided me information to fulfill the research. Specially thanks to my family and my friends for their encouragement during the time to study and do the research. TABLE OF CONTENTS ABSTRACT. viii CHAPTER 1 INTRODUCTION .1 The urgency of the subject.3 The scope of research.4 Contributions of the subject .5 The structure of the thesis.
4 CHAPTER 2 THEORICAL BASIS AND STUDY MODEL .1 Theories related to the decision of the buyers.1 The theory of consumer behavior .2 Theory of Reasoned Action (TRA).3 Theory of Planned Behavior (TPB) .4 Theory of After Sales Service .2 Factors that affect the behavior of the buyers .4 The proposed research model and research hypothesis .1 The proposed research model .5 Summary of chapter 2 .1 Collection of information .2 Sources of information .1 Primary information sources .2 Secondary information sources .1 Qualitative research design: .2 Qualitative research results .1 Sample design of research and data collection .3 Data analysis method.6 Summary of chapter 3. 47 CHAPTER 4 RESEARCH RESULTS .1 Describe survey sample.2 Exploratory Factor Analysis (EFA) .1 EFA results of independent variables.2 The EFA analysis for dependent variable .3 Testing the reliability of the scale by Cronbach's Alpha.4 Correlation and regression analysis .1 Correlation coefficient between variables.3 Review the fit of the regression .4 Determine the importance of the variables in the model .5 Testing the difference according to personal characteristics .1 Difference testing according to the gender of the respondents.2 Difference testing according to the age of the respondents .3 Difference testing according to monthly income of the respondents .4 The Difference testing according to the Frequency to the Supermarket63 4. 64 CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS .1 Increasing the variety of products .2 Completing the pricing policy .3 Constantly improving service quality.4 Complete promotional activities. Building a wide distribution system .3 Limitations and recommendations for futher studies.
81 - iv - LIST OF TABLES [Table 3-1] Response rate. 40 [Table 3-2] Scale of components of the decision to purchase electrical goods through supermarkets in Thanh Hoa city of consumers. 41 [Table 4-1] Characteristics of the respondents. 48 [Table 4-2] Results table of independent variables EFA analysis.
51 [Table 4-3] Results of EFA for dependent variable. 52 [Table 4-4] Cronbach's Alpha of the scale. 53 [Table 4-5] Results of Pearson correlation analysis. 59 [Table 4-8] Statistical tables of each variable in the regression model.
61 -v- LIST OF FIGURES [Figure 2-1] Model of Theoretical Attitude - Consumer Behavior. 7 [Figure 2-2] Theoretical model of buying behavior. 8 [Figure 2-3] Reasoned action theory model – TRA. 11 [Figure 2-4] The planned behavioral theory model - TPB.
12 [Figure 2-5] Detailed model of the factors that influence consumer behavior. 24 [Figure 2-7] Model of the factors influencing the choice of the supermarket channel for buying fresh food from consumers of Chu Nguyen Mong Ngoc and Pham Tan Nhat, 2013. 28 [Figure 2-11] Proposed research model. 36 - vi - LIST OF ACRONYM IMF : International Monetary Fun.
TPP : Trans-Pacific Strategic Economic Partnership AEC : ASEAN Economic Community ANOVA : Analysis of Variance B2B : Business to Business EFA : Exploratory Factor Analysis KMO : Kaiser-Meyer-Olkin Sig. : Significance level SPSS : Statistical Package for Social Sciences - vii - ABSTRACT Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city Do Thi Hong Xinh Department of Business Administration Graduate School of Soongsil University The subject of research on the factors influencing the decision of buying grapped a bunch of interest of many academic researchers and applied on the world marketing. It has been studied in many years. However, the field of electronic businesses has very little research on.
That is why I am interest in and selected the subject for my research: “Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city”. The purpose of research topic is on the consumer’s behavior with the interest of electronic products of HC electronic supermarket in Thanh Hoa city. The research incorporates quantitative research to develop a scale for measuring the quality factors affecting customer’s decision in purchasing electronic appliances with 25 observation variables combined with qualitative research aimed - viii - at assessing most influencing factors to customers decision of buying goods at HC supermarket in Thanh Hoa city. Through qualitative research with criteria such as Product, Price, Service, Promotion, Place, the researcher have some assessments about customers’ decision are those: both 5 independent variables positively affect the dependent variable of the model due to the positive beta coefficient, in which the Product variable has the greatest influence, then the Price, Promotion, Service.
The Place variable has the smallest Beta, so the impact of the Place variable on the customer decision of buying electronic goods is minimal. Evaluating the factors affecting customers decision of buying electronic goods at HC in Thanh Hoa city in the past time, especially highlighting the differences in customers’ decision based on their characteristics in the recent time, the solutions for enhancing electronic supermarkets’ strategies for attracting customers concentrated into strategies in the field of improving Product, Price, Promotion and training staffs for increasing customers satisfaction with business’ Service to help the business serve their customers better in the future. Key words: factors, electronic devices, supermarket, customer’s decision - ix - CHAP TER 1 INTRODUCTION 1.1 The urgency of the subject In recent years, the world economic situation has a positive outlook. According to the IMF (IMF, January 19, 2015), the world economy grew at 3.3% in 2014, is predicted that its growth will be about 3.
Based on the the report of the Vietnam General Statistics Office, Vietnam’s economic growth rate is 5.98% in 2014 and it is forecasted that Vietnam will achieve a growth rate at 6. The electronics industry also contributed a significant part of the growth. According to the report by market research company GFK on 15/08/2015 the purchasing power of electronic market increased sharply.In the first half of the second quarter of 2015, the whole industry growth rates reached 19.8%, whereby the positive business results of most Electronics retail companieshave helped for the painting of the better economic picture. Inthis situation, the electronics manufacturers, and retailers are competing fiercely for market share beforeVietnam finishes the negotiations of Trans-Pacific Strategic Economic Partnership (TPP) and joins the ASEAN Economic Community (AEC-ASEAN Economic Community) at the end of the year 2015.
This marked a "turning point" for the country, and opened big opportunities for the economy. However, this will bring not less challenges for Vietnam's economy, if there is not a good preparation. In the same picture, some major economic sectors, specially, the electronic retail businesses will be under pressure of being acquired by foreign investors. -1- In the context of increasingly economic competition, the understanding of the determinants of customer loyalty can create advantages for the increase in sales.
Besides, the comprehensiveness of consumer behavior is the priority requirement. According to Philip Kotler, the shopping is influenced by intrinsic factors (psychological factors and personal factors), and external factors (cultural factors and social factors). In addition, previous studies showed that factors including the characteristics of marketing 4P: Product, Price, Promotion and Place are also important factors that directly affect consumers. Meanwhile, research by Chang & Hsiao (2011) revealed that factors attracting carbuyers at Taiwan market is perceived value that is characterized by the direction and decision of purchasing.
Moreover, the study of Chu Nguyen Mong Ngoc and Pham Tan Nhat (2013) in Ho Chi Minh City and Ba Ria Vung Tau showed that factors influencing the decision of buying fresh foods in supermarkets are factors related to products, the form of packaging, price, and marketing. The studies are about consumer behavior but on different business areas. This type of the behavior will have more changes in the the purchasing decisions of consumers. The subject of research on the factors influencing the decision of buying grapped a bunch of interest of many academic researchers and applied on the world marketing.
It has been studied in many years. However, the field of electronic businesses has very little research on. That is why I am interest in and selected the subject for my research: “Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city”. The purpose of research topic is on -2- the consumer’s behavior with the interest of electronic products.
The author hopes to receive more contribution to improve the research.2 Research objectives The first objective of the research is identifying all factors affecting the decision to buy electrical goods at the HC supermarket system in Thanh Hoa city. Secondly, the research will identify the factors that really matter to and directly affect the decision to buy electrical goods through the HC supermarket in Thanh Hoa city. Thirdly, the researcher will give recommendations, building models, proposing businesses (supermarkets) to create solutions, features, and services to meet the requirements of consumers.3 The scope of research Due to the subjective capacity of the writer, the essay refers only to the following issues: Firstly, thesis focuses on the factors influencing the decision to buy electrical goods at the HC supermarket in Thanh Hoa City, based on the shopping behavior of individual consumers. Secondly, the survey location is at HC supermarket in Thanh Hoa City Time of survey is from 01/09/2016 to 30/1/2017.4 Contributions of the subject -3- In the context of fierce competition in the economic world, the subject bring some sense on business practices tocompanies, marketing executives, and market researchers on electronic-goods area as follows: Research results contributed to clearly indentifying the key factors that influencing the decision to purchase your machine.
This creates the basis for planning the program of business marketing and building the distribution system at the standard, and increasing the decision to buy electronic devices through HC supermarket in Thanh Hoa. Research results help to market researchers, distributors and marketing executives to capture the role of measurement scale and the factors that influence consumer decisions. This can advance the completion of market-study projects, making the methods attracting the customers, increasing the capacity of competition between businesses; as well as directing marketing programs to the right customers. Research results are used as the advizing documents for the researchers on consumption behavior at electronical-goods supermarket in Thanh Hoa city.5 The structure of the thesis The thesis consists of 5 chapters.
Chapter 1: INTRODUCTION This chapter presents the urgency of the subject, its objectives, its scope, its limitation, and its layout.