Factors affecting customer's purchasing decision for consumer goods brands in Ho Chi Minh city in the integration competition, 2018

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.S. DANG TRUONG THANH NHAN

Ho Chi Minh City, 2018

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BACHELOR THESIS NGUYEN TRAN MAI VY

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

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BACHELOR THESIS NGUYEN TRAN MAI VY

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.D. 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.

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BACHELOR THESIS NGUYEN TRAN MAI VY

IMPLEMENTATION SCHEDULE

Table 1. Implementation schedule

From Jan / 2018

To Dec / 2018

Expect the content

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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

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BACHELOR THESIS NGUYEN TRAN MAI VY

TABLE OF CONTENTS

LIST OF ACRONYMS...........................................................................................8

LIST OF TABLES AND FIGURES........................................................................9

CHAPTER I. INTRODUCTION.......................................................................13

1.1. The urgency of the research:.....................................................................13

1.2. Purpose and target of the research: ...........................................................17

1.2.1. Purpose:.............................................................................................17

1.2.2. Target: ...............................................................................................17

1.3. Object and scope of the research: .............................................................17

1.3.1. Object of study: .................................................................................17

1.3.2. Scope of study: ..................................................................................17

CHAPTER II. LITERATURE REVIEW............................................................18

2.1. Overview of the brand:.............................................................................18

2.1.1. History of the brand: （Matt, 2014） ................................................18

2.1.2. Definition of the brand:......................................................................19

2.1.3. Component of the brand:....................................................................19

2.1.4. Scale of the brand: .............................................................................20

2.2. Overview of the consumer goods industry in Vietnam:.............................25

2.3. Overview of marketing:............................................................................38

2.4. Overview of brand marketing: ..................................................................44

2.4.1. Definition of brand marketing: （Kotler, Armstrong, Trifts, Peggy,

2004) 44

2.4.2. Using marketing in establishing and developing business's brand: .....45

2.5. Overview of customer: （Hitesh, 2018）.................................................46

2.5.1. Starting point .....................................................................................48

2.5.2. Focus.................................................................................................48

2.5.3. Means................................................................................................48

2.5.4. Ends...................................................................................................48

2.6. Consumer behavior: .................................................................................49

2.7. The decision to buy from consumers: .......................................................51

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BACHELOR THESIS NGUYEN TRAN MAI VY

2.7.1. The progress of decision to buy from consumers: ..............................51

2.7.2. The factors affect the decision to buy from consumers:......................53

2.7.2.1. Factors of cultural level:..............................................................54

2.7.2.2. Elements of social nature: ...........................................................54

2.7.2.3. Factors of a personal nature:........................................................55

2.7.2.4. Factors of psychological nature: ..................................................56

2.8. The views of researchers on perceived value: ...........................................57

2.9. Proposed model about factors affecting customer‟s purchasing decision to

consumer goods brand in Ho Chi Minh City: .....................................................64

CHAPTER III. RESEARCH METHODOLOGY ................................................68

3.1. Overview:.................................................................................................68

3.2. Research Design:......................................................................................69

3.3. Research Methodology:............................................................................70

3.3.1. Methodology of theoretical research: .................................................70

3.3.2. Practical research method: .................................................................71

3.4. Determination of the sample selection method: ........................................79

3.5. Build the scale:.........................................................................................80

3.5.1. Scale of Quality Value:......................................................................81

3.5.2. Scale of Price Value:..........................................................................81

3.5.3. Scale of Social Value:........................................................................82

3.5.4. Scale of Emotional Value: .................................................................82

3.5.5. Scale of Personnel Value: ..................................................................83

3.5.6. Scale of Distribution Density: ............................................................83

3.5.7. Scale of customer‟s purchasing decision to consumer goods brand: ...84

3.6. Data processing methods:.........................................................................85

3.6.1. Cronbach‟s Alpha analysing: .............................................................85

3.6.2. EFA Analysing: .................................................................................86

3.6.3. Regression and ANOVA analysing:...................................................87

CHAPTER IV. THE RESEARCH RESULT .......................................................89

4.1. Samples descriptions: ...............................................................................89

4.2. Reliability coefficients Cronbach‟s Alpha: ...............................................92

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BACHELOR THESIS NGUYEN TRAN MAI VY

4.2.1. Quality Value (QV): ..........................................................................92

4.2.2. Price Value (PCV):............................................................................93

4.2.3. Social Value (SV):.............................................................................94

4.2.4. Emotional Value (EV): ......................................................................95

4.2.5. Personnel Value (PV): .......................................................................96

4.2.6. Distribution Density (DD): ................................................................97

4.2.7. Customer‟s purchasing decision to consumer goods brand:................98

4.3. EFA Analysing (Exploratory Factor Analysis): ........................................99

4.3.1. EFA Analysis result of independent variables:...................................99

4.3.2. EFA analysis result of dependent variables: .....................................102

4.4. Comparative Analysis: ...........................................................................104

4.5. Analyze Regression model: ....................................................................106

4.6. Determining the difference by the characteristics of the research object: 109

4.6.1. Gender Differences:.........................................................................109

4.6.2. Age Differences:..............................................................................111

4.6.3. Educational Level Differences:........................................................113

4.6.4. Income Differences:.........................................................................115

4.6.5. Residence Differences: ....................................................................117

CHAPTER V. CONCLUSION.........................................................................120

BIBLIOGRAPHY ...............................................................................................127

REFERENCES 130

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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

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BACHELOR THESIS NGUYEN TRAN MAI VY

LIST OF TABLES AND FIGURES

 TABLES:

Table 2.1.4a. Scale of Lacoeuilhe (2000) Page 21

Table 2.1.4b. Scale of Thomson and partner (2005) Page 23

Table 2.1.4c. Research sample statistics Page 24

Table 2.3. Top 10 most-purchased manufacturers in 4 main cities

and rural areas in Vietnam Page 27

Table 2.3a. Brand ranking by Health and Beauty Page 29

Table 2.3b. Brand ranking by Family care Page 31

Table 2.3c. Brand ranking by Foods Page 33

Table 2.3d. Brand ranking by Beverages Page 35

Table 2.3e. Brand ranking by Diary and Dairy products Page 37

Table 3.3.2b Relationship between the hypothesis and the customers‟ decision

to choose consumer goods brands Page 78

Table 3.4. The list of urban and suburbs has been investigated Page 79

Table 3.5.1. Scale of Quality Value Page 81

Table 3.5.2. Scale of Price Value Page 81

Table 3.5.3. Scale of Social Value Page 82

Table 3.5.4. Scale of Emotional Value Page 82

Table 3.5.5. Scale of Personnel Value Page 83

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BACHELOR THESIS NGUYEN TRAN MAI VY

Table 3.5.6. Scale of Distribution Density Page 83

Table 3.5.7. Scale of customer‟s purchasing decision to consumer goods brand

Page 84

Table 4.2.1a. Reliability Statistics of Quality Value (QV) Page 92

Table 4.2.1b. Item-Total Statistics of Quality Value (QV) Page 92

Table 4.2.2a. Reliability Statistics of Price Value (PCV) Page 93

Table 4.2.2b. Item-Total Statistics of Price Value (PCV) Page 93

Table 4.2.3a. Reliability Statistics of Social Value (SV) Page 94

Table 4.2.3b. Item-Total Statistics of Social Value (SV) Page 94

Table 4.2.4a. Reliability Statistics of Emotional Value (EV) Page 95

Table 4.2.4b. Item-Total Statistics of Emotional Value (EV) Page 95

Table 4.2.5a. Reliability Statistics of Personnel Value (PV) Page 96

Table 4.2.5b. Item-Total Statistics of Personnel Value (PV) Page 96

Table 4.2.6a. Reliability Statistics of Distribution Density (DD) Page 97

Table 4.2.6b. Item-Total Statistics of Distribution Density (DD) Page 97

Table 4.2.7a. Reliability Statistics of Customer‟s decision (CD) Page 98

Table 4.2.7b. Item-Total Statistics of Customer‟s decision (CD) Page 98

Table 4.3.1a. KMO and Bartlett‟s Test Page 99

Table 4.3.1b. Total Variance Explained Page 100

Table 4.3.1c. Rotated Component Matrix Page 101

Table 4.3.2a. KMO and Bartlett‟s Test Page 102

Table 4.3.2b. Total Variance Explained Page 102

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BACHELOR THESIS NGUYEN TRAN MAI VY

Table 4.5a. Model Summary Page 106

Table 4.5b. ANOVA Analysis Page 107

Table 4.5c. Linear Regression Result Page 108

Table 4.6.1a. Compare differences in gender Page 109

Table 4.6.1b. ANOVA Comparing Differences by Gender Page 110

Table 4.6.2a. Compare differences in age Page 111

Table 4.6.2b. ANOVA Comparing Differences by Age Page 112

Table 4.6.3a. Compare differences in educational level Page 113

Table 4.6.3b. ANOVA Comparing Differences by educational level Page 114

Table 4.6.4a. Compare differences in income Page 115

Table 4.6.4b. ANOVA Comparing Differences by income Page 116

Table 4.6.5a. Compare differences in Residence Page 117

Table 4.6.4b. ANOVA Comparing Differences by Residence Page 118

 FIGURES:

Model 2.5. The stages of customer concept Page 47

Figure 2.6. Consumer Behaviors Model Page 50

Figure 2.7.1. Buyer‟s Decision Progress Model Page 51

Figure 2.8a. Sweeney and Soutar‟s customer perceived value measurement models

Page 59

Figure 2.8b. Sanchez et al.‟s customer perceived value measurement models

Page 61

Figure 2.8c. Five values affecting customer‟s choice behaviors Page 62

Figure 2.8d. Affecting of perceived value on customer‟s purchasing decision –

Research‟s Chang & Hsiao Page 63

Figure 2.9. Proposed Research Model (Theoretical Model) Page 65

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BACHELOR THESIS NGUYEN TRAN MAI VY

Chart 3.2. Research Design Page 69

Figure 3.5. Proposed Research Model (Official Model) Page 80

Chart 4.1a. Statistics by gender Page 89

Chart 4.1b. Statistics by age Page 90

Chart 4.1c. Statistics by education level Page 90

Chart 4.1d. Statistics by income Page 91

Chart 4.1e. Statistics by residence Page 91

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BACHELOR THESIS NGUYEN TRAN MAI VY

CHAPTER I. INTRODUCTION

1.1. 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.