Factors influencing consumers behavior of wine in Ho Chi Minh city

TRƯỜNG ĐẠI HỌC MỞ TP.HCM

HO CHI MINH CITY OPEN UNIVERSITY

UNIVERSITÉ LIBRE DE BRUXELLES

SOLVAY BRUSSELS SCHOOL

MBMM4

Le Quang Vinh

Factors Influencing Consumers’ Behavior of Wine

In Ho Chi Minh City

MASTER PROJECT

MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor’s name: Dr. Ha Nam Khanh Giao

Ho Chi Minh City

(2010)

i

DECLARATION

I declare that this study does not incorporate without acknowledgment any material

previously submitted for a degree or diploma in any university; and that to the best of

knowledge it does not contain any materials previously published or written by another

person except where due reference is made in the text.

……………………………………………. December 14th, 2010

Signature of the Student. Date.

Le Quang Vinh.

Master of Business and Marketing Management.

ii

ACKNOWNLEDGEMENT

This study would not be possible without the advice, assistance, cooperation and

encouragement from a number of people. I would like to acknowledge their help and

support. The most important individual have been my supervisor, Professor Dr. Ha Nam

Khanh Giao. I am most indebted to Professor Dr. Khanh Giao, who showed an interest and

attention in my study. His advice and generous guidance since the first term that I begun

this study have been very supportive and lead me to the right track of study, and made this

research possible.

Moreover, I would like to express my appreciation to Professor Dr. Nguyen Minh Kieu,

who provided me the initial guidance of research method. I also would like to thank

Professor Dr. Hoang Trong, who provided me valuable knowledge of business statistics

and SPSS. Dr Trong also gave me very precious comments on data processing methods

and how to explain the SPSS results. Solathien company and my mentor, Mr. Nguyen Phu

Hai also have my deep gratitude for providing me the market report materials and value

discussions on the consumers’ choice of wine.

Besides, I would like to thank Mr. Serge Bywalski and Ms. Nguyen Thi Mong Thuy,

Coordinators of the MBMM Program for their devoted supports. Mr. Phan Le Dung,

Solvay Vietnam Alumni also has my deep gratitude for valuable advices. Moreover, I

would like to thank Solvay Business School Vietnam and Ho Chi Minh City Open

University for delivering the wonderful MBMM program.

Last, but not least, I wish to thank my family members for their love, assistance,

encouragement and patience.

iii

TUTOR’S COMMENTS

 The study is a highly practical research. The research objectives were defined

correctly. The structure of the study is rational.

 The author used the proper research method. The findings are quite interesting with

suitable scientific approach. In the result, the author pointed out that the symbolic

benefits are the most important factor influencing the consumers’ behavior of wine

in Ho Chi Minh City. Besides, the country of origin and grape varieties, which are

being used as wine value proposition, were proved to be not significant. Based on

this finding, the author also proposed some useful suggestions for marketers of

wine in the market.

 However, the study has some limitations, such as the survey area and sampling

method; or the generalised target population …

 In summary, the quality of the study meets the requirements (both content and

presentation) of a Marketing master thesis.

I propose this study to be presented in front of the examiner board of the Solvay – OU

Master of Business and Marketing Management Program.

Ho Chi Minh City, December 14th, 2010

Dr. Ha Nam Khanh Giao

iv

CONTENT

DECLARATION....................................................................................................................i

ACKNOWNLEDGEMENT ..................................................................................................ii

TUTOR’S COMMENTS......................................................................................................iii

CONTENT............................................................................................................................iv

LIST OF FIGURES ..............................................................................................................vi

LIST OF TABLES...............................................................................................................vii

1. EXECUTIVE SUMMARY...........................................................................................1

2. INTRODUCTION.........................................................................................................2

2.1. Chapter Overview ...................................................................................................2

2.2. Rationale of the Project...........................................................................................2

2.3. Vietnam Wine Market.............................................................................................2

2.4. Aim of the Research................................................................................................6

2.5. Research Outline .....................................................................................................8

3. LITERATURE REVIEW..............................................................................................9

3.1. Chapter Overview ...................................................................................................9

3.2. Consumer Behavior Models....................................................................................9

3.3. The Motivation to Drink Wine..............................................................................15

3.4. Vietnamese Consumer Lifestyle ...........................................................................19

3.4.1. Vietnamese favor foreign brands...................................................................19

3.4.2. Spending on alcoholic drink ..........................................................................19

3.4.3. Vietnamese drinking habits ...........................................................................20

3.5. Chapter Summary..................................................................................................20

4. RESEARCH DESIGN ................................................................................................21

4.1. Chapter Overview .................................................................................................21

4.2. Conceptual framework ..........................................................................................21

4.3. Hypotheses Development......................................................................................22

4.4. Concept Operationalization...................................................................................22

4.5. Survey Design .......................................................................................................25

4.5.1. Questionnaire design......................................................................................25

4.5.2. Sampling method ...........................................................................................25

4.5.3. Sample size ....................................................................................................25

4.6. Chapter Summary..................................................................................................26

5. DATA ANALYSIS & FINDINDS .............................................................................27

5.1. Chapter Overview .................................................................................................27

5.2. General Descriptive Information...........................................................................27

5.2.1. Research response rate...................................................................................27

5.2.2. Gender, Age and Income ...............................................................................27

5.2.3. Favorite communication channels and wine consuming place......................29

5.3. Factors Influencing of Wine Consumption...........................................................31

v

5.3.1. EFA for all the valid scales............................................................................33

5.3.2. Multiple regression analysis ..........................................................................35

5.3.3. Discriminant analysis for conceptual framework 1 and hypotheses testing..38

5.3.4. Discriminant analysis for conceptual framework 2 and hypotheses testing..41

5.3.5. Evaluation of the relationship between the factors and Average bottle

consumed per month ...................................................................................................42

5.3.6. Evaluation of the relationship between Communication channel and

Consuming place with Average bottle consumed per month......................................46

5.3.7. Classification of the responses of open question ...........................................47

5.4. Findings.................................................................................................................48

5.5. Chapter Summary..................................................................................................49

6. RESEARCH CONCLUSIONS...................................................................................50

6.1. Chapter Overview .................................................................................................50

6.2. Research Summary................................................................................................50

6.3. Research Limitations & Future Research Suggestions.........................................51

6.4. Managerial Implications........................................................................................52

6.5. Chapter Summary..................................................................................................54

REFERENCES ....................................................................................................................55

APPENDICES .....................................................................................................................57

Appendix 1: Survey questionnaire ..................................................................................57

Appendix 2: SPSS results................................................................................................64

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LIST OF FIGURES

Figure 2.1: Sales of Wine by Subsectors - Total Volume 2004 - 2009 .................................5

Figure 2.2: Sales of Wine by Subsectors - Total Value 2004 - 2009 ....................................5

Figure 2.3: Research process.................................................................................................7

Figure 3.1: A.H. Maslow’s hierarchy of needs....................................................................10

Figure 3.2: Howarth Sheth Model .......................................................................................11

Figure 3.3: Engel-Blackwell-Kollat Model .........................................................................12

Figure 3.4: Nicosia Model ...................................................................................................13

Figure 3.5: Input, Process, Output Model............................................................................14

Figure 3.6: A purposive analysis of wine consumption.......................................................17

Figure 3.7: Why do people drink wines?.............................................................................18

Figure 4.1: Conceptual framework ......................................................................................21

Figure 4.2: Detail conceptual framework ............................................................................24

Figure 5.1: Gender of respondents.......................................................................................28

Figure 5.2: Age groups of respondents................................................................................28

Figure 5.3: Average monthly income of respondents..........................................................29

Figure 5.4: Marketing efforts - Communication channel ....................................................30

Figure 5.5: Marketing efforts - Wine consuming place.......................................................31

Figure 5.6: Adjusted conceptual framework after EFA.......................................................35

Figure 5.7: Adjust conceptual framework 1 ........................................................................37

Figure 5.8: Adjusted conceptual framework 2.....................................................................37

Figure 5.9: Themes from open question ..............................................................................47