Influencing factors to buying decision of cement product for housing construction in Ho Chi Minh City

TRÖÔØNG ÑAÏI HOÏC MÔÛ TP.HCM UNIVERSITEÙ LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BUSINESS SCHOOL

MBAVB1

TRAN CAO TUAN

INFLUENCING FACTORS TO BUYING DECISION OF

CEMENT PRODUCT FOR HOUSING CONSTRUCTION

IN HO CHI MINH CITY

MASTER PROJECT

MASTER IN BUSINESS ADMINISTRATION

(PART-TIME)

Ho Chi Minh City

(2010)

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ACKNOWLEDGMENT OF COMMITMENT

I, Tran Cao Tuan, would like to confirm that I have prepared and conducted this

“Influencing factors to buying decision of cement product for housing

construction in Ho Chi Minh City” as the final project of MBAVB program.

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ACKNOWLEDGEMENT

I sincerely express my deep gratefulness to Professor Michele Allele of

Solvay University in Belgium and Doctor Tran Anh Tuan, the program co￾director, who have whole-heartedly organized the Vietnam-Belgium

management MBAVB1 course successfully.

I would like to express my sincere gratitude to Dr. Nguyen Van Phuc,

research advisor for the valuable guidance, constructive comments and

encouragement through out the research study.

Especially, I would like to give my special thanks to my family who enabled

me to complete this project.

Ho Chi Minh City, 30th December, 2010

Tran Cao Tuan

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TABLE OF CONTENTS

Page

LIST OF TABLES x

LIST OF FIGURES xii

LIST OF ABBREVIATION xiii

ABSTRACT 01

CHAPTER 1: INTRODUCTION 02

1.1 Problem statement 02

1.2 Research objective 02

1.3 Scope of research 02

1.4 Research methodology 03

1.5 Structure of the project 03

CHAPTER 2: LITERATURE REVIEW 05

2.1 Definition 05

2.2 Buying decision process 05

2.2.1 Buying roles 05

2.2.2 Buying behavior 06

2.3 Stages of the buying decision process 08

2.3.1 Problem recognition 09

2.3.2 Information search 09

2.3.3 Evaluation of alternatives 10

2.3.4 Purchase decision 11

2.3.5 Post purchase behavior 12

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2.4 Purchase cases 13

2.5 Influcing buyer behaviour 14

2.5.1 Cultural factors 15

2.5.2 Social factors 16

2.5.3 Personel factors 16

2.5.4 Psychological factors 18

2.6 Selection criteria 18

2.7 Proposed research model 19

CHAPTER 3: RESEARCH DESIGN 21

3.1 Research methodology 21

3.1.1 Qualitative research 21

3.1.2 Quantitative research 22

3.2 Result of qualitative research 23

3.3 Quantitative research 24

3.3.1 Setting up, building and evaluating the scale of measurement 24

3.3.1.1 Scale of variables relative to willingness of buying cement 24

3.3.1.2 Scale of the other groups of variables 24

3.3.2 Evaluating the scale of measurement and filtering data gathered

from questionnaire 26

3.3.2.1 Evaluating the scale of measurement 26

3.3.2.2 Filtering data gathered from questionnaire 26

3.3.3 Data analysis process 27

3.3.4 Size of sample 28

CHAPTER 4: OVERVIEW OF CEMENT MARKET IN VN 29

4.1 Overview of Vietnamese economic environment 29

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4.2 Overview of cement industry 31

4.3 Market share 33

4.4 Cement distribution system 35

CHAPTER 5: ANALYSIS OF RESEARCH DATA & RESULTS 37

5.1 Respondent’s information 37

5.2 Descriptive statistics result of quantitative variables 38

5.3 Reliability statistics (Cronbach’s Alpha) 39

5.3.1 Reliability statistic Cronbach’s Alpha for the group of variables

relative to brand name of product 41

5.3.2 Reliability statistic Cronbach’s Alpha for the other groups of

variables 41

5.4 Exploratory factor analysis (EFA) 44

5.5 Paired-Samples T Test 47

5.6 Result analysis 50

CHAPTER 6: CONCLUSIONS & RECOMMENDATIONS 53

6.1 Conclusions 53

6.2 Recommendations 53

6.3 The strength, weakness, limitation of this study and

recommendation for future study 55

REFERENCES 57

1. English Language Sources 57

2. Vietnamese Language Sources 60

APPENDIX 61

Appendix 1: Discussion framework form 61

Appendix 2: Questionnaire for customer 62

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Appendix 3: Reliability statistics results (Cronbach’s Alpha) 66

Appendix 4: Result of EFA analysis 69

Appendix 5: Result of Paired-Samples T Test 72

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LIST OF TABLES

Page

Table 2.5: Stages in family life cycle 16

Table 2.6: Important level of criteria 18

Table 3.1: Scale of the other groups of variables 25

Table 4.1: Urbanization in Vietnam (1990-2010) 30

Table 4.2: Income growth of Vietnamese 30

Table 4.3: Cement demand in 03 areas of Vietnam 32

Table 4.4: Cement consumption per capital 33

Table 4.5: Market share of main cement manufactures 34

Table 4.6: Cement consumption by Southern market area 34

Table 4.7: Cement Distribution system 36

Table 5.1: Age of respondents 37

Table 5.2: Sex of respondents 37

Table 5.3: Descriptive Statistics 38

Table 5.4: Summary of initial groups of variables will be analyzed 39

Table 5.5: Results of reliability statistics for variables relative to brand

name of product

41

Table 5.6: Results of reliability statistics for other groups of variables 42

Table 5.7: Summary of groups of variables after rejecting some variables

in the stage of reliability statistics

42

Table 5.8: EFA analysis 44

Table 5.9: Groups of factors after EFA analysis 46