Luận văn thạc sĩ UEH the determinants of consumers shopping behavior in retail in ho chi minh

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UNIVERSITY OF ECONOMICS

HO CHI MINH CITY

VIETNAM

INSTITUTE OF SOCIAL STUDIES

THE HAGUE

THE NETHERLANDS

VIETNAM -NETHERLANDS

PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS

The determinants of consumers' shopping

behavior in retail market in Ho Chi Minh City

BY

LE THAI BAO TRAN

MASTER OF ARTS IN DEVELOPMENT ECONOMICS

HO CHI MINH CITY, Dec 2011

\ ,,..._.._ ______ ___.

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1

UNIVERSITY OF ECONOMICS

HO CHI MINH CITY

VIETNAM

INSTITUTE OF SOCIAL STUDIES

THE HAGUE

THE NETHERLANDS

VIETNAM -NETHERLANDS

PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS

The determinants of consumers' shopping

behavior in retail market in Ho Chi Minh City

A thesis submitted in partial fulfilment ofthe requirements for the degree of

MASTER OF ARTS IN DEVELOPMENT ECONOMICS

By

LE THAI BAO TRAN

Academic Supervisor

Dr. NGUYEN MINH DUC

HO CHI MINH CITY, Dec 2011

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1

ACKNOWLEDGEMENT

First of all, I would like to express my honest and special thanks to

supervisor, Dr. Nguyen Minh Due, for his enthusiastic assistances and guidelines

during my writing of the thesis.

I would like to express special thanks to Dr. Peter Calkin for his useful

comments on my thesis research proposal. Besides, I am grateful to Dr. Nguyen

Trong Hoai, Dr. Pham Khanh Nam and Dr. Cao Hao Thi for their very helpful

guidelines and comment on my thesis as well.

I would like to send sincere thanks to my colleagues, my friends who have

supported me a lot to do the survey in this thesis.

Finally, I would like to express my sincere thanks to my family for their

spiritual encouragement during the time of studying of Master of Development

Economics.

11

Dec, 2011

Le Thai Bao Tran.

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CONTENTS

ACKNOWLEDGEMENT .............................................................................................. ii

CONTENTS ................................................................................................................... iii

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

LIST OF FIGURES ..................................................................................................... xiii

ABSTRACT ................................................................................................................. xiv

CHAPTER I: INTRODUCTION ................................................................................... !

1.1 Problem statement ........................................................................................... I

1.2 Research objectives ......................................................................................... 4

1.3 Research questions .......................................................................................... 4

1.4 The organization of thesis ............................................................................... 4

CHAPTER II: LITERATURE REVIEW ...................................................................... 5

2.1 Definitions ........................................................................................................ 5

2.1.1 Supermarket .............................................................................................. 5

2.1.2 Traditional market .................................................................................... 5

2.1.3 Consumer behavior ................................................................................... 6

2.2 Theoretical literature ....................................................................................... 7

2.2.1 Theory of Reasoned Action- TRA ............................................................. 7

2.2.2 Theory of Planned Behavior- TPB ............................................................ 8

2.2.3 Behavioral economics theory and neo classical economics theory ........... 9

2.2.4 The process of customer's decision- making ........................................... 10

2.2.5 Literature about store- choice ................................................................. 10

2.3 Conceptual framework .................................................................................. 13

2.3.1 Shopping frequency ................................................................................. 13

2.3.1.1 Price ...................................................................................................... 14

2.3.1.2 Location ................................................................................................ 15

2.3.1.3 Shopping environment ......................................................................... 15

2.3.1.4 Service .................................................................................................. 16

2.3.1.5 Advertising and promotion ................................................................. 16

2.3.1.6 Product assortment .............................................................................. 16

2.3.1.7 Customer demographic characteristics ............................................... 17

2.3.2 Customer satisfaction ofthe favorite store .................................................. 17

2.3.3 Conceptual framework ................................................................................. 19

CHAPTER III: AN OVERVIEW OF SUPERMARKETS/ TRADITIONAL

MARKETS ACTIVITIES IN HO CHI MINH CITY ................................................. 23

3.1 Overview of retail market in Vietnam .......................................................... 23

3.1.1 Population of Vietnam by gender and region ......................................... 23

3.1.2 Total retail revenue of goods and services .............................................. 23

3.2 Overview retail market ofHo Chi Minh City (HCMC) ............................... 23

3.2.1 Population ................................................................................................ 23

3.2.3 Development of supermarkets and traditional markets in HCM .......... 27

CHAPTER IV: RESEARCH METHODOLOGY AND DATA ANALYSIS ............. 29

4.1 Samples and data collection technique ............................................................... 29

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4.1.1 Sampling ....................................................................................................... 29

4.1.2 Data collection .............................................................................................. 30

4.2 Research methodology and data analysis ........................................................... 31

4.2.1 Variable measurement ................................................................................. 31

4.2.1.1 Demographic characteristics ............................................................... 31

4.2.1.1.1 Location ........................................................................................... 32

4.2.1.1.2 Gender ............................................................................................. 32

4.2.1.1.3 Age ................................................................................................... 32

4.2.1.1.4 Married status (Mar) ...................................................................... 32

4.2.1.1.5 Household size (Hsize) .................................................................... 32

4.2.1.1.6 Education (Edu) .............................................................................. 32

4.2.1.1. 7 Career .............................................................................................. 32

4.2.1.1.8 Kind of firm where shopper is working for (KindF) ..................... 32

4.2.1.1.9 Average monthly income ofshopper (Mincomei) .......................... 33

4.2.1.1.10 Average monthly income offamily of shopper (MincomeH) ....... 33

4.2.1.2 Shopping information .......................................................................... 33

4.2.1.3 Attributes ofsupermarket/ traditional market.. ................................. 33

4.2.1.4 Satisfaction of shopper with most frequently shopping place ............ 33

4.2.2 Supermarket: ................................................................................................ 34

4.2.2.1 Descriptive statistics of variables: ....................................................... 34

4.2.2.2 Exploratory Factor Analysis (EFA) and reliability test (Cronbach's

Alpha) .............................................................................................................. 36

4.2.2.3 Model specification: ............................................................................. 41

4.2.2.3.1 Model ofshopping frequency: ....................................................... .41

4.2.2.3.2 Model of satisfaction ....................................................................... 44

4.2.2.4 Effects of demographic variables on shopping behavior at

supermarket: ................................................................................................... 46

4.2.2.5 Bivariate correlation between FreqS and SSatisfy analysis: .............. 4 7

4.2.2.6 Effect of shopper's satisfaction with distance from home/ working

place (SsatisfyDis) to supermarket on their shopping frequency (FreqS) and

satisfaction (Ssatisfy) with favorite supermarket: .......................................... 48

4.2.2. 7 Effect of preference of supermarket shopping (Likeshopsuper) on

shopping frequency (FreqS) or satisfaction (Ssatisfy) of shoppers with

supermarket: ................................................................................................... 50

4.2.2.8. The relationship between spending for each shopping time

(Spendsuper) and shopping frequency (FreqS) at supermarket: .................. 51

4.2.3 Traditional market: ...................................................................................... 51

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4.2.3.1 Descriptive statistic of variables: ......................................................... 51

4.2.3.2 Exploratory factor analysis (EFA) and reliability test (Cronbach's

Alpha) .............................................................................................................. 52

4.2.3.3 Model specification: ............................................................................. 56

4.2.3.3.1 Model of shopping frequency ......................................................... 56

4.2.3.3.2 Model of satisfaction ....................................................................... 58

4.2.3.4 Effects of demographic variables on shopping behavior at traditional

market: ............................................................................................................ 60

4.2.3.5 Bivariate correlation between shopping frequency (FreqT) and

satisfaction (Tsatisfy) ....................................................................................... 62

4.2.3.6 Effect of shoppers' satisfaction with distance (TsatisfyDis) from

home/ working place to traditional market on their shopping frequency

(FreqT) and shopping satisfaction (Tsatisfy) with favorite traditional

market: ............................................................................................................ 62

4.2.3. 7 Effect of preference of traditional market shopping (Likeshoptradi)

on shopping frequency (FreqT) or satisfaction (Tsatisfy) of shoppers with

favorite traditional markets ............................................................................ 64

4.2.3.8 The relationship between spending for each shopping time

(Spendtradi) and shopping frequency (FreqT) at traditional market: ......... 65

4.2.4 Comparison about the difference of shopping behavior (shopping

frequency and satisfaction) between two sample size (supermarket and

traditional market) ................................................................................................ 65

4.2.4.1 Shopping frequency at supermarket and traditional market ............ 65

4.2.4.2 Satisfaction about supermarket and traditional market .................... 67

4.2.4.3 The difference of the preference of shopping between two group

shoppers ........................................................................................................... 68

4.2.4.4 Satisfaction about distance from shopper's house to supermarket/

traditional market ........................................................................................... 69

CHAPTER V: FINDING AND CONCLUSION ......................................................... 70

5.1 Shoppers' behavior at supermarket ................................................................... 70

5.2 Shoppers' behavior at traditional markets ........................................................ 72

5.3 Comparison between supermarket and traditional market .............................. 74

5.4 Conclusion and recommendation ....................................................................... 75

5.5 Limitation of this research and expectation for further research ..................... 76

REFERENCES ............................................................................................................. 77

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APPENDICES ............................................................................................................... 82

APPENDIX 1: QUESTION AIRES .............................................................................. 82

QUESTIONAIRE (in English) ..................................................................................... 82

QUESTIONAIRE (in Vietnamese) ............................................................................... 91

APPENDIX 2: Overview of HCMC ............................................................................. 99

APPENDIX 3: VARIABLE MEARSUREMENT ..................................................... 102

APPENDIX 4: EFA ANALYSIS (SUPERMARKET) ............................................... 117

APPENDIX 5: RELIABILITY TEST (ATTRIBUTE OF SUPERMARKET) ........ 121

APPENDIX 6: REGRESSION OF SATISFACTION ABOUT SUPERMARKET

MODEL (1st time) ....................................................................................................... 123

APPENDIX7: ONE-WAY ANOV A ANALYSIS (SUPERMARKET) ..................... 123

APPENDIX 8: EFA ANALYSIS (TRADITIONAL MARKET) ............................... 143

APPENDIX 9: 1sT REGRESSION OF SHOPPING FREQUENCY AT

TRADITIONAL MARKET ....................................................................................... 144

APPENDIX 10: ONE-WAY ANOV A ANALYSIS (TRADITIONAL MARKET) .. 145

APPENDIX 11: COMPARISON ABOUT SHOPPING BEHAVIOR BETWEEN

TWO SAMPLE SIZE (SUPERMARKET) AND TRADITIONAL MARKET ........ 166

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LIST OF TABLES

TABLE IN CONTENT

Table 1.1: Ranking of attractiveness of retail market in the world ....................... 1

Table 3.1: Population ofHo Chi Minh City by district ...................................... 24

Table 3.2: Population ofHCMC by age ............................................................ 25

·····························································································································

Table 3.3: Total retail revenues of goods and services by region ...................... 26

Table 4.1: Descriptive statistic of supermarkets' attributes ............................... .35

Table 4.2.: The result of3rd time conducting EFA ............................................. 37

Table 4.3: Summary of Reliability test result ................................................... .41

Table 4.4: Descriptive statistics of group factors affect to frequency of shopping

at supermarket. .................................................................................. 42

Table 4.5: The result of regression (shopping frequency at supermarket) ......... .43

Table 4.6: The result of2"d regression (satisfaction at supermarket) ................. .45

Table 4.7: Correlation between shopping frequency and satisfaction ................ .48

Table 4.8a: Ranks ............................................................................................. 49

Table 4.8b: Test statistics ................................................................................. .49

Table 4.9: Descriptive statistic of variables of traditional market's attributes .... 52

Table 4.10: The result of2"d conducting EPA (traditional market) .................... 53

Table 4.11: Summary of reliability test result (traditional market) ..................... 55

Table 4.12: Descriptive statistics of group variables of traditional market ......... 56

Table 4.13: The result of 2"d regression (shopping frequency at traditional

market) .............................................................................................................. 57

Table 4.14: The result of regression (satisfaction at traditional market) ............. 59

Table 4.15: Correlation between FreqT and Tsatisfy ......................................... 62

Table 4.16a: Ranks ............................................................................................ 63

Table 4.16b: Test Statistics ............................................................................... 63

Table 4.17: Frequency index ofFreqS and FreqT .............................................. 65

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Table 4.18a: Ranks ............................................................................................ 66

Table 4.18b: Test statistics ................................................................................ 66

• Table 4.19: Satisfaction index about supermarket and traditional market .......... 67

Table 4.20a: Ranks ............................................................................................ 67

Table 4.20b: Test statistics ................................................................................ 67

Table 4.21: Like index of supermarket and traditional market.. ......................... 68

Table 4.22a: Ranks ............................................................................................ 68

Table 4.22b: Test statistics ................................................................................ 68

Table 4.23: Satisfaction index about distance .................................................... 69

Table 4.24a: Ranks ............................................................................................ 69

Table 4.24b: Test statistics ................................................................................ 69

Table 5.1: Cross table ofFreqS and Age ........................................................... 72

TABLE IN APPENDICIES

APPENDIX 2: Overview ofHCMC

Table 3.4: Population of Vietnam by gender and region .................................... 99

Table 3.5: Retail revenues of goods and services by economic sector ............. 100

Table 3.6: Number of traditional market, supermarket and trade centre until

year 2015 ....................................................................................................... 101

APPENDIX 3: VARIABLE MEARSUREMENT

Table 4.25: Variable measurement .................................................................. 102

Table 4.26: Location where shopper is living .................................................. 112

Table 4.27: Gender of shopper ........................................................................ 113

Table 4.28: Percentage of age of shopper ........................................................ 113

Table 4.29: Married status of shoppers ............................................................ 113

Table 4.30: Household size of shopper ............................................................ 113

Table 4.31: Education level of shoppers .......................................................... 114

Table 4.32: Career of shoppers ....................................................................... 114

Table 4.33: Kind of firm where shopper is working for ................................... 114

Table 4.34: Monthly income of shopper .......................................................... 115

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Table 4.35: Monthly income ofhousehold ...................................................... 115

Table 4.36: Shopping at traditional market is a long- standing traditional habit of

Vietnamese ..................................................................................................... 116

Table 4.37: Going to supermarket is not only for shopping but also for

entertainment .................................................................................................. 116

Table 4.38: Going shopping at traditional market or supermarket is not important.

The important thing is that I can buy whatever I want efficiently .................... 116

APPENDIX 4: EFA ANALYSIS (SUPERMARKET)

Table 4.39: The first time of conducting EF A ................................................. 117

Table 4.40: Second time of conducting EF A ................................................... 118

APPENDIX 5: RELIABILITY TEST (ATTRIBUTE OF SUPERMARKET)

Table 4.41: Reliability test of group 1 .............................................................. 121

Table 4.42: Reliability test of group 2 (Policy) ................................................ 121

Table 4.43: Reliability test of group 3 (Service) .............................................. 122

APPENDIX 6: REGRESSION OF SATISFACTION ABOUT

SUPERMARKET MODEL (1st time)

Table 4.44: Regression result .......................................................................... 123

APPENDIX?: ONE-WAY ANOVAANALYSIS (SUPERMARKET)

Table 4.45: The relationship between Age and FreqS ...................................... 123

Table 4.46: The relationship between Gender and FreqS ................................. 124

Table 4.47: The relationship between Household size and FreqS .................... 124

Table 4.48: The relationship between monthly income of household

and FreqS ........................................................................................................ 125

Table 4.49: The relationship between married status and FreqS ...................... 126

Table 4.50: The relationship between education level and FreqS ..................... 126

Table 4.51: The relationship between Career and FreqS .................................. 127

Table 4.52: The relationship between Age and Ssatisfy ................................... 127

Table 4.53: The relationship between sex and Ssatisfy .................................... 128

Table 4.54: The relationship between Household size and Ssatisfy ................. 128

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Table 4.55: The relationship between monthly income of household and

Ssatisfy ........................................................................................................... 129

Table 4.56: The relationship between marries status and Ssatisfy .................... 130

Table 4.57: The relationship between education level and Ssatisfy .................. 130

Table 4.58: The relationship between career and Ssatisfy ................................ 131

Table 4.59: The relationship between Likeshopsuper and FreqS ..................... 132

Table 4.60: The relationship between Likeshopsuper and Ssatisfy .................. 132

Table 4.61: The relationship between Likeshopsuper and Age ........................ 133

Table 4.62: The relationship between Likeshopsuper and Sex ......................... 134

Table 4.63: The relationship between Likeshopsuper and household's size ..... 134

Table 4.64: The relationship between Likeshopsuper and monthly income of

household ........................................................................................................ 135

Table 4.65: The relationship between Likeshopsuper and marriage status ....... 136

Table 4.66: The relationship between Likeshopsuper and education level ....... 136

Table 4.67: The relationship between Likeshopsuper and career ..................... 137

Table 4.68: The relationship between Spendsuper and FreqS .......................... 138

Table 4.69: The relationship between Spendsuper and Age ............................. 138

Table 4. 70: The relationship between Spendsuper and Sex ............................. 139

Table 4.71: The relationship between Spendsuper and household size ............ 139

Table 4. 72: The relationship between Spendsuper and monthly income of

household .............................................................. · ............ ···.························ .140

Table 4.73: The relationship between Spendsuper and marriage status ............ 141

Table 4.74: The relationship between Spendsuper and education level.. .......... 141

Table 4.75: The relationship between Spendsuper and career. ......................... 142

APPENDIX 8: EFA ANALYSIS (TRADITIONAL MARKET)

Table 4.76: The result of 1st EFA ................................................................... 143

APPENDIX 9: 1sT REGRESSION OF SHOPPING FREQUENCY AT

TRADITIONAL MARKET

Table 4.77: Regression result .......................................................................... 144

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APPENDIX 10: ONE-WAY ANOV A ANALYSIS (TRADITIONAL

MARKEST)

Table 4.78: The relationship between age and FreqT ....................................... l45

Table 4. 79: The relationship between sex and FreqT ....................................... 145

Table 4.80: The relationship between household's size and FreqT .................. 146

Table 4.81: The relationship between monthly income of household and

FreqT .............................................................................................................. 147

Table 4.82: The relationship between marriage status and FreqT .................... 147

Table 4.83: The relationship between education level and FreqT ................... 148

Table 4.84: The relationship between Career and FreqT .................................. 149

Table 4.85: The relationship between age and Tsatisfy .................................... 149

Table 4.86: The relationship between gender and Tsatisfy .............................. 150

Table 4.87: The relationship between household's size and Tsatisfy ............... 151

Table 4.88: The relationship between monthly income of household and

Tsatisfy .......................................................................................................... 151

Table 4.89: The relationship between marriage status and Tsatisfy ................. 152

Table 4.90: The relationship between education level and Tsatisfy ................. 153

Table 4.91: The relationship between career and Tsatisfy ............................... 153

Table 4.92: The relationship between Likeshoptradi and FreqT ...................... 154

Table 4.93: The relationship between Likeshoptradi and Tsatisfy ................... 155

Table 4.94: The relationship between Likeshoptradi and Age group ............... 155

Table 4.95: The relationship between Likeshoptradi and Sex .......................... 156

Table 4.96: The relationship between Likeshoptradi and household's size ...... 157

Table 4.97: The relationship between Likeshoptradi and monthly income of

household ........................................................................................................ 157

Table 4.98: The relationship between Likeshoptradi and marriage status ........ 158

Table 4.99: The relationship between Likeshoptradi and education level ........ 159

Table 4.100: The relationship between Likeshoptradi and career .................... 159

Table 4.101: The relationship between Spendtradi and FreqT ......................... 160

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Table 4.102: The relationship between Spendtradi and Age ............................ 161

Table 4.103: The relationship between Spendtradi and Sex ............................. 161

Table 4.104: The relationship between Spendtradi and household size ............ 162

Table 4.105: The relationship between Spendtradi and monthly income of

household ........................................................................................................ 163

Table 4.106: The relationship between Spendtradi and marriage status ........... 164

Table 4.107: The relationship between Spendtradi and education level ........... 164

Table 4.108: The relationship between Spendtradi and career ......................... 165

APPENDIX 11: COMPARISON ABOUT SHOPPING BEHAVIOR

BETWEEN TWO SAMPLE SIZE (SUPERMARKET) AND

TRADITIONAL MARKET

Table 4.109: Comparison about FreqS and FreqT ........................................... 166

Table 4.110: Comparison about Ssatisfy and Tsatisfy ..................................... 167

Table 4.111: Comparison about Likeshopsuper and Likeshoptradi .................. 168

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LIST OF FIGURES

Figure 1.1: 2009 GRDI country attractiveness ..................................................... 2

• Figure 2.1: Theory of Reasoned Action (Fishbein & Ajzen 1975) ...................... 8

Figure 2.2: Theory of Planned Behavior (Ajzen 1991) ....................................... 9

Figure 2.3: Conceptual framework .................................................................... 21

Figure 3.1 : Total retail revenues of goods and services by region ................... 27

Figure 3.2: Number of traditional market, supermarket and trade centre in HCMC

from 2008- 2015 ............................... : ............................................................... 28

Figure 4.1: The preference of shopping at supermarket and traditional market .. 30

Figure 5.1: The reason shopper goes shopping at supermarket .......................... 71

Figure 5.2: The reason shopper goes shopping at traditional market. ................. 73

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•

ABSTRACT

Ho Chi Minh City is a big business centre of Vietnam where retail

business is developing rather dynamically. This paper studies the effect of

attributes of retail format (supermarket and traditional market) on shopping

behavior (shopping frequency and satisfaction) of shoppers in Ho Chi Minh City.

Regarding to supermarket, the result indicates that marketing policy of

supermarket would give a positive effect on both shopping frequency and

satisfaction with favorite supermarket. Price and products also positively affect

on customer satisfaction. Unexpected, shopping environment and customer

services gave negative influence on shopping frequency in supermarket. Besides,

the findings show that there are differences in shopping frequency, satisfaction,

preference of supermarket shopping and spending for each shopping time at

supermarket among different demographic shoppers groups. This research shows

that there is correlation between shopping frequency and satisfaction; there is a

significant effect of shopper's preference on both shopping frequency and

satisfaction; and there is no relation between spending for each shopping time

and shopping frequency at favorite supermarket.

Regarding to traditional market, the result expresses that the main factor

which has positive effect on shopping frequency at traditional markets is their

convenience (making bargain, saving time and hire- purchase). Besides of

satisfaction with convenience of traditional market, shoppers are satisfied with

product sold at market. Besides, the findings show that there are differences in

shopping frequency, satisfaction, preference of traditional market shopping and

spending for each shopping time at traditional market among different

demographic shoppers groups. The research shows that there is no correlation

between shopping frequency and satisfaction about traditional market; there is an

effect of traditional market preference on shopping frequency and satisfaction at

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