Online shopping intention of young consumers in buying facial cosmetics in Ho Chi Minh, 2018

THE STATE BANK OF VIETNAM SOCIALIST REPUBLIC OF VIETNAM

HCMC BANKING UNIVERSITY Independence - Freedom – Happiness

BANKING DEPUTY --------------------------------------------

--------------------------

GRADUATION THESIS

Title: ONLINE SHOPPING INTENTION OF YOUNG CONSUMERS IN

BUYING FACIAL COSMETICS IN HO CHI MINH CITY

CODE:7340101

Proposal Prepared by NGUYEN VU KIEU KHANH part fulfillment of the degree

requirements for the Bachelor of Arts in Business Administration

Name: NGUYEN VU KIEU KHANH

Class: HQ2-GE04

Student ID: 030630141559

Supervisor: DINH THU QUYNH

Ho Chi Minh city, August 10th, 2018

I

ABSTRACT

The role of e-commerce has dramatically increased in the recent years. Internet

has transformed into arena for successful international retail. With growing

importance of online trade, research of consumer behavior in online context gained

significant attention. The proposes of this study were to understand online shopping

behavior and to study the influential factors affected on online purchase intention of

facial cosmetic products among young consumer in Ho Chi Minh city

This study provides significant suggestions for facial cosmetic brand/ saler/

maketer that wants to invest in e-commerce as to know the impact of perceived risk

on an online purchase facial cosmetic intention of young Vietnamese consumers in

Ho Chi Minh city also deliver appropriate marketing strategy to increase sales from

online shopping as well as the future researchers who want to study more about the

consumer's online shopping attitude and behavior.

II

DECLARATION

I declare that this thesis research is entirely my own composition, the

research’s result is honest, in which there is no previously published content or

other content performed by another person except the quotations are cited

completely in the thesis.

I am responsible for my thesis.

Author

III

ACKNOWLEDGEMENT

I would like to take this opportunity to acknowledge several individuals who

have helped me to complete my thesis.

First of all, I would like to express my endless thanks and gratefulness to my

supervisor Ph.D Dinh Thu Quynh. Her kindly support and continuous advices went

through the process of completion of my thesis. Her encouragement and comments

had significantly enriched and improved my work. Without his motivation and

instructions, the thesis would have been impossible to be done effectively.

Secondly, I want to thanks my parents for their endless love, care and have

most assistances and motivation me for the whole of my life. I also would like to

explain my thanks to my siblings, brothers and sisters for their support and care me

all the time.

Next, my deeply thanks come to all of my friends who always support me

during time I study in university I am thankful for the times that they have listened

to me, advised me and even comforted me. Their kindly help, care and motivation

gave me strength and lift me up all the trouble for the rest of my life.

IV

TABLE OF CONTENTS

ABSTRACT............................................................................................................I

DECLARATION.................................................................................................. II

ACKNOWLEDGEMENT................................................................................... III

TABLE OF CONTENTS .................................................................................... IV

LIST OF FIGURES............................................................................................. VI

LIST OF TABLE................................................................................................ VII

CHAPTER 1 ..........................................................................................................1

INTRODUCTION .................................................................................................1

1.1 Problem statement and research purpose ......................................................1

1.2 Related Researches:.........................................................................................2

1.3 Research objectives: ........................................................................................4

1.3 Subject and scope of the study.................................................................4

1.4 Research method ......................................................................................5

1.5 Structure of the study...............................................................................5

SUMMARY ...........................................................................................................7

CHAPTER 2 ..........................................................................................................8

LTTERATURE REVIEW ....................................................................................8

2.1 E-commerce definition: ...................................................................................8

2.2 E-distribution Characteristics.........................................................................9

2.3 Segmentation of Online Beauty and Cosmetics Shoppers .............................9

2.4 Online purchase experience ..........................................................................10

2.5 Perception of Risk..........................................................................................10

2.6 Online purchase intention .............................................................................12

2.7 Reasons of online shopping reluctance .........................................................13

SUMMARY .........................................................................................................14

CHAPTER 3 ........................................................................................................15

RESEARCH METHODOLOGY .......................................................................15

3.1 Research Design.............................................................................................15

3.1.1 Qualitative Research...................................................................................15

3.1.2 Quantitative Research ................................................................................16

V

3.2 Identification of Key Research Variables.....................................................16

3.3 Sampling Procedure ......................................................................................17

3.4 Data Collection ..............................................................................................17

3.5 Data Analysis .................................................................................................18

SUMMARY .........................................................................................................19

CHAPTER 4 ........................................................................................................20

RESULTS AND DISCUSSION ..........................................................................20

4.1. Sample description .......................................................................................21

4.2. Demographic Characteristics.......................................................................21

4.2.1. Frequencies: Gender..................................................................................22

4.2.2. Frequencies: Age........................................................................................23

4.2.3. Frequencies: Job........................................................................................25

4.2.4. Frequencies: cosmetic usage......................................................................26

4.3 Online shopping facial cosmetic behavior ....................................................26

4.4. Perceived risk................................................................................................32

4.4.1 Finacial risk.................................................................................................32

4.4.2. Performance Risk ......................................................................................33

4.4.3. Psychological Risk: ....................................................................................35

4.4.4 Time risk .....................................................................................................35

4.5. Online shopping facial intention though perceived risk: ............................37

4.6. Measure the reliability of the scale by Cronbach's Alpha:.........................37

4.7. Explore ..........................................................................................................42

4.7.1 Gender & Online facial cosmetic purchasing Intention: Describe the

relationship between gender and online purchasing facial cosmetic intention of

young consumer in HCMC. ...................................................................................42

4.7.2. Age and online facial cosmetic purchasing Intention: .............................44

SUMMARY .........................................................................................................48

CHAPTER 5 ........................................................................................................49

CONCLUSIONS AND RECOMMENDATIONS..............................................49

5.1 Conclusion......................................................................................................49

5.1.1 Total Respondent Profile............................................................................49

5.1.2 General Online Shopping Finacial Cosmetic Behavior.............................49

5.1.3 Impact of Perceived Risk Towards Online Purchase Intention: ..............50

5.2 Recommendations..........................................................................................51

VI

5.2 Limitation of The Study ................................................................................51

SUMMARY .........................................................................................................53

REFERENCE......................................................................................................55

LIST OF FIGURES

Figure 1: Gender Distribution...................................................................................22

Figure 2: Age Distribution.........................................................................................23

Figure 3: Amount of Money Spent on Online Shopping facial cosmetic Distribution

..............................................................................................................................27

Figure 4: Online Shopping facial cosmetic Factors..................................................28

Figure 5: Purpose of buying online facial cosmetic ..................................................29

Figure 6: Things people do before shopping online facial cosmetic.........................30

Figure 7: Facial Cosmetic Online Shopping Sources Distribution ..........................30

Figure 8: Satisfied Factors from Past Online Shopping Facial Cosmetic................31

Figure 9: Unsatisfied Factors from Past Online Shopping Facial Cosmetic ...........32

Figure 10: Respondents distribution of Financial Risk............................................33

Figure 11: Respondents distribution of Performance Risk......................................34

Figure 12: Respondents distribution of Psychological Risk.....................................35

Figure 13: Respondents distribution of Time Risk...................................................36