3 factors influencing consumer buying intention for housing at vietnam tataci joint stock company

Graduation thesis Academy of Finance DECLARATION I hereby declare that the research results in my thesis, the data and results stated in the thesis are honest, derived from the actual situation at Vietnam Tataci Joint Stock Company Hanoi, May 22 th 2021 Student Vu Thi Kieu Chinh Student: Vu Thi Kieu Chinh Class: CQ 55/51.06 Graduation thesis Academy of Finance ABSTRACT The study researched factors that influence customers' decisions at Vietnam Tataci Joint Stock Company Qualitative research methods combined with quantitative research are used The research model consists of six factors that affect a customer's decision to buy a home: design, financial situation, public utilities, company reputation, location and marketing The results of the study identified four factors that influence the decision to buy a house in an important order: marketing; location; public utilities and company reputation Student: Vu Thi Kieu Chinh Class: CQ 55/51.06 Graduation thesis Academy of Finance ACKNOWLEDGMENTS My thesis would not have been a success without the extraordinary support of amazing peoples around me I would like to extend my deep gratitude to my lectures, colleagues, friends and family who helped and gave me helpful advice in this process First of all, I would like to express my great thanks to my supervisor, Dr TRUONG THI MINH HANH, lecturer of Academy of Finance, for her guidance I appreciate her help once again because without her guidance and suggestions, this thesis would not have been as completely as it is today Secondly, I want to show my appreciation to all the teachers at Academy of Finance for teaching me extremely useful knowledge in years so that I can take advantage of that knowledge for my thesis and using that knowledge for my future work Thirdly, I would like to thank my colleagues at Vietnam Tataci Joint Stock Company for sharing my job skills and helping me a lot so that I can finish my job in the best way Lastly, I would like to send my gratitude to my family, who have always silently supported me and encouraged me Last but not least, I also place on record, my sense of gratitude to one and all, who directly or indirectly, have lent my hand in this thesis Student: Vu Thi Kieu Chinh Class: CQ 55/51.06 Graduation thesis Student: Vu Thi Kieu Chinh Academy of Finance Class: CQ 55/51.06 Graduation thesis Academy of Finance LIST OF ABBREVIATIONS Tataci., JSC: Vietnam Tataci Joint Stock Company HCM: Ho Chi Minh City TRA: Theory of Reasoned Action TAM: Technology Acceptance Model TPB: Theory of Planned Behavior Dep: Department Student: Vu Thi Kieu Chinh Class: CQ 55/51.06 Graduation thesis Academy of Finance LIST OF TABLES, FIGURE AND DIAGRAM Diagram 0.1 13 Diagram 0.2: Steps to evaluate options to shopping decisions 16 Diagram 0.1: Model of TRA .18 Diagram 0.1: Technology Acceptance Model (TAM 1989 19 Diagram 0.1: Theory of Planned Behavior (TPB) .20 Diagram 0.1: Theory of Perceived Risk (TPR) 22 Diagram 0.1: E-Commerce Adoption Mode .23 Table 2.0.1: Qualifications 28 Table 0.1: Report on operating results over the years 31 Table 0.1: Business results of Vietnam Tataci Joint Stock Company 35 Figure 0.1: Organizational structure of Vietnam Tataci Joint Stock Company 26 Student: Vu Thi Kieu Chinh Class: CQ 55/51.06 Graduation thesis Academy of Finance TABLES OF CONTENTS DECLARATION I ABSTRACT II ACKNOWLEDGMENTS III LIST OF ABBREVIATIONS .IV LIST OF TABLES, FIGURE AND DIAGRAM V TABLES OF CONTENTS VI INTRODUCTION 1 Rationale of the study .1 Aims of the study .2 The scope of the study .2 Methods of the study Organization of the study CHAPTER I: LITERATURE REVIEW .4 1.1 Personal value 1.1.1 The theory of comfortable life values 1.1.2 The theory of the value of peaceful life .9 1.1.3 Theory of social recognition value 10 1.1.4 The theory of social integration 11 1.2 Consumer procurement decisions 12 1.3 The link between personal value and consumer procurement decisions 17 1.4 Some theoretical models related to factors in which the decision to buy 18 1.4.1 Theory of Reasoned Action ( TRA) 18 1.4.2 Technology Acceptance Model (TAM) 19 1.4.3 Theory of Planned Behaviour (TPB) 20 1.4.4 Theory of Perceived Risk (TPR) .21 Student: Vu Thi Kieu Chinh Class: CQ 55/51.06 Graduation thesis Academy of Finance 1.4.5 E-commerce Adoption Model (E-CAM) 22 CHAPTER II: THE STUDY 24 2.1 Company overview 24 2.1.1 History of formation and development 24 2.1.2 Company structure and resources 25 2.1.3 Business situation of the company 28 2.2 Situation of factors affecting customers' decision to buy a house at Vietnam Tataci Joint Stock Company .32 2.2.1 Consumer characteristics of home products at Vietnam Tataci Joint Stock Company 32 2.2.2 Consumer demand for home products .36 2.2.3 Development trends of the real estate market 39 2.2.4 Development trends of the real estate market 43 CHAPTER III: RECOMMENDATIONS 47 3.1 Overview of factors affecting home purchase decisions 47 3.2 Recommendations and solutions at Vietnam Tataci Joint Stock Company 49 3.2.1 On the price of buying a house 50 3.2.2 About trust when buying a home 50 3.2.3 Improving the quality of consumer home purchase services 51 3.2.4 Enhancing consumer loyalty .52 CONCLUSION 54 REFERENCES VIII Student: Vu Thi Kieu Chinh Class: CQ 55/51.06 Graduation thesis Academy of Finance INTRODUCTION Rationale of the study Housing is one of the essential needs of all classes of people, an important premise contributing to raising living standards, social stability, positively impacting the construction and development of the country From 2016 to now, Vietnam's real estate market is warming up In particular, land and housing transactions are quite affordable in both the central and suburban areas Housing prices have all recorded very high increases within year According to the Vietnam Real Estate Association by the end of 2020, real estate inventories have decreased compared to the same period of 2019 Summing up the beginning of 2021, real estate business activities in Vietnam increased by 30-50% compared to the same period last year The price of land and housing products increased from 40-60%, especially with the project increasing to 100% (Pham Tam and Kim Khanh, 2019) In addition, Vietnam also focuses on developing housing for workers in key industrial parks In the near future, Vietnam's real estate market has also shifted to the tourism real estate product line, partly with more new projects with key and convenient locations Not only encapsulated in the product of subdivision – the main product of the market so far, but investors also develop ready-built housing products With the current competitive real estate market, understanding the wants, needs and factors that influence customers' decision to buy a home is an important issue for real estate businesses Therefore, it is necessary to study to identify what factors affect the choice of accommodation in new urban areas, new residential areas are built from which there are policies, in order to meet the needs of each group of subjects in the most effective way Vietnam Tataci Joint Stock Company works in the following fields: construction, architectural design of civil and industrial works, real estate business, etc However, from the end of 2020, the purchasing power of housing in Vietnam has Student: Vu Thi Kieu Chinh Class: CQ 55/51.06 Graduation thesis Academy of Finance decreased sharply, especially in residential areas of businesses in general and Vietnam Tataci Joint Stock Company in particular, partly due to the impact of the covid-19 epidemic The house can also be a place of residence or spiritual refuge, home can be related to a state of being in shelter or convenience From that practice, the research topic is necessary to identify the factors that influence the decisions of customers, based on which gives management implications for good efficiency in the decision to buy a house I chose the topic " Factors influencing consumer buying intention for housing at Vietnam Tataci Joint Stock Company " as a research topic Aims of the study Identify personal value factors affecting the decision to buy a house of customers in Tataci., JSC Determine the impact of each value factor affecting the decision to buy a house of customers in Tataci., JSC Suggest some implications drawn from the research results to increase policies for managers to attract more customers and increase revenue for businesses The scope of the study As mentioned above, the thesis concentrates on factors of personal value affecting the decision to buy a house by a customer of Tataci., JSC It focuses on collecting and analyzing the figures from the accounting department of the firm within three years from 2018, 2019 to 2020 Methods of the study The study uses a combination of qualitative research methods with quantitative research Qualitative research is conducted through group discussions and expert opinion (01 lecturers on Marketing research; 04 managers who are knowledgeable about the real estate market) to identify factors influencing a customer's decision to buy a home; determine the research model and adjust the preliminary scale suitable for the research area (the scale in the study inherits the scales that have been tested Student: Vu Thi Kieu Chinh Class: CQ 55/51.06 Graduation thesis Academy of Finance Some other opinions also suggest that in the current context, the real estate market will soon be restored, in which industrial park real estate will still be a bright point, attracting many investors However, in order for industrial park real estate to thrive, investors need to recruit highly-presented labor resources For foreign investors, in order to attract this object, economic zones need to complete the legal framework for the development of industrial parks, support other projects such as supporting industrial parks, associated industrial parks, service models of industrial parks and combined urban areas The supply of the central real estate market is very limited along with the infrastructure investment policies that have caused the investor's "taste for capital pouring" to have a strong shift If in the past, the most prominent southern market was the inner city of Saigon, in the past year, satellite cities such as Dong Nai, Binh Duong, Long An have risen strongly In the trend of Vietnam emerging as a new manufacturing center in the global supply chain, satellite urban areas such as Dong Nai with large land funds and connectivity infrastructure advantages naturally become ideal options for the needs of industrial real estate and housing needs for experts or those involved in this production process From a supply perspective, it can be seen that the Covid-19 pandemic is risky but also an opportunity for the real estate market Those with good basic foundations, diverse product portfolios, oriented to the real needs of buyers have many opportunities to prevail Student: Vu Thi Kieu Chinh 46 Class: CQ 55/51.06 Graduation thesis Academy of Finance CHAPTER III: RECOMMENDATIONS In this chapter, I offer a number of solutions to improve the efficiency of the company's business activities, including: Reasonable adjustment of the price structure; improve trust with customers; improve website responsiveness; improve the convenience and perceived service quality in consumers' shopping; reduce risk perception among consumers After that, I present some recommendations for online retailers to give a comprehensive perspective and take firm steps towards the issue of consumer decision to buy a home in Vietnam Tataci Joint Stock Company in the current context 3.1 Overview of factors affecting home purchase decisions The results of the study show that in addition to controlling consumer behaviors, attitudes and personal factors affecting home purchases, the decision to buy a house is also influenced by the perception of risk, loyalty and consumer confidence in the seller The influence of individual factors includes gender, age and income Gender is one of the internal factors that most influences the behavior of buying a consumer's home, especially decisions and choices about the form of purchase Women are more interested in this industry, the proportion of women who make up 65% is twice as high as men when deciding to buy a house Regarding the decision to shop repeatedly, women have more wonder than men, this is also a prominent psychological feature because although they have to buy many different products, women are still more careful and careful than men Age is also a factor in affecting the shopping behavior of consumers because it is related to the needs as well as the ability to shop Younger people often have greater shopping needs but their financial capacity is limited Older people, on the other side, have considerations for buying home products In addition, design is factors related to home purchase decision-making The construction structure is a very important factor that affects the choice of the Student: Vu Thi Kieu Chinh 47 Class: CQ 55/51.06 Graduation thesis Academy of Finance household of residence The more suitable the design of the house are for customers, the higher the decision to buy a house Do house is a high-value product, so buying a house has a great impact on the financial resources of the family Therefore, factors such as: the price of the house is too high compared to the cost of construction investment, the maximum mortgage capacity of the house, the maximum ability to pay the monthly debt, loan interest rate, loan repayment period The more suitable the financial conditions, the higher the customer's decision to buy a house In addition, depending on the project and region, businesses can provide appropriate public utilities Thereby positioning the products of the business, creating a difference with the products of other businesses, improving competitiveness Public facilities include recreation facilities, parks, sports facilities, fitness clubs offering electricity, water, internet printing English and prestige are the perceptions of customers, not material values Seller reputation (factors related to customers' sense of ethics, social responsibility of the business) Nowadays, consumer awareness of the issue of home purchases is increasing, so the reputation and prestige of housing developers are also very sensitive to their housing needs Before deciding whether to buy a product, customers need to evaluate the products and estimate the value of the product through their desire for quality and cost and compare alternatives Location is one of the most important factors in the decision to buy a house after house price, with the special attribute of the house being "unable to move" and always influenced by the surrounding factors The location refers to the observation variables related to the distance from home to school, markets, commercial centers, industrial parks Therefore, the attractiveness of the location or the reputation of the company in the proposed research model Next, quickly interview 20 customers by convenient sampling method to check the preliminary questionnaire, adjust the scales to suit the practice and test the reliability, the results of the official questionnaire to use for official research Student: Vu Thi Kieu Chinh 48 Class: CQ 55/51.06 Graduation thesis Academy of Finance Married people tend to make more frequent purchases than those who are single, accounting for 63.3%, especially those families with young children The higher the income, the greater the rate of home purchases, the more they can afford the products and can shop as soon as their intention arises, not planning in advance The number of purchases was also proportional to the income of consumers, the number of people earning less than million accounted for 10.3% while 48.8% of those earning over 10 million bought a house On the other hand, it also shows that consumer attitudes to home purchases have a positive effect on their purchasing decisions The better the consumer's attitude to a website or online store, the higher the word intention that leads to their purchasing decisions at this site Meanwhile, the attitude of customers towards buying a house is influenced by the feeling of the quality of service, convenience that buying a house brings 3.2 Recommendations and solutions at Vietnam Tataci Joint Stock Company The Covid-19 pandemic continues to be complicated, and the end of the epidemic is not yet forecast The res resonance of the Covid-19 pandemic and the trend of declining world economic growth since the end of 2019 have seriously affected all sectors and the economic and social life of most countries in the world The impact of the epidemic has led to changes and the creation of new structures, new order, new development trends accompanied by new challenges and opportunities as well as new growth motivations On the basis of research on the decision to buy a house , and based on the degree of influence of each factor in the impact on buying decisions, as well as the current situation, future development trends of the real estate industry The author suggests a number of solutions to suggest online retailers selling home app home items online can improve and serve, retain and attract better users Student: Vu Thi Kieu Chinh 49 Class: CQ 55/51.06 Graduation thesis Academy of Finance 3.2.1 On the price of buying a house Inherently the brand and price of g products are not decided by the business enterprise but dominated by production Therefore, consumers when buying a house already have a sense of brand and price, what they need is to learn more about the functionality of the product and make a decision to buy for the product that they think is most beneficial for them and feel most satisfied and satisfied One of the biggest advantages of the company is helping customers reduce costs and save time Consumers looking for information always compare prices to find homes at the lowest prices Therefore, real estate entrepreneurs now need to pay attention to offer different promotions and discounts to customers who want to buy, very strong discounts, and discounts when buying in groups or for the next purchase to create demand for customers as well as motivate consumers to buy houses are markedly effective 3.2.2 About trust when buying a home The factor of customer confidence in the form of buying a house is the next important factor affecting the decision to buy a consumer's home However, nowadays trust is associated with the risks of buying a house that consumers are responsible for The trust of the customer depends on how they feel about the reputation of the seller Therefore, retailers need to build their reputation thereby enhancing customer trust To build its reputation the company can by advertising for its products through different channels, especially through electronic advertising channels such as forums, social networks because it is a very effective reputation-building channel Because, the cost of promoting on this channel is usually lower, on the other hand consumers trust other people's comments and comments rather than the information provided by the seller Therefore, in order to build its reputation, the seller needs to take seriously between words and actions, providing information that must be honest and complete Student: Vu Thi Kieu Chinh 50 Class: CQ 55/51.06 Graduation thesis Academy of Finance Besides, the company needs to train customer care staff with full skills in communication, but it is especially important that this staff understands the policies of the company's home product that are united between words and actions Moreover, this staff must be knowledgeable about the products they offer, because customer confidence in the retailer will increase when customers feel employees are knowledgeable about what products they offer When the staff is knowledgeable about the products they provide, they can also advise on options to suit the needs and resources of customers thereby helping customers trust more in the company 3.2.3 Improving the quality of consumer home purchase services Customer service, the company needs to ensure that customers can receive support and advice easily with the ability to meet the consulting needs of customers quickly It is necessary to build a trained staff to advise and solve questions about customers' products / services online, build a hotline that operates 24/24 and days a week will help customers feel satisfied, satisfied and they will quickly make purchase decisions The company needs to pay attention and bring consumers interesting experiences, fulfilling commitments on products/services that bring satisfaction to consumers such as calling, social media messages to customers and ask about how they experience shopping or using products, sending birthday messages with coupons, encouraging them to post their reviews or feelings about the product so that they can create their sympathy and they easily share these positive things with their relatives and friends around them Special discounts can be organized when making group purchases, giving discount codes to customers on special days, This will have an impact on future customers to learn information, feel attracted and move forward with purchasing decisions Develop a return, complaint, and accretionpolicy The company can flexibly this by having customers return goods when they not meet the requirements of customers This solution will give customers a more comfortable and easier Student: Vu Thi Kieu Chinh 51 Class: CQ 55/51.06 Graduation thesis Academy of Finance purchase feeling Compensation policies for goods need to have specific regulations and conditions for each case of compensation, including errors that are not compensated, it is also necessary to specify for customers torefer For cases of customer complaints or complaints, it is necessary to resolve quickly and appropriately to avoid annoying customers The company should make the refund process simple, turning it into an easy transaction rather than an unpleasant job, then not only retaining customers, but also promoting them to share, spreading positive comments about the company's home products 3.2.4 Enhancing consumer loyalty Customers check out the message boards on the company's web page Participating in conversations shows that the potential customers that the company can reach, commendable qualities will help to ingrain your brand in their minds for future purchases The provision and implementation of stated promises and values that need to properly implement what we mentioned is an indispensable component to build trust with customers Regularly fulfilling declared commitments on quality and service that will position the retailer's brand as reliable in the eyes of customers, which is what the company aims for Prioritize visual consistency: Consistency is not limited to just company actions, but ensures their brand is instantly recognizable, from business social media channels to the website Their products and from their packaging to their members-only pages, or business messages are a way to communicate a company's credibility to customers And combine them into a defined brand identity, which will help customers have stability and attraction when buying a home Perfecting the reputation, coupled with reliability is to create trust for its customers, the company needs to make customers feel comfortable when making purchases, which is not always easy when the online format implements some Student: Vu Thi Kieu Chinh 52 Class: CQ 55/51.06 Graduation thesis Academy of Finance standard procedures to establish peace of mind, such as holding an item in their hands or talking to company employees Promotions, discounts for close customers, the company just needs to invest a little in retaining customers, can see a great positive impact on their profits As promotions, coupons are only available to them, which will make quite a lot of customers love and make them feel special Record notes from any possible conversations with customers in the contact list Student: Vu Thi Kieu Chinh 53 Class: CQ 55/51.06 Graduation thesis Academy of Finance CONCLUSION The objective of this study is to identify and make the main factors that are affecting and how important the decision to buy a consumer's home at Tataci, in addition to one of the objectives is to determine the intermediary relationship between satisfaction and loyalty that influences the decision to buy a house The results of the study show that customers' shopping decisions for home products are influenced by the following factors: Convenience; Price; Beliefs; Feel quality of service; Feel risk; and Customer Loyalty In particular, the results of the analysis show that trust and price are the two factors that directly and strongly impact the decision to buy a house of consumers in Vietnam Tataci Joint Stock Company Despite trying to perform well, due to the conditions of the time limit chives In fact, there are other factors that can influence consumers' decision to buy a house such as regional characteristics, culture, habits have not been considered in detail in this study With some limited knowledge, thesis is inevitable shortcomings and in-experience in come up with solutions The author expects to receive reviews, comments and suggestions from teachers, researchers and readers to improve the thesis Student: Vu Thi Kieu Chinh 54 Class: CQ 55/51.06 Graduation thesis Academy of Finance REFERENCES ADMA (2012), Asia Pacific digital marketing yearbook 2012 Andaleeb, S S., & conway, C (2006) Customer satisfaction in the restaurant industry: an examination of the transaction‐specific model Journal of services marketing Ajzen, I., 1991 The theory of planned behavior Organizational behavior and human decision processes, 50(2), pp.179-211 Ajzen, I (1985) From intentions to actions: A theory of planned behavior In Action control (pp 11-39) Springer, Berlin, Heidelberg Asubonteng, P., McCleary, K J., & swan, J E (1996) SERVQUAL revisited: a critical review of service quality Journal of Services marketing Fishbein, M., & ajzen, I (1975) Intention and Behavior: An introduction to the theory and research Bagozzi, R P., Warshaw, P R (1990) Trying to consume Journal of Consumer Research, 17(2), 127-140 Baker, J., Parasuraman, A., Grewal, D., & Voss, G.B (2002) The influence of multiple store environment cues on perceived merchandise value and patronage intentions Journal of Marketing, 66(2), 120-141 Bauer, R A (1960) Consumer behavior as risk taking Chicago, IL, 384-398 10 Bart, Y., Shankar, V., Sultan, F., & Urban, G L (2005) Are the drivers and roles of online trust the same for all web sites and consumers? A large-scale exploratory empirical study Journal of Marketing, 69(4), 133-152 11 Bhatnagar, A., Misra, S., & Rao, H R (2000) On risk, convenience, and Internet shopping behavior Communications of the ACM, 43(11), 98-105 12 Ministry of Industry and Trade, Vietnam E-commerce Index Report,2019 Student: Vu Thi Kieu Chinh Class: CQ 55/51.06 Graduation thesis Student: Vu Thi Kieu Chinh Academy of Finance 50 Class: CQ 55/51.06 Graduation thesis Student: Vu Thi Kieu Chinh Academy of Finance 51 Class: CQ 55/51.06 Graduation thesis Academy of Finance SUPERVISOR’S JUDGEMENT Supervisor: Truong Thi Minh Hanh Student: Vu Thi Kieu Chinh Group: 51.06 Intake: CQ 55 Topic: “Factors influencing consumer buying intention for housing at Vietnam Tataci Joint Stock Company” Mark: - In number: - In word: Supervisor Student: Vu Thi Kieu Chinh 52 Class: CQ 55/51.06 Graduation thesis Academy of Finance Truong Thi Minh Hanh CRITIC’S JUDGEMENT Critic: Student: Vu Thi Kieu Chinh Group: 51.06 Intake: CQ 55 Topic: “Factors influencing consumer buying intention for housing at Vietnam Tataci Joint Stock Company” Student: Vu Thi Kieu Chinh 53 Class: CQ 55/51.06 Graduation thesis Academy of Finance Mark: - In number: - In word: Critic Student: Vu Thi Kieu Chinh 54 Class: CQ 55/51.06 ... Other 31 income 12 Other 32 expenses 13 Other profit 40 2,7 3, 6 1,4 2,1 1 ,33 0 ,39 1,5 (40 = 31 – 32 ) 14 Total 50 13, 2 16,5 17,1 15,5 1,25 1,04 0,91 3, 3 3, 8 3, 6 3, 1 1,51 0,95 0,49 9,9 12,7 13, 5... chose the topic " Factors influencing consumer buying intention for housing at Vietnam Tataci Joint Stock Company " as a research topic Aims of the study Identify personal value factors affecting... Stock Company .32 2.2.1 Consumer characteristics of home products at Vietnam Tataci Joint Stock Company 32 2.2.2 Consumer demand for home products .36 2.2 .3 Development trends