RESEARCH OF FACTORS AFFECTING SMARTPHONE BUYING DECISION OF CUSTOMERS AT FPT SHOP DA NANG

DUY TAN UNIVERSITY INTERNATIONAL SCHOOL VIETNAM-US ECONOMIC MANAGEMENT FACULTY(PSU) …… GRADUATION THESIS RESEARCH OF FACTORS AFFECTING SMARTPHONE BUYING DECISION OF CUSTOMERS AT FPT SHOP DA NANG Instructor : MBA DOAN THI THUY HAI Students : LU MINH PHUC Class : K24 PSU QTH4 Student code : 24212107613 Da Nang, 2022 ABSTRACT This essay aims to study the factors affecting the smartphone purchase decision of customers at FPT Shop Da Nang, helping to clearly see the extent of the impact of those factors on the customer's purchasing decision number of customers buying products at FPT Shop Da Nang in general and FPT Shop at 186 Ton Duc Thang in particular With that in mind, I researched and found solutions to make recommendations to overcome existing difficulties and promote advantages of FPT Shop Danang Based on previous studies, most of these topics focus on social and personal factors in general, without in-depth study of store policies to create advantages compete in the retail market of smartphone product lines This topic provides a more comprehensive view of the factors influencing the smartphone purchase decision of customers This study examines the customer's decisionmaking process and the factors affecting it in specific circumstances at FPT Shop 186 Ton Duc Thang The synthesis of literature and theories from many previous scientific researchers on the consumer decision-making process and the factors influencing decision-making, demonstrates the need to conduct research Using survey and indepth interview methods, data was collected from customers and managers as well as employees working at FPT Shop 186 Ton Duc Thang through the interview process and through questionnaires The study was checked for authenticity and reliability as well as by regression analysis According to the research results, Product, Price, Brand, Marketing and Promotion Form, Social Influence and Warranty and Care policy seem to have a positive relationship with customers' smartphone purchase decision products at FPT Shop Da Nang This study provides a deeper insight into the customer's buying decision process for smartphone products at FPT Shop Da Nang and through the results we can see more clearly the factors affecting the decision customer purchase On that basis, I will find solutions and make recommendations for FPT Shop Da Nang branch DISCLAIMER I confirm that the thesis: "Research on factors affecting the decision to buy Smartphone at FPT Shop Da Nang" is my own research No other person's work may be used without endorsement Except for those I have explicitly cited that I have used this number of documents The research paper has not been submitted for a degree at any other university or institution I understand that submitted work may be copied or transmitted for plagiarism detection purposes I understand that if this declaration is untrue, I will be responsible and will be fined according to the regulations of Duy Tan University Signature: Lu Minh Phuc Da Nang, April 3, 2022 Acknowledgements First of all, I would like to send all the teachers of the Institute of International Training of Duy Tan University, along with the teachers in the school, my most sincere thanks, who have enthusiastically taught, guided and transmitted Gain valuable and useful professional knowledge for me In particular, I would like to express my deep gratitude to my instructor: Master Doan Thi Thuy Hai, who directly guided me throughout the process of implementing the thesis, for her care, help and thoughtful guidance wholeheartedly guided me throughout the period of making internship reports and completing research projects In addition, I also received enthusiastic help from the staff and employees of FPT Shop Danang in general and the Managers and Staffs at FPT Shop at 186 Ton Duc Thang campus in particular In particular, I would like to sincerely thank Manager Truong Van Vu and Head of Shift Nguyen Thanh Bach for their dedicated teaching and sharing their valuable experiences to help me complete my internship at Shop Through this, I would like to sincerely thank the leadership and all officers and employees of the company for creating favorable conditions and helping me gain practical knowledge and complete the internship in the best way Although I have tried and worked hard to study and research to complete the graduation thesis in the best way, I myself still have many limitations in knowledge, experience as well as time, so it is inevitable that shortcoming I hope to receive sincere comments from teachers so that I can draw lessons for the future I sincerely thank you! Student Lu Minh Phuc Da Nang, Marth 28, 2022 TABLE OF CONTENT ABSTRACT DISCLAIMER ACKNOWLEDGEMENTS APPENDICES LIST OF TABLES NUMBER TABLE NAME PAGE 2.1 Comparison table of variables of the premise research 17 2.2 Scales for each factor: Compare prices of some products at FPT Shop with 24 3.1 competitors Mobile World 39 3.2 VN PAY's April 2022 Promotions 41 3.3 Preliminary scale 49 4.1 Normalized regression coefficient 73 4.2 Hypothesis testing of the model 74 5.1 Order of influence of factors 77 LIST OF DIAGRAM NUMBER DIAGRAM NAME 2.1 Theory of Rational Action (TRA) PAGE 2.2 Theory of Planned Behavior (TPB) 2.3 Technology Acceptance Model (TAM) LIST OF FIGURES NUMBER FIGURES NAME PAGE 2.1 Consumer behavior Philip Cotler (1999) 2.2 Model of buying behavior Philip Kotler (2005) 2.3 Le Thi Diem My's revised research model 11 2.4 Proposed research model of MSc Le Nhan My, Le Thi My Ngan 12 2.5 2.6 2.7 2.8 3.1 3.2 3.3 Proposed research model of Karen Lim Lay-Yee, Han Kok-Siew, Benjamin Chan Yin-Fah Azira Rahim 's proposed research model, Siti Zaharah Safin, Law Kuan Kheng, Nurliyana Abas, Siti Meriam Ali Nushrat Shabrin's proposed research model, Sarod Khandaker, Saad Bin Abul Kashem, Chan Kit Hie, Teresa Susila Proposed Research Model Affiliated member units FPT Oganizational structure of FPT Digital Retail joint stock company Structure of FPT Shop's stores 13 14 15 20 28 30 33 3.4 Graph showing business results in 2019-2020 of FPT Shop 35 3.5 Outstanding financial indicators of FPT Shop in years 2019, 2020, 2021 36 3.6 FPT Shop's March 2022 revenue 186 Ton Duc Thang 37 3.7 3.8 4.1 4.2 4.3 4.4 Smartphone products at the shop and promotions Research process Graph showing gender of survey participants Graph showing the age of survey participants Graph showing the job of survey participant Graph showing the income of survey participants Graph showing where did the survey participants know FPT Shop 38 45 51 52 53 54 4.6 Relationship between Age and Sex 57 4.7 Relationship between Job and Income 59 4.5 55 CHAPTER 1: INTRODUCTION 1.1 REASON FOR CHOOSING A RESEARCH TOPIC In modern society, the development of smart devices has greatly helped people's lives, and smart devices have become an essential part of our lives In particular, the smartphone is a very important device for each person because it helps to communicate and communicate anytime, anywhere Besides, Smartphone also helps a lot for people's entertainment, and at the same time it also helps to transmit important confidential information quickly, suitable for everyone's needs and very helpful Many for companies and businesses It is for that reason that deciding to buy a Smartphone is also very important to us because there are many places that sell Smartphones such as Mobile World, Nguyen Kim, Home Center or Mobile Viet, and many stores Retailers are everywhere, but which choice is the best, which is both reputable, quality with reasonable prices, trusted by many people and has many promotions and after-purchase customer care policies Currently, companies operating in the form of retail are very popular in Da Nang city, FPT Shop is one of the units that are very successful in retail activities in Da Nang city, but there are many competitors Direct competitors such as The Gioi Di Dong, Viettel, Vien Thong A, are also developing very strongly Customers in Da Nang city will have a lot of options to buy themselves a satisfactory Smartphone, so why customers choose FPT Shop as the place to buy Smartphone and why not? Now with the consent of the lecturers of the International Training Institute Duy Tan University and the support of FPT Digital Retail Joint Stock Company, I decided to choose the topic "Research on factors affecting to the decision to buy Smartphone at FPT Shop Da Nang” as the topic of graduation thesis 1.2 RESEARCH OBJECTIVES 1.2.1 General objective Find out and analyze the factors affecting customers' decision to buy smartphone at FPT Shop Da Nang to find solutions to improve quality sales and create a competitive advantage to increase sales of FPT Shop stores in Da Nang 1.2.2 Detail goal • Learn and systematize the theoretical issues along with the practical analysis related to the customer's decision to buy Smartphone at FPT Shop Da Nang • Clearly identify the factors affecting the decision to buy Smartphone at FPT Shop Da Nang • Analyze and consider the degree of influence of these factors on customers' smartphone purchasing decisions, thereby identifying the factors affecting customers' purchasing decisions through each stage in the decision-making process buy Smartphones • Proposing solutions to help promote and convince customers to decide to buy Smartphone at FPT Shop Thereby helping to improve the company's business situation, helping the company develop strongly to compete with competitors, especially Mobile World 1.3 REASEARCH QUESTION - What factors affect customers' decision to buy smartphones at FPT Shop Da Nang? - How much influence these factors have on customers' purchasing decisions? - How to influence those factors to increase the number of customers' purchases? 1.4 OBJECT AND SCOPE OF THE STUDY 1.4.1 Research Object 10 - The object of this research is the factors that affect the decision to buy Smartphone of customers at FPT Shop Da Nang - The object of investigation focuses on customers who have bought, are buying and intend to buy Smartphone at FPT Shop Da Nang 1.4.2 Research scope • Spatial scope: Sales research, technical support and handling, customer care service before, during and after product purchase, … at the branch of digital retail company FPT Shop (186 Ton Duc Thang, Da Nang City) • Scope of time: During months (March 8, 2022 – May 8, 2022) graduation internship at FPT Shop branch 186 Ton Duc Thang Secondary data to serve the topic is in the period from 2019-2021 Primary data are collected from customer surveys, conducted over a period of time from 08/03/2022 – 08/05/2022 1.5 RESEARCH METHODS • Qualitative research: The qualitative research method is to ask questions and collect data through the form of interviews with customers who have bought at the shop and the staff (manager) of the shop • Quantitative research: The quantitative research method is to use the SPSS tool to analyze the data collected from the Questionnaire to analyze the degree of influence of those factors on the purchase decision of customers 1.6 STRUCTURE OF THE THESIS The study consists of chapters: CHAPTER 1: INTRODUCTION CHAPTER 2: LITERATURE REVIEW CHAPTER 3: RESEARCH METHODOLOGY CHAPTER 4: RESEARCH RESULTS CHAPTER 5: CONCLUSIONS AND RECOMMENDATION 86 Or FPT Shop can update hot promotions directly into a separate section on the company's website so that customers can easily learn and choose 5.2.5 Sales and Warranty consulting problem According to the above research results, the sales and warranty consulting factors have the strongest influence on the decision to buy a smartphone at FPT Shop Da Nang Because good product advice and quality warranty packages help customers see the advantages of buying products at FPT Shop Da Nang Therefore, the sales and warranty consulting need to pay special attention and perform in the best way to bring satisfaction to customers, FPT Shop may have more policies to train employees to improve customer satisfaction the ability to consult sales and add warranty programs Such as: Continuously open training classes to increase knowledge on skills as well as sales consulting styles for employees, working according to the criteria of always for customer satisfaction PGs working at the store also need to have full knowledge of the products in the store to advise customers in case of staff shortage at the store, helping customers have the best experience when buy products at FPT Shop There are more warranty programs, attractive warranty packages with reasonable prices, giving customers a sense of security when buying products at FPT Shop It is necessary to clearly advise on warranty policies to avoid customer misunderstanding about warranty policy leading to a bad service experience 5.2.6 Social Influence problem Although social influence is more of an influence on the customer's side, FPT Shop can also find a few solutions to improve this problem, helping to increase the number of customers buying smartphone products at the store FPT Shop Da Nang Such as: Continue to promote marketing policies in various forms of marketing to reach more customers, promote advertising programs such as organizing product promotion sessions at universities, put more billboards at key traffic areas, combine ads with famous artists, 87 FPT Shop can solve social influence issues by improving and resolving influencing factors such as: products, prices, brands, forms of marketing and promotion, sales consulting and warranty 5.3 MEANING OF RESEARCH The study helps us answer the question about the factors affecting the decision to buy a smartphone at FPT Shop Da Nang, the level of impact of each factor At the same time, the research results also help us to find the orientations and solutions to help the FPT Shop chain in Da Nang to change and develop, improve revenue and profit in business smartphones 5.4 LIMITATIONS OF THE RESEARCH Like any other study, this study also has certain limitations - The first is a matter of time, the research was carried out during the author's 2month internship at FPT Shop 186 Ton Duc Thang, so there are still many errors - Secondly, because only surveying customers at the store that the author has practiced for a short time, the number of survey samples is still small and can only represent a part of all FPT Shop store chains in Da Nang city - Third, during the survey, collect information Although we have tried to convince and explain to customers about the meaning and importance of the research, it is inevitable that customers will answer dishonestly, inaccurately, and objectively compared to the survey results their rating or reply to pass In addition, the research is only conducted in a certain time, so there is not much basis for assessing the changing trends for the research problem 5.5 FURTHER RESEARCH DIRECTIONS From these limitations are suggestions and orientations for further research to overcome and improve - Firstly: Expanding the research scope, not only customers buy smartphones at 186 Ton Duc Thang store, but we can research all stores in Da Nang city to increase reliability, continue continue to calibrate the scales to be more suitable 88 - Secondly: Due to the limitation of this study being conducted at one point in time, its long-term explanatory power is limited, so it is advisable to conduct studies over long and repeatable time periods to evaluate trends Change direction is better - Thirdly: Expanding the survey sample size, the method of sampling according to the probability rule will give more accurate and more representative conclusions for the study population BIBLIOGRAPHY  https://qlkh.uel.edu.vn/Resources/Docs/SubDomain/qlkh/Th%C3%B4ng%20b %C3%A1o/2019/Th%C3%A1ng%205/KT2/KT2-4.doc - Author: MSc Le Nhan My, Le Thi My Ngan - Year of publication: 2019 - Title of the document: THE PRIORITIES OF CONSUMER BEHAVIOR: A CASE STUDY OF SMARTPHONE IN DA NANG CITY - Publisher: University of Economics and Law  https://xemtailieu.net/tai-lieu/phan-tich-cac-yeu-to-anh-huong-den-quyet-dinh-mua- dien-thoai-di-dong-cua-khach-hang-tai-fpt-shop-2589386.html - Author: Le Thi Diem My - Year of publication: 2019 - Title of the document: Analysis of factors affecting customers' decision to buy mobile phones at FPT Shop - Publisher: Hue University of Economics  https://www.researchgate.net/publication/260062313_Factors_Affecting_Smartphon e_Purchase_Decision_Among_Malaysian_Generation_Y - Author: Karen Lim Lay-Yee, Han Kok-Siew, Benjamin Chan Yin-Fah - Year of publication: 2013 - Title of the document: FACTORS AFFECTING SMARTPHONE PURCHASE DECISION AMONG MALAYSIAN GENERATION Y - Publisher: Faculty of Business and Management, Asia Pacific University of Technology and Innovation, Bukit Jalil, Malaysia  https://www.researchgate.net/publication/342709127_Factors_Affecting_Smartphon e_Purchase_Decisions_of_Generation-Y_Nushrat_Shabrin - Author: Nushrat Shabrin, Nushrat Shabrin, Saad Bin Abul Kashem, Chan Kit Hie, Chan Kit Hie - Year of publication: 2017 - Title of the document: Factors Affecting Smartphone Purchase Decisions of Generation-Y - Publisher: University Malaysia Sarawak, Malaysia  https://www.sciencedirect.com/science/article/pii/S2212567116301216 - Author: Azira Rahima, Siti Zaharah Safina, Law Kuan Khenga, Nurliyana Abasa, Siti Meriam Alia - Year of publication: 2015 - Title of the document: Factors Influencing Purchasing Intention of Smartphone among University Students - Publisher: Faculty of Business Management, Universiti Teknologi MARA Kedah  https://www.researchgate.net/publication/29458573_Consumer_Behaviour - Author: Leon G Schiffman; Leslie Lazar Kanuk - Year of publication: 1997 - Title of the document: Consumer behavior - Publisher: https://www.researchgate.net/  https://www.researchgate.net/publication/319468976_Consumer_Behavior - Author: Roger D Blackwell; Paul W Miniard; James F Engel - Year of publication: 2006 - Title of the document: Consumer's behaviour - Publisher: https://www.researchgate.net/  https://khotrithucso.com/doc/p/sach-quan-tri-marketing-cua-philip-kotler-nam- 2001-556381 - Author: Philip Kotler - Year of publication: 2001 - Title of the document: Marketing Managerment, Millenium edition - Publisher: https://khotrithucso.com/  https://www.bookfinder.com/isbn/9780131693838/ - Author: Peter D Bennett - Year of publication: 1988 - Title of the document: Consumer Behavior - Publisher: https://www.bookfinder.com/  Consumer behavior Philip Kotler (1999) from: https://vinhthaicommunication.com/phan-tich-hanh-vi-mua-hang-cua-nguoi-tieudung/  Model of buying behavior Philip Kotler, 2005 from: https://slideplayer.com/slide/6060273/  Theory of Rational Action (TRA) from: https://www.researchgate.net/figure/Theory-of-Reasoned-Action-TRA-FishbeinAjzen-1975_fig1_284014676  Theory of Planned Behavior (TPB) from: https://africanbioservices.eu/mastersthesis-about-the-theory-of-planned-behavior/  Development situation of Smartphone in the world from: https://vov.vn/congnghe/sanh-dieu/luong-nguoi-dung-smartphone-o-viet-nam-dung-trong-top-10-toancau-863220.vov  The situation of using smartphones in Vietnam from: https://bnews.vn/nhung-danhgia-ve-muc-do-su-dung-smartphone-cua-nguoi-viet/195299.html  Affiliated member units FPT from: http://frt.vn/en/homepage/  Oganizational structure of FPT Digital Retail joint stock company from: Human resources department FPT Shop  Structure of FPT Shop's stores from: FPT Shop Human Resources Department  Graph showing business results in 2019-2020 of FPT Shop from: http://www.fpts.com.vn/FileStore2/File/2021/11/01/FTSAnnual_Report_2020_6c0b 441c.pdf  Outstanding financial indicators of FPT Shop in years 2019, 2020, 2021 (trillion VND) from: http://www.fpts.com.vn/investor-relations/annual-report/  FPT Shop's March 2022 revenue 186 Ton Duc Thang from: FPT Shop manager 186 Ton Duc Thang  Smartphone products at the shop and promotions from: FPT Shop 186 Ton Duc Thang- Da Nang APPENDICES TABLE OF QUESTIONS OF FACTORS AFFECTING THE DECISION TO BUY SMARTPHONE AT FPT SHOP DA NANG Hello Mr/Ms My name is Lu Minh Phuc, a student majoring in Business Administration from the International Training Institute of Duy Tan University I'm doing a research paper for my graduation thesis and I'm doing a survey about the factors that influence the decision to buy a smartphone at FPT Shop Danang I look forward to receiving your input, your contribution will help me to complete the research easily This process will take you about minutes, I assure you that your personal information will be kept confidential and used only for research Thank you very much for taking the time to complete this survey! NO OBSERVED VARIABLES SUITABLE NOT SUITABLE PRODUCT The product is believed to be genuine The store has a wide variety of products for customers to buy New product lines are constantly updated In your opinion, you need to add any other criteria besides the criteria? listed above in order to study the factors that influence customers' decision to buy smartphones at FPT Shop? ………………………………………………………………………………………… ………………………………………………………………………………………… PRICE The prices of products at FPT Shop are more competitive than other stores There is a policy of buying direct payment and buying in installments for customers to choose NO OBSERVED VARIABLES SUITABLE NOT SUITABLE FPT Shop often has attractive discounts In your opinion, you need to add any other criteria besides the criteria? listed above in order to study the factors that influence customers' decision to buy smartphones at FPT Shop? ………………………………………………………………………………………… ………………………………………………………………………………………… BRAND FPT Shop is a big business FPT Shop is a more prestigious brand than many other competitors The brand and reputation of FPT Shop gives you credibility when buying products In your opinion, you need to add any other criteria besides the criteria? listed above in order to study the factors that influence customers' decision to buy smartphones at FPT Shop? ………………………………………………………………………………………… ………………………………………………………………………………………… FORM OF MARKETING AND PROMOTION 10 11 12 13 Various forms of marketing to attract customers A form of close marketing creates a friendly feeling for customers There are often promotions and incentives (gifts, discount vouchers, ) Promotional gifts are practical, useful and valuable 14 Customers are easily aware of promotions In your opinion, you need to add any other criteria besides the criteria? listed above in order to study the factors that influence customers' decision to buy smartphones at FPT Shop? ………………………………………………………………………………………… NO OBSERVED VARIABLES SUITABLE NOT SUITABLE ………………………………………………………………………………………… SALE AND WARRANTY CONSULTANCY 15 16 17 18 19 Staff are very enthusiastic when advising and supporting customers Competent staff and good product knowledge Warranty and return policies are reasonable Fast and enthusiastic warranty support The way to take care of customers makes you feel satisfied In your opinion, you need to add any other criteria besides the criteria? listed above in order to study the factors that influence customers' decision to buy smartphones at FPT Shop? ………………………………………………………………………………………… ………………………………………………………………………………………… SOCIAL INFLUENCE 20 21 22 Everyone I know buys smartphones at FPT Shop Relatives and friends recommend and suggest me to buy smartphones at FPT Shop Buying a smartphone at FPT Shop helps me express my status In your opinion, you need to add any other criteria besides the criteria? listed above in order to study the factors that influence customers' decision to buy smartphones at FPT Shop? ………………………………………………………………………………………… ………………………………………………………………………………………… CUSTOMER'S BUYING DECISION 23 24 25 I will buy a smartphone in the near future When I buy a smartphone, I will buy it at FPT Shop I will recommend to friends and family buy smartphones at FPT Shop NO OBSERVED VARIABLES SUITABLE NOT SUITABLE In your opinion, you need to add any other criteria besides the criteria? listed above in order to study the factors that influence customers' decision to buy smartphones at FPT Shop? ………………………………………………………………………………………… ………………………………………………………………………………………… COMMENTS FROM THE INSTRUCTOR ……………………………………………………………………………………… … ……………………………………………………………………………………… … ……………………………………………………………………………………… … ……………………………………………………………………………………… … ……………………………………………………………………………………… … ……………………………………………………………………………………… … ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… Da Nang, May … 2022 Confirmation Of The Instructor (Sign) ... smartphones at FPT Shop Da Nang • H2: Price affects negatively to the decision to buy smartphones at FPT Shop Da Nang • H3: Brand affect positively to the decision to buy smartphones at FPT Shop Da Nang. .. 1.4.1 Research Object 10 - The object of this research is the factors that affect the decision to buy Smartphone of customers at FPT Shop Da Nang - The object of investigation focuses on customers. .. buy Smartphone at FPT Shop Da Nang • Analyze and consider the degree of influence of these factors on customers' smartphone purchasing decisions, thereby identifying the factors affecting customers'