RESEARCH ON FACTORS AFFECTING CONSUMERS INTENTION BUYING NISSAN SEDAN CARS IN DA NANG CITY

DUY TAN UNIVERSITY INTERNATIONAL SCHOOL PSU DIVISION UNDERGRADUATE THESIS RESEARCH ON FACTORS AFFECTING CONSUMERS' INTENTION BUYING NISSAN SEDAN CARS IN DA NANG CITY MAJOR : BUSINESS ADMINISTRATION MENTOR : PHAM THI THUY MIEN STUDENT : NGUYEN THI HONG VY CLASS : K24PSU-QTH4 ID NUMBER : 24202114854 Da Nang, 2022 ABSTRACT The objective of this research is to determine and measure the influence of factors on the intention to buy Nissan brand cars of customers in Da Nang city Based on the theoretical basis and review of previous studies at home and abroad, the author has built a proposed research model and developed the research hypotheses of the topic Besides, the topic applies a combination of two preliminary and quantitative research methods with analytical techniques including: trial survey, Cronbach's Alpha reliability test, EFA exploratory factor analysis, test Determining the research hypothesis, evaluating the suitability of the research model, multivariable regression was used as a basis for evaluating the influence of factors on the intention to buy a Nissan Sedan car of customers in Da Nang city The research results show that the factors, including: attitude towards attributes, subjective standards, price perception, perceived behavioral control and brand reputation have a positive influence on purchase intention Nissan Sedan cars of customers in Da Nang city In which, the subjective norm factor has the same and strongest influence on the intention to buy a Nissan Sedan car in Da Nang city (standardized beta coefficient is 0.322); the second influencing factor is brand reputation (with a normalized beta of 0.263); the third influencing factor is price perception (normalized beta is 0.256); The fourth influencing factor is perceived behavioral control (with a normalized beta coefficient of 0.2220; and finally, the attitude factor towards the attributes has the weakest influence on the intention to buy a Nisan Sedan car (with a normalized beta coefficient of 0.2220;) with a standardized beta coefficient of 0.206) Based on the research results, solutions to improve the intention to buy Nissan Sedan cars of customers in Da Nang city in the future were also presented DISCLAIMER I certify that the attached thesis is my original work No other person’s work has been used without due acknowledgement Except where I have clearly stated that I have used some of the this material, it has not been presented by me for examination in any other course or subject at this or any other institution I understand that the work submitted may be reproduced and/or communicated for the purpose of detecting plagiarism I understand that should this declaration be false, I am libel to be penalized under the Duy Tan University regulations Signature: Date: ACKNOWLEDGEMENT After studying and doing research at Duy Tan University, I have received attention, help and encouragement from teachers, family, friends and colleagues Completing this thesis is an opportunity for me to express my respect and gratitude First and foremost, I want to express my hearfelt appreciation to my science mentor, my mentor is Pham Thi Thuy Mien of Duy Tan University’s Faculty of International Education, for spending so much time and enthusiasm in guiding, support me, and accompany me throughout the process of learning and implementing the thesis I’d like to express my gratitude to the faculty members of Duy Tan University’s Faculty of International Education for their scientific and technical assistance, as well as for sharing invaluable guidance on protocols, procedures, and formalities when at school learning and writing I also would like to express my deep thanks to the Board of Directors, friends, and colleagues for creating favorable conditions and supporting me in my work so that I can participate in research and complete the thesis Finally, I’d like to express my heartfelt appreciation to my family members who have always been there for me, inspired and helped me bothe physically and mentally, and served as my fulcrum and inspiration in life, work and science study Student Nguyen Thi Hong Vy TABLE OF CONTENTS ABSTRACT DISCLAIMER ACKNOWLEGEMENT TABLE CONTENTS LIST OF ABBREVIATIONS LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS ATA BR Co EFA KMO PP PBC SN TPB TRA Attitude towards attributes Brand Reputaion Company Exploratory factor analysis Kaiser-Meyer-Olkin Price perception Perceived behavioral control Subjective norm Theory of Planned Behavior Theory of Reasoned Action Model LIST OF TABLES NUMBE R 1.1 2.1 3.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 5.1 5.2 TABLE NAME PAGE The financial position of the company in the last years Recommended factor variables Preliminary scale Descriptive statistics Age factor analysis Gender factor analysis Job factor analysis Income factor analysis Cronbach's Alpha test for the factor "Attitude towards attributes" Cronbach's Alpha test for the factor "Subjective norm" Cronbach's Alpha test for the factor "Price perception" Cronbach's Alpha test for the factor "Perceived behavioral control" Cronbach's Alpha test for the factor "Brand Reputation" Cronbach's Alpha test for the factor "Intent to buy a Nissan Sedan car" KMO coefficient and Bartlett's Test of the independent variable Total extracted variance of customer's vehicle purchase intention component Factor loading EFA coefficient of the intention to buy a Nissan Sedan car of Da Nang people KMO coefficient and Bartlett's Test of the dependent variable Total variance extracted of the factor of intention to buy a car Nissan Sedan Factor loading EFA coefficient of intention to buy a car Nissan Sedan Correlation coefficient test results R Square analysis on the fit of the regression equation ANOVA analysis on the suitability of the method process Statistical analysis of residual autocorrelation of the regression equation Regression coefficient on factors of intention to buy a car Nissan Sedan Hypothesis testing and statistics on the influence of factors on employee performance Descriptive statistics of observed variables of subjective standard factors Descriptive statistics of the observed variables of the brand reputation factor 25 30 41 41 12 13 44 46 47 47 48 49 50 52 53 54 55 56 56 58 59 59 60 61 62 66 67 5.3 5.4 5.5 Descriptive statistics of observed variables of price perception factor Descriptive statistics of observed variables of perceived behavioral control factors Descriptive statistics of the observed variables of the attitudinal factor towards the attributes 68 69 70 LIST OF FIGURES NUMBE R 1.1 1.2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 3.1 5.1 FIGURE NAME Structure diagram of the management apparatus Business room structure diagram Consumer behavior model Factors affecting the purchasing decision process Theory of Resoned Action Model Theory of Planned Behavior Research model of intention to buy Volvo car Research model of intention to buy Hybrid car Research model of intention to buy electric car in Beijing Research model of Nguyen Duy Nhat Research model of intention to buy Vinfast car Research model proposed by the author Research process Research results of the topic PAGE 11 13 19 20 20 21 22 23 23 24 29 10 CHAPTER 1: INTRODUCTION 1.1 General introduction 1.1.1 Reason for choosing a research topic Today, when the government promotes integration into the world economy through joining world trade organizations such as WTO and FTA, the country has opened up many opportunities to access many imported goods Because taxes have been reduced quite a lot This is also the reason that foreign car manufacturers appear in the Vietnamese market quite popular Along with that is the strong development of society and economy, people's living standards are increasingly improved, leading to higher living needs When people have a more stable income, their lives require more secure and convenient things and personal cars are no exception when they receive a lot of attention from people in the country Therefore, automobile manufacturers have also timely grasped the tastes and needs as well as the attitudes of consumers towards car products on the Vietnamese market to be able to supply and change the company's product lines with new, luxurious, and unique designs are suitable for different classes, not only in urban areas but also in rural areas According to preliminary statistics in the area of Da Nang city, there are nearly 45 car dealership stores distributed in the area In the past, cars were just a means of commuting, but now cars are gradually seen as an accessory to affirm the class and economy of an individual or family or even the lifestyle of the owner The rate of personal car ownership in our country is low compared to other countries in the region, reaching only 23 cars/1000 people, by 2025 this rate is forecasted to increase to 50 cars/1000 people This shows that this is a market with good growth potential In the context of such fierce competition, to attract and increase the number of customers who have bought cars and intend to buy cars with previously trusted brands is a big challenge for businesses It is necessary for businesses, manufacturers and car dealers in the Vietnamese market in general and Da Nang in particular to understand the consumer's attitude towards their products Also according to personal research, studies on the intention to buy Nissan-branded 74 5.2 Some recommendations to improve the intention to buy Nissan Sedan cars of consumers in Da Nang city 5.2.1 Subjective norm Table 5.1 - Descriptive statistics of observed variables of subjective standard factors N Minimum SN1 SN2 SN3 SN4 190 190 190 190 Valid N (listwise) 190 Maximum 1 1 5 5 Mean 3.40 3.12 3.31 3.12 Consumer's subjective norm, also known as self-expression of personal opinion, has a positive influence and has a strong impact on purchase intention According to the survey results, subjective standards have a strong impact on the intention to buy Nissan Sedan cars of Da Nang customers However, the SN2 and SN4 scales did not get much agreement from the respondents Therefore, Nissan needs to enhance the social value for users when owning its car This can be done through product advertising strategies, brand promotion In my personal opinion, Nissan can invite idols, KOLs who have influence on consumers to promote its products, because customers themselves when using products promoted by other people having a great influence will increase selfworth, people around the customer will have a good view and evaluation of the user as being trendy, showing style, worthy of social position customer association Thanks to the combination with idols, consumers will perceive the value of the product as being luxurious, noble, etc Along with that, Nissan Da Nang must always ensure that its employees are politely dressed, enthusiastic, friendly, knowledgeable about their business, products and car characteristics of the company and ready to help customers 75 Employees should also learn the characteristics of customers to know how to effectively offer based on customer psychological analysis to meet their desires 5.2.2 Brand reputation Table 5.2 - Descriptive statistics of the observed variables of the brand reputation factor N Minimum Maximum Mean BR1 BR2 190 190 1 5 3.43 3.42 BR3 190 3.78 BR4 190 3.92 Valid N (listwise) 190 The Beta coefficient of the Brand Reputation factor is quite high with 0.263, showing that this factor has a strong impact on the intention to buy a Nissan Sedan car of Da Nang consumers According to statistics table 5.2, out of scales did not get much agreement from the survey questionnaire This shows that Nissan's name is not really known to many people The name of a famous brand in the market will help customers pay more attention to the product, because using a product with a famous brand will help customers express their status in society through image of the product in use In order to continue to build and promote a good brand image in the hearts of customers, Nissan needs to focus on improving product quality, creating a product of good quality that is maintained stably that will increase brand image in the minds of customers In addition, Nissan Da Nang should improve the performance of pre- and after-sales services, collect feedback to listen to customers' opinions, improve products, and best meet the needs of customers 76 5.2.3 Price perception Table 5.3 - Descriptive statistics of observed variables of price perception factor N Minimum Maximum Mean PP1 190 3.91 PP2 190 3.59 PP3 190 3.91 Valid N (listwise) 190 With a standardized Beta value of 0.256, it shows that the perception of selling price has quite an influence on the intention to buy a Nissan Sedan car in Da Nang city Mean value of PP1 scale is high This is also very reasonable because cars are assets of great value, so when putting some money into it, customers will also consider very carefully between one brand and another For customers who are business owners, the use of cars will more or less create prestige and create trust with their customers For individual customers working in travel agencies, an affordable car with all the necessary basic amenities will be a good choice for them With the mean mean value of the PP2 scale, which has not yet received much agreement, in my opinion, compared to the general level, Nissan Sedan is at an average price, on par with other brands' sedans Therefore, in order to create an advantage for itself, Nissan Da Nang should launch many price support programs at special times of the year, such as: registration fee support, registration tax support, and car body insurance, free accessories when buying a car All of these contribute significantly to the successful business of the business 77 5.2.4 Perceived of behavioral control Table 5.4 - Descriptive statistics of observed variables of perceived behavioral control factors N Minimum Maximum Mean PBC1 PBC2 190 190 1 5 3.43 3.58 PBC3 190 3.46 PBC4 190 3.49 Valid N (listwise) 190 Perceived behavioral control refers to a person's perception of whether or not to exhibit a behavior when controlled Whether human behavior is performed or not often depends quite a lot on perception The Beta coefficient of this factor is only 0.222, the mean Mean coefficient is also not too high, relatively equal across the scales, showing that this factor has little influence on customers' buying behavior of Nissan cars Therefore, in order to increase the level of brand awareness for consumers and improve the value of customer behavior control, Nissan should build a brand identity system that affects customers' perception The higher the brand awareness, the more convincing and attractive it is, giving consumers a sense of quality and creating the psychology of wanting to get that product through advertising channels In my personal opinion, the advertising content for the most recent specific Nissan Sedan, the Nissan Almera, is not really attractive Nissan should include in the advertising content the message it wants to convey in the most understandable way, in order to help customers easily associate the brand when hearing or seeing something If possible, in each period or on holidays, Nissan Da Nang should promote advertising with a particular focus for a certain product or service, targeting a specific customer segment, this will be possible help customers remember the brand immediately when there is a need 78 5.2.5 Attitude towards attributes factor Table 5.5 - Descriptive statistics of the observed variables of the attitudinal factor towards the attributes N Minimum Maximum Mean ATA1 190 3.71 ATA2 190 3.63 ATA3 190 3.71 ATA4 190 3.54 ATA5 190 3.81 ATA6 190 3.58 Valid N (listwise) 190 When deciding to buy a car, in addition to factors such as price, product quality, etc., customers are also interested in the joy of owning a car according to their personality, aesthetic or taste own The beta coefficient of the factor Attitude towards the attributes is the lowest among the factors (0.206), in addition, the Mean value of the ATA2, ATA4, and ATA6 scales has not received much agreement from the survey questionnaires Therefore, Nissan's marketing department needs to more research on the tastes of each customer segment that it wants to target in order to produce products that meet customer needs, prioritizing attributes that customers can easily access Easy to feel and easy to improve by the manufacturer + The ATA2, ATA4, and ATA6 scales are all related to the features of the Nissan Sedan vehicle According to research, currently in two lines, Almera MT and Almera CVT, there is no support for lane change warning, acceleration warning, reversing camera, 360 camera, blind spot warning, In my opinion, Nissan should consider adding those features along with an in-car entertainment system, so it will be able to meet more customer segments Or if possible, Nissan Da Nang should provide these support devices separately when customers buy a car at a relative price, not being different from competitors' cars 79 + Producing cars with more eye-catching trendy colors, patterns or designs with special highlights that attract attention, easily reminiscent of the brand, create the desire to own the product because of its own personality car In addition, the interior design of the car also contributes to diversity, meeting most of the needs of today's customers + Car products are valuable products, so Nissan Danang should pay more attention to the place of display so that it can reflect the value of the car in the best way, displaying eye-catching decorations with beautiful interior designs highlights the car, in luxurious, crowded spaces and many passers by such as commercial centers, etc Because when customers step into a luxurious place, it will make customers feel confident, prouder, increasing customer value and increasing selfexpression value of consumers when choosing to buy products at such places + Invest in maintenance space and organize service for customers who come to car maintenance because it often takes a long time Organize services such as refreshment stalls, bookcases, televisions, informational documents related to customers' cars during the vehicle warranty period + Warranty service is also a big concern of customers Good after-sales quality will easily create a better impression, thereby creating confidence for customers in the decision to buy a Nissan Sedan car 5.3 Limitations of the research and future research directions The research results of the topic contribute to proposing some solutions to further improve the customers' intention to buy Nissan Sedan cars in Da Nang city In addition, the research also has some limitations as follows: Firstly, with the collected sample number N=190, customers who have ever known Nissan cars, it is possible that this research is only partial and does not fully cover the nature of the problem in terms of influencing factors affect the intention to buy a Nissan Sedan in Da Nang Therefore, future studies should overcome this limitation by expanding the sample size to increase the generalizability and practicality of the research results 80 Secondly, for the collection of information by distributing survey forms directly to the respondents, it is inevitable that the respondents respond dishonestly and inaccurately Third, this research only focuses on studying the main factors affecting the intention to buy NissN Sedan cars of Da Nang consumers, focusing on customer aspects to understand customers row Therefore, some other factors will not be mentioned in this thesis such as advertising, product strategy, etc Sometimes these factors also contribute equally important in influencing the intention to buy customer's car Therefore, further research should expand the scope of research on other factors that can affect customers' intention to buy Nissan Sedan cars such as promotional factors, reference groups, cultural factors, etc BIBLIOGRAPHY Foreign references Ajzen, I (1991) The theory of planned behaviour Organization Behaviour and Human Decision Processes, 50(2), 179-211 Ajzen, I (2002) Perceived behavioral control, self-efficacy, locus of control, and the theory of planned behavior 1.Journal of Applied Social Psychology, 32(4), 665683 Avraham, B (2013) The impact of service components on customer's satisfaction and repurchasing intention of cars in Israel (Doctoral dissertation) Babes-BolayUniversity, Cluj-Napoca, Romania Chiu, C., Wang, E., Fang, Y., & Huang, H (2014) Understanding customers repeat purchase intentions in B2C e-commerce: The roles of utilitarian value, hedonic value and perceived risk Information Systems Journal, 24, 85-114 Fishbein, M (1980), A theory of reasoned action: some applications and implications, Nebraska Symposium on Motivation, 27, 65-116 Fishbein, A and Ajzen, I., 1975 Belief, attitude, intention and behavior: An introduction to theory and research Reading, MA: Addison-Wesley Hossein Mirzaei, Mehdi Ruzdar (2009), The impact of social factors affecting consumer behaviour on selecting characteristics of purchased cars Karunanayake, R K T., & Wanninayake W M C B (2015).Các yếu tố ảnh hưởng đến ý định mua xe Hybrid [Factors affecting the intention to buy a hybrid car] Journal of Marketing Management, 3(1), 40-52 Shuyuan Xiao Wei He (2011), A study of Chinese consumers’ attitudes toward Volvo cars 10 Tsung-Sheng Chang, Wei-Hung Hsiao (2011), “Consumers' automotive purchase decisions: The significance of vehicle-based infotainment systems”, African Journal of Business Management, Vol.5 (11), pp 4152-4163 Vietnamese references Dang, D T N (2012) Các yếu tố ảnh hưởng đến ý định sử dụng hệ thống tàu điện ngầm Metro thành phố Hồ Chí Minh [Factors affecting intention to use Metro subway system in Ho Chi Minh City] (Master’ thesis) University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam Hoang Trọng & Chu Nguyen Mong Ngoc (2008), Phân tích liệu nghiên cứu với SPSS, Tập 1, Tập 2, NXB Hồng Đức Huynh, T T (2014) Ảnh hưởng giá trị thương hiệu đến ý định mua ô tô người tiêu dùng Thành phố Hồ Chí Minh [Effect of brand equity on consumers' intention to buy cars in Ho Chi Minh] (Master’s thesis) University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam Hoang, T., & Chu, N N M (2008) Phân tích dữliệu nghiên cứu với SPSS (Tập 1, 2) [Analyze research data with SPSS (Volume 1, 2)].Ho Chi Minh, Vietnam: Nhà xuất Hồng Đức T.Thanh Tra (2019) Nghiên cứu yếu tố ảnh hưởng đến định mua tơ Vinfast TP Hồ Chí Minh [Factors affecting intenytion to use Vinfast’s cars in Ho Chi Minh city (Master thesis)], Ho Chi Minh University of Banking) APPENDICES QUESTIONNAIRE SURVEY Hello Mr/Ms My name is Hong Vy, I am currently conducting a research on factors affecting consumers' intention to buy Nissan Sedan cars in Da Nang city I hope you will take the time to answer the following questions for me I pledge that the information you provide is only for the research process I look forward to your sincere cooperation I CONTENTS OF THE SURVEY Please indicate your level of agreement with the following statements how to mark the appropriate number according to the following convention: Strongly disagree No Disagree Neutral Agree Strongly agree Scale Nissan Sedan car have a stylish design, keeping up with the trends of the times Nissan Sedan car is a fuel-efficient car I feel very excited if I can use a Nissan car Nissan Sedan car have higher safety compared to other car brands in the same price segment I really like the features of the Nissan Sedan Nissan Sedan car have powerful engines I would buy a Nissan Sedan car if my family wanted it Colleagues and friends all recommend that I buy a Nissan Sedan Everyone around me has the intention to buy a Nissan Sedan, so I am too 10 People who are important to me will appreciate me if I buy a Nissan brand car 11 When buying a car, my choice depends a lot on the price of the car 12 Nissan Sedan cars are cheaper than other brands' Level of consent 13 14 15 16 17 18 19 sedans Owning a Nissan Sedan car saves me some money I have enough money to buy a Nissan Sedan car I will choose the car Nissan Sedan over other brands I express my style through the car I use Buying or not buying a Nissan Sedan car is up to me The Nissan car brand has created a reputation and is known by many people Nissan is the second largest car brand in Japan, so I trust it very much 20 Nissan car brand is quite famous for quality and service 21 I believe Nissan brand cars are worth using 22 I will recommend to my family/friends to buy a Nissan Sedan car if they intend to buy a car 23 Nissan Sedan car is the first choice when I buy a car 24 I will continue to buy Nissan cars in the future 25 I think the Nissan Sedan car is the right car for me to buy II PERSONAL INFORMATION Your gender:  Male  Female Which of the following ages group you belong to: 18-25  25-35 Your current job:  Under million VND  6-15 million VND  16-40 million VND  Over 40 million VND Your monthly income:  Officer  Civil servants 35-45 > 45  Freelance business  Retire  Other Thank you very much for your cooperation! ... Nissan Sedan cars in Da Nang city 37 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research process Research on factors affecting consumers' intention to buy Nissan Sedan cars in Ho Chi Minh City Da Nang. .. and TPB model, combined with previous research on buying intention, the author builds a research model on consumers' intention to buy Nissan Sedan cars in Da Nang The proposed research model is... consumers' intention buying Nissan Sedan cars in Da Nang city" in order to determine the factors affecting the choice of Nissan Sedan purchase as well as their attitudes and feelings towards the Nissan