INTRODUCTION
RESEARCH BACKGROUND
The household goods industry in Vietnam presents significant growth potential, accounting for 9% of total private consumption and ranking fourth among the country's major industries, with a market value of $13 billion However, the influx of foreign companies due to globalization poses a threat to local manufacturers, as ASEAN-imported products are expected to dominate traditional markets and supermarkets To remain competitive and prevent a loss of market share to foreign entities, Vietnamese household-appliance companies must enhance their capabilities Consequently, there is a pressing need for research on household goods consumption in Vietnam, as current studies on this topic are limited.
PROBLEM STATEMENT AND RESEARCH OBJECTIVE
Launched in 2009 by the Party’s Political Bureau, the "Vietnamese People Use Vietnamese Goods" campaign aims to boost domestic product consumption among Vietnamese consumers while reducing reliance on foreign imports This initiative has led to significant success for local companies, particularly in the household plastic sector According to the Ministry of Industry and Trade of the Socialist Republic of Vietnam, domestically manufactured household plastic products now dominate the market, capturing 90% of the share and outperforming imports from countries like China, Indonesia, and Thailand Prominent brands such as Dai Dong Tien, Duy Tan, Long Thanh, and Song Long have emerged as leaders in this thriving market.
The campaign significantly benefited Vietnamese household companies by influencing consumer purchasing behavior Consumers assess the perceived value of products based on their perceived quality and price Research by Dodds, Monroe, and Grewal highlights that these factors critically impact product evaluation and the willingness to purchase Consequently, a balance between quality and price serves as a strong predictor for the preference for domestic products Interestingly, there are instances where consumers may choose local products despite them being of lower quality and price compared to imported alternatives.
Ethnocentrism, a social psychological factor identified in 1987, plays a significant role in consumer behavior, particularly in the context of the Vietnamese government's campaign promoting the use of domestic products Defined as the belief that one's own community is superior to others, ethnocentrism manifests in marketing as Consumer Ethnocentrism Research has demonstrated that Consumer Ethnocentrism significantly influences the willingness to purchase domestic products, with numerous studies in developed countries affirming its impact (Shimp & Sharma, 1987; Watson & Wright, 2000; Josiassen, Assaf & Karpen, 2011; Chryssochoidis, Krystallis & Perreas).
2007) However, the majority of these studies have been undertaken in advanced economies Little research has been done in developing countries such as Vietnam
Consumer ethnocentrism significantly influences customer perceptions of price and quality for local products Research by Hau, Quynh, and Anh (2011) indicates that Vietnamese consumers' ethnocentric attitudes affect their perceived pricing of domestically made goods Similarly, Tong and Li (2013) observed that consumer ethnocentrism impacts perceived quality among customers in China, highlighting a common trend in developing countries like Vietnam.
Consumer ethnocentrism significantly aids local household companies in attracting Vietnamese consumers; however, its effectiveness diminishes for high-tech or high-cost products For instance, Khanh Chi (2015) notes that Thai imports dominate the electronics and refrigeration market with a 70% share While local household plastic products maintain a strong presence in the domestic market, their representation in the premium segment is minimal, with the majority of market share held by foreign brands like Lock & Lock (Hoang Lam).
In recent years, there has been a noticeable shift in consumer preferences in Vietnam, where local products initially met demand due to their affordability However, as the economy improves and living standards rise, many consumers are increasingly opting for imported luxury goods According to a seminar conducted by the National Economic University and the Ministry of Industry and Trade, Vietnamese consumers exhibit a strong preference for foreign products, often despite their higher prices compared to domestic alternatives Notably, around 20% of the Vietnamese population, who hold higher incomes, account for a significant portion of the country's spending while favoring foreign goods over local offerings This trend indicates that consumer ethnocentrism may vary based on product perception, as highlighted by various researchers.
Research indicates that consumer ethnocentric tendencies in Vietnam are influenced by demographic factors such as age, gender, income, and product categories, which not only predict these tendencies but also moderate their impact on purchasing decisions However, there is a scarcity of studies exploring these variations within the Vietnamese market.
This study addresses three key issues related to consumer ethnocentrism in Vietnam's household product market Firstly, it investigates how consumer ethnocentrism affects perceived price and perceived quality of local products Secondly, it explores the relationship between consumer ethnocentrism, perceived price, perceived quality, and the willingness to purchase Vietnamese household goods Lastly, the research aims to enhance the existing literature by analyzing the influence of demographic variables and product categories on consumer ethnocentrism, as well as their moderating effects on the relationships between ethnocentrism, perceived price, perceived quality, and the intention to buy local products.
BENIFIT OF RESEARCH
This research aims to enhance the understanding of consumer behavior in the Vietnamese market by providing empirical evidence on how consumer ethnocentrism, perceived price, and perceived quality influence the willingness to buy domestic household products It is the first study to explore the combined effects of these factors on purchasing decisions in Vietnam Additionally, the findings reveal that consumer ethnocentrism significantly impacts the willingness to buy local household products, even in a developing country context The study also suggests that the effects of consumer ethnocentrism on perceived price, perceived quality, and purchase intentions may differ based on product categories and demographic characteristics Ultimately, the results will assist Vietnamese household companies in developing targeted marketing strategies that resonate with various consumer segments, thereby increasing their market reach.
RESEARCH METHOD AND STRUCTURE
This research focuses on Ho Chi Minh City (HCMC), the largest city in southern Vietnam and a key economic, technological, and financial center that attracts migrants from various provinces As of 2015, HCMC's official population was 8,146,300 (General Statistics Office, 2015), leading to a higher number of household product users compared to other regions.
This research is structured around five essential components: a review of relevant literature and formulation of research hypotheses, the methodology employed, the analysis of data and resulting findings, a discussion of the implications, and an examination of limitations along with suggestions for future research directions.
THEORETICAL BACKGROUND AND HYPOTHESES
THEORETICAL BACKGROUND
Willingness to buy refers to a consumer's preparedness to engage in purchasing behavior for specific goods or services, influenced by their needs, attitudes, and perceptions of the product and the producing company According to Ajzen's Theory of Planned Behavior, previous intentions significantly predict future behaviors, making purchase intention a crucial measure of willingness to buy This intention reflects the likelihood of a consumer purchasing a product, as noted by researchers such as Dodds et al (1991) and Grewal et al (1998) Furthermore, Hau, Minh, and Tuan (2013) emphasize that willingness to buy indicates a consumer's positive attitude towards a product In this research, willingness to buy encompasses a customer's favorable attitude towards Vietnam household products, their intention to purchase them, and their likelihood of recommending these products to others.
Ethnocentrism is a word composed of two terms “ethnic” (which means group) and
“centrism” (which means focused) Shimp and Sharma (1987) defined ethnocentrism as a
Ethnocentrism is the tendency for individuals to view their own group as superior and to evaluate other cultures through the lens of their own, often leading to a rejection of those who are culturally different (Chryssochoidis et al., 2007) This evaluative perspective means that ethnocentric individuals tend to overvalue their own culture while undervaluing others (Tho et al., 2008) The concept of consumer ethnocentrism, first introduced by Sumner in 1906 and later defined by Shimp and Sharma (1987), refers specifically to consumers' beliefs about the morality of purchasing foreign-made products, emphasizing loyalty to domestic goods High levels of consumer ethnocentrism negatively affect the intention to buy foreign products, as these consumers often believe that purchasing imports harms the national economy and is unpatriotic (Klein and Ettenson, 1999) In contrast, non-ethnocentric consumers assess products based on their inherent qualities rather than their country of origin.
Consumer ethnocentrism significantly influences purchasing behavior, leading to an overvaluation of domestic products while undervaluing imports It fosters a moral obligation among consumers to prioritize domestic goods, resulting in a strong preference for local products Consequently, consumer ethnocentrism acts as a key driver of the willingness to purchase domestically produced items.
Ethnocentrism varies among customers due to the influence of socioeconomic, demographic, geographic, and regional economic factors, as noted by Shimp and Sharma (1987) Research by Sharma et al (1995) highlighted that product categories and consumer demographics, including gender, income, and age, significantly affect ethnocentric tendencies in Korea Additionally, Josiassen et al (2011) established that customer characteristics directly shape consumer ethnocentrism Consequently, understanding the impact of demographic factors is essential when exploring ethnocentric differences across various customer segments.
2.1.3 Consumer Ethnocentrism Tendency Scale (CETSCALE)
Consumer ethnocentrism was first measured by Shimp and Sharma in 1987 through the development of the Consumer Ethnocentrism Tendency Scale (CETSCALE) in the USA Their research demonstrated that this scale effectively measures and explains consumers' preferences for domestic over foreign products By using the term "tendency" instead of "attitude," the CETSCALE captures the consumer's decision-making process regarding the most suitable products for their needs This scale has been extensively utilized in various studies across both developed and developing countries, highlighting its significance in understanding consumer behavior (Balabanis & Diamantopoulos, 2004; Chryssochoidis et al., 2007; Josiassen et al., 2011; Hau et al., 2011; Qing, Lobo & Chongguang, 2012; Maina, Kibera & Munyoki, 2015).
Follow Shimp and Sharma (1987), CETSCALE is a unidirectional measure scale with 17 variables, a lot of researches also convinced this express (Kucukemiroglu, 1999; Watson
& Wright, 2000; Wong, Polonsky & Garma, 2008) But, when Douglas and Nijssen
A 2003 study examined the application of the CETSCALE in cross-national research, specifically in The Netherlands The findings highlighted the necessity of adapting the CETSCALE to align with the unique economic, cultural, and characteristic variables of each country, emphasizing that compatibility is essential for accurate results.
Price serves as a measure of the financial commitment required to acquire a product (Dodds et al., 1991; Zeithaml, 1988) Consumers often do not accurately recall the actual price; instead, they interpret prices in a personally meaningful way (Zeithaml, 1988) The literature identifies two primary types of price: objective price, which refers to the actual cost of a product, and perceived price, which is how individual customers interpret and assign meaning to that cost (Beneke & Zimmerman, 2014; Zeithaml, 1988; Jacoby & Olson, 1977) This interpretation involves comparing the objective price with a reference price, which reflects the customer's subjective perception of the actual price (Zeithaml, 1988; Jacoby & Olson, 1977) Consequently, perceived price represents a customer’s assessment of the value of what they sacrifice in exchange for what they receive It varies among consumers, products, purchasing contexts, and over time (Dodds et al., 1991).
Quality, as defined by ISO 9000:2000, refers to the extent to which inherent characteristics meet stated, implied, or obligatory needs (Hoyle, 2011) Zeithaml (1988) further describes "objective quality" as the measurable superiority against predetermined standards Consequently, perceived quality is characterized as the consumer's overall judgment regarding a product's excellence (Zeithaml, 1988; Alhabeeb, 2002) According to the Business Dictionary (2016), perceived quality emphasizes the importance of consumer assessment in determining a product's value.
“Consumer's opinion of a product's (or a brand's) ability to fulfill his or her expectations
Perceived quality is a subjective assessment of a product's overall components compared to consumer expectations, encompassing both tangible and intangible characteristics It is influenced by a brand's public image, previous consumer experiences with the brand, and the opinions of peers and opinion leaders Key factors contributing to perceived quality include performance, features, reliability, conformance, durability, serviceability, and aesthetics As a result, perceived quality varies significantly based on individual perspectives and the specific type of product, making it a complex and relativistic concept.
HYPOTHESES
2.2.1 Consumer Ethnocentrism and Perceived Price
The perceived price of a product varies among customers based on their individual feelings and evaluations, as noted by Dodds et al (1991) For instance, two customers may view the same product at the same price differently; one may perceive it as a bargain due to positive feelings, while the other may see it as expensive due to negative sentiments Additionally, consumer ethnocentrism plays a significant role in shaping these perceptions Tho et al (2008) highlight that ethnocentric consumers tend to favor products from their own group while devaluing those from outside it This research must therefore account for the influence of consumer ethnocentrism on perceived pricing Supporting this, Hau et al (2011) found similar effects among consumers purchasing products made in Vietnam Thus, the first hypothesis to explore is the impact of consumer ethnocentrism on perceived price.
H1 Consumer ethnocentrism positively affects customer’s perceived price for local household products in Vietnam
2.2.2 Consumer Ethnocentrism and Perceived Quality
Consumer ethnocentrism leads to an inflated perception of the quality of local products, which necessitates examining its impact on the perceived quality of household products in Vietnam as a key hypothesis in this study Research has shown that consumer ethnocentrism significantly affects the evaluation of both domestic and foreign products in emerging economies, as demonstrated in Greece (Chryssochoidis et al., 2007) Additionally, a study conducted by Tong and Li (2013) in China, another developing country akin to Vietnam, further supports this influence Thus, the second hypothesis posits that consumer ethnocentrism affects the perceived quality of local household products.
H2 Consumer ethnocentrism positively affects customer’s perceived quality for domestic household products in Vietnam
2.2.3 Consumer Ethnocentrism and Willingness to Buy
Consumer ethnocentrism significantly influences the willingness to buy, particularly in developing countries like China and Vietnam Research by Wang and Chen (2004) indicates that consumer ethnocentrism affects purchasing decisions in China, while Tho et al (2008) highlight its critical role in promoting local products in Vietnam Numerous studies, including those by Klein et al (1998) and Balabanis & Diamantopoulos (2004), show that consumer ethnocentrism negatively impacts the desire to purchase foreign goods, thereby positively affecting the inclination to buy domestic products This study posits that higher levels of consumer ethnocentrism correlate with an increased willingness to purchase local Vietnamese products, leading to our third hypothesis: consumer ethnocentrism positively influences the willingness to buy local products.
H3 Consumer ethnocentrism positively affects customer’s willingness to buy local household products in Vietnam.
2.2.4 Perceived Price and Willingness to Buy
The perceived price significantly influences consumer evaluation, determining the balance between what they sacrifice and what they receive Research by Dodds and Monroe (1985) indicates that higher prices negatively affect the willingness to buy, a finding supported by Dodds et al (1991) When prices exceed the value consumers are willing to exchange, products are labeled as "expensive," leading to decreased purchasing intent Conversely, when prices fall below acceptable sacrifice levels, products are perceived as "cheap," increasing the likelihood of purchase In the context of Vietnamese household products, consumers are more inclined to buy when they perceive the price as acceptable and worthy of their sacrifice Hau et al (2011) further confirm that a higher perceived price correlates with increased willingness to buy among Vietnamese customers.
H4 Perceived price of local household products in Vietnam positively affects customer’s willingness to buy these products
2.2.5 Perceived Quality and Willingness to Buy
Perceived quality significantly influences consumers' willingness to buy, as highlighted by Dodds et al (1991), who found that a favorable perception of product quality encourages purchases Additionally, Qing et al (2012) noted that in developing countries, consumers often regard imported products—especially those from economically developed nations—as higher quality To fully understand the willingness to buy Vietnamese household products, it is essential to examine the relationship between perceived quality and purchasing intentions.
H5 Perceived quality of local household products in Vietnam positively affects customer’s willingness to these products
2.2.6 Moderating effects of product categories and demographics
This study explores how product category (low-price vs high-price) and demographic factors influence the effects of consumer ethnocentrism on perceived price, perceived quality, and willingness to purchase domestic household products Previous research indicates that consumer ethnocentric tendencies differ based on demographic characteristics, including age, gender, and income, as well as the type of product being considered.
Research indicates that ethnocentric consumer behavior varies significantly among individuals due to factors such as knowledge, experience, and economic conditions (Shimp & Sharma, 1987; Terblanche & Boshoff, 2014; Balabanis & Diamantopoulos, 2004) Studies show that male consumers, older individuals, and those with lower incomes tend to exhibit stronger ethnocentric tendencies (Aziz et al., 2014) Conversely, higher-income consumers demonstrate notably less ethnocentrism, and there are also significant differences in ethnocentric attitudes between male and female consumers (Sharma et al., 1995; Josiassen et al.).
Consumer ethnocentric tendencies are influenced by demographic factors such as age and gender, with older and female consumers exhibiting higher levels of ethnocentrism (Josiassen et al., 2011) Additionally, higher-income consumers tend to be less ethnocentric compared to their lower-income counterparts (Pentz et al., 2014) The impact of ethnocentrism on product judgment and purchase intention varies based on the perceived involvement level of the product (Balabanis and Diamantopoulos, 2004) In Vietnam, research by Tho et al (2008) indicates that consumer ethnocentrism affects the intention to purchase local products similarly across various product categories, gender, income, and education levels, although notable differences exist between younger and older consumers Overall, both product categories and demographic characteristics significantly influence consumer ethnocentric tendencies.
Consumer ethnocentrism significantly influences perceived price, perceived quality, and the willingness to purchase domestic household products; however, this impact is less pronounced in high involvement product categories compared to low involvement ones.
H6b The impact of consumer ethnocentrism on consumer’s perceived price, on consumer’s perceived quality, and on willingness to buy domestically household products are weaker for female consumers than male consumers
Consumer ethnocentrism influences young consumers' perceptions of price and quality, as well as their willingness to purchase domestic household products, to a lesser extent than it does for older consumers.
Consumer ethnocentrism influences perceived price, perceived quality, and willingness to purchase domestic household products, but this effect is less pronounced among higher-income consumers compared to their lower-income counterparts.
RESEARCH MODEL
From 6 above hypotheses, we can draw a research model as figure 1
RESEARCH METHODS
PROCEDURE AND SAMPLE
This research, conducted in Ho Chi Minh City, comprised a pilot study followed by a main study The pilot study aimed to address specific issues prior to the main investigation, focusing on two product categories: local household plastic products and local household electric products The former are characterized as low-cost, low-involvement items, while the latter are high-cost, high-involvement products These categories were selected for their representation of a range of local household items and the ease of collecting relevant statistics Additionally, the markets for these two product types exhibit significant differences.
This research employed a qualitative pilot study followed by a quantitative main study to explore the factors influencing consumer willingness to purchase Vietnamese household products Key elements examined include consumer ethnocentrism, perceived quality, and perceived price, with individual customers serving as the unit of analysis The study was conducted in Ho Chi Minh City, Vietnam's primary economic hub.
The qualitative phase of the research involved in-depth interviews to ensure the accuracy of measurement scales translated from English to Vietnamese This study aimed to evaluate and adjust the terminology in the questionnaire while preserving the original meaning of the scales A total of 12 consumer groups, categorized by demographics and product types, were interviewed individually in Ho Chi Minh City, focusing on participants with extensive shopping experience Based on the insights gained, minor modifications were made to the Vietnamese questionnaire To validate these changes, two additional consumers were interviewed using the revised questions, confirming their understanding aligned with the research objectives Consequently, the finalized Vietnamese measurement scales were deemed clear and comprehensible, paving the way for the subsequent quantitative research.
Primary data for the study was collected through direct handout surveys and online questionnaires distributed via Google Forms to participants, including colleagues and friends purchasing domestic products Participants accessed the electronic questionnaire through a provided link, while handout surveys were also distributed in supermarkets, traditional markets, and convenience stores The study utilized two distinct questionnaires—one focused on local household plastic products and the other on local household electric products—ensuring each participant completed only one form Clear instructions were included with each questionnaire, emphasizing that the study aimed to capture personal opinions without right or wrong answers, thereby minimizing response bias The research aimed to assess scales and test models, with control characteristics including age and income Respondents were specifically targeted within the age range of 21 to 45, based on findings by Tho et al (2008) that indicated varying impacts of consumer ethnocentrism on purchasing intentions among different age groups in Vietnam.
Decree No 65/2013/ND-CP outlines specific provisions of the Personal Income Tax (PIT) Law and its amendments, indicating that individuals earning less than VND 9 million per month are classified as low-income earners Consequently, this study utilized the VND 9 million threshold to categorize participants into lower and higher income groups.
A total of 400 surveys were distributed, with 200 focused on local household plastic products and 200 on local household electric products Out of these, 310 responses were received, resulting in 302 valid responses Therefore, the final sample size for the study was 302.
Table 3.1 presents the sample characteristics:
Table 3.1 Distribution of the sample
Collected data was then analyzed with the statistical software packages of SPSS and AMOS The process of data analysis was as follows:
• Data was coding and entering to SPSS and AMOS softwares
• Provide the summary of those factors in measurements by descriptive statistics
• Test the reliability of the sample data by using the Cronbach’s alpha value to determine the consistency or stability of all scales
• Test convergent and discriminant of factors by using exploratory factor analysis (EFA)
• Assess the validity and reliability of measures by using confirmatory factor analysis (CFA)
• Analyze and test research model by using structural equation model (SEM)
• Examine the moderating effects of product categories and demographic characteristics by using multi-group structural equation model (MGSEM).
DEFINING MEASUREMENT SCALES
There are five research concepts in this research that we must measure, which are: consumer ethnocentrism, perceive price, perceive quality, willingness to buy, consumer’s gender, age and income level
This study developed measurement scales for its model constructs by adapting items from previous research, as detailed in Appendix 1 Each measurement item utilized a 5-point Likert-type scale, ranging from 1 (completely disagree) to 5 (completely agree), ensuring relevance to the current research context.
3.2.1 Measurement scale for consumer ethnocentrism
Consumer ethnocentrism, assessed using the CETSCALE developed by Shimp and Sharma in 1987, includes 17 variables, as detailed in Table 1 However, adjustments to these variables are necessary to align with the economic, cultural, and characteristic contexts of individual countries Research by Klein, Ettenson, and Krishnan (2006) demonstrated the effective application of the CETSCALE in the transition economies of China and Russia, revealing consistent support for a six-item version Given that Vietnam also operates within a transition economy similar to China, this study measures consumer ethnocentrism using six items based on the framework established by Klein et al (2006), as outlined in Appendix 1.
3.2.2 Measurement scale for perceived price and perceived quality
The perceived price of Vietnamese household products reflects customers' evaluations of these items, while perceived quality assesses consumers' judgments regarding the overall quality of the products compared to their expectations Both perceived price and perceived quality were evaluated using six items adapted from Hau et al (2013), as detailed in Appendix 1.
3.2.3 Measurement scale for Willingness to Buy
The scale for willingness to buy local household products in Vietnam adopted also from Hau et al (2013) It includes 3 variables, were show in Appendix 1
3.2.4 Measurement scale for consumer’s gender, age and income level
Consumers’ gender, age and income level are directly measured by asking consumers on their gender, age and income.
DATA ANALYSIS AND RESULT
DESCRIPTIVE STATISTICS
The table below presents key statistical data collected from the study, focusing on the dependent variable of willingness to buy and the independent variables of perceived price, perceived quality, and consumer ethnocentrism These factors were assessed using a Likert scale, ranging from 1 (strongly disagree) to 5 (strongly agree).
Name Measurement Scale N Minimum Maximu m
PQ1 Local product has consistent quality 302 1 5 2.46 966
PQ2 Local product is well produced 302 1 5 2.30 929
PQ3 Local product has an acceptable standard of quality 302 1 5 2.28 877
PP1 Local product is reasonably priced 302 2 5 3.91 703
PP2 Local product offers value for money 302 1 5 3.91 714
PP3 Local product is a good product for the price 302 1 5 3.93 668
CE1 Only those products that are unavailable in Vietnam should be imported 302 1 5 3.98 708
CE2 Vietnamese products, first, last, and foremost 302 2 5 3.94 706
CE3 A real Vietnamese should always buy
CE4 Vietnamese should not buy foreign products, because this hurts Vietnamese business and causes unemployment
CE5 It may cost me in the long-run but I prefer to support Vietnamese products 302 1 5 4.06 697
CE6 Vietnamese consumers who purchase products made in other countries are responsible for putting their fellow
WB1 I would be willing to buy local product if it is available at the store 302 1 5 3.72 848
WB2 I would recommend local product to friends or relatives 302 1 5 3.66 843
WB3 I would buy local product even if there is another brand at the same quality and price 302 1 5 3.72 876
Empirical data reveals that Vietnamese consumers have a low perception of the quality of local products, with all scores falling between 2.0 and 2.5 This suggests a lack of knowledge among consumers regarding the quality of these products.
Empirical data reveals that Vietnamese consumers perceive the prices of local products to be quite high, with average scores around 4.0 This suggests that consumers in Vietnam find the pricing of local products to be quite reasonable and satisfactory for their needs.
Empirical data reveals a high level of consumer ethnocentrism among participants, with all scores exceeding 3.0 This suggests that individuals in the study exhibit strong ethnocentric tendencies, reflecting national traditions rooted in patriotism and a desire to safeguard the economy from the negative effects of imported goods.
Empirical data reveals a strong consumer preference for local products in Vietnam, with an average score exceeding 3.6 across various measures This indicates a significant willingness among Vietnamese consumers to purchase domestic goods.
RELIABILITY TEST
Cronbach's Alpha is a widely used metric for assessing the internal consistency of test scores among a sample of examinees It is essential to calculate and report Cronbach's Alpha, particularly when employing a Likert-type scale, to ensure the reliability of the data.
(Gliem & Gliem, 2003) The value of Cronbach’s alpha need to be accepted is over 0.7 and any variables which the Item-total correlation are smaller than 0.3 will be deleted
The analysis of Cronbach's alpha for perceived quality, recorded at 0.883, exceeds the acceptable threshold of 0.7, while the item-total correlations for all three items—PQ1, PQ2, and PQ3—are above 0.3 These findings indicate that the perceived quality measurement scale is both reliable and effectively designed, warranting the inclusion of all three items in the research.
The analysis of tables 5.3 and 5.4 in Appendix 5 reveals a Cronbach’s alpha value of 0.849 for perceived price, exceeding the acceptable threshold of 0.7 Additionally, the item-total correlation for all three perceived price items (PP1, PP2, PP3) is above 0.3 These findings indicate that the measurement scale for perceived price is reliable and well-constructed, supporting the inclusion of all three items in the research.
In analyzing the data presented in Tables 5.5 to 5.10 of Appendix 5, it is necessary to remove items CE4 and CE6 from the consumer ethnocentrism scale to enhance its reliability Following the deletion of these items, Cronbach’s alpha for consumer ethnocentrism improves significantly from 0.659 to 0.883, surpassing the acceptable threshold of 0.7 Additionally, the item-total correlations for the remaining four items—CE1, CE2, CE3, and CE5—exceed 0.3, indicating strong relationships with the overall scale This outcome confirms that the revised measurement scale for consumer ethnocentrism is both well-structured and reliable, warranting the inclusion of the four retained items in the research.
The analysis of Tables 5.11 and 5.12 in Appendix 5 reveals that the Cronbach’s alpha for willingness to buy is 0.868, exceeding the acceptable threshold of 0.7, while the item-total correlation values for all three items (WB1, WB2, WB3) are above 0.3 These findings indicate that the measurement scale for willingness to buy is both reliable and well-constructed, supporting the inclusion of all three items in this research.
EXPLORATORY FACTOR ANALYSIS (EFA)
Exploratory Factor Analysis (EFA) is a valuable technique for assessing interdependence among variables, examining their interrelationships without predefining them as dependent or independent This research utilizes EFA to evaluate the model, employing the Kaiser-Meyer-Olkin (KMO) measure and Bartlett’s test in conjunction with Promax rotation, which are highly recommended methods for structural equation modeling (SEM).
• Measure for Factor Loading (Hair, Black, Babin & Anderson, 2010) : o Factor Loading >= 0.3: sample size >= 350 o Factor Loading >= 0.5: 100 < sample size < 350 o Factor Loading >= 0.75: 50 < sample size < 100
• KMO (Kaiser -Meyer-Olkin) measure of sampling adequacy with KMO from 0.6 to 1 is a good factor analysis (Gerbing & Andension, 1998)
• Bartlett’s test of Sphericity should be significant (Sig < 0.05) for factor analysis to be considered appropriate (Gerbing & Andension, 1998)
• Total Variance Explained needs to be over 50% (Gerbing & Andension, 1998)
• Eigen-value of each factor must above 1 to be accepted
• Item that less than 0.5 and item that distributes in 2 or more components/factors with difference less than 0.3 will be eliminated
• Convergent validity: all items comprising a scale must load highly (> 0.40 or 0.50) on the factor representing the underlying construct
• Discriminant validity: No item load highly (> 0.40 or 0.50) on more than one factor
In this thesis, we conducted a reliability test using Cronbach's alpha, which led to the removal of variables CE4 and CE6 Consequently, we retained 13 observed variables across four measurement scales, all of which will be analyzed through factor analysis.
Test the appropriate of EFA Model (Kaiser-Meyer-Olkin)
From the table 6.1 in Appendix 6, KMO (Kaiser-Meyer-Olkin) has value = 0.827, it satisfies condition: 0.5 90 968 Fitted
Firgure 2 above demonstrates the unidimensionality among the constructs According to Steenkamp and Van Triijp (1991), as the goodness-of-fit are good, then the constructs are unidimensional except for the correlation between variable errors
To ensure validity and reliability in research, several key measures should be utilized, including Composite Reliability (CR), Average Variance Extracted (AVE), Maximum Shared Variance (MSV), and Average Shared Variance (ASV) According to Hair et al (2010), these measures can be effectively tested against established thresholds to confirm the robustness of the findings.
Table 4.3 Thresholds for the condition of validity and reliability
ASV < AVE Square root of AVE greater than inter-construct correlations
From result of table 7.2 and 7.3 in Appendix 7, this below table can be calculated
Table 4.4 Fit indices for the condition of validity and reliability
These findings indicated that all constructs satisfied the condition of validity and reliability.
STRUCTURAL EQUATION MODELING (SEM)
In this study, data analysis was conducted using structural equation modeling to validate the research model, a method selected for its effectiveness in examining relationships between constructs with multiple measurement items (Joreskog and Sornbom, 1996, as cited in Lin, 2007).
After calculating in AMOS, the structural model result is:
Figure 4.2 Structural Equation Model (SEM) results
The SEM model, which has 60 degrees of freedom, demonstrates an overall fit within acceptable ranges, as illustrated in Figure 3 and detailed in the accompanying table.
Table 4.5 Fit indices for the test model result (SEM)
Fit indices Guideline Model testing result Result
Chi-square significant (CMIN) P 0.90 975 Fitted
Tucker – Lewis Index (TLI) > 90 968 Fitted
Therefore, the SEM model is acceptable and fit to the sample data
Table 8.1 in Appendix 8 presents the regression weights of the main variables in the structural model, indicating whether the relationships between independent and dependent variables are statistically significant.
Table 8.2 in Appendix 8 presents the standardized regression weights of the main variables in the structural model, illustrating the relationship and impact levels between the independent and dependent variables.
From 2 above tables, the summary of hypotheses for study was presented in table below
Table 4.6 Hypotheses Test – Results (Standardized)
Consumer ethnocentrism (CE) significantly influences perceived price (PP) with a strong correlation of 522, indicating that consumers' national identity affects their price perception Additionally, CE positively impacts perceived quality (PQ) at a level of 323, suggesting that ethnocentric attitudes enhance quality assessments Furthermore, CE also affects willingness to buy (WB) with a correlation of 319, demonstrating that ethnocentrism drives purchasing intentions Perceived price (PP) contributes to willingness to buy (WB) with a correlation of 177, while perceived quality (PQ) also plays a role in WB with a correlation of 159, reinforcing the importance of both price and quality perceptions in consumer purchasing behavior.
Note: β: standardized coefficient regression weights; ***: p < 0.001
All hypotheses were supported because they have p-values < 0.05 The research results and findings were shown as follows:
Consumer ethnocentrism plays a crucial role in shaping customer perceptions and behaviors Higher levels of consumer ethnocentrism lead to more favorable feelings towards the price and quality of local household products, ultimately increasing the willingness to purchase these items.
The analysis of data presented in Table 8.3 reveals that 25.9% of the variance in Vietnamese consumers' willingness to purchase local household products is influenced by three key factors: Consumer Ethnocentrism, Perceived Price, and Perceived Quality As indicated in Table 10, these variables significantly affect consumers' willingness to buy local products, with Consumer Ethnocentrism having the most substantial impact (β = 319; p-value < 001), followed by Perceived Quality (β = 177; p-value = 015) and Perceived Price (β = 159; p-value = 011) This suggests that heightened consumer ethnocentrism correlates with an increased likelihood of purchasing local household products in Vietnam The strong link between consumer ethnocentrism and purchasing behavior is supported by previous research conducted by Klein et al (1998), Balabanis and Diamantopoulos (2004), Tho et al (2008), and Hau et al (2011).
MULTI-GROUP STRUCTURAL EQUATION MODELING (MGSEM)
This research utilized MGSEM analysis to investigate how product categories (plastic and electric) and demographic factors (age, gender, and income) moderate the relationships between consumer ethnocentrism and perceived price, quality, and willingness to buy The study categorized each moderating variable into two groups: product type (plastic vs electric), gender (male vs female), age (21-30 vs 31-45), and income (under 9,000,000 VND vs over 9,000,000 VND) Chi-square testing was employed to compare the variance and invariance models of the two groups for each moderating variable, using P-value for analysis A P-value greater than 0.05 indicates no significant difference between the invariant and variant models, while a P-value less than 0.05 suggests distinct impacts of independent variables on the dependent variable across groups (Nguyen Dinh Tho & Nguyen Thi Mai Trang, 2011; Nguyen Khanh Duy, 2009).
Base on the indices of Chi-square and df from variant model and invariant model of two groups of product categories (Figure 9.1, Figure 9.2, Figure 9.3, Figure 9.4 in Appendix
9), the P-value was calculated as below:
Table 4.7 MGSEM Product Results – P-VALUE
The analysis revealed a P-value of 0.1987, indicating no significant difference between the invariant and variant models, leading to the selection of the invariant model This suggests that the relationships between consumer ethnocentrism and perceived price, perceived quality, and willingness to buy local household products remain consistent across both the plastic and electric groups As a result, hypothesis H6a was not supported.
Based on the Chi-square indices and degrees of freedom (df) from both the variant and invariant models across two gender groups, the P-value was calculated as detailed in Figures 9.5, 9.6, 9.7, and 9.8 in Appendix 9.
Table 4.8 MGSEM Gender Results – P-VALUE
The analysis revealed a P-value of 0.5847, indicating no significant difference between the invariant and variant models As a result, the invariant model was selected, showing that the relationships among consumer ethnocentrism, perceived price, perceived quality, and willingness to buy local household products are consistent across both male and female groups Therefore, hypothesis H6b was not supported.
Based on the Chi-square indices and degrees of freedom from both the variant and invariant models for two age groups, the P-value was calculated as shown in Figures 9.9, 9.10, 9.11, and 9.12 in Appendix 9.
Table 4.9 MGSEM Age Results – P-VALUE
The analysis revealed a P-value of 0.0695, indicating no significant difference between the invariant and variant models, leading to the selection of the invariant model As a result, there are no variations in the relationships between consumer ethnocentrism and perceived price, perceived quality, and the willingness to buy local household products across different age groups Therefore, hypothesis H6c was not supported.
Based on the Chi-square indices and degrees of freedom (df) from both the variant and invariant models for two income groups, the P-value was calculated as detailed in Figures 9.13, 9.14, 9.15, and 9.16 in Appendix 9.
Table 4.10 MGSEM Income Results – P-VALUE
The P-value of 0.122 indicates no significant difference between the invariant and variant models, leading to the selection of the invariant model This choice suggests that the relationships between consumer ethnocentrism and perceived price, perceived quality, and willingness to buy local household products remain consistent across different income groups As a result, hypothesis H6d is not supported.
The findings indicate that all hypotheses H6a, H6b, H6c, and H6d were unsupported, demonstrating that consumer ethnocentrism does not significantly affect perceived price, perceived quality, or willingness to purchase domestic household products across various product categories, genders, ages, and income levels.
DISCUSSION, RECOMMENDATION, LIMITATION AND DIRECTION
DISCUSSION AND CONCLUSIONS
The data analysis reveals significant insights into the research objectives, highlighting the influence of consumer ethnocentrism on perceived price and quality of household products in Vietnam It examines how ethnocentrism, along with perceived price and quality, affects consumers' willingness to purchase local household items Additionally, the study explores the moderating effects of product categories and demographic characteristics on these relationships, emphasizing the complexity of consumer behavior in the context of domestic products.
This study reveals that consumer ethnocentrism positively influences the perceived price and quality of local household products among Vietnamese consumers; higher levels of ethnocentrism correlate with more favorable perceptions of these products These findings align with previous research indicating that consumer ethnocentrism directly affects perceived price and quality (Hau et al., 2011; Chryssochoidis et al., 2007; Tong & Li, 2013) Furthermore, the study validates existing theories within the Vietnamese context, demonstrating both direct and indirect effects of consumer ethnocentrism on the willingness to purchase local products Structural Equation Modeling (SEM) results indicate that 25.9% of the variance in Vietnamese consumers' willingness to buy local household products can be attributed to consumer ethnocentrism, perceived price, and perceived quality, with ethnocentrism having the most significant impact Ultimately, individuals with high ethnocentrism are more likely to perceive local products positively and are willing to invest in them, highlighting the crucial role of consumer ethnocentrism in promoting local goods in both developing and developed countries (Klein et al., 1998; Balabanis & Diamantopoulos, 2004).
& Chen, 2004; Tho et al., 2008; Hau et al., 2011)
This study explores how product category and demographic characteristics, such as gender, age, and income, moderate the effects of consumer ethnocentrism on perceived price, perceived quality, and the willingness to purchase domestic household products The findings reveal that consumer ethnocentrism's influence on these factors remains consistent across different product categories and demographic groups, aligning with Tho et al (2008) regarding product categories, gender, and income in Vietnam, yet presenting a divergence concerning age groups.
MANAGERIAL IMPLICATIONS
This study represents the first empirical investigation into how consumer ethnocentrism, perceived price, and perceived quality influence the willingness to purchase local household products in Vietnam The findings offer valuable insights and recommendations for enhancing local product sales in the market.
The findings reveal that consumer ethnocentrism, perceived price, and perceived quality positively influence the willingness to purchase local household products among Vietnamese consumers Therefore, enhancing these factors is crucial for increasing local product sales Marketers, both from local and international household companies, should develop strategies that emphasize the positive impact of consuming imported goods on the Vietnamese economy Additionally, local companies must focus on marketing initiatives that boost consumer ethnocentrism while simultaneously improving perceptions of their products' quality and pricing.
Consumer ethnocentrism significantly influences the perceived price, quality, and purchasing willingness of Vietnamese customers, highlighting its vital role in promoting local goods To capitalize on this, the government and local business managers should prioritize consumer ethnocentrism by implementing programs that celebrate national values and promote campaigns like "Vietnamese people use Vietnamese goods." Additionally, local managers need to develop positioning strategies that align with consumer ethnocentric tendencies Enhanced collaboration among the government, consumers, and enterprises is essential to foster consumer confidence in Vietnamese household products, ultimately encouraging their use.
The study revealed that consumer ethnocentrism equally influences perceived price, perceived quality, and willingness to purchase domestic household products, regardless of product categories, gender, age, or income Consequently, Vietnamese household companies can optimize their marketing strategies by implementing a unified marketing approach across all products and consumer segments, rather than developing distinct plans for each.
LIMITATION
This study presents several limitations that should be noted Firstly, its focus is confined to Ho Chi Minh City, and the sample size is inadequate due to resource constraints, which may render the findings unrepresentative of all Vietnamese consumers using local household products Secondly, the research only examines two product categories—plastic and electric—while numerous other categories warrant investigation Additionally, the sample distribution is uneven, with over 60% of participants aged 21 to 30 and less than 40% aged 31 to 45, potentially skewing conclusions regarding the relationship between age and consumer ethnocentrism Overall, these limitations may impact the validity of the research results.
The study analyzed 148 consumer responses regarding local household plastic products and 154 responses for local household electric products; however, the small sample size limits the reliability of conclusions about consumer ethnocentrism tendencies across product categories Additionally, the research focused on only three factors influencing the willingness to purchase local household products, leaving out other significant influences such as national brands, herd mentality, and xenocentrism, which may also play a crucial role in consumer behavior.
DIRECTIONS FOR FUTURE RESEARCH
With the research result and the above assumption, we would like to suggest the following future researches which we think that it would bring more valuable information to investors:
This study explores how consumer ethnocentrism, perceived price, and perceived quality influence the willingness to purchase domestic household products in Ho Chi Minh City It opens avenues for further research focused on specific products and cities, such as domestic clothing, pharmaceuticals, and fruits Future investigations could also assess whether these findings hold true in other locations, including Hanoi, Da Nang, or even in different countries.
This research focused solely on two product categories: plastic and electric items Future studies should expand the scope to include other categories, such as luxury goods, clothing, and agricultural products, to gain a more comprehensive understanding of consumer behavior across different markets.
The limited resources in this research led to an unequal and insufficient sample size across different consumer groups, potentially impacting the results Future studies should aim to expand this research by securing adequate resources to collect a larger and more evenly distributed sample for each consumer group.
While this research explored several factors influencing Vietnamese consumers' willingness to purchase local household products, there may be additional significant variables that warrant investigation Future studies should consider incorporating elements such as national brands, herd mentality, and xenocentrism, alongside perceived price, perceived quality, and consumer ethnocentrism, to enhance the current research model.
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