Factors influencing domestic consumption in vietnams market

INTRODUCTION

Research background

In today's world, globalization is an essential process that all countries must embrace to avoid falling behind As a testament to this integration, Vietnam joined the World Trade Organization (WTO) as its 150th member on January 11, 2007 This move has led to heightened competition between domestic and foreign goods and services, reflecting the profound impact of economic globalization.

Entering the international market has presented local enterprises with increased challenges, including competition from foreign companies and a wider array of product choices for consumers due to relaxed trade policies (Wang and Cheng, 2004) Consequently, local firms must focus on marketing strategies and boosting sales while addressing the critical question: What factors influence Vietnamese consumers to prefer domestic products over imported goods? This thesis aims to explore four key factors affecting domestic consumption in Vietnam's market.

Problem statement

Numerous academic researchers have explored the factors influencing consumer choices between domestic and foreign products across both developed and transition economies A significant focus has been on consumer ethnocentrism, which directly impacts purchase intentions Key studies by researchers such as Herche (1994), Klein and Ettenson (1999), Nguyen and Nguyen (2008), Shimp and Sharma (1987), Sumner (1906), and Vida and Reardon (2008) have contributed to this understanding Additionally, the role of patriotism in consumer behavior has been examined by Bannister and others.

Numerous studies have explored the perceptions of product quality concerning domestic and imported goods, with significant contributions from researchers such as Han (1988), Klein (2002), Nguyen and Nguyen (2008), and Vida and Reardon (2008) The concept of cosmopolitanism has also been examined in this context, as noted by Javalgi et al (2004) and Suh and Kwon (2002) In Vietnam, Nguyen and Nguyen (2008) emerged as key authors addressing this issue; however, to date, there appears to be a lack of research specifically investigating the factors influencing Vietnamese consumers' preferences for domestic versus foreign products.

In 2004, Vietnam initiated the "Vietnam High Quality Products" program, and on July 31, 2009, the Politburo launched the nationwide campaign "Vietnamese Use Vietnamese Products" through Document No 264-TB/TW This initiative underscores the government's recognition of the significance of promoting domestic consumption Consequently, investigating the factors that influence domestic consumption in Vietnam's market offers valuable insights for local enterprises in the marketing sector.

Research objectives

This thesis seeks to test the domestic consumption model established by Vida and Reardon (2008) within the context of Vietnam, an emerging economy The findings aim to provide valuable managerial insights that will assist local enterprises in formulating effective marketing and business strategies To validate the model's applicability, the study will analyze the impact of various factors on domestic consumption, addressing two critical research questions.

Q1 Which factors do influence the domestic consumption in Vietnam?

Q2 How do factors influence the domestic consumption in Vietnam?

This study defines imports as products brought into Vietnam from technologically and economically advanced countries, while domestic goods refer to items produced or manufactured by Vietnamese companies or foreign direct investment (FDI) firms operating in Vietnam.

Scope and Research methodology

This research focuses on the Vietnamese market and the consumption behaviors of its people, using refrigerators as a key product for analysis Refrigerators are essential household items for every Vietnamese family, highlighting their significance in daily life According to Euromonitor, this study aims to explore these consumption patterns in depth.

International 1 (2010), “Due to busier lifestyle, especially in urban areas, Vietnamese consumers increasingly prefer to make one – stop grocery shopping trips just once a week or even once a fortnight During the review period, this trend led many consumers to trade up to refrigeration appliances with a larger volume capacity, so they could store more food at home and spend less time on grocery shopping”. Appendix 1.1 presents the statistic data of refrigerator’s sales from

The research is conducted in two main stages: the first stage involves focus groups and pilot testing to develop a comprehensive questionnaire, while the second stage entails quantitative research with 396 samples, as detailed in Chapter 3 The reliability of the measurement scales is evaluated using the Cronbach alpha coefficient and Exploratory Factor Analysis (EFA), followed by Confirmatory Factor Analysis (CFA) to validate the findings.

Euromonitor International stands as the global leader in strategic research for consumer markets, boasting a presence in numerous countries with analysts in 80 nations The organization conducts extensive market research on critical trends and drivers In the thesis, the theoretical model is tested using the SEM technique, with all analyses performed through PASW Statistics.

Structure of the research

The thesis is structured into five chapters, beginning with Chapter 1, which introduces the research background, problem statement, objectives, scope, and methodology Chapter 2 reviews literature on factors influencing domestic consumption and outlines the hypotheses and research model Chapter 3 details the research methodology employed in the study Chapter 4 focuses on data analysis and presents the findings Finally, Chapter 5 discusses the implications of the findings, acknowledges limitations, and suggests directions for future research.

LITERATURE REVIEW

Introduction

This chapter aims to explore and review relevant theories within the literature, building upon the overview provided in the previous chapter It presents a research model and covers key topics, including a literature review on domestic consumption, perceptions of product quality in imports, and the influences of consumer ethnocentrism, patriotism, and cosmopolitanism.

Domestic Consumption (DC)

Domestic consumption (DC) refers to the act of purchasing and utilizing products produced within a country, as defined by the Oxford Advanced Learner’s Dictionary In marketing studies, researchers focus on consumer behavior, examining how attitudes and perceptions shape buying decisions These diverse consumer perceptions significantly influence attitudes, purchasing intentions, and overall behaviors, as highlighted by Vida and Reardon (2008).

Import Product Quality Perception (IPQP), Consumer Ethnocentrism (CET), Patriotism (PAT) and Cosmopolitanism (COS)

2.3.1 Import Product Quality Perception (IPQP)

Consumers' purchasing intentions for domestic versus imported products are significantly influenced by their perceived quality Quality perception encompasses various dimensions such as workmanship, appearance, design, durability, functionality, prestige, reliability, technical advancement, and value for money Research indicates that consumers in developed countries generally view domestic products as superior in quality, while the opposite perception is common among consumers in developing countries.

In 1906, Sumner introduced the concept of ethnocentrism, defining it as the perspective where one's own group is seen as the focal point, evaluating all others in relation to it (Sharma et al., 1995) This idea extends to consumer ethnocentrism, characterized as the tendency for individuals to view their own group as the center of the universe, interpreting other cultures through their own lens and favoring those who share similar cultural backgrounds while rejecting those who do not (Shimp and Sharma, 1987) Research indicates that consumer ethnocentrism can effectively predict preferences for domestic over foreign products, although this varies across different product categories (Herche, 1992, cited in Balabanis et al., 2001).

Consumer ethnocentrism represents beliefs that purchasing imported products is wrong and immoral because it can hurt the domestic economy and can cause the loss of jobs (Shimp and Sharma 1987).

Patriotism embodies a profound love for one’s country and a readiness to defend it It signifies a strong attachment and loyalty to one's nation, characterized by a lack of hostility towards others This sense of patriotism typically begins to form early in the socialization process, leading to deeply ingrained and enduring patriotic attitudes.

Patriots often prioritize national interests over personal gains, demonstrating a readiness to make sacrifices for their country This strong sense of commitment is deeply rooted in fundamental needs such as security, belonging, and self-enhancement, which makes these attitudes highly resistant to change.

Cosmopolitanism, derived from the Greek term for "citizen of the world," is a concept rooted in anthropology and social psychology that is increasingly relevant in marketing and management (Cleveland et al., 2010) Individuals who identify as cosmopolitans often engage with international media, including foreign books and films, even while residing in their home countries (Hannerz).

Researchers now agree that cosmopolitanism should specifically refer to a distinct set of attitudes, beliefs, and traits, particularly characterized by "an ethos of cultural openness" rather than simply describing individuals who travel globally (Riefler and Diamantopoulos, 2009; Kurasawa, 2004, cited in Cleveland et al., 2010).

Cosmopolitan consumers embrace new ideas and prioritize functional needs, opting for products or services that effectively meet their requirements, independent of traditional norms or social pressures.

Cannon et al (2009) argue that when cosmopolitan consumers prioritize functional needs over local customs and traditions, consumer cosmopolitanism can serve as a viable transnational segmentation base (Riefler and Diamantopoulos, 2009).

Hypothesis development and Research Model

2.4.1 Import Product Quality Perception (IPQP), Consumer

Ethnocentrism (CET) and Domestic Consumption (DC)

According to Wang and Cheng (2004), consumers are more likely to buy products from technologically advanced countries when they perceive their quality to be superior to that of goods from less developed nations Additionally, the country of origin of a product can trigger a consumer's ethnocentric tendencies, as noted by Huddleston et al.

Domestic consumption is influenced by ethnocentrism and quality perception, with consumers in developed countries generally viewing domestic products as higher quality compared to foreign ones However, this trend reverses in developing countries like Nigeria, Romania, Turkey, India, and China, where foreign products, especially from higher origin countries, are often seen as superior In Vietnam, a negative correlation exists between the perception of imported product quality and the intention to purchase domestic goods Conversely, in Kazakhstan, ethnocentric attitudes positively impact domestic purchasing behavior These observations lead to several hypotheses presented in the study.

H1: Import Product Quality Perception is negatively related to Domestic Consumption

H2: Consumer Ethnocentrism has a positive effect on Domestic Consumption

2.4.2 Cosmopolitanism (COS), Patriotism (PAT) and

Balabanis et al (2001) explore the roles of patriotism, nationalism, and internationalism as factors influencing consumer ethnocentrism in Turkey and the Czech Republic Their findings reveal a significant impact of both patriotism and nationalism on consumer behavior, corroborating earlier research in the field.

Research has shown varying impacts of patriotism and cosmopolitanism on consumer ethnocentrism For instance, Rybina et al (2010) found that in Kazakhstan, patriotism positively influences ethnocentric attitudes, while cosmopolitanism negatively affects them Similarly, Vida and Reardon (2008) identified a negative relationship between cosmopolitanism and consumer ethnocentrism in the Slovenian market However, other studies, such as those by Suh and Kwon (2002), present conflicting findings regarding the effects of cultural openness and related constructs on ethnocentrism Based on these insights, this study proposes two hypotheses to further explore these dynamics.

H3a Patriotism is positively related to Consumer Ethnocentrism. H3b Cosmopolitanism is negatively related to Consumer Ethnocentrism.

2.4.3 Patriotism (PAT) and Domestic Consumption (DC)

A study by Han (1988) indicates that patriotism positively influences consumers' preference for domestic products over foreign ones (Granzin and Olsen, 1998) Vida and Reardon (2008) further explore this hypothesis, confirming that domestic consumption in Slovenia is significantly driven by the emotional impact of patriotism Therefore, the fourth hypothesis of this study is supported.

H4: Patriotism is positively affected to Domestic Consumption.

Based on presented hypotheses above, the research model in this study:

Import product quality perception (IPQP)

METHODOLOGY

Introduction

This chapter will go into details the problems related to research methods,research procedure and scales for the purposes of measuring constructs and testing the research model.

Research design

The research was conducted in two stages: the first stage involved a pilot study that utilized both qualitative and quantitative methods to develop the questionnaire, while the second stage consisted of official quantitative research that tested the research hypotheses and model using the collected data The research procedure is illustrated in Figure 3.1.

Literature reviews (DC scale, IPQP scale, CE scale, PAT scale, COS scale)

Survey Coding data Clearing data

Descriptive statistic Cronbach’s Alpha EFA

The primary objective of this stage was to develop measurement scales tailored for the Vietnamese market To achieve this, the original scales were translated from English to Vietnamese, following the forward and back translation process outlined by Craig and Douglas (2003) for cross-cultural adaptation The forward translation involved converting the original scales into Vietnamese, with the exception of the CET scale, which was derived from a local study conducted by Nguyen and Nguyen in 2008 This process was guided by a specialist with extensive experience living and studying in the United States.

In the back translation process, an experienced English instructor from the University of Economics Ho Chi Minh City translated the initial Vietnamese questionnaire back into English to ensure its accuracy This English version was then compared with the original Vietnamese to identify any errors and assess the translation quality (Craig and Douglas 2003) Following this phase, the subsequent steps were initiated.

- depth interview technique to ensure the adaptable questionnaire to Vietnam’s market Nine customers were asked around The questionnaire for group discussion was presented in Appendix 3.1.

The second draft of the questionnaire was created using Google Documents and distributed to 400 MBA students, receiving 129 responses within two weeks The feedback was coded, filtered, and analyzed using PASW Statistics 18 This process aimed to finalize the official questionnaire for quantitative research by testing Cronbach’s alpha, conducting exploratory factor analysis (EFA), and refining items within each construct.

Reliability analysis was first used to remove items with low Item-Total Correlations ( 0.05) (Hair et al., 2010) However, it's important to note that the chi-square value tends to increase with larger sample sizes, presenting challenges in interpretation.

According to a 2010 study, contemporary models are increasingly complex, leading to sample sizes that diminish the effectiveness of the chi-square significance test as a reliable Goodness-of-Fit (GOF) measure for distinguishing between good and poor models The authors recommend that researchers should always supplement chi-square results with additional GOF indices for a more comprehensive evaluation Therefore, this study employs various GOF metrics to enhance the analysis.

The Chi-square/df index (CMIN/df), Goodness of Fit Index (GFI), Comparative Fit Index (CFI), Tucker & Lewis Index (TLI), and Root Mean Square Error Approximation (RMSEA) are essential metrics for evaluating model fit A model is considered to have a good fit if it achieves GFI, TLI, and CFI values of 0.9 or higher.

(Bentler and Bonett, 1980); CMIN/df e13, e13e14, e17e18) Thus, they did not get the condition for the unidimensionality.

Table 4.7: Model Fit Summary - Final Saturated Model

The extracted variance of CET construct improved from 46% to 53%.Table 4.8 shows the new results for Cronbach’s Alpha Reliability,Composite Reliability and Extracted Variance.

Table 4.8: Assessment Construct Validity Result

Table 4.9 displays both standardized and unstandardized factor loadings, all of which exceed 0.5 and are statistically significant, affirming the convergent validity of the scales Additionally, Table 4.10 reveals that the correlations between constructs significantly differ from unity, demonstrating that discriminant validity has been successfully established across the constructs.

Table 4.9: Regression weights and standardized regression weights summary

Regression weights Standardized regression weights

CET4 < - CET 1.022 0.09 11.309 *** CET4 < - CET 0.731 CET2 < - CET 0.945 0.087 10.814 *** CET2 < - CET 0.656

IPQP3 < - IPQP 1.351 0.097 13.928 *** IPQP3 < - IPQP 0.911 IPQP2 < - IPQP 1.087 0.086 12.678 *** IPQP2 < - IPQP 0.709 IPQP1 < - IPQP 1.164 0.091 12.789 *** IPQP1 < - IPQP 0.716

PAT4 < - PAT 1.117 0.042 26.55 *** PAT4 < - PAT 0.869 PAT3 < - PAT 0.95 0.051 18.649 *** PAT3 < - PAT 0.811 PAT2 < - PAT 1.175 0.058 20.122 *** PAT2 < - PAT 0.892 PAT1 < - PAT 1.073 0.065 16.607 *** PAT1 < - PAT 0.774

COS3 < - COS 0.883 0.081 10.929 *** COS3 < - COS 0.613 COS2 < - COS 1.296 0.107 12.11 *** COS2 < - COS 0.882 COS1 < - COS 1.264 0.105 12.022 *** COS1 < - COS 0.813

DC3 < - DC 0.969 0.043 22.316 *** DC3 < - DC 0.89 DC2 < - DC 0.798 0.053 15.053 *** DC2 < - DC 0.667 DC1 < - DC 0.653 0.051 12.822 *** DC1 < - DC 0.593

Table 4.10: Testing the discriminant validity

IPQP < > PAT 0.14 0.050 0.86 17.258 0.000 PAT < > COS 0.30 0.048 0.71 14.646 0.000 COS < > DC 0.11 0.050 0.89 17.810 0.000 CET < > IPQP 0.10 0.050 0.90 17.918 0.000 CET < > PAT 0.19 0.049 0.81 16.376 0.000 CET < > DC 0.36 0.047 0.64 13.601 0.000 IPQP < > COS -0.10 0.050 1.10 21.878 0.000 PAT < > DC 0.30 0.048 0.70 14.518 0.000 IPQP < > DC -0.14 0.050 1.14 22.877 0.000 CET < > COS 0.06 0.050 0.94 18.636 0.000

Testing Theoretical Model

The results of the Standardized Theoretical Model, as shown in Figure 4.7, indicate an acceptable fit to the data, with a chi-square value of 321.978 (df = 160, p = 0.000), a chi-square/df ratio of 2.011, a Goodness of Fit Index (GFI) of 0.926, a Tucker-Lewis Index (TLI) of 0.955, a Comparative Fit Index (CFI) of 0.962, and a Root Mean Square Error of Approximation (RMSEA) of 0.051.

Figure 4.7: SEM’s Result - Theoretical Model (Standardized)

Table 4.11 shows the regression weights among constructs in the theoretical model Regression weights of pairs COS - CET were nonsignificant at a p – value of 0.818.

Table 4.11: Regression Weights - Theoretical Model

Table 4.12 presents standardized regression weights of theoretical model.

Table 4.12: Standardized Regression Weights - Theoretical Model

Table 4.13 presents the squared multiple correlation, commonly referred to as R², indicating that the predictors of DC account for 24.7% of its variance This implies that approximately 75.3% of the variance in DC remains unexplained by these predictors.

Table 4.14 displays the bootstrapping results, a computer-based re-sampling method created by B Efron This technique involves randomly selecting cases from the original dataset with replacement to produce new datasets, typically matching the original's sample size By repeating this process multiple times, such as 1,000 iterations, bootstrapping effectively simulates drawing numerous random samples from a population, as noted by Kline (2010).

Bootstrapping offers researchers a significant advantage by enabling them to evaluate the stability of parameter estimates, leading to more accurate reporting of these values (Byrne, 2010) In the accompanying table, the "mean" column displays the average parameter estimate derived from 1,000 bootstrap samples, while the "S.E" column indicates the bootstrap estimate of the standard error for each factor loading parameter in the model, reflecting the standard deviation of the parameter estimates calculated across the samples.

The analysis involved 1,000 bootstrap samples, with the column labeled "S E–S E" indicating the approximate standard error of the bootstrap standard error The "Bias" column reflects the difference between the bootstrap mean estimate and the original estimate, while "S.E–Bias" presents the approximate standard error of the bias estimate Notably, the Bias values were minimal, ranging from 0 to 0.004, which underscores the reliability of the parameter estimates.

Maximum likelihood estimating Bootstrap estimating

PAT  DC 0.263 0.049 0.260 0.06 0.001 -0.003 0.002CET  DC 0.325 0.048 0.328 0.059 0.001 0.003 0.002IPQP  DC -0.201 0.049 -0.197 0.058 0.001 0.004 0.002

Testing Hypotheses and Summary

Table 4.15 presents the results of five hypotheses from the theoretical model Hypothesis 1 indicates that the perception of import product quality negatively impacts domestic consumption, with results showing (β = -0.257, s.e = 0.067, p = 0.000) Hypothesis 2 reveals that consumer ethnocentrism positively influences domestic consumption, supported by (β = 0.322, s.e = 0.058, p = 0.000) Additionally, hypothesis 3a confirms a positive relationship between patriotism and consumer ethnocentrism, with results of (β = 0.230, s.e = 0.073, p = 0.002) Lastly, hypothesis 4 is also supported, demonstrating that patriotism positively affects domestic consumption.

H3b was not supported ( Cosmopolitanism is negatively related to consumer ethnocentrism) had the results with β = 0.023, s.e = 0.099, p = 0.818.

Table 4.15: Hypotheses testing and results (based on the Regression

Weights table in Theoretical Model)

H1 Imports product quality perception is negatively related to Domestic consumption

Ethnocentrism has a positive effect on

H3a Patriotism is positively related to consumer ethnocentrism.

H4 Patriotism is positively affected to

H3b Cosmopolitanism is negatively related to consumer ethnocentrism

Table 4.16 presents the Standardized Regression Weights from the theoretical model, highlighting the strongest influences of independent variables on the dependent variable Among these, CET demonstrated the most significant effect on DC, with a beta coefficient of 0.325 Additionally, PAT exerted both a direct and an indirect impact on DC through CET.

Table 4.16: Standardized Regression Weights (Theoretical Model)

This chapter examined the data to assess the Cronbach’s Alpha reliability coefficient in relation to exploratory and confirmatory factor analysis The analysis confirmed five distinct factors and tested five hypotheses within the theoretical model Chapter 5 will provide an in-depth discussion of the findings, managerial implications, and limitations of the study.

CONCLUSIONS AND IMPLICATIONS

Introduction

This chapter discusses the study findings obtained from the data analysis The study implications, study limitations and suggestions for the future research are presented.

Discussion of findings

In this study, domestic consumption was assessed through four key items that reflect the attitudes and behaviors associated with purchasing and utilizing domestic products The average score of 3.971, which falls below the neutral threshold of 4, indicates that respondents generally did not agree with the statements, suggesting a reluctance to buy or use domestic products.

This study identified three key factors significantly influencing domestic consumption: Import Products Quality Perception (IPQP), Consumer Ethnocentrism (CET), and Patriotism (PAT) The research confirmed Hypothesis 1, which states that a higher perception of import product quality negatively impacts domestic consumption When consumers perceive imports as having superior quality compared to domestic products, they are more likely to choose imports over local options This finding aligns with previous research by Nguyen and Nguyen (2008) in the Vietnamese market, highlighting the critical role of import product quality perception in consumer behavior.

The study confirms that consumer ethnocentrism (CET) significantly influences domestic consumption, indicating that consumers with higher ethnocentric tendencies are more likely to purchase domestic products than those with lower levels of ethnocentrism Following a confirmatory factor analysis (CFA), only three items were retained in the CET scale Additionally, Hypothesis 3a highlights a positive relationship between patriotism and consumer behavior.

Consumer Ethnocentrism was supported It means the more patriotic the individual; the higher his/her consumer ethnocentric tendencies will be (Balabanis et al 2001).

The study confirmed that patriotism has a positive influence on domestic consumption, indicating that individuals with a strong sense of national pride are more inclined to purchase local products This correlation arises from a belief that buying foreign goods undermines the Vietnamese economy and contributes to job loss for fellow citizens As a result, patriotic individuals are motivated to support domestic businesses by choosing to buy local products, reinforcing their commitment to their country.

Managerial Implications

The results of this study suggest that domestic consumption can be improved as we change the determinants such as import product quality perception, consumer ethnocentrism and patriotism.

Vietnamese consumers generally perceive imported products to be of higher quality than domestic ones, leading to a greater willingness to purchase these imports Consequently, managers of domestic enterprises should prioritize product quality in their operations, as it significantly influences consumer preferences and purchasing decisions To achieve this, quality must be integrated into every stage of production, including establishing standards, training personnel, and implementing inspections, ideally conducted by the producers themselves, to ensure high-quality outcomes (Schroeder 2003).

Government should encourage the production of high quality, competitive Vietnamese products among Vietnam enterprises.

To enhance the quality of domestic products, marketing managers must prioritize consumer ethnocentrism by developing effective marketing communication programs that promote the purchase and use of local goods These initiatives should feature relatable imagery, such as employees in Vietnamese factories, and evoke a sense of patriotism, reinforcing the importance of supporting national industries By fostering collaboration between enterprises and the government, these messages can resonate deeply with consumers, encouraging them to embrace domestic products.

Vietnamese companies marketing manager may focus on consumer ethnocentrism by incorporating message into promotional campaigns For example:

“Buy Vietnamese products and protect our industries”

“Buy Vietnamese products and protect the jobs of our people”

Promoting these slogans in educational institutions such as schools, universities, and colleges can effectively raise awareness through posters on notice boards, roadshows, and theatrical performances Television advertisements could feature a cheerful Vietnamese factory worker alongside the message, “By purchasing Vietnamese products, you help A secure her job and support her family.”

To boost domestic consumption and foster consumer ethnocentrism, patriotism plays a crucial role Vietnamese marketing managers can create impactful advertising campaigns featuring patriotic slogans to resonate with consumers and encourage local purchasing.

“Be a proud Vietnamese – buy Vietnamese products”

“Show your love for your country by buying Vietnamese products”

“I am a son of Vietnam – I buy Vietnam – made products”

“I am proud of my country – I buy Vietnamese products”

A successful brand strategy should incorporate creative concepts that resonate with patriotism Including slogans like “Buy Vietnamese products and protect the jobs of our people” and “Show your love for your country by buying Vietnamese products” on packaging can effectively foster a sense of national pride and encourage consumers to support local products.

The Ministry of Industry and Trade should allocate budgets to support Vietnamese companies in their television advertising campaigns Additionally, the Ministry of Information and Communication should promote the involvement of popular actors, actresses, and singers in these initiatives Furthermore, the Ministry of Industry and Trade should facilitate connections between enterprises, enabling companies to source raw materials from one another effectively.

Managers can leverage social media platforms like Facebook, Twitter, and Google+ to promote their offerings of Vietnamese-made products Retailers such as Coop Mart, Big C, Maximart, Nguyen Kim, and Phan Khang can utilize these communication channels to proudly inform consumers about their commitment to selling locally made goods.

Limitations and Future research

This study has several limitations, primarily stemming from its reliance on a convenience sample, which is considered the least reliable form of non-probability sampling The respondents were students from second-degree university and MBA classes, which may not represent the broader population Additionally, the research focused exclusively on one product type, refrigerators, limiting the findings' applicability Future research should employ a random sample and explore a wider range of product types to enhance the generalizability of the research model Furthermore, the study's model included only five factors—Consumer Ethnocentrism, Imports Product Quality Perception, Patriotism, Cosmopolitanism, and Domestic Consumption—suggesting that future studies should incorporate additional factors such as Animosity, Nationalism, Internationalism, Individualism, Conspicuous Consumption, and Foreign Product Consumption to provide a more comprehensive understanding.

61 study also does not evaluate the effect of demographic variables such as gender, income, age, job on the research model Future research should investigate the influence of these factors.

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Nguyen Khanh Duy (2009), Bài giảng thực hành mô hình cấu trúc tuyến tính (SEM) với phần mềm AMOS, Tp Hồ Chí Minh: Đại học Kinh tế Tp Hồ Chí

Refrigeration Appliances – Vietnam, Euromonitor Internamtional: Country SectorBriefing, February 2011.

Refrigerator statistics Vietnam 2005 - 2010

Table 1 Sales of Fridge Freezers by Format: %

Side by Side with Dispenser 2 2.5 2.9 4 4.2 8.6

Side by Side without Dispenser 2.8 3 3.6 4.3 4.4 8.9

3 - Door French Door without Dispenser 3.1 3.8 5 5.3 5.4 5.7

3 - Door Vertical Door without Dispenser 0 0 0 0 1 1.1

Table 2 Sales of Fridge Freezers by Volume Capacity: % Breakdown

Table 3 Brand Shares of Refrigerator Appliances 2007 - 2010

Sanyo Sanyo Home Appliances Asian Co Ltd 51.7 58.1 64.8 67.5 Toshiba

Panasonic Matsushita Home Appliances Co Ltd 4.4 4.1 3.8 3.6

Sharp Sharp Electronics Vietnam Co Ltd 0 0 3 3

Deawoo Deawoo Hanel Electrics Co Ltd 7.3 4.3 1.3 0.6

Table 4 Forecast Sales of Refrigerator Appliances by Category: Value

Source: Euromonitor International from trade associations, trade press, company research, trade interview, trade sources.

Group discussion

Hello, I'm Cao Quoc Viet, and I'm excited to discuss the differences between domestic and imported products with you today Before we dive into the questionnaire, let's enjoy a cup of coffee together.

Relative to using refrigerator please let me know:

When selecting a refrigerator, it's essential to consider the brand, whether it's imported or from a Vietnamese company, as well as its quality and price Share your experience with the product you chose, highlighting what influenced your decision Was it the affordability, advanced technology, or perhaps the overall performance that made it appealing? Your insights can help others make informed choices in their refrigerator purchase.

When considering the purchase of a refrigerator, it's essential to evaluate your needs and preferences Think about the brands that resonate with you, their country of origin, and the technology they offer Choosing a specific brand often involves assessing its reputation for quality, energy efficiency, and innovative features, which can significantly influence your decision-making process.

3 Do you think that the quality of refrigerator is the most important thing? What main factors that influence whether you choose a brand of refrigerator or not?

4 Do you think that we should not buy imported refrigerator? Could you explain your opinion?

5 Do you agree with me that buying imported products will cause the unemployment in our country?

6 Do you think that the Vietnamese should buy the domestic products, for example, they should buy the refrigerator is made in our country? Please explain your answer?

7 Talking about patriotism, what do you think about the Vietnamese patriotic?

8 What do you feel about our country? If you have a change to make something good for our country, what will you do?

9 Do you want to live in a foreign country? Please tell me why?

10 Would you like to contact with people from different cultures? Why?

There are statements below, please tell me know – do you understand them If you do not understand, please discuss with me.

Findings: Nine people were asked around Six men have the age between 31 and 36;

Three women aged 26 to 27, with two currently pursuing an MBA, are among a group of seven individuals who have graduated from universities and colleges In terms of appliance usage, six individuals prefer the Sanyo brand, while three others utilize products from Toshiba, LG, and Daewoo, as illustrated in the table below.

Country of origin Japan Japan Vietnam Vietnam

Quality of product Good Good Good Good

Price High High Reasonable Reasonable

When considering the purchase of a refrigerator, it's essential to evaluate various factors such as brand reputation, country of origin, and technological features Selecting a specific brand often depends on personal preferences, reliability, energy efficiency, and innovative technologies that enhance convenience and performance Understanding these aspects can help you make an informed decision that meets your needs and expectations.

When they need to store food.

All of nine people care about the country of origin, technology.

Everyone thinks that Sanyo is the best brand in quality.

Do you think that we should not buy imported refrigerator? Could you

6 people say no, the explanation is that the qualities of imported bridges are

3 people say yes, they believe that refrigerators that made in Vietnam have the same quality in comparison to import products.

Do you agree with me that buying imported products will cause the unemployment in our country?

Do you think that the Vietnamese should buy the domestic products, for example, they should buy the refrigerator is made in our country?

6 people do not agree with this statement, they like the good quality product, well known products.

Talking about patriotism, what do you think about the Vietnamese patriotic?

5 people say that they do not care about what is patriotism They just think about their families; how to have a high salary to support for their family.

What do you feel about our country? If you have a change to make something good for our country, what will you do?

All nine people say that this is a difficult question Everyone thinks that education is the biggest problem that we need to change Some people talk about politics, inflation, corruption…

Do you want to live in a foreign country? Please tell me why?

Nine people like living in a foreign country They like a fresh environment, a modern life with high income…

Would you like to contact with people from different cultures? Why?

Most of people like contacting with foreigners due to the reason of improving speaking English.

English Questionnaire

Hello, my name is Cao Quoc Viet, and I am a student in the MBA program at the University of Economics Ho Chi Minh City I am conducting research on Vietnamese consumer buying behavior and would greatly appreciate your participation by completing the attached questionnaire Thank you for your time and support.

I will send you a lucky small gift below (You should choose 1/6 gifts)

4 More than 1000 documents that relative to Marketing, Business Administration, Human resource management, customer behavior…

5 Sales Technique video composed by Francis Hung

6 Sales Technique audio composed by Quach Tuan Khanh.

1 In this research, imported products are the products made from other countries and imported into Vietnam.

2 Domestic products are the products made in Vietnam by local companies or FDI companies.

3 Refrigerator is a proxy product of this research.

If you are/ live in a family which are done in fields such as

Manufacturer/ retailer relative to the refrigerator Stop

Market research, Advertising, Communicating Stop

Do not work in the above fields Keep on

You do not care about buying a refrigerator Stop

You do not decide the buying refrigerator for your family Stop

I recently purchased a refrigerator and am considering another one Please indicate your level of agreement with the following statements by marking your response on a scale from "strongly disagree" to "strongly agree."

1 It is not right to purchase foreign made products

2 Vietnamese consumers who purchase products made in other countries are responsible for putting their fellow Vietnamese out of work

3 A real Vietnamese should always buy

4 We should purchase products manufactured in

Vietnam instead of letting other countries get rich off us

5 Vietnamese should not buy foreign products, because this hurts Vietnamese business and causes unemployment

6 Imported refrigerator is generally cleverly designed and attractive

7 Imported refrigerator quite reliable and seem to last desired length of time

8 Imported refrigerator is carefully produced and have fine workmanship

9 Imported refrigerator usually represent a good value for money

10 Being a Vietnamese citizen means a lot to me

11 I am proud to be a Vietnamese citizen

12 When a foreign person praises Vietnam, it feels like a personal compliment

13 I feel strong ties with Vietnam.

15 I like immersing myself in different cultural environments

16 I like having contact with people from different cultures

17 I would enjoy travelling to foreign countries for an extended period of time

18 Getting information and news from around the world is important to me

19 Mostly I try to buy refrigerator brand of domestic companies

20 Whenever possible, I take time to look at labels in order to knowingly buy refrigerator brand of domestic companies

21 I shop first at retail outlets that make a special effort to offer a variety of domestic refrigerator product

22 I shop first at retail outlets that make a special effort to offer brands of domestic refrigerator products

Please, fill in the following information

Your email: ………. Gender: 1 Male 2 Female

Thank you for your help!

Class: EMBA 19 – University of Economics Ho Chi Minh City Skype: vietcao1010

Yahoo chat: vietquoccao@yahoo.com.vn

Facebook: www.facebook.com/vietquoccao

Bảng câu hỏi khảo sát

Xin chào! Tôi là Cao Quốc Việt, học viên cao học QTKD tại ĐH Kinh tế TP.HCM, đang nghiên cứu về hành vi mua hàng của người Việt Tôi rất mong nhận được sự hỗ trợ từ các bạn bằng cách trả lời bảng câu hỏi Xin lưu ý rằng không có ý kiến nào là đúng hay sai; tất cả ý kiến của các bạn đều quý giá cho nghiên cứu của tôi Để tri ân sự giúp đỡ của các bạn, tôi xin gửi tặng một món quà từ danh sách dưới đây.

1.Phần mềm lập kế hoạch kinh doanh (Business Plan Pro)

2.Phần mềm lập kế hoạch marketing (Marketing Plan Pro)

3.Bộ đĩa học tiếng Anh tiềm thức (Subliminal English study)

Tổng hợp hơn 1000 tài liệu nghiên cứu tiếng Anh trong các lĩnh vực như Marketing, Hành vi khách hàng và Quản trị nguồn nhân lực, cung cấp nguồn tài nguyên quý giá cho những ai mong muốn tìm hiểu sâu về quản trị kinh doanh.

5.Bộ đĩa video kỹ năng sales do học giả nổi tiếng MBA - Francis Hùng trình bày.

6.File ghi âm khóa học kỹ năng bán hàng do học giả MBA - Quách Tuấn Khanh trình bày.

Vui lòng chọn MỘT trong 6 mục và ghi địa chỉ email của bạn ở mặt sau bảng câu hỏi Sau khi hoàn thành nghiên cứu này, tôi sẽ gửi cho bạn đường link tải quà tặng qua email.

1 Hàng ngoại nhập được đề cập đến trong bảng câu hỏi này là các hàng hóa sản xuất tại nước ngoài và được nhập khẩu về Việt Nam.

Hàng nội hay hàng sản xuất trong nước là những sản phẩm được sản xuất và lắp ráp tại Việt Nam, có thể do các công ty Việt Nam hoặc các công ty có vốn đầu tư nước ngoài thực hiện.

3 Hàng hóa được đề cập trong bảng khảo sát này là: tủ lạnh.

Các bạn hoặc những thành viên trong gia đình bạn đang làm việc trong các lĩnh vực:

1 Sản xuất, mua bán tủ lạnh : Ngưng khảo sát

2 Quảng cáo/ Nghiên cứu thị trường: Ngưng khảo sát

3 Báo chí/phát thanh/ truyền hình : Ngưng khảo sát

4 Không làm trong các lĩnh vực trên: Tiếp tục

Các bạn vui lòng cho biết:

1 Tôi không quan tâm đến việc mua tủ lạnh: Dừng khảo sát

2 Việc mua tủ lạnh cho gia đình không do tôi quyết định: Dừng khảo sát

3 Tôi đã từng mua tủ lạnh/ tôi có ý định sẽ mua một chiếc tủ lạnh: Tiếp tục

Phần I: Vui lòng cho biết mức độ đồng ý của bạn cho các phát biểu dưới đây theo thang điểm từ 1 đến 7, với qui ước sau:

HOÀN TOÀN PH Ả N ĐỐ I đến 7: HOÀN TOÀN ĐỒ NG Ý

(Xin chỉ khoanh tròn một số thích hợp cho từng phát biểu)

1 Chuộng mua hàng ngoại nhập không phải là hành vi đúng đắn của người Việt Nam 1 2 3 4 5 6 7

2 Ủng hộ việc mua hàng ngoại nhập là góp phần làm một số người Việt mất việc làm 1 2 3 4 5 6 7

3 Người Việt Nam chân chính luôn mua hàng sản xuất tại Việt Nam.

4 Mua hàng nhập ngoại chỉ giúp cho nước khác làm giàu.

5 Mua hàng nhập ngoại gây ra tổn hại kinh doanh của người trong nước.

6 Tủ lạnh nhập ngoại có chất lượng cao hơn loại tủ lạnh sản xuất trong nước.

7 Công nghệ sản xuất tủ lạnh nhập ngoại cao hơn công nghệ sản xuất tại Việt Nam 1 2 3 4 5 6 7

8 Tủ lạnh nhập ngoại có chất lượng đáng tin cậy hơn so với tủ lạnh sản xuất tại Việt Nam.

9 Tủ lạnh nhập ngoại rất đáng đồng tiền.

10 Việc trở thành một công dân Việt Nam mang rất nhiều ý nghĩa đối với tôi.

11 Tôi tự hào là người Việt Nam.

Khi được người nước ngoài khen ngợi về đất nước của mình, tôi cảm thấy tự hào, vì điều đó giống như một lời khen dành cho chính bản thân tôi.

13 Tôi luôn cảm nhận bản thân mình có một mối liên hệ chặt chẽ với

14 Tôi yêu đất nước Việt Nam.

15 Tôi thích trải nghiệm cuộc sống ở các nền văn hóa khác nhau.

16 Tôi rất thích liên hệ với mọi người đến từ các nền văn hóa khác.

17 Tôi thích đi du lịch ở nước ngoài ngay khi có cơ hội trong một khoảng thời gian nào đó.

18 Đối với tôi, việc giao tiếp và trao đổi thông tin với mọi người ở các nước trên thế giới là công việc hết sức quan trọng.

19 Tôi luôn mua tủ lạnh được sản xuất trong nước.

Tôi luôn chú ý đến việc kiểm tra nhãn mác hàng hóa để đảm bảo mua đúng tủ lạnh sản xuất trong nước.

21 Tôi luôn ưu tiên chọn các nơi bán hàng trưng bày nhiều tủ lạnh mang thương hiệu Việt Nam.

22 Tôi luôn ưu tiên chọn các nơi bán hàng trưng bày nhiều tủ lạnh được sản xuất trong nước.

Phần II: Vui lòng cho biết thêm một số thông tin sau:

23 Xin vui lòng cho biết email của bạn: ……

24 Xin vui lòng cho biết giới tính của bạn: ……… Nam Nữ

25 Xin vui lòng cho biết mức thu nhập hàng tháng của bạn theo nhóm nào dưới đây:

CHÂN THÀNH CẢM ƠN SỰ HỢP TÁC CỦA CÁC BẠN

Thông tin người phỏng vấn

Tên: Cao Quốc Việt (Mr)

Học viên lớp: English MBA K19 – Đại học Kinh Tế TpHCM

Yahoo chat: vietquoccao@yahoo.com.vn

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