SOCIAL MEDIA ADVERTISING OF LOCAL FASHION INDUSTRY FULL 170120

ACKNOWLEDGMENT First, I would like to express my best appreciation to my parents and my family for their supports on spirit and material as well as advice and motivation from relatives, friends and colleagues Second, I am deeply thankful to my teachers … for supporting me to overcome many challenges throughout this research Third, I definitely acknowledge to all Lecturers as well as administrative board from …… University with the initial lectures Finally, I would like to show my recognition to all tourist participated in the survey This thesis would be never completed without them …………………… …………………… ABSTRACT The objective of the project is to analyze the impact of social media advertising on millenial consumer shopping intent in Ho Chi Minh City The project collected data from 250 millenial consumers living in Ho Chi Minh City The two main analytical methods used in the thesis are exploratory factor analysis and multiple linear regression analysis The research results show that there are five elements of social media advertising that influence millenial consumer shopping intent: Informativeness, Entertainment, Interactivity, Credibility, Irritation In particular, the factor of interaction - social, entertainment and permission has a positive effect with the intention of shopping of consumers, while the factor of distraction has an opposite effect with the purchasing intention by consumers Based on the research results, a number of recommendations are proposed to help businesses can improve the effectiveness of social media advertising for customers in general, and millenial generation in particular TABLE OF CONTENT CHAPTER 1: INTRODUCTION 1.1 RESEARCH PROBLEM 1.2 OBJECTIVES AND RESEARCH QUESTIONS 1.3 SCOPE OF RESEARCH 1.4 SIGNIFICANCE OF RESEARCH 1.5 RESEARCH STRUCTURE CHAPTER 2: LITERATURE REVIEW 2.1 KEY CONCEPTS 2.1.1 Social network 2.1.1.1 Definition 2.1.1.2 Benefits of social networking sites 2.1.2 Consumer behavior 2.1.2.1 Definition and Factors affecting consumer behavior 2.1.2.2 Trend of purchasing behavior of consumers 2.1.2.3 Millenials consumer behavior 2.1.3 Social media & millenials consumer behavior relationship 2.1.3.1 Social media & millenials consumer behavior relationship 2.1.3.2 Social media advertising in fashion industry for millenials 2.2 LITERATURE REVIEW 2.2.1 National researches 2.2.2 Foreign researches 2.3 Conceptual framework CHAPTER 3: METHODOLOGY 3.1 RESEARCH METHODOLOGY 3.2 RESEARCH SCALE AND MEASUREMENT 3.2.1 Research Scale 3.2.2 Measurement 3.3 DATA COLLECTION 3.3.1 Primary data 3.3.2 Secondary data 3.4 RESEARCH MODEL - RESEARCH HYPOTHESIS CHAPTER 4: FINDINGS 4.1 Questionnaire results 4.2 Research results CHAPTER 5: CONCLUSION 5.1 CONCLUSION 5.2 RECOMMENDATION 5.3 LIMITATION AND FUTURE RESEARCH LIST OF TABLE Table 1: The difference between target groups for activities and forms of entertainment Table 2: Fashion style Table 3: Differences between target groups on personal spending Table 4: Shopping behavior Table 5: The decisive role of shopping in the family Table 6: Variables and measurement Table 7: General information of participants Table 8: The level of use of social networking sites by millenials Table 9: The reliability coefficient of the scales in the research model Table 10: Results of factor analysis Table 11: Results of multiple linear regression analysis with dependent variable PI LIST OF FIGURE Figure 1: Activities and favorite forms of entertainment of millenials generation Figure 2: Personal spending Figure 3: Research framework CHAPTER 1: INTRODUCTION 1.1 RESEARCH PROBLEM Social network (Facebook, Zalo, Skype, Youtube ) is a virtual world that connects people everywhere, eliminating distance and time with fast and convenient speed In this 4.0 technology era, you just need to sit at home with a mouse click to have the world in your hand Therefore, many businesses have used social networks as a bridge to promote their brand to consumers However, using social networks effectively is also an art that businesses need to learn and prepare carefully to avoid unexpected risks Currently, the trend of marketing on social networks is widely used in the world and in Vietnam Businesses only have to pay a small fee, even without having to pay for branding, selling products on social networks but still get positive results and more effective forms of marketing system It took million years for Radio users to take years, TV for years and Facebook - the most popular social network in just months to reach that number Besides, only 14% of people believe in ads on Radio and TV and 80% of viewers switch channels when they come to the ads In Vietnam, businesses want to have a 20-30s commercial on TV or Radio must spend 30-50 million VND If you use this money to run a marketing campaign on social networks, businesses not only have an advertisement but also can use many different channels, reach millions of social network users, bring High business efficiency In 2018, Vietnam was assessed as a country with a rapid increase in internet usage Specifically, the number of internet users reached 64 million, accounting for 67% of the country's population, an increase of 28% over the same period last year, which is considered as a potential area for investment and development of Digital Marketing On the other hand, thanks to the introduction of multi-level segmented smartphones suitable for most people, the number of phone users also increased compared to other years, and the achieved speed was 0.1% Thanks to that development, the number of social network users on mobile phones increased by many times compared to the previous year, the figure increased by more than 20% over the same period last year Therefore, Digital Marketing is an indispensable approach to customers of businesses and Vietnam is not outside the growth rate of the world Digital Marketing platform Vietnamese users are using social networking as a daily dish, which is reflected at 94% of daily internet usage and once a week accounting for the remaining 6% Social network users in Vietnam in 2018 accounted for more than half of the population (57%), and social networking is becoming the communication tool of most current businesses In that lead is Facebook with 61% followed by Google with the type of Youtube Online advertising accounts for 43%, almost doubling TV advertising and many times more than other advertising In 2018, an increase in video - especially live videos - and privacy issues were brought to the forefront Instagram released IGTV, Apple is building on AR technology to allow users to create animations with Memojis and many brands are using chatbots to support customer service needs, answer questions and survey customers line In the era of rapidly developing technology, Digital Marketing has been constantly changing, being ahead and capturing the fluctuations, digital marketing trends are the key factor to help companies and home Marketers achieve success in marketing strategies for brands and brands The amount of information shared is extremely large and extremely rich and diverse Therefore, the number of people using social networks is increasing and increasing, especially teenagers and students aged 16 to 24 The number of social network users in Vietnam is increasing Increasing rapidly, about 17% of adults regularly exchange online with people who are not familiar with and this ratio increases inversely with age The emergence of social networks with new features, rich and diverse information sources has brought the public many interesting experiences that facilitate people to communicate but also a place to advertise , buy and sell, trade, make friends, find, and build relationships In this era of development and integration, it is hard to deny that the creativity, dynamism, ability to adapt to new things of Millenials is unlimited Millenials dare to live, dare to dream, dare to turn their ideas into reality and especially always desire to express and prove themselves Because of that, Millenials is very easy to respond to community calls and create new trends, especially in the field of fashion At this age, Millenials began to have a special interest in fashion With the continuous development of this industry, fashion is not only to beautify Millenials themselves but it is also a way for this group of customers to express their style, personality, aesthetic as well as the difference So how does Millenials perceive fashion, what factors influence Millenials' consumption behavior and how does Millenials make shopping decisions in the fashion industry? Through the topic "MILLENIAL CONSUMERS RESPONSES AND ENGAGEMENT TO SOCIAL MEDIA ADVERTISING OF LOCAL FASHION INDUSTRY IN HCMC", the research paper will answer these questions 1.2 OBJECTIVES AND RESEARCH QUESTIONS Researching about the way millenials consumer in HCMC response and engage to social media advertising of local fashion industry in HCMC Being able to answer the following question is the biggest purpose of this thesis as follows: - Is there any correlation between the factors of social media advertising and customer behaviour? - What type of social media platform does millenial consumer prefer to responsing and engaging to the advertising in fashion industry? - How millennials consumers evaluate and perceive social media advertising of the fashion industry? 1.3 SCOPE OF RESEARCH Primary data and secondary data were collected to use in the research First, primary data has been defined as ‘the information obtained first hand by the researcher on the variables of interest for the specific purpose of the study’ (Sekaran & Bougie, 2010) Collecting primary data helps bring valuable information close to the truth (Burn & Bush, 2010; Walliman, 2010), though that takes quite a bit of time The more accurate the information, the more time and cost it can take In the study, data was compiled from the questionnaire survey and information gathered from the responses of 300 participants Data has helped solve the research questions mentioned in the article An additional source of information to compile is the articles, magazines, reports and books This is a source of information collected and disseminated to help validate the research information in the article as well as aggregated data from the questionnaire survey This source of information helps the author draw up the strengths and weaknesses of previous studies, help the article avoid shortcomings and find new points that no one has mentioned before, from which the research question will be addressed The study was further clarified with the results of the primary data analysis Primary data and secondary data were collected to use in the research The time for conducting the study is from October 2019 to December 2019 The research subjects are millennial consumers responses and engagement to social media advertising of local fashion industry The research scope is organized in the area of HCMC The number of people who participated in the survey was 300 people who are in millennial generation Method of research is using both observation and customer survey methods 1.4 SIGNIFICANCE OF RESEARCH Firstly, analyzing this topic contributes to manufacturing businesses and fashion businesses to gain a good understanding of customers, particularly here are the factors that influence consumer behavior and the millenials’ decision-making process of buying Thereby the research contributes creating the basis for positioning and promoting the brand, planning marketing strategies in millenials fashion market effectively On that basis, increase the competitiveness, attract and satisfy maximum benefits of millenials customers In addition, the study of this topic helps us on the basis of mastering the theory also applies lessons to practice Through this author, I understand more about the buying behavior of millenials for fashion industry as well as an overview of this market segment 1.5 RESEARCH STRUCTURE The study comprises chapters that present the appropriate problems Chapter 1: Introduction of the study, which includes the problem statement as well as reasons for carrying out this research IRR1 Irritation (Cronbach's IRR2 Feel bothered to receive ads via social media 755 784 Content is often annoying 767 Alpha = 0.859) IRR3 INT1 The ads through MXH bring discomfort 685 Get advertising information quickly Interactivity (Cronbach's Alpha = 0.881) INT4 INT5 884 INT7 INT8 Purchasing (Cronbach's Alpha = 0.837) 669 Likes ads through social media PI1 864 771 PI2 PI3 855 867 580 Know people are interested in 874 buying and using products / services 738 Know which products / services are suitable for your fish characteristics 857 multiply 669 Use ads on social media to buy in 635 807 social network first 634 Opinions shared on social media can 709 864 Consider the product advertised on stimulate buying intent 0 Likes to be interested, to share about the future 0 Facilitates two-way communication products / services in use 860 662 INT6 Intention Help make buying and accessing because of its interactivity 0 Get information regularly products easier 843 703 INT3 775 474 INT2 0 805 784 The richer the content of advertising PI4 PI5 on social media, the higher the intention to purchase 719 Effective advertising can influence buying intention 781 520 841 Table 9: The reliability coefficient of the scales in the research model The results of the model's conformity test show: - Coefficient 0.88 shows the model in accordance with the data - The observed variables are correlated with each other on the overall scope This shows that the EFA analysis method is suitable The EFA analysis method extracted four groups of factors with the total variance extracted as 60.27%, suggesting that the four extracted factors explain the variance of 60.27% of the data The analysis results are displayed in the "Factor analysis results" table Variables Get information regularly Help to buy and access products easier Likes advertising via social networks because of Coefficient 0.732 0.735 0.76 interactivity 0.671 Facilitate two-way communication Like being interested, sharing about products / services being used Know what products and services people are interested in buying and using Know which products / services are appropriate for your individual characteristics Provide more information than other advertising channels 0.746 0.75 0.528 0.622 Advertising via social networks is entertaining Social advertising is more interesting than traditional advertising The content of social media ads is very fun Feeling bothered when receiving ads via social networks Content is often annoying Social media ads are annoying 0.532 0.825 0.745 0.897 0.884 0.85 Social networks should be used for advertising 0.648 Indicates the brand is being searched The choice to accept or cancel advertisements at any 0.521 time is important Get advertising information quickly 0.819 0.628 Table 10: Results of factor analysis The four groups of factors extracted after performing the EFA discovery factor analysis method include: - Factor F1 consists of observed variables (INT2, INT3, INT4, INT5, INT6, INT7, INT8), closely related to each other, named social - interaction (INT); - Factor F2 consists of observed variables (INF1, ENT2, ENT3, ENT4), closely correlated with each other, named entertainment (ENT); - F3 consists of observed variables (IRR1, IRR2, IRR3), closely correlated with each other, named the disturbance (IRR); - F4 factor consists of observed variables (INF4, CRE3, CRE5, INT1), closely correlated with each other, named permission (PERM); These groups of factors will be included in the multiple linear regression analysis along with the control variables (age, gen, education level, inc) and the dependent variable is the consumer's intention to procure (PI) In particular, the dependent variable PI is the shopping intention of consumers is measured by observed variables and calculated from factor analysis Regression analysis results are presented in the Table "Results of linear regression analysis multiple with dependent variable PI" Independent variables Constant Sex Age (18-24) Age (25-49) Education (high school) Education (University / College) Finance (