The impact of social networking integration service of online retailer on consummers puchase intent the case of hochiminh city, vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Lê Thoại Bảo Trân THE IMPACT OF SOCIAL NETWORKING INTEGRATION SERVICE OF ONLINE RETAILER ON CONSUMERS’ PURCHASE INTENT: THE FACEBOOK CASE OF HOCHIMINH CITY, VIETNAM MASTER OF BUSINESS (Honours) UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Lê Thoại Bảo Trân THE IMPACT OF SOCIAL NETWORKING INTEGRATION SERVICE OF ONLINE RETAILER ON CONSUMERS’ PURCHASE INTENT: THE CASE OF HOCHIMINH CITY, VIETNAM ID: 29110021 MASTER OF BUSINESS (Honours) SUPERVISOR: DR PHẠM PHÚ QUỐC ACKNOWLEDGMENT To complete this Master of Business Administration associated between Western Sydney University and University of Economics Ho Chi Minh city with the thesis “The impact of social networking integration service of online retailer on consumers’ purchase intent – the case of Hochiminh city, Viet Nam”, beside exerting myself during last time, firstly, I want to thank deeply to my family that always encouraged me throughout studying process and finishing this thesis Secondly, I also want to give my gratefulness to Professors and lecturers from University of Economics Ho Chi Minh city They provided to us useful knowledge and also highly valuable experiences within two years Especially, I really want to express heartfelt thanks to Dr Pham Phu Quoc guided me enthusiastically to accomplish the thesis ABSTRACT The growth of social networks integration service around the world has created a new place of interaction and communication among people Web-based social communities, weblogs, online social networks provide features, allow consumers to share their personal experiences, knowledge, opinion with one other by writing reviews, rating reviews, and chatting among trusting members This study empirically explores how the social networking integration service of online retailers (Facebook shops) impact on consumers’ purchase intent Formal quantitative research through survey questionnaire with a sample of 219 consumers who are living and working in Hochiminh city, the result reveal that Website social presence, trust and involvement have positive impact on consumers’ purchase intent Implications of these finding for e-retailers and future research are outlined Key words: Website social presence, trust, product attitude, involvement, purchase intent TABLE OF CONTENTS ACKNOWLEDGEMENT ABSTRACT TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Research gap 1.3 Research objectives .3 1.4 Research methodology and research scope 1.5 Research contribution 1.6 Research structure CHAPTER 2: LITERATURE REVIEW 2.1 Online shopping and social networking services (Facebook case) .6 2.2 Consumers’ purchase intent 2.2.1 Consumer behavior 2.2.2 Step of a intention process 10 2.2.3 The impact of online social networks on consumers’ purchase intent 11 2.3 Website social presence 12 2.4 Trust 13 2.5 Involvement 14 2.6 Product attitude 15 2.7 The conceptual model and hypotheses of the research 16 CHAPTER 3: RESEARCH METHODOLOGY 18 3.1 Research process 18 3.2 Sample design .19 3.2.1 Population .20 3.2.2Sample size 20 3.3 Data collection procedure 21 3.4 Measurement scale 22 3.5 Questionnaire design 24 3.6 Data analysis method 26 CHAPTER 4: DATA ANALYSIS AND RESULTS 27 4.1 Descriptive analysis – demographics and variables .27 4.2 Reliability Analysis 28 4.3 Exploratory Factor Analysis (EFA) 30 4.4 Regression Analysis 33 4.4.1 Testing assumption of multiple regressions 33 4.4.2 Result of multiple regression analysis .35 4.5 Hypotheses testing result and discussion of the findings 37 CHAPTER 5: CONCLUSION, IMPLICATIONS AND LIMITATIONS 42 5.1 Conclusion 42 5.2 Managerial Implications 43 5.3 Limitations and future research 45 REFERENCES .46 APPENDICES 52 LIST OF FIGURES Figure 2.1: A theoretical model 17 Figure 3.1: Research Process 18 Figure E1: Histogram of Purchase intent .61 Figure E2: Normal Plot of Purchase intent 61 Figure E3: Scatter Plot of Purchase intent 62 LIST OF TABLES Table 3.1 Source of data collection 21 Table 3.2 Source of measurement scale .22 Table 4.1 Respondents’ characteristics 28 Table 4.2 Reliability test result .29 Table 4.3 Rotated component matrix (time 1) 30 Table 4.4 KMO and Bartlett’s test result 31 Table 4.5 Rotated component matrix (time 2) 32 Table 4.6 Correlations matrix .35 Table 4.7 Model Summary of multiple regression analysis 36 Table 4.8 ANOVA of multiple regression analysis 36 Table 4.9 Coefficients of multiple regression analysis 37 Table 4.10 Summary of hypotheses testing results 40 Table D1: Total Variance Explained of factor analysis 60 Table D2: Model Summary of multiple regression analysis 62 10 CHAPTER 1: INTRODUCTION 1.1 Research background Internet is a social place where created new forum for customers Virtual communities, blog, and online social networking sites provide a platform to influence consumers‟ purchase intents (OTX research, 2008) For more information, Hitwise (2011) indicates that the market share of different online social networking websites has been grown Online retailers have recently taken care about potential objective of understanding and leveraging social influence in customers‟ purchase intent to improve customer relationship management and increase sales Therefore, nowadays, we can find that lot of online retailers have begun to connect their websites with social networking sites, such as online shops in Facebook or Facebook shops Facebook.com is one of the most popular social networking sites in the world and in Vietnam also There are 19.6 million Facebook users in Vietnam by August 2013, accounting for 21.42 percent of the population and 71.4 percent of Internet users By July 2013, Vietnam is the country ranked 16th in the world for percentage growth of Facebookers These impressive numbers in the results of the study Socialbakers & SocialTimes.Me (2013) is announced at the 18th workshop Panorama ICT Vietnam - VIO place in Hochiminh city Socialbakers study (2013) also points out the growing trend on Facebook in Vietnam Hence, Facebook is suitable place for retailers; they can open online shops to business efficiently There are many applications and in Vietnam website allows retailers to build an online shop quickly When using the shops on Facebook, they absolutely not need to worry about their shops will be destroyed when the user overload or fault of the network service providers However, Facebook does not support creating a direct online shop, which Goldsmith, R.E (2006) Electronic world-of-mouth Encyclopedia of e-commerce, egovernment and mobile commerce, Idea Group Publishing Hershey, PA, 408-412 Greenwald, A., & Leavitt, C (1984) Audience involvement in advertising: Four levels Journal of Consumers Research, 11, 581-592 Haley, R I., & Case, P B (1979) Testing thirteen attitude scales for agreement and brand discrimination Journal of Marketing, 43(4), 20–32 Hair, J.F., Blach, W.C., Babin, B.J., & 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website meaning However, they There is a sense of sociability suggested that the objective of these questions should in the website change Therefore, “the website “should change to There is a sense of human “Facebook shops” to make warmth in the website this scale clearer for this There is a sense of sensitivity study There is a sense of human in the website I feel that this online vendor is honest I trust this website Final measurement scales There is a sense of human contact in Facebook shops There is a sense of sociability in the Facebook shops There is a sense of human warmth in Facebook shops There is a sense of sensitivity in the Facebook shops Trust All respondents stated that they understood the scale meaning and keep these original questions I feel that this online vendor is honest I trust this website I feel that this online vendor I feel that this online vendor cares about customers cares about customers I feel that this online vendor I feel that this online vendor would provide me with good would provide me with good service service For the products show in the Facebook shops that I have ever browsed, I like its Product attitude The interviewee suggested adding the word “products” to help the readers easily understand these sentences For the products show in the Facebook shops that I have ever browsed, I like their products brand For the products show in the Facebook shops that I have ever browsed, I think the For the products show in the Facebook that I have ever browsed, I think the products are of value brand is of value For the products show in the Facebook shops that I have ever browsed, I think the For the products show in the Facebook that I have ever browsed, I think the products are good quality brand is of good quality I am interested in reading Facebook shops about information, diaries, photos and consumers reports When reading information in Facebook shops, I feel the information is appealing When reading information in Facebook shops, I feel the products are relevant to my life When reading information in Facebook shops, I feel the products mean a lot to me I like spend time in browsing Facebook shops I‟d like to purchase credible Involvement All respondents stated that they understood the scale meaning and keep these original questions Purchase intent All respondents stated that they understood the scale meaning and keep these original questions I am interested in reading Facebook shops about information, diaries, photos and consumers reports When reading information in Facebook shops, I feel the information is appealing When reading information in Facebook shops, I feel the products are relevant to my life When reading information in Facebook shops, I feel the products mean a lot to me I like spend time in browsing Facebook shops I‟d like to purchase credible and worthwhile products and worthwhile products posted in Facebook shops posted in Facebook shops I‟d like to recommend other I‟d like to recommend other people for the credible people for the credible products posted in Facebook products posted in Facebook shops shops Next time to purchase similar Next time to purchase similar products, I‟d like to take the products, I‟d like to take the same credible Facebook store same credible Facebook store into account into account Appendis B: Questionnaire (English version) Dear Sirs/Madam, I am a graduate student of International School of Business (ISB) I am currently researching the thesis topic "The impact of social networking integration service of retail shops (shops in Facebook) on consumers‟ purchase intent, case of Ho Chi Minh City , Vietnam " Please spend some minutes to answer this questionnaire All comments of you will be valid for this study I would commit all of your information will be kept confidential and only serve for the purposes of this study In the course of doing survey if you have any questions, please contact this email: ltbtran05@yahoo.com Sincere thanks to the enthusiastic support of you * Required PART A: GENERAL INFORMATION May you know or shop any online retail store in Facebook Note: - If your answer of question is "No", you can stop this survey now Sincere thanks to the enthusiastic support of you - If your answer of question is "Yes," you kindly continue the survey by answering questions and below Part B, and C How many times you visit online retail store in Facebook in a week on average? to times to times More than times Difference PART B: MAIN CONTENT Please indicate your degree of agreement with the following statements by marking (X) in the corresponding point scale: Number 1: strongly disagree Number 2: Disagree Number 3: Neutral Number 4: agree Number 5: Strongly agree Your degree of agreement with the following statement There is a sense of human contact in Facebook shops There is a sense of sociability in the Facebook shops There is a sense of human warmth in Facebook shops There is a sense of sensitivity in the Facebook shops I feel that this online vendor is honest I trust the this website I feel that this online vendor cares about customers I feel that this online vendor would provide me with good service For the products show in the Facebook shops that I have ever browsed, I like its products 10 For the products show in the Facebook shops that I have ever browsed, I think the products are of value 11 For the products show in the Facebook shops that I have ever browsed, I think the products are good quality 12 I am interested in reading Facebook shops about information, diaries, photos and consumers reports 13 When reading information in Facebook shops, I feel the information is appealing 14 When reading information in Facebook shops, I feel the products are relevant to my life 15 When reading information in Facebook shops, I feel the products mean a lot to me 16 I like spend time in browsing Facebook shops 17 I‟d like to purchase credible and worthwhile products posted in Facebook shops 18 I‟d like to recommend other people for the credible products posted in Facebook shops 19 Next time to purchase similar products, I‟d like to take the same credible Facebook store into account PHẦN C: PERSONAL INFORMATION Please give some yourself personal information 1)Your age is between: * 18 - 25 26 – 35 36 – 45 Above 45 2)Your gender is * 3)Your education is * High School degree 4)Your salary (VND) * From 5.000.000 to 10.000.000 to 15.000.000 More than VND 15.000.000 Thank you for your co-operation in completing this questionnaire! APPENDIX C: QUESTIONNAIRE (Vietnamese version) Kính chào anh/chị, Tơi tên Lê Thoại Bảo Trân Tôi học viên cao học Viện đào tạo quốc tế ISB- trường Đại học Kinh tế TP HCM Hiện nghiên cứu đề tài “Tác động việc tích hợp tính mạng xã hội (Facebook) cửa hàng bán lẻ trực tuyến lên định mua hàng người tiêu dùng, trường hợp khảo sát thành phố Hồ Chí Minh, Việt Nam ” Rất mong anh/chị dành chút thời gian trả lời Phiếu khảo sát Tất ý kiến anh/chị có giá trị nghiên cứu Tôi xin cam kết thông tin anh/chị bảo mật dùng với mục đích phục vụ nghiên cứu Trong q trình thực khảo sát anh/chị có thắc mắc, vui lòng liên hệ địa email ltbtran05@yahoo.com Xin chân thành cám ơn hỗ trợ nhiết tình anh/chị *Bắt buộc PHẦN A: THƠNG TIN TỒNG QT Anh/chị có biết mua hàng cửa hàng bán lẻ trực tuyến mạng xã hội Facebook không? Không Chú ý:- Nếu câu trả lời Anh/Chị cho câu “Khơng ”, Anh/ Chị dừng việc trả lời phiếu khảo sát Chân thành cảm ơn hỗ trợ nhiệt tình Anh/ Chị - Nếu câu trả lời Anh/ Chị cho câu “ Có”, Anh/ Chị vui lịng tiếp tục khảo sát cách trả lời câu câu hỏi Phần B C bên Trung bình tuần anh/chị ghé thăm cửa hàng bán lẻ trực tuyến lần? đến lần Nhiều lần đến lần Khác PHẦN B: NỘI DUNG CHÍNH Xin cho biết mức độ đồng ý Anh/ Chị phát biểu sau cách đánh dấu ( X ) vào tương ứng, với: Ơ số 1: Hồn tồn khơng đồng ý Ơ số 2: Khơng đồng ý Ơ số 3: Khơng có ý kiến Ơ số 4: đồng ý Ô số 5: Hoàn toàn đồng ý Mức độ đồng ý với phát biểu sau 1.Anh/chị có cảm giác tiếp xúc hay liên lạc người trang bán hàng Facebook Anh/chị thấy có diện giao tiếp xã hội trang bán hàng Facebook 3.Anh/chị thấy có thể tình cảm người trang bán hàng Facebook Anh/chị có cảm giác nhạy cảm trang bán hàng Facebook 5.Tôi cảm thấy nhà cung cấp trực tuyến trung thực Tôi tin website bán hàng trực tuyến Tôi cảm thấy nhà cung cấp trực tuyến quan tâm đến khách hàng Tôi cảm thấy nhà cung cấp trực tuyến cung cấp cho dịch vụ tốt Đối với sản phẩm hiển thị cửa hàng Facebook mà duyệt, tơi thích sản phẩm họ 10 Đối với sản phẩm hiển thị cửa hàng Facebook mà duyệt, cho sản phẩm có giá trị 11 Đối với sản phẩm hiển thị cửa hàng Facebook mà duyệt, cho sản phẩm có chất lượng tốt 12 Tơi quan tâm đến việc đọc cửa hàng Facebook thông tin, nhật ký, hình ảnh báo cáo người tiêu dùng 13 Khi đọc thông tin cửa hàng Facebook, cảm thấy thông tin hấp dẫn 14 Khi đọc thông tin cửa hàng Facebook, tơi cảm thấy sản phẩm có liên quan đến sống 15 Khi đọc thông tin cửa hàng Facebook, cảm thấy cửa hảng Facebook có ý nghĩa với tơi 16 Tơi thích dành thời gian duyệt trang mua sắm trực tuyến Facebook 17 Tôi muốn mua sản phẩm đáng tin cậy có giá trị đăng trang bán hàng trực tuyến Facebook 18 Tôi muốn giới thiệu người khác sản phẩm đáng tin cậy đăng trang bán hàng Facebook 19.Lần sau mua sản phẩm tương tự, tơi muốn có cửa hàng trực tuyến đáng tin cậy tương tự tài khoản PHẦN C : THƠNG TIN CÁ NHÂN Anh/chị vui lịng cho biết số thông tin cá nhân sau: 1) Độ tuổi anh/chị nằm khoảng: * 18 - 25 26 – 35 36 – 45 Above 45 2) Giới tính * Nam Nữ 3) Trình độ * ọc phổ thơng Cử nhân Cao học 4) Thu nhập hàng tháng (VND) * Dưới 5.000.000 Từ 5.000.000 đến 10.000.000 Từ 10,000,000 đến 15.000.000 Từ 10.000.000 đến 15.000.000 CẢM ƠN ANH CHỊ ÐÃ THAM GIA KHẢO SÁT - Appendix D: Total variance explained in Exploratory Factor Analysis Table D1 Total variance explained of factor analysis Total Variance Explained Extraction Sums of Squared Loadings Initial Eigenvalues Rotation Sums of Squared Loadings % of Varian Cumulative % of Cumulative ce % Total Variance % % of Cumulative Component Total Variance % Total 5.754 2.126 31.965 11.811 31.965 43.776 5.754 31.965 2.126 11.811 31.965 2.660 43.776 2.517 14.779 13.984 14.779 28.763 1.758 9.765 53.541 1.758 9.765 53.541 2.381 13.231 41.994 1.313 7.294 60.835 1.313 7.294 60.835 2.246 12.475 54.469 1.063 5.908 66.743 1.063 5.908 66.743 2.209 12.274 66.743 Extraction Method: Principal Component Analysis Table D2: Model Summary of multiple regression analysis Model Summary Model R 638 R Square a 407 Adjusted R Square 396 Std Error of the Estimate 1.81447 b DurbinWatson 2.219 Appendix E: Histogram, Normal Regression & Scatter plot of Dependent Variable : Purchase intent Figure E1: Histogram of Purchase intent Figure E2: Normal plot of purchase intent Figure E3: Scatter plot of purchase intent ... University of Economics Ho Chi Minh city with the thesis ? ?The impact of social networking integration service of online retailer on consumers’ purchase intent – the case of Hochiminh city, Viet...UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Lê Thoại Bảo Trân THE IMPACT OF SOCIAL NETWORKING INTEGRATION SERVICE OF ONLINE RETAILER ON CONSUMERS’... towards online shops in Facebook In addition, this study expands the general understanding of the perceptions of social networking integration service, understands one of the fundamental interests of