An investigation of customer value and patronage in retailing vending machine sector in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGO TRONG TRUNG AN INVESTIGATION OF CUSTOMER VALUE AND PATRONAGE IN RETAILING VENDING MACHINE SECTOR IN VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGO TRONG TRUNG AN INVESTIGATION OF CUSTOMER VALUE AND PATRONAGE IN RETAILING VENDING MACHINE SECTOR IN VIETNAM ID: 22120143 MASTER OF BUSINESS (Honours) SUPERVISOR: LE NHAT HANH, PhD Ho Chi Minh City – Year 2014 ACKNOWLEDGEMENT I would like to thank my supervisor, Dr Hanh Nguyen for her encouragement and guidance throughout the process of conducting this thesis I would also like to thank other members of my advisor committee, Dr Tho Nguyen, Dr Nguyen, Dr Quan, Dr Phong, and Dr Thao for helping me to understand the process and theoretical foundations of the research Many others also deserve my gratitude Among them, Mr Doanh, Mr Tuan, Ms Kim Yen, Master Mai Thien Tam, Ms Nguyet Anh, Mr Huy, Master Nguyen Thi Nguyet and Master Nguyen Huy Khai, helped me to obtain final questionnaire being suitable in the context of Vietnam My colleagues, friends and all of respondents supported to conduct the questionnaire at the best reliability Finally, I would like to express my gratitude to my family for their love and support, and they are always there when I need them Without their emotional and financial support, this study would not be completed i ABSTRACT Although Vending machine was predicted would become one of the most important non-store marketing channels, many retailers using vending machine have a difficult time in developing business in Vietnam If vending machine-retailers want to attract more and more shoppers, they need to know what evaluative criteria consumers use when selecting a vending machine-retailer The past researches demonstrated that Customer value and Retail patronage could enhance retail performance This study investigated the relationship between Customer value and Retailing vending machine patronage, and examines the relationships of antecedents including Customization, Functionality and Perceived Risk with Customer Value By utilizing literature review, a research model was proposed to identify the relationships above Additionally, a convenient sample of 247 respondents in Ho Chi Minh City was surveyed to test the theoretical model Structure Equation Modeling (SEM) was used to analyzed the data The final result indicated that Customization and Functionality are positively related to Customer value, but perceived risk was not supported Customer value is positively related to retailing vending machine patronage ii TABLE OF CONTENTS ACKNOWLEDGEMENT i ABSTRACT ii TABLE OF CONTENTS iii LIST OF TABLES v LIST OF FIGURES vi CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Research Problem 1.3 Research Objective 1.4 Significance of the Study 1.5 Research methodology and scope 1.6 The structure of the study CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES 2.1 Vending machine 2.2 Customer value 2.3 Customization and Functionality 2.4 Perceived risk 2.5 Customer value and retail patronage 10 2.6 Research model 11 CHAPTER 3: METHODOLOGY 13 3.1 Research process 13 3.1.1 Qualitative research 13 3.1.2 Quantitative research 13 3.2 Research design 17 3.3 Measurements of constructs 18 3.4 Data analysis method 21 3.4.1 Descriptive Statistics 21 3.4.1.1 Test of Skewness 22 3.4.1.2 Test of Kurtosis 22 3.4.2 Confirmatory factors Analysis (CFA) 22 3.4.2.1 Reliability testing 22 3.4.2.2 Convergent validity 22 3.4.2.3 Discriminant validity 23 3.4.3 Structure Equation Modeling (SEM) 23 3.4.4 Bootstrap 23 CHAPTER 4: DATA ANALYSIS AND RESULTS 25 4.1 Sample characteristic 25 4.2 Descriptive statistics 26 4.3 Confirmatory Factor Analysis (CFA) 28 4.4 Structural Equation Modeling (SEM) 38 4.5 Bootstrap analysis 40 4.6 Explanation for finding result of hypotheses 41 CHAPTER 5: CONCLUSION, IMPLICATIONS AND LIMITATION 46 5.1 Conclusion 46 5.2 Implications 47 5.3 Limitation 48 REFERENCES 50 APPENDIX 58 LIST OF TABLES Table 3.1: The result of collected data 15 Table 3.2: Measurement scales 19 Table 4.1: Sample Characteristic 26 Table 4.2: The result of Skewness and Kurtosis testing 27 Table 4.3: Correlations of components 32 Table 4.4: The result of correlation test 32 Table 4.5: Summary of measurement validation 34 Table 4.6: Correlation of Constructs 36 Table 4.7: Chi-square difference test 37 Table 4.8: Hypotheses Unstandardized Structural Paths 40 Table 4.9: Summary of hypotheses testing result 40 Table 4.10: The result of bootstrap analysis 41 LIST OF FIGURES Figure 1: Conceptual Model 12 Figure 3: CFA of first-order constructs 29 Figure 4: CFA of second-order construct 31 Figure 5: CFA final 33 Figure 6: Customer value versus retailing vending machine patronage 37 Figure 7: SEM model 39 Figure 8: Structural results (Standardized estimates) 44 CHAPTER 1: INTRODUCTION More than three decades ago, Quelch and Takeuchi 1.1 Research background (1981) predicted that vending machine would become one of the most important non-store marketing channels Reality, their prediction has surely materialized Most of countries all over the world used vending machine as retail business There are more than seven millions vending machines in operation in U.S (Leaner 2002), Japan has become a vending-machinecountry and Vietnam also has the first vending machines in 2000s Vending machine offers consumer a variety of products including food, snack, beverages, newspaper, cosmetic, CDs, cigarettes and so on Lee (2013) argued that as more people has joined workforce during the past several decades and their busy social life increasingly places more value on time and convenience, vending machine had become an indispensable part of many people daily’s lives In Vietnam, vending machine was deployed in early 2000s when the Vietnam’s Government issued the coins and experts believe that they will be potential market in the future (Kieu Giang, 2004) However, vending machine sector developed slowly during past time There were many investors failed in applying Vending machine for retail business The first main reason can explain for this is technology Most of vending machine at that time integrated used-coin technology, but Vietnam people not have habit keeping the coin available or not like to use coin in transaction This leads used-coin vending machine to be inconvenient for customer to reach and purchase by vending machine; secondly, retailers using vending machines cannot find the suitable locations to install vending machine, especially two biggest cities in Vietnam: Ho Chi Minh City and Hanoi City for sidewalk and public areas are quite narrow As a result, vending machine cannot operate at the best; finally, most of the companies invested vending machine sector at that time, were small and not enough ability to invest new modern vending machines, while the companies having enough 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Mô tả Dịch vụ Máy bán hàng tự động (Vending Machine) Máy bán hàng tự động loại máy bán lẻ sản phẩm dịch vụ cho khách hàng, khách hàng cho tiền mặt thẻ tín dụng vào phận nhận tiền lắp đặt sẵn máy Máy bán hàng tự động thường sử dụng để bán loại sản phẩm như: nước ngọt, bánh snack, CD, báo, tạp chí…Tại TP.HCM nói riêng Việt Nam nói chung, Máy bán hàng tự động thường biết đến là: máy bán xu phòng game, dịch vụ ghế mát-xa tự động dùng tiền mặt, máy bán nước hãng Pepsi Cocacola Phần I: Thông tin sơ Xin Anh/chị vui lòng cho biết số thơng tin cá nhân sau Giới tính Nam Nữ Vui lòng cho biết tuổi Anh/Chị 10-17 18-25 26-35 36-45 46-60 Trên 60 Trình độ Dưới phổ thơng trung học Phổ thông trung học, trung cấp nghề Cử nhân cao đẳng, đại học Cao học Nghề nghiệp Anh/Chị Nhân viên Văn Phịng Học sinh/ Sinh Viên Cơng nhân Nhà Quản Lý/ Doanh Nhân Nghỉ hưu Khác Thu nhập bình quân tháng Anh/Chị Dưới triệu/tháng Từ triệu đến 10 triệu/tháng Từ 10 triệu đến 15 triệu/ tháng Từ 15 triệu/tháng trở lên Anh/chị sử dụng máy bán hàng tự động (máy bán nước Coca/Pepsi, máy massage tự động máy bán xu tự động phòng game) lần chưa? Chưa Đã sử dụng Trong phần II Anh/Chị vui lòng cho biết mức độ đồng ý, hài lịng thích thú phát biểu theo thang điểm 5, từ thấp đến cao Rất khơng đồng ý/hài lịng/thích thú; Khơng đồng ý/hài lịng/thích thú; Khơng ý kiến/ bình thường; Đồng ý/hài lịng/thích thú; Rất đồng ý/hài lịng/thích thú STT 10 11 12 13 PHẦN II: BẢNG CÂU HỎI KHẢO SÁT BẮT BUỘC CÂU HỎI THANG ĐO ĐÁNH GIÁ Rất ko Tơi nhận đầy đủ dịch vụ với máy bán hàng Rất đồng ý đồng tự động thời gian ngắn ý Rất ko Quá trình phục vụ máy bán hàng tự động rõ Rất đồng ý đồng ràng ý Rất ko Sử dụng máy bán hàng tự động đòi hỏi công sức Rất đồng ý đồng ý Rất ko Tơi nhận đầy đủ dịch vụ với máy bán hàng đồng Rất đồng ý tự động mà khơng có trở ngại ý Rất ko Mọi tính dịch vụ máy bán hàng tự động Rất đồng ý đồng không bị lỗi ý Rất ko Máy bán hàng tự động hiểu nhu cầu cụ thể Rất đồng ý đồng ý Rất ko Máy bán hàng tự động hữu ích tơi Rất đồng ý đồng ý Rất ko Máy bán hàng tự động có tính tính cá Rất đồng ý đồng nhân hóa cho tơi ý Rất ko Dịch vụ máy bán hàng tự động ổn định Rất đồng ý đồng ý Rất ko Dịch vụ máy bán hàng tự động làm tốt Rất đồng ý đồng ý Rất ko Dịch vụ máy bán hàng tự động có tiêu chuẩn chất Rất đồng ý đồng lượng chấp nhận ý Rất ko Dịch vụ máy bán hàng tự động thực cách ổn Rất đồng ý đồng định ý Rất ko Dịch vụ máy bán hàng tự động có chất lượng Rất đồng ý đồng ý 60 14 Dịch vụ máy bán hàng tự động trì lâu dài 15 Dịch vụ máy bán hàng tự động định giá hợp lý 16 Dịch vụ máy bán hàng tự động mang đến nhiều lợi ích so với chi phí phải bỏ 17 Dịch vụ máy bán hàng tự động có dịch vụ tốt tương ứng với giá 18 Dịch vụ máy bán hàng tự động tiết kiệm 19 Dịch vụ máy bán hàng tự động điều mà tơi thích thú sử dụng 20 Dịch vụ máy bán hàng tự động làm tơi muốn sử dụng 21 Dịch vụ máy bán hàng tự động điều mà cảm thấy thư giản sử dụng 22 Sử dụng máy bán hàng tự động cho hài lòng 23 Sử dụng máy bán hàng tự động giúp cảm thấy khỏe khoắn 24 25 Trước sử dụng máy bán hàng tự động, tơi tìm nhiều thông tin công dụng mẫu mã khác máy bán hàng tự động Trước sử dụng máy bán hàng tự động, học nhiều thông tin công dụng mẫu mã khác máy bán hàng tự động 26 Tôi mong muốn tìm thơng tin lạ máy bán hàng tự động 27 Tơi thích tìm kiếm điều khác biệt 28 Sử dụng máy bán hàng tự động cải thiện cách tơi nhìn nhận 29 Sử dụng máy bán hàng tự động giúp tơi cảm thấy chấp nhận 30 Sử dụng máy bán hàng tự động giúp tạo ấn tượng tốt với người khác 72 Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý 31 32 33 34 35 36 37 38 39 Sử dụng máy bán hàng tự động mang đến cho người sử dụng chấp nhận xã hội Tôi sử dụng máy bán hàng tự động thay cửa hàng thơng thường diều kiện môi trường tệ Tôi sử dụng máy bán hàng tự động thay cửa hàng thơng thường có trợ cấp cho việc sử dụng máy bán hàng tự động Tôi sử dụng máy bán hàng tự động thay cửa hàng thơng thường có giảm giá cho việc sử dụng máy bán hàng tự động chương trình khuyến Tơi sử dụng máy bán hàng tự động thay cửa hàng thông thường máy bán hàng tự động ln có sẳn để phục vụ Tơi mua sản phẩm/dịch vụ với giá cao chút tơi mua chúng thơng qua máy bán hàng tự động Mua sắm/sử dụng dịch vụ thông qua máy bán hàng tự động trải nghiệm thú vị Tôi quan tâm máy bán hàng tự động có nhiều sản phẩm/dịch vụ bán thơng qua Bời quen thuộc máy bán hàng tự động nên tơi thích mua sắm/ sử dụng dịch vụ thông qua máy bán hàng tự động kênh bán lẻ khác 40 Tôi mua sắm/sử dụng dịch vụ thông qua máy bán hàng tự động hàng hóa đa dạng 41 Khi sử dụng máy bán hàng tự động thơng tin cá nhân tơi bị người khác sử dụng 42 Việc sử dụng máy bán hàng tự động ảnh hưởng quyền riêng tư cá nhân tơi chi tiết cá nhân bị sử dụng phi pháp 43 Thỉnh thoảng, bị căng thẳng không cần thiết sử dụng máy bán hàng tự động 44 Thỉnh thoảng, cảm thấy lo lắng sử dụng máy bán hàng tự động 45 Tơi quan tâm việc lãng phí q nhiều thời gian sử dụng máy bán hàng tự động 46 Tôi quan tâm việc phải tốn nhiều thời gian cho thao tác liên quan đến việc sử dụng máy bán hàng tự động Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Không Không Không Không Không Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất ko đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Luôn Luôn Luôn Luôn Luôn Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý Rất đồng ý 47 Sử dụng máy bán hàng tự động làm xấu hình ảnh tơi mắt người khác 48 Sử dụng máy bán hàng tự động khiến cho số người có quan điểm mà tơi đánh giá cao nghĩ không hành động APPENDIX B Rất ko đồng ý Rất ko đồng ý Rất đồng ý Rất đồng ý Questionnaire I am Ngo Trong Trung, a student of master course of ISB - University of Economics Ho Chi Minh City I am undertaking a research to explore the factors affect customer value to retailing vending machine patronage I kindly request you to complete the following short questionnaire regarding your attitude about consumer ethnocentrism, country image and purchase intention on domestic products Your response is extremely important to my research; your participation in this survey is entirely voluntary Your personal information and your response will be kept confidentially and not be disclosed without your permission If you have any concerns or questions about this study, please feel free to contact me with email address: ngotrongtrung84@gmail.com or phone number: 0909 621 013 Description of vending machine Vending machine is a machine which dispenses items such as snacks, beverages, alcohol, cigarettes, consumer products, after the customer insert the currency or credit card into the machine such as Vending soft-drink machine, Vending massage chair, and Vending coin exchange machine Part I: Individual information Gender Male Female Age 10-17 18-25 26-35 36-45 46-60 Over than 60 Education Under high school High school College/university Master Ocupation Office staff Student Woker Manager/ Businessmen Retirement Other Income Less than mil/month Form mil/month to less than 10 mil/Month From 10 mil/month to less than 15 mil/month More than 15mil/month Have you ever used vending machine? (.e.g Vending Soft-drink machine, vending massage chair or vending coin exchange machine) No Yes In Part II, please let me know to what extent you disagree or agree with the statement Strongly disagree; Disagree; Neutral; Agree; Strongly agree PART II: QUESTIONNAIRE No Statements I can get my service done with the vending machine Strongly in a short time disagree SCALE Strongly agree The service process of the vending machine is clear Strongly disagree Strongly agree Using the vending machine requires little effort Strongly disagree Strongly agree I can get my service done smoothly with the vending machine Strongly disagree Strongly agree Each service item/function of the vending machine is error-free Strongly disagree Strongly agree The vending machine understands my specific needs Strongly disagree Strongly agree The vending machine has my best interests at heart Strongly disagree Strongly agree The vending machine has features that are personalized for me Strongly disagree Strongly agree The vending machine service has consistent quality Strongly disagree Strongly agree 10 The vending machine service is well made Strongly disagree Strongly agree 11 The vending machine service has an acceptable standard of quality Strongly disagree Strongly agree 12 The vending machine service would perform consistently Strongly disagree Strongly agree 13 The vending machine service has poor workmanship (R) Strongly disagree Strongly agree 14 The vending machine service would last a long time Strongly disagree Strongly agree 15 The vending machine service is reasonably priced Strongly disagree Strongly agree 16 The vending machine service offers value for money Strongly disagree Strongly agree 17 The vending machine service is good product for the price Strongly disagree Strongly agree 18 The vending machine service would be economical Strongly disagree Strongly agree 19 Vending machine service is one that I would enjoy Strongly disagree Strongly agree 20 Vending machine service make me want to use it Strongly disagree Strongly agree 21 Vending machine service is one that I would feel relaxed about using it Strongly disagree Strongly agree 22 Using Vending machine service would give me pleasure Strongly disagree Strongly agree 23 Using vending machine would make me feel good Strongly disagree Strongly agree Strongly disagree Strongly agree Strongly disagree Strongly agree 24 25 Before using the vending machine, I would obtain substantial information about the different makes and models of vending machine I would acquire a great deal of information about the different makes and models before using vending machine 26 I am willing to seek out novel information Strongly disagree Strongly agree 27 I like to search for the new and different Strongly disagree Strongly agree 28 Vending machine service would improve the way I am perceived Strongly disagree Strongly agree 29 Using vending machine would help me to feel acceptable Strongly disagree Strongly agree 30 Vending machine service would help me make a good impression on other people Strongly disagree Strongly agree 31 Using Vending machine service would give its users the social approval Strongly disagree Strongly agree I would use vending machine instead of conventional stores under worsening environmental conditions I would use vending machine instead of conventional stores when there is a subsidy for using vending machine I would use vending machine instead of conventional stores when there are discount rates for using vending machine or promotional activity I would use vending machine instead of conventional stores when vending machine is available Strongly disagree Strongly agree Strongly disagree Strongly agree Strongly disagree Strongly agree Strongly disagree Strongly agree Never Always Never Always 32 33 34 35 36 37 I will pay slightly more for products if I can buy them through vending machine (never/always) Shopping by vending machine is an enjoyable experience I will increase my interest in vending machine when more goods/services are made available through them Because I am more familiar with vending machine, I prefer shopping by vending machine than other retail channels I shop by vending machine even when the selection/variety of goods is poor By using Vending Machine, it is highly likely that my personal information will be used by other people 42 38 Never Always Never Always Never Always Strongly disagree Strongly agree Using the vending machine endanger my privacy because of wrongful use of my personal details Strongly disagree Strongly agree 43 Sometimes, I experience unnecessary stress while using the vending machine Strongly disagree Strongly agree 44 Sometime, when I am using machine I feel anxious Strongly disagree Strongly agree I am concerned about wasting too much time using the vending machine I am concerned about having to waste time on tasks related to using the vending machine Using vending machine can worsen the image other people have of me Strongly disagree Strongly agree Strongly disagree Strongly agree Strongly disagree Strongly agree Using vending machine makes some people whose opinion I value think that I am not acting correctly Strongly disagree Strongly agree 39 40 41 45 46 47 48 ... purchasing prior There are three kinds of vending machine which respondents can use in Ho Chi Minh are Vending massage chair, vending soft drink machine, and vending exchange coin machine Thus,... Customer value on Patronage behavior Thus, in order to fulfill this gap, an investigation of Customer Value and Patronage behavior in retailing vending machine sector is examined, and in an effort... of vending machine on Customer Value The impact of Functionality of vending machine on Customer Value The impact of Perceived Risk of using vending machine on Customer Value The impact of Customer