The effects of functional value, hedonic value and social value on customer participation a study of fanpages in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Le Ngoc Tuyen THE EFFECTS OF FUNCTIONAL VALUE, HEDONIC VALUE AND SOCIAL VALUE ON CUSTOMER PARTICIPATION: A STUDY OF FANPAGES IN VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – 2016 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Le Ngoc Tuyen THE EFFECTS OF FUNCTIONAL VALUE, HEDONIC VALUE AND SOCIAL VALUE ON CUSTOMER PARTICIPATION: A STUDY OF FANPAGES IN VIETNAM ID: 22140063 MASTER OF BUSINESS (Honours) SUPERVISOR: Assoc Prof Nguyen Thi Mai Trang Ho Chi Minh City – 2016 ACKNOWLEDGEMENT I would like to express my deep gratitude to my supervisor, Assoc Prof Nguyen Thi Mai Trang for her patient guidance, valuable comments and helpful advice of this research work I would also like to thank my friends in MBUS for their encouragement and assistance throughout the process of this research My grateful thanks are also extended to my colleagues for their help in collecting data Finally, I wish to thank my parents for their support and encouragement throughout my research TABLE OF CONTENTS ACKNOWLEDGEMENT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES Abstract 1 Introduction 2 Theoretical background and hypotheses 2.1 Customer participation 2.2 Functional value 11 2.3 Hedonic value 12 2.4 Social value 13 2.5 Life satisfaction 14 2.6 Personality traits 15 Methodology 19 3.1 Procedure and sample 19 3.2 Measurement 20 Data analysis 23 4.1 Descriptive Analysis 23 4.2 Cronbach’s Alpha, EFA, CFA and SEM 24 4.3 Hypotheses testing 28 4.4 Results of moderating effect 29 Discussion 30 5.1 Implications for theory and research 32 5.2 Implications for managers 32 5.3 Limitations and directions for future research 34 References 36 Supported information 44 LIST OF TABLES Table 1: Measurement scale 22 Table 2: Cronbach’s Alpha coefficients .25 Table 3: Pattern Matrix 26 Table 4: Unstandardized structural paths .29 Table 5: Findings of qualitative research .44 Table 6: The SEM results of variant and partial invariant model – Extraversion 45 Table 7: The difference between fitness indices of variant model and partial invariant model in term of extraversion .45 Table 8: The SEM results of variant and partial invariant model – Agreeableness46 Table 9: The difference between fitness indices of variant model and partial invariant model in term of Agreeableness 46 Table 10: The SEM results of variant and partial invariant model –Conscientiousness 47 Table 11: The difference between fitness indices of variant model and partial invariant model in term of Conscientiousness .47 Table 12: The SEM results of variant and partial invariant model – Neuroticism 48 Table 13: The difference between fitness indices of variant model and partial invariant model in term of Neuroticism .48 Table 14: The SEM results of variant and partial invariant model – Openness to experience 49 Table 15: The difference between fitness indices of variant model and partial invariant model in term of Openness to Experience 49 LIST OF FIGURES Figure 1: Conceptual model 11 Figure 2: CFA for Customer participation 27 Figure 3: Structural model 28 Abstract This study examines the effects of functional value, hedonic value and social value on customer participation in fanpages in developing country like Vietnam Besides, it checks the effect of customer participation in fanpage on life satisfaction An empirical test with the sample of 231 customers was analyzed by means of structural equation modeling The results show that both functional value and social value has a positive effect on customer participation in fanpage In five traits of personality, just extraversion and conscientiousness have the moderating effect on the relationship between functional value, hedonic value, social value and customer participation Finally, the participation of customer on fanpage has positive effect on life satisfaction In general, this study suggests some important guidelines for marketing managers for improve their fanpage to keep the existing customers and attract more potential customers Key words Functional value, hedonic value, social value, personality traits, customer participation, life satisfaction, fanpage, Vietnam Introduction In recent years, social media has dramatically changed the ways consumers communicate with each other and how they collect and exchange all information about the service and product (Hennig-Thurau et al., 2010) Social media is defined as “a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of User Generated Content” (Kaplan & Haenlein, 2010, p.61) It makes easier for people to search information, share ideas, communicate and interact about all the issues around the world Social media also helps the company be able to reach a large of the potential customer without geographical limitation just with a little cost, improve service better by receiving and answering feedback from customers instantly, increase brand awareness and produce a new product fit to the customer’s demand Consequently, social media has played a significant role in building the relationship between the customers and the firm Among social media platforms, Facebook is the most successful one with 1.19 billion mobile monthly active users in December 2014 (Facebook Annual Report, 2014) With the population over 90 million, Vietnam has around 49 million people using Internet, equivalent to 52% of the total population (Internet Live Stat, 2016) Vietnam ranks the thirteenth in hundreds of countries which have the most Internet users all over the world Facebook has 30 million monthly active users in Vietnam, with 27 million accessing the social network on their mobile devices, according to statistics obtained by Tuoi Tre News (2015) Each Vietnamese user spends an average of two hours and 30 minutes on Facebook every day, mostly connecting with friends and visiting fanpage of brands and shops Fanpage are public profiles that let artists, public figures, businesses, brands, organizations, and nonprofits create a presence on Facebook and connect with the Facebook community Most of big enterprises in Vietnam also have fanpage such as: Samsung Mobile Vietnam, Vinamilk, Lazada, Coca-Cola, etc to connect with their customers Customer participation has been considered as an important topic in a board range of journal and business research over the past 40 years (Mustak, Jaakkola & Halinen, 2013) Dabholkar (1990) defined customer participation as “the degree to which the customer is involved in producing and delivering the service” (p 484) Customer participation in this study is consistent with the concept of value “cocreation” in service-dominant logic (Vargo & Lusch, 2004; Lusch &Vargo, 2006) Service-Dominant logic considers customer is always a co-creator (Vargo & Lusch, 2004) In addition, Prahalad and Ramaswamy (2004) showed that customers are no longer “passive audience” but “active” co-producers In the past, companies decided which products and services produced because they believed that these products and services were valued to customers; customers had little or no role Nevertheless, in customer-centric view, customers have been more active, and they are considered as a partner in developing new product (Sawhney, Verona & Prandelli, 2005) Hence, nowadays many companies try to encourage customers participate in activities through social media platform in order to understand more about the customers’ demand and get more contribution for new product and service development processes Motivations driving consumers to take part in the virtual community attracted more attention from many researchers (Dholakia, Bagozzi & Lisa, 2004; Wang & Fesenmaier, 2004a, 2004b; Madupu, 2006; Raacke & Bonds-Raacke, 2008; Foster, Francescussi & West, 2010; Kang, 2011; Jahn & Kunz, 2012, de Vries & Carlson, 2014) Wang and Fesenmaier (2004a) divided these factors into four categories: functional, social, psychological, and hedonic Based on the classical concepts Uses and Gratifications theory, Jahn and Kunz (2012) proposed a framework with five factors (functional value, hedonic value, social interaction value, brand interaction value, self-concept value) motivated customer engagement on fanpage of Facebook Almost earlier studies about participation in virtual community have been undertaken into advanced countries With our knowledge, there are a little research have been done in developing countries such as Vietnam Personality traits also influence to the use of Facebook In virtual community, many researchers show that there was the relationship between the personality traits and customer participation (Kraut, Kiesler, Boneva, Cummings & La, 2002; Acar & Polonsky, 2007; Ross et al., 2009; Wilson, Fornasier & White, 2010; Seidman, 2013) Acar and Polonsky (2007) stated that personality factors such as extraversion, self- esteem, opinion seeking and opinion leadership have direct and indirect impacts on time spent using online social media networks Ross et al (2009) indicated that personality variables (extraversion, neuroticism, openness to experience, agreeableness and conscientiousness) were associated with some aspects of Facebook use From these reasons, the purpose of this study is to examine factors affecting to customer participation in social media Besides, we want to test personality traits whether they moderates the relationship between functional value, hedonic value, Wilson, K., Fornasier, S., & White, K.M (2010) Psychological predictors of young adults' use of social networking sites Cyberpsychology, Behavior, and Social Networking, 13(2), 173-177 Wulf, K D., & Odekerken‐Schröder, G (2001) A critical review of theories underlying relationship marketing in the context of explaining consumer relationships Journal for the Theory of Social Behaviour, 31(1), 73-101 Supported information Table Findings of qualitative research The respondents Original measurement scales Comments Final measurement scales Functional value Truong Quoc Khanh Officer - 28 years old Nguyen Hong Mai Officer - 27 years old The content of the fanpage X is helpful for me The content of the fanpage X is useful for me The interviewees suggested adding the phrase "in searching information about its products/services" to help the readers understand easily The content of the fanpage X is helpful for me in searching information about its products/services The content of the fanpage X is useful for me in searching information about its products/services Customer participation Tran Lan Thanh Officer 26 years old Nguyen Thi Thanh Truc - Officer - 24 years old Nguyen Hong Mai Officer - 27 years old Nguyen Thi Thanh Thao - Officer - 24 years old Do Thanh Uyen Officer - 26 years old I take an active part in the fanpage X The interviewee said that the meaning is not clear, they suggested add some acts of the users on fanpage such as: Like, share, comments,… I like, comment, share,…actively in the fanpage X I frequently provide useful information to other members The interview suggested adding the phrase " in the fanpage X" to help the readers understand easily I frequently provide useful information to other members in the fanpage X I my best to participate in activities offered on the fanpage X The interviewee said that the meaning is not clear, they suggested add some activities in the fanpage such as: mini games, photo sharing, or events, ….offered on the fanpage X I my best to participate in activities such as: mini games, photo sharing, events,… offered on the fanpage X Table 6: The SEM results of variant and partial invariant model – Extraversion df χ2 χ /df p GFI TLI CFI RMSEA Variant model High Extraversion 596.241 288 2.070 0.796 0.872 0.892 0.068 Low Extraversion 596.241 288 2.070 0.796 0.872 0.892 0.068 Partial in invariant model High Extraversion 608.904 292 2.085 0.791 0.870 0.889 0.069 Low Extraversion 608.904 292 2.085 0.791 0.870 0.889 0.069 Table 7: The difference between fitness indices of variant model and partial invariant model in term of extraversion χ2 Partial invariant model 608.904 Variant model 596.241 χ p-value 12.663 0.013 Table 8: The SEM results of variant and partial invariant model – Agreeableness df χ2 χ /df p GFI TLI CFI RMSEA Variant model High Agreeableness 571.423 288 1.984 0.802 0.885 0.904 0.066 Low Agreeableness 571.423 288 1.984 0.802 0.885 0.904 0.066 High Agreeableness 574.064 292 1.966 0.801 0.888 0.904 0.065 Low Agreeableness 574.064 292 1.966 0.801 0.888 0.904 0.065 Partial in invariant model Table 9: The difference between fitness indices of variant model and partial invariant model in term of Agreeableness χ2 Partial invariant model 574.064 Variant model 571.423 χ p-value 2.641 0.620 Table 10: The SEM results of variant and partial invariant model – Conscientiousness df χ2 χ /df p GFI TLI CFI RMSEA Variant model High 590.375 Conscientiousness Low 590.375 Conscientiousness Partial in invariant model High Conscientiousness Low Conscientiousness 288 2.050 0.792 0.881 0.900 0.068 288 2.050 0.792 0.881 0.900 0.068 600.461 292 2.056 0.788 0.881 0.898 0.068 600.461 292 2.056 0.788 0.881 0.898 0.068 Table 11: The difference between fitness indices of variant model and partial invariant model in term of Conscientiousness χ2 Partial invariant model 600.461 Variant model 590.375 χ p-value 10.086 0.039 Table 12: The SEM results of variant and partial invariant model – Neuroticism df χ2 χ /df p GFI TLI CFI RMSEA Variant model High Neuroticism 555.843 288 1.930 0.805 0.894 0.911 0.064 Low Neuroticism 555.843 288 1.930 0.805 0.894 0.911 0.064 High Neuroticism 559.448 292 1.916 0.805 0.896 0.911 0.063 Low Neuroticism 559.448 292 1.916 0.805 0.896 0.911 0.063 Partial in invariant model Table 13: The difference between fitness indices of variant model and partial invariant model in term of Neuroticism χ2 Partial invariant model 559.448 Variant model 555.843 χ p-value 3.605 0.462 Table 14: The SEM results of variant and partial invariant model - Openness to experience χ2 df χ /df p GFI TLI CFI RMSEA Variant model High Openness to experience 543.718 288 1.888 0.813 0.897 0.914 0.062 Low Openness to experience 543.718 288 1.888 0.813 0.897 0.914 0.062 High Openness to experience 546.441 292 1.871 0.813 0.899 0.914 0.062 Low Openness to experience 546.441 292 1.871 0.813 0.899 0.914 0.062 Partial in invariant model Table 15: The difference between fitness indices of variant model and partial invariant model in term of Openness to experience χ2 Partial invariant model 546.441 Variant model 543.718 χ p-value 2.723 0.605 50 Questionnaire (English Version) Dear Sir/ Madam, My name is Le Ngoc Tuyen, a student at ISB- University of Economics Ho Chi Minh City I am conducting a research about The effects of functional value, hedonic value and social value on customer participation: A study of fanpages in Vietnam I am very appreciated if you spend your time to share your thinking and assessment on the following issues in this questionnaire Kindly be noted that there is no right or wrong answer All responses are valuable to my research Thank you very much for your support Part A Screening Question Do you have a Facebook account? Are you a member of one fanpage? (Cont.) Please choose the fanpage you access most frequently :  a Nhaccuatui.com b Samsung Mobile Vietnam  c Foody.vn d Lazada  e Chợ Tốt f Adidas  g Yame shop h Cocacola  i KFC j Tiki Notice: This fanpage will be called X and used for evaluation purpose in Part B of this questionnaire 57 Part B Customer participation Please indicate the extent to which you agree or disagree with each of the following statements by circling the appropriate scale: 1: Strongly Disagree, 2: Disagree, 3: Slightly Disagree, 4: Uncertain, 5: Slightly Agree , 6: Agree, 7: Strongly Agree No Items Strongly Agree Strongly Disagree The content of the fanpage X is helpful for me in searching information about its products/services The content of the fanpage X is useful for me in searching information about its products/services 7 The content of the fanpage X is functional for me The content of the fanpage X is practical 1 2 3 4 5 6 7 The content of the fanpage X is fun The content of the fanpage X is exciting The content of the fanpage X is pleasant The content of the fanpage X is entertaining 1 1 2 2 3 3 4 4 5 5 6 6 7 7 I can meet people like me on the fanpage X 10 I can meet new people like me on the fanpage X 11 I can find out about people like me on the fanpage X 12 I can interact with people like me on the Fanpage X 1 1 2 2 3 3 4 4 5 5 6 6 7 7 13 In most ways my life is close to my ideal 14 The conditions of my life are excellent 15 I am satisfied with my life 16 So far I have gotten the important things I want in life 17 If I could live my life over, I would change almost nothing 1 1 2 2 3 3 4 4 5 5 6 6 7 7 Please indicate the extent to which you agree or disagree with each of the following statements by circling the appropriate scale: 1: Strongly Disagree, 2: Disagree, 3: Neither, 4: Agree , 5: Strongly Agree 14 15 16 17 I like, comment, share,…actively in the fanpage X I frequently provide useful information to other members in the fanpage X In general, I post messages and responses on the fanpage X with great enthusiasm and frequency I my best to participate in activities such as: mini games, photo sharing, events,… offered on the fanpage X Strongly Disagree Strongly agree 5 5 Please indicate the extent to which you agree or disagree with each of the following statements by circling the appropriate scale: 1: Strongly Disagree, 2: Disagree, 3: Slightly Disagree, 4: Uncertain, 5: Slightly Agree , 6: Agree, 7: Strongly Agree How well the following statements describe your personality? I see myself as Strongly Disagree Strongly Agree 18 … Outgoing, enthusiastic 19 … Critical, quarrelsome 20 … Dependable, self-disciplined 21 … Anxious, easily upset 22 … Open to new experiences, complex 23 … Reserved, quiet 24 … Sympathetic, warm 25 … Disorganized, careless 26 … Calm, emotionally stable 27 … Conventional, uncreative 28 … Chatty, talkative 29 … Kind, friendly to others 30 … Punctuality, systematic 31 … Messy, inaccurate 32 … Nervous, tense 33 … Creative, lively imagination Part C Demographic Information What is your gender?  Male  Female How old are you?  18-25  26-35  36-50  Over 50 What is your occupation?  Business  Office Staff  Student  Housewife  Others What is your average monthly income (million VND)?  Under  5-10  15-15  15-20  Over 20 How many hours you visit fanpage in a day?  Less than half an hour a day  Between half and hour a day  Between and hours a day  Between and hours a day  More than hours a day Thank you! Questionnaire (Vietnamese Version) Những ảnh hưởng giá trị chức năng, giá trị tiêu khiển, giá trị xã hội tính cách với tham gia người tiêu dùng: Nghiên cứu trường hợp fanpage Việt Nam Kính chào Quý Anh/Chị, Tôi tên Lê Ngọc Tuyền, học viên Cao học Viện Đào Tạo Quốc Tế, Trường ĐH Kinh Tế TP.HCM Tôi thực đề tài “Những ảnh hưởng giá trị chức năng, giá trị tiêu khiển, giá trị xã hội với tham gia người tiêu dùng: Nghiên cứu trường hợp fanpage Việt Nam” Kính mong Q Anh/chị vui lịng dành thời gian để trả lời câu hỏi cách đánh dấu vào thích hợp Trong khảo sát khơng có quan điểm hay sai mà có câu trả lời phù hợp với thân Quý Anh/chị Người thực xin cam kết đảm bảo tính riêng tư Quý Anh/chị tham gia vào nghiên cứu Tất quan điểm Quý Anh/chị có giá trị cho nghiên cứu tơi Rất mong cộng tác chân thành Quý Anh/chị Trân trọng cảm ơn hợp tác Anh/Chị CÂU HỎI A Câu hỏi gạn lọc: Anh/chị có tài khoản Facebook khơng? tiếp tuc) ảm ơn) Anh/chị có thành viên trang fanpage Facebook không? tiế ảm ơn) Anh/chị thường vào fanpage thường xuyên :  a Nhaccuatui.com b Samsung Mobile Vietnam  c Foody.vn d Lazada  e Chợ Tốt f Adidas  g Yame shop h Cocacola  i KFC j Tiki Xin lưu ý: Fanpage mà anh/chị vừa chọn gọi X dùng cho mục đích đánh giá câu hỏi phần B B Sự tham gia khách hàng Anh/Chị vui lòng cho biết mức độ đồng ý phát biểu sau cách đánh dấu vào số thích hợp theo quy ước sau: Hồn tồn khơng đồng ý STT Không đồng ý Hơi không đồng ý Trung hịa Hơi đồng ý Đồng ý Hồn tồn đồng ý Phát biểu Mức độ đồng ý Nội dung trang fanpage X giúp ích cho tơi việc tìm kiếm thơng tin sản phẩm/ dịch vụ Nội dung trang fanpage X hữu ích với tơi việc tìm kiếm thơng tin sản phẩm/ dịch vụ Nội dung trang fanpage X thiết thực với Nội dung trang fanpage X có giá trị thực tiễn Nội dung trang fanpage X vui nhộn Nội dung trang fanpage X thú vị 7 Nội dung trang fanpage X mang lại hài lòng Nội dung trang fanpage X mang tính giải trí Tơi gặp người giống tơi trang fanpage X 10 Tơi gặp gỡ bạn bè trang fanpage X 11 Tơi tìm người bạn giống tơi trang fanpage X Tơi tương tác với người khác giống trang fanpage X 7 13 Về hầu hết mặt, đời gắn liền với lý tưởng sống 14 Điều kiện sống tuyệt vời 15 Tơi hài lịng với sống tơi Từ trước đến nhận thứ quan trọng tơi muốn sống Nếu tơi trải nghiệm sống lần nữa, không thay đổi hầu hết thứ 7 12 16 17 7 Anh/Chị vui lòng cho biết mức độ đồng ý phát biểu sau cách đánh dấu vào số thích hợp theo quy ước sau: Hồn tồn khơng đồng ý Khơng đồng ý Trung hịa Đồng ý Hồn tồn đồng ý Mức độ đồng ý 18 19 20 21 Tơi tích cực thích (like), chia sẻ, bình luận,…trên trang fanpage X Tôi thường xuyên cung cấp thông tin hữu ích cho thành viên khác trang fanpage X Nói chung, tơi thường nhiệt tình đăng tải thơng tin câu trả lời trang fanpage X Tôi cố gắng để tham gia vào chương trình trị chơi, chia sẻ ảnh hay kiện tổ chức trang fanpage X 5 5 Đặc điểm tính cách người: Anh/Chị vui lịng cho biết mức độ đồng ý nhận định mơ tả Anh/Chị sau cách đánh dấu vào số thích hợp (1: Hồn tồn khơng đồng ý, 7: Hồn tồn đồng ý) Tơi thấy người Mức độ đồng ý 22 hòa đồng, thân thiện 23 .hơi khó tính, hay gây gỗ 24 đáng tin cậy, có tính kỷ luật cao 25 .hay lo lắng dễ buồn phiền, chán nản 26 .luôn sẵn sàng cho trải nghiệm mới, phức tạp 27 .kín đáo, trầm lặng 28 .đồng cảm, nồng hậu 29 .có thể bất cẩn, cẩu thả 30 .điềm tĩnh, ổn định cảm xúc 31 .bình thường, khơng thích sáng tạo 32 .thích tán gẫu, nói nhiều 33 .tử tế thân thiện với người 34 có hệ thống 35 .hơi bừa bộn khơng xác 36 .dễ dàng bị lo lắng, căng thẳng 37 .sáng tạo, giàu trí tưởng tượng C Thông tin cá nhân Vui lịng cho biết giới tính Anh/Chị? Nữ  Nam Vui lòng cho biết độ tuổi Anh/Chị?  Từ 18 đến 25 tuổi Từ 36 đến 50 tuổi  Từ 26 đến 35 tuổi Trên 50 tuổi Vui lòng cho biết nghề nghiệp Anh/Chị?  Doanh nhân Nhân viên văn phòng  Sinh viên, học sinh Người nội trợ  Nghề nghiệp khác Vui lịng cho biết thu nhập bình qn hàng tháng Anh/Chị?  Dưới triệu đồng Từ – 10 triệu đồng  Từ 10 – 15 triệu đồng Từ 15 – 20 triệu đồng  Trên 20 triệu đồng Vui lòng cho biết lượng thời gian truy cập fanpage Anh/Chị ngày?  Dưới 30 phút Từ 30 phút đến  Từ đến Từ đến  Hơn Hết Xin chân thành cảm ơn Anh/Chị hỗ trợ! ... value, hedonic value, social interaction value, brand interaction value, self-concept value motivated customer engagement on fanpage of Facebook They found that both hedonic value and functional value. .. of functional value, hedonic value and social value on customer participation: A study of fanpages in Vietnam with a total of 231 Vietnamese respondents living in Ho Chi Minh City The data was... proposed a framework with five factors (functional value, hedonic value, social interaction value, brand interaction value, self-concept value) motivated customer engagement on fanpage of Facebook Almost