RESEARCHBACKGROUND
The household goods industry in Vietnam presents significant growth potential, accounting for 9% of total private consumption, with a market valued at $13 billion However, globalization has enabled many foreign companies to enter the Vietnamese market, raising concerns among local appliance manufacturers about the dominance of ASEAN-imported products, particularly in traditional markets and supermarkets To remain competitive against imported goods, local companies must enhance their capabilities, highlighting the urgent need for research into consumer behavior in the household goods sector, as there has been limited research conducted in Vietnam.
PROBLEMSTATEMENTANDRESEARCHOBJECTIVE
B u r e a u (VietnamFather land F r o n t , 2 0 0 9)i n t h e e x p e c t a t i o n t h a t t h e w i l l i n g n e s s t o b u y o f V i e t n a m e s e consumersw i l l i n c r e as e i n d o m es t i c p r o d u c t s a n d
The campaign to reduce foreign products has led to significant success for Vietnamese household companies in attracting local consumers According to the Ministry of Industry and Trade of the Socialist Republic of Vietnam (2013), domestically manufactured household plastic products have outperformed imports from China, Indonesia, and Thailand Notably, Vietnamese household plastic goods now hold a remarkable 90% share of the domestic market, featuring prominent brands such as Dai Dong Tien, Duy Tan, Long Thanh, and Song Long.
Atthesimplestlevel,tooperatepurchasebehavior,consumerswillestimateperceivedv aluebasedonperceivedqualityandperceivedpriceof hisownforsuchgoods(Alhab eeb,2002) AccordingtoDodds,M o n r o e , a n d G r e w a l ( 1 9 9 1 ) , p e r c e i v e d p r i c e a n d p e r c e i v e d q u a l i t y h o l d a k e y effectonbuyer’sproductevaluation,andleadtowillin gnesstobuythatproduct.Therefore,thebalancebetweenqualityandpriceisagoodpredi ctorofapreferenceforpurchasingdomesticproducts.However,insomecases,consumers preferlocalproductswhosequalityandpriceisnotgoodasthatofimportedproducts,andShim pandSharma(1987)n a m e d t h i s s o c i a l p s y c h o l o g i c a l f a c t o r i s e t h n o c e n t r i s m
The Vietnamese government's campaign "Vietnamese people use Vietnamese goods" is rooted in the concept of ethnocentrism, which is the self-awareness of valuing one's own community above others In marketing, this is specifically referred to as Consumer Ethnocentrism Numerous studies conducted in developed countries have demonstrated the significant impact of Consumer Ethnocentrism on the willingness to purchase domestic products (Shimp & Sharma, 1987; Watson & Wright, 2000; Josiassen, Assaf & Karpen, 2011; Chryssochoidis, Krystallis & Perreas).
Inaddition,b e c a u s e o f t h e d o m e s t i c b i a s o f c o n s u m e r e t h n o c e n t r i s m , t h e c u s t o m e r percep tion aboutpriceandqualityoflocalproductalsoseemt obeaffected.Theresultfr om Hau,QuynhandAnh(2011)foundtheeffectofconsumerethnoc entrismoncustomer’sperceivedpricewhenbuyingproductmadeinVietnam.TongandL i(2013)al so foundtheeffectofconsumerethnocentrismon customer'sperceivedq ualitywhendi d astudyinChina,adevelopingcountrylikeVietnam.
Althoughc o n s u m e r e t h n o c e n t r i s m s e e m s t o h e l p l o c a l h o u s e h o l d c o m p a n i e s a l o t i n attractingV i e t n a me s e p e o p l e , b u t i n s o m e h o u s e h o l d p r o d u c ts t h a t r e q u i r e m o r e techniqueorhigh- costing,thatimpactdoesn’tseemtowork.Forexample,accordingtoK h a n h Chi(2015) ,electronics andrefrigerationproducts importedfromThailand accountedfor70
%marketshare.Thelocalhouseholdplasticsproductsoccupymostoft he domestic marketshare, butinhighpricesegment,theshareofthemisverysmall, mostofma rketshareisholdbyLock&Lockandotherforeigncompanies(HoangLam,2012).Thispheno menonshowsthatlocalproductscansatisfydemandforcheapcosts,buti f t h e e c o n o m y d e v e l o ps w e l l a n d p e o p l e ' s l i v i n g c o n d i t i o n s i m p r o v e , s o m e consumerswillp ossiblyshifttheiroptionsto useimported luxuryproducts.According toThanhTu(2015),reportsattheseminar"PurchasingBehaviorofVietnamesepeoplewithlocalan dforeignproductsintheeraofglobalization"heldbyNationalEconomicUniversityincollabor ationwiththeDomesticMarketDepartment-
The Ministry of Industry and Trade reports that Vietnamese consumers still prefer foreign goods despite their higher prices compared to domestic products Approximately 20% of Vietnam's population has high to very high incomes, contributing to 80% of the country's spending, yet they favor foreign brands over local options (Tran Thuy, 2015) This indicates that consumer ethnocentrism may vary based on product perception, as noted by several researchers (Sharma, Shimp).
&Shin,1995;Tho,Trang&Nigel,2008;Josiassenetal.,2011;Aziz,Bahadur,Sarwar,Faro oq&Arshad,2014)pointoutthatthedegreeofconsumerethnocentrictendenciesv ariesaccordingtodemographiccharacteristicssuchasage,gender,incomeandproductcatego ries.Andthesefactorsnotonlypredictlevelsofconsumerethnocentrism,butalsomoderatet h e i m p a c t s o f s u c h t e n d e n c i e s o n w i l l i n g n e s s t o b u y H o w e v e r , i n V i e t n a m m arket,therearelimitedresearchthatstudyaboutthosechanges.
Accordingtothereviewsabove,thisstudytriestoaddressthreeissues.First,itattemptstofin dtheimpactofconsumerethnocentrismonconsumer’sperceivedprice,onconsume r’spe rc ei ved q ua l i t y i n V ie t n a m h o u s e h o l d p r o d u c ts S e c o n d , i te x a m i n e s t h e impacto f c o n s u m e r e t h n o c e n t r i s m , c o n s u m e r ’ s p e r c e i v e d p r i c e a n d c o n s u m e r ’ s perceivedqualityonthewillingnesstobuylocalhouseholdproductofVietn am.Third,ittriest o e x t e n d t h e l i t e r a t u r e o n c o n s u m e r e t h n o c e n t r i s m b y i n v e s t i g a t i n g n o t o n l y t h e influenceofdemographicvariablesandproductcategoriesonpred ictingconsumerethnocentrism,b u t a l s o w h e t h e r t h e s e d e m o g r a p h i c v a r i a b l e s a n d p r o d u c t c a t e g o r i e s moderatet h e i m p a c t s o f c o n s u m e r e t h n o c e n t r i s m o n c o n s u m e r ’ s p e r c e i v e d p r i c e , o n consumer’sp e r c e i v e d q u a l i t y , a n d o n w i l l i n g n e s s t o b u y d o m e s t i c a l l y h o u s e h o l d products.
BENIFITOF RESEARCH
This research aims to enhance the literature by providing empirical evidence from the Vietnamese market regarding the effects of consumer ethnocentrism, perceived price, and perceived quality on the willingness to purchase domestic household products It is the first study to explore the mixed effects of these factors on consumer behavior in Vietnam The findings indicate that consumer ethnocentrism positively influences the willingness to buy local household products, even in developing countries Additionally, the study suggests that the impacts of consumer ethnocentrism on perceived price, perceived quality, and willingness to buy may differ based on product category and demographic characteristics Ultimately, the results will assist Vietnamese household companies in developing targeted marketing strategies to effectively reach and engage various consumer segments.
RESEARCHMETHODANDSTRUCTURE
ThisresearchisconductedinHoChiMinhCity(HCMC)– thebiggestcitylocatedintheSouthofVietnam.Currently,HCMCistheeconomic,tech nologyandfinancialhubofVietnam,w h i c h a t t r a c t s m i g r a n t s f r o m o t h e r p r o v i n c e s A s a r e s u l t o f t h i s , t h e c i t y ’ s officialpopulationwas 8, 146,300 in2015(G eneral StatisticsOffice, 2015).Therefore, thisplacehasmorehouseholdproductuserstha notherplacesorareas.
THEORETICALBACKGROUND
Willingnessto buy
Willingnessisdefinedasthequalityorstateofbeingpreparedtodosomething(Oxforddi ctionaries,n.d).Therefore,willingnesstobuymeansthestatethataconsumerwillbeingpr eparedtodoapurchasebehaviorforagivenquantityofgoodsorservices Thepossibilityt hataconsumerwilldopurchasebehavioronaparticularproductresultingfromtheinteraction ofhisorherneedforit,attitudetowardsitandperceptionsofitandofthecompanywhichpro ducesit.AccordingtoTheoryofPlannedBehavior(TPB)ofAjzen(2005), behavio rcan predict baseonpreviousintentions Baseon this theory,intentionortendencyi sthecorefactorthataffectsbehavior.Sopurchaseintentionisameasureofthewillingness tobuyaproductanditistheprobabilitythataconsumerwillbuyaproductorservice D odds etal.
(1991)andGrewal,Monroe, andKrishnan(1998)saidthatpurchaseintention isth ewillingnessofaconsumertobuyaparticularproduct.AccordingtoHau,Minh,andTu an(2013),willingnesstobuyrepresentst h e e x t e n t t o w h i c h a c o n s u m e r h a s p o s i t i v e a t t i t u d e t o w a r d s p u r c h a s i n g a product.T h e r e f o r e , i n t h i s r e s e a r c h , t h e w i l l i n g n e s s t o b u y c o n s i s t s t h e c u s t o m e r ‘ s positiveattitudeofbuyingViet namhouseholdproducts,theintentiontobuythemandtherecommendationforthemtoanothercusto mer.
ConsumerEthnocentrism (CES)
Ethnocentrismi s a w o r d c o m p o s e d o f t w o t e r m s “ e t h n i c ” ( w h i c h m e a n s g r o u p ) a n d “centrism”(whichmeansfocused).ShimpandSharma(1987)definedethnocentrisma sa
“theuniversalproclivityforpeopletoviewtheirowngroupasthecenteroftheuniverse,toi n t e r p r e t o t h e r s o c i a l u n i t s f r o m t h e p e r s p e c t i v e o f t h e i r o w n g r o u p , a n d t o r e j e c t personsw h o a r e c u l t u r a l l y d i s s i m i l a r w h i l e b l i n d l y a c c e p t i n g t h o s e w h o a r e c u l t u r a l l y likethemselves”.Inotherwords,apersonwithahighethnocentrismoftenisprou dofhisgroup,o f t e n e n h a n c e s v a l u e , c u l t u r e a n d p e o p l e t h a t b e l o n g t o h i s g r o u p a n d t e n d t o underestimatevaluesandstandardsofothergroups(Chryssochoidisetal.,2 007).Thoetal.
( 2 0 0 8 ) s h o w e d t h a t e t h n o c e n t r i s m i s a n e v a l u a t i v e p e r s p e c t i v e , w h i c h m e a n s ethnocentricpersonwillevaluateallotherculturesbythestandardsofone’sownculture.Thet e r m c o n s u m e r e t h n o c e n t r i s m i s a d a p t e d f r o m g e n e r a l c o n c e p t o f e t h n o c e n t r i s m whichwasfirstintroducedbySumnerin1906(Shimp&Sharma,1987). Theydefinedconsumerethnocentrismasauniqueformofethnocentricinmarketing,itis
“thebeliefsheldb y c o n s u m e r s a b o u t t h e a p p r o p r i a t e n e s s , i n d e e d m o r a l i t y o f p u r c h a s i n g f o r e i g n - madeproductandtheloyaltyofconsumerstotheproductsmanufacturedintheirhome country.”Consumerethnocentrismhasadirectandnegativeimpactonconsumers'pu rchase i n t e n t i o n t o w a r d s f o r e i g n p r o d u c t s T h e s e i m p l y t h a t t h e h i g h e t h n o c e n t r i c tendenciesl e a d t o u n f a v o r a b l e a t t i t u d e t o w a r d s l o w e r p u r c h a s e i n t e n t i o n s f o r f o r e i g n products.Accordingt o S h i m p a n d S h a r m a ( 1 9 8 7 ) ,
K l e i n a n d E t t e n s o n ( 1 9 9 9 ) et hn ocent r ic consumerswillrefusetobuyforeignpro ductsbecausetodosoisdamagingtothenationaleconomy,leadtounemployment,and isunpatriotic.Evenwhenforeignproductsaresuperiorinqualityorpricetodomesticproduct
9 s,someconsumersstilldesiretopurchasedomestically.Non- ethnocentricconsumers,however,evaluateproductsbasedo n t h e i r o b j e c t i v e a t t r i b u t e s , w i t h o u t c o n s i d e r a t i o n s o f c o u n t r y o f o r i g i n o f p r o d u c t
(Shimp&Sharma,1987).Therefore,theconsequencesofconsumerethnocentrisminclud e( 1 ) a n o v e r e s t i m a t i o n o f t h e q u a l i t y a n d v a l u e o f d o m e s t i c p r o d u c t s o r under estimationofimports,
(2)amoralobligationtobuydomesticproducts,and(3)anintensep r e f e r e n c e f o r d o m e s t i c p r o d u c t s H e n c e c o n s u m e r e t h n o c e n t r i s m c a n b e consideredanantecedentt o“willingnesstobuy”domesticproductsingeneral.
Ethnocentrism varies among customers due to the influence of socioeconomic, demographic, geographic, and regional economic factors, as noted by Shimp and Sharma (1987) Sharma et al (1995) further established that product categories and consumer demographics, including gender, income, and age, significantly affect ethnocentric tendencies in Korea Additionally, Josiassen et al (2011) highlighted that consumer ethnocentrism is directly influenced by customer characteristics Therefore, it is essential to consider demographic factors when researching ethnocentrism to accurately identify the ethnocentric differences across various customer segments.
ConsumerEthnocentrismTendencyScale(CETSCALE)
The term "tendency" is preferred over "attitude" because it more accurately reflects consumer decisions in selecting the most suitable products This scale has been extensively utilized to assess consumer ethnocentrism tendencies in various studies across both developed and developing countries, as evidenced by research conducted by Balabanis & Diamantopoulos (2004), Chrysochoidis et al (2007), Josiasse et al (2011), Hau et al (2011), and Qing, Lobo & Chongguang (2012), as well as Maina, Kibera & Munyoki (2015).
Follow ShimpandSharma(1987),CETSCALEis aunidirectional measure scalewith 17variables,alotofresearchesalsoconvincedthisexpress(Kucukemiroglu,1999;Watson
PerceivedPrice
Price serves as an indicator of the financial sacrifice required to purchase a product (Dodd et al., 1991; Zeithaml, 1988) Consumers often do not accurately recall the actual price of a product; instead, they encode prices in a way that holds personal significance (Zeithaml, 1988) The literature identifies two main types of price: objective price, which refers to the actual price of a product, and perceived price, which is the individual interpretation and meaning assigned to that price (Zeithaml, 1988; Jacoby & Olson, 1977) According to Beneke and Zimmerman (2014), the perceived price is shaped by the customer’s comparison between the objective price and their reference price, which reflects their subjective perception of the product's value.
(Zeithaml1988;Jacoby&Olson1977).Inconsequence,theperceivedpriceistheevaluat ionofcustomeraboutthevaluableofbetweenwhatthey were,areorwillbesacrific edtoexchangeandwhattheywere,areorwillbereceived.Perceivedp r i c e w i l l b e d i f f e r e n t w i t h e a c h c o n s u m e r , p r o d u c t , purchases i t u a t i o n a n d time(Doddsetal.,1991).
PerceivedQuality
Quality, as defined in ISO 9000:2000, refers to the extent to which a set of inherent characteristics meets stated, implied, or obligatory needs or expectations (Hoyle, 2011) Zeithaml (1988) introduced the concept of "objective quality," which signifies measurable superiority against predetermined standards Consequently, perceived quality is described as the consumer's overall assessment of a product's excellence, influenced by their expectations and experiences with the brand (Alhabeeb, 2002) According to the Business Dictionary (2016), perceived quality reflects a consumer's opinion on a product's ability to meet their expectations, often shaped by the brand's public image and the influence of peers and opinion leaders Despite the varying definitions from scholars, perceived quality consistently denotes the consumer's judgment of a product's overall quality in relation to their expectations, encompassing both tangible and intangible attributes such as performance, features, reliability, and aesthetics Thus, perceived quality emerges as a subjective and relativistic concept.
(Alhabeeb,2002), the valueand scope of which woulddifferentdependingonthesubjectandthetypeofproduct.
HYPOTHESES
ConsumerEthnocentrismandPerceivedPrice
Aswedefinedabove,perceivedprice ofeachcustomerisdifferentbecause itdepe ndslargely on eachcustomer ‘sfeeling, perceptualrepresentation andevaluation aboutproductorservicethatheorshewanttobuy(Doddsetal.,1991).Withthesameproductwith thesameprice,acustomerwithagoodfeelinginitwillfeelitspricecheaperthantheonew hohasabadfeelinginit.Meanwhile,consumerethnocentrismaffectsstronglyonfeelingof c ustomeronproduct AccordingtoThoet al.
(2008)ethnocentric consumersarelikelytovaluehighly productsbelongingtoth eirowngroupandtode- valueproductswhichdonotbelongtotheirgroup.Consequently,wemustconsiderthe effecto f c o n s u m e r e t h n o c e n t r i s m o n customer’sp e r c e i v e d p r i c e i n t h i s r e s e a r c h T h e r e su lt f r o m H a u e t a l
ConsumerEthnocentrismandPerceivedQuality
Becausetheconsequenceofconsumerethnocentrismasweanalyzedaboveisanoveresti mationofthequality oflocal products,therefore the effectof consumer ethnocentr ismonperceivedqualityofthelocalhouseholdproductsinVietnammustbeconsidered asonehypothesisinthisstudy.Consumerethnocentrismwasfoundtoi n fl u en ce assessme ntoftheperceivedqualityofbothdomesticandforeignproductsinemergingecono miessuchasGreece(Chryssochoidisetal.,2007).TongandLi(2013)alsoconfirmth iseffectofconsumerethnocentrismwhendidastudyinChina,adevelopingcountrylikeVie tnam.So,thesecondhypothesisis:
ConsumerEthnocentrismandWillingnesstoBuy
Bymakingclearlyaboutdefinitionandconsequencesofconsumerethnocentrismabove,we caneasilyseetherelationshipbetweenconsumerethnocentrismandwillingn essto buy.AccordingtoWangandChen(2004),thereisanimpactofconsumerethnocentrismo nw i l l i n g n e s s t o b u y i n t h e c o n t e x t o f a d e v e l o p i n g c o u n t r y , n a m e l y t h e P e o p l e ’ s Republico f C h i n a T h o e t a l
( 2 0 0 8 ) f o u n d t h a t i n V i e t n a m , c o n s u m e r e t h n o c e n t r i s m playsa n i m p o r t a n t r o l e i n t h e l i k e l i h o o d o f p u r c h a s i n g l o c a l p r o d u c t s M a n y o t h e r stud iesa l s o d e m o n s t r a t e d t h a t c o n s u m e r e t h n o c e n t r i s m h a s a n e g a t i v e i m p a c t t o w illingnesstobuyforeignproducts,inotherwordithasapositiveimpactonwillingnesstobuydo mesticproduct,evenindevelopingcountries(Klein,Ettenson&Morris,1998;Balabanis
&Diamantopoulos,2004;Hauetal.,2011).Becausethisstudymainlyfocuses onlocalproduct,sowehypothesizethatthewillingnesstobuylocalproductsispositivelya f f e c t e d b y c o n s u m e r e t h n o c e n t r i s m T h e m o r e c o n s u m e r e t h n o c e n t r i s m i n customer,themorelikelytheywillincreasetheirwillingnesstobuyforVietnamp ro d u cts So,ourthirdhypothesisisdefinedasfollowing:
PerceivedPriceandWillingness toBuy
Asw e m e n t i o n e d a b o v e , t h e p e r c e i v e d p r i c e i s t h e e v a l u a t i o n o f c u s t o m e r a b o u t t h e valuableofbetweenwhattheywere,areorwillbesacrificedtoexchangeand whattheywere,areorwillbereceived.Therefore,thechangeinpricewillstronglyimpactonth isevaluation,f r o m t h a t w i l l i m p a c t o n t h e w i l l i n g n e s s t o b u y o f c o n s u m e r
(1991)alsoconfirmthisanegativerelationship.Thesestudies foundthatifthepriceg oesoverthesacrificethatconsumerwillingtoexchange,theywillcodethatproductas“expensi ve”andconsidertostopbuyingthatproductwiththatprice,orifthep r i c e g o e s b e l o w t h e s a c r i f i c e , c o n s u m e r w i l l c o d e t h a t p r o d u c t a s “ c h e a p ” a n d increasethe willingnesstobuyforit.Hence,whentheconsumersfeelthatthepriceof Vietnamhou seholdproductisintheacceptablethreshold,worthyofwhattheymusttobesacrificed,theywillhav eahighpromotiontobuythatproduct.AndthestudyfromHauetal.
(2011)alsofoundthatifaVietnamesecustomerhasahigherperceivedpriceaboutproduct, h eorshewillalsohaveahigherwillingnesstobuyforthatproduct.Therefore,thenexthypothe sisis:
PerceivedQualityandWillingnessto Buy
Perceived quality significantly influences consumers' willingness to buy, as highlighted by research from 1991, which emphasizes that a positive perception of product quality encourages purchases This correlation is particularly relevant in developing countries, where consumers often favor imported goods, especially from nations with a strong economic reputation, as noted by Qing et al (2012) To fully understand the willingness to buy household products in Vietnam, it is essential to examine the impact of perceived quality on consumer behavior.
Moderatingeffectsofproductcategoriesanddemographics
Thisstudyinvestigatesthemoderatingeffectsofproductcategory(low- priceandhigh- price)a n d d e m o g r a p h i c c h a r a c t e r i s t i c o n t h e i m p a c t s o f c o n s u m e r e t h n o c e n t r i s m o n consumer’sperceivedprice,onconsumer’sperceivedquality,and onwillingnesstobuydomesticallyh o u s e h o l d p r o d u c t s P r e v i o u s r e s e a r c h i n o t h e r c o u n t r i e s s h o w s t h a t t h e degreeofconsumerethnocentric tendencies va riesaccording todemographic characteristicssuchasage,gender,andincome, asw ellasproductcategory(Shimp& Sharma,1 9 8 7 ; A z i z e t a l , 2 0 1 4 ; S h a r m a e t a l , 1 9 9 5 ; J o s i a s s e n e t a l , 2 0 1 1 ; P e n t z ,
Terblanche& Boshoff,2014; Balabanis& Diamantopoulos, 2004).For examples,ShimpandSharma(1987)foundthatethnocentricconsumersarenotuniformforallmem bersofthec o m m u n i t y , b e c a u s e i t f o r m e d a c l o s e r e l a t i o n s h i p t o k n o w l e d g e , experiencea n d economic conditionso f e a c h i n d i v i d u a l A z i z e t a l
( 2 0 1 4 ) c o n c l u d e d t h a t m a l e co n su m er s, older,lowincomeconsumersseemtoh avehigherethnocentrictendencies.Sharmaetal.
(2011)s t a t e d t h a t t h e d e g r e e o f c o n s u m e r e t h n o c e n t r i c t e n d e n c i e s v a r i e s ac cordingt o demographic characteristicssuchasage, gender.Forexample,olderco nsumershaveatendencytobemoreethnocentric thanyoungerconsumersandeth nocentrictendencies aremoreprevalentamongfemaleconsumersthanamongmal econsumers(Josiassenetal.,2011).Pentzetal.
(2014)suggestthatconsumerswithhigherincomesseemtobelessethnocentricthanconsumers withlowerincomes.Intermsofproductcategories,BalabanisandDiamantopoulos( 2004)foundthattheimpactofethnocentrictendenciesonproductjudgmentandpurc haseintentionmayvarydependingonhowtheproductisperceived,i e , h i g h - i n v o l v e m e n t o r low-involvement.I n V i e t n a m , T h o e t a l
( 2 0 0 8 ) fo u n d theimpactsofconsumerethnocentrismonintentiontopurchaselocalproduc tsarenotdifferentintermsofproductcategories,gender,income,andeducationlevels.Howe ver,differencesexistbetweenyoungerandolderconsumers.Overall,itappearsthatproductc a t e g o r i e s a n d c o n s u m e r d e m o g r a p h i c c h a r a c t e r i s t i c s h a v e a n i m p a c t o n t h e degreeofconsumerethnocentrictendencies.Therefore,thelasthypothesisis:
H6a Theimpactof consumer ethnocentrism o nco ns umer ’s perceivedpr ice, o nconsumer’sperceivedquality,andonwillingnesstobuydomesticallyhouseholdproductsarew e a k e r f o r t h e h i g h i n v o l v e m e n t p r o d u c t c a t e g o r y t h a n f o r t h e l o w i n v o l v e m e n t productcategory.
H6b T h ei m p a c t o f c o n s u m e r e t h n o c e n t r i s m o n c o n s u m e r ’ s p e r c e i v e d p r i c e , o n consumer’sperceivedquality,andonwillingnesstobuydomesticallyhouseholdproductsarewe akerforfemaleconsumersthanmaleconsumers.
H6c T h eimpactofconsumerethnocentrismonconsumer’sperceivedprice,onco nsumer’sperceivedquality,andonwillingnesstobuydomesticallyhouseholdproductsareweakerfo ryoungconsumersthanforolderconsumer.
H6d T h ei m p a c t o f c o n s u m e r e t h n o c e n t r i s m o n c o n s u m e r ’ s p e r c e i v e d p r i c e , o n consumer’sperceivedquality,andonwillingnesstobuydomesticallyhouseholdproductsarewe akerforhigherincomeconsumersthanforlowerincomeconsumers.
H2 Consumer Ethnocentrism (CES) H3 Willingness to Buy (WB)
Demographic (gender/age/income)Product categories
RESEARCHMODEL
PROCEDUREAND SAMPLE
PilotStudy
The qualitative phase of the research utilized in-depth interviews to ensure the accurate translation and understanding of measurement scales originally in English, adapted for Vietnamese consumers This study aimed to evaluate and adjust the terminology used in the questionnaire to maintain the original meaning during translation A total of 12 consumer groups, categorized by demographics and product types, were interviewed in Ho Chi Minh City, focusing on their shopping experiences Following these interviews, slight modifications were made to the wording of the questionnaire To confirm the effectiveness of these adjustments, two additional consumers were interviewed using the revised questions to address any lingering issues with the measurement scales and their meanings.
T h e r e s u l t s h o w e d t h a t t h e i r u n d e r s t a n d i n g f o r measurementscalesw asmatchedwithwhatweexpected.Thequestionnairewasconcludedasbeingclear;consumersunderstoodthecontentandthemeaningofmeasurementscales’questions.Therefore,thesemeasurementscalesinVietnamesewerethenusedinquantitativeresearch.
MainStudy
Primary data was collected through direct handouts and online surveys using Google Forms, which were distributed to participants, including colleagues and friends purchasing domestic products Participants accessed the electronic questionnaire via a provided link and submitted their responses Additionally, handout surveys were distributed to consumers in supermarkets, traditional markets, and convenience stores, where they filled out and returned their answers to the surveyors The study utilized two distinct questionnaire forms—one focused on local household plastic products and the other on local household electric products—with each participant completing only one form Clear instructions were provided to guide respondents on how to complete the questionnaires, emphasizing that the study aimed to capture personal opinions without any right or wrong answers, thus minimizing potential response bias The main objective of the study was to assess scales and test models, with age and income as control characteristics.
(2008)foundthattheimpactsofconsumerethnocentrismonintentiontopurchaseloca lproductsisdifferent betweenyounger(age:21-30)andolder(age:31-
45)consumersinVietnam,therefore thisstudywouldalsobetargetedonlyrespond entagedfrom21to45(younger:21–30;older:31–
CPdetailinganumberofArticlesoftheLawonPITandtheamendingLaw,supplementingan umberofArticlesoftheLawonPIT.ThisDecreestatedclearlythatl a b o r s w h o h a v e d o n o t p a y p e r s o n a l i n c o m e t a x ( i n c o m e i s l o w e r t h a n V N D 9 millionpermonth) arelowincomeearners.So,thisstudyalsousedVND9millionpermonthtodivideparticip antsintolowerincomegroupandhigherincomegroup.
Total400surveys were sentto participants (200surveys about localhousehold p lastic productsand200surveysaboutlocalhouseholdelectricproducts).Among400sur veys,therewere302validresponsesover310responses.Consequently,thefinalsamp lesizewas302.
Testconvergentanddiscriminantof factorsbyusingexploratoryfactor ana lysis(E FA)
Examine the moderating effects of product categories and demographiccharacteristicsbyusingmulti- groupstructuralequationmodel(MGSEM).
DEFININGMEASUREMENTSCALES
Measurementscaleforconsumerethnocentrism
B u t a s I mentionedabove,somevariablesintheCETSCALEmustbeadjustedbaseoneconomic, cultureandcharacteristicofeachcountry.Klein,Ettenson,andKrishnan(2006)foundedthat CETSCALEcanbeusedeffectivelyinthetransitioneconomiesofChinaandRussia,andt h e y f o u n d a consistentp a t t e r n o f s u p p o r t i s f o u n d f o r t h e s i x - i t e m C E T S C A L E BecauseVietnamalsohasatransitioneconomy,likeChina,sointhisrese arch,consumerethnocentrismwasmeasuredbysixitemsbaseduponKleinetal.
Measurementscaleforperceivedpriceandperceivedquality
Customer’sperceivedprice ofVietnamhouseholdproductsmeasurestheevaluatio nofcustomera b o u t t h e s e p r o d u c t s C u s t o m e r ’ s p e r c e i v e d q u a l i t y o f V i e t n a m h o u s e h o l d p ro d u cts measurestheconsumer’sjudgmentofqualityofov erallcomponentsofproduct relativetotheexpectationofquality.Perceivedpriceandperceivedqualityweremeas ured bysixitemsborrowingfromHauetal.(2013),wereshowinAppendix1.
MeasurementscaleforWillingnessto Buy
ThescaleforwillingnesstobuylocalhouseholdproductsinVietnamadoptedalsofromHau etal.(2013).Itincludes3variables,wereshowinAppendix1.
Measurementscaleforconsumer’sgender,ageandincomelevel
DESCRIPTIVESTATISTICS
Someb a s i c s t a t i s t i c n u m b e r s o f c o l l e c t e d d a t a a r e p r e s e n t e d i n f o l l o w i n g t a b l e A l l dependentfactor(willingnesstobuy)andindependentfactors(perceivedp rice,perceivedqualityandconsumerethnocentrism)weremeasuredbasedonLikert‘s scalewhichhasminimumvalueis1(stronglydisagree)tomaximumvalueis5(stronglyagree).
CE2 Vietnameseproducts,first,last,andf o r e m o s t 302 2 5 3.94 706
CE6 Vietnameseconsumerswhopurchasep r o d u c t s madeinothercountriesarer e s p o n s i b l e forputtingtheirfellowV i e t n a m e s e outofwo rk.
0 T h i s f i n d i n g indicatesthatVietnamconsumersdon’thavehighknowledgeinqualityoflocal products.Perceivedpriced(PP)
Incontrast,empiricaldatashowedthattheperceivedpriceoflocalproductinconsumersisver yh ig h Allmeans of three sco re are app ro xi ma te 4 0 This fi nd in g indicates th a t Vietnamconsumersbelievethatpriceoflocalproductsisverycomfortableforthem.
Empiricaldatashowedthattheconsumerethnocentrismishigh.Allmeansofthreescoreareg r e a t e r 3 0 T h i s f i n d i n g i n d i c a t e s t h a t a l l p a r t i c i p a n t s i n t h i s r e s e a r c h h a v e h i g h ethnocentrism.Thisphenomenonisconsistentwithournationaltraditions,whic hcomesf ro m p a t r i o t i s m a n d t h e p r o t e c t i o n f o r n a t i o n a l e c o n o m i c avoidt h e b a d i m p a c t s f r o m importedproducts.
Empirical datashowsthatthewillingnesstobuylocal productsof consumersishigh.Allmeansofthreescorearegreater3.6.ThisfindingindicatesthatVie tnamconsumersarewillingtobuydomesticsgoods.
RELIABILITYTEST
(Gliem&Gliem,2003).ThevalueofCronbach’salphaneedtobeacceptedisover0.7an danyvariableswhichtheItem-totalcorrelationaresmallerthan0.3willbedeleted.
Fromtable5.1and5.2inAppendix5,thevalueofCronbach’salphaofperceivedqualityis0 8 8 3
> 0 7 a n d t h e v a l u e s o f I t e m - t o t a l c o r r e l a t i o n o f a l l t h r e e i t e m s o f p e r c e i v e d qualitya re o v e r 0 3 T hi s r e s u l t d e m o n s t r a t es t ha tt h e m ea s u r e m e n t scale o f p e r ce i v e d quality is well designedand trustworthy, and all three itemsPQ1,PQ2, PQ3 of perceivedqualityshouldbekeptinthisresearch.
Fromtable5.3and5.4inAppendix5,thevalueofCronbach’salphaofperceivedpriceis0.849>0.7 andthevaluesofItem- totalcorrelationofallthreeitemsofperceivedpriceareover0.3.Thisresultdemonst ratesthatthemeasurement scaleofperceivedpriceis welld e s i g n e d a n d t r u s t w o r t h y , a n d a l l t h r e e i t e m s P P 1 , P P 2 , P P 3 o f p e r c e i v e d p r i c e shouldbekeptinth isresearch.
Fromtable5.5,5.6,5.7,5.8,5.9andtable5.10inAppendix5,wemustdelete2itemsCE4andCE6ofconsumerethnocentrismtogetthetrustworthyformeasurementscaleofconsumeret hnocentrism.AfterdeletedCE4andCE6,thevalueofCronbach’salphaofconsumeret hnocentrismincreasesfrom0.659to0.883>0.7andthevaluesofItem- totalcorrelationofallfourremainitemsofconsumerethnocentrismareover0.3.Thisre sultdemonstratesthatafterdeletedCE4andCE6,themeasurementscaleofconsumer ethnocentrismi s w e l l d e s i g n e d a n d t r u s t w o r t h y , a n d a llf o u r r e m a i n i t e m s C E 1 , C E 2 , CE3,CE5ofconsumerethnocentrismshouldbekeptinthisresearch.
Fromtable5.11and5.12inAppendix5,thevalueofCronbach’salphaofwillingnesstobuyis0. 868>0.7andthevaluesofItem- totalcorrelationofallthreeitemsofwillingnesstobuyareover0.3.Thisresultdemonstratesthatthe measurementscaleofwillingnesstobuyiswelldesignedandtrustworthy, andallthreeit emsWB1,WB2,WB3ofwillingnesstobuyshouldbekeptinthisresearch.
EXPLORATORYFACTORANALYSIS(EFA)
ExploratoryF a c t o r A n a l y s i s i s a t e c h n i q u e t o e v a l u a t e i n t e r d e p e n d e n c e I t s t u d i e s a l l interrelationshipsw i t h o u t d e f i n i n g v a r i a b l e s t o b e d e p e n d e n t o r independent.I n t h i s r es ear ch , Exploratoryfactoranalysis(EFA)isappliedtote stthemodelwithKMOandBarltlett’scombinedwithPromaxrotationwhicharehighlyr ecommendedforstructuralequationmodeling(SEM).
MeasureforFactorLoading(Hair,Black,Babin&Anderson,2010): o FactorLoading>=0.3:samplesize>50 o FactorLoading>=0.5:1 0 0