INTRODUCTION
Research background
Globalization is now an essential process for countries worldwide, compelling nations to integrate or risk falling behind (Đang 2009) Vietnam joined the WTO as its 150th member on January 11, 2007, marking a significant step in its globalization journey This integration has led to heightened competition between domestic and foreign goods and services, a direct consequence of the global economy's interconnectedness (Netemeyer 1991 cited from Ranjbarian and Barari 2011).
Entering the international market has presented local enterprises with significant challenges, including increased competition from foreign companies The easing of trade policies has expanded consumer access to a wider array of foreign products (Wang and Cheng, 2004) Consequently, local firms need to focus on marketing strategies to boost sales and address the critical question: What factors influence Vietnamese consumers' preference for domestic products over imported goods? This thesis aims to explore four key factors affecting domestic consumption in Vietnam's market.
Problem statement
Numerous academic researchers have extensively examined the factors influencing consumer choices between domestic and foreign products in both developed and transitioning economies In recent years, this area of study has garnered significant attention, particularly regarding consumer ethnocentrism, which directly impacts purchase intentions Notable contributions to this field include the work of Nguyen et al (2008) and Herche (1994), highlighting the importance of understanding consumer behavior in a global market.
Klein and Ettenson 1999; Nguyen and Nguyen 2008; Shimp and Sharma 1987;
Sumner 1906; Vida and Reardon 2008 Patriotism is studied by Bannister and
Research on consumer perceptions of domestic versus imported product quality has been explored by various scholars, including Han (1988), Klein (2002), and Vida and Reardon (2008) The cosmopolitanism construct has also been examined in relation to consumer behavior (Javalgi et al., 2004; Suh and Kwon, 2002) In Vietnam, Nguyen and Nguyen (2008) are noted as key authors addressing this issue However, to date, there appears to be a lack of comprehensive studies focusing on the factors influencing Vietnamese consumers' preferences for domestic versus foreign products.
In 2004, Vietnam launched the "Vietnam High Quality Products" program, followed by the nationwide campaign "Vietnamese Use Vietnamese Products" initiated by the Politburo on July 31, 2009, through Document No 264-TB/TW These initiatives highlight the Vietnamese government's recognition of the significance of promoting domestic consumption Consequently, understanding the factors that influence domestic consumption in Vietnam's market is essential for supporting local enterprises in their marketing efforts.
Research objectives
This thesis seeks to implement the domestic consumption model by Vida and Reardon (2008) within the context of Vietnam as an emerging economy The findings will provide valuable managerial insights to assist local businesses in developing effective marketing and business strategies To validate the model's applicability, the study will analyze the contribution of various factors to domestic consumption, addressing two key research questions.
Q1 Which factors do influence the domestic consumption in Vietnam?
Q2 How do factors influence the domestic consumption in Vietnam?
This study defines imports as products brought into Vietnam from technologically or economically advanced countries, while domestic goods refer to items produced or manufactured by Vietnamese companies or foreign direct investment (FDI) companies operating within Vietnam.
Scope and Research methodology
This research focuses on the Vietnamese market and consumer behavior, specifically regarding refrigerator usage as a key household product Refrigerators are essential for every Vietnamese family, reflecting the changing lifestyles in urban areas According to Euromonitor International (2010), the busier lifestyle has prompted Vietnamese consumers to prefer infrequent, bulk grocery shopping trips, often once a week or fortnight This shift has led many to invest in larger-capacity refrigeration appliances, enabling them to store more food at home and reduce the frequency of grocery shopping.
Appendix 1.1 presents the statistic data of refrigerator’s sales from
The research is conducted in two primary stages: the first stage involves utilizing focus groups and pilot tests to develop a comprehensive questionnaire, while the second stage entails quantitative research with a sample size of 396, as detailed in Chapter 3 To ensure the reliability of the measurement scales, the study employs the Cronbach alpha coefficient and Exploratory Factor Analysis (EFA), followed by Confirmatory Factor Analysis (CFA) to validate the findings.
Euromonitor International stands as the global leader in strategic research for consumer markets, boasting a presence in multiple countries, with analysts operating in 80 nations and conducting comprehensive market research on essential trends and drivers The theoretical model is examined through the application of Structural Equation Modeling (SEM) techniques, with all methodologies employed in the thesis utilizing PASW Statistics software.
Structure of the research
The thesis is structured into five chapters, beginning with Chapter 1, which introduces the research background, problem statement, and objectives, while outlining the study's scope and methodology Chapter 2 offers a literature review on factors influencing domestic consumption and presents a list of hypotheses along with the research model Finally, Chapter 3 details the research methodology employed in the study.
Chapter 4 presents data analysis and findings Finally, chapter 5 discusses the findings, managerial implications and limitation as well as future research.
LITERATURE REVIEW
Introduction
This chapter aims to explore and analyze relevant theories within the literature, building on the overview provided in the previous chapter It includes a comprehensive literature review focusing on key topics such as domestic consumption, perceptions of product quality in imports, consumer ethnocentrism, patriotism, and cosmopolitanism Additionally, a research model is presented to guide the study.
Domestic Consumption (DC)
Domestic consumption (DC), as defined by the Oxford Advanced Learner’s Dictionary, refers to the purchasing and utilization of domestic products In marketing research, scholars focus on consumer behavior, exploring the attitudes and perceptions that influence how consumers view products These diverse perceptions significantly impact consumer attitudes, purchasing intentions, and overall behaviors (Vida and Reardon, 2008).
Import Product Quality Perception (IPQP), Consumer Ethnocentrism (CET), Patriotism (PAT) and Cosmopolitanism (COS)
2.3.1 Import Product Quality Perception (IPQP)
Consumers' intentions to purchase domestic or imported products are significantly influenced by their perception of quality Quality perception is multidimensional, encompassing aspects such as workmanship, appearance, design, durability, functionality, prestige, reliability, technical advancement, and value for money Research indicates that consumers in developed countries often view domestic products as superior in quality, while the opposite is true for consumers in developing countries.
In 1906, Sumner first introduced the concept of ethnocentrism, defining it as the perspective where one's own group is viewed as the focal point, with all others assessed in relation to it (Sharma et al., 1995) This notion extends to consumer behavior, where consumer ethnocentrism is characterized by a tendency to regard one's own group as central, interpreting other social groups through this lens, and favoring those who share similar cultural traits while rejecting those who do not (Shimp and Sharma, 1987) Research indicates that consumer ethnocentrism can significantly influence preferences for domestic over foreign products, although this impact varies across different product categories (Herche, 1992, cited in Balabanis et al., 2001).
Consumer ethnocentrism represents beliefs that purchasing imported products is wrong and immoral because it can hurt the domestic economy and can cause the loss of jobs (Shimp and Sharma 1987).
Patriotism is defined as a profound love for one's country and a readiness to defend it (OALD 2010) It embodies a strong sense of loyalty and attachment to the nation, characterized by a lack of hostility towards other countries (Balabanis et al 2001) This sentiment typically develops early in life and remains deeply ingrained, fulfilling essential needs such as security, belonging, and self-enhancement, which makes these attitudes resistant to change (Druckman 1994) Generally, patriots are willing to sacrifice personal interests for the greater good of their nation (Feshbach 1990 cited from Balabanis et al 2001).
Cosmopolitanism, derived from the Greek term for "citizen of the world," is a concept rooted in anthropology and social psychology, increasingly relevant in marketing and management (Cleveland et al., 2010) Individuals who identify as cosmopolitan often engage with international media, including foreign books and films, even while residing in their home countries (Hannerz).
Since 1990, researchers, as noted by Riefler and Diamantopoulos (2009), have reached a consensus that cosmopolitanism should not merely describe individuals who travel frequently but should instead denote a distinct set of attitudes, beliefs, and traits.
“an ethos of cultural openness” (Kurasawa2004 cited from Cleveland et al 2010).
Cosmopolitan consumers embrace innovation and prioritize functionality in their choices, selecting products or services that effectively meet their needs without being swayed by tradition or social influences.
Cannon et al (2009) argue that when cosmopolitan consumers prioritize functional needs over local customs and traditions, consumer cosmopolitanism emerges as a viable transnational segmentation strategy (Riefler and Diamantopoulos, 2009).
Hypothesis development and Research Model
2.4.1 Import Product Quality Perception (IPQP), Consumer
Ethnocentrism (CET) and Domestic Consumption (DC)
According to Wang and Cheng (2004), consumers are more likely to choose products from technologically advanced countries when they perceive their quality to be superior to those from less developed nations Additionally, the country of origin of a product can trigger a consumer's ethnocentric tendencies, as noted by Huddleston et al.
Domestic consumption is significantly shaped by ethnocentrism and perceptions of quality In developed countries, consumers typically perceive domestic products to be of higher quality compared to foreign alternatives.
In developing countries like Nigeria, Romania, Turkey, India, and China, consumers often view foreign products, especially those from higher origin countries, as superior in quality compared to local offerings (Morganosky & Lazarde, 1987; Samiee, 1994; Wang & Cheng, 2004; Vida & Reardon, 2008) This perception highlights a significant difference in consumer behavior when compared to more developed nations.
Research from 2008 indicates a negative correlation between the perceived quality of imported products and the intention to purchase domestically Furthermore, Rybina et al (2010) found that consumers' ethnocentric attitudes positively influence domestic purchasing behavior in Kazakhstan This study presents several hypotheses based on these findings.
H1: Import Product Quality Perception is negatively related to Domestic Consumption
H2: Consumer Ethnocentrism has a positive effect on Domestic Consumption
2.4.2 Cosmopolitanism (COS), Patriotism (PAT) and Consumer
Balabanis et al (2001) explore the roles of patriotism, nationalism, and internationalism as factors influencing consumer ethnocentrism in Turkey and the Czech Republic Their findings reveal a significant impact of both patriotism and nationalism on consumer attitudes, supporting earlier research in this area.
Han 1988; Sharma et al 1995; Klein and Ettenson 1999) In 2008 a research has the same similarly result composed by Vida and Reardon.
Rybina et al (2010) found that in Kazakhstan, patriotism positively influences consumer ethnocentrism, while cosmopolitanism negatively impacts it Conflicting results have emerged from other studies regarding the effects of cultural openness, including constructs like cosmopolitanism and global mindedness, on ethnocentrism (Suh and Kwon, 2002) Additionally, Vida and Reardon (2008) noted a negative relationship between cosmopolitanism and consumer ethnocentrism in Slovenia's market Consequently, this study proposes two hypotheses.
H3a Patriotism is positively related to Consumer Ethnocentrism.
H3b Cosmopolitanism is negatively related to Consumer Ethnocentrism.
2.4.3 Patriotism (PAT) and Domestic Consumption (DC)
A study by Han (1988) indicates that patriotism positively influences consumers' preference for domestic products over foreign ones (Granzin and Olsen, 1998) Vida and Reardon (2008) further validate this by testing the hypothesis that domestic consumption in Slovenia is driven by the affective mechanism of patriotism, confirming the results Therefore, the fourth hypothesis of this study is recommended.
H4: Patriotism is positively affected to Domestic Consumption.
Based on presented hypotheses above, the research model in this study:
Import product quality perception (IPQP)
METHODOLOGY
Introduction
This chapter will go into details the problems related to research methods,research procedure and scales for the purposes of measuring constructs and testing the research model.
Research design
This research comprised two stages: a pilot study and an official quantitative study The pilot stage involved both qualitative and quantitative research methods to develop the questionnaire In the second stage, the official quantitative research was conducted to analyze the collected data, testing the research hypotheses and model Figure 3.1 illustrates the research procedure.
Literature reviews (DC scale, IPQP scale, CE scale, PAT scale, COS scale)
The primary objective of this stage was to develop measuring scales tailored for the Vietnamese market To achieve this, the original scales were translated from English to Vietnamese following the forward and back translation method proposed by Craig and Douglas (2003) for cross-cultural adaptation During the forward translation, the scales were converted into Vietnamese, with the exception of the CET scale, which was sourced from a local study conducted by Nguyen and Nguyen in 2008 This process was guided by a specialist with extensive experience living and studying in the United States.
In back translation, an experienced English instructor from the University of Economics Ho Chi Minh City translated the initial Vietnamese questionnaire draft back into English for validation This process involved comparing both versions in the source language to identify errors and assess translation quality, as outlined by Craig and Douglas (2003).
After finishing this stage, the next step had been carried out in
- depth interview technique to ensure the adaptable questionnaire to Vietnam’s market Nine customers were asked around The questionnaire for group discussion was presented in Appendix 3.1.
The second draft of the questionnaire was created using Google Documents and distributed to 400 MBA students, receiving 129 responses within two weeks The feedback was coded, filtered, and analyzed using PASW Statistics 18 This process aimed to finalize the official questionnaire for quantitative research by testing Cronbach’s alpha, conducting exploratory factor analysis (EFA), and refining various items within each construct.
Reliability analysis was first used to remove items with low Item-Total Correlations ( 0.5; Sig (Bartlett’s test) 0.05).
The chi-square test has notable limitations, particularly as its value tends to increase with larger sample sizes According to Hair et al (2010), modern models are often more complex, which diminishes the effectiveness of the chi-square significance test as a measure of goodness of fit, making it challenging to distinguish between good and poor models They recommend that researchers should always use additional goodness of fit indices alongside the chi-square result Therefore, this study incorporates several indices, including the Chi-square/df index (CMIN/df), Goodness of Fit Index (GFI), Comparative Fit Index (CFI), and Tucker-Lewis Index (TLI).
The Lewis Index and RMSEA (Root Mean Square Error Approximation) are essential metrics for evaluating model fit A model is considered acceptable if it achieves GFI, TLI, and CFI values of 0.9 or higher, as established by Bentler and Bonett (1980) Additionally, the CMIN/df ratio should be 2 or less according to Nguyen and Nguyen (2008), with some scenarios allowing for a ratio of up to 3 as noted by Carmines and others.
McIver 1981 cited from Netemeyer et al 1991); RMSEA 0.9) 0.945 ( > 0.9) CFI 0.926 ( > 0.9) 0.954 ( > 0.9) RMSEA 0.066 ( < 0.08) 0.052 ( < 0.08)
To assess construct validity, researchers focus on several key factors: composite reliability, variance extracted, unidimensionality, convergent validity, and discriminant validity As indicated in Table 4.6, most constructs demonstrated reliability values exceeding 0.8 and extracted variance above 50%, with the exception of the CET construct, which had a variance of 46% To enhance the extracted variance, some researchers opt to reduce the number of items within each construct; however, this must be approached cautiously to avoid compromising content validity In this study, two items (CET 1 and CET 3) were removed from the CET scale due to their low standardized regression weights, as illustrated in Figure 4.6, which displays the Final Saturated Model post-deletion.
Table 4.6: Assessment Construct Validity Result
The Final Saturated Model demonstrated a chi-square value of 280.219 with 155 degrees of freedom and a p-value of 0.000, indicating statistical significance The chi-square to degrees of freedom ratio was 1.808, which is below the threshold of 2, while goodness-of-fit indices such as GLI, TLI, and CFI were all greater than 0.92 Additionally, the RMSEA value of 0.045 further confirms the model's good fit to the data These results support the unidimensionality of the scales, including CET and DC, while also revealing correlations between errors in three scales: IPQP, PAT, and COS.
>e13, e13e14, e17e18) Thus, they did not get the condition for the unidimensionality.
Table 4.7: Model Fit Summary - Final Saturated Model
The extracted variance of CET construct improved from 46% to 53%.
Table 4.8 shows the new results for Cronbach’s Alpha Reliability,Composite Reliability and Extracted Variance.
Table 4.8: Assessment Construct Validity Result
Table 4.9 displays both standardized and unstandardized factor loadings, all of which exceed 0.5 and are statistically significant, confirming the convergent validity of the scales Additionally, Table 4.10 reveals that the correlations between constructs significantly differ from one, demonstrating the successful achievement of discriminant validity across the constructs.
Table 4.9: Regression weights and standardized regression weights summary
Regression weights Standardized regression weights
CET4 < - CET 1.022 0.09 11.309 *** CET4 < - CET 0.731 CET2 < - CET 0.945 0.087 10.814 *** CET2 < - CET 0.656
IPQP3 < - IPQP 1.351 0.097 13.928 *** IPQP3 < - IPQP 0.911 IPQP2 < - IPQP 1.087 0.086 12.678 *** IPQP2 < - IPQP 0.709 IPQP1 < - IPQP 1.164 0.091 12.789 *** IPQP1 < - IPQP 0.716
PAT4 < - PAT 1.117 0.042 26.55 *** PAT4 < - PAT 0.869 PAT3 < - PAT 0.95 0.051 18.649 *** PAT3 < - PAT 0.811 PAT2 < - PAT 1.175 0.058 20.122 *** PAT2 < - PAT 0.892 PAT1 < - PAT 1.073 0.065 16.607 *** PAT1 < - PAT 0.774
COS3 < - COS 0.883 0.081 10.929 *** COS3 < - COS 0.613 COS2 < - COS 1.296 0.107 12.11 *** COS2 < - COS 0.882 COS1 < - COS 1.264 0.105 12.022 *** COS1 < - COS 0.813
DC3 < - DC 0.969 0.043 22.316 *** DC3 < - DC 0.89 DC2 < - DC 0.798 0.053 15.053 *** DC2 < - DC 0.667 DC1 < - DC 0.653 0.051 12.822 *** DC1 < - DC 0.593
Table 4.10: Testing the discriminant validity
IPQP < > PAT 0.14 0.050 0.86 17.258 0.000PAT < > COS 0.30 0.048 0.71 14.646 0.000COS < > DC 0.11 0.050 0.89 17.810 0.000CET < > IPQP 0.10 0.050 0.90 17.918 0.000CET < > PAT 0.19 0.049 0.81 16.376 0.000CET < > DC 0.36 0.047 0.64 13.601 0.000IPQP < > COS -0.10 0.050 1.10 21.878 0.000PAT < > DC 0.30 0.048 0.70 14.518 0.000IPQP < > DC -0.14 0.050 1.14 22.877 0.000CET < > COS 0.06 0.050 0.94 18.636 0.000
Testing Theoretical Model
The results of the Standardized Theoretical Model, as shown in Figure 4.7, indicate an acceptable fit to the data, with a chi-square value of 321.978, degrees of freedom (df) of 160, and a p-value of 0.000 The chi-square to df ratio is 2.011, which is less than 3, while the Goodness of Fit Index (GFI) is 0.926, exceeding the threshold of 0.92 Additionally, the Tucker-Lewis Index (TLI) is 0.955, and the Comparative Fit Index (CFI) is 0.962, both above the acceptable level of 0.95 The Root Mean Square Error of Approximation (RMSEA) is 0.051, which is below the acceptable limit of 0.08.
Figure 4.7:SEM’s Result- Theoretical Model (Standardized)
Table 4.11 shows the regression weights among constructs in the theoretical model Regression weights of pairs COS - CET were nonsignificant at a p – value of 0.818.
Table 4.11: Regression Weights - Theoretical Model
Table 4.12 presents standardized regression weights of theoretical model.
Table 4.12: Standardized Regression Weights - Theoretical Model
Table 4.13 presents the squared multiple correlation, commonly referred to as R², indicating that the predictors of DC account for 24.7% of its variance This implies that approximately 75.3% of the variance in DC remains unexplained by these predictors.
Table 4.14 displays the results of the bootstrapping analysis Bootstrapping, a computer-based resampling technique introduced by B Efron, involves randomly selecting cases from the original dataset with replacement to create new datasets that typically match the original's size By repeating this process multiple times, often around 1,000 iterations, bootstrapping effectively simulates the drawing of numerous random samples from a population, as noted by Kline (2010).
Bootstrapping offers researchers a significant advantage by enabling them to evaluate the stability of parameter estimates, leading to more accurate reporting of these values (Byrne, 2010) In the accompanying table, the "mean" column displays the average parameter estimate derived from 1,000 bootstrap samples, while the "S.E" column provides the bootstrap estimate of the standard error for each factor loading parameter in the model, reflecting the standard deviation of the parameter estimates across the samples.
1000 bootstrap samples Column “S E–S E” provides the approximate standard error of the bootstrap standard error itself Column “Bias” represents the difference between the bootstrap mean estimate and original estimate.
Column “S.E–Bias” reports the approximate standard error of the bias estimate The value of Bias column was very small (from 0 to 0.004) These results support for the reliable parameter estimates.
PAT DC 0.263 0.049 0.260 0.06 0.001 -0.003 0.002CET DC 0.325 0.048 0.328 0.059 0.001 0.003 0.002IPQP DC -0.201 0.049 -0.197 0.058 0.001 0.004 0.002
Testing Hypotheses and Summary
Table 4.15 presents five hypotheses from the theoretical model along with their testing results Hypothesis 1 indicates that the perception of import product quality negatively impacts domestic consumption, supported by results showing (β = -0.257, s.e = 0.067, p = 0.000) Hypothesis 2 reveals that consumer ethnocentrism positively influences domestic consumption, with results of (β = 0.322, s.e = 0.058, p = 0.000) Additionally, hypothesis 3a, which states that patriotism is positively related to consumer ethnocentrism, is supported by (β = 0.230, s.e = 0.073, p = 0.002) Finally, hypothesis 4 demonstrates that patriotism positively affects domestic consumption, with results of (β = 0.321, s.e = 0.063, p = 0.000).
H3b was not supported ( Cosmopolitanism is negatively related to consumer ethnocentrism) had the results with β= 0.023, s.e = 0.099, p = 0.818.
Table 4.15: Hypotheses testing and results (based on the Regression Weights table in Theoretical Model)
H1 Imports product quality perception is negatively related to Domestic consumption
Ethnocentrism has a positive effect on Domestic consumption
H3a Patriotism is positively related to consumer ethnocentrism.
H4 Patriotism is positively affected to Domestic consumption
H3b Cosmopolitanism is negatively related to consumer ethnocentrism
Table 4.16 presents the Standardized Regression Weights from the Theoretical Model, highlighting the significant influence of independent variables on the dependent variable The analysis reveals that CET exerts the strongest effect on DC, with a beta coefficient of 0.325 Additionally, PAT impacts DC both directly and indirectly through CET.
Table 4.16: Standardized Regression Weights (Theoretical Model)
This chapter evaluated the reliability of data using Cronbach’s Alpha and conducted both exploratory and confirmatory factor analyses The analysis confirmed five factors and tested five hypotheses within the theoretical model Chapter 5 will provide an in-depth discussion of the findings, managerial implications, and limitations of the study.
CONCLUSIONS AND IMPLICATIONS
Introduction
This chapter discusses the study findings obtained from the data analysis The study implications, study limitations and suggestions for the future research are presented.
Discussion of findings
Domestic Consumption construct in this study was measured by 4 items They describe the act and perception of buying and using the domestic products.
The mean score of the scale was 3.971 (below 4) imply that the respondents had not agreed with statements They did not want to buy or use domestic products.
This study identified three significant factors influencing domestic consumption: Imports Products Quality Perception (IPQP), Consumer Ethnocentrism (CET), and Patriotism (PAT) The research confirmed Hypothesis 1, which states that a higher perception of import product quality negatively impacts domestic consumption This suggests that when consumers perceive imports as having superior quality compared to domestic products, they are more likely to purchase imports This finding aligns with previous research by Nguyen and Nguyen (2008) in the Vietnamese market, highlighting the crucial role of import product quality perception in consumer behavior.
The effect of CET (Consumer Ethnocentrism) on the Domestic Consumption
Higher levels of ethnocentrism among consumers correlate with increased purchasing of domestic products compared to those with lower ethnocentric tendencies Following a Confirmatory Factor Analysis (CFA), only three items were retained in the Consumer Ethnocentrism Scale (CET).
Hypothesis 3a mentions to the positive relationship between Patriotism and
Consumer Ethnocentrism was supported It means the more patriotic the individual; the higher his/her consumer ethnocentric tendencies will be (Balabanis et al 2001).
The fourth hypothesis was confirmed, indicating that patriotism positively influences domestic consumption; as individuals' pride in their Vietnamese identity increases, so does their likelihood of purchasing local products This correlation is logical, as those who feel a strong connection to their country often view buying foreign goods as detrimental to their fellow citizens and the local economy Consequently, these patriotic consumers are more inclined to support Vietnamese businesses by choosing domestic products over foreign alternatives.
Managerial Implications
The results of this study suggest that domestic consumption can be improved as we change the determinants such as import product quality perception, consumer ethnocentrism and patriotism.
Vietnamese consumers generally perceive imported products as higher quality than domestic ones, leading to a greater willingness to purchase them Therefore, managers of domestic enterprises must recognize the critical importance of product quality in influencing consumer preferences and purchasing behavior To achieve this, quality must be integrated into every stage of the operations chain, including setting standards, training personnel, and conducting inspections, ideally by the producers themselves, to ensure high-quality outcomes (Schroeder 2003).
Government should encourage the production of high quality, competitive Vietnamese products among Vietnam enterprises.
To enhance the quality of domestic products, marketing managers must prioritize consumer ethnocentrism by developing targeted marketing communication programs These initiatives should promote the purchase and use of local products, emphasizing the contributions of employees, such as factory workers in Vietnam By crafting messages that foster national pride and underscore the collaborative efforts between businesses and the government, these programs can effectively resonate with consumers and stimulate a sense of patriotism.
Vietnamese companies marketing manager may focus on consumer ethnocentrism by incorporating message into promotional campaigns For example:
“Buy Vietnamese products and protect our industries”
“Buy Vietnamese products and protect the jobs of our people”
Promoting the slogan "By buying Vietnamese products, you help keep jobs and support families" can effectively reach students at schools, universities, and colleges through posters on notice boards, roadshows, and theater performances Additionally, television advertisements featuring a smiling Vietnamese factory worker can reinforce this message, highlighting the positive impact of supporting local products on the community and economy.
To boost domestic consumption and foster consumer ethnocentrism, leveraging patriotism is essential Vietnamese marketing managers can create impactful advertising campaigns that incorporate patriotic slogans to resonate with local consumers.
“Be a proud Vietnamese –buy Vietnamese products”
“Show your love for your country by buying Vietnamese products”
“I am a son of Vietnam –I buy Vietnam – made products”
“I am proud of my country – I buy Vietnamese products”
Brand strategyshould be built with the creative ideas relate to patriotic.
To foster a sense of patriotism, packaging should prominently feature slogans like “Buy Vietnamese products and protect the jobs of our people” and “Show your love for your country by buying Vietnamese products.”
Government (Ministry of Industry and Trade) should support budgets for Vietnamese companies to make these television advertising campaigns.
The Ministry of Information and Communication should promote the involvement of renowned actors, actresses, and singers in various programs Additionally, the Ministry of Industry and Trade should facilitate connections between businesses, ensuring that the products of one company can serve as raw materials for another.
Managers can leverage social media platforms like Facebook, Twitter, and Google Plus to promote their Vietnamese-made products Retailers such as Coop Mart, Big C, Maximart, Nguyen Kim, and Phan Khang can utilize these communication channels to express their pride in offering Vietnamese products to consumers.
Limitations and Future research
This study has many limitations The sample is one of the first limitations.
This study utilized a convenience sample, which is the least reliable form of non-probability sampling, focusing on university students from second-degree and MBA classes A significant limitation is the narrow focus on a single product type, specifically refrigerators; future research should aim to include a random sample and a broader range of product types to enhance the generalizability of the research model Additionally, the study identified five factors—Consumer Ethnocentrism, Imports Product Quality Perception, Patriotism, Cosmopolitanism, and Domestic Consumption—but future studies should consider incorporating new factors such as Animosity, Nationalism, Internationalism, Individualism, Conspicuous Consumption, and Foreign Product Consumption Lastly, the research did not assess the impact of demographic variables like gender, income, age, and occupation, indicating a need for future investigations to explore these influences.
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Thompson B (2004), Exploratory and Confirmatory Factor Analysis –
Understanding Concept and Applications, Washington, DC: American Psychological Association.
Vida I and Reardon J (2008), Domestic consumption: rational, affective or normative choice, Journal of Consumer Marketing, 25 (1), 33-44.
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Refrigeration Appliances – Vietnam, Euromonitor Internamtional: Country SectorBriefing, February 2011.
Refrigerator statistics Vietnam 2005 - 2010
Table 1 Sales of Fridge Freezers by Format: %
Side by Side with Dispenser 2 2.5 2.9 4 4.2 8.6
Side by Side without Dispenser 2.8 3 3.6 4.3 4.4 8.9
3 - Door French Door without Dispenser 3.1 3.8 5 5.3 5.4 5.7
3 - Door Vertical Door without Dispenser 0 0 0 0 1 1.1
Table 2 Sales of Fridge Freezers by Volume Capacity: % Breakdown
Table 3 Brand Shares of Refrigerator Appliances 2007 - 2010
Sanyo Sanyo Home Appliances Asian Co Ltd 51.7 58.1 64.8 67.5 Toshiba
Panasonic Matsushita Home Appliances Co Ltd 4.4 4.1 3.8 3.6
Sharp Sharp Electronics Vietnam Co Ltd 0 0 3 3
Deawoo Deawoo Hanel Electrics Co Ltd 7.3 4.3 1.3 0.6
Table 4 Forecast Sales of Refrigerator Appliances by Category: Value
Source: Euromonitor International from trade associations, trade press, company research, trade interview, trade sources.
Group discussion
Hello, I'm Cao Quoc Viet, and I'm excited to discuss the issues surrounding the purchase of domestic versus imported products with you today Let's enjoy a cup of coffee before we dive into the questionnaire.
Relative to using refrigerator please let me know:
When purchasing a refrigerator, it's essential to consider the brand and its reputation For instance, whether you chose a local Vietnamese manufacturer or an imported brand can impact the quality and price Understanding the features, such as whether the refrigerator is high-tech or more standard, also plays a crucial role in your decision Reflecting on your choice, you might find that you preferred a model based on its affordability, advanced technology, or overall performance, which ultimately influenced your satisfaction with the product.
When considering the purchase of a refrigerator, it's essential to reflect on factors such as brand reputation, country of origin, and the technology used in the appliance Many consumers prioritize well-known brands that offer reliability and advanced features, while others may focus on energy efficiency and innovative technology Ultimately, the choice of a refrigerator brand often stems from personal preferences, recommendations, and the desire for a product that meets specific needs and expectations.
3 Do you think that the quality of refrigerator is the most important thing? What main factors that influence whether you choose a brand of refrigerator or not?
4 Do you think that we should not buy imported refrigerator? Could you explain your opinion?
5 Do you agree with me that buying imported products will cause the unemployment in our country?
6 Do you think that the Vietnamese should buy the domestic products, for example, they should buy the refrigerator is made in our country? Please explain your answer?
7 Talking about patriotism, what do you think about the Vietnamese patriotic?
8 What do you feel about our country? If you have a change to make something good for our country, what will you do?
9 Do you want to live in a foreign country? Please tell me why?
10 Would you like tocontact with people from different cultures? Why?
There are statements below, please tell me know – do you understand them If you do not understand, please discuss with me.
Findings: Nine people were asked around Six men have the age between 31 and 36;
3 women are in the age from 26 to 27 There are two people are studying MBA.
Seven people have graduated from universities and colleges Six people are using
Sanyo brand and 3 others are using Toshiba, LG and Daewoo Some evaluation is shown in the table below:
Country of origin Japan Japan Vietnam Vietnam
Quality of product Good Good Good Good
Price High High Reasonable Reasonable
When considering the purchase of a refrigerator, it's essential to evaluate factors such as brand reputation, country of origin, and technological features Understanding the reasons behind your brand preference can significantly influence your decision, ensuring that you select a model that meets your needs and expectations Prioritizing quality and innovation in your choice will lead to a more satisfying and efficient appliance for your home.
When they need to store food.
All of nine people care about the country of origin, technology.
Everyone thinks that Sanyo is the best brand in quality.
Do you think that we should not buy imported refrigerator? Could you
6 people say no, the explanation is that the qualities of imported bridges are explain your opinion? good.
3 people say yes, they believe that refrigerators that made in Vietnam have the same quality in comparison to import products.
Do you agree with me that buying imported products will cause the unemployment in our country?
Do you think that the Vietnamese should buy the domestic products, for example, they should buy the refrigerator is made in our country?
6 people do not agree with this statement, they like the good quality product, well known products.
Talking about patriotism, what do you think about the Vietnamese patriotic?
5 people say that they do not care about what is patriotism They just think about their families; how to have a high salary to support for their family.
What do you feel about our country? If you have a change to make something good for our country, what will you do?
All nine people say that this is a difficult question Everyone thinks that education is the biggest problem that we need to change Some people talk about politics, inflation,corruption…
Do you want to live in a foreign country? Please tell me why?
Nine people like living in a foreign country They like a fresh environment, a modern life with high income…
Would you like tocontact with people from different cultures? Why?
Most of people like contacting with foreigners due to the reason of improving speaking English.
English Questionnaire
Hello, everyone My name is Cao Quoc Viet, a member of MBA class - The
The University of Economics Ho Chi Minh City is conducting research on the buying behavior of Vietnamese consumers Your participation in this study would be invaluable, and we kindly ask you to take a few minutes to complete the attached questionnaire Thank you for your contribution to this important research.
I will send you a lucky small gift below (You should choose 1/6 gifts)
4 More than 1000 documents that relative to Marketing, Business Administration, Human resource management, customer behavior…
5 Sales Technique video composed by Francis Hung
6 Sales Technique audio composed by Quach Tuan Khanh.
1 In this research, imported products are the products made from other countries and imported into Vietnam.
2 Domestic products are the products made in Vietnam by local companies or FDI companies.
3 Refrigerator is a proxy product of this research.
If you are/ live in a family which are done in fields such as
Manufacturer/ retailer relative to the refrigerator Stop Market research, Advertising, Communicating Stop
Do not work in the above fields Keep on
You do not care about buying a refrigerator StopYou do not decide the buying refrigerator for your family Stop
I have bought a refrigerator/ I am intending to buy a refrigerator Keep on
Please rate to what extent you agree with the following statements Mark your answer on thescales from “strongly disagree” to “strongly agree”.
1 It is not right to purchase foreign made products
2 Vietnamese consumers who purchase products made in other countries are responsible for putting their fellow Vietnamese out of work
3 A real Vietnamese should always buy Vietnamese - made products
4 We should purchase products manufactured in Vietnam instead of letting other countries get rich off us
5 Vietnamese should not buy foreign products, because this hurts Vietnamese business and causes unemployment
6 Imported refrigerator is generally cleverly designed and attractive
7 Imported refrigerator quite reliable and seem to last desired length of time
8 Imported refrigerator is carefully produced and have fine workmanship
9 Imported refrigerator usually represent a good value for money
10 Being a Vietnamese citizen means a lot to me
11 I am proud to be a Vietnamese citizen
12 When a foreign person praises Vietnam, it feels like a personal compliment
13 I feel strong ties with Vietnam.
15 I like immersing myself in different cultural environments
16 I like having contact with people from different cultures
17 I would enjoy travelling to foreign countries for an extended period of time
18 Getting information and news from around the world is important to me
19 Mostly I try to buy refrigerator brand of domestic companies
20 Whenever possible, I take time to look at labels in order to knowingly buy refrigerator brand of domestic companies
21 I shop first at retail outlets that make a special effort to offer a variety of domestic refrigerator product
22 I shop first at retail outlets that make a special effort to offer brands of domestic refrigerator products
Please, fill in the following information
Gender: 1 Male 2 Female Monthly net income:
Thank you for your help!
Name: Cao Quoc Viet Class: EMBA 19–University of Economics Ho Chi Minh City.
Skype: vietcao1010 Yahoo chat:vietquoccao@yahoo.com.vn Email:vietquoccao@gmail.com
Facebook:www.facebook.com/vietquoccao
Bảng câu hỏi khảo sát
Xin chào! Tôi là Cao Quốc Việt, hiện là học viên cao học QTKD tại Trường ĐH Kinh tế TP.HCM Tôi đang tiến hành nghiên cứu về hành vi mua hàng của người tiêu dùng.
Chân thành cảm ơn các bạn đã dành thời gian trả lời bảng câu hỏi của tôi Mọi ý kiến của các bạn đều quý giá và không có đúng hay sai, giúp tôi hoàn thiện nghiên cứu cho luận văn Để tri ân sự giúp đỡ của các bạn, tôi xin gửi tặng các bạn một trong sáu món quà dưới đây.
1 Phần mềm lập kếhoạch kinh doanh (Business Plan Pro)
2 Phần mềm lập kếhoạch marketing (Marketing Plan Pro)
3 Bộ đĩa học tiếng Anh tiềm thức (Subliminal English study)
Tổng hợp hơn 1000 tài liệu nghiên cứu tiếng Anh trong các lĩnh vực Marketing, Hành vi khách hàng và Quản trị nguồn nhân lực, cung cấp nguồn tài liệu quý giá cho những ai muốn tìm hiểu và nghiên cứu về quản trị kinh doanh.
5 Bộ đĩa video kỹ năng sales do học giả nổi tiếng MBA - Francis Hùng trình bày.
6 File ghi âm khóa học kỹ năng bán hàng do học giả MBA - Quách Tuấn Khanh trình bày.
Vui lòng chọn MỘT trong 6 mục và ghi địa chỉ email của bạn ở mặt sau bảng câu hỏi Sau khi hoàn thành nghiên cứu này, tôi sẽ gửi email kèm theo đường link tải quà tặng cho bạn.
1 Hàng ngoại nhập được đề cập đến trong bảng câu hỏi này là các hàng hóa sản xuất tại nước ngoài và được nhập khẩu vềViệt Nam.
Hàng nội hay hàng sản xuất trong nước là những sản phẩm được sản xuất và lắp ráp tại Việt Nam, có thể do các công ty Việt Nam hoặc các công ty có vốn đầu tư nước ngoài hoạt động tại Việt Nam thực hiện.
3 Hàng hóa được đềcập trong bảng khảo sát này là: tủlạnh.
Các bạn hoặc những thành viên trong gia đình bạn đang làm việc trong các lĩnh vực:
1 Sản xuất, mua bán tủlạnh : Ngưng khảo sát
2 Quảng cáo/ Nghiên cứu thị trường:Ngưng khảo sát
3 Báo chí/phát thanh/ truyền hình :Ngưng khảo sát
4 Không làm trong các lĩnh vực trên : Tiếp tục
Các bạn vui lòng cho biết:
1 Tôi không quan tâm đến việc mua tủlạnh: Dừng khảo sát
2 Việc mua tủlạnh cho gia đình không do tôi quyết định: Dừng khảo sát
3 Tôi đã từng mua tủlạnh/ tôi có ý định sẽmua một chiếc tủlạnh: Tiếp tục
Phần I: Vui lòng cho biết mức độ đồng ý của bạn cho các phát biểu dưới đây theothang điểm từ 1 đến 7, với qui ước sau:
1: HOÀN TOÀN PH Ả N ĐỐ I đến 7: HOÀN TOÀN ĐỒ NG Ý
(Xin chỉkhoanh tròn một sốthích hợp cho từng phát biểu)
1 Chuộng mua hàng ngoại nhập không phải là hành vi đúng đắn của người Việt Nam.
2 Ủng hộviệc mua hàng ngoại nhập là góp phần làm một số người Việt mất việc làm.
3 Người Việt Nam chân chính luôn mua hàng sản xuất tại Việt Nam.
4 Mua hàng nhập ngoại chỉ giúp cho nước khác làm giàu.
5 Mua hàng nhập ngoại gây ra tổn hại kinh doanh của người trong nước.
6 Tủlạnh nhập ngoại có chất lượng cao hơn loại tủlạnh sản xuất trong nước.
7 Công nghệsản xuất tủlạnh nhập ngoại cao hơn công nghệsản xuất tại Việt Nam.
8 Tủlạnh nhập ngoại có chất lượng đáng tin cậy hơn so với tủlạnh sản xuất tại Việt
9 Tủlạnh nhập ngoại rất đáng đồng tiền.
10 Việc trở thành một công dân Việt Nam mang rất nhiều ý nghĩa đối với tôi.
11 Tôi tự hào là người Việt Nam.
Khi gặp gỡ người nước ngoài và nhận được lời khen ngợi về đất nước của mình, tôi cảm thấy vô cùng tự hào Cảm giác này không chỉ là niềm vui về quê hương, mà còn như một lời khen dành cho chính bản thân tôi.
13 Tôi luôn cảm nhận bản thân mình có một mối liên hệchặt chẽvới Tổquốc.
14.Tôi yêu đất nước Việt Nam.
15 Tôi thích trải nghiệm cuộc sốngở các nền văn hóa khác nhau.
16 Tôi rất thích liên hệvới mọi người đến từcác nền văn hóa khác.
17.Tôi thích đi du lịchở nước ngoài ngay khi có cơ hội trong một khoảng thời gian nào đó.
18.Đối với tôi, việc giao tiếp và trao đổi thông tin với mọi ngườiở các nước trên thế giới là công việc hết sức quan trọng.
19 Tôi luôn mua tủlạnh được sản xuất trong nước.
20 Bất cứlúc nào có thể, tôi luôn dành thời gian nhìn cẩn thận các nhãn mác hàng hóa đểchắc chắn rằng mình muađúngtủlạnh sản xuất trong nước.
21.Tôi luôn ưu tiên chọn các nơi bán hàng trưng bày nhiều tủlạnh mang thương hiệu Việt Nam.
22.Tôi luôn ưu tiên chọn các nơi bán hàng trưng bày nhiều tủlạnh được sản xuất trong nước.
Phần II: Vui lòng cho biết thêm một sốthông tin sau:
23 Xin vui lòng cho biết email của bạn:……
24 Xin vui lòng cho biết giới tính của bạn:……… Nam Nữ
25 Xin vui lòng cho biết mức thu nhập hàng tháng của bạn theo nhóm nào dưới đây:
CHÂN THÀNH CẢM ƠN SỰHỢP TÁC CỦA CÁC BẠN
Thông tin người phỏng vấn
Tên: Cao Quốc Việt (Mr)
Học viên lớp: English MBA K19 – Đại học Kinh TếTpHCM.
Yahoo chat: vietquoccao@yahoo.com.vn
Facebook:www.facebook.com/vietquoccao
Descriptive Statistics
Deviation Variance Skewness Kurtosis Statistic Statistic Statistic Statistic Statistic Statistic Statistic Std Error Statistic Std Error
Cronbach’s Alpha
Cronbach's Alpha Based on Standardized Items
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Cronbach's Alpha Based on Standardized Items
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Cronbach's Alpha Based on Standardized Items
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Cronbach's Alpha Based on Standardized Items
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Cronbach's Alpha Based on Standardized Items
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
EFA
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .817 Bartlett's Test of
Initial eigenvalues Extraction sums of squared loadings
Rotation sums of squared loadings a
Extraction Method: Principal Axis Factoring. a When factors are correlated, sums of squared loadings cannot be added to obtain a total variance.
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser Normalization. a Rotation converged in 5 iterations.
CFA results
Analysis Summary Date and Time
Date: Tuesday, July 31, 2012 Time: 8:59:46 PM
Title so do cfa du lieu 396 chinh thuc 15072012 - mi cac sai so 31072012: Tuesday, July
Your model contains the following variables (Group number 1)
CET4 CET3 CET2 CET1 IPQP4 IPQP3 IPQP2 IPQP1 PAT5 PAT4 PAT3 PAT2 PAT1 COS4 COS3 COS2 COS1 DC4 DC3 DC2 DC1 Unobserved, exogenous variables CET e5 e4 e3 e2 e1
Number of variables in your model: 49
Weights Covariances Variances Means Intercepts Total
Weights Covariances Variances Means Intercepts Total
Assessment of normality (Group number 1)
Variable min max skew c.r kurtosis c.r.
Computation of degrees of freedom (Default model)
Number of distinct sample moments: 253
Number of distinct parameters to be estimated: 59 Degrees of freedom (253 - 59): 194
Regression Weights: (Group number 1 - Default model)
Standardized Regression Weights: (Group number 1 - Default model)
Estimate IPQP4 < - IPQP 697 IPQP3 < - IPQP 909 IPQP2 < - IPQP 710 IPQP1 < - IPQP 717
Covariances: (Group number 1 - Default model)
Correlations: (Group number 1 - Default model)
Estimate IPQP < > PAT 139 PAT < > COS 295
Variances: (Group number 1 - Default model)
Model NPAR CMIN DF P CMIN/DF
Model RMR GFI AGFI PGFI
Model RMSEA LO 90 HI 90 PCLOSE
Model AIC BCC BIC CAIC
Model ECVI LO 90 HI 90 MECVI
Theoretical Model
Date: Monday, September 03, 2012 Time: 9:12:47 PM
Sem 31072012 du lieu final 396: Monday, September 03, 2012 9:12 PM
Your model contains the following variables (Group number 1)
CET4 CET2 IPQP4 IPQP3 IPQP2 IPQP1 PAT5 PAT4 PAT3 PAT2 PAT1 COS4 COS3 COS2 COS1 DC4 DC3 DC2 DC1 Unobserved, endogenous variables CET
DC Unobserved, exogenous variables e5 e4 e2IPQP e9 e8 e7 e6
Number of variables in your model: 47
Number of unobserved variables: 27 Number of exogenous variables: 25 Number of endogenous variables: 22
Weights Covariances Variances Means Intercepts Total
Notes for Model (Default model)
Computation of degrees of freedom (Default model)
Number of distinct sample moments: 210Number of distinct parameters to be estimated: 50Degrees of freedom (210 - 50): 160
Minimum was achieved Chi-square = 321.798 Degrees of freedom = 160 Probability level = 000
Estimates (Group number 1 - Default model) Scalar Estimates (Group number 1 - Default model) Maximum Likelihood Estimates
Regression Weights: (Group number 1 - Default model)
Standardized Regression Weights: (Group number 1 - Default model)
Estimate CET < - PAT 186 CET < - COS 014
The data presents various performance metrics across different categories, with DC showing a range from 0.597 to 0.905, indicating a significant variance in results The CET scores demonstrate consistent performance, with CET4 at 0.733 and CET5 at 0.782 In the IPQP category, scores range from 0.701 to 0.898, reflecting a strong performance trend PAT metrics are also noteworthy, with scores from 0.774 to 0.901, highlighting effective outcomes Lastly, COS scores range from 0.611 to 0.878, suggesting varying levels of success within this category Overall, the data illustrates a diverse performance landscape across the evaluated metrics.
Covariances: (Group number 1 - Default model)
Variances: (Group number 1 - Default model)
Squared Multiple Correlations: (Group number 1 - Default model)
Standardized Regression Weights: (Group number 1 - Default model)
Parameter SE SE-SE Mean Bias SE-Bias
Parameter SE SE-SE Mean Bias SE-Bias
Model NPAR CMIN DF P CMIN/DF
Model RMR GFI AGFI PGFI
Model RMSEA LO 90 HI 90 PCLOSE
Model AIC BCC BIC CAIC
Model ECVI LO 90 HI 90 MECVI
