(TIỂU LUẬN) FACTORS INFLUENCING PARENTS’ FORMULA MILK PURCHASING DECISION FOR THEIR 2 TO 3 YEAR OLD KIDS

NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL - RESEARCH PROPOSAL FACTORS INFLUENCING PARENTS’ FORMULA MILK PURCHASING DECISION FOR THEIR 2-TO 3-YEAR-OLD KIDS Instructor Group Class Group member Hanoi, 11/2020 FACTORS INFLUENCING PARENT’S FORM FACTORS INFLUENCING PARENT’S FO THEIR 2-TO 3-YEAR-OLD KIDS 2.1 Objectives + Identify the factors that have influences on parents’ formula milk purchase decisions for their toddlers + Overview the perspectives of each parent on the formula milk that they are using for their children at the moment + Drawing a reasonable strategic orientation to boost demand of formula milk made by domestic businesses 2.2 Research questions To achieve the objectives above, this research aims to answer these questions: + What are the factors influencing the formula milk brands choices of parents in Hanoi? + How these factors affect the customer's buying decision? + How to gain customer attention and increase the demand for domestic products in Hanoi? Literature review In contemplation of improving child health, feeding practices are the most effective and critical intercession Under-nutrition is one of the major aspects that can cause infantile mortality, it is also the reason that prevents children from reaching their full growing up potential Breastfeeding is considered the best method of feeding that a mother can provide for the babies from birth, around two months, it’s possible to choose powdered milk as a substitute to add to children’s daily meals in addition to breast milk and by six months, the main beverages that babies can consume are formula milk In 2016, an estimated 4299 children were born each day in Vietnam, this led to more and FACTORS INFLUENCING PARENT’S FORMULA MILK THEIR 2-TO 3-YEAR-OLD KIDS more attractions for many foreign and growing-up milk production The dairy industry is growing at a hig continuously increasing In general, th burgeoning, but the domestic products consumers than the products that com our research team decided to take the t influences on parents’ formula milk pu years old toddlers in Hanoi city” as a s aims to identify and analyze the factor choosing formula milk brands of pare to boost the demand and promote dom To indicate the aspects that directly af of our research teams reviewed a total models, domestic models and mix Of the above, the research team select including models from abroad and 3.1 Review oversea research 3.1.1 The five stages model in co factors that influence it (Philip K 2001) According to Kotler, decision making pro Figure 1: Five stages of FACTORS INFLUENCING PARENT’S FO THEIR 2-TO 3-YEAR-OLD KIDS consumer buying decision The five stages model of consumer behaviors is the norms that most consumers have to go through in their process of making decisions for their purchasing It can be described as follows: firstly, customers will recognize the demand they have for a product, after that they will search for the products’ information and alternatives items that are available and suitable with their needs from a wide range of sources In the third stage, customers will compare alternatives and consider which is the best option that they can choose, and the payment will be made In the last stage, the customer will evaluate the usage, whether the product meets their expectation or not, this will decide the option to keep using the product they have previously experienced or choosing another brand As explained by Kotler, in the third stage, Evaluation of alternatives, customers’ decision making can be determined by main factors: (1) Cultural factor, (2) Social factor, (3) Psychological factor and (4) Personal factor They can be FACTORS INFLUENCING PARENT’S FORMULA MILK THEIR 2-TO 3-YEAR-OLD KIDS divided into two categories: cultural and motivated while psychological and perso Figure 2: Four factors influence the buying decision of customers Using these factors for practical application, we can understand the norms that Vietnamese consumers have in their purchasing habits, they can be listed as follow: + Parents may take advice, both directly and indirectly, from their acquaintances and other family members, also, the advertisements that have professional backgrounds (giving advice from doctors or nutritional specialists) tend to gain more trust and attention + One of the preeminent concerns that parents have on the process of raising the children are how to provide the nutritional that their children need in order to grow up healthily Products that are fortified with extra ingredients to support children’ brain and physical development are more likely to be chosen + In most Vietnamese opinions, imported goods and products are always preferred due to their better quality and design This opinion hasn’t changed throughout many Vietnamese generations, even though domestic producers have made many efforts in modernizing the manufacturing lines as well as improving the products’ quality FACTORS INFLUENCING PARENT’S FORMULA MILK THEIR 2-TO 3-YEAR-OLD KIDS For conclusion, the customers will choos value and if that product meets their need long period of time This will lead to a str buying frequency occurs more often and a valuable source of advertisement by giv to other people Hence, the most importan customers is to strengthen the trust of fam businesses need to understand very well t choices 3.1.2 Factors Influencing on the Mothe Formula: A Study in Vavuniya District The research was held in 2018 to clarify f choice in baby formula milk in Vavuniya written by Pavithra.S to point out the abo mentioned several factors affecting to pur (3) features, (4) family and friends’ recom innovative features, (7) promotion effecti user friendliness, (10) stylish appearance The research model uses qualitative and q was conducted by in-depth interviews an survey with a sample size of 50 mothers w Jaffna market and would give insights on Grounded Theory (GT) approach was also factors influencing brand choice of baby Nutritional Content, Forms, Cost, Birth Allergies, Iron Fortified and Availability Conclusion: Sri Lankan parents traditiona for their children That is why they chose their considerations for their children Via FACTORS INFLUENCING PARENT’S FORMULA MILK THEIR 2-TO 3-YEAR-OLD KIDS that the local mothers are especially more match the needs of the society Moreover high-ranking factor that mothers would c for their toddlers Limitation: The research has not gone int them generally In addition, one interview enough to give necessary information sup factors Recommendation: Understand the relatio incidents, income or regulatory satisfac purchasing behavior so that formula milk milk lines and carry out some specific pro 3.2 Review Vietnamese rese 3.2.1 Nghiên cứu yếu tố ảnh hưởng cho trẻ em người tiêu dùng thàn Nhung, 2016) Research on factors affecting consume milk products for children in Danang c Research on factors affecting consumers’ products for children in Danang city, La T out the current situation of consuming fo old, then propose solutions and recomme enterprises in Viet Nam The research had point out a number of f including Reference (asking for opinion o purchase formula milk product); Product …); Price (competitive price, affordab promotion); Distribution (availability in s 10 FACTORS INFLUENCING PARENT’S FORMULA M The research sample collected with the collect data through answering questio The data was analyzed through SPSS in the research: Descriptive statistics, C Result: the research has shown the pos and Marketing factors Customers acce regularly search for the use and origin 21 FACTORS INFLUENCING PARENT’S FORMULA MIL 22 FACTORS INFLUENCING PARENT’S FORMULA MIL 23 FACTORS INFLUENCING PARENT’S FORMULA MIL 24 FACTORS INFLUENCING PARENT’S FORMULA MIL 25 FACTORS INFLUENCING PARENT’S FORMULA MI THEIR 2-TO 3-YEAR-OLD KIDS Research Methodology 5.1 Research design Figure 4: Research design 5.2 Data collection 5.2.1 Secondary data Secondary data is collected from the following sources: + The data from textbooks and the Internet provided the statistics, theories and factors affecting customers’ purchasing decisions in formula milk products 26 + FACTORS INFLUENCING PARENT’S FORMULA THEIR 2-TO 3-YEAR-OLD KIDS The data collected from related articles provided the overview of the parents’ perspectives on the milk products that they purchased 5.2.2 Primary data In this disquisition, two methods to collect primary data are executed: in-depth interview and survey a) In-depth interview: mothers who have children at the age from to and use at least growing-up milk product on the daily meals for their kids were interviewed with open questions as below: What is your full name? Where are you currently working and in what position? How many people are there in your family? How many babies you have? How old are the baby (s) now? What is the current formula milk product that you are using for your baby? Besides, you give your baby any other types of milk? Why did you choose to buy this milk brand? What is your priority when buying the formula milk products for your baby? Before deciding to buy milk from the company, did you consult other consumers about the product? If yes, what information sources you usually refer to? Which factors often make you more concerned, the milk’s price or the nutritional ingredients that the milk contains? What makes you more interested in this factor than the other one? Do you feel satisfied with the current milk brand that you are using for your babies? Have you ever used any other formula milk brand for your babies? If so, can you tell us the outstanding characteristics that the current brand possessed compared to the brand you used in the past? 27 FACTORS INFLUENCING PARENT’S FORMULA THEIR 2-TO 3-YEAR-OLD KIDS Do you still choose the product line that your first baby consumed to feed your second child? Why? 10 How many times a day you usually feed your children? Do you follow the instruction manual printed on the package of the product? 11 Do you think this product line is really suitable for your baby's developmental needs and physical condition? Why? 12 Have you ever had any bad experiences with the product that you’re currently using? Is there any aspect that makes you feel unsatisfied when using this formula for 13 your baby? (origin of product, promotion ) 14 Is there any other reason for you to choose this product other than the quality that it brings? If the current product has a discount, would you buy more than the usual 15 purchasing amount? If a similar dairy product has a discount / promotion campaign, will you 16 continue buying the current brand or will you choose the promotion products? b) + Survey: Sample size: 200 customers According to Tabacknick and Fide (157), in order to achieve the best regression analysis results, the formula n ≥ 8m + 50 ( n: sample size, m: number of independent variables ) must be followed In this research, independent variables are specified by applying the formula, n ≥ x7 + 50 = 106 For this research, 200 is an appropriate size Instrument: Questionnaire - Questionnaire design: consist of main parts: Consumer profile and question A five-point Likert scale that possessed the range from Strongly 28 FACTORS INFLUENCING PARENT’S FORMULA M THEIR 2-TO 3-YEAR-OLD KIDS disagree (=1) to Strongly agree (= attributions of the research model - Questionnaire distribution: the researcher collected data from parents who purchased formula milk products for their to years old children and reside in Hanoi by survey questionnaire distribution in the period of one month, beginning from October,2020 5.3 Data analysis + Secondary data was recapitulated by textual writing-up in paragraphs +Primary data (after being collected from the survey) was processed by SPSS software +In the process of analyzing the major factors that directly affect parents’ buying decision, mean, frequency, and percentage are used On the five-point Likert scale, mean has the range from to If any factors’ mean exists in the area from to 3.7, customers are not influenced by that factor And if the mean is high, over 3.7, it indicates that those factors would affect the customers The moderate variables that we collected were analyzed by ANOVA in the last stage +Analysis method: Factor EFA, Regression, Cronbach’s Alpha, ANOVA for moderate variables Scope of study + Research object: The thesis concentrated on the major factors that influenced the Formula milk purchasing decision of parents in Hanoi + Geographical scope: The survey is conducted in Hanoi + Timing: 29 FACTORS INFLUENCING PARENT’S FORMULA MI THEIR 2-TO 3-YEAR-OLD KIDS Secondary data was collected from O Primary data was collected starting fr Content of Research Report: Title: The main factors that determined the parents’ choice while choosing the formula milk brands for their toddlers Abbreviations List of tables List of figures Table of contents Executive summary: Chapter 1: Introduction 1.1 Rationale 1.2 Research objectives 1.3 Research questions Chapter 2: Theoretical background on formula milk purchase decision and theoretical framework of the study 2.1 Definitions 2.2 Theories of customer purchasing decision 2.3 Previous theories mostly used to analyze customer purchasing decision 2.4 Theoretical framework of the study and hypotheses Chapter 3: Research methodology 3.1 Research process 3.2 Data collection 3.3 Data analysis Chapter 4: Results 30 FACTORS INFLUENCING PARENT’S FORMULA Results of the research: The importance of the factors is Chapter 5: Conclusions and recommendations + Domestic powdered milk firms need to build a channel to advertise their own products and images, not only on television but also on other media such as Facebook, Instagram, or magazines with highlights, focus on branding and development direction of each toddler milk products, concurrently providing customers with information about products, origins and nutritional ingredients In addition to providing essential information to attract customers, the advertisements should invest in images and sound effects that can mesmerize instead of making customers feel uncomfortable when watching + Businesses also need to have a plan to train consultants with knowledge and skills to advise and support customers Follow up, businesses need to have a plan to expand distribution channels and sales systems with an appropriate scale to spread the product awareness and bring it closer to the consumers + When running discount and incentive campaigns, domestic toddler formula businesses should dignify the quality and ethics aspects The products applied in the campaign should have a long shelf life, ensure the 31 FACTORS INFLUENCING PARENT’S FORMULA M THEIR 2-TO 3-YEAR-OLD KIDS quality as all normal product line guarantee the design standard or c + Businesses need to consider developing high quality products to meet the increasingly demanding needs of customers, but still have to ensure price competitiveness In addition, powdered milk firms should strengthen the consumers’ confidence by investing in researching and learning from foreign science, hiring truly knowledgeable experts for support in the development process in order to achieve the best products possible ( References ) Philip Kotler (2001), Marketing Management, Prentice-Hall, Inc, A Pearson Education Company Upper Saddle River, New Jersey ( ) Pavithra.S (2018), Factors Influencing on the Mothers’ Brand Choice in Baby Milk Formula: A Study in Vavuniya District, Sri Lanka , Journal 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(2010), Factors affecting mothers’ choice of breastfeeding vs formula feeding in the lower Umfolozi district war memorial hospital, KwaZulu-Natal, Health SA Gesondheid : Journal of Interdisciplinary Health Sciences, 15 10.4102/hsag.v15i1.475 ( 15 ) WHO/UNICEF (2009),Infant and young child feeding:Model Chapter for textbooks for medical students and allied health professionals,Geneva FACTORS INFLUENCING PARENT’S FORMULA 33 ( THEIR 2-TO 3-YEAR-OLD KIDS 16 ) Sharon Radzyminski & Lynn Clark Callister (2016), Mother’s Beliefs, Attitudes, and Decision Making Related to Infant Feeding Choices, J Perinat Educ, 25(1): 18–28 doi: 10.1891/1058-1243.25.1.18 ( 17 ) Safaa Tawfik, Dina Saied, Ola Mostafa, Marwa Salem,& Eman Habib (2019), Formula Feeding and Associated Factors among a Group of Egyptian Mothers, Open Access Maced J Med Sci.7(11): 1854–1859, doi: 10.3889/oamjms.2019.462 ( 18 ) Sowden, Marwyn & Marais, Debbi & Marais, R (2009), Factors influencing high socio-economic class mothers’ decision regarding formula- feeding practices in the Cape Metropole, South Afr J Clin Nutr 22 10.1080/16070658.2009.11734215 ( 19 ) Lee, Ellie & Furedi, Frank (2009), Follow-on Formula milk: literature review, 10.13140/2.1.2833.0885 ... consumer’s decision in toddlers’ formula milk purchasing 20 FACTORS INFLUENCING PARENT’S FORMULA MIL 21 FACTORS INFLUENCING PARENT’S FORMULA MIL 22 FACTORS INFLUENCING PARENT’S FORMULA MIL 23 FACTORS INFLUENCING. .. 3 FACTORS INFLUENCING PARENT’S FORM FACTORS INFLUENCING PARENT’S FO THEIR 2- TO 3- YEAR- OLD KIDS 2. 1 Objectives + Identify the factors that have influences on parents’ formula milk purchase decisions... MIL 23 FACTORS INFLUENCING PARENT’S FORMULA MIL 24 FACTORS INFLUENCING PARENT’S FORMULA MIL 25 FACTORS INFLUENCING PARENT’S FORMULA MI THEIR 2- TO 3- YEAR- OLD KIDS Research Methodology 5.1 Research