REPORT BUSINESS RESEARCH METHODOLOGY TOPIC factors affecting students choice of coffee shop in ho chi minh city

UNIVERSITY OF ECONOMICS AND FINANCE FACULTY OF ECONOMICS - REPORT BUSINESS RESEARCH METHODOLOGY TOPIC Factors affecting students' choice of coffee shop in Ho Chi Minh City Lecturers NGUYEN THANH LUAN Students NGUYEN DAC TRUONG 205142039 NGUYEN DUC HIEU 205142112 Ho Chi Minh City, October 2022 0 BUSINESS RESEARCH METHOD RUBRIC ASSESSMENT TOPIC: Factors affecting students choice of coffee shop in Ho Chi Minh City STUDENTS’ NAME and ID: Nguyen Dac Truong: 205142039 Nguyen Duc Hieu: 205142112 LECTURER: LUAN THANH NGUYEN BUSINESS RESEARCH METHOD RUBRIC ASSESSMENT Criteria Exceeding S Proficient tandard (1) (0.5) Progressing (0.3) Not meeti Total ng standa rd (0) Introduction (1 point)) Literature revi ew (2 points) Hypotheses de velopment (2 p oint) Methodology (1 point) Results and Di scussion (2 poi nts) Conclusion (1 point) References (1 point) Total Comment: _ _ Ho Chi Minh City, October, 2022 Nguyen Thanh Luan ABSTRACT 0 This is one of the first topics to research scientifically and systematically about coffee shop services in general and factors affecting students' decision to use coffee shop services in the area Ho Chi Minh City in particular The obtained results are to classify the factors affecting the choice of coffee shop in order of priority, respectively, the common perception of the cafe, the social factor, the product characteristics, the The Place element, the Price factor, and the Promotion factor Based on the results that the author's team researched and proposed appropriate and practical directions with today's reality, specifically for the influencing factors From there, coffee shop businesses can refer to it to come up with the right business strategies to attract and achieve business efficiency with the student customer segment I Introduction Problems and research In HCM city, there are cafes everywhere, from small corners to multi-avenues At present, no one can accurately count how many cafes there are in Ho Chi Minh City, because the distribution density of cafes is very high It is especially convenient to serve in a cafe in Saigon, where most of the residents live Work, play, study, and meet your friends in the cafe Obviously, the number of customers of this service industry is extremely large The most typical of that group of customers is students At present, for cafes, the customer base is a group of potential customers who are unwilling to pay high cost for the products Therefore, the needs of the customer base have been ignored and the service has not been noticed But if you look carefully, the characteristics of students are often gathered together with regular frequency With a place where the largest number of schools in the country are concentrated in HCM, reasonable investment will bring huge profits to cafes With such a large customer group, what is the important point for coffee shops to conquer these "gods"? How would you choose a coffee shop among the countless shops in Ho Chi Minh City? Why so many coffee shops meet your needs quite low but exist for a long time while some others with a higher level of response not attract more students? Which standard is the norm for this customer group? The problem here is how to determine the factors affecting students' choice of coffee shop to narrow as much as possible the gap between students' expectations and real coffee shop business services The problem posed here is how to determine the factors affecting students' choice of coffee shop in order to narrow as much as possible the gap between students' expectations and real coffee shop business services Therefore, the topic "Factors affecting students' decision to choose a coffee shop in Ho Chi Minh City " will study and analyze the factors affecting students' decision to use coffee shops This service, at the same time offers solutions to improve and improve the quality of coffee shop business services, to meet the maximum needs of students Objectives - Identify factors affecting students' decision to choose a coffee shop in Ho Chi Minh City - Evaluate the influence of factors on students' choice decisions for coffee shop business services - Provide solutions and recommendations to help coffee shop operators improve and develop this service  The study was conducted to determine the factors affecting students' decision to choose a coffee shop in Ho Chi Minh City Research methods and Procedures The research process was carried out in two steps: Preliminary research and Formal research Preliminary research: Conducted through qualitative research, the group focuses on discussions and interviews to get a better overview and analyze the meaning and add other opinions - Meta-analysis: Using and synthesizing on the basis of previously studied documents, forming a preliminary scale 0 - Discussion and exchange: Meet and discuss with the target group to perform the preliminary assessment and adjust the scale Formal interview questionnaire Formal research: Conducted through quantitative research by direct interviews through questionnaires and using computer tools to process the data Gaps in the research During the implementation, the team encountered certain limitations of the study: Firstly, the scope of the study is the whole of Ho Chi Minh City, the sampling only covers areas with a large concentration of students as well as cafes and entertainment areas frequented by students, so the results are only approximate Secondly, the research topic is based on similar research models, there are no homogeneous models, so the scales and variables in the questionnaire are still subjective Thirdly, the research topic is complex on a diverse research scope but the implementation time is limited, so the data collection may not be large enough to achieve high accuracy as well as lead to the most objective results Fourth, in the process of processing and collecting data by means of a survey, it is not possible to cover and completely cover the research problem, so the data may be omitted and affected by other factors (social environment, geography, etc.) Review Of Literature 2.1 Theory of planned behavior * History and evolution of the theory The theoretical model of rational behavior (TRA) was developed by Fishbein1 and Ajz en1 built in 1975 Put the action manager in the center of the user's actions and define their B ehavior Guide, which in the Behavior Guide is part of a behavior driven system (for example: Their usual feelings of like or dislike lead to behavior) and others are standard subjects (Other people's influences also lead to their regimes) It is a trend-following and trend-following mod el that is more suited for behavior-oriented users than for product or service-oriented users Attitude and behavior before and after the test based on reasonable action theory (Hill, 2003) To explain the previous limitations, we should use the personal concept of behavior to drive behavior, and use the actual definition of behavior and the elements separated from beha vior (Hirnle Deng, 1988) The theory of reasonable action is a model of predicting intention (f ishbein, member in 1975) The model has two main factors: attitude and subjective standard 0 Fishbein (Martin Fishbein, Ph.D): He is a professor in the Department of Psychology and t he Institute for Media Studies at the University of Illinois at Urbana, IL He is a consultant for the International Atomic Energy Agency, the Federal Trade Commission and Warner Commu nications, Inc He is also the co-author of Dr Ajzen's book Beliefs, Attitudes, Intentions and B ehaviors: An Introduction to Theory and Research Ajzen (Icek Ajzen): Is a social psychologist and professor emeritus of the University of Mas sachusetts Amherst, known for his work, with Martin Fishbein, on the Theory of Expected Be havior Ajzen has been ranked as the most influential individual scientist in social psychology for Research Cumulative Impact, and in 2013 he received the Distinguished Scientist Award f rom the Psychological Association Test His research has been influential across fields as dive rse as advertising, health psychology, and environmental psychology, and has been cited more than 200,000 times * Definition of the theory This theory assumes that behavioral intentions lead to behavior and that intentions are determi ned by individual attitudes toward the behavior, along with the influence of subjective norms surrounding the performance of those behaviors (Fishbein and Ajzen, 1975) In which, Attitud 0 e and Subjective Norm are important in behavioral intention + The components in the TRA model include: - Behavior: The actions of the subject are determined by the will of behavior (Fishbein & Ajzen, 1975, Belief, Attitude, Intention and Behavior: An Introduction to Theor y and Research, tr 13.) -Behavioral intention measures the subject's subjective ability to perform a behavior and can be viewed as a special case of belief (Fishbein & Ajzen, 1975, Belief, Attitude, Intention and Behavior: An Introduction to Theory and Resear ch, tr 12.) Determined by an individual's attitude towards behaviors and subjective norms -Attitudes are attitudes toward an action or behavior, expressing an individual's positive or negative perceptions abo ut performing a behavior, which can be measured by synthesis of strong beliefs and assessment of these beliefs (Hale, 20 03) If the outcome is personally beneficial, they may intend to engage in the behavio (Fishbein & Ajzen, 1975, Belief, A ttitude, Intention and Behavior: An Introduction to Theory and Research, tr 13) -Subjective norms are defined as an individual's perception, with important references of that individual, that the beh avior should or should not be performed (Fishbein & Ajzen, 1975) Subjective norms can be measured across people inv olved with consumers, as determined by normative beliefs about behavior expectations and personal motivations to perfo rm in accordance with those expectations ( Fishbein & Ajzen, 1975, Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research, t r 16) 0 Strength of the theory -The TRA model is similar to the three-component attitudinal model, but it combines three components: cognitive, affect ive, and propensity components arranged in a different order from the three-way vertical model element part The attit ude measurement method in the TRA model is similar to the multi-attribute attitude model However, the TRA model ex plains in more detail than the multi-attribute model because there is a more subjective component Limitation of the theory : - The theory of rational action TRA is limited in predicting the performance of consumer behaviors over which they cann ot control because the model ignores the importance of social factors on reality Economics can be a determinant of indiv idual behavior (Grandon & Peter P Mykytyn 2004; Werner 2004) * Theory of Planned Behavior - Given the limitations of the theory of rational action (TRA), Ajzen (1991) improved this model into the theory o f planned behavior (TPB) The theory has been widely used and studied for human behavior, especially those rela ted to the quality of individual and community life - There are three basic determinants in this theory, (1) the individual factor is the individual's attitude towards the behavior about the positive or negative of performing the behavior, (2) about the perceived intention the person's social p ressure, as it copes with perceived normative pressures or compulsions, is called the subjective norm, and (3) ultimately t he determinant of self-perception (self-efficacy) or the ability to perform a behavior, is called cognitive behavioral contro l (Ajzen, 2005) The theory suggests the importance of attitude towards behavior, subjective norm and cognitive behavior al control leading to the formation of a behavioral intention 0 Hypotheses development H1 Product features A product is the result of the production or provision of a service for business or consumption purposes Product attributes create expectations for customers In information economics, product insights generate signals that drive customer expectations (Wehnert et al., 2019a) On the other hand, meeting customer expectations about the product is creating satisfaction and decision to use the product (Wehnert et al., 2019b) Therefore, product quality can be considered as one of the reasons why customers choose to use the product and are satisfied with the product Along with that, previous actual studies (ThG et al., n.d.) has demonstrated the positive influence of the product factor on the selection decision of the people of Ho Chi Minh City, so in the study, the group proposed the following research hypothesis The coffee shop business is a service business, so the coffee shop's products will also be different from normal tangible products Within the limits of this topic, the authors research and propose product characteristics of coffee shops, including: Tangible products are coffee, food and drinks served at the cafe; Intangible products that the shop serves and sells to customers are beliefs, attitudes, style and product quality From there, the group came up with the first hypothesis H1: Product characteristics have an influence on students' decision to choose a coffee shop in Ho Chi Minh City H2 Service The relationship between service and customer satisfaction has been a topic of discussion among researchers for decades Many studies on customer satisfaction in service industries have been carried out (Kumar Baksi & Bhusan Parida, n.d.; Seth et al., n.d.).Services have an impact on customer satisfaction, and indirectly and directly affect customer loyalty (Kumar, 2021) One of the aspects of service in the coffee shop business is the staff's service capacity, attitude, respect, and ability to satisfy customers Many studies have tested the positive relationship of service capacity factor with customer satisfaction (Candidate Ubedullah Amjad Ali SHAIKH & Naveed U r Rehman KHAN, n.d.; Chow & Luk, 2005) In addition, with the increasing demand of people When a number of cafes begin to appear, there is no difference in visible products, and service becomes the best competitive edge This is the factor that most customers will pay attention to and decide whether to use the service or not A cafe with good service areas (excluding other factors) will more or less make a good impression on customers Customers are very good students As long as they are not satisfied with the service of the cafe, they can "turn their backs" Therefore, students are willing to provide more funds for the services they deserve This is obviously reflected in the brand cafes in Ho Chi Minh City Although the price is not less than that of students, these customers are our best choice Therefore, the group put forward the second hypothesis H2: Service has an influence on students' decision to choose a coffee shop in Ho Chi Minh City H3 Tangible Media 0 When going to a coffee shop, students not simply buy coffee The problem is that they also "buy" the services, facilities of that cafe for a certain period of time The tangible facilities such as facilities, equipment, service space of the cafe will be one of the "products" that customers who are students want to use when coming to the cafe Maybe it's not the coffee shop they frequent Therefore, when faced with choices when deciding to go to a coffee shop, this group of customers will be greatly affected when they see certain differences in tangible means between shops Depending on the needs at the time of use in terms of space, wifi, location that customers will make a decision (Lee & Jeng, 2003) For that reason, the group put forward the third hypothesis H3: Tangible means have an influence on students' decision to choose a coffee shop in Ho Chi Minh City H4: Price Within the defined scope, the payment amount of a product or service Broadly speaking, price is the total value that consumers spend in exchange for products or services (Kotler, 2005) When purchasing a product, customers always consider the value between their required value and the value of the required product, and they always hope that these two factors are equal or equal in value, which may lead to higher cost of the product Product price creation attracts or returns customers, service (Monroe, 2012) especially when price is a function of product quality In a competitive environment, customers are usually used to comparing different suppliers (Shankar & Rangaswamy, 2001) this is even more important for products of a clearly standardized nature Many different studies show the relationship between product and service prices and customer satisfaction and choice decisions(Opata et al., 2021; Shankar & Rangaswamy, 2001), in which the perception of a good price will create satisfaction and influence the consumption decision of customers In addition, the world is in the development stage of industrial revolution 4.0- Network revolution, which includes the application of virtual reality technology, Internet and objects (IoT), 3D printing, big data and artificial intelligence in various fields of life and economy In order not to reduce the consequences of business, especially the service enterprises, they are required to constantly change their service enterprises to meet the market demand In addition, with the convenience of the Internet, customers can easily search for information and compare the prices between cafe business models, which is also one of the behaviors that have an impact on customers According to these conclusions, the fourth Hypothesis: Prices will affect the choice of cafes for college students in Ho Chi Minh City H5: Distribution system The distribution system includes the processes, methods and tools you use to provide your virtual products to your service personnel1 In Ho Chi Minh City - the largest economic center in the country with a population density of 3,888 people/km2 (in 2015)2, it is understandable that coffee shops are developed and densely Nâng tâầm d ịch vụ (translated by Trâần Lê), Nhà xuấất trẻ, Ha Noi, Viet Nam, p 329 Sốấ liệu Tổng cục Thốấng kê, 2015 0 distributed The presence of many cafes means that students in this area will have a variety of choices when they need to use it However, the inevitable consequence is the difficulty of making decisions Based on the initial criteria that I have set to choose the restaurant, but also inevitably the obstacles of geographical location, so customers will have alternatives to meet their choices Therefore, the distribution of branches and coffee shop chains has a great impact on whether students can easily use the products of that store or not So, we put forward the fifth hypothesis H5: Location has an influence on students' decision to choose a coffee shop in Ho Chi Minh City H6: Promotion Although the price difference between cafes is not expected, students pay special attention to the promotion activities of shops, especially shops (such as Cheese coffee, Starbucks coffee, etc.) Under the viaduct, this customer can choose not to go to the cafe you are familiar with if there is an opportunity At the same time, it also affects consumers' needs and gets the recommended intimate customer psychology We hypothesize the sixth hypothesis H6: Promotion also has an influence on students' decision to choose a coffee shop in HCMC H7: Social factors At present, consumers’ shopping process is influenced by external factors, especially social factors, such as reference group, family, role and social status Factors influencing the purchase/use of services and products (Kotler et al., n.d.) Connected with the world we live in now a day the power of social harmony is constantly increasing in various fields Customers are paying more and more attention to the opinions of other customers Research shows that revealed that 83% of examiners in 60 countries rely on friends and family as the "most reliable advertising" source, and 66% pay attention to the opinions of others online (Rummo et al., 2020; Shoaie et al., 2015) Particularly for coffee shops, students are more easily influenced by reference groups because they are the ones who confirm the quality of that coffee shop Therefore, the group put forward the seventh theory H7: Social factors determine the cafe choice of college students in Ho Chi Minh City Summary This part introduces the overview, related concepts and theoretical basis of cafe business market The influencing factors determine the choice attitude and related research mode of college students' coffee in Ho Chi Minh City, and suggest the scope of the research object * Conceptual Framework The conceptual framework shown in this figure is based on the hypotheses discussed above to assess the impact of those variables on students' intention to choose a coffee shop 0 Methodology Research methodology Data were collected from several locations in the Ho Chi Minh City area, due to the relativ ely high population density (9.35% of the population of Vietnam) Website: https://worldpopulationreview.com/countries/vietnam-population In Ho Chi Minh City, sensory evaluation shows that more and more people agree with the number of cafes Along with that, the trend can be seen clearly, in recent years a large number of y oung people participating in the market have put pressure on the market, especially customers who are students, who have a lot of leisure time free time and have the need to frequent cafes, whether at street cafes or expensive famous brand cafes Website: https://thanhnien.vn/doi-song/ban-hieu-gi-ve-ca-phe-nguon-goc-ca-phe-viet-nam-59973.html For cafes, the customer base is a group of potential customers who are unwilling to pay high cost for th eir products So the needs of the customer base have been ignored and the service has not been noticed But if you look carefully, the characteristics of students are often gathered together With one place, when the large 0 st number of schools in the country are concentrated in TP, a reasonable investment can make a huge profit for cafes Website: https://diendantuyensinh24h.com/danh-sach-cac-truong-dai-hoc-khu-vuc-tp-hcm/ Besides the traditional coffee shop models such as toad coffee, sidewalk coffee, flat coffee or small coffee shops, the introduction of large coffee chain brands from abroad into the Vietnamese market such as Starbuck, The Coffee Bean, and the formation of domestic brands such as Trung Nguyen, Highlands Coffee or The Coffee House have created a diverse and dynamic coffee business market, targeting many different customers According to a report by market research firm Euromonitor, the coffee shop chain model in Vietnam is growing at about 7% a year (https://vnbusiness.vn/business-doanh-nghiep/cuoc-dua-chuoi-ca-phe1071197.html) It is predicted that the coffee chain will flourish in the next few years and gradually improve with the growth of the independent coffee shop model The minimum sample was estimated using G*Power software to be 103 given the presence of exogenous constructs and a significance level of 0.05 to achieve a statistical power of 95% As such, the sample size of 120 obtained from the distribution of 120 surveys which translates to a response rate of 100% is sufficient Table - Measurement items Constructs and adapted sources of survey items Constructs Measurement items Sources * The influence of factors related to Product Features (TPF) TPF1 I feel confident about the quality of the products at the coffee shop I usually choose choose (ThG et al., n.d.) TPF2 I see the coffee shop's products have their own characteristics TPF3 I feel that the style of the shop is suitable for the purpose of choosing a cafe (Wehnert et al., 2019a) TPF4 Regularly develop new products to serve the diverse needs of customers TPF5 The quality is always the same at all shops (Wehnert et al., 2019b) * The influence of Service-related actors ( TA ) TA1 TA2 TA3 TA4 n.d.) The restaurant staff has a cheerful, friendly and polite service attitude The service style of the restaurant has its own characteristics and professionalism (Kumar, 2021) The staff handles the business quickly and accurately I am satisfied with the service waiting time (Kumar Baksi & Bhusan Parida, n.d.; Seth et al., TA5 Shop always updates information, responds quickly to customer comments directly, using social networks 0 (Candidate Ubedullah Amjad Ali SHAIKH & Naveed Ur Rehman KHAN, n.d.; Chow & Lu k, 2005) * The influence of tangible media (IM) IM1 IM2 The campus of the cafe is clean and hygienic Arrange transaction counters and reasonable tables and chairs for customers IM3 Convenient parking ng, 2003) IM4 IM5 (Lee & Je Toilets are arranged clean, meeting the needs of use The system of equipment such as air conditioners, fans, tables and chairs, sound, Wifi is fully installed to meet your needs * Influence of price ( IP) The price is suitable for my financial ability IP1 IP2 The price matches the quality (Kotler, 2005) IP3 Prices are uniform across branches (Monroe, 2012) IP4 The product of the coffee shop you choose has a lower price than the price of a coffee shop with a similar model * Influence of Location (IL) IL1 IL2 The location of the shop is in convenient places for me to easily find and move The location of the shop is near the area where I live, study, and work (in 2015) * Effect of Promotion (EP) EF1 Regularly have promotions, discounts, vouchers, bogo when developing new products, new branche s EF2 Regularly have special programs for loyal customers, members EF3 The promotion program is widely applied to Most customers (such as Cheese coffee, Starbucks coffee, etc.) EF4 Promotion programs associated with other businesses (For example: Order a car on Grab app to accumulate points to redeem vouchers, receive discounts ) * Social factors (SF) SF1 Friends influence my decision to choose a cafe al., 20 15) (Rummo et al., 2020; Shoaie et SF2 Celebrity, my idol is the owner, the representative face of the cafe influence my decision to choose a cof fee SF3 Relatives influence my decision to choose a coffee shop (Kotler et al., n.d.) SF4 I choose a coffee shop because many people trust it * Decided to choose a coffee shop (DS) DS1 I am satisfied with my decision to choose a cafe DS2 I will continue to go to the coffee shop of my choice DS3 I am ready to give feedback, opinions,reviews about the restaurant that I have chosen DS4 I would gladly recommend my coffee shop of choice to others Results 5.1 Data Analyeses The partial least square structural equation modeling (PLS-SEM) method in Smart-PLS 4.0 (Chiu et al., 2009) was used to analyze the study model depicted in Fig Due to the fact that PLS does not require a multivariate normal distribution, it is ideal for investigations with small sample sizes (Hew et al., 2016; Lee et al., 2015) Furthermore, PLS-SEM is appropriate for complicated models with first order and second order components, according to (Maciej Serda et al., 2013) PLS-SEM is appropriate for this study for these reasons As indicated by Wong, Tan, Tan, and Ooi, the analysis was conducted in two steps (2015) Prior to evaluating the structural model and testing hypotheses, the measurement model's validity and reliability are evaluated The measurement model's common method variance is assessed before using this two-step procedure Additionally, following the two-step strategy, the mediating roles that mediators played, the predictive relevance, and the effect sizes of the endogenous latent variables are provided 92 is the recommended minimum sample size for PLS-SEM analysis, according to Wong (2013), even when using the most complex model with ten arrows pointing to a construct Alternately, based on the findings, it was determined that the 115-person sample size was enough for this investigation 5.2 Demographic profiles All demographic information for the survey in HCMC This HCM is presented in Table The majority of the 115 respondents were men (66 people) accounting for 57.39%, women (49 people) accounting for 42.61% and were in the 20-22 age group most of the time best In addition, from the survey, we realize that a fairly large component of the sample includes respondents with a "High school/University" education, accounting for 99.1% Most people residing in Ho Chi Minh City make up the majority, and the majority of respondents have an incomefluctuating in the 3-5million VND per month Last but not least, 98.26% know the brands coffee shops They said that quality and Coffee shop space are the things that motivate them to to visit 3-5 times in a week, accounting for the highest rate of 33.91%.On average 15 drinks they used in a month Table - Demographic Profiles Descriptive characteristics of the participants 0 Demographic characteristics Count Gender Description Percentage (%) Male 66 57.39% Female 49 42.61% Age 16-18 years old 6.96% 18-20 years old 41 35.65% 20-22 years old 65 56.52% > 22 years old 0.87% Academic level University 87.83% Secondary school 0.87% High school 11.30% 101 13 Are you living in Ho Chi Minh City? Yes 82.61% No 17.39% 95 20 How much times a week you usually go to a cafe ? > 10 10 8.70% 1-3 31 26.96% 3-5 39 33.91% 0 5-10 35 30.43% Do you know these coffee shops? (Highland, Trung Nguyen, Phindeli, The Coffee House, ) Yes 113 98.26% No 1.74% Cost of living per month? 3-5million dong 31 26.96% 5-8 million dong 25 21.74% 25 21.74% 8-10 million dong < million dong 23 20.00% 11 9.57% > 10 million dong In the past year, how much drinks did you drink at cafes? 2 3 17 18 14 8 10 1.80% 5.41% 2.70% 15.32% 16.22% 12.61% 1.80% 7.21% 1.80% 2.70% 12 13 15 17 22 23 30 0.90% 0.90% 0.90% 4.50% 0.90% 0.90% 1.80% What is the top criteria when you choose a coffee shop Multiple options \ 0.87% Quality 24.35% Reasonable price 13.04% Coffee shop space 41.74% All factors above 0.87% Service attitude 6.96% Location of Coffee shop 12.17% 28 15 48 14 5.3 Assessing the outer measurement model Composite reliability (CR) and Cronbach’s Alpha were utilized to test reliability With reference to Table3, all the values of CR and Cronbach’s Alpha are 0.82 and above This means that all of the construct measures used in this study are very reliable (Hair et al., 2014) Futhermore, convergent validity is also achieved as all the constructs’ Average Variance Extracted (AVE) are above 0.50 whereas every measurement item’s outer loading value is above 0.70 (Hair et al., 2014) Besides, Table reveals that the indicators are heavily loaded on their respective constructs, which undermines discriminant validity Table3 Loadings, Cronbach’s Alpha, Composite reliability, and Average Variance Extracted 0 DS EP IL IM SF TA TPF Notes: Cronbach's alpha 0.85 0.805 0.702 0.736 0.853 0.83 0.877 Composite reliability (rho_a) 0.885 0.823 0.715 0.749 0.863 0.848 0.942 Composite (rho_c) 0.908 0.885 0.87 0.851 0.911 0.899 0.914 reliability Average (AVE) 0.768 0.719 0.769 0.657 0.775 0.748 0.728 variance DS= (Customer’s decision); EP= (Promotion); IL= (Location); IM= (Tangible media); IP= (Price); SF= (Social Factor); TA= (Service); TPF= (Product features) DS EP IL IM IP SF TA TPF DS1 0.796 DS2 0.909 DS3 0.92 EP2 0.865 EP3 0.779 EP4 0.897 IL1 0.855 IL2 0.898 IM2 0.728 IM4 0.868 IM5 0.829 IP2 0.813 IP3 0.924 IP4 0.9 SF1 0.936 SF2 0.801 SF4 0.853 TA2 0.802 TA3 0.888 TA4 0.916 TA5 0.801 TPF1 0.772 TPF2 0.945 Table Cross Loadings DS1 DS2 DS3 EP2 EP3 EP4 DS 0.796 0.909 0.92 0.721 0.796 0.909 EP 0.779 0.897 0.824 0.865 0.779 0.897 IL 0.309 0.4 0.416 0.5 0.309 0.4 IM 0.378 0.333 0.376 0.26 0.378 0.333 IP 0.252 0.417 0.381 0.365 0.252 0.417 SF 0.63 0.782 0.936 0.853 0.63 0.782 TA 0.167 0.267 0.276 0.239 0.167 0.267 TPF -0.06 0.054 0.048 0.129 -0.06 0.054 extracted IL1 IL2 IM2 IM4 IM5 IP2 IP3 IP4 SF1 SF2 SF4 TA2 TA3 TA4 TA5 TPF1 TPF2 TPF3 TPF4 TPF5 0.356 0.4 0.281 0.367 0.345 0.311 0.352 0.406 0.92 0.704 0.721 0.153 0.303 0.284 0.164 0.01 0.018 0.018 0.048 0.068 0.379 0.465 0.23 0.327 0.349 0.331 0.344 0.414 0.824 0.63 0.865 0.154 0.274 0.278 0.175 0.012 0.078 0.025 0.042 0.032 0.855 0.898 0.299 0.449 0.352 0.454 0.637 0.567 0.416 0.426 0.5 0.038 0.055 0.189 0.18 0.049 0.059 0.039 -0.038 -0.021 0.488 0.33 0.728 0.868 0.829 0.48 0.503 0.524 0.376 0.343 0.26 0.25 0.387 0.491 0.488 0.175 0.166 0.158 0.185 0.22 0.616 0.504 0.346 0.549 0.478 0.813 0.924 0.9 0.381 0.427 0.365 0.091 0.097 0.273 0.312 0.042 0.051 0.023 -0.016 0.016 0.412 0.486 0.288 0.345 0.276 0.355 0.418 0.407 0.936 0.801 0.853 0.194 0.242 0.339 0.19 0.026 0.08 0.03 0.022 0.001 0.019 0.216 0.582 0.346 0.248 0.202 0.181 0.23 0.276 0.256 0.239 0.802 0.888 0.916 0.801 0.346 0.392 0.522 0.581 0.542 -0.02 0.09 0.225 0.122 0.129 0.094 0.017 0.003 0.048 -0.03 0.129 0.576 0.417 0.388 0.372 0.772 0.945 0.861 0.782 0.73 Notes: DS=(Customer’s decision); EP=(Promotion); IL=(Location); IM=(Tangible media); IP=(Price); SF=(Social Factor); TA=(Service) ; TPF=(Product features) 5.4 Structural model The structural model is the next step after confirming the measurement model The results in Table a nd Fig.2 show that besides H3 and H6, all other hypotheses were supported Hypothese s H1 H2 H3 H4 H5 H6 H7 PLS Path EP -> SF IL -> SF IM -> SF IP -> SF SF -> DS TA -> SF TPF -> SF Original sample (O) 0.83 0.085 -0.037 0.055 0.909 0.081 -0.028 Standard Sample deviation mean (M) (STDEV) 0.822 0.052 0.087 0.05 -0.026 0.06 0.048 0.044 0.911 0.02 0.084 0.061 -0.038 0.051 Remarks T statistics (| O/STDEV|) 16.107 1.681 0.618 1.264 45.338 1.323 0.539 P values 0.000 0.033 0.537 0.020 0.000 0.186 0.049 Notes: DS= (Customer’s decision); EP= (Promotion); IL=(Location); IM= (Tangible media); IP= (Price); SF= (Social Factor); TA= (Service); TPF= (Product features) 0 Supported Supported Unsupported Supported Supported Unsupported Supported Discussion Based on the analysis of research results, it is shown that in order to attract students to increase their decision to choose a coffee shop, according to the authors, coffee shops in Ho Chi Minh City need to focus resources to improve their weaknesses Factors affecting the decision to choose a coffee shop in order of priority are the overall perception of the cafe, the Social Factor, the Product features, the Location, the Service, the Price and Promotion element 5.1 The impact of Product Features Nowadays, with a higher standard of living, students tend to care more about product quality than pric e It seems that with students, coffee shops have not done well in keeping the quality of their products at the hi ghest level In addition, in recent times, more and more cases related to drink safety, origin and quality of beve rage products have been exposed and spread strongly through many media Information makes consumers mo re confused and concerned about quality issues (Lee et al., 2015) Therefore, coffee shops should also pay atte ntion to this issue through: ensuring hygiene in the processing stage, ensuring the quality of raw materials In addition, the development of an exclusive drink line, enhancing the taste, and developing new products for the cafe is also one of the factors that help the cafe attract and retain students 5.2 The impact of Service In order to gain competitive profits and improve competitiveness, investment in manpower, especially service personnel, is the most important factor Nowadays local cafes don't consider human investment for a long time, and this is the key point Most bars only pay attention to the main service personnel, but ignore the services nearby such as vehicles, safety and hygiene Therefore, cafes need to improve their services to have more attractive media, and customers will visit more, which will ultimately make a higher profit (Deogaonkar & Washimkar, 2014) Ultimately in order to create positive feelings from customers, every cafe must let customers see the visible value, the actual value and feel the different values of customers for service 5.3 The impact of Price 0 For the coffee shop market in Ho Chi Minh City having a relatively equal price level, there is not a big price difference in the same customer segment as well as in the same business model, especially the coffee shop model targeting students, so students seem to only use price as a reference factor and relatively low influence in the decision to choose a cafe With student cafeteria spending limited, cafes can use the advantages of size to offer prices that are more affordable than students, or the same price but more expensive Increasing the volume, quantity, investment in quality, product benefits will help the coffee shop improve its competitiveness compared to other direct competitors in the same coffee shop business (Chen et al., 2020; Keil et al., 2001) 5.4 The impact of Promotion Promotion is the factor that has the weakest influence on the decision to choose a student cafe in Ho Chi Minh City, but this is a factor that has many statistically significant differences in the degree of influence by promotional factors between male and female customer groups Exactly, women will pay more attention to this Promotion factor, will also have a higher tendency to choose that cafe In fact, the Promotion element is not very effective in attracting students Students are inherently less affected by the price factor because of the low difference between cafes, so the extra discount may sway the decision of this group of customers, but not their behavior The truth is, promotions at student cafeteria models are also quite scarce However, with the current market when the coffee shop business is entering the saturation phase, fierce competition when there is the appearance of milk tea shops, the combination of coffee shop Promotion in its marketing strategy to increase its competitiveness and attract students is essential (Chen et al., 2020) 5.5 The impact of Location This factor has a strong impact on the behavior of students in choosing a cafe in Ho Chi Minh City today In fact, students' choice of coffee shop based on the location of the coffee shop is often heterogeneous, sometimes they prefer to go to cafes near school or work to facilitate group study, but it's not uncommon for them to choose to go to larger, more remote places to relax or meet friends; Sometimes students like to go to cafes in the central location, but many small cafes, located deep in the alley, always attract a large number of customers every day Therefore, students' choice of coffee shop location often depends on their mood and personal preferences However, after this study, the team found that if a coffee shop wants to be more attractive, it should have a nice, spacious, airy, easy-to-find location to make a good impression on customers Besides, coffee shops with many branches will easily reach more customers, increasing awareness for their coffee shop brand You need to carefully evaluate the situation of the population, traffic, and visitors in the area you choose to open a restaurant, then decide whether to open a shop or not and in what style to open the shop accordingly It is necessary to consult many people, especially those with experience in this field because in addition to the necessary knowledge, they also have a very reliable intuition when choosing a business location In addition, no matter where the coffee shop is located, regardless of the distribution density, the shop also needs to pay attention to the style and distinctive features so that customers can easily recognize the shop in the current coffee shop market (Yen et al., 2020) 5.6 The impact of Social Factor Social factors have a relatively strong impact on the choice of coffee shop of students who are students Today, in the age of connectivity, an individual customer determines his or her own attitude towards the coffee shop brand In the connected age, the initial appeal of a brand is influenced by the surrounding 0 community Students learn more about the brand that attracts them from their friends or directly from the brand They contact friends for advice, search for brand reviews online(Chen et al., 2020; Deogaonkar & Was himkar, 2014; Kluza et al., 2021) Update new, attractive and interesting information to attract students' interest, bring psychological feelings about the story, sweet feelings to create more favorable effects through: - Social network: Popular social networking channels today: Facebook, WhatsApp, Instagram, LinkedIn, Zalo help increase interaction with students Today, most students know about their favorite coffee shop through social media channels The image of the cafe, food, drink, and space shared on social networks with fast spreading speed and cost savings is what this form of marketing brings to your brand - Put banners on online newspapers, create Youtube channels to share with the community, ask KOLs – celebrities and influencers, write introductions… Bring your coffee shop to culinary social networks are very "hot" in Vietnam such as Foody, Lozi, Meete to receive "review" of customers will also create good interaction - Reaching customers through the website: On the website, news on activities, business, promotions or feedback channels for customers' comments and suggestions will also be a reliable communication channel for customers your brand In addition, maximum use in doing SEO helps the brand's brand quickly be found and known by students - Use Social Listening: Listen and analyze customer opinions based on what they discuss on social media This is an effective tool for your coffee shop to see how consumers' feedback and interactions are with their products, thereby promptly adjusting online communication plans in a timely manner, building Build and develop a stronger brand of the shop In short, consumer-led information generation strategies will instill confidence in students when choosing your coffee shop brand Conclusion This study aims to analyze the issues affecting the choice of coffee shop of students who are students; proposes a direction to build business strategies, develop products and improve the quality of coffee shop business services to meet the needs of the target customer group which is students Based on the results that the author's team researched and proposed appropriate and practical directions with today's reality, specifically for the influencing factors From there, coffee shop businesses can refer to it to come up with the right business strategies to attract and achieve business efficiency with the student customer segment References: Chen, P., Zhao, R., Yan, Y., & Li, X (2020) Promotional pricing and online business model choice in the presence of retail competition Omega (United Kingdom), 94 https://doi.org/10.1016/j.omega.2019.07.001 Deogaonkar, A., & Washimkar, G (2014) Impact of Changes in Service Sector in Shaping Business and Society T elecommunication Industry Procedia Economics and Finance, 11, 495–499 https://doi.org/10.1016/s2212-56 71(14)00215-9 Keil, S K., Reibstein, D., & Wittink, D R (2001) The impact of business objectives and the time horizon of perfo rmance evaluation on pricing behavior In Intern J of Research in Marketing (Vol 18) www.elsevier.comrloc aterijresmar 0 Kluza, K., Ziolo, M., & Spoz, A (2021) Innovation and environmental, social, and governance factors influencing sustainable business models - Meta-analysis In Journal of Cleaner Production (Vol 303) Elsevier Ltd https:/ /doi.org/10.1016/j.jclepro.2021.127015 Lee, M Y., Jackson, V., Miller-Spillman, K A., & Ferrell, E (2015) Female consumers’ intention to be involved in fair-trade product consumption in the U.S.: The role of previous experience, product features, and perceived b enefits Journal of Retailing and Consumer Services, 23, 91–98 https://doi.org/10.1016/j.jretconser.2014.12.0 01 Yen, B T H., Mulley, C., Burke, M., & Tseng, W C (2020) Parking and restaurant business: Differences in b usiness perceptions and customer travel behaviour in Brisbane, Queensland, Australia Land Use Policy, 92 ht tps://doi.org/10.1016/j.landusepol.2019.01.021 Candidate Ubedullah Amjad Ali SHAIKH, M., & Naveed Ur Rehman KHAN, P (n.d.) 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