(Luận văn) antecedents and consequences of status consumption, avidence from vietnam

t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY ng International School of Business hi ep w n lo ad y th ju Vo Thi Thu Trang yi pl n ua al n va ANTECEDENTS AND CONSEQUENCES fu ll OF STATUS CONSUMPTION: oi m at nh EVIDENCE FROM VIETNAM z z k jm ht vb om l.c gm MASTER OF BUSINESS (Honours) n a Lu n va y te re th Ho Chi Minh City - Year 2014 t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY ng International School of Business hi ep w n lo ad ju y th Vo Thi Thu Trang yi pl al n ua ANTECEDENTS AND CONSEQUENCES va n OF STATUS CONSUMPTION: ll fu oi m EVIDENCE FROM VIETNAM at nh z z SUPERVISOR: Dr NGUYEN THI MAI TRANG om l.c gm MASTER OF BUSINESS (Honours) k jm ht vb ID: 22120078 n a Lu n va y te re th Ho Chi Minh City - Year 2014 t to ng CONTENTS hi ABBREVIATION ep ACKNOWLEDGEMENT w ABSTRACT n lo ad CHAPTER - INTRODUCTION ju y th 1.1 Background to the research yi 1.2 Research problem pl ua al 1.3 Research objectives 12 1.4 Methodology 13 n va 1.5 Research Structure 13 n ll fu 1.6 Research scope 14 m oi CHAPTER - LITERATURE REVIEW AND HYPOTHESES 15 nh at 2.1 Literature review 15 z 2.1.1 Collectivism and Individualism 15 z vb 2.1.2 Materialism 17 ht k jm 2.1.3 Status Consumption 18 gm 2.1.4 Life satisfaction 19 om l.c 2.2 Research hypotheses 19 2.3 Conceptual model 23 a Lu 2.4 Summary 24 n th Page | y 3.1.2 Measurement scales 26 te re 3.1.1 Research process 25 n 3.1 Research design 25 va CHAPTER - METHODOLOGY 25 t to ng 3.2 Measurement refinement 29 hi ep 3.3 The quantitative study 30 3.3.1 Sampling and data collection 30 w n 3.3.2 Data analysis 30 lo ad 3.4 Summary 30 y th CHAPTER - DATA ANALYSIS AND RESULTS 32 ju yi 4.1 Data collection 32 pl ua al 4.2 Respondents’ demographics 32 n 4.3 Descriptive statistic 34 va n 4.4 Confirmatory factor analysis (CFA) 34 fu ll 4.4.1 CFA for the first-order constructs 35 m oi 4.4.2 CFA for second-order construct 39 nh at 4.4.3 CFA for the final measurement model 40 z z 4.5 Structural equation modeling (SEM) 44 vb jm ht 4.6 Bootstrap method 47 4.7 Discussion 48 k gm 4.8 Summary 53 om l.c CHAPTER CONCLUSION, IMPLICATIONS, AND LIMITATION 55 5.1 Conclusions about hypotheses and research problem 56 a Lu 5.2 Implications for theory and managerial implications 60 n n va 5.3 Limitations and further research 62 th Page | y APPENDICES 69 te re REFERENCES 64 t to ng LIST OF FIGURES hi Figure 1.1 Population Pyramid of Vietnam 11 ep Figure 2.1 Conceptual model 23 w Figure 3.1 Research process 26 n lo Figure 4.1 CFA model of collectivism 36 ad Figure 4.2 CFA model of individualism 36 y th Figure 4.3 CFA model of life satisfaction 37 ju yi Figure 4.4 CFA model of status consumption 37 pl Figure 4.5 CFA model of materialism 39 al ua Figure 4.6 Final measurement model 43 n Figure 4.7 Structural results (standardized estimates) 45 n va fu ll LIST OF TABLES m oi Table 4.1 Source of data collection 32 at nh Table 4.2 Respondents’ characteristics 33 Table 4.3 Descriptive statistic: Eliminated items 34 z z Table 4.4 Summarized of pvc and pc (first order constructs) 38 vb ht Table 4.5 Summarized of pvc and pc (second order construct) 40 k jm Table 4.6 Correlations (of Materialism) 40 gm Table 4.7 Summary of pvc and pc (final measurement model) 41 Table 4.8 Correlations (final measurement model) 42 l.c om Table 4.9 CFA Summary of eliminated item 42 Table 4.10 Unstandardized structural paths 44 a Lu Table 4.11 Measurement validation 46 n n y te re Table 4.13 Removed items 53 va Table 4.12 Regression Weights (bootstrap standard errors) 47 th Page | t to ng LIST OF APPENDICES hi Appendix A List of in-depth interviews’ participants 69 ep Appendix B In-depth Interview’ refinement measurement scale 69 w Appendix C Questionnaire (English Version) 73 n lo Appendix D Questionnaire (Vietnamese Version) 78 ad Appendix E Descriptive statistics 83 y th Appendix F Summarized results of Confirmatory factor analysis 84 ju yi Appendix G Standardized Regression Weights (Final measurement model) 89 pl Appendix H Final measurement scales 90 n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page | t to ng ABBREVIATION hi ep w n lo CIEM Central Institute for Economic Management CFA Confirmatory Factor Analysis GDP Gross Domestic Product GSO General statistics Office of Vietnam Life satisfaction y th ad LS Materialism MOIT Ministry of industry and trade of the socialist republic of Vietnam MAT ju yi pl al Material values scale RS Gross retail sales of goods and services SC Status consumption SEM Structural equation modeling SPSS Statistical Package for the Social Sciences TE Transitional economy VAMA Vietnam Automobile Manufacturers' Association n ua MVS n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page | t to ng ACKNOWLEDGEMENT hi At first, I would like to express my deep gratitude to my supervisor Dr Nguyen Thi ep Mai Trang for her professional guidance, dedicated support, valuable suggestions, w instructions, and encouragements during the time of doing my research n lo Secondly, I would like to express my appreciation to Prof Nguyen Dong Phong, ad Prof Nguyen Dinh Tho, Dr Tran Ha Minh Quan, Dr Nguyen Phong Nguyen, and Dr Tran y th Phuong Thao for their valuable time as the members of the ISB research committee Their ju pl completion yi comments and meaningful suggestions are significantly contributed to this research al ua Finally yet importantly, my sincere thanks are given to all of my teachers at n International Business School – University of Economics Ho Chi Minh City for their va n teaching and guidance during my Master course ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page | t to ng ABSTRACT hi In the Vietnam context after Doimoi, Vietnam was one of the TEs nations strongly ep affected by culture transitions, young population, economic and population growth The w author uses research methods in marketing with an expectation of at first, investigating the n lo influence of following factors: collectivism, individualism, and materialism on the ad consumption behavior – status consumption and the life satisfaction; secondly, y th strengthening evidence in Vietnam; thirdly, pointing out useful practical and managerial ju yi implications, which support the nation and enterprises to understand consumers’ needs pl Using the data collection of 427 respondents, the author found that life satisfaction is al ua motivated by status consumption, which is motivated by collectivism, individualism, and n materialism Furthermore, the results indicated that collectivism and individualism have a va n positive influence on materialism and coexist in Vietnamese consumers These findings ll fu suggest that the companies should carefully consider the culture elements of their products oi m or services, in order to segment the customers and to plan an adequate strategy Besides, the nh policy markers should state out the policies, which based on the real demand of status at consumption in Vietnam market, in order to increase the life satisfaction of their citizens z z vb k jm ht Key words: status consumption, collectivism, individualism, materialism, life satisfaction om l.c gm n a Lu n va y te re th Page | t to ng CHAPTER - INTRODUCTION hi ep 1.1 Background to the research From Doimoi (Economic Renovation) policy of government in 1986, the new w components of economy have formed Hence, the role of organizations and individuals in n lo providing goods and service is continuously developing The open-door policy attracts huge ad amount of investment from another developed country (Central Institute for Economic y th ju Management, 2012) The new economic reformation in Vietnam has dramatically changed yi the retailing industry A retail sale of goods and services is an important indicator of GDP pl and is the motivation of Vietnam economy This indicator also reflects the consumption al n ua capability of domestic customers Along with economic reformation, in 2008, Vietnam va became a lower-middle-income economy and retail sales index rapidly grew up from 0.7 n bill VND in 1985 to 2325 bill VND in 2012 (General Statistic Office of Vietnam, 2012) fu ll Total retailed sales of consumer goods and services in the first nine months of 2014 rose by m oi 11.1% from the same period in 2013 If the factor of inflation was excluded, it would be 6.2% at nh Totally, retailed sales of goods went up by 10.7%, accommodation and catering services by z 11.9%, traveling service by 17.4% (General Statistic Office of Vietnam, 2014) and other z services by 12.5% This was resulted from many factors, such as the increase in population vb jm ht (up to 1% per year), the young population of "golden age", the growing proportion of middle class, government open-door policies, the increasing of foreign investments, and k gm social exchange resulting in social-psychology shift on consumer values, attitudes and behaviors (Phương Dung, 2013) In depth, some of these change values are materialism, l.c a Lu status consumption om self-perception (individualistic self and collectivistic self), sense of life satisfaction, and Many studies, which are related to materialism, have been investigated all over the n Page | th behaviors, previous studies explore the impact of materialism on compulsive consumption y Otero-Lopez et al., 2011; Olivia et al., 2012; Sharma, 2011…) Among consumption te re or between various demographic variables (age, gender, generation, etc.) (Flynn et al., 2013; n differences of materialism either between collectivistic culture and individualistic culture; va world, essentially the relationship between materialism and consumption behavior; the t to ng I prefer to be straightforward when dealing with people I have just met 29 I enjoy being unique and different from others in many respects Speaking up in public is not a problem for me hi 28 ep w n 30 32 My personal identity independent of others is very important to me 33 Without competition, it is not possible to have a good society 34 I enjoy working in situations involving competition with others 7 7 7 ad Being able to take care of myself is a primary concern for me jm lo 31 ju y th yi pl n ua al n va Life satisfaction 36 Generally, I’m satisfied with my family life 37 Generally, I’m satisfied with my relationships with friends 38 Generally, I’m satisfied with my standard of living 39 In general, I can say I have a good life ll Generally, I’m satisfied with my life as a whole vb fu 35 oi m at nh z z ht k gm III Section C – Background information l.c information will allow me to classify and compare groups of respondents a Lu Gender n Female va Male; om This section of the questionnaire refers to background or biographical information The 24 – 30; 31 – 40; 41 – 50; te re 18 – 23; n Age group in years > 51 y I < > < > < > < > Estimate 853 627 852 -.154 -.129 -.216 275 188 135 210 -.247 -.269 fu ll Table F.5.3 Standardized Regression Weights oi m  MatSucc  MatSucc k om l.c gm n a Lu n va y te re  MatHap  MatHap jm  MatHap  MatHap ht  MatCen  MatHap vb  MatCen  MatCen z  MatSucc  MatCen z  MatSucc  MatSucc at nh MatSucc5 MatSucc4 MatSucc3 MatSucc2 MatSucc1 MatCen4 MatCen3 MatCen2 MatCen1 MatHap5 MatHap4 MatHap3 MatHap2 MatHap1 Estimate 723 620 648 603 714 584 579 542 548 741 715 728 700 632 th Page | 87 t to ng Table F.6 Standardized Regression Weights hi ep w n lo ad ju y th yi pl  MAT  MAT  MAT  COL  COL  COL  IND  IND n ua al  IND  StatusC n va  StatusC  StatusC ll fu  StatusC  StatusC oi m nh  LifeS  LifeS om l.c n a Lu n va y te re th  MatHap  MatHap gm  MatHap  MatHap k  MatSuc  MatHap jm  MatSuc  MatSuc ht  MatSuc  MatSuc vb  MatCen  MatCen z  LifeS  MatCen z  LifeS  LifeS at MatCen MatHap MatSuc Col6 Col5 Col4 Ind7 Ind6 Ind5 StatusC5 StatusC4 StatusC3 StatusC2 StatusC1 LifeS5 LifeS4 LifeS3 LifeS2 LifeS1 MatCen4 MatCen3 MatCen2 MatSucc5 MatSucc4 MatSucc3 MatSucc2 MatSucc1 MatHap5 MatHap4 MatHap3 MatHap2 MatHap1 Estimate 1.125 760 863 577 806 534 838 623 438 689 649 742 566 571 745 720 627 782 838 547 569 494 670 626 639 606 666 762 743 706 689 595 Page | 88 t to ng hi ep w n lo Appendix G Standardized Regression Weights (Final measurement model) Estimate  Col6 COL 570  Col5 COL 814  Col4 COL 528  Col3 COL 701  MatSucc4 SUC 605  MatSucc3 SUC 671  MatSucc2 SUC 659  MatSucc1 SUC 716  Ind2 UNI 622  MatHap5 HAP 728  MatHap4 HAP 738  MatHap3 HAP 722  MatHap2 HAP 687  MatHap1 HAP 620  StatusC1 SC 696  StatusC2 SC 700  StatusC3 SC 629  StatusC4 SC 547  LifeS5 LS 766  LifeS4 LS 746  LifeS3 LS 619  LifeS2 LS 782  LifeS1 LS 824  MatCen2 SUC 616  MatCen4 HAP 631  Ind5 UNI 853  Ind6 COM 626  Ind7 COM 838 ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page | 89 t to ng hi ep Appendix H Final measurement scales No of items 04 w Measure scale n lo Collectivism ad ju y th Success (Materialism) 05 Centrality (Materialism) 04 Happiness (Materialism) 05 Status consumption 05 Life satisfaction 05 Total 31 pl 03 Col3: I will sacrifice my self-interest for the benefit of the group I am in Col4: I often have the feeling that my relationships with others are more important than my own accomplishments Col5: It is important to me to respect decisions made by the group Col6: I will stay in a group if they need me, even when I am not happy with the group Ind5: My personal identity independent of others is very important to me Ind6: Without competition, it is not possible to have a good society Ind7: I enjoy working in situations involving competition with others MatSuc1: Some of the most important achievements in life include acquiring material possessions MatSuc2: I admire people who own expensive homes, luxury cars, and branded clothes MatSuc3: I consider that the amount of material objects people own is a sign of success MatSuc4: The things I own say a lot, about my endeavor in life MatSuc5: I like to own things that attract people MatCen1: I usually concern about acquisition possessions in life MatCen2: The things I own are all that important to me MatCen3: Purchasing things give me a lot of pleasure MatCen4: I like a lot of luxury in my life MatHap1: I have not had all the things I really need to enjoy life MatHap2: I would be happier if I owned nicer things MatHap3: It sometimes bothers me quite a bit that I cannot afford to buy all the things I would like MatHap4: My life would be better if I owned certain things I not have MatHap5: I would be happier if I could afford to buy more things StatusC1: I would buy a product based on their status StatusC2: I am interested in new products with status StatusC3: I would pay more for a product if it had status StatusC4: The status of a product reflects my personality StatusC5: A product is more valuable to me if it has some snob appeal LifeS1: Generally, I’m satisfied with my life as a whole LifeS2: Generally, I’m satisfied with my family life LifeS3: Generally, I’m satisfied with my relationships with friends LifeS4: Generally, I’m satisfied with my standard of living LifeS5: In general, I can say I have a good life yi Individualism Name of items n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th