(Luận văn) key factors affecting house purchase decision of customers in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business t to ng hi ep w n lo ad PHAN THANH SI ju y th yi pl KEY FACTORS AFFECTING HOUSE PURCHASE DECISION OF CUSTOMERS IN VIETNAM n ua al n va ll fu oi m at nh z z SUPERVISOR: DINH THAI HOANG, Ph.D om l.c gm MASTER OF BUSINESS (Honours) k jm ht vb ID: 60340102 an Lu n va ey t re Ho Chi Minh City - Year 2012 ii ACKNOWLEGEMENTS t to ng First of all, I would like to express my deep appreciation to my supervisor, Dr Dinh hi Thai Hoang who instructed and helped me enthusiastically during period of the ep thesis w I also would like to thank you all my colleagues and friends of Hoa Binh Corporation n lo and Sacomreal for their valuable contributions to give comments and suggestion to ad y th revise the questionnaire survey ju I am grateful to the supervisory board for providing me with their available advices yi pl and patient supports when I need al n va and doing thesis n ua I will never forget the friendly postgraduate students for helping me during studying ll fu The most special thanks go to my parents, my brothers and sisters who always create oi m the most convenient conditions for me as well as support me all time at nh z z k jm ht vb om l.c gm an Lu n va ey t re iii ABSTRACT t to The main purpose of the study is to investigate the effecting of key factors on housing ng purchase decision of customers in Vietnam First, a model which is proposed based hi ep on analyzing of previous literature Then the model is tested on a pilot test which is conducted of a small real estate professional group and another group of 15 w respondents, and on a larger survey of 263 samples The study finds out a strong n lo positive relationship between top two factors, including “living space”, “distance” ad and customers’ housing purchase decision The three weaker positive relationship y th ju factors are “feature”, “finance” and “environment” to housing decision makers It is yi also found that there is no difference in decision making of customers according to pl education level n ua al different demographics consisting of gender, age, marital status, monthly income and va Key works: real estate, purchase factors, Vietnam n ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re iv TABLE OF CONTENTS t to ACKNOWLEGEMENTS ii ng ABSTRACT iii hi ep LIST OF TABLES vii LIST OF FIGURES viii w ABBREVATIONS .viii n lo CHAPTER INTRODUCTION 1.1 ad 1.2 RESEARCH PROBLEMS & RESEARCH QUESTIONS 1.3 RESEARCH PURPOSE 1.4 SCOPE OF THE RESEARCH 1.5 RESEARCH STRUCTURES BACKGROUND ju y th yi pl n ua al LITERATURE REVIEW ll fu 2.1 n va CHAPTER LITERATURE REVIEW Feature 2.1.2 Living space 2.1.3 Finance 2.1.4 Distance 2.1.5 Environment 2.1.6 Purchase decision 2.1.7 Demography oi at nh z z k jm ht vb gm CONCEPTUAL FRAMEWORK l.c 2.2 m 2.1.1 om CHAPTER RESEARCH METHODOLOGY RESEARCH PROCESS 3.2 SAMPLE SIZE 11 3.3 MEASUREMENT SCALE 11 an Lu 3.1 3.4 MAIN SURVEY 15 ey Pilot test 11 t re 3.3.2 n Measurement scale 11 va 3.3.1 v 3.5 DATA ANALYSIS METHOD 15 t to ng hi 3.5.1 Reliability measure 15 3.5.2 Validity measure by EFA (Exploratory Factor Analysis) 16 3.5.3 Multiple regression analysis 16 ep CHAPTER DATA ANALYSIS & RESULTS 18 4.1 PREPARATION DATA 18 w 4.1.2 Coding 18 4.2 DESCRIPTIVE DATA 21 4.3 ASSESSMENT MEASUREMENT SCALE 23 lo Editing 18 ad n 4.1.1 ju y th yi Cronbach’s Alpha 23 4.3.2 Exploratory Factor Analysis (EFA) 26 pl 4.3.1 n ua al Assessment of data 26 4.3.2.2 Defining number of extracted factors 27 n fu HYPOTHESES TESTING BY MULTIPLE REGRESSION 30 ll 4.4 va 4.3.2.1 m Checking assumption of Multiple Regression 30 oi 4.4.1 nh Sample size 30 4.4.1.2 Assessment multicollinearity of independent variables 30 4.4.1.3 Normality, linearity, homoscedasticity & outliers 30 at 4.4.1.1 z z ht vb Evaluating the model 31 4.4.3 Evaluating the independent of variables 31 4.4.4 Checking hypotheses of model 32 4.4.5 Analysis effect of control variables by Multiple Regression 34 k jm 4.4.2 om l.c gm CHAPTER CONCLUSIONS AND IMPLICATIONS 35 an Lu 5.3 MANAGERIAL IMPLICATIONS 36 5.4 RESEARCH LIMITATIONS & DIRECTIONS FOR FUTURE RESEARCH 37 ey RESEACH FINDINGS 35 t re 5.2 n RESEARCH OVERVIEW 35 va 5.1 vi REFERENCES 38 Appendix 1: The first draft of the questionnaire 42 t to Appendix 2: The English questionnaire 45 ng hi Appendix 3: The Vietnamese questionnaire 49 ep w n lo 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 an Lu n va ey t re vii LIST OF TABLES Table 3.1: Main factors affecting customers’ housing purchase decision 13 t to ng Table 4.1: Codebook of questionnaire items 18 hi Table 4.2: Characteristics of respondents 22 ep Table 4.3: Cronbach’s Alpha test results 25 w Table 4.4: EFA results 28 n lo Table 4.5: Correlations among variables 29 ad Table 4.6: Coefficient table of MLR 32 y th Table 4.7: Hypotheses results 33 ju yi Table 4.8: Descriptive statistics 54 pl Table 4.9: Cronbach’s Alpha with full items for each constructs 54 al n ua Table 4.10: KMO and Bartlett’s test 56 n va Table 4.11: Total variance explained 56 fu Table 4.12: Correlation among variables (Partial only) 57 ll Table 4.13: Factor Matrix 59 m oi Table 4.14: Factor Correlation Matrix 60 nh at Table 4.15: Model summary 60 z Table 4.16: Anova 60 z ht vb Table 4.17: Casewise diagnostics 60 jm Table 4.18: Residuals statistics 61 k Table 4.19: Cofficients of MLR including Sex_Render 63 gm l.c Table 4.20: Cofficients of MLR including Marital_Render 64 Table 4.21: Cofficients of MLR including Education_Render 64 om Table 4.22: Cofficients of MLR including Age_Render 64 an Lu Table 4.23: Cofficients of MLR including Career_Render 65 n va Table 4.24: Cofficients of MLR including Income_Render 65 ey t re viii LIST OF FIGURES Figure 2.1: Conceptual framework t to ng Figure 3.1: Research process 10 hi Figure 4.1: Scree plot 58 ep Figure 4.2: Regression standardized residual 62 w Figure 4.3: Normal P-P plot 62 n lo Figure 4.4: Scatterplot 63 ad y th ju ABBREVATIONS yi : Exploratory Factor Analysis GSO : Vietnam Government Statistics Office pl EFA n ua al va HCMC : Ho Chi Minh City : Million MLR : Multiple Linear Regression UEH : University of Economic n Mil ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re CHAPTER INTRODUCTION t to 1.1 BACKGROUND ng hi As universal population levels continue to rise, the housing shortage in many ep developing countries has reached critical levels (Morel, 2001, p 1119) Real estate w is one of the most important things to citizens, so “the house purchase decision of n lo them can change their life” (Wells, 1993) The house purchase decisions are ad different from other business decisions due to “the innate, durable and long-term y th characteristics of real estate” It is a highly differentiated product with “each ju yi specific site unique and fixed in location” (Kinnard, 1968) pl al In Vietnam, it is known as the third largest population in South East Asia and ranked n ua the 14th largest in the world in terms of total population Its population estimated of n va 89 million in 2010 (GSO, 2011) The annual average growth population of Vietnam ll fu from 2000 to 2010 was approximately 1.03 million people per year or 1.2% annual oi m growth Particularly, one of the top economic centers of Vietnam is Ho Chi Minh City which has around 7.2 million people as in April 2009, but its actual population nh at is likely to be significantly higher because of unrecorded migration from rural areas z z The real estate market in Vietnam has significantly changed during from the 1990s vb jm ht to now and it might be seen as three times fever and declining prices in the last 20 years Up to the end of 2012, the large real estate outstanding loans and a big k gm number of inventories created a serious crisis However, according to the Deputy l.c Minister of Construction Nguyen Tran Nam, he emphasized that “people’s housing 1.2 RESEARCH PROBLEMS & RESEARCH QUESTIONS an Lu information” om demand is very large and solvency is high, but the real estate market lacked of ey t re Construction surveyed in 44 provinces up to August 30th, 2012, the country now n satisfy customer demands According to incomplete statistics of the Ministry of va In general, the real estate in Vietnam has got many difficulties in making effort to had 16,469 unsold apartments, in which HCMC was 10,108 unsold apartments and t to total number of inventories of low buildings was 4,116, in which HCMC was 1,131 ng ones (Anh, 2012) hi ep Therefore, the Prime Minister stressed that the solution to rescue real estate market should be included in the Resolution of the Government The main reasons of the w n crisis were the real estate market supply did not meet customer demands, the lo ad investors lacked of exact information of customer and real estate market conditions y th “There are two main fields of customer research are how customers go about ju yi making decisions and how decisions should be made In addition, “creating true pl value for customer and customer notion focused approach” is confirmed (Edwards al n ua & Fasolo, 2001) It is found that “customer decision making is one of the most va important areas of customer behavior and it requires gathering a lot of regarding n information” (Bettman et al., 1998 & Simonson et al., 2001) ll fu oi m There have been many published academic research about customer house purchase with variety of both developed and developing countries However, “the national nh at and cultural characteristics play a very significant role in house purchase decision, z that mean finding which is applied in specific context may not extend to another z ht vb context” (Opoku & Abdul-Muhmin, 2010) k jm The real estate in Vietnam has got specific characteristics to which connected gm customer demands closely In recent years, researchers, domestic and foreign l.c companies attracted to real estate field in Vietnam with a number of research works om However, there has been not enough research into the way customers making customer decision an Lu decision to buy real estate as well as which major factors have got relationship with n ey t re questions of the thesis are raised as two following questions: va Consequently, in the term of real estate purchase decision of customers, the research