What marketing factors affect to buying decision making of nhon hoangs products in vietnam

- RESEARCH PROJECT (BMBR5103) WHAT MARKETING FACTORS AFFECT TO BUYING DECISION MAKING OF NHON HOANG PRODUCTS IN VIETNAM ? STUDENT’S FULL NAME : TRAN HOANG TRUC STUDENT ID : CGS00019593 INTAKE : 09/2015 ADVISOR’S NAME & TITLE : DR BUI PHI HUNG FEBRUARY 2017 - RESEARCH PROJECT FEBRUARY, 2017 AVISOR’S ASSESMENT ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… Advisor’s signature TRAN HOANG TRUC Page II - RESEARCH PROJECT FEBRUARY, 2017 ACKNOWLEDGEMENT I would like to express my grateful to all persons who gave me the possibility to complete this study Through the essays requires reasoning and analysis from reality, I have been trained how to deduce the problems and know how to apply literature reviews into work For me, MBA program is not just simply as a normal course, it represents for my effort and attempt, where I was exposed to extensive knowledge of many authors First and foremost, I want to give big thanks to Open University, HUTECH University and the lectures in MBA OUM program, who have imparted knowledge and valuable experiences to us In particular, I would like to express my sincere gratitude to Dr Bui Phi Hung, who has spent much time and effort to help me complete the dissertation Simultaneously, I also want to thank my classmates for their support for this thesis in particular and the whole program in general I also want to give my big thanks to Nhon Hoang company, partners and customers of Nhon Hoang company who have supported me to complete the data collection for my research project Once again, thank everyone for having accompanied me throughout this journey Ho Chi Minh, 2017 TRAN HOANG TRUC Page III - RESEARCH PROJECT FEBRUARY, 2017 EXECUTIVE SUMMARY The main objective of this research is to review the present marketing mix affects to the customer decision making This research provides an idea to the marketers and can be used as tools to assist them in pursuing their marketing objectives The research was conducted from November 2016 to Feb 2017 The targeted customers participating in the research are the customers of Nhon Hoang chosen randomly After reviewing the literature, Marketing Mix model of Kotler, P., & Armstrong, G (2009) are applied as the conceptual framework to measure what marketing factors affect to buying decision making of Nhon Hoang products in Vietnam The study only uses quantitative approach The finding of this study also show which dimensions and items are important to enhance sales figures of Nhon Hoang products In details, through five stages of the process, all of marketing factors have effect to customers’ buying decision making Even though there are some limitations in this research, this study might help Nhon Hoang company understand their customer buying behavior Based on the finding and suggestion, managers can know which one they need to change for improving and developing more in the future TRAN HOANG TRUC Page IV - RESEARCH PROJECT FEBRUARY, 2017 TABLE OF CONTENTS CHAPTER : INTRODUCTION 1.1 Introduction 1.2 Background 1.3 Company introduction 1.4 Product introduction 1.5 Research Question 1.6 Research Objective 1.7 Research scope 1.8 Thesis outline 1.9 Conclusion CHAPTER : LITERATURE REVIEW 2.1 Marketing mix 2.1.1 Product 2.1.2 Price 11 2.1.3 Place 13 2.1.4 Promotion 19 2.2 Consumer behavior 22 2.3 Consumer decision making process 25 2.4 Marketing strategy and consumer behavior 25 2.5 The effect of the elements of marketing mix on consumer behavior 27 2.5.1 Product – Consumer behavior 27 2.5.2 Price – Consumer behavior 27 TRAN HOANG TRUC Page V - RESEARCH PROJECT FEBRUARY, 2017 2.5.3 Place – Consumer behavior 28 2.5.4 Promotion – Consumer behavior 28 2.6 Conclusion 29 CHAPTER : RESEARCH METHODDOLOGY 30 3.1 Introduction 30 3.2 Research progress 30 3.3 The Sampling Method 33 3.3.1 Sampling technique 33 3.3.2 Sample size 34 3.4 Questionnaire 34 3.5 Reliability 36 3.6 Ethical consideration 37 3.7 Conclusion 38 CHAPTER : FINDING 39 4.1 Descriptive statistics 39 4.2 Reliability test – Verify Cronbach’s Anpha 46 4.3 Exploratory Factor Analysis (EFA) 51 CHAPTER : DISCUSSION 57 5.1 Product 57 5.2 Price 58 5.3 Place 60 5.4 Promotion 62 5.5 Official model 63 CHAPTER : CONCLUSION AND RECOMMENDATIONS 65 TRAN HOANG TRUC Page VI - RESEARCH PROJECT FEBRUARY, 2017 6.1 Conclusion 65 6.2 Recommendations 65 6.2.1 Product 65 6.2.2 Price 66 6.2.3 Place 66 6.2.4 Promotion 66 6.3 Limitation 66 6.4 Recommendation for further research 67 REFERENCES i APPENDICES vii TRAN HOANG TRUC Page VII - RESEARCH PROJECT FEBRUARY, 2017 LIST OF TABLES Table 4.1: The agreement degree of factors affect to buying decision making of Nhon Hoang products 41 Table 4.2: The statistics of product factor’s respondents 43 Table 4.3: The statistics of price factor’s respondents 44 Table 4.4: The statistics of place factor’s respondents 44 Table 4.5: The statistics of promotion factor’s respondents 45 Table 4.6: The statistics of all factors’ respondents 45 Table 4.7: Verify Cronbach’s Alpla of Product Factor 46 Table 4.8: Verify Cronbach’s Alpla of PriceFactor 47 Table 4.9: Verify Cronbach’s Alpla of Place Factor 48 Table 4.10: Verify Cronbach’s Alpla of Place Factor 49 Table 4.11: Verify Cronbach’s Alpla of Promotion Factor 50 Table 4.12: Verify Cronbach’s Alpla of all Factors 51 Table 4.13: KMO and Bartlett’s test 52 Table 4.14: The total variance explained of independent variables 52 Table 4.15: The first EFA analysis Component Matrix 54 Table 4.16: The final EFA analysis - Rotated Component Matrix 55 Table 5.1: Response per statement for the Product factor 57 Table 5.2: Response per statement for the Price factor 58 TRAN HOANG TRUC Page VIII - RESEARCH PROJECT FEBRUARY, 2017 Table 5.3: Response per statement for the Place factor 60 Table 5.4: Response per statement for the Promotion factor 62 TRAN HOANG TRUC Page IX - RESEARCH PROJECT FEBRUARY, 2017 LIST OF FIGURES Figure 2.1: The elements of marketing mix Figure 2.2: Channels for consumer products 15 Figure 2.3: Overall model of consumer behavior 24 Figure 2.4: Consumer decision process 25 Figure 2.5: Dissertation model 29 Figure 3.1: Research progress 32 Figure 4.1: Gender 39 Figure 4.2: Gender 40 Figure 4.3: Income 41 Figure 5.1: Response per statement for the Product factor 58 Figure 5.2: Response per statement for the Price factor 59 Figure 5.3: Response per statement for the Place factor 61 Figure 5.4: Response per statement for the Promotion factor 63 Figure 5.5: Official model 64 TRAN HOANG TRUC Page X - RESEARCH PROJECT FEBRUARY, 2017 Statistics PL1: Nhon PL2: Nhon PL3: Nhon PL4: The PL5: The Hoang Hoang Hoang accessibility of decoration of products are products can products are stores retailer attracts sold at be found in displayed at encourages me come and convenient many locations easy seeing me buy Nhon buy Nhon places for easy in Vietnam position at the Hoang Hoang store products products access Valid 300 300 300 300 300 0 0 Mean 3.19 3.40 3.21 3.21 3.36 Std Error of Mean 056 050 056 056 049 a a a a N Missing Median 3.21 Mode 3.47 3.23 3.26 a 3.38 4 Std Deviation 962 865 963 975 845 Variance 926 748 927 951 714 Range 4 4 Minimum 1 1 Maximum 5 5 a Calculated from grouped data Statistics PM1: PM2: I choose PM3: PM4: Free PM5: Nhon Promotions Nhon Hoang Advertising on samples of Hoang uses encourage me products sideboards Nhon Hoang customer to buy Nhon because I makes me products affect word-of-mouth Hoang found good want to buy my buying to promote products information on Nhon Hoang decision their products internet products Valid 300 300 300 300 300 0 0 Mean 3.53 3.47 3.39 3.65 4.08 Std Error of Mean 047 041 046 044 047 a a a a N Missing Median Mode 3.57 3.48 3.39 3.69 a 4.15 3 4 Std Deviation 807 715 792 754 816 Variance 651 511 627 568 665 4 4 Range TRAN HOANG TRUC Page xii - RESEARCH PROJECT FEBRUARY, 2017 Minimum 1 1 Maximum 5 5 a Calculated from grouped data Statistics PD Valid PR PL PM 300 300 300 300 0 0 Mean 3.49 3.43 3.27 3.63 Std Error of Mean 031 035 035 035 a a a N Missing Median 3.55 Mode 3.54 3.28 a 3.69 4 Std Deviation 536 603 614 607 Variance 287 363 377 368 Range 4 Minimum 2 Maximum 5 5 a Calculated from grouped data CRONBACH’S ANPHA  PRODUCT: Reliability Statistics Cronbach's N of Items Alpha 810 TRAN HOANG TRUC Page xiii - RESEARCH PROJECT FEBRUARY, 2017 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted PD1: The quality of Nhon Hoang products motivates 13.55 4.596 615 768 13.89 4.678 676 749 14.00 5.010 552 786 14.04 4.644 614 768 14.29 5.110 530 792 me to buy PD2: Nhon Hoang products are safe for health PD3: Taste of Nhon Hoang products meets my taste PD4: Packaging of Nhon Hoang products is beautiful and attractive PD5: Nhon Hoang has many kinds of products and many sizes for my choice  PRICE: Reliability Statistics Cronbach's N of Items Alpha 849 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted PR1: The prices of Nhon Hoang products are 13.70 6.571 618 829 13.67 6.027 721 802 reasonable PR2: The prices of Nhon Hoang products influence to my buying decision making TRAN HOANG TRUC Page xiv - RESEARCH PROJECT FEBRUARY, 2017 PR3: Discount prices of Nhon Hoang products 13.81 5.782 694 808 13.73 5.903 661 817 13.62 6.203 607 831 attract me PR4: The prices of Nhon Hoang products are suited to my pocket PR5: The prices of Nhon Hoang products adequate to their qualities  PLACE: Reliability Statistics Cronbach's N of Items Alpha 684 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted PL1: Nhon Hoang products are sold at convenient 13.18 5.820 576 568 12.98 7.307 291 692 13.17 5.517 658 526 13.16 5.981 521 594 13.01 7.896 170 734 places for easy access PL2: Nhon Hoang products can be found in many locations in Vietnam PL3: Nhon Hoang products are displayed at easy seeing position at the store PL4: The accessibility of stores encourages me buy Nhon Hoang products PL5: The decoration of retailer attracts me come and buy Nhon Hoang products TRAN HOANG TRUC Page xv - RESEARCH PROJECT FEBRUARY, 2017 Reliability Statistics Cronbach's N of Items Alpha 796 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted PL1: Nhon Hoang products are sold at convenient 6.42 3.034 600 762 6.41 2.730 727 625 6.40 3.010 594 769 places for easy access PL3: Nhon Hoang products are displayed at easy seeing position at the store PL4: The accessibility of stores encourages me buy Nhon Hoang products  PROMOTION: Reliability Statistics Cronbach's N of Items Alpha 839 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted PM1: Promotions encourage me to buy Nhon Hoang 14.60 5.933 665 800 products TRAN HOANG TRUC Page xvi - RESEARCH PROJECT FEBRUARY, 2017 PM2: I choose Nhon Hoang products because I found 14.66 6.146 717 788 14.74 6.454 526 838 14.48 6.036 700 791 14.05 6.045 620 813 good information on internet PM3: Advertising on sideboards makes me want to buy Nhon Hoang products PM4: Free samples of Nhon Hoang products affect my buying decision PM5: Nhon Hoang uses customer word-of-mouth to promote their products Official KMO and Bartlett’s Test, and Exploratory Factor Analysis KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy .783 Approx Chi-Square Bartlett's Test of Sphericity 2091.161 df 153 Sig .000 Total Variance Explained Compo Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings nent Total % of Cumulati Variance ve % Total % of Cumulati Variance ve % Total % of Cumulati Variance ve % 3.634 20.189 20.189 3.634 20.189 20.189 3.138 17.432 17.432 3.089 17.163 37.352 3.089 17.163 37.352 3.123 17.349 34.781 2.814 15.634 52.986 2.814 15.634 52.986 2.871 15.951 50.732 1.744 9.690 62.676 1.744 9.690 62.676 2.150 11.944 62.676 833 4.626 67.301 714 3.967 71.268 653 3.626 74.894 TRAN HOANG TRUC Page xvii - RESEARCH PROJECT 573 3.181 78.075 566 3.142 81.217 10 515 2.860 84.076 11 486 2.701 86.777 12 478 2.656 89.433 13 381 2.115 91.548 14 372 2.067 93.615 15 342 1.898 95.513 16 285 1.582 97.096 17 271 1.504 98.600 18 252 1.400 100.000 FEBRUARY, 2017 Extraction Method: Principal Component Analysis a Component Matrix Component PR5: The prices of Nhon Hoang products adequate to 674 their qualities PR2: The prices of Nhon Hoang products influence to 651 my buying decision making PR1: The prices of Nhon Hoang products are 583 reasonable PR3: Discount prices of Nhon Hoang products 569 attract me PR4: The prices of Nhon Hoang products are suited 555 to my pocket PM4: Free samples of Nhon Hoang products affect my 553 buying decision PM2: I choose Nhon Hoang products because I found -.671 good information on internet TRAN HOANG TRUC Page xviii - RESEARCH PROJECT FEBRUARY, 2017 PM3: Advertising on sideboards makes me want -.575 to buy Nhon Hoang products PM1: Promotions encourage me to buy Nhon Hoang -.553 products PM5: Nhon Hoang uses customer word-of-mouth to -.528 promote their products PD2: Nhon Hoang products 652 are safe for health PD1: The quality of Nhon Hoang products motivates 608 me to buy PD4: Packaging of Nhon Hoang products is beautiful 587 and attractive PD5: Nhon Hoang has many kinds of products and 553 many sizes for my choice PD3: Taste of Nhon Hoang 523 products meets my taste PL3: Nhon Hoang products are displayed at easy seeing 707 position at the store PL1: Nhon Hoang products are sold at convenient 626 places for easy access PL4: The accessibility of stores encourages me buy 606 Nhon Hoang products Extraction Method: Principal Component Analysis a components extracted a Rotated Component Matrix Component TRAN HOANG TRUC Page xix - RESEARCH PROJECT FEBRUARY, 2017 PR2: The prices of Nhon Hoang products influence to 833 my buying decision making PR3: Discount prices of Nhon Hoang products 810 attract me PR4: The prices of Nhon Hoang products are suited 796 to my pocket PR1: The prices of Nhon Hoang products are 753 reasonable PR5: The prices of Nhon Hoang products adequate to 715 their qualities PM2: I choose Nhon Hoang products because I found 840 good information on internet PM4: Free samples of Nhon Hoang products affect my 822 buying decision PM1: Promotions encourage me to buy Nhon Hoang 802 products PM5: Nhon Hoang uses customer word-of-mouth to 753 promote their products PM3: Advertising on sideboards makes me want to buy Nhon Hoang 675 products PD2: Nhon Hoang products are safe for health 812 PD4: Packaging of Nhon Hoang products is beautiful 771 and attractive PD1: The quality of Nhon Hoang products motivates 769 me to buy TRAN HOANG TRUC Page xx - RESEARCH PROJECT PD3: Taste of Nhon Hoang products meets my taste FEBRUARY, 2017 715 PD5: Nhon Hoang has many kinds of products and 690 many sizes for my choice PL3: Nhon Hoang products are displayed at easy seeing 884 position at the store PL1: Nhon Hoang products are sold at convenient 808 places for easy access PL4: The accessibility of stores encourages me buy 796 Nhon Hoang products Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations TRAN HOANG TRUC Page xxi - RESEARCH PROJECT FEBRUARY, 2017 QUESTIONNAIRE Part 1: Personal Information Name: Date: Your Gender:  Male Your Age:  Under 20  Female  20 - 30  31 – 40  41- 50  Over 50 Your income:  Under million VND per month  5-10 million VND per month  10 – 15 million VND per month  Over 15 million VND per month Part 2: Marketing factors affect to customer’s buying decision making Please answer these questions from the scale – which responds to: o 1: Strongly Disagree o 2: Disagree o 3: Normal o 4: Agree o 5: Strongly Agree TRAN HOANG TRUC Page xxii - RESEARCH PROJECT No The degree of Questions I agreement PRODUCT PD1 PD2 PD3 PD4 PD5 The quality of Nhon Hoang products motivates me to buy Nhon Hoang products are safe for health Taste of Nhon Hoang products meets my taste Packaging of Nhon Hoang products is beautiful and attractive Nhon Hoang has many kinds of products and many sizes for my choice II FEBRUARY, 2017 5 5 5 5 PRICE PR1 The prices of Nhon Hoang products are reasonable The prices of Nhon Hoang products PR2 influence to my buying decision making PR3 Discount prices of Nhon Hoang products attract me TRAN HOANG TRUC Page xxiii - RESEARCH PROJECT PR4 10 PR5 The prices of Nhon Hoang products are suited to my pocket The prices of Nhon Hoang products adequate to their qualities III FEBRUARY, 2017 5 5 5 5 5 PLACE 11 PL1 12 PL2 13 PL3 14 PL4 15 PL5 Nhon Hoang products are sold at convenient places for easy access Nhon Hoang products can be found in many locations in Vietnam The decoration of retailer attracts me come and buy Nhon Hoang products The accessibility of stores encourages me buy Nhon Hoang products Nhon Hoang products are displayed at easy seeing position at the store IV PROMOTION 16 PM1 17 PM2 18 PM3 Promotions encourage me to buy Nhon Hoang products Advertising on sideboards makes me want to buy Nhon Hoang products I choose Nhon Hoang products because TRAN HOANG TRUC Page xxiv - RESEARCH PROJECT FEBRUARY, 2017 I found good information on internet 19 PM4 20 PM5 Free samples of Nhon Hoang products affect my buying decision Nhon Hoang uses customer word-ofmouth to promote their products TRAN HOANG TRUC 5 Page xxv - RESEARCH PROJECT FEBRUARY, 2017 NHON HOANG PRODUCTS THE END TRAN HOANG TRUC Page xxvi