Influencing factors to buying decision of cement product for housing construction in ho chi minh city

TRƯỜNG ĐẠI HỌC MỞ TP.HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITEÙ LIBRE DE BRUXELLES SOLVAY BUSINESS SCHOOL MBAVB1 TRAN CAO TUAN INFLUENCING FACTORS TO BUYING DECISION OF CEMENT PRODUCT FOR HOUSING CONSTRUCTION IN HO CHI MINH CITY Tai Lieu Chat Luong MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Ho Chi Minh City (2010) MBAVB - MASTER PROJECT – TRAN CAO TUAN ACKNOWLEDGMENT OF COMMITMENT I, Tran Cao Tuan, would like to confirm that I have prepared and conducted this “Influencing factors to buying decision of cement product for housing construction in Ho Chi Minh City” as the final project of MBAVB program i MBAVB - MASTER PROJECT – TRAN CAO TUAN ACKNOWLEDGEMENT I sincerely express my deep gratefulness to Professor Michele Allele of Solvay University in Belgium and Doctor Tran Anh Tuan, the program codirector, who have whole-heartedly organized the Vietnam-Belgium management MBAVB1 course successfully I would like to express my sincere gratitude to Dr Nguyen Van Phuc, research advisor for the valuable guidance, constructive comments and encouragement through out the research study Especially, I would like to give my special thanks to my family who enabled me to complete this project Ho Chi Minh City, 30th December, 2010 Tran Cao Tuan ii MBAVB - MASTER PROJECT – TRAN CAO TUAN TABLE OF CONTENTS Page LIST OF TABLES x LIST OF FIGURES xii LIST OF ABBREVIATION xiii ABSTRACT 01 CHAPTER 1: INTRODUCTION 02 1.1 Problem statement 02 1.2 Research objective 02 1.3 Scope of research 02 1.4 Research methodology 03 1.5 Structure of the project 03 CHAPTER 2: LITERATURE REVIEW 05 2.1 Definition 05 2.2 Buying decision process 05 2.2.1 Buying roles 05 2.2.2 Buying behavior 06 2.3 Stages of the buying decision process 08 2.3.1 Problem recognition 09 2.3.2 Information search 09 2.3.3 Evaluation of alternatives 10 2.3.4 Purchase decision 11 2.3.5 Post purchase behavior 12 v MBAVB - MASTER PROJECT – TRAN CAO TUAN 2.4 Purchase cases 13 2.5 Influcing buyer behaviour 14 2.5.1 Cultural factors 15 2.5.2 Social factors 16 2.5.3 Personel factors 16 2.5.4 Psychological factors 18 2.6 Selection criteria 18 2.7 Proposed research model 19 CHAPTER 3: RESEARCH DESIGN 21 3.1 Research methodology 21 3.1.1 Qualitative research 21 3.1.2 Quantitative research 22 3.2 Result of qualitative research 23 3.3 Quantitative research 24 3.3.1 Setting up, building and evaluating the scale of measurement 24 3.3.1.1 Scale of variables relative to willingness of buying cement 24 3.3.1.2 Scale of the other groups of variables 24 3.3.2 Evaluating the scale of measurement and filtering data gathered from questionnaire 26 3.3.2.1 Evaluating the scale of measurement 26 3.3.2.2 Filtering data gathered from questionnaire 26 3.3.3 Data analysis process 27 3.3.4 Size of sample 28 CHAPTER 4: OVERVIEW OF CEMENT MARKET IN VN 29 4.1 Overview of Vietnamese economic environment 29 vi MBAVB - MASTER PROJECT – TRAN CAO TUAN 4.2 Overview of cement industry 31 4.3 Market share 33 4.4 Cement distribution system 35 CHAPTER 5: ANALYSIS OF RESEARCH DATA & RESULTS 37 5.1 Respondent’s information 37 5.2 Descriptive statistics result of quantitative variables 38 5.3 Reliability statistics (Cronbach’s Alpha) 39 5.3.1 Reliability statistic Cronbach’s Alpha for the group of variables relative to brand name of product 41 5.3.2 Reliability statistic Cronbach’s Alpha for the other groups of variables 41 5.4 Exploratory factor analysis (EFA) 44 5.5 Paired-Samples T Test 47 5.6 Result analysis 50 CHAPTER 6: CONCLUSIONS & RECOMMENDATIONS 53 6.1 Conclusions 53 6.2 Recommendations 53 6.3 The strength, weakness, limitation of this study and recommendation for future study 55 REFERENCES 57 English Language Sources 57 Vietnamese Language Sources 60 APPENDIX 61 Appendix 1: Discussion framework form 61 Appendix 2: Questionnaire for customer 62 vii MBAVB - MASTER PROJECT – TRAN CAO TUAN Appendix 3: Reliability statistics results (Cronbach’s Alpha) 66 Appendix 4: Result of EFA analysis 69 Appendix 5: Result of Paired-Samples T Test 72 viii MBAVB - MASTER PROJECT – TRAN CAO TUAN LIST OF TABLES Page Table 2.5: Stages in family life cycle 16 Table 2.6: Important level of criteria 18 Table 3.1: Scale of the other groups of variables 25 Table 4.1: Urbanization in Vietnam (1990-2010) 30 Table 4.2: Income growth of Vietnamese 30 Table 4.3: Cement demand in 03 areas of Vietnam 32 Table 4.4: Cement consumption per capital 33 Table 4.5: Market share of main cement manufactures 34 Table 4.6: Cement consumption by Southern market area 34 Table 4.7: Cement Distribution system 36 Table 5.1: Age of respondents 37 Table 5.2: Sex of respondents 37 Table 5.3: Descriptive Statistics 38 Table 5.4: Summary of initial groups of variables will be analyzed 39 Table 5.5: Results of reliability statistics for variables relative to brand 41 name of product Table 5.6: Results of reliability statistics for other groups of variables 42 Table 5.7: Summary of groups of variables after rejecting some variables 42 in the stage of reliability statistics Table 5.8: EFA analysis 44 Table 5.9: Groups of factors after EFA analysis 46 ix MBAVB - MASTER PROJECT – TRAN CAO TUAN Table Descriptive Statistics of new factors by descending mean 47 Results of Paired-Sample T Test comparing with Mean 48 Summary of results of Paired-Sample T Test 49 Result of Paired-Sample T Test 50 5.10: Table 5.11: Table 5.12: Table 5.13: x MBAVB - MASTER PROJECT – TRAN CAO TUAN LIST OF FIGURES Page Figure 2.1: Model of buyer behaviour 06 Figure 2.2: Four types of buying behavior 07 Figure 2.3: Five-stage Model of the Consumer Buying Process 08 Figure 2.4: Steps between evaluation of alternatives and a purchase 11 decision Figure 2.7: Proposed research model 19 Figure 3.2: Data analysis process 27 xi MBAVB - FINAL PROJECT – TRAN CAO TUAN APPENDICES Appendix 1: Discussion framework form When did you buy and use cement at the last buying time? In your opinion, which are the most important factors influencing the decision making in buying cement for housing construction ? Can you range the importance of these factors? Do you think that everyone will have the same opinion with you in terms of the ranges of the importance of these above mentioned factors in the question ? If not, in your opinion, which are the factors causing different opinion ? If any, how is the interrelationship between the factors mentioned in question and the factors mentioned in the question and ? To suggest some other factors which may be missed in the question 2, and Again, asking respondents about the question 2, 3, and Do you have any other opinion ? 61 MBAVB - FINAL PROJECT – TRAN CAO TUAN Appendix 2: Questionnaire for customer We are students of HCMC Open University We are making the survey of factors involving decision of purchasing cement for final project of MBA program, so we would like to you to answer the questionnaire below Thank you very much for your help! Chúng sinh viên trường Đại học Mở Bán Công TpHCM Chúng thực khảo sát yếu tố ảnh hưởng đến định mua xi măng để làm luận văn tốt nghiệp Kính mong Anh (Chị) dành chút thời gian để hồn tất vấn Xin cảm ơn Anh (Chị) Personal information/ Thông tin cá nhân 1.1 Age/ Tuổi 25-35 35-45 45-60 1.2 Sex/ Giới tính Male/ Nam Female/ Nữ 1.3 You are living at/ Địa cư ngụ ……………….………………………………… ……………………………………… ………………………………………………………………………………………………… Factors influencing decision making in buying cement / Những yếu tố ảnh hưởng đến định mua xi măng A How is the importance level of brand name of product ?/ Theo Bạn, mức độ quan trọng thương hiệu sản phẩm ảnh hưởng ? Totally Not Moderate/ Important/ Very not important important/ Bình Quan trọng important/ / Hồn tồn Khơng thường khơng quan quan trọng 62 Rất quan trọng MBAVB - FINAL PROJECT – TRAN CAO TUAN trọng Traditional brand name/ 5 Thương hiệu có truyền thống lâu đời Reputation brand name/ Thương hiệu có uy tín Popular brand name/ Thương hiệu phổ biến (có nhiều khách hàng tìm mua) B How is the importance level of quality of product ?/ Theo Bạn, mức độ quan trọng chất lượng sản phẩm ảnh hưởng nào? Totally Not Moderate/ Important/ Very not important important/ Bình Quan trọng important/ / Hồn tồn Khơng thường khơng quan quan trọng Rất quan trọng trọng Stable quality / 5 5 Chất lượng ổn định Product with different usage purposes/ Dùng cho nhiều mục đích khác High fines ratio/ Độ mịn cao Fast setting time/ Thời gian đơng kết nhanh High quality bag/ Bao bì chất lượng tốt C How is the importance level of customer service ?/ Theo Bạn, mức độ quan trọng dịch vụ tư vấn khách hàng ảnh hưởng ? 63 MBAVB - FINAL PROJECT – TRAN CAO TUAN Totally Not Moderate/ Important/ Very not important important/ Bình Quan trọng important/ / Hồn tồn Khơng thường khơng quan quan trọng Rất quan trọng trọng Customer consulting / 5 5 Tư vấn khách hàng 10 Regularlly staff visits / Nhân viên thăm khách hàng thường xuyên 11 Complaints solving quickly/ Giải khiếu nại nhanh 12 Serving with good attitudes/ Phục vụ tư vấn khách hàng tốt D How is the importance level of price ?/ Theo Bạn, mức độ quan trọng giá ảnh hưởng nào? Totally Not Moderate/ Important/ Very not important important/ Bình Quan trọng important/ / Hồn tồn Khơng thường khơng quan quan trọng Rất quan trọng trọng 13 Reasonable price/ 5 5 Mức giá hợp lý 14 Stable price / Giá ổn định 15 Flexible credit level/ Định mức tín dụng linh hoạt 16 Flexible payment term/ Phương thức toán linh hoạt 64 MBAVB - FINAL PROJECT – TRAN CAO TUAN E How is the importance level of the delivery service?/ Theo Bạn mức độ quan trọng dịch vụ giao hàng ? Totally Not Moderate/ Important/ Very not important Important/ Bình Quan trọng important/ / Hồn tồn Khơng thường khơng quan quan trọng Rất quan trọng trọng 17 Delivery in time/ 5 Giao hàng hẹn 18 Easy and simply procedure/ Thủ tục giao hàng thuân lợi 19 Quick delivery after order/ Giao hàng nhanh đặt hàng 20 Available product/ Hàng ln có sẵn F How is the importance level the capability of the cement manufacturer ? / Theo Bạn mức độ quan trọng khả nhà sản xuất ? Totally Not Moderate/ Important/ Very not important Important/ Bình Quan trọng important/ / Hồn tồn Không thường không quan quan trọng Rất quan trọng trọng 21 Big production capacity / 5 Công suất sản xuất lớn 22 Large distribution net work/ Có hệ thống phân phối rộng 23 High quality control system/ Có hệ thống kiểm sốt chất lượng cao Xin chân thành cảm ơn hỗ trợ anh chị 65 MBAVB - FINAL PROJECT – TRAN CAO TUAN Thank you very much for your help! Appendix 3: Reliability statistics Results (Cronbach’s Alpha Analysis) Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 653 N of Items 641 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Squared Multiple Item Deleted Item Deleted Total Correlation Correlation Alpha if Item Deleted BRA1 7.5486 1.387 096 022 963 BRA2 7.0514 716 732 866 136 BRA3 7.0800 752 693 865 207 Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 967 N of Items 969 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected Item- Squared Multiple Item Deleted Total Correlation Correlation Alpha if Item Deleted PRI1 12.1143 2.309 908 858 960 PRI2 12.0514 2.153 888 807 968 PRI3 12.1200 2.244 948 908 948 PRI4 12.1257 2.271 939 883 951 66 MBAVB - FINAL PROJECT – TRAN CAO TUAN Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 831 N of Items 832 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Squared Multiple Item Deleted Item Deleted Total Correlation Correlation Alpha if Item Deleted QUAL1 14.9486 4.061 872 914 724 QUAL2 15.1714 5.637 555 238 840 QUAL3 15.2400 5.528 264 109 901 QUAL4 14.9771 4.057 809 800 741 QUAL5 14.9543 4.090 853 912 729 Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 942 N of Items 942 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected Item- Squared Multiple Item Deleted Total Correlation Correlation Alpha if Item Deleted DEL1 12.0629 2.680 950 970 895 DEL2 12.0000 3.126 732 570 961 DEL3 12.0743 2.690 944 969 897 DEL4 12.0000 2.678 831 736 935 67 MBAVB - FINAL PROJECT – TRAN CAO TUAN Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 955 N of Items 955 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Squared Multiple Item Deleted Item Deleted Total Correlation Correlation Alpha if Item Deleted SERV1 10.8000 4.874 911 920 935 SERV2 10.9886 4.965 904 975 937 SERV3 11.0057 5.086 893 973 940 SERV4 10.8000 5.149 854 897 952 Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 861 N of Items 857 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected Item- Squared Multiple Item Deleted Total Correlation Correlation Alpha if Item Deleted CAP1 7.0457 1.665 808 791 735 CAP2 6.9543 1.492 855 812 684 CAP3 7.7257 2.177 572 346 941 68 MBAVB - FINAL PROJECT – TRAN CAO TUAN Appendix 4: Result of EFA Analysis KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity 733 Approx Chi-Square 5.158E3 df 210 Sig .000 Rotated Component Matrixa Component SERV2 930 SERV3 927 SERV1 870 SERV4 848 PRI3 961 PRI4 959 PRI1 937 PRI2 916 DEL1 953 DEL3 949 DEL4 874 DEL2 820 QUAL5 946 QUAL1 922 QUAL4 921 QUAL2 553 69 MBAVB - FINAL PROJECT – TRAN CAO TUAN CAP2 833 CAP1 807 CAP3 715 BRA3 944 BRA2 944 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations 70 MBAVB - FINAL PROJECT – TRAN CAO TUAN Total Variance Explained Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings % of % of Cumulative Variance % Initial Eigenvalues Compon ent Total % of Cumulative Variance % Total Variance Cumulative % Total 6.174 29.400 29.400 6.174 29.400 29.400 3.706 17.649 17.649 4.488 21.372 50.772 4.488 21.372 50.772 3.676 17.506 35.155 2.955 14.070 64.843 2.955 14.070 64.843 3.540 16.858 52.013 2.120 10.095 74.938 2.120 10.095 74.938 3.204 15.259 67.271 1.465 6.975 81.913 1.465 6.975 81.913 2.178 10.374 77.645 1.065 5.074 86.987 1.065 5.074 86.987 1.962 9.342 86.987 733 3.491 90.478 502 2.393 92.870 389 1.851 94.722 10 315 1.501 96.222 11 265 1.264 97.486 12 118 562 98.048 13 086 411 98.459 14 077 366 98.825 15 074 350 99.176 16 064 304 99.479 17 045 213 99.692 18 022 105 99.797 19 016 074 99.871 20 015 072 99.943 21 012 057 100.000 Extraction Method: Principal Component Analysis 71 MBAVB - FINAL PROJECT – TRAN CAO TUAN Appendix 5: Result of Paired-Samples T Test Mean comparision of each pair of groups Paired Samples Statistics Mean Pair N Std Std Error Deviation Mean PRICE 4.0343 175 49665 03754 DELI 4.0114 175 55178 04171 Paired Samples Correlations N Pair PRICE & DELI Correlation 175 Sig .291 000 Paired Samples Test Paired Differences 95% Confidence Interval of the Mean Pair PRICE - DELI Std Std Error Deviation Mean 02286 62587 Difference Lower 04731 Upper -.07052 11624 Paired Samples Statistics Mean Pair N Std Deviation Std Error Mean DELI 4.0114 175 55178 04171 QUAL 3.8100 175 58781 04443 Paired Samples Correlations N Pair DELI & QUAL Correlation 175 Sig .199 72 008 Sig t 483 df (2-tailed) 174 630 MBAVB - FINAL PROJECT – TRAN CAO TUAN Paired Samples Test Paired Differences 95% Confidence Interval of the Mean Pair DELI - QUAL Std Std Error Deviation Mean 20143 72154 Difference Lower 05454 Sig t Upper 09378 30908 df 3.693 (2-tailed) 174 000 Paired Samples Statistics Mean Pair N Std Deviation Std Error Mean QUAL 3.8100 175 58781 04443 BRAD 3.7743 175 58885 04451 Paired Samples Correlations N Pair QUAL & BRAD Correlation 175 Sig .259 001 Paired Samples Test Paired Differences 95% Confidence Interval Mean Pair QUAL - BRAD 03571 Std Std Error Deviation Mean 71605 05413 73 of the Difference Lower -.07112 Upper 14255 Sig t 660 df 174 (2-tailed) 510 MBAVB - FINAL PROJECT – TRAN CAO TUAN Paired Samples Statistics Mean Pair N Std Deviation Std Error Mean BRAD 3.7743 175 58885 04451 SERV 3.6329 175 74123 05603 Paired Samples Correlations N Pair BRAD & SERV Correlation 175 Sig .171 024 Paired Samples Test Paired Differences 95% Confidence Interval Mean Pair BRAD - SERV Std Std Error Deviation Mean 14143 86416 of the Difference Lower 06532 Upper 01250 Paired Samples Statistics Mean Pair N Std Deviation Std Error Mean SERV 3.6329 175 74123 05603 CAPA 3.6210 175 64461 04873 Paired Samples Correlations N Pair SERV & CAPA Correlation 175 Sig .600 74 000 27036 Sig t 2.165 df 174 (2-tailed) 032 MBAVB - FINAL PROJECT – TRAN CAO TUAN Paired Samples Test Paired Differences 95% Confidence Interval of Mean Pair SERV - CAPA 01190 Std Std Error Deviation Mean 62564 04729 75 the Difference Lower -.08144 Sig Upper 10525 t df 252 174 (2-tailed) 802