MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN NGOC THUY TIEN FACTORS AFFECTING THE PURCHASE DECISION OF VIETNAMESE YOUNG CUSTOMERS TO COSME[.]
MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN NGOC THUY TIEN FACTORS AFFECTING THE PURCHASE DECISION OF VIETNAMESE YOUNG CUSTOMERS TO COSMETIC PRODUCTS GRADUATE THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 Tai ngay!!! Ban co the xoa dong chu nay!!! HO CHI MINH CITY, 2022 MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN NGOC THUY TIEN FACTORS AFFECTING THE PURCHASE DECISION OF VIETNAMESE YOUNG CUSTOMERS TO COSMETIC PRODUCTS GRADUATE THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR DR TRAN NGOC THIEN THY HO CHI MINH CITY, 2022 i ABSTRACT This thesis aims to explore the factors influencing the purchase decision of Vietnamese young customers This study is based on a literature review on customer behavior, purchase decision and previous studies This study conducts quantitative research methods In the quantitative research, the author collects survey questionnaire data from 300 Vietnamese young customers who range from 16 to 34 years old Based on the research results, the author shows that five factors influence cosmetic the purchase decision of Vietnamese young customers: price, product characteristics, brand, promotion, reference group Meanwhile, the brand factor has the most decisive influence on the cosmetic purchase decision, the product characteristics factor has the weakest impact From the study results, several governance implications have been proposed to improve and enhance efficiently and effectively in cosmetic sales for cosmetic companies Keywords: Cosmetic, influencing factors, purchase decision, young customer ii AUTHOR’S DECLARATION I hereby declare that the thesis “Factors affecting the purchase decision of Vietnamese young customers to cosmetic products” is the result of my research conducted over 10 weeks Except for references from previous research works as stated in the thesis, the survey data and the results of the thesis are completely honest and have not yet been published in any research work before Ho Chi Minh, May 2022 Nguyen Ngoc Thuy Tien iii ACKNOWLEDGEMENT First and foremost, I would like to express my whole-hearted gratitude to my supervisor, Dr Tran Ngoc Thien Thy Thanks to her teaching in transmitting a myriad of important knowledge, and good recommendations in line with her patience and devotion, I could able to complete a well-rounded my bachelor's thesis During conducting my thesis process, I received a bunch of meaningful teaching and inspiration from my respected lecturer Furthermore, I am grateful to all the professors and lecturers from the Banking University of Ho Chi Minh City who educate me with vital comprehensive knowledge and essential skills throughout my syllabus at university Last but not least, I also want to thank the examiners for your pivotal time and consideration to review my graduation thesis iv TABLE OF CONTENT ABSTRACT .i AUTHOR’S DECLARATION ii ACKNOWLEDGEMENT iii TABLE OF CONTENT iv LIST OF ABBREVIATIONS viii TABLE LIST ix FIGURE LIST x CHAPTER 1: OVERVIEW OF THE RESEARCH 1.1 The necessity of the research 1.2 Research objective 1.3 Research question 1.4 Subjects of the research and scopes of study 1.5 Research Methodology 1.6 Research Significance 1.6.1 Academic Significance 1.6.2 Practical Significance 1.7 Thesis structure SUMMARY CHAPTER CHAPTER 2: LITERATURE REVIEW 2.1 The basics of concept 2.1.1 The concept of purchase decision 2.1.2 Overview of the cosmetic market in Vietnam 2.1.2.1 The concept of cosmetic 2.1.2.2 The cosmetic market in Vietnam v 2.2 Previous empirical studies 10 2.3 The evaluation of previous related studies 19 2.4 The Hypothesis and conceptual model 22 2.4.1 Hypothesis 22 2.4.1.1 Relationship between price and purchase decision to cosmetic products 22 2.4.1.2 Relationship between brand and purchase decision to cosmetic products 23 2.4.1.3 Relationship between product characteristics and purchase decision to cosmetic products 24 2.4.1.4 Relationship between promotion and purchase decision to cosmetic products 25 2.4.1.5 Relationship between the reference group and purchase decision to cosmetic products 27 2.4.2 Conceptual model 28 SUMMARY CHAPTER 29 CHAPTER 3: RESEARCH METHODOLOGY 30 3.1 Process of research 30 3.2 Research steps 30 3.3 Research Methodology 33 3.3.1 Methodology of theoretical research 33 3.3.2 Practical research method 33 3.4 Research design 34 3.4.1 Sample size 34 3.4.2 Sampling method 35 3.4.3 Building the scale 35 3.4.4 Questionnaire design 37 3.4.5 Data collection 37 3.5 Data processing method 38 3.5.1 Descriptive statistic 38 3.5.2 Cronbach’s Alpha analyzing 38 vi 3.5.3 EFA Analysing 39 3.5.4 Regression analysis 39 SUMMARY CHAPTER 40 CHAPTER 4: THE RESEARCH RESULT 41 4.1 Sample Description 41 4.2 Scale Reliability Testing 43 4.3 Exploratory Factor Analysis 46 4.3.1 Factor analysis for the independent variable 46 4.3.2 Factor analysis for the dependent variable 49 4.4 Correlation Analysis 51 4.5 Regression Analysis 52 4.5.1 Testing the Fit of a Regression Model 52 4.5.2 Regression analysis results 53 4.5.3 Testing Multicollinearity 55 4.5.4 Testing the Normality of Residuals 55 4.5.5 Testing the constant residual variance 56 4.6 Result discussion 58 SUMMARY CHAPTER 60 CHAPTER 5: CONCLUSION 62 5.1 Conclusion 62 5.2 Theoretical contribution 62 5.3 Practical implication and suggestion 63 5.3.1 Price factor 64 5.3.2 Product characteristics factor 64 5.3.3 Brand factor 65 5.3.4 Promotion factor 66 5.3.5 Reference group factor 66 5.4 Limitations and future research 67 84 CRONBACH’S ALPHA Result of the reliability assessment of Price factor Reliability Statistics Cronbach's N of Alpha Items 797 Item-Total Statistics Scale Cronbach's Scale Mean Variance if Corrected Alpha if if Item Item Item-Total Item Deleted Deleted Correlation Deleted PR1 12.32 5.472 588 756 PR2 12.16 5.347 617 742 PR3 12.24 5.326 620 740 PR4 12.48 5.147 609 747 Result of the reliability assessment of Product Characteristics factor Reliability Statistics Cronbach's N of Alpha Items 822 85 Item-Total Statistics Scale Cronbach's Scale Mean Variance if Corrected Alpha if if Item Item Item-Total Item Deleted Deleted Correlation Deleted PC1 16.11 9.709 541 807 PC2 16.25 8.287 672 770 PC3 15.91 8.929 621 785 PC4 15.89 9.228 592 793 PC5 15.74 9.278 659 776 Result of the reliability assessment of Brand factor Reliability Statistics Cronbach's N of Alpha Items 787 Item-Total Statistics Scale Cronbach's Scale Mean Variance if Corrected Alpha if if Item Item Item-Total Item Deleted Deleted Correlation Deleted BR1 12.03 5.514 593 736 BR2 11.88 5.862 568 748 BR3 11.85 5.674 611 727 BR4 11.45 5.717 608 728 86 Result of the reliability assessment of Promotion factor Reliability Statistics Cronbach's N of Alpha Items 830 Item-Total Statistics Scale Cronbach's Scale Mean Variance if Corrected Alpha if if Item Item Item-Total Item Deleted Deleted Correlation Deleted PO1 10.87 6.870 741 748 PO2 11.08 7.147 606 810 PO3 11.02 7.323 654 787 PO4 11.07 7.115 635 796 Result of the reliability assessment of Reference group factor Reliability Statistics Cronbach's N of Alpha Items 846 87 Item-Total Statistics Scale Cronbach's Scale Mean Variance if Corrected Alpha if if Item Item Item-Total Item Deleted Deleted Correlation Deleted RG1 14.39 11.815 599 829 RG2 14.29 11.059 702 802 RG3 14.66 10.484 762 784 RG4 14.71 11.318 638 819 RG5 14.95 11.350 575 837 Result of the reliability assessment of purchase deicision factor Reliability Statistics Cronbach's N of Alpha Items 817 Item-Total Statistics Scale Cronbach's Scale Mean Variance if Corrected Alpha if if Item Item Item-Total Item Deleted Deleted Correlation Deleted PD1 11.88 5.404 614 782 PD2 11.90 5.285 653 764 PD3 11.81 5.103 652 764 PD4 11.85 4.960 637 772 88 EXPLORATORY FACTOR ANALYSIS (EFA) The result of KMO and Bartlett’s Test for independent variable (1st time) KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling 781 Adequacy Bartlett's Test of Approx Chi-Square 3072.369 Sphericity df 231 Sig .000 Eigenvalues and covariance deviations for independent variables (1sttime) Total Variance Explained Initial Eigenvalues Extraction Sums of Rotation Sums of Squared Squared Loadings Loadings % of Compo % of Varianc Cumula e tive % % of Varianc Cumula Total e tive % Varianc Cumulati nent Total Total e ve % 7.831 35.596 35.596 7.831 35.596 35.596 3.026 13.753 13.753 2.105 9.570 45.166 2.105 9.570 45.166 3.021 13.730 27.482 1.802 8.191 53.358 1.802 8.191 53.358 2.966 13.481 40.963 1.397 6.351 59.709 1.397 6.351 59.709 2.962 13.463 54.426 1.239 5.633 65.341 1.239 5.633 65.341 2.401 10.915 65.341 794 3.611 68.952 709 3.224 72.176 657 2.988 75.164 638 2.898 78.062 10 569 2.584 80.647 89 11 564 2.562 83.208 12 544 2.474 85.682 13 515 2.340 88.022 14 482 2.190 90.212 15 443 2.014 92.226 16 426 1.937 94.163 17 393 1.788 95.951 18 367 1.670 97.621 19 287 1.305 98.926 20 099 451 99.377 21 081 367 99.743 22 056 257 100.000 Extraction Method: Principal Component Analysis EFA in the 1st time Rotated Component Matrixa Component RG4 784 RG2 747 RG3 717 RG1 672 RG5 665 557 BR3 784 BR2 749 BR4 714 PC5 700 BR1 688 522 90 PC2 746 PC3 732 PC4 714 PC1 667 PR2 783 PR4 781 PR1 697 PR3 662 PO1 655 615 PO2 795 PO3 732 PO4 725 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization.a a Rotation converged in iterations The result of KMO and Bartlett’s Test for independent variable (2ndtime) KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling 876 Adequacy Bartlett's Test of Approx Chi-Square 1582.055 Sphericity df 171 Sig .000 91 Eigenvalues and covariance deviations for independent variables (2ndtime) Total Variance Explained Initial Eigenvalues Extraction Sums of Rotation Sums of Squared Loadings Squared Loadings % of Compo % of Varianc Cumulat e ive % % of Varianc Cumulat Total e nent Total 6.163 32.435 32.435 6.163 32.435 32.435 2.504 13.178 13.178 1.694 8.915 41.350 1.694 8.915 41.350 2.494 13.126 26.303 1.642 8.640 49.990 1.642 8.640 49.990 2.466 12.979 39.282 1.233 6.490 56.480 1.233 6.490 56.480 2.463 12.961 52.244 1.195 6.287 62.767 1.195 6.287 62.767 1.999 10.523 62.767 737 3.879 66.646 654 3.444 70.090 629 3.310 73.400 601 3.162 76.562 10 561 2.951 79.513 11 547 2.876 82.389 12 519 2.730 85.119 13 498 2.621 87.740 14 454 2.390 90.130 15 439 2.313 92.443 16 416 2.190 94.632 17 379 1.996 96.629 18 365 1.922 98.551 19 275 1.449 100.000 Extraction Method: Principal Component Analysis ive % Varianc Cumulat Total e ive % 92 EFA in the 2ndtime Rotated Component Matrixa Component PR2 782 PR4 760 PR1 726 PR3 679 BR3 753 BR4 748 BR2 734 BR1 730 PC2 752 PC4 731 PC1 719 PC3 689 RG4 761 RG2 728 RG5 710 RG1 707 PO2 831 PO3 724 PO4 706 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization.a a Rotation converged in iterations 93 The result of KMO and Bartlett’s Test for dependent variable KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling 805 Adequacy Bartlett's Test of Approx Chi-Square Sphericity df 315.542 Sig .000 Eigenvalue and covariance deviations for dependent variables Total Variance Explained Extraction Sums of Squared Initial Eigenvalues Compone nt Total Loadings % of Cumulative Variance % 2.589 64.726 64.726 523 13.077 77.804 451 11.285 89.089 436 10.911 100.000 Total 2.589 Extraction Method: Principal Component Analysis % of Cumulative Variance % 64.726 64.726 94 The factor rotation matrix of the dependent variable Component Matrixa Component PD2 815 PD3 814 PD4 803 PD1 786 Extraction Method: Principal Component Analysis a components extracted 95 RESULT OF CORRELATIONS Correlations PR PR Pearson PC BR PO RG PD 422** 412** 434** 391** 573** 000 000 000 000 000 242 242 242 242 242 242 422** 342** 443** 567** 524** 000 000 000 000 Correlation Sig (2-tailed) N PC Pearson Correlation BR Sig (2-tailed) 000 N 242 242 242 242 242 242 412** 342** 344** 428** 607** Sig (2-tailed) 000 000 000 000 000 N 242 242 242 242 242 242 434** 443** 344** 440** 620** Sig (2-tailed) 000 000 000 000 000 N 242 242 242 242 242 242 391** 567** 428** 440** 560** Sig (2-tailed) 000 000 000 000 N 242 242 242 242 242 242 573** 524** 607** 620** 560** Sig (2-tailed) 000 000 000 000 000 N 242 242 242 242 242 Pearson Correlation PO Pearson Correlation RG Pearson Correlation PD Pearson 000 Correlation ** Correlation is significant at the 0.01 level (2-tailed) 242 96 REGRESSION ANALYSIS Model Summaryb Mode Adjusted R Std Error of l R 800a R Square Square 640 Durbin- the Estimate 633 Watson 44670 2.045 a Predictors: (Constant), RG, PR, BR, PO, PC b Dependent Variable: PD ANOVAa Sum of Model Squares Mean df Square Regression 83.862 16.772 Residual 47.092 236 200 130.954 241 Total a Dependent Variable: PD b Predictors: (Constant), RG, PR, BR, PO, PC F 84.054 Sig .000b 97 Coefficientsa Unstandardized Standardized Collinearity Coefficients Coefficients Statistics Std Model B (Cons Error Beta t Sig Tolerance VIF 094 200 470 639 PR 203 047 205 4.361 000 691 1.448 PC 105 049 109 2.167 031 606 1.650 BR 304 044 317 6.961 000 736 1.359 PO 261 040 310 6.596 000 691 1.447 RG 128 045 146 2.871 004 588 1.700 tant) a Dependent Variable: PD Testing the Normality of Residuals Residuals Statisticsa Std Minimum Maximum Predicted Value Residual Std Predicted Mean Deviation N 1.0951 5.0681 3.9525 58989 242 -1.47794 1.16116 00000 44204 242 -4.844 1.891 000 1.000 242 -3.309 2.599 000 990 242 Value Std Residual a Dependent Variable: PD 98