Opportunities and challenges in digital marketing for enterprises in vietnam a consumer behavior study

THE STATE BANK OF VIETNAM BANKING ACADEMY OF VIETNAM SCIENTIFIC RESEARCH INSTITUTIONAL LEVEL - 2022 OPPORTUNITIES AND CHALLENGES IN DIGITAL MARKETING FOR ENTERPRISES IN VIETNAM: A CONSUMER BEHAVIOR STUDY Code: DTHV.34/2021 Research leader: VŨ THỊ THANH HÀ, MBUS HANOI - 2022 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014128229551000000 THE STATE BANK OF VIETNAM BANKING ACADEMY OF VIETNAM SCIENTIFIC RESEARCH INSTITUTIONAL LEVEL - 2022 OPPORTUNITIES AND CHALLENGES IN DIGITAL MARKETING FOR ENTERPRISES IN VIETNAM: A CONSUMER BEHAVIOR STUDY Code: DTHV.34/2021 Research leader Secretary Members : Vũ Thị Thanh Hà, MBUS : Doti Chee Lee Leng, PhD : Roberto Ercole, PhD : Martin Ortega-Azurduy, MBA : Phan Mỹ Linh, MBA HANOI - 2022 RESEARCH TEAM MEMBERS No Name Role Position Academic title Vũ Thị Thanh Hà, MBus Research leader Vice Director, International School of Banking Academy Doti Chee Lee Leng, PhD Secretary Lecturer, International School of Banking Academy Phan Mỹ Linh, MBA Members Coordinator, International School of Banking Academy Martin Ortega-Azurduy, MBA Members Lecturer, International School of Banking Academy Roberto Ercole, PhD Members Lecturer, International School of Banking Academy TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES LIST OF ABBREVIATIONS CHAPTER 1: INTRODUCTION 10 1.1 Introduction 10 1.2 Problem Statement 11 1.3 Research Aims & Objectives 12 1.4 Research Scope 12 1.5 Theoretical Framework 13 1.6 Paradigm of Study 13 1.7 Significance of Research 14 1.8 Summary of Chapter 15 CHAPTER 2: LITERATURE REVIEW 16 2.1 Theoretical Conceptualization 16 2.1.1 SMEs and Its Growth Under Digital Economy 16 2.1.2 Digital Marketing: Opportunities and Challenges 17 2.2 Online Consumer Behavior Influencing Factors 23 2.2.1 Demographic Factors 23 2.2.2 Social Factors 24 2.2.3 Consumer Online Shopping Experience 25 2.2.4 Knowledge of Using Internet and Computer 26 2.2.5 Utilitarianism & Hedonism 28 2.2.6 Switching Costs 29 2.2.7 Marketing content types 31 2.2.8 Digital device types 31 2.2.9 Online advertising types 32 2.2.10 Online advertising channels 33 2.2.11 Online sales promotion strategies 34 2.2.12 Types of products purchased online 35 2.3 Summary of Chapter 35 CHAPTER 3: METHODOLOGY AND DATA ANALYSIS 37 3.1 Research Problems 37 3.2 Research Method and Design 37 3.3 Research Population and Sample 38 3.4 Respondents 39 3.5 Data Gathering Instrument 39 3.6 Consumer Questionnaire 40 3.7 Analysis Tools 42 3.8 Descriptive Analysis 42 3.8.1 Demographics 42 3.8.2 Descriptive Statistics 45 3.9 Summary of Chapter 45 CHAPTER 4: RESULTS AND DISCUSSIONS 46 4.1 Path Coefficients 46 4.2 Indirect Effects 49 4.2.1 Total indirect effects 49 4.2.2 Specific Indirect Effects 52 4.3 Total Effects 55 4.4 R-squared Results 59 4.5 Reliability and Validity 61 CHAPTER 5: RECOMMENDATIONS AND CONCLUSIONS 62 5.1 Implications on SMEs and Recommendations 62 5.1.1 Hedonism 62 5.1.2 Utilitarianism 65 5.1.3 Purchase Intention 67 5.1 Future Research 69 APPENDIX A: CONSUMER QUESTIONNAIRE 70 APPENDIX B: DESCRIPTIVE STATISTICS 76 Source: adapted from Pavlou and Fygenson (2006) 83 APPENDIX C: RELIABILITY AND VALIDITY 84 REFERENCES 89 LIST OF FIGURES Figure 1.1: Research Framework 13 Figure 1.2: Paradigm of the Study 14 Figure 2.1: Social Network Users Worldwide between 2019 and 2024 (in billions, % change, and % of internet users) .17 Figure 2.2: Number of smartphone users worldwide from 2012 to 2021 (in billions) 18 Figure 2.3: Preferred Internet Market Approach in 2016 18 Figure 2.4: Digital Marketing Commercial Impact in 2017 19 Figure 2.5: Theory of reasoned action .23 Figure 2.6: Online consumer decision model 25 Figure 2.7: Forrester’s 5Is .26 Figure 2.8: Forrester’s 5Is Measurements .27 Figure 2.9: Maslow's Hierarchy of Needs .27 Figure 2.10: Online Shopper Hierarchy of Needs 28 Figure 2.11: Switching Costs 33 Figure 2.12: Porter’s Five Forces 34 Figure 3.1: Sample Demographics 42 Figure 4.1: Structural Equation Model Employed, Path Coefficients and R-squared 47 Figure 4.2: Structural Equation Model Employed, Path Coefficients and R-squared 58 Figure 5.1: Hedonism Influence .60 Figure 5.2: Utilitarianism Influence .63 Figure 5.3: Purchase Intention Influence 65 LIST OF TABLES Table 3.1: Krejcie and Morgan Table 37 Table 3.2: Demographics 41 Table 3.3: Frequencies of Gender (GEN) 41 Table 3.4: Frequencies of Age (AGE) 41 Table 3.5: Frequencies of Academic level (EDU) 41 Table 3.6: Frequencies of work status (EMP) 41 Table 3.7: Frequencies of monthly income (INC) 41 Table 4.1: Path Coefficients of Causal Relations Between Variables 46 Table 4.2: Total Indirect Effects on Utilitarianism, Purchase Intention and Actual Purchase 49 Table 4.3: Specific Indirect Effects Through Mediation Relationships 51 Table 4.4: Total Effects Results 55 Table 4.5: R-squared Statistics 57 Table 3.8: Competitive Factors (IFF) 74 Table 3.9: Marketing Contents Types (MCT) 74 Table 3.10: Digital Device Type (DDT) 75 Table 3.11: Sources of Information on Online Purchasing (SIOP) 75 Table 3.12: Online Sales Channels Strategies (OSCS) 76 Table 3.13: Switching Costs (SC) 76 Table 3.14: Online Advertising Channel Strategies (OACS) 77 Table 3.15 Online Advertising Types (OAT) 77 Table 3.16: Online Sales Strategies (OSS) 78 Table 3.17: Word of Mouth (SI-WOM) 78 Table 3.18: Types of Products Purchased Online (TPP) 79 Table 3.19: Purchase Intention (PI) 80 Table 3.20: Utilitarianism (UTN) 80 Table 3.21: Hedonism (HDN) 80 Table 3.22: Actual Purchase (AP) 81 Table 4.6: Construct Reliability and Validity 82 Table 4.7: Discriminant Validity - Fornell-Larcker Criterion 83 Table 4.8: Hetero trait-Monotrait Ratio (HTMT) 84 LIST OF ABBREVIATIONS Small and Medium Sized Enterprises SMEs Independent variables IVs CHAPTER 1: INTRODUCTION 1.1 Introduction There is no doubt that the increasing use of the internet by consumers, using multiple devices, has presented numerous opportunities and challenges in the field of digital marketing, thus unfolding the online consumer behavior becomes a priority for businesses (Pomirleanu et al., 2013) Understanding the online consumer behavior is a crucial element to compete in today's online marketplaces given by the tendency of increasing competition and globalization In particular, the factors that influence the decision making need to be redefined taking into account idiosyncratic elements of online purchase behaviors in comparison to the traditional factors that influence the offline decision making within a physical environment Given by the rapid evolution and adoption of the internet around the world as well as in Vietnam, e-commerce exponentially grows raising concern for businesses how to exploit opportunities and cope with challenges in this fast-growing online marketplace Based on this current tendency, this research attempts to unfold the online customer buying behavior in Vietnam in order to identify opportunities and challenges for Small and Medium Sized Enterprises (SMEs) The main aim of this study is to reveal the critical factors that affect the online actual purchase by consumers in Vietnam, where the actual purchase is employed as a dependent variable The actual purchase is attempted to be explained by several independent variables collected such as purchase intention, hedonism, influencing factors, online sales strategy, and utilitarianism, which are gathered through an ad-hoc questionnaire Based on our empirical analysis, recommendations will be suggested in order to enhance the online actual purchase by consumers, which might lead to an increase in the online performance by SMEs in Vietnam The structure of our research is as follows An introduction to this study is provided within this Chapter A discussion of literature review is offered in Chapter to unfold the main factors affecting the online purchase by consumers Research methodology is investigated in Chapter exposing the data collection and methodology embraced by this research The empirical findings are discussed and visualized in Chapter using the structural equation model Finally, recommendations 10