Trang 1 THE UNIVERSITY OF DANANGUNIVERSITY OF ECONOMICSFACULTY OF INTERNATIONAL BUSINESSBACHELOR’S THESIS Trang 2 Danang, Nov 2023ABSTRACTThis study, based on the fundamental literature
THE UNIVERSITY OF DANANG UNIVERSITY OF ECONOMICS FACULTY OF INTERNATIONAL BUSINESS BACHELOR’S THESIS ANALYSIS OF FACTORS AFFECTING PURCHASE INTENTION FOR DIETARY SUPPLEMENTS IN URBAN AREAS OF VIETNAM Student: Luong Tran Thuy Tien Class: 45K01.1 Instructor: MA Bui Thanh Huan Danang, Nov 2023 ABSTRACT This study, based on the fundamental literature of the Theory of Planned Behavior, has examined the factors predicting purchase intention of Vietnamese people in terms of the dietary supplement products The model also introduces two independent variables including health consciousness and country-of-origin, which is often considered as the moderating factors in the correlation between attitude and purchase intent Quantitative method is employed in the study with the non-probability sampling method applied to ensure representativeness of the population Survey is carried with 220 participants, who are currently living in the urban areas of Vietnam, since they could be considered as ideal consumers for dietary supplement market The findings indicated that the factor with the greatest influence on the intention to buy dietary supplements was subjective norms, while attitude, health consciousness, country of origin, and perceived behavioral control had progressively decreasing impacts, with the latter factor having the weakest influence In overall, the results help to give not only marketers and in business management fields but also regulatory authorities and consumers the insight toward how purchase intention is shaped and strongly affected, giving the premise for better strategies Key words: purchase intention, theory of planned behavior, country of origin, health consciousness, dietary supplement ACKNOWLEDGEMENTS I am deeply indebted to the individuals who have contributed to the successful completion of my bachelor's thesis at the University of Economics – the University of Danang Foremost, I would like to express my sincere appreciation to my supervisor, MA Bui Thanh Huan, for his invaluable guidance and insightful recommendations throughout this study His meticulous assistance has played a crucial role in ensuring the careful and thorough execution of every aspect of my research Without his invaluable support, it would have been challenging for me to accomplish this work to such a high standard Additionally, I would like to extend my gratitude to all the lecturers at the university Their knowledge and experience shared in the classroom have greatly contributed to my academic development and facilitated the successful completion of my Bachelor's Degree I would also like to acknowledge the unwavering support and encouragement from my friends during my academic journey The camaraderie and shared experiences we had at school hold a special place in my heart Lastly, I would like to express my deep and heartfelt appreciation to my parents and younger brother Their constant presence, inspiration, and unwavering support have been my driving force in completing my Bachelor's Degree I am truly grateful for their unwavering commitment and belief in my abilities TABLE OF CONTENTS ABSTRACT .i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii INTRODUCTION 1.1 Rationale 1.2 Research objectives 1.3 Scope of research .4 1.4 Research method 1.5 The practical and theoretical significance of the research 1.6 The structure of the thesis: CHAPTER LITERATURE REVIEW AND RESEARCH MODEL 2.1 Dietary Supplement 2.1.1 Overview about dietary supplement 2.1.2 Classification of dietary supplement: .7 2.2 Purchase Intention .8 2.3 Theory of Planned Behavior 10 2.3.1 Theory of Planned Behavior 10 2.3.2 Attitude 11 2.3.3 Subjective norms 12 2.3.4 Perceived behavioral control 14 2.4 Country of origin .14 2.5 Health consciousness 16 2.6 Research Model 17 CHAPTER METHODOLOGY .18 3.1 Data collection 18 3.2 Measurements 18 3.2.1 Measurement scales .18 3.2.2 Design of the questionnaire 20 3.3 Data method 20 3.3.1 Data Processing and Analysis 20 CHAPTER RESEARCH RESULT 24 4.1 The Demographic Summary .24 4.2 Reliability Analysis 25 4.3 Exploratory Factor Analysis .27 4.3.1 Exploratory factor analysis of independent variables 27 4.3.2 Exploratory factor analysis of dependent variables 29 4.4 Model and hypothesis testing 30 4.4.1 Pearson correlation analysis 30 4.4.2 Multiple linear regression analysis 31 4.5 Results of Hypothesis Testing and Model Evaluation 36 CHAPTER SUMMARY AND RECOMMENDATIONS 38 5.1 SUMMARY OF FINDINGS AND SIGNIFICANCE 38 5.1.1 Research Findings Summary 38 5.1.2 Comparing with previous research findings 38 5.1.3 Research Significance 39 5.2 Recommendation 40 5.2.1 For regulatory authorities 40 5.2.2 Regarding Business Management 41 5.2.3 For consumers 43 5.3 Limitations .43 CONCLUSION 45 REFERENCES 46 LIST OF TABLES Table 3.1 Measurement Scales Error! Bookmark not defined Table 4.1 Summary of the Demographic Information Error! Bookmark not defined Table 4.2 Cronbach's Alpha coefficients of independent and dependent variablesError! Bookmark not defined Table 4.3 KMO test result .Error! Bookmark not defined Table 4.4 EFA results of independent variables Error! Bookmark not defined Table 4.5 EFA results Error! Bookmark not defined Table 4.6 Pearson correlation analysis Error! Bookmark not defined Table 4.7 The results of assessing the model fit and autocorrelation.Error! Bookmark not defined Table 4.8 The results of the analysis of variance (ANOVA) Error! Bookmark not defined Table 4.9 The parameters of the regression model Error! Bookmark not defined Table 4.10 Results of Hypothesis Testing 36 Table 8.1 Gender 54 Table 8.2 Age 54 Table 8.3 Educational 54 Table 8.4 Income 54 Table 8.5 Experience .55 Table 8.6 Reliability Statistics .55 Table 8.7 Item-Total Statistics .55 Table 8.8 Reliability Statistics .55 Table 8.9 Item-Total Statistics .55 Table 8.10 Reliability Statistics .55 Table 8.11 Item-Total Statistics .56 Table 8.12 Reliability Statistics .56 Table 8.13 Item-Total Statistics .56 Table 8.14 Reliability Statistics .56 Table 8.15 Item-Total Statistics .56 Table 8.16 Reliability Statistics .57 Table 17 Item-Total Statistics 57 Table 8.18 KMO and Bartlett's Test 57 Table 8.19 Total Variance Explained 57 Table 8.20 Rotated Component Matrixa 58 Table 8.21 KMO and Bartlett's Test 58 Table 8.22 Total Variance Explained 58 Table 8.23 Component Matrixa 59 Table 8.24 Correlations 59 Table 8.25 Model Summaryb 60 Table 8.26 ANOVAa .60 Table 8.27 Coefficients 60 LIST OF FIG Y Figure 2.1 Consumer Decision-making Process Error! Bookmark not defined Figure 2.2 The Theory of Planned Behavior Error! Bookmark not defined Figure 2.3 Research Model Error! Bookmark not defined Figure 4.1 Histogram Frequency Chart Error! Bookmark not defined Figure 4.2 Frequency Q-Q Plot Chart Error! Bookmark not defined Figure 4.3 Scatter Plot of Residuals .Error! Bookmark not defined Figure 4.4 Results of the research model validation Error! Bookmark not defined INTRODUCTION CHAPTER Rationale Recent decades have witnessed an increase in health-related issues globally, which may bring about a lower quality of life by shortened life expectancies or chronic diseases This has raised the health awareness in both developing and developed countries, along with preoccupation about the sedentary lifestyles, made healthcare sector one of the most invested and attention-received industries, especially under the severe effects of Covid-19 pandemic around the world[CITATION Hea21 \l 1033 ] Previous studies pointed out that consumers are becoming more and more cognitive about the vital role of nutrition in maintaining a healthy life as well as preventing illnesses The research of Alwan et al (2021) found that the majority of respondents believed that nutrition is important for maintaining good health Menozzi, et al (2021) argues that buyers have a positive attitude towards healthy eating and perceive healthy foods as more attractive, tastier, and more satisfying than unhealthy foods Come along with the awareness, knowledge about nutrient of customers is also more and more broadened [ CITATION Asm21 \l 1033 ] Purchasers with greater nutrition knowledge tend to associate with healthier eating behaviors and a higher likelihood of engaging in physical activity [ CITATION Tin20 \l 1033 ] Consequently, the growing concern among consumers about maintaining their health and well-being has been a significant factor in the recent rise in the popularity of dietary supplements According to data from the market research firm Grand View Research, the global dietary supplements market size was valued at USD 140.3 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.6% from 2021 to 2028 The United States is the largest market for dietary supplements, accounting for approximately 36% of global sales in 2020 Other major markets for dietary supplements include China (23% of global sales), Japan (9% of global sales), and Germany (5% of global sales) However, the demand for dietary supplements in developed countries has reached its limit, prompting companies to consider expanding their operations into foreign markets Meanwhile, due to the high occurrence of malnutrition and nutrient deficiencies, as well as an increasing demand for health products, developing countries hold great promise as a potential market for dietary supplements [ CITATION Zul22 \l 1033 ] Significantly, the demand for nutraceutical products in Asia has seen a rapid growth owing to the increasing affluence of the middle-class population Vietnam, which has a vast population of about 97 million people and is among the rapidly-growing economies in Southeast Asia, presents opportunities for the nutraceutical industry The country’s expanding economy, together with the rising demand for products that promote health in Vietnam, indicates a promising prospect [ CITATION Ngh20 \l 1033 ] A report by Euromonitor International (2020) states that the sales of dietary supplements in Vietnam reached US$423 million in 2020 with a total market growth rate of 13% Vietnamese are paying more and more attention to their health, which is having consumption, dietary positive impacts on healthy food supplement consumption, and dietary supplement In 2022, Rakuten Insight conducted a study that found approximately 68% of Vietnamese participants reported taking dietary supplements or nutraceuticals Most of the users stated they consumed these products on a daily basis Perceiving the growing demand for health-caring, the Vietnamese government has implemented various measures to improve