Trang 5 4 Research aims and objectives The overall objective of the project is to investigate the factors affecting the buying behaviour of bubble tea among young people from 11 years ol
FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION *** RESEARCH PROPOSAL CONSUMER BEHAVIOUR AND SELECTION CRITERIA FOR PURCHASING BUBBLE TEA OF GEN Z IN HANOI Major: HQ Hospitality Management Course code: KTEE206.7 Lecturer: MSc Nguyen Minh Phuong Group: 02 Hanoi, April 2023 LIST OF MEMBERS No Student Name Student ID Contribution percentage Trịnh Thị Mỹ An 2211250616 14,28% Bùi Lan Anh 2213920003 14,28% Nguyễn Thị Vân Anh 2213920005 14,28% Doãn Phương Linh 2213920013 14,28% Nguyễn Khánh Linh 2212920014 14,28% Nguyễn Thu Trang 2213920025 14,28% Nguyễn Minh Tường 2212920022 14,28% Contents Abstract Introduction Research questions Research aims and objectives Subjects and Scope of the Research Overview of content Chapter 1: Vietnam bubble tea market and an overview of relevant studies on customer behaviour in choosing bubble tea products 1.1 Theoretical Basis 1.2 Vietnam bubble tea market 1.3 Factors influencing young people's bubble tea choices 1.4 Gaps in existing knowledge about factors affecting customer behaviour in making buying decisions about bubble tea Chapter 2: Introduction to the research, research methods, research rationale, and research sample 2.1 Introduction to the research 2.2 Research methods 2.2.1 Qualitative research design 2.2.2 Quantitative research design 2.3 Research rationale 2.4 Research sample 10 2.5 Data collection methods 10 2.6 Ethical concerns 11 Chapter 3: Research schedule 11 Chapter 4: Research suggested results and discussion 11 4.1 Conclusion 11 4.2 Discussion: The battle for the Vietnamese taste bud 12 REFERENCES 12 ATTACHMENT 15 Abstract Bubble tea is a gold mine industry in Vietnam However, competition in the bubble tea market in Vietnam is a fierce marathon There are over 100 brands already and many more famous names are flocking in In large cities like Hà Nội, it is easy to find bubble tea stores belonging to major brands like Mixue, Alley, Gongcha, Phúc Long, Ten Ren, and Royaltea There are also many smaller stores with cheaper prices run by small business people This makes consumers more choices and also pushes businesses that are trading this item into fierce competition To create a competitive advantage over competitors and expand market share, businesses need to strive to occupy a distinctive and distinctive position in the minds of customers Therefore, understanding customer behaviours and market competitive demographic is important for both new entrants and firms in this fast-changing industry This research aims to investigate consumer behaviour and selection criteria for purchasing bubble tea of Gen Z in Hanoi - Vietnam Furthermore, we use this research as a suggested solution to develop more bubble tea brands in Hanoi, contributing to helping businesses orient their strategies accordingly, meeting the needs of customers in the best way, improving reputation and expanding the market Data will be collected longitudinally using semi-structured interviews, a questionnaire, and online reports from the Food and Beverage field and bubble tea brands in Hanoi The study’s regression model analysis suggests that there are some specific factors influencing the young to choose bubble tea over other beverages (1) Quality of service, (2) Location, (3) Space, (4) Promotion, (5) Price and (6) Health insurance Introduction Research questions What is the level of affection and habit of drinking bubble tea among Hanoi youth? What factors influence buying behaviour of bubble tea products? Consumer's assessment of how much each factor affects their buying behaviour? The level of awareness of bubble tea and factors affecting the choice of a bubble tea product to use? Relationship between factors with bubble tea products and evaluations of media campaigns of bubble tea products? Research aims and objectives The overall objective of the project is to investigate the factors affecting the buying behaviour of bubble tea among young people (from 11 years old to 28 years old) in Hanoi In addition, the research gives suggestions for suitable solutions to help bubble tea brands doing business in Hanoi and marketing measures to attract customers and satisfy their needs The study has the following specific objectives: Find out the reality of consuming bubble tea by young people in Hanoi How to identify the needs, perceptions, desires, preferences and factors affecting the behaviour of young people in Hanoi to choose to buy different types of bubble tea brands Evaluate the research and offer solutions to help managers make suggestions to improve product quality, plan pricing policies, distribution policies to satisfy customer needs Subjects and Scope of the Research a Subjects: Our research focuses on a group of young people from 11 years old to 28 years old in Hanoi as this generation witnessed consuming the biggest number of bubble tea products We divide this group into small groups include: Secondary and high school students: from 11 years old to 18 years old University students: from 19 years old to 22 years old Employed young people: from 23 years old to 28 years old Due to the limitation of time and labour, we will not include the group of unemployed young people b Scope: The research will be conducted in Hanoi, and the subjects of the research are mentioned in the above part Timescale of the research will be processed from April 17, 2023 to May 20, 2023 The research will be conducted in two main steps: Preliminary research and formal research Overview of content The content of the research proposal consists of: Chapter 1: Vietnam bubble tea market and an overview of relevant studies on customer behaviour in choosing bubble tea products Chapter 2: Introduction to the research, research methods, research rationale, and research sample Chapter 3: Research schedule Chapter 4: Research suggested results and discussion Chapter 1: Vietnam bubble tea market and an overview of relevant studies on customer behaviour in choosing bubble tea products 1.1 Theoretical Basis Bubble tea, also known as boba tea or pearl milk tea, is a popular drink that originated in Taiwan in the 1980s It is made by blending tea with milk or fruit juice and adding chewy tapioca pearls or fruit jelly Bubble tea has become increasingly popular around the world, particularly among young people, and is now a ubiquitous presence in many cities, with some chains boasting hundreds or even thousands of locations worldwide According to a report by Allied Market Research, the global bubble tea market was valued at $2.4 billion in 2019 and is projected to reach $4.3 billion by 2027, growing at a CAGR of 7.8% from 2020 to 2027 (Allied Market Research, 2020) The growth of the bubble tea market can be attributed to several factors, including the increasing popularity of the drink among young people, the expansion of bubble tea chains into new markets, and the development of new flavours and variations of the drink 1.2 Vietnam bubble tea market The bubble tea market in Vietnam is becoming more and more flourishing than ever with the integration of a series of large and small bubble tea brands, developing from domestic to imported brands Bubble tea brands such as Mixue, Dingtea, TocoToco, Royal Tea, Gong Cha Phuc Long are becoming one of the brands with the strongest growth in the Vietnam bubble tea market Document continues below Discover more from: Phương pháp nghiên cứu… KTEE206 Trường Đại học… 15 documents Go to course Chapter AP SV 23 Slide giao trinh môn… Phương pháp… 100% (1) Chapter AP SV 48 Slide giao trinh môn… Phương pháp… 100% (1) Chapter AP SV 57 Slide giao trinh mơn… Phương pháp nghiên cứu… None Ơn tập mơn PPNC 16 PPNC Phương pháp nghiên cứu… None phương pháp nghiên 22 cứu Phương pháp nghiên cứu… None Multiple - CHAPTER 41 Phương pháp nghiên cứu… None Figure 1: Milk tea shops popularity in Hanoi The research of milk tea market in Vietnam in 2017 showed that: 73% recognizes the milk tea, the ratio is higher at elders (88%) Friends are the main channel in awareness about milk tea, followed by the stores near my place/studying/working & see everyone around drink it 91% drinks milk tea, the ratio is higher at youngsters with 95% When talking about milk tea, delicious, relax & for youth are the images used visualization most with 30% above In Hanoi, Ding Tea is the shop visited most with 49%, followed by Toco Toco (16%) and Gong Cha (9%) Bad price, bad location & bad quality are the main reasons make people give up the shops According to a recently published study, every year, Vietnamese people spend about 8,400 billion VND, on milk tea The price range of 30,000-70,000 VND for a cup of milk tea is said to be much higher than the average income of young people Ignoring the expensive, a part of young people still drink 2-3 cups of milk tea per day In Hanoi, it is not difficult to find a shop selling milk tea, even less than 300 meters down the street there are 3-4 shops with all different brands of milk tea Assessing the success of the milk tea selling model in recent years, experts believe that the milk tea industry will continue to develop in the coming time, growing steadily at a rate of 5.7% per year and will continue to increase until 2020, to meet the needs of young people (15-34 years old), the potential audience accounts for more than 30% of the population of Vietnam 1.3 Factors influencing young people's bubble tea choices Factors influencing bubble tea choices can be categorized into several broad categories, including individual factors, social factors, and environmental factors Individual factors refer to personal preferences, taste preferences, and nutritional considerations Social factors refer to the influence of social networks, peers, and social norms on bubble tea choices Environmental factors refer to the physical and situational contexts in which bubble tea choices are made Other specific factors that may influence bubble tea choices include Price: the cost of a bubble tea can significantly impact an individual's decision to purchase it Brand loyalty: an individual may have a strong preference for a particular brand of beverage and choose to stick with it Health considerations: an individual may choose to drink a beverage that has health benefits or that does not have adverse health effects Age: different age groups may have different preferences for beverages Gender: gender may also play a role in beverage choices, with some beverages being more popular among one gender than the other Culture and ethnicity: cultural and ethnic background can also influence beverage preferences and choices Overall, understanding the factors that influence bubble tea choices is essential for developing effective marketing strategies, designing healthy beverage options, and promoting healthy drinking habits among individuals 1.4 Gaps in existing knowledge about factors affecting customer behaviour in making buying decisions about bubble tea While there is a growing body of research on the factors influencing young people's beverage choices, most of this research has focused on carbonated soft drinks and energy drinks, with little attention paid to bubble tea Given the popularity of bubble tea among young people, it is important to understand the factors that drive their choices Additionally, while there have been concerns raised about the potential health effects of bubble tea, there is a lack of research on this topic This literature review highlights the need for further research on the factors influencing young people's bubble tea The gaps in the literature section may highlight the need for more research on how the availability of bubble tea shops in a particular area affects young people's decisions to choose bubble tea over other drinks Additionally, the section may identify the need for more research on how the price of bubble tea compared to other drinks affects young people's decisions By identifying these gaps in the literature, the proposed study can make a significant contribution to the field by providing new insights into the factors that influence young people's decisions to choose bubble tea over other drinks Chapter 2: Introduction to the research, research methods, research rationale, and research sample 2.1 Introduction to the research Due to the growing bubble tea market, it is imperative that businesses come up with appropriate marketing strategies to meet the needs of customers as well as attract and retain customers To this, businesses must first grasp and understand the status, psychology, habits of customers, and the factors affecting the purchase choice, then discover and offer solutions for themselves appropriate law This study was conducted to find out the factors that affect the buying behaviour of young people today, and at the same time, it also assesses the levels of influence on consumers' purchasing decisions, thereby giving the best opinions solutions to help brands attract more customers 2.2 Research methods This study will choose two research methods that are qualitative and quantitative research methods Qualitative methods aim to gain an in-depth understanding of human behaviour and the reasons that influence it Quantitive methods can test or identify theories and assumptions by measurements such as experiments, observations, recorded data, surveys with closed questions, etc 2.2.1 Qualitative research design a Identify secondary information and information sources Research and search for data related to the topic including young people data of Hanoi, the number of milk tea shops in Hanoi and other information such as: Articles, research papers, essays, internet related to the research topic b Population and Sample Qualitative research is an exploratory, qualitative research project conducted by a small group of research subjects Therefore, when researching this topic, we will choose the sample elements who are 300 young people living and studying in Hanoi c Methods of selecting research subjects For sampling methods, we used the “snowball sampling” method to provide reliable results This method involved using a non-probability convenience sample as a method Personal and referral contacts are used to acquire qualified participants for an online survey via the Google Forms platform Purpose of the sampling methods: Find out Gen Z’s attitudes and habits regarding milk tea consumption Factors affecting milk tea buying behaviour Consumer judgments and evaluations about different milk tea brands Properties: Suitable for the reality of every Gen Z’s life today 2.2.2 Quantitative research design a Population and Sample The goal of the research is "the consumption behaviour of bubble tea of young people in Hanoi", this is a topic quite close to today's young people, therefore choosing a sample is not too difficult Due to limited time and resources, the research subjects we choose are three groups of Gen Z including secondary and high school students, university students and employed young people We will choose a sample of 100 people in each group, from different groups and ages in Hanoi This choice has two reasons: First: Everyone in the research area is diverse, from the group who are non-finance to the group who can earn money on their own Therefore, the result of the research will be comprehensive and selected Second: Due to the limited time and limited cost of conducting the research, the survey with a sample size of 300 young people is suitable for economic conditions b Quantitative sampling method We use the convenience sampling method as this is a research topic related to a popular drink among students today, and everyone can give correct and accurate results when interviewed c Interview method: Using direct interview methods by questionnaire and online interview 2.3 Research rationale Necessary source of information for manufacturers in recognizing "young people's milk tea consumption behaviour" to develop appropriate business strategies and meet the needs of young consumers nowadays 10 From the results and evaluation of the study, manufacturers can define strategies to position products, and milk tea brands, improve quality, and service, diversify, improve products, and create more quality products to satisfy the demand of increasing bubble tea consumption among young consumers in Hanoi 2.4 Research sample For sampling methods, we used the “snowball sampling” method to provide reliable results This method involved using a non-probability convenience sample as a method Personal and referral contacts are used to acquire qualified participants for an online survey via the Google Forms platform The target sample group is given a set of questionnaires to complete in order to collect data for the study The questionnaire consists of sections The first section asks the respondents about demographic and general information including name, gender, age, income and career The remaining sections of the questionnaire consist of 4-point Likert scale (1 = strongly disagree, = strongly agree) items The first section of the questionnaire consists of statements related to the bubble tea product The second section of the questionnaire consists of statements used to measure price consciousness The third section of the questionnaire refers to the statements used to measure the importance of the bubble tea shops’ destinations The fourth section of the questionnaire consists of statements used to measure factors of promotion from the respondents’ contacts The fifth section of the questionnaire refers to the items used to measure the social factors influencing their choices of bubble tea The sixth section of the questionnaire consists of statements about the respondents’ economic factors The last section of the questionnaire includes statements concerning the respondents’ lifestyles 2.5 Data collection methods For the data collection, we utilize secondary data including: Survey secondary data from organisations’ surveys and academics’ surveys Document secondary data from magazine articles In general, it is much less expensive and time-consuming to use secondary data than to collect the data initially, especially where the data can be downloaded as a file that is compatible with our analysis software We can discuss the provided comparative and contextual data and result in unforeseen discoveries and new insights However, aggregations and definitions of bubble tea may be unsuitable and there is no real control over data quality The process of researching data will be based on Internet access and library access We prioritize the data from the annual report of the Vietnam Food and Beverage Industry and the survey on buying bubble tea products 11 2.6 Ethical concerns Ethical issues Example Voluntary participation Participants are free to opt-in or out of the study at any point in time Informed consent Participants know the purpose, benefits, risks, and funding behind the study before they agree or decline to join Anonymity Personally identifiable data is not collected Confidentiality You know who the participants are but you keep that information hidden from everyone else You anonymize personally identifiable data so that it can’t be linked to other data by anyone else Results communication You ensure your work is free of plagiarism or research misconduct, and you accurately represent your results Chapter 3: Research schedule The timescale of the research started from April 17, 2023 to May 20, 2023 A sheet of the research schedule is attached at the end of this research Chapter 4: Research suggested results and discussion 4.1 Conclusion This study attempts to look into young people's purchasing choices for bubble milk tea in Vietnam Retailers might develop tactics, plans, and culinary recipes to increase their income by taking into account factors influencing people's perceptions of their purchasing decisions, as well as elements like the influence of the marketing mix (4Ps) on what drives them to buy bubble milk tea In recent years, milk tea has become an addictive drink for young people in Vietnam Considered a billion-dollar market, milk tea still has great development potential and is fertile ground for the F&B industry Additionally, this study shed light on the broader pattern of bubble tea's rising popularity in the beverage sector Below are the suggested results based on other previous research on the customer behaviour of buying bubble tea in Vietnam: 12 For students who have a habit of using bubble tea, the level of using bubble tea is quite high The percentage of women who frequently go to bubble tea shops is higher than that of men Research results show that the majority of students go to drink milk tea in their free time and usually go with friends and relatives mainly Some brands need to adjust prices and marketing strategies to attract customers For students' interest in a milk tea shop, food hygiene and safety are still very concerned by students, as that security issue is also a concern by students On the other hand, businesses need to pay attention to promotions: Students are interested in getting a promotional discount after each purchase and getting a VIP card In addition, door-to-door delivery service has also begun to be interesting for students 4.2 Discussion: The battle for the Vietnamese taste bud With higher income and living standards and a big proportion of Millennials, the city witnesses a mushrooming number of tea and coffee shops opening (and also closing) every day, ranging from global giants, and regional chains to local chains, start-ups and small independent stores Tea-based drinks are proven more popular by penetrating over half of the HCMC population while coffee reaches about one-third of the city’s population Among the top choices for savory tea drinks, milk tea is the favorite option, which has been on average, bought by one out of five Saigoneses at least once in September 2018, followed by peach tea and matcha or green tea However, since 2019, while coffee chains have continuously expanded, the number of milk tea shops has decreased sharply over the past time, according to Q&Me's Vietnam Modern Retail Store Trends 2023 report Specifically, from 2019 to 2023, the number of coffee shops has increased from 816 to 1,657 Meanwhile, this number in the milk tea market did not change much, even decreasing from 446 to 364 stores Milk tea fever has shown signs of slowing down in the past years However, this slowdown almost coincides with the Covid-19 epidemic, when the whole F&B industry faced many difficulties The potential of the bubble tea market is still huge, however, brands should be renewed to survive in the competitive industry REFERENCES Asia Plus Inc Nhu cầu trà sữa Việt Nam Qandme (2017) Available at https://qandme.net/vi/baibaocao/nhu-cau-tra-sua-o-viet-nam.html [Accessed 18 Apr 2023] 13 Bubble tea, a gold mine attracting investors Viet Nam News (2019) Available at https://vietnamnews.vn/economy/518477/bubble-tea-a-gold-mine-attractinginvestors.html [Accessed 18 Apr 2023] Bùi Anh Đô (2017) Nghiên cứu hành vi tiêu dùng trà sữa thương hiệu Ding Tea giới trẻ Hà Nội đề xuất giải pháp phát triển Diệu Thanh (2023) Trà sữa “thất thế” trước cà phê Zing Available at https://zingnews.vn/tra-sua-that-the-truoc-ca-phe-post1422584.html [Accessed 22 Apr 2023] Drewnowski, A and Monsivais, P (2020) Taste, cost, convenience, and food choices Present Knowledge in Nutrition San Diego, CA: Elsevier, pp 185–200 French, S A., Story, M and Jeffery, R W (2001) Environmental influences on eating and physical activity Annual review of public health May, pp 309–335 Mueller Loose, S and Jaeger, S R (2012) Factors that influence beverage choices at meal times An application of the food choice kaleidoscope framework Appetite Vol 59 Issue 3, Dec, pp 826–836 Grier, S A and Kumanyika, S K (2008) The context for choice: health implications of targeted food and beverage marketing to African Americans American journal of public health 10 Oct 2010, pp 1616–1629 Insider V (2018) Tea vs Coffee: The battle for the Vietnamese tastebud Vietnam Insider, 26 Oct Available at https://vietnaminsider.vn/vi/tea-vs-coffee-thebattle-for-the-vietnamese-tastebud/ [Accessed 20 Apr 2023] 10.Nhóm sinh viên trường ĐH Kinh tế HCM (2017) Nghiên cứu thực trạng tiêu dùng trà sữa sinh viên trường ĐH Kinh tế HCM 11.Seifert, S M (2016) Health Effects of Energy Drinks on Children, Adolescents, and Young Adults Pediatrics May, pp 511-528 12.Thảo Thu, Nguyễn Linh (2022) Mỗi năm ném 20-40 triệu đồng vào trà sữa, gen Z Việt nghĩ gì? Báo Dân Trí Available at https://dantri.com.vn/kinh-doanh/moinam-nem-20-40-trieu-dong-vao-tra-sua-gen-z-viet-nghi-gi20220907115226816.htm [Accessed 18 Apr 2023] 13.Thắng Nguyễn (2018) Thị trường trà sữa Việt Nam “mỏ vàng cho doanh nghiệp” 31 Jun 14.Trần Như Ngọc (2018) Nghiên cứu hành vi thái độ người tiêu dùng quán trà sữa Hoa Hướng Dương 14 15.VNA (2022) Vietnam remains huge potential market for bubble tea VietnamPlus Available at https://en.vietnamplus.vn/vietnam-remains-hugepotential-market-for-bubble-tea/236428.vnp [Accessed 20 Apr 2023] 15 ATTACHMENT Survey questionnaire: Factors affecting customer behaviour and selection criteria for purchasing bubble tea in Hanoi FACTORS AFFECTING CUSTOMER BEHAVIOUR AND SELECTION CRITERIA FOR PURCHASING BUBBLE TEA IN HANOI SURVEY QUESTIONNAIRE Your name: Gender: (Male/Female/Rather not say) Age: _ Monthly budget: Job: Strongly Agree agree Question PRODUCT I buy bubble tea because of its health benefits I buy bubble tea because of the brand I buy bubble tea because the packaging is eye-catching I buy bubble tea because of its taste I buy bubble tea because of its attractive design PRICE I buy bubble tea regardless of its price I buy bubble tea because it is cheaper than other beverages Disagree Strongly disagree 16 I buy bubble tea because its price fits my allowance I buy bubble tea because I find its price reasonable for the satisfaction it gives me I buy bubble tea because I find it affordable PLACE I buy bubble tea because the bubble tea shop is near my school I buy bubble tea because the bubble tea shops are near my home I buy bubble tea because the bubble tea shops are near my daily route to school I buy bubble tea because the bubble tea shop has an appealing ambience I buy bubble tea because the service in bubble tea shops is good PROMOTION I buy bubble tea because my friend recommended it to me I buy bubble tea because of its printed advertisements I buy bubble tea because I saw a promotion online 17 I buy bubble tea because my idol is promoting it I buy bubble tea because of previous reviews and recommendations SOCIAL My knowledge of bubble tea is not influenced by secondary sources such as family/friends, internet and advertisements etc My decision in buying bubble tea is heavily influenced by my family/friends I am irritated when my family/friends don’t patronize my favourite bubble tea brand I feel left behind whenever others buy bubble tea when I have none I buy bubble tea just to join the current trend ECONOMIC I spend from 30.000VNĐ to 50.000VNĐ in buying bubble tea I experienced borrowing money in order to buy bubble tea I can’t save money consuming bubble tea because of 18 I spend the majority of my allowance because of my consumption of bubble tea I experience sacrificing other purchases for bubble tea LIFESTYLE My consumption of bubble tea made me difficult to sleep My consumption of bubble tea resulted in the increase of my pimples My consumption of bubble tea made me experience constipation My consumption of bubble tea has given me enough energy and alertness each day My consumption of bubble tea has become a part of my daily routine or diet Research schedule sheet