measuring consumption behavior of powdered milk for children in ho chi minh city

MEASURING CONSUMPTION BEHAVIOR OF POWDERED MILK FOR CHILDREN IN HO CHI MINH CITY Summary Purpose of the study: Food supplements have long been considered a very important part of hum

HỌC PHÀN: PHƯƠNG PHÁP NGHIÊN CỨU KHOA HỌC

Nhóm sinh viên thực hiện: Nhóm

Giảng viên hướng dẫn: TS Hoàng Chí Cương

Mã lớp học phần: 223_71BUSI40153_01

TP HCM, 20

DANH SACH NHOM

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MEASURING CONSUMPTION BEHAVIOR OF POWDERED MILK FOR CHILDREN IN HO CHI MINH CITY

Summary Purpose of the study: Food supplements have long been considered a very important part of human health Especially for children, the age group in which dietary supplements are in the development stage is indispensable Understanding that, powdered milk businesses are increasingly growing with the aim of improving satisfaction and supplementing nutrients for children, one of the growing and most popular businesses at all levels The parent company is the Abbott repair company To be able to grow and reach Vietnamese parents and keep up with the pace of market development This article will aim to survey and analyze the reasons why customers approach the brand Furthermore, consider whether current approaches are deviating from customer satisfaction and customer satisfaction Their consumption behavior in Ho Chi Minh City is not After that, accurate information and parameters will be provided so that the approach can be edited and changed to have a higher accuracy

rate

Design/Research method: The data was collected by the team through 6401 surveys compiled by the team with customers im the Ho Chi Minh City area From there, use PLS-SEM to analyze data and statistics to have accurate information for timely response methods

Result : The study shows that through 3 independent variables, they all have a strong influence on the purchase intention (Powdered milk) of parents of young children and to meet customer satisfaction through the product

Practical consequences: The purpose of the article is to analyze parents’ consumption behavior in the powdered milk market to consider whether the market approach is effective or not

Originality and value: This article studies customer consumption behavior of the powdered milk market in Ho Chi Minh City

Key word : Abbott milk powder, Brand, Price, Quality, Purchase intention Article type: Research article

1 INTRODUCTION With the skyrocketing economic development in recent years, especially Vietnam's increasingly international economic integration, barriers to production and export are no longer a problem Serious problems have gradually been removed, thanks to which the dairy market in Vietnam has also developed and become more and more diverse thanks to the appearance of suppliers from other countries such as Dutch lady, Friso, Enfalac, Nestle, Furthermore, because it is a product that supplements essential nutrients for children's bodies and helps increase the immune system and prevent diseases, it holds a fairly high market share and 1s sustainable compared to other products

According to the General Statistics Office of Vietnam in 2020-2021, the total revenue of the milk market in Vietnam has reached 113,700 billion VND in 2020 and 119,300 billion VND in 2021 In which powdered milk products account for a not small market share compared to The remaining liquid milk products are still a potential market after achieving large revenues This product is mainly consumed in urban areas, accounting for about 30% and has a guaranteed demand level, higher product quality and is also a convenient central location for logistics and transportation services Furthermore, most of them often buy in large quantities so that the quantity can be used by family members Compared to the countryside, although it accounts for a high proportion of the population, the income per capita is still quite low, making the use of powdered milk products in rural areas quite limited and difficult to distribute and more transportation However, thanks to Vietnam's economic integration, rural people have also been raised in their awareness of using nutritional supplements when necessary, therefore This is also a potential market that will develop strongly in the future Understanding the positive changes in powdered milk products in the future and measuring consumers’ consumption behavior is an open door to reaping success for businesses in Ho Chi Minh City as well as businesses present in Vietnam in general Grasping those essential keys, we decided to deploy "measuring consumer behavior of powdered milk in Ho Chi Minh City" with the goal of evaluating and analyzing the impacts and factors affecting thoughts of consumers here and find out the factors that are having the greatest influence From there, have an overview of people's behavior here to come up with accurate solutions to improve the situation improve the weaknesses that businesses trading in this product still lack 2 Literature Review

2.1 Theoretical basis of consumer behavior

Consumer behavior is a continuous process between consumers' reactions and their stimulation to purchase and experience goods and services from the production side (Solomon, 2006)

Later, consumer behavior according to Philip Kotler was developed based on his model including the process of researching, selecting, using and finally making judgments about the products or services they receive (Philip Kotler, 2023)

According to Schiffman and Kanuk, they assert that consumer behavior is defined as the entire exchange behavior of customers before making a purchase, which is the search, measurement, and arrangement of products, services, and intentions if they satisfy their needs From there, understand clearly the needs and desires of consumers Companies across the country are also focusing and trying to identify and meet the exact needs of their potential customers instead of trying to scale up or spend large sums of money to serve towards brand awareness through marketing (Kanuk, 2022)

Especially at the present time, the concept of brand is widely circulated in the marketing world today According to the world intellectual property organization, "brand" is conceptualized as a special sign (tangible and invisible) to identify a certain product or service produced or provided granted by an individual or an organization (WIPO, 2023) Since then, the brand has always been owned by the manufacturing businesses, built by them to build trust, advantage, and consensus when making decisions to buy their products Therefore, branding plays a very important role in both large and small businesses today

To better understand based on David Aaker's model, brands are divided into the following sub-branches: (1) brand awareness, (2) brand loyalty, (3) brand association , (4) brand trust, (5) perceived value First, talking about (1) brand awareness, that factor is how businesses build their image and credibility with those who are already thinking about choosing that product is considered the initial step for the level of awareness of the business (2) Next, after the customer has used the product that the business brings, it is considered a contract for them to be able to measure the level of reliability and retain customers who trust products and services (3) Brand association will create a general psychological effect when customers who have used the service through communication and word of mouth of the brands will receive greater awareness when distinguishing goods, quality, safety when using the goods Therefore, (4) Brand trust established in the market is more advantageous (Aaker, 2024 )

Therefore, brand factors clearly impact customers' purchasing intentions, so the team proposes the following hypothesis:

+ H1: Brand factors directly affect customers! purchasing intentions Price:

Regarding the price factor, prices have always been proportional to income is based on the theory of Mr Jeffrey M Perloff, an economist who studies microeconomics (Perloff, 2018)

Prices are closely related to the budget line ( income ) which is limited by them When income and prices of goods change, the demand curve, also known as a vertical shift, is based on the income that their customers bring This proves that prices must be considered carefully before being put on the market for sale

In addition, Jeffrey M.Perloff also analyzed that prices will be associated with deciding which products or services should be brought to market, how to produce them, and who will use those items Moreover, price also directly affects more detailed actions than small interactions to ensure that they make a decision to use a

product that brings absolute advantage and usefulness that satisfies their needs needs that they set out for themselves

Determine the importance of price in influencing customers’ purchasing decisions The proposed price factor is hypothetically:

+ H2: Price: directly affects customers’ purchase intention Quality:

Quality is an indispensable factor in using this measurement model The reason is that quality has a strong influence on consumers at the present time, when the general psychology of customers is afraid of poor quality products that can cause unpredictable consequences such as diseases diseases, consequences later, after a long time of using those products from unreliable suppliers Furthermore, the quality will definitely leave a mark of customer loyalty once used and feel the value and benefits that product brings to yourself For businesses, quality always comes with reputation once it has gained customer priority in choosing products, demand is increasing day by day and from that consumption will shape or even help Businesses scale widely with competitors

Based on research by (Armstrong, 2013), quality is defined as “the degree of excellence with which a product meets stated or implied needs” On the other hand, quality is also emphasized based on the concept ofEdwards Deming “the degree of uniformity of a product or service with market needs” and he believed that it must be continuously improved to retain customers and keep up with the times (Millar, 2017) Based on the above bases, quality factors closely affect customers! purchasing behavior and the hypothesis is:

+ H3: Quality affects customers' purchasing behavior 3 Research methods:

Based on the proposed hypotheses, the purpose of conducting the survey is to analyze and evaluate the impact of three independent variables on consumers’ purchasing intentions that the research team focuses on The customer base studied is mainly women (from 20-50 years old) living and working in Ho Chi Minh City Quantitative research method was used to collect data through a questionnaire survey set up in the form of a 5-level Likert scale "1-strongly disagree, 2-disagree, 3- somewhat neutral, 4-agree and 5-completely agree" Specifically, the questionnaire was designed to measure the influence of each independent variable on consumers'

purchasing intentions The questionnaire structure is carefully designed to ensure reasonableness and reliability in measuring the variables that need to be researched The survey period was conducted from the first month of March 2024 to the beginning of April 2024 with a total survey of up to 6,401 votes With the support of SmartPls - software 3.0 evaluates the reliability of the ratio, measurement model and path coefficients between variables

The results obtained will be analyzed using appropriate statistical and data analysis methods to test the research hypotheses The results will provide necessary information and data about the relationship between price, brand and quality in predicting consumers’ purchase intentions

3.1 Methods used: Probability sampling method, which is error-controlled and highly representative of the 211 population, is used for descriptive research Non-probability sampling method saves 212 time and costs Sample size and number of samples are used to evaluate 213 the appropriate sampling method for a study

Iai1~ql)Z2 2

n=——n— Where: g: Sampling rate equals target occurrence rate 0 < q > 1

2

ZXs = axx|) 2 2

(6) Collect and evaluate for the first time (7) Calibration

(8) Second assessment (9) Conclusion

BN3 | Abbott is the first brand I think of when I | 0.733 need to buy baby milk

products to others

(H2)

compared to other brands P3 Product price is often an important factor | 0.829

when I consider purchasing baby formula

P4 I often compare the price of Abbott milk | 0.773 with similar products when buying

hygiene Q3 Abbott milk tastes good and is processed | 0.801

to high standards

maintains quality with each purchase

Intention (PI)

brand to Abbott products when it meets

Figure 2.Measurement scales Outer loadings range from 0.707 to 0.829 Demonstrate that the questions are carefully selected and accurately reflect the content to be learned

4 Research results and discussion:

4.1 Research results

Properties: Correlation between indicators in a scale

K 2

2%,

i=1

K-1 |g (3)

Where: K: Number of indicators in a scale oy : Variance of a particular indicator Yi Final, o},: The total variance of all indicators

BN_

| Q_- | 0.826 0.742 0.803

Figure 4.HIMT The above results show that there is no discriminatory value between the two latent variables and the results show that the HTMT index is < 1 According to (Fornell, 1981 ) This result is completely satisfactory and ensures the discriminant value between the two latent variables and the model is rational for use

Collinearity Statistics (VIF)

| Outer VIF Values _| Inner VIF Values

VIF

BN1 1.599

BN2 1.429 BN3 1.471 BN4 1.468

P1 1.614 P2 1.704

P4 1.590 PI1 1.118 PI2 1.544 PI3 1.592 O1 1.278

O2 1.370 O3 1.201 O4 1.200

Figure 5 ]E value

Results table The VIF value shows that VIF < 2, we can conclude that there 1s no multicollinearity phenomenon This shows that each variable in the proposed model contributes information independently, without being affected by the fluctuations of other variables Based on the results of estimating the impact of 15 survey questions, this study shows that 3 independent variables all affect the purchasing intentions of consumers in Ho Chi Minh City