Report Business Research Methodology Topic Factors Affecting Students' Choice Of Coffee Shop In Ho Chi Minh City.pdf

TOPIC Factors affecting students' choice of coffee shop in Ho Chi Minh City Lecturers NGUYEN THANH LUAN Students NGUYEN DAC TRUONG 205142039 NGUYEN DUC HIEU 205142112 Ho Chi Minh City

TOPIC Factors affecting students' choice of coffee shop in Ho Chi Minh City

Lecturers NGUYEN THANH LUAN

Students NGUYEN DAC TRUONG 205142039 NGUYEN DUC HIEU 205142112

Ho Chi Minh City, October 2022

BUSINESS RESEARCH METHOD RUBRIC ASSESSMENT TOPIC: Factors affecting students choice of coffee shop in Ho Chi Minh City

STUDENTS’ NAME and ID:

Nguyen Dac Truong: 205142039

LECTURER: LUAN THANH NGUYEN

BUSINESS RESEARCH METHOD RUBRIC ASSESSMENT

Ho Chi Minh City, October, 2022 Nguyen Thanh Luan ABSTRACT

This is one of the first topics to research scientifically and systematically about coffee shop services in general and factors affecting students' decision to use coffee shop services in the area Ho Chi Minh City in particular

The obtained results are to classify the factors affecting the choice of coffee shop in order of priority, respectively, the

common perception of the cafe, the social factor, the product characteristics, the The Place element, the Price factor, and

the Promotion factor

Based on the results that the author's team researched and proposed appropriate and practical directions with today's reality, specifically for the influencing factors From there, coffee shop businesses can refer to it to come up with the right business strategies to attract and achieve business efficiency with the student customer segment

1 Problems and research

In HCM city, there are cafes everywhere, from small comers to multi-avenues At present, no one can accurately count how many cafes there are in Ho Chi Minh City, because the distribution density of cafes is very high It is

especially convenient to serve in a cafe in Saigon, where most of the residents live Work, play, study, and meet your friends in the cafe Obviously, the number of customers of this service industry is extremely large The most typical of

that group of customers is students

At present, for cafes, the customer base is a group of potential customers who are unwilling to pay high cost for the products Therefore, the needs of the customer base have been ignored and the service has not been noticed But if you look carefully, the characteristics of students are often gathered together with regular frequency With a place where the largest number of schools in the country are concentrated in HCM, reasonable investment will bring huge profits to cafes

With such a large customer group, what is the important point for coffee shops to conquer these "gods"? How would you choose a coffee shop among the countless shops in Ho Chi Minh City? Why do so many coffee shops meet your needs quite low but exist for a long time while some others with a higher level of response do not attract more students? Which standard is the norm for this customer group?

The problem here is how to determine the factors affecting students’ choice of coffee shop to narrow as much as possible the gap between students’ expectations and real coffee shop business services

The problem posed here is how to determine the factors affecting students’ choice of coffee shop in order to narrow as much as possible the gap between students’ expectations and real coffee shop business services

Therefore, the topic "Factors affecting students' decision to choose a coffee shop in Ho Chi Minh City" will study and analyze the factors affecting students’ decision to use coffee shops This service, at the same time offers solutions to improve and improve the quality of coffee shop business services, to meet the maximum needs of students

2 Objectives

- Identify factors affecting students’ decision to choose a coffee shop in Ho Chi Minh City

- Evaluate the influence of factors on students’ choice decisions for coffee shop business services

- Provide solutions and recommendations to help coffee shop operators improve and develop this service

> The study was conducted to determine the factors affecting students’ decision to choose a coffee shop in Ho Chi

Minh City

3 Research methods and Procedures

The research process was carried out in two steps: Preliminary research and Formal research

Preliminary research Conducted through qualitative research, the group focuses on discussions and interviews to get a better overview and analyze the meaning and add other opinions

- Meta-analysis: Using and synthesizing on the basis of previously studied documents, forming a preliminary scale

- Discussion and exchange: Meet and discuss with the target group to perform the preliminary assessment and adjust the scale

- Formal interview questionnaire

Formal research Conducted through quantitative research by direct interviews through questionnaires and using computer tools to process the data

4 Gaps in the research

During the implementation, the team encountered certain limitations of the study:

Firstly, the scope of the study is the whole of Ho Chi Minh City, the sampling only covers areas with a large

concentration of students as well as cafes and entertainment areas frequented by students, so the results are only approximate

Secondly, the research topic is based on similar research models, there are no homogeneous models, so the scales and variables in the questionnaire are still subjective

Thirdly, the research topic is complex on a diverse research scope but the implementation time is limited, so the data collection may not be large enough to achieve high accuracy as well as lead to the most objective results

Fourth, in the process of processing and collecting data by means of a survey, it is not possible to cover and

completely cover the research problem, so the data may be omitted and affected by other factors (social environment,

geography, etc.)

2 Review Of Literature

2.1 Theory of planned behavior

* History and evolution of the theory

The theoretical model of rational behavior (TRA) was developed by Fishbein] and Ajz enl built in 1975 Put the action manager in the center of the user's actions and define their B

ehavior Guide, which in the Behavior Guide is part of a behavior driven system (for example:

Their usual feelings of like or dislike lead to behavior) and others are standard subjects (Other

people's influences also lead to their regimes) It is a trend-following and trend-following mod

el that is more suited for behavior-oriented users than for product or service-oriented users

Attitude and behavior before and after the test based on reasonable action theory (Hill, 2003) To explain the previous limitations, we should use the personal concept of behavior to

drive behavior, and use the actual definition of behavior and the elements separated from beha vior (Hirnle Deng, 1988) The theory of reasonable action is a model of predicting intention (f ishbein, member in 1975) The model has two main factors: attitude and subjective standard

Fishbein (Martin Fishbein, Ph.D): Ue is a professor in the Department of Psychology and t

he Institute for Media Studies at the University of Illinois at Urbana, IL He is a consultant for

the International Atomic Energy Agency, the Federal Trade Commission and Warner Commu

nications, Inc He is also the co-author of Dr Ajzen's book Beliefs, Attitudes, Intentions and B ehaviors: An Introduction to Theory and Research

' Ajzen (Icek Ajzen): Is a social psychologist and professor emeritus of the University of Mas

sachusetts Amherst, known for his work, with Martin Fishbein, on the Theory of Expected Be

havior Ajzen has been ranked as the most influential individual scientist in social psychology for Research Cumulative Impact, and in 2013 he received the Distinguished Scientist Award f rom the Psychological Association Test His research has been influential across fields as dive rse as advertising, health psychology, and environmental psychology, and has been cited more

than 200,000 times

* Definition of the theory

This theory assumes that behavioral intentions lead to behavior and that intentions are determi

ned by individual attitudes toward the behavior, along with the influence of subjective norms surrounding the performance of those behaviors (Fishbein and Ajzen, 1975) In which, Attitud

e and Subjective Norm are important in behavioral intention

+ The components in the TRA model include:

- Behavior: The actions of the subject are determined by the will of behavior

(Fishbein & Ajzen, 1975, Belief; Attitude, Intention and Behavior: An Introduction to Theor

yand Research, tr 13.)

-Behavioral intention measures the subject's subjective ability to perform a behavior and can be viewed as a special case of belief (Fishbein & Ajzen, 1975, Belief, Attitude, Intention and Behavior: An Introduction to Theory and Resear

ch, tr 12.) Determined by an individual's attitude towards behaviors and subjective norms

-Attitudes are attitudes toward an action or behavior, expressing an individual's positive or negative perceptions abo

ut performing a behavior, which can be measured by synthesis of strong beliefs and assessment of these beliefs (Hale, 20 03) If the outcome is personally beneficial, they may intend to engage in the behavio (Fishbein & Ajzen, 1975, Belief, A

ttitude, Intention and Behavior: An Introduction to Theory and Research, tr 13)

-Subjective norms are defined as an individual's perception, with important references of that individual, that the beh avior should or should not be performed (Fishbein & Ajzen, 1975) Subjective norms can be measured across people inv olved with consumers, as determined by normative beliefs about behavior expectations and personal motivations to perfo

rm in accordance with those expectations

( Fishbein & Ajzen, 1975, Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research, t

r 16)

Strength of the theory

-The TRA model is similar to the three-component attitudinal model, but it combines three components: cognitive, affect ive, and propensity components arranged in a different order from the three-way vertical model element part The attit ude measurement method in the TRA model is similar to the multi-attribute attitude model However, the TRA model ex plains in more detail than the multi-attribute model because there is a more subjective component

Limitation of the theory :

~ The theory of rational action TRA is limited in predicting the performance of consumer behaviors over which they cann

ot control because the model ignores the importance of social factors on reality Economics can be a determinant of indiv idual behavior (Grandon & Peter P Mykytyn 2004; Werner 2004)

* Theory of Planned Behavior

- Given the limitations of the theory of rational action (TRA), Ajzen (1991) improved this model into the theory o

f planned behavior (TPB) The theory has been widely used and studied for human behavior, especially those rela

ted to the quality of individual and community life

- There are three basic determinants in this theory, (1) the individual factor is the individual's attitude towards the

behavior about the positive or negative of performing the behavior, (2) about the perceived intention the person's social p ressure, as it copes with perceived normative pressures or compulsions, is called the subjective norm, and (3) ultimately t

he determinant of self-perception (self-efficacy) or the ability to perform a behavior, is called cognitive behavioral contro

1 (Ajzen, 2005) The theory suggests the importance of attitude towards behavior, subjective norm and cognitive behavior

al control leading to the formation of a behavioral intention

The coffee shop business is a service business, so the coffee shop's products will also be different from normal tangible products Within the limits of this topic, the authors research and propose product characteristics of coffee shops, including: Tangible products are coffee, food and drinks served at the cafe; Intangible products that the shop serves and sells to customers are beliefs, attitudes, style and product quality

From there, the group came up with the first hypothesis H1: Product characteristics have

an influence on students’ decision to choose a coffee shop in Ho Chi Minh City

H2 Service

The relationship between service and customer satisfaction has been a topic of discussion among

researchers for decades Many studies on customer satisfaction in service industries have been carried out (Kumar Baksi & Bhusan Parida, n.d.; Seth et al., n.d.) Services have an impact on

customer satisfaction, and indirectly and directly affect customer loyalty (Kumar, 2021) One of the aspects of service in the coffee shop business is the staff's service capacity, attitude, respect,

and ability to satisfy customers Many studies have tested the positive relationship of service

capacity factor with customer satisfaction (Candidate Ubedullah Amjad Ali SHAIKH & Naveed U

r Rehman KHAN, n.d.; Chow & Luk, 2005)

In addition, with the increasing demand of people When a number of cafes begin to appear, there

is no difference in visible products, and service becomes the best competitive edge This is the factor that most customers will pay attention to and decide whether to use the service or not A cafe with good service areas (excluding other factors) will more or less make a good impression

on customers Customers are very good students As long as they are not satisfied with the service

of the cafe, they can "turn their backs" Therefore, students are willing to provide more funds for

the services they deserve This is obviously reflected in the brand cafes in Ho Chi Minh City

Although the price is not less than that of students, these customers are our best choice

Therefore, the group put forward the second hypothesis H2: Service has an influence on students’ decision to choose a coffee shop in Ho Chi Minh City

H3 Tangible Media

When going to a coffee shop, students do not simply buy coffee The problem is that they also

"buy" the services, facilities of that cafe for a certain period of time The tangible facilities such

as facilities, equipment, service space of the cafe will be one of the "products" that customers who are students want to use when coming to the cafe Maybe it's not the coffee shop they frequent Therefore, when faced with choices when deciding to go to a coffee shop, this group of

customers will be greatly affected when they see certain differences in tangible means between

shops Depending on the needs at the time of use in terms of space, wifi, location that customers will make a decision (Lee & Jeng, 2003)

For that reason, the group put forward the third hypothesis H3: Yangible means have an influence

on students’ decision to choose a coffee shop in Ho Chi Minh City

H4: Price

Within the defined scope, the payment amount of a product or service Broadly speaking, price is the total value that consumers spend in exchange for products or services (Kotler, 2005) When purchasing a product, customers always consider the value between their required value and the value of the required product, and they always hope that these two factors are equal or equal in value, which may lead to higher cost of the product Product price creation attracts or returns customers, service (Monroe, 2012) especially when price is a function of product quality In a competitive environment, customers are usually used to comparing different suppliers (Shankar & Rangaswamy, 2001) this is even more important for products of a clearly standardized nature Many different studies show the relationship between product and service prices and customer

satisfaction and choice decisions(Opata et al., 2021; Shankar & Rangaswamy, 2001), in which the

perception of a good price will create satisfaction and influence the consumption decision of customers

In addition, the world is in the development stage of industrial revolution 4.0- Network revolution, which includes the application of virtual reality technology, Internet and objects (oT), 3D printing, big data and artificial intelligence in various fields of life and economy In order not to reduce the consequences of business, especially the service enterprises, they are required to constantly change their service enterprises to meet the market demand In addition, with the convenience of the Internet, customers can easily search for information and compare the prices

between cafe business models, which is also one of the behaviors that have an impact on

customers

According to these conclusions, the fourth Hypothesis: Prices will affect the choice of cafes for college students in Ho Chi Minh City

HS: Distribution system

The distribution system includes the processes, methods and tools you use to provide your virtual

products to your service personnel

In Ho Chi Minh City - the largest economic center in the country with a population density of 3,888 people/km?2 (in 2015)’, it is understandable that coffee shops are developed and densely

1 Nâng tằm dich vu (translated by Trân Lê), Nhà xuâât bản trẻ, Ha Noi, Viet Nam, p 329

2 Sôâ liệu của Tổng cục Thôâng kê, 2015

distributed The presence of many cafes means that students in this area will have a variety of choices when they need to use it However, the inevitable consequence is the difficulty of making decisions Based on the initial criteria that I have set to choose the restaurant, but also inevitably

the obstacles of geographical location, so customers will have alternatives to meet their choices

Therefore, the distribution of branches and coffee shop chains has a great impact on whether students can easily use the products of that store or not

So, we put forward the fifth hypothesis H5: Location has an influence on students’ decision to choose a coffee shop in Ho Chi Minh City

H6: Promotion

Although the price difference between cafes is not expected, students pay special attention to the

promotion activities of shops, especially shops (such as Cheese coffee, Starbucks coffee, etc.)

Under the viaduct, this customer can choose not to go to the cafe you are familiar with if there is

an opportunity At the same time, it also affects consumers’ needs and gets the recommended intimate customer psychology

We hypothesize the sixth hypothesis H6: Promotion also has an influence on students’

decision to choose a coffee shop in HCMC

H7: Social factors

At present, consumers’ shopping process is influenced by external factors, especially social factors, such as reference group, family, role and social status Factors influencing the purchase/use of services and products (Kotler et al., n.d.) Connected with the world we live in

now a day the power of social harmony is constantly increasing in various fields Customers are

paying more and more attention to the opinions of other customers Research shows that revealed

that 83% of examiners in 60 countries rely on friends and family as the "most reliable advertising"

source, and 66% pay attention to the opinions of others online (Rummo et al., 2020; Shoaie et al.,

2015)

Particularly for coffee shops, students are more easily influenced by reference groups because

they are the ones who confirm the quality of that coffee shop

Therefore, the group put forward the seventh theory H7: Social factors determine the cafe

choice of college students in Ho Chi Minh City

Summary

This part introduces the overview, related concepts and theoretical basis of cafe business

market The influencing factors determine the choice attitude and related research mode of college

students’ coffee in Ho Chi Minh City, and suggest the scope of the research object

* Conceptual Framework

The conceptual framework shown in this figure is based on the hypotheses discussed above to assess the impact of those variables on students' intention to choose a coffee shop

4 Methodology

Research methodology

Data were collected from several locations in the Ho Chi Minh City area, due to the relativ

ely high population density (9.35% of the population of Vietnam)

Website: https://worldpopulationreview.com/countries/vietnam-population

In Ho Chi Minh City, sensory evaluation shows that more and more people agree with the

number of cafes Along with that, the trend can be seen clearly, in recent years a large number of y

oung people participating in the market have put pressure on the market, especially customers who

are students, who have a lot of leisure time free time and have the need to frequent cafes, whether

at street cafes or expensive famous brand cafes

st number of schools in the country are concentrated in TP, a reasonable investment can make a huge profit for cafes

Website: https://diendantuyensinh24h.com/danh-sach-cac-truong-dai-hoc-khu-vuc-tp-hem/

Besides the traditional coffee shop models such as toad coffee, sidewalk coffee, flat coffee or small

coffee shops, the introduction of large coffee chain brands from abroad into the Vietnamese market such as Starbuck, The Coffee Bean, and the formation of domestic brands such as Trung Nguyen, Highlands Coffee or The Coffee House have created a diverse and dynamic coffee business market, targeting many different customers According to a report by market research firm Euromonitor, the coffee shop chain model in Vietnam is growing at about 7% a year (https://vnbusiness vn/business-doanh-nghiep/cuoc-dua-chuoi-ca-phe-

1071197 html) It is predicted that the coffee chain will flourish in the next few years and gradually improve with the growth of the independent coffee shop model

The minimum sample was estimated using G*Power software to be 103 given the presence of 7 exogenous constructs and a significance level of 0.05 to achieve a statistical power of 95% As such, the sample size of 120 obtained from the distribution of 120 surveys which translates to a response rate of 100%

is sufficient

Table 1 - Measurement items

Constructs and adapted sources of survey items

Constructs Measurement items Sources

* The influence of factors related to Product Features (TPF)

TPF1 I feel confident about the quality of the products at the coffee shop I usually choose choose (ThG et al., n.d.)

TPF2 I see the coffee shop's products have their own characteristics

al., 2019a)

TPF4 Regularly develop new products to serve the diverse needs of customers

al., 2019b)

* The influence of Service-related actors ( TA )

TA3 _ The staff handles the business quickly and accurately

TA4 Jam satisfied with the service waiting time (Kumar Baksi & Bhusan Parida, n.d.; Seth et al.,

nd.)

networks