An empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goodsAn empirical study of the intention of vietnamese consummers to purchase luxury goods
UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Truong Thi Xuan Thao AN EMPIRICAL STUDY OF THE INTENTION OF VIETNAMESE CONSUMERS TO PURCHASE LUXURY GOODS MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Truong Thi Xuan Thao AN EMPIRICAL STUDY OF THE INTENTION OF VIETNAMESE CONSUMERS TO PURCHASE LUXURY GOODS ID: 21110021 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr. NGUYEN THI MAI TRANG Ho Chi Minh City - Year 2014 ACKNOWLEDGEMENT Firstly, I would like to express my gratefulness to my supervisor Dr. Nguyen Thi Mai Trang for her professional guidance, intensive support, valuable suggestions, instructions and encouragement during the time of doing my research. I would like to express my deepest gratitude to Professor Nguyen Dong Phong, Professor Nguyen Dinh Tho, Dr. Tran Ha Minh Quan for their valuable time as the members of the proposal examination committee. Their comments and meaningful suggestions were contributed significantly for my completion of this research. My sincere thanks are given to all of my teachers at International Business School – University of Economics Ho Chi Minh City for their teaching and guidance during my Master course. ABSTRACT In recent years, the strong development of economy has increased significantly the number of rich people in Vietnam. Higher disposal income together with economic globalization leads to more concern to luxury products among Vietnamese people, especially in Ho Chi Minh City. This trend opens many opportunities and challenges for international luxury companies who plan to enter Vietnam’s market. In an effort to help luxury companies have an overview about consumers’ behavior in such market, this study examines influencing factors that affect Vietnamese consumers’ attitude towards purchasing luxury goods and their purchase intent of luxury goods. Employing regression analyses, the research findings indicate that brand consciousness, materialism, and the need for uniqueness have significant impact on attitude towards purchasing luxury goods among Vietnamese consumers. In addition, consumers’ purchasing intention of luxury goods is affected by their attitude towards buying luxury goods. Practical and managerial implications are also further discussed. Keywords: luxury goods, attitude towards purchasing luxury goods, purchase intent TABLE OF CONTENTS ACKNOWLEDGEMENT ABSTRACT TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES CHAPTER 1: INTRODUCTION 1 1.1 Research background 1 1.2 Research gap 3 1.3 Research objectives 5 1.4 Research methodology and research scope 6 1.5 Research contribution 6 1.6 Research structure 7 CHAPTER 2: LITERATURE REVIEW 8 2.1 Luxury goods 8 2.2 Attitude towards purchasing luxury goods and purchase intent 9 2.3 Brand consciousness 11 2.4 Social influence 13 2.5 Materialism 15 2.6 The need for uniqueness 17 2.7 The conceptual model and hypotheses of the research 18 CHAPTER 3: RESEARCH METHODOLOGY 21 3.1 Sample 21 3.2 Data collection and procedure 22 3.3 Questionnaire design 25 3.4 Data analysis method 28 CHAPTER 4: DATA ANALYSIS AND RESULTS 30 4.1 Respondents’ demographics 30 4.2 Reliability Analysis 31 4.3 Exploratory Factor Analysis (EFA) 34 4.3.1 EFA for Independent variables 34 4.3.2 EFA for Dependent variables 36 4.4 Regression Analysis 37 4.4.1 Simple Regression Analysis 37 4.4.2 Multiple Regression Analysis 39 CHAPTER 5: CONCLUSION, IMPLICATIONS AND LIMITATIONS 47 5.1 Conclusion 47 5.2 Managerial Implications 48 5.3 Limitations and future research 52 REFERENCES 53 APPENDICES 59 LIST OF FIGURES Figure 2.1: A theoretical model 19 Figure 3.1: Research Process 24 Figure E1: Histogram of Attitude 68 Figure E2: Normal Plot of Attitude 68 Figure E3: Scatter Plot of Attitude 69 LIST OF TABLES Table 3.1 Source of data collection 25 Table 3.2 Source of measurement scale 27 Table 4.1 Respondents’ characteristics 31 Table 4.2 Reliability test result 33 Table 4.3 KMO and Bartlett's Test of Independent Variables 34 Table 4.4 Rotated Component Matrix of Independent Variables 35 Table 4.5 KMO and Bartlett's Test of Dependent Variables 36 Table 4.6 Rotated Component Matrix of Dependent variables 37 Table 4.7 Model Summary of simple regression analysis 37 Table 4.8 ANOVA of simple regression analysis 38 Table 4.9 Coefficients of simple regression analysis 38 Table 4.10 Correlations matrix 41 Table 4.11 Model Summary of multiple regression analysis 42 Table 4.12 ANOVA of multiple regression analysis 42 Table 4.13 Coefficients of multiple regression analysis 43 Table 4.14 Summary of hypotheses testing result 46 Table D1: Total Variance Explained of Independent Variables 67 Table D2: Total Variance Explained of Dependent Variables 67 Table D3: Model Summary of multiple regression analysis 67 - 1 - CHAPTER 1: INTRODUCTION 1.1 Research background For many years, people around the world have satisfied themselves with the possession of beautiful and valuable products. As a result, luxury goods have become the hot issue of many discussions and debates. Today, consumers have at higher discretionary income than ever before. Income has increased throughout social classes, but dramatically in the wealthiest groups (Husic & Cicic, 2009). Current consumers are willing to spend significantly more amounts of money for luxury products. Luxury products are known as the products that perceived premium quality, unique style, designed by well-known luxury brands, and limited accessibility (Hung et al., 2011). In recent years, luxury products have now become easily affordable to more consumers, especially for consumers from the middle class who make more money than ever before (Sun, 2011) and therefore luxury brands have the chance to develop and establish their brand- name worldwide. Especially, the fast growth of economy in Asian countries has opened more opportunities for consumers in those countries accessing luxury products. According to Zhang and Kim (2013), Asia is starting to be recognized as a growing market in luxury sales besides traditional markets such as Europe and the U.S. Increasing exposure to global media and the popularization of Western lifestyles through local media seem to have increased the desire for high-quality goods and services among consumers in emerging markets (Belk, as cited in Shukla, 2012). Moreover, around 61 percent Asia-Pacific customers show their willingness of spending their hard-earned money on luxury products, higher than any other area in the world, according to the result of a survey done by Nielsen (Moodley, 2013). With regard to luxury products and services, studying the consumers‟ attitude towards luxury goods in emerging markets is particularly important due to the tremendous growth of luxury - 2 - consumption among consumers in those markets. Researchers believe that the rapid increasing of new rich consumers in emerging markets is one of the determinants that makes these markets become attractive to luxury firms around the world (Shukla, 2012). China, India, Malaysia, Thailand, and Turkey are out-standing representatives of emerging markets in terms of luxury goods consumption (Shukla, 2012). Especially, China in recent time has become one of the biggest luxury markets in Asia-Pacific region (Zhang & Kim, 2013). Although Vietnam is not a potential market of luxury products like China is, many luxury brands determine to choose Vietnam as destination for their market expansion strategy. Most of well-known luxury brands worldwide such as Mercedes Benz, Apple, particularly fashion luxury brands as Louis Vuitton, Hermes, Rolex, Calvin Klein, Christian Dior…have already announced their entry in the Vietnam‟s market. There are some reasons that make Vietnam be more attractive to luxury brands. According to a report of Lee (2012), Vietnam has seen rapid aurbanisation, rising new wealth and higher disposable income among population. Those are significant advantages together with the perception of luxury goods as the driving factor in the “tangibalisation of success” that make Vietnam become a hot destination for the luxury market (Lee, 2012). The desire of showing success and wealth is generally driven by a small of group of rich people, as well as younger population in Vietnam who are trying to make a social recognition through what they wear outside. Hence, using luxury products will be the best way to help Vietnamese people fulfill such desire. This trend has already supported by a research of Nguyen and Tambyah (2011). In their research, they argue that in Vietnam the consumption of luxury goods, brands, and symbols that are associated with status has rooted in hearts and minds of a large part of Vietnamese population, and the trend is becoming widespread (Nguyen & Tambyah, 2011). Especially, under the impact of economic integration between Vietnam and other parts of the world, many foreign luxury brands officially broaden their business to Vietnam. As a result, people [...]... of the participation, and the intention and importance of the survey Screening question was the following question: “Do you know luxury products?” The respondents would answer the screening question before started doing the survey If anyone answered “No” it meant that they were not the target respondents of this survey and they would stop their job Beside, because luxury was an abstract concept and... needs of uniqueness For one thing, uniqueness is an attribute of luxury products Thus, acquisition of luxury goods can express the purpose of the owners is differentiating themselves from others and enhancing their personal identity Stated differently, consumers who want to emphasize their personal identity love to purchase luxury items That is also the motivation for most of luxury brands in the world... communications, luxury goods become more popular to consumers when there are many and many people can afford to buy a luxury product The difference between this kind of goods and other kinds of commodities is that luxury goods are often very expensive, perceived premium quality and produced with limited quantities, such as Rolex watches, Louis Vuitton handbags, Banana shirts, Gianni Versaci suits, and Lexus... attitude towards purchasing luxury goods and intention to purchase luxury goods -6- 1.4 Research methodology and research scope This study uses questionnaire to collect data The survey questionnaire is originally developed in English and then translated into Vietnamese In-depth interviews are then conducted with eight people in order to modify the Vietnamese version of the questionnaire before the survey... the demand to identify or improve personal image in the others‟ opinion through the possession and use of products and brands, the willingness to conform to the expectations of others regarding purchase decisions, and the tendency to learn about products by observing others or seeking information from others (Bearden et al., 1989) Conceptually, this means certain products and brands are used to provide... requires luxury firms to do deliberately and deeply studies to find out what factors stimulate using luxury items of consumers In order to further understand the consumers‟ purchase intent of luxury products; it is helpful to know how they perceive or their attitude towards purchasing luxury products Stated differently, the key factors associated with consumers‟ attitude towards purchasing luxury goods. .. such gap this study aims to investigate whether brand consciousness, materialism, social influence, and the need of uniqueness influence on consumers‟ attitude towards purchasing luxury goods in the context of Vietnam 1.3 Research objectives The overall objective of this study is to examine some factors influencing the intention to purchase luxury goods Specifically, it investigates: - The relationship... Apple There are many reasons for Vietnamese consumers to prefer iPhone to other kinds of smartphone According to Dam (2013), beside out-standing features of iPhone, Vietnamese people believe that using iPhone brings them the feeling of success and higher social status and being admired by others which they cannot feel when using other phones 1.2 Research gap Purchasing luxury goods in Vietnam can be... City market In summary, the findings of this study would be useful for luxury brand marketers who want to penetrate the business in Ho Chi Minh City and who have already developed in the market and want to maintain the loyalty of their customers 1.6 Research structure This study is organized into five chapters It starts with the introduction chapter which presents an outline of this research This chapter... includes background of the research, motivation for doing research, and research objectives Besides, the significance that this study contributes to management practice as well as scope of the research and methodology of data analysis are also mentioned in the first chapter Chapter two reviews and synthesizes the theories in the literature of seven concepts, including luxury goods, brand consciousness, . UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Truong Thi Xuan Thao AN EMPIRICAL STUDY OF THE INTENTION OF VIETNAMESE CONSUMERS TO PURCHASE LUXURY GOODS. purchasing luxury goods in the context of Vietnam. 1.3 Research objectives The overall objective of this study is to examine some factors influencing the intention to purchase luxury goods. Specifically,. towards purchasing luxury goods. - And finally, the relationship between attitude towards purchasing luxury goods and intention to purchase luxury goods. - 6 - 1.4 Research methodology and