FACTORS AFFECTING THE CUSTOMER’S PURCHASE INTENTION - THE CASE OF ONLINE GROUPON (ONLINE PURCHASING GROUP) IN HCMC In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business By Mr. Lu Van Phan Nho ID: MBA04025 International University - Vietnam National University HCMC September 2013 FACTORS AFFECTING THE CUSTOMER’S INTENTION - THE CASE OF ONLINE GROUPON (ONLINE PURCHASING GROUP) IN HCMC In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business by Mr. Lu Van Phan Nho ID: MBA04025 International University - Vietnam National University HCMC September 2013 Under the guidance and approval of the committee, and approved by all its members, this thesis has been accepted in partial fulfillment of the requirements for the degree. Approved: ---------------------------------------------Chairperson --------------------------------------------Advisor: Dr. Ho Nhut Quang ---------------------------------------------Committee member --------------------------------------------Committee member ---------------------------------------------Committee member --------------------------------------------Committee member Acknowledge This study would not have been completed without the kind guidance and the support of my supervisor, my family and friends. First of all, I would like to express my profound gratitude and appreciation to my supervisor Dr. Ho Nhut Quang for his valuable guidance, advices and recommendations throughout this research. Thank you for your kind support every time I am in need for consultation. I would like to express my great appreciation to all the teachers of the Master’s program in the International University, who imparted their knowledge and experience to me during the past two years. I would like to give special thanks to my beloved family which has been my inspiration throughout the past time and always been the endless source of joy in my life. It is also my pleasure to have the opportunity to study with classmates from MBAIU04 who have shared with me their impressive knowledge and skills during the challenging courses of the MBA program. Finally, I would like to thank the members of the Examination Committee for taking time and giving valuable comments so that I could improve this thesis. -i- Plagiarism Statements I would like to declare that, apart from the acknowledged references, this thesis either does not use language, ideas, or other original material from anyone; or has not been previously submitted to any other educational and research programs or institutions. I fully understand that any writings in this thesis contradicted to the above statement will automatically lead to the rejection from the MBA program at the International University – Vietnam National University Ho Chi Minh City. - ii - Copyright Statement This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author’s prior consent. © Lu Van Phan Nho/MBA04025/2011-2013 - iii - Table of Contents Chapter One – Introduction ............................................................................................ 1 1.1. Research Backgroud .......................................................................................... 2 1.2. Problems Of Research ....................................................................................... 5 1.3. Research Questions ............................................................................................ 6 1.4. Research Objectives ........................................................................................... 6 1.4.1. General objectives ........................................................................................ 6 1.4.2. Specific objectives ........................................................................................ 6 1.5. Research Scopes and Limitations ..................................................................... 7 1.6. Significant Of Research ..................................................................................... 7 1.7. Structure of Research ........................................................................................ 7 Chapter Two: Literature Review ................................................................................... 9 2.1. Previous Research ............................................................................................ 10 2.1.1. Charles Dennis, Bill Merrilees, ChanakaJayawardhena, Len Tiu Wright’s model .......................................................................................................... 10 2.1.2. Philip K.Hellier-Gus, M. Geursen-Rodney A. Carr-John A.Rickard’s model 11 2.2. Chen And Dubinsky’s Model .......................................................................... 12 2.3. Conceptual Model of Thesis ............................................................................ 12 2.4. Related Concepts .............................................................................................. 14 2.4.1. Purchasing intention.................................................................................. 14 2.4.2. Perceived customer value........................................................................... 14 2.4.3. Easy to Use The Website. ........................................................................... 17 - iv - 2.4.4. Customer Service........................................................................................ 18 Chapter 3 Research Methodology ................................................................................. 19 3.1. Research Methodology ..................................................................................... 20 3.1.1. Research frameworks................................................................................. 21 3.2. Qualitative Research Methods ........................................................................ 21 3.3. Quantitative Research Methods ...................................................................... 22 3.3.1. Questionnaire design ................................................................................. 22 3.3.2. Measures..................................................................................................... 22 3.3.3. Sampling design ......................................................................................... 23 3.4. Data Analysis Techniques................................................................................ 23 3.4.1. Descriptive statistics ................................................................................... 24 3.4.2. Reliability tests............................................................................................ 24 3.4.3. Exploratory factor analysis........................................................................ 24 3.4.4. Correlation testing...................................................................................... 26 3.4.5. Regression analysis. ................................................................................... 26 3.4.6. Path analysis .............................................................................................. 29 Chapter Four: Data Analysis and Finding .................................................................. 31 4.1. Profile of Sample .............................................................................................. 32 4.2. Characteristics of Sample ................................................................................ 32 4.2.1. Gender ........................................................................................................ 32 4.2.2. Age .............................................................................................................. 33 4.2.3. Experience of online shopping .................................................................. 33 4.2.4. Highest education ...................................................................................... 34 -v- 4.2.5. 4.3. Monthly income.......................................................................................... 34 Descriptive Statistics ........................................................................................ 35 4.3.1. Valence of Experience ............................................................................... 35 4.3.2. Trust ............................................................................................................ 36 4.3.3. Product Price .............................................................................................. 37 4.3.4. Perceived Product Quality ......................................................................... 37 4.3.5. Perceived Customer Value ......................................................................... 38 4.3.6. Websites Brand ........................................................................................... 38 4.3.7. Customer Intention .................................................................................... 39 4.4. Reliability Tests ................................................................................................ 39 4.4.1. Valence of Experience ............................................................................... 39 4.4.2. Trust ............................................................................................................ 40 4.4.3. Product Price .............................................................................................. 41 4.4.4. Perceived Product Quality ......................................................................... 42 4.4.5. Perceived Customer Value ......................................................................... 43 4.4.6. Website Brand ............................................................................................ 44 4.5. Exploratory Factor Analysis (EFA)................................................................ 45 4.5.1. Exploratory factor analysis for independent variables (IDVs) ................ 46 4.5.2. Exploratory factor analysis for Perceived Customer Value ..................... 49 4.6. Revision of Research Model And Hypotheses ............................................... 50 4.7. Reliability Tests After Exploratory Factor Analysis .................................... 51 4.7.1. Reliability test for Trust & Perceived Quality after EFA ......................... 51 4.7.2. Reliability test for Product Price after EFA .............................................. 52 - vi - 4.7.3. Reliability test for Easy to Use Website after EFA ................................... 52 4.7.4. Reliability test for Customer Services after EFA ...................................... 53 4.7.5. Reliability test for Website Brand after EFA ............................................ 53 4.7.6. Reliability test for Perceived Customer Value after EFA......................... 54 4.8. Correlation Testing .......................................................................................... 55 4.9. Regression Analysis .......................................................................................... 57 4.9.1. Linear regression of Model 1..................................................................... 57 4.9.2. Linear Regression of Model 2 ................................................................... 59 4.9.3. Linear regression of Model 3..................................................................... 61 4.10. Hypotheses Testing Result ............................................................................... 63 4.11. Relationship between Independent and Dependent Variables .................... 64 4.12. Path Analysis .................................................................................................... 64 Chapter 5: Conclusions and Recommendation ............................................................ 66 5.1. Summary ........................................................................................................... 67 5.2. Conclusion ......................................................................................................... 67 5.2.1. Easy to Use Website ................................................................................... 69 5.2.2. Customer Service........................................................................................ 69 5.2.3. Trust and Perceived Product Quality ........................................................ 69 5.2.4. Perceived Price ........................................................................................... 70 5.2.5. Perceived Customer Value ......................................................................... 71 5.2.6. Website Brand ............................................................................................ 71 5.2.7. Purchase Intention ..................................................................................... 71 5.3. Limitation And Recommendation For Future Research.............................. 72 - vii - Appendix 1: The Questionnaires ................................................................................... 76 Appendix 2 – Exploratory Factor Analysis .................................................................. 79 - viii - List of figures Figure 1: Definition of group online purchasing ................................................................ 3 Figure 2: Statistics of Sales ................................................................................................. 4 Figure 3: Statistics of Sales 2 .............................................................................................. 4 Figure 4: Charles Dennis, Bill Merrilees, ChanakaJayawardhena, Len Tiu Wright’s model................................................................................................................................. 10 Figure 5: Philip K.Hellier-Gus, M. Geursen-Rodney A. Carr-John A.Rickard’s model .. 11 Figure 6: Chen and Dubinsky’s model ............................................................................. 12 Figure 7: Conceptual model .............................................................................................. 13 Figure 8: Research frameworks ........................................................................................ 21 Figure 9: Percent of accept or reject questionnaires. ........................................................ 32 Figure 10: Revised Conceptual Research Model .............................................................. 50 Figure 11: Diagram of relationship between independents and dependent variable ........ 64 - ix - List of table Table 1: Interpreting Strength of Path Coefficients .......................................................... 30 Table 2: Frequency of gender ........................................................................................... 32 Table 3: Frequency of age................................................................................................. 33 Table 4: Frequency table of experience of online shopping ............................................. 33 Table 5: Frequency table of highest education ................................................................. 34 Table 6: Frequency table of monthly income ................................................................... 34 Table 7: Descriptive statistics of Valence of experience .................................................. 35 Table 8: Descriptive statistics of Trust ............................................................................. 36 Table 9: Descriptive statistics of Product Price ................................................................ 37 Table 10: Descriptive statistics of Perceived Product Quality.......................................... 37 Table 11: Descriptive statistics of Perceived Customer Value ......................................... 38 Table 12: Descriptive statistics of Website Brand ............................................................ 38 Table 13: Descriptive statistics of Customer Intention ..................................................... 39 Table 14: 4.4. Reliability Test of Valence of Experience .............................................. 39 Table 15: Reliability test of Trust first time...................................................................... 40 Table 16: Reliability test of Trust second time ................................................................. 41 Table 17: Reliability test of Product Price ........................................................................ 41 Table 18: Reliability test of Perceived Product Quality ................................................... 42 Table 19: Reliability test of Perceived Customer Value first time ................................... 43 Table 20: Reliability test of Perceived Customer Value second time .............................. 44 Table 21: Reliability test of Website Brand first time ...................................................... 44 Table 22: Reliability test of Website Brand second time ................................................. 45 Table 23: KMO and Bartlett's Test for IDVs .................................................................... 46 -x- Table 24: Total Variance Explained for IDVs .................................................................. 46 Table 25: Rotated Component Matrix of IDVs ................................................................ 47 Table 26: KMO and Bartlett's Test ................................................................................... 49 Table 27: Total Variance Explained of PCV .................................................................... 49 Table 28: Rotated Component Matrix .............................................................................. 49 Table 29: Reliability Test of Trust & Perceived Quality after EFA ................................. 51 Table 30: Reliability test of Product Price after EFA ....................................................... 52 Table 31: Reliability test of Easy to Use Website after EFA ........................................... 52 Table 32: Reliability test of Customer Services after EFA............................................... 53 Table 33: Reliability test of Website Brand after EFA ..................................................... 53 Table 34: Reliability test of Perceived Customer Value after EFA .................................. 54 Table 35: Pearson's Correlation Coefficient of four independent variables and PCV...... 55 Table 36: Pearson's Correlation Coefficient of WB and PCV with PI ............................. 56 Table 37: Independent and dependent variables of three models ..................................... 57 Table 38: Model Summary and ANOVA table of Model 1.............................................. 57 Table 39: Coefficients for first model............................................................................... 58 Table 40: Model Summary and ANOVA table of model 2 .............................................. 59 Table 41: Coefficients for second model .......................................................................... 60 Table 42: Model Summary and ANOVA table of Model 3............................................. 61 Table 43: Coefficients for Third model ............................................................................ 62 Table 44: Hypotheses Testing Result ............................................................................... 63 Table 45: Direct, Indirect, and Total Causal Effects ........................................................ 65 Table 46: Final results ....................................................................................................... 68 - xi - Abstract Starting from a simple business concept, group online purchasing has become a successful business model and expanded worldwide. A number of researches in this topic have been conducted in various countries however only few studies have been made in this field for Vietnamese groupon websites. This research aims to identify factors affecting customer’s purchasing intention for the case of online groupon (online purchasing group) in Ho Chi Minh City when they buy a product or service via Groupon Website. The literature review comprises of theoretical framework for the research model, the measurement of five factors mentioned in the model, and questionnaires for the study of customer’s purchasing intention though Groupon websites. After data were collected, SPSS software was used for analyzing the primary data. The results showed that the following factors Easy-to-Use Website, Trust and Perceived Product Quality, Customer Service, Product Price, Website Brand and Perceived Customer Value have positive impact on Customer’s Purchase Intention. Although there are still limitations in terms of this study, the author hopes that the research findings could be a useful source of reference for managers of Groupon websites when they want to improve service quality and increase Customer Perceived Value. Keywords: Online Purchasing Group or Groupon, Customer Purchase Intention, SPSS, Easy to Use Website, Customer Services, Trust, Perceived Price, Perceived Product Quality, Valence of Experience, Website Brand, and Perceived Customer Value. - xii - Chapter One – Introduction The first chapter provides an introduction on the current research and comprises of 9 sections. Research background, rationale of research, research problem as well as research question, objectives, methodology, scopes and limitations, significance of research and structure are presented in this chapter. -1- 1.1. Research Backgroud Generally understood as “Groupon = Group + Coupon”, the Groupon is a win-winwin model. Not only online shopping companies/groups are benefited from the Groupon model, but vendors/supplier/producers and customers (who sell the good or service to the online shopping companies/groups) also do. Specifically, customers have the opportunity to buy goods and service at a lower price, approximately 10% to 60% lower as compared to normal price. Vendors/suppliers/producers can take advantage of the chance to approach and attract more customers with less expense as compared to other traditional selling channels. The time duration for selling goods are significantly reduced due to the stimulated demand over a short time. Online shopping companies could make profit by grouping the online purchasing of goods and services at dealed discount rate. For example, for a 55% discount rate product, Groupons earn 5%, and the rest 50% for the customers. Although the profit margin is low for each deal, Groupons could generate high profit thanks to the high number of deals made. Most promotion campaigns are offered in certain periods of time, therefore they create high attraction and spread. Under the pressure of quantity, customers have to gather in groups to be able to buy that goods or services. -2- Supplier products and services Website (advertise and sell coupon) Price of products or services ⬇ 40 – 90% % Group of consumer s Figure 1: Definition of group online purchasing Thanks to recent aggressive development of informatics technology and social network as well as the introduction of smart mobile devices and most importantly, ecommerce, customers are getting familiar with and fond of online shopping. According to a recent study of website dealcuatui.com currently there are approximately more than 100 website offering online Groupon and over 14 websites gathering deals from offering Groupon service shopping in Vietnam. This reflects the development potential of Groupon market in the country. Hence, it is important for online shopping groups to have a deep understanding about the factors influencing the online buying intention of customers, for example brand of online purchasing groups, type of product, variety of products, price, delivery policy, method of payment, guarantee policy, website design to name just a few. Especially in the context of current downturn of many online purchasing groups, the development suggestion basing on empirical findings from this study is expected to contribute to the understanding of this market and support for -3- operation and management decisions to attract more customers and increase sales for some online purchasing groups in Ho Chi Minh City. According to the recent survey made by the website dealcuatui.com, there are 15 most popular Groupon websites on the market, among them are nhommua.com, hotdeal.vn, muachung.vn and cungmua.com. In 2011, over 6700 deals and 4.2 million vouchers were sold (statistic in 2011). The amount saved for customers is more than VND 1.200 billion (statistics of web dealcuatui.com). Source: dealcuatui.com Figure 2: Statistics of Sales Source: dealcuatui.com Figure 3: Statistics of Sales 2 -4- It is estimated that the e-commerce sales only accounts for from 0.3% to 0.5% of total retail sales in Vietnam. The figure 3 is not commensurate with the potential, as there are more than 31 million people using the Internet, equivalent to 35.5% of the population. Results of the "Study Monitoring Consumer Electronic Commerce 2012" by Visa has revealed that Vietnamese have gradually getting used to online shopping and gaining more trust in online security measures. Therefore, the room for development of Groupon market in Vietnam is very promising, which is the driver for this research. 1.2. Problems of Research It can be seen that the online purchasing group market in Vietnam developed quickly and was quite thriving in the early stage by taking advantage of the newness of the model and interest of Vietnamese consumers. Moreover, online purchasing groups could easily approach to a large number of buyers since internet has become popular. Especially many students and officers prefer online purchasing group service due to some advantages: lower price, free delivery, convenience, time saving to name just a few. Currently there are many opposite opinions and even doubts about the success of this modern selling channel. Some state that Groupon hardly gets success in Viet Nam due to some reasons such as difficulties in making payment, poor customer care, unguaranteed product quality, limited knowledge and experience of related partners and so on. Unfortunately, so far the online purchasing group has not performed stably (see figure 3. The reasons may come from the negative effects of economic crisis that forced buyers to pay a lot of attention to their spending. Besides, the quality of products and service do not satisfy customers. Therefore in order to run a good business, it is highly recommended for online shopping groups to take into consideration about the customer’s -5- buying intention, provide attractive service package to increase customers’ awareness and offer suitable methods of payment. From the above reasons, I choose topic as follow: FACTORS AFFECTING THE CUSTOMER’S PURCHASE INTENTION - THE CASE OF ONLINE GROUPON (ONLINE PURCHASING GROUP) IN HCMC The purpose of this study is to define factors affecting customers’ purchase intention, and then apply business strategy that is most suitable for the enterprise’s real situation. Moreover, online Groupon is a field of my favorite. 1.3. Research Questions From problem statement, the research raises the following research question Which factors will affect the customer’s intention of online purchasing group (online Groupon). 1.4. Research Objectives 1.4.1. General objectives Generally, this thesis research will identify some factors affecting the customer’s purchase intention of online Groupon (online purchasing group) in Ho Chi Minh City. 1.4.2. Specific objectives To answer the research question, thesis objective will be - To review theories, previous research so as to build conceptual model for the research - To identify factors that have direct and indirect impact on the customer’s intention toward online Groupon - To analyze the results and suggest recommends to rate up customer’s intention -6- - To give some suggestion and recommendation for current website in other to increase customer’s intention of online Groupon. 1.5. Research Scopes and Limitations This thesis mainly focuses on intention of customer whom officers and students from eighteen to fifty years old in Ho Chi Minh City. Because officers and students are target customers of online Groupon method. Moreover, Ho Chi Minh City is the main economic city and a city is the most population in Vietnam. Secondary data I just collect about 3 years from 2010 to 2013. 1.6. Significant of Research This thesis is expected to bring the following significant: To me: This thesis gives me the opportunity to qualify for graduation Master. In addition, by doing this thesis, it is a good opportunity for me to apply theories, research methodology, collection data, analysis data that I have studied into the practical situation. Therefore, these things will help me orientate my career. With the enthusiastic support of advisor, I can study more knowledge and experience to do research from him To the online Groupon industry: I hope that this research can find some factors affecting to customer’s intention of online Groupon after I can give suggestion for the marketing strategy of company to rate up customer’s intention. As a result, I hope the Groupon industry can develop quickly 1.7. Structure of Research The thesis will be design included five chapters as follow -7- Chapter One: Introduction The first chapter provides an introduction on the current research and comprises of 9 sections. Research background, rationale of research, research problem as well as research question, objectives, methodology, scopes and limitations, significance of research and structure are presented in this chapter. Chapter Two: Literature Review This chapter focuses on introducing the concepts and theories relating to research problem of the thesis such as Purchase Intention, Perceived Customer Value, Valence Of Experience, Easy-To-Use Websites, Customer Services, Trust, Perceived Product Quality, Perceived Price, Website Brand, etc. Chapter Three: Research Methodology This chapter provides detailed explanation of the employed research methodology and statistical method in this thesis, including the research process, questionnaire design, sampling design, survey method in addition to statistical techniques for data analysis Chapter Four: Data Analysis and Findings The previous chapter discussed the research methodology, Continuous, this chapter will describe the profile of sample, present the data analysis by Statistical Package for the Social Sciences (SPSS version 20) and discuss about the finding of this research. Chapter Five: Conclusion In this last chapter, the author’s individual conclusions about final results of the thesis and recommendations for future research are presented. -8- Chapter Two: Literature Review This chapter focuses on introducing the concepts and theories relating to research problem of the thesis such as purchase intention, perceived customer value, valence of experience, easy-to-use websites, customer services, trust, perceived product quality, perceived price, brand, etc. -9- 2. Literature Review 2.1. Previous Research This part summaries some previous models which are relevant to the research topic and are the based for the conceptual model. 2.1.1. Charles Dennis, Bill Merrilees, ChanakaJayawardhena, Len Tiu Wright’s model Source: Charles Dennis, Bill Merrilees, ChanakaJayawardhena, Len Tiu Wright (2009) Figure 4: Charles Dennis, Bill Merrilees, ChanakaJayawardhena, Len Tiu Wright’s model As can be seen from the model, Purchase Intention in e-commerce depends on factors such as attitude of buyer, which can be affected by image of product and customer service; and trust that the customers have towards products or service. - 10 - 2.1.2. Philip K.Hellier-Gus, M. Geursen-Rodney A. Carr-John A.Rickard’s model Source: Philip K.Hellier-Gus, M. Geursen-Rodney A. Carr-John A.Rickard (2003) Figure 5: Philip K.Hellier-Gus, M. Geursen-Rodney A. Carr-John A.Rickard’s model This model was developed by Philip K.Hellier-Gus, M. Geursen-Rodney A. CarrJohn A.Rickard. The model illustrates factors determining the intention of repurchasing a service of existing customers. As illustrated, customer satisfaction and Brand Preference are the key factors for repurchase intention. Besides, other factors are considered such as Perceived Quality, Perceived Value, Perceived Equity, Customer Loyalty, and expected switching cost. - 11 - 2.2. Chen and Dubinsky’s Model Source: Chen and Dubinsky (2003) Figure 6: Chen and Dubinsky’s model Chen and Dubinsky (2003) examined the Perceived Customer Value and found some interesting factors such as Valence of Experience, Perceived Risk, Product Price, etailer reputation and Perceived Product Quality. Valence of Experience includes ease of Use of Website, Relevant Information, and Customer Service. 2.3. Conceptual Model of Thesis The thesis model is mainly based on Chen and Dubinsky’s model. The research will testify and validate the model proposed by the above authors (Chen and Dubinsky, 2003). A modified model, suggested as the figure below, will be investigated. - 12 - H7 Valence of Experience Website Brand H1 H3 H8 Trust H4 Perceived Customer Value Product Price H2 PURCHASE INTENTION H5 H9 Perceived Product Quality H6 H10 Figure 7: Conceptual model Where: H is hypotheses H1: “Website Brand” has positively impact on “Purchase Intention” H2: “Perceived Customer Value” has positively impact on “Purchase Intention” H3: “Valence of Experience” has positively impact on “Perceived Customer Value” H4: “Trust” has positively impact on “Perceived Customer Value” H5: “Product Price” has positively impact on “Perceived Customer Value” H6: “Perceived Product Quality” has positively impact on “Perceived Customer Value” H7: “Valence of Experience” has positively impact on “Purchase Intention” H8: “Trust” has positively impact on “Purchase Intention” H9: “Product Price” has positively impact on “Purchase Intention” H10: “Perceived Product Quality” has positively impact on “Purchase Intention” - 13 - 2.4. Related Concepts 2.4.1. Purchasing intention Purchase intention is an individual’s decision to purchase something. It can be defined as “the likelihood that a consumer will buy a particular product resulting from the interaction of his or her need for it, attitude towards it and perceptions of it and of the company which produces it” (definition of http://www.salesopedia.com). Purchase intention could also be explained as “a plan to purchase services or product” (Monash University, 2009) or “the likelihood, the probability of buy a product or service” (Dodds et al., 1991). 2.4.2. Perceived customer value Perceived Customer Value has been acknowledged as an important concept in marketing research, it can be defined “The worth that a product or service has in the mind of the consumer. The consumer's perceived value of a good or service affects the price that he or she is willing to pay for it. For the most part, consumers are unaware of the true cost of production for the products they buy. Instead, they simply have an internal feeling for how much certain products are worth to them. Thus, in order to obtain a higher price for their products, producers may pursue marketing strategies to create a higher perceived value for their products.” (Definition of http://www.investopedia.com). For this reason, companies have invested aggressively in market research to get deeper insight into customer’s thinking and behavior. The statement reflects the view on the trade-off between quality and relative price (Cravens, Holland, Lamb & Moncrieff, 1998 cited in Chen and Dubinsky, 2003). - 14 - The evaluation of Perceived Customer Value from the perspective of the consumption experience has been suggested as important by previous researchers (Anderson & Narus, 1998 cited in Chen and Dubinsky (2003). Four major element in the pre-purchase state that have significant influence on a consumer‘s value perception and purchase intention include Valence of Experience, Perceived Product Quality, Trust, and Perceived Price. We will study deeper about each of these elements in the following sections. Perceived Customer Value in the case of online buying could be either positively or negatively influenced by these factors. 2.4.2.1. Valence of Experience Valence of experience is defined in the research model as “consumer’s emotional or attitudinal state aroused by the pre-purchase on-line shopping experience” (Chen and Dubinsky, 2003). Consumer perception is considered as “the process of sensing, selecting, and interpreting stimuli from the “external”, physical world into the “internal” world” (Wilkie, 1994). Hence, one can infer that external signal, such as what consumers experience when they are shopping online, can influence of valence of experience, it can influence consumer’s internal perception of customer value. Prior works support this argument (Donovan et al, 1994). In the model proposed in this study, a similar positive influence of Valence of Experience on Perceived Customer Value 2.4.2.2. Perceived Product Quality As summed up from previous studies, the Perceived Product Quality can be defined as “the consumer’s judgment about a product’s overall excellence or superiority” (Dodds et al, 1991; Sweeney et al. 1999 and Chen and Dubinsky, 2003) - 15 - A product is comprised of “cues” which can be classified into two main categories “extrinsic” and “intrinsic”. Intrinsic cues refer to product-related physical attributes such as packaging, price, etc. With reference to extrinsic cues, they are the base for consumer’s inference to product quality (Bolton and Drew, 1991 cited in Chen and Dubinsky, 2003). They suggested that there is a positive association between Perceived Product Quality and Perceived Customer Value. Importantly, consumer’s Perceived Product Quality is different from objective quality. Objective quality is the actual technical characteristic of the product, while Perceived Product Quality is in fact an assessment and highly subjective, depending on the consumption setting (Zeithaml, 1988 cited in Chen and Dubinsky, 2003) 2.4.2.3. Trust It is really difficult how to determine “Trust”, researchers were presented something about “Trust”. Trust may be simply understood as consumer’s belief in the good nature of a product or service that leads to the intention to purchase. Moorman et al (1992) defined trust as “Trust is a willingness to rely on an exchange partner in whom one has confidence” (Moorman et al., 1992). Trust is central to e-shopping intentions (Fortin et al., 2002; Goode and Harris, 2007; Lee and Turban, 2001). Trust also is safety of the computer and financial information and privacy individually identifiable information on the Internet (Bart et al., 2005; Jones and Vijayasarathy, 1998), (SwamiNathan et al., 1999). Twitch standing that these constructs differ, in the interests of simplicity we consider them here to be related aspects of the same concept, which the name ‘trust’: e-Consumer trust in an e-retailer will positively influence intention to online shopping. As e-shoppers become - 16 - more experienced, trust grows and they tend to shop more and become less concerned about security (Chen and Barnes, 2007; OxIS, 2005). 2.4.2.4. Product Price “Price is defined as the consumer’s perception of the product’s price compared to other brands of the same product with similar specifications” (Sweeney et al., 1999). Price is one of the important factors to consider in buying process while customers search and compare price of various options (Zeithaml., 1998 cited in Chen and Dubinsky, 2003). Unlike traditional selling channels, in online selling, the number of intermediaries are reduced and there is less need for physical facilities and staff, the cost of selling online is lower than selling though traditional channels, while the speed of transaction is improved and hence this motivates customers to shop via online channel. Porter (1985) suggests an effective way to enhance customer value that is achieving price leadership. In addition, Chen and Dubinsky mentioned there is an inverse relationship between “Product Price” and “Perceived Customer Value” 2.4.3. Easy to Use The Website. “Easy-to-use website is defined as the degree to which the user expects the use of the website to be free of effort” (Chiou et al., 2010). Online shopping involves customers from different background, including various geographic areas. However, since information displayed on website is not always comprehensible (Coupey, 1994 cited in Chen and Dubinsky, 2003), it is important for a website to be user-friendly. Poor layout and store environment, an unfriendly on-line user interface with unnecessary information or too many required processing steps may discourage customers on on-line shopping. On the other hand, an ideal human-web - 17 - interaction makes the shopping experience more enjoying for customers, and hence, improve customer retention and time spent on site exploration (Novak et al, 2000 cited in Chen and Dubinsky 2003). 2.4.4. Customer Service “The degree of Customer Service is received through the means of access afforded by the website” (Griffth and Krampf, 1998 cited in Chen and Dubinsky, 2003) As compared to traditional marketplace, e-commerce entails different shopping experience for customer. For example, technology enables consumers to do the buying online in the lack of direct interaction with sellers. Griffth and Krampf (1998) mentioned customer service mainly through the means of access afforded by the website. Customer service offered could be seen under forms of contact information such as e-mail addresses, hotline, telephone number, or whether the service is offered 24 hours per day, and the responsiveness and helpfulness of customer support staff. - 18 - Chapter 3 Research Methodology This chapter provides detailed explanation of the employed research methodology and statistical method in this thesis, including the research process, questionnaire design, sampling design, survey method in addition to statistical techniques for data analysis. - 19 - 3.1. Research Methodology Method of business research can be classified by function or technique (Zikmund, 1997). If we classified it by function, it would include exploratory, descriptive and causal studies. It would be classified into experiments, surveys and observational studies (Zikmund, 1997). Following request of research techniques, survey method was chosen to assess research question for my thesis for two causes. Firstly, the survey is the most popular method for collection data to measure service quality. Secondly, survey provide quickly, efficient of assessing information about population. So, the research process will be followed the figure 8 at next page. - 20 - 3.1.1. Research frameworks Problem Statement Research Objective 1. To review the theory and build concetual model Method: Read book, previous researchs => choose appropriate theory and collect secondary data, 2. Identify factor (direct and indirect) that effect online groupon consumer's intention Analyze and identify model => conceptual model => make a questionare for survey, manager interview, pilot survey. Choose sample size and collection primary data, based on primary data use SPSS software for descriptive statistic, test hypotheses and regresstion 3. Result and finding Give suggestion and recommendation Figure 8: Research frameworks 3.2. Qualitative Research Methods The purpose of qualitative research is to explore, adjust, supplement the observed variables and measured research concepts. Cavana et al (2001) suggested “A questionnaire should be piloted with a reasonable sample of respondents coming from the target population. Pilot testing can help detect the weakness in questionnaire design”. Therefore, the author will carry out an in-depth interview with a website manager and with customers who usually use group online purchasing and some managers of selling website (n = 30). - 21 - It is expected that the interview results would provide some suggestions for the research topic. Research’s preliminary results will be based on for designing an official questionnaire. Once the questionnaire was modified, it will be sent to the above mentioned people. On the other hand, the author collects secondary data from sources such as: books, eBooks, articles and scientific journals as well as from other previous researches. 3.3. Quantitative Research Methods 3.3.1. Questionnaire design Questionnaire was designed to collect data information of customers who used online purchasing group. The questionnaires (at Appendix 1) are distributed under two versions: hardcopy version and online version. Each version has two parts, in which “part 1” includes eight sub-sections. In detail, sub-sections measure the build involving in the research conceptual model by some questions, in my questionnaire have some question were searched for empirical studies of researchers. For this reason, the “part 1” is most important to help collecting primary data for analysis. The “part 2” focuses mainly on individual information and hence this part will be used for describing characteristics of respondents. 3.3.2. Measures Five points of Likert scale are used as measurement of answers in the questionnaire: from “1”-“Strongly Disagree” to “5”-“Strongly agree”. Previous researches presented that the five point of Likert scale is understandable to respondents and enable them to express their views (Marton and Williams, 1986). - 22 - 3.3.3. Sampling design 3.3.3.1. Sample The theoretical research model was limited in exploring the Purchasing Intention of consumers, who have bought at least once or know very well about online group purchasing (groupon) in Ho Chi Minh City. Therefore, the focus is mainly on officers and students from eighteen to fifty years old in Ho Chi Minh City, who are also the target of online groupons. Online questionnaire is created using Google Docs and is sent to these target respondents email or social network such as Facebook. The hard copy versions are distributed to target officers and students by author’s friends, classmates and colleague 3.3.3.2. Determination of sample size In fact, researchers have given many formula for determine the sample size. The decision to choose the sample size will be dependent on statistical analysis method. In this thesis, the author will use the EFA analysis and multiple regression following the research of Tabachnick and Fidell in 1996:“The general process for creating a prediction equation involves gathering relevant data from a large, representative sample from the population. What constitutes "large" is open to debate, and while guidelines for general applications of regression are as small as 50 + 8* number of predictors” Base on above formula, my questionnaire have total 33 questions N ≥ 8*33 + 50 ≥ 314 (Respondents) 3.4. Data Analysis Techniques After data collection is completed, the Statistical Package for Social Sciences (SPSS) version 20.0 will be used for analysis. The process of primary data analysis procedure includes techniques such as: Characteristic of Sample, Descriptive Statistic, - 23 - Reliability Test, Exploratory Factor Analysis, Correlation Testing, Multiple Regression Analysis and Path Analysis. 3.4.1. Descriptive statistics The benefit of descriptive statistics is that it provides simple summaries about the sample and about the observations. It highlights the main features of the data collection, mostly quantitatively. The main components of descriptive statistics that will be used in this study are the minimum value, maximum value, standard deviation and mean of variables. 3.4.2. Reliability tests The reliability and validity of measurement scale, Cronbach’s alpha was used in this research. “Coefficient alpha, as introduced in Cronbach (1951), is a frequently used statistic in empirical research involving tests with various items. Under the assumption that the items are parallel, that is, the measurements have identical true scores and uncorrelated errors having equal variances” (Alex J.Koning & Philip Hans Franses., 2003). Value of Cronbach’s alpha ranges from 0 to 1. The higher the value of Cronbach’s alpha the more reliability. Nunnally (1978) suggested a coefficient alpha of “0.6 is satisfactory in the early stages of research. Moreover, Hair et al (2009) pointed out a coefficient alpha which is greater than 0.7 is highly satisfactory for most research purposes and the item that has Item-total correlation lower than 0.3 will be removed to increase the reliability and validity of measurement”. 3.4.3. Exploratory factor analysis “In multivariate statistics, Exploratory Factor Analysis (EFA) is a statistical method used to uncover the underlying structure of a relatively large set of variables. EFA - 24 - is a technique within factor analysis whose overarching goal is to identify the underlying relationships between measured variables.”(Source: en.wikipedia.org). “Consider the accordance of EFA: KMO (Kaiser-Meyer-Olkin), is a criteria for evaluating the accordance of the data for EFA” (HoàngTrong, et al, 2005,). The EFA will appropriate if score of the KMO great than 0.5 to apply factor analysis appropriately (Field, 2005). When we approve the hypothesis of Bartlett’s test of sphericity (H0) for the overall significance of all correlations within a correlation matrix. When sig ≤ 0.05 the hypothesis H0will be rejected so, this data will be appropriated. “Eigenvalue is sum of squared loadings for a factor, also referred to as the latent root. It represents the amount of variance accounted for by a factor.” (Hair et al 2009). The criteria to determine the number of factors are extracted: all extraction factors must have Eigenvalue >1 will be kept in model analysis. (Kaiser, 1960, Rummell, 1970 cited in HoàngTrọng et al, 2005). “Factor Loadings is correlation between the original variables and the factors, and the key to under-standing the nature of a particular factor. Squared factor loadings indicate what percentage of the variance in an original variable is explained by a factor” (Hair et al, 2009). Hair et al, 2009 said that factor loadings in the range of ±0.30 to ± 0.40 are considered to meet the minimal level for inter-pretation of structure and factor loadings bigger than 0.5 are considered practically significant. In my thesis just only factor loadings bigger than 0.5 will be kept. In addition, after run EFA for factors if any question has factor loading depend on two factors I will remove this question when difference lower than 0.3, if this question have difference bigger than 0.3 I will put this question into factor has big index. (Kaiser1970). - 25 - According to Hair et al (2009) in the natural sciences, factors should be stopped when at least 95% of the variance is explained. In the humanities, the explained variance is commonly as low as 50-60%. In this thesis I would like to choose Total Variance Explained must be bigger than 50%. 3.4.4. Correlation testing Correlation coefficient also known as r, R, or Pearson's r that indicates the strength of the association between any two metric variables. That is defined as the (sample) covariance of the variables divided by the product of their (sample) standard deviations. Formula 1 -1 ≤ r ≤ 1 The sign (+ or -) indicates the direction of the relationship. The value can range from -1 to +1 with + 1 indicating a perfect positive relationship and -1 indicating a perfect negative or reverse relationship. If r = 0, the two variables doesn’t have a linear relationship. So, Absolute value of r indicates to show the closely of linear relationship. 3.4.5. Regression analysis. The regression analysis is used for testing the relationship between a dependent variable and several independent variables. Coefficient of determination (R2) measure of the proportion of the variance of the dependent variable about its mean that is explained by the independent, or predictor, variables. The coefficient can vary between 0 and 1. (Hair et al, 2009). R2 index used to measure the appropriateness of the regression equation. The value of R2 the higher the more explanatory power of the regression equation. - 26 - Adjust Coefficient of determination (R2)modified measure of the coefficient of the determination that takes into account the number of independent variables included in the regression equation and the sample size. Although the addition of independent variables will always cause the coefficient of determination to rise, the adjusted coefficient of determination may fall if the added independent variables have little explanatory power or if the degrees of freedom become too small. This statistic is quite useful for comparison between equations with different numbers of independent variables (Hair et al, 2009) Beta coefficient standardized regression coefficient that allows for a direct comparison between coefficients as to their relative explanatory power of the dependent variable. Whereas regression coefficient are expressed in terms of the units of the associated variable, thereby making comparisons inappropriate, beta coefficients use standardized data can be directly compared. (Hair et al, 2009). Sum of Square Regression (SSR) is differences between the mean and predicted values of the dependent variable for all observations. It represents the amount of improvement in explanation of the dependent variable attributable to the independent variables (Hair et al, 2009). Sum of Square Residuals (SSE)(or sum of the squared prediction errors) across all observations. It is used to denote the variance in the dependent variable not yet accounted for by the regression model. If no independent variables are used for prediction, it becomes the squared errors using the mean as the predicted value and thus equals the total sum of square (Hair et al, 2009). Linearity term used to express the concept that the model possesses the properties of additivity and homogeneity. In simple sense, linear model predict values that fall in a - 27 - straight line by having a constant unit change (slope) of the dependent variable for a constant unit change of the independent variables. In the multiple predictor model Y = b0 + b1X1 + …. + bnXn + e(Hair et al, 2009) which the value b0 is constant of regression equation and b1is the regression coefficient for the variable X1for one-unit change in the independent variable. Besides that, the value e (residual) is error in predicting our sample data seldom because seldom we can predictions be perfect. Significance of the overall model, testing the coefficient of determination to test the hypothesis that the amount of variation explained by the regression model is more than the baseline prediction the F ratio is calculated as below equation. Formula 2 Where: The numerator is the variance explained by the regression model The denominator is the unexplained variance by the regression model If F value is high, the research can feel confident that the regression model is not specific to just this sample, but would be expected to be significant in multiple samples from this population. Simply, the researcher can be use the value of Sig, if Sig ≤ 0.05 the regression model will have statistics significant. t Value of Variables in the Equation. The t value of variable in the equation, as just calculated measures the significance of the partial correlation of the variable reflected in the regression coefficient. (Hair et al, 2009) t value can be calculated as divided the regression coefficient by the standard error. = Formula 3 - 28 - Based on each variable, each variable is checked to see Sig ≤ 0.05 (Significance lower than 0.05) that variable is allowed enter the regression equation. Collinearity, expression of the relationship between two (collinearity) or more (Multicollinearity) independent variables. Two independent variables are said to exhibit complete collinrearity if their correlation coefficient is 0. Multicollinearity occurs when any single independent variable is highly correlation with a set of other independent variables (Hair et al, 2009) One of the requirements of multiple regression is the absence of strong correlation between predictor variables. If this condition cannot be satisfied then it’s said that there’re multicolinearity in multiple regression model. Therefore, before estimating multiple regression model, it’s essential to test multicolinearity. Multicolinearity is the situation in which one or more than one independent variables have the strong linear correlation to each other. This phenomenon does nothing in providing new information as well as identifying the individual effect of independent variables on dependent ones. In order to identify multicolinearity, Pearson’s correlation coefficient is a statistical measure of the strength of a linear relationship between paired data. 3.4.6. Path analysis Path Analysis is a statistical technique used primarily to examine the comparative strength of direct and indirect relationships among variables. (Christy Lleras, 2005). Path Analysis was performed with the dependent and independent variables based on the multiple regression results from the previous sections, from which all - 29 - variables making significant unique contributions to predicting the dependent variables were retained for further path analysis. The path analysis is a straight forward extension of multiple regressions. Its aim is to provide estimates of the magnitude and significance of the hypothesized causal connections between sets of variables. This is best explained by considering a path diagram. As the result, Path Analysis is not clearly for show the relationships between dependent variable and independent variable, so the researcher can follow table 1 for relatively recommendation. Table 1: Interpreting Strength of Path Coefficients 0.00 No association 0.01 – 0.09 Trivial relationship 0.10 – 0.29 Low to moderate relationship 0.30 – 0.49 Moderate to very strong 0.50 – 0.69 Substantial to very strong 0.70 – 0.89 Very strong relationship ≥ 0.90 Nearly perfect relationship Source: Adapted from De Vaus, 2002: 259 - 30 - Chapter Four: Data Analysis and Finding The previous chapter discussed the research methodology, Continuous, this chapter will describe the profile of sample, present the data analysis by Statistical Package for the Social Sciences (SPSS version 20) and discuss about the finding of this research. - 31 - 4. Sample Description 4.1. Profile of Sample Data was collected upon receiving all the answered questionnaires (both hard copy and online versions). Data was collected over one month from May 14th to June 16th. There were 570 customers who contributed their ideas to answer the questionnaires. Of which, 349 customers answered via Google docs, in which I purified 282 reasonable questionnaires at the rate of 82% and there were 221 customers answered hard copies, in which I purified 200 reasonable questionnaires at the rate of 91%. Figure 9: Percent of accept or reject questionnaires. 4.2. Characteristics of Sample 4.2.1. Gender Table 2: Frequency of gender Frequency Percent Female 335 69.5 Male 147 30.5 Total 482 100.0 Gender Valid The sample for analysis consist of 482 cases, including 147 male making up 30.5% and 335 female, accounting for 69.5% of the total. - 32 - 4.2.2. Age Table 3: Frequency of age Frequency Percent From 18 to 25 183 38.0 From 26 to 40 290 60.2 From 41 to 50 9 1.9 482 100.0 Age Valid Total The respondents are officers and students who have ever used or known form of online group purchasing in age from 18 to 50 so the respondents are under 18 or over 50 were excluded from the this results. Table 3 shows the ages of 482 respondents, the customers are from 18 to 25 years old which account for 38% with 183 respondents. The majority of the customers are from 26 to 40with 290 respondents making up 60.2 %. The oldest group accounts for only 1.9 % with 9 customers. 4.2.3. Experience of online shopping Table 4: Frequency table of experience of online shopping Frequency Percent No Experience 31 6.4 Have Experience 451 93.6 Total 482 100.0 Experience of online shopping Valid Following table 4, I can descry that generality of respondents have experience of online shopping. There are 451 people making up 93.6% of respondents said that they had experience of online shopping. - 33 - 4.2.4. Highest education Table 5: Frequency table of highest education Valid Highest education Frequency Percent High school 9 1.9 Vocational school 21 4.4 University/college 374 77.6 Master or higher 78 16.2 Total 482 100.0 Following table 5 more than 93.8 % of them got the educational level at university including 77.6% got university/college with 374 customers and 16.2% got master or doctor with 78 people. Total respondents studied high school and vocational school only 6.3%. 4.2.5. Monthly income Table 6: Frequency table of monthly income Frequency Percent Below 3 million VND 24 5.0 From 3 to less than 6 million VND 170 35.3 From 6 to less than 10 million VND 178 36.9 More than 10 million VND 110 22.8 Total 482 100.0 Monthly income Valid Income size is classified into 4 groups. The majority belongs to group of 178 respondents whose income range from 6 to less than 10 million VND, accounting for 36.9%. 170 respondents whose income range from 3 to less than 6 million VND make up 35.3%. 24 respondents whose income is from 3 million VND account for 5% of the total - 34 - set. The more than 10 million VND group makes up 22.8% of the sample size, with 110 respondents. 4.3. Descriptive Statistics This session gives a descriptive statistics of seven factors introduced in the conceptual model to help readers understand generally about the independent variables and dependent variables. Factors can be measured by the agreement degree of respondents on each factor and they choose via Likert scale from 1 to 5 or from “Strongly disagree” to “Strongly agree” including sample size, minimum, maximum, mean and standard deviation. 4.3.1. Valence of Experience Table 7: Descriptive statistics of Valence of experience N Min Max Mean Std. Deviation VAL1 - The website provides many support tools for customers 482 1 5 3.84 .759 VAL2 - Information is regularly updated on website 482 1 5 4.03 .726 VAL3 - Information on website is of high reference for buyers 482 1 5 3.63 .892 VAL4 - When in need, I have no problem contacting customer service staff 482 1 5 3.48 .896 VAL5 - Customer service staff always respond to my questions quickly and satisfactorily 482 1 5 3.19 .919 VAL6 - Delivery staff is always on time 482 1 5 2.98 .933 VAL7 - The products have reliable warranty 482 1 5 2.72 .922 VAL8 - Products and services offered on website are interesting 482 1 5 3.50 .868 VAL9 - The purchasing process is simple and fast 482 1 5 3.87 .763 VAL10 - There are various products and services offered on websites 482 1 5 3.88 .796 VAL11 - I enjoy the purchase on group purchasing website 482 1 5 3.39 .814 Descriptive Statistics Average 3.5 - 35 - According table 7 it can be seen that information of online purchasing websites is continuously updated and product or service is multiform was rated rather high but warranty policy of online purchasing websites is not good and delivery staffs are not on time. As a result, we see the average (mean value) is 3.5. Comparing with maximum value of Likert scale, this average point is higher than medium point. It means the customer feel the Valence of Experience is good but some departments need to improve. 4.3.2. Trust Table 8: Descriptive statistics of Trust N Min Max Mean Std. Deviation TR12- My online transactions are pretty safe 482 1 5 3.18 .926 TR13 - My private information is secured when registering for user and purchasing coupon 482 1 5 3.03 .895 TR14 - I have no worries in payment by credit cards 482 1 5 2.84 .847 TR15 - I have no worries on the quality of products offered on these websites 482 1 5 2.29 .986 Descriptive Statistics Average 2.84 Following table 8 we can see that most question of factor Trust is underestimated because whenever the customers use online purchasing group they still worry about something. Specifically, they are concerned about quality of products with mean equaling 2.29. Total average is 2.84 so that the online purchasing group is still risky. If websites improve products quality and increase the safety of online transactions, customers will trust more. - 36 - 4.3.3. Product Price Table 9: Descriptive statistics of Product Price N Descriptive Statistics Min Max Mean Std. Deviation PP16 - Product's prices are acceptable 482 1 5 3.62 .778 PP17 - Product prices are satisfactory to my need 482 1 5 3.45 .862 PP18 - I would not be able to buy other products with the same price 482 1 5 2.85 .972 PP19 - In general, I will buy products with reasonable prices 482 1 5 3.98 .670 Average 3.48 The data show that Product Price is an advantage of online group purchasing. Total average is rather high if compared with maximum value (3.48 with 5). On the other hand, means of most question are around 3.5 except question PP18 which has mean of 2.85, lower than medium value (3.0) to find out the respondents who can buy that product with same money at another place. 4.3.4. Perceived Product Quality Table 10: Descriptive statistics of Perceived Product Quality N Min Max Mean Std. Deviation PPQ20 - Quality of products and services are reliable 482 1 5 2.89 .893 PPQ21 - Quality of products are as advertised. 482 1 5 2.52 .863 PPQ22 - Products and services are of quite good quality 482 1 5 2.84 .828 PPQ23 - I receive good service when using coupons/ vouchers 482 1 5 2.90 .892 Descriptive Statistics Average 2.79 - 37 - The same as with factor Trust factor Perceived Product Quality have mean value very low just 2.79. Comparing with 3 - medium value, the total average lower than it so the Perceived Product Quality of customers is not good. 4.3.5. Perceived Customer Value Table 11: Descriptive statistics of Perceived Customer Value N Descriptive Statistics Min Max Mean Std. Deviation PCV24 - I enjoy buying with group online purchasing website 482 1 5 3.25 .831 PCV25 - The products and services I bought on these websites bring high economic value to me 482 1 5 3.09 .837 PCV26 - Products and services I received are satisfactory to the money I spent 482 1 5 3.23 .875 PCV27 - When buying on these websites, I save a lot of time 482 1 5 3.93 .786 Average 3.38 Following table 11, I can see that means of all questions are over 3- medium value and total average is 3.38. One might say that the respondents feel about online purchasing group is rather good, because it still attractive. 4.3.6. Websites Brand Table 12: Descriptive statistics of Website Brand N Min Max Mean Std. Deviation WB28 - The slogan of these websites are attractive to me 482 1 5 3.41 .825 WB29 - The logos of these websites are impressive 482 1 5 3.42 .797 WB30 - Domain of websites are easy to remember 482 1 5 3.82 .686 WB31 - Website designs are user-friendly 482 1 5 3.61 .707 WB32 - I will think immediately on online group purchasing websites when I want to buy something online 482 1 5 3.55 .864 Descriptive Statistics Average 3.56 - 38 - In the online shopping industry, Website Brand is very important element. Understanding its, administrator of group buying websites were strongly invested to develop website brand. Table 12 show that, the point of questions rather high. Especially, domain of website is easy remember which question have highest point. Total average get 3.56 point, it is the highest average point in six factors. 4.3.7. Customer Intention Table 13: Descriptive statistics of Customer Intention N Descriptive Statistics Min Max Mean Std. Deviation CI37 - I intend to continue using online group purchasing in the future 482 1 5 3.49 .824 The last factor also most important factor is Customer Intention. Its average is 3.49 above 3 - medium point. Following this results I can guest that the customers may be use online Groupon in future. 4.4. Reliability Tests 4.4.1. Valence of Experience Table 14: 4.4. Reliability Test of Valence of Experience Cronbach's Alpha N of Items .802 11 Item-Total Statistics Scale Mean Scale Corrected Cronbach's if Item Variance if Item-Total Alpha if Item Deleted Item Deleted Correlation Deleted VAL1 - The website provides many support tools for customers 34.67 25.494 .402 .792 VAL2 - Information is regularly updated on website 34.48 25.402 .441 .789 VAL3 - Information on website is of high reference for buyers 34.88 24.533 .433 .789 - 39 - VAL4 - When in need, I have no problem contacting customer service staff 35.03 23.935 .504 .782 VAL5 - Customer service staff always respond to my questions quickly and satisfactorily 35.32 23.568 .531 .779 VAL6 - Delivery staff is always on time 35.53 24.304 .433 .790 VAL7 - The products have reliable warranty 35.79 24.069 .469 .786 VAL8 - Products and services offered on website are interesting 35.01 24.212 .491 .783 VAL9 - The purchasing process is simple and fast 34.64 25.117 .452 .787 VAL10 - There are various products and services offered on websites 34.63 24.906 .455 .787 VAL11 - I enjoy the purchase on group purchasing website 35.12 24.772 .459 .787 The results of table 14 show Cronbach’s alpha is 0.802 and all question have Corrected Item-Total Correlation over 0.3 all question are pass reliability test. 4.4.2. Trust Table 15: Reliability test of Trust first time Cronbach's Alpha N of Items .634 4 Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted TR12- My online transactions are pretty safe 8.16 3.971 .422 .559 TR13 - My private information is secured when registering for user and purchasing coupon 8.31 3.891 .480 .518 TR14 - I have no worries in payment by credit cards 8.50 3.860 .544 .477 4.403 .245 .690 Item-Total Statistics TR15 - I have no worries on the quality of products offered on these websites 9.05 - 40 - Following table 15 I can see that question TR15 has Corrected Item-Total Correlation index is 0.245 lower than 0.3 Question 15 will be remove in run reliability test at second times. Table 16: Reliability test of Trust second time Cronbach's Alpha N of Items .690 3 Scale Mean if Item Deleted Item-Total Statistics Scale Variance Corrected Item- Cronbach's Alpha if Item Deleted Total Correlation if Item Deleted TR12- My online transactions are pretty safe 5.87 2.269 .457 .660 TR13 - My private information is secured when registering for user and purchasing coupon 6.02 2.185 .535 .557 TR14 - I have no worries in payment by credit cards 6.21 2.327 .525 .574 After I removed question TR15, I can see that the Cronbach’s alpha increase from 0.634 to 0.690 and all remain question have Corrected Item-Total Correlation bigger than 0.3 I will keep all remaining question. 4.4.3. Product Price Table 17: Reliability test of Product Price Cronbach's Alpha N of Items .686 4 Item-Total Statistics Scale Mean if Item Deleted Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Deleted Correlation Item Deleted PP16 - Product's prices are acceptable 10.28 3.369 .587 .549 PP17 - Product prices are satisfactory to my need 10.45 3.117 .589 .538 - 41 - PP18 - I would not be able to buy other products with the same price 11.05 3.372 .374 .701 PP19 - In general, I will buy products with reasonable prices 9.91 4.186 .371 .678 Following table 17, I can see that Cronbach’s Alpha of Product Price is 0.686 over 0.6 and all question have corrected item – Total Correlation bigger than 0.3 and according Hair et al (2009) I will keep all question to run EFA. 4.4.4. Perceived Product Quality Table 18: Reliability test of Perceived Product Quality Cronbach's Alpha N of Items .821 4 Item-Total Statistics Scale Mean Scale Corrected Cronbach's if Item Variance if Item-Total Alpha if Deleted Item Deleted Correlation Item Deleted PPQ20 - Quality of products and services are reliable 8.26 4.644 .631 .781 PPQ21 - Quality of products are as advertised. 8.63 4.496 .719 .739 PPQ22 - Products and services are of quite good quality 8.31 4.667 .703 .748 PPQ23 - I receive good service when using coupons/ vouchers 8.26 4.960 .532 .826 Following table 18, I can see that Cronbach’s Alpha of Perceived Product Quality is 0.821. This value is very high and all questions have Corrected Item – Total Correlation bigger than 0.5. They are pretty high (lowest value at 0.532). I can conclude that this factor is very good Cronbach’s Alpha value. - 42 - 4.4.5. Perceived Customer Value Table 19: Reliability test of Perceived Customer Value first time Cronbach's Alpha N of Items .675 4 Scale Mean if Item Deleted Scale Variance if Item Deleted PCV24 - I enjoy buying with group online purchasing website 10.24 3.391 .502 .578 PCV25 - The products and services I bought on these websites bring high economic value to me 10.40 3.151 .595 .513 PCV26 - Products and services I received are satisfactory to the money I spent 10.27 3.435 .437 .623 PCV27 - When buying on these websites, I save a lot of time 9.57 4.034 .306 .698 Item-Total Statistics Corrected Cronbach's Item-Total Alpha if Item Correlation Deleted According to table 19, I can see that four question of Perceived Customer Value have Cronbach’s Alpha at 0.675 > 0.6. Although, the Corrected Item-Total Correlation of the variable are greater than 0.3. But to safer I decided to remove question PCV27 which question have the Corrected Item-Total Correlation is 0.306 this value very near 0.3. - 43 - Table 20: Reliability test of Perceived Customer Value second time Cronbach's Alpha N of Items .698 3 Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted PCV24 - I enjoy buying with group online purchasing website 6.32 2.151 .489 .637 PCV25 - The products and services I bought on these websites bring high economic value to me 6.48 1.926 .606 .487 PCV26 - Products and services I received are satisfactory to the money I spent 6.34 2.113 .454 .684 Item-Total Statistics After I removed question PCV27, I can see that the new Cronbach’s Alpha of Perceived Customer Value increase at 0.698 and the Corrected Item-Total Correlation of the variable are greater than 0.3. I conclude that all of three items in Perceived Customer Value will be kept. 4.4.6. Website Brand Table 21: Reliability test of Website Brand first time Cronbach's Alpha N of Items .753 5 Scale Mean if Item Deleted Scale Variance if Item Deleted WB28 - The slogan of these websites are attractive to me 14.40 4.587 .666 .649 WB29 - The logos of these websites are impressive 14.40 4.935 .579 .685 WB30 - Domain of websites are easy to remember 14.00 5.657 .457 .730 WB31 - Website designs are user-friendly 14.21 5.363 .536 .704 Item-Total Statistics Corrected Cronbach's Item-Total Alpha if Item Correlation Deleted - 44 - WB32 - I will think immediately on online group purchasing websites when I want to buy something online 14.27 5.351 .381 .764 Five variables of Website Brand value dimension have Cronbach’s Alpha at 0.753>0.6. All question have Corrected Item-Total Correlation higher than value at 0.3. But to safer I decided to remove question WB32 which question have the Corrected ItemTotal Correlation at 0.381 and Cronbach’s Alpha will be increase at 0.764 Table 22: Reliability test of Website Brand second time Cronbach's Alpha N of Items .764 4 Scale Mean Scale Corrected if Item Variance if Item-Total Deleted Item Deleted Correlation Cronbach's Alpha if Item Deleted WB28 - The slogan of these websites are attractive to me 10.85 2.788 .684 .636 WB29 - The logos of these websites are impressive 10.85 3.016 .615 .679 WB30 - Domain of websites are easy to remember 10.44 3.624 .481 .749 WB31 - Website designs are user-friendly 10.66 3.561 .483 .748 After run reliability test for group Website Brand. Base on table 22. Four variables of Website Brand value dimension have Cronbach’s Alpha at 0.764>0.6. All question have Corrected Item-Total Correlation higher than value at 0.3. So, I conclude that all of four items in Website Brand will be kept. 4.5. Exploratory Factor Analysis (EFA) This session mentions again some of the indices previously explained in the research methodology in chapter 3. Firstly, KMO coefficient (Kaiser-Meyer-Olkin), the EFA is appreciated when 0.5 ≤ KMO≤1.0 (Hoang Trong & ctg, 2005). Secondly all - 45 - extraction factors must have Eigenvalue >1. Thirdly, I consider the hypothesis of Bartlett’s test of H0 is variable that do not have correlation with over matrix is homogeneous whenever sig. ≤ 0.05. Fourthly, the cumulative coefficient of variance criterion ≥ 0.5 and finally when I use Multivariate Data Analysis Factor loading can ensuring practical significance when It> 0.5. In addition, after running EFA for factors if any question has factor loading depend on two factors I will put this question into factor has big index if difference bigger than 0.3. 4.5.1. Exploratory factor analysis for independent variables (IDVs) Table 23: KMO and Bartlett's Test for IDVs Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Approx. Chi-Square Bartlett's Test of Sphericity .831 2648.699 df 153 Sig. .000 Table 24: Total Variance Explained for IDVs Extraction Sums of Squared Loadings Initial Eigenvalues Rotation Sums of Squared Loadings Component Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative % 1 5.204 28.914 28.914 5.204 28.914 28.914 2.635 14.637 14.637 2 1.765 9.806 38.720 1.765 9.806 38.720 2.337 12.983 27.620 3 1.560 8.669 47.389 1.560 8.669 47.389 2.006 11.144 38.764 4 1.269 7.051 54.440 1.269 7.051 54.440 1.998 11.102 49.866 5 1.064 5.912 60.352 1.064 5.912 60.352 1.888 10.486 60.352 Extraction Method: Principal Component Analysis. The Firstly, exploratory factor analysis was applied for the five group of independent variables including 25 items with 11 items of Valence Of Experience (VAL1 to VAL11), 3 items of Trust (TR12 to TR14), 3 items of Product Price (PP16, PP17, PP19), - 46 - 4 items of Perceived Product Quality (PPQ20 to PPQ23) and 4 items of Website Brand (WB28 to WB31) Table 25: Rotated Component Matrix of IDVs Component 1 TR12- My online transactions are pretty safe .745 TR13 - My private information is secured when registering for user and purchasing coupon .727 PPQ21 - Quality of products are as advertised. .667 PPQ20 - Quality of products and services are reliable .633 PPQ23 - I receive good service when using coupons/ vouchers .598 2 WB28 - The slogan of these websites are attractive to me .856 WB29 - The logos of these websites are impressive .829 WB30 - Domain of websites are easy to remember .636 WB31 - Website designs are user-friendly .596 3 PP16 - Product's prices are acceptable .809 PP17 - Product prices are satisfactory to my need .722 PP19 - In general, I will buy products with reasonable prices .618 4 5 VAL4 - When in need, I have no problem contacting customer service staff .815 VAL5 - Customer service staff always respond to my questions quickly and satisfactorily .793 VAL6 - Delivery staff is always on time .604 VAL2 - Information is regularly updated on website .790 VAL9 - The purchasing process is simple and fast .686 VAL1 - The website provides many support tools for customers .670 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations. - 47 - According table 23 to KMO and Bartlett’s Test the Kaiser-Meyer-Olkin Measure of Sampling Adequacy is 0.831 (following to Pallant, 2005), to be significant, value has to be 0.6 or above and Bartlett's Test of Sphericity value is significant at 0.000 ( 0.6 and Bartlett's Test of Sphericity value is significant - 49 - at 0.000 (0.6. All question have Corrected Item-Total Correlation higher than value at 0.3. So, I conclude that all of five items in Trust & Perceived Quality will be kept. 4.7.2. Reliability test for Product Price after EFA Table 30: Reliability test of Product Price after EFA Cronbach's Alpha N of Items .701 3 Scale Mean if Item Deleted Scale Variance if Item Deleted PP16 - Product's price is acceptable 7.43 1.614 .583 .523 PP17 - Price of products are appropriate with requirement 7.61 1.437 .577 .532 PP19 - Buy products if the price is reasonable 7.07 2.118 .413 .727 Item-Total Statistics Corrected Cronbach's Item-Total Alpha if Correlation Item Deleted Following table 30, I can see that Cronbach’s Alpha of Product Price is 0.701 over 0.6 and all question have corrected item – Total Correlation bigger than 0.3 and according Hair et al (2009) I will keep all question of group Product Price. 4.7.3. Reliability test for Easy to Use Website after EFA Table 31: Reliability test of Easy to Use Website after EFA Cronbach's Alpha N of Items .641 3 Item-Total Statistics VAL1 - The website provides many support tools for customers VAL2 - Information is regularly updated on website VAL9 - The purchasing process is simple and fast Scale Mean Scale Corrected Cronbach's if Item Variance if Item-Total Alpha if Item Deleted Item Deleted Correlation Deleted 7.90 1.583 .410 .599 7.71 1.462 .544 .415 7.87 1.584 .405 .607 - 52 - After run reliability test for group Easy to Use Website. Following table 31 tree questions of Easy to Use Website have Cronbach’s Alpha at 0.641 > 0.6. All question have Corrected Item-Total Correlation higher than value at 0.3. So, all question are past reliability test 4.7.4. Reliability test for Customer Services after EFA Table 32: Reliability test of Customer Services after EFA. Cronbach's Alpha N of Items .706 3 Scale Mean if Item Deleted Item-Total Statistics Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted VAL4 - When in need, I have no problem contacting customer service staff 6.17 2.376 .573 .556 VAL5 - Customer service staff always respond to my questions quickly and satisfactorily 6.46 2.286 .586 .536 VAL6 - Delivery staff is always on time 6.67 2.617 .421 .741 Base on table 32, the author see that: All question have Corrected Item-Total Correlation higher than value at 0.3 and Cronbach’s Alpha of Customer Services at 0.706 (above 0.6). So, I conclude that all of three items in Customer Services group will be kept. 4.7.5. Reliability test for Website Brand after EFA Table 33: Reliability test of Website Brand after EFA Cronbach's Alpha N of Items .764 4 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlatio n Cronbach's Alpha if Item Deleted - 53 - WB28 - The slogan of these websites are attractive to me 10.85 2.788 .684 .636 WB29 - The logos of these websites are impressive 10.85 3.016 .615 .679 WB30 - Domain of websites are easy to remember 10.44 3.624 .481 .749 WB31 - Website designs are user-friendly 10.66 3.561 .483 .748 Base on table 33, all question have Corrected Item-Total Correlation higher than value at 0.3 and Cronbach’s Alpha of Website Brand at 0.764 (above 0.6). So, I conclude that all of four items in Website Brand group will be kept. 4.7.6. Reliability test for Perceived Customer Value after EFA Table 34: Reliability test of Perceived Customer Value after EFA Cronbach's Alpha N of Items .698 3 Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted PCV24 - I enjoy buying with group online purchasing website 6.32 2.151 .489 .637 PCV25 - The products and services I bought on these websites bring high economic value to me 6.48 1.926 .606 .487 PCV26 - Products and services I received are satisfactory to the money I spent 6.34 2.113 .454 .684 Item-Total Statistics Base on table 34, all question have Corrected Item-Total Correlation higher than value at 0.3 and Cronbach’s Alpha of PCV at 0.698 (above 0.6). So, I conclude that all of four items in Perceived Customer Value group will be kept. - 54 - 4.8. Correlation Testing Pearson's Correlation Coefficient (r indicate) is used to measure of the strength and direction of the linear relationship between two variables that is defined as the sample covariance of the variables divided by the product of their sample standard deviations. Absolute value of r indicates how close the level of the linear relationship is. If this value is near to 1, the two variables have a very close relationship. Table 35: Pearson's Correlation Coefficient of four independent variables and PCV TR_PPQ Trust and Perceived Product Quality Pearson Correlation R_PPQ Trust and Perceived Sig. (2-tailed) Product Quality N 482 Pearson Correlation .000 PP - Perceived Sig. (2-tailed) Price CS Customer Services EW - Easy to Use Website 1 1.000 482 482 Pearson Correlation .000 .000 1.000 1.000 N 482 482 482 Pearson Correlation .000 .000 .000 Sig. (2-tailed) 1.000 1.000 1.000 482 482 482 482 .510** .424** .186** .106* .000 .000 .000 .019 482 482 482 482 N Pearson Correlation PCV-Perceived Customer Sig. (2-tailed) Value N PCV-Perceived Customer Value 1 N CS - Customer Sig. (2-tailed) Services EW - Easy to Use Website PP Perceived Price 1 1 1 482 **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed). - 55 - Base on table 35, the writer easily see that, r indicate of each pairs of independent variables at 0.0 so that the independent variable has no relationship to each other. In other words, these variables are not linear relationship to another. Moreover, all independent variables (TR_PPQ, PP, EW, and CS) has the positive linear relationship with dependent variable (PCV). It means that if the independent variables get higher value, dependent variable gets higher value too. However, the impact of each independent variable on dependent variable is different. TR_PPQ has the biggest correlation coefficient value at 0.510 whereas EW has the smallest positive linear relationship with PCV, because it has the smallest correlation coefficient at 0.106. Table 36: Pearson's Correlation Coefficient of WB and PCV with PI WB - Website Brand Pearson Correlation WB - Website Brand PI- Purchase Intention 1 Sig. (2-tailed) N 482 Pearson Correlation .000 PCV - Perceived Sig. (2-tailed) Customer Value N 1 1.000 482 482 .197** .551** Sig. (2-tailed) .000 .000 N 482 482 Pearson Correlation PI- Purchase Intention PCV - Perceived Customer Value 1 482 **. Correlation is significant at the 0.01 level (2-tailed). Look like table 36, the writer conclusion that Website Brand and Perceived Customer Value have not linear relationship, but both of them have positively linear relationship with Purchase Intention they will be used for next step regression analysis - 56 - 4.9. Regression Analysis Base on the conceptual research model, three models of multiple regression will be analyzed. For convenient, the model were set name “Model 1”, “Model 2”, and “Model 3” with independent and dependent variables are showed in the table below. Table 37: Independent and dependent variables of three models Independent Variables Conceptual model Name Dependent Variable Code Trust and Perceived Quality Code Perceived Customer Value PCV Purchase Intention PI Purchase Intention PI TR_PPQ Perceived Price PP Easy to Use Websites EW Customer Service CS Model 1 Perceived Customer Value PCV Website Brand WB Model 2 Trust and Perceived Quality Name TR_PPQ Perceived Price PP Easy to Use Websites EW Customer Service CS Model 3 4.9.1. Linear regression of Model 1 Table 38: Model Summary and ANOVA table of Model 1 Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .696a .485 .481 .72059838 a. Predictors: (Constant), EW - Easy to Use Website, CS - Customer Services, PP - Perceived Price, TR_PPQ Trust and Perceived Product Quality - 57 - ANOVAa Model 1 Sum of Squares df Mean Square F Sig. Regression 233.312 4 58.328 112.329 .000b Residual 247.688 477 .519 Total 481.000 481 a. Dependent Variable: PCV-Perceived Customer Value b. Predictors: (Constant), EW - Easy to Use Website, CS - Customer Services, PP - Perceived Price, TR_PPQ Trust and Perceived Product Quality The table above shows the R Square = 0.485 and Adjusted R Square = 0.481 (adjust estimation for true population), it means that the first model includes “Perceived Price”, “Trust and Perceived Product Quality”, “Ease to Use Website” and “Customer Service” explains over 48% of the variance in “Perceived Customer Value” with F value is 112.329 and Sig. =0.000 thus, the “Model 1” reaches statistical significance. Table 39: Coefficients for first model Unstandardized Coefficients Model T Sig. .000 1.000 B Std. Error -7.542E-017 .033 TR_PPQ Trust and Perceived Product Quality .510 .033 .510 15.512 .000 PP - Perceived Price .424 .033 .424 12.895 .000 CS - Customer Services .186 .033 .186 5.648 .000 EW - Easy to Use Website .106 .033 .106 3.238 .001 (Constant) 1 Standardized Coefficients Beta a. Dependent Variable: PCV-Perceived Customer Value Based on the results got from SPSS was showed at table 39. The relationship between dependent variable (PCV) with four independent variables (TR_PPQ, PP, EW and CS) could be written as linear equation. - 58 - PCV = 0.51TR_PPQ + 0.424PP + 0.106EW + 0.186CS (Equation 1) Hypothesis H3*: “Ease to Use Website” has positively impact on “Perceived Customer Value” based on the “Equation 1” the Standardized Coefficients of EW on the PCV is 0.106 and sig. = 0.001 (0) and sig. = 0.000 ([...]... package to increase customers awareness and offer suitable methods of payment From the above reasons, I choose topic as follow: FACTORS AFFECTING THE CUSTOMER’S PURCHASE INTENTION - THE CASE OF ONLINE GROUPON (ONLINE PURCHASING GROUP) IN HCMC The purpose of this study is to define factors affecting customers purchase intention, and then apply business strategy that is most suitable for the enterprise’s... currently there are approximately more than 100 website offering online Groupon and over 14 websites gathering deals from offering Groupon service shopping in Vietnam This reflects the development potential of Groupon market in the country Hence, it is important for online shopping groups to have a deep understanding about the factors influencing the online buying intention of customers, for example brand of. .. affecting customer’s purchasing intention for the case of online groupon (online purchasing group) in Ho Chi Minh City when they buy a product or service via Groupon Website The literature review comprises of theoretical framework for the research model, the measurement of five factors mentioned in the model, and questionnaires for the study of customer’s purchasing intention though Groupon websites After... Moreover, online Groupon is a field of my favorite 1.3 Research Questions From problem statement, the research raises the following research question Which factors will affect the customer’s intention of online purchasing group (online Groupon) 1.4 Research Objectives 1.4.1 General objectives Generally, this thesis research will identify some factors affecting the customer’s purchase intention of online Groupon. .. website in other to increase customer’s intention of online Groupon 1.5 Research Scopes and Limitations This thesis mainly focuses on intention of customer whom officers and students from eighteen to fifty years old in Ho Chi Minh City Because officers and students are target customers of online Groupon method Moreover, Ho Chi Minh City is the main economic city and a city is the most population in Vietnam... support of advisor, I can study more knowledge and experience to do research from him To the online Groupon industry: I hope that this research can find some factors affecting to customer’s intention of online Groupon after I can give suggestion for the marketing strategy of company to rate up customer’s intention As a result, I hope the Groupon industry can develop quickly 1.7 Structure of Research The thesis... deeper about each of these elements in the following sections Perceived Customer Value in the case of online buying could be either positively or negatively influenced by these factors 2.4.2.1 Valence of Experience Valence of experience is defined in the research model as “consumer’s emotional or attitudinal state aroused by the pre -purchase on-line shopping experience” (Chen and Dubinsky, 2003) Consumer... Results of the "Study Monitoring Consumer Electronic Commerce 2012" by Visa has revealed that Vietnamese have gradually getting used to online shopping and gaining more trust in online security measures Therefore, the room for development of Groupon market in Vietnam is very promising, which is the driver for this research 1.2 Problems of Research It can be seen that the online purchasing group market in. .. important concept in marketing research, it can be defined The worth that a product or service has in the mind of the consumer The consumer's perceived value of a good or service affects the price that he or she is willing to pay for it For the most part, consumers are unaware of the true cost of production for the products they buy Instead, they simply have an internal feeling for how much certain products... “Valence of Experience” has positively impact on Purchase Intention H8: “Trust” has positively impact on Purchase Intention H9: “Product Price” has positively impact on Purchase Intention H10: “Perceived Product Quality” has positively impact on Purchase Intention - 13 - 2.4 Related Concepts 2.4.1 Purchasing intention Purchase intention is an individual’s decision to purchase something It can .. .FACTORS AFFECTING THE CUSTOMER’S INTENTION - THE CASE OF ONLINE GROUPON (ONLINE PURCHASING GROUP) IN HCMC In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION... customer’s purchasing intention for the case of online groupon (online purchasing group) in Ho Chi Minh City when they buy a product or service via Groupon Website The literature review comprises of theoretical... ONLINE GROUPON (ONLINE PURCHASING GROUP) IN HCMC The purpose of this study is to define factors affecting customers purchase intention, and then apply business strategy that is most suitable for the