Factors affecting the consumer purchase intention of laptop in ho chi minh city

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VO MINH HUNG Assoc Professor Le Nguyen Hau FACTORS AFFECTING THE CONSUMER PURCHASE INTENTION OF LAPTOP IN HO CHI MINH CITY MASTER OF BUSINESS (Honours) Acknowledgement I would like to express my sincere gratitude to my supervisor, Assoc Professor Le Nguyen Hau for the valuable supervision, the support and encouragement he gave me I would like to express my gratitude to my ISB class friends for SPPS directions Your encouragement, excellent guidance, and critical comments have greatly contributed to this thesis Finally, I would like to thank all of the respondents without whom, this research would have been impossible Vo Minh Hung Febuary 2014 Abstract Nowadays, laptop has dramatically become a part of life tool for people around the world, especially for young adult They use laptop to communicate with people, download songs and games, texting message and so on Laptop has the ability to provides, obtain, and shares personal and social information Through these benefits, young adults can create visual form of communication method, update their status in time, and interacted with each other in anytime and anywhere Laptop also provided the capabilities of integrating wireless connections, 3G Although the demand of young adults towards laptop in market is high, there is still a slow growth of market demand in certain area The motivation of young adults to adopt a laptop in Vietnam is slightly lower than neighbor country, such as Indonesia, Thailand and Malaysia Indonesia, Thailand and Malaysia are the three biggest markets for such gadgets and collectively consume over 70 percent of the region‟s sales volume while contributing 67 percent to the overall dollar value (RickMartin 2012) Laptop firm does not have better understanding the preferences of consumer to own a laptop Firms will face the difficulty of fast growth on the business and difficulty to expand business The main purpose of this research is to explore the factors affecting purchase intention of laptop in Vietnam Researchers have identified four factors that affecting purchase intention of laptop during this research, which included relative advantages, price, social influence, compatibility Throughout this research, firms may have a better understanding on the intention to purchase a laptop This coming research will use quantitative research method, conducted from surveying of laptop purchasers in Ho Chi Minh City Key words: Intention, Laptop, Relative Advantages, Price, Social Influence, Compatibility Table of Contents Abstract………………….……………………………………………………………… Table of Content………………………………………………………………………….5 Table of Figure………………………………………………………… ………………8 Table of Table……………………………………………………………………………9 1.1 Research Background .10 1.2 Research Problem 11 1.3 Research Objectives 12 1.4 Scope of the research 12 1.5 Significance of the Study 12 1.6 Structure of the Thesis 13 2.1 Literature Review 14 2.1.1 Purchase Intention 14 2.1.2 Antecedents of purchase intention 16 2.1.2.1 Price 16 2.1.2.2 Compatibility 16 2.1.2.3 Relative Advantage 17 2.1.2.4 Social influences 18 2.2 Development of Research Hypotheses 19 2.2.1 Relationship between Price and Purchase Intension 19 2.2.2 Relationship between relative advantage, compatibility and Purchase Intension 20 2.2.3 Relationship between Social Influences and Purchase Intension 20 2.3 Research Model and Hypothesis .22 2.4 Conclusion 23 3.1 Procedure 24 3.2 Data Collection Methods 26 3.3 Sample Design 26 3.3.1 Target Population 26 3.3.2 Sample Size 27 3.4 Questionnaire design .28 3.4.1 Section A 28 3.4.2 Section B 29 3.5 Measurement 33 3.5.1 Data Processing 33 3.5.2 Data Analysis Technique 34 3.5.2.1 Reliability 34 3.5.2.2 Exploratory Factor Analysis (EFA) 35 3.5.2.3 Multiple Regression Analysis 35 3.6 Conclusion 35 4.1 Descriptive Analysis .36 4.2 Reliability Test 38 4.3 Exploratory Factor Analysis (EFA) 39 4.4 Multiple Regression Analysis 41 4.4.1 Assumption: Homoscedasticity of residuals 41 4.4.2 Assumption: No multicollinearity 41 4.4.3 Multiple Regression 43 4.4.4 Hypothesis Testing 45 4.5 Conclusion 47 5.1 Key Findings 48 5.1.1 Relationship between relative advantage and purchase intention 49 5.1.2 Relationship between price and purchase intention 50 5.1.3 Relationship between compatibility and purchase intention 50 5.1.4 Relationship between social influence and purchase intention 51 5.2 Implication 51 5.3 Limitation of the Study 52 5.4 Recommendations for Future Research 52 5.5 Conclusion 53 Table of Figures Figure 2.3: The research model and hypotheses 22 Figure 3.1: Research process 25 Table of Tables Table 3.4.2: Survey item summary 29 Table 4.1.1: Gender 37 Table 4.1.2: Race 37 Table 4.1.3: Spending Monthly 37 Table 4.2: Result of Reliability Test 38 Table 4.3.1: KMO of Indepent Variable 39 Table 4.3.2: KMO of Depent Variable 39 Table 4.3.3: Rotated Component Matrix of Indepent Variable 40 Table 4.4.2a: Correlations 41 Table 4.4.2b: Coefficients 42 Table 4.3.3a: Model Summary 43 Table 4.3.3b: ANOVA 43 Table 4.3.3c: COEFFICIENTS 44 Table 5.1 Research result 48 CHAPTER 1: INTRODUCTION The research explores the factors affecting purchase intention of laptop of users in Ho Chi Minh City, Vietnam This chapter includes research background, research problem, research objective, and significance of the study 1.1 Research Background Most of the personal computers nowadays are laptops, because they are easier to carry and more connectivity than a desktop computer Laptop technology, with its utilities and powerful functionality, is inevitably changing peoples‟ behaviors; especially young adults using laptop frequently today CourseSmart, which is the world„s largest provider of digital course materials and eTextbooks, found that university students can„t go long without checking their digital devices, including smartphone, laptop and more (CourseSmart, 2011) It‟s very common to see university students and adults checking Facebook status, check email or other social network sites using laptop with their constant web connection feature nowadays Almost, students and adults have laptop Therefore, consumers are keeping themselves with high concern with technologies might change their devices from time to time In other words, devices can be easily be replaced due to the fast pace of advancement in technology Hence, it is essential to know that what factors that actually affecting purchase intention of laptop among the adults in Vietnam 10 APPENDIX Section A: Demographic Profile Gender Race Personal spending monthly million 10 million -> 20 million VND 20 million - Section B: Factors that trigger purchase intention of laptop Strong Disagr ly ee Relative Advantage Laptop is more convenient than normal RA1 desktops Laptop is more RA2 fashionable The price/quality relationship is acceptable in Laptops, as I can enjoy other RA3 free services (e.g e- Disagr ee Neutral Agree Strongly Agree 5 59 mail, voice-mail, MSN & Skype, Webcam, 3G ) anywhere I want RA4 RA5 Price Laptop has good integration of wide range of functions and services Laptop makes different functions easier to use Price is the most important factor when P1 purchasing Laptop I compare prices of other Laptop„s brands and store brands before P2 I choose one I buy Laptop because they are worth to used regarding between with their price & usage P3 quality I am uncertain which Laptop„s brands provide real value for money in terms of P4 product quality The cheapness of some Laptop„s brand suggests to me that they may have some risks, P5 such as low quality Compatibility Laptop is compatible and fit with C1 my needs Laptop is compatible C2 and fit with my lifestyle 5 5 5 5 60 / working style Laptop fit with my C3 habits of using desktop Laptop is a good complement to the traditional desktop for C4 me Laptop can fulfill my want and needs in C5 current life Social Influence Friends and family are very helpful to me in making decision of SI1 buying Laptop I will ask the opinions from my friends and family when buying a SI2 Laptop Friends and family give me valuable advice when I buying a SI3 Laptop I trust my friends and family about their opinions and advices of SI4 Laptop I will purchase a Laptop because my friends and family SI5 recommend to me Purchase Intension I intend to purchase laptop in the near PI1 future I search for information about laptop from time PI2 to time 5 5 5 5 5 61 PI3 PI4 PI5 I always talk about laptop with my friends Purchasing of laptop is beneficial for my daily life I willing recommend my friend to buy laptop 5 Phần A: Thông tin cá nhân Giới tính ữ Dân tộc Chi tiêu cá nhân hang tháng 10 triệ 10 triệu -> 20 triệ 20 triệu -> 30 triệ >= 30 triệ Phần B: Yếu tố kích thích ý định mua máy tính xách tay Hồn tồn khơng đồng ý Khôn g đồng ý Khôn gý kiến Đồn gý Hoàn toàn đồng ý 62 Lợi tương đối Máy tính xách tay thuận tiện so với máy tính để bàn Máy tính xách tay thời trang hơn máy tính để bàn Mối quan hệ giá/chất lượng có chấp nhận so sánh máy tính xách tay với máy tính để bàn Máy tính xách tay có tích hợp tốt chức dịch vụ so với máy tính để bàn Máy tính xách tay thực chức khác dễ dàng để sử dụng so với máy tính để bàn Giá Giá yếu tố quan trọng mua máy tính xách tay Anh/Chị so sánh giá thương hiệu máy tính xách tay khác trước anh/chị chọn Anh/Chị mua máy tính xách tay có giá trị để sử dụng chất lượng sản phẩm Anh/Chị khơng chắn thương hiệu máy tính xách tay cung cấp giá trị thực tương ứng với số tiền chất lượng sản phẩm Các thương hiệu tính xách tay giá rẻ anh/chị họ có số rủi ro, chẳng hạn chất lượng thấp Khả tương thích Máy tính xách tay tương thích phù hợp với nhu cầu anh/chị Máy tính xách tay tương thích phù hợp với lối sống / phong cách làm việc anh/chị 5 5 5 5 5 5 63 Máy tính xách tay phù hợp với thói quen sử dụng máy tính để bàn anh/chị Máy tính xách tay bổ sung tốt cho máy tính để bàn truyền thống anh/chị Máy tính xách tay thực mong muốn nhu cầu anh/chị sống Ảnh hưởng xã hội Bạn bè gia đình hữu ích cho anh/chị việc đưa định mua máy tính xách tay Anh/Chị hỏi ý kiến từ bạn bè gia đình anh/chị mua máy tính xách tay Bạn bè gia đình cho anh/chị lời khuyên có giá trị anh/chị mua máy tính xách tay Anh/Chị tin tưởng bạn bè gia đình anh/chị ý kiến lời khuyên họ máy tính xách tay Anh/Chị mua máy tính xách tay bạn bè gia đình anh/chị giới thiệu cho anh/chị Ý định mua Anh/Chị có ý định mua laptop tương lai gần Anh/Chị có thường xuyên tìm kiếm thơng tin laptop Anh/Chị có thường xuyên trao đổi laptop với bạn bè anh/chị Laptop có mang lại lợi ích cho sống hàng ngày anh/chị Anh/Chị sẵn sàng giới thiệu bạn anh/chị để mua laptop 5 5 5 5 5 5 64 Table 6.1: Total Variance Explained of Indepent Variable Total Variance Explained Componen t Initial Eigenvalues Total 10 11 12 13 14 15 16 17 18 4.880 2.799 1.597 1.499 1.135 1.000 Extraction Sums of Squared Loadings % of Cumulative Variance % 24.402 24.402 13.996 38.398 7.983 46.381 7.493 53.874 5.677 59.550 4.998 64.548 936 4.681 69.229 844 4.220 73.449 724 3.619 77.07 688 3.442 80.510 591 2.953 83.463 539 2.696 86.159 485 2.423 88.582 455 2.273 90.855 396 1.982 92.837 373 1.864 94.701 342 1.711 96.412 297 1.484 97.896 Total 4.880 2.799 1.597 1.499 1.135 % of Variance 24.402 13.996 7.983 7.493 5.677 Cumulative % 24.402 38.398 46.381 53.874 59.550 65 19 20 213 1.065 98.962 208 1.038 100.000 Source: Developed by the research Table 6.2: Total Variance Explained of depent Variable Total Variance Explained Componen t Initial Eigenvalues Total 2.719 869 Extraction Sums of Squared Loadings % of Cumulative Variance % 54.380 54.380 17.372 71.752 607 12.135 83.886 435 8.690 92.576 371 7.424 100.000 Total 2.719 % of Variance 54.380 Cumulative % 54.380 Source: Developed by the research 66 Figure 6.3: Homoscedasticity of residuals Assumption: Independence of residual Table 4.3.4: Model Summaryb Model Table 4.3.4: Model Summaryb R R Adjuste Std Durbin-Watson Square dR Error of Square the Estimat e a 389 0.151 0.131 0.6725 1.871 Source: Developed by the research The rule of Independence of residual is that Durbin-Watson → and the best is approximate Based on the results in Table Model Summary, Durbin-Watson is good with 1.871 67 Assumption: A linear relationship Advantage Figure 6.5.1: A linear relationship between Purchase Intension and Relative Figure 6.5.2: A linear relationship between Purchase Intension and Price 68 Figure 6.5.3: A linear relationship between Purchase Intension and Compatibility Figure 6.5.4: A linear relationship between Purchase Intension and Social Influence 69 Based on the graphs, there is the linear relationship between relative advantage and purchase intention, price and purchase intention, compatibility and purchase intention, social influence and purchase intention Assumption: No significant outliers or influential points Table 6.6: Model Statistics Model Ljung-Box Q(18) DF Total PI-Model_1 Number of Outliers Sig 18 569 The rule is that there is no number of outliers Based on the table 4.3.6, the number of outliers is zero Assumption: Normality of the residuals Figure 6.7.1: Normality of the residuals 70 Figure 6.7.2: Normality of Relative Advantage Figure 6.7.3: Normality of Price 71 Figure 6.7.4: Normality of Social Influence Figure 6.7.5: Normality of Compatibility 72 Based on the graphs, the data is distributed around the diagonal There are normality of the residuals for variables relative advantage, price, compatibility, social influence and purchase intention 73 ... advantage towards purchase intention of laptop? ??s users in Ho Chi Minh City, Vietnam H1: There is an impact from relative advantage towards purchase intention of laptop? ??s users in Ho Chi Minh City, Vietnam... towards purchase intention of laptop? ??s users in Ho Chi Minh City, Vietnam H1: There is an impact from social influence towards purchase intention of laptop? ??s users in Ho Chi Minh City, Vietnam Reject... laptop in Ho Chi Minh City, Vietnam H2: There is a significant influence of compatibility towards consumer purchase intension of laptop in Ho Chi Minh City, Vietnam H3: There is a significant influence