The impact of social networking integration service of online retailer on consummers puchase intent the case of hochiminh city, vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Lê Thoại Bảo Trân THE IMPACT OF SOCIAL NETWORKING INTEGRATION SERVICE OF ONLINE RETAILER ON CONSUMERS’ PURCHASE INTENT: THE FACEBOOK CASE OF HOCHIMINH CITY, VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Lê Thoại Bảo Trân THE IMPACT OF SOCIAL NETWORKING INTEGRATION SERVICE OF ONLINE RETAILER ON CONSUMERS’ PURCHASE INTENT: THE CASE OF HOCHIMINH CITY, VIETNAM ID: 29110021 MASTER OF BUSINESS (Honours) SUPERVISOR: DR PHẠM PHÚ QUỐC Ho Chi Minh City – Year 2014 ACKNOWLEDGMENT To complete this Master of Business Administration associated between Western Sydney University and University of Economics Ho Chi Minh city with the thesis “The impact of social networking integration service of online retailer on consumers’ purchase intent – the case of Hochiminh city, Viet Nam”, beside exerting myself during last time, firstly, I want to thank deeply to my family that always encouraged me throughout studying process and finishing this thesis Secondly, I also want to give my gratefulness to Professors and lecturers from University of Economics Ho Chi Minh city They provided to us useful knowledge and also highly valuable experiences within two years Especially, I really want to express heartfelt thanks to Dr Pham Phu Quoc guided me enthusiastically to accomplish the thesis ABSTRACT The growth of social networks integration service around the world has created a new place of interaction and communication among people Web-based social communities, weblogs, online social networks provide features, allow consumers to share their personal experiences, knowledge, opinion with one other by writing reviews, rating reviews, and chatting among trusting members This study empirically explores how the social networking integration service of online retailers (Facebook shops) impact on consumers’ purchase intent Formal quantitative research through survey questionnaire with a sample of 219 consumers who are living and working in Hochiminh city, the result reveal that Website social presence, trust and involvement have positive impact on consumers’ purchase intent Implications of these finding for e-retailers and future research are outlined Key words: Website social presence, trust, product attitude, involvement, purchase intent TABLE OF CONTENTS ACKNOWLEDGEMENT ABSTRACT TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES CHAPTER 1: INTRODUCTION 1.1 Research background .1 1.2 Research gap .2 1.3 Research objectives 1.4 Research methodology and research scope 1.5 Research contribution .4 1.6 Research structure CHAPTER 2: LITERATURE REVIEW .6 2.1 Online shopping and social networking services (Facebook case) 2.2 Consumers’ purchase intent 2.2.1 Consumer behavior .9 2.2.2 Step of a intention process 10 2.2.3 The impact of online social networks on consumers’ purchase intent .11 2.3 Website social presence 12 2.4 Trust 13 2.5 Involvement 14 2.6 Product attitude 15 2.7 The conceptual model and hypotheses of the research 16 CHAPTER 3: RESEARCH METHODOLOGY 18 3.1 Research process 18 3.2 Sample design 19 3.2.1 Population 20 3.2.2 Sample size 20 3.3 Data collection procedure .21 3.4 Measurement scale 22 3.5 Questionnaire design 24 3.6 Data analysis method 26 CHAPTER 4: DATA ANALYSIS AND RESULTS 27 4.1 Descriptive analysis – demographics and variables .27 4.2 Reliability Analysis 28 4.3 Exploratory Factor Analysis (EFA) 30 4.4 Regression Analysis .33 4.4.1 Testing assumption of multiple regressions .33 4.4.2 Result of multiple regression analysis .35 4.5 Hypotheses testing result and discussion of the findings .37 CHAPTER 5: CONCLUSION, IMPLICATIONS AND LIMITATIONS 42 5.1 Conclusion 42 5.2 Managerial Implications 43 5.3 Limitations and future research 45 REFERENCES 46 APPENDICES .52 LIST OF FIGURES Figure 2.1: A theoretical model .17 Figure 3.1: Research Process 18 Figure E1: Histogram of Purchase intent .61 Figure E2: Normal Plot of Purchase intent 61 Figure E3: Scatter Plot of Purchase intent .62 LIST OF TABLES Table 3.1 Source of data collection 21 Table 3.2 Source of measurement scale 22 Table 4.1 Respondents’ characteristics 28 Table 4.2 Reliability test result 29 Table 4.3 Rotated component matrix (time 1) .30 Table 4.4 KMO and Bartlett’s test result .31 Table 4.5 Rotated component matrix (time 2) .32 Table 4.6 Correlations matrix 35 Table 4.7 Model Summary of multiple regression analysis 36 Table 4.8 ANOVA of multiple regression analysis 36 Table 4.9 Coefficients of multiple regression analysis 37 Table 4.10 Summary of hypotheses testing results 40 Table D1: Total Variance Explained of factor analysis 60 Table D2: Model Summary of multiple regression analysis 62 CHAPTER 1: INTRODUCTION 1.1 Research background Internet is a social place where created new forum for customers Virtual communities, blog, and online social networking sites provide a platform to influence consumers‟ purchase intents (OTX research, 2008) For more information, Hitwise (2011) indicates that the market share of different online social networking websites has been grown Online retailers have recently taken care about potential objective of understanding and leveraging social influence in customers‟ purchase intent to improve customer relationship management and increase sales Therefore, nowadays, we can find that lot of online retailers have begun to connect their websites with social networking sites, such as online shops in Facebook or Facebook shops Facebook.com is one of the most popular social networking sites in the world and in Vietnam also There are 19.6 million Facebook users in Vietnam by August 2013, accounting for 21.42 percent of the population and 71.4 percent of Internet users By July 2013, Vietnam is the country ranked 16th in the world for percentage growth of Facebookers These impressive numbers in the results of the study Socialbakers & SocialTimes.Me (2013) is announced at the 18th workshop Panorama ICT Vietnam - VIO place in Hochiminh city Socialbakers study (2013) also points out the growing trend on Facebook in Vietnam Hence, Facebook is suitable place for retailers; they can open online shops to business efficiently There are many applications and in Vietnam website allows retailers to build an online shop quickly When using the shops on Facebook, they absolutely not need to worry about their shops will be destroyed when the user overload or fault of the network service providers However, Facebook does not support creating a direct online shop, which ... Administration associated between Western Sydney University and University of Economics Ho Chi Minh city with the thesis ? ?The impact of social networking integration service of online retailer on consumers’...UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Lê Thoại Bảo Trân THE IMPACT OF SOCIAL NETWORKING INTEGRATION SERVICE OF ONLINE RETAILER ON CONSUMERS’... towards online shops in Facebook In addition, this study expands the general understanding of the perceptions of social networking integration service, understands one of the fundamental interests of