Factors affecting consumers behavioral intention toward email marketing

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Ta Thi Thu Huong FACTORS AFFECT CONSUMER’S BEHAVIORAL INTENTION TOWARD EMAIL MARKETING MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Ta Thi Thu Huong FACTORS AFFECT CONSUMER’S BEHAVIORAL INTENTION TOWARD EMAIL MARKETING ID: 22110025 MASTER OF BUSINESS (Honours) SUPERVISOR: CAO HAO THI Ho Chi Minh City – Year 2014 ACKOWLEDEGMENTS Firstly, I would like to express my deep gratitude to Dr Cao Hao Thi, my research supervisor, for his patient guidance, enthusiastic encouragement and useful critiques of this research work My grateful thanks are also extended to thank all of my friends and my colleagues, who help me collecting the survey to this research Finally, I wish to thank my family to their supports and encouragement throughout my study i ABSTRACT Email marketing is one of the most cost-effective marketing tools for businesses especially small companies However, many Vietnamese companies, especially small businesses have not yet taken advantage of this method On the other hand, few of studies have investigated about the Vietnamese behavior intention toward email marketing Hence, this study focuses in measuring relationship between cognitive factors – Attitude towards advertising, Perceived Benefits and Perceived Risk – and customer’s behavioral intention toward email marketing To examine research model, information and data is accessed by using questionnaire for respondents who usually use email such as office staff, student Sample size of this quantitative research is 223 respondents SPSS software is used to test measurement scale, research model and hypotheses Results in this study show that customers have intention to accept receiving email marketing if they perceive benefit and their attitude toward advertising is positive Among three impact factors, Perceived Benefit has the strongest direct influence, followed by Attitude toward advertising, and the factor Perceived Risk has not any impaction toward customer’s behavioral intention It shows that the Vietnamese customers are not worry too much about the risk of receiving unwanted email or the disclosure of the personal information Study results also suggest that in order to increase customer’s behavior intention toward email marketing, should take consideration of increasing benefit of the email content, especially some component such as fun, entertainment ii TABLE OF CONTENT ACKOWLEDEGMENT…………………………………………………………… .i ABSTRACT………………………………………………………………………… ii TABLE OF CONTENT…………………………………………………………………… iii LIST OF FIGURES and TABLES…………………………………………………………vi ABBREVIATION………………………………………………………………… viii CHAPTER 1: INTRO DUCTION 1.1 Problem statement…………………………………………………………………….1 1.2 Research objectives………………………………………………………… .1 1.3 Research questions………………………………………………………… 1.4 Research scope……………………………………………………………………… 1.5 Research contribution……………………………………………………… 1.6 Research structure…………………………………………………… …………… CHAPTER 2: LITERATURE REVIEW 2.1 The effectiveness of email marketing…………………………………………………5 2.2 The theories of Behavioral Intention………………………………………………… 2.2.1 The Theory of Reasoned Action (TRA)…………………………………………8 2.2.2 The Theory of Planned Behavior (TPB)……………………………… .9 2.2.3 The Theory of Technology Acceptance Model (TAM)……………………… 10 2.2.4 Model of consumer’s acceptance toward mobile marketing………………… 10 iii 2.3 Research model…………………………………………………………… .12 2.3.1 Attitude toward advertising……………………………………… ………… 13 2.3.2 Benefits in receiving………………………………………………… .14 2.3.3 Perceived Risk……………………………………………………… 17 2.3.4 Attitude toward email marketing…………………………………… 17 2.4 Chapter summary……………………………………………………………………18 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research Process………………………………………………………… .19 3.2 Source data for research………………………………………………… 19 3.3 Research method…………………………………………………………………….20 3.4 Sample design and size…………………………………………………… .20 3.5 Measurement scale………………………………………………………………… 21 3.6 Method of survey data analysis…………………………………………… .23 3.7 Pilot survey result……………………………………………………………………23 3.8 Chapter summary……………………………………………………………………24 CHAPTER 4: DATA ANALYSIS 4.1 Descriptive analysis…………………………………………………………………25 4.2 Reliability analysis………………………………………………………………….28 4.3 Exploratory factor analysis (EFA)………………………………………………… 31 4.3.1 Reliable measurement…… ………………………………………………….32 iv 4.3.2 Correlation Matrix…… …………………………………………………….34 4.3.3 Factor extraction…… …………………………………………………… 37 4.3.4 Results and interpretation …… ……………………………………………40 4.4 Multiple regression analysis……………………………………………… .43 4.4.1 Correlation analysis……………………………………………………………43 4.4.2 Regression analysis……………………………………………………………44 4.4.3 Hypotheses testing…………………………………………………………… 45 4.4.4 Summary of hypotheses testing……………………………………………… 46 4.5 Testing the difference on customer characteristic……………………… 47 4.5.1 Testing the difference on age and gender.………………………………… 47 4.5.2 Testing the difference on education background…………………… .49 4.5.3 Testing the difference on occupation………………………………………….50 4.6 Chapter summary……………………………………………………………………51 CHAPTER 5: CONCLUSION AND RECOMMENDATION 5.1 Conclusion………………………………………………………………………… 52 5.2 Recommendation……………………………………………………………………53 5.3 Limitation and suggestion for further research…………………………… .54 REFERENCES……………………………………………………………………………….55 APPENDICES……………………………………………………………………………… 59 v LIST OF FIGURE AND TABLES Figure 2.1: The basic theory of reasoned action (TRA)………………………………… Figure 2.2: The model of consumer acceptance toward mobile marketing…………… 11 Figure 2.3: The model of consumer acceptance toward email marketing……… 13 Figure 3.1: Research framework……………………………………………………… 19 Figure 4.1: Time of using internet each day…………………………………………… 27 Figure 4.2: Scree plot…………………………………………………………………….42 Figure 4.3: The reconstructed research model………………………………………… 42 Table 2.1: SWOT analysis of email marketing………………………………………… Table 2.2: Compares email to other forms of direct and internet marketing…………… Table 3.1: Factors and Variables……………………………………………………… 21 Table 4.1: Gender of respondents……………………………………………………… 25 Table 4.2: Age of respondents………………………………………………………… 26 Table 4.3: Occupation of respondents ………………………………………………… 26 Table 4.4: Age of respondents ………………………………………………………… 26 Table 4.5: Income of respondents ……………………………………………………….27 Table 4.6: Reliability analysis of each variable………………………………………….29 Table 4.7: KMO and Barlett’s Test…………………………………………………… 33 Table 4.8: Total Variance Explained…………………………………………………….35 vi Table 4.9: Table of communalities before and after extraction………………………….36 Table 4.10: Component matrix before rotation………………………………………….38 Table 4.11: Rotated Component Matrix………………………………………… 38 Table 4.12: The rotation of variables….………………………………………… 42 Table 4.13: Correlations between groups of variables in Regression Analysis…………44 Table 4.14: Result of regression analysis……………………………………………… 45 Table 4.15: Result of regression analysis……………………………………………… 45 Table 4.16: Result of comparing customer’s satisfaction among age………………… 47 Table 4.17: Result of comparing customer’s behavioral intention among gender 48 Table 4.18: Result of comparing among education background……………………… 49 Table 4.19: Result of comparing among occupation…………………………………….50 vii ABBREVIATIONS EFA: Explored factor analysis KMO: Kaiser-Meyer-Olkin SPSS: Statistical Package for the Social Sciences viii which, the component of “see advertising a good thing” have made higher impaction What is measurement scale of the customer’s behavioral intention toward email marketing? In the chapter 3, the measurement scales for customer’s behavioral intention toward email marketing was displayed with 19 attributes After the factor analysis step, 19 attributes was analyzed to confirmed that these are have made significant contribution to measure the customer’s behavioral intention toward email marketing How strength of each factor in the relationship with the customer’s behavioral intention toward email marketing? With the two supported hypotheses that was presented in the chapter 4, the results of hypotheses has shown the strength of relationship between each factor with the customer’s behavioral intention toward email marketing as following: H1: The more positive the attitudes toward advertising in general, the more positive the attitudes toward email marketing If the factor Attitude improves by one unit, the factor Behavioral Intention will increased by 0.134 units H2: The higher the benefit in receiving email marketing, the more positive the attitude toward email marketing If the factor Perceived Benefit improves by one unit, the factor Behavioral Intention will increased by 0.704 units 5.2 Recommendation In the chapter 4, the regression equation shows that the two factors Attitude toward 54 advertising and Perceived Benefits have positive impact while the factor Perceived Risk has negative impact on customer’s behavioral intention As the result, the factor Perceived benefits has the highest effect on customer’s behavioral intention, in which, the benefits of entertainment are considered as a most impact to behavioral intention, following is information benefits and benefit in general Hence, to improve the positive behavior of customer toward email marketing, marketers should improve the benefit for customers when they send an email marketing By focusing on the value of entertainment, information and the usefulness of email’s content, the marketer will reach the need of customers and make them to be a volunteer receiver About the factor Attitude to advertising in general, marketers cannot directly increase customer’s attitude toward advertising, however, they can improve their advertising campaign to provide customers more interesting advertising indirectly 5.3 Limitation and suggestion for further research Beside findings that the study contributes to email research field or business field, this study has several limitations such as the conceptual model, the measurement scale and geography Firstly, the conceptual model could be added more factors to investigate such as design of emails, sender’s reputation or time of sending Secondly, the conceptual model was simple and not enough to measure the customer’s behavioral intention more exactly Thirdly, the samples have just collected in Ho Chi Minh City, if they were collected from more other big cities such as Ha Noi, Da Nang, Can Tho, the study would be more valuable Besides, most of the samples were collected conveniently through the author’s friends, colleagues and classmate who usually are office staff or student If the author can expand the survey to more companies and schools, the research results will become more reliable 55 REFERENCES Ajzen, I & Fishbein, M (1980) Understanding attitudes and predicting social behavior Englewood Cliffs, NJ: Prentice-Hall Berry, G.L (1995) Relationship Marketing of Services Growing Interest, Emerging Perspectives Journal of the Academy of Marketing Science, 23 (4), 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Communications, ButterworthHeinemann,Oxford,U.K 60 APPENDICES APPENDIX 1: Measurement scale of factors No Attributes Scale items My general intention to receive email marketing is very high Behavioral intention Sources I will think about receiving toward email email marketing marketing Hans H Bauer, Tina Reichardt, I will receive email marketing in the future Stuart J Barnes, Marcus M Neumann (2005) I find receiving advertising email Shimp and Kavas (1984) positive Attitudes toward email I marketing receiving advertising emails Generally, I find advertising a Hans H Bauer, Tina Reichardt, Attitude good thing toward appreciate advertising Stuart J Barnes, Marcus M Neumann (2005); Pollay and I like advertising Mittal (1993) Through advertising messages via emails, I receive timely Information information Benefits Through advertising messages Hans H Bauer, Tina Reichardt, via emails, I receive exclusive Stuart J Barnes, Marcus M information 10 Benefit receiving in The advertising Neumann, 2005 messages customized to my profile are useful 61 I can benefit from advertising 11 messages via email I forward email marketing I like 12 to my friends Social Benefit 13 By receiving advertising messages via the email, I can demonstrate my innovativeness to my friends The 14 15 advertising emails customized to my profile are fun Entertainment I find advertising messages via Benefit email exciting I 16 find email marketing is entertaining There is a risk of personal data 17 18 being misused when register to Perceived receive email marketing Risk There is a risk of receiving unwanted email when receiving email marketing 62 Hans H Bauer, Tina Reichardt, Stuart J Barnes, Marcus M Neumann (2005) Hess (1995) APPEDIX 2: Questionnaire in both Vietnamese and English version BẢNG KHẢO SÁT Xu hướng hành vi người tiêu dùng email marketing Kính chào Anh/Chị, Tôi tên Tạ Thị Thu Hương, học viên Viện đào tạo quốc tế ISB - Trường Đại học Kinh tế TP.HCM Hiện nay, nghiên cứu đề tài “Xu hướng hành vi người tiêu dùng email marketing”, đó, tiến hành khảo sát nhằm tìm hiểu ý kiến Anh/Chị Rất mong nhận giúp đỡ Chị/Anh để giúp hoàn thành khảo sát cách cho biết mức độ đồng ý Anh/Chị phát biểu Tất ý kiến Chị/Anh có giá trị nghiên cứu Tôi xin cam kết thông tin Chị/Anh bảo mật dùng với mục đích phục vụ nghiên cứu Mọi thông tin liên quan đến đề tài này, xin liên hệ địa email huongttt8@gmail.com Tôi xin chân thành cám ơn giúp đỡ Chị/Anh HƯỚNG DẪN TRẢ LỜI Anh/chị vui lòng đánh giá mức độ đồng ý với phát biểu dây theo quy ước từ mức (hoàn toàn không đồng ý) đến mức (hoàn toàn đồng ý) sau: 63 1.Hoàn toàn không đồng ý Trung lập (không có ý Đồng ý kiến) Không đồng ý Hoàn toàn đồng ý Hơi đồng ý Hơi không đồng ý STT Thuộc tính Mức độ đồng ý Phát biểu Generally I find advertising a good thing Attitudes towards Ads Nhìn chung thấy quảng cáo điều tốt Attitudes towards Ads I like advertising Tôi thích quảng cáo I Entertainment Benefit find advertising messages via email marketing exciting Tôi thấy nội dung từ email quảng cáo thú vị The advertising messages customized to my Entertainment Benefit profile are fun Tôi thấy nội dung quảng email quảng cáo gửi cho vui nhộn Participating in an lottery through email marketing is fun Entertainment Benefit Tham gia vào trò chơi trúng thưởng tổ chức qua email quảng cáo niềm vui 64 I Entertainment Benefit find email marketing messages are entertaining Nội dung email quảng cáo giúp giải trí Through email advertising messages, I receive timely information Information Benefit Thông qua email quảng cáo, cập nhật thông tin Through advertising messages via the email marketing, I receive exclusive information Information Benefit Thông qua email quảng cáo, nhận thông tin phù hợp với I forward email marketing I like to my friends Social Tôi gửi chuyển tiếp email quảng cáo Benefit mà thích cho bạn bè By using advertising messages via the email marketing 10 Social I can demonstrate my innovativeness to my friends Benefit Sử dụng email quảng cáo thể sáng tạo với bạn bè The advertising messages customized to my 11 Benefit receiving in profile are useful Nội dung quảng cáo gửi đến email hữu ích 65 I can benefit from advertising messages via 12 Benefit in receiving email Tôi hưởng lợi từ email quảng cáo There is a risk of personal data being misused 13 Perceived Risk when receiving email marketing Có nguy việc liệu tin cá nhân bị lạm dụng nhận email quảng cáo There is a risk of receiving unwanted email 14 Perceived Risk when register to receive email marketing Có nguy việc nhận email quảng cáo có nội dung không mong muốn I find receiving advertising messages via the Attitudes 15 email positive towards email MKT Tôi thấy nhận email quảng cáo việc có tính chất tích cực I appreciate receiving advertising messages via Attitudes 16 email towards email MKT Tôi đánh giá cao nội dung quảng cáo qua email My general intention to receive email- 17 Behavioral Intention marketing services is very high Nhìn chung có xu hướng đọc email quảng cáo cao 66 18 Behavioral Intention I will think about receiving email marketing Tôi nghĩ đến việc đọc email quảng cáo I will recieve email marketing services in the 19 Behavioral Intention future Tôi nhận email quảng cáo tương lai Thông tin cá nhân Anh/Chị: Giới tính:  Nam  Nữ Độ tuổi:  Dưới 18 tuổi  26 – 35 tuổi  18 – 25 tuổi  Trên 35 tuổi 67 Nghề nghiệp anh/chị:  Học sinh, sinh viên  Nhân viên văn phòng  Nội trợ  Tự kinh doanh  Khác: …………… Trình độ học vấn anh/chị:  Trung học  Đại học  Trung cấp  Sau đại học  Cao đẳng  Khác: ……………… Thu nhập  Dưới triệu  – 10 triệu  4-6 triệu  Trên 10 triệu Thời gian sử dụng internet ngày  Dưới  –  –  Hơn  – Xin cảm ơn Anh/Chị hỗ trợ! 68 ... intention toward email marketing? - What is measurement scale of the customer’s behavioral intention toward email marketing? - How strength of each factor in the relationship with the behavioral intention. .. consumer’s behavioral intention include attitudes toward advertising, perceived benefits, perceived risk in receiving email marketing, attitudes toward email marketing, and behavior intention. .. of email marketing that Marko Heintie (2010) has presented in which briefly summarizes the issues affecting email marketing Table 2.1: SWOT analysis of email marketing Strengths Weakness Email