Personal cultulral orientations on the intention of online purchase books empirical evidence from vietnam

1 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business HUYNH NHAT TRUONG PERSONAL CULTULRAL ORIENTATIONS ON THE INTENTION OF ONLINE PURCHASE BOOKS: EMPIRICAL EVIDENCE FROM VIETNAM MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business HUYNH NHAT TRUONG PERSONAL CULTULRAL ORIENTATIONS ON THE INTENTION OF ONLINE PURCHASE BOOKS: EMPIRICAL EVIDENCE FROM VIETNAM MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Prof Pham Ngoc Thuy Ho Chi Minh City – Year 2019 Introduction The e-commerce becomes one of the most popoular shoping method in the world in the recents year (Wu &Liu, 2011) It was showed in the the results of rate of ecommerce consumstion and the revenue from the online retailer is increasing (Ozen & Engizek, 2014) However, the rate of Vietnamese comsumers involves in the e-commerce is lower than some contries in the areas and in the world Vietnam had the rank 15 in comparison with 198 countries about the internet user in 2014 According to Do (2013) Vietnam had the most online user in SEA (Southeast Asia) From 2010, Vietnam is considered as the country with the emerging global economy with the potential doing the online business However, the factors that affect the online consumer behaviors are very different among countries The Vietnamese people value the local context and unique characteristics of Vietnam culture, however the online shop retailers just copied all the concept from the Western in the online business The potention of shopping online increasingly base on the increase in the use internet nowadays The consumers using the online shopping base on the information search easily and for the entertainment The sensitivity of the consumer toward the culture assists in personalization of content, which leads to the increase in loyalty of the customers and sales volume (Singh, 2006; Tixier, 2005) Because of the intensify of the competion in the online shopping, it is considered a key factor for online retailers to determine the antecedents of online shopping acceptance from consumers The previous researchs about online shopping determined the factors which affect the online shopping and the motivationm, value and prehistoric factors of the intention of online shopping behavior There has been some different affected factor for the purchase intention base on the Theory of Planned Behavior (TPB) Which is developed by Ajen (1991) base on the Theory of Reasoned Action-TRA (Fishbein & Ajen, 1975) The behavior awareness reflects the difficulty when making decision, it depends on the resources and chances to make the decision (Ajen, 1991) In the literature reviews, there has been a lot research conducted about how the cultural orientation affect the online shopping In the purpose of comprehending the values of cultural, many researchers used many kind of the cultural frameworks, namely Hofstede (1980), Hall (1977, 1984) or Schwartz (1999) for the online shopping behavior Junyean, Doren & Surinder (2008) has develop the frameworks for the further development in the model of Hofstede’s (1980), the frameworks of the affect of culture, type of product and price influces on the purchase intenion of consumers to the buy personalised product online In the culture dimensions, the authurs define the dimensions of cultural as “individualism, uncertainty avoindance, power distance, and masculinity.” In 2010, Sharma developed the Hosfstede’s model the uncertainty avoidance factor by two different separate dimension as “risk aversion” and “ambiguity intolerance.” Sharma (2010) argues the many mixed findings of previous studies about the different individually in the degree of the “perceived risk” and the “ambiguity” about a given context or product information The research of Sharma (2010), fulfill the importants gap of in context of cross cultural context about Hofstede’s by extending the multi-dimensional conceptualization of nation-level culture as the twelve “personal cultural orientations (PCO)” at individual level In the same research of Sharma (2010), the author also developed his scale model on the behavior intention as the given product of imported cars And athur also asked for more implications in different area base on his research This thesis is the empirical on another products such as book and in the market of Vietnam is a different market in comparison with the the sample of Chinese market in Sharma (2010) research The book is the lower value product with the imported car and with different market that will have another results Vietnam is considered as the very potential for the activities of e-commerce with the high population The aim of this study is finding how the PCO factors affects the intention of purchase books online in Vietnam With such that knowledge about essential to customer relationship management, this will lead to an effective way for manager to use as business strategy to get more successfully achieve in the online book market Literature review Culture and Intention to purchase The online purchases behavour is a broad area for research, however, only fews research have been conducted about the cultural influences on the online purchases sphere (Moon, 2008; Park, 2003; Lopez, 2005; Chai, 2004) The online purchase intention related to degree mesurement of the customer’s intente to make a behaviour of particular purchasing through the internet (Salisbury, Pearson, Pearson and Miller, 2001) Online purchase intention is defined as the customers’s desire to reach the final purchase on the online shop retailer (El-Ansary and Roushdy, 2013) The purpose of this study is to explore the personal cultural orientation on the online shopping in the context of Vietnamese market In this thesis, four items adopted form Zarrad and Debabi (2012) to measure online purchase intention Spears and Singh (2004) cited that purchase intentions are the effort to purchase the specific brand by the individual’s conscious plan Online shopping is something like a system that customers can view then make a purchase of the goods or services through over the Internet (Milong, 2010) Online shopping can produce the convenience for customers to purchase good or services, save time and effort which can meet the customers demand of comfortable in purchasing (Wenjie, 2010) According to Hofstede (1991), the culture is defined as “assemble mind programming which can determine the group members or category” The key culture values are something that we studied from the childhood (Hofstede, 1980) and then Ajiferuke and Boddewyn (1970) developed that from this generation to another generation Culture is the gathering of a purpose share of members from groups society, the traditon, the customs, the norms Culture implies the knowledge share and implies the assumption of the values, the beliefs and other needed construct to clarify and cruise various spheres (Hong, 2000) According to Allen (2002), culture is the beliefs complexity on societies, their roles, the behaviour, the values, the traditions, and the customs of people Culture is an conspicuously crucial concept to comprehend the behaviour of consumers toward a given products or services The knowledge of cultural constructs the basic for an social reality of the individual; and the introduction that describe this reality are passed on during their child memory and are built up by intercommunicate with the others (Lau, 2001) From the culture effect on intention of consumer has dramatically increased and broadened, the globalization of the market spurred and diversificated the of consumer segments (Douglas and Craig, 1997) The differences in consumer behaviours across the cultural orientation are quitely big (DeMooij, 2003) that will lead to needs of the empirical research of each country to understand the affect of cultural over the intention of consumer behaviors According to Levitt's (1983), globalization has created a increasingly more common in the market of the world, with a developing number of customers from broad geographic destination and backgrounds of cultural have the similar preferences According to Zou and Cavusgil (1996), there are some point of view that people from around the world who live in a more patten of uniform has expedited into the relatively emerged global brands with customised strategies of marketing across cultural barriers However, many researchers declared some evidences of increased alteration, especially among developed countries (Usunier, 1997) Suh and Kwon (2002) informed that customers come from the different cultures background have different approachs of consideration to buy imported products even after much acknowledgement to the globalization The four cultural dimensions are pointed out in Hofstede's (1980) seminal work as dimensions for the explantion of cross-cultural differences in consumer buying intentions Hofstede’s (1980, 1991) describes five dimension of the cultural, namely “uncertainty avoidance, masculinity, and long-term orientation individualism, power distance” (Bearden et al 2006a; Soares, 2007) Individualism implies a loosely stick framework of social in which imply the “I”, which will prefer the personal decision over the group decision In contrast, collectivism implies a constricted social framework that implies the “We ” which consider the group decisions seriously People from highly societies of the individualistic appraisal a personal life, personal decisions, autonomy, and variety In the other hand, people in highly societies of collectivist emphasises the decisions, order, and security of the group For instance, In society of Chinese people they have historically focused on the group harmony and conformity in predisposing all inter-personal relations, in the meanwhile decreasing the goals of any personal (Neelankavil, 2000) On the other hand, in the culture that show the strong individualistic such as North America and Europe, consumers are expected to emphasise their own individuality decision or the thinking of people are more strongly than those in the collectivist societies Accordingly, we presume that consumers reaction differentially to personalized given products across cultures with differences(Hofstede, 1980), and the differences among the culture dimensions may affect consumer responses to personalized online products between the two different countries Personal Cultural Orientations The differences of cultural around the world from almost research in behaviour of consumer engage the PCO for consumers’s individuals depended on the national scales of Hofstede’s (1980, 1991) Hofstede’s (2001) culture typology offers a approriate theoretical backgroup to explore differences of cultural around the world with the differences in behavior of consumers It includes four cultural orientations value, namely masculinity-femininity, and uncertainty avoidance individualism-collectivism, power distance According to Bond (1988), a fifth cultural value was added, the orientation is devided into the long term bahaviour and short term behaviour Some studies have cited that cultural values of the national scores relate to the level of individual degree and were used to explain the differences of the differences of cultural around the world with the differences in behavior of consumers (Birgelen, 2002; Ladhari, 2011) Sharma (2010) re-conceptualized Hofstede’s five value of the orientations cultural as ten scale of PCO which have the degree of individual and developed a multidimensional scale the personal cultural orientations measurement Base on Sharma (2010), instead of viewing individualism-collectivism from Hofstede’s concept as two opposite single dimensionintroduced two separate dimensions for the PCO, namely “independence (IND) and interdependence (INT)” by Markus and Kitayama’s (1991) Accordingly, the Hofsteded’s power distance dimension are implied by two different dimensions namely power (POW) and ocial inequality (IEQ) These PCO supplies a broadener cultural differences range at the level of individual, however, and this thesis 10 suggest that INT, IND, RIS and AMB, TRD, INN will be considered as the useful factor in explaining the differences in the purchase books online intetion Interdependence & Independence The literature about tradion of Vietnamese culture focus on the enduring influence of Confucian values and ideologies The Confucianism tend to make the person to adapt to the groups decision as collectivity, control their desires and emotions, govern self-interest for the benefit of the members group, avoid conflict and keep the harmony (Kirkbridge and Tang, 1992) The interest of the group, family, or the whole society must be higher than the interests of any individuals interest Hofstede’s (1980) cited that the people in the individualistic societies prefer to the private life, individual decision, meanwhile in the societies of collective prefer to the group or harmony decisions The consumer in the individualistic culture intent to use the personalized products, on the other hand, the consumers from collective culture intend to use the standards products In the high context or collectivistic cultures, context, wel-fare of the group, and casual reasoning are more importatnt in decision making In other words, in the collectivistic cultures will be affected by the group in the decision making, for example includes the decision for buying a give product In the contrast, personal success is the hightest importance in individual culture (Hall, 1976) Therefore, we propose: H1 The interdependence is positively related to online purchase books intention H2 The independence is positively related to online purchase books intention Risk Aversion The perceived of transaction risk is considered as the risk aversion toward online retailer According Kim and Forsythe (2008) the damage anxiety is also prevalent in online transactions Addion to this, Powell (2013) cited that the directly and indirectly 36 Appendix Appendix In-depth interviews: Background and experience: + Would you please tell us a little/introduce about yourself? + What is your background? + How long have you been for that work? + Do you have experience on working in E-commerce sphere? Information Target: What you think about the cultural in Marketing/ Sales? What you think about the cultural role when entering a new market? • Give short examples about case study with entering new market with new cultural What you think about the different in the cultural of Vietnamese and other markets? What is the main cultural factors that affect the Vietnam market? Do your hear about the definition of orientation cultural? 37 Definition: Personal Cultural Orientations is multi-dimensional conceptualization at the individual level of the Hofstede’s cultural framework about the cross-cultural research It was conducted by Sharma (2010) Base on the references list of cultural orientation cultural? Please give opinion about the suitable component for the E-commerce business List of reference “Personal Culture Orientations” (Scale Items) Interdependence The well-being of my group members is important for me I feel good when I cooperate with my group members It is my duty to take care of my family members, whatever it takes I enjoy spending time with my group members Independence I would rather depend on myself than others My personal identity, independent of others, is important to me I rely on myself most of the time, rarely on others It is important that I my job better than others 38 I enjoy being unique and different from others in many respects 10 I often “my on thing” Power 11 I easily conform to the wishes of someone in a higher position than mine 12 It is difficult for me to refuse a request if someone senior asks me 13 I tend to follow orders without asking any questions 14 I find it hard to disagree with authority figures 15 People in higher positions have more power those in lower positions Social Inequality 16 A person’s social status reflects in or her place in the society 17 It is important for me everyone to know their rightful place in the society 18 It is difficult to interact with people from different social status than mine 19 Unequal treatment for different people is an acceptable way of life for me 39 Risk Aversion 20 I avoid to talking to stranger 21 I would not describe myself as a risk-taker 22 I not like taking too many chances to avoid making a mistake 23 I am very cautious about how I spend my money 24 I am very cautious about how I spend my money Ambiguity Intolerance 25 I find it difficult to function without clear directions and instructions 26 I prefer specific instructions to extended guidelines 27 I tend to get nervous easily when I don’t know an outcome 28 I feel stressful when I cannot predict results 29 I feel safe when I am in my familiar surroundings 30 I get confused easily when dealing with complicated problems Masculinity 31 Women are generally more caring than men 32 Men are generally physically stronger than women 33 Men are generally ambitious than woman 34 Women are generally more modest than men 35 Men are generally more logical than women 40 36 Men are generally more aggressive than women Gender Equality 37 It is ok for men to be emotional sometimes 38 Men not have to be the sole bread winner in a family 39 Men can be as caring as women 40 Women can be as ambitious as men 41 Men and women can be equally aggressive 42 There is nothing that men can but women can not Tradition 43 I am proud of my culture 44 Respect for tradition is important for me 45 I value a strong link to my past 46 Traditional values are important for me 47 I care a lot about my family history 48 I always protect my family heritage Prudence 49 I believe in planning for the long term 50 I work hard for success in the future 51 I am willing to give up today’s fun for success in the future 52 I not give up easily even if I not succeed on my first attempt 53 I plan everything carefully 41 54 I consider many alternatives before making any decision Consumer Ethnocentrism 55 We should not buy foreign products, because it hurts our economy 56 Only products that are unavailable in our country should be imported 57 Purchasing foreign products allows other countries to get rich off of us 58 It may cost me in the long run but I support my own country Consumer 59 I am more interested in buying new than known products Innovativeness 60 I like to buy new and different products 61 I am usually among the first to try new products 62 I know more than others about latest new products 42 Appendix The code of the research measurement items “Personal Culture Orientations” (Scale Items) Interdependence INT1 The well-being of my group members is important for me INT2 I feel good when I cooperate with my group members INT3 It is my duty to take care of my family members, whatever it takes INT4 I enjoy spending time with my group members Independence IND1 I would rather depend on myself than others IND2 My personal identity, independent of others, is important to me IND3 I rely on myself most of the time, rarely on others IND4 It is important that I my job 43 better than others IND5 I enjoy being unique and different from others in many respects Risk Aversion RIS1 I avoid to shopping on strange website RIS2 I would not describe myself as a risk-taker RIS3 I not like taking too many chances to avoid making a mistake RIS4 I am very cautious about how I spend my money Ambiguity AMB1 Intolerance I find it difficult to function without clear directions and instructions AMB2 I prefer specific instructions to extended guidelines AMB3 I tend to get nervous easily when I don’t know an outcome 44 I feel stressful when I cannot AMB4 predict results I feel safe when I am in my familiar AMB5 Tradition surroundings TRA1 I am proud of my culture TRA2 Respect for tradition is important for me TRA3 I value a strong link to my past TRA4 Traditional values are important for me Consumer TRA5 I care a lot about my family history INN1 I am more interested in buying new Innovativeness than known products INN2 I like to buy new and different products INN3 I am usually among the first to try new products INN4 I know more than others about latest new products 45 Appendix Questionaire in English QUESTIONNAIRE Dear Mr/Mrs/Miss My name is Nhat Truong Huynh I am a student from The Internation School of Business (ISB) at the University of Economics, Hochiminh city Now, I am doing the research about the “Personal Cultural Orientations about the online purchase intention” for my gradual thesis This interview questions are for the purpose of the research for the graduation thesis only Your helpful answers will be a contribution to the accomplishment of the research results Please notice that there is no answer right or wrong If you have any concern about the content and meaning of the question, please contact me via email: truonghuynhuniversal@gmail.com Thank you! SECTION 1: GENERAL INFORMATION Do you have intention for buying books?  No  Yes If No, please stop the questionaire Thank you for your time If Yes, please continue next section You buy book for the purpose?  Reading  Give as a gift  Both How often you buy book(s)  Once or twice a year (rarely)  Once a month (sometimes)  Twice a month (usually)  Once a week (buy a lots) SECTION 2: MAIN CONTENT Please show your degree of agreement with these sentences by: The degree of agreement will increase by: No.1: Totally Disagree; No.2: Disagree; No.3: Neither agree nor disagree; No.4: Agree; to No.5: Totally Agree Totally Totall  Disagre y → e Agree Interdependence (INT) The well-being of my group members is important for me 5 I feel good when I cooperate with my group members It is my duty to have online purchase book intention for my family members, whatever it takes I enjoy spending time with my group members I would rather depend on myself than others Independence (IND) 46 My personal identity, independent of others, is important to me 10 I rely on myself most of the time, rarely on others 11 It is important that I my job better than others 12 I enjoy being unique and different from others in many respects Risk Aversion (RIS) 13 I tend to avoid to talk to strangers 14 I prefer a routine way of life to an unpredictable one full of change 15 I would not describe myself as a risk-taker 16 I not like taking too many chances to avoid making a mistake 17 I am cautious about how I spend my money Ambiguity Intolerance (AMB) 18 I find it difficult to function without clear directions and instructions 19 I prefer specific instructions to extended guidelines 20 I tend to get nervous easily when I don’t know an outcome 21 I feel stressful when I cannot predict consequences 22 I feel safe when I am in my familiar surroundings Tradition (TRA) 23 I am proud of my culture 24 Respecting for tradition is important for me 25 I value a strong link to my past 26 Traditional values are important for me 27 I care a lot about my family history Consumer Innovativeness (INN) 28 I am more interested in buying new than known products 29 I like to buy new and different products 30 I am usually among the first to try new products 31 I know more than others about latest new products 5 Questions about the online purchase books intention Online Purchase Intention I intend to buy books through internet in the future 47 I would buy books through internet in the future I intend to buy books through internet It is probable that I would buy books through internet in the future SECTION 3: PERSONAL INFORMATION Please give your personal information for the purpose of synthetising the data 32 Gender:  Male  Female 33 Group of age:  18-22  23-34  35-60  Above 60 34 Where you from:  Vietnam  Other (specific: ………………………….) 35 Monthly average income:  150-250 (USD)  250-750 (USD)  750-2000 (USD)  Above 2000 (USD) 36 Education:  High School  Colleges-Univercities  Post-Graduate 37 Marriage Status:  Single  Single Mom/Dad  Married, no child  Married, has(have) child/ children 38 How many people in your family 1  2-4  5-6 Over  End of questionnarie Thank you very much for your time! Appendix Questionnaire in Vietnamese PHIẾU KHẢO SÁT Kính chào Anh/Chị! Tơi tên Huỳnh Nhật Trường, học viên Viện Đào Tạo Quốc Tế, thuộc trường Đại Học Kinh Tế, TP.HCM Hiện làm đề tài nghiên cứu “Định Hướng Văn Hóa Cá Nhân (Personal Cultural Orientations) ý định mua sách mạng.” Phiếu khảo sát dành cho mục đích nghiên cứu phục vụ cho luận tốt nghiệp Những câu trả lời hữu ích bạn đóng góp phần việc hoàn thành nghiên cứu Xin lưu ý khơng có câu trả lời sai Nếu có câu hỏi liên quan đến nội dung ngữ nghĩa phiếu khảo sát, xin vui lòng trao đổi với thông qua email: kidrock1209@yahoo.com Chân thành cảm ơn! PHẦN 1: THƠNG TIN CHUNG 48  Khơng  Có Nếu Không, xin dừng việc khảo sát Cảm ơn Anh/Chị tham gia Nếu Có, xin trả lời tiếp phần sau Anh/Chị mua sách dùng để?  Đọc  Cả hai Tần suất mua sách Anh/Chị  1-2 lần/ năm (ít mua)  lần / tháng (thỉnh thoảng)  lần/ tháng (thường xuyên)  lần/ tuần (mua nhiều) Anh/Chị có ý định mua sách không?  Tặng PHẦN 2: NỘI DUNG CHÍNH Xin Anh/Chị vui lòng cho biết mức độ tán thành với phát biểu sau cách đánh dấu (✓) vào ô tương ứng, với: mức độ tán thành câu hỏi tăng từ Số 1: Hồn tồn khơng đồng ý, Số 2: Không đồng ý, Số 3: Trung dung, Số 4: Đồng ý, Số 5: Hoàn toàn đồng ý Hoàn tồn khơng đồng ý  → Hồn tồn đồng ý Sự Tương Thuộc Sự hạnh phúc, khỏe mạnh nhóm (gia đình, đồng nghiệp, bạn bè, v.v) quan trọng 5 Tôi cảm thấy hài long/yên tâm hợp tác với nhóm (gia đình, đồng nghiệp, bạn bè, v.v) Đó nhiệm vụ/trách nhiệm tơi phải chăm sóc thành viên gia đình, Tơi thích dành thời gian với thành viên nhóm (gia đình, đồng nghiệp, bạn bè, v.v) Tôi tự thân có ý định mua sách mạng phụ thuộc vào người khác Danh tính cá nhân/Bản ngã tơi, độc lập với người khác quan trọng với 10 Tôi phụ thuộc vào thân hầu hết thời gian, phụ thuộc vào người khác 11 Điều quan trọng làm công việc tốt người khác 12 Tơi thích độc khác biệt so với người khác nhiều phương diện 13 Tơi có xu hướng tránh việc nói chuyện với người lạ 14 Tơi thích quen thuộc thay đổi Sự Độc Lập 49 Ngại Rủi Ro 15 Tơi nghĩ khơng phải người chấp nhận mạo hiểm 16 Tôi không thích chấp nhận nhiều rủi ro để tránh việc mắc sai lầm 17 Tôi cẩn trọng việc sử dụng tiền 18 Tôi cảm thấy khó khăn khơng có dẫn hướng dẫn rõ ràng Sự Không Rõ Ràng 19 Tơi thích hướng dẫn cụ thể hướng dẫn mở rộng 20 Tôi dễ bị lo lắng khơng biết kết cuối 21 Tôi cảm thấy căng thẳng thân khơng thể đốn kết k 22 Tôi cảm thấy an toàn gặp thứ quen thuộc Văn Hóa 23 Tơi tự hào văn hóa 24 Việc tơn trọng văn hóa quan trọng với tơi 25 Tôi trân trọng gắn kết với khứ 26 Những giá trị truyền thống quan trọng với 27 Tôi quan tâm nhiều lịch sử gia đình Sự Đổi Mới Của Người Tiêu Dùng 28 Tôi thích mua sản phẩm so với sản phẩm quen thuộc 29 Tơi thích mua sản phẩm khác 30 Tôi thường xuyên người thử sản phẩm 31 Tôi biết nhiều sản phẩm so với người khác Câu hỏi ý định mua sách mạng Ý định mua sách mạng Tôi có ý định mua sách mạng tương lai Tôi mua sách mạng tương lai Tơi có ý định mua qua mạng Có khả tơi mua sách mạng tương lai PHẦN 3: THÔNG TIN CÁ NHÂN Xin Anh/Chị cho biết số thông tin cá nhân khác dùng để tổng hợp liệu nghiên cứu 50 32 Giới tính:  Nam  Nữ 33 Nhóm tuổi:  18-22 tuổi  23-34 tuổi  35-60 tuổi Trên 60 tuổi 34 Bạn đến từ:  Việt Nam  Quốc gia khác (ghi rõ: ………………………….) 35 Thu nhập bình quân:  3-5 triệu  5-15 triệu  15-40 triệu Trên 40 triệu 36 Nhóm học vấn:  Cấp  Cao đẳng- Đại học  Sau đại học 37 Tình trạng hôn nhân:  Độc thân  Cha/Mẹ đơn thân  Có gia đình, chưa  Có gia đình, có 38 Có người gia đình bạn 1  2-4  5-6 Trên Kết thúc phiếu khảo sát Xin chân thành cảm ơn hợp tác Anh/Chị!    ... UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business HUYNH NHAT TRUONG PERSONAL CULTULRAL ORIENTATIONS ON THE INTENTION OF ONLINE PURCHASE BOOKS: EMPIRICAL EVIDENCE. .. empirical of Vietnamese online books market Although, there are some limitation of the study, the results also shown the affection of cultural orientation on the online purchase books intention Three... comparision with the imported car The findings of this reseach shown that there were affection of the personal cultural orientations on the online purchase book intention Negatively with the Tradition