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VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES Le Kim Dung A RESEARCH ON ONLINE PURCHASING BEHAVIOR OF VIETNAMESE CONSUMERS Major: Business Administration Major code: 34 01 01 SUMMARY OF DOCTORIAL THESIS IN BUSINESS ADMINISTRATION HA NOI - 2020 HÀ NỘI - 2018 The thesis was completed at Graduate Academy of Social Sciences Academic Supervisor: Assoc.Prof Dr Le Huu Anh Dr Nguyen Binh Giang Reviewer 1: Assoc.Prof Dr Hoang Van Hai Reviewer 2: Assoc.Prof Dr Nguyen Van Thao Reviewer 3: Assoc.Prof Dr Vu Huy Thong The thesis is defended against Academy-level Examination Board at Graduate Academy of Social Sciences Time: ………… date………month……….year…………… The thesis can be found at: National Library of Vietnam and Library of Graduate Academy of Social Sciences LIST OF THE AUTHOR’S PUBLICATIONS IN ASSOCIATION WITH THE THESIS Le Kim Dung (2018), “Study the factors influencing online shopping behavior of Vietnamese consumers by expanded DTPB theory”, Economy and Forecast Review, Issued 21 July 2018 (697), ISSN: 0866-7120, pp.3740 Le Kim Dung (2018), “Review of Consumer’s Shopping Online Behavioral Models”, Journal of Asia - Pacific Economic Review, 06/2018, ISSN: 08683808, pp.51-53 INTRODUCTION The necessity of the research In the era of industrial revolution 4.0, e-commerce has grown very quickly in the world and in Vietnam Online shopping is becoming an indispensable trend in the context of Industry 4.0, when Vietnam is one of the six countries with the largest and most developing Internet and digital economy in and out of the region including: India, Malaysia, Philippines, Singapore, Thailand and Vietnam, estimated to reach about 200 billion USD by 2025 with the rapid increase in the number of Internet users, as well as the number of people using and will use smartphones with both young and large population and high levels of education and average income Buying goods online is a natural trend and indispensable thanks to the development of the Internet To sustain and develop grow ecommerce business, retailers face challenges not only to attract new customers, but also to retain existing customers and to find solutions to customers finding their websites Thus, the question is how to exploit the needs of the online retail market in Vietnam? Studying on shopping behavior of Vietnamese online consumers is essential for the development of effective online business models at the beginning of development Therefore, in order to understand the behavior and factors affecting online shopping behavior of Vietnamese consumers, the author chooses a research perspective through understanding online shopping behavior of the youth by the topic "A Research on Online Shopping Behavior of Vietnamese Consumers" to identify and describe the characteristics of Vietnamese consumers in the online shopping process, as well as identify and analyze the key factors affecting online shopping behavior of consumers The dissertation's findings contribute to the sciences for the online shopping process, as well as to bring practical value to businesses in the strategy of building compatible systems and policies The purpose and task of the research 2.1 The purpose On the basis of generalizing and supplementing some theoretical issues about online shopping behavior, the author clarifies the analytical framework of the thesis, uses an analytical framework to describe online shopping behavior of Vietnamese consumers, factors affecting their online shopping Then, propose management implications and recommendations to improve online business activities in Vietnam 2.2 Task of the research (1) Study and develop a theoretical framework for online shopping behavior; (2) Develop and validate a scale of online shopping behavior to use for online business; (3) Build a research model of online shopping behavior of Vietnamese consumers; (4) Test the proposed research model with actual data collected from the research sample; (5) Measure the importance of the factors affecting online shopping behavior, thereby proposing solutions for online business; (6) Propose implications for online retailers Object and scope of the research 3.1 Object of the thesis Is online shopping behavior of Vietnamese consumers 3.2 Scope of the thesis - About the content: The thesis applies the theoretical model of online shopping behavior in the world as a theoretical framework for developing online shopping behavior model in Vietnam; Analyze the stages in the process of online consumer behavior; Find out the factors that influence online shopping behavior of Vietnamese consumers; Provide policy implications to enhance online shopping decisions to promote the development of Vietnam's online business market - About space: The research mainly focuses on the Vietnamese consumer aged from 18 - 45 in three cities representing the North, Central and South are Hanoi, Da Nang and Ho Chi Minh City - About time: Survey data were conducted from 2010 - 2018 Primary data was implemented in 2017 - 2018 Methodology and research methods of the thesis 4.1 Methodology of the thesis The author uses and combines a system of popular methods such as analysis, synthesis, and technical methods such as statistics, description, comparison, evaluation, and interview, sociological surveys all to create useful tools to collect the best information for the thesis By reviewing published research documents on online shopping behavior, the author provides basic theoretical and practical as trends for discussion of the thesis 4.2 Research methods of the thesis Preliminary studies are conducted by qualitative and quantitative research methods These preliminary studies were conducted in Hanoi Qualitative research was conducted through expert interviews and focus group discussions The formal study was also conducted by quantitative research method by direct interviewing Official research was conducted in three major cities: Hanoi, Da Nang and Ho Chi Minh city New contributions of the thesis The study contributes a number of new findings on the online shopping behavior of Vietnamese consumers The application of theories of behavior to the stages of the online shopping decisionmaking process opens up a new research model that exploits the continual relationship between online information search behavior and online shopping behavior The research model of the thesis analyzes the process of transforming the stages of online consumer behavior In addition, the model presents the factors that influence the process of transforming the stages of online consumer These factors are the basis for online retailers to orient their approach to online customers Theoretical and practical meanings of the thesis 6.1 Theoretical of the thesis The results of this study are of scientific significance when contributing to new development, enriching theories on online shopping behavior of consumers (including Vietnamese consumers) 6.2 Practical meanings of the thesis The results of the study help online retailers understand the role of the factors affecting the online shopping decisions of Vietnamese consumers as well as specific criteria for each factor Thereby, they can build marketing and advertising programs in the right direction to improve business efficiency The thesis proposes some management implications to improve the efficiency of online business activities which are feasible and valuable for retailers to promote online shopping of Vietnamese consumers The structure of the thesis The main content of the thesis consists of chapters In addition to the introduction, conclusion, references and appendices, the thesis contents as follows: Chapter 1: Overview of research works on online shopping behavior Chapter 2: Theoretical foundations and research models Chapter 3: Research methodology Chapter 4: Research results and discussion Chapter 5: Management implications to improve the efficiency of online business Chapter OVERVIEW OF RESEARCH WORKS ON ONLINE SHOPPING BEHAVIOR 1.1 The research works in the world Rong Li et al (2007) analyzes the factors influencing online shopping intention In particular, the trust has been shown to be an important factor affecting the purchase intention of Chinese consumers In the research model, the trust variable is an intermediary variable between independent variables such as knowledge of e-commerce, perceived reputation, perceived risk, perceived ease of use, and dependent variable intention to buy Through the research results, the authors have shown that there is a strong relationship between trust and purchase intention And they believe that Chinese online retailers want to compete with others should consider trust as the first important factor that needs to be built Factors as knowledge of e-commerce, perceived risk, and perceived ease all affect trust Particularly, perceived reputation has no effect on trust The author also explains that because there are some big websites in the field of shopping in China and they occupy most of the market share When Chinese customers online shopping, they mainly go to these websites, so the study of the perceived reputation factor does not have much influence on trust Empirical research on the factors influencing the attitude and intention of online shopping by consumers in Bankok, Thailand by Ma Mengli (2011) is a meaningful contribution to online business in this country Research results have shown that only three of the five factors that influence online shopping attitudes are perceived ease of use, perceived usefulness and trust Those exclusion factors are individuality and safety and perceived risk In addition, the study also shows that demographic factors not affect much on purchasing behavior The reason for this is because the female population in BangKok is mostly having job and their education level is equal to the male, and they also have many opportunities to access the Internet In Gotland, U Sultan & M Uddin (2011) studies customer attitudes towards online shopping The results of the study suggest that there are four influencing factors for online shopping in Gotland, of which the strongest impact factor is website design / features, followed by convenience, time saving and security The study also found that there are a number of other factors that influence the intention of online shopping behavior including price, discount, feedback from previous customers and the quality of the product In Korea and the United States, Joongho Ahn et al., (2001) built an E-Cam acceptance model by integrating TAM model of Davis (1986) with theory risk TPR (Bauer, 1986) This model shows the factors that influence the transition from Internet users to potential consumers of different cultural regions In the US, Patricia Sorce et al (2005) examines online shopping behavior and direct purchasing behavior among young people and the elderly through their attitudes towards shopping The results show that older people search online information less than young people, they are actually more likely to buy directly than younger consumers This result shows that attitude influences online shopping behavior, while age affects purchasing behavior for the first time The study of Sita Mihra (2014) uses Ajzen's intended behavior theory model (1991) to study the factors that influence Indian consumers' intention and online shopping behavior The results show that attitudes, subjective standards and capacity to control behavior have a positive impact on intention, but subjective standards have a negligible impact on behavioral intention And as well as the conclusion of Ajzen (1991), Sita Mihra (2014) also find a positive relationship between intention and behavior Attitude is the most important factor influencing purchasing intentions followed by awareness of ability to control behavior Therefore, if marketers create a positive attitude towards online shopping in mind of consumers, it will lead to higher intention and ultimately real buying behavior Mehrdad Salehi (2012) conducts a research on consumer buying behavior for online stores in Malaysia This study is conducted to identify factors affecting consumers for online shopping in Malaysia The study focuses on nine independent variables: website appearance, quick access, information security, sitemap, relevance, promotion, attractiveness, trustworthiness and originality The findings of the study indicate that the first five factors that influence consumers on online shopping and security are the most contributing factors to online shopping Mohammad et al (2012) use a model to examine the impact of cognitive risks, facilities and return policy on attitudes to online 10 of people who have never been shopping and have experienced online shopping have differences in online shopping behavior, the two groups are strongly influenced by the factor of diversity in goods selection, and here are the factors that distinguish the two groups of online shopping objects When studying the role of beliefs in Vietnamese consumers' online shopping intention, Ho Thi Phuong Lan (2014) based on the TAM theory model (Davis, 1985) to study the factors of trust Beliefs like trust in technology, trust and belief in society, these are the factors affecting online shopping intentions Accordingly, the online suppliers of goods / services have high reliability, the proportion of consumers making more purchasing decisions The research and assessment of factors affecting the online purchase acceptance of individual customers in Hue city by Nguyen Thi Minh Tam (2014) was based on the proposed scale of the TAM model of five factors: Ease of use, usefulness, risk perception, product and company characteristics, customer experience Based on that, the author offers a number of solutions to assist businesses in stimulating customers Researching the factors influencing customers' decision to buy online voucher in Da Nang city by Nguyen Duy Phuc (2014) has adopted two research models of Xiang Yan and Shiliang Dai as the basis for the proposal Research and testing models of factors that perceive customers' benefits and risks affecting the decision to buy voucher online in Da Nang Also consider whether these factors differ from each other by gender, age, occupation, income and marital status in a customer's purchase decision for this type of service Through the author's research on customer perceptions affecting the decision to buy 11 online voucher in the city area Da Nang has overlapping and complementary components with the previous two studies, perceived benefits are also measured by five factors: price reduction; product characteristics; product choice; convenient shopping; enjoy shopping From there, the author proposes two groups of solutions: price solutions, and product solutions Ha Ngoc Thang & Nguyen Thanh Do (2016) conduct research Factors affecting online shopping intention of Vietnamese consumers: an extensive study of planned behavioral theory The confidence variables and perceived risks are added by the authors to the DTPB model to predict consumers' intention to buy online The study found that trust, perceived risk, attitudes and perceptions of controlling consumer behavior influence consumers' online shopping intention Meanwhile, the reference group did not affect the intention to buy online, but the attitudes, beliefs and awareness of behavioral control positively affected consumers' intention to buy online Perception of risk is a factor proven to reduce customers' intention to buy online A study of factors affecting customer satisfaction when shopping online in Kon Tum City by Nguyen To Uyen (2016) examines the factors from the process before, in and after buying The research results show that there are six factors: (1) Characteristics of goods, (2) Quality of information, (3) Feedback, (4) Payment methods, (5) Customer service and (6) Product quality is related to customer satisfaction online shopping In particular, commodity characteristics and information quality are the two factors that have the most impact on online satisfaction Research has shown that pre-purchase services have the potential to impact customer satisfaction Since then, the study proposes a number of solutions to 12 business administrators to adjust products and support services before, during and after the purchase to increase customer satisfaction Tran Thi Hong Hanh (2017) in the study Factors influencing online household shopping behavior are female office workers in Hanoi who choose to consider four factors that influence their household purchasing decisions Online use of female office workers in Hanoi includes: (1) Convenience; (2) Prices and brands; (3) Website responsiveness; (4) Risks when shopping online These four factors are selected by the author on the basis of inheriting, synthesizing and developing from previous studies In addition, the model also considers the influence on online shopping decisions of four demographic variables: marital status, age, job title and average income Researching the relationship between online service quality, beliefs and online shopping intention of Vu Thi Tuong Vi (2017) analyzes the impact of factors of online service quality on the belief of customer Measure the influence of trust on intentions in online shopping The study has synthesized factors: aesthetic interface, technology, financial security in online service quality affecting trust and intention of online shopping Discover the difference between a customer base on a trust relationship and an intention to shop online 1.3 The conclusions from the study review - Studies have shown a variety of factors that influence consumer intention - online shopping behavior However, these studies: (1) are focused on research in developed countries with developed infrastructure and economy Therefore, to provide an online shopping behavior model suitable for the Vietnamese market, the above studies have not been met (2) Lack of research on online 13 shopping process in the context that consumers choose between online shopping and traditional shopping in Vietnam - Studies have not yet analyzed in-depth consumer behavior, into the process of connecting between variables in the online shopping process Therefore, it is necessary to integrate more diverse from many models, other aspects of online consumer behavior research Chapter THEORETICAL BASIS AND RESEARCH MODEL 2.1 Overview of online shopping 2.1.1 E-commerce concept E-commerce is defined as the delivery of goods, services, information and payments through computer networks or other electronic devices (Turban et al., 2006) 2.1.2 Online shopping concept Inheriting and combining the previous concepts, the author generalizes the concept of online shopping as follows: Online shopping is defined as the service that consumers use electronic devices with Internet connection for shopping deals 2.2 Differences between online shopping and traditional shopping Firstly, it is the difference in "technical conditions for procurement" Second, some online retailers not accept cash payments Third, the factor of direct contact with the product Fourth, the ability to access the number of points of sale at any time between the two shopping modes 2.5 Theoretical overview of consumer behavior 2.5.1 Reasonable Action Theory (TRA) Fishbein & Ajzen (1975) designed TRA to explain the general behavior of humans TRA expands the relationship between human 14 attitudes (A) and behaviors (B) toward the intention of behavior (BI) before an action is taken 2.5.2 The theory of planned behavior (TPB) Compared to TRA, the TPB model adds behavioral control cognitive factors that influence behavioral intention In addition, the belief factor about convenience has an impact on the cognitive factor about behavior control 2.5.3 Technology Acceptance Model (TAM) The difference between TAM and TRA firstly is that TRA explains behaviors in general, while TAM predicts information technology usage behavior (Davis, 1986) TRA has a wider scope than TAM, TAM is a special case of TRA Second, in the TAM model, behavioral planning (BI) is influenced by attitude (A) and perceived usefulness (U), while behavioral prediction in TRA model is influenced by subjective attitude and standards 2.5.4 Model Buying decision making process In the field of marketing, Engel, Kollat & Blackwell (1973) extended Simon's (1978) decision-making model into a model of Consumer Buying Decision Making, consisting of five steps: (1) The demand; (2) Search for information; (3) Evaluation of alternatives; (4) Make a buying decision; (5) Post-purchase behavior 2.6 Factors affecting online shopping behavior of consumers + Group of environmental factors as technological factors; socio-cultural factors such as information overload, personal narrowing, security issues and personal information, borders between housing and work, convenient features at anytime, anywhere, limited time, ability to meet the expectations of the demand, self-service mode, a group of smart, stylish customers, 15 personalized, easy, multi-channel purchasing trend + Group of factors about personality, characteristics, personal resources to buying behavior of electronic customers + Group of factors on the source factors to the purchase behavior of electronic customers such as the cost of money, the cost of effort spent in the process of electronic purchases and the buying psychology of electronic customers 2.11 Adjust the research model in the context of research in Vietnam Research gaps need to be supplemented in this study in Vietnam: People make rational choices; The stages of consumer behavior on the Internet are consecutive sequences of behavior; When trying to shop on a new shopping channel, consumers compare new channel vs traditional shopping channels; Online shopping is considered a risky choice for most consumers; A sense of ease of use and a sense of usefulness are two natural characteristics for most consumers This assumption is the premise for the development of rational action theory TRA; Perceiving risks and comparing buying efforts, comparing search efforts brings negative feelings to most consumers; Comparing the availability of information, comparing purchasing convenience, comparing service quality, comparing purchasing efforts, and comparing search efforts is a common practice for most consumers 2.12 Research model of online shopping behavior of Vietnamese consumers The author proposed a research model consisting of eight factors (independent variables): perception of usefulness, perceived ease of use, perceived risk, comparison of information availability, 16 comparison purchasing effort, comparison of search effort, comparison of purchase convenience, comparison of service quality impacting on two factors (dependent variable) are online information search and online buying decisions for Vietnamese Chapter RESEARCH METHODS Based on the theories of online shopping and research models of online shopping behavior of Vietnamese consumers presented in chapter 2, in chapter 3, the thesis designs the research process for submission, presents analytical methods on the state of online shopping, methods of testing factors affecting online shopping behavior of Vietnamese consumers The author presents a two-stage research method: Preliminary research and formal research, and the research process of the thesis In this section, the author presents two specific research methods: qualitative and quantitative research From the results of qualitative research, the author built a scale to evaluate in detail the factors affecting online shopping behavior of Vietnamese customers Specific criteria in the research model are measured by a 5-level Likert scale with an evaluation scale from to For categorical variables such as gender, age, occupation, income,… measured by nominal or hierarchical scales The analysis method is based on three steps: verifying the reliability of the scale, analyzing the appropriateness of specific criteria for each variable in the model and analyzing the structural SEM model In this chapter, the author also clearly describes the sampling method and data collection plan, the data analysis method Research samples in three areas: Hanoi, Da Nang, and Ho Chi Minh City: The 17 number of questionnaires issued was 1.000, collecting 905 votes, but after screening and removing invalid votes, the survey results were collected Suppose only 816 valid votes are used for official analysis The size and structure of the research sample is consistent with the requirements of the study design and ensures the overall representation The research results are therefore more likely to reliably reflect the picture of the whole After conducting expert interviews and group discussions, the author has adjusted the proposed research model, the research hypotheses, specific criteria for each variable in the model, and restated the hypotheses and research theory The research model remains the same as the proposed research model, adjusting only the names of the five factors The author examines the research model and presents the research results presented in chapter Chapter RESULTS AND DISCUSSION 4.1 Descriptive results about online shopping behavior 4.1.1 Average time of Internet access / day of consumers 4.1.2 Number of consumer online purchases per year 4.1.3 Statistics combine the average time of Internet use / day and the number of online shopping 4.1.4 The products are usually purchased online 4.1.5 The online shopping channel of consumers 4.1.6 Form of payment for products and services ordered online 4.1.7 Factors consumers care about online shopping and interest in online sellers 4.1.8 Factors that consumers are most interested in when shopping online and are interested in online sellers 18 4.1.9 Differences in online shopping behavior of Vietnamese consumers compared to other countries 4.2 Test results of specific criteria for each variable 4.2.1 The reliability test results of specific criteria for each variable by Cronbach’s Alpha 4.2.2 Test results of reliability of criteria expressed by discovering factors (EFA) 4.2.3 Test results of criteria presented by positive factor analysis (CFA) 4.3 Results of testing models and research hypotheses 4.3.1 Results of testing the conformity of the research model 4.3.2 Test the research hypotheses H1 to H8 After performing research hypotheses from H1 to H8 using linear structure model (SEM), we can see: - H1: Perception of usefulness has a positive relationship with online information search behavior of Vietnamese consumers (β = 0.112; p
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