tiểu luận kinh tế lượngUSING THE RECOVERY MODEL TO ASSESS THE FACTORS AFFECTING COSMETIC CONSUMER ACTS OF STUDENTS IN FOREIGN TRADE UNIVERSITIES

FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL ECONOMICS *********** ESSAY THE FACTORS AFFECTING COSMETIC CONSUMER ACTS OF STUDENTS IN FOREIGN TRADE UNIVERSITIES Instructor: Dr Nguyen Thuy Quynh Class: KTEE301(1-1920).1_LT Name Đỗ Hoàng Khánh Linh Student’s ID 1813340033 Nguyễn Anh Thơ 1813340062 Lê Trịnh Bá Đức 1813340014 Nguyễn Ngọc Sơn 1813340058 Nguyễn Trung Kiên 1813340031 th Hanoi, December 16 , 2019 EXECUTIVE SUMMARY Our research paper evaluates and analyzes the factors affecting cosmetic consumption behavior of students in Foreign Trade University, Hanoi We have collected data from students who are still studying at the school by using a survey questionnaire then conducted regression analysis with the help of STATA software The regression results show that factors such as gender, price, income, brand and quality of the products have great influence on the money that Foreign Trade University students spent monthly for cosmetic TABLE OF CONTENTS EXECUTIVE SUMMARY TABLE OF CONTENTS TABLE OF FIGURES TABLE OF TABLES PREFACE PART THEORETICAL BASIS An overview of related theory Definitions and model of customer behavior 2.1 Consumers and the consumer market 2.2 Consumer behaviour 2.3 Model of consumer behavior Factors affecting consumer behavior 10 3.1.Factors outside the “black box” of consumer consciousness 10 3.1.1 The stimulus of Marketing 10 3.1.2 Other stimulus 10 3.2 Factors within the "black box" of consumer consciousness 11 3.2.1 Cultural factors 11 3.2.2 Social factors 11 3.3 Personal factors 12 3.3.1 Age and stage of life cycle 12 3.3.2 Occupation and economic status 12 3.3.3 Lifestyle 12 3.4 Psychological factors 13 3.4.1 Engine 13 3.4.2 Awareness 13 3.4.3 Understanding 13 PART PRACTICAL APPLICATIONS 13 Relevant economic results 13 1.1 Research on “Consumer decision-making style” by Sproles & Kendall 13 1.2 Research by Zeithaml and Bitner (1996) Research on service quality of Parasuraman (1985) Fishbein and Ajzen (1980)'s study of Theory of Reasoned Action (1986) 1.3 1.4 (TRA) 15 1.5 "Components of brand value in Vietnam's consumer goods market" model by Nguyen Dinh Tho and Nguyen Thi Mai Trang (2002) 15 Research objectives: 15 Subject and scope of the study 15 Research Methodology 16 4.1 Qualitative analysis 16 4.1.1 A number of key factors directly affecting cosmetic consumption behavior 16 4.1.2 Data description 18 Quantitative analysis 19 5.1 Selecting the Econometrics model 19 5.1.1 Conducting the model of Econometrics 19 5.1.2 Variables in the model 20 5.1.3 Analysis of relationships between variables 21 5.2 Data source 22 5.3 Expected results 22 5.4 Estimated results of regression model 23 5.4.1 Meaning of the coefficients 23 5.4.2 Regression results 25 5.4.3 Relevance of the model 26 5.4.4 Testing the regression coefficient 26 5.4.5 Verification of model conformance 27 5.5 Test model defects and how to fix them 27 5.5.1 Test of omitted variables 27 5.5.2 Test the normal distribution of noise 28 5.5.3 Multicollinearity test 29 5.5.4 Variance of error of change 30 PART SOLUTIONS 32 CONCLUSION 33 REFERENCES 34 APPENDIX 35 TABLE OF FIGURES Figure 1: Summary statistics table of overall data 19 Figure 2: Coefficient correlation matrix 21 Figure 3: Estimating regression model 23 Figure 5: Residual graph - Test the normal distribution of the sample 28 Figure 6: Skewness/ Kurtoris tests 29 Figure 7: Multi-collinear test – VIF 30 Figure 8: White Test 31 TABLE OF TABLES Table 1: Consumer behavior’s model by Philip Kotler (2005) Table 2: Table of regression results 25 Table 3: Survey data on factors affecting cosmetic consumption behavior of Foreign Trade University students 35 Table 4: Group members list 51 Table 5: Evaluation of members 51 PREFACE Society has always appreciated human qualities, personality is always very important, but nothing is more perfect than a person who has both good characteristics and a beautiful face Therefore, since thousands of years before, our ancestors had already found ways to beautify themselves such as staining teeth, eating betel nut to have red lips Today, the economy is growing robustly, helping to improve the living standards, income, living conditions Trade between countries is expanding and facilitating the integration and absorption of new cultures, making the use of cosmetics and makeup become increasingly simple and popular, becoming an indispensable part of the lives of many people, especially students Beauty will help students gain confidence in communicating with the other people both in working environment as well as in basic daily life Beauty is also about showing respect to others, helping students to harmonize better with the society which loves perfection Moreover, with a good appearance, students may be offered many chances or amazing opportunities in the future To have a thorough understanding of the student's cosmetic consumption behavior, our team chose the topic: "USING THE RECOVERY MODEL TO ASSESS THE FACTORS AFFECTING COSMETIC CONSUMER ACTS OF STUDENTS IN FOREIGN TRADE UNIVERSITIES" The essay aims to evaluate the factors affecting the cosmetic consumption behavior of Foreign Trade University students, from which we can have an objective view and propose appropriate solutions to develop the cosmetic industry in Vietnam Our team is very grateful that (Ms Quynh) has assisted and answered questions during the implementation of our project Despite our best efforts, we still have many limitations about academic knowledge and the data collection methods, therefore it is inevitable that there are some flaws in our essay We look forward to receiving your comments and suggestions to improve our essay! We sincerely thank you! PART THEORETICAL BASIS An overview of related theory A thorough research into customer behavior is an important stage to identify the needs of customers, helping businesses choose the right customer segment, positioning the right product / brand in the market and having the effective strategies and plans in Marketing as well as business production In addition, conducting research on post-purchase customer behaviour has impact on the effectiveness of customer retention strategies There have been many researchers around the world who study and research on this issue One that can be named is the detailed and accessible Philip Kotler's model of consumer behavior research Therefore, we decided to choose Philip Kotler's theory of consumer behavior According to Philip Kotler (2001), research on consumer behavior is quite complicated, because there are many variables involved and their tendency is to interact and influence each other The marketing and environmental factors come into the consciousness of the buyer The characteristics and decision-making process of buyers will lead to the final decisions Now we are going to consider how consumer behavior patterns, the factors that influence consumer buying behavior and the decision-making process are made? Definitions and model of customer behavior 2.1 Consumers and the consumer market Consumers are people who buy and consume products, services to satisfy their individual needs and desires Consumers can be individuals, households or groups of people The consumer market includes all individuals, households and groups of people and the potential to buy goods and services for the purpose of satisfying individual needs 2.2 Consumer behaviour There are many definitions of consumer behavior given and according to the researchers, this term can be understood that: In accordance to Hawkins and his partners: “Consumer behavior is the study of individuals, groups or organizations and the processes they select, use, preserve and dispose of products, services, experiences or ideas to satisfy the needs and impacts of these processes on consumers and society.” From the perspective of the behavioral science, in a nutshell, "Consumer behavior is a consumer process in which they form a response to a need." Consumer behavior is dynamic and interactive because it is influenced by factors from the outside environment and has an impact on the environment At the same time, there are four types of consumer behavior: normal (habitual) buying behavior, complex buying behavior, buying behavior seeking diversity and purchasing behavior that ensures harmony 2.3 Model of consumer behavior In order to understand consumers' desires and needs, we must start from their behavioral models Researching consumer behavior models helps businesses realize the different reactions of customers on each product such as quality, price, advertising programs, promotions, models, thereby understanding the needs and tastes of each customer to choose effective business strategies and enhance competitiveness Table 1: Consumer behavior’s model by Philip Kotler (2005) Stimuli Mar keting mix: Product Price Place Promotion Enviro nmental: Economic Political Cultural Technological Buyer’s black box Cons Buyer’s responses D Purchase umer ecisioncharacteristics making process ⇨ : - Product ⇨ - Brand - Source Purchase amount Purchase timing Hawkins, Mothersbaugh, (2010), Consumer Behavior Building marketing strategy, 11th edition, Irwin/McGraw Hill The model depicts the factors stimulating on consumers' black boxes and generates reactions The model consists of three basic factors: stimulus, buyer’s black box and response of buyer Marketing factors (products, prices, place, promotion) and other factors (economic, technological, political, cultural) make impacts on the buyer's black box (perceive issues, seek information, assess, decide buying behavior) They cause the necessary response from the buyer and result in a definite purchase decision (product type, brand, quantity, time of purchase and place of purchase) In particular, each factor in the model is as follows: Stimulating factors: are all individuals, forces outside consumers that may influence consumers' behavior, including stimulating factors of marketing and other stimuli Buyer’s black box is the thinking, perception, judgment of consumers Buyer’s response: consumer reactions revealed in the exchange process that we can observe such as: SP choice, brand, 51 52 400 500 3500 3500 1 1 1 1 20 21 14 16 53 200 2500 1 19 13 0,5 54 200 2000 1 20 14 55 300 2500 0 19 13 0,5 56 350 2700 1 1 21 15 57 350 2500 1 1 20 14 58 500 2500 1 20 14 59 300 2000 0 20 14 60 250 2000 1 20 14 61 500 2000 1 1 20 14 0,5 62 750 3000 1 1 21 15 63 200 2800 1 0 20 14 64 500 2500 1 1 19 13 1,5 65 150 2700 0 0 20 14 0,5 66 100 1000 0 19 13 67 750 2600 1 1 20 14 68 200 1700 0 0 19 13 69 500 2300 1 19 13 1,5 70 400 2500 1 1 20 14 71 250 3000 0 1 21 15 72 650 3300 1 1 22 16 0,25 73 450 2000 1 19 13 0,75 74 200 2800 0 0 20 14 75 410 2900 1 21 15 0,5 76 250 3400 1 1 22 16 77 300 3500 1 1 22 16 78 600 2500 1 1 20 14 37 79 80 170 600 2000 3000 1 0 19 20 13 14 0,25 1,75 81 900 3600 1 1 22 16 2,5 82 2700 0 0 20 14 83 360 2500 0 1 19 13 0,5 84 650 3000 1 1 21 15 85 600 3500 1 1 22 16 4,5 86 575 3200 1 1 21 15 87 450 2000 1 20 14 0,5 88 260 2500 0 1 20 14 0,25 89 270 3600 1 1 22 16 2,5 90 200 3200 1 0 20 14 91 500 2700 1 19 13 1,25 92 280 2400 0 19 13 0,5 93 400 2500 0 20 14 94 3000 0 21 15 95 840 3100 1 1 22 16 96 650 2500 1 1 20 14 1,5 97 300 2900 0 21 15 98 450 3500 1 1 22 16 0,5 99 400 2400 1 20 14 1,5 100 430 2100 0 1 19 13 0,75 101 700 3700 1 1 22 16 3,5 102 500 3000 1 1 21 15 0,5 103 400 2000 1 19 13 104 200 2500 0 20 14 0,25 105 450 2400 1 1 19 13 0,25 106 400 2700 0 20 14 1,25 38 107 300 108 300 3000 3200 1 1 1 0 21 21 15 15 0,5 109 650 4000 1 1 22 16 4,5 110 375 4200 1 1 22 16 111 550 4100 1 1 21 15 112 280 3500 1 1 21 15 0,75 113 2500 0 0 20 14 114 430 3000 1 20 14 115 500 3200 1 1 19 13 116 575 4000 1 1 22 16 117 950 4500 1 1 22 16 118 700 3200 1 21 15 0,5 119 240 3000 1 21 15 0,25 120 600 4500 1 1 20 14 121 700 6000 1 1 21 15 122 700 4000 1 1 19 13 123 1000 7000 1 20 14 124 2000 0 21 15 125 500 3000 1 1 22 16 126 600 4000 1 1 22 16 127 500 3600 1 20 14 128 300 6500 1 1 22 16 129 200 2500 0 19 13 130 300 3000 1 19 13 131 250 2500 0 19 13 132 250 1200 1 0 19 13 133 700 4000 1 1 19 13 134 1200 7000 1 1 20 14 39 135 300 136 3000 2500 0 1 20 22 14 16 137 250 3500 1 1 21 15 138 800 5000 1 1 19 13 139 900 4000 1 20 14 140 650 3000 1 20 14 141 300 3900 1 1 20 14 142 300 4000 1 1 20 14 143 2700 0 0 20 14 144 400 7000 1 1 19 13 145 560 2000 1 1 19 13 146 200 1700 0 19 13 147 850 2800 1 1 19 13 148 550 3900 1 1 20 14 149 200 1500 0 20 14 150 200 2190 0 20 14 151 300 3790 1 19 13 152 700 2460 1 22 16 153 1000 9640 1 1 21 15 154 450 3800 1 1 20 14 155 2000 9650 1 1 20 14 156 680 2545 1 1 21 15 157 200 1750 0 19 13 158 3500 0 0 22 16 159 2150 0 0 22 16 160 3500 0 0 20 14 161 100 3700 1 0 22 16 162 250 6580 1 0 22 16 40 163 500 164 650 3900 6500 1 1 1 1 19 19 13 13 1 165 300 4130 1 1 20 14 166 2000 6670 1 1 20 14 167 100 3600 0 20 14 168 1850 0 0 20 14 169 1540 0 0 21 15 170 400 2260 1 1 21 15 171 150 3970 1 0 21 15 172 350 1355 1 20 14 173 200 1980 1 0 20 14 174 200 4450 0 19 13 175 1050 5530 1 1 19 13 176 300 2300 1 1 19 13 177 300 2450 1 19 13 178 800 8650 1 1 20 14 179 250 1500 1 20 14 180 600 6500 1 1 20 14 181 550 3700 1 19 13 182 650 6500 1 1 21 15 183 750 3500 1 1 20 14 0,75 184 450 2000 1 1 19 13 0,25 185 900 3200 1 1 21 15 0,5 186 3000 0 0 22 16 0,25 187 200 2000 1 18 12 1,25 188 750 3600 1 19 13 189 200 3000 1 19 13 2,5 190 350 1500 0 19 13 41 191 500 192 200 2000 3900 1 1 19 20 13 14 1,5 193 600 2500 1 1 21 15 1,75 194 600 2400 1 21 15 0,25 195 700 3600 1 1 19 13 196 350 2800 1 19 13 0,5 197 550 3500 1 19 13 0,75 198 200 3600 1 0 20 14 199 250 3500 1 21 15 1,5 200 2000 0 0 22 16 0,75 201 100 2200 0 0 21 15 202 150 1800 0 0 20 14 203 750 2600 1 1 20 14 204 600 3800 1 1 19 13 0,5 205 950 4700 1 1 22 16 206 650 3500 1 1 22 16 0,8 207 340 2600 1 0 21 15 208 250 2600 0 19 13 209 400 2300 1 19 13 2,5 210 700 2400 1 1 20 14 211 600 3500 1 21 15 212 290 2800 1 20 14 213 2100 0 0 19 13 0,25 214 200 1600 0 19 13 215 650 2850 1 1 19 13 216 350 3000 1 19 13 217 2800 0 21 15 218 100 3200 0 22 16 0,5 42 219 600 220 800 2600 2900 0 1 1 22 22 16 16 0,8 221 460 4000 1 22 16 222 600 5200 1 1 21 15 223 750 3600 1 1 21 15 2,5 224 600 2400 1 1 19 13 225 150 2500 0 0 19 13 226 800 1500 1 20 14 227 200 3800 1 19 13 228 3400 0 22 16 0,5 229 2960 1 0 22 16 230 2900 0 22 16 231 250 3000 1 21 15 232 400 2000 0 1 20 14 233 900 6000 1 1 20 14 234 250 3600 1 19 13 0,5 235 350 3300 1 19 13 236 650 2600 1 1 19 13 0,8 237 200 3800 1 0 20 14 238 400 2800 1 1 21 15 239 500 3200 1 19 13 2,5 240 550 2600 1 22 16 241 300 3000 1 1 19 13 0,25 242 450 2500 1 1 20 14 0,5 243 500 2300 1 1 21 15 244 430 3290 1 1 21 15 1,25 245 650 2380 1 1 21 14 246 290 2450 1 0 21 15 2,5 43 247 450 248 360 2500 3100 1 0 1 1 21 22 15 16 249 560 2400 1 21 14 1,25 250 950 3000 1 1 21 15 1,75 251 500 3200 1 22 16 0,25 252 365 2550 1 20 14 253 870 3650 1 1 20 14 0,5 254 750 3550 1 1 21 15 0,75 255 950 4100 1 1 20 13 256 370 2650 1 20 14 1,25 257 1000 4200 1 21 15 1,5 258 685 1900 1 22 16 1,75 259 770 2100 1 22 16 2,25 260 630 2200 1 1 21 15 2,5 261 440 2200 1 1 20 14 262 590 6100 1 22 16 2,75 263 338 3200 1 20 14 2,5 264 600 3100 1 1 22 16 265 400 2200 1 22 16 266 450 2600 1 20 14 1,5 267 500 3200 1 1 20 14 268 720 3200 1 1 19 13 1,75 269 420 3650 1 1 20 14 0,5 270 220 2100 0 21 15 0,25 271 190 2650 0 21 15 272 350 2200 1 1 22 16 273 765 3650 1 21 15 1,25 274 320 2650 0 20 14 44 275 460 276 660 3100 3650 1 1 1 1 22 19 16 13 2,75 277 360 2800 1 1 20 13 278 300 2650 1 20 14 1,5 279 300 3100 1 21 15 0,25 280 360 2850 1 21 15 0,75 281 850 3650 1 21 15 0,75 282 740 2200 1 19 13 283 800 3400 1 1 20 14 284 300 1650 1 21 15 2,25 285 650 1650 1 1 20 14 2,5 286 750 4650 1 1 19 13 287 790 3550 0 1 20 14 288 680 3550 1 1 21 15 1,5 289 420 2650 1 1 22 15 1,75 290 350 2200 0 1 22 16 291 680 2200 1 20 14 0,25 292 250 2650 1 21 15 293 700 3000 1 22 16 1,25 294 350 2100 1 1 22 16 1,5 295 620 3250 1 1 21 15 0,25 296 320 2300 1 20 14 297 190 2350 0 21 15 0,25 298 430 2200 1 1 21 15 299 620 2650 1 1 21 15 1,5 300 600 2200 1 21 15 45 46 Appendix 2: Steps to run STATA Create file Command: log using “/Users/linhishere/Desktop/FTU/STATA smcl" Import Data: Command: import excel "“/Users/linhishere/Desktop/FTU/Data.xls", sheet ("Trang tính1") firstrow Create lnspend Variables Command: gen lnspend=ln(spend) Statistical Description Command: sum lnspend wage male brands price quality Result: Coefficient correlation matrix Command: corr lnspend wage male brands price quality Result: Estimating the regression model Command: reg lnspend wage male brands price quality 47 Result: Missed variables test Command: estat ovtest Result: Normal distribution of noise test Take the residual values in the model Command: predict res, res 48 Residual graph Command: histogram res, normal Density 151 Result: -1 -.5 Residuals Skewness/Kurtosis tests Command: ssc install jb jb res Result: 49 Multi-collinear detection test Command: estat vif Result: The variance of error of change test Command: estat imtest, white Result: Save file Command: save "User/linhishere/Desktop/FTU/STATA.dta" file User/linhishere/Desktop/KTL/STATA.smcl saved 50 Appendix 3: Group members Table 2: Group members list No Full name Đỗ Hoàng Student ID Email 1813340033 linhdo666@gmail Khánh Linh Nguyễn Anh com 1813340062 Tho.nguyenanh.25 Thơ 12@gmail.com Lê Trịnh Bá Đức Scope of work - Run STATA - Quantitative Analysis - Testing - Model Explaination 1813340014 ducle1910@gmail - Conduct Survey and com collect data - Preface - Aggregate Nguyễn Ngọc 1813340058 Son611ftuk57@g Sơn mail.com Nguyễn Trung 1813340031 kien26082000@g Kiên mail.com information - Practical Application - Solution suggestions - Theoretical basis - Relevant study results Table 3: Evaluation of members No Full name Student ID Average Score Đỗ Hoàng Khánh Linh 1813340033 10 Nguyễn Anh Thơ 1813340062 10 Lê Trịnh Bá Đức 1813340014 10 Nguyễn Ngọc Sơn 1813340058 10 Nguyễn Trung Kiên 1813340031 10 51 ... topic: "USING THE RECOVERY MODEL TO ASSESS THE FACTORS AFFECTING COSMETIC CONSUMER ACTS OF STUDENTS IN FOREIGN TRADE UNIVERSITIES" The essay aims to evaluate the factors affecting the cosmetic consumption... 3.2 Factors within the "black box" of consumer consciousness 3.2.1 Cultural factors Cultural factors have the most profound influence on consumer behavior Cultural factors that influence consumer. .. consumer behavior of customers • Identify the main factors influencing cosmetic consumption behavior of Foreign Trade University students in Hanoi campus Determine the degree of the opposite or