Understanding consumer returning decision with the mediation of willingness to pay a case study of craft beer restaurants in vietnam

Understanding Consumer Returning Decision with the Mediation of Willingness to Pay: A case study of Craftbeer Restaurants in Vietnam Huyen Pham Tien Nguyen International University, Vietnam National University HCMC, Vietnam Abstract This research is aimed to explore and investigate the point of view of Vietnamese craft beer consumers about what would make them willing to pay and return to a craft beer outlet In a growing consumer market with high demand, there are also a lot of competition In such harsh condition, retaining already existed customer relationship becomes crucial for businesses The findings showed that Access, Unique seeking, Hedonic, Social influence, and Willingness to pay have positive and direct effect on Returning decision Moreover, Access, Local connection, Unique seeking, Hedonic, and Social influence have indirect effect on Returning decision through the mediation of Willingness to pay The relationship between these factors with consumer intention to return was examined by partial least squares technique Within the context of Vietnamese craft beer restaurants, this research’s findings hopefully could provide customer insight for the Food and Beverage sectors as well as provide recommendations for craft beer restaurants to attract more customer as well as keep them repeatedly coming Keyword: Craft beer restaurant; willingness to pay; return intention JEL Code: L83 750 Introduction Vietnamese hospitality and tourism industry has developed rapidly in term of both size and reputation in the region as well as the global market Based on the statistics from the Ministry of Culture, Sports, and Tourism in 2017, Vietnam welcomed 12 million outbound tourists and 62 million inbound tourists This is a big year for our country tourism because the revenue from this industry was 500,000 billion VND with the growth rate at an astonishing 27.5 percent (General Statistics Office of Vietnam, 2018) Food and beverage (F&B) is a major field of Hospitality and Tourism industry and contribute up to 70 percent of the sector’s revenue, made up by restaurant and F&B related services On October 11th, 2017 Vietnam Cuisine Culture Association (VCCA) (Pham Nguyen, 2017) VCCA currently has over 300 members, including researchers, artisans, businessmen and business organizations operating in the cuisine and tourism sector In which 33 has been selected as executive board members with Mr Ky Nguyen Quoc – General manager of Viettravel as the chairman of the 20172022 tenure (An Nhien, 2017) The association’s mission is expected to contribute greatly to the tourism industry due to the fact that 70 percent of the sector’s revenue is made up by restaurant and F&B related services When asked about the target of VCCA, Mr Tuan Nguyen Van, Director General of Vietnam National Administration of Tourism, answered that developing cuisine culture into an outstanding tourism product of Vietnam is really important, introducing Vietnamese food and drink to international visitors is one of the main responsibility of the associations (Le, 2017) The establishment of VCCA show the governmental strategy that focus on the development of F&B services as the core for the tourism and hospitality industry in Vietnam, building the national brand of Vietnam as a destination with the special food culture alongside with the nature beauty This strategy was also suggested by the father of modern marketing Phillip Kottler when he visited Vietnam in 2007, which he stated that Vietnam should find a national brand and ‘kitchen of the world’ could be suitable (Tuong Vi, 2011) More and more Food and Beverage business has been opened and developed rapidly taking up many different segments of the market from the street food to high standard fine-dining restaurants, bars and wineries… With the great growing pace of the service industry as well as the growing in the demand of customer, Vietnamese Food and Beverage market is booming Hence there are many potential opportunities for service operators to take Vietnamese nowadays spend more time to consume out of their home than before, there an increasing trend in eating out Compare to the quarter of 2016, 2017 has witnessed the raise of 9% in term of turn of visitors and an annually visit per capita raised from 144 to 147 turns (Decision lab, 2017), the data was collected through the main seven channel of the F&B services market such as fine dining, fast casual, canteen, street food, hotel, alcoholic places and convenience stores Craft beer in Vietnam has been trending in recent years, even caught headwind on international media such as Wall Street Journal Hence attracting investors to pour their capital in to the new potential market (Tran, 2016) This could be witnessed by naked eyes as there are many craft beer outlets and brewers could be found in urban areas, in Ho Chi Minh city (Bia Craft Artisan ales, Pasture Street brewing co, Tê Tê brewing co, Heart of Darkness, Platinum Premium beverages, etc), Nha Trang (26 beer food fun, Lousiane brewhouse, etc), Ha Noi (iBerio Craft Beer Station, Peachy Craft Beer Pub, Craft Beer Pub, etc) and Da Nang (7 Bridges Brewing tap room, Fatfish restaurant and bar lounge, etc) All the dynamic movements in the Craft Beer sectors are due to the facts that consumer demand is increasing rapidly in the past decade In 2008, Vietnam ranked th in term of beer consumption in Asia, and in 2016, shockingly ranked rd only behind the rich Japan and China with over billion population (Tran, 2017) In 2017 alone, Vietnamese beer drinker consumed billion liters of beer and per capita that is 43 liters and these number is not going to stop there According to forecast of Vietnam alcoholic beverage association, in 751 2035 the total consumption shall exceed 5.5 billion liters and 52 liters per capita There is great potential for any business to develop and catch the chance from this opportunity in Vietnam beer market (Nguyen, 2018) According to an article published by Bloomberg in 2017, Vietnamese beer market expected a huge rising in consumption in the years period from 2016 to 2021 And in the mentioned period, the market would see the competition between domestic and international suppliers (Luu, Boudreau and Mai, 2017) The Vietnamese beer consumer market growing at astonishing rate following by great potential opportunities for investors and service providers to take Many opportunities also mean that there would be also challenges for the businesses as competition also increase In a market with so many competitor, retaining customer is vital for all business (Haywood, 1998) In this research, the target is to investigate and understand the consumer point of view about the craft beer services in Vietnam What factors and how they affect consumer choice of craft beer outlets The result of this research is expected to provide guideline and recommendation for the Craft Beer restaurants, bar and pub operators to improve their services to attract new customer as well retain the old one In this research, the aim is to identify the factors that influence craft beer consumer decision to return to an outlet Hence the research is designed to fulfil the following objectives: To identify the factors that influence craft beer drinker willingness to pay To identify the factors that influence craft beer drinker returning decision To give recommendation to already existed craft beer outlets as well as for investors who wish to enter the market Literature review Craft-beer restaurant There are many definitions about craft beer outlet, one definition claimed by Acitelli, T and Magee, T (2017) that explain briefly about craft beer producers: Craft beer outlets include smalls, independent owned businesses that stick to the traditional beer brewing techniques and recipes, ingredients And those are distanced from the larger regional and national producers as they often used nontraditional or industrial techniques and recipes, produce and distribute their product on a much vaster scale in term of quantity Craft beer services providers were proven to have some competitive advantages in attracting and retaining customer loyalty in comparison with the industrial and commercial producers in the sector food and beverage (Murray and O’ Neill, 2012) Craft beer businesses are able to contribute to their local region through many ways such as promoting agriculture development, entrepreneurship, etc (Kline and Murray, 2015) Consumer Returning Decision For many years, researchers have made attempt to understanding customer loyalty which plays a vital role in business One of the most obvious consequence of consumer loyalty, which this paper is focus on is the Returning Decision of consumer or in other word the repeat patronage Repeat patronage could be explained as ongoing exchange through multiple economic transactions in e output (Christopher et al 2004) Except for high traffic areas where ‘one-time only’ visits are vital, repeat patronage is the back bone of all business (Haywood, 1998) It is crucial for service providers to retain already existing customers as serving customers that are familiar which the service is cheaper than attract new ones (Reichheld and Sasser, 1990), also the existing customers usually visit frequently and broaden their base of purchase over time Alongside with the value that come from the repeat consumers, the repeat patronage also leads to the favorable word of mouth from customers (Halstead and Page, 1992) and help to recruit new customers (Nelson et al, 2010) As 752 mentioned above, in a market with lots of competitors, finding a new customer to attract is not only difficult but also sometimes be really expensive Willingness to Pay Consumer Willingness to Pay (WTP) also being studied for decades alongside with customer loyalty WTP could be defined as the maximum amount a customer would trade for a product or services (Horowitz and McConnell, 2003) Studies often refer WTP as a self-motivated willingness to purchase a specific product in with a given price (Taylor and DiPietro, 2017; Foster et al., 1997) This factor measure of how much an individual would like to trade off in term of currency to acquire a product or to use a service WTP also had been assessed base on the price interval assigned to a product or service in term of percentage or the actual amount of dollar required (Remar et al, 2016) In the case of Craft-beer, most of which are crafted locally and sell directly to the consumer, WTP tend to be increase as the consumers are able to purchase directly from the producer (Adam and Salois, 2010; Thilmary et al., 2008) WTP also allow the service provider to know whether they are meeting the consumer expectation, hence predict the revenue they would get from selling to the customer in later visits (Taylor and DiPietro, 2017) Netemeyer et al (2004) claimed that consumer Willingness to Pay is one of the strongest predictors of consumer loyalty toward a brand, hence predict repeat patronage as well Willingness to pay was previously identified as an important component of customer loyalty (Zeithaml et al, 1996) H2.6 Willingness to Pay directly affect Returning Decision Factor affecting WTP and Returning Decision Access Access can be defined as a concept presenting the fitting degree between the client (customers) and the system (service providers) (Pechansky & Thomas, 1981) Also according to the mentioned research, access could be divided into smaller components such as: Availability (Presenting relationship between the volume and type of service offered by the providers and the actual volume and type of service needed by the customers), Accessibility (The location of the supply and the location of the customers, including times, transportation resources of the clients), Accommodation (Presenting the organizing of resources to accept the clients and in return the clients perception of the appropriateness of the organizing of resources), Affordability ( The relationship between the cost of service and the income of the client) and finally Acceptability (The clients’ attitude toward the service providers) Access could also be determined by the physical location, operating hours, reservation system via online, phone or in person (Meuter et al, 2000; Seider et al., 2000) Brown (1989) describe access into five dimensions: time (is it convenient for the consumers), place (location of the outlet), acquisition, use and execution Murray and Kline (2015) in their study about the brand loyalty of craft beer consumers in North Carolina, USA stated that access refers to the accessibility to the product and the product distributors by measuring consumers’ ability to visit and purchase craft beer In the finding of Murray and Kline (2015), access have also been found to be the second highest factor that affect Murray and Kline (2015), consumers’ loyalty toward a brewery only after the customer satisfaction Another study in the field of shopping and purchase behaviors also revealed that access play an important role in influencing consumers’ loyalty behaviors such as visit frequency and the amount of money spent (Moeller et al, 2009) Overall convenience of the service has been reported to influence customers satisfaction and positively related to repeat visit and spending (Seiders et al, 2005) This implies that access has significant impact on the customer decision to return to a place for using services 753 In this paper, access is focus on how convenient consumers feel about going to the craft beer restaurant to use product and service H1.1 Access directly affect Willingness to Pay H2.1 Access directly affect Returning Decision H3.1 Access indirectly affect Returning Decision via its effect on Willingness to Pay Connection to local community In 1996, Shortridge introduce the concept of Neolocalism which could be understood as deliberate seeking out and attachment to the local community A study carried out by Flack in 1997 found out that there was an increasing desire for local experience of beer consumers and lead to the wave of creating a sense of place by beer producers in the USA This local identity seeking had been used in other food product since long ago, there are many food products that could be identify simply by their place of production such as cheese, fruit, spices, etc In the case of alcoholic beverages, the origin of the product is one of the most important factors that affect consumer choice, there are many examples could be listed: for liquors we have London dry gin from England, Scotch whiskey from Scotland, Cognac brandy from France, or for wines such as Sherry from Spain, Bordeaux or Champagne from France For beer as in this research, there are famous geographic location for brewing beer such as Belgium, Bavaria of Germany, Bohemia from Czech Republic, etc In the U.S this factor drove consumer decision to visit craft beer outlet (Schnell and Resse, 2003) Local connection also affects consumer WTP by making them feel they contribute to the society by promoting local culture and tradition (Brehm et al, 2004) and bring social benefits (Perdue et al, 1996) Most of craft beer is locally crafted, this increase customer WTP as they are purchasing from the direct producer and contribute to their local community (Adam and Salois, 2010) Flack (1997) in his study, suggested that one reason why a drinker drink the local brewed beer is the sense of his city’s pride In the mentioned research of Flack, he also pointed out that some visitors to the region also come seek for the local flavor at the brew pubs and restaurants It was proven that WTP tend to be as twice as much for locally produced when the shoppers shopped with the producers instead of at a grocery store (Darby et al, 2008) Campbell and his colleagues (2014) also found that WTP tends to be positively related with the origin of the food when they are locally produced H1.2 Local connection directly affect Willingness to Pay H2.2 Local connection directly affect Returning Decision H3.2 Local connection affect Returning Decision via its effect on Willingness to Pay Unique seeking The consumer desire for unique consumer product or need for uniqueness for short is a concept which state that consumers seek for products that are rare and also create a unique self or social image (Ruvio et al, 2008) This concept has been studied in several fields such as marketing, psychology and sociology (Oh et al, 2007) In the case of beer, craft beer outlet is one way for drinkers to break away from common industrial beer and this have been used to see if unique beer is favored by consumer (Murray and Kline, 2015) Customer desire for unique consumer product or Unique seeking has been proven by previous researchers as one of the most important affect brand loyalty, hence predict the return of consumer to a service provider (Murray and Kline, 2015) Mitchell and Orwig (2002) in their research found that the customer demand for unique product is one of the most significant factor drove the consumer to craft beer restaurants, bars and pubs In another paper, the researchers proved that in an experience economy the high-quality product and services are no longer be used to differentiate consumer choice, instead, the uniqueness and variety are the main factors that attract customers and make them spend money (Oh et al, 2007) 754 The Unique aspect of the craft beer outlets also include that they offer a wide range of beer choices to offer the consumers In his research, Thompson (1996) claimed that consumers would love to see a larger set of choices Another research claimed that the uniqueness and the variety of choices attract customers and encourage to pay in the business of wine, another alcoholic drink (Olsen et al, 2015).People are often encouraged to try new things by their motivation (Kraftchick et al, 2014) which lead to the increased in amount craft beer drinkers as breweries offer unique and large variety of beers H1.3 Unique seeking directly affect Willingness to Pay H2.3 Unique seeking directly affect Returning Decision H3.3 Unique seeking affect Returning Decision via its effect on Willingness to Pay Hedonic Hedonic could be defined as the utility derived from feelings or affective states, such as pleasure, fun and entertainment acquire through consumer experience (Wang and Fesenmaier, 2004) Another definition of hedonic stated that those facets of behavior that relate to multisensory, fantasy and emotive from the consumption (Hirschman and Holbrook, 1982) These explanations are all leading to the conclusion that in the consumer view of a service providers, there is a part that related to the consumer feeling of fun and entertainments Bruwer and Alant (2009) found that the main motivation for consumer to come to tasting room were related to pleasure seeking, self-gratifying nature (hedonic) which could also be found at craft beer outlet (Murray and Kline, 2015) This implied that the desire for entertainment of the consumer could be an influencer that drive the consumer to return to an outlet to seek again, for the entertainment that they have found the last time they visited Holbrook and Hirschman (1982) in their paper suggested that the consumption is mainly driven by the fun, amusement the consumer may find when using a product or service This indicated that the fun and amusement of using a product would influence the consumer decision to pay for the product or not H1.4 Unique seeking directly affect Willingness to Pay H2.4 Unique seeking directly affect Returning Decision H3.4 Unique seeking affect Returning Decision via its effect on Willingness to Pay Social influence Another motivation for consumer to visit craft beer outlets found in the U.S is the influence of subjective norm which also known as social influence This could be defined as individuals’ belief regarding what others think that one should or should not (Ajzen, 1991) This related to one’s feeling of belonging to their surrounding society, as people tends to be affected by what the others Spark (2007), proved that between social influence is directly related to the wine consumer decision to pay a visit to wine producing region Studies previously conducted in the field of another alcoholic beverage that is wine show the direct relation between social influence and the consumer individual intention to purchase wine (Sparks, 2007; Van zanten, 2005) Taylor and DiPietro (2017), claimed that Subjective Norm or Social Influence is a significant predictor of customer repeat patronage to Craft beer breweries in North Virginia, USA H1.5 Social Influence directly affect Willingness to Pay H2.5 Social Influence directly affect Returning Decision H3.5 Social Influence affect Returning Decision via its effect on Willingness to Pay 755 758 In this test, all the squares root of AVEs are greater than the correlation among variables The result means that all of the latent variables are qualified and are suitable for further analysis in the research All of the results are shown in Table Table Discrimination Validity Access Access Hedonic Local Return Social Unique WTP 0.799062 0.5672 0.3807 0.5747 0.4309 0.5976 0.4994 Hypothesis testing Factors affect Willingness to Pay In this section, the researcher examined the level of affect the independent variables have on the mediating variable, Willingness to Pay In the analysis result, the R2 value or coefficient determination is 0.452 or 45.2 percent, which indicate that the independent variables are able to describe 45.2 percent out of 100 percent the variance of Willingness to Pay The remaining 54.8 percent require further research with other factors to fully understand consumer Willingness to Pay Table Direct effects on WTP Hypothesis Path H1.1 Access -> Will H1.2 Local Connecti H1.3 Unique Seekin H1.4 Hedonic -> Wi H1.5 Social Influenc * p < 0.1 After hypothesis testing for Willingness to Pay, the result draws out the conclusion about the relationship of WTP with the independent variables that affect it There are four factors that significantly affect WTP which are Access, Local Connection, Unique Seeking and Hedonic In other word, changes of these factors would lead to parallel changes in WTP through their path coefficient, hence Hedonic has the strongest influence with the path coefficient equals 0.276, following by Unique seeking with β = 0.160, Local Connection (β = 0.155) and Access (β = 0.144) Social Influence was proved to have insignificant impact on WTP, hence hypothesis H1.5 is rejected 759 Factors affect Returning Decision Table Direct effect on Returning Decision Hypothesis H2.1 H2.2 H2.3 H2.4 H2.5 H2.6 * p < 0.1 There were five factors directly and positively affect Returning Decision including Willingness to Pay (β = 0.363), Hedonic (β = 0.201), Unique seeking (β = 0.146), Access (β = 0.109), and Social influence (β = 0.101) Table Indirect effects on Returning Decision Hypothesis H3.1 H3.2 H3.3 H3.4 H3.5 * p < 0.1 Using the significant level of 0.05 for the T-statistic test, the result in Table above show that there are four factors indirectly affect Returning Decision via the mediators WTP Social influence shows significant effect on Returning Decision through WTP with the significant level of 0.1 as T value reached 1.711 The other four variables all have significant indirect effect on Returning Decision The strongest influencer is Hedonic with coefficient equals 0.1, follow up by Unique seeking with β = 0.058, Local connection with β = 0.056 and finally Access with β = 0.052 Table Total effect on Returning Decision Variable Access Local connection Unique seeking Hedonic Social influence* Willingness to Pay * p < 0.1 760 Table above shows the significant effect of all the variables proposed in this research model Among the independent variables, Hedonic is the strongest predictor of Returning Decision with the coefficient at 0.301 nearly reaching the coefficient of the mediator WTP The second strongest influencer is Unique Seeking, with the total coefficient reaching 0.204 The third one is Access with 0.161 coefficient The factor Local Connection has been proven to have no significant direct effect on Returning Decision, which result in this variable only indirectly affect through its effect on WTP with the coefficient at 0.056 The last independent variable, Social Influence was proven to have significant effect on Returning Decision at the significant level of 0.1, both direct and indirect with coefficient at 0.147 As the mediator variable, Willingness to Pay has strong influence on Returning Decision The effect of WTP is contributed by the independent variables that influence WTP itself, hence creating indirect impact on Returning Decision Figure PLS results Conclusion and Recommendations According to the result of this study, Willingness to Pay could be predicted through five factors which are Access, Local Connection, Unique Seeking, Hedonic and Social Influence In these factors, Social Influence and Access was found to be the two weakest predictors of them This could show that the craft beer consumer willingness to pay for a beer is mainly driven by the internal desire of the consumer rather than the surrounding environment influence As it was proven that the entertainment, fun relax and uniqueness (Hedonic and Unique Seeking) of the craft beer attract consumer most In conclusion, craft beer customers tend to purchase following their feeling when using the services In the context of consumer Returning Decision, there were both effects from independent variables as well as indirect effects through the mediator WTP As proposed, the mediator WTP plays an important part in predicting Returning Decision In other word, consumers who have high willingness to pay for a beer at craft beer outlets are more likely to return to have another one in the future This was the result of the influence of the independent factors on the mediating variable WTP, hence indirectly affect the dependent variable Returning Decision As mentioned above, the effects of variables related to internal motivation such as Hedonic and Unique Seeking are strongest, hence the indirect effects of these two are also the highest The other direct influencer of Returning Decision could be listed out are Access, Unique Seeking, Hedonic and 761 Social Influence Once again, the same thing was proven that consumers of craft beer are mainly driven by their internal motivation as Unique Seeking and Hedonic still the strongest predictors Access and Social Influence possess weaker influence on the decision of craft beer drinkers There was only one factors that did not show any significant direct effect on Returning Decision, which is Local Connection This could be explained as beer in Vietnam was introduced by westerner colonists and still somehow considered as a product of foreign culture Moreover, most of craft beer outlet in Vietnam tend to be influence by some identified brewing styles, which most originated from European countries The result of this research proved that the relationship between independent variables (Access, Local Connection, Unique Seeking, Hedonic and Social Influence), the mediator (Willingness to Pay) and the dependent variable (Returning Decision) is significant The sample pool of this research contains 263 valid samples collected from craft beer restaurant in Ho Chi Minh city, Nha Trang This study is aimed to improve the efficiency of the existing craft beer outlets as well as a benchmark for those who wished to enter this potential market Moreover, the result could also be used to predict consumer decision in other field of Food and Beverage services sectors The findings from this study could be valuable for the operators of craft beer restaurants, bars and pubs to understand what attract customers toward their business Which feature is the most important for a consumer when choosing a craft beer outlet and why the consumer committed to one Applying these findings in the business, hopefully a win-win situation could be achieved as the service providers could understand what the consumer need and try to meet that need In other word, the consumers could find what they look for and the businesses could attract more customers as well as retain old ones As proven earlier in this paper, Willingness to Pay plays a vital role in the consumer Returning Decision, hence improving WTP would bring lots of benefit to the craft beer businesses The two strongest predictors of Willingness to Pay are Hedonic and Unique Seeking This implies that consumer Willingness to Pay is closely related to the internal feelings According to the answer that the correspondents gave, we can see that craft beer drinkers value the elements of tasting new and unique beers, as it both satisfy their needs for entertainments and uniqueness In response, craft beer outlets should develop new beers and try to add typical ingredients to create unique taste In the context of Hedonic, most of the respondent also value the factors of relax and spending time with friends and family, so the craft beer business should create the suitable environment for relaxing and spending time with friends This means the music needs to be not to loud, so that the customer could talk with their friends There should also be some space between tables so that customers can feel comfortable chatting with friends and family Another predictor of WTP is Local Connection, which according to this study shows that craft beer drinkers in Vietnam are willing to pay for a local brewed beer Hence the craft beer operators could take advantage of this factors in advertising their businesses and products In this research, the respondents were mainly approached in restaurants located in the city center, so that the answer for the access aspect, respondents mostly agreed that the outlets located in the city center areas convenience for them The operating time and service delivery system of the outlets also please the consumer Social Influence was proven to have influence on consumer WTP But in comparison to other factors, Social Influence plays a smaller part Craft beer restaurants should also take care of their service quality beside advertising their outlet on social media As it may cause customer dissatisfaction and lead to bad social image and bad comment if the quality does not match with the image advertised on Social media In the context of Returning Decision, there are four independent factors were proven to have significant effect and the mediator WTP which was mentioned above also significantly affect In order to improve consumer Returning Decision, the craft beer business managers should take care all these five predictors The mediator Willingness to Pay is the strongest predictor of consumer intention to return to craft beer outlets Then if a business is able to increase consumer WTP, it could attract consumer to return multiple times 762 In the section above, the way to improve WTP was discussed, so in this part, this could be skipped and other predictors would be discussed more carefully Aside from Willingness to Pay, there are four other predictors of Returning Decision, which are Access, Unique Seeking, Hedonic and Social Influence In these four, Unique Seeking and Hedonic proved themselves to be stronger than the other two and once again repeat the point of view that craft beer drinkers are more sensitive to the factors that related to emotion In order to increase the consumer intention to return to craft beer outlet, the business operator should take care of these two Continuously renewing and expanding the choice of beers is a must for all the restaurants, so that consumers would never be bored with the offered beers and always maintain the intention to come back for more and more taste of unique and new beer again and again Furthermore, many drinkers come to craft beer outlets to enjoy the atmosphere and spend time with friends and family, so the elements of suitable environment, space, music, lightning are also important to the business The others two factors, Access and Social Influence, show weaker effects on Returning Decision But they should not be ignored either Similar to the earlier part, Access also show that in order to draw consumers return to a craft beer restaurant, the location shall be near the city center areas, the operating hours shall be extended to until late at night And the system of delivering services, such as reservation, parking, staffs, etc should be convenience for the guest The last factor, Social Influence only showed minor effect toward Returning Decision, but service operators could not overlook this factor The influence may come from many sources such as the recommendations from their friends and family, online advertisement, reviews from other service users, etc To maximize the effect of this factor, craft beer services operators should combine using the power of social media advertising and inactive advertising through satisfying the guest while they are at the restaurant in exchange for the favorable word of mouth and recommendation For future research about Vietnamese craft beer market, this study’s findings could provide some clue as stepping stones for other researchers But there are some limitations that could be improved The first thing is the data collection In this research, respondents are mostly approached in Ho Chi Minh city and Nha Trang Future research should extend the sample pool and also collect from different location from the two mentioned cites to reflect the Vietnamese consumer point of view in general more precisely The next problem is that the sample size of this research mainly consisted of young people Further research, if possible, should try to reach other group of consumers of this type of services, such at the middle age group To achieve this, other from the trending and modern craft beer restaurants, researchers could search for more traditional and old fashioned one, more Vietnamese styled ones Reference Acitelli, T and Magee, T (2017) The Audacity of Hops: The History of America’s Craft Beer Revolution Chicago: Chicago Review Press Adams, D., & Salois, M (2010) Local versus organic: A turn in consumer preferences and willingness-to-pay Renewable Agriculture and Food Systems, 25(04), page 331–341 Ajzen, I (1991) The theory of planned behavior Organizational Behavior and Human Decision Processes, 50, page 179–211 Alison Murray & Carol Kline (2015): Rural tourism and the craft beer experience: factors influencing brand loyalty in rural North Carolina, USA Journal of Sustainable Tourism, 23, page 1198-1216 An Nhien (2017, October 16th) - Vỉetnam Cuisine Culture Association make debut Public Security News Retrieved from http://en.cand.com.vn/Culture-travel/Vietnam-Cuisine-Culture-Association-makes-debut-462460/ Barczak, G., Ellen, P and Pilling, B (1997) Developing typologies of consumer motives for use of technologically based banking services Journal of Business Research,.38 No 2, page 131-9 Brehm, J.M., Eisenhauer, B.W., & Krannich, R.S (2004) Dimensions of community attachment and their relationship to well-being in the amenity-rich rural west Rural Sociology, 69, page 405-429 Bruwer, J., & Alant, K (2009) The hedonic nature of wine tourism consumption: An experiential view International Journal of Wine Business Research, 21, page 235–257 Campbell, J., DiPietro, R B., & Remar, D (2014) Local foods in a university setting: Price consciousness, product involvement, price/quality inference and consumers’ willingness-to-pay International Journal of Hospitality Management, 42, 39–49 Carl McDaniel and Roger Gates (2005, Paperback, Revised) Marketing Research Essentials with SPSS Carvalho, A (1984) Psychological performance Psychology: Science and Profession, (2), 7-9 763 Christopher M., Adrian, P., & David, B (2004) Relationship marketing: Creating stakeholder value Oxford: Elsevier Comfrey, A L., & Lee, H B (1992) A First Course in Factor Analysis Hillsdale, NJ: Lawrence Erlbaum Associates Cooper, D R., Schindler, P S., & Sun, J (2006) Business research methods (Vol 9) New York: McGraw-Hill Irwin Darby, K., Batte, M T., Ernst, S., & Roe, B (2008) Decomposing local: A conjoint analysis of locally produced foods American Journal of Agricultural Economics, 90(2), 476–486 Decision lab (2018), A look at Vietnam Foodservice industry in 2017 Retrieved from: http://www.decisionlab.co/library/ooh-q3-2017-market-update-lp1 Dörnyei, Z (2007) Research methods in applied linguistics New York: Oxford University Press Eastlick, M and Feinberg, R (1999) Shopping motives for mail catalog shopping Journal of Business Research 45 No 3, pp 281-90 Flack, W (1997) American microbreweries and Neolocalism: “Ale-ing” for a sense of place Journal of Cultural Geography, 16(2), page 3753 Foster, V., Bateman, I., Harley, D., 1997 Real and hypothetical willingness-to-pay for environmental preservation: a non-experimental comparison Journal of Agricultural Economics 48, page 123–138 Halstead, D., Page Jr., T.J., 1992 The effects of satisfaction and complaining behavior on consumers repurchase behavior Journal of Satisfaction, Dissatisfaction and Complaining Behavior 5, 1–11 Haywood, M (1988), Repeat patronage: cultivating alliances with customers International Journal of Hospitality Management.7 No 3, page 225-237 Hirschman, E C., & Holbrook, M B (1982) Hedonic consumption: Emerging concepts Journal of Marketing, 46, page92–101 Holbrook, M B., & Hirschman, E C (1982) The experiential aspects of consumption: Consumer fantasies, feelings, and fun Journal of Consumer Research, 9(March), 132–140 Holton, E H., & Burnett, M B (1997) Qualitative research methods In R A Swanson, & E F Holton (Eds.), Human resource development research handbook: Linking research and practice San Francisco: Berrett-Koehler Publishers Horowitz, J and McConnell, K (2003) Journal of Economic Behavior & Organization 51, page 537-545 Hox, J and Boeije, H (2005) Data collection, primary versus secondary Encylomedia of Social Measurement, Volume Kang, J., Tang, L., & Fiore, A M (2014) Enhancing consumer–brand relationships on restaurant Facebook fan pages: Maximizing consumer benefits and increasing active participation International Journal of Hospitality Management, 36, 145-155 Kraftchick, J., Byrd, E., Canziani, B and Gladwell, N (2014) Understanding beer tourist motivation Tourism Management Perspectives, 12, page 41–47 Le, D (2017, October 13th), Vietnam Cuisine Culture Association created Vietnam economic time, retrieved from http://vneconomictimes.com/article/society/vietnam-cuisine-culture-association-created Luu, V D., Boudreau, J and Mai, N C (2017, July 21) Vietnam's Drinkers Are Giving the World's Top Brewers Beer Goggles Bloomberg, retrieved from https://www.bloomberg.com/news/articles/2017-07-20/beer-swilling-vietnam-prepares-stake-sales-astop-brewers-swoop Meuter, M L., Ostrom, A L., Roundtree, R I., & Bitner, M J (2000) Self-service technologies: Understanding customer satisfaction with technology-based service encounters Journal of Marketing, 64, page 50–64 Moeller, S., Fassnacht, M., & Ettinger, A (2009) Retaining customers with shopping convenience Journal of Relationship Marketing, 8(4), 313 329 Nelson B., Raymond J., and Ben K (2011) Restaurant consumers repeat patronage: A service quality concern International Journal of Hospitality Management 30, page 329–336 Netemeyer R., Krishnan, B., Pullig, C., Wang G, Yagci M, Dean D, Ricks J, Wirth F (2004) Developing and validating measures of facets of customer-based brand equity Journal of Business Research 2004; 57: 209– 24 Nguyen, V (2018, January 15) Vietnam consumer more than four billion litters of beer in 2017: Glad or Worry? Bao moi, retrieved from https://baomoi.com/viet-nam-tieu-thu-hon-4-ti-lit-bia-trong-nam-2017-mung-hay-lo/c/24630924.epi Oh, H., Fiore, A., and Jeoung, M (2007) Measuring experience economy concepts: Tourism applications Journal of Travel Research, 46, page 119-132 Park, K., Reisinger, Y and Kang, H (2008) Visitors’ motivation for attending the South Beach Wine and Food Festival, Miami Beach Florida Journal of Travel & Tourism Marketing, 25, page 161–181 Pechansky, R., & Thomas, W (1981) The concept of access Medical care, 19(2), 127-140 Perdue, R., Long, P and Kang, Y (1996) Boomtown tourism and resident quality of life: The marketing of gaming to host community residents Journal of Business Research, 44(3), page 165-177 Pham Nguyen (2017, October 12th) - The introduction of Vietnam Cuisine Culture Association Dan Tri, retrieved from: http://dantri.com.vn/vong-quay-du-lich/ra-mat-hiep-hoi-van-hoa-am-thuc-viet-nam-20171012173504165.htm Pritchard, M., Funk, D and Alexandris K (2009) European Journal of Marketing, 43 No 1/2, 2009, page 169-187 Reichheld, F.F., & Sasser, W.E (1990) Zero defections: Quality comes to services Harvard Business Review, 68(5), 105-111 Ruvio, A., Shoham, A., and Brencic, M (2008) Consumers’ need for uniqueness: Short-form scale development and cross-cultural validation International Marketing Review, 25, page 33-53 Schnell, S and Reese, J (2003) Microbreweries as tools of local identity Journal of Cultural Geography, 21(1), page 45– 69 Seiders, K Voss G, Grewal, D., & Godfrey, A L (2005) Do satisfied customers buy more? Examining moderating influences in a retailing context Journal of Marketing, 69, page 26-43 Seiders, K., Berry, L L., & Gresham, L (2000) Attention retailers: How convenient is your convenience strategy? Sloan Management Review, 49(3), page 79–90 Shortridge, J R (1996) Keeping tabs on Kansas: Reflections on regionally based field study Journal of Cultural Geography,16(1), page 5–16 Sparks, B (2007) Planning a wine tourism vacation? Factors that help predict tourist behavioral intentions Tourism Management, 28(5), page 1180–1192 Tarkiainen, A., & Sundqvist, S (2005) Subjective norms, attitudes and intentions of Finnish consumers in buying organic food British food journal, 107(11), 808-822 Taylor, S and DiPietro, R (2017): Segmenting craft beer drinkers: An analysis of motivations, Willingness to Pay, and repeat patronage intentions International Journal of Hospitality & Tourism Administration Tekin H (2002) Eitimde ửlỗme ve deerlendirme Yarg Publisher, Ankara 764 Thilmany, D., Bond, C., & Bond, J (2008) Going local: Exploring consumer behavior and motivations for direct food purchases American Journal of Agricultural Economics, 90, page 1303–1309 Tran, H (2016, November 8) Craft Beer in Vietnam: An Inside Peek with the Team Behind Tê Tê Craft Beer Vietcetera, retrieved from http://vietcetera.com/craft-beer-in-vietnam-an-inside-peek-with-the-team-behind-te-te-craft-beer Tuong Vi (2011, July 15) A kitchen of the world Saigon times, retrieved from http://english.thesaigontimes.vn/18132/AKitchen-Of-The-World.htm Van Zanten, R (2005) Drink choice: Factors influencing the intention to drink wine International Journal of Wine Marketing, 17(2), page 49– 61 Vietnam tourism report of 2017, Viet Nam National Administration of Tourism, retrieved from http://vietnamtourism.gov.vn/index.php/items/25583 Wang, Y and Fesenmaier, D (2004) Towards understanding members’ general participation in and active contribution to an online travel community Journal of Tourism Management, 25, page709–722 Zeithaml, V., Berry, L and Parasuraman, A (1996) The Behavioral Consequences of Service Quality Journal of Marketing, 60 (2), 31-46 765 ... that craft beer drinkers in Vietnam are willing to pay for a local brewed beer Hence the craft beer operators could take advantage of this factors in advertising their businesses and products In. .. than the correlation among variables The result means that all of the latent variables are qualified and are suitable for further analysis in the research All of the results are shown in Table... Brewing tap room, Fatfish restaurant and bar lounge, etc) All the dynamic movements in the Craft Beer sectors are due to the facts that consumer demand is increasing rapidly in the past decade In