The determinants of consumers shopping behavior in retail in ho chi minh

UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM VIETNAM -NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS The determinants of consumers' shopping behavior in retail market in Ho Chi Minh City MASTER OF ARTS IN DEVELOPMENT ECONOMICS ' HO CHI MINH CITY, Dec 2011 \,, _ _ _ ~ UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM VIETNAM -NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS The determinants of consumers' shopping behavior in retail market in Ho Chi Minh City A thesis submitted in partial fulfilment ofthe requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS By LE THAI BAO TRAN Academic Supervisor Dr NGUYEN MINH DUC HO CHI MINH CITY, Dec 2011 ACKNOWLEDGEMENT First of all, I would like to express my honest and special thanks to supervisor, Dr Nguyen Minh Due, for his enthusiastic assistances and guidelines during my writing of the thesis I would like to express special thanks to Dr Peter Calkin for his useful comments on my thesis research proposal Besides, I am grateful to Dr Nguyen Trong Hoai, Dr Pham Khanh Nam and Dr Cao Hao Thi for their very helpful guidelines and comment on my thesis as well I would like to send sincere thanks to my colleagues, my friends who have supported me a lot to the survey in this thesis Finally, I would like to express my sincere thanks to my family for their spiritual encouragement during the time of studying of Master of Development Economics Dec, 2011 Le Thai Bao Tran 11 CONTENTS ACKNOWLEDGEMENT CONTENTS LIST OF TABLES LIST OF FIGURES ABSTRACT CHAPTER I: INTRODUCTION 1.1 Problem statement 1.2 Research objectives Research questions 1.3 The organization of thesi 1.4 CHAPTER II: LITERATURE REVIEW 2.1 Definitions 2.1.1Supermarket 2.1.2Traditional market 2.1.3Consumer behavior Theoretical literature 2.2 2.2.1Theory of Reasoned Act 2.2.2Theory of Planned Beha 2.2.3Behavioral economics th 2.2.4The process of customer 2.2.5Literature about store- ch Conceptual framework 2.3 2.3.1Shopping frequency 2.3.1.1 Price 2.3.1.2 Location 2.3.1.3 Shopping environment 2.3.1.4 Service 2.3.1.5 Advertising and promotion 2.3.1.6 Product assortment 2.3.1.7 Customer demographic characteristics 2.3.2 Customer satisfaction ofthe favorite store 2.3.3 Conceptual framework CHAPTER III: AN OVERVIEW OF SUPERMARKETS/ TRADITIONAL MARKETS ACTIVITIES IN HO CHI MINH CITY 3.1 Overview of retail market in Vietnam 3.1.1Population of Vietnam b 3.1.2Total retail revenue of go 3.2Overview retail market ofHo Chi Minh City (HCM 3.2.1Population 3.2.3Development of superma CHAPTER IV: RESEARCH METHODOLOGY AND DATA ANALYSIS 4.1 Samples and data collection technique -~ ' Ill 4.1.1 Sampling 29 4.1.2 Data collection 30 4.2 Research methodology and data analysis 31 4.2.1 Variable measurement 31 4.2.1.1 Demographic characteristics 31 4.2.1.1.1 Location 32 4.2.1.1.2 Gender 32 4.2.1.1.3 Age 32 4.2.1.1.4 Married status (Mar) 32 4.2.1.1.5 Household size (Hsize) 32 4.2.1.1.6 Education (Edu) 32 4.2.1.1 Career 32 4.2.1.1.8 Kind of firm where shopper is working for (KindF) 32 4.2.1.1.9 Average monthly income ofshopper (Mincomei) 33 4.2.1.1.10 Average monthly income offamily of shopper (MincomeH) 33 4.2.1.2 Shopping information .33 4.2.1.3 Attributes ofsupermarket/ traditional market 33 4.2.1.4 Satisfaction of shopper with most frequently shopping place 33 4.2.2 Supermarket: 34 4.2.2.1 Descriptive statistics of variables: 34 4.2.2.2 Exploratory Factor Analysis (EFA) and reliability test (Cronbach's Alpha) 36 4.2.2.3 Model specification: 41 4.2.2.3.1 Model ofshopping frequency: 41 4.2.2.3.2 Model of satisfaction 44 4.2.2.4 Effects of demographic variables on shopping behavior at supermarket: 46 4.2.2.5 Bivariate correlation between FreqS and SSatisfy analysis: 4.2.2.6 Effect of shopper's satisfaction with distance from home/ working place (SsatisfyDis) to supermarket on their shopping frequency (FreqS) and satisfaction (Ssatisfy) with favorite supermarket: .48 4.2.2 Effect of preference of supermarket shopping (Likeshopsuper) on shopping frequency (FreqS) or satisfaction (Ssatisfy) of shoppers with supermarket: 50 4.2.2.8 The relationship between spending for each shopping time (Spendsuper) and shopping frequency (FreqS) at supermarket: .51 4.2.3 Traditional market: 51 iv 4.2.3.1 Descriptive statistic of variables: 51 4.2.3.2 Exploratory factor analysis (EFA) and reliability test (Cronbach's Alpha) 52 4.2.3.3 Model specification: 56 4.2.3.3.1 Model of shopping frequency 56 4.2.3.3.2 Model of satisfaction 58 4.2.3.4 Effects of demographic variables on shopping behavior at traditional market: 60 4.2.3.5 Bivariate correlation between shopping frequency (FreqT) and satisfaction (Tsatisfy) 62 4.2.3.6 Effect of shoppers' satisfaction with distance (TsatisfyDis) from home/ working place to traditional market on their shopping frequency (FreqT) and shopping satisfaction (Tsatisfy) with favorite traditional market: 62 4.2.3 Effect of preference of traditional market shopping (Likeshoptradi) on shopping frequency (FreqT) or satisfaction (Tsatisfy) of shoppers with favorite traditional markets 64 4.2.3.8 The relationship between spending for each shopping time (Spendtradi) and shopping frequency (FreqT) at traditional market: .65 4.2.4 Comparison about the difference of shopping behavior (shopping frequency and satisfaction) between two sample size (supermarket and traditional market) 65 4.2.4.1 Shopping frequency at supermarket and traditional market 65 4.2.4.2 Satisfaction about supermarket and traditional market 67 4.2.4.3 The difference of the preference of shopping between two group shoppers 68 4.2.4.4 Satisfaction about distance from shopper's house to supermarket/ traditional market 69 CHAPTER V: FINDING AND CONCLUSION 70 5.1 Shoppers' behavior at supermarket 70 5.2 Shoppers' behavior at traditional markets 72 5.3 Comparison between supermarket and traditional market 74 5.4 Conclusion and recommendation 75 5.5 Limitation of this research and expectation for further research 76 REFERENCES 77 v APPENDICES 82 APPENDIX 1: QUESTIONAIRES 82 QUESTIONAIRE (in English) 82 QUESTIONAIRE (in Vietnamese) 91 APPENDIX 2: Overview of HCMC 99 APPENDIX 3: VARIABLE MEARSUREMENT 102 APPENDIX 4: EFA ANALYSIS (SUPERMARKET) 117 APPENDIX 5: RELIABILITY TEST (ATTRIBUTE OF SUPERMARKET) .121 APPENDIX 6: REGRESSION OF SATISFACTION ABOUT SUPERMARKET MODEL (1st time) 123 APPENDIX7: ONE-WAY ANOVA ANALYSIS (SUPERMARKET) 123 APPENDIX 8: EFA ANALYSIS (TRADITIONAL MARKET) 143 APPENDIX 9: 1sT REGRESSION OF SHOPPING FREQUENCY AT TRADITIONAL MARKET 144 APPENDIX 10: ONE-WAY ANOVA ANALYSIS (TRADITIONAL MARKET) 145 APPENDIX 11: COMPARISON ABOUT SHOPPING BEHAVIOR BETWEEN TWO SAMPLE SIZE (SUPERMARKET) AND TRADITIONAL MARKET 166 J vi LIST OF TABLES TABLE IN CONTENT Table 1.1: Ranking of attractiveness of retail market in the world Table 3.1: Population ofHo Chi Minh City by district 24 Table 3.2: Population ofHCMC by age 25 ····································································· Table 3.3: Total retail revenues of goods and services by region 26 Table 4.1: Descriptive statistic of supermarkets' attributes 35 Table 4.2.: The result of3rd time conducting EFA 37 Table 4.3: Summary of Reliability test result 41 Table 4.4: Descriptive statistics of group factors affect to frequency of shopping at supermarket 42 Table 4.5: The result of regression (shopping frequency at supermarket) .43 Table 4.6: The result of2"d regression (satisfaction at supermarket) 45 Table 4.7: Correlation between shopping frequency and satisfaction .48 Table 4.8a: Ranks 49 Table 4.8b: Test statistics 49 Table 4.9: Descriptive statistic of variables of traditional market's attributes 52 Table 4.10: The result of2"d conducting EPA (traditional market) 53 Table 4.11: Summary of reliability test result (traditional market) 55 Table 4.12: Descriptive statistics of group variables of traditional market .56 Table 4.13: The result of 2"d regression (shopping frequency at traditional market) 57 Table 4.14: The result of regression (satisfaction at traditional market) 59 Table 4.15: Correlation between FreqT and Tsatisfy 62 Table 4.16a: Ranks 63 Table 4.16b: Test Statistics 63 Table 4.17: Frequency index ofFreqS and FreqT 65 vii Table 4.18a: Ranks 66 Table 4.18b: Test statistics 66 • Table 4.19: Satisfaction index about supermarket and traditional market 67 Table 4.20a: Ranks 67 Table 4.20b: Test statistics 67 Table 4.21: Like index of supermarket and traditional market 68 Table 4.22a: Ranks 68 Table 4.22b: Test statistics 68 Table 4.23: Satisfaction index about distance69 Table 4.24a: Ranks 69 Table 4.24b: Test statistics 69 Table 5.1: Cross table ofFreqS and Age 72 TABLE IN APPENDICIES APPENDIX 2: Overview ofHCMC Table 3.4: Population of Vietnam by gender and region 99 Table 3.5: Retail revenues of goods and services by economic sector 100 Table 3.6: Number of traditional market, supermarket and trade centre until year 2015 101 APPENDIX 3: VARIABLE MEARSUREMENT Table 4.25: Variable measurement 102 Table 4.26: Location where shopper is living 112 Table 4.27: Gender of shopper 113 Table 4.28: Percentage of age of shopper 113 Table 4.29: Married status of shoppers 113 Table 4.30: Household size of shopper 113 Table 4.31: Education level of shoppers 114 Table 4.32: Career of shoppers 114 Table 4.33: Kind of firm where shopper is working for 114 Table 4.34: Monthly income of shopper 115 viii Male Female Total 161 Table 4.103b ANOVA Spendtradi Between Groups Within Groups Total L - - Table 4.104: The relationship between Spendtradi and household size Table 4.1 04a Descriptives Spendtradi One person 2-4 people More than people Total Table 4.104b ANOVA Spendtradi Between Groups Within Groups Total - 162 Table 4.105: The relationship between Spendtradi and monthly income of household Table 4.1 05a Descriptives Spendtradi 2,000,000- less than 4,000,000 VND 4,000,000-less than 6,000,000 VND 6,000,000 -less than 10,000,000 VND Above 10,000,000 VND Total L _ Table 4.1 05b Spendtradi Between Groups Within Groups Total 163 Table 4.106: The relationship between Spendtradi and marriage status Table 4.106a Descriptives Spendtradi N Single Married Total Table 4.106b Spendtradi Between Groups Within Groups Total Table 4.107: The relationship between Spendtradi and education level Table 4.107a Descriptives Spendtradi Under high school Graduated High school College/ University Post graduated Total 164 Table 4.107b ANOVA Spendtradi Between Groups Within Groups Total Table 4.108: The relationship between Spendtradi and career Table 4.1 08a Spendtradi Student Officer/ staff Freelancer Unemployment Total .-· - Table 4.108b ANOVA Spendtradi Between Groups Within Groups Total 165 Table 4.1 08c: Post Hoc Multiple Comparisons Spendtradi Dunnett t (2-sided) (I) Career (J) Career Student Unemploym Officer/ staff Unemploym Freelancer Unemploym APPENDIX 11: COMPARISON ABOUT SHOPPING BEHAVIOR BETWEEN TWO SAMPLE SIZE (SUPERMARKET) AND TRADITIONAL MARKET Table 4.109: Comparison about FreqS and FreqT FreqS Valid Once a month Twice a month Once a week Twice a week More than times a week Total Missing System Total Valid Once a month Twice a month Once a week Twice a week More than times a week Total Missing Total System 166 Table 4.110: Comparison about Ssatisfy and Tsatisfy Ssatisfy 70 2.25 Valid 2.75 3.25 3.5 3.75 4.25 4.5 4.75 Total Missing System Total 1.5 Valid 1.75 2.5 2.75 3.25 3.5 3.75 4.25 4.5 Total Missing System Total - J - 167 ,·"f- Table 4.111 : Comparison about Likeshopsuper and Likeshoptradi Likeshopsuper Valid dislike Normal like ; Strongly like Total Valid Strongly dislike dislike Normal like Strongly like Total ~ •• 14 ~-~ • ~;V' ' .- ~~ f;~ 168 :P: ::~ ... following points: The determinants of shopping behavior of consumer in retail market in Ho Chi Minh City The difference m shopping behavior of consumers m retail market by demographic groups of shoppers... OF ECONOMICS HO CHI MINH CITY VIETNAM VIETNAM -NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS The determinants of consumers' shopping behavior in retail market in Ho Chi Minh City A thesis... market in Ho Chi Minh City has affected shopping habit /shopping behavior of consumers Consumers have more choice to decide where the most convenient place for them to go shopping However, there is