Fe ee TE @OUM OPEN UNIVERSITY MALAYSIA RESEARCH PROJECT (BMBRS5103) —
Trang 3ABSTRACT
To study factors affecting online shopping behavior of students HCMC University of Technology to delve into 2 major problems: Evaluation of factors affecting online shopping behavior of students of HCMC University of Technology, and make recommendations, suggestions for suppliers in order to meet the requirements of consumers The research project was conducted mainly based on quantitative research
Quantitative research was conducted through a questionnaire survey, using multivariate regression analysis through SPSS 18.0 software with the size of the sample n = 100
Results of multivariate regression analysis showed patterns consistent with survey data The majority of the hypothesis is accepted These assumptions include convenience, the response of the website and risks when using the service affect buying behavior of online students HCMC University of Technology
Based on the results of the study, the suppliers can have a better understanding of the factors affecting buying behavior of students in particular and people who use services online purchases in general Thence, propose some methods to promote the strengths and overcome the disadvantages of online shopping to attract customers and increase
Trang 4LIST OF TABLES
Table 1V.1.1 €nder - + 2 ch HH he HH 0111111171000 11011 44 Table IV.1.2 Time using the Internet . -cccsằsenehhhrrrrrrrrrrrr 46 Table IV.1.3 Purpose of using the internet -‹-: srserirrerrrrrrrrrrrre 47 Table 1V.1.4 Websites c canh HH tren 48 Table IV.1.5 Products often buy . - se nhrhdtrrrrrdirrrrrrrrrire 49 Table IV.1.6 Group websites often viSIL eeeeieeermrrrtrrrrrrrrrrrrrrre 50 Table IV.2.1 Cronbach's alpha coefficienfs : -.esinrerrrrrrrree 52 Table IV.2.2 Verifying Barlett, KMO -ceierrrrrrrrrrrrrrreir 54 Table IV.2.3 Eigen Values coefficient and overall oŸ variance extracted
independent factOrs -seecoenhnhhhrhrrrrdtrrrrrrrrrrrrerrrirrrltlir 56 Table IV.2.4 Factor Varimax Rotation . -enrereeerrrrrrrrrrrrrrrrre 58 Table IV.2.5 KMO and Barlett dependent valuable . -. -. - 59 Table IV.2.6 Extracted variance and Eigen values coefficlent - 59 Table IV.2.7 The correlation coefficieni( - 7s snhnnerheHrrrrrrrrrrer 61 Table IV.2.8 The regression equati0n . ssccsnrrhrererrrrrrrtrtrdrrrrrrrrrrrrre 63
LIST OE FIGURES
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Picture IV.1.2 Time using the Internet ChaFf - -5-c‡creretehnritrerrrrrrrrre 46 Picture IV.1.3 Chart Purpose of using the Internet . -«cccecrereree 47 Picture IV.1.4 Websit€S ch như H20 001110 111110 48 Picture IV.1.5 Products often buy .- cccseeieheehhrrrdrertrrrimrrrrrire 49 Picture IV.1.6 The purchase page . -ccenehnhrrrrrrrrtrrrrrrrrre 50
LIST OF ABBREVIATIONS B2B: Business to Business
B2C: Business to Customer TPR: Theory of Perceived
TAM: Technology Acceptance Model TRA: Theory of Reasoned Action
UTAUT: Unified Technology Acceptance and Use Technology EFA: Exploratory Factor Analysis
VIF: Variance Inflation Factor
SPSS: Statistical Package for the Social Sciences ANOVA: Analysis of Variance
Trang 6TABLE OF CONTENTS
ABSTRACT ccssscsssseccsvcossscsresescsssseseesensossesscessanenensanessensanensesenenssnsnsessasanessaneonenoaseens i LIST OF TABLES .scsscsesccssssssensesessoscsecneoncssnsesensenassovanensenacrersenansesenscnanacseoaosorecs ii LIST OF FIGURES .ccsssssssssssrsssosessosnnsorsosasenentaaeanscsovesconsorsrensnseneatassarescasaceasaceer ii LIST OF ABBREVIATIONG c0sscscsssssssensessonesesscesssnrensesscanensaneanenceseesnsaezans iii CHAPTER I: INTRODUCTION .ssccscsrsssssesssssesresssersssccsrssnnenscsensenensconscnneccoes 1 Lol Introduction ố aanaa 1 1.2 The necessity Of topics cseesccsseceeeeceeneestsseersesrsssesesensneensnensssetessenneneaeensnenees 6 1.3 Research ObjectiVes -.-c chư 1rrrririrrieltarnere 8 1.3.1 General ObjectÏV€s «xen eeerhrerrrr.mmrrrtrrreiiir 8 1.3.2 Specific objectives -.-ccceeeeerrrrrrrrrrrrdrrrrrrrrrddrrrrrrrirrlrrlri § 1.4 Subject and scope O researCh -. -s-reererrrrrrrterreerrtdrrrrrrrrrrrrrtmnrtrr 9 L5 Research FrameWOrK <5 c2 + th Hà 4712221 tre 10
CHAPTER II: LITERATURE REVIEW ANDTHEORETICAL
Trang 7TL.1.5 Online Purchase Behavior -.- «nhe 22
II.1.6 Online Purchase Intention - : -+-+<<n‡hhhrirrrrrrrrre 23 I.1.7 Perceived Benefits - ch trrerre 24 11.1.8 Online Shopping Orientations -eerererrrrrrrrrrrrrrrrrrrre 25
IL2 THEORETICAL FRAMEWORK .cccccsscssesseereeseneeeesscasnsessssenetsensnennenseass 31 I.2.1Theory of risk perception (TPR) -eereeerrerrrrrrrrie 31 II.2.2 Technology acceptance model (TAM|) eereeeerererrrrer 32 IL.2.3 Unified Theory of Acceptance and Use of Technology (UTAUT) .32 IL2.4 Model of consumer behavior ccccececccreeceeeneeteeetssseeseeneeneeneeteneees 34 HI.2.5 Theory Reasoned Action (TRA) - -ererrrrrrrrrrrrrm 34
CHAPTER IIIL: RESEARCH METHODOLUOOY «<<<<°<>=seseeeeesesre 36 III.1 Research model proposed - - cceehretrerrrdtrrrrrrtrrrrrrrrrrrrrrrrriidrre 36 II.2 Research Methodology -szssscenenherrrerrerrrrritrrrrirrrrrrrrrritrrrr 37 TIL.3 Data Collection naaaaaaaoa 38 III.4 Data AnalySlS -cccrerrirttrthhrhrrrt1tttrrrrrrrriairtrtrtrrtrrtirrrne 38 III.5 Types of information collected -ccscerreeeererrrrrtrrertrtrrerttrrrrrrre 42 HI.6 Construction SUFV€Y .cereiihhhdrrrrtrrrrrrrrrrrrrrrrriiritrrrnrrree 42 III.7 Design Patterns -cc ch netehtrttrrrerrrtrdtrtrirrrriirrrrrrtrrrnirrirerrreire 43
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CHAPTER I: INTRODUCTION
1.1 Introduction
e 1960: EDI (Electronic Data Interchange) permits companies to carry out electronic transactions Although the concept of e Commerce did not touch the daily Internet user till the era of 1990s yet some big players had started to use EDI as early as 1960 The railroad industry was among the first to understand the importance of EDI and start using the same Other players in the transportation industry followed
e 1979: There is always a hero Someone who comes out of nowhere and does something unusual E Commerce has its own hero Michael Aldrich is the man It was the year 1979 when Aldrich was on a stroll in a supermarket with his wife Suddenly, he was hit by an idea which changed it all for e Commerce Aldrich connected a domestic TV and a computer with telephone lines so as to start selling groceries online via this model How they were able to tackle various situations is a different story altogether, but at the end of the day they did come up with a model that helped them launch the business of online shopping
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e 1982: This was the year for France to jot down her name in the history books France based telecom company invented Minitel which has been considered as the most happening pre-WWW online service Even during its infant years users had the privilege to make online purchases, check phone directories, chat with each other and various other basic searches just like it happens in today’s Internet
e 1984: How would it sound if someone tags you as the first ever home shopper on this planet Well, Jane Snowball was tagged as the first ever home shopper when at the age of 72 she became Tesco’s customer It was the year 1984 itself when the world’s first B2C (Business-to-Consumer) online shopping system was launched by Tesco The online shopping system started the concept of Online Shopping Basket which was later renamed Online Shopping Trolley Also, it was April 1984 when CompuServe announced Electronic Mall which was almost like the e Commerce of today
e 1987: Next up was a Merchant Account launched in the year 1987 that helped software developers sell their software products online SWREG was the name and it happens to be one of the oldest pieces of software that is still
available
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understand that the communication system (on the Internet) of those days wasn’t as big as it is nowadays
1991: Back then NSFNET was the backbone of the Internet, but it wasn’t available for commercial use It was the year 1991 when the NSF (National Science Foundation) cleared the way for the commercial use of NET This was considered to be a major boost for the e Commerce industry and its future growth Statistics state that the traffic on the backbone network of NSF jumped to over 1 trillion bytes per month in the year 1991 itself after it was opened for commercial use By 1996 there were over 10 million hosts online and the Internet was now a global phenomenon It was the year 1991 itself when University of Minnesota launched “gopher”, the first point-and- click based browser that could be used to navigate files on the Internet At times this has been tagged as the birth of Internet Gopher was originally designed to ease campus communication “The first Internet application my mom can use.” Mark MaCahil, Team Lead of the computer programming team which launched Gopher
1992: A book called “Future Shop: How new technologies will change the way we shop and what we buy” was published in the year 1992 The book was considered revolutionary considering the fact that it talked about what will happen in the future of e Commerce and how the Internet will take shape “Snider and Ziporyn (the authors of the book) powerfully describe the glass highways of the future, which will not only benefit consumers but will also provide fantastic opportunities for schools, hospitals, businesses, and the average American as we enter the Information Age of the 21st century.” —
Conrad Burns, Chair of U.S Senate Communications Subcommittee
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means of transmitting data over the Internet Certificates gave the browsers a chance to trust a source before displaying its data and sharing personal information Something that helped the end consumer shower more interest on the Internet and indirectly on e Commerce transactions This wasn’t all The year 1994 also marked the launch of Yahoo! though the domain was registered later in the year 1995 This truly gave the Internet and eCommerce a completely new direction
1995: It was the year 1995 when NSF started charging a fee for registering domain names At that time the Internet had 12,000 domain names registered and the number jumped to over 2 Million in the next 3 years January 18, 1995 was the day when the domain Yahoo.com was registered The word Yahoo is an acronym for “Yet Another Hierarchical Officious Oracle.” One must understand that by now a lot of other services that would later rule the web had started to appear Some of these were Amazon, AuctionWeb (which later became eBay) and Verisign etc
1998: PayPal came into existence in the year 1998 The current PayPal system that we see is actually the merger of X.COM, a financial service company of the late 2000s, and Cofinity which happened to be a payment and cartographic company It was the year 1998 only when Google entered the world of e Commerce and Yahoo! launched Yahoo! Stores online
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literally buy anything via the Internet That is the wonderland of e
Commerce
In these recent decades, the development of internet technology is more and more rapid and mature; it was becoming inevitable that online shopping would become an alternative way of purchasing goods The products variety, services, efficiency, security and popularity of online shopping also develop quickly, it is necessary for the online shopping industry have continual improvement to meet consumers changing needs and expectations Online shopping has been a growing phenomenon in all four corners of the world, in particular among countries possessing highly developed infrastructure available for marketing activities through the internet Today, internet is not only a networking media, but also a global means of transaction for consumers Internet usage has grown rapidly over the past years and it has become a common means for information transfer, services and trade According to the survey by A.C.Nielsen (2007), more than 627 million people in the world have done online shopping A research by Forrester (2006) reported that e-commerce market would grow from $228 billion in 2007 to $288 billion in 2009 As reported by Jupiter Media Metrix (2005), the online retail sales in US amounted to USD65 billion in 2004, and this would likely reach USD117 billion in 2008 By 2010, e-commerce will account for $316 billion in sales, or 13 percent of the overall retail sales As a result of the survey, 61 percent of the online users in the US will make their purchases via the Internet in 2010, as compared to merely 46 percent in 2004
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1.2 The necessity of topic
Vietnam E-commerce and Information Technology Agency (VECITA) reported that 36 percent of the country’s population, or 34 million people, use the Internet, 18 million of whom shop online If each online shopper spends some US$150 per year to purchase goods from online stores, the Vietnamese e-commerce market will be evaluated at $2.77 billion, according to research firm Visa Meanwhile, another estimate proposed by VC Corp suggests that the market is worth $2.2 billion The VECITA report has the lowest estimate, with each online shopper spending $30 a year, and a market evaluation of $550 million The report also indicates that 81 percent of Vietnamese Internet users go online on a daily basis, with a total online time of 5.6 hours per day, and 6.4 days per week This means these users spend as many as 36 hours per week in the virtual world Vietnamese citizens spend more time on the Internet than other traditional means of media, according to the report The time locals spend watching television is only 5.2 days per week, or 14 hours per week The number of newspaper readers is even lower Only 36 percent of the population read newspapers and magazines every day, with an average reading time of 1.5 hours a day, and 4.1 days per week The lowest number is those who listen to the radio, which accounts for only 12 percent of the population with a total listening time of only 3 hours a week
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Benefits and risks of online purchases:
Duality (benefits and risks) of online shopping is that buyers can save travelling time and quickly purchase items they need, but also there may be a trick, buyers may lose money but not receive their items or bad items
Benefits: The advantage of online shopping is via the Internet, buyers can perform all steps of the purchase, from taking a look, placing orders, making payments, choose the methods of delivery, receiving the promoted services without going to the selling places Moreover, this form of trading can also help buyers easily and quickly purchase items which may be not available in their local area with cheap prices
Risks: Besides trusted websites, there are several unreliable online shopping websites like ads These websites have common forms which are the sellers upload photos of some products and inform these items are available or coming soon If the buyer likes one of these items, he has to pay 30 - 70% of the item’s cost in; the balance amount will be paid all as they receive the item There are also many cases that the buyer pays 100% in advance but when the item is delivered, it’s not the one he wants The quality is low but the price is high or it could be damaged At that time, the buyer have nothing but a phone number or nick of that seller, he does not know the specific shop so he cannot find the seller to complain or ask another item instead
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MALAYSIA
particular could use a smart way during interaction with customers through a network to reach the ultimate goal is customer satisfaction, and more
Based on these research results, proposed a number of solutions that help businesses online sales can attract more buyers, enhance trade So while many people are aware of the convenience, benefits from shopping online forms, the decision to use the service will be increasing
1.3 Research Objectives
1.3.1 General Objectives
- To discover the subjective and objective factors affecting online shopping behavior of students of HCMC University of Technology
- To add useful information for online shops in marketing decision making
1.3.2 Specific objectives
This study aims at addressing the factors affecting online shopping behavior of HUTECH students and to investigate the factors directing HUTECH online consumers’ decision making towards apparels Four objectives were set up for achieving the goal and to better define the focus of this study They are:
Determination the factors affecting online shopping behavior Analysis of survey data results
Evaluation of factors have had a strong impact on online shopping
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1.4 Subject and scope of research
- Location and time: in Ho Chi Minh City University of Technology from 01/11/2014 to 10/1/2015
e Ho Chi Minh City University of Technology - HUTECH precursor University of Technology Ho Chi Minh City, was established by decision dated 26.04.1995 No 235 / QD-TTg of the Prime Minister and put into operation by decision of the Minister of Education and Training of 2128 / QD-education and training
e After nearly 20 years of development, now owns 03 HUTECH campuses is located in the downtown area Ho Chi Minh, the campus is the construction spacious, modern international standards with a total area of 100,000m2
create modern learning space, dynamic, comfortable
e Head of Dien Bien Phu: 475A - 475B Dien Bien Phu Street, Ward 25, Binh Thanh District, Ho Chi Minh City
Base Ung Van Khiem: 31/36 Ung Van Khiem, Ward 25, Binh Thanh District, Ho Chi Minh City
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CHAPTER II: LITERATURE REVIEWAND THEORETICAL FRAMEWORK
II.1 Literature Review
11.1.1 Internet, E-commerce and Online Shopping
e Internet
By the turn of the century, information, including access to the Internet, will be the basis for personal, economic, and political advancement The popular name for the Internet is the information superhighway Whether you want to find the latest financial news, browse through library catalogs, exchange information with colleagues, or join in a lively political debate, the Internet is the tool that will take you beyond telephones, faxes, and isolated computers to a burgeoning networked information frontier
The Internet supplements the traditional tools you use to gather information, Data Graphics, News and correspond with other people Used skillfully, the Internet shrinks the world and brings information, expertise, and knowledge on nearly every subject imaginable straight to your computer The Internet links are computer networks all over the world so that users can share resources and communicate with each other Some computer, have direct access to all the facilities on the Internet such as the universities And other computers, e.g privately-owned ones, have indirect links through a commercial service provider, who offers some or all of the Internet facilities In order to be connected to Internet, you must go through service suppliers Many options are offered with monthly rates Depending on the option chosen access time may vary
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The Internet is what we call a met network, that is, a network of networks that spans the globe It's impossible to give an exact count of the number of networks or users that comprise the Internet, but it is easily in the thousands and millions respectively The Internet employs a set of standardized protocols which allow for the sharing of resources among different kinds of computers that communicate with each other on the network These standards, sometimes referred to as the Internet Protocol Suite, are the rules that developers adhere to when creating new functions for the Internet
The Internet is also what we call a distributed system; there is no central archive Technically, no one runs the Internet Rather, the Internet is made up of thousands of smaller networks The Internet thrives and develops as its many users find new ways to create, display and retrieve the information that constitutes the Internet
e E-Commerce
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making purchases The process of buying behavior process consists of five steps For instance, customers first identify a need or want and then define the requirements necessary to satisfy that need Secondly, gather information and evaluate the options that are available Once they know their options, they will look to make a purchase which will include shopping for or negotiating the best price they can achieve Lastly, consumers will go through several factors which limits or influence final decision and they will evaluate whether or not they made a good decision The main purpose of this study is to understand the factors that may influence consumer’s attitude and behaviors towards online shopping How consumers form such attitudes will be also focused on by researcher with the help of models and who are true online shoppers “Internet knowledge, income, and education level are especially powerful predictors of Internet purchases among university Students” (online survey within few American students, Case, Burns and Dick, (2001, p.873)
e Online Shopping
- Purchasing online is defined as the behavior of consumers in the purchase through the online store or website using online purchases (Monsuwe, Dellaert and K D Ruyter, 2004)
- Online shopping is the process of purchasing products or services through the internet Purchasing online is a form of electronic commerce is used in B2B or B2C transactions (according to Wikipedia)
- Purchasing online is a transaction made by consumers through computer-based interfaces by consumer computer is connected and interact with the digitization of the store retailing over a computer network (Haubl&Trifts, 2000)
- Online shopping is the process of buying products or services made by consumers in the online shop via the internet
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11.1.2 Consumer decision making
Consumer decision making means a consumer make a choice between more than one option of goods or services The study of consumer decision making concerns how consumer make decision between those alternatives (Peter and Olson, 1999) A large amount researches about consumer decision making put the focus on the cognitive process Consumers decision making process was described as complicated with many factors generate problem recognition before a series of actions was initiated to reach a result (Erasmus et al., 2001)
Consumer decision making process describes the steps of a consumer’s decision making Consumers first identify their needs and then collect information, evaluate the alternatives and finally make the purchase decision All these actions are determined by both psychological and economic factors, and are affected by environmental factors like cultural, group, and social values (Klein and Yadav, 1989) In the psychological aspect, consumers are viewed as irrational, impulsive and passive 7 when making decision (Zaichkowsky, 1991) Some psychologists presume consumers would use rational shortcuts to make decisions They think that consumers are not perfect decision makers and their minds are limited to handle and recall the information For the economical perspectives, the Utility Theory anticipated that consumers make decisions based on the expected outcomes of their decisions In this model consumers were viewed as rational actors who were able to estimate the probabilistic outcomes of uncertain decisions and select the outcome which maximized their well-being (Fishburn, 1968)
11.1.3 Factors affecting buying behavior
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Culture is all the norms, values and practices are learned from the social environment, affecting how the general behavior of all individuals of a particular society There are three elements of cultural factors: Cultural, the cultural branches, social classes
Culture
Cultural factors that impact factors most strongly to the needs, motivations and shopping behavior In order to meet these new demands from consumers and bring the benefits of business enterprises forced to grasp the shift or even a refreshing change of culture over time
The cultural branches
Branch culture is one of the elements that constitute culture Culture is the set of branch members have the same habits, preferences, and even cognitive behavior Distinct characteristics and the expression level of integration among members of society branch depend on the minor factor A niche is a manifestation of a branch specific to cultural and shopping behavior of members of all branch of cultural
interaction
Under the aspect of marketing cannot fail to mention the research branch of culture and offer unique design, unique products in order to meet the needs of consumers
Social classes
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on income and wealth, the division of social classes needs to rely on a combination
of education, occupation, the value orientation Social is always mobilization - if a sufficient accumulation of the necessary elements obviously they can rise to a higher class so ramifications are approximate only People who the same class tend to behave and tastes the same, they have the same interest in trademarks, service entertainment and shopping venues therefore the Marketer must always consider the people same class to propose and design the product accordingly
From the assessment of cultural factors, optimized to exploit the value of products, optimize the creation of brand image in the customer's mind requires businesses to focus on cultural factors Besides, the businesses should actively capture the trend, demand, changes in the perception of customers, based on which the marketer can develop strategies to implement marketing activities for products and find opportunities for improvement products effectively
IE.1.3.2 Society
Society is a group or a group of people who are distinguished from other groups by the benefits, relationship characteristics, sharing the same institutions and culture There are three elements in society affect the behavior of consumers: reference group, family, social position
Reference group
Reference group as the group affects attitudes and thinking and perception of an individual In the reference group have the primary group as: family, friends, neighbors and colleagues They often have ties to communicate with each other and receive information from each other more, then affect the selection of products and
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The way that consumers affected by the reference group:
e The reference group affects the individual, is the basis to facilitate personal contact behavior, new lifestyle
e These groups influence the behaviors, attitudes, habits, and notion of each person when they want to integrate into
e These groups create pressure to force consumers comply with the norms of society; these standards will affect and influence the choice of product and service brands
® Marketers want their products sold in greater numbers they need to recognize the reference group of targeted customers to research and create the appropriate product strategy, making a good impression with customers
Family
The family is a community of people living and sticking together by emotional ties, ties of marriage, blood ties, and nurturing relationships or relationships education In fact, the family is the most important consumer buying organization The members of the family as the reference group have an important role in the shopping behavior of consumers
We can distinguish two families in the life of the buyer:
+ Orientation family includes parents of them This person will be affected by parent's perceptions about religious, economic, political and buying behavior of consumers
+ Their own family includes spouse, children In the family will have the relative influence of spouses, children, but a membership will be most influence the selection of consumer products such as: children affect the decisions of parents This matter will change a lot in the country and the different classes Marketers need to constantly research about the specific form of each specific target market
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The role and status
¢ The role of an individual involves actions that the others expect them done ¢ The position is a measure of the importance that people attach to a role ¢ Role + status = position
Consumers often choose products that fit the role and position in society Marketers need to know the psychological needs in order to make the product suitable However, status can be changed according to social classes and geographic region
11.1.3.3 Individual
Customer behavior is also greatly influenced by individual factors with the following characteristics: age, gender, lifestyle, personality and career
Influence of gender on the behavior of purchase:
- Trends in gender: beside male and female, the gender tendency also indicate personal preferences
- The gender difference in purchasing behavior and consumer between man and woman often express different points in consumer behavior:
e Women make specific assessments, details about advertising message and decide based on attributes of the product, they see shopping as fun activities * Men who have the brain information processing selective targeting to the
overall theme and evaluation experience, they see going shopping as receiving the goods
» Lifestyle:
- Lifestyle is expressed through the activities, interests and opinions
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- Marketers need to study the lifestyle and improve our products to meet the needs of the general behavior
> Occupation: income, assets, savings, borrowing ability, also very much influence buying behavior, EX: when inflation increase, people are tightening spending
> Personality and perception about themselves:
- Personality is psychological characteristics and everyone has different, it affects consumer buying behavior
- Personality is often described by the definition as potent confidence, independence, respect, harmony properties, and secrecy and adaptable Personality can be a useful variable in the analysis of consumer behavior, because that can classify the type of personality and strong correlation between certain personality types with the selected product and brands
- Marketing research is needed to develop a brand image or responding to the self-image of the target market
11.1.3.4 Psychology
Psychology is all mental phenomena arising from the impact of the objective world and the brain, which the brain reflects Psychology attached, operating and adjusting all acts of human activity The selection of consumer purchasing is affected by four major psychological factors:
- Motivation derived from the demand itself
- Perception: the process of selection, arrangement and interpretation of information obtained
- Learning: changed behavior from experience - Beliefs and Attitudes: formed from learning
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Needs and motivations
Demand is an attribute of psychology It is the wishes and demands of human existence in a specified time period Depending on the circumstances of time that each person needs a different time, a number of demands from other biological factors wear stems from human psychology, during labor and learning, so that can be said that human needs does not stops
Depending on the urgent need or not that people will react to satisfy its interactive, once needs have been met they will not has engine consumer until the next demand The engine urges consumers to make decisions toward action Research engine helps us to identify the underlying motivation behind it, so can say demand is felt desirable to be satisfied, while the engine is to act to satisfy the demand
Awareness
Awareness of the human is a complex process; it undergoes the steps from reception to the refinement Not only is influenced from the outside environment, but also depends on the relationships within the human psyche the relationship between the psychological and the physical environment
Consumers are completely aware of their wishes and then they make a decision to act through analysis and evaluation of alternatives can satisfy needs, and be aware of their actions actually correspond to your needs or not When consumers have demand about goods and service That means the motivation has a maximum for a specific act of purchase
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Consumers can use the consumer experience in the past imposed on the current shopping habits Before a consumer product or service that people tend to seek the necessary information from various sources to support decision-making process Conversely shopping experience also urge consumers to use familiar products, it is also the factors restraining the development of new products and services That is why another greenhouse marketers to continually improve our products and our services Simultaneously knowledge also impact to behavior as knowledge about a product or service will affect buying decisions
Beliefs and Attitudes
Based on the understanding of the belief factors in the minds of consumers, marketers will capture the value of the brand, its brand in the consumer's mind to build the image, quality fitted closely with businesses to ensure consistency in consumer attitudes about products and services of them Beliefs and attitudes have a close relationship together They are governed by a factor of knowledge Knowledge of products and services will leave a certain experience in consumer psychology, thence they tend to believe in things that have ever used, and leave a good impression Once you have the confidence of consumers will shape the attitudes consistent with their values trust
Continuous improvement of scientific and technological equipment suitable for the development of the market and the increasing requirements of consumer From the practical demands, businesses, traders must constantly research the market to be able to conjecture, identification, assessment, planning to promote, propagate and build the products or services service and your business in the eyes of consumers Thence help businesses understand the reaction, the demand and consumption habits in order to gradually improve the quality of products and services while
HUTECH LIBRARY 21
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maintaining reasonable prices for all strata of the population, thereby increasing efficient operation of businesses contributing to the economic development of the country
11.1.4 Percentage of Internet users in Vietnam
The number of Internet users in Vietnam 32.100.000 36.000.000 40.000.000 22.729.887 — 26784035 30.000.000 20.000.000 10.000.000 0 2009 2010 2012 2014
Picture ÏI.L 1 The nưmbers 0ƒ Internet users in Vietnam
II.1.5 Online Purchase Behavior
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affirmed that shopping environments can affect consumers purchase behavior, as they obtain value from searching for goods or services in different store environments (Bloch, Sherrell, and Ridgway 1986) Online shopping behavior is defined as ‘‘a shopping activity performed by a consumer by means of computer based interface, where the consumer’s computer is connected to and can interact with a retailer’s digital storefront.’’(Haubl and Trifts, 2000) Consumers’ online shopping behavior is based on the manifestation of online seller website, the photos of products but not an actual real product (Lohse and Spiller 1998; Park and Kim 2003) Different studies has inspected different factors on consumers online shopping adoption, like geography and store accessibility (Farag et al 2006), perceived risk and online shopping benefits (Pires, Stanton, Eckford 2004), typology of online stores (Moe 2003), pleasure and web trust (Ha and Stoel 2009), attitudes to online shopping (Dittmar et al.; Ahn, Ryu, and Han 2007), and impact of consumers’ social-economic conditions (Farag et al 2006) The rapid development of internet and e-commerce has influenced the objective for 9 browsing and surfing the internet of consumers (Soopramanien and Robertson 2007) and collecting product information (Moe and Fader 2004) The purchase behavior of online consumers is different from those in traditional shopping environment (Alba, 1997)
11.1.6 Online Purchase Intention
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explains why people behave in different patterns taking into account their actions, defines self-efficacy as a person's belief in his ability to successfully perform a certain task (Bandura, 1977) SCT has been used before to study computer utilization and according toVenkatesh et al (2003) it can be used to study technology usage and acceptance Finally, to these three factors we embrace trust, which is the expectation of the customer that the retailer will perform in a certain ethical way - out of customer’s control (Ba and Pavlou, 2002) Although, trust is not needed for a customer to visit an online shop it is a highly important and critical factor that significantly affects attitude towards online shopping (Pavlou and Chai, 2002), as without it users will never perform online transactions (Palvia, 2009)
II.1.7 Perceived Benefits
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(Forsythe et al., 2006) Hedonic/enjoyment was defined as to do with the fun and excitement experience by trying new experiences, custom designing products, etc (Forsythe et al., 2006)
III.1.8 Online Shopping Orientations
¢ Quality Orientation
Quality is regarded as a key strategic component of competitive advantage and therefore the enhancement of product or service quality has been a matter of main concern to firms (Daniel, Reitsperger, and Gregson, 1995; Foster and Sjoblom, 1996) Garvin (1987) identifies five approaches to define quality: transcendent, product-based, user-based, manufacturing-based, and value-based Transcendent definition of quality is synonymous with innate excellence The assumption of transcendent approach is that quality is both absolute and universally recognizable The product-based approach has its roots in economics Garvin (1984) argues that differences in the quantity of some ingredients or attributes possessed by the product are considered to reflect differences in quality
Whereas in the user-based definition, quality is the extent to which a product or service meets or exceeds customers’ expectations The manufacturing-based approach has its roots in operation and production management Its quality is defined as conformance to specifications (Crosby, 1979) Quality of conformance relates to the degree to which a product meets certain design standards Besides, the value-based definition equates quality with performance at an acceptable price, or alternatively conformance at an acceptable cost The impact of quality orientation on online purchase intention is well documented in the extant literature Bellenger and Korgaonkar (1980) state that recreational shoppers tended to consider quality, variety of product types and pleasant store atmosphere as important factors when
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choosing stores In the context of web-shopping environment, Gehrt, et al (2007) discovered that customers from the shopping enjoyment segment are positively inclined toward recreation, quality, and impulse orientations when making online purchase
e Brand Orientation
A brand is defined as a name or symbol, trademark and package design that uniquely identifies the products or services of a retailer, and differentiates them from those of its competitors (Aaker, 1991) In the cyber marketplace, a corporate brand identity is a cognitive anchor and a point of recognition where customers perceive a great deal of uncertainty (Rajshekhar, Radulovich, Pendleton and Scherer, 2005) For many online retailers, the brand name is the company name In the e-commerce environment, trusted corporate and brand names are used by customers as substitutes for product information when they intent to make online purchase (Ward and Lee, 2000)
Several studies have found that brand loyalty exhibits strong impact on purchase intention in the traditional offline retailing world (Hawes and Lumpkin, 1984; Sproles and Kendall, 1986) A strong brand name not only attracts new customers, but also has the lock-in ability to make customers feel comfortable with their purchase decisions A study carried out by Jayawardhena, Wright and Dennis (2007) concludes that brand orientation is positively related to the customer online purchase intention
e Online Trust
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define trust as customers’ willingness to accept weakness in an online transaction based on their positive expectations regarding future online store behavior According to Barber (1983), trust is an expectation about individuals’ behavior within the society where they are living or by which they are ruled Trust can be bestowed upon a person, an object (product), an organization (a business), an institution (the government) or a role (a professional of some kind)
Trust plays a key role in creating satisfied and expected outcomes in online transaction (Pavlou, 2003; Yousafzai, Pallister, and Foxall, 2003; Gefen and Straub, 2004; Wu and Cheng, 2005; Flavian and Guinaliu, 2006) According to the McCole and Palmer (2001), online purchasing necessitates online customer trust Egger (2006) argues that sufficient trust needs to exist when placing an order online and when the customer submit his or her financial information and other personal data in undertaking financial transactions Gefen (2000) asserts that the present of trust will increase the consumers’ belief that the e-retailers will not engage in opportunistic behavior It has been demonstrated in the extant literature that trust beliefs positively influence customer online purchase intention (Verhagen, Meents, and Tan, 2006; Verhagen, Tan and Meents, 2004; McKnight, Choudhury and Kacmar, 2002; Lim, Sia, Lee and Benbasat, 2001; Jarvenpaa, Tractinsky, and Vitale, 1999) Jarvenpaa and Tractinsky (1999) and Gefen and Straub (2004) conclude that the higher the degrees of consumers’ trust, the higher degree of consumers’ purchase intentions of consumers
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(Janda, Trocchia, and Gwinner, 2002) Ernst and Young (cited in Lee and Turban, 2001) suggests that consumers may feel uncomfortable to release their personal information such as credit card and social security number through Internet because the consumers cannot physically check the quality of the products or monitor the safety and security of sending sensitive personal and financial information while shopping on the internet Kim and Shim (2002) emphasize that the personal awareness of security has the significant influence on consumer attitudes and online purchase intentions Chen and Barnes (2007) define privacy as the consumers’ trust about the performance of other party in the environment during the market transaction or consumption behavior Lee and Turban (2001) argue that high level of security and privacy in the online shopping experience has a positive effect on consumer trust due to the perceived risk involved in the information exchange Moreover, company reliability can influence the consumers’ online trust and purchase intention (Balasubramanian, Konana, and Menon, 2003; Koufaris and Hampton-Sosa, 2004) In the web-shopping environment, most consumers assume that the large companies have better ability to increase their online trust (Koufaris and Hampton-Sosa, 2004) It is also proposed that a company with positive reputation does increase the consumers’ trust (Doney and Cannon, 1997; Figueiredo, 2000)
e Prior Online Purchase Experience
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Prior experiences will strongly affect future behavior In the web-shopping context, customers evaluate their online purchase experiences in terms of perceptions regarding product information, form of payment, delivery terms, service offered, risk involved, privacy, security, personalization, visual appeal, navigation, entertainment and enjoyment (Burke, 2002; Parasuraman and Zinkhan, 2002; Mathwick, Malhotra, and Rigdon, 2001)
According to Elliot and Fowell (2000), customer experience with the Internet drives the growth of Internet shopping Shim and Drake (1990) argue that customers with strong online purchase intention in web shopping usually have prior purchase experiences that assist in reducing their uncertainties Therefore, customers will only purchase product from the Internet after they have already experienced them In additional, customers who have prior online purchase experience will be more likely to purchase through online than those who lack such experience Seckler (2000) explains this phenomenon that as individual gain experience with web- shopping, perhaps with small purchases at first, they will be more likely to develop confidence and skills that facilitate more ambitious buying through the Internet
Dabholkar (1994) asserts that when an individual has less prior knowledge of the problems encountered, behavioral choice is mostly depended on expectancy-value model Therefore, shoppers who have never done an online purchase before are more risk-averse than who have bought products through online means (Lee and Tan, 2003) If prior online purchase experiences resulted in satisfactory outcomes, this will lead customers to continue to shop on the Internet in the future (Shim, et al., 2001) Unfortunately, if these past experiences are evaluated negatively, customers will be reluctant to engage in online shopping in the future This explains the importance of turning existing Internet shoppers into repeat shoppers by
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providing them with satisfying online shopping experiences (Weber and Roehl,
1999)
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11.2.1 Theory of risk perception (TPR)
- In the theory of risk perception (TPR ), Bauer ( 1960 ) suggested that consumer behavior information technology products with risk perception , consists of two elements : ( | ) perceived risks relating to products / services and ( 2 ) risk perceptions related to online transactions Perceived Risk related online transactions SN Buying behavior Perceived Risk related a
products and services
Picture 11.2.1: Theory of risk perception TPR (Bauer, 1960)
- Composition risk perceptions related products and services: such as loss of feature, loss of financial, time-consuming, lost opportunity and risk awareness for all products / services
- Ingredients risk perceptions related to online transactions: the risks that may occur when consumers conducting transactions on the electronic media, Such as secret, confidentiality, security and risk perception of the entire
transaction
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11.2.2 Technology acceptance model (TAM)
Technology acceptance model (TAM) (Davis, 1986) explains the elements of the accepted general computer and the behavior of people using computers On the basis of the theory of TRA, TAM model examined the relationship and impact of related factors: trust, attitude, intention and behavior in the acceptance of information technology users Pertewed Usetuinets Atulướe Behavioral Actual taternal
var Toward Ingentagn to System Ung Use Use Peocerved Cane of Use
Picture II.2.2 Technology Acceptance model TAM (Davis, 1986)
II.2.3 Unified Theory of Acceptance and Use of Technology (UTAUT)
- Unified Theory of Acceptance and Use of Technology was launched by Venkateshand coworkers at 2003 This is essentially integrated model from the technology acceptance model before