Determinants of donation intention among young people

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT DETERMINANTS OF DONATION INTENTION AMONG YOUNG PEOPLE Student’s name PHAM NGOC HA ANH Hanoi - Year 2020 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT DETERMINANTS OF DONATION INTENTION AMONG YOUNG PEOPLE SUPERVISOR: Dr Doan Thu Trang STUDENT: Pham Ngoc Ha Anh STUDENT ID: 15071363 COHORT: IB2015G MAJOR: International Business Hanoi - Year 2020 LETTER OF DECLARATION I hereby declare that the Graduation Project “Determinants of donation intention among young people” is the results of my own research and has never been published in any work of others During the implementation process of this project, I have seriously taken research ethics; all findings of this projects are results of my own research and surveys; all references in this project are clearly cited according to regulations I take full responsibility for the fidelity of the number and data and other contents of my graduation project Hanoi, 25th May 2020 Student Pham Ngoc Ha Anh ACKNOWLEDGEMENT During the time of conducting this thesis, I received enthusiastic support, meaningful suggestions and comments from my supervisor, Dr Doan Thu Trang I would like to express my deep gratitude for that valuable help I sincerely thank all the lecturers of the Vietnam National University International School for gave me useful and practical knowledge During the four years of study, the lecturers taught me not only theory but also practical knowledge so that I could conduct this research I would like to express my thanks to all the respondents in pilot test and survey that spend their time to provide data With their help, I have sufficient data and information to the research Finally, I would like to express my sincere thanks to my family and friends for their support and encouragement during the research process so I can complete it Hanoi, 25th May 2020 Student Pham Ngoc Ha Anh TABLE OF CONTENT LIST OF FIGURE LIST OF TABLE ABSTRACT 10 CHAPTER 1: INTRODUCTION 11 1.1 Background 11 1.2 Donating activities in young 12 1.3 Research objectives .12 1.4 Research question 13 1.5 Research structure 13 CHAPTER 2: LITERATURE REVIEW 14 2.1 Donation 14 2.2 Donation intention .15 2.3 Donation in young people 16 CHAPTER 3: THEORETICAL BACKGROUND 18 3.1 Theory of Planned behavior 18 3.2 Attitude toward behavior .19 3.3 Subjective norm 20 3.4 Perceived behavior control 21 3.5 Key opinion leaders .21 3.6 Perceived misused of donation Error! Bookmark not defined 3.7 Final research model 23 CHAPTER 4: RESEARCH METHODOLOGY 25 4.1 Designing questionnaire 25 4.2 Sampling and data collection .28 4.3 Analyzing data plan .29 4.3.1 Reliability analysis by Cronbach’s alpha 31 4.3.2 Exploratory Factor Analysis – EFA 32 4.3.3 Regression analysis .34 4.3.4 Moderation analysis 34 CHAPTER 5: DATA PRESENTATIONS AND FINDING 38 5.1 Data description 38 5.2 Reliability analysis 44 5.2.1 Reliability of ATTITUDE-ATT scale 44 5.2.2 Reliability of SUBJECTIVE NORM-SN scale 45 5.2.3 Reliability of PERCEIVED BEHAVIOR CONTROL-PBC scale .46 5.2.4 Reliability of INTENTION-IT scale 47 5.2.5 Reliability of PERCEIVED MISUSED OF DONATION-NE scale 48 5.2.6 Reliability of KEY OPINION LEADERS-KOL scale .49 5.3 Exploratory factor analysis 50 5.3.1 Exploratory factor analysis of TPB scale 50 5.3.2 Exploratory factor analysis of Intention-IT scale .52 5.3.3 Regression analysis .53 5.4 Moderation analysis via PROCESS model 56 5.4.1 Moderation Analysis of Key opinion leaders - KOL and the relationship between ATT and IT 57 5.4.2 Moderation Analysis of Perceived misused of donation - NE and the relationship between ATT and IT 59 5.5 Hypothesis tested results .62 CHAPTER 6: RESULT DISCUSSION 64 6.1 Result discussions and implications 64 6.2 Contributions of the research .66 6.2.1 Theoretical contribution 66 6.2.2 Practical contribution 66 6.3 Limitations and future research direction 67 REFERENCES 69 APPENDIX 74 LIST OF FIGURE Figure Theory of Reasoned Action (Ajzen & Fishbein, 1975) 18 Figure Theory of Planned behavior (Ajzen, 1991) 19 Figure Research model 24 Figure Conceptual diagram of a simple moderation (Hayes, 2017) 35 Figure Statistical diagram of a simple moderation (Hayes, 2017) 36 Figure Gender Distribution 39 Figure Age distribution 40 Figure Occupation distribution 41 Figure Income distribution among 150 respondents 42 Figure 10 Frequency of donation 43 Figure 11 Proposed conceptual moderating effect of KOL 57 Figure 12 Statistical diagram with KOL moderates 58 Figure 13 Proposed conceptual moderating effect of NE 60 Figure 14 Statistical diagram with NE moderates the relation Between ATT and IT 61 LIST OF TABLE Table Measuring items for questionnaire 26 Table Likert scale of Agreement extent 27 Table Encoded terms for data testing 30 Table Guidelines for Identifying Significant Factor Loadings Based on Sample size 33 Table Descriptive Statistics 38 Table Reliability statistics of ATT scale 44 Table Reliability statistics of SN scale 45 Table Reliability statistics of PBC scale 46 Table Reliability statistics of IT scale 47 Table 10 Reliability statistics of NE scale 48 Table 11 Reliability statistics of KOL scale 49 Table 12 Exploratory factor analysis of TPB scale 50 Table 13 Exploratory factor analysis of IT scale 52 Table 14 Pearson correlation statistic 53 Table 15 Collinearity Statistics 54 Table 16 Regression analysis summary 55 Table 17 Regression analysis summary 2nd time 56 Table 18 Moderation analysis statistic for ATT*KOL 59 Table 19 Moderation analysis statistic for ATT*NE 62 Table 20 Hypotheses tested results 63 ABSTRACT Community contribution is important to help reduce the burden on the government Besides, non-government organizations are actively involved in charitable activities, that is meaningful contributions to social However, some organizations find it difficult to attract donors to participate in monetary donation The reason for those challenges is lack of understanding and knowledge of the target audience This study focuses on understanding the determinants that affect the donation intention among young people aged 18-25 based on the Theory of planned behavior Three factors that were used to measure the level of influence on the intention of behavior included attitude toward behavior, subjective norm, perceived behavior control In addition to the three original variables in Theory of planned behavior, the research model was extended with two new moderators variables which were key opinion leaders and Perceived misused of donation The study was conducted in Hanoi, where many universities are located and has the second largest population in Vietnam 150 responses were collected and analyzed by SPSS software The results show that attitude has a great impact on young people's intention to participate in monetary donation Besides, the relationship between attitudes and intentions will be stronger if there is additional positive effect from key opinion leaders 10 CHAPTER 6: RESULT DISCUSSION 6.1 Result discussions and implications This thesis examines the determinants affecting donating intention of Vietnamese young people aged 18-24 based on the theory of planned behavior extended with moderator variables The study was conducted with 150 observations in Hanoi The result indicates that attitude is the only factor among three TPB factors that impacts on young people's intention to donate KOL has an impact on the correlation of attitudes and behavioral intentions Previous studies have shown that the original TPB constructs are not sufficient to explain an individual's intention to behave Therefore, adding additional variables is necessary to deepen and reflect the real situation After considering the actual situation, the tendency of donation of Vietnamese people in general and young people in particular, the impact on young people's behavioral intention, KOL has been included as a moderator variable for the relationship between attention and donating intention Besides, perceived misused of donations are used to moderating the relationship between attitude, subjective norm and perceived behavior control with the intention of donating By examining the relationship between attitudes toward behavior, subjective norm, and perceived behavior control, behavioral intention can be predicted (Ajzen, 1991) According to the results of this study, attitude has a great influence on young people's intention to donate This is entirely consistent with previous studies Attitude is an individual's positive or negative feeling toward a behavior (Fishbein and Ajzen, 1975) People who has favorable attitude toward behavior tend to participate in donation (Smith, and McSweeney, 2007) On the other hand, it was found that subjective norm does not affect the intention of charitable giving The reason for this is probably because the influence of people around is not enough to motivate the young to donate Donation is a personal act, so individuals may be unsure of whether the people in the community are actually participating in the donation, or their level of charitable giving (Smith, 64 and McSweeney, 2007) Besides, Vietnam is collectivistic society (Hofstede Insights, 2020) Vietnamese are easily influenced by the surrounding community However, as the group of young people aged 18-25 is the least likely to participate in monetary donation, they may not realize the importance of giving money to the poor and the needy Therefore, the spread of donation behavior in peer groups is not enough to encourage the intention Perceived behavior control does not have significant relationship with donation intention It can be explained by the various method to help the underprivileged The two common ways to help people are monetary donation and volunteering According to Meier (2006), donating and volunteering have interchangeable relationship People can decide to give their time or money base on their resources and capabilities It is researched that determinants of charitable giving and volunteering are exclusive and time in volunteering can be referred as a limited resource with an opportunity cost (Yao, 2015) People in the age of 18 -25 usually have a lot of free time but not have financial stability Instead of charitable giving, this age group tends to participate in volunteer activities Joining in volunteer activities helps to kill the time with the same level of satisfaction of helping other people as monetary donation Moreover, volunteers not have to use their own money On the research of Duncan (1999), volunteer time and labor time which is paid by donation are considered substitutes Therefore, many young people decide to volunteering when they have opportunities instead of monetary donation This result is contrary to the author's initial hypothesis but completely consistent with the results in the previous study of Kashif and colleagues (2015) From analysis above, there is a significant impact of key opinion leaders to relationship between attitude toward donation and donating intention which means with the greater key opinion leaders impact, the positive relationship between attitude and donation intention will be strengthened This result shows that the influence of KOL on young people in Vietnam is very important 65 Perceived misused of donation does not have sufficient influence on the relationship between attitude and donating intention It can be explained that even though the charitable scams happen sometimes, it is not enough to change the attitude toward donation The media regularly propagates the meaning and good role of donations to society Besides, Vietnam has a tradition of helping each other that is passed down from generation to generation Helping people in need is mainstreamed into teaching in schools Therefore, in the view of young people, charitable scam is counted as a considering factor when making decision 6.2 Contributions of the research 6.2.1 Theoretical contribution This issue has not been extensively researched in previous studies in Vietnam Previous studies that conducted in Vietnam often focused on demographic issues only Therefore, it is not deepened into the intention behind the behavior of donors Each age groups have different ways of creating the donation intention According to the results of this research, young people's intention to donate is only influenced by one determinant among three determinants: attitude The more positive attitude toward donation an individual has, the stronger the intention to make the behavior is even though that person not have sufficient capacity and resources Besides, there are various model to explain charitable giving intention in the world, this study will contribute as an example of a valid model for further research with the similar concern Two moderator variables are meaningful in investigate the new effect that impacts on the relationship between TPB dependent variable and independent variables The significant effect of KOL variable is not only important in predicting donation intention but also indicating the influence of KOL to Vietnamese young people 6.2.2 Practical contribution 66 The charity organization can use this study in predicting the intention to donate of Vietnamese young people The study shows the importance of each factor and the degree of its influence By considering the important of determinants and moderating impact, the organization creates an appropriate marketing strategy to attract potential donors and focus on the important factors such as attitude Depending on the needs, charity organizations can use this study to determine whether the young people aged 18-25 are suitable to become their target audience For this target group, KOL should be used in promoting the charitable activities According to the research result, it is an important factor that impacts the relationship between attitude and donation intention which means the greater KOL is used in charitable activities, the more positive attitude the potential donors have toward the donation Therefore, organizations should use celebrity photos to motivate the potential donor's behavioral intent 6.3 Limitations and future research direction This research was conducted in Hanoi with the sample is limited to people living in Hanoi, therefore, it does not represent all young people across the country People in each region have different characteristics due to regional history and cultural Besides, differences in geographic location and cultures make a difference in awareness and behavior Future researches should expand the scope of research throughout the country Questionnaires were mainly sent to student, so 78% respondents of this research is student The large distance between amount of student observation and other occupation made thesis more inclined to study the determinants that influence students's donation intentions than the impact on young people aged 18-25 in general Sample size in the thesis only reached the minimum level for analysis According to Hair et al (2014), it is more acceptable if the observations in sample size are 10 times the number of items Thus, in further research, the number of observations should be increased to 230 to improve the generalization of the research 67 In this thesis, even though the demographic aspects are asked in the questionnaire, it has not been analyzed as variables In further research, it is advisable 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The determinants of charitable giving, volunteering, and their relationship Yong, A G., & Pearce, S (2013) A beginner’s guide to factor analysis: Focusing on exploratory factor analysis Tutorials in quantitative methods for psychology, 9(2), 79-94 Zubairi, F H., & Siddiqui, D A (2019) Factors Influencing Donation Behavior: The Role of Seasonal Effects 73 APPENDIX SURVEY ON DONATION INTENTION AMONG YOUNG PEOPLE Dear participants, My name is Pham Ngoc Ha Anh and I'm student of Vietnam National University – International School I'm now conducting a research on determinants of donation intention among young people as my graduate thesis The charitable donors here refer to people who have intention to donate physically to the poor and the needy The purpose of this study is to better understand the intentions of Vietnamese young people towards charitable donations The collected data will be used for research purpose only Therefore, I hope to receive your cooperation by fulfilling the form below I sincerely thank you for your great help Part I: Personal Information Age Gender Male Female Career field Computer & Technology Arts and Communications Management, Business, and Finance 74 Student Others: Income Under million VND/month - million VND/month - 10 million VND/month More than 10 million VND/month How many time have you donated before? Never - times - times More than times Part II Attitude toward the behavior No Item Strongly Disagree • Donating can make me feel happy 75 Disagree Neutral Agree Strongly Agree • It’s good to donate • I would like to my best to donate Subjective norm No Item Strongly Disagree Disagree Neutral Agree Strongly Agree • My family encourages me to donate • My colleagues think that I should donate • My friends expect me to donate Perceived behavioral control No Item Strongly Disagree • If I wanted to, I could easily donate • It is mostly up to me whether I donate • I am confident that I will be able to donate 76 Disagree Neutral Agree Strongly Agree Key opinion leaders No Item Strongly Disagree Disagree Neutral Agree Disagree Neutral Agree Strongly Agree • Blogger's post inspires me to donate • Celebrities's call for donation encourages me to follow • Celebrities's donation motives me to follow Perceived misused of donation No Item Strongly Disagree • I am afraid that my donation will be used for wrong purpose • I am afraid that fundraiser can use the label of donation to cheat people • I am afraid that my donation is not totally given to the people in need • I am afraid that people received donation will rely 77 Strongly Agree on kindness of people instead of working properly Intention No Item • I have an intention to donate • I plan to donate actively in Strongly Disagree the near future • I have an intention to donate if I have a chance to so • I plan to attend a donation program in the near future 78 Disagree Neutral Agree Strongly Agree ... Business Hanoi - Year 2020 LETTER OF DECLARATION I hereby declare that the Graduation Project ? ?Determinants of donation intention among young people? ?? is the results of my own research and has never... and donation intention will be strengthened 3.6 Perceived misused of donation One of the obstacles for donors to donation is the dark side of using their donations Charities should be aware of. .. label of donation to cheat people 15 NE • I am afraid that my donation is not totally given to the people in need 16 NE • I am afraid that people received donation will rely on kindness of people