Influence of promotion on consumer purchasing decision of un899(dinch) at upc technology corporation in vietnam market

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYEN THE ANH INFLUENCE OF PROMOTION ON CONSUMER PURCHASING DECISION OF UN899 (DINCH) AT UPC TECHNOLOGY CORPORATION IN VIETNAM MARKET MASTER THESIS OF COMMERCE Ho Chi Minh City – 2020 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYEN THE ANH INFLUENCE OF PROMOTION ON CONSUMER PURCHASING DECISION OF UN899 (DINCH) AT UPC TECHNOLOGY CORPORATION IN VIETNAM MARKET Major: International Business (Coursework) Major Code: 8340121 MASTER THESIS OF COMMERCE Supervisor: Dr Dinh Tien Minh Ho Chi Minh City –2020 DECLARATION I hereby formally declare that the research titled “Influence of Promotion on Consumer Purchasing Decision of UN899(DINCH) at UPC Technology Corporation in Vietnam Market” is my original dissertation I myself shall hold responsibility for plagiarism, if any, detected afterwards The data, information and analysis results that have been collected for this research is reliable and honest Ho Chi Minh City, August 14th, 2020 The Author Nguyen The Anh CONTENT Declaration Table of Content Acronyms and symbols List of tables List of figures Abstract CHAPTER INTRODUCTION 1.1 Problem statement 1.3 Research methodology 1.4 Object and scope of study 1.5 Significance of the study 1.6 Structure of the research CHAPTER LITERATURE REVIEW 2.1 Concept of promotion 2.1.1 Promotion and an enterprise 2.1.2 Promotion and consumers 2.1.3 Promotion and society 2.1.4 Types of promotional activities 2.2 2.1.4.1 Advertising 2.1.4.2 Sales promotion 2.1.4.3 Direct marketing 2.1.4.4 Personal selling 2.1.4.5 Publicity/Pubic Relation 2.1.4.6 Industrial products and consumers’ purchase decision Overview of UPC Technology Corporation (UPC) 11 2.2.1 UPC Profile 11 2.2.2 Vision and mission of UPC 13 2.2.3 Market share and revenue of UPC in 2017-2019 14 2.2.3.1 Market and sales overview 14 2.2.3.2 The market share: 14 2.2.3.3 Business operation and market share of UPC in Vietnam 14 2.3 Referential models and proposal research model 17 2.3.1 Referential models 17 2.3.2 Proposal research model 21 Chapter summary 22 CHAPTER RESEARCH DESIGN 24 3.1 Research methods 24 3.1.1 3.1.2 3.2 Qualitative research 24 Quantitative research 27 3.1.2.1 Sample size 27 3.1.2.2 Research process summary 28 Research framework 29 3.2.1 Research Procedure 29 3.2.2 Measurement of official scales 30 Chapter summary 35 CHAPTER RESEARCH RESULTS 36 4.1 Sample characteristics 36 4.2 Reliability check 38 4.3 Exploratory factor analysis (EFA) 46 Chapter summary 58 CHAPTER MANAGERIAL IMPLICATIONS 59 5.1 Findings 59 5.2 Managerial implications 59 5.2.1 Sales promotion activities 59 5.2.2 Direct marketing activities 60 5.2.3 Personal selling activities 60 5.2.4 Public relations activities 61 5.3 Limitations and suggestion for future research 62 5.3.1 Limitations 62 5.3.2 Suggestion for future research 63 REFERENCES APPENDIXES ACRONYMS AND SYMBOLS Abbreviations Definitions ASEAN Association of Southeast Asian Nations CRM DM Cause-Related Marketing Direct Marketing EFA Exploratory Factor Analysis PD Purchase Decision Ph.D Doctor of philosophy PR Public Relations Pro Professor PS Personal Selling PVC SNS Polyvinyl Chloride Social Networking Site SP Sales Promotion SPSS Statistical Package for the Social Sciences (A software specialized in statistical analysis produced by SPSS Inc., it was acquired by IBM in 2009 UPC UPC Technology Corporation VPA Vietnam Plastic Association WOM Word of Mouth Marketing List of tables Table 2.1 UPC Group Revenue (2017-2019) 14 Table 2.2 Revenue in Vietnam market (2017-2019) 15 Table 2.3 Summary of referential models 22 Table 3.1 Research process summary 28 Table 3.2 Measurement scales 30 Table 4.1 Reliability summary 39 Table 4.2 First Cronbach’s alpha reliability check of Direct Marketing 39 Table 4.3 Second Cronbach’s alpha reliability check of Direct Marketing 40 Table 4.4 Cronbach’s alpha reliability check of Personal Selling 41 Table 4.5 First Cronbach’s alpha reliability check of Sales Promotion 42 Table 4.6 Second Cronbach’s alpha reliability check of Sales Promotion 43 Table 4.7 First Cronbach’s alpha reliability check of Public Relation 44 Table 4.8 Second Cronbach’s alpha reliability check of Public Relation 44 Table 4.9 First Cronbach’s alpha reliability check of Purchasing Decision 45 Table 4.10 Second Cronbach’s alpha reliability check of Purchasing Decision 45 Table 4.11 First EFA result 46 Table 4.12 The second EFA result 48 Table 4.13 First Results of Multiple Regression Analysis 50 Table 4.14 Second Results of Multiple Regression Analysis 53 Table 4.15 Descriptive Statistics 55 Table 4.16 Mean of direct marketing and sales promotion 56 Table 4.17 Mean of personal selling and public relations 57 List of figures Figure 2.1 Industrial goods classification 10 Figure 2.2 UPC Group Organization 12 Figure 2.3 UN899 products and applications 13 Figure 2.4 UN899 production capacity 13 Figure 2.5 DOP market share 15 Figure 2.6 DINP market share 16 Figure 2.7 DINCH/UN899 market share in Vietnam 16 Figure 2.8 The Role of Advertising in Consumer 18 Figure 2.9 Impact of Sales Promotion Tools on Consumer’s Purchase Decision Research Model 19 Figure 2.10 The Impacts of Direct Marketing on Consumers’ Purchasing 20 Figure 2.11 The effect of promotion mix dimensions on Consumers’ Purchasing decision 20 Figure 2.12 Theoretical Framework 21 Figure 3.1 Research Framework 29 Figure 4.1 Industrial sectors chart 36 Figure 4.2 Annual revenue of enterprises 37 Figure 4.3 Work experience 37 Figure 4.4 Known and used UN899(DINCH) timeline 38 ABSTRACT The research is to find out the influence of four independent variables on dependent variable –costumer purchase decision, which are direct marketing, personal sales, sales promotion, and public relations Another word, promotional activities that influence on consumer purchase decision of UN899(DINCH) at UPC Technology Corporation (UPC) The survey was conducted with 200 respondents who are UPC’ clients Promotion is one of important components in the marketing mix Multiple regression came out to point out which promotional tool had strongly influence on consumer purchase decision on UN899(DINCH) The research has been proceeded by quantitative and qualitative methods; results came out the two determinants were direct marketing and sales promotion significantly influenced on consumer purchase decision of UN899(DINCH) The other two determinants were personal selling and public relations did not impact on consumer purchase decision of UN899(DINCH) at UPC in Vietnam market as proposed hypothesizes for the study, whereas these two tools play very important role in reality; therefore, they need verifying or are a foundation for future research Nevertheless, the study reveals the managerial implication for UPC mangers or sales, and marketing department or promotional improvement of UN899(DINCH) at UPC in Vietnam Keywords: Influence of promotion, purchasing decision, UN899(DINCH), UPC Technology Corporation Kinh nghiệm: a Dưới năm b 1-2 năm c 3-5 năm d năm trở lên Công ty Anh/Chị đã biết và sử dụng dầu dẻo non-phthalate / DINCH bao lâu? a Dưới năm b 1-2 năm c 3-5 năm d năm trở lên II NỘI DUNG CÂ U HỎI CHÍNH Tiếp thị trực tiếp DM1 Khi tình cờ truy cập trang Web của UPC khiến tơi/chúng tơi quan tâm sản phẩm và qút định tìm hiểu và mua sản phẩm UN899(DINCH) DM2 Tôi/ chúng đã nhận email và biểu đồng ý Hoàn toàn Đồng ý Bình thường đờng ý Khơng khơng đờng ý Hoàn toàn Anh/ Chị vui lòng cho biết mức độ đồng ý với các phát biểu sau bằng cách khoanh tròn các số tương ứng với phát biểu đó Phát biểu 5 mẫu tiếp thị sản phẩm ở công ty chúng DM3 Tôi/chúng có nhận thư và tin nhắn tiếp thị về sản phẩm mới và sự hỗ trợ từ phòng R&D của UPC DM4 Tôi/chúng được biết sản phẩm UN899(DINCH) qua nguồn tin bạn bè và đối tác DM5 Tôi/chúng hoàn toàn được cung cấp đầy đủ thông tin về sản phẩm mỗi truy cập Website của UPC DM6 Tôi/chúng đã mua sản phẩm UPC tìm sản phẩm cho cơng ty qua mạng (Ví dụ: từ khóa chính về sản phẩm cơng cụ tìm kiếm google) Bán hàng cá nhân PS1 Nhân viên bán hàng của UPC thân thiện, nhiệt tình và giao tiếp rất cởi mở chào bán sản phẩm PS2 Tôi/ chúng đều nhận được giải đáp thắc mắc từ nhân viên bán hàng của UPC 5 5 5 PS3 Nhân viên bán hàng UPC cung cấp đầy đủ thông tin về sản phẩm tôi/chúng cần PS4 Tôi/chúng đánh giá cao về kỹ và nghiệp vụ bán hàng của nhân viên UPC PS5 Thông tin cung cấp từ nhân viên bán hàng UPC giúp tôi/chúng hiểu rõ về sản phẩm và đưa quyết định chọn mua sản phẩm từ UPC PS6 Tôi/ chúng sẵn sàng chọn mua sản phẩm của UPC được thút trình và mơ phỏng chi tiết về sản phẩm Khuyến mãi SP1 Việc chạy chương trình khuyến mãi đặc biệt của UPC làm hứng thú đến việc chọn lựa mua sản phẩm SP2 Việc đầu tư sở vật chất, chính sách tài trợ từ nhà cung ứng sẽ khuyến khích việc mua hàng lâu dài đến công ty chúng (Ví dụ: bồn bể, máy móc, ) SP3 Công ty chúng được chính sách 5 5 5 toán ưu đãi nếu hợp tác lâu dài với UPC ( Ví dụ: trả chậm 30 ngày, toán DP, LC trả chậm 90 ngày…) SP4 Được tài trợ du lịch nước ngoài và tham quan nhà máy UPC nếu mua sản phẩm của UPC SP5 Việc giảm giá cho khách hàng trung thành sẽ kích thích việc mua hàng thường xuyên SP6 Tôi/ chúng sẽ mua hàng UPC nhiều nếu có chương trình ưu đãi cho doanh nghiệp chúng tơi Quan hệ công chúng PR1 UPC được biết đến với doanh nghiệp tham gia nhiều hoạt động từ thiện xã hội PR2 Việc trưng bày và triển lãm sản phẩm tại hội trợ ảnh hưởng đến việc chọn lựa sản phẩm non-phthalate UN899 (DINCH) PR3 UPC lắng nghe và tiếp nhận sự chỉ trích và phản hồi khách hàng bằng sự tế nhị và hòa nhã PR4 Công ty UPC đặt niềm tin và sự 5 5 5 phát triển bền vững với sản phẩm nonphthalate UN899(DINCH) PR5 So với nhà cung ứng khác, giá thành UPC hợp lý và chất lượng lại đảm bảo PR6 Tôi/ chúng nhận được lời mời tham dự buổi mắt sản phẩm mới từ UPC Quyết định mua hàng PD1 Tôi/ chúng chọn mua UN899 (DINCH) của UPC giá thành cạnh tranh PD2 Tơi/ chúng tơi chọn mua UN899 (DINCH) của UPC điều kiện về toán và điều khoản giao hàng hợp lí PD3 Việc chọn lựa mua sản phẩm UN899(DINCH) từ UPC mong muốn chất lượng sẽ tốt và đảm bảo chất lượng sản phẩm khác đã dùng từ UPC PD4 Tôi/ chúng tơi chọn mua hàng UPC mong ḿn sự hợp tác lâu dài và chính sách ưu đãi cho công ty chúng PD5 Tôi/ chúng chỉ chọn mua sản 5 5 5 phẩm của UPC khách hàng yêu cầu và chỉ định của khách hàng chúng về nguyên liệu sản xuất PD6 Tơi/ chúng tơi chọn mua UN899(DINCH) mục đích sức khỏe người tiêu dùng PD7 Việc đa dạng về sản phẩm UPC giúp chúng dễ dàng quyết định mua hàng Trân trọng và cảm ơn thời gian quý báo của Anh/ Chị! 5  English version Dear Mr / Ms., My full name is Nguyen The Anh, who has been studying Master of International Business at University of Economics Ho Chi Minh city I have been making the research of “Influence of promotion on consumer purchasing decision of UN899(DINCH) at UPC Technology Corporation in Vietnam market” It makes sure that all information provided from respondents will be kept confidential and used for research purposes only All of your responses should be very helpful for my research and important information for full-filled completed and successful research I expect to get kind help from Mr / Ms with great appreciation! I BACKGROUND INFORMATION Company name: Industrial sector: a PVC compounds/coatings b PVC hoses/wire and cable c PVC medical goods/gloves d PVC film/synthetics/ banners e PVC shoes/ shoes components/ synthetic rubbers f Others Company’s annual revenue: a million USD below b 3-5 million USD c 5-10 million USD d 10 million USD above Work experience: a Under year b 1-2 years c 3-5 years d years above How long have your company known or used non-phthalate plasticizers/ DINCH? a Under year b 1-2 years c 3-5 years d years above II DETAILED QUESTIONS Kindly tick the spaces provided to show your level of agreement to the statements relating to promotional activities impacting on consumer purchase decisions Use a scale of 1-5, where 1- Strongly disagree, 2- Disagree, 3- Neutral, 4- Agree, 5Strongly agree Direct Marketing Agree Strongly Agree Neutral Disagree disagree Strongly Please circle one of five numbers to show your level of agreement or disagreement with the statements Statements DM1 Once visiting UPC’s website by chance, it leads to me/us to find out and decide to purchase UN899(DINCH) DM2 I/we have got email of UN899 introduction and brochure in my office DM3 I/we have got email or messages of UPC new products and R&D technology support DM4 I/we have got to know UPC new products via partners and friends DM5 I/we could get complete information of UPC’s products once visiting UPC company website DM6 I/we purchase a product of UPC after finding out the product on the internet (E.g., key word on google) Personal selling 5 5 5 PS1 UPC sales staff are gentle and kind communication to offer products PS2 I/we have got most feedback and concern when 5 sending questions to UPC sales staff PS3 UPC sales staff provide all information of products that I/we require PS4 I/we highly appraise the specialized and professional skills of UPC sales staff PS5.Information provided from UPC sales staff increase my/our level of understanding and highly influence in purchasing decision PS6.I am/we are likely to purchase a product after seeing demonstration of the product being used Sales promotion SP1 Special discount promo makes me/us interest in purchasing UPC goods SP2 Investment of physical facility from materials suppliers which stimulates our choosing long term partners (E.g., storage tanks, machine, etc.) SP3 I/we have got special payment term by being UPC’s long 5 5 5 term partner (E.g., TT30, DP, LC90, etc.) SP4 Free “overseas tour and visit factory site tour” for partners who have been purchasing UPC’s goods SP5 Loyalty discount stimulate and encourage my/our regular purchase habit SP6 I/we purchase UPC’s products more often if there are more promotions or special favored policy to my/our enterprise Public Relations PR1 UPC company has been known as a social business with strongly charity contribution PR2 Trade exhibitions of UPC has high degree of influence on choosing non-phthalate materials –UN899 (DINCH) PR3 UPC company accepting clients’ complaints or criticism and response softly PR4 UPC is looking forward to sustainable 5 5 5 development with trusted nonphthalate plasticizers UN899(DINCH) PR5 Comparing with other suppliers, UPC provides me/us reasonable price with good quality PR6 I/we always get the information from UPC when launching new product Purchase decision PD1 I/we decide to purchase UN899(DINCH) for competitive price PD2 I/we choose UN899(DINCH) for good delivery time and payment term PD3 My/our expectation UN899(DINCH) that I/we get from UPC is the same as a result I/we satisfied by the product PD4 I/we entrust and choose UPC’s goods to build up close business relationship for special policy and warranty PD5 I/we only buy UPC’s good when our customers appoint UPC’ materials 5 5 5 PD6 I/ We decided to purchase UN899(DINCH) as non-phthalate materials and safe for body-contacted one PD7 Types of products that I/we want are available in UPC 5 Thank you very much for your valued contribution and co-operation! APPENDIX DESCRIPTIVE STATISTICS Industrial sector Frequency Percent Valid Percent Cumulative Percent PVC compounds/coatings 52 26.0 26.0 26.0 PVC hoses/wire and cable 57 28.5 28.5 54.5 PVC medical goods/gloves 12 6.0 6.0 60.5 Valid PVC film/synthetics/ banners 29 14.5 14.5 75.0 PVC shoes/ shoes components/ synthetic rubbers 23 11.5 11.5 86.5 Others 27 13.5 13.5 100.0 Total 200 100.0 100.0 Annual-revenue of enterprises Frequency Percent Valid Percent million below USD 3-5 million USD Valid 5-10 million USD 10 million above Total USD Cumulative Percent 35 17.5 17.5 17.5 89 44.5 44.5 62.0 56 28.0 28.0 90.0 20 10.0 10.0 100.0 200 100.0 100.0 Work-Experienced Frequency Percent Valid Percent Under year Cumulative Percent 3.0 3.0 3.0 1-2 years 43 21.5 21.5 24.5 3-5 years 101 50.5 50.5 75.0 50 25.0 25.0 100.0 Total 200 100.0 Knowledge of UN899(DINCH) 100.0 Valid years above Frequency Percent Valid Percent Cumulative Percent Under year 72 36.0 36.0 36.0 1-2 years 45 22.5 22.5 58.5 Valid 3-5 years 55 27.5 27.5 86.0 28 14.0 14.0 100.0 200 100.0 100.0 years above Total ...MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYEN THE ANH INFLUENCE OF PROMOTION ON CONSUMER PURCHASING DECISION OF UN899 (DINCH) AT UPC TECHNOLOGY CORPORATION. .. been in charge in Vietnam market decided to make the research ? ?Influence of Promotion on Consumer Purchasing Decision on UN899(DINCH) at UPC Technology Corporation in Vietnam Market? ?? is expecting... or promotional improvement of UN899(DINCH) at UPC in Vietnam Keywords: Influence of promotion, purchasing decision, UN899(DINCH), UPC Technology Corporation CHAPTER INTRODUCTION 1.1 Problem statement