Customer engagement with retail brands on facebook an empirical study in ho chi minh city

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN NGOC TRAM ANH CUSTOMER ENGAGEMENT WITH RETAIL BRANDS ON FACEBOOK : AN EMPIRICAL STUDY IN HO CHI MINH CITY BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 HO CHI MINH CITY, 2019 MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN NGOC TRAM ANH CUSTOMER ENGAGEMENT WITH RETAIL BRANDS ON FACEBOOK : AN EMPIRICAL STUDY IN HO CHI MINH CITY BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR PHAM HUONG DIEN, Ph.D HO CHI MINH CITY, 2019 TÓM TẮT Trong năm trở lại đây, việc sử dụng mạng xã hội đặc biệt Facebook ngày sôi đa dạng Ngồi mục đích để giải trí, giao tiếp Facebook cịn xem cơng cụ đắc lực cho nhà bán lẻ dùng quảng bá kết nối với khách hàng họ Với nhiều tính vượt trội, Facebook cho phép doanh nghiệp bán lẻ tạo dựng riêng cho trang Fanpages Nhưng việc thu hút khách hàng ý tham gia vào Fanpages chuyện dễ dàng Bài nghiên cứu muốn kiểm tra yếu tố ảnh hưởng đến tham gia khách hàng khu vực Thành phố Hồ Chí Minh với trang Fanpages nhà bán lẻ mức độ tác động chúng Dữ liệu thức nghiên cứu thu thập từ 305 khảo sát Các phương pháp sử dụng Thống kê mơ tả, Phân tích độ tin cậy Cronbach’s Alpha, Phân tích nhân tố khám phá EFA, Phân tích nhân tố khẳng định CFA, Phân tích mơ hình phương trình cấu trúc (SEM) với hỗ trợ phần mềm SPSS 23 AMOS 24 Mơ hình ban đầu bao gồm biến độc lập Giao tiếp ngang hàng (PC), Nhận thức hữu ích (PU), Sự hưởng thụ (EN), Khả tương thích (CO), Sự tín nhiệm (CR); biến trung gian Thái Độ (AT), Ý định (IN); biến phụ thuộc Sự tham gia khách hàng (CE) Kết phân tích cho thấy có biến nhận thấy khơng có ảnh hưởng đến thái độ Nhận thức hữu ích (PU) Sự hưởng thụ (EN) biến lại Giao tiếp ngang hàng (PC), Khả tương thích (CO), Sự tín nhiệm (CR) có ảnh hưởng đến thái độ tất biến tác động cách tích cực Cụ thể, biến Giao tiếp ngang hàng (PC) có tác động lớn đến mơ hình, Khả tương thích (CO), cuối Sự tín nhiệm (CR) Dựa kết này, tác giả đưa số khuyến nghị giải pháp cụ thể cho nhà bán lẻ Từ khóa: Sự tham gia khách hàng, Truyền thông xã hội, Thái độ, Ý định, Sự gắn kết thương hiệu khách hàng ABSTRACT It can be seen that in recent years, the use of social networking sites such as Facebook , Zalo, Instagram, Youtube, etc has become more popular not only among young people but also adults over 40 and children under 18 years old Among those social networking sites, Facebook is considered to be the page with the highest number of users and has been increasing continuously over the years In addition to entertain and to connect with friends, Facebook is also an effective tool for retailers to advertise and connect with their customers With many outstanding features, Facebook allows retail firms to create their own Fanpages to introduce products / services, events and above all to communicate with their customers However, attracting customers attention and participation into the Fanpages is not easy This paper aims to examine what factors influence customer engagement on retailers' Fanpages and their impact magnitudes The study was conducted in Ho Chi Minh City because this is a place with a larger number of Facebook users and more developed than other regions in Vietnam so there will be more opportunities to access new technology The study's survey subjects are Facebook users residing in Ho Chi Minh City and have had at least one interaction on a Fanpage of a certain retail brand The research methods used to test the model are qualitative and quantitative methods First, the author applies qualitative methods to build scales and research models through the reference and inheritance of previous theories and related research In this study, the author mainly inherited the research model of the two authors, Constanza Bianchi and Lynda Andrew (2017) with the title: "Consumer engagement with retail firms through social media: An empirical study in Chile" At the same time, based on a combination of The Theory of Reasoned Action (TRA) model proposed by Fishbein & Ajen (1975) and The Technology Acceptance Model (TAM) (Davis, 1989), the author has some adjustments to fit the research goals and the context in Ho Chi Minh City In particular, the object that the author wants to study is customer engagement behaviour and based on The Theory of Reasoned Action (TRA), the intention will lead to behaviour Therefore, the author replaced the dependent variable Intention to purchase in the model of Bianchi and Andrew (2017) into the variable Customer engagement The original model consisted of independent variables: Perceived usefulness (PU), Compatibility (CO), Enjoyment (EN), Credibility (CR), Peer communication (PC); mediator variables are Attitude (AT), Intention (IN); one dependent variable is Consumers engagement (CE) Specifically, the scale of Perceived usefulness (PU), Compatibility (CO), Enjoyment (EN), Credibility (CR), Peer communication (PC) was inherited from the study of Constanza Bianchi, Lynda Andrew (2017) but with the adjustment of the words to suit the user in Ho Chi Minh City The scale of Consumers engagement (CE) is inherited from the results of a group of four authors including Paul Harrigan, Uwana Evers, Morgan Miles and Timothy Daly (2017) with the title " Customer engagement with tourism social media brands" Based on the theoretical references and inheritance, the author made hypotheses about the relationship between variables A total of hypotheses have been proposed: All five independent variables Perceived usefulness (PU), Compatibility (CO), Enjoyment (EN), Credibility (CR), Peer communication (PC) are all assumed to have a positive effect on Attitude (AT); the 6th hypothesis is that Attitude (AT) has a positive influence Intention (IN); the final hypotheses is that Intention (IN) will positively impact Consumers engagement (CE) behaviour After developing the scales for important variables and formulating the hypotheses, the preliminary questionnaire will be based on the research objectives and scales mentioned, and will be pre-tested with a sample of 20 people, resulting in small changes in the expression to improve meaning After the preliminary survey, the final versions will be sent to the survey participants, including parts: Part is the general information section, Part is the statistical information section, Part is to examine the factors The research uses Likert scale at levels: (1) Strongly disagree, (2) Disagree, (3) Neutral, (4) Agree and (5) Strongly agree To collect data, research using Google form tools to create e-surveys and send them to the Mesgenger of users on Facebook After one month, 323 survey samples were completed but 18 samples did not meet the requirements of the study After that, the author kept 305 cases for data analysis Next, the main quantitative methods used to analyze the data in this study are Descriptive analysis to summarize features of a collection of information; Cronbach’s Alpha to assess the reliability of the scale used to measure concepts; Exploratory Factor Analysis (EFA) to discover how many major factors are included in the total number of variables; Confirmatory Factor Analysis (CFA) to confirm the univariate, multivariate, convergent and discriminant values of the scale, Structural Equation Modeling (SEM) to assess unobservable 'latent' constructs with the support of SPSS version 23 and AMOS version 24 software The survey results show that the proportion of female respondents is higher than that of men with average age around 28 years old Most of the respondents are single (never married), have no children and are at university level (bachelor) Most of them are students who earn to 10 million per month They spend on average 35 million vnd per month Most of the respondents chose Facebook as social networking site used the most All of the respondents had previously participated at least once with a retail Fanpages However, most of them only occasionally interact, engage with Fanpages Based on the results of the data analysis, out of all independent variables used in the model, variables found to have no effect on the Attitude (AT) are Perceived usefulness (PU) and Enjoyment (EN) Inferred, there are two rejected hypotheses, the 3rd and 5th hypotheses of variables Perceived usefulness (PU) and Enjoyment (EN) This unanticipated finding implies that Fanpages can be perceived to make it easier for users to find information, trade faster, but not necessarily lead to a positive attitude towards engagement with retail brands Besides, this result also shows that the enjoyment is not an important factor affecting the attitude towards engaging with retail brands Although in many previous studies on attitudes, enjoyment has an important influence, especially attitudes toward media use But for this study, it is clear that enjoyment is not enough to create a positive attitude towards engaging with retail brands through Fanpages On the contrary, the remaining variables are Peer Communication (PC), Compatibility (CO), Credibility (CR) that affect Attitude (AT) to participation and all variables influence a positive way Specifically, the variable Peer Communication (PC) has the greatest impact on the model, followed by Compatibility (CO), and finally Credibility (CR) Based on these results, the author also gives some recommendations and specific solutions for retailers on Facebook to improve the attitude towards interaction on Fanpages In particular, the author notes that retailers should focus more on creating an environment of communication between customers and customers, while focusing on understanding the needs and personal characteristics of potentials customer groups in parallel with building trust, creating credibility to help customers stay longer with the brand In the future, researchers can carry out a similar study using samples drawn from more representative populations, considering exploring additional demographic or fish factors Other actors may play an executive role to explain consumer brand cohesion behaviour Researchers can also study customer engagement on other social networking sites like Google, Youtube, Twitter and Instagram Key words: Customer engagement, Social Media, Attitude, Intention, Customer Participation DECLARATION OF AUTHENTICITY This thesis is the author's own research, the research results are honest, in which there is no previously published content or the content done by others except the citations cited full source in the thesis Ho Chi Minh City, November 2019 Nguyen Ngoc Tram Anh ACKNOWLEDGEMENT Firstly, I would like to express my sincerest and deepest thankfulness to Ms.Pham Huong Dien, Ph.D for her guidance and patience in giving me valuable recommendations during my study period I am really happy and fortunate to carry out this study under her supervision Secondly, I would like to send my profound gratitude to all of the lecturers in Business Administration Department and also in Office of Academic Affairs during a period of studying for a Bachelor Degree at Banking University of Vietnam Lastly, I would like to thank my family for their support during my study and during my life Without whose encouragement and sacrifice, I would not have finished this thesis, so I express my special love and gratitude to them Ho Chi Minh City, November 2019 Nguyen Ngoc Tram Anh TABLE OF CONTENTS TÓM TẮT ABSTRACT DECLARATION OF AUTHENTICITY ACKNOWLEDGEMENT TABLE OF CONTENTS LIST OF ABBREVIATIONS 11 LIST OF TABLES 12 LIST OF FIGURES 13 CHAPTER INTRODUCTION 14 1.1 THE IMPORTANCE OF RESEARCH 14 1.2 OBJECTIVES AND RESEARCH QUESTIONS 16 1.3 SUBJECTS AND SCOPES OF THE STUDY .17 1.4 THE RESEARCH METHODOLOGY 17 1.5 CONTRIBUTIONS OF RESEARCH 18 1.6 THESIS STRUCTURE 18 CONCLUSION OF CHAPTER 19 CHAPTER LITERATURE REVIEW 20 2.1 IMPORTANT CONCEPTS 20 2.1.1 Customer engagement 20 2.1.2 Intention 21 2.1.3 Attitude 22 2.1.4 Facebook marketing 23 2.2 THEORETICAL MODELS 23 109 Pattern Matrixa Factor IN2 IN1 IN3 CR3 CR1 CR2 PC4 PC2 PC1 PC3 CE2 CE1 CE3 CO3 CO1 CO2 EN1 EN2 EN3 PU1 PU2 PU3 AT3 AT2 AT1 919 753 688 819 781 731 758 735 646 496 819 813 661 838 779 578 Extraction Method: Principal Axis Factoring Rotation Method: Promax with Kaiser Normalization.a a Rotation converged in iterations .815 780 595 829 656 644 859 660 656 110 Structure Matrix Factor IN2 IN3 IN1 CR3 CR1 CR2 PC4 PC2 PC1 PC3 CE2 CE1 CE3 CO3 CO1 CO2 EN1 EN2 EN3 PU1 PU3 PU2 AT3 AT1 AT2 899 773 713 831 784 723 744 707 694 507 817 804 676 825 778 618 Extraction Method: Principal Axis Factoring Rotation Method: Promax with Kaiser Normalization .814 776 609 791 687 662 849 711 667 111 Factor Correlation Matrix Factor 1.000 155 -.005 150 006 055 282 330 155 1.000 -.006 012 176 161 -.054 269 -.005 -.006 1.000 -.083 -.020 178 -.102 322 150 012 -.083 1.000 032 -.091 086 236 006 176 -.020 032 1.000 070 -.023 356 055 161 178 -.091 070 1.000 -.175 132 282 -.054 -.102 086 -.023 -.175 1.000 061 330 269 322 236 356 132 061 1.000 Extraction Method: Principal Axis Factoring Rotation Method: Promax with Kaiser Normalization 2nd EFA Factor Analysis KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity 716 Approx Chi-Square 2630.248 df 276 Sig .000 112 Communalities Initial Extraction CO1 512 633 CO2 348 392 CO3 517 687 PU1 448 643 PU2 420 451 PU3 443 505 CR1 506 639 CR2 448 527 CR3 530 679 EN1 500 668 EN2 488 608 EN3 323 379 PC1 390 474 PC2 395 540 PC4 411 576 AT1 461 515 AT2 414 465 AT3 526 730 IN1 505 524 IN2 616 812 IN3 571 643 CE1 523 664 CE2 525 676 CE3 423 481 Extraction Method: Principal Axis Factoring 113 Total Variance Explained Initial Eigenvalues % of Cumulative Factor Total Variance % 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3.725 2.931 2.224 2.127 1.956 1.719 1.461 1.024 741 631 597 548 499 473 442 413 395 366 332 322 289 287 262 233 15.522 12.214 9.268 8.863 8.151 7.164 6.086 4.265 3.089 2.631 2.486 2.285 2.078 1.970 1.843 1.723 1.646 1.524 1.382 1.343 1.206 1.197 1.093 972 15.522 27.735 37.003 45.866 54.017 61.181 67.267 71.532 74.622 77.253 79.739 82.024 84.101 86.071 87.914 89.637 91.283 92.807 94.189 95.532 96.738 97.934 99.028 100.000 Extraction Sums of Squared Loadings Total 3.330 2.511 1.820 1.716 1.549 1.313 1.064 609 % of Cumulative Variance % 13.876 10.461 7.585 7.150 6.456 5.469 4.435 2.537 13.876 24.337 31.923 39.073 45.528 50.998 55.433 57.970 Rotation Sums of Squared Loadingsa Total 2.322 2.137 1.965 2.006 1.927 1.891 2.603 1.860 Extraction Method: Principal Axis Factoring a When factors are correlated, sums of squared loadings cannot be added to obtain a total variance 114 Factor Matrixa Factor AT3 AT1 AT2 IN2 IN3 CR1 IN1 PU3 EN1 PU2 EN2 PC4 CE3 EN3 CO1 CO3 CO2 CR3 PC2 PC1 CR2 CE1 CE2 PU1 697 598 570 505 476 472 423 446 -.417 458 -.472 547 -.489 454 -.413 429 408 -.511 -.433 427 455 -.510 473 448 -.436 402 -.507 -.494 475 Extraction Method: Principal Axis Factoring.a a factors extracted 15 iterations required .527 115 Pattern Matrixa Factor IN2 IN1 IN3 CR3 CR1 CR2 CE2 CE1 CE3 CO3 CO1 CO2 EN1 EN2 EN3 PU1 PU2 PU3 AT3 AT2 AT1 PC2 PC4 PC1 914 758 687 811 790 730 819 813 660 831 789 576 814 779 594 Extraction Method: Principal Axis Factoring Rotation Method: Promax with Kaiser Normalization.a a Rotation converged in iterations .832 655 644 860 665 658 758 750 620 116 Structure Matrix Factor IN2 IN3 IN1 CR3 CR1 CR2 CE2 CE1 CE3 CO3 CO1 CO2 EN1 EN2 EN3 PU1 PU3 PU2 AT3 AT1 AT2 PC4 PC2 PC1 896 773 716 821 795 722 817 804 676 819 788 614 814 776 609 Extraction Method: Principal Axis Factoring Rotation Method: Promax with Kaiser Normalization .792 687 661 850 708 669 746 728 674 117 Factor Correlation Matrix Factor 1.000 162 150 010 058 284 330 -.015 162 1.000 015 166 154 -.053 269 016 150 015 1.000 034 -.091 086 233 -.088 010 166 034 1.000 063 -.023 354 -.005 058 154 -.091 063 1.000 -.176 135 187 284 -.053 086 -.023 -.176 1.000 060 -.107 330 269 233 354 135 060 1.000 328 -.015 016 -.088 -.005 187 -.107 328 1.000 Label Extraction Method: Principal Axis Factoring Rotation Method: Promax with Kaiser Normalization Confirmatory Factor Analysis (CFA) Regression Weights: (Group number - Default model) IN2 IN1 IN3 CR3 CR1 CR2 CE2 CE1 CE3 CO3 CO1 CO2 EN1 EN2 EN3 PU1 PU2 < < < < < < < < < < < < < < < < < - IN IN IN CR CR CR CE CE CE CO CO CO EN EN EN PU PU Estimate 1.000 965 986 1.000 1.044 1.014 1.000 978 763 1.000 996 859 1.000 1.054 755 1.000 797 S.E C.R P 077 074 12.486 13.373 *** *** 084 086 12.371 11.756 *** *** 084 072 11.631 10.607 *** *** 092 089 10.871 9.604 *** *** 102 082 10.301 9.222 *** *** 090 8.891 *** 118 PU3 AT3 AT2 AT1 PC2 PC4 PC1 < < < < < < < - Estimate 925 1.000 721 805 1.000 1.059 1.058 PU AT AT AT PC PC PC S.E .102 C.R 9.036 P *** 068 069 10.596 11.622 *** *** 114 115 9.289 9.200 *** *** Standardized Regression Weights: (Group number - Default model) IN2 IN1 IN3 CR3 CR1 CR2 CE2 CE1 CE3 CO3 CO1 CO2 EN1 EN2 EN3 PU1 PU2 PU3 AT3 AT2 AT1 PC2 PC4 PC1 < < < < < < < < < < < < < < < < < < < < < < < < - IN IN IN CR CR CR CE CE CE CO CO CO EN EN EN PU PU PU AT AT AT PC PC PC Estimate 872 716 780 820 793 719 818 805 660 803 793 616 804 789 602 751 665 705 837 653 730 702 731 701 Label 119 Covariances: (Group number - Default model) IN IN IN IN IN IN IN CR CR CR CR CR CR CE CE CE CE CE CO CO CO CO EN EN EN PU PU AT < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > CR CE CO EN PU AT PC CE CO EN PU AT PC CO EN PU AT PC EN PU AT PC PU AT PC AT PC PC Estimate 093 042 010 029 113 122 -.001 009 100 093 -.020 123 009 011 -.038 017 060 -.027 044 -.014 168 -.006 -.100 053 098 017 -.036 122 S.E .035 021 035 035 030 027 029 025 042 042 034 032 035 025 026 021 019 021 042 035 033 035 036 031 037 025 030 028 C.R 2.688 2.003 284 841 3.721 4.558 -.023 377 2.376 2.201 -.584 3.888 248 441 -1.470 833 3.164 -1.257 1.038 -.398 5.018 -.156 -2.745 1.684 2.641 653 -1.209 4.333 P 007 045 776 400 *** *** 982 706 017 028 559 *** 804 659 142 405 002 209 299 691 *** 876 006 092 008 513 227 *** Label 120 Correlations: (Group number - Default model) IN IN IN IN IN IN IN CR CR CR CR CR CR CE CE CE CE CE CO CO CO CO EN EN EN PU PU AT < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > CR CE CO EN PU AT PC CE CO EN PU AT PC CO EN PU AT PC EN PU AT PC PU AT PC AT PC PC Estimate 187 139 020 058 281 334 -.002 026 170 158 -.042 286 018 031 -.105 061 230 -.092 074 -.029 391 -.011 -.209 121 202 048 -.093 347 121 STRUCTURAL EQUATION MODELING (SEM) Regression Weights: (Group number - Default model) AT AT AT AT AT IN CE IN2 IN1 IN3 CR3 CR1 CR2 CE2 CE1 CE3 CO3 CO1 CO2 EN1 EN2 EN3 PU1 PU2 PU3 AT3 AT2 AT1 PC2 PC4 PC1 < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < - CR CO EN PU PC AT IN IN IN IN CR CR CR CE CE CE CO CO CO EN EN EN PU PU PU AT AT AT PC PC PC Estimate 170 257 009 111 308 383 100 1.000 954 945 1.000 1.039 1.013 1.000 986 761 1.000 977 845 1.000 1.068 758 1.000 762 893 1.000 708 788 1.000 1.043 1.043 S.E .049 050 050 061 065 079 048 C.R 3.468 5.132 187 1.815 4.745 4.832 2.084 P *** *** 852 070 *** *** 037 077 073 12.386 12.912 *** *** 084 086 12.332 11.749 *** *** 087 073 11.367 10.489 *** *** 091 089 10.781 9.529 *** *** 104 082 10.220 9.197 *** *** 088 102 8.655 8.795 *** *** 068 069 10.430 11.366 *** *** 113 114 9.231 9.153 *** *** Label 122 Standardized Regression Weights: (Group number - Default model) AT AT AT AT AT IN CE IN2 IN1 IN3 CR3 CR1 CR2 CE2 CE1 CE3 CO3 CO1 CO2 EN1 EN2 EN3 PU1 PU2 PU3 AT3 AT2 AT1 PC2 PC4 PC1 < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < - CR CO EN PU PC AT IN IN IN IN CR CR CR CE CE CE CO CO CO EN EN EN PU PU PU AT AT AT PC PC PC Estimate 229 351 013 123 344 329 142 887 720 760 821 791 720 816 809 657 812 787 613 799 795 601 770 652 698 847 649 724 709 727 698 123 Squared Multiple Correlations: (Group number - Default model) AT IN CE PC1 PC4 PC2 AT1 AT2 AT3 PU3 PU2 PU1 EN3 EN2 EN1 CO2 CO1 CO3 CE3 CE1 CE2 CR2 CR1 CR3 IN3 IN1 IN2 Estimate 326 108 020 487 529 503 525 421 718 488 425 593 362 631 639 375 619 659 432 655 665 518 625 674 578 519 787 ... Research are customer engagement with retail brands through Facebook in Ho Chi Minh City and factors that affect the customer engagement with retail brands through Facebook in Ho Chi Minh City Scopes... determinants of customer engagement with retail brands through Facebook in Ho Chi Minh City? - Question 2: How these factors influence the customer engagement with retail brands through Facebook in. ..MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN NGOC TRAM ANH CUSTOMER ENGAGEMENT WITH RETAIL BRANDS ON FACEBOOK : AN EMPIRICAL STUDY