Factors affecting consumer behavior in the market of home furniture hanoi case

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY TRAN QUANG HOAN FACTORS AFFECTING CONSUMER BEHAVIOR IN THE MARKET OF HOME FURNITURE – HANOI CASE MASTER'S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY TRAN QUANG HOAN FACTORS AFFECTING CONSUMER BEHAVIOR IN THE MARKET OF HOME FURNITURE – HANOI CASE MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: Prof Dr Hiroshi Morita Assoc Prof Dr Pham Thi Lien Hanoi, 2021 LETTER OF DECLARATION I hereby declare that the Master thesis “Factors effecting consumer behavior in the market of home furniture – Hanoi case” 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, 31st May 2021 Hoan Tran Quang Hoan ACKNOWLEDGEMENT First of all, I would like to express the sincerest gratitude to my supervisor, Prof Dr Morita Hiroshi and Prof Dr Pham Thi Lien who are enthusiastic, dedicated to guide and give me the advice how to make my research done properly throughout the last two months I am very thankful to have them as my instructor I also would like to express my gratitude to all the lecturers and professors of Vietnam Japan University – Faculty of Business Administration, who gave me the very useful and practical knowledge about international business and other fields during five years I studied here That helped me a lot when I conducted this research Besides, I also would like to say thank you to all the participants who helped me answering the questionnaires so that I can get data to the research I really appreciated those who spent time on helping me completing the survey Finally, I wish all the best will come to my supervisor and all the lecturers and professors of Vietnam Japan University – Faculty of Business Administration Wish everyone will have more happiness in life and more success in career TABLE OF CONTENT LIST OF TABLES i LIST OF CHARTS AND FIGURES ii LIST OF ABBREVIATIONS iii Chapter INTRODUCTION 1 Problem discussion Research objective Research scope Thesis outline Chapter LITERATURE REVIEW 2.1 Overview of consumer behavior 2.2 Factors affecting consumer behavior 2.3 Previous research about purchasing behavior of consumers 2.4 Literature gap 11 2.5 Hypotheses development 11 2.6 Research model 15 CHAPTER RESEARCH METHODOLOGY 17 3.1 Research process 17 3.2 Data collection 18 3.2.1 Data collection method: survey method 18 3.2.2 Sample size 18 3.2.3 Sampling method 18 3.3 Questionnaire design 19 3.4 Analyzing data plan 22 3.4.1 Reliability testing of scales 24 3.4.2 Exploratory factor analysis (EFA) 25 3.4.3 Multivariate regression analysis 26 CHAPTER DATA ANALYSIS & HYPOTHESIS TESTING 28 4.1 Descriptive data 28 4.2 Analysis and result 30 4.2.1 The reliability of the scale 30 4.2.2 Exploratory factor analysis (EFA) 33 4.3 Hypotheses testing 36 4.3.1 Correlation and regression analysis 36 4.3.2 Hypotheses testing 39 4.4 Findings and discussion 42 CHAPTER RECOMMENDATION AND CONCLUSION 44 5.1 Recommendation 44 5.2 Research contributions 45 5.2.1 Theoretical Contributions 45 5.2.2 Practical Contributions 46 5.3 Limitations and future research direction 46 Reference 48 Appendix 1: Survey (English version) 51 Appendix 2: Survey (Vietnamese version) 56 LIST OF TABLES Table 2.1 Factors influence purchasing decision home furniture 10 Table 3.1 Measuring items for questionnaire 20 Table 3.2 Encoded terms for data testing .23 Table 4.1 Description of respondents’ profile 28 Table 4.2 Cronbach's Alpha analysis results table 30 Table 4.3 Table of results of EFA analysis of independent variables 33 Table 4.4 Results of Pearson correlation analysis 36 Table 4.5 R Square, dependent variable Attitude 37 Table 4.6 R Square, dependent variable Intention 38 Table 4.7 Table of statistical parameters of each variable in the regression model .38 Table 4.8 Summary results for the hypotheses .41 LIST OF CHARTS AND FIGURES Figure 2.1 Characteristics Influencing Consumer Behavior Figure 2.2 Black box model Figure 2.3 TRA theory Figure 3.1 Research process proposed 17 LIST OF ABBREVIATIONS ASS: ATD: EVBN: INT: P: PD: PQ: SL: SM: After-sale service Attitude EU-Vietnam Business Network Intention Price Product Design Product Quality Store Location Social Media CHAPTER INTRODUCTION Problem discussion Along with the development of the country, for each family, the problem of building a house is not simply the residence of family members, but also a place to relax, rest, and show the personality of the owner of that house Therefore, the design of living space and interior decoration requires more aesthetics and diversity With an average GDP growth rate of 6% per year, accompanied by the development of the construction and real estate sectors, an increase in household income will also increase the consumption of home furniture According to a report on Vietnam furniture market made by EVBN, Vietnam ranks first in Southeast Asia, 2nd in Asia and 4th in the world in furniture exports Only in 2015, in the European market, the total export turnover of furniture reached 7.2 billion USD and 1.7 billion USD for home decoration items The development of the furniture manufacturing industry in Vietnam is forecast to grow steadily at a rate of 9.4% per year According to EVBN's analysis, the current Vietnamese furniture market is mainly focused on export and left the home yard open Most of the domestic market is the playground for imported goods, originating mainly from China, Malaysia and Thailand The furniture domestic market still has a lot of potentials for businesses Home furniture is a very potential market and there are many different segments for each customer group with different income in society Due to such a large and diverse customer file, it is difficult to grasp the customer's wishes: which type to use, and how to design is a matter of changing depending on individual perceptions Research on consumer behavior towards home furnishings will be needed to generalize customer wishes However, there are currently no studies in Vietnam that focus on analyzing consumer behavior towards interior products Therefore, I choose the topic: “Factors affecting consumer behavior in the market of home furniture – Hanoi case” as the thesis Finally, this research examined consumers purchase intention in general, not specific to online or offline purchase method In order to discover even more specific intention, future researcher should conduct a research on one purchase method such as purchasing online 47 REFERENCE 10 11 12 13 14 15 16 17 Armitage, C.J and Conner, M (2001) Efficacy of the Theory of Planned Behaviour: A Meta-Analytic Review 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30 years □ 31 - 40 years □ 41 - 50 years □ over 50 years Marital status □ Married □ Single Education □ High school □ Bachelor’s degree □ Postgraduate degree Occupation □ Student □ Self-employed □ Employee □ Retired □ Housewife □ Others Number of person who lives in your house □1 □2 □3 51 □4 □5 □6 □7 □8 □9 □ 10 □ More than 10 Number of children in the same house □1 □2 □3 □4 □ More than □ Other Personal income (per month) □ Under mil □ – mil □ 10 – 15 mil □ 15 – 25 mil □ 25 – 40 mil □ Over 40 mil Family income (per month) □ Under 15 mil □ 15 - 25 mil □ 25 - 40 mil □ 40 - 60 mil □ 60 - 100 mil □ Over 100 mil Residential type (regardless of rental or owner house) □ Tube house □ Highrise building □ Villa □ Condominium Part 2: Furniture Purchasing Behavior Please choose a degree of agreement that matchs your opinion 52 1- Strongly disagree 2- Disagree 3- Neutral 4- Agree 5- Strongly agree Buying home furniture is something I would I feel comfortable in sharing my information about 5 furniture product I usually buy a few new products when I move to a new residence Even when there is no need, I still like to see furniture products I often think about buying new products I am interested in information of new furniture models I believe it is necessary to buy new furniture regularly My family influences my furniture purchasing a lot A salesperson can influence my furniture selection process 10 I like products with a lifelong durability 11 I usually read the product specifications 12 I like products that integrate many functions 13 I like solid products no matter how heavy or thick they appear 53 14 I like new model rather than current model furniture 15 I usually choose products that match my home décor 16 If there are two similar products I would choose the nicer one even though the price might be higher 17 When I buy furniture, I choose the cheapest one 18 I usually buy on sale furniture 19 I like cheaper furniture only if it meets quality requirements 20 For furniture, higher price equals higher quality 21 Discounted furniture means it is left-over or obsolete item 22 I usually buy new furniture at the store near my house 23 I like furniture stores that are conveniently located 24 I prefer independent stores to stores located in 5 shopping malls 25 I tend to buy a furniture that a celebrity I like endorsing it 26 I tend to buy a furniture that I've seen advertised before 27 I often watch furniture ads on social media 28 I will look at the product review before buying 29 I will buy furniture if store provides delivery service 30 I feel more satisfied if speed delivery 54 31 I like products with return policy 32 I will buy furniture if store provides installation service 55 APPENDIX 2: SURVEY (VIETNAMESE VERSION) Part 1: Thông tin cá nhân Giới tính □ Nam □ Nữ Tuổi □ Dưới 20 tuổi □ 21 - 30 tuổi □ 31 - 40 tuổi □ 41 - 50 tuổi □ 51 – 60 tuổi □ Trên 50 tuổi Tình trạng nhân □ Đã kết □ Độc thân Trình độ học vấn □ Trình độ phổ thơng □ Trình độ đại học □ Sau đại học 5 Nghề nghiệp □ Sinh viên □ Tự kinh doanh □ Nhân viên văn phòng □ Nghỉ hưu □ Nội trợ □ Khác Số lượng thành viên sinh sống gia đình 56 □1 □2 □3 □4 □5 □6 □7 □8 □9 □ 10 □ Trên 10 Số lượng trẻ em gia đình □1 □2 □3 □4 □ Trên □ Khác Thu nhập cá nhân/tháng □ Dưới triệu □ – triệu □ 10 – 15 triệu □ 15 – 25 triệu □ 25 – 40 triệu □ Trên 40 triệu Tổng thu nhập gia đình/tháng □ Dưới 15 triệu □ 15 - 25 triệu □ 25 - 40 triệu □ 40 - 60 triệu □ 60 - 100 triệu □ Trên 100 triệu Loại hình nhà (khơng phân biệt nhà thuê hay chủ) □ Nhà cấp □ Nhà tầng □ Villa □ Chung cư Part 2: Nhu cầu mua sắm nội thất gia đình (Nội thất gia đình bao gồm: nội thất phịng khách, phịng bếp, phịng ngủ, bàn ghế ngồi trời) 57 Vui lịng chọn: 58 - Bình thường - Hồn tồn khơng đồng ý - Đồng ý - Khơng đồng ý - Hồn tồn đồng ý Tơi có nghĩ tới việc mua đồ nội thất gia đình Ngay khơng có nhu cầu tơi thích xem sản 5 phẩm nội thất Tôi thường nghĩ việc mua sản phẩm nội thất dù cũ chưa hỏng Tôi cảm thấy thoải mái chia sẻ thông tin sản phẩm nội thất Tôi mua đồ nội thất chuyển nơi Tôi quan tâm đến sản phẩm nội thất Tôi tin việc mua sắm thường xuyên đồ đạc 5 cần thiết Những thành viên gia đình ảnh hưởng đến việc mua sắm đồ nội thất Nhân viên tư vấn/bán hàng ảnh hưởng đến q trình lựa chọn nội thất tơi 10 Tơi thích sản phẩm có độ bền từ 10 đến 20 năm 11 Tôi thường đọc thông số chất lượng sản phẩm 12 Tơi thích sản phẩm tích hợp nhiều chức 59 13 Tơi thích sản phẩm chắn dù chúng nặng dày 14 Tôi thường thích mẫu nội thất 15 Tôi thường chọn sản phẩm phù hợp với phong 5 cách trang trí nhà tơi 16 Nếu có sản phẩm giống công năng, thường chọn sản phẩm đẹp dù giá cao chút 17 Khi chọn mua đồ, thường chọn rẻ 18 Tôi thường mua sản phẩm giảm giá 19 Tơi thích đồ nội thất giá rẻ đáp ứng yêu 5 cầu chất lượng 20 Tôi nghĩ sản phẩm giảm giá nghĩa lỗi thời cịn sót lại 21 Tơi nghĩ đồ nội thất giá cao tương đương với chất lượng tốt 22 Tôi thường mua đồ nội thất cửa hàng gần nhà 23 Tơi thích cửa hàng có chỗ để xe thoải mái 24 Tơi thích cửa hàng mặt đường cửa hàng nằm 5 trung tâm thương mại 25 Tơi có xu hướng mua đồ nội thất mà người tiếng giới thiệu 60 26 Tôi thường xem quảng cáo đồ nội thất 5 tảng truyền thơng xã hội 27 Tơi thường tìm kiếm đánh giá sản phẩm trước mua 28 Tơi thường chọn mua sản phẩm mà xem quảng cáo trước 29 Tơi mua sản phẩm giao hàng tận nhà 30 Tơi cảm thấy hài lịng sản phẩm giao trước thời gian dự kiến 31 Tơi thích sản phẩm cung cấp dịch vụ lắp đặt nhà 32 Tơi thích sản phẩm có sách hồn trả 61 ... so the author focuses on finding the factors affecting the intention to purchase home furniture 2.2 Factors affecting consumer behavior Consumer behavior is influenced by a variety of factors in. .. products Therefore, I choose the topic: ? ?Factors affecting consumer behavior in the market of home furniture – Hanoi case? ?? as the thesis Research question What are the factors which affects consumers... give the factors affecting buying behavior of consumers, then conducting quantitative research through consumer opinion survey in Hanoi Since then, on basis of analysis of primary data, the author