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Consumer purchasing decisions are influenced by many factors, not only the personal
factors of each consumer, but also the influence of many external factors (from the
environment, social, enterprises). In the age of globalization in which challenges and
competition are increasingly harsh, it is vital that businesses adopt the most appropriate
development strategies to engage consumers in their products or services. In Vietnam,
in recent year, capital from regional neighbors (for example, Thailand) into Vietnam is
increasing, in form of Foreign Direct Investment and Mergers and Acquisition. As
Thailand companies gradually expand their presence in the country, Vietnamese
products are facing fierce competition from Thailand imports in the local market
According to the latest statistics released by the Ministry of Industry and Trade
(2016), the volume of imported products originating from Thailand (in terms of
quantity), are ranked second, only behind China. Currently, garments and household
appliance products supplied by Thailand have been presented in nearly 9,000 traditional
markets across the country. Thailand electronic and electrical products currently account
for 70 per cent of the market share. More importantly, despite Vietnam's strength in fruit
production, nowadays, fruits from Thailand now account for about 40% market share.
According to the data from the General Statistics Office, in the first 6 months of 2016,
Vietnam ran trade deficit of 2.13 billion USD from Thailand and in 2015 Vietnam also
recorded trade deficit from this market at $ 5.11 billion. With the general situation when
demand for Thailand goods is increasing sharply, it is estimated that the quantity of
goods imported from Thailand is still increasing.
In the face of the pressure to boycott Chinese goods, consumers are more and more
careful with product selection. They have tendencies to choose the products which are
affordable, high quality ... and especially imported goods. Thailand goods targeted the
consumer mentality and quickly gained the trust of Vietnamese consumers. The
penetration of Thailand goods is putting Vietnamese businesses ahead of the significant
challenges. Consequently, consumer behavior research is especially important for every
business if it wants to survive and grow.
The research results will give an overview of factors influencing the consumer
buying decision of Thailand products in Ha Noi. The study will also test the difference
in the level of influence of the factors based on gender characteristics. It is expected to
help managers better understand the buying decision of consumers toward Thailand
product, recognizing the most noticeable factors affecting consumer purchasing
decisions; help local firms to segment their markets, plan strategies, propose solutions to
attract and meet the demands of consumers.
(1) Determining the factors influencing the decision to purchase made in Thailand in
Hanoi.
(2) Measuring the impact of factors affecting the buying decision of made in
Thailand product in Hanoi
(3) Propose solutions to Vietnamese enterprises in order to attract consumers to
select domestic products and recommendations to support Vietnamese
enterprises in the process of competition.
In order to achieve these goals, this topic is intended to address the following
research questions:
(1) What are the factors that affect the decision to buy made in Thailand
products in Hanoi?
(2) How the level of influence of factors affecting the buying decision of is
made in Thailand in Hanoi?
(3) What are the solutions and policies for Vietnamese enterprises to attract
consumers to choose products of domestic enterprises?
1.4. Scope of study
Subjects of the study: Factors influencing the buying decision of made in Thailand
products in Hanoi.
Subject of investigation: Consumers aged 18 and older who have already bought
Thailand products
Place: in order to carry out the research conveniently as well as highly practical,
the topic of research focus in Hanoi, which has a fast economic growth rate and also has
extensive and diversified penetration of Thailand's clothing; where consumers are
sensitive to the latest consumption trends.
Time: 1 months, from
1.5. Methodology
The thesis has used the combination of qualitative and quantitative method through
preliminary research and formal research. Group discussion and expert interviews were
used to develop questionnaires. Then surveyed subjects are consumers aged 18 and older
who have bought Thailand products and the data was processed by quantitative method
with sample n = . Use SPSS 22.0 and AMOS software to test the scale and test the
suitability of market data for the research model and hypotheses.
Combining two research methods is necessary to help the author make conclusions
that are accurate and stick to reality.
The main contents of this thesis are structured into 3 main parts
Chapter 1: Introduction
Thailand products: In this study, made in Thailand products are all commodity
products of various categories originating from Thailand. The perceptible sign for
consumers when buying a product is the packaging printed the place of origin. (For
example: Product of Thailand, Made in Thailand).
"Origin of goods" means a country or a territory where such goods has been
wholly obtained or where the last substantial processing operation has been carried out
when more than one country and/or territory are concerned in the production of such
goods. (According to Point 1, Article 3, Decree 19/2006 / ND-CP dated 20 February
2006 on detailed regulations on commercial law on goods origin).
Buying decision: According to Peter and Olson (2004), the key process in
consumers decision making is the integration process by which knowledge is combining
to evaluate two or more alternative behavior and select one. Most of the large company
research consumer buying decision in increasing detail to answer question about what
consumer buy, where they buy, how and how much they buy, when they buy and why
they buy (Kotler et al., 2005).
Evaluation
Need Information Purchase Postpurchas
of
recognition Search Decision e Behavior
Alternatives
The information which act as a basis for consumers to list the options can be
collected from inside or outside. The inside information is derived from consumer
shopping experience such as contact, survey and use of the product. The outside
information is obtained from commercial sources such as advertising, offering,
packaging, display. The information from friends, the press, etc. is also a great reference
source for consumers to form a "select list". Provided that the consumers drive is strong
enough and satisfying product is near at hand, the consumer is likely to buy it then. If
not, the consumer may store the need in memory or undertake an information search
related to the need (Armstrong & Kotler, 2003). Information provided by marketers is
invariably favorable to the product and/or brand. Consumers are especially likely to note
the negative information and to avoid products or brands that receive negative evaluation
(Shiffman & Kanuk, 2004).
In this stage we need to distinguish between buying intention and buying decision.
Buying intentions are often influenced by other people's views or unexpected
circumstances. Rather than buying, the consumer may make a decision to modify,
postpone, or avoid purchase based on an inhibitor to purchase or perceived risk. The
perceived risk literature emphasizes that consumers generally try to reduce risk in their
decision making. This can be done by either reducing the possible negative consequences
or by reducing the uncertainty (Peter & Donnelly, 2001)
The marketers job does not end when the product is bought. After purchasing,
the consumer will be satisfied or dissatisfied with the product and will engage in post
purchase behavior of interest to the marketer. If the features and uses of the product best
meet customers expectations, they will totally satisfied and it may result in repetitive
purchases and further introduction to others about the product This suggests that sellers
should make product claims that faithfully represent the products performance levels to
boost consumer satisfaction with the product. Thus, consumers feel at least some post
purchase dissonance for every purchase (Armstrong & Kotler, 2003).
Consumers often judge the quality of a product or service on the basis of a variety
of informational cues that they associate with the product. Some of these cues are
intrinsic to the products, whereas others are extrinsic. As defined by Zeithaml (1988),
cues that are intrinsic concern physical characteristics of the products itself, such as
products performance, features, reliability, conformance, durability, serviceability and
aesthetics. On the other hand, extrinsic attributes are the cues that are external to the
products itself, such as price, brand name, brand image, company reputation,
manufacturers image, retail store image and the country of origin. Perceived quality has
direct impact on customer buying decision and brand loyalty, especially during the time
customers have less or no information of the products that they are going to purchase
(Aaker, 1991; Armstrong and Kotler, 2003)
Perceived Value (PV): The term value used in this study refers to a judgment
of preference by consumers. According to Cronin et al. (2000) and Zeithaml (1988b),
perceived value is the customers overall assessment of the utility of a product based on
perceptions of what is received and what is given. Sweeney and Soutar (2001) and
Woodruff (1997) define customer value as a customer-perceived preference for and
evaluation of, product attributes, attribute performance and consequences in terms of the
customers goals and purposes. Stonewall (1992) defined value as function of product
features, quality issues, delivery, service and price. He also added that value is always
determined by consumer, in his or her own terms, timing and testaments and that value
is a perception, a view, or understanding made up of measurable components. Perceived
value is a comprehensive form of customer evaluation of service. According to Rust and
Oliver (1994), value can be conceptualized as the overall evaluation of the service
consumption experience and can be encounter specific or a more enduring global
evaluation. Value perception may also differ according to the usage situation (Anckar
and DIncau, 2002). Value is a function of the overall quality and price of the firms
products and services compared to the competition (Mokhtar et al., 2005).
Perceived Risk (PR): Perceived risk is defined as the uncertainty that consumers
face when they cannot foresee the consequences of their purchased decision. This
definition highlights two relevant dimension of perceived risk: uncertainty and
consequences. When a consumer make a buying decision, risk implies great
consequences of making a mistake and degree of inconvenience of making a mistake,
perceived risk will typically influence early stage of consumer buying process. Besides
that, Dowling and Staelin (1994) define risk as a consumer perception of uncertainty and
adverse consequences of engaging in an activity. The notion of perceived risk as a key
antecedent to consumer behavior has been establish in the past and may be factor
influencing the purchased decision to buy a car. In others words, company will put more
effort on measuring the inherent risk associated with the buying decision-making
process.
According to Mitchell (1992), perceived risk influences the five stages of the
consumer decision making process, which will influence customer buying decision
towards made in Thailand products. Risk may manifest itself in a variety of way such as
fear that a product may not possess desirable attributes, uncertainty regarding product
performance or a sense that the purchase of a particular brand may invite social
disapproval. Although risk can be include many types (i.e., performance, financial,
social, time and safety), Dunn et al. (1986) found that the first two type performance and
financial risk were the most closely associated with the buying decision.
Country of origin effect is concern with the customers perceptions that how they
perceives products from certain country and COO is the overall perception consumers
form of products from a particular country, based on their prior perceptions of the
countrys production and marketing strengths and weaknesses (Roth &Romeo, 1992).
Based on Ahmed et al. (2002), consumer infers attributes to the product based on country
stereotype and experiences with a product from the country. Consumer may perceive
less risk in purchasing product from the countries with a good image .According to Kinra
(2006), country of origin is an important differentiating factor in consumer attitudes to
foreign and local brand names. Her study held that country of origin credibility of foreign
brands was a significant factor influencing consumer attitudes and preferences as it was
correlated highly with quality and status and esteem. The study by Opoku and Akorli
(2009) suggested that country of origin is more important than price and other product
attributes. According to their study, the Ghanaian consumer holds the 'Made in Ghana
label in low regard relative to foreign labels. Superior quality and consumer taste were
the two most important reasons for the Ghanaian consumers preference for foreign
apparel products. Cordell (1992) found that U.S. consumers perceive products originated
from industrialized countries such as England and Canada of higher quality than those
from less developed countries such as Indonesia and Bolivia. Another study conducted
by Schooler (1965) in Guatemala revealed that products made in less developed
countries were not evaluated as quality products. Consumers were biased against
products from a less developed country. Cyril et. al. (2012) explored the role that
country-of-origin cue plays on Malaysian consumers product evaluation as well as
purchase intention of a low involvement product i.e. toothpaste. Findings revealed that
Malaysians generally preferred products from developed nations as opposed to those
made locally or imported from less developed countries. In general, for consumers in
less developed countries, country of origin or attitude toward a country plays a
significant role in influencing their purchase behavior (Lin and Sternquist, 1994). One
explanation cited is that consumers in less developed countries do not have enough
information and experience with purchasing foreign brands (Zhang, 1996).
Elif and Handan (2010) had researched on consumer buying decisions for Turkish
products with three product lines (apparel, chocolate and personal care products). The
study looked at a survey of 600 consumers aged 15 to 60 at three major shopping centers
in Istanbul, Turkey. The research results show that there are 5 factors that affect the
purchase of foreign products by consumers in Istanbul: (1) perceived quality, (2)
perceived value, (3) Perceived brand Prestige and (4) The influence of others (Figure
2.6). In that study, separate hypotheses about the influence of these factors on the
different product lines were examined. For the clothing line, the "Perceived brand
Prestige factor of the product has the strongest impact on the consumer's "decision to
buy" foreign products. Meanwhile, for the chocolate and personal care products, "quality
feel" has the strongest impact on "buying intentions."
Perceived Quality
Perceived Value
Buying decision of
foreign product
Perceived brand prestige
Influence of others
(Source:)
In Viet Nam, Le Chi Hai has done research on factors affecting Vietnamese
peoples decision on Chinese goods purchase by two explanatory variables; the country
of origin and the products properties and via two products; mobile phones and T.V. sets
made in China. The research show that country of origin and the products properties has
significant impact on mobile phones purchasing decision, while TV buying decision is
barely not impacted by country of origin but products properties
Perceived Value
Buying decision
Perceived Risk
Country of Origin
The information of the country that where product is made has been an important
factor in product purchasing decision of customers. Studies have shown that COO effects
the customers in number of ways and can influence their purchasing intentions Bilkey
& Nes (1982) study of COO effects on product evaluations and reported that COO is an
important factor in purchasing decision. In this study, the effect of COO on three
different products will be checked
The continuous development of the economy has significant impact on the trend
of consumption. Consumers are increasingly interested in choosing the best products to
satisfy their needs and expectations. Of which, in Hanoi in particular, the tendency to
choose made in Thailand products are popular consumers; currently, made in Thailand
products have been present in every corner of the country, from grocery stores to
markets, supermarkets, even appeared in places where Vietnamese goods have not been
available. Specifically, clothing and household articles made in Thailand are available
in nearly 9,000 markets nationwide and dominate those imported from other countries.
At wholesale markets, particularly in wholesale distribution such as Dong Xuan (Hanoi),
many small traders have shifted from Chinese products to Thailand ones. While Chinese
apparels seem to be more eye-catching than Thailand, they are cheaper than Thailand's
10-20%, but consumers now prefer Thailand goods because of less imitation, better
quality and durability. . In addition, Thailand fruits are imported into Vietnam in
increasing numbers in stalls, Thailand fruits account for 40%. According to the latest
statistics of the Center for Information and Statistics (under the Ministry of Agriculture
and Rural Development), the total import value of fruits in the first three months of 2017
is estimated at 164 million USD, of which Thailand fruits account for 50%, not to
mention the large amount of Thailand fruits are entering Vietnam day by day by
unofficial trades. For cosmetics, household goods and foodstuffs originating in Thailand,
several years ago, they were only present in border markets, however now they have
penetrated deeply into the Vietnamese market. In modern distribution channels, Thailand
goods account for a high proportion; because supermarkets see the increase in the trend
of Thailand products consumption, they shift to importing many kinds of Thailand goods
with various brands, and prices are virtually the same as Vietnamese goods. Meanwhile,
in the electronics and refrigeration market, Thailand products are occupying more than
70% of the market share because a number of well-known brands in the world such as
Sharp, Philips, Panasonic, Sanyo ... all have factories in Thailand. Other technical items
such as motorcycles, equipment, car accessoriesare appreciated and choose by many
consumers.
With outstanding features and branded foreign goods, Thailand goods easily gain
the trust of Vietnamese consumers. In the situation when domestic goods are lack of
quality improvement, Chinese goods lose credibility, the penetration of Thailand goods
is inevitable result, which puts Vietnamese enterprises under threat of losing a large share
of market share. While Thailand goods are of high quality and stable, the weakest point
of Vietnamese goods is the unstable quality which leads to loss of consumer confidence.
Chapter 3: Research Design and Methodology
3.1 Research Process
There are two ways to approach a research, namely that quantitative (deductive)
approach and qualitative (inductive approach).
Final
Final Initial
Pilot Test Measurement
Questionnaire questionnaire
Scales
This study includes focus group of 10 consumers who is currently living in Hanoi
and have already bought made in Thailand products. Data were collected on the
consumers perceptions about the reason of buying made in Thailand products, the factor
differentiate Thailand products with domestic ones and the factors impact their buying
decision of Thailand products The focus group helps researchers determine their scales
to conduct quantitative surveys and measure scales as well as study models through multi
regression analysis. Results of this group discussion also aim to test hypotheses
appropriation on the impact of perceived quality, perceived value, perceived risk and
country of origin on the customer purchase decision of made in Thailand products. The
following is the group interview process that the researcher conducted:
To ensure the reliability of the survey data, the study will exclude all survey
responses which do not match the requirement: Respondents do not live in Hanoi,
respondents never buy made in Thailand products, answer sheets lack of answer or have
the same choice for all questions. Before carrying out data analysis, the data should be
re-filtered, duplicate answer will be eliminated. The completed answered sheet will all
question answered and not subject to removal will be use as a basis for processing data
and analyzing survey results.
1 2 3 4 5
The combined results of scales after qualitative research are presented in Table
3.1.
PQ2 I believe that made in Thailand products are being of higher quality
than local products.
PQ3 I realize that made in Thailand products are highly durable.
Perceived Value PV1 I suppose that made in Thailand product satisfy the value expected by
(PV) consumers.
PV3 I realize that the value of made in Thailand products is worth the cost.
COO3 I often find the origin of the product and assume that it is a good
product if it comes from Thailand
PD1 I will buy made in Thailand products within the next 30 days.
Purchase Decision
everyone.
PILOT TEST
This research adds pilot test and launched on a small scale of target respondent
with 10 people. They worked independent with the guidance of researcher. The purpose
of this satge is to ensure that there are no mistakes of grammar, spelling errors and have
clear logic of questions. Moreover, this stage can help team members gathering
experience for the official survey.
After gather advice of 15 respondents, the questions have been fixed. There are
no complaints of logic, grammar, spelling errors. Then the official questionnaires are
prepared and presented in appendix.
Hari (2010) cited that there are two categories in sampling methods including
non-probability and probability. Non-probability samples are chosen from the total
population that is not informed and it is difficult for answering research questions or
solving objectives, which require researchers to conjecture numerical data about
characteristics of the population. Within the scope of this research, there is not an
exhaustive population list available or customer database. Therefore, non-probability
sampling method is selected and applied in this research.
The target respondents in this study is the consumers who live in Hanoi, mostly
aged 18 to 45 years old with monthly income ranging from 5 million to 20 million per
month and have bought at least 1 made in Thailand product
For Exploratory Factor Analysis (EFA): The study by Hair, Anderson, Tatham
and Black (1998) refer to the expected sample size. Accordingly, the minimum sample
size is five times the total number of observation variables. This is the appropriate sample
size for the study using factor analysis.
N=5xm
N: sample size
For multiple regression analysis: the minimum sample size is calculated by the
formula:
N = 50 + 8 * m
On that basis, the subject collected data with a sample size of 120. The sampling
method was conducted in a convenient, randomized and comparable manner as required
for research purposes. Data collection methods are group interviews, direct personal
interviews and online questionnaires.
With SPSS, researchers can analyze the situation, find out the factors that have
significant influence, predict the following trend, and as a results, it allows problems to
be solved quickly, improved considerably results precise.
3.5 Data processing method
3.5.1 Descriptive analysis
Descriptive statistics are used to described the basis features of data in term of
valid and invalid respondents percentage, mean, mode, variance of variables by using
frequency and descriptive. It provides simple main feature of the samples and measures.
There are five factors that will be taken into consideration in this step:
(1) Eigenvalues: According to Rietveld & Van Hout (1993), the number of
positive eigenvalues determines the number of dimensions needed to represent a set of
scores without any loss of information. Thus, the number of positive eigenvalues
determines the number of factors to be extracted. The construction of the factor itself is
then calculated via a transformation matrix that is determined by the eigenvectors of the
eigenvalues. After constructing the factors, it is possible to determine the factor loadings
simply by calculating the correlations between the original variables and the newly
obtained factors. If eigenvalues are larger than a conventional threshold of 1, it means
factors are remained for further analysis.
(5) Significance: the inter-correlation can be checked using Bartletts test. This
test is significant with Significance <0.05, which means the observed variables are
correlated with each other in general. Multicollinearity can be detected via the
determinant of the correlation matrix. If the determinant is greater than 0.00001, there is
no multicollinearity (Field, 2000).
The regression coefficients are interpreted as the change in the expected value of
the dependent variable associated with a one-unit increase in an independent variable,
with the other independent variables held constant.
(1) R Squared: a number that indicating the proportion of the variance in the
dependent variable that is predictable from the independent variable. The higher the R-
squared statistic, the better the model fits the data
(3) The Durbin-Watson statistic: a number ranging from 0 to 4 that tests for
autocorrelation in the residuals from a statistical regression analysis. A value of 2
indicates no autocorrelation is found in the sample. Values approaching 0 mean positive
autocorrelation and values toward 4 shows negative autocorrelation.
(4) Variance Inflation Factor (VIF): VIF larger than 10 is a sign of multicollinearity.
The threshold of this figure in the thesis is lower than 2.0.
Chapter 4: Analysis and finding
The survey was concurrently conducted by online and offline interview through
questionnaire. Data was collected from direct respondents.
The total data for survey were 200 respondents but after the process of filtering
the database, 8 invalid samples have been removed so the database using in this analysis
includes 192 samples and the result of research will rely on xxx valid samples. Here are
some statistic about gender, age, education, occupation and income by using Frequency
Analyze in SPSS.
Following the Figure xx, it can be seen that 76% of responders are female and 24
are male. The difference in frequency of appearance of male and female is pretty much
(about 50%). It indicates that gender ratio of Thailand products consumers is titled in
favor of female.
Gender
Male
24%
Female
76%
Male Female
Age
Respondents with age from 18 to 25 is occupy mostly among 192 responses, up
to 59 % with 113 people. People who are 26-35 accounted for 24% and 36-45 is 14% of
Age
3%
14%
24% 18-25
59%
26-35
36-45
>45
total respondents. Especially there are only 6 responder more than 45 years old. If we
calculate the total number of under 35 people, it can be seen clearly that under 35 buyer
accounted for large percentage with 83%. We may conclude that consumers who have
bought Thailand products are mostly young people who are always interested in try and
exploring new things.
Figure 5: Frequency of Age
Education
There are 9 respondents are high school graduates occupy the level of 5%, 166
respondents having college degrees with 86%. Post-graduate respondents accounted for
9% with 17 people (Appendix 2c, page xvii).
Education
High School
Post Graduate
9% 5%
High School
College
College Post Graduate
86%
Income
There are 178 responses with income less than 20 million VND, this prove that
price of made in Thailand products is suitable for mostly consumer in Hanoi.
Income
> 20 million
10-20 million
< 5 million
< 5 million
5-10 million
5-10 million
10-20 million
> 20 million
Occupation
The result of occupation shows that there are 83 people doing the survey are
categorized into group 1 (Student), make up 43%. Meanwhile, 67 persons doing the
research survey are put into group 2 (Office worker), they represented 35% in total.
Then, 29 respondents are classed as group 3 (Businessman) with 15% and 13 people
chose others occupations, taking 7% in total
Occupation
7%
15%
43% Student
Office Worker
Businessman
35%
Other
Cosmetic group is followed by the fashion item group with 92 buyers. Made in
Thailand clothing are famous for diverse design, high quality material while the price is
only a little higher compare to made in China or made in Vietnam products.
Next, 85 respondents have purchased made in Thailand food items. One of the
reasons for the surge Thailand food items consuming is that Thailand retailers have
bought two of the largest retailers in Vietnam: Big C and Metro in 2015 and 2016. In
addition, in 2015, Vietnam has eliminated nearly 100% of tariffs on conventional imports
from Thailand, so fruit and confectionery Thailand benefits from this policy. Among
made in Thailand food products consuming in Vietnam, fruits are considered the most
popular one. There are many reasons why made in Thailand fruits and vegetables are
strongly to Vietnam market. Firstly, there are many kinds of Thai fruits such as mango,
longan, rambutan, mangosteen, etc. Meanwhile, the agriculture products from Thailand
are strictly inspected and adhered to international standards.
Technology items have been bought by xx respondents, accounting for xx% and
the remain xx percent belong to other product groups (Appendix xx, page xx)
Figure 9 Category of Made in Thailand products purchased by consumers in Hanoi
140 129
120
100 92
85
80
60
40 32 30
20
0
Cosmetic Fashion Food Technology other
4.2 The reliability test
The reliability of reported variables and their dimensional items is tested using
Cronbachs Alpha and presented in these following tables.
Cronbachs Alpha of Perceived Value is 0.815, which is higher than the threshold
0.70. Therefore, Perceived Value is considered to be an acceptable reliability coefficient
to use the research. The "Cronbachs Alpha if item deleted" values of PV1, PV2, PV3
are smaller than the overall Alpha, so all of them are reliable to measure Perceived Value.
Reliability Statistics
.815 3
Item-Total Statistics
Reliability Statistics
.769 3
Item-Total Statistics
Reliability Statistics
.797 3
Item-Total Statistics
Reliability Statistics
.788 3
Item-Total Statistics
Reliability Statistics
.818 3
Item-Total Statistics
First and foremost, table 4.8 presents the adequateness of factor analysis for both
of the dependent variable (Purchasing Decision), which is proved by KMO (0.907 >0.7)
and results from Barletts test (significant at 1 percent level), and the independent
variable (Perceived Value, Perceived Quality, Country of Origin, Perceived Risk), with
KMO of 0.713>0.7 and significant Barletts test at 1 percent level. In other words, data
from the survey results used to conduct EFA are entirely appropriate for inclusion in the
regression model and criteria observed are correlated with each other in general.
Dependent Independent
Variable Variable
PD PQ PV PR COO
H1: 0.487***
.000 .243 1.00
Perceived Quality -> Purchasing Decision (.062)
H2: 0.730***
.000 .516 1.00
Perceived Value -> Purchasing Decision (.051)
H3: -0.581***
.000 .300 1.00
Perceived Risk -> Purchasing Decision (.064)
H4: 0.714***
.000 .453 1.00
Country of Origin -> Purchasing Decision (.057)
Gender
First of all, Homogeneity of variances is checked by using Levene Stistic. This
test helps examine whether variances of Female and Male are equal or not.
That Sig. = 0.055 is higher than 0.05 so at the reliability of 95% the variances of
Female and Male are equal. It is satisfied the condition for doing ANOVA analysis
ANOVA
Age
Sig. of Lenvene =0.605 > 0.05. The variances of age group are so equal so the
results of the ANOVA can be used
Sig. = 0.293 > 0.05 so it can be concluded that the difference in age groups have
no effect on purchasing decision of made in Thailand products. Hence, H6 is rejected.
ANOVA
Between
2.599 3 .866 1.250 .293
Groups
Income
Sig. of Lenvene =0.675 > 0.05. The variances of income group are so equal so the
results of the ANOVA can be used
Result of ANOVA analysis shows that sig. = 0.293> 0.05. Therefore, with
observational data, it is not eligible to affirm that there is a difference in purchasing
decision of made in Thailand products between income groups. Hence, H7 is rejected.
ANOVA
Between
1.551 3 .517 .740 .529
Groups
4.5 Discussion
The research result reveal relatively sharp differences in the impacts of perceived
quality, perceived value, perceived risk and country of origin though perceived value
features stand out to have the largest influence with the coefficient at 0.730,followed by
perceived risk, country of origin and perceived quality rank last to effect purchase
decision with the coefficient at 0.487.
According to the research result, perceived value has the strongest influence on
purchasing decision. Consumers are always buying products and services that offer the
highest perceived value. This means that they always reflect on the benefits and costs
they pay for each brand. They do not quite pick the lowest priced brand when the benefits
it brings are not much. Conversely, they are willing to accept a high price for using
reputable products. Firms should focus on improving the perceived quality and value of
their brands, as this influences their buying decisions. In addition, value and quality can
help businesses sell products at higher prices as well as make it easier for companies to
bring new product lines into the market. To do this, manufacturers must constantly
improve product quality as well as maintain this high quality stability for any product
line to market.
The results of the study show that country of origin is considered as information
that affects consumers purchasing decision in terms of their perception toward the
products attributes as well as their overall evaluation of the product. Consumers are
generally felt to perceive Thailand products as good-quality, and to associate "made in
Thailand" labelling with value pricing, skilled labor and good materials. Consumers are
also of the opinion that COO information helps them to choose the best product available
in a product class and consider the new product to make a more informed decision. The
national brand name, or "Made in country", is probably a ticket to many businesses
without knowing how good the product is. So every country wants to improve this image
in the minds of consumers.
The results show that the perceived quality factor strongly influenced consumers'
purchase decision of made in Thailand products. As the economy integrates, consumers
have more and more information and choices, they pay more attention to the selection
of products satisfying their needs, in which the quality factor is one of the top concerns.
Therefore, Vietnamese manufacturing enterprises should pay attention to improving
product quality and creating credibility in order to provide consumers with the most
desired perceived quality through solutions such as: pay more attention to input material
quality, applying modern technology in manufacturing, improve quality of human
resources.
Implication based on impact of Perceived Quality on Purchasing Decision of Made
in Thailand product
The research results indicate that the Perceived Quality has significant impact on
the decision of buying made in Thailand products of consumers in Hanoi. Recently,
achieving customers attention is becoming more and more difficult as the product is
continually improved, and to make consumers purchase your products, these following
aspects are worth paying attention to:
This is one of the difficult stages of Vietnamese enterprises today, most of the
small and medium enterprises have not really paid adequate attention to and invest in
input material, albeit for some items businesses Vietnam is heavily dependent on foreign
suppliers, so ensuring good quality raw materials for production is a matter of concern.
Raw material is the most important factor determining the quality of the product.
Vietnamese enterprises must first invest in raw materials in a serious and regulated way
such as active raw materials, properly check the input material. This will ensure the
quality of the output product, which will help customers feel the quality of Vietnamese
products more actively and gradually move the trend to use Vietnamese goods.
Most of Vietnamese enterprises are small and medium enterprises with limited
resources. Therefore, they only invest in quality and aim at reduce price of products.
They have not invested sufficiently in improving their designs, and designs of their
products often depend on foreign order. Many businesses have copied the code of other
enterprises, unknowingly reduced the creativity and attractiveness of their products.
Today, along with the social and economic development, product design and styles are
becoming an important part of consumers preference of product. The market is flooded
with similar products, and the only thing that differentiates one brand of a particular good
from another is its design. While products have always served a function, they are more
and more carrying meaning. It is the role of good product design to effectively
communicate that meaning to the consumer. Societal pressure based on economical,
ecological, and technological preferences is constantly altering how people feel about
products. It is vital for businesses that want to do well to listen to and respond to the
needs and desires of consumers, providing creative and innovative product design. An
aesthetic and unique design is necessary to stimulate domestic consumers to pay more
attention to and use domestic goods. Only by adequate investment in products design,
Vietnamese enterprises can improve the competitiveness of their goods.
Research results show that the perceived value factor strongly influenced
consumers' buying decisions in Thailand (standardized weighting was ). Meaning that
when consumers are aware of the value they can get in line with their expectations when
deciding to buy the product, they will intend to buy it. Consequently, businesses need to
have strategies and actions that affect consumer perceptions, giving them a sense of high
product value, satisfying their need which lead to behavioral intention.
Businesses need to pay attention to building value can be based on the basis of:
products brand, corporate brand, reasonable price level in line with the quality of
products and the expectations of consumers. Previously, most of the small and medium
enterprises in Vietnam have not really paid attention to building their own brand identity,
so the competition process has many influences such as consumers We do not know
exactly what the product brand of each company is, or the perception and understanding
of the brand is low, or it can be exploited to label bad products to reduce consumer
confidence right. Branding does not just focus on the "body" but it is important to pay
attention to the "soul" of the brand itself. Strong brand is the precondition for business
position and stability in the consumer market today. Consumers will feel the best value
from the product through a strong and reputable brand, which leads to behavioral intent
and decision to buy the product.
Firstly, businesses always believe that a good quality product will be highly
appreciated by consumers. Businesses can use quality criteria to evaluate products, but
consumers evaluate products by looking at their own. By the experience, knowledge,
information and needs that each person completely different evaluation. A good quality
product measured in the factory is not necessarily a good product in the eyes of the
consumer. Enterprises need to pay attention to the needs and level of understanding of
consumers for products and services. A product or service that consumers value for
quality will increase the value of the brand. Along with flourish of technology and
citizens are more educated than before, most of the customers have more product
knowledge and more sources of information. Hence, they have more rigorous and harsh
requirement to consider before they make a decision in purchasing any products.
Therefore, in making purchasing decision, most of the customers will consider what
value the product can offer to them in terms of money, personality, status and lifestyle.
Customers will think of the value that can provided by a particular product in term of
status, personality and lifestyle. They want to have higher status, unique personality and
better lifestyle by using a product. Thus, probability to purchase made in Vietnam
products will be higher if the Vietnamese enterprises able to provide such value.
Due to this, Vietnamese enterprises should further strengthen the value to their
products. In advertisement they should emphasize the value that the products can give to
their user. They need to educate their customers that what kind of status, personality and
lifestyle will be if they use those products. Besides that, Vietnamese enterprises should
have value added services for their customers. They must considering organizing a week
of consumer gratitude with goods and services sale off must be of clear origin, quality
standards and safety to consumers, clearly listing information related to products and
goods. At the same time, gratitude programs to consumers such as repair support, free
warranty maintenance for expired warranty product, increased warranty time for the
products sold during the event, organization of gratitude gifts, discounts for customers,
set up a hotline to support inquiries for consumers should also deployed and listed.
Second, businesses often assume that consumers will choose products and
services at lower prices. Consumers are always comparing the values they receive with
the costs they pay. Low prices will promote product selection as they evaluate the
benefits that products and services bring. Theoretically, lower prices will bring greater
value to consumers, but in practice low prices can make consumers feel "their money"
and not appreciate the quality. The amount of product and consequence is not appreciated
by the brand. Price is a factor that consumers care about but value perception leads to
their behavior. Enterprises should not determine the price but should determine the value
of their products and services.
Customers will consider some risk when they want to purchase consumer goods
because consumer good is one of the most frequently used products and most of the
consumer perceive that they should be long lasting. Therefore, they face uncertainty if
they purchase the unsuitable products that result in poor performance, embarrassment,
poor self-image and unsafely, which cause them lost in financial risk, physical risk,
social risk and performance risk. The results of this study help Vietnamese businesses
consider the possibility of creating credibility for buyers based on the ability to minimize
the risk level, thereby attracting more customers, making the customer feel safe and
reliable when buying Vietnamese goods. Therefore, Vietnamese businesses should
consider the following suggestion.
One of major causes of financial risk to consumer is counterfeit good and it need
to be seriously treated to lessen consumer perceived risk on made in Vietnam products.
In reality, the widespread appearance of Chinese goods labelled made in Vietnam made
the consumers loose trust in Vietnamese enterprises and also made in Vietnam genuine
products. The counterfeits and the risks they pose had ruined Vietnamese company's
reputation, damage its goodwill, and cause potentially costly litigation when one of the
counterfeits fails catastrophically. These following steps can help Vietnamese
enterprises to protect their brand and gain the loyal of the customer. Firstly, they may
must pay attention to registration of trademarks. It is an important step in protecting their
brands. Federal registration allows them to enforce their trademarks anywhere in the
Vietnam and provides constructive notice to the public of their claim of ownership of
the marks. However, just protecting intellectual property rights is not sufficient.
Vietnamese enterprises then have to take all of the necessary steps to enforce their rights.
Periodically monitor the sales of goods both online and by retailers to verify that
the products being sold are, in fact, genuine products. Three simple factors to examine
include the price, the packaging, and the location where the product is being sold. In case
enterprises find counterfeit goods, they should take the appropriate legal steps to stop
the counterfeiters. This could be as simple as sending a cease and desist letter or could
require a civil litigation. An important part of enforcement is taking immediate action.
Delaying litigation could hurt the ability to seek injunctive relief and, if unreasonable,
could prevent Vietnamese enterprises from filing a lawsuit. Technology is becoming an
important tool in protecting your goods from being counterfeited. In addition to these
above methods, anti-counterfeit stamps have recently been introduced to help
Vietnamese enterprises deal with counterfeit products. Applying code scanning
technology QR Code 2D and 3D can help consumers quickly check the information and
origin of products to ensure that they do not buy counterfeit products. Providing
customer with detailed product description
Consumers always tend to purchase products that value for money. Thus,
Vietnamese companies should use advertising to convince their customers that the risks
(in term of performance and safety) for purchasing their products are much lower than
others. They can emphasize on their high quality production process or high quality raw
material. Moreover, they can stress on quality assurance certificate in order to reduce
perceived risk of customers. In case the consumers encounter any problems with the
products, they need to know where to claim and how to assure their rights and benefits,
and thus Vietnamese enterprises should consider extend the warranty period of their
products in order to reduce the risk bear by customers.
Besides that, Vietnamese companies should position them as a higher status brand
to convince people that they will not felt embarrass by using their products. A high
quality made in Vietnam product must be treated equally with the same quality foreign
products. Vietnamese enterprises may consider using patriotism to boost customers
confidence in their products. Many consumers allow their sense of national pride
influence their purchasing habits, thus using patriotic messages in marketing effort
would be an effective way. Companies that share their values and organizations that
demonstrate patriotism in their marketing efforts are highly appreciated by consumers
with a strong sense of national pride. While using patriotic marketing strategies can be
very effective, it's vital to maintain the proper tone to avoid sending inappropriate
messages. Improperly mixing humor with patriotic messages, for example, is a
marketing blunder that can easily backfire. If Vietnamese enterprises are planning to
utilize patriotic images in their marketing messages, they must make sure everything
they do remains in good taste and conveys the proper measure of respect for their
country.
In the past 7 years, several measures have been taken to bring the best
performance for the campaign. Particularly, due attention has been paid to combating
smuggling, fake goods, intellectual property violations and illegal business behaviour.
This has made a fundamental change in the management of goods circulated on the
market, protecting consumers and Vietnamese businesses.
The domestic market development plan also offered four groups of measures
which should be taken as following: helping change the perception and behavior of the
community towards domestic goods; supporting the sustainable distribution system of
Vietnamese products; enhancing competitiveness of Vietnamese enterprises,
cooperatives, small businesses in trading activities; improving the effectiveness of the
inspection and control of the market and protecting consumers' rights.
Based on the theoretical basis of previous studies and primary data collected in
March-April 2017, the study looked at the factors affecting the purchasing decision of
made in Thailand products of consumers in Hanoi. Perceived quality, perceived value
perceived risk and country of origin are used as independent variables, while buying
decision is employed as only dependent variable in the theoretical framework with four
hypotheses. The results showed that the three factors of use of perceived quality,
perceived value and country of origin had positive effects while perceived risk had
negative effect on the purchasing decision of made in Thailand products in Hanoi market.
During the implementation, due to time constraints and other conditions the
subject has certain limitations. First, the subject focus on studying the factors that affect
the decision to buy made in Thailand products in Hanoi, mainly based on the Theory of
Reasoned Action model and Theory of Planned Behavior accompanied with inheritance
the results of previous studies. Therefore, when applied in Vietnam market, more
appropriate adjustments need to be made in order to grasp the most general behavior of
buying made in Thailand products. Second, the study was conducted only with
consumers in Hanoi. The results can represent the market if the study was conducted in
many other provinces in the country. Thirdly, the sample is chosen in a convenient
manner with a non-probability sampling mode, although it is guaranteed according to
the sampling theories, however the generalizability of the study is not high. Fourthly,
this study only considers attitudinal factors, perceived quality, perceived value,
perceived risk and country of origin. In addition to these factors, there may be other
factors influencing the consumer's intention to purchase and decide to purchase made in
Thailand consumer products that this study has not addressed. Fifth, the proposed
solutions of the author are personal based on the results of research, the practical
application will also depend on type of individual business and its current situation.
Based on the limitations of this research topic, the authors point out the following
research implication: First, theoretical models included should be combined adjusted to
the realities of market and the scope of research. Second, a more extensive research
should be conducted in other provinces across the country. Third, the following studies
may choose a larger sample with a probabilistic approach to make the result more
generalize. Fourth, many other factors may be included to ensure a more precise study.
Finally, the next topic can choose a specific field or sector to study consumer purchasing
decisions. For example, the factors that affect consumers' decision to buy made in
Thailand product in the FMCG sector, technology - food, etc.