factors affecting online shopping behavior of consumers in hanoi

FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL ECONOMICS ---***---RESEARCH PROPOSAL Research topic: Factors affecting online shopping behavior of consumers in Hanoi Class: KTEE206GD1

FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL ECONOMICS

-*** -RESEARCH PROPOSAL

Research topic:

Factors affecting online shopping behavior of consumers in

Hanoi

Class: KTEE206(GD1-HK1-2223).1 Instructor: Prof Pham Thi Cam Anh

Hanoi, 2022

TABLE OF CONTENTS

TABLE OF CONTENTS 2

1 Introduction 3

1.1 Research topic 3

1.2 The reason for choosing the topic 3

1.3 Research objectives 3

1.3.1 General objectives 3

1.3.2 Specific goals 3

1.4 Subjects and scope of study 3

1.5 Research Questions 4

1.6 Overview of the previous research situation 4

2 Literature review and theoretical framework 4

2.1 Literature review 4

2.1.1 Domestic research 4

2.1.2 Foreign research 6

2.2 Foundational theoretical studies related to research questions 8

2.2.1 Theoretical research concept 8

2.2.2 Theoretical research model 10

2.3 Proposing a research model 12

3 Research process and methods 14

3.1 Research process 14

3.2 Research samples and data collection methods 14

3.3 Data processing methods 15

3.3.1 Cronbach's Alpha Reliability Test 15

3.3.2 Discovery Factor Analysis (EFA) 15

3.3.3 Pearson Correlation Analysis 16

3.3.4 Regression analysis 16

4 Access to research topics 16

4.1 Approach to the topic 16

4.2 Summary of research problem and model proposal 17

4.3 Propose future research ideas 17

4.4 Implications for management practices or policies 18

References 19

1 Introduction

1.1 Research topic

Factors affecting online shopping behavior of consumers in Hanoi

1.2 The reason for choosing the topic

Online shopping is growing rapidly in Vietnam, especially in the period of 2016-2020 [ CITATION Nhi21 \l 1033 ] The average growth rate of e-commerce in Vietnam is about 30% (up from 4 billion USD in 2015 to about 11.5 billion USD in

2021[ CITATION Hiệ22 \l 1033 ] In which, the online retail sector increased by 46%, ride-hailing and technology food increased by 34%, marketing, entertainment and online games increased by 18%, particularly the online tourism sector decreased by 28% [ CITATION DPD22 \l 1033 ]

With the current rapid development rate, researchers and e-commerce businesses need to have appropriate policies to attract customers to buy on their e-commerce sites It is necessary to have an academic, general study of the customer's purchasing decision process to propose appropriate solutions

Given the importance of research on online shopping decisions, the authors chose the

topic " Factors affecting online shopping behavior of consumers in Hanoi" as the topic

of research on their subject topic Thereby it is possible to systematize research theories about consumers' online shopping decisions, proposing research models Thereby creating a premise and further research orientation for future studies

1.3 Research objectives

1.3.1 General objectives

The overall goal of the topic is to find out factors affecting online shopping behavior of consumers in Hanoi From there, the research will offer solutions to help businesses build a suitable plan to improve business efficiency

1.3.2 Specific goals

The topic sets out the specific research objectives as follows:

Firstly, identify Factors affecting online shopping behavior of consumers in Hanoi

Second, measure the impact of factors affecting consumers' online shopping behavior in Hanoi

Third, verify the differences of the research model and validate the entire theoretical model, thereby adding the theory and proposing management implications for managers to develop and attract customers in Hanoi for online products

1.4 Subjects and scope of study

Subjects of study: Factors affecting online shopping behavior for consumers

in Hanoi

Survey subjects: Consumers in Hanoi.

1.5 Research Questions

1/ What factors affect the online shopping behavior of consumers in Hanoi? 2/ What is the impact of factors affecting online shopping behavior for consumers in Hanoi?

3/ What governance implications are proposed for managers in developing and attracting customers in Hanoi for online products?

1.6 Overview of the previous research situation

Studies on the problem of online buying behavior have been of interest to researchers for a long time The most recent in Vietnam is the study by authors Ta Van Thanh and Dang Xuan On [CITATION Thà21 \n \t \l 1033 ] with the topic "Factors affecting the online shopping intentions of Generation Z consumers in Vietnam"; research by Nguyen Minh Tuan and Nguyen Van Anh Vu [CITATION Tuấ20 \n \t \l

1033 ]“Factors that impact customers' online buying behavior at TIKI VN"; research

by Ha Ngoc Thang and Nguyen Thanh Do[CITATION Thắ16 \n \t \l 1033 ] "Factors affecting vietnamese consumers' online shopping intentions: An extended study of planned behavior theory" Overseas studies such as: Anum Tariq et al.[CITATION Tar16 \n \t \l 1033 ] "Factors Affecting Consumers' Online Shopping Behavior in Pakistan"; Kok Wai Tham et al [CITATION Das19 \n \t \l 1033 ] "Perceived risk factors affecting consumers' online shopping behavior"; Meher Neger and Burhan Uddin [CITATION Neg20 \n \t \l 1033 ] "Factors Influencing Consumers' Internet Shopping Behavior during the COVID-19 Pandemic: Evidence from Bangladesh" These studies have confirmed model theories of behavior and technology adoption that are applicable in the case of studying factors that influence consumers' online shopping behavior

2 Literature review and theoretical framework

2.1 Literature review

2.1.1 Domestic research

2.1.1.1 Research by Ha Ngoc Thang and Nguyen Thanh Do (2016)

Authors Ha Ngoc Thang and Nguyen Thanh Do (2016) had the topic "Factors affecting online shopping intention of Vietnamese consumers: Research to expand the theory of planned behavior" with the goal of exploring the effects of factors on the online purchase intention of Vietnamese consumers based on the theory of planned behavior Results based on 423 observed samples by regression analysis method show that consumers' attitude and perception of behavioral control have a positive influence

on online purchase intention Perceived risk factor has a negative effect on consumers' intention to buy online

Figure 2.1 Research model of Ha Ngoc Thang and Nguyen Thanh Do

Source: Ha Ngoc Thang and Nguyen Thanh Do (2016)

2.1.1.2 Research by Nguyen Minh Tuan and Nguyen Van Anh Vu (2020)

Nguyen Minh Tuan and Nguyen Van Anh Vu (2020) studied the topic "Factors affecting online shopping behavior of customers at TIKI.VN" With the aim of discovering the factors affecting the online purchase behavior of customers at TIKI.VN, with 300 research samples, the authors used the regression method to test the relationships Finally, the results showed that 5 factors affect the online purchasing behavior of customers at Tiki.vn: Perceived ease of use, Useful perception, Reliability, Social factors, Risk perception and Enjoyment

Figure 2.2 Research model of Nguyen Minh Tuan and Nguyen Van Anh Vu

Source: Nguyen Minh Tuan and Nguyen Van Anh Vu (2020)

2.1.1.3 Research by Ta Van Thanh and Dang Xuan On (2021)

Ta Van Thanh and Dang Xuan On (2021) researched "Factors affecting online shopping intention of Generation Z consumers in Vietnam" to assess the factors affecting shopping intention of Generation Z online consumers in Vietnam The author studied 600 observed samples in Vietnam The methods of scale analysis, model evaluation, regression, etc were applied in this study The results showed 4 factors: Perceived usefulness, Trust, Perceived risk and Psychological safety that affect the online shopping intention of Generation Z

Figure 2.3 Research model of Ta Van Thanh and Dang Xuan On

Source: Ta Van Thanh and Dang Xuan On [CITATION Thà21 \n \t \l 1033 ]

2.1.2 Foreign research

2.1.2.1 Research by Anum Tariq et al (2016)

Anum Tariq et al (2016) with the study "Factors affecting online shopping behavior of consumers in Pakistan" The study aimed to evaluate the factors affecting the online shopping behavior of Pakistani consumers The results showed that there are

5 factors affecting online purchase behavior including: Convenience, Financial risk, Product risk, Risk of non-delivery and Return policy

Figure 2.4 Research model of Anum Tariq et al

Source: Anum Tariq et al (2016)

2.1.2.2 Research by Kok Wai Tham et al (2019)

Author Kok Wai Tham et al (2019) has the topic "Perceived Risk Factors Affecting Consumers' Online Shopping Behaviour" research, aimed to assess the impact of risk factors on consumers' online shopping behavior in Malaysia In the study, the author used the regression method with 245 research samples Research shows that product risk, convenience risk, and return policy risk have a positive and significant impact on online shopping behavior Financial risk was found to have a negative and negligible impact on consumer behavior In addition, non-delivery risk was found to have a significant and negative impact on online shopping behavior

Figure 2.5 Research model of Kok Wai Tham et al.

Source: Kok Wai Tham et al (2019)

2.1.2.3 Research by Meher Neger and Burhan Uddin (2020)

Meher Neger and Burhan Uddin (2020) published a study with the title "Factors Affecting Consumers' Internet shopping behavior during the COVID-19 pandemic: Evidence from Bangladesh (Factors Affecting Consumers' Internet) Shopping Behavior During the COVID-19 Pandemic: Evidence From Bangladesh)” The objective of this study is to evaluate the factors affecting the online shopping behavior

of consumers in Bangladesh in the context of the Covid-19 pandemic The study collected data from May 10, 2020 to June 10, 2020 in a personal interview using an online survey method through a structured questionnaire with a five-point Likert scale from 230 people Bangladeshi online consumption Non-probability sampling method was used Data were analyzed using descriptive statistics, reliability analysis, and multiple regression analysis The results show that all factors except price and security have a positive and significant relationship with consumers' internet shopping behavior during the coronavirus (COVID-19) pandemic ) in Bangladesh

Figure 2.6 Research model of Meher Neger and Burhan Uddin

Source: Meher Neger và Burhan Uddin [CITATION Neg20 \n \t \l 1033 ]

2.2 Foundational theoretical studies related to research questions

2.2.1 Theoretical research concept

2.2.1.1 Consumer concept

There are many concepts of the consumer, one of the most popular of which is that of Philip Kotler and Gary Armstrong.[CITATION Kot121 \n \t \l 1033 ] "The

consumer is the audience that the business serves and is the determining factor in the success or failure of the business."

According to the Law on Protection of Consumer Interests 2010: "Consumers are buyers and users of goods and services for the purposes of consumption and activities of individuals, families and organizations"[ CITATION Quố10 \l 1033 ]

Consumers are individuals or organizations that businesses are making marketing efforts towards They are the ones making the shopping decisions Consumers are the beneficiaries of the quality characteristics of products and services[ CITATION Riz01 \l 1033 ]

2.2.1.2 The concept of consumer behavior

Consumer behavior is the activities of consumers in shopping and using products/services This includes identifying needs, seeking information, evaluating alternatives, buying decisions, and post-purchase behavior [CITATION Kot03 \l 1033 ] Theo Philip Kotler [CITATION Kot121 \n \t \l 1033 ], consumer behavior is the behavior of individual consumers when making decisions about the purchase, use and cancellation of products or services

Consumer behavior is behavior that manifests itself in the actions of searching, purchasing, using, or counterfeiting products/services expected by consumers to satisfy their needs [ CITATION Pre09 \l 1033 ]

2.2.1.3 The concept of behavioral intent

Intent is a factor used to evaluate your ability to perform future behaviors

[ CITATION Sol14 \l 1033 ] Theo Ajzen [CITATION Ajz91 \n \t \l 1033 ], intention is a motivating factor, motivating the individual to be ready to perform the behavior

Behavioral intentions are made up of three factors including attitudes towards behavior, subjective norms, and behavioral control [ CITATION Ajz80 \l 1033 ] In it, attitude is "an individual's assessment of the results obtained from the performance of

a behavior"[ CITATION Ajz91 \l 1033 ] It can be said that behavioral intent measures the subject's ability to perform behavior subjectively…

2.2.1.4 The concept of consumer online shopping intent

Anum Tariq et al (2016) argue that "online shopping intent is the ability of consumers to make purchases through an online environment." According to Cai and Cude (2016), a consumer's online shopping intent is a consumer's ability to perform internet shopping behavior The goal of online shopping is the ability of consumers to make purchases over the Internet (Delafrooz & Paim, 2011)

2.2.1.5 The concept of consumer online shopping behavior

Online shopping behavior (also known as Internet shopping behavior) describes the behavior of a consumer's purchase of products or services through the Internet (Ha

& Stoel, 2009) According to Hashim Shahzad (2015) online shopping behavior by consumers is the activity of shopping through online stores on the Internet or online shopping websites

2.2.2 Theoretical research model

2.2.2.1 Rational Action Theory (TRA)

The Theory of Reasoned Action defines the relationship between attitude and behavior in human actions (Ajzen & Fishbein, 1980) Rational action theory is used to predict behavior based on a person's inherent attitudes and behavioral intentions A person will act based on the results they expect when performing the behavior (Vallerand, et al., 1992)

Figure 2.7 Rational Action Theory (TRA) Model

Source: Ajzen & Fishbein (1980)

From the studies of social psychology, models and theories of persuasion, attitudes Psychology researchers Martin Fishbein and Icek Ajzen have developed the rational action theory (TRA) model, which shows that there is a relationship between attitudes towards behavior, subjective norms that influence behavioral intentions and have an impact on human behavior (Ajzen & Fishbein, 1980)

However, rational action theory is not a complete theory for analyzing human behavior (Cooke & French, 2008) According to Ajzen (1991) there is uncertainty about performing the act according to intention

The limitations of the theory range from the assumption that behavior is under the control of the will, the fact that behavior is not necessarily carried out from existing intentions, another limitation is that attitudes and behaviors sometimes have

no connection with intentions Therefore, rational action theory can only be applied to pre-intended behaviors, this theoretical model cannot be applied to unconscious habits and actions, (Ajzen, 1991) In subsequent studies, Martin Fishbein and Icek Ajzen worked on overcoming the limitations of rational action theory

2.2.2.2 Planned Behavior Theory (TPB)

The Theory of Planning Behaviour is a theory that defines the relationship between a person's beliefs and behavior (Ajzen, 1991)

Planned behavior theory is extended from the rational action theory (Ajzen & Fishbein, 1980) According to Ajzen (1991), planned behavior theory aims to improve the theoretical model of rational action by adding to the cognitive factor model that controls behavior, overcoming the limitation that human behavior is completely controlled by reason