Factors affecting intention to invest in gold evidence from ho chi minh city , vietnam

Master Thesis FACTORSAFFECTINGINTENTIONTOINVESTINGOLD:E VI D ENCE FROMHOCHIMINHCITY,VIETNAM TruongTrungTaiUnivers ityofEconomicsHCMCInternati onalSchoolofBusiness... Researchlimitation..

Master Thesis FACTORSAFFECTINGINTENTIONTOINVESTINGOLD:E VI

D ENCE FROMHOCHIMINHCITY,VIETNAM

TruongTrungTaiUnivers ityofEconomicsHCMCInternati

onalSchoolofBusiness

Acknowledgement 7

Abstract 8

Chapter1:Introduction 9

1.1 Background 9

1.1.1 Gold asaglobal featureasset 9

1.1.2 DemandforgoldinVietnam 13

1.2 Problem statement 15

1.3 ObjectivesandAims 16

1.4 Researchscope 16

1.5 Significanceofresearch 16

1.6 Thesis structure 17

Chapter2:ReviewofLiterature 19

2.1 Intentionto investingold 19

2.2 Factorsaffectintention toinvestingold 22

2.2.1 Economicbenefits ofinvesting 22

2.2.2 Macroeconomicunexpectedconcern 24

2.2.3 Perceivedinsecurity 25

2.2.4 Conveniencetoinvest 27

Chapter3:MethodandData 29

3.1 Theorical model 29

3.2 Hypothesis 29

3.3 Qualitativeresearch 30

3.3 Measurement 31

3.4 Sample 35

3.5 Data Analysissteps 35

4.1 Descriptivestatistics 36

4.2 Datareliabilitytest withCronbach’sAlpha 38

4.3 ExploratoryFactorAnalysis(EFA) 41

4.4 Regression analysis 44

4.5 Discussionoffindings 47

Chapter5:Conclusion 50

5.1 Conclusion 50

5.2 Implications 52

5.3 Researchlimitation 53

References 54

Appendices 60

AppendixA:Questionnaire 60

AppendixB:Codifiedvariables 63

AppendixC:EFAresultsofindependentanddependentvariables 66

AppendixD:Regressionresults 72

Table1:Samplespecification 36

Table2:Cronbach’salphaofmeasurementscales 39

Table3:EFAresults 41

Table4:Correlationsofvariables 44

Table5:TheANOVAanalysis 45

Table6:Regressionresults 46

Table7:Summaryofhypothesistesting 47

Listoffigures Figure1:Top30countries/organizationholdinggoldasreserveassets(tonnes) 10

Figure2:Worldgolddemandinperiod2000-2015 11

Figure3:Worldgoldpriceperiod1970-2015 11

Figure4:GoldETFholdinginglobalmarket 12

Figure5:Golddemandinselectedcountries 13

Figure6:Vietnamgolddemandperiod2000-2015 14

Iwouldliketoexpressmysincerethankfulnesstomyresearchadvisor,Dr.PhamPhuQuoc,whohasguidemeandgavemepossibilitytocompletethisthesis.Iamsuret h a t t h i s t h

e s i s w o u l d n o t h a v e b e e n p o s s i b l e withouthiss u p p o r t Ia l s o t h a n k Prof.Nguyen

D i n h T h o f o r h i s ex p e r t , v a l ua b l e g u i d a n ce , i ns i g h t f u l c o m m e n t s , a n d e n c o

u r a g e m e n t e x t e n d e d t o me

IwouldliketoexpressmygratitudetoallISBstaffsthatsupportednecessarymaterialsandassistance.Especially,Iwouldliketogivemyspecialthankstomyparentwhogavemeinvaluableadvicesandmotivationinmylife

TruongTrungTai

AccordingtoWorldGoldCouncil2015report,Vietnamisoneoftopgoldconsumingcountries.TheimpactofgoldonVietnameconomyisuncontroversial.Thiss t u d y aimstoinvestigatethefactorsaffectingpeople’sintentiontousegoldasinvestmenti n s t r u m e n t Wit

ht h e sampleo f 2 4 7 i n d i v i d u a l s i n HCMC,t h e r e s u l t s showt h a t t h r e e factors(EconomicBenefits,MacroeconomicConcern,andPerceivedInsecurity)impacts i g n i f i c a

n t l y onIntentiontoInvestingold

Keywords:g o l d , i n v e s t m e n t b e h a v i o r , V i e t n a m , d e t e r m i n a n t

s , r e a s o n e d a c t i o n approach

andductileofallthemetals,andespeciallygoldisratherscarcewithestimatinggoldintheeartharound170,000t o n e s

Goldwasf i r s t u s e d asj e w e l r y i n 3 0 0 0 B C a t M i d d l e E a s t e r n A f t e r 1 5 0 0 years,t h e Shekel,firstformofgoldcoin,wasusedas standardoftradingandexchangeforgoodsinarea.I n1091B.C,goldwasusedasformofmoneyinChina,a bigcountryofancientAsialand.Sincethebeginningof18thc e n t u r yuntiltheshutdownofBrettonWoodregimein1970s,goldi s usedasinternationalstandardforconductingtransactionsandcurrencyexchangearoundtheworld

Ing l o b a l c o n t e x t , goldi s a c c e p t e d a s “ r e a l money”,u n l i k e o t h e r l e g a l t e n d e r c u r r

e n c y havetodependonthepoliticalandeconomicinfluenceofissuingcountryforsecureitsvalue.T h i s isthe reas on whymos t ofc e n t r a l ban ks alwayskeepa portionof g o l d intheirforeignr e s e r v e TheUnitedStatesnotonlyasastrongesteconomy,isalsoacountryholdsthelargestg

o l d stockintheirtreasury

organizationholdinggoldasreserveassets(tones)Source:WorldGoldCouncil,2015

Goldisalsousedforindustrialmaterials,religiouscustomsaswellastorepresentwealtha n d poweraroundtheworld(Bernstein,2000).Becauseofitsusefulness,theintrinsicvalueofg o l d stillmaintainhighandirreplaceable.Golddemandinglobalmarketisincreasingbecauseo f recentchaosininternationalfinancialmarket,aswellassomewarriskaroundtheworld.Goldp r i c e s i n c r

e a s e d c o n t i n u o u s l y si nce t h e d o t

-c o m -c o l l a p s e i n t h e year2 0 0 0 T h e n g o l d p r i -c e wassupportedbyaseriesofe-conomi-c-crisesfollowed,suchas“theglobalfinancialcrisisi n year2008”, “theGreekpublicdebt crisisinyear2010”.Itsreachthe

peakatmorethan1650USD/ounceintheyear2012,thengoldpricedecreasesaftertherecoveryoftheUSeconomywasconfirmed

Figure2:Worldgolddemandinperiod2000-2015Source:ThomsonReuters

Figure3:Worldgoldpriceperiod1970-2015Source:ThomsonReuters

Asia Europe

North America

Goldiswidelyacceptedasinvestmentinstrument,sometimescalled“safehaven”.Investmentingoldaccountformorethanone-

thirdoftotaldemandforgoldinglobalmarket( W o r l d GoldCouncil,2015).Thisshowthatgoldhasbeenafavoredchoiceforinternationalinvestor todiversifytheir portfoliosagainst

therea r e

severalwaystoparticipateingoldinvestment,physicallyandnon-physically.Particularly,o n e candirectlybuyorsellgoldbaringolddirect marketssuchasjewelrystores,banks,orsomefinancialservicecompaniesetc.Anotherway,theycanalsoparticipateinsomee x c h a n g e topurchasegoldexchange-

tradedfunds(ETFs)whichisainvestmentvehiclelikecompanyshare,theyarelistedinpublicexchangeandtheirvalueisassociatedwithgoldpriceinthemarket

Figure4:GoldETFholdinginglobalmarketSource:Blo

omberg

1.1.2 DemandforgoldinVietnam

InVietnam,goldhasbecomeamaintraditionalassetfortheaccumulationofwealthforal o n g time.AccordingtoWorldGoldCouncil(2015),Vietnamisoneoflargestgoldc o n s u m p t i o

importantevents,suchasweddingorstart-upabusiness,goldjewelryisanindispensableitemi n thesedays

Figure6:Vietnamgolddemandperiod2000-2015Source:ThomsonReutersInVietnam,suchasahugedemandforthisspecialkindofgoodmakegoldbecomeoneoftheprioritychoicetoreservewealthforalongtime.Goldisapopulargoodinsociety,event h a t everymarketinVietnamhaveatleastonegoldjewelry store.Tradinggoldandforeignc u r r e n c i e s

assetshaveveryimportantrol e i n Vietname c o n o m y I n Vietnam,c i t i z e n s h a v e t o l e g a l l y p

u r c h a s e g o l d b a r s a t somel i c e n s e d institutions(Nhu&Trang,2014)

o l d inhouseholds,estimatingthereare400to1000tonesofgoldkeptinhousesofVietnamesef a

m i l i e s ( T h u y , 2 0 1 3 ) T h e p e o p l e u s e g o l d a s h e d g i n g i n s t r u m e n t a g a i n s t h i g h i nf l

at ion environment,whichcouldcauseimpairmentontheirwealth.ThedemandforgoldinVietnammaketheeconomyhavetroublebecausethegoldimportcontributetothedeficittradeb a l a n c e throughrecentyears

1.2 Problemstatement

Basedonaforementionedinformation,itisclearthatgoldmarketplayaveryimportantroleinVietnameconomicsituation.Goldisanattractiveobjectin t h r ee typesofg ro up : the g o v e

r n m e n t , thebanksandtheinvestors.Thegovernmentwanttoincreasecapitalforeconomicdevelopment,whichcurrentlystayinformofgoldinhouseholds The bankswanttor a i s e d e p o s i t f u n d t h r o u g h g o l d -

r e l a t e d f i n a n c i a l servicef r o m V i e t n a m e s e households.T h e i n v e s t o r s wanttoinvestigatethereasonsbehindgoldpricevolatilityinVietnam

TherearemanystudiesaboutgoldmarketinVietnam,butmostofthempayattentionone m p i r i

c a l

researchongoldpricesandmacro-relatedstudiesaboutinvestmentbehaviorso f Vietnamesehouseholdstowardgold.Althoughtherearealsosomeresearchesthathavebeenc o n d u c t e d inothercountries(Maheranetal2008;Lutter,2008;Hundaletal,2013),however,cultural differencemaynotbeapplicablefordifferentcountrycontext.Thisstudywillfillin

relatedissues(Hoang,2004;Hauetal,2013;Sy,2011;Lai,2011).Untilnow,therearenotanymicro-thisg a p i n t e r m s o f u n d e r s t a n d i n g f a c t o r s a f f e c t i n g i n t e n t i o n i n v e s t i n g o l d o fVietnameseh o u s e h o l d s

firstly,thedemographicstructureofthisc i t y isdiverse, meansthatthecityhasmostofpeoplefromalloverthecountries;secondly,g o l d marketinHCMCisveryactiveandeasytoaccesshugenumberoflicensedinstitutions.T h i s studyisconductedbyquestionnairesurveymethodtoexplorein-deptunderstanding off a c t o r s affectingdecisiontoinvestingoldofindividuals

prospectisdependonthefundamentalneedsofpeoplearoundtheworld.Theunderstandingabo ut motivationbehindgolddemandsofpeopleindevelopingcountrieslikeVietnamcouldh e l p toforecastthelong-termdemandofthegold.

ForVietnam,this

researchhaveasignificantroleinpolicymakingprocesstoregulatetheg o l d market.T h e l a r g e importf r o m g o l d d e t e r i o r a t e t h e t r a d e b a l a n c e i n V i e t n a m a n d p u t p r e s s u r e onexchangeratemanagement.Understanding whatmakesVietnameselovegoldis t h u s veryimportanttocontrolthegoldmarketanditsimpactoneconomy

1.6 Thesisstructure

Thispaperisorganizedasfollow:

Chapter1:thischapterpresentthehistoryofgolddemandintheworldandinVietnammarket,asw e l l a s d i s c u s s e s a b o u t t h e p r o b l e m f a c e d byV i e t n a m g o v e r n m e n t

a b o u t g o l d demand

Chapter2:thischapterpresentthetheoreticalperspectivesof theresearch,contextandthefactorsthatmatters

Chapter5:thischapterisforconclusionandsomeissuesrelatedtothisresearch.

2.1 Intentiontoinvestingold

AccordingtoAckertandDeaves(2010)theinvestingisacomplicatedprocessinhumanmind.Investmentatsimplemeaning:thespendingofmoneyorcapitalinanefforttoincreasew e a l t h Themajorityofushavebeentaughtthatonlycanmakemoneybyearningajobandfocusonit,andthat'sexactlywhatmostofusdo.Thebigproblemis:ifwewantmoremoney,w e havetoworko ve

r ti me, andwehavethe moneyinhandb ut notimetospendonleisure p l e a s u r e s Wecannotmakeacopytoincreasetheirworkingtime,soinstead,wehavetogiveu p partofpropertytomakethemworkforus.Thatway,whilewe're busyinwork,orevenwhileyou'remowingthelawn,sleep,readnewspapersorcommunicatewithfriends,we canstillearnmoneyelsewhere.Quitesimply,investingactivitiescanmakeourmoney

toworkforu s tomaximizetheearningpotentialratherthandemandinghigherwages,overtimedecisionorf i n d i n g anewjobwithhigherpay

Investmentisnotagamble.Gamblingistobetonanuncertainoutcomewiththehopethatyouc a n e a r

n m o n e y ifl u c k i l y th e e x p e c t e d e v e n t o c c u r s H o w e v e r , o n e r e a s o n t h a t p e o p l e c o

n f u s e i n v e s t i n g a n d a g a m b l e b e c a u s e o f t h e wayt h a t somep e o p l e c o n d u c t i n

v e s t m e n t a c t i o n Fore x a m p l e , s o m e b o d y mighth e a r t h e rumorsa b o u t c o m p a n y ’ s

i n f o r m a t i o n b e i n g smuggledo u t a n d t h e y buyt h e companys h a r e withoutc a r e f u l analysisi t s f i n a n c i a l s t a t u s , b a s i c a l l y theirbehaviorlikeputtingmoneyintoacasino

Expectationtheoryclaimthatinvestortendstoseeasignificantabilitytooffsetthelossesr a t h e r thanmakealotofprofit.Inthecaseofinvestmentswiththeabilitytobringprofit,theyl i k e tograspimmediatelythecurrentprofitsratherthantryingtocontinuetoinvestinordertog a i n moreprofitsinthefuture.Intheoppositecase,wheninvestmentsareatriskoflosses,theytry tomaintaint h e h o p e t h e situationwillg e t b e t t e r a n d p r o f i t a b l e i n t h e f u t u r e d e s p i t e t h e g r e a t e r r i s k o f l o s s i s h u g

e B a s e d o n t h e i n f o r m a t i o n t h e p o s i t i v e d i r e c t i o n i n t h e market,in v e s t o r s buya n

d w i l l promptlyproceedt o sellwhenpricesa r e risinga n d a c h i e v e d e s i r e d p r o f i t a b i l i t y analysiswithoutt h e c a p a c i t y toi n c r e a s e p r o f i t s B e c a u s e theyb e l i e v e t h a t t h e c u r r e n

t assetpricefullyreflectstheexpectedinformation

The“adverse risktheory”suggestsynonym oft hi s behavior A s y m m e t r i c natureo

f th e psy ch olog y ofinvestorsbetweenthevaluestheyexpecttoprofitandloss,istheriska

hasshownthatpeopleweigh“losspain”ismanytimesmoret h a n t h e “ p r o f i t g a i n ” Sucha s i n v e s

t o r s t e n d t o maintainthel o s s p o s i t i o n i n t h e h o p e t h a t prices willeventuallyrebound.Theadverserisktheorycanexplainthebehaviorofinvestorsh o l d i n g assetforlongtimewhilepricegodown

“Mentalaccountingtheory”provideainterestingexplanationforthetopic.Investorstendto splitthedecisionsonthe"virtualaccounts"inthebraininsteadofcombiningthemintoau n i f i

e d whole,andgenerallyhandlethesedecisionsindependently,sodonotpayattentiontot h e correlationoftheseaccounts.Andthen,theymakeagreatdecisionlookedreasonable,butinfactiswrongbecauseinrealityeventstendtobecorrelatedwitheachothers

Somepsychological testhave shownthat peoplege ne ra ll y believethattheybetter

t ha no t h e r s , thisoftenexaggeratedtheirunderstanding.Overconfidentstateincreasetheinvestmenta c t i v i t y becauseitmakesinvestorsreadyfortheirviewsthatignorethefurtherreferencefromo t h e r investors.Overconfidentinvestorsarealwaysperceivedtheiractionslessriskythanotheri n v

e s t o r s feel.Sometimestheseoverconfidentinvestorsmisinterpretthevalueofinformationtheyreceive,nottheauthenticitybutalsothesenseofwronginformation

The“conservativetheory”alsosuggestthefamiliarexplanationaboutinvestingprocess.Wheneconomicconditionschangepeopletendtoreactslowlytochanges,theytiedtheirmindtothe generalsituationinaearlierperiod.Thatmeanswhentheybelieve

theeconomydecline,theysaidthatthisisonlytemporary,long-termeconomyisstillgoingup,buttheycannotseet h e signalsf o r a cy c l i c a l d o w n t u r n h a s s t a r t

e d Anda f te r a pe r i o d o f time,theyha s n o t yetf ound thesituationimproved,peoplerushedtosellasset.Asaresult,themarketfluctuationsu n e x p e c t e d l y

The"herd"e f f e c t h a s alwayse x i s t e d i n t h e p r o c e s s o f d e c i s i o n makingo f i n v

e s t o r s , r e g a r d l e s s ofwhether theyhaveexperienceor not.Theinfluence ofthistypeofpsychologybecomesc l e a r e r w h e n i n v e s t o r s u n d e r p r e s s u r e t o maked e c i s i o n squickly,withoute n o u g h i n f o r m a t i o n needed.Whenpersonalconfrontationwiththeopinionofthegroup,theytendtochangetheiranswers,becausetheythink,alltheotherscannotwrong.Intentioni s d e f i n e d asi n d i v i d u a l p e r c e p t i o n t o w a r d s p r o b a b i l i t y t o c o

n d u c t b e h a v i o r ( F i s h b e i n andAjzen,1975;GopiandRamayah,2007).Individualinvestors’intentiontowards

atypicalinstrumentmaybestronglyimpactbytheirattitudesabouttheperceivedcharateristicsab o u t thisinvestinginstrument.Investorsmaybeinterestedininvestinginaparticularinstrumentonlywhentheyhavetimeandskilltoevaluatetheinstrumentandhavemoneytoi n v e s t T h e r e f o r e ,

2.2 Factorsaffectintentiontoinvestingold

2.2.1 Economicbenefitsofinvesting

Thetensionofrelationshipbetweenhomecountryandothercountriesisalsoamotivationf a c t o r

forinvestortochoosegoldassafeassetbecauseofitsglobalacceptance.Recently,the

(BaurandLucey,2010).InVietnam,t h e r e areoftenfourchannelsforindividualstoinvesttheirmoney:realestate,gold,stock,andsavingdeposits(Vy,2014).Therefore,gold couldbeseenasinvestmentvehiclefor diversifingp o r f o l i o reason.

Tax-relatedissuesingoldinvestmenthavenotyetfulfilled,sountilnowthereisnottaxi n c u r r e d whenpeoplesellingtheirgoldasset.Thisisabigadvantageofgoldinvestmentwhencomparedtootherinvestingvehicles(currentlyincometaxisappliedforstockandrealestatet r a d i n g )

2.2.2 Macroeconomicunexpectedconcern

Thereisanuncontroversialagreementthatmacroeconomicnewsandgoldpriceiscorrelatedstrictlyinglobalcontext.Therearesomanyevidencefoundthatgoldpriceisverysensitivetomacroeconomicindicators(RoacheandMarco,2009)

Therearemanyo f macroeconomicindicators,butfewofthemareclosetopublick n o w l e dg e AccordingtoRutaandAnjali(2014)therearefiveeconomicindicatorthathavemostimpactinvestorsinmarket,theyare:priceindex,grossdomesticproduct(gdp)growth,e x c h a n

g e rate,foreigninvestmentandthemoneysupply

Oneofthemostimportantrolesofgoldisforinflationhedging.InVietnam,goldpriceandpriceindexarestronglycorrelated,hencegoldseemstobeagoodinstrumentforinflationd e f e n

d i n g (CucandReza,2013).Somestudiesshowthatinvestorschoosegoldasdisinflationinstrumentbecausetheybelieveinhigherreturnofgoldduringinflationperiods,theyalsohaveg o o d characteristicstobecomeeffectivehedgeinsteadofpurelyfinancialassetslikestocksandb o n d s

(WorthingtonandPahlavani,2007;Lutter,2008)

ExchangerateVND/

USDconsecutivelydepreciateinrecentyears,makedomesticc u r r e n c y l e s s a t t r a c t i v e f

o r savingo f h o u s e h o l d s InVietnam,i n d i v i d u a l s a r e r e s t r i c t e d t o

 Radicaluncertaintysecuritydealswith“measuresdesignedtoprovidesafetyfromexceptionala n d r a r e v i o l e n c e /

t h r e a t s , whicha r e n o t d e l i b e r a t e l y i n n a t e d bya n e x t e r n a l orinternalagent,butcan stillthreaten drasticallytodegradethe qualityofl i f e ”

 Informationsecuritydealswithfeelingtobesafewithcurrentinformationsystemsuchasfreeofhacker,virusorsomethingtostealpersonalinformationandharmth e informationsystem

2.2.4 Conveniencetoinvest

Whyi s t h e r e investment vehiclemorepopularand preferable,eveniftheyarenotprofitable thanothers?Oneofmainreasonisthat: theconveniencetoinvest inthatinstrument.AccordingtoChang&Polonsky(2012)“convenienceistheabilitytoreduceconsumers’non-

m o n e t a r y costs( i e , time,e n e r g y ande f f o r t ) whenp u r c h a s i n g oru s i n g g o o d s a n d s e r

v i c e s T h e s e arefivetypesofconvenience:

 Decisionconvenienceis“importantwhenconsumersneedtodecidehowtoobtainapart

icularservicegiventhatmultipleprovidersanddeliveryoptionsareusuallyavailable”.Thismeansthatpeoplepreferthegoodsorservicesthattheyhavelessc h o i c e s

t h a n

o t h e r , andofcoursemaketheythinkthattheiropportunitycostislessthano t h e r p l a c

e s G o l d i s a d h e r e n t a b e s t c h o i c e c o m p a r e d too t h e r i n v e s t m e n t suchasrealestateorstocks(theyhavesomanyoptionstopickup)

 Accessc o n v e n i e n c e i n v o l v e s t h e “ perceivedtimea n d e f f o r t neededt o

i n i t i a t e servicedelivery”,thatispeoplepreferthegoodand servicewithfeature“serve-as-you-

want”,withtechnologytodaycompanycanprovidegoodsandservicesaroundt h e clock,24/7,throughtelephoneorinternet-basedsystem

 Transactionconvenienceinfluencesconsumers’“whentheyneedtosecureaservice”,f

orexample,alotofpeopletodayfearofonlineshoppingbecausethey

worryabout hackingthrough internet,sotheysupposethat directshopping

ismoresecured!

 Benefitconvenienceinvolves“consumers’experienceoftheservice”,ortheextrav

a l u e theyreceivewhentheypurchasegoodorservices,forexample,wepreferagiftstorewithextrapackedservices



Post-benefitc o n v e n i e n c e r e l a t e s t o a c t i v i t i e s “ afterc o r e i n t e r a c t i o

n s h a v e occurred”suchasthegoodreturnpolicy,takecarecustomerserviceorsomethingtokeeplongtermrelationshipwithbuyer

Perceived economic benefits

Theinterviewwasstarted withpresenting theorganization, thepurposeofth e researchand howitmakeinsimpletermstoclarifythetheirroleforinterviewees.Theinformationwasp

respondents.Beforetheinterviewwasconduct, respondentswereexplainedthattheiranswerswillbekeptconfidential

begivenexpressioningeneraltermssuchas“Gladtomeetyou,h owareyoutoday?”or“Yourdressisfashionable,wheredidyoubuyit?”.Thesequestionso f t e n stimulateanintervieweetogiveopinionsinmoreopenenvironment, theywillexplainf u r t h e r t h e i r a n s w e r s d u r i n

g t h e i n t e r v i e w T o a v o i d m i s l e a d i n g a n s w e r , t h e a u t h o r d i d n o t revealopinionsonthetopicsdiscussed.Somequestionformatwasstrictlyusedduringi n t e r v i e w suchas:“CanyoutellmeaboutthegoldinVietnam?”,“Whydoyouchoosegoldasinvestment?”,“Whatdopeoplethinkandfeeltohearaboutpurchasinggold?”

Afterhavingin-depth-interviewwithrespondents,thesamplequestionnairewaspresentedt o clarifytheunderstandingofpeople

tobeorganizedtoclearlyandconsistentunderstandingthroughmostofrespondents.Inadditiontoq u e s t i o n s , r e s p o n d e n t s werea l s o askeda b o u t t h e c o v e r l e t t e r tomakei t morep o l i t e

Arey o u a g r e e w i t h t h e f o l l o w i n g :

(1.S t r o n g l y d i s a g r e e ; 2 D i s a g r e e ; 3 Disagreesomewhat;4.Neutral;5.Agreesomew hat;6.Agree;7.Stronglyagree)

Arey o u a g r e e w i t h t h e f o l l o w i n g :

(1.S t r o n g l y d i s a g r e e ; 2 D i s a g r e e ; 3 Disagreesomewhat;4.Neutral;5.Agreesomew hat;6.Agree;7.Stronglyagree)

conductedbyq u est i on n ai re

surveymethodtoexplorein-depthunderstandingoffactorsaffectingdecisiontoinvestingoldofindividuals.Thereare300handoutsofquestionnaireareissue,thenumberofvalidreturnedis247(82.3%),thedataiscollectedfromconvenientsampling

3.5 DataAnalysissteps

Aftercheckingforerrorandvalidofrawdata,theproposedproceduresforthisstudyisasfo ll ows:Step1:CheckingmeasurementreliabilitybyCronbachalphacriteria

Step2 : UsingFactorAnalysis( E F A

-E x p l a t o r y FactorAnalysis)f o r c h e c k i n g f a c t o r structureofdata

Step3:Applingmultipleregressiontoexplorethedeterminantweightoffactors

Thispartpresentsthedescriptivestatistics,thereliabilityandhypothesesetesting.Ther e l i

a b i l i t y ofdatawillbea s s e s s e d byusingC r o n b a c h ’ s a l p h a a n d E F A A f t e r t h a t , t h ehypothesesa n d theeffectoffactorsoni n v e s t m e n t i n t e n t i o n willbetestedbythec o l l e c t

distributeda m o n g g r o u p s o f income.T h e m a j o r i t y ofp a r t i c i p a n t s h a v i n g i n c o m e from5

- 15millionVND/

month( 6 4 8 % o f s a m p l e s i z e ) , a n d a r e l a t i v e s i g n i f i c a n t p e o p l e h a v e i n c o m e morethan15million/

month(30%ofsamplesize).Mostofparticipanthaveeducationlevelatu n d e r g r a d u a t e (51.4%)andhighschooldiplomat(27.1%).Thesectoroftheircareerisfairlyd i s t r i b u t e d amongpublic(42.5%)andprivate(42.5%)sectors.Thereareabout61.5%ofthe sampleusedtobuygoldforinvestmentbefore,andmostofthem willingtobuyatjewelryshop( 5 7 5 % ) andatbanks(30.8%)

4.2 DatareliabilitytestwithCronbach’sAlpha

Reliabilityofthescalewasassessedbymeansofinternalconsistency

throughCronbach'salphacoefficient.UsingthemethodofcoefficientreliabilityCronbach'sAlpha(beforefactor