Topic research on purchase behaviors of young vietnamese people of organic cotton t shirt to build the business plan for the new brand “prxtect organic tee

UEH UNIVERSITY COLLEGE OF BUSINESS School of International Business - Marketing RESEARCH REPORT 22D1MAR50310102 Subject: Marketing Research Instructor: Nguyen Quoc Hung people of organi

UEH UNIVERSITY COLLEGE OF BUSINESS School of International Business - Marketing

RESEARCH REPORT

22D1MAR50310102 Subject: Marketing Research Instructor: Nguyen Quoc Hung

people of organic cotton T-shirt to build the business plan for the new brand “PRXTECT organic tee”

Nguyễn Thùy Mai Trinh : 31201021083 Nguyễn Cát Phượng : 31201026086

Hà Nguy ễn Hoàn Mỹ : 31201020563 Nguy ễn Hoàng Yến : 31201026442

Võ Th ế Vinh : 31201021320

HO CHI MINH CITY – 21/06/2022

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY 3

1.1 Abstract 3

1.2 Keypoint theory 3

1.3 Research question 3

1.4 Data collection 3

1.4.1 Sample size 3

1.4.2 Research subject 4

1.4.3 Questionnaire 4

1.4.4 Methods 9

1.4.5 Criteria for sampling 9

1.5 Data analysis 9

1.5.1 Analysis methods 9

1.5.2 Result summary 9

2 INTRODUCTION 9

3 DATA COLLECTION 11

4 DATA ANALYSIS 12

4.1 Analysis methods 12

4.1.1 Cronbach Alpha’s reliability test 12

4.1.2 Descriptive statistics 13

4.2 Result and findings 14

4.2.1 Demographics 14

4.2.2 Main data 16

5 LIMITATIONS AND FUTURE RESEARCH 40

6 CONCLUSIONS AND RECOMMENDATIONS 41

6.1 Conclusions 41

6.2 Recommendations 41

7 REFERENCES 42

8 APPENDICES 43

9 CHECK PLAGIARISM 43

1.2 Keypoint theory

a Organic cotton T-shirt

Organic cotton clothing is a healthier, more eco-friendly alternative to regular, organic” cotton It’s created according to organic family guidelines, meaning no genetically modified aids (seeds, pesticides, chemicals) were used Organic cotton is also certified by the Global Organic Textile Standard (GOTS)—this is the worldwide textile processing standard recognized for organic fibers, which includes both ecological and social specifications

“non-b Consumer behavior theory

Consumer behavior theory is the study of how individuals make purchasing decisions, with the goal of assisting businesses and marketers in capitalizing on these behaviors by forecasting how and when a consumer makes a decision to purchase It aids in the identification of factors that impact these decisions, as well as the identification of tactics for proactively manipulating behavior

• Sample size needed: 300

• Sample size collected: 303

1.4.2 Research subject

Young Vietnamese people

1.4.3 Questionnaire

The questionnaire consists of 2 parts:

• Part 1: includes questions about the demographics of the survey object

• Part 2: includes measurement contents related to the research model

Total: 31 questions divided into 6 chapters

4

What is your average income?

< 1.000.000 VND 1.000.000 - 3.000.000

VND 3.000.001 - 5.000.000

VND 5.000.001 - 8.000.000

VND 8.000.001 - 10.000.000

6 How many T-shirts do you buy every year?

9 When do you usually wear a T-shirt?

(Many choices)

Go to school

Go to work Hang out Special occasion Holiday

At home

10 Where do you currently buy your T-shirts?

(Many choices)

Local shops Social media E-commerce Shopping center

Factors affect purchase behavior of consumers

11 What attracts you most in buying a T-shirt?

(Many choices)

Quality Price Design Brand Color Style Hype Eco-friendly

Production process Origin Maintenance Eco-friendly Waterproof Others

13 What style do you prefer?

(Many choices)

Basic / Minimalism Vintage, Retro Classic Streetstyle

14 What T-shirt size do you usually buy?

15 What item do you mix & match with a T-shirt?

(Many choices)

Skirt Short Jeans Pants Overalls

16

Pastel Black & White

17 Where would you like the design to be printed?

(Many choices)

Front Back Left sleeve Right sleeve High-back neck Back bottom hem

18

Below are a list of features that are part of the

T-shirt How important is each feature to you?

19 Why do you choose to buy a T-shirt?

Brand Quality Design Meaningful project Campaign

20 How do you find out about organic cotton T-shirt

labels or brands?

(Many choices)

Friends Sponsorship of events Sales/service representative Magazines Advertising Shops Other

21 What material do you want your T-shirt to be

made of?

Polyester Cotton Organic cotton Linen Poly-cotton blend (50/50)

Other

22

Evaluate these following statements according to

your clothes using habit

• I never wear a T-shirt twice

• I wear several T-shirts a week

• I only have one t-shirt the whole week

(many ones but the same T-shirt)

Strongly disagree - Strongly agree

1-5 1-5 1-5

23 What do you usually buy T-shirts for?

Wearing Collecting Gift Others

24 Which factors of t-shirt stores that affect your

repurchase decision?

Large space Comfortable scent Many fitting rooms Staff’s attitude Store decoration Others

25 What would be your preferred design package for

a T-shirt?

(Many choices) Logo design Image design Quotes design Cartoon design Other

26

Sustainable Knowledge:

• Growing organic cotton does not need

hazardous chemicals and pesticides

• Organic cotton shirts are good for human

health and the environment

• I am concerned about the impact of cotton

t-shirt production on the environment

• The use of larger quantities of natural

fibers will significantly decrease energy consumption

• Organic cotton t-shirts ensure fair trade,

and sustainable environmental development

Strongly disagree - Strongly agree

1-5 1-5 1-5 1-5 1-5

27 If you buy an organic cotton t-shirt, what do you

expect?

(Many choices)

More environmentally

friendly Softer More durable Better for skin More sustainable / Last

longer Better quality More breathable More expensive

Willing to pay

28 How much do you normally pay for an organic

cotton T-shirt?

Under 100.000 VND 100.000-300.000 VND 300.001-500.000 VND Above 500.000 VND

29 How do you like to pay for a T-shirt?

(Many choices)

Cash Momo Credit/ Debit card

Purchase behavior

30

Evaluate these following statements about

purchase intention organic cotton T-shirts

• I think organic cotton T-shirts motivate me

to purchase

• Before buying organic cotton T-shirt, I

compare its price with other traditional/branded T-shirts

Strongly disagree - Strongly agree

1-5 1-5 1-5 1-5

• I think internet marketing encourages me to

buy organic cotton T-shirts

• I feel that the price of an organic cotton

T-shirt affects my purchase behavior

31

Purchase Intention

• I would like to purchase organic cotton

T-shirts in the future

• If I see organic cotton T-shirts, I intend to

purchase or consider purchasing it

• If I see a retail store selling organic cotton

T-shirts, I intend to visit the store to purchase a product

Strongly disagree - Strongly agree

1-5 1-5 1-5

1.4.4 Methods

Quantitative Research

Type of sample design: Nonprobability Sampling

Sampling method: Purposive Sampling: Sample with a purpose in mind

1.4.5 Criteria for sampling

Young Vietnamese people who are interested in organic cotton T-shirts

2 INTRODUCTION

Organic clothing was previously a niche product sought after by hippies and "tree huggers," but by 2010, over 75 big companies and shops were profiting from organic clothes (Klara, 2010) One of the top three organic market growth sectors is organic

clothes and home goods (Organic Exchange, 2007) There are several reasons for this growth in the organic market, including increased access to information about organic products and programs, an increase in the number of companies seeking to make their business practices more organic and sustainable, and an increase in the number of consumers attempting to live a more organic and/or sustainable lifestyle (Organic Exchange, 2007; Sung & Lee, 2011)

Consumers are more aware of how their purchasing habits affect the environment and the workers who make the things they purchase (Carrigan and de Pelsmacker, 2009) According to Shaw and Tomolillo, this knowledge is influencing purchasing decisions, and "ethical customers" are becoming a rising market sector Consumers of ethical clothing are driven by worries about sweatshops and child labor, fair trade, fair pay, political and social marketing, natural resource depletion, and ecologically harmful production techniques (Bray et al., 2010; Carrigan and Attalla, 2001) As shown by research, the rise of this market sector may be linked to rising consumer environmental concerns, more knowledge of workplace difficulties, and firms' ethical standards influencing customer decisions (Bray, 2009) A growing number of textile and garment firms are aimed towards these customers ( Joergens, 2006) Organic cotton manufacturing employs environmentally friendly procedures and ingredients Therefore, organic cotton textiles and clothing may be enticing alternatives to conventionally produced textiles for ethical consumers whose purchasing decisions are influenced by environmental concerns

The study's major goal was to evaluate how much consumers were willing to pay for organic vs conventionally produced cotton clothes and to predict the magnitude of premiums that a customer would pay for the organic cotton feature We investigate the role of buying habits, garment qualities, and consumer views about organics in organic clothes purchase decisions A survey's stated response elicits information about customers' subjective opinions, shopping patterns, and demographic traits

We identified certain parameters influencing the desire to buy an organic cotton T-shirt, backed by prior study findings, in order to better understand and contribute to organic cotton in this research as a platform for future research

3 DATA COLLECTION

Quantitative Research

Scale design

• Design a questionnaire

The questionnaire consists of 2 parts:

Part 1: includes questions about the demographics of the survey object

Part 2: includes measurement contents related to the research model

• Determine the sample size:

+ Sample size should be 100 or greater (Hair et al., 2010)

+ Sample size needed: 300

+ The tools used to perform analysis are SPSS 20.0 software and Microsoft Excel

365

+ We use the Purposive Sampling: Sample with a purpose in mind for sampling

• Send the questionnaires:

We sent the survey questionnaires in the form of Google Form to the research subjects

• Check answers (data):

+ Questionnaire checking is a screening procedure that removes erroneous or incorrect response forms A total of 303 replies were evaluated from a total of 303 samples obtained using the easy sampling method

+ Details of all data were updated to Microsoft Excel to perform analysis for the research, specifically descriptive statistics and Likert scale through SPSS 22.0 software

• Sampling and data collection:

“Unlike the various sampling techniques that can be used under probability sampling (e.g., simple random sampling, stratified random sampling, etc.), the goal of purposive sampling is not to randomly select units from a population to create a sample with the intention of making generalizations (i.e., statistical inferences) from that sample

to the population of interest This is the general intent of research that is guided by a quantitative research design.” (Etikan et al, 2016)

To make it easier for respondents to participate, we employed a self-administered online questionnaire We created a survey with seven chapters The first chapter includes four questions designed to identify the participants' socio-demographic traits We asked several questions concerning basic knowledge and thoughts about T-shirt Organic Cotton and environmental preservation in the second and third chapters.In the next four chapters, respondents will answer the questions about their Behavior, Factors affecting purchase behavior, Willing to pay, and Purchase behavior

4 DATA ANALYSIS

4.1 Analysis methods

4.1.1 Cronbach Alpha’s reliability test

Cronbach's Alpha is a test to analyze the reliability of the scale Cronbach's Alpha coefficient has a variable value in the interval [0,1] In theory, the higher this coefficient, the better (the more reliable the scale is) However this is not entirely correct Cronbach's Alpha coefficient is too large (about 0.95 or more) showing that there are many variables

in the scale that do not differ from each other, this phenomenon is called overlap in the scale

Cronbach's Alpha coefficient value level (Source: Hoang Trong, Chu Nguyen Mong Ngoc (2008), Analysis of research data with SPSS Volume 2, Hong Duc Publishing House, page 24):

From 0.8 to close to 1: the scale is very good

From 0.7 to close to 0.8: good usable scale

From 0.6 and up: qualifying scale

The well-regarded scale has a Cronbach's Alpha coefficient 0.8 and a Cronbach's Alpha coefficient between 0.7 and 0.8 represents a usable scale for research However, Cronbach's Alpha coefficients do not indicate which variable will be retained or eliminated The value of the contribution depends on the Corrected item with Total correlation, this coefficient needs to be 0.3 to meet the requirements

4.1.2 Descriptive statistics

A descriptive statistic (in the count noun sense) is a summary statistic that quantitatively describes or summarizes features from a collection of information (Mann, Prem S (1995)) while descriptive statistics (in the mass noun sense) is the process of using and analyzing those statistics Descriptive statistics is distinguished from inferential statistics (or inductive statistics) by its aim to summarize a sample, rather than use the data to learn about the population that the sample of data is thought to represent This generally means that descriptive statistics, unlike inferential statistics, is not developed on the basis of probability theory, and are frequently nonparametric statistics (Dodge, Y (2003))

Descriptive statistics is all about illustrating your current data set while inferential statistics focuses on making assumptions about additional populations, which are outside of the study Although descriptive statistics provide a summary of the data the researcher has actually studied while inferential statistics make generalizations, which means that the data it gives you is not real being studied Even when a data analysis draws its main conclusions using inferential statistics, descriptive statistics are generally also presented

Descriptive statistics refers to a discipline that quantitatively describes the important characteristics of a data set For the purposes of describing the properties, it uses measures of central tendency, i.e mean, median, mode, and dispersion measures i.e range, standard deviation, standard deviation and variance, etc Data is summarized

by the researcher, in a useful way, with the help of numerical and graphical tools such

as charts, tables and graphs, to represent the data accurately Furthermore, the presented text supports the diagrams, to explain what they represent

4.2 Result and findings

on a group of young people aged 16-25 in line with the study's objectives

Percent 49,5% 50,5%

With 303 respondents, there is not much difference between male and female gender Females accounted for a slightly higher proportion of 50.5% and males accounted for 49.5%

The majority of respondents in the survey were in Ho Chi Minh City, accounting for 255/303 respondents However, to increase the accuracy of the survey, the team also surveyed many people in many different provinces, both domestically and abroad Hanoi and Da Nang are the two provinces with the highest number of survey participants after

Ho Chi Minh City with 22,14 respectively Other provinces such as Hue, Lao Cai, Nha Trang, Tay Ninh only had 1-2 respondents to the survey Up to 6 survey participants are abroad such as Canada, California, Melbourne, Singapore, Washington This result shows that the survey covers a fairly large audience both at home and abroad, serving effectively for problem research

Accommodation N California 1

Ho Chi Minh City 255 Canada 1

Income Under 3 millions 3-5 millions 5-8 millions Over 10 millions

Survey subjects are mainly young people, so incomes under 3 million and from 3-5 million account for a relatively high proportion in the survey Income under 3 million accounts for 136/303 respondents, accounting for 44.88% Next is 91/303 respondents with income from 3-5 million, accounting for 30.3% A relatively low percentage in the survey is the number of people with incomes greater than 5 million; Specifically, there are 13.86% of survey respondents with income from 5-8 million, 34/303 accounting for 11.22% of survey respondents with income over 10 million From the research, it shows that the subjects to be studied are people with not too high income, 3-5 million is the majority From the survey, we can see that it is necessary to develop

a pricing strategy for the organic cotton T-shirt brand to match the income of the target customer

Among 303 survey respondents, 250/303 respondents were interested in organic cotton T-shirts, accounting for a fairly high rate of 82.51% These respondents are the subjects of the survey and continue to investigate the factors that lead to the purchase of

an organic cotton t-shirt, serving for customer research to make a business plan for the new brand "PRXTECT organic tee" 53/303 accounts for 17.49% of respondents that are not interested in organic cotton T-shirts, these people are not the subjects of the study, so the survey will end for this audience

To assess how often they use organic cotton t-shirts, the team conducted a survey

on how many T-shirts their target customers bought on average each year The results received from the survey accounted for the highest percentage of 40.8% of 102/250 people interested in organic cotton T-shirts that buy 3-4 T-shirts per year on average The average number of purchases of 5-6 T-shirts per year is also quite high 23.6%, equivalent to 59/250 people; close to 20.8% of people think that the average is to buy more than 6-Tshirts per year The proportion of buyers of 1-2 T-shirts accounted for a relatively low proportion of only 14.8% This shows that the organic cotton T-shirts

market is quite potential On average, most consumers will buy 3 T-shirts or more per year

How long is your T-shirt in use (on average)?

4.2.2.3 Behavior of Consumers

Who do you usually buy T-shirts with?

N Percent Percentage of selections per sample size

The aforementioned data clearly demonstrates that respondents prefer to purchase their T-shirts alone before doing so with friends and family Furthermore, with just 82 choices, representing 32.8% of the total votes, the response "purchase T-shirts with their lovers," earned the least support

According to the figures above, consumers today don't frequently purchase shirts with their lovers T-shirt shops should now host more events or promotions aimed

T-at encouraging couples to make purchases in order to enhance this metric

When do you usually wear a T-shirt?

N Percent Percentage of selections per sample size

In addition, the option to wear a T-shirt on "holiday" is also favored with 172 choices, representing 68.8% Then came "work" (145 options, 58%) and "special

The adaptability of T-shirts could be seen from the responses of this survey question However, companies should produce t-shirts exclusively for individuals who

go to work or special occasions, with appropriate colors, designs, and styles, to fulfill the demands of this group of people

Where do you currently buy your T-shirts?

N Percent Local shops 86 34.4%

Social media 35 14%

E-commerce 78 31.2%

Shopping centre

The top response for this survey question is "local shops", which received 86 responses, accounting for 34.4% of the total 250 responses received Then comes "e-commerce." (78 options, 31.2%), followed by "shopping centre" (47 options, 18.8%), and finally "social media" (35 choices, 14%) The survey also included four "Other" options (market, company website, etc.)

We can see from the findings of this survey question that people prefer to experience things in person in stores of any sort rather than shopping online, despite the fact that ordering online appears to be more convenient and time consuming

4.2.2.4 Factors affect purchase behavior of consumers