Factors influencing the decision ò purchasing electronic devices at a supermarket in thanh hoa city

Thesis for the Degree of Master Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city June 2017 Department of Business Administration Grad

Thesis for the Degree of Master

Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city

June 2017

Department of Business Administration

Graduate School of Soongsil University

Do Thi Hong Xinh

Thesis for the Degree of Master

Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city

June 2017

Department of Business Administration

Graduate School of Soongsil University

Do Thi Hong Xinh

Thesis for the Degree of Master

Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city

A thesis supervisor: prof Shin, Ho Chul

Thesis submitted in partial fulfillment of the requirements for the Degree of Master

June 2017

Department of Business Administration

Graduate School of Soongsil University

Do Thi Hong Xinh

Thesis Committee

June 2017

Graduate School of Soongsil University

To approve the submitted thesis for the

Degree of Master by Do Thi Hong Xinh

ACKNOWLEDGEMENT

I would like to thank my supervisors Prof Shin Ho Chul, who gave me valuable

assistance and advices in completing the dissertation and the Master of Business Administration course

I also thank to all lecturers and staff of Soongsil University and Hong Duc University for their supports

Thanks to Home Centre electronic supermarket (HC) in Thanh Hoa city and my workmates who provided me information to fulfill the research

Specially thanks to my family and my friends for their encouragement during the time to study and do the research

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TABLE OF CONTENTS

ABSTRACT

CHAP TER 1 INTRODUCTION

1.1 The urgency of the subject 1

1.2 Research objectives 3

1.3 The scope of research 3

1.4 Contributions of the subject 3

1.5 The structure of the thesis 4

CHAP TER 2 THEORICAL B ASIS AND STUDY MODEL

2.1 Theories related to the decision of the buyers 6

2.1.1 The theory of consumer behavior 6

2.1.2 Theory of Reasoned Action (TRA) 9

2.1.3 Theory of Planned Behavior (TPB) 12

2.1.4 Theory of After Sales Service 14

2.2 Factors that affect the behavior of the buyers 14

2.2.1 Cultural elements 16

2.2.2 Social Factors 16

2.2.3 Personal factors 18

2.2.4 Psychological factors 19

2.2.5 Marketing factors 21

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2.3 Previous Studies 23

2.4 The proposed research model and research hypothesis 28

2.4.1 The proposed research model 28

2.4.2 Research hypothesis 29

2.5 Summary of chapter 2 31

CHAP TER 3 METHODOLOG Y

3.1 Collection of information 32

3.2 Sources of information 32

3.2.1 Primary information sources 32

3.2.2 Secondary information sources 33

3.3 Research design 33

3.4 Qualitative research 37

3.4.1 Qualitative research design: 37

3.4.2 Qualitative research results 38

3.5 Quantitative research 39

3.5.1 Sample design of research and data collection 39

3.5.2 Questionnaire Design 40

3.5.3 Data analysis method 43

3.6 Summary of chapter 3 47

CHAP TER 4 RESEARCH RESULTS

4.1 Describe survey sample 48

4.2 Exploratory Factor Analysis (EFA) 50

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4.2.1 EFA results of independent variables 50

4.2.2 The EFA analysis for dependent variable 52

4.3 Testing the reliability of the scale by Cronbach's Alpha 53

4.4 Correlation and regression analysis 56

4.4.1 Correlation coefficient between variables 56

4.4.2 Regression analysis 58

4.4.3 Review the fit of the regression 59

4.4.4 Determine the importance of the variables in the model 60

4.4.5 Collinearity Diagnostics 62

4.5 Testing the difference according to personal characteristics 62

4.5.1 Difference testing according to the gender of the respondents 62

4.5.2 Difference testing according to the age of the respondents 62

4.5.3 Difference testing according to monthly income of the respondents 63

4.5.4 The Difference testing according to the Frequency to the Supermarket63 4.6 Discussion 64

CHAP TER 5 CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusion 68

5.2 Implication 69

5.2.1 Increasing the variety of products 69

5.2.2 Completing the pricing policy 69

5.2.3 Constantly improving service quality 70

5.2.4 Complete promotional activities 71

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5.2.5 Building a wide distribution system 73

5.3 Limitations and recommendations for futher studies 74

REFERENCES

APPENDICES

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LIST OF TABLES

[Table 3-1] Response rate 40

[Table 3-2] Scale of components of the decision to purchase electrical goods through supermarkets in Thanh Hoa city of consumers 41

[Table 4-1] Characteristics of the respondents 48

[Table 4-2] Results table of independent variables EFA analysis 51

[Table 4-3] Results of EFA for dependent variable 52

[Table 4-4] Cronbach's Alpha of the scale 53

[Table 4-5] Results of Pearson correlation analysis 57

[Table 4-6] Model Summaryb 59

[Table 4-7] ANOVA 59

[Table 4-8] Statistical tables of each variable in the regression model 61

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LIST OF FIGURES

[Figure 2-1] Model of Theoretical Attitude - Consumer Behavior 7

[Figure 2-2] Theoretical model of buying behavior 8

[Figure 2-3] Reasoned action theory model – TRA 11

[Figure 2-4] The planned behavioral theory model - TPB 12

[Figure 2-5] Detailed model of the factors that influence consumer behavior 15

[Figure 2-6] Model Factors influencing the decision to buy high-end watches in Ho Chi Minh City, Ngo Thi Bao Chau (2013) 24

[Figure 2-7] Model of the factors influencing the choice of the supermarket channel for buying fresh food from consumers of Chu Nguyen Mong Ngoc and Pham Tan Nhat, 2013 ……….25

[Figure 2-8] Trend model of electronic payment (Le Ngoc Duc, 2008) 26

[Figure 2-9] Model of factors influencing the decision to buy women's fashion clothing - HCMC (Nguyen Ngoc Thanh, 2008) 27

[Figure 2-10] The impact model of perceived willingness to buy, Chang and Hsiao (2011)……… 28

[Figure 2-11] Proposed research model 28

[Figure 3-1] Research Process 36

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LIST OF ACRONYM

IMF : International Monetary Fun

TPP : Trans-Pacific Strategic Economic Partnership AEC : ASEAN Economic Community

ANOVA : Analysis of Variance B2B : Business to Business EFA : Exploratory Factor Analysis KMO : Kaiser-Meyer-Olkin

Sig : Significance level SPSS : Statistical Package for Social Sciences

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ABSTRACT

Do Thi Hong Xinh Department of Business Administration Graduate School of Soongsil University

Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city

The subject of research on the factors influencing the decision of buying grapped

a bunch of interest of many academic researchers and applied on the world marketing It has been studied in many years However, the field of electronic businesses has very little research on That is why I am interest in and selected the subject for my research: “Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city” The purpose of research topic is on the consumer’s behavior with the interest of electronic products of HC electronic supermarket in Thanh Hoa city

The research incorporates quantitative research to develop a scale for measuring the quality factors affecting customer’s decision in purchasing electronic appliances with 25 observation variables combined with qualitative research aimed

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at assessing most influencing factors to customers decision of buying goods at HC supermarket in Thanh Hoa city Through qualitative research with criteria such as Product, Price, Service, Promotion, Place, the researcher have some assessments about customers’ decision are those: both 5 independent variables positively affect the dependent variable of the model due to the positive beta coefficient, in which the Product variable has the greatest influence, then the Price, Promotion, Service The Place variable has the smallest Beta, so the impact of the Place variable on the customer decision of buying electronic goods is minimal

Evaluating the factors affecting customers decision of buying electronic goods at

HC in Thanh Hoa city in the past time, especially highlighting the differences in customers’ decision based on their characteristics in the recent time, the solutions for enhancing electronic supermarkets’ strategies for attracting customers concentrated into strategies in the field of improving Product, Price, Promotion and training staffs for increasing customers satisfaction with business’ Service to help the business serve their customers better in the future

Key words: factors, electronic devices, supermarket, customer’s decision

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CHAP TER 1 INTRODUCTION

1.1 The urgency of the subject

In recent years, the world economic situation has a positive outlook According to the IMF (IMF, January 19, 2015), the world economy grew at 3.3% in 2014, is predicted that its growth will be about 3.8% in 2015 Based on the the report of the Vietnam General Statistics Office, Vietnam’s economic growth rate is 5.98% in

2014 and it is forecasted that Vietnam will achieve a growth rate at 6.5% The electronics industry also contributed a significant part of the growth

According to the report by market research company GFK on 15/08/2015 the purchasing power of electronic market increased sharply.In the first half of the second quarter of 2015, the whole industry growth rates reached 19.8%, whereby the positive business results of most Electronics retail companieshave helped for the painting of the better economic picture Inthis situation, the electronics manufacturers, and retailers are competing fiercely for market share beforeVietnam finishes the negotiations of Trans-Pacific Strategic Economic Partnership (TPP) and joins the ASEAN Economic Community (AEC-ASEAN Economic Community) at the end of the year 2015 This marked a "turning point" for the country, and opened big opportunities for the economy However, this will bring not less challenges for Vietnam's economy, if there is not a good preparation In the same picture, some major economic sectors, specially, the electronic retail businesses will be under pressure of being acquired by foreign investors

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In the context of increasingly economic competition, the understanding of the determinants of customer loyalty can create advantages for the increase in sales Besides, the comprehensiveness of consumer behavior is the priority requirement According to Philip Kotler, the shopping is influenced by intrinsic factors (psychological factors and personal factors), and external factors (cultural factors and social factors) In addition, previous studies showed that factors including the characteristics of marketing 4P: Product, Price, Promotion and Place are also important factors that directly affect consumers Meanwhile, research by Chang & Hsiao (2011) revealed that factors attracting carbuyers at Taiwan market is perceived value that is characterized by the direction and decision of purchasing Moreover, the study of Chu Nguyen Mong Ngoc and Pham Tan Nhat (2013) in Ho Chi Minh City and Ba Ria Vung Tau showed that factors influencing the decision

of buying fresh foods in supermarkets are factors related to products, the form of packaging, price, and marketing The studies are about consumer behavior but on different business areas This type of the behavior will have more changes in the the purchasing decisions of consumers

The subject of research on the factors influencing the decision of buying grapped

a bunch of interest of many academic researchers and applied on the world marketing It has been studied in many years However, the field of electronic businesses has very little research on That is why I am interest in and selected the subject for my research: “Factors influencing the decision of purchasing electronic devices at a supermarket in Thanh Hoa city” The purpose of research topic is on

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the consumer’s behavior with the interest of electronic products The author hopes

to receive more contribution to improve the research

1.2 Research objectives

The first objective of the research is identifying all factors affecting the decision

to buy electrical goods at the HC supermarket system in Thanh Hoa city

Secondly, the research will identify the factors that really matter to and directly affect the decision to buy electrical goods through the HC supermarket in Thanh Hoa city

Thirdly, the researcher will give recommendations, building models, proposing businesses (supermarkets) to create solutions, features, and services to meet the requirements of consumers

1.3 The scope of research

Due to the subjective capacity of the writer, the essay refers only to the following issues:

Firstly, thesis focuses on the factors influencing the decision to buy electrical goods at the HC supermarket in Thanh Hoa City, based on the shopping behavior

of individual consumers

Secondly, the survey location is at HC supermarket in Thanh Hoa City

Time of survey is from 01/09/2016 to 30/1/2017

1.4 Contributions of the subject

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In the context of fierce competition in the economic world, the subject bring some sense on business practices tocompanies, marketing executives, and market researchers on electronic-goods area as follows:

Research results contributed to clearly indentifying the key factors that influencing the decision to purchase your machine This creates the basis for planning the program of business marketing and building the distribution system at the standard, and increasing the decision to buy electronic devices through HC supermarket in Thanh Hoa

Research results help to market researchers, distributors and marketing executives

to capture the role of measurement scale and the factors that influence consumer decisions This can advance the completion of market-study projects, making the methods attracting the customers, increasing the capacity of competition between businesses; as well as directing marketing programs to the right customers

Research results are used as the advizing documents for the researchers on consumption behavior at electronical-goods supermarket in Thanh Hoa city

1.5 The structure of the thesis

The thesis consists of 5 chapters

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This chapter introduces the previous theory, referrence model and researches that have been done previously This is for giving a model of research on factors affecting the decision of buying electronic goods through HC supermarket in Thanh Hoa city

Chapter 3: RESEARCH METHODOLOGY

The chapter presents the research method and makes scales-tool, evaluation method and testing the scales for definitions in the model, checkingthe level of appropriation in the model, and inspection of hypothesis

Chapter 4: RESEARCH RESULTS

This chapter will highlight the results of the research implementation steps including: description of collected data, evalution and validation of the scale model, verification of the research model’s hypotheses

Chapter 5: CONCLUSIONS AND RECOMMEDATIONS

Summary of the major research results, that are the base for making priciples of management for electronical goods business at the HC supermarket in Thanh Hoa city Besides, the essay mentions the subject’s contributions, limitations and the direction of the next research

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CHAP TER 2

THEORICAL BASIS AND STUDY MODEL

2.1 Theories related to the decision of the buyers

2.1.1 The theory of consumer behavior

Consumer behavior is a process that allows an individual or group of people to choose, purchase, use or remove a product, service, thought, experience to satisfy their needs or desires (Solomon et al., 2006)

According to Philip Kotler (2005), consumer behavior is defined as "a whole series of action throughout the process from recognizing demand to buying and after buying." In other words, consumer behavior is the way in which decision-makers will use their available resources such as: time, money, effort, etc for consumption products

According to the American Marketing Association, consumer behavior is the interplay of environmental stimuli with human perceptions and behaviors, through which interactions people change their lives According to this definition, the concept of consumer behavior is viewed from the perspective of interaction, interplay between people and the external environment

Consumption behavior is also defined as "a deep commitment to repurchase, warrant a favorite product or service in the future." Therefore, understanding the determinants of "customer loyalty" can help managers focus on the key factors that drive consumer behavior

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Quality, perceived value and satisfaction have been shown to be good predictors

of behavioral intention (Petrick, 2004)

In general, all definitions of consumer behavior focus on aspects: the process of identifying, collecting information, evaluating purchasing, consumers’ respondence after purchasing, and relationships between that process and the external factors directly and indirectly influences the consumption behavior

Behavioral trends can be identified and evaluated by attitudes and behaviors Attitude refers to a specific desire to continue a relationship with a service provider, while behavioral attitudes refer to the concept of repetitive assurance (Chen and Tsai, 2008) Customers can develop an attitude based on the previous garthered information without actual experience This information can create a bias against the suppliers from their image in the market

The research of Cronin & Ctg (2000) finds that cognitive value has a positive impact on consumer behavior Consumer behavior is the specific behavior of an individual when making decisions to purchase, using and disposing of a product or service (Kotler, 2003)

[Figure 2-1] Model of Theoretical Attitude - Consumer Behavior

(Source: Fishbein & Ajzen, 1975)

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According to Kotler, consumer behavior research is the priority mission that has a huge impact on businesses’ marketing decisions When a new business starts, marketers can understand the consumer through daily sales experience; and at a given time, the growth of the size of the business and the market has left many executives and marketers no longer in direct contact with customers, so they have

to study about consumer behavior for their business

[Figure 2-2] Theoretical model of buying behavior

(Source: Philip Kotler, 2003, tr.198)

Other Agents

Motives Perception Knowlegde

Be lieves

Buyers’

schycolog y

Culture Society Personality

Buyers’

Character isti-cs

Process of buying decision

Perception

De mand Collection of- Information Evaluation

of choices Decision of purchasing After- purchazing behavior

Buyers’ decision

Selection of products Selection of brands Selection of agency Determinati -on of quantity for buying Buying time Payment- method

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Buyer behavior research is the study of how individual behavior determines how well they spend on relevant goals Buyers have more and more decisions every day; most studies of consumer behavior of large businesses have to include customer research in order to answer the question of what consumers buy, where they buy, how much they buy, when they buy, and why they buy (Solomon et al., 2006; Kotler and Armstrong, 2012)

The starting point for understanding customers is the response agent model shown in [Figure 2-2], which demonstrates that marketing factors and environmental actors enter into the buyer's consciousness The characteristics and decision-making process of the buyer lead to certain purchasing decisions In fact, there are many factors influencing the decision of the person involved in purchasing of the product (Kotler, 2003)

2.1.2 Theory of Reasoned Action (TRA)

Reasonable Action Theory (TRA) is a theory of social psychology Social psychologists have tried to explain how and why attitudes affect behavior Why and how each person's believes make them change the method and the direction of their actions The theory of action was first introduced in 1967 by Martin Fishbe in,

a social psychologist at the University of Illinois at Urbana He made a statement about the relationship between belief and attitudes Later in the 1970s, Fishbein collaborated with Icek Ajzen of the University of Massachusetts, Amherst to study and develop this theory

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TRA is concerned about the relationship between beliefs, behaviors, subjective standards, attitudes and behavioral intentions Fishbein distinguishes attitudes toward a particular object from attitudes toward behaviors related to that object He also demonstrated behavioral attitudes that help to predict behavior better than attitudes towards people, organizations, social phenomena, etc This theory holds that there is a strong link between measuring the attitudes, behavioral intention and behavior of an individual in the same circumstances, time, and goal of action The TRA hypothesis assumes a random sequence linking belives of behavior and subjective norms with intent to behave and behave This theory also shows that the most important determinant of behavior is the intention of the individual's behavior TRA explains that personal behavior is driven by behavioral intent; and behavioral intent is the determinant of behavioral attitudes Behavioral intent is a good judgment for behavior This concept is considered probably that an individual will inevitably perform a behavior Fishbein argues that the variables in the model

he builds can affect intentions and behaviors However, these variables must significantly affect attitudes or beliefs, subjective norms The variables he referred include demographic factors and personality characteristics of the individual According to TRA, behavioral intent can be predicted if three conditions are met Firstly, intentions and behaviors must be consistent with specific goals, actions and time Second, intentions and behaviors do not change over the same timeframe when evaluating intentions and evaluating behavior Finally, that behavior is

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subject to cognitive control From there, the individual will decide whether or not

to act

[Figure 2-3] Reasoned action theory model – TRA

(Source: Fishbein & Ajzen, 1975 Belief, Attitude, Intention and Behavior: An

Introduction to theory and research) TRA helps to decode an individual's behavior by ident ifying, measuring, and linking his or her related beliefs, allowing them to understand the motivations behind the behavior However, TRA also has many limitations (Taylor, 2001) One

of the limitations is that it derives from the nature of the narrative, which is used to determine the subjectivity Personal self-reported information is used when applying this theory, not through direct observation Meanwhile, autobiographical data are very subjective and inaccurate The biggest limitation of TRA theory is that all behavior is subject to the control of reason But sometimes reason can not

Subjective Standard

Behaviora l intent

Actual behavior

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control a person's entire behavior Therefore, TRA applies only to conscious behaviors The unreasonable decision, action according to habit or behavior is not caused by the inexplicable sense of this theory People who change their behavior depending on their present circumstances are not the subject of this theory From that limitation, planned behavioral theory - TPB was born

2.1.3 Theory of Planned Behavior (TPB)

[Figure 2-4] The planned behavioral theory model - TPB

(Source: Ajzen, 1991 Thetheory of planned behavior.Organizational Behavior

and Human Decision Processes)

In psychology, planned behavioral theory is a theory of the relationship between belief and behavior This concept was proposed by Icek Ajzen in 1991 to improve the predictive power of action theory based on cognitive behavioral control This is one of the most convincing predictive theories It has been applied to studies on the

Actual behavior

Inside, attitude is the evaluation of an individual when he or she performs a particular act This concept demonstrates how an individual's perception of behavior is positive or negative and how it is measured It is determined based on one's total trust and is associated with other attributes of the product or service Subjective norm is an individual's perception of specific behavior after being influenced by the judgment of important people (Ex: parents, spouse, friends, teachers, etc.) If a person believes that the person who influences them thinks they should behave, that person will tend to meet that expectation or vice versa

Behavioral Awareness: this model shows that a person's perception or control of a person's behavior is determined by his or her belief in the action Here, cognitive behavioral control represents the necessary resources of a person to perform any task It also addresses the availability of resources, skills, opportunities, and individual perceptions that result in the ultimate behavioral outcome

The TPB model is considered to be more advanced than the TRA model in predicting and explaining consumer behavior in the same context and research context

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This study also shows that each customer's repeated purchasing intentions are easy or difficult to accomplish based on their own skills, perceptions, and experience Awareness of behavioral control has a positive impact on repeated purchase intentions of consumers

2.1.4 Theory of After Sales Service

After-sales service is an indispensable part of the product, increasing the value of the product (Loomba, 1998)

Today, businesses must reevaluate their strategies to differentiate themselves from their competitors After-sales service is an important factor in creating competitive differentiation for most businesses (Lele & Sheth, 1987)

When a customer buys a product, they want certain support for the product after the purchase After-sales service is essential to achieving customer satisfaction and maintaining long-term customer relationships, which is the competitive advantage

of the business (Goffin, 1999)

Customer satisfaction is not only due to the value and performance of the product, but also to the total value of the customer's possession, including quality

of customer support throughout the product life cycle (Tore & Uday, 2003)

2.2 Factors that affect the behavi or of the buyers

Consumer behavior is understood as the reaction that individuals exhibit in the decision-making process to purchase goods or services Knowing the behavior of the customer will help the business to produce the product, and marketing strategies that are appropriate with products of the business Customer research

to identify and predict consumer trends for specific types of consumers From there, they can make timely and effective marketing plans

Buyers’ behavior is greatly influenced by factors of the buyer's perceptions process that includes marketing factors (product, price, distribution and promotion), and other factors It is about the buyer’s (cultural, social, personal and psychological) characteristics From there, it impacts the decision-making process

of the buyer to purchase behavior and makes purchase decisions (Kotler, 2005)

[Figure 2-5] Detailed model of the factors that influence consumer behavior

(Source: Kotler, 2003)

in the United States has been exposed to values such as achievement, success, activity, performance, practicality, progress, material comforts, individualism, freedom, externalities, humanism and youthfulness (Solomon et al., 2006)

Cultural branches create important market segments; and marketers often design products and marketing programs according to their needs An individual's shopping behavior is influenced by the individual's cultural traits (Kotler, 2005) Almost human societies express social stratification This stratification is sometimes formal A caste system is a place where members of different caliber are raised and taught to take on certain roles Social classes are relatively homogeneous and socially endowed, hierarchical and include members of common values, interests, and behaviors (Kotler, 2005)

2.2.2 Social Factors

Social factors are a form of verbal communication influencing the buying behavior of consumers, and works best when combined with good ones such as marketing, social factors including: reference group, family group, role and status

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Reference groups are individuals or groups who have a direct or indirect influence on attitudes, beliefs, values or behaviors towards consumers (Solomon et al., 2006) A person's reference group includes groups that directly or indirectly influence his or her attitude or behavior Groups that directly affect a person are called members-group These are the groups in which the person joins and interacts There are groups that are primary groups with whom they have regular interactions such as family, friends, neighbors and colleagues Primary groups are more formal and require less frequent communication

Families, family members are the most important group of influential references (Solomon et al., 2006) We can distinguish two families in the buyer's life One is a oriented family family consisting of parents, one from whom parents have a religious, political, economic, and a sense of personal ambition, self-esteem and love Even if the buyer no longer has much relationship with the parent, the influence of the parents on the behavior of the buyer can still be enormous The second is a direct effect on the daily shopping behavior of that person's family The family is the most important consumption purchasing organization in society and it has been studied for many years Marketers are interested in the relative roles and influence of husbands, wives and children in buying a wide variety of products and services This issue will change a lot for different countries and social classes Each role has a status People choose products that show their role and status in society Marketers are well aware of the social status of the product and the brand However, the emblem of status varies by social class and geography (Kotler,

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2005) Thus, the social status associated with a brand is an important factor in conspicuous consumption (Vigneron & Johnson, 1999; 2004) Vigneron and Johnson (1999) concede that consumers tend to consume luxury cars regarding to the price as a credible indicator to impress others Some high-end consumer goods, such as clothing, watches and jewelry, can become status icons for them, and the gadgets they receive from high-end merchandise may be a screen of their showcase

of wealth, and elevate their social status

2.2.3 Personal factors

Buyer's decisions are also influenced by personal characteristics, most notably the buyer's age and life cycle, occupation, economic circumstances, lifestyle, personality and consciousness of that person (Kotler, 2005)

Age and stage of life cycle, customers purchase different goods and services throughout their lives Tastes of customers on the goods and services also depends

on age Consumption is also shaped by the life cycle of the family (Kotler, 2005)

A person's occupation also affects their way of spending People with different occupations will have different needs from key commodities such as clothing, footwear, food to other premium goods such as cosmetics, computers, electricity People with occupations associated with social status are often interested in self-assertion through the consumption of superior products (Kotler, 2005)

Economic circumstances: The choice of product is greatly affected by the economic circumstances of the person The economic circumstances of a person include their likely income (income, stability and timing), savings and assets

Lifestyle, a way of living, a way of working, the way a person behaves, is reflected in his or her actions, interests, opinions, and ideas about the surrounding environment Lifestyle represents an all-encompassing person in relation to his environment (Kelly, 1955) A person's lifestyle affects his or her consumer behavior Customer lifestyle is sometimes used by marketers as a marketing segment

psychological origin

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Maslow's motive theory explained at different times that people are motivated by different needs Humans will strive to satisfy all the most important needs When one satisfies an important need, it will no longer be the current one, and one tries to satisfy the next most important need (Maslow, 1970)

Perception:

A motivated person is always ready to act The question of how the motivated person will act, in fact, is influenced by his perception of the situation at that time Recognition is defined as "a process through which individuals select, organize, and interpret information to create a meaningful picture of the world around them" (Berelson and Steiner, 1964) Awareness depends not only on physical agents but also on the relationship of those agents to the surrounding environment and the conditions within them

Perceived value is associated with the overall consumer appreciation of the utility

of a product or service based on perception of what is received and what is given (Zeithaml, 1988) More specifically, cognitive value comes from a compromise between perceived benefits and perceived costs (Lovelock & Wirtz, 2010) Previous studies have suggested that cognitive value may be a better predictor of acquisition intent than satisfaction and quality (Woodruff, 1997; Cronin et al., 2000; Petrick and Backman, 2002 Petrick, 2004) Perceived value is defined as a prerequisite for satisfaction and behavioral tendencies (Cronin et al., 2000; Petrick and Backman, 2002; Petrick, 2004) In addition, many studies suggest that the

Faith and attitude, through activity and knowledge, gain trust and attitude These factors affect the behavior of human shopping Attitude makes people behave fairly consistently for similar things People do not have to explain and react to each other in a new way Attitude allows saving energy and mind, so it is difficult to change attitudes The attitude of a person is formed in a consistent pattern so they want to change other attitudes (Kotler, 2005)

2.2.5 Marketing factors

In marketing, marketing mix is a collection of marketing tools used by businesses

to achieve a marketing focus in the target market Each element of marketing mix (product, price, distribution channel, promotion) can influence consumer behavior

in different ways (Kotler, 2005)

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Product:

Electrical goods are tangible products, many attributes of the product such as brand, quality, novelty, durability, technology trends, product features can influence consumer behavior (Kotler, 2005)

to get the attention of researchers than the other factors (Spence et al., 1970; Voss

et al., 1998; Bolton and Lemon, 1999) Price is often viewed as an alternative tool that affects the satisfaction of the product/service that consumers use

Place represents the location where a product can be purchased It is often referred to as the distribution channel Product distribution channels affect consumers in many ways Delivering the product to and from the customer's

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request is one of the most important aspects of any marketing plan Products sold exclusively in individual stores can also be perceived as high quality products (Kotler, 2005)

Promotions:

Marketing is all about making sure that customer is aware of the product or service, have a good impression of them, and make a real purchase These activities include advertising, cataloging, public relations and retailing, television advertising, radio, newspapers, bulletin boards, film productions, broadcast television programs and radio stations are tracked, sponsored for loyalty programs, telephone sales, direct sales, referrals, cataloging for customers, public relations These marketing activities can affect consumer behavior toward a particular product (Kotler, 2005)

2.3 Previous Studies

The study of consumer behavior has grapped great interest of researchers In Vietnam, research on electronics is still very limited Therefore, the author has consulted some documents related to consumer behavior in some other areas in the country as follows:

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Research of Ngo Thi Bao Chau (2013)

[Figure 2-6] Model Factors influencing the decision to buy high-end watches

in Ho Chi Minh City, Ngo Thi Bao Chau (2013)

In the study of the factors influencing the decision to buy high-end watches in Ho Chi Minh City, Ngo Thi Bao Chau (2013) used Kotler's (2005) consumption behavior theory and some theories of consumers buying decisions about luxury goods that are informed in magazines At the same time, the author used the Binary Logistic regression model to build a research model of seven groups of factors: brand value, factors related to products, prices, distribution channels, personal

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factors and social factors These factors influence the decision to buy high-end watches of consumers in Ho Chi Minh City

Research of Chu Nguyen Mong Ngoc, Pham Tan Nhat (2013)

Chu Nguyen Mong Ngoc and Pham Tan Nhat researched into factors influencing

the decision to choose the supermarket channel when buying fresh foods in Ho Chi Minh City in 2013

[Figure 2-7] Model of the factors influencing the choice of the supermarket channel for buying fresh food from consumers of Chu Nguyen Mong Ngoc and

Pham Tan Nhat, 2013

Research conducted on over 120 samples; and the research results show that the factors affecting the decision to buy fresh food at the supermarket channel include factors related to products, form of packaging, price, and place At the same time, the factor related to the promotion does not show a clear impact on the decision to buy fresh food at the supermarket

H3 H4