INTRODUCTION
Introduction
A marketing strategy outlines an organization's current and future goals, resource allocation, and interactions with markets and competitors, as well as other environmental factors (Hollensen, 2003) This strategy is essential for meeting the needs and desires of the target market, leading to customer satisfaction When customers are satisfied, they are more likely to become loyal, resulting in repeat purchases and increased profits (Machado & Cassim, 2002).
This chapter presents the rationale for the research project, emphasizing the importance of marketing factors in influencing customer buying decisions It introduces the research's background and scope, outlines the dissertation's structure, and defines the aims and specific objectives of the study Additionally, a brief overview of the methodology employed to achieve these objectives is provided.
Background
Vietnam's integration into the global economy has been significantly enhanced through comprehensive free trade agreements, including the establishment of the ASEAN Economic Community and the Trans-Pacific Partnership signed on February 4, 2016 In 2015, Vietnam also implemented internal reforms such as Decree No 60/2015/ND-CP and new laws on investment and enterprise, which present both opportunities and challenges for the nation.
The rise of international companies and global corporations is transforming the Vietnamese market, leading to an influx of competitors equipped with advanced technologies and substantial capital As a result, consumers are demanding high-quality products at competitive prices while prioritizing safety In response to these challenges, businesses are increasingly focusing on developing effective marketing strategies.
TRAN HOANG TRUC Page 2 based on the consumer (He, H & Li, Y., 2010)
In 2016, Vietnam's consumer market witnessed a significant rise in purchasing power, driven by a decade of rapid economic growth The number of high-income households, earning over $500 per month, surged from 1.8 million to over 4 million This growth has been accompanied by a boom in advertising, with expenditures increasing nearly 600% over the past ten years The proliferation of brands and the emergence of domestic companies, particularly in the food, beverage, and healthcare sectors, have further fueled the consumer economy in Vietnam.
Traditional Vietnamese companies must adapt their business and marketing strategies to align with changing consumer behaviors Marketers recognize the significance of understanding consumer attitudes, as highlighted by Vinson et al (1977) Conducting thorough marketing research is essential for gathering data on current customer preferences and market trends, enabling decision-makers to select effective strategies that meet consumer needs.
Company introduction
Nhon Hoang is a leading traditional food company located in Cai Be Village, Tien Giang Province, renowned for its high production of coconut paper cakes The government has recognized Cai Be Village as a designated "Cai Be Coconut Paper Trade Village," highlighting its significance in the local culinary heritage.
Established in 1992, Nhon Hoang specializes in the production of coconut paper By 2016, the company employed 70 staff members and achieved a daily output of approximately 2,000 kg Nhon Hoang offers three varieties of cakes, each featuring distinct flavors.
In Tet holiday, Nhon Hoang produces more two kinds of cakes:
There are many kinds of packages with different weight and size: small size 10.5 inches (260g), medium size 11.5 inches (350g) and large size 12.5 inches (450g & 500g)
Nhon Hoang products are primarily distributed in Southern Vietnam and select provinces in the Central region The brand collaborates mainly with rest stop stations and stores located along highways, including Satra-Phuong Trang, Minh Phat rest stop station, and Tam.
Ri chain restaurants, along with Hung Thanh and Lothamilk companies, provide a convenient stop for coaches, allowing passengers to rest for about 20 minutes During this break, travelers can enjoy meals and purchase various products This station serves thousands of passengers daily, resulting in significant product consumption.
In 2014, Nhon Hoang got gold medal “Vietnam Trust Food 2014” and the title “Safe food for health of community”.
Product introduction
Indigenous peoples' traditional food systems are valuable resources, and efforts to document them globally are increasing (Martina A Schmid, 2005) One notable example is milk coconut paper, a traditional delicacy from Western Vietnam, which is frequently purchased by travelers as a popular gift when visiting the region.
The cake originates from grilled glutinous rice paper cakes, a tradition in Southern Vietnam where households have been making and grilling coconut paper cakes to honor their ancestors during the Tet holiday for over a century To satisfy the desire for an instant treat, the milk coconut paper version was created Today, locals categorize this cake into three main varieties.
+ Grilled glutinous rice paper : made from glutinous rice, coconut milk and
TRAN HOANG TRUC Page 4 sugar
+ Grilled coconut paper : made from manioc, coconut milk and sugar
+ Milk coconut paper : made from manioc, coconut milk, sugar, malt and sweetened milk (some kinds of cake are added durian or sesame).
Research Question
This dissertation investigates the marketing factors that influence the buying decision-making process for Nhon Hoang products, focusing on how these elements affect customer choices The study specifically examines four key marketing factors: Product, Price, Place, and Promotion, to determine their impact on consumer decisions regarding Nhon Hoang offerings.
The following questions are derived from the main research question:
How does the factor Product affect to buying decision making of Nhon Hoang products?
How does the factor Price affect to buying decision making of Nhon Hoang products? How does the factor Place affect to buying decision making of Nhon Hoang products?
How does the factor Promotion affect to buying decision making of Nhon Hoang products?
Research Objective
This research aims to analyze how marketing factors—specifically product, price, place, and promotion—impact customer purchasing decisions for Nhon Hoang products The findings will enable the company to enhance its marketing strategies and ultimately boost customer acquisition.
Find out the marketing factors that affect to buying decision making of Nhon Hoang products
Analyze the key marketing factors which impact to customer’s decision making of Nhon Hoang products
Enhance the ability of Nhon Hoang company to achieve excellent standard in their business.
Research scope
This study investigates the relationship between marketing factors and consumer purchasing decisions regarding Nhon Hoang products Conducted from October to December 2016, the research focuses on Satra-Phuong Trang, Long Thanh rest stop, and various stores along Highway 1A in Western Vietnam.
Due to time restraints, the sample will be limited to 300 customers This may mean that the results cannot be generalized to the whole population.
Thesis outline
This research includes five chapters which are showed bellows:
Chapter 1: Introduction – Starting general introduction of Nhon Hoang company and their products It has also discussed the objectives, scope and method of this study
Chapter 2: Literature Review – Reviewing literature related concepts, marketing factors effect to buying decision making of Nhon Hoang products and then drawing the research model
Chapter 3: Methodology – Giving the detail of research data, quantitative method used in this study, data collection and data analysis
Chapter 4: Finding – Giving the result obtained of primary data collection from the
TRAN HOANG TRUC Page 6 survey
Chapter 5: Discussion of findings – Analysis of the data and the empirical result of this study The empirical results focused on the importance of the research variable
Chapter 6: Conclusion and Recommendations – Discussing the research finding and suggesting the recommendations for raising their marketing strategies.
Conclusion
To effectively adapt to the changing business environment, marketers must adjust the elements of the marketing mix, as highlighted by Du Plessis and Rousseau (2003) This adaptability is crucial for ensuring that offerings resonate with the target market, as emphasized by Adcock et al (2001).
This chapter has outlined the research's objectives and significance, detailing its scope and formulating a research question for investigation The subsequent chapter will review the existing literature related to this question.
The marketing factors influencing the buying decision-making process for Nhon Hoang products encompass various elements that shape consumer behavior Understanding these factors is essential for comprehending how previous research has examined the interplay between marketing strategies and purchasing choices By analyzing the impact of branding, pricing, promotions, and consumer perceptions, one can gain insights into the effectiveness of marketing efforts in driving sales for Nhon Hoang products.
LITERATURE REVIEW
Marketing mix
To effectively attract its target market, an organization must strategically plan its marketing mix, which consists of controllable elements designed to elicit the desired response from consumers This mix encompasses all activities that influence demand for the organization's products or services, as highlighted by Kotler & Armstrong.
The organization develops an integrated control system, illustrated in Figure 2.1, which encompasses the key elements of the marketing mix: Product, Price, Place, and Promotion This study will provide a detailed discussion of each element of the marketing mix.
Figure 2.1: The elements of marketing mix
This chapter will focus on the consumer’s buying decision making process, different components of the marketing mix and the effect of marketing on consumer
Once an organization establishes its overall marketing strategy, it can begin planning the marketing mix elements necessary to engage its target market effectively The marketing mix consists of various activities that an organization can utilize to shape demand for its products or services, ultimately aiming to elicit the desired response from consumers.
The organization designs an integrated marketing mix made up of factors under its
The marketing mix consists of four key elements: Product, Price, Place, and Promotion This article will delve into each of these elements in greater detail to provide a comprehensive understanding of their roles in effective marketing strategies.
Figure 2.1: The elements of marketing mix (Kotler, P., & Armstrong,
The buying decision-making process is crucial for marketers as it informs their overall marketing strategy Once this strategy is established, businesses can effectively plan the marketing mix elements necessary to engage their target market The marketing mix encompasses a variety of activities that organizations can leverage to elicit the desired response from consumers.
The marketing mix consists of four key elements: Product, Price, Place, and Promotion This study will examine each of these components to understand their roles and significance in effective marketing strategies.
AdvertisingPersonal sellingSales promotionDirect marketingPublic relations
According to McCarthy and Perreault (2003), a product is defined as a good or service tailored for a specific target market Blackwell et al (2006) expand on this definition, stating that products encompass both tangible and intangible attributes They also highlight that consumers purchase products for various reasons, from fulfilling basic needs to indulging in pleasurable experiences.
Palmer (2000) states that the elements of a product that can be controlled by a marketer include variety, features, brand name, packaging, design, quality and services
Product variety refers to the range of different products within a single product line, driven by intense market competition and evolving consumer demands While an increase in product variety can enhance market appeal, it does not necessarily lead to higher profits, as the quality of new products may fluctuate based on consumer preferences In today's business environment, effectively managing product variety poses significant challenges However, organizations that align their supply chain structures with the types of product variety they offer tend to outperform those that do not.
The introduction of new products is crucial for enhancing consumer welfare by providing additional variety, which leads to consumer surplus This influx of new offerings intensifies competition among existing products, often resulting in lower prices across the board When a company launches a new product without any prior market presence, it can drive down prices for all competing products, ultimately benefiting consumers (Hausman & Leonard, 2002).
Product offerings can be categorized into three distinct levels: core, expected, and augmented These levels encompass various features that enhance consumer enjoyment Marketers must focus on these elements to align with customer expectations, ultimately fostering repeat purchases (George, 2004) According to Hoffman et al (2005), products represent a collection of benefits shaped by strategic product decisions and the new product development process.
The features and value of a product emerge from compromises among diverse requests, which originate from producing organizations interacting with customers, technological advancements from related organizations, and the various roles of independent intermediaries like distributors.
A brand is defined as a product or service that stands out through its competitive positioning and personality tailored to its target market (George, 2004) Often, brand names hold more value than the actual products they represent, as they drive consumer purchases by fulfilling essential needs Brands play a crucial role in distinguishing competing products, allowing organizations to differentiate themselves from competitors (Du Plessis et al., 2005) According to Cravens and Piercy (2006), brands serve several important functions for consumers.
The quick identification of products reduces consumers’ search costs
Providing assurance of quality which reduces consumers’ perceived risk
Reduce social and psychological risks that are associated with using the wrong
TRAN HOANG TRUC Page 10 product
Marketers design packaging to fulfill essential roles, including promotion, protection, and user convenience (Hoffman et al., 2005) Effective packaging decisions must account for production efficiency, consumer acceptance, and the necessary protection during storage and transit (Bradi, Coyle & Novack, 2006).
Organizations take into account climate and geography when designing their offerings, ensuring that ingredients and features comply with legal, religious, and social customs (Hoffman et al., 2005) Effective product design not only enhances the product's appearance and perceived value but also appeals to non-users (Vranesevic, T., Vignali, C & Vignali, D, 2004).
When developing a product, organizations must determine the appropriate level of quality to incorporate, as quality is defined by a product's ability to meet functional requirements Durability is a key aspect of quality, with high-quality products typically crafted from superior materials that require costly processing The price that the target market is willing to pay significantly impacts the quality level of the product If customers discover that their purchased products are of low quality, they are less likely to make repeat purchases in the future.
The product related services and product intangibles that are commonly used by organizations are guarantees, repairs or replacements and credit Customers consider
Consumer behavior
Consumer behavior provides marketers with information about what consumers need and want, how marketing program should be designed Du Plessis and Rousseau
(2003) state that the survival of organizations in a competitive environment depends on their understanding of consumer behavior, inclusive of the buying patterns of individual consumers
To effectively adapt to the ever-changing preferences of consumers and develop an appropriate marketing mix for a targeted market, marketing managers must possess a comprehensive understanding of consumer behavior This encompasses the process by which consumers make purchasing decisions, as well as how they utilize and dispose of products and services Additionally, analyzing the various factors that influence these decisions and product usage is essential for successful marketing strategies.
Individuals shape their self-concepts and lifestyles through a mix of internal and external influences, leading to specific needs and desires that drive consumption choices The consumer decision-making process is impacted by unique experiences and the presence of these needs, ultimately affecting both internal and external aspects of a consumer's identity and lifestyle (Hawkins & Mothersbaugh, 2007).
Figure 2.3 Overall model of consumer behavior (Hawkins & Mothersbaugh, 2007)
Consumer purchases are shaped by social, cultural, personal, and psychological factors, which marketers must understand despite being beyond their control (Kotler & Armstrong, 2009) These influences significantly affect consumer behavior and consumption patterns Marketers strive not only to identify customer desires but also to help them recognize their needs In the modern marketplace, consumer behavior is increasingly defined by the methods and processes of their purchasing decisions (Solomon, 2010).
Consumer decision making process
The buying process encompasses five key stages that consumers navigate when confronted with a new and complex purchase situation This process begins well before the actual purchase decision and continues afterward, whether the consumer decides to buy or not Depending on the type of decision-making—nominal, limited, or extended—consumers may skip or reverse certain stages Therefore, it is essential for marketers to pay attention to the entire buying process to effectively engage with consumers (Kotler and Armstrong, 2009).
Marketing strategy and consumer behavior
Understanding consumer behavior is crucial for developing effective marketing strategies A successful marketing approach relies on a deep comprehension of consumer behavior patterns (Du Plessis, Jooste & Strydom, 2001).
To provide the best value to customers, organizations must respond more swiftly to their needs than competitors, as noted by Cant et al (2006) Understanding consumer behavior is crucial for developing effective marketing strategies that align with customer preferences The success or failure of an organization is reflected in how customers react to its marketing efforts, highlighting the importance of meeting customer needs, as emphasized by Hawkins et al (2004).
Marketing strategy starts by analyzing the market considered by an organization This
A marketing strategy aligns an organization's resources, such as its strengths and weaknesses, with external factors like competitors, suppliers, and customers, while considering economic, technological, and social influences The first step involves consumer analysis, which identifies groups with similar needs (Hawkins et al., 2004) The next step is market segmentation, where identified market segments are described based on demographic, psychographic, and geographic factors Finally, one or more segments are selected as targets, considering the organization's capabilities in comparison to competitors (Cant et al.).
Step three of the marketing strategy focuses on penetrating chosen target market segments by delivering greater value to customers than competitors, while also ensuring profitability for the organization This approach is guided by an extended marketing mix framework (Zineldin & Philipson, 2007).
Consumers are continuously engaged in processing information and making decisions about their lifestyle, highlighting the importance of high customer satisfaction for long-term profitability (Hawkins et al., 2004) Marketers must recognize that the way a total product is presented shapes customers' perceptions and can lead to need satisfaction, financial decisions, and changes in attitudes Additionally, the marketing process influences broader societal factors, including economic growth and social issues, underscoring its significant impact on both individuals and communities (Cant et al., 2006).
Consumers play an important role in the economy, since their support of retailers can influence the profitability level, future survival, as well as employment creation
Understanding consumer behavior is crucial for organizations, as strong consumer support can lead to increased profits, while a lack of support may result in closure (Blackwell et al., 2006) Additionally, organizations must comply with various regulations, including pollution controls, product safety, labeling, and truth in advertising (Assael, 2004).
The effect of the elements of marketing mix on consumer behavior
According to Hawkins et al (2004), a product is defined as anything a consumer acquires or may consider acquiring to fulfill a perceived need Consumers tend to choose products that provide high quality, optimal performance, and a diverse range of features, as noted by Schiffman & Kanuk.
A strong customer orientation enables organizations to pinpoint essential product attributes and evaluate how these attributes influence consumer perceptions of value and satisfaction Understanding the effects of various product elements on consumer perceptions can inform effective product design and management strategies.
Pricing plays a crucial role in product promotion, driving sales through incentives like discounts and favorable credit terms However, this focus on price can overshadow the perceived value and brand identity Research indicates that consumers may only be motivated to buy when prices are lowered Additionally, incorporating features that enhance affordability is vital for attracting customers Ultimately, consumers anticipate that the price they pay aligns with the product's quality, perceived value, and their satisfaction levels.
According to Stokes (2002), place refers to how products and services are made accessible to the target market, encompassing the selection of distribution channels Peter & Olson (2005) emphasize that these distribution channels significantly affect consumer emotions, thoughts, and behaviors Additionally, the locations of stores play a crucial role in shaping consumer perceptions and feelings, influencing their actions, including interactions with stores, product engagements, and purchasing decisions.
Promotion serves key functions: it informs, persuades, and reminds customers about products available in the marketplace It educates consumers on where to locate a product and how to utilize it effectively, enhancing their purchasing decisions.
Promotion is crucial for enhancing consumer awareness of new products or brands and revitalizing interest in declining products According to Hoyer and MacInnis (2001), the key promotional communication tools include advertising, sales promotions such as premiums, contests, sweepstakes, free samples, coupons, rebates, personal selling, and public relations.
Conclusion
This chapter outlines that an organization's marketing strategy encompasses two key aspects: decision-making related to target customers and the development of a marketing mix aimed at appealing to that market Success is achieved by effectively positioning the organization's products and services Additionally, the effectiveness of the marketing strategy can be assessed by comparing customer perceptions of the market with the organization's offerings (Sengupta & Chattopadhyay, 2006).
The upcoming chapter will detail the research methodology, emphasizing the study's scope, sampling method, survey organization, and the validity and reliability of the questionnaire Additionally, it will outline the data gathering techniques used, the process of data analysis, and the overall reliability of the results.
RESEARCH METHODDOLOGY
Introduction
Research methodology serves as the foundational framework that guides the research process, grounded in specific paradigmatic assumptions Its significance lies in its ability to articulate the procedures and approaches necessary for conducting effective research (O’Leary, 2004).
This chapter outlines the study's population and chosen sample, details the design of the questionnaire, and describes the selected data collection method along with the data analysis techniques employed Additionally, it emphasizes the questionnaire as a key research instrument.
Research progress
The research process begins with a specific problem or question that necessitates clear objectives It involves a structured plan that breaks down the primary issue into secondary problems, enhancing the management of the research Additionally, it requires the collection and analysis of data to address the identified problem Ultimately, research serves to describe, understand, critique, and analyze existing information in a more comprehensive manner (Newby & Ertmer, 1997).
My thesis explores the marketing factors that influence the buying decisions of Nhon Hoang products To conduct effective research, it is essential to have a comprehensive understanding of the subject and identify the key factors that affect customer satisfaction This process involves establishing a strong theoretical foundation and reviewing relevant research papers to guide the entire research progress.
Tran Hoang Truc's review identifies key factors influencing customer satisfaction and proposes a preliminary research model The next step involves constructing questionnaires to gather valuable data from customers purchasing Nhon Hoang products According to Saunders et al (2003), self-administered questionnaires are typically completed by respondents, making them time-efficient for surveys This study employs a quantitative research method to collect and analyze fresh primary data After data collection, responses are filtered to exclude invalid entries, and the Statistical Package for the Social Sciences (SPSS) version 20 is utilized for detailed data analysis Based on the findings, the best approach to support the thesis is selected Ultimately, the verified research model and scale lead to conclusions and recommendations for Nhon Hoang Company, with the research process illustrated through a flow chart.
Servey and collect primary data Fresh Data
Encode and Input data Descriptive Statistics Reliability test – Verify Cronbach’s Anpha Exploratory Factor Analysis (EFA)
The Sampling Method
Cooper and Schindler (2003) describe sampling as the procedure by which some elements of a given population are selected as representative of the entire population
A sampling method can be classified as probability or non-probability For the purposes of this study, a probability sampling method was used
This article delves into the researcher's chosen sampling method, detailing the rationale behind its selection It also explores the sample size utilized in the study and provides a comprehensive explanation of the calculation process for determining that size.
Sampling techniques such as simple random sampling, systematic random sampling, and stratified random sampling are essential for research accuracy (Grinnell, 2001) In this study, I employed stratified random sampling to enhance precision by ensuring that all subgroups are represented in the sample in the same proportions as they exist in the population (Burns, 2000) Given the unequal distribution of Nhon Hoang product retailers across Vietnam’s regions, a proportionate number of retailers were randomly selected to ensure a representative sample.
The target customers are males and females, who bought Nhon Hoang products
This dissertation employs a quantitative method utilizing a questionnaire as the primary data collection tool The questionnaire will be distributed to customers of Nhon Hoang at selected retail locations, including Satra Phuong Trang in Tien Giang Province, Long Thanh rest stop station in Dong Nai Province, and Hien Trang Store in Binh Thuan Province, as well as to customers engaging with Nhon Hoang’s fanpage.
The size of a sample is a function of change in the population parameters under study and the estimation of the quality that is needed by the researcher (Cooper & Schindler,
Selecting an appropriate sample size is crucial for ensuring the reliability of a study, as emphasized by various researchers (Saunders et al., 2003) Hair et al (2006) recommend a minimum sample size of 100-150 for stable Maximum Likelihood Estimation solutions, while Bryant and Yarnold (1995) advocate for a rule of 200, suggesting at least 200 cases Additionally, they recommend a subjects-to-variables ratio of at least 5 For this research, the required sample size is calculated as 15 times the number of variables, resulting in 300 cases The completed questionnaires will be distributed to Nhon Hoang's customers.
Questionnaire
The questionnaire serves as the primary research instrument in the study, defined by Wegner (2000) as a tool for collecting primary data in survey-based research It comprises well-formulated questions and fixed response options that align with the research objectives Tustin et al (2005) describe it as a structured sequence of questions designed to elicit facts and opinions, facilitating effective data recording Various types of questions can be included in a questionnaire, which will be discussed further.
The choice of measurement scales in questionnaires is crucial as it influences the type of statistical analysis conducted There are four primary levels of measurement: nominal, ordinal, interval, and ratio scales (Cant et al., 2003).
The questionnaire used in this study aimed to assess how the elements of the marketing mix—product, price, place, and promotion—affect consumer decision-making when purchasing Nhon Hoang products.
Effective questionnaire design is crucial for enhancing response rates and simplifying data analysis A well-structured questionnaire must be clear, organized, and easy to navigate (Neuman, 2000) The development of questionnaire statements should be guided by relevant literature to ensure their relevance and clarity.
The statements that were used in the questionnaire are five-point Likert scale type statements and consisted of two sections:
This section consisted of three statements determining the biographical detail of respondents
Section B: Likert type statements measured on a five-point scale
The questionnaire included twenty statements related to the marketing mix, specifically focusing on product, price, place, and promotion, with five statements dedicated to each category These statements were derived from existing literature and assessed through the questionnaire to evaluate the construct of "Product."
The quality of Nhon Hoang products motivates me to buy
I buy Nhon Hoang products because they are safe for health
Taste of Nhon Hoang products meets my taste
Packaging of Nhon Hoang products is beautiful and attractive
Nhon Hoang has many kinds of products and many sizes for my choice
The construct “Price” was constituted from the following items on the questionnaire:
The prices of Nhon Hoang products are reasonable
The prices of Nhon Hoang products influence to my buying decision making
Discount price of Nhon Hoang products attracts me
The prices of Nhon Hoang products are suited to my pocket
The prices of Nhon Hoang products adequate to their qualities
The construct “Place” was developed using the following items on the questionnaire:
Nhon Hoang products are sold at convenient places for easy access
Nhon Hoang products can be found in many locations in the Western of Vietnam
The decoration of retailer attracts me come and buy Nhon Hoang products
The accessibility of stores encourages me buy Nhon Hoang products
Nhon Hoang products are displayed at easy seeing position at the store
The construct “Promotion” was developed using the following items on the questionnaire:
Promotions encourage me to buy Nhon Hoang products
Advertising on sideboards make me want to buy Nhon Hoang products
I choose Nhon Hoang products because I found good information on internet
Free samples of Nhon Hoang products affect my buying decision
Nhon Hoang uses customer word-of-mouth to promote their products
The statements’ response continuum ranged from 1-5, where 1 = strongly disagree, 2 disagree, 3 = neutral, 4 = agree and 5 = strongly agree.
Reliability
The reliability of research is extremely important so that it can be generalized to the whole population and not just those in the sample
Cronbach’s alpha was employed to evaluate the reliability of measurement sets assessing the impact of the marketing mix elements—product, price, place, and promotion—on customer buying decisions for Nhon Hoang products The reliability measure ranges from 0 to 1, with a value of 1 signifying perfect reliability, while a value of 0.6 is considered the minimum acceptable threshold (Malhota, 2007).
A well-conducted sample survey offers estimates rather than precise values, as it relies on a selected sample to represent the larger population Key types of errors in research include sampling errors, response errors, and non-response errors (Loubser, 1999).
Ethical consideration
Accurate data collection is a crucial goal in my research process, emphasizing the importance of using genuine information To create a comfortable environment for participants, I adhere to ethical guidelines that include ensuring voluntariness, respecting research subjects, and safeguarding private information.
To ensure the integrity of the research, I prioritize voluntary participation by inquiring if individuals have the time to contribute If they choose not to participate, I respect their decision and do not impose any pressure to continue.
Respecting research subjects entails ensuring that participants have the autonomy to make informed choices about their involvement They must be provided with comprehensive information about the researcher, the study's purpose, and their expected contributions Furthermore, participation should be voluntary, free from any threats or coercion, allowing individuals to engage in the research process with full understanding and consent.
I do not discriminate based on gender, age, or salary; all customers of Nhon Hoang are considered my research subjects It is essential to protect the privacy of participants, as some may share their phone numbers or emails This information will not be used for personal or business purposes, and all private data will be kept confidential to prevent any disturbances to the participants.
Conclusion
This chapter outlines the research methodology, detailing the data collection process, which is part of the research progress It covers the development of a preliminary research scale, the sampling method employed, and the design of the questionnaire Additionally, the chapter addresses reliability and ethical considerations associated with the research.
FINDING
Descriptive statistics
a) Demographic Characteristics of the Respondents
The collected data will be classified based on the following criteria: gender, age, qualification, number of years working in banking sector, position and department
This section utilizes SPSS 20 software to present the research findings, which encompass descriptive statistics, Exploratory Factor Analysis (EFA), and reliability testing using Cronbach’s Alpha Additionally, it includes hypothesis testing and the evaluation of the research model through multiple regression analysis.
The data was disposal from 300 valid responses of 300 questionnaires distributed The sample size of 300 valid responses meets the requirement of the minimum sample size.
Demographic Characteristics of the Respondents:
The collected data will be categorized according to gender, age, qualifications, years of experience in the banking sector, position, and department Among the respondents, 165 are female, representing 55% of the total, while 135 are male.
This part applies SPSS 20 software to displays the research results which includes descriptive statistics, Exploratory Factor Analysis (EFA), testing reliability heses and research model by multiple regression
The data was disposal from 300 valid responses of 300 questionnaires distributed The sample size of 300 valid responses meets the requirement of the minimum sample size
The collected data will be classified based on the following criteria: gender, age, qualification, number of years working in banking sector, position and department male (accounted for
The majority of the customer belong to the group of 20 group of 31-40 has proportion with 72 responders respectively (equivalent to 24% group 41-50 has 22% of responders over 50 years old
There are 172 participants have the income from 5 to 10 million VND per month make up 57.3% and 90 participants Nhon Hoang’
VND per month make up month from 10 to 15 million VND is who have income over 15 million VND is
The majority of the customer belong to the group of 20-30 years old (33 proportion with 72 responders respectively (equivalent to 24% of responders, whereas only 8.7% is under 20 years old and
Among 172 participants, 30% earn less than 5 million VND per month, while 18% have an income ranging from 5 to 10 million VND Additionally, 10.3% of participants earn between 10 and 15 million VND, and only 2.3% earn over 15 million VND monthly.
Page 40 years old (33.3%), two proportion with 72 responders respectively (equivalent to 24%) and
% is under 20 years old and 14%
172 participants have the income from 5 to 10 million VND per month make s customers have income under 5 million The number of participants who have income per
Table 4.1: The agreement degree of factors affect to buying decision making of Nhon Hoang’s product
PD1: The quality of Nhon Hoang products motivates me to buy
PD2: Nhon Hoang products safe for health
PD3: Taste of Nhon Hoang products meets my taste
PD4: Packaging of Nhon Hoang products is beautiful and attractive
Descriptive statistics of marketing factors:
Table 4.1: The agreement degree of factors affect to buying decision making of Nhon
Nhon Hoang motivates me to buy 1 12 61
Nhon Hoang is beautiful and attractive 2 30 125
Table 4.1: The agreement degree of factors affect to buying decision making of Nhon
10 - 15 million VNDOver 15 million VND
PD5: Nhon Hoang has many kinds of products and many sizes for my choice
PR1: The prices of Nhon Hoang products are reasonable 0 24 131 137 8
PR2: The prices of Nhon Hoang products influence to my buying decision making
PR3: Discount prices of Nhon
PR4: The prices of Nhon Hoang products are suited to my pocket 0 53 83 154 10
PR5: The prices of Nhon Hoang products adequate to their qualities
PL1: Nhon Hoang products are sold at convenient places for easy access
PL2: Nhon Hoang products can be found in many locations in
PL3: The decoration of retailer attracts me come and buy Nhon
PL4: The accessibility of stores encourages me buy Nhon Hoang products
PL5: Nhon Hoang products are displayed at easy seeing position at the store
PM1: Promotions encourage me to buy Nhon Hoang products 4 26 99 149 22
PM2: Advertising on sideboards makes me want to buy Nhon
PM3: I choose Nhon Hoang products because I found good information on internet
PM4: Free samples of Nhon
Hoang products affect my buying decision
PM5: Nhon Hoang uses customer word-of-mouth to promote their products
Table 4.2: The statistics of product factor’s respondents
(PD) PD1 PD2 PD3 PD4 PD5
Table 4.3: The statistics of price factor’s respondents
(PM) PR1 PR2 PR3 PR4 PR5
Table 4.4: The statistics of place factor’s respondents
(PL) PL1 PL2 PL3 PL4 PL5
Table 4.5: The statistics of promotion factor’s respondents
(PM) PM1 PM2 PM3 PM4 PM5
Table 4.6: The statistics of all factors’ respondents
FACTORS PD PR PL PM
In conclusion, the factors influencing the buying decision for Nhon Hoang's products—namely Product, Price, Place, and Promotion—are highly regarded As a result, Nhon Hoang is likely to receive more positive feedback than negative assessments.
Reliability test – Verify Cronbach’s Anpha
Table 4.7: The result of Reliability Test – Verify Cronbach’s Alpla of Product
Scale Mean if Item Deleted
Scale Varianc e if Item Deleted
Cronbach' s Alpha if Item Deleted PRODUCT (PD) – Cronbach’s Anpha = 0.810
PD1: The quality of Nhon
Hoang products motivates me to buy
PD2: Nhon Hoang products are safe for health 13.89 4.678 0.676 0.749
PD3: Taste of Nhon Hoang products meets my taste 14.00 5.010 0.552 0.786
PD4: Packaging of Nhon Hoang products is beautiful and attractive
PD5: Nhon Hoang has many kinds of products and many sizes for my choice
The calculated Cronbach’s Alpha for the product was 0.810, indicating good reliability The Item-Total Statistics panel revealed that all observed variables exhibited relatively high correlation coefficients, with the lowest being 0.530, which exceeds the required threshold of 0.3 Therefore, the scale demonstrates satisfactory reliability, and none of the observed variables should be removed Consequently, the analysis will proceed with the five identified variables for Exploratory Factor Analysis (EFA).
Table 4.8: The result of Reliability Test – Verify Cronbach’s Alpla of Price
Scale Mean if Item Deleted
Scale Varianc e if Item Deleted
Cronbach' s Alpha if Item Deleted PRICE (PR) – Cronbach’s Anpha = 0.849
PR1: The prices of Nhon Hoang products are reasonable 13.70 6.571 0.618 0.829
PR2: The prices of Nhon Hoang products influence to my buying decision making
PR3: Discount prices of Nhon
PR4: The prices of Nhon Hoang products are suited to my pocket
PR5: The prices of Nhon Hoang products adequate to their qualities
The analysis yielded a Cronbach’s Alpha coefficient of 0.849 for Price, indicating satisfactory reliability The panel Item-Total Statistics revealed that all observed variables exhibited high correlation coefficients, most exceeding 0.60 Consequently, none of the variables should be eliminated from further analysis The factor analysis will proceed with the five identified variables.
Table 4.9: The result of Reliability Test – Verify Cronbach’s Alpla of Place
Scale Mean if Item Deleted
Scale Varianc e if Item Deleted
Cronbach' s Alpha if Item Deleted PLACE (PL) – Cronbach’s Anpha = 0.684
PL1: Nhon Hoang products are sold at convenient places for easy access
PL2: Nhon Hoang products can be found in many locations in
PL3: Nhon Hoang products are displayed at easy seeing position at the store
PL4: The accessibility of stores encourages me buy Nhon
PL5: The decoration of retailer attracts me come and buy Nhon
The Factor of Place consists of five variables (PL1, PL2, PL3, PL4, PL5) Data analysis revealed that the total correlations for PL2 and PL5 were 0.291 and 0.170, respectively, indicating they are both below the 0.3 threshold Consequently, PL2 and PL5 will be excluded from the Place factor analysis due to their inconsistency.
Table 4.10: The result of the second Reliability Test – Verify Cronbach’s Alpla of Place Factor
Scale Mean if Item Deleted
Scale Varianc e if Item Deleted
Cronbach' s Alpha if Item Deleted PLACE (PL) – Cronbach’s Anpha = 0.796
PL1: Nhon Hoang products are sold at convenient places for easy access
PL3: Nhon Hoang products are displayed at easy seeing position at the store
PL4: The accessibility of stores encourages me buy Nhon
The analysis of PL2 and PL5 yielded a Cronbach Alpha coefficient of 0.796, exceeding the acceptable threshold of 0.6, while the correlation coefficients for all variables were above 0.3 Consequently, the Place factor is assessed through four components: PL1, PL3, and PL4.
Table 4.11: The result of Reliability Test – Verify Cronbach’s Alpla of Promotion Factor
Scale Mean if Item Deleted
Scale Varianc e if Item Deleted
Cronbach' s Alpha if Item Deleted PROMOTION (PM) – Cronbach’s Anpha = 0.839
PM1: Promotions encourage me to buy Nhon Hoang products 14.60 5.933 0.665 0.800
PM2: I choose Nhon Hoang products because I found good information on internet
PM3: Advertising on sideboards makes me want to buy Nhon
PM4: Free samples of Nhon
Hoang products affect my buying decision
PM5: Nhon Hoang uses customer word-of-mouth to promote their products
The Cronbach's Alpha coefficient for Promotion is 0.839, indicating strong reliability as it exceeds the 0.6 threshold Additionally, the corrected item-total correlations for all variables are above 0.3, and no variables show a higher Cronbach's Alpha if deleted Consequently, the Responsiveness scale demonstrates suitable reliability for this study, and five variables will be further analyzed using Exploratory Factor Analysis (EFA).
Table 4.12: The result of Reliability Test – Verify Cronbach’s Alpla of all
All Cronbach’s Alpha coefficients for the factors in this study exceed 0.6, indicating strong reliability: the Product factor is 0.810, the Price factor is 0.849, the Place factor is 0.796, and the Promotion factor is 0.839 Consequently, the research scale is deemed reliable for this analysis.
Exploratory Factor Analysis (EFA)
This section utilizes Exploratory Factor Analysis methods to evaluate the model, employing KMO and Bartlett’s coefficients alongside Varimax rotation to investigate the relationships among variables The analysis is conducted based on specific criteria.
The KMO measure evaluates the suitability of observed factors for factor analysis, with a coefficient of at least 0.5 indicating that the analysis is appropriate for the current data (Garson, 2002).
Bartlett's test is a statistical method used to assess the independence of variables within a population If the P-value from Bartlett's test is less than 0.05, it indicates that the null hypothesis of independence can be rejected, suggesting that factor analysis is suitable for the data (Hair et al., 2006).
- Extracted Variance needs to be over of 50% (Hair et al, 2006)
- Eigenvalue is an indicator which express to the fraction of variation explained by each factor According to Garson (2002), Eigen-value of each factor above 1 will be included in model
The correlation coefficient between variables and loading factors should be at least 0.5 Additionally, any items that are distributed across two or more factors with a difference of less than 0.3 will be removed, as outlined by Gerbing and Anderson (1988).
The result analysis from obtained data is as following:
Table 4.13: KMO and Bartlett’s test of independent variables
Kaiser-Meyer-Olkin Measure of
The result of accreditation factor showed KMO coefficient equal 0.783 (greater 0.5) and value of Bartlett’s test is less than 0.05, thus it is accepted to take into analysis
Table 4.14: The total variance explained of independent variables
Initial Eigenvalues Extraction Sums of
Rotation Sums of Squared Loadings Tota l
Extraction Method: Principal Component Analysis
The initial factor analysis revealed an Eigenvalue of 1.744, indicating that 18 variables can be categorized into 4 distinct factors Furthermore, the cumulative percentage of variance explained by these factors is 62.676%, surpassing the 50% threshold and demonstrating that over 62% of the variance is accounted for by the 4 factors identified.
Table 4.15: The first EFA analysis - Component Matrix
PR5: The prices of Nhon Hoang products adequate to their qualities 0.674
PR2: The prices of Nhon Hoang products influence to my buying decision making
PR1: The prices of Nhon Hoang products are reasonable 0.583
PR3: Discount prices of Nhon
PR4: The prices of Nhon Hoang products are suited to my pocket 0.555
PM4: Free samples of Nhon Hoang products affect my buying decision 0.553
PM2: I choose Nhon Hoang products because I found good information on internet
PM3: Advertising on sideboards makes me want to buy Nhon Hoang products
PM1: Promotions encourage me to buy Nhon Hoang products -0.553
PM5: Nhon Hoang uses customer word-of-mouth to promote their products
PD2: Nhon Hoang products are safe for health 0.652
PD1: The quality of Nhon Hoang products motivates me to buy 0.608
PD4: Packaging of Nhon Hoang products is beautiful and attractive 0.587
PD5: Nhon Hoang has many kinds of products and many sizes for my choice
0.553 PD3: Taste of Nhon Hoang products meets my taste 0.523
PL3: Nhon Hoang products are displayed at easy seeing position at the store
PL1: Nhon Hoang products are sold at convenient places for easy access 0.626
PL4: The accessibility of stores encourages me buy Nhon Hoang products
Table 4.16: The final EFA analysis - Rotated Component Matrix
PR2: The prices of Nhon Hoang products influence to my buying decision making
PR3: Discount prices of Nhon
PR4: The prices of Nhon Hoang products are suited to my pocket 0.796
PR1: The prices of Nhon Hoang products are reasonable 0.753
PR5: The prices of Nhon Hoang products adequate to their qualities 0.715
PM2: I choose Nhon Hoang products because I found good information on internet
PM4: Free samples of Nhon Hoang products affect my buying decision 0.822
PM1: Promotions encourage me to buy Nhon Hoang products 0.802
PM5: Nhon Hoang uses customer word-of-mouth to promote their products
PM3: Advertising on sideboards makes me want to buy Nhon Hoang products
PD2: Nhon Hoang products are safe for health 0.812
PD4: Packaging of Nhon Hoang products is beautiful and attractive 0.771
PD1: The quality of Nhon Hoang products motivates me to buy 0.769
PD3: Taste of Nhon Hoang products meets my taste 0.715
PD5: Nhon Hoang has many kinds of products and many sizes for my choice
PL3: Nhon Hoang products are displayed at easy seeing position at the store
PL1: Nhon Hoang products are sold at convenient places for easy access 0.808
PL4: The accessibility of stores encourages me buy Nhon Hoang products
The analysis of the rotated matrix revealed that all variable factor loadings exceeded 0.5, indicating their inclusion in the scale Additionally, the KMO value was found to be 0.851, with a significant result.
000, the value of cumulative percent is 64.695% so EFA result is satisfactory The variables are spliced together such groups as the follow:
(1) Product: PL1, PL2, PL3, PL4, PL5
(2) Price: PR1, PR2, PR3, PR4, PR5
(4) Promotion: PM1, PM2, PM3, PM4, PM5