Analysis of factors affecting purchase intention for dietary supplements in urban areas of vietnam

Trang 1 THE UNIVERSITY OF DANANGUNIVERSITY OF ECONOMICSFACULTY OF INTERNATIONAL BUSINESSBACHELOR’S THESIS Trang 2 Danang, Nov 2023ABSTRACTThis study, based on the fundamental literature

THE UNIVERSITY OF DANANG UNIVERSITY OF ECONOMICS FACULTY OF INTERNATIONAL BUSINESS

Danang, Nov 2023

ABSTRACT

This study, based on the fundamental literature of the Theory of Planned Behavior, has examined the factors predicting purchase intention of Vietnamese people in terms of the dietary supplement products The model also introduces two independent variables including health consciousness and country-of-origin, which is often considered as the moderating factors in the correlation between attitude and purchase intent Quantitative method is employed in the study with the non-probability sampling method applied to ensure representativeness of the population Survey is carried with 220 participants, who are currently living in the urban areas of Vietnam, since they could be considered as ideal consumers for dietary supplement market The findings indicated that the factor with the greatest influence on the intention to buy dietary supplements was subjective norms, while attitude, health consciousness, country of origin, and perceived behavioral control had progressively decreasing impacts, with the latter factor having the weakest influence In overall, the results help to give not only marketers and in business management fields but also regulatory authorities and consumers the insight toward how purchase intention is shaped and strongly affected, giving the premise for better strategies.

Key words: purchase intention, theory of planned behavior, country of origin, health consciousness, dietary supplement.

I am deeply indebted to the individuals who have contributed to thesuccessful completion of my bachelor's thesis at the University ofEconomics – the University of Danang Foremost, I would like to express

my sincere appreciation to my supervisor, MA Bui Thanh Huan, for hisinvaluable guidance and insightful recommendations throughout thisstudy His meticulous assistance has played a crucial role in ensuring thecareful and thorough execution of every aspect of my research Withouthis invaluable support, it would have been challenging for me toaccomplish this work to such a high standard

Additionally, I would like to extend my gratitude to all the lecturers

at the university Their knowledge and experience shared in the classroomhave greatly contributed to my academic development and facilitated thesuccessful completion of my Bachelor's Degree

I would also like to acknowledge the unwavering support andencouragement from my friends during my academic journey Thecamaraderie and shared experiences we had at school hold a specialplace in my heart

Lastly, I would like to express my deep and heartfelt appreciation to

my parents and younger brother Their constant presence, inspiration, andunwavering support have been my driving force in completing myBachelor's Degree I am truly grateful for their unwavering commitmentand belief in my abilities

TABLE OF CONTENTS

ABSTRACT i

ACKNOWLEDGEMENTS ii

TABLE OF CONTENTS iii

INTRODUCTION 1

1.1 Rationale 1

1.2 Research objectives 3

1.3 Scope of research 4

1.4 Research method 4

1.5 The practical and theoretical significance of the research 4

1.6 The structure of the thesis: 5

CHAPTER 2 LITERATURE REVIEW AND RESEARCH MODEL 6

2.1 Dietary Supplement 6

2.1.1 Overview about dietary supplement 6

2.1.2 Classification of dietary supplement: 7

2.2 Purchase Intention 8

2.3 Theory of Planned Behavior 10

2.3.1 Theory of Planned Behavior 10

2.3.2 Attitude 11

2.3.3 Subjective norms 12

2.3.4 Perceived behavioral control 14

2.4 Country of origin 14

2.5 Health consciousness 16

2.6 Research Model 17

CHAPTER 3 METHODOLOGY 18

3.1 Data collection 18

3.2 Measurements 18

3.2.1 Measurement scales 18

3.2.2 Design of the questionnaire 20

3.3 Data method 20

3.3.1 Data Processing and Analysis 20

CHAPTER 4 RESEARCH RESULT 24

4.1 The Demographic Summary 24

4.2 Reliability Analysis 25

4.3 Exploratory Factor Analysis 27

4.3.1 Exploratory factor analysis of independent variables 27

4.3.2 Exploratory factor analysis of dependent variables 29

4.4 Model and hypothesis testing 30

4.4.1 Pearson correlation analysis 30

4.4.2 Multiple linear regression analysis 31

4.5 Results of Hypothesis Testing and Model Evaluation 36

CHAPTER 5 SUMMARY AND RECOMMENDATIONS 38

5.1 SUMMARY OF FINDINGS AND SIGNIFICANCE 38

5.1.1 Research Findings Summary 38

5.1.2 Comparing with previous research findings 38

5.1.3 Research Significance 39

5.2 Recommendation 40

5.2.1 For regulatory authorities 40

5.2.2 Regarding Business Management 41

5.2.3 For consumers 43

5.3 Limitations 43

CONCLUSION 45

REFERENCES 46

LIST OF TABLES Table 3.1 Measurement Scales Error! Bookmark not defined.

Table 4.1 Summary of the Demographic Information Error! Bookmark not defined.

Table 4.2 Cronbach's Alpha coefficients of independent and dependent variablesError! Bookmark not defined Table 4.3 KMO test result Error! Bookmark not defined.

Table 4.4 EFA results of independent variables Error! Bookmark not defined.

Table 4.5 EFA results Error! Bookmark not defined.

Table 4.6 Pearson correlation analysis Error! Bookmark not defined.

Table 4.7 The results of assessing the model fit and autocorrelation.Error! Bookmark not defined.

Table 4.8 The results of the analysis of variance (ANOVA) Error! Bookmark not defined.

Table 4.9 The parameters of the regression model Error! Bookmark not defined.

Table 4.10 Results of Hypothesis Testing 36

Table 8.1 Gender 54

Table 8.2 Age 54

Table 8.3 Educational 54

Table 8.4 Income 54

Table 8.5 Experience 55

Table 8.6 Reliability Statistics 55

Table 8.7 Item-Total Statistics 55

Table 8.8 Reliability Statistics 55

Table 8.9 Item-Total Statistics 55

Table 8.10 Reliability Statistics 55

Table 8.11 Item-Total Statistics 56

Table 8.12 Reliability Statistics 56

Table 8.13 Item-Total Statistics 56

Table 8.14 Reliability Statistics 56

Table 8.15 Item-Total Statistics 56

Table 8.16 Reliability Statistics 57

Table 8 17 Item-Total Statistics 57

Table 8.18 KMO and Bartlett's Test 57

Table 8.19 Total Variance Explained 57

Table 8.20 Rotated Component Matrix a 58

Table 8.21 KMO and Bartlett's Test 58

Table 8.22 Total Variance Explained 58

Table 8.23 Component Matrix a 59

Table 8.24 Correlations 59

Table 8.25 Model Summary b 60

Table 8.26 ANOVA a 60

Table 8.27 Coefficients 60

LIST OF FIG

Y

Figure 2.1 Consumer Decision-making Process Error! Bookmark not defined Figure 2.2 The Theory of Planned Behavior Error! Bookmark not defined Figure 2.3 Research Model Error! Bookmark not defined Figure 4.1 Histogram Frequency Chart Error! Bookmark not defined Figure 4.2 Frequency Q-Q Plot Chart Error! Bookmark not defined Figure 4.3 Scatter Plot of Residuals Error! Bookmark not defined Figure 4.4 Results of the research model validation Error! Bookmark not defined.

Recent decades have witnessed an increase in health-relatedissues globally, which may bring about a lower quality of life byshortened life expectancies or chronic diseases This has raisedthe health awareness in both developing and developed countries,along with preoccupation about the sedentary lifestyles, madehealthcare sector one of the most invested and attention-receivedindustries, especially under the severe effects of Covid-19pandemic around the world[CITATION Hea21 \l 1033 ] Previous studiespointed out that consumers are becoming more and morecognitive about the vital role of nutrition in maintaining a healthylife as well as preventing illnesses The research of Alwan et al.(2021) found that the majority of respondents believed thatnutrition is important for maintaining good health Menozzi, et al.(2021) argues that buyers have a positive attitude towardshealthy eating and perceive healthy foods as more attractive,tastier, and more satisfying than unhealthy foods Come alongwith the awareness, knowledge about nutrient of customers is alsomore and more broadened [ CITATION Asm21 \l 1033 ] Purchasers withgreater nutrition knowledge tend to associate with healthiereating behaviors and a higher likelihood of engaging in physicalactivity [ CITATION Tin20 \l 1033 ]

Consequently, the growing concern among consumers aboutmaintaining their health and well-being has been a significantfactor in the recent rise in the popularity of dietary supplements.According to data from the market research firm Grand ViewResearch, the global dietary supplements market size was valued

at USD 140.3 billion in 2020 and is expected to grow at acompound annual growth rate (CAGR) of 8.6% from 2021 to 2028

The United States is the largest market for dietary supplements,accounting for approximately 36% of global sales in 2020 Othermajor markets for dietary supplements include China (23% ofglobal sales), Japan (9% of global sales), and Germany (5% ofglobal sales) However, the demand for dietary supplements indeveloped countries has reached its limit, prompting companies toconsider expanding their operations into foreign markets.Meanwhile, due to the high occurrence of malnutrition andnutrient deficiencies, as well as an increasing demand for healthproducts, developing countries hold great promise as a potentialmarket for dietary supplements [ CITATION Zul22 \l 1033 ] Significantly,the demand for nutraceutical products in Asia has seen a rapidgrowth owing to the increasing affluence of the middle-classpopulation Vietnam, which has a vast population of about 97million people and is among the rapidly-growing economies inSoutheast Asia, presents opportunities for the nutraceuticalindustry The country’s expanding economy, together with therising demand for products that promote health in Vietnam,indicates a promising prospect [ CITATION Ngh20 \l 1033 ] A report byEuromonitor International (2020) states that the sales of dietarysupplements in Vietnam reached US$423 million in 2020 with atotal market growth rate of 13%.

Vietnamese are paying more and more attention to theirhealth, which is having positive impacts on healthy foodconsumption, dietary supplement consumption, and dietarysupplement In 2022, Rakuten Insight conducted a study thatfound approximately 68% of Vietnamese participants reportedtaking dietary supplements or nutraceuticals Most of the usersstated they consumed these products on a daily basis Perceivingthe growing demand for health-caring, the Vietnamesegovernment has implemented various measures to improve

healthcare infrastructure and services (Nguyen & Tran, 2019;Nguyen, et al., 2021; Nguyen, et al., 2020) This creates afavorable condition for foreign brands that offer competitive priceswith well-researched products The availability of a large supply ofhealth supplements at lower prices has caused them to shift frombeing a luxury item to a commonly accessible commodity

[ CITATION Oli10 \l 1033 ] Along with the entering of more and morenew foreign and domestic rivals has the competitiveness in thismarket raised

Hence, there is a need for understanding the attitudes ofconsumers towards dietary supplements, which are a keydeterminant of their purchase intentions This is essential formarketers as gaining customers' insights can be a strategicallycompetitive advantage for the business Promoters can base onthe finding to give consumers appropriate details that will assistthem in making well-informed decisions when buying dietarysupplements Additionally, from this information, firms can makeefficient promotional efforts as well as come up with perspicaciousdecisions in terms of product development Those are the keydriving factors of the success of products in a market This hascreated the premise for several researches about behavioralprediction, especially purchase intention, in consumer behaviorfield However, the majority of previous studies concentrate onsubjective factors (Zhu, et al., 2020; Chen, et al., 2022) ratherthan considering the cognitive evaluation, such as healthconsciousness, in the buying process, except some researches inother industry or product ranges (Iqbal, et al., 2021; Su, et al.,2022) In addition, former studies also explored a significantimpact of country of origin on customers’ buying intent (Rezvani,

et al., 2012; Yunus & Rashid, 2016) Another factor defined tohave positive correlation with intent of grabbing products is health

awareness in the article published by Wen & Li, 2013 Therefore,

in this study, the theory of planned behavior (Ajzen, 1991) isapplied to analyze and predicting buying intent with the addition

of country of origin and health consciousness in the scope ofdietary supplement products With the aim of helping Vietnamesebusinesses in heath-care industry have another perspective from

customers, the study “Analysis of factors affecting purchase intention for dietary supplements in urban areas of Vietnam” is

conducted to provides a model forecasting purchasing intention ofcustomers with dietary supplement products, while analyzing themoderating effects of country of origin and level of involvement onbuying intention

CHAPTER 2 Research objectives

The research topic is pursued with the following objectives:

- Systematize the scientific theoretical issues related toconsumers' purchase intention

- Investigate the influencing factors on the purchase intention

of dietary supplements among Vietnamese consumers

- Provide recommendations for consumers, businesses, andregulatory agencies to enhance consumer awareness, improve thecompetitiveness of businesses, and support regulatory bodies inmanaging the dietary supplement market

The research was conducted in Vietnam in 2023 The targetpopulation of the study is consumers aged 18-60 living in cities orurban areas Within this age range, consumers are conscious ofand have a high demand for personal health care Additionally,they are individuals who are working-age population, thus likely tohave a more stable income rather than other age groups

CHAPTER 4 Research method

Based on the consumer buying intention theory and previousrelevant studies, the research was conducted using a quantitativeapproach The quantitative research was carried out through datacollection from survey based on a well-constructed and finalizedquestionnaire from the preliminary research stage Thequantitative study aimed to assess the measurement scale andtest the theoretical model, specifically examining the relationshipbetween the measurement scales and consumers' buyingintention of dietary supplements

The evaluation of the measurement scale was preliminarilytested using Cronbach's alpha reliability analysis and ExploratoryFactor Analysis (EFA) through the SPSS 16.0 software Correlationanalysis and linear regression will be employed to test theresearch model and hypotheses This process will lead to researchfindings regarding the influence of various factors on the buyingintention of dietary supplements among Vietnamese consumers

the research

The research findings provide an overview of various factorsthat influence the purchase intentions of Vietnamese consumerstowards dietary supplements Additionally, the study contributes

to helping consumers gain a comprehensive understanding ofdietary supplements, enabling them to make safe and effectivechoices in their selection and usage Furthermore, the researchsupports regulatory agencies in formulating measures and policies

to manage the dietary supplement market It also assistsbusinesses in developing appropriate strategies and actions tobest meet customer preferences, thereby enhancing thecompetitiveness of enterprises in the Vietnamese and regional

dietary supplement markets.

The thesis consists of 4 chapters: Chapter 1 provides thetheoretical foundation The research model with proposedhypotheses is presented in Chapter 2, along with the researchmethodology Chapter 3 presents the research findings Lastly,Chapter 4 presents the conclusions drawn from the achievedresults of the research, recommendations for regulatory agencies,businesses, consumers, the limitations of the study, and providesdirections for future research

CHAPTER 7 LITERATURE REVIEW AND

RESEARCH MODEL

Dietary supplements are products intended to supplementone's diet and provide additional nutrients, such as vitamins,minerals, herbal extracts, and other bioactive compounds The use

of dietary supplements has gained popularity in recent years,driven by factors such as perceived health benefits, convenience,and the desire for optimal nutrition This literature review aims toexplore the key aspects of dietary supplements, including theirusage patterns, safety concerns, and efficacy

Usage Patterns and Prevalence:

Research by Bailey, Fulgoni, & Keast (2011) found that dietarysupplement use is widespread, with a significant portion of thepopulation relying on supplements to meet their nutritional needs.The prevalence of supplement use varies across differentpopulation groups, with higher usage observed among olderadults, women, and individuals with higher education and incomelevels Furthermore, studies have shown that individuals often usedietary supplements for specific health purposes, such as immunesupport, bone health, or weight management [ CITATION Roc17 \l

1033 ]

Safety and Regulation:

The safety of dietary supplements is a topic of concern Whilemany supplements are generally considered safe when used asdirected, adverse events and interactions with medications havebeen reported The Dietary Supplement Health and Education Act(DSHEA) of 1994 regulates dietary supplements in the United

States, requiring manufacturers to ensure the safety of theirproducts and make accurate label claims However, the regulation

of dietary supplements varies across countries, and the qualityand consistency of supplements on the market can be a challenge[ CITATION Gel15 \l 1033 ]

Efficacy and Health Benefits:

The efficacy of dietary supplements in improving healthoutcomes remains a subject of debate Some studies havereported positive effects of certain supplements on specific healthconditions For example, omega-3 fatty acids have beenassociated with cardiovascular health benefits [ CITATION Moz18 \l

1033 ], and calcium and vitamin D supplementation have shownpotential for improving bone health [ CITATION Wea16 \l 1033 ].However, conflicting evidence exists for many supplements, andfurther research is needed to establish their effectiveness invarious contexts

Consumer Attitudes and Factors Influencing Use:

Consumer attitudes and beliefs play a significant role indietary supplement use Studies have shown that individuals oftenperceive supplements as a way to fill nutrient gaps and enhanceoverall health Additionally, factors such as personal health goals,self-perceived health status, and recommendations fromhealthcare professionals influence supplement use [ CITATIONHua19 \l 1033 ] Media and advertising also impact consumerperceptions and influence supplement purchasing decisions[ CITATION Smi20 \l 1033 ]

CHAPTER 10 Classification of dietary supplement:

Dietary supplements encompass a wide range of products thatare intended to supplement one's diet and provide additional

nutrients With the growing popularity and availability of dietarysupplements, the need for classification systems to categorizethese products has become increasingly important There are twocommon ways to classify dietary supplements products.

Traditional Classification Systems:

Traditional classification systems for dietary supplements areoften based on the composition and source of the supplement.These systems categorize supplements into groups such asvitamins, minerals, botanicals, amino acids, and other natural andsynthetic substances The United States Pharmacopeia DietarySupplement Classification System and the European UnionClassification System are examples of traditional systems widelyused to categorize dietary supplements based on their ingredients(Eisenberg, 2019; Karamanakos, Pappas, Bouga, & Stefanis, 2016).Functional Classification Systems:

In recent years, there has been a shift towards functionalclassification systems that focus on the intended purpose or healthbenefits of dietary supplements These systems aim to providemore meaningful information to consumers and healthcareprofessionals Functional classification systems may categorizesupplements based on their claimed health benefits, such asimmune support, cognitive enhancement, or sports performance(Kennedy, 2015) The use of functional classification systemsallows for targeted recommendations and personalizedsupplementation approaches

The classification of dietary supplements has significantregulatory implications Regulatory bodies, such as the U.S Foodand Drug Administration (FDA), rely on classification systems toestablish appropriate standards, labeling requirements, and safetyregulations for different categories of dietary supplements.Classification systems also play a crucial role in communicating

information to consumers Clear and easily understandablecategorizations can aid consumers in making informed choices andunderstanding the purpose and potential benefits or risksassociated with different types of dietary supplements [ CITATION Sch18 \l 1033 ]

CHAPTER 11 Purchase Intention

Purchase intention, a fundamental concept in consumerbehavior research, refers to an individual's predisposition orinclination to engage in a future purchase of a particular product

or service It is a psychological construct that represents thelikelihood or probability that a consumer will translate theirfavorable attitudes and preferences into an actual purchasedecision [CITATION Bagly \l 1033 ] Purchase intention is considered acritical precursor to actual purchase behavior and is influenced by

a variety of factors, including perceived product attributes, brandreputation, price, social influence, and personal needs andmotivations [CITATION Sch14 \l 1033 ] It is important to note thatpurchase intention does not guarantee actual purchase behavior,

as external factors and situational constraints may ultimatelyinfluence the conversion of intention into action [CITATION Bla06 \l

1033 ] Nonetheless, understanding and measuring purchaseintention provide valuable insights into consumers' mindset andtheir likelihood of engaging in future buying activities

Figure 2.1 Consumer purchase decision making process

Source: F., Blackwell, & Miniard (1990)

The consumer purchase intention process is a complexcognitive and psychological journey that individuals go through

when considering and evaluating their willingness to make apurchase It involves a series of cognitive and affective stages thatultimately shape consumers' intentions to buy a particular product

or service Initially, consumers are triggered by various internaland external stimuli, such as needs, desires, advertisements, orrecommendations, which create awareness and capture theirattention [ CITATION Hoy08 \l 1033 ] Subsequently, consumersengage in information search to gather relevant data and evaluatealternative options This stage allows them to assess productattributes, benefits, prices, and reviews to make informeddecisions [ CITATION Bla95 \l 1033 ] Following this, consumers enterthe evaluation and comparison stage, where they weigh theperceived value and benefits of different alternatives against theirpersonal needs and preferences [ CITATION Kot16 \l 1033 ] At thispoint, attitudes, social influence, and personal beliefs play asignificant role in shaping consumers' purchase intentions[CITATION Ice \l 1033 ][ CITATION Sch14 \l 1033 ]

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