Discover factors that influence the trend of choosing xanh sm’s electric vehicles among the young generation in ho chi minh city

FACULTY OF PUBLIC RELATIONS & COMMUNICATION MARKET RESEARCH FINAL REPORT DISCOVER FACTORS THAT INFLUENCE THE TREND OF CHOOSING XANH SM’S ELECTRIC VEHICLES AMONG THE YOUNG GENERATION IN H

FACULTY OF PUBLIC RELATIONS & COMMUNICATION

MARKET RESEARCH FINAL REPORT DISCOVER FACTORS THAT INFLUENCE THE TREND OF CHOOSING XANH SM’S ELECTRIC VEHICLES AMONG THE YOUNG GENERATION

IN HO CHI MINH CITY

Lecturer: Nguyén Phuong Lién Ph.D Class: Market Research AO5E

DECLARATION OF AUTHORSHIP

We are the authors of the scientific research article “Discover factors that influence the

trend of choosing Xanh SM’s of the young generation in Ho Chi Minh City” We

commit that this research work is conducted with the highest sincerity and compliance with ethical standards in the field of research I declare that I have worked independently and without fraud in the collection, analysis and presentation of data I] hereby declare that all sources of information, references and the work of others have

been fully and accurately cited I did not commit any copyright infringement while

conducting this research

I also certify that the results and analysis in the research article are truthful and accurate I do not hide any important information that may affect the objectivity of the results

Finally, I declare that I will be responsible for all information and content in this

research article | am available to provide additional information and answer any questions related to the study

Group 4

APPRECIATION First, we would like to send our sincere thanks to Ms Nguyen Phuong Lien, Marketing Research supervisor, for her dedicated guidance, comments and support throughout the research process Thanks to her enthusiastic guidance and valuable suggestions, we completed the research in the best possible way

Secondly, we would like to thank the members of group 4 of Marketing Research

subjects Thanks to the coordination, support and sharing of our members, we together completed the set goals and achieved good results

Thirdly, we would also like to thank everyone who assisted in participating in the survey Thanks to your contributions, we were able to collect valuable data to conduct this study

Finally, we would like to thank our family and friends for always motivating,

encouraging and creating conditions for us to complete the research

Best regards, Students of group 4

1.1 Background and reason for choosing the topic

1.2 Research question and obJ€CfIV€ - -.- 0 2001211211 1211121 12 1110112011011 11111111 1111111 11H kg ng 1 kg

2.1.1 Concept of Young Generations

2.1.2 Concept of technology vehicle

2.1.3 Xanh SM Electric Vehicle Concept

2.1.4 Concept of consumer buying behavior

2.2 Theoretical basis

2.2.1 TPB Theory of Planned Behavior

2.2.2 Theoretical Model Technology Acceptance Model (TAM)

2.3 Related experimental studies

2.3.1 Domestic studies

2.3.1.1 Research on "Factors affecting the decision to use technology vehicle services of university students in Ho Chi Minh City" (Luu Chi Danh Jt;1R2)/4aiiiaẳiiẳaẳaẳầaaiaiaiaẳaẳaẳada'ddiỶẳi 2.3.2 Research abroad - - - L k1 1112121111111 111 n1 9511111 ng 1111k C91111 1k T5 1111k Set 2.3.2.1 Electric vehicles’ consumer behaviors: Mapping the field and

providing a research asenda (SIlvana Secinaro et.al., 2020) 2 1 v12 2 tre 2.3.2.2 Factors impacting consumers’ intention toward adoption of electric

vehicles im Malaysia (Shahla Asadi et.al.,202 Ì) - 2 1 201112011321 1121 1151111511115 11x 2 2.3.2.3 An integrated behavioral approach to analyze the adoption of

electric vehicles in the context of a developing country (V Vyai Krishnan

& M Sreekumar, 2023) - - 2 2011020111101 1110111111111 11111 1111111111111 1 11111111111 1111111 111 ra 2.4 Theoretical ÍrameworE .- - cnT C111 11T T51 111151511 11111 111 k1 1111111110111 1 11 1x1 x11 và

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CHAPTER 4: RESULTS

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REFERENCES

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LIST OF ABBREVIATIONS

Technology 2

ABSTRACT

This research aims to provide further insights into the factors influencing the decision

to use Xanh SM among young people today The study utilizes a quantitative research method with a sample of 144 survey respondents aged 18-30 The results of the study indicate that there are two factors that impact the choice of Xanh SM: Promotional and Social influence The research also presents the findings of the validation process and

acknowledges some limitations encountered during the study However, our student group also proposes some suggestions to help the management of Xanh SM enhance

service quality and develop the Xanh SM brand sustainably

Keywords: Electric vehicles, Xanh SM, environmental conservation, usage decision.aaa

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CHAPTER 1: INTRODUCTION 1.1 Background and reason for choosing the topic

In recent years, there has been growing concern about energy shortages and adverse air quality impacts caused by road vehicles worldwide According to a study by Yale University's Environmental Performance Index (EPI) (2022), Vietnam ranked 170 out

of 180 assessed countries for air quality, with a score of 54.76/100 Severe environmental pollution in Vietnam remains a major problem for many According to 1QAir (2024), the Air Quality Index (AQI) and PM2.5 air pollution in Ho Chi Minh City are now 3.2 times higher than the World Health Organization's (WHO) annual air quality guidelines By 2023, Ho Chi Minh City will have about 9 million vehicles, including 7.8 million motorbikes and 865,000 cars, and dust from construction activities in the city will further increase air pollution (Doan Van Tan, 2023)

With this emergency, the adoption of environmentally friendly transport has become a requirement in our daily lives According to Vinfast (2021), "The future of electric vehicles covering the streets globally" - Electric vehicles are leading the wave of smart consumption and environmental protection The outstanding advantages of electric

vehicles have led many countries and global car manufacturers to come up with plans

to reduce the sale of gasoline-powered vehicles, shifting to favoring electric vehicles and electric buses The International Energy Agency (IEA) (2024), with an annual

growth rate of 30%, electric vehicles will soon overtake petrol/diesel cars as the most

popular vehicles on the road (Ngoc Quynh, 2024) It is expected that by 2030, electric cars will help reduce global consumption of 5-6 million barrels of diesel and gasoline per day Data from Vero IQ also shows that the percentage of users searching for electric motorcycles grows annually by 71% (statistics from January 2019 to March 2023) This shows that Vietnamese consumers are gradually considering electric

vehicles as environmentally friendly means of transportation (Hoang Lam, 2023)

Through that, Vinfast began to enter the technology vehicle market, and Xanh SM 1s

considered one of the best alternatives to help reduce the amount of polluted air while

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helping to meet the demand for vehicles in Ho Chi Minh City The appearance of

Xanh SM Bike electric motorbike calling service has quickly attracted 1 million

customers after only 1.5 months of launch, helping Vietnamese users have more

favorite transportation options Demonstrating the significant attraction of a rookie in Vietnam's market despite the presence of big tech ride-hailing companies from abroad (Huyen Anh, 2023) After only 7 months of launch, Xanh SM technology ride-hailing

service has quickly climbed to the second position in the technology ride-hailing

market in Vietnam, only after Grab (Xanh SM, 2024) From the above, our team has started to focus on exploring and exploring what factors affect the decision of students and young people to switch from conventional technology motorbikes to Xanh SM electric motorbikes in Ho Chi Minh City

1.2 Research question and objective

- When: February to April 2024

- Geography: Ho Chi Minh City

Research Subjects

- Young individuals living in Ho Chi Minh City

Research Objects

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- Factors that mmpact students' “decisions In Ho Chỉ Minh City HCM when choosing Xanh SM technology vehicles instead of others”

Respondents

- Young individuals aged from 18 to 30 who are learning, working, and living in

Ho Chi Minh City

1.4 Method

This study uses a quantitative approach using Google Forms to collect data from study

subjects The questionnaire will be sent to young people in Ho Chi Minh City HCM 1s currently or has used a ride-hailing service The distribution of the questionnaire will

be done through social media platforms such as Facebook, Instagram, and Zalo

A total of 144 questionnaires will be distributed and data collection will take place

from March 18 to March 24, 2024 This method allows the study to collect

quantitative data and analyze the influence of each factor on the decision to use Xanh

SM of young people in Ho Chi Minh City

The data collected from the questionnaire will be processed using STATA version 15

software to build an SEM linear structure model from which to analyze, with the aim

of:

(1) Identifying the relationship between young people's perceptions of benefits,

challenges, and surrounding factors for the decision to choose Xanh SM

(2) Measure the impact of these perceived factors on the decision to choose a Xanh

SM

1.5 Scientific and practical significance

Research on factors affecting the intention of young people to use Xanh SM electric

technology vehicles in Ho Chi Minh City has significant importance in determining consumer behavior from all scientific and practical aspects in environmental

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protection and reducing air pollution caused by vehicles in Ho Chi Minh City

Concrete:

In practice, this study helps to better understand desired attitudes and behaviors

and encourages students in Ho Chi Minh City to use Xanh SM electric technology vehicles By identifying important factors affecting the decision to use the facility, as well as the quality, price, service attitude, and coverage of

the service, this research assists managers in devising marketing strategies and improving service quality to meet customer needs At the same time, it

contributes to building a green-smart mobility ecosystem throughout Ho Chi

Minh City

Scientifically, this study helps us better understand the factors that impact the decision to choose a green electric vehicle, from price, performance, and utility

to environmental visibility and social factors It contributes knowledge to the

field of marketing and provides models and decision-making processes using

Xanh SM technology vehicles to young consumers This research opens new theoretical developments about consumer behavior and provides a basis for further research in this area In addition, the research also contributes to consumer eco-behavior and environmental protection while minimizing noise Research on factors affecting the intention of young people to use Xanh SM technology vehicles in Ho Chi Minh City is important from the perspective of science and practice, contributing a part to environmental protection and

reducing air pollution in Ho Chi Minh City, provides useful information and

makes recommendations to promote the use of green services and sustainable transport development We hope that there will be more policies to encourage people to use green services and protect the environment, in line with the development of society

1.6 Thesis structure

Chapter 1: Introduction

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Chapter 2: Theoretical foundations and empirical studies

Chapter 3: Research methodology

Chapter 4: Result

Chapter 5: Conclusion and recommendation

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CHAPTER 2: THEORETICAL FOUNDATIONS AND EMPIRICAL STUDIES 2.1 Concepts

2.1.1 Concept of Young Generations

According to the World Health Organization (WHO, n.a year), adolescence refers to

the age range of 10 to 19 years old, while youth refers to the age range of 15 to 24

years old The term "youth" encompasses both age groups, from 10 to 24 However, according to Article 1 of the Youth Law, youth 1s defined as "from sixteen to thirty years old." Additionally, research has found that individuals between the ages of 16 and under 18 are still dependent on and influenced by their parents or guardians, thus their assessment is not meaningful Therefore, in this study, youth is defined as individuals between the ages of 18 and 30

2.1.2 Concept of technology vehicle

Technology vehicles are services that transport people by utilizing applications Customers provide basic information such as the pick-up point, destination, and phone number for contact Once the technology driver accepts the ride, the customer's information will be provided for easy contact, and the driver will arrive to pick up the passenger and start the journey The trp will be completed upon arrival at the

requested location

The fare is not agreed upon directly between the driver and the customer but is

calculated based on the shortest distance according to the map and converted into a specific amount The driver is responsible for deducting a portion of the fare collected from the trip as a commission to the application provider This commission percentage may vary depending on the different applications

2.1.3 Xanh SM Electric Vehicle Concept

Pham Nhat Vuong has recently announced the establishment of the Green and Smart

Mobility (GSM) Joint Stock Company on March 6th, 2023 The company aims to

offer a distinctive multi-platform electric vehicle rental and booking service, focusing

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on two main areas: electric vehicle booking and electric vehicle rental With ambitious plans to invest in 20,000 cars and 60,000 motorbikes, GSM prides itself on its green

mission, providing mobility services with electric cars and electric motorbikes (GSM,

n.a year)

In the first phase, Xanh SM service will synchronously use VinFast Feliz S electric motorcycles, painted in the characteristic Cyan blue color of Xanh SM In the next phase, Xanh SM plans to add VinFast Evo 200 electric motorcycles With Xanh SM, passengers will be served by a team of friendly, professional drivers and travel on

smart, modern electric motorbikes (D Khoa-Phuong Ho_Tuoi Tre News_ 14/08/2023)

2.1.4 Concept of consumer buying behavior

Consumer behavior refers to the way customers interact with the decision-making

process when making a purchase This involves finding information, selecting products, comparing prices and quality, assessing satisfaction after purchase, and deciding whether to continue consuming or not

Intention to use is a term coined by Davis, Bagozzi, and Warshaw in 1989, which measures an individual's desire to use a particular product or service in the future The

study identifies factors that influence user intent, such as attitudes, perceptions of

control, and subjective norms In another study, intention to use was defined as a variable that connects an individual's internal and external factors to their actual behavior (Ayjzen, I., Fishbein, M., 1975)

To summarize, user intent can be defined as an individual's willingness to use a

particular product or service over a certain time frame

2.2 Theoretical basis

2.2.1 TPB Theory of Planned Behavior

The Theory of Planned Behavior (TPB) was proposed by Ajzen (1991) According to

TPB, the intention to engage in behavior will be influenced by three main factors:

attitude toward behavior, subjective norms, and perceptions of behavioral control

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TPB is an evolution from ratlonal behavior theory (AJzen and Fishbern, 1975) This

theory was created to transcend the limits of the previous theory, which held that

human behavior 1s completely controlled by reason

~ Behavioral DIC

Fig 1 Theory of Planned Behavior (TPB)

Source: Ajzen and Fishbein (1975) Three factors influence the intention to perform the behavior:

- Attitude towards behavior: This is how individuals evaluate positively or

negatively about performing a behavior Attitudes are formed based on the

individual's beliefs about the consequences and outcomes of behavior

- Subjective standards: This is the social pressure that individuals face when

performing behaviors Subjective norms include expectations from others (such

as relatives, colleagues, friends, etc.) about the individual's conformity with the

individual's norms and motivations to meet those expectations

- Cognitive control of behavior: It is easy or difficult for individuals to perform a

particular behavior, depending on the availability of resources and opportunities

to perform the behavior

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2.2.2 Theoretical Model Technology Acceptance Model (TAM)

In 1989, researchers Davis, Bagozzi, and Warshaw introduced the Technology

Acceptance Model (TAM) as an expansion of rational action theory The TAM aims

to explain the common factors that influence the adoption of computer technology and

predict user behavior on a large scale

The TAM focuses on two key personal beliefs relating to the acceptance of

information technology (IT): "perceived usefulness" (PU) and "perceived ease of use"

(PEU) PU refers to the extent to which an individual believes that using a particular

system will enhance their job performance In contrast, PEU refers to the extent to

which an individual believes that using a particular system will require minimal effort

These two beliefs play a significant role in shaping an individual's intentions and

behaviors The TAM was tested among 107 computer users at two different time

intervals- one hour and 14 weeks after the introduction of the technology The results

indicated a positive impact of PU and PEU on user intentions, with PU being the

primary determinant and PEU serving as a secondary determinant Attitude had only

an intermediate impact on user intent

Fig 2 Technology Acceptance Model

Source: Davis, Bagozzi, and Warshaw (1989)

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2.3 Related experimental studies

2.3.1 Domestic studies

2.3.1.1 Research on "Factors affecting the decision to use technology vehicle

services of university students in Ho Chi Minh City" (Luu Chi Danh et.al., 2021)

Luu Chi Danh et.al (2021) have set the goal of identifying factors affecting students'

decision to use technology vehicle services at universities in Ho Chi Minh City To do

this, the study used TAM 2 (Venkatesh et al., 2003) and UTAUT 2 (Venkatesh,

Thong, and Xu, 2012) models to analyze data from the survey, which used a

combination of qualitative and quantitative research methods, with a total of 511

students in Ho Chi Minh City participating collected between April 2021 and May

2021 Research results show that there are 3 main factors influencing students’

decision to use technology car services: improving work efficiency, living and

studying habits, and brand awareness These factors were identified as important in

deciding to use the service and had a positive influence The study proposes solutions

so that managers of technology vehicle service enterprises can improve service

quality, create positive perceptions, and promote students’ habits of using technology

vehicle services However, the study also showed that its limitation was that the

survey scope was limited to students from a few universities in Ho Chi Minh City

2.3.2 Research abroad

2.3.2.1 Electric vehicles’ consumer behaviors: Mapping the field and providing a

research agenda (Silvana Secinaro et.al., 2020)

Silvana Secinaro et.al (2020) have clearly shown that research on electric vehicle

consumers yields significant contributions related to behavioral factors that stimulate

purchases The study used the Planned Behavior Theory (TPB) model according to

Egbue & Long (2012) and Ajzen (1991) and the Exploration Theory Study of TAM

(Davis, 1989) to better understand cognitive usefulness and ease of use Since this is a

research paper that requires clear systems, the study data was analyzed from 254

consumers in the electric vehicle market The results clearly show that factors such as

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perceptions of usefulness, benefits of using electric vehicles, quality of products with

consumers, approaches, and optimal electric vehicle experiences, price consciousness,

environmental concern, and consumer personality to improve energy efficiency meet

the demand for green vehicles and meet environmental challenges The analysis and

research review explores good methods to expand the market space where consumers

are now attracted to emerging technologies This study has some limitations First, to

avoid duplication of data, the authors limited the article template to using only the

Scopus database Although the string of search queries may seem comprehensive,

many publications useful for research cannot be ruled out Second, although it reduces

the subjectivity of the sample, the methods applied may ignore important findings and

Inspirations from the selected study Third, the analysis is based on a snapshot of time,

a visual approach, which could change as electric vehicles become more popular

Finally, this study does not consider how doer input can improve the effectiveness of

contributions to EV consumers’ habits

2.3.2.2 Factors impacting consumers’ intention toward adoption of electric

vehicles in Malaysia (Shahla Asadi et.al.,2021)

Shahla Asadi et.al (2021) has identified factors influencing consumers! intention to

use electric vehicles in the Malaysian context The study uses a combined NAM

(Schwartz, 1977) and TPB (Ajzen, 1991) to expand research on electric vehicle

adoption from an environmentally friendly behavior perspective Data was collected

from 177 potential consumers in Malaysia The results of the study indicate that

factors such as perceived value, attitude, the ascription of responsibility, subjective

norms, personal norms, perceived consumer effectiveness, awareness of

consequences, reliability, recharge time, vehicle maximum speed, purchase price,

driving range, performance, operating costs, and pro-environmental perceptions have

positively and significantly influenced electric vehicles consumers’ intentions to

purchase electric vehicles The findings provide important information for policy

development and strategies to promote the adoption of electric vehicles in Malaysia

The study also had some limitations First, consumer behavioral intent is measured

only by the intention to use electric vehicles, not completely reflecting actual

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behavior Therefore, future research is needed to examine the actual applicable

behavior Second, despite the integration of many theoretical models, there may still

be other factors to consider to ensure model integrity

2.3.2.3 An integrated behavioral approach to analyze the adoption of electric

vehicles in the context of a developing country (V Vijai Krishnan & M

Sreekumar, 2023)

V Vyai Krishnan & M Sreekumar (2023) have pointed out the integrated behaviors

of people in India towards the use of electric vehicles in the context of the developing

nation The HCM (Walker and Ben-Akiva 2001), combines psychological factors and

conventional choice models to assess factors influencing consumers’ intentions to

purchase and choose electric vehicles The study conducted a nationwide survey in

India with a convenient random sample, with a total of 546 individuals participating

The results of the study indicate that factors such as the price, the convenience of

charging, the intention to purchase, willingness to pay extra for electric vehicles,

performance, market perceptions, monthly household income, policy perceptions,

usage constraints, and age both influence consumers’ choice of electric vehicles in

India The results of the study will be very useful for formulating effective policies on

promoting the use of electric vehicles and encouraging the purchase and use of electric

vehicles by providing information on the determinants of consumer choice However,

this study also has limitations, such as cultural factors and social opinions that may

also influence consumer behavior

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CHAPTER 3: RESEARCH METHODOLOGY 3.1 Proposed research model and research hypotheses

Based on the four research papers that we have studied, we have found that previous

studies were based on the Theory of Planned Behavior (TPB), which includes

variables such as reliability, maximum speed of the car, purchase price, driving range,

living and learning habits, and brand awareness They also utilized the Technology

Acceptance Model (TAM) with variables such as pro-environmental awareness,

improved work efficiency, operating costs, the performance of electric vehicles, and

the convenience of charging In this current study, we have carefully selected and

proposed the research model as depicted in the diagram below:

PROMOTION POLICY

H1 (+) PERCEPTION OF TRUST

ATTITUDE TOWARD SERVICE

Fig 4 Research model Source: Luu Chi Danh et.al (2021); Silvana Secinaro et.al (2020); Shahla Asadi

et.al (2021); V Vijai Krishnan & M Sreekumar (2023)

Based on previous studies, such as the research article by Liao et al (2016),

observations have been made regarding various policy tools that can promote the use

of electric motorcycles Three policies have been tested and found effective in

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previous studies: pricing policy, cost reduction policy, and non-financial policy According to the authors' conclusions, promotional policies are one of the important factors influencing the intention to choose electric motorcycles Another study by Huang, and Ge (2019) also showed that financial incentives have a positive impact on the intention to purchase electric motorcycles

Based on these research findings, similar perspectives can be applied to demonstrate that promotional policies have a positive impact on the intention to use the Xanh SM service among young people in Ho Chi Minh City Promotional policies such as discounts, cost reductions, and non-financial benefits can provide motivation and attract young people to use the Xanh SM service

With discounts, cost reductions, and non-financial benefits, promotional policies help alleviate financial burdens and create a more favorable and appealing economic

environment for young people This motivates young people to try and use the Xanh

SM service Additionally, promotional policies can also provide non-financial benefits such as priority access to promotional programs, good customer support services, and

better user experiences This helps build trust and satisfaction among young people in using the Xanh SM service

1: Promotional policies positively affect the intention to use the Xanh SM service among young people in Ho Chi Minh City

Consumer trust in the effectiveness of environmental protection products is a

significant motivation for their adoption (Chen, 2010) Previous studies have demonstrated that consumers perceive green products as capable of addressing environmental concerns (Clark et al., 2003) The concept of "green trust" refers to consumers’ inclination to rely on a brand's reliability, benevolence, and environmental protection actions (Chen, 2013) Trustworthiness is a crucial factor in the implementation of green marketing strategies (Chen & Chang, 2012)

Research focusing on green energy has indicated that when consumers are exposed to

information about the environmental contributions of green products, it not only enhances their purchase intentions but also increases their willingness to pay for such

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products (Bang et al., 2000) Thus, it can be inferred that awareness of trustworthiness

positively influences purchasing behavior and the intention to utilize green services

Based on these findings, it can be argued that awareness of trustworthiness positively impacts the intention to use Xanh SM services among young people in Ho Chi Minh City When young consumers perceive Xanh SM as a reliable and environmentally

responsible service, they are more likely to trust the brand and be motivated to utilize

Its services This underscores the importance of building trust and promoting the environmental contributions of Xanh SM to attract and retain young consumers

2: Perception of trust is evident in how it enhances the willingness of young individuals in Ho Chi Minh City to utilize the Xanh SM services

The trend of young people choosing electric vehicles 1s closely related to social influence, which refers to the societal impact on their decision-making Research on the theory of planned behavior by Ajzen (1991) and other studies have shown that social pressures from family, friends, colleagues, and organizations can positively influence the mtention of young people to use electric vehicles

According to Ajzen (1991), "subjecttve norm" is the social pressure individuals perceive when deciding to engage in a specific behavior This can include pressure from family, close acquaintances, friends, colleagues, and organizations Park's research (2000) also indicates that “subjective norms" can reflect direct or indirect influences from businesses, such as sales techniques, attractive promotional policies, and after-sales services Studies by Hoang Thi Bao Thoa (2017) and Ekmekci (2019)

have demonstrated that "subjective norm" has a positive impact on green consumption

intentions

Based on the above paragraph, it can be concluded that social influence has a positive impact on the intention of young people in Ho Chi Minh City to use Xanh SM

services The social pressures exerted by family, friends, colleagues, and organizations

can encourage and promote the adoption of Xanh SM services, which include the use

of electric vehicles Positive social activities, advertising, and the dissemination of information through social media and digital platforms create a supportive social

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environment that fosters the intention to use Xanh SM services among young people

in Ho Chi Minh City

H3:The social impact of consumption significantly influences the inclination of young individuals in Ho Chi Minh City to utilize Xanh SM services

The environment is a growing concern worldwide, and understanding the role of

environmental awareness in influencing consumer behavior is crucial According to Smith (2013), the consequences of consumption reflect the extent to which consumers

are aware of the ecological implications of their actions Individuals who are conscious of the environmental effects of their consumption decisions are more likely

to consider the environmental impact of the products they use Johnson (2015) further emphasizes that individuals make purchasing decisions based on their level of concern for the environmental effects of the products they choose

Moreover, Davis (2016) suggests that environmental awareness significantly influences consumers’ intentions to purchase environmentally friendly products When individuals are more environmentally conscious, they actively seek out and choose products and services that align with their environmental values This implies that young people in Ho Chi Minh City who possess a higher level of environmental awareness are more likely to be receptive to environmentally friendly services such as the Xanh SM service

Furthermore, Smith (2013) highlights that individuals who prioritize untversalistic values, such as environmental protection and the preservation of nature, are more inclined to consider certain actions as morally wrong and environmentally detrimental

This implies that young people who prioritize environmental values are more likely to

be responsive to the ecological consequences of their consumption behaviors

In conclusion, the evidence suggests that environmental awareness plays a crucial role

in shaping the intention to use the Xanh SM service among young people in Ho Chi Minh City As individuals become more aware of the ecological implications of their

consumption decisions and prioritize environmental values, they are more inclined to choose environmentally friendly services The findings highlight the importance of

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promoting environmental awareness and sustainable consumption practices among young people to foster a greener and more environmentally conscious society

4: Environmental awareness encouragingly inspires the intention to use the Xanh

SM service among young people in Ho Chi Minh City

Positive attitudes towards the Xanh SM service can be shaped by several factors Firstly, the service's environmental benefits and commitment to sustainability can contribute to a positive attitude Young people who value environmental protection and are conscious of their ecological footprint are more likely to perceive the Xanh

SM service as a desirable option

Secondly, the convenience and quality of the service can influence attitudes If young people have positive experiences or receive positive reviews from others about the Xanh SM service, they are more likely to develop a favorable attitude towards it Factors such as reliability, efficiency, affordability, and user-friendly features can contribute to a positive perception of the service

Additionally, societal influences and social norms can play a role in shaping attitudes towards the Xanh SM service If the service is widely endorsed and supported by influential individuals or groups in society, young people may be more inclined to adopt a positive attitude towards it

5: Attitude towards the service positively influences the intention to use the Xanh

SM service among young people in Ho Chi Minh City

3.2 Research data

3.2.1 Scales and sample size

Once our research model has been established, we will proceed to organize the methodology, scale, and sample size for collecting and analyzing research data We have chosen to utilize a unified Nominal Scale and Likert Scale for measurement The Nominal Scale will allow us to identify the gender, age, and occupation of survey

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participants, while the Likert Scale will assist in measuring their attitudes, opinions, or perceptions To clarify:

e Nominal Scale:

We use this to classify data into distinct groups or categories, without any inherent order or numerical value attached This helps us identify patterns and relationships between different categories:

Identifying groups: Categorize individuals into various groups based on their Gender (Male, Female), Age (ranging from 18 to 24 years old and 25 to 30 years old), Occupation (Student, Office Staff, Engineer/Worker, Business/Management, Teachers/Lecturers), and Monthly Income (Under 5 million VND, 5 - 10 million VND, 10 - 20 million VND, Over 20 million VND)

Frequency analysis: Determine the frequency of each category to identify the most or least common characteristics in a dataset

Comparing groups: After categorizing customers by their age, gender,

occupation, and income using nominal data, we compare their purchasing

habits

e Likert Scale:

To assess respondents! attitudes, opinions, or perceptions, we employ a commonly

used measurement tool known as the Likert scale This method captures the level of agreement or feeling on a spectrum ranging from | to 5 By utilizing this technique,

we can gauge the intensity of the respondent's stance on a given topic:

Gathers nuanced data: We use this to provide a detailed picture of

respondents’ opinions by capturing the intensity of their agreement from evaluation level 1 to 5 (strongly disagree, disagree, neutral, agree, strongly agree)

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- Usability in various contexts: We use this to measure a range of opinions on

variables such as Promotion Policy, Perception of Trust, Social Influence,

Environmental Awareness, and Attitude toward Service

To enhance the accuracy of our data research, we will be utilizing an online survey

platform (Google Forms) to collect the necessary information To ensure that our

findings apply to the intended audience, we will determine an appropriate sample size,

thus avoiding any inaccuracies

To calculate the sample size, the standard formular will be the Hair et al (2018)

formula, which takes into consideration the number of variables that require scrutiny

This formula will determine the number of participants (n) required to answer the

study questions, (m) the number of studied variables:

n= 50+8xm n= 50+8x21

=> n= 218 (participants) Howerver, due to our limit in resource, money and shortage of time we prefer to

employ a less accurate formular - Hair et al (2006):

For Hair et al., (2006) when using exploratory factor analysis (EFA),

the minimum sample size must be 50, preferably 100 and the ratio

of observations to measured variables is 5: 1, meaning that when

there is a measured variable, there needs to be at least 5

observations The number of samples suitable for conducting

multivariate regression analysis is also 5 times the number of

observed variables with the minimum sample size calculation

formula used in the study being n = 50+8p

In there:

n: is the minimum required sample size

p: is the number of independent variables in the model

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So according to the experimental model in section 3.1, n = 50 + 8x5 = 90

observations And according to the 5:1 principle, the number of observations needed

to be collected is: 5x5=25 observations In our actual finalize data, to diversify the

sample, this study collected 144 observations

3.3 Analytical methods and necessary tests:

Once collected, the data undergoes a validity check to ensure that only valid forms are

utilized, while excluding forms with blank or incomplete answers The analysis will be

conducted using Stata version 15 and Excel 2010 as the chosen analysis tools To

guarantee the reliability and accuracy of the analysis, the study will implement the

following fundamental tests

3.3.1 Cronbach's Alpha reliability assessment

According to author Nguyen Dinh Tho (2013), "Cronbach's Alpha coefficient 1s a

commonly used method to measure the consistency of a set of questions or a series of

measurement variables in research with variable values.”

If a measurement variable has a Corrected Item-Total Correlation coefficient greater

than or equal to 0.3, then the variable is considered to meet the requirement (Nunnally,

J 1978)

The value of Cronbach's Alpha coefficient can be evaluated as follows ( Hoang Trong,

Chu Nguyen Mong Ngoc 2008)

From 0.8 to close to 1: the measurement scale is very reliable

From 0.7 to close to 0.8: the measurement scale 1s adequately reliable

Above 0.6: the measurement scale is sufficiently reliable

Cronbach's Alpha coefficient with the removal of an observed variable (Cronbach's

Alpha If Item Deleted): if the value of Cronbach's Alpha If Item Deleted is higher than

the Cronbach's Alpha coefficient of the entire scale, we can consider removing that

observed variable

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3.3.2 KMO and Bartlett's test

The criteria for the KMO coefficient and the significance coefficient according to the

Barlett test in a research model are as follows The KMO coefficient should fall within

the range of 0.5 to 1, mdicating an acceptable level of sampling adequacy The

significance coefficient from the Barlett test should be statistically significant at a 5%

level, indicating that at least one eigenvalue 1s greater than | and justifying the use of

the research model Additionally, the total variance extracted should be greater than

50%, indicating that the observed variables account for a significant percentage of the

total variation (Hair et al., 2006)

3.3.3 Tests used in CFA

This report, after conducting the rotation of the EFA factor, will proceed to perform

confirmatory factor analysis (CFA) according to the standards of the Akaike

Information Criterion (AIC) and Bayesian Information Criterion (BIC) AIC and BIC

are two criteria for selecting among nested statistical or econometric models The

formula for calculating AIC is AIC = -2Ln(likelihood) + 2k, where Ln(likelihood) is a

maximized likelihood criterion and k is the number of observed variables in the

regression BIC is an estimate of the posterior probability function of the model being

true under a Bayesian setup BIC 1s always larger than AIC, but when both values are

smaller, the model is considered more reliable

In addition to testing the Chi-Square < 5%, there are other criteria

for evaluation, including CMIN/df, GFI, TLI, CFl, and RMSEA The

model is considered to fit the market data if it receives GFl, TLI, CFI

> 0.8 (acceptable level), and a probability of RMSEA <= 0.05 is

considered very good Meeting these conditions implies that the

model is considered to be suitable for market data (Hu and Bentler,

1999)

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3.3.4 Correlation test

This study employs the Variance Inflation Factor (VIF) test to detect and address the

issue of multicollinearity If the VIF value exceeds 2, it may indicate the presence of

multicollinearity, and if the VIF exceeds 10, it is likely that multicollinearity has

occurred (Hair et al., 2006) Additionally, the Pearson correlation coefficient is

utilized to measure the level of correlation between variables The Pearson correlation

coefficient (r) ranges from -1 to +1 (with r being significant when p < 0.05)

Following the guidelines proposed by Evans (1996) for tnterpreting correlation based

on the absolute value of |r|, the correlation levels are as follows:

The residual normality test is used to ensure that the residuals (or errors) after

controlling for independent variables are normally distributed with constant variance

The test of linear trend is a method used to examine the relationship between

independent variables and the dependent variable in a linear fashion If this

relationship does not follow a linear pattern, a nonlinear model may be used as an

alternative The most common test for linear trend 1s the F-test, which compares the

non-linear hypothesis to the linear hypothesis If the non-linear hypothesis is rejected,

It suggests that the linear model is not appropriate and an alternative nonlinear model

should be used

Anova test (Analysis of Variance) is used to analyze differences between groups in a

dependent variable based on the independent variables Anova can be performed one-

way or two-way, depending on the number of independent variables under

consideration

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HO: there is no difference between demographic variables and digital transformation

decision variables

Ha: There 1s a difference between demographic variables and digital transformation

decision variables If P Value < alpha (5%), then reyect HO and accept Ha

CHAPTER 4: RESULTS 4.1 Statistics describing the observed sample

After collecting data from the survey, 144 votes were considered valid matching the

total number of votes surveyed Details of the characteristics of the survey participants

are presented in Table 1

Table 1: Statistics describing the observed sample

From Table 1, the team used Microsoft Excel software and Google Forms to sketch

the data through the diagrams (figures 5, 6, 7, 8)

In Figure 5, the total number of survey participants is 144 Among them, 73 women

participated accounting for 50.7% and 71 men participated accounting for 49.3%

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