The influence of electronic word of mouth characteristics on green cosmetics PURCHASE INTENTION: EVIDENCE FROM GENERATION Z CONSUMERS IN CAN THO CITY The influence of electronic word of mouth characteristics on green cosmetics PURCHASE INTENTION: EVIDENCE FROM GENERATION Z CONSUMERS IN CAN THO CITY
OVERALL OF THE THESIS
INTRODUCTION
Economic development inevitably leads to environmental vulnerability, making environmental protection essential in our daily lives Awareness of health, sustainability, and environmental hazards such as resource depletion, climate change, air pollution, and waste accumulation has risen significantly (Ghazali et al., 2017) In Vietnam, the government prioritizes economic growth while integrating environmental considerations, focusing on green production and consumption (X H Nguyen et al., 2024) Notably, on September 25, 2012, the Prime Minister approved Decision No 1393/QD-TTG, which established the "National Strategy on Green Growth for 2011-2020 and Vision to 2050," with a key objective of promoting green consumption and shopping.
Post-COVID-19, health and beauty care have surged in priority among Vietnamese consumers, reflecting a growing concern for well-being (X H Nguyen et al., 2024; Fernandes, 2023) This shift has led to heightened interest in green cosmetics, as both researchers and practitioners recognize their significance (Limbu, Pham, & Nguyen, 2022) The global natural personal care market was valued at approximately USD 20.28 billion in 2022, with projections to reach USD 23.42 billion by 2028 (Statista, 2024) Consequently, high-quality cosmetic products made from natural and organic ingredients are essential to satisfy the evolving needs of customers, making personal care an integral part of daily life for all genders.
In fact, according to a Nielsen report ("Global Trust in Advertising,"
In 2022, an estimated 57 to 60 million Vietnamese consumers engaged in online shopping, reflecting a significant shift towards the digital marketplace Notably, the average online shopping expenditure per Vietnamese individual ranged from $260 to $285 As traditional retail lacks the tactile experience of touching or smelling products, consumers increasingly depend on online reviews and information when making purchasing decisions, with 66% of global respondents and 63% of Gen Z expressing trust in consumer opinions shared online.
In 2007, it was noted that barriers to online shopping include perceived low quality compared to advertisements, the convenience of in-store purchases, and challenges in assessing product quality To address these issues, online retailers encourage customers to provide online reviews, also known as product evaluations (Chen & Jinhong, 2004) These reviews offer insights from consumers who have purchased and used the products, sharing their experiences, evaluations, and opinions (Park et al.).
In recent years, electronic word-of-mouth (eWOM) has emerged as a powerful marketing tool, significantly impacting consumer behavior According to the Digital 2021 report, Vietnam's population of 97.8 million includes approximately 68.17 million internet users, who spend an average of 6 hours and 47 minutes online daily Social media plays a crucial role in shaping consumer opinions and purchasing decisions, particularly among Generation Z The accessibility of product information through platforms like Facebook, YouTube, and TikTok highlights the influence of eWOM in Vietnam This research aims to explore how eWOM affects the purchasing intentions of Generation Z consumers regarding green cosmetics in Can Tho City, providing valuable insights into the relationship between digital communication and consumer behavior.
RESEARCH OBJECTIVES
1.2.1 General objective of the study
This study examines the impact of electronic word of mouth (eWOM) on the purchase intentions of Generation Z consumers for green cosmetics in Can Tho City, and offers practical recommendations to enhance the appeal of green cosmetics among this demographic.
1.2.2 Specific objectives of the study
This study has three specific objectives.
- Objective 1: Analysis of consumers' understanding of green cosmetics of Gen Z consumers in Can Tho City.
- Objective 2: Measure and evaluate the impact of electronic word- of-mouth characteristics on the intention to buy Green cosmetics ofGen Z consumers in Can Tho City.
Objective 3 aims to enhance the intention to purchase cosmetics by leveraging electronic word of mouth, ultimately improving business performance for companies in the green cosmetics sector in Can Tho City.
RESEARCH QUESTION(S)
Based on the specific objectives of the study, the study poses specific research question as follows:
1 How much does Generation Z consumers in Can Tho City understand about green cosmetic products?
2 How do these eWOM characteristics affect consumers’ buying intention of green cosmetics products in Can Tho City?
3 What recommendations are needed for sellers to strengthen their marketing strategy of green cosmetics in Can Tho City?
SCOPE OF RESEARCH
The research focuses on Can Tho city, encompassing five urban districts—Ninh Kieu, Cai Rang, Binh Thuy, O Mon, and Thot Not—and four rural districts: Phong Dien, Co Do, Vinh Thanh, and Thoi Lai.
The research was carried out from August 2024 to November 2024.
The data used to test the thesis's hypotheses came from an online survey conducted for Generation Z in Can Tho from October 1, 2024 to November 1, 2024.
Generation Z, aged 18 to 25, actively purchases and utilizes a variety of cosmetic products, including green cosmetics, bath essentials, hair care items, makeup, personal hygiene products, oral hygiene solutions, and manicure and pedicure supplies.
THESIS STRUCTURE
Chapter 1: Overall of the thesis
This chapter introduces the topic and presents the basic content of the topic such as research objectives, research question, scope of the study, and structure of the thesis.
LITERATURE REVIEW AND CONCEPTUAL MODEL
CONCEPTUAL MODEL
2.1.1 Electronic word of mouth (eWOM)
2.1.1.1 Definition of traditional word of mouth (WOM)
Arndt (1967) defined word-of-mouth (WOM) as the direct verbal communication between a receiver and a transmitter regarding a brand, product, or service, perceived as non-commercial WOM encompasses informal communications about the ownership, usage, or characteristics of goods and services, serving as a significant influence on consumer purchases (Arndt, 1967; Dichter, 1966; Westbrook, 1987) It plays a crucial role in shaping consumer opinions and decisions (Richins, 1983), with referrals often originating from family and friends (Luo et al., 2013) However, in today's fast-paced, innovative environment, traditional WOM has evolved, as more consumers turn to social media for information (Erkan & Evans, 2018; Ngo et al., 2024), leading to the rise of electronic word of mouth (eWOM).
2.1.1.2 Definition of electronic word of mouth (eWOM)
The Internet has significantly expanded consumers' ability to search for and share information before and after making online purchases, moving away from reliance solely on marketer-generated content (Matute et al., 2016; Nguyen et al., 2024) Consumers now access electronic word of mouth (eWOM) from a diverse range of individuals, not just friends and acquaintances, allowing them to gather insights from others who have experienced the products (Ratchford et al., 2001) eWOM encompasses both positive and negative opinions shared by consumers about a product or brand on digital platforms, reaching a broader audience (Nguyen et al., 2024; Pham et al., 2023) As a result, businesses increasingly utilize social networking as an effective channel for promoting eWOM and sharing information about their offerings (Erkan & Evans, 2018; Ngo et al., 2024).
Understanding the distinction between traditional word-of-mouth (WOM) and electronic word-of-mouth (eWOM) is essential Online consumer reviews are readily accessible and have existed for many years, highlighting the longevity of eWOM (Hennig-Thurau, Walsh, & Walsh, 2003) Furthermore, eWOM is spread through digital platforms, allowing information to rapidly reach a larger audience (King, Racherla).
Electronic word-of-mouth (eWOM) is more visible than traditional word-of-mouth (WOM) due to the internet's ability to display data such as message length and style However, the anonymity of eWOM, where information is shared between unknown parties, can undermine its credibility.
2.1.2 Definition of Cosmetics and Green cosmetics
According to the Ministry of Health's Circular 06/2011/TT-BYT, cosmetic products are defined as substances or preparations applied to external parts of the human body, including skin, hair, nails, lips, and oral mucosa, primarily for cleansing, enhancing appearance, and maintaining body condition These products encompass various categories such as hair care, skincare, bath, cleansing, perfumes, makeup, oral hygiene, and manicuring Their primary purposes include cleaning, perfuming, altering appearance, correcting body odors, and protecting the body.
Green products, as defined by Hsu, Chang, and Yansritakul (2017), encompass eco-friendly and sustainable characteristics, including durability, non-toxicity, use of recycled materials, and minimal packaging Additionally, McEachern and McClean (2002) emphasize that green cosmetics prioritize environmental responsibility, animal welfare, and the preservation of species.
Green cosmetics, often referred to as natural and organic cosmetics, utilize ingredients derived from nature, such as fruits, without the inclusion of harmful chemicals (Limbu et al., 2022) While both green and natural cosmetics share similar plant-based formulas and avoid synthetic additives (Csorba & Boglea, 2011), it is crucial to differentiate between the two categories (Shimul, Cheah, & Khan, 2022) In today's market, there is a growing emphasis on sustainable packaging and eco-labeling, making the use of green cosmetics not just a personal care choice but also a commitment to environmental protection (Y Lin, Yang, Hanifah, & Iqbal).
Green cosmetics have garnered significant interest from both researchers and industry professionals due to their long-term benefits, symbolizing health and environmental responsibility within the cosmetics sector.
Purchase intention refers to the possibility that consumers will plan or be willing to purchase a certain product or service in the future (Wu, Yeh, & Hsiao,
Purchase intention represents a crucial initial stage in the decision-making process for consumers, reflecting their willingness and capability to buy a specific product (Dodds, Monroe, & Grewal, 1991) Research indicates that a heightened purchase intention significantly increases the likelihood of actual purchases (Dodds et al., 1991; Wu et al., 2011) Furthermore, Wu et al (2011) suggest that purchase intention serves as a valuable metric for predicting consumer behavior.
Generation Z, consisting of individuals born between 1995 and 2010, is uniquely shaped by their experiences with technology from a young age, resulting in distinct values and behaviors (Ngo et al., 2024; Priporas et al., 2017) This generation is the most digitally connected, with a strong inclination towards novelty and active engagement on social media, which enhances their ability to adopt new ideas (Sun et al., 2022) Furthermore, Generation Z is noted for being more educated and sophisticated than previous cohorts (Tabassum et al., 2020).
Marketers face challenges in engaging Generation Z due to their unique behaviors, which differ significantly from those of previous generations like Y and X (Ismail et al., 2021) Adapting communication strategies to meet Generation Z's evolving purchasing habits is crucial Existing literature on electronic word-of-mouth (eWOM) has primarily focused on general consumer behavior, overlooking specific age groups Therefore, further research is needed to understand the influence of eWOM on Generation Z This study aims to explore the impact of eWOM on the purchase intentions of this generation.
2.1.5.1 Theory of Reasoned Action – TRA
The Theory of Reasoned Action (TRA), developed by Fishbein and Ajzen in 1975, provides a psychological framework for understanding decision-making based on individual attitudes and subjective norms Attitudes refer to a person's tendency to respond positively or negatively to a psychological object, while subjective norms involve an individual's perception of societal judgments regarding a specific behavior TRA has been widely applied in research to explore the connection between electronic word of mouth (eWOM) and consumer purchase intentions.
Figure 2.1: Theory of Reasoned Action Model
Much previous research has applied the TRA theory of Fishbein and Ajzen
(1975) and the Technology Acceptance Model (TAM) of Davis (1989) to analyze the impact of receiving information from a person (X H Nguyen et al.,
The Technology Acceptance Model (TAM) focuses mainly on information systems and individual computer usage, often neglecting social processes This limitation has been highlighted by researchers such as Sussman and Siegal, who emphasize the need for a broader understanding of technology acceptance beyond individual behaviors.
The Information Adoption Model (IAM) describes how individuals engage with information through computer-based communication, influencing their intentions and behaviors This framework, which draws from the Elaboration Likelihood Model (ELM) and the Technology Acceptance Model (TAM), identifies two types of messages that affect individuals: central and peripheral The IAM consists of four key elements: information usefulness, information adoption, source credibility (peripheral), and argument quality (central) It is particularly effective for examining electronic word-of-mouth (eWOM), providing valuable insights into computer-mediated communication Research indicates that the IAM is commonly utilized in eWOM studies, making it a robust model for analyzing the effects of eWOM on purchase intentions.
LITERATURE REVIEW
Jaini, Quoquab, Mohammad, and Hussin (2020) investigate the factors affecting green purchasing behavior (GPB) in the Malaysian cosmetics market, utilizing the value-belief-norm theory (VBN) and the elaboration likelihood model (ELM) as their theoretical framework Their research reveals that altruistic value, hedonic value, pro-environmental belief, and personal norm significantly influence GPB among Malaysian consumers Additionally, the study highlights the moderating role of electronic word-of-mouth (eWOM) in shaping GPB Employing partial least squares-structural equation modeling (PLS-SEM), the authors analyzed 318 valid responses gathered through online questionnaires, making this research noteworthy for introducing eWOM as a moderator within the VBN theory and uncovering new connections in the realm of green marketing.
Park et al (2007) highlighted the significant role of online consumer reviews in shaping purchase decisions and driving product sales, based on a study involving 352 college students, 98% of whom had prior online shopping experience Utilizing the elaboration likelihood model, the research examined how consumer involvement influences the effects of reviews, focusing on three independent variables: review quality (high vs low), review quantity (few vs moderate), and consumer involvement (high vs low), with purchasing intention as the dependent variable The study found that both the quality and quantity of reviews positively impact purchasing intentions, revealing that high-involvement consumers are influenced by both factors, while low-involvement consumers are primarily swayed by the quantity of reviews.
Matute et al (2016) investigated the impact of electronic word-of-mouth (eWOM) characteristics—quantity, quality, and credibility—on online repurchase intentions, with trust and perceived usefulness as mediators Conducted in Spain, the study utilized a quantitative approach through an online questionnaire, gathering 252 valid responses from internet users who had made online purchases The analysis, performed using partial least squares structural equation modeling (PLS-SEM), revealed significant findings: both eWOM quantity and quality positively affected repurchase intentions, while eWOM credibility enhanced trust in online sellers Additionally, all three eWOM characteristics positively influenced perceived usefulness, although only credibility and quality impacted trust in the vendor Ultimately, the study concludes that Spanish customers' intentions to repurchase online are significantly influenced by eWOM credibility, quantity, and quality.
Luo et al (2013) investigated how source credibility moderates the relationship between online recommendation factors and their credibility and adoption among 199 Chinese online consumers The study identified recommendation persuasiveness and completeness as independent variables, while recommendation credibility and adoption served as dependent variables Findings indicated that recommendation persuasiveness significantly influenced perceived credibility, whereas completeness did not have a notable effect Interestingly, the study revealed that source credibility negatively moderated the relationships between persuasiveness and credibility, as well as between credibility and adoption, but positively moderated the relationship between completeness and credibility.
Rani, Toni, and Shivaprasad (2022) examined the influence of electronic Word of Mouth (eWOM) on purchase intentions in India, focusing on website and source credibility as independent variables Their quantitative study utilized a structured questionnaire to gather data from online reviews related to electronic product purchases, receiving 574 responses from 1,700 potential participants For exploratory factor analysis (EFA), 357 responses were analyzed, while confirmatory factor analysis (CFA) and structural equation modeling (SEM) utilized the full 574 responses, processed using SPSS and AMOS software The findings revealed that Indian customers' purchase intentions on online retail websites are significantly affected by factors such as source credibility, source homophily, message credibility, message quality, website credibility, and receiver characteristics However, the study's limitation lies in its data collection method, as it relied solely on consumer-generated eWOM from the Internet Future research should explore comparisons across various sources and platforms of eWOM.
C Lin, Wu, and Chen (2013) also investigated the influence of electronic word-of-mouth (eWOM) on purchasing intention The study examines three independent variables: eWOM quality, eWOM quantity, and sender's expertise. The dependent variable is purchase intention, with product involvement and brand image serving as moderating variables Data analysis involves descriptive statistics using SPSS and structural equation modeling (SEM) using AMOS to assess relationships between variables Participants who have searched for online reviews before making a purchase were surveyed, and results showed that eWOM quality, quantity, and sender expertise positively influenced purchase intention Additionally, product involvement and brand image were found to moderate the relationship between eWOM and purchase intention This study offered new insights into the role of eWOM in shaping customer purchase decisions.
A study by Tabassum et al (2020) investigates the influence of narrative advertising and electronic word-of-mouth (eWOM) on Generation Z's purchasing intentions Utilizing data from 304 respondents in Pakistan and employing structural equation modeling (SEM) with AMOS 22.0, the research reveals that narrative advertising significantly surpasses eWOM in its effect on Generation Z's buying decisions Furthermore, the findings emphasize the necessity of recognizing persuasion knowledge in developing effective digital marketing strategies aimed at younger consumers.
Ngo et al (2024) aimed to investigate the impact of electronic word-of-mouth (eWOM) characteristics and consumer behavior on the purchase intentions of Generation Z through social media Utilizing a quantitative approach, the study surveyed 280 Vietnamese Generation Z individuals via a Likert scale questionnaire The findings revealed that information quality, information quantity, and information needs significantly affected the perceived usefulness of information Additionally, information quality, information needs, and attitudes toward information played a crucial role in information adoption Notably, information quality emerged as the most significant factor influencing both information usefulness and adoption The study concluded that information usefulness and adoption serve as partial mediators between the independent variables and purchase intentions.
A study by Chi & Nghiem (2018) explores how electronic word of mouth (eWOM) affects purchasing intentions among social media users in Can Tho City Utilizing the Information Adoption Model (IAM) and the Theory of Reasoned Action (TRA), the research focuses on information quality and consumer behavior Through quantitative methods, the researchers conducted face-to-face interviews, gathering 355 valid responses from social media users, and employed structural equation modeling (SEM) for analysis The findings reveal that purchasing intentions are significantly influenced by factors such as attitudes toward information, the need for information, credibility, usefulness, and the adoption of information.
Another study about green cosmetics was also conducted in Vietnam T.
T T Nguyen et al (2024) investigates the impact of electronic word of mouth(eWOM) on green cosmetics purchase intentions among young Vietnamese female consumers (Generation Z and Millennials) This study specifically explores electronic word-of-mouth (eWOM) as a factor influencing health concerns, environmental concerns, attitudes, subjective norms, perceived behavioral control, and purchasing intentions Additionally, it examines health and environmental concerns as influencers of attitude, as well as the impact of attitude, subjective norms, and perceived behavioral control on purchasing intentions Furthermore, it assesses the mediating effects of health concern, environmental concern, and attitude in the relationship between eWOM and purchasing intention With a sample of 500 participants, 456 responses were obtained and analyzed using a partial least squares structural equation modeling (PLS-SEM), revealing that eWOM directly influences purchase intention. Among the theory of planned behavior (TPB) factors, attitude was found to be a significant predictor of purchase intention than subjective norm, while perceived behavioral control did not have an effect The research also highlighted the indirect effects of eWOM on purchase intention through the mediation of health concern, environmental concern, and attitude However, this research did not examine the impact of different platforms on eWOM, content type, and sources In other words, it did not explore factors that may affect eWOM, which could have significant practical implications for marketers and managers.
In recent decades, electronic word-of-mouth (eWOM) has garnered significant interest from academics and researchers, focusing on its impact on consumer behavior and purchase intentions Key characteristics of eWOM, particularly eWOM Quantity and eWOM Quality, have been extensively analyzed in numerous studies, including notable works by Park et al (2007) and Matute et al.
Recent studies, including those by Luo et al (2013) and Ngo et al (2024), highlight the significance of eWOM credibility as a mediating variable in consumer behavior As the topic of green consumption gains traction, there remains a notable lack of research in specific areas, particularly concerning green cosmetics.
T T T Nguyen et al (2024), which does not heavily focus on eWOM.
The study titled “The Influence of Electric Word of Mouth Characteristics on Green Cosmetics Purchase Intention: Evidence from Generation Z Consumers in Can Tho City” offers a fresh perspective by focusing on a specific geographic area and reassessing previous research findings This research provides a clearer understanding of how Generation Z in Can Tho City intends to purchase green cosmetics, highlighting the multifaceted impact of eWOM characteristics beyond their direct influence.
RESEARCH METHODOLOGY
METHOD OF SAMPLING AND DATA COLLECTION
Sample size depends on the analysis method - in this study, the author uses the EFA method combined with regression analysis in SPSS so a large sample size is required.
F Hair Jr et al (2014) recommend a minimum sample size of 50 for conducting Exploratory Factor Analysis (EFA), with an ideal sample size of 100 or more Additionally, they emphasize a variable observation ratio of 5:1, indicating that each variable should be supported by at least five observations.
Where m is the number of observed variables.
Use the formula to calculate the amount of sample needed for this thesis as follows:
According to Tabachnick and Fidell (1996), the sample used for regression analysis with good results can reach the sample size according to the formula:
Where N is the sample size, m is the number of observed variables in the model.
Thus, the formula to calculate the minimum number of samples to collect to be able to use the multiple linear regression analysis method is as follows:
This thesis identifies three independent variables, determining a minimum sample size of 74 based on the sample size formula To ensure robust results, the author aims to collect at least 100 observations, exceeding the minimum requirement.
150 so as to the data analysis can run smoothly.
The sample was obtained through a non-probability convenience sampling method, allowing the author to select easily accessible survey subjects for the study.
Non-probability sampling may lead to a lack of accuracy in the selected sample, as it may not adequately represent the entire population To address this issue, the author implemented surveys across various days of the week, at different times of the day, and in diverse locations to ensure a more comprehensive representation of subjects.
Primary data were gathered from Generation Z individuals aged 16 to 28 residing in Can Tho City, focusing on their purchasing and usage habits of green cosmetics, which include skincare, bath, hair care, makeup, personal hygiene, oral hygiene, and manicure and pedicure products.
Data collection involved a self-administered questionnaire distributed both in person and online Printed questionnaires were handed out to potential participants at a coffee shop, while an online version was created using Google Docs The link to the online survey was shared in Facebook groups popular among young people and through the researchers' personal networks.
A total of 164 valid questionnaires were completed in a survey conducted in Vietnamese, which was divided into three parts The first part screened respondents to ensure they were Generation Z individuals from Can Tho City who had encountered online comments The second part collected basic personal information from the participants Finally, the third part featured questions designed to evaluate participants' levels of agreement on a 5-point Likert scale, ranging from "Strongly disagree" (1) to "Strongly agree" (5).
MEASUREMENT VARIABLE
The primary questionnaire includes two types of variables: the dependent variable and the independent variable Participants rated their level of agreement with various statements using a 5-point Likert scale, which offered options ranging from (1) "Strongly disagree" to (2) "Disagree."
(3) "neutral", (4) "agree", and (5) "strongly agree" According to Nguyen
(2011), this is the most widely used scale for measuring research concepts in business When conducting the survey, use a 5-point Likert scale.We will use the following formula:
The independent variables are factors that influence the intention to purchase green cosmetics, such as (1) eWOM Quantity (SL), (2) eWOM Quality (CL), and (3) eWOM Credibility (EC).
The eWOM Quantity variable consists of three items designed using the Park et al (2007), and Matute et al (2016) scales Following Park et al (2007),
The significant volume of online reviews and comments regarding green cosmetics suggests a growing popularity and positive reputation for these products, indicating strong sales performance.
The eWOM Quality variable is assessed through five specific items based on the scales developed by Park et al (2007) and Matute et al (2016) Key criteria include the presence of adequate reasoning behind each online review or comment for green cosmetics, as well as the clarity and comprehensibility of these reviews.
Online reviews and comments about green cosmetics are clear, objective, and generally of high quality.
The eWOM Credibility variable is measured based on the scale of Smith and Vogt (1995), and Luo et al (2013), 5 iteams have been designed Including,
“I think green cosmetics online review/comment is believable”, “I think that green cosmetics online review/comment is factual”, and “I think online review/comment about green cosmetics information are credible”.
Table 3.1: Mesurement scales independent variable
Factor Coding Items Soured eWOM
Quantity SL1 There are a large number of online reviews/comments in Internet about green cosmetics indicates the product's popularity.
Adapted from Park et al (2007) and Matute et al (2016)
SL2 The volume of online reviews/comments on green cosmetics is large, inferring that the product has good sales.
SL3 A great number of online reviews/comments on green cosmetics, indicating a positive reputation. eWOM
CL1 Each green cosmetics online review/comment has sufficient reasons supporting the opinions.
Adapted from Park et al (2007) and Matute et al (2016)
CL2 Each green cosmetics online review/comment is understandable.
CL3 Each green cosmetics online review/comment is clear.
CL4 Each green cosmetics online review/comment is objective.
CL5 In general, the quality of each green cosmetics online review/comment is high. eWOM
EC1 I think green cosmetics online reviews/comments is believable.
Adapted from Smith and Vogt
EC2 I think that green cosmetics online review/comment is factual.
EC3 I think online reviews/comments about green cosmetics information are credible.
Source: Author compiled and proposed (2024)
This study aims to explore Generation Z's purchasing intentions for green cosmetics in Can Tho City, utilizing a dependent variable approach The author has developed four observed variables based on the scales established by Baker and Churchill Jr (1977) and C Lin et al (2013) to facilitate this investigation.
Table 3.2: Mesurement scales dependent variable
PI1 After reading green cosmetics online reviews/comments, it makes me desire to purchase green cosmetic products.
Adapted from Baker and Churchill Jr
(1977), and C. Lin et al (2013) PI2 I will consider buying green cosmetic products as soon as I read online reviews/comments about green cosmetics.
PI3 I intend to try green cosmetic products discussed in the online reviews/comments.
PI4 In the future, I intend to actively seek out the green cosmetic products discussed in the online reviews/comments to purchase.
Source: Author compiled and proposed (2024)
OVERVIEW OF THE RESEARCH AREA
OVERVIEW OF CAN THO CITY
Can Tho City, located on the bank of the Hau River, spans 1,438.96 km², representing 3.49% of the total area It comprises five urban districts—Ninh Kieu, Cai Rang, Binh Thuy, O Mon, and Thot Not—and four rural districts: Phong Dien, Co Do, Vinh Thanh, and Thoi Lai The city shares its northern border with An Giang province, its southern border with Hau Giang province, and is bordered by Kien Giang province to the west and Dong Thap and Vinh Long provinces to the east Positioned at the heart of the Mekong Delta, Can Tho City plays a vital role in the regional trade axis, which includes the Long Xuyen quadrangle, the Ca Mau peninsula, Dong Thap Muoi, and Ho Chi Minh City.
Can Tho is currently one of the five centrally-controlled cities in Vietnam.
Can Tho, the most vibrant and populous city in the Mekong Delta, stands as the economic, cultural, and educational hub of the region Recognized as a Type I urban area, it serves as a central city both regionally and nationally, highlighting its significance in healthcare, commerce, and social development.
This demonstrates that Can Tho City, with its exceptionally favorable geographical location, has numerous advantages and is ideal for corporate development.
Can Tho, situated in the central Mekong Delta's mid-lower regions, features a flat and navigable terrain that is conducive to trade This strategic location provides a solid foundation for businesses to diversify their offerings, including the growing market for green cosmetics.
In 2022, Can Tho's population reached 1,252,350, highlighting a significant customer base for the green cosmetics industry This dense population presents vast potential for growth and opportunities within the market.
Source: Gia Bao, & Quach Hung (2020)
Figure 4.1: GRDP growth of Can Tho City (2015-2020)
From 2016 to 2020, Can Tho's social investment capital surpassed 250.927 billion VND, achieving an average annual growth rate of 6.45%, significantly higher than in previous years The city successfully attracted 64 non-state investment projects amounting to 124,000 billion VND through targeted investment promotion efforts Additionally, with support from international organizations, Can Tho secured official development assistance (ODA) for vital sectors such as transportation, urban development, and healthcare Over this five-year period, 7,115 new enterprises were established, contributing to a total of 9,300 active businesses in the city, with an average registered capital of 11 billion VND per enterprise Notably, Can Tho accounts for 26% of all enterprises in the Mekong Delta region and is currently executing 104 domestic investment projects valued at approximately 115,000 billion VND.
Can Tho City has experienced robust economic growth, particularly in commerce, services, and tourism In 2023, the city's economic growth rate (GRDP) rose by 5.75% compared to 2022, resulting in a total economic scale that surpassed VND 118 trillion Additionally, the per capita income reached approximately VND 94.12 million annually, while total state budget revenue also saw significant increases.
VND 11 trillion, while total social investment capital distribution is expected to exceed VND 31 trillion, up 14.41% from 2022 The city's banking system has grown steadily, with 49 credit institution branches and 7 Credit Funds in operation Total capital mobilization rose to VND 115 trillion (up 9.02% from the end of 2022), and total outstanding loans are expected to reach VND 154 trillion (up 8.58% from the end of 2022).
Can Tho is a key commercial center for the Mekong Delta and surrounding provinces, featuring a variety of goods and services The city hosts several large supermarkets from multinational corporations, such as Go!, MM Mega Market, and Lotte Mart.
In the first nine months of 2024, total retail sales of consumer goods and services in Vietnam reached an estimated VND 98,052.30 billion, marking an 11.93% increase compared to the same period last year Specifically, retail sales of goods amounted to VND 71,119.77 billion, reflecting an 11.82% rise Additionally, the construction industry's production value is estimated at VND 12,060.12 billion, up 8.47% year-on-year The ongoing upgrades and expansions of traffic routes not only enhance connectivity but also facilitate convenient transportation for residents, paving the way for local economic development.
In September 2024, there was a notable increase in new business registrations, with an estimated 146 enterprises registered, reflecting a 2.1% rise from the previous month Additionally, the number of voluntarily dissolved enterprises decreased significantly, with only 11 dissolutions reported, marking a 47.62% decline The temporary suspension of operations also saw a reduction, with 24 enterprises temporarily suspended, down 47.83% Furthermore, the re-registration of enterprises fell to 20, representing a 25.93% decrease compared to the prior month.
To summarize, the production and commercial scenario in Can Tho City in
In the first nine months of 2024, the economy has shown significant recovery and growth across various sectors, with the industrial production index (IIP) rising by 8.02% compared to the previous year The monetary market has seen increases in credit, mobilized capital, and outstanding loans, alleviating challenges for businesses Total retail sales of consumer goods and services surged by 11.93% year-on-year, reflecting a vibrant trade and service sector driven by heightened market demand Additionally, tourism activities have rebounded swiftly, resulting in a notable rise in accommodation and food service revenues, while advancements in culture and education continue, ensuring social security remains intact.
To effectively achieve the economic development goals for the City in 2024, it is crucial for all sectors to prioritize the swift implementation and full disbursement of public investment capital while actively mobilizing private capital for development Key strategies include promoting consumption and enhancing the domestic market through favorable policies such as credit incentives, tax reductions, and trade promotions Additionally, it is essential to strengthen market and price management measures in the final months of the year to ensure a balanced supply and demand of goods.
The sustained economic growth rate has led to positive expansion and development in businesses, which in turn influences consumer perceptions and behaviors towards green cosmetics, fostering greater acceptance of their higher prices and premium quality.
According to the socio-economic report for the third quarter and the first nine months of 2024, Can Tho City is actively supporting businesses and workers through various initiatives These include face-to-face and online counseling, promoting job opportunities via mass media and social networks, organizing job fairs, and conducting mobile job trading sessions in schools and local communities.
The implementation of the program has significantly advanced the social construction movement in education To enhance the socialization of education, the Chairman of the City People's Committee has announced the Time Plan for the 2024-2025 school year.
RESULTS AND DISCUSSION
DESCRIPTION OF RESPONDENT INFORMATION
Table 5.1 describes the demographic information of respondents including age, gender, education, monthly income, occupation, and accommodation.
Table 5.1: Demographic information of respondents
Characteristic Frequency Percent (%) Demographic Profile: Education
Source: SPSS data processing results, 2024
Source: The results of processing survey data in 2024
The study received 164 responses, revealing a significant gender disparity among participants, with 36.6% male and 63.4% female respondents Specifically, 104 respondents were female compared to 60 male respondents, highlighting a notable gender gap Utilizing a non-probability convenience sampling method, the research indicates that women demonstrate a greater interest in cosmetics than men, likely due to subjective factors that lead men to use fewer cosmetic products Furthermore, women are more aware of green cosmetics, as they are generally more inclined to enhance their appearance through daily makeup and skincare routines, resulting in higher levels of knowledge and interest in the cosmetics industry.
Age 14-16 Age 17-19 Age 20-22 Age 23-25 Age 26-28
Source: The results of processing survey data in 2024
A recent survey of Generation Z reveals that 59.8% of respondents are aged 20-23, with only 3% falling between 14-16 years old The second largest age group is 17-19, comprising 20.7%, followed by those aged 26-28 at 9.1%, and 23-25 at 7.3% These young consumers demonstrate a strong interest in beauty and cosmetics, with a report by Q&Me indicating that 60% of individuals aged 16-22 use cosmetics regularly for school and work, further validating the survey findings.
The survey findings indicate that Ninh Kieu District has the highest representation, comprising 53.7% of participants, followed by Cai Rang and O Mon Districts, each at 14% Binh Thuy District accounts for 7.3%, while Phong Dien District represents 5.5% The districts of Co Do, Thot Not, Vinh Thanh, and Thoi Lai collectively make up the smallest share at 5.4% Consequently, the focus of the study is primarily on Ninh Kieu, Cai Rang, and O Mon districts due to time constraints.
9% relatively high population density In addition, green cosmetic stores are also concentrated in these districts such as Watson, Hasaki, and so on.
High school or below Intermediate
Source: The results of processing survey data in 2024
The survey indicates that a significant 76.2% of respondents hold a university degree, reflecting the educational aspirations of Gen Z, who are at an ideal age for higher education Additionally, 17.1% of participants are in high school or below, while 4.3% possess a college degree, and 1.2% have postgraduate or intermediate qualifications The majority of respondents are young and well-educated, with the survey primarily conducted in Ninh Kieu district, Can Tho city, where urban residents tend to have higher education levels This educational background is crucial as it enhances consumers' understanding of the benefits of environmentally friendly products.
Student Office worker Freelancer Business Cadres, Civil servants
Source: The results of processing survey data in 2024
The survey reveals a diverse range of occupations among respondents, with students making up a significant 75% of the total, reflecting that Generation Z is primarily in their formative educational and career stages as of 2024 This aligns with Q&Me's "Vietnam Cosmetics Trend 2020" report, which highlights the prevalence of students aged 16 and older Following students, office workers represent 7.9% of respondents, while freelancers account for 7.3% Business owners, civil servants, and other occupations collectively comprise the smallest share, totaling 9.8% of the survey participants.
5.1.6 Monthly income of the respondents
Source: The results of processing survey data in 2024
The survey revealed that 50% of respondents earn less than 3 million VND per month, primarily consisting of young individuals and students who rely on family support or lack stable employment The second largest group, accounting for 21.3%, earns between 3 to under 5 million VND, mainly comprising office workers with stable jobs Respondents earning between 5 million to 7 million VND make up 12.2% of the sample, while those earning from 7 million to 9 million VND and above 9 million VND represent 9.1% and 7.3%, respectively Higher income respondents typically work in business or other professional fields, indicating a correlation between income, age, and occupation among the participants.
OVERVIEW OF GREEN COSMETICS MARKET IN CAN THO CITY
5.2.1 Analysis of consumer perception of green cosmetics in Can Tho City
With the question “Below are some brand of green cosmetic products did you known before?”, respondents' answers are listed as follows:
Source: The results of processing survey data in 2024
Figure 5.6: Understanding of green cosmetics
The research indicates that 54.9% of respondents are familiar with green cosmetic products, highlighting their popularity among consumers Additionally, 39.6% have some awareness of green cosmetics, suggesting they recognize and have heard of various brands Conversely, 5.5% of participants reported not knowing any green cosmetics brands, likely due to a lack of usage despite having heard about them.
The responses to the question "In your opinion, what are the following characteristics of green cosmetics?" are listed as follows:
Table 5.2: Characteristics of green cosmetics
Use natural ingredients from fruits and plants 113 68.9
Does not contain toxic chemicals 112 68.3
Do not test products on animals 68 41.5
Safe for pregnant, nursing women and children in puberty
Source: The results of processing survey data in 2024
A survey revealed that 83.5% of respondents prefer natural and organic cosmetics, with 113 individuals recognizing green cosmetics as those made from natural ingredients like fruits and plants However, only 41.5% are aware of the importance of cruelty-free practices, indicating a gap in knowledge regarding the ethical aspects of green cosmetics The processing of animal carcasses can introduce harmful chemicals into the environment, underscoring the need for consumer awareness While respondents generally understand that green cosmetics are safe for pregnant women, nursing mothers, and children, many are still unaware that these products are not tested on animals, highlighting the necessity for better education on the full spectrum of green cosmetic benefits.
With the question “In your opinion, what are the benefits of green cosmetics?”, respondents' answers are listed as follows:
Table 5.3: Benefits of green cosmetics
Suitable for all skin types 74 45.1
Source: The results of processing survey data in 2024
A significant majority of survey participants recognize the key benefits of green cosmetics, with over 50% approval for their health safety (90.9%), environmental friendliness (78.7%), effectiveness and healthiness (62.2%), and non-irritating properties (51.2%) However, only 45.1% of respondents (74 individuals) believe that green cosmetics are suitable for all skin types, indicating a gap in awareness that these gentle products, made from fruit and plant-based ingredients, can indeed be appropriate for every skin type.
5.2.2 Analysis of buying green cosmetics in Can Tho City
5.2.2.1 Frequency of purchasing green cosmetics
Table 5.4: Frequency of purchasing green cosmetics
Source: SPSS data processing results, 2024
The shopping frequency of Generation Z consumers in the green cosmetics sector reveals that 74.4% make purchases less than twice a month, indicating a preference for infrequent shopping Following this, 19.5% of respondents shop 2-3 times a month, while only 4.3% purchase 4-5 times a month A mere 1.8% reported shopping more than five times monthly, highlighting a trend towards less frequent buying behavior among this demographic.
5.2.2.2 Average spending per green cosmetics purchase
Table 5.5: Average spending per green cosmetics purchase
Source: SPSS data processing results, 2024
Table 5.5 reveals that the majority of respondents, accounting for 53.7%, are inclined to purchase green cosmetics when spending less than 500,000 VND, while 36% are willing to spend between 500,000 and 1 million VND This spending pattern aligns with the age demographic of the respondents, primarily aged 16 to 22, reflecting their income levels and preferences in the green cosmetics market.
5.2.2.3 Online channel to purchase green cosmetics
Source: The results of processing survey data in 2024
Figure 5.7: Online channel to purchase green cosmetics
According to Figure 4.5, Shopee and TikTok Shop dominate the market for purchasing green cosmetics, with user rates of 90.2% and 61%, respectively In contrast, other platforms such as Websites, Lazada, and Facebook show significantly lower engagement, at 25%, 22.6%, and 17.7% Instagram and Tiki follow with 9.8% and 8.5%, respectively Overall, Shopee and TikTok Shop are the leading choices for consumers in the online shopping space, while alternative channels remain less favored.
5.2.2.4 Consideration when purchase green cosmetics
Table 5.6: Consideration when purchase green cosmetics
Source: SPSS data processing results, 2024
A recent survey exploring consumer preferences for green cosmetics revealed that Brand and Ingredient are the top considerations, each accounting for 25.5% of responses, while Price follows closely at 25.2% In contrast, factors like Design, Packing, and Eco-friendliness received significantly less attention, with only 9.2% and 15.6% of respondents prioritizing them This indicates that Generation Z in Can Tho city shows limited interest in environmentally friendly products Consequently, further research into the impact of electronic word-of-mouth (eWOM) on the intention to purchase green cosmetics is essential.
DESCRIPTIVE STATISTICS OF VARIABLES IN THE STUDY 47
Level of agreement with the statement
There are a large number of online reviews/comments in Internet about green cosmetics indicates the product's popularity.
The volume of online reviews/comments on green cosmetics is large, inferring that the product has good sales.
A great number of online reviews/comments on green cosmetics, 4 12 42 72 34 indicating a positive reputation 2.4% 7.3% 25.6% 43.9% 20.7% eWOM Quality
Each green cosmetics online review/comment has sufficient reasons supporting the opinions.
Each green cosmetics online review/comment is understandable.
Level of agreement with the statement
Each green cosmetics online review/comment is clear.
Each green cosmetics online review/comment is objective.
In general, the quality of each green cosmetics online review/comment is high.
I think green cosmetics online review/comment is believable.
I think that green cosmetics online reviews/comments is factual.
I think online reviews/comments about green cosmetics information are credible.
After reading green cosmetics online reviews/comments, it makes me desire to purchase green cosmetic products.
I will consider buying green cosmetic products as soon as I read online reviews/comments about green cosmetics.
I intend to try green cosmetic products discussed in the online reviews/comments.
Level of agreement with the statement
In the future, I intend to actively seek out the green cosmetic products discussed in the online reviews/comments to purchase.
Source: SPSS data processing results, 2024
Table 5.7 presents respondents' insights on eWOM Quantity, eWOM Quality, eWOM Credibility, and their intention to purchase green cosmetics, highlighting key findings across these dimensions.
The prevalence of online reviews and comments about green cosmetics reflects their growing popularity, with 57.3% of respondents agreeing that such feedback influences purchasing intentions Notably, only 7.4% of participants expressed strong disagreement or disagreement, highlighting the positive perception of green cosmetics in the market.
A significant portion of respondents, 44.5%, agreed that the high volume of online reviews and comments on green cosmetics suggests strong sales performance, with an additional 22.6% expressing strong agreement among the 37 participants surveyed.
A significant portion of online reviews and comments on green cosmetics reflects a positive reputation, with 43.9% of respondents expressing agreement Additionally, 25.6% of participants chose a neutral stance, while only 2.4% strongly disagreed and 7.3% disagreed Overall, the high level of agreement highlights the favorable perception of green cosmetics among consumers.
In summary, the analysis of eWOM Quantity indicates that a substantial volume of electronic word-of-mouth (eWOM) for green cosmetics, with response rates fluctuating between 43.9% and 57.3%, is perceived by consumers as a key factor in enhancing the product's popularity and reputation, ultimately suggesting strong sales potential.
A significant majority of respondents, 61.6%, either strongly agree or agree that each green cosmetics online review or comment is backed by sufficient reasons In contrast, only 12.2% of participants disagree with this assertion, while 26.2% remain neutral This data indicates that a notable portion of individuals is concerned about the credibility of online reviews and comments, suggesting that some may either not engage with them or lack confidence in their validity.
A significant 40.9% of participants find green cosmetics online reviews understandable, with an additional 18.9% expressing strong agreement While 26.2% remain neutral, only 11% disagree and 3% strongly disagree, indicating that the majority perceive the clarity of these reviews as somewhat important.
The statement "Each green cosmetics online review/comment is clear" reflects the perceptions of respondents, with 39.6% choosing a neutral stance Meanwhile, 28.7% agreed and 15.2% strongly agreed, while 11% disagreed and 5.5% strongly disagreed This data suggests that online reviews and comments on green cosmetics are largely perceived as ineffective.
A recent survey revealed that 34.8% of respondents view the statement "Each green cosmetics online review/comment is objective" as neutral Meanwhile, 29.9% agreed, and 15.2% strongly agreed, indicating a belief in the objectivity of these reviews However, 15.9% disagreed, and 4.3% strongly disagreed, suggesting that many still question the effectiveness of online reviews and comments in accurately representing green cosmetics.
The overall perception of online reviews for green cosmetics is mixed, with 35.4% of participants remaining neutral, 31.1% agreeing, and only 18.3% strongly agreeing that the quality is high Conversely, 11.6% disagreed and 3.7% strongly disagreed, indicating that most participants are skeptical about the quality of these reviews.
In brief, in terms of eWOM Quality, the data reveals that eWOM Quality increases when the eWOM has sufficient reasons to support the opinions and understandable.
A significant portion of respondents, 42.1%, expressed a neutral stance on the believability of online reviews for green cosmetics, while 33.5% agreed and 12.8% strongly agreed Conversely, 10.4% disagreed, and only 1.2% strongly disagreed Overall, these findings suggest that online reviews and comments regarding green cosmetics are generally perceived as credible, despite some skepticism.
The statement “I think that green cosmetics online review/comment is factual”.
A significant 49.4% of participants agree, and 13.4% strongly agree that online reviews and comments about green cosmetics are essential, while 29.9% remain neutral In contrast, only 1.8% strongly disagree and 5.5% disagree, indicating that the majority of respondents value factual information in online reviews of green cosmetics.
A survey revealed that only 34.8% of respondents agree that online reviews about green cosmetics are credible, while 39.6% remain neutral Additionally, 10.4% disagreed, and a mere 1.2% strongly disagreed, indicating that the majority of participants do not perceive online reviews and comments regarding green cosmetics as trustworthy.
In summary, in terms of eWOM Credibility, respondents are more concerned about eWOM Credibility when they intend to buy green cosmetics since it is factual.
The survey revealed that over 40% of respondents expressed strong agreement regarding their purchase intentions, indicating a positive trend towards buying green cosmetics after reading reviews and comments.
5.3 THE INFLUENCE OF EWOM CHARACTERISTICS ON GENERATION Z’S GREEN COSMETICS PURCHASE INTENTION IN CAN THO CITY
Electronic word-of-mouth factors affecting consumers' intention to buy green cosmetics in Can Tho City are measured by the 5-level Likert scale, with the following meanings:
Table 5.8: Mean of all variables of conceptual framework
Deviation Mean Classification level Coding Perceived variable eWOM Quantity
SL1 There are a large number of online reviews/comments in Internet about green cosmetics indicates the product's popularity.
SL2 The volume of online reviews/comments on green cosmetics is large, inferring that the product has good sales.
SL3 A great number of online reviews/comments on green cosmetics, indicating a positive reputation.
Deviation level Coding Perceived variable eWOM Quality
CL1 Each green cosmetics online review/comment has sufficient reasons supporting the opinions.
CL2 Each green cosmetics online review/comment is understandable.
CL3 Each green cosmetics online review/comment is clear.
CL4 Each green cosmetics online review/comment is objective.
CL5 In general, the quality of each green cosmetics online review/comment is high.
EC1 I think green cosmetics online review/comment is believable.
EC2 I think that green cosmetics online review/comment is factual.
EC3 I think online review/comment about green cosmetics information are credible.
PI1 After reading green cosmetics online reviews/comments, it makes me desire to purchase green cosmetic products.
PI2 I will consider buying green cosmetic products as soon as I read online reviews/comments about green cosmetics.
PI3 I intend to try green cosmetic products discussed in the online reviews/comments.
Deviation Mean Classification level Coding Perceived variable
PI4 In the future, I intend to actively seek out the green cosmetic products discussed in the online reviews/comments to purchase.
Source: SPSS data processing results, 2024
The eWOM Quality factor group, comprising three variables (SL1, SL2, SL3), is rated positively, with SL1 achieving the highest mean score of 3.91 This indicates that consumers are attracted to green cosmetic products that have a significant number of online reviews and comments, are widely recognized, and demonstrate strong sales performance.
SCALE RELIABILITY
The research model identifies four key factors: eWOM Quality (SL), eWOM Quality (CL), eWOM Credibility (EC), and Purchase Intention (PI) To ensure reliability, the scales are assessed using the Cronbach's Alpha coefficient, with initial evaluation results detailed below.
Observed variables Corrected Item – Total
Correlation Cronbach’s Alpha if Item
Deleted eWOM Quantity (SL) Cronbach’s Alpha = 0.844
SL3 0.665 0.825 eWOM Quality (CL) Cronbach’s Alpha = 0.870
Observed variables Corrected Item – Total
Correlation Cronbach’s Alpha if Item
CL5 0.693 0.843 eWOM Credibility (EC) Cronbach’s Alpha = 0.878
Purchase Intention (PI) Cronbach’s Alpha = 0.854
Source: SPSS data processing results, 2024
Table 5.9 presents the Cronbach's Alpha values for eWOM Quality, which are 0.844, 0.870, and eWOM Credibility at 0.878 According to Nunnally (1994), a Cronbach's Alpha coefficient above 0.7 indicates strong reliability The lowest Corrected Item-Total Correlation is 0.626, exceeding the 0.3 threshold, confirming that the eWOM scale meets reliability standards for factor analysis (EFA) Additionally, the intention to purchase green cosmetics is assessed through three observed variables, yielding a Cronbach's Alpha of 0.854, with all Corrected Item-Total Correlations above 0.3, ensuring the scale's reliability for subsequent factor analysis.
EXPLORATORY FACTOR ANALYSIS
5.5.1 Exploratory Factor Analysis (EFA) with a scale measuring the component factors of electronic word-of-mouth.
Table 5 10: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.891
Bartlett's Test of Sphericity df 55
Source: SPSS data processing results, 2024
The analysis indicates a KMO coefficient of 0.891, which falls within the acceptable range of 0.5 to 1, confirming the suitability of exploratory factor analysis Additionally, Bartlett's test reveals an approximate Chi-Square value of 1052.800 with a significance level of 0.000, demonstrating a significant correlation among the observed variables.
Initial Eigenvalues Extraction Sums of Squared
Source: SPSS data processing results, 2024
Eigenvalues greater than 1 indicate that the extracted factors effectively summarize the information, with a cumulative eigenvalue of variance of 73.174%, surpassing the 50% threshold This demonstrates a significant relationship between the original criteria and the extracted factors, confirming that the factor analysis results meet the necessary requirements for exploratory factor analysis.
The factor analysis was performed by Principal Components method and Varimax rotation The results are processed as follows:
Table 5.12: EFA result for group of independent variables
Source: SPSS data processing results, 2024
The rotation matrix indicates that all factor loadings are above 0.3, with the majority exceeding 0.7 and some reaching as high as 0.8 The item with the lowest loading factor is 0.673.
- SL3, and items having the largest factor loading is 0.880 – SL1.
Three distinct groups were identified, each representing a factor influencing purchasing intention Furthermore, no observed variable from one group was derived from another, demonstrating the scale's strong statistical significance.
5.5.2 Exploratory factor analysis (EFA) with a scale measuring the component factors of the intention to purchase green cosmetics
Table 5.13: EFA result for dependence variable
Source: SPSS data processing results, 2024
After the Cronbach’s Alpha credibility test, the dependent variable (Purchase green cosmetic intention) will be included in the EFA analysis There are four observations included in this EFA analysis.
The dependent variable demonstrates a KMO coefficient of 0.819, indicating its suitability for factor analysis With a Bartlett's Sig of 0.000, which is below the 0.05 threshold, the four observed variables related to the intention to purchase green cosmetics are significantly correlated Furthermore, the extracted variance percentage of 69.624% exceeds the 50% mark, suggesting that these factors explain a substantial portion of the data variation The Eigenvalues of 2.785, being greater than 1, confirm that the extracted factors effectively summarize the information Notably, all observed dependent variables exhibit factor loadings above 0.7, with PI3 recording the highest loading at 0.865 and the lowest at 0.782.
PEARSON CORRELATION ANALYSIS BETWEEN EWOM
Before performing hypothesis analysis, it is crucial to confirm a linear relationship between the independent and dependent variables In this study, the Pearson correlation coefficient matrix was utilized to assess the linear relationships among the independent and dependent variables.
The factor variables in the study are summarized as follows:
PI = MEAN (PI1,PI2,PI3,PI4)
SL= MEAN (SL1,SL2,SL3)
CL= MEAN (CL1,CL2,CL3,CL4,CL5)
EC= MEAN (EC1,EC2,EC3)
Table 5.14 reveals a significant correlation between eWOM Quantity, eWOM Quality, eWOM Credibility, and Purchase Intention, all at the 0.01 significance level The independent variables—eWOM Quantity, eWOM Quality, and eWOM Credibility—exhibit a positive relationship with Purchase Intention, evidenced by their Sig coefficients being less than 0.05 Notably, eWOM Credibility has the strongest correlation with Purchase Intention, displaying a coefficient of r = 0.647 (p < 0.01), followed by eWOM Quantity and eWOM Quality with coefficients of 0.620 and 0.610 (p < 0.01), respectively These findings suggest that these three characteristics of electronic word-of-mouth are effective in explaining the intention to purchase green cosmetics.
** Correlation is significant at the 0.01 level (2-tailed).
Source: SPSS data processing results, 2024
REGRESSION ANALYSIS
Table 5.15: Multiple-linear regression model summary
Error Beta t Sig Tolerance VIF
Source: SPSS data processing results, 2024
Check the fit of the model
The Sig value of the F test in the ANOVA table has the effect of testing the suitability of the regression model From the analysis results, the Sig.=0.000
The independent variables significantly influence the dependent variable with 95% confidence, indicating that the linear regression model aligns well with the data Consequently, the formulated linear regression model is deemed appropriate for the entire dataset.
The R² and Adjusted R² values are essential for evaluating the interpretability of a model, with a maximum R² value of 1 As the number of independent variables in the model increases, R² tends to rise; therefore, Adjusted R² is utilized to prevent misleading interpretations.
The author's research model, which includes only three independent variables, will utilize the coefficient R² for result analysis Despite concerns about R² being too high with numerous independent variables, the focused approach allows for a clearer interpretation of the analysis results.
The linear regression model indicates that the three independent variables—eWOM Quantity, eWOM Quality, and eWOM Credibility—account for 53.7% of the variance in the dependent variable, Purchase Intention This demonstrates a significant relationship, confirming that these factors effectively explain over half of the changes in consumer purchase intentions.
The Durbin-Watson coefficient, as outlined by Trong and Ngoc (2008), ranges from 0 to 4, indicating different correlation types: a value between 0 and 1 signifies a positive correlation, between 1 and 3 indicates no correlation, and between 3 and 4 suggests a negative correlation The analysis reveals a Durbin-Watson coefficient of 1.935, which falls between 1 and 3, confirming that the model does not exhibit autocorrelation.
The Variance Inflation Factor (VIF) is a critical tool for assessing multicollinearity among independent variables in a dataset The VIF values for the three independent variables are 1.730, 1.872, and 1.830, all falling between 1 and 2, indicating that there is no significant correlation with other independent variables.
Source: The results of processing survey data in 2024
Source: The results of processing survey data in 2024
To assess the normal distribution of residuals, we analyze the Histogram and Normal P-P Plot The graph indicates that the mean value approaches 0, while the standard deviation is 0.991, which is close to 1 Additionally, the bell-shaped curve and the dispersion percentiles aligning closely with the expected diagonal suggest that the distribution is approximately standard Therefore, we conclude that the assumption of normal distribution for the residuals is not violated.
Source: The results of processing survey data in 2024
To assess the linear relationship between the dependent and independent variables, examine the scatterplot results If the normalized residuals are randomly distributed around the vertical zero line and exhibit a linear pattern, it indicates that the assumption of linearity is upheld.
As the result of Table 5.15, there are all 3 in dependent varibales including
(1) eWOM Quantity (SL), (2) eWOM Quality (CL), (3) eWOM Credibility (EC) The regression result would be formed as follows:
The multiple linear regression analysis indicates that electronic word-of-mouth (eWOM) significantly influences consumers' intentions to purchase green cosmetics With all three independent variables demonstrating a significance level of less than 0.05, it is confirmed that they each have a statistically significant effect on the dependent variable.
The eWOM Quantity (SL) significantly influences the intention to purchase green cosmetics, as indicated by a significance level of 0.000, which is below the 0.05 threshold An increase of 1 unit in the SL variable correlates with a 0.242 unit rise in the purchase intention (PI), while a decrease of 1 unit in SL results in a 0.242 unit decline in PI The SL variable's Beta coefficient of 0.265 supports the hypothesis that eWOM quantity positively and significantly affects the intention to buy green cosmetics These findings align with the research of Park et al (2007) and Matute et al (2016).
The eWOM Quality (CL) significantly influences the intention to purchase green cosmetics, with a p-value of 0.001, indicating a strong relationship An increase of one unit in the CL variable leads to a corresponding rise in the intention to buy, assuming other factors remain unchanged.
The study reveals that an increase in the CL variable leads to a corresponding increase of 0.228 units in the PI variable, while a decrease in the CL variable by 1 unit results in a 0.228 unit decrease in the PI variable With a Beta coefficient of 0.254 for the CL variable, the findings support the H2 hypothesis, confirming that eWOM quality has a positive and significant impact on the intention to purchase green cosmetics These results align with previous research conducted by Park et al (2007) and Matute et al (2016).
The eWOM Credibility (EC) variable has a positive impact on the intention to buy green cosmetics because of the Sig = 0.000 < 0.05 When the
An increase of 1 unit in the EC variable results in a 0.228 unit increase in the PI variable, while a decrease of 1 unit in the EC variable leads to a 0.228 unit decrease in the PI variable With a Beta coefficient of 0.336, the EC variable demonstrates the strongest influence on consumers' intention to purchase green cosmetics This supports the hypothesis H3 of the research model, confirming that eWOM credibility positively and significantly impacts the intention to buy green cosmetics These findings align with the research conducted by Luo et al (2013).
The author's study reveals that three key factors—eWOM Quantity (SL), eWOM Quality (CL), and eWOM Credibility (EC)—positively influence Gen Z's intention to purchase green cosmetics in Can Tho City.
The study confirms the proposed expectation model, revealing that electronic word of mouth (eWOM) significantly influences consumers' intention to purchase green cosmetics in Can Tho City Notably, eWOM Credibility emerged as the most impactful factor; objective and factual reviews foster consumer trust and motivate purchase decisions Additionally, eWOM Quantity plays a crucial role, as the widespread sharing of reviews enhances product popularity and consumer confidence, aligning with the Theory of Reasoned Action However, eWOM Quality has a limited effect due to skepticism surrounding unverified online information, especially for green cosmetics, where diverse opinions may confuse consumers The reliability of eWOM is also contingent on the reviewer's expertise, with biased or uninformed sources potentially undermining purchase intentions.
H1 eWOM Quantity positively and significantly affects purchase green cosmetic intention.
H2 eWOM Quality positively and significantly affects purchase green cosmetic intention.
H3 eWOM Credibility positively and significantly affects purchase green cosmetic intention.