tiểu luận kinh tế lượngUSING THE RECOVERY MODEL TO ASSESS THE FACTORS AFFECTING COSMETIC CONSUMER ACTS OF STUDENTS IN FOREIGN TRADE UNIVERSITIES

FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL ECONOMICS*********** ESSAY THE FACTORS AFFECTING COSMETIC CONSUMER ACTS OF STUDENTS IN FOREIGN TRADE UNIVERSITIES Instructor: Dr... EXEC

FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL ECONOMICS

***********

ESSAY THE FACTORS AFFECTING COSMETIC

CONSUMER ACTS OF STUDENTS IN FOREIGN TRADE UNIVERSITIES

Instructor: Dr Nguyen Thuy Quynh Class: KTEE301(1-1920).1_LT

Hanoi, December 16 th , 2019

EXECUTIVE SUMMARY

Our research paper evaluates and analyzes the factors affecting cosmeticconsumption behavior of students in Foreign Trade University, Hanoi We havecollected data from students who are still studying at the school by using a surveyquestionnaire then conducted regression analysis with the help of STATA software.The regression results show that factors such as gender, price, income, brand andquality of the products have great influence on the money that Foreign TradeUniversity students spent monthly for cosmetic

TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

TABLE OF CONTENTS 3

TABLE OF FIGURES 5

TABLE OF TABLES 5

PREFACE 6

PART 1 THEORETICAL BASIS 7

1 An overview of related theory 7

2 Definitions and model of customer behavior 7

2.1 Consumers and the consumer market 7

2.2 Consumer behaviour 8

2.3 Model of consumer behavior 8

3 Factors affecting consumer behavior 10

3.1.Factors outside the “black box” of consumer consciousness 10

3.1.1 The stimulus of Marketing 10

3.1.2 Other stimulus 10

3.2 Factors within the "black box" of consumer consciousness 11

3.2.1 Cultural factors 11

3.2.2 Social factors 11

3.3 Personal factors 12

3.3.1 Age and stage of life cycle 12

3.3.2 Occupation and economic status 12

3.3.3 Lifestyle 12

3.4 Psychological factors 13

3.4.1 Engine 13

3.4.2 Awareness 13

3.4.3 Understanding 13

PART 2 PRACTICAL APPLICATIONS 13

1 Relevant economic results 13

1.1 Research on “Consumer decision-making style” by Sproles & Kendall

1.2 Research by Zeithaml and Bitner (1996) 1

4 1.3 Research on service quality of Parasuraman (1985) 1

4 1.4 Fishbein and Ajzen (1980)'s study of Theory of Reasoned Action (TRA) 15 1.5 "Components of brand value in Vietnam's consumer goods market" model by Nguyen Dinh Tho and Nguyen Thi Mai Trang (2002) 15

2 Research objectives: 15

3 Subject and scope of the study 15

4 Research Methodology 16

4.1 Qualitative analysis 16

4.1.1 A number of key factors directly affecting cosmetic consumption behavior 16 4.1.2 Data description 18

5 Quantitative analysis 19

5.1 Selecting the Econometrics model 19

5.1.1 Conducting the model of Econometrics 19

5.1.2 Variables in the model 20

5.1.3 Analysis of relationships between variables 21

5.2 Data source 22

5.3 Expected results 22

5.4 Estimated results of regression model 23

5.4.1 Meaning of the coefficients 23

5.4.2 Regression results 25

5.4.3 Relevance of the model 26

5.4.4 Testing the regression coefficient 26

5.4.5 Verification of model conformance 27

5.5 Test model defects and how to fix them 27

5.5.1 Test of omitted variables 27

5.5.2 Test the normal distribution of noise 28

5.5.3 Multicollinearity test 29

5.5.4 Variance of error of change 30

PART 3 SOLUTIONS 32

CONCLUSION 33

REFERENCES 34

APPENDIX 35

TABLE OF FIGURES Figure 1: Summary statistics table of overall data 19

Figure 2: Coefficient correlation matrix 21

Figure 3: Estimating regression model 23

Figure 5: Residual graph - Test the normal distribution of the sample 28

Figure 6: Skewness/ Kurtoris tests 29

Figure 7: Multi-collinear test – VIF 30

Figure 8: White Test 31

TABLE OF TABLES Table 1: Consumer behavior’s model by Philip Kotler (2005) 9

Table 2: Table of regression results 25

Table 3: Survey data on factors affecting cosmetic consumption behavior of Foreign Trade University students 35

Table 4: Group members list 51

Table 5: Evaluation of members 51

Society has always appreciated human qualities, personality is always veryimportant, but nothing is more perfect than a person who has both goodcharacteristics and a beautiful face Therefore, since thousands of years before, ourancestors had already found ways to beautify themselves such as staining teeth,eating betel nut to have red lips Today, the economy is growing robustly, helping toimprove the living standards, income, living conditions Trade between countries isexpanding and facilitating the integration and absorption of new cultures, making theuse of cosmetics and makeup become increasingly simple and popular, becoming anindispensable part of the lives of many people, especially students

Beauty will help students gain confidence in communicating with the otherpeople both in working environment as well as in basic daily life Beauty is also aboutshowing respect to others, helping students to harmonize better with the society whichloves perfection Moreover, with a good appearance, students may be offered manychances or amazing opportunities in the future To have a thorough understanding of the

student's cosmetic consumption behavior, our team chose the topic: " USING THE

RECOVERY MODEL TO ASSESS THE FACTORS AFFECTING COSMETIC CONSUMER ACTS OF STUDENTS IN FOREIGN TRADE UNIVERSITIES"

The essay aims to evaluate the factors affecting the cosmetic consumptionbehavior of Foreign Trade University students, from which we can have an objectiveview and propose appropriate solutions to develop the cosmetic industry in Vietnam

Our team is very grateful that (Ms Quynh) has assisted and answeredquestions during the implementation of our project Despite our best efforts, we stillhave many limitations about academic knowledge and the data collection methods,therefore it is inevitable that there are some flaws in our essay We look forward toreceiving your comments and suggestions to improve our essay!

We sincerely thank you!

PART 1 THEORETICAL BASIS

1 An overview of related theory

A thorough research into customer behavior is an important stage to identifythe needs of customers, helping businesses choose the right customer segment,positioning the right product / brand in the market and having the effective strategiesand plans in Marketing as well as business production In addition, conductingresearch on post-purchase customer behaviour has impact on the effectiveness ofcustomer retention strategies

There have been many researchers around the world who study and research

on this issue One that can be named is the detailed and accessible Philip Kotler'smodel of consumer behavior research Therefore, we decided to choose PhilipKotler's theory of consumer behavior

According to Philip Kotler (2001), research on consumer behavior is quitecomplicated, because there are many variables involved and their tendency is tointeract and influence each other The marketing and environmental factors come intothe consciousness of the buyer The characteristics and decision-making process ofbuyers will lead to the final decisions

Now we are going to consider how consumer behavior patterns, the factorsthat influence consumer buying behavior and the decision-making process are made?

2 Definitions and model of customer behavior

Consumers are people who buy and consume products, services to satisfy theirindividual needs and desires Consumers can be individuals, households or groups ofpeople

The consumer market includes all individuals, households and groups ofpeople and the potential to buy goods and services for the purpose of satisfyingindividual needs

2.2 Consumer behaviour

There are many definitions of consumer behavior given and according to theresearchers, this term can be understood that:

In accordance to Hawkins and his partners: “Consumer behavior is the study

of individuals, groups or organizations and the processes they select, use, preserveand dispose of products, services, experiences or ideas to satisfy the needs andimpacts of these processes on consumers and society.”

From the perspective of the behavioral science, in a nutshell, "Consumerbehavior is a consumer process in which they form a response to a need."

Consumer behavior is dynamic and interactive because it is influenced byfactors from the outside environment and has an impact on the environment

At the same time, there are four types of consumer behavior: normal(habitual) buying behavior, complex buying behavior, buying behavior seekingdiversity and purchasing behavior that ensures harmony

In order to understand consumers' desires and needs, we must start from theirbehavioral models Researching consumer behavior models helps businesses realize thedifferent reactions of customers on each product such as quality, price, advertisingprograms, promotions, models, thereby understanding the needs and tastes of eachcustomer to choose effective business strategies and enhance competitiveness

Table 1: Consumer behavior’s model by Philip Kotler (2005)

1 Hawkins, Mothersbaugh, (2010), Consumer Behavior Building marketing strategy, 11th edition, Irwin/McGraw Hill

The model depicts the factors stimulating on consumers' black boxes andgenerates reactions The model consists of three basic factors: stimulus, buyer’s blackbox and response of buyer Marketing factors (products, prices, place, promotion)and other factors (economic, technological, political, cultural) make impacts on thebuyer's black box (perceive issues, seek information, assess, decide buying behavior).They cause the necessary response from the buyer and result in a definite purchasedecision (product type, brand, quantity, time of purchase and place of purchase) Inparticular, each factor in the model is as follows:

Stimulating factors: are all individuals, forces outside consumers that mayinfluence consumers' behavior, including stimulating factors of marketing and otherstimuli

Buyer’s black box is the thinking, perception, judgment of consumers

Buyer’s response: consumer reactions revealed in the exchange process that

we can observe such as: SP choice, brand,

3 Factors affecting consumer behavior

3.1.1 The stimulus of Marketing

Specifically, the four basic components of Marketing - a powerful stimulus

to consumer behavior are:

• Product: the most basic ingredient in the Marketing Mix It could be thetangible product that the company introduce to the market including productquality, design shape, characteristics, packaging and brand Products alsoinclude intangible aspects such as delivery, repair and other forms of service

• Price: an equally important component including wholesale prices, retailprices, discounts, discounts, credits Price must be competitive andcommensurate with the value received by the customer

• Distribution: this is also a key ingredient in mixed marketing Those areactions that make the product accessible to customers The company needs tounderstand, recruit and link intermediaries to deliver products to the targetmarket effectively

• Promotion: this fourth component contains many activities used to

communicate and promote products to the target market The company needs

to set up programs such as advertising, promotions, and recruit, train andmotivate the sales team to serve this component

3.1.2 Other stimulus

• Economic environment: In our society, apart from people themselves, theirpurchasing power is also very important to the market The level of generalpurchasing power depends on the level of current income, prices, etc Therefore,studying the economic environment is to study consumers' income issues, thedistribution of income in the society also influences purchasing power

• The environment of science and technology: the development of science andtechnology brings about great changes to almost every other area of life Scienceand technology change the quality of people's lives and thereby change theirattitudes and behaviors towards life in general and shopping in particular

• Politics: the political environment surrounding consumers includes laws,government agencies Prestigious social groups consumer organizations andindividual co-consumers also limits people’s freedom of action within acertain framework.

• Cultural characteristics: people grow up in a specific society and the societyitself has exchanged their basic views to create moral standards and values.The cultural environment includes basic traditional cultural values with highsustainability expressed through the attitude of people towards themselves, others, and everything around them

3.2.1 Cultural factors

Cultural factors have the most profound influence on consumer behavior.Cultural factors that influence consumer behavior include the buyer's culture,subculture, and social class

Culture: Culture is the most basic determinant of a person's wishes andbehaviors A child growing up will accumulate a number of values, perceptions,interests and behaviors through his family and other key institutions

Cultural branches: Each culture has smaller subcultures that create morespecific characteristics and level of social integration for its members Each culturalbranch can be a market segment It is formed due to differences in residence,ethnicity, beliefs, education of a community that shares a common culture

Social strata: Social strata are relatively stable groups within a socialframework that are organized in caste/hierarchy and characterized by the same views,interests and ethical behaviors between members People of the same social classtend to have similar consumption behaviors

3.2.2 Social factors

• Reference groups:

According to Philip Kotler, reference groups are those that directly or

indirectly influence people's attitudes and behaviors Groups that directly affect a

person are called membership groups Those are the groups that people join andinteract with There are groups that are primary groups, such as family, friends,neighbors, and colleagues, with whom the person has regular contact Primary groupsare usually more formal and require less frequent communication.

• Family:

Family members of a consumer can make a strong impact on the buyer'sbehavior We can distinguish into two types of buyers' families, including orientedfamilies (including parents) and separate families (including spouses, children).Family members in one way or another influence consumers' buying behavior

• Roles and positions:

In life, each individual participates in a lot of groups such as families, clubs,organizations People choose products that reflect their position and role

3.3.1 Age and stage of life cycle

Even for the same needs, consumers still choose different goods and servicesaccording to their age The same is the need for food but for younger customers theywill choose a wider variety of foods, but as they age they tend to abstain from certainfoods Consumer tastes on clothing, furniture or entertainment products also depend

on age

3.3.2 Occupation and economic status

Occupation and economic conditions are one of the conditions that have astrong influence on a person's way of cosuming Occupation influences the nature ofgoods and services chosen by consumers: A worker chooses different types ofclothing, work shoes, and entertainment from the director of a company Economiccircumstances have a great impact on product selection behavior When the economy

is well off, consumers tend to spend more on expensive products

3.3.3 Lifestyle

People from the same cultural, social, and professional backgrounds may stillhave completely different lifestyles and their consumption patterns will also differ Aperson's lifestyle is his or her self-expression, expressed in his activities, interests andviews in life.

3.4.1 Engine

Kotler concludes: "Motivation is a need that has become so urgent that people

have to find ways and means to satisfy it." At any given time, people have many different.

For example, some biological needs such as hunger, thirst, irritability, or somepsychological needs such as the need to be acknowledged, respected by others ormentally relaxed and all of which need to be satisfied by action

3.4.2 Awareness

Cognition is the ability to think and see of people Motivation has the effect

of promoting the process of human action, and the action depends on the perception.The two housewives who went into the supermarket with the same motive but thechoice of consumer products could be completely different Their perception offactors such as design, price, quality and service attitude are not entirely the same

3.4.3 Understanding

Understanding helps people to have different opinions when it comes toproducts of similar properties When consumers have a certain understanding ofgoods, they will choose to consume in the most beneficial way

1 Relevant economic results

(1986)

Sproles and Kendall have developed a scale, called Consumer Style Inventory(CSI), which identifies eight psychological characteristics of consumer decision-makingstyle CSI provides a quantitative tool to classify different decision-making

characteristics of consumers into shopping-oriented groups Sproles (1986)exploratory research provides the basis and conceptual framework for CSI Sprolesand Kendall (1986) define consumer decision-making style based on personalcharacteristics They then continue to suggest that consumers reach the market with aspecific style for making product purchase decisions According to Sproles andKendall price is an indicator of quality and reputation A high quality product withmany benefits will be associated with the idea of a good choice.

Zeithaml and Bitner argue that consumers make their purchase decisions based

on assessments of the value of products provided by suppliers Once a product ispurchased, the satisfaction depends on the actual perceived performance compared to thebuyer's expectation Customer satisfaction occurs when performance of the product feelsconsistent and exceeds expectations Accordingly, failure to meet customer needs andexpectations will lead to unsatisfactory results for that product or service

In addition, researchers have also demonstrated that customer satisfaction isinfluenced not only by service quality but also by product quality, price as well asemotional and personal factors

Earlier in 1988 Zeithaml stated the relationship of product quality and price

of products to customer satisfaction He said that perceived quality is a subjectiveassessment of the perfection or superiority of a product

A Parasuraman, Valarie A Zeithaml and Leonard L Berry first published amodel of factors affecting SERVQUAL's service quality, including: (1) Tangibles ; (2)Reliability ; (3) Responsiveness; (4) Service capacity; (5) Access; (6) Communication;(7) Information; (8) Credibility; (9) Security; (10) Understanding This model coversalmost every aspect of the service, but the prefix of satisfaction is not specified.Many later authors have demonstrated that, although service quality and satisfactionhave in common, they are two different concepts

1.4 Fishbein and Ajzen (1980)'s study of Theory of Reasoned Action (TRA).

The model shows that consumer trend is the best factor to predict consumerbehavior, which is a combination of three cognitive, emotional and trend components InTheory of Reasoned Action model, attitude is measured by perception of productattributes Consumers will pay attention to the attributes that bring about the necessarybenefits and have different levels of importance If we know the weight of thoseattributes, we can predict close to the consumers' selection result

model by Nguyen Dinh Tho and Nguyen Thi Mai Trang (2002)

When deciding to buy a product, the desire of the customer usually has two parts: the functional needs of the product and the psychological needs of the

product Because the product only provides users with both functional benefits and psychological needs, customers gradually switch from buying products to buying products through brands

2 Research objectives:

The project aims at some of the following research objectives:

• Research on theoretical basis, models and researches on consumer

behavior of customers

• Identify the main factors influencing cosmetic consumption behavior ofForeign Trade University students in Hanoi campus Determine the degree of theopposite or opposite impact of those factors affecting cosmetic consumptionbehavior of students of Foreign Trade University - Hanoi

• From the results of the research, it is possible to propose, recommend andhelp businesses in the cosmetics industry to have reasonable marketing policies andstrategies to improve satisfaction and gain trust from customers and also growlong-term

3 Subject and scope of the study

Target audience: Factors that directly influence students' cosmetic purchasingdecisions and behaviors, including factors in consumer black boxes and external factors coming from businesses.

Research scope:

Students at Foreign Trade University

Recent data and information from sources

4.1.1 A number of key factors directly affecting cosmetic consumption behavior

Previous research models using different research methods have identified anumber of important key factors that directly affect cosmetic consumption behavior

of the world in general and in our country in particular, like:

• Sproles & Kendall (1986) Research on Consumer decision-making style

identifies 8 psychological characteristics of consumer decision-making styleincluding:

o Consciousness of perfection / high quality: Consumers seek carefully and systematically to get the best quality products

o Brand awareness / price by quality: Consumers associate quality with price, they believe that the higher the price, the higher the quality, and always focus on luxury, expensive brands

o Recreational consciousness / hedonism: A measure of the extent to which consumers see shopping as an act of entertainment they buy for fun and enjoyment

o Sense of price / value for money: A consumer is always looking for cheap products, and discounted products They shop by searching for the best product for their money

o Impulsive, careless: A consumer has no previous or specific procurementplan and doesn't care about the money spent.

o Confused by so many options: A consumer is confused and overwhelmedwith too much product information or too many product choices

o Loyalty / brands: A consumer tends to stick with a product brand

o Sense of novelty and fashion: consumers like the novelty and creativity ofthe product and these people are increasingly interested in finding new things

• Research on "The impact of self-image congruence on brand preference and satisfaction" by Ahmad Jamal and Mark M.H Goode, 2001: This study

examines the influence of individual factors, mainly self-awareness on brand choice and consumer satisfaction, specifically on high-class jewelry products market (mainly cosmetic products) A person's perception is closely related

to their behavior, and they tend to buy products and brands that they feel are close to their image In other words, a person expresses himself through choosing products and brands that match their personal values

• Nguyen Thi Mai Trang's research on service quality, satisfaction and loyalty

of supermarket customers in Ho Chi Minh City: using the research concept scales first assessed by Cronbach alpha reliability coefficient and continuouslytested (aggregate reliability, unit validity, convergent value, and price

discriminatory treatment) through CFA (Confirmatory Factor Analysis)

method SEM (Structural Equation Modeling) is used to test theoretical

models with hypotheses The estimation method is maximum likelihood The multi-group analysis method in SEM is also used to examine the differences between groups (age and income) for the relationships

• Survey on the impact of income on cosmetic consumption in Vietnam:

Currently, a Vietnamese woman spends an average of 300,000 VND / month onmakeup products, twice as much as two years ago The number of women who spend 500,000 VND or more per month on makeup cosmetics accounts for 15% This increase in average spending is mainly coming from young women aged 20-29 with a monthly income of VND 20 million or more

• From the results of the aforementioned studies, our group draws on

factors that greatly affect the cosmetic consumption behavior of Foreign Trade University students including the following factors:

overall statistics table:

Kurokawa Kengo, (2019), Vietnam Cosmetics Market: Trends and potential incentives for development, BRANDS Vietnam, Website: https://www.brandsvietnam.com/congdong/topic/14465-Thi- truong-my-pham-Viet-Nam-Xu-huong-va-cac-dong-co-tiem-nang-thuc-day-phat-trien

Figure 1: Summary statistics table of overall data

5 Quantitative analysis

On the basis of Philip Kotler's theory of "consumer behavior theory", along with CSI theory scale: Sproles and Kendall's 1986 consumer style scale,Sproles and Sproles 1990 The scale in this study is adjusted and supplemented to suit consumers

in Vietnam market in general as well as student segments in particular based on the survey results

5.1.1 Conducting the model of Econometrics

Use classical linear regression model:

Overall regression equation:

Yi = β1 + β2X2i + β3X3i + βkXki+ ui

Yi: dependent variable: student's cosmetic spending level

Xi: independent variables, explanatory variables (including the above sevenvariables)

Ui: remainder of the model

5.1.2 Variables in the model

Dependent variable: Y: lnspend - The total monthly spending on cosmetics

of Foreign Trade University students is in thousand VND

Independent variables:

X1: wage - Monthly income (thousand VND)

X2: male - Gender students using cosmetics

X2 = 1 if female

X2 = 0 if male

X3: brands - Are used cosmetics brands famous?

X3 = 1 if the cosmetic brand is famous

X3 = 0 if the cosmetic brand used is not famous

X4: Price - Threshold price cosmetic spending

X4 = 1 if not buying cosmetics with unit price of over 250 thousand VND

X4 = 0 if buying cosmetics with unit price of 250 thousand VND

X5: quality - Quality of used cosmetics

X5 = 1 if consumers care about product quality

X5 = 0 if the consumer is not interested in product quality

20

5.1.3 Analysis of relationships between variables

Before running the regression model, we consider the degree of correlation between variables and obtain a correlation table between variables as follows:

Figure 2: Coefficient correlation matrix

Comment: Based on the correlation coefficient matrix table, we find:

• r (wage, lnspend) = 0.4159 => positive correlation, low correlation

• r (male, lnspend) = 0.2597 => positive correlation, low correlation

• r (male, wage) = 0.1884 => positive correlation, low correlation

• r (brands, lnspend) = 0.3422 => positive correlation, low correlation

• r (brands, wage) = 0.1884 => positive correlation, low correlation

• r (brands, male) = 0.2450 => positive correlation, low correlation

• r (prices, lnspend) = 0.6824 => positive correlation, average correlation level

• r (prices, wage) = 0.2099 => positive correlation, low correlation

• r (prices, male) = 0.2025 => positive correlation, low correlation

• r (prices, brands) = 0.2408 => positive correlation, low correlation

• r (quality, lnspend) = 0.5777 => positive correlation, average correlationlevel

• r (quality, wage) = 0.2780 => positive correlation, low correlation

• r (quality, male) = 0.0751 => positive correlation, low correlation

• r (quality, brands) = 0.2003 => positive correlation, low correlation

• r (quality, prices) = 0.4626 => positive correlation, low correlation

The correlation coefficients are all in the same direction, the correlation level

is relatively low or medium: r (quality, male) = 0.0751; r (quality, brands) = 0.2003; r(male, wage) = 0.1884; ; the highest coefficient r (price, lnspend) = 0.6824 is still relatively low, so the model showed no signs of collinearity

Regression model is less likely to have polyline disease

• Are cosmetic brands you use famous?

• Buy only good quality cosmetics

• Poor quality cosmetics also buy

• Are you willing to buy a cosmetic product with a price of over 250,000 VND?

Survey through questionnaire More than 300 questionnaires were given out

to randomly survey students at Foreign Trade University, the subjects were surveyed

in a variety and dispersed manner, with no restrictions on conditions, interests, habits,gender, collection import, …

Income, quality, and product brands all influence the students' cosmeticpurchasing behavior in the same direction

This can be explained by:

• Increased income leads to increased demand for cosmetics

• Good cosmetic quality stimulates consumer loyalty to the product

• Product brand: customers tend to feel more secure when buying products withclear brand names and widely available

• Price has a negative effect on cosmetic consumption behavior of students

• This can be explained by the law of supply and demand, in which cosmeticsare common goods

Based on OLS estimation results, we have a model regression model random:

3 = 4,818876 + 0,0000873 + + 0,113855375

+0,1162513 / + 0,6425393 0 + 0,3337313 1

Figure 3: Estimating regression model

5.4.1 Meaning of the coefficients

( = 4.818876: The average monthly spending on cosmetics is VND 4,818876 thousand in

the absence of any influence.

+ = 0.0000873: If your monthly income increases by 1 thousand VND, the average monthly total spending on cosmetics increases 0.00873% in the case of other factors unchanged.

= 0.113855375: The average monthly spending on cosmetics of women is 11.3855375% more than men in the case of other factors unchanged.

23

/ = 0.1162513: The average monthly amount spent on cosmetics of famous cosmetics more than non-famous cosmetics is 11,62513% in the case of other factors

24

5.4.2 Regression results

Table 2: Table of regression results

Variable name

Stata board)

280

• F (5,274) = 89.43: F-test value of 5 factors and 274 degrees of freedom

• Prob> F = 0.0000: The significance level of the F test here is less than 5%, indicating that R2 of the population is different from zero In other words, the regression coefficients of the overall regression equation are not equal to zero