Building a model of tv shopping for the viet nam market

Title: FACTORS THAT INFLUENCE CUSTOMER’S TV HOMESHOPPING IN VIETNAM: BASIS FOR A SHOPPING MODEL Researcher: Le Quoc Hieu Institution: Tarlac State University Tarlac City Course: Doctor

FACTORS THAT INFLUENCE CUSTOMER’S TV HOMESHOPPING IN

VIETNAM: BASIS FOR A SHOPPING MODEL

_

Dissertation Presented toThe Faculty of the Graduate School Tarlac State UniversityTarlac City

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Republic of the Philippines

TARLAC STATE UNIVERSITY GRADUATE SCHOOL

Accepted and approved in partial fulfillment of the

requirements for the Degree of Doctor of Philosophy in Business Administration.

GABRIEL S TABION, DPA

Dean, Graduate SchoolDate:

I hereby commit that this dissertation “Factors that influence customer’s

TV homeshopping in Vietnam: Basis for a TV shopping model” has not

been previously submitted for any degree or diploma at any educational institution, and it is my original work for PhD program of Tarlac State University All received supports and due reference source are acknowledged.

Ho Chi Minh City, Feberuary 14th, 2014

LE QUOC HIEU

Title: FACTORS THAT INFLUENCE CUSTOMER’S TV HOMESHOPPING

IN VIETNAM: BASIS FOR A SHOPPING MODEL

Researcher: Le Quoc Hieu

Institution: Tarlac State University

Tarlac City

Course: Doctor of Philosophy in Business Administration

This research aimed to ascertain the factors that influence customer’s TV homeshopping with intention was the basis for building a TV homeshopping model applicable in Vietnam market This research also determines the influence

of direct and indirect factors on level of customer acceptance for TV homeshopping The dataset of 480 valid despondences was used for this research

A correlational study was utilized in this study with questionnaire as the main instrument used in gathering the pertinent data With exploratory factor analysis and linear regression analysis, researcher has found that there were three factors influencing directly on customer’s TV homeshopping including customer satisfaction, customer trust, and customer attraction Each of them was illustrated

by a partial model A model of TV homeshopping was a combination of three partial models including customer satisfaction model, customer trust model, and customer attraction model The SPSS tool helps the researcher to compute the

influence level of each factor on the model and test the reliability of scale as well

as test the hypotheses

This research helps the entrepreneurs to make the right plan and sales strategy when implementing the TV homeshopping business in Vietnam

I would like to thank my advisor, Dr Larry R Williams for all his valuable suggestions, assistance, scientific inspiration and helpful insights throughout the completion of this research and in the course of my PhD studies I greatly appreciate his moral support, quick responses, and availability that eased the process of writing and revising the dissertation

I am also deeply grateful to my TSU President, Dr Priscilla C Viuya – she always encourages me on our learning and researching process Thank to Prof Rodrigo Sicat for her valuable lectures on researching skills

I would like to express my appreciation to all of my associates at the Ho Chi Minh Economic University for their support in my research efforts I would also especially like to thank my colleagues at CJ O Shopping Company, SCJ TV shopping Company and the experts in home shopping industry who come from Hyundai Home Shopping Network for their support in the qualitative research

A very special thanks goes to all of my friends, and family for their support and understand during my doing research

Le Quoc Hieu

THIS WORK IS DEDICATED TO MY PARENT,

MY WIFE AND MY CHIDREN

TABLE OF CONTENT

COPYRIGHT PAGE……….…….ii

APPROVAL SHEET……….……iii

ABSTRACT……….… …iv

ACKNOWLEDGEMENTS……….……… …v

DEDICATION……….……….…vi

TABLE OF CONTENTS……….…… …viii

LIST OF FIGURES ……….…xi

LIST OF APPENDIX TABLES.……….…xii

TABLE OF CONTENTS

I THE PROBLEM AND ITS BACKGROUND 1

Introduction 1

Statement of the Problem 10

Research Objectives 13

Research Hypotheses 14

Importance of the Study 23

Scope and Delimitations of the Study 26

Definition of Terms 27

II REVIEW OF RELATED LITURATURE AND STUDIES .30

Theoretical Foundations 31

Related literature review 37

Conceptual framework 67

III METHODS OF STUDY AND SOURCES OF DATA .70

The Research Design 70

The Population of Study 75

Sampling design 76

Method of Gathering Data 78

Method of Data Processing 84

Instrumentation 90

Statistical treatment 102

IV PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 106

V SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 170

Summary of Findings 171

Conclusions 178

Recommendations 182

Recommendations for Future Research 186

Implications of the Study 187

REFERENCES .189

APPENDIX A: Exploratory research result – Expert panel’s agreement 206

APPENDIX B: List of experts 212

APPENDIX C: Table of Measurement Scales 214

APPENDIX D: Letter to participants 230

APPENDIX E: Survey Questionnaire 232

APPENDIX F: Tables of Data analysis 251

APPENDIX G: Curriculum Vitae .286

LIST OF FIGURES

Figure 1: An operational model of TV homeshopping- Researcher generated 7

Figure 2a: Theoretical model for the factors that influence the level of customer’s acceptance for TV homeshopping 15

Figure 2b: Theoretical model for Model of TV homeshopping 19

Figure 3: Theory of Reasoned Action (TRA) (Ajzen & Fishbien, 1980) 33

Figure 4 Technology Acceptance Model (TAM) (Davis, 1989) 35

Figure 5 A revised technology acceptance model to include a customer attraction and retention, adapted from (Davis, 1989) .37

Figure 6: Customer satisfaction (Zeithaml & Bitner, 1996) .58

Figure 7: Conceptual framework of study 69

Figure 8: The process of study .74

Figure 9: Sex of participants .108

Figure 10: Age of participants 109

Figure 11: Occupation of participants 110

Figure 12: Education of participants .111

Figure 13: Adjusted Research Model of level of customer’s acceptance 118

Figure 14: Histogram frequency chart 123

Figure 15: Actual Research Model of level of customer’s acceptance .123

Figure 16: Research Model of Customer Satisfaction .131

Figure 17a: Histogram frequency chart 137

Figure 17b: Normal P-P Plot of regression standardized residual .137

Figure 18: Model of customer satisfaction 138

Figure 19: Adjusted Research Model of Customer trust 145

Figure 20a: Histogram frequency chart 149

Figure 20b: Normal P-P Plot of regression standardized residual 149

Figure 21: Model of Customer trust 150

Figure 22: Adjusted Research Model of Customer attraction 156

Figure 23a: Histogram frequency chart 160

Figure 23b: Normal P-P Plot of regression standardized residual 160

Figure 24: Model of customer attraction 161

Figure 25: The TV homeshopping model for the Vietnam market 163

Figure 26: Factors that customers interest when shopping via TV .164

Figure 27: An operation model of TV homeshopping model for Vietnam 187

LIST OF APPENDIX TABLES

APPENDIX C: Table of Measurement Scales 214

Table 1: The scale of customers’ perceived reasonable price for selling product 214

Table 2: Scale of product quality 215

Table 3: The scale of customer service quality 216

Table 4: Scale of sale promotion program 217

Table 5: Scale of sales policy 218

Table 6: Scale of publicity information 219

Table 7: Scale of organization’s brand name 220

Table 8: Scale of information security 221

Table 9: Scale of shopping convenience 222

Table 10: Scale of TV home-shopping program 223

Table 11: Scale of TV home-shopping channel occupation 224

Table 12: Scale of TV home-shopping channel location 225

Table 13: Customer acceptance for TV home-shopping business model 226

Table 14: Crondbach’s alpha check & Item-total statistics in Pilot test stage 227

APPENDIX F: Tables of Data analysis 251

Table 1: The districts participants are living 251

Table 2: Knowledge about TV home shopping 252

Table 3: Had purchased from TV home shopping 252

Table 4: The factors that customers most consider when shopping via TV home shopping channel 253

Table 5: The factors that most influence the decision of customers to purchase the product via TV home shopping channel 253

Table 6a: Crosstabulation of “has purchased product via TV” and “Participant's sex” 254

Table 6b: Chi-Square Tests 254

Table 7: Case summary 255

Table 8a: Crosstabulation of “has purchased product via TV” and “Participant's education” 255

Table 8b: Chi-Square Tests 255

Table 9: Case Processing Summary 255

Table 10a: Crosstabulation of “has purchased product via TV” and “Participant's occupation” 256

Table 10b: Chi-Square Tests 257

Table 11: Case Processing Summary 257

Table 12a: Crosstabulation of “has purchased product via TV” and “Participant's age” 258

Table 12b: Chi-Square Tests 258

Table 13a: Level of participants’ agreement for researching themes 259

Table 13b: Level of participants’ agreement for researching themes 260

Table 14: Level of participants’ agreement for acceptance themes 260

Table 15: Item-total statistics for factor Customer satisfaction 261

Table 16: Item-Total Statistics for factor customer trust 263

Table 17: Item-Total Statistics for factor Customer attraction 264

Table 18: KMO and Bartlett's Test for Customer satisfaction component 265

Table 19: Total Variance Explained for Customer satisfaction 266

Table 20: Rotated Component Matrix for variables of Customer satisfactiona, b 267

Table 21: KMO and Bartlett's Test 268

Table 22: Total Variance Explained 268

Table 23: Component Matrix a .268

Table 24: KMO and Bartlett's Test for Customer trust components 268

Table 25: Total Variance Explained for Customer trust 269

Table 26: Rotated Component Matrix a, b 270

Table 27: KMO and Bartlett's Test for Customer trust 270

Table 28: Total Variance Explained for customer trust, after eliminating 2 variables 271

Table 29: Rotated Component Matrixa for Customer satisfaction componenta, b 272

Table 30: KMO and Bartlett's Test 272

Table 31: Total Variance Explained 273

Tabel 32: Component Matrixa .273

Table 33: KMO and Bartlett's Test for Customer attraction 273

Table 34: Total Variance Explained for customer satisfaction 274

Table 35: Rotated Component Matrixa for Channel’s characteristica, b 275

Table 36: KMO and Bartlett's Test .275

Table 37: Total Variance Explained 276

Table 38: Component Matrixa .276

Table 39: Item-Total Statistics .277

Table 40: Model Summaryb for Customer Satisfaction 280

Table 41: Coefficientsa for factors of Customer Satisfaction .280

Table 42: Review the hypotheses after testing 281

Table 43: ANOVAb for Customer satisfaction 281

Table 44: Model Summaryb 281

Table 45: Coefficientsa .282

Table 46: Review the hypotheses after testing 282

Table 47: ANOVAb .282

Table 48: Model Summaryb 283

Table 49: Coefficientsa .283

Table 50: Review the hypotheses after testing 283

Table 51: ANOVAb .284

Table 52: Model Summary 284

Table 53: Coefficients .284

Table 54: Summary of hypotheses .284

Table 55: Wald Test .285

Table 56: KMO and Bartlett's Test .285

Table 57: Total Variance Explained 285Table 58: Component Matrixa .285

CHAPTER ONE THE PROBLEM AND ITS BACKGROUND

in the economic development of Vietnam in the future (RNCOS, 2012) Increased purchasing power, lifestyle changes, changes in government laws, improved FDI processes, upgraded education, improved infrastructure and the continuing influence of western culture are the major forces for the development of Vietnam

Specifically, as reported by A.T.Kearney in 2011 on an annual index of the global retail market GRDI (Global Retail Development Index), from 2008 to 2011, Vietnam is among the top 10 countries with the retail market development in the world (Kearney, 2011)

Vietnam has a high percentage of young population, according to Nguyen (2008), the percentage of people below the age of 16 accounted for 26.3% of the total population

Urbanization is increasingly rapidly, in 2006, Vietnam’s urbanization rate was 27.1% According to Dean (2012), Vietnam’s urbanization rate reached 34%, the proportion of urban population increased by 3.4% per year These data support the importance for the study of new business models which are naturally focused primarily on urban areas.

In addition, the television industry has lately had a positive breakthrough, Viet Nam was a typical backward country from 1995, and the number of households owning a

TV was a very small percentage But after 15 years, technology has developed rapidly with 6% of the population owning a personal computer, 31% of the population uses the Internet, and 90% of households owning a color television (NSCICT, 2012)

In a review of audiovisual media made by NSCICT (2012), by the end of 2010, there were 18,167, 483 households owning color televisions, with 5,837,725 households using pay-TV The number of households using cable television was 2,565,309, the number of households using satellite was 3,272,416 The remainder of the 12,565,723 households used television systems that do not pay (Free-To-Air service) With over 90%

of households owning a TV, the mass media really has spread to all corners even to the smaller less populated Vietnamese villages According to Salvador (2011), a 2010 survey

on 1,094 Vietnamese, found that 81% of participants spent time on the Internet, while the

TV was 57%, magazines, newspapers was 36%, and radio was 12% Vietnamese spent 5.6 hours per day (equivalent to 36 hours per week) to access the internet, spent 2.7 hours per day (equivalent to 14 hours per week) to watch TV, the newspaper was 1.5 hours every day and the media was 1.5 hours (Cimigo, 2011) and (Cuong, 2011) Obviously,

TV is the media that most people are interested in as the second form of entertainment following the Internet.

The above information clearly shows that Vietnam has seen significant changes in the world of television (TV) in recent years, with use of state-of-the-art television systems such as satellite, cable and digital terrestrial broadcasting This situation has encouraged the development of direct sales business model, such as the TV homeshopping that had shown the significant growth and had been expected to replace traditional sales channels in the certain consumer and product categories segments According to Rafael, Carla, and Silvia (2011), TV homeshopping is one of the business models with the greatest promise for the future, due to the wide spread of cable, digital terrestrial and satellite TV, the compatibility with mobile services such as IPTV, and the appearance of channels using OTT (Over The Top) technologies TV homeshopping encourages more consumers to include the TV medium as a possible shopping channel in their choice set The development of this business model based on TV and internet media platform is the new trend and it is appropriate for the development of media and communication technology in Vietnam

According to Manh (2013) and (FTA, 2011), Vietnam TV homeshopping market

is just emerging Almost all of TV homeshopping organizations come from Korea, so that

TV homeshopping model application in Vietnam is a multi-variant of Korean TV homeshopping model Hence, there are some conditions that are not appropriate for Vietnamese business and consumption culture There have been no studies conducted of

TV homeshopping business model in Vietnam In order to build the TV homeshopping

market in Vietnam, a full study of TV homeshopping should be performed This is the essence of this study.

Creating a TV homeshopping model that is appropriate for Vietnam market is the study focus of this dissertation The researcher expects that the entrepreneurs can apply the study results for their organization to improve sales performance Through this work, the researcher expects it will possibly impact on the development of Vietnam TV homeshopping market and be sustained into the future

Understanding of the TV homeshopping and its’ development in Vietnam

TV homeshopping is a modern shopping model that customers watch the product presentation programs on TV and select the suitable products while they are at home or anywhere they can watch the TV In order to purchase a product, customers make a call

to customer service toll-free to order the product and give the buyer’s information to the consultant The product is delivered to the buyer’s address and payment is collected (by cash or bank transfer) Development of interactive TV Technology has made shopping via TV more valuable and convenient with faster service Customers can buy anything from TV homeshopping channels such as electronics products, kitchen ware, fashion clothing, cosmetics, home appliances and more (Ryan, 1994) According to Pavitt (1997),

TV homeshopping model provides competitive prices, secure payment methods and easy

to use satisfactory delivery mechanisms Shopping via TV promises a modern, easy to use shopping style

Attracting more affluent consumers is the future of TV homeshopping model In order to attract more viewers, TV homeshopping channel has to be spread widely and TV

programs have to be compelling One of the important objectives of a TV homeshopping program is to be attractable the new viewers and hold the existing viewers’ attention does not switch to other channels Creating high quality programs is an essential requirement

to increase the rate of viewers and increase the TV watching time

In Viet Nam, together with development of Pay TV business, the TV homeshopping business is also growing rapidly In fact, the rudimentary period of TV homeshopping started in year 2005, however, during the early years, the firms often copied formats from abroad and applied them in Vietnam TV homeshopping operations were mainly either introduction of the product with short video-clip or advertisements for products via certain TV channels The TV channel owner negotiated with the goods’ suppliers to share the profits based on sales The TV homeshopping programs had been censored by the government television operators who had jurisdiction but this activity was undisciplined, hence the quality of goods which was introduced on TV was not guaranteed

In recent years, there have been several foreign participants in the TV homeshopping market under the form of joint ventures with Vietnamese firms These include Hana Shopping (established in 2010), CJO Shopping (established in 2011), Lotte home-shopping (established in 2011), GS Home Shopping (established in 2012), and more With the participation of foreign investors, TV homeshopping operations was changed a little Instead of introduction of short video clip on TV, now TV homeshopping firms produce the 30-minutes programs to provide more information to customers TV homeshopping firms sold brand-name products and occasionally have

celebrities sell their merchandises directly to customers Not only provision of products via TV platform, but the Vietnam TV homeshopping firms provide products via catalog and B2B business channel Although business operations have improved slightly, but because of the restrictions of joint venture regulations in media and communication field such as the cooperation period, capital share that held by foreign partners, the TV homeshopping business license, the joint venture enterprises too often have a short-term business plan (Manh, 2013)

Most companies operating in TV homeshopping in Vietnam are joint-venture companies that were jointed between Vietnam partners and foreign investors, so that quick profit taking is a basis requirement of these companies This requirement was often the motive of the joint venture with little focus on investing in infrastructure development, TV program content development, high quality training of employees, and building a long-term business plan Besides that, Government offices have slackened management of product quality and enterprises have focused mainly on making a profit, plus counterfeit products or poor quality products appearing more and more in the market As a result, the TV homeshopping companies cannot meet the increasing requirements of consumers’ expectations More and more customers complained that products were poor quality; the product price was not consistent with service and product quality; after sales service (exchange goods, return goods, delivery time, product warranty etc.) was not clear and not same as companies’ commitments; customers’ information was not safety; program content was not attractive and did not provide sufficient information; the TV homeshopping channel was not spread widely; and so on

An operational model of TV homeshopping applicable to Vietnam

After much disciplined research, the researcher suggested a TV homeshopping

operational model applicable in Vietnam described in figure 1

Figure 1: An operational model of TV homeshopping- Researcher generated

These model steps take place in the following order and are briefly summarized below:

(1) Goods manufacture: Products will be introduced to intermediate sellers - who will

distribute the products - through advertisement media

(2) Merchandise selection and acquisition: based on the merchandising strategy,

merchandisers select the products which are suitable for the TV homeshopping business

After negotiating the delivery method and time (to warehouse), promotion campaign for

product, product information material, product quantity and the selling price, two parties

(TV homeshopping company and vendors) will sign an agreement of product provision

(3) Products supplying: Vendors prepare the goods and deliver to enterprise’s

warehouse The factory test result sheets and related documents will be required to send

(9)

(3) (2)

Service quality

evaluation &

improvement

(12) 11)

Products supplying

TV programs production

Broadcast programs (Marketing

& Sales)

Customer service training

Products ordering

Product delivery &

payment

Stock goods for inventory

Merchandise Selection &

TV Programs censorship (14)

11)

together with the goods to the enterprise’s warehouse The vendor may be a manufacturer

or an authorized distributor of the manufacturer in Vietnam or the reseller

(4) Stock goods for inventory: After checking the product information, related

document and product quality (checked by Quality control staffs), the enterprise stocks goods for inventory

(5) Product training: A training course is organized with instruction of the vendor or

supplier’s experts Customer service supervisors, merchandisers, show-hosts, quality controllers and program producers participate in the training course as trainees In the training, the supplier’s experts will introduce the functions and features of product, how-to-use, and emphasize prominent features of product through actual demonstration (6) TV homeshopping program production: before shooting the program, the

producer provides a kick-off meeting (pre-production meeting) with other related persons

to provide program production plans for the product, product’s information, selling points, promotion information and sale price Based on this information, the script will be written by producers and distributed to the host for learn Production of TV homeshopping program will be performed in studio where the hosts present and demonstrate the product The program is recorded and edited with video-insert clip, audio dubbing and music mix into a complete program, then, it is sent for censoring

(7) Program censorship: The authorized television operator shall censor TV

programs Censorship is primarily focused on show host’s dress, word and speech in accordance with the Vietnamese traditional customs and culture

(8) Customer service training: Trainers focus on the price, selling points of the

product, how-to-use, and sales promotion policy for the product and after sales service policy Besides training for the product, trainers also re-transfer the soft-skills related to customer communication and customer persuasion

(9) Broadcasting the program: After obtaining the censorship result, the programs

that passed the censoring will be scheduled and broadcast on TV platforms and other media

(10) Product ordering: Customers watch TV homeshopping programs and select the

suitable products Customers make a call to toll-free numbers to get the information directly from the consultant for the products If customers agree to purchase the products, customers will be requested to provide personal information such as name, delivery address, age, sex, occupation etc and the transaction is confirmed Customer’s information will be provided to the logistic department to perform delivering products (11) Product delivery and payment: a customer list is updated by the consultants to

expedite the delivery time specified The payment is made as soon as the buyer checks the goods and signs on the printed receipt

(12) After sales service: After purchasing the goods, customers may have problems

with products they have purchased They will make a call to customer service toll free to ask for help Staff will respond quickly and answer the questions to the satisfaction of the customer

(13) Service quality evaluation & improvement: Service quality will be reviewed,

analyzed and evaluated Information of customer complaints will be gathered daily and

classified into the categories such as delivery problems, product problems, payment problems, after sales service problems An improvement of process will be conducted to avoid the same problems.

(14) Response to manufacturer: if there are many complaints about product,

merchandisers will be requested to re-deal with suppliers to solve problems

Statement of the Problem

Although the Vietnam TV homeshopping market has been operating for five years, but unfortunately, it does not have a successful business model, why? TV homeshopping companies are operating in individual ways often without a full business plan There is little research on TV homeshopping business in several respects, especially

as to the factors that influence the customer’s TV homeshopping, the profile of the TV homeshopping customer, level of customer acceptance for TV homeshopping Besides that, development of a practical model that can be applicable to Vietnam TV homeshopping companies is necessary in building a successful TV homeshopping market It will not only enhance the companies’ capability but also improve the environment of TV homeshopping market in Vietnam However, there was no research

on the TV homeshopping model

“What is the TV homeshopping model appropriate to develop in the Vietnam market?” This is the primary question that researcher would like to set for this study In

order to answer the primary researcher question, this study aimed to investigate the factors that influence the customer’s TV homeshopping with the intention was to use

these factors for building a usable model of TV homeshopping development in Vietnam Especially, the study sought answers to the following questions:

1 What is the profile of the respondents as to:

1.1 Customer’s sex

1.2 Customer’s age

1.3 Customer’s occupation

1.4 Customer’s education

1.5 knowledge about TV homeshopping

Study of this problem, researcher checked the correspondence between dataset and problems of study

2 What is the relationship between customer’s intention for purchasing via TV homeshopping and customer’s characteristics?

By studying this problem, researcher found out the relationship between customer’s intention for purchasing via TV homeshopping and customer’s characteristics such as sex, age, occupation, and education With result of study of this problem, researcher expects that readers, especially TV homeshopping firms’ managers can understand about profile of customer of TV homeshopping, and through this, managers can build the suitable strategy to approach successfully the customers of TV homeshopping in Vietnam

3 What are the factors that influence the level of customer acceptance for TV homeshopping?

Study of this problem is aimed to investigate the factors impacting directly on the level of customer acceptance for TV homeshopping The result of study of this problem

is basic to build a usable model for TV homeshopping that can be applicable in Vietnam

In this study, the researcher investigates that whether there are the relationships between customer acceptance and customer satisfaction, customer trust, customer attraction or not

4 What model of TV homeshopping for the Vietnam market could be proposed?

Building a model of TV homeshopping is building a matrix of factors that influence directly and indirectly the customer’s purchase intention According to Davis (1989), Moon and Kim (2001), the level of customer acceptance for a certain service influences possibly the customer’s intention for use of the service Therefore, building a model of TV homeshopping is building a matrix of factors that influence directly and indirectly the level of customer acceptance for TV homeshopping

In the problem 2 that proposed above, researcher found out the direct relationship between level of customer acceptance for TV homeshopping and customer satisfaction, customer trust, and customer attraction In the attempt at seeking the indirect relationship between level of customer acceptance for TV homeshopping and customer satisfaction, customer trust, and customer attraction, researcher took aim at seeking the factors that influence the customer satisfaction, customer trust, and customer attraction Accordingly, for solving this problem, researcher sought answers to following questions:

4.1 What are factors that influence customer satisfaction for TV homeshopping model? And how do these factors influence customer satisfaction?

4.2 What are factors that influence the customer trust of TV homeshopping model? And how do these factors influence customer trust of TV homeshopping model?

4.3 What are factors that influence the viewer attraction of TV homeshopping program? And how do these factors influence the viewer attraction of TV homeshopping program?

Study of this problem help researcher to find out the solution for improving customer satisfaction, creating the customer trust, and building a strategy of attracting customers The result of this study provided the readers a general model of TV homeshopping that can be used for development of a business in Vietnam Researcher expects that readers, especially the managers of TV homeshopping companies understand deeply about a model of TV homeshopping in Vietnam, and through that, the managers can set forth a suitable sales campaign to improve the sales performance Besides that, researcher expects the state-planners can suggest the suitable policies and right direction

to improve the environment of TV homeshopping and impulse the Vietnam TV homeshopping market growing strongly

5 What is the implication of the study to business administration?

Purpose of study of this problem is to give the suggestion for far-reaching, especially, researcher implicated the considerations of a policy, organization structure, an operation system relating the TV homeshopping business administration

Research Objectives

In order to conduct the research study, the researcher would like to set up the

① To achieve new insights into TV homeshopping business model

② To portray accurately the characteristics of particular individuals, situations in TV homeshopping business model

③ To determine the factors that influenced (directly and indirectly) the level of customer acceptance for TV homeshopping model

④ To analyze and assess the influence of these factors on the level of customer acceptance for TV homeshopping model

⑤ To test a hypothesis of a causal relationship between variables and built a model

of customer acceptance level for TV homeshopping model

Research Hypotheses

As discussed in the statement of the problem above, there were four problems that

were studied Purpose of studying the problem “What is the relationship between customer’s intention for purchasing via TV homeshopping and customer’s characteristics?” was to find out the relationship between customer’s characteristics such

as sex, age, occupation, education, and knowledge about TV homeshopping and customer’s intention for purchasing via TV homeshopping Therefore, the research

problem was suggested as: Are there the relationship between customer’s intention for purchasing via TV homeshopping and customer’s age, customer’s sex, customer’s occupation, and customer’s education?

The six variables being correlated are the customer’s intention for purchasing via TV homeshopping and customer’s age, customer’s sex, customer’s occupation, customer’s

education, and customer’s knowledge about TV homeshopping Researcher suggested the null hypotheses following:

 There is no relationship between customer’s intention for purchasing via TV homeshopping and customer’s age

 There is no relationship between customer’s intention for purchasing via TV homeshopping and customer’s sex

 There is no relationship between customer’s intention for purchasing via TV homeshopping and customer’s occupation

 There is no relationship between customer’s intention for purchasing via TV homeshopping and customer’s education

Study the problem “What are the factors that influence the level of customer acceptance for TV homeshopping?” aimed to find the factors that influence directly the

level of customer acceptance for TV homeshopping Base on this, researcher intended to build the model of TV homeshopping Accordingly, researcher proposed a theoretical

model for study of this problem as Figure 2a following:

Figure 2a: Theoretical model for the factors that influence the level of customer’s

acceptance for TV homeshopping

Level of customer’s acceptance for TV homeshopping model

This study focused on the factors that influence the level of customer acceptance for TV homeshopping model Researcher supposed that the level of customer acceptance for this model was influenced by three main factors, including customer satisfaction, customer trust and customer attraction Accordingly, the factors that influenced the level

of customer acceptance for TV homeshopping model were demonstrated under the equation as following:

ACE =β0+ β1*SAT+ β2*TRU + β3*ATT (1), Where:

- β0: the constant that presented the mean of ACE when coefficients of independent factors of equation were 0

- βi (i=1,n): the regression coefficients of independent factors corresponding to FAC, TRU, ATT

- ACE: the dependent variable of equation of the customer acceptance level for TV homeshopping model

- SAT: the independent variable that presented the customer satisfaction for TV homeshopping model

- TRU: the independent variable that presented customer trust for TV homeshopping model

- ATT: the independent variable that presented customer attraction for TV homeshopping channel

Thus, The researcher suggested the hypotheses as the following:

ᵃ1: The more customers’ are satisfied with the TV homeshopping model, the higher level

of customer acceptance for TV homeshopping increases

ᵃ2: The more customers’ trust the TV homeshopping model, the higher level of customer acceptance for TV homeshopping increases.

ᵃ3: The more customers’ are attracted to the TV homeshopping channel, the higher level

of customer acceptance for TV homeshopping increases

As discussed above, building a model of TV homeshopping is building an factors matrix that influenced the level of customer acceptance for TV homeshopping Above problem, researcher found the factors that influenced directly the level of customer

acceptance Study of the problem “What model of TV homeshopping for the Vietnam market could be proposed?” researcher aimed at finding the factors that influence the

customer satisfaction (SAT), customer trust (TRU), and customer attraction (ATT) It means that customer satisfaction, customer trust, and customer attraction are the dependent variables Accordingly, dependent variables SAT, TRU, ATT are demonstrated under the mathematical functions that correspond to ᵅᵄᵃᵄ, ᵅᵄᵄᵄ, ᵅᵃᵄᵄ Thus, researcher proposed the model of TV homeshopping as:

ACE = β0 + β1*ᵅᵄᵃᵄ(PRC,QLY,SEV,PRM,REL) + β2*ᵅᵄᵄᵄ(POL,BRD,INF,SEC,CON) + β3*ᵅᵃᵄᵄ(PGM,LOC,TOC) (1), Where:

- β0: the constant that presented the mean of ACE when coefficients of independent factors of equation were 0

- βi (i=1,n): the regression coefficients of independent factors corresponding to ᵅᵄᵃᵄ,

ᵅᵄᵄᵄ, ᵅᵃᵄᵄ

- ACE: the dependent variable of equation of the Model of TV homeshopping

- ᵅᵄᵃᵄ(PRC,QLY,SEV,PRM,REL) is a function of customer satisfaction that depended

on variables including product price (PRC), product quality (QLY), service quality (SEV), promotion program (PRM), and reliability (REL)

- ᵅᵄᵄᵄ(POL,BRD,INF,SEC,CON) is a function of customer satisfaction that depended

on variables including sales policy (POL), company’s brand (BRD), publicity information (INF), personnel information security (SEC), and shopping convenience (CON)

- ᵅᵃᵄᵄ(PGM,LOC,TOC) is a function of customer satisfaction that depended on variables including content of program (PGM), TV channel location (LOC), and TV channel occupancy (TCO)

In order to implement this research, a research model was created by the researcher as

Figure 2b below:

ᵃ2ᵄ

ᵃ2 Level of customer’s

acceptance for TV homeshopping model

ᵃ2ᵄ

Service quality

Customer Satisfaction

Channel location

Channel

occupancy

Sales policy Publicity formation

ᵃ2ᵅReliability

ᵃ1ᵅ

Figure 2b: Theoretical model for Model of TV homeshopping

Customer satisfaction

Researcher supposed that customer satisfaction is influenced by five factors, including product price, product quality, service quality, promotion program, model reliability It means the customer satisfaction for TV homeshopping model was demonstrated under the equation as following:

ᵅᵄᵃᵄ = α0 + α1*PRC + α2*QLY + α3*SEV + α4*PRM + α5*REL (2), Where:

- α0: the constant that presented the mean of customer satisfaction (SAT) when coefficients of independent factors of equation were 0