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VIETNAM NATIONAL UNIVERSITY HOCHIMINH CITY

INTERNATIONAL UNIVERSITY
SCHOOL OF BUSINESS

EXAMINING FACTORS AFFECTING


YOUNG CUSTOMERS ONLINE PURCHASE
INTENTION VIA SOCIAL MEDIA WEBSITES
In Partial Fulfillment of the Requirements of the Degree
BACHELOR OF ARTS in BUSINESS ADMINISTRATION

Students name: NGUYEN NGOC THANH TRUC (BABAIU10085)


Advisor: NGUYEN THI HUONG GIANG, MBA

HO CHI MINH CITY, VIETNAM


2014

EXAMINING FACTORS AFFECTING


YOUNG CUSTOMERS ONLINE PURCHASE
INTENTION VIA SOCIAL MEDIA WEBSITES
APPROVED BY: Advisor

APPROVED BY: Committee 13,

_____________________

_____________________

MBA Nguyen Thi Huong Giang

Pham Hong Hoa, Ph.D

_____________________
Nguyen Thi Huong Giang, MBA

_____________________
Charles Leonard Wilson, Ph.D

_____________________
Nguyen Quang Trung, Ph.D

THESIS COMMITTE

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ACKNOWLEGMENTS
First and foremost, I would like to express my greatly appreciation to my advisor,
MA. Nguyen Thi Huong Giang, who are willing to spend time, contribution, and effort to
guide and support me a lot for my research.

Secondly, I would like to give my appreciation to my friends, and beloved


brother, for supporting and reminding me all the time to stay focus on my thesis. Special
thanks to Mr. Thanh Luan, Ms. Thu Thao, Ms. Thuy Tien, and Mr. Duc Tien for
spending time on listening to my problem and helping me to solve it.

Thirdly, this thesis is the result of my four year studying in International


University which I could apply my knowledge from Business Administration to the
practical field. I would like to express many thanks to all teachers who taught me many
valuable things.

Finally, although there were many problems appeared during doing the research
that I thought I might give up. There are two important people who are who are always be
there and give me encouragement and motivation to going through all the research for the
long period of times. I would honestly express my thanks to my parents who give me the
strength to follow my passion and chase my dream.

Sincerely thank you all!

TABLE OF CONTENTS
ACKNOWLEGMENTS .................................................................................................... I
LIST OF TABLES..VI
LIST OF FIGURES.VIII
ABSTRACT...X
CHAPTER 1: INTRODUCTION.................................................................................... 1
1.1. BACKGROUND OF RESEARCH .................................................................................... 1
1.2. RATIONALE AND PROBLEM STATEMENT ................................................................... 3
1.3. RESEARCH QUESTIONS .............................................................................................. 4
1.4. RESEARCH OBJECTIVES ............................................................................................. 5
1.5. SCOPE AND LIMITATIONS .......................................................................................... 5
1.6. SIGNIFICATION AND IMPLICATION ............................................................................. 6
1.7. STRUCTURE OF THE STUDY ........................................................................................ 6
CHAPTER 2: LITERATURE REVIEW ....................................................................... 8
2.1. SOCIAL MEDIA FOR E-COMMERCE ............................................................................ 8
Youtube ....................................................................................................................... 9
Facebook .................................................................................................................... 10
Zing me ...................................................................................................................... 10
2.2. CONSUMER PURCHASE INTENTION ........................................................................... 11
2.3. TECHNOLOGY ACCEPTANCE MODEL (TAM)........................................................... 13
2.3.1. Perceived Usefulness ....................................................................................... 15
2.3.2. Perceived Ease of Use ..................................................................................... 16
2.3.3. Subjective Norm .............................................................................................. 16
2.4 EWOM IN SOCIAL MEDIA WEBSITE .......................................................................... 17
2.5. HYPOTHESES AND RESEARCH MODEL ..................................................................... 19
CHAPTER 3: METHODOLOGY ................................................................................ 20
3.1. RESEARCH PROCESS ................................................................................................ 20
3.2. RESEARCH APPROACH ............................................................................................. 21
3.3. RESEARCH DESIGN .................................................................................................. 22
3.4 QUANTITATIVE APPROACH ....................................................................................... 23
3.4.1. Data Sampling ................................................................................................. 23
Target population:...................................................................................................... 23

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3.4.2 Data collection .................................................................................................. 24


3.4.3 Measurement scale ........................................................................................... 25
3.4.4 Data analysis ..................................................................................................... 28
CHAPTER IV: DATA ANALYSIS & FINDING ........................................................ 30
4.1 SAMPLE DEMOGRAPHIC ............................................................................................ 30
4.1.1 Characteristic of the sample ............................................................................. 30
4.1.2 Overall usage social network website among respondents .............................. 35
4.2 DESCRIPTIVE STATISTIC ........................................................................................... 38
4.2.1 Perceived Usefulness ........................................................................................ 39
4.2.2 Perceived Ease of Use ...................................................................................... 40
4.2.3 Subjective Norm ............................................................................................... 41
4.2.4 eWord of Mouth ............................................................................................... 41
4.2.5 Purchase Intention ............................................................................................ 42
4.3 RELIABILITY TEST OF MEASUREMENT SCALE BY CRONBACHS ALPHA COEFFICIENT 43
4.3.1 Purchase Intention ............................................................................................ 43
4.3.2 Perceived Usefulness ........................................................................................ 44
4.3.3 Perceived Ease of Use ...................................................................................... 46
4.3.4 Subjective Norm ............................................................................................... 47
4.3.5 e Word of Mouth .............................................................................................. 47
4.4 FACTOR ANALYSIS ................................................................................................... 49
4.4.1 Factor Analysis for dependent variable ............................................................ 49
4.4.2 Factor Analysis for independent variable ......................................................... 51
4.5 MODEL REVISION ..................................................................................................... 57
4.6 PEARSON CORRELATION .......................................................................................... 59
4.7 REGRESSION ANALYSIS ............................................................................................ 60
4.8 QUALITATIVE ANALYSIS AND FINDINGS ................................................................... 64
4.8.1 Qualitative analysis for first in-depth interview ............................................... 64
4.8.2 Qualitative analysis for final in-depth interview .............................................. 65
CHAPTER V: CONCLUSION AND RECOMMENDATION .................................. 68
5.1 SUMMARY OF RESEARCH FINDINGS .......................................................................... 68
5.2 RECOMMENDATIONS ................................................................................................ 69
LIST OF REFERENCE ................................................................................................. 72
LIST OF APPENDIX ..................................................................................................... 75

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LIST OF TABLES

Table 2: Summary of Respondents Gender ..................................................................... 31


Table 3: Summary of Respondents Age .......................................................................... 32
Table 4: Summary Respondents Occupation................................................................... 33
Table 5: Summary of Respondents Income ..................................................................... 34
Table 6: Summary of Respondents Purchase Intention on buying things on SNS.......... 36
Table 7: The summary of coded variables in the questionnaires ...................................... 38
Table 8: Descriptive Statistics of Perceived Usefulness ................................................... 39
Table 9: Descriptive Statistics of Perceived Ease of Use ................................................. 40
Table 10: Descriptive Statistics of Subjective Norm ........................................................ 41
Table 11: Descriptive Statistics of e Word of Mouth ....................................................... 42
Table 12: Descriptive Statistics of Purchase Intention ..................................................... 43
Table 13: Reliability Statistics of Purchase Intention ....................................................... 44
Table 14: Item-total statistics of Purchase Intention......................................................... 44
Table 15: Reliability Statistics of Perceived Usefulness .................................................. 44
Table 16: Item-total statistics of Perceived Usefulness .................................................... 45
Table 17: Reliability Statistics of Perceived Ease of Use ................................................. 46
Table 18: Item-total statistics of Perceived Ease of Use................................................... 46
Table 19: Reliability Statistics of Subjective Norm ......................................................... 47
Table 20: Item-Total Statistics of Subjective Norm ......................................................... 47
Table 21: Reliability Statistics of e Word of Mouth ......................................................... 48
Table 22: Item-Total Statistics of eWord of mouth .......................................................... 48
Table 23: KMO and Bartlett's Test for dependent variable .............................................. 49
Table 24: Total Variance Explained ................................................................................. 50

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Table 25: Factor Matrixa ................................................................................................... 50


Table 26: KMO and Bartlett's Test for independent variables ......................................... 51
Table 27: Rotated Factor Matrixa for independent variables ............................................ 51
Table 28: KMO and Bartlett's Test ................................................................................... 57
Table 29: Total Variance Explained ................................................................................. 54
Table 30: Rotated Factor Matrixa...................................................................................... 58
Table 31: Cronbachs Alpha after Factor Analysis of Independents Factor ..................... 57
Table 32: Revision variables code .................................................................................... 57
Table 33: Correlations between independent factors and dependent factor ..................... 59
Table 34: Model Summaryb .............................................................................................. 61
Table 35: ANOVAa ........................................................................................................... 61
Table 36: Coefficientsa...................................................................................................... 62
Table 37: Ranking of main factors in the research ........................................................... 62

LIST OF FIGURES

Figure 1: Internet user growth 2000 2010 in selected Asia countries.............................. 2


Figure 2: Situation of Internet using in Vietnam (10-2012) ............................................... 3
Figure 3: Kollat and Blackwell model of buying process ................................................ 11
Figure 4 : Schematics of the theory of reasoned action (TRA) ........................................ 14
Figure 5: Framework of the Technology Acceptance Model (TAM)............................... 15
Figure 6: E.W.K See-To and K.K.W. Ho model .............................................................. 18
Figure 7: eWOM effects on Purchase Intention ............................................................... 18
Figure 8: Conceptual Framework ..................................................................................... 19
Figure 9: Research Process ............................................................................................... 20
Figure 10: Research Approach.......................................................................................... 22
Figure 11: Summary of Respondents Gender.................................................................. 31
Figure 12: Summary of Respondents Age ....................................................................... 32
Figure 13: Summary of respondents occupation ............................................................. 33
Figure 14: Summary of respondents Income ................................................................... 35
Figure 15: Summary of Respondents' Purchase Intention ................................................ 36
Figure 16: Percentage of Social network sites usage ........................................................ 37
Figure 17: Percentage of products selling on SNSs .......................................................... 38
Figure 18: Final model with coefficient............................................................................ 63

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ABSTRACT
This study is aimed to examine factors affecting young customers online
purchase intention via social media websites. Researcher used The Technology
Acceptance Model which suggests two main factors including Perceived Usefulness and
Perceived Ease of Use; the Theory of Reasoned Action which add in one factor
Subjective Norm and e-word of mouth (eWOM) factor in order to develop the conceptual
framework.

Both quantitative and qualitative methods are applied. In quantitative method,


questionnaire was employed to collect data 200 young customer (from 18 to 35 years old)
in Ho Chi Minh City. Data was analyzed by Using SPSS software included Cronbach
reliability test, Factor analysis, Multiple regressions to test the relationship among these
factors with students purchase intention. After analyzing the data, qualitative analysis
was applied to confirm quantitative finding to explore some hidden issues through group
focus method.

Keywords: Social media, Technology acceptance model (TAM), Theory of


reasoned action (TRA), customer purchase intention, SPSS, eWord of Mouth

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CHAPTER 1
INTRODUCTION

This chapter provides the general view of the whole thesis including background,
rationale, problem statement, research questions, objectives, scope of the study and
limitations. Moreover, in the end of the chapter, structure of the study is defined.

1.1. Background of Research

The context of the research is chosen as Vietnam, since the country has reached
36% Internet penetration rate with more than 30 million people using it (VNNIC 2012).
According to Undersecretary Le Nam Thang, Vietnam is ranked 3rd among the rest
countries in Southeast Asia in term of Internet infrastructure and services. Using the
Internet is easy which is available anywhere and anytime by adequate high technology
such as 3G network, satellite, optical fiber with suitable price. Additionally, according to
internetworldstats, Vietnam is the country has highest Internet usage growth rate in Asia
from 2000 2010 (internetworldstats, 2010)

Figure 1: Internet user growth 2000 2010 in selected Asia countries


(Source: www.internetworldstats.com, 2010)
Vietnam government issued document 33/2006/Q-TT in February 2006 to
expand Internet using among Vietnamese and guarantee 100% universities, colleges, and
high schools have the Internet connection. According to Vietnam Internet Network
Information Center (VNNIC), there are more than 31 million Vietnamese are using
Internet, which account for nearly 36% of the total population. Moreover, according to
WeAreSocial, there are 73% of Internet users are below 35 year old, 66% of Internet
users are using the Internet everyday with average 29 hours a month, and 86% of Internet
users have at least one time visit some social media websites.

Figure 2: Situation of Internet using in Vietnam (10-2012)


(Source: WeAreSocial, 2012)

1.2. Rationale and Problem Statement

Social media marketing is many more different than traditional methods of


marketing; therefore, it requires specific strategy building to achieve customer purchase
intention. In term of social media usage, it can be seen that YouTube is used the most in
Vietnam, following by Facebook, Zing me, Yahoo plus, Go.vn, Clip.vn, Flickr, and so
forth. According to the survey Vinalink Media on June, 2011, YouTube exert a 70%
penetration among the Internet usage in Vietnam, Facebook (65%), Zing me (59%),
Yahoo Plus (25%)

Different to other websites, the advertisements on Facebook minimize garish


color and appear in suitable and fit with style of page that would not accidentally annoy
users. In addition, it is easy to create Facebook Advertising. Each user has a personal

page on Facebook which can connect with fan page of any brand names they interest in.
By that way the user will regularly update information about the brand and the
organization can catch huge number of viewer just by a click. In fact, Coca-Cola attracted
79 million people, Starbucks 36 million (Vinalink Media, 2011). Therefore, marketers are
eager to define those relevant factors could affect customer purchase intention for one
product through social media websites.

With a limitation of research study about developing countries, this study attempts
to investigate the customer purchase intention via social media website in the context of
one city of Vietnam. That is the reason why I choose this topic: Examining factors
affecting young customers online purchase intention via social media websites.

1.3. Research Questions


The purpose of this research is to examine factors affecting young customers
online purchase intention via social media websites. In order to fulfill the main purpose,
three key research questions are proposed:

Research question 1: What is the overall usage of social media websites among
young customer in Ho Chi Minh City?
Research question 2: What are determinant factors that affect young customers
purchase intention via social media websites?

Research question 3: How statistically significant do these factors affect young


customers purchase intention via social media websites?

Research question 4: What are some recommendations for some companies that
advertise on social media websites to increase their customers purchase intention,
especially young consumer?

1.4. Research Objectives

1. To examine the overall usage of social media websites among young customer
in Ho Chi Minh City
2. To find out factors that affect young customers purchase intention via social
media websites
3. To evaluate the impact of different factors on young customers purchase
intention via social media websites
4. To propose recommendations for companies to increase young customers
purchase intention through social media websites

1.5. Scope and Limitations

This research will be conducted in the scale within college and universities in Ho
Chi Minh City. Thus, the results cannot illustrate the overall effect of social media
websites on Vietnam young customers purchase intention.

The study was limited on young customers because they are easily influenced by
new technology as well as trends and lifestyles. Due to high disposable income, young
people tend to have the highest purchasing power than the other age group (Suadmalai,
2006). The group of major customer this research focuses on is between 18 to 35 years
old.

1.6. Signification and Implication

This research is expected to bring several significances as below:


To the researcher: This research is a chance for me to apply all the theories I
have learn during university time to practical. In addition, I would gain deeply
understanding of the field social media in business that I am interacting with every day.
Moreover, after doing the research, I could obtain by myself huge amount of knowledge
and skill that will support much for my future career.

To the relevant companies: Instead of walking to the brick and mortar shops that
could waste times and limit the choice of customer, buying things through social media
websites would be more effective. The aim is to determine how effectiveness of selling
things on social media websites. As a result, companies can develop an appropriate
strategy to attract more customers as well as expand their market target.

1.7. Structure of the study

This study is organized as follow:


Chapter 1: Introduction: This chapter carries out the research background, research
questions, research objectives, scope, and research methodology.
Chapter 2: Literature review: Some theories and related research are addressed in this
chapter. The literature review of relationship between several factors with customer
purchase intention
Chapter 3: Methodology. It presents the design, approach, and questionnaire of the
thesis.
Chapter 4: Data analysis and discussion: This chapter will give the analysis from
collected data and state out the findings of the research

Chapter 5: Recommendations and conclusions: With final results available, this chapter
focused on giving suggestion and improvement for the related industry.

CHAPTER 2

LITERATURE REVIEW

As the purpose of understanding factors affecting student online purchase


intention via social media websites, it is necessary to look at some theories as well as
relevant research findings.

Since 1979, Michael Aldrich demonstrates the first online shopping system that
allowed customer using web browser on the Internet to purchase goods or services from a
seller. Many advantages can be seen clearly from E-commerce such as low cost, high
speed media, huge number of viewers, and various ways transmit information such as
documents, voices, films and games. With the competitive advantage of E-commerce
which is ability to create interaction among people in anytime and everywhere, makes it a
potential type of business.

2.1. Social Media for E-Commerce

According Kaplan and Haenlein (2000), social media is defined as a group of


Internet-based applications that build on the ideological and technological foundations of
Web 2.0, and that allow the creation and exchange of user-generated content. Moreover,
it increases interaction among people by sharing, creating, discussing and commenting
from any place at any time. Additionally, social media is activities, practices, and
behaviors among communities of people who gather online to share information,

knowledge, and opinions using conversational media (Safko & Brake, 2009). People
likely pay more intention on a product when they interact with the company on social
media. Businesses can promote products and services, provide instant support, and/ or
create an online community of brand enthusiasts through all forms of social media such
as social networking sites, content communities, virtual worlds, blogs, microblogging
sites, online gaming sites, social bookmarking, news sites, forums and more (Zarella,
2010; Kaplan & Haenlein, 2009; Weinberg, 2009).

The potential usage of social media in the near future or even today is tremendous
(Savage, 2010). Social media is a very important tool for marketer. Compared to the
traditional media approach, social media marketing works differently due to the same
message is directed towards many online users, which is more efficient (Thackeray,
Neiger, Hanson, Mckenzie, 2008). On the social media websites, customers can be free to
choose when and where they want to receive information. Therefore, they would not feel
frustrated with the interruption of some advertisement as those traditional media.
Moreover, the customers do not have to visit firms homepage but still can get
information about that brand via interacting with other consumer who had experience
about that product. It can be seen that the power of word of mouth is the most effective
on social media websites. The reason why word of mouth is a great marketing tool is due
to its high credibility and the fact that all people have a need for social media interaction
(Gummensson, 2008).

There are four popular social media tools that have the most users in Vietnam
include YouTube, Facebook, Zing me and Yahoo Plus (Vinalink Media, 2011)
Youtube

Youtube was founded in 2005 and is a famous website for entertainment where
one can, in effective way spread information through the use of video, audio and text to
the world (www.youtube.com). Moreover, it allows users to rate and comment on each
post. There are more than 1 billion unique users visit YouTube each month, over 6 billion
hours of video are watched each month on YouTube. It creates a huge advantage for
company to broadcast video of their products and services.

Facebook

Facebook is a new face of e-commerce in the twenty-first century by providing


new value of services to Internet users to express themselves and network with others
(Laudon, 2010). Users have to register to start using the site. They will begin with
personal profile, add friends (other users), send and receive messages and automatically
receive notifications when their friends or they update profile. Therefore, a company can
create their own fan page and attract customer to like the page then inform news of
product and service continually to customer. The page is flexible with several ways to
transform information such as documents, photos, and videos. Customer can press like
button with the post they feel interested with or share that post on their own page to their
friends. By that function, a piece of information can catch much attention in just few
minutes. According to AdAge, there are 80% of large American corporation are using
Facebook for advertising include Johnson & Johnson, Nike, Coca Cola

Zing me

Zing me is one of the most popular social website in Vietnam according to Alexa.
With the same function as Facebook, Zing me create a friendly environment for people to
interact, communicate, share, and talk. Zing Me was founded by Vinagame in 2009,

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focuses on several important function of social media website such as add friend, online
chat, blog, and club. Additionally, members can participate in forum, listen to music,
watch movie, share pictures and play online games. Advertising on Zing me can
influence huge amount of Vietnamese customer especially youth.

2.2. Consumer purchase intention


To examine consumers behavioral patterns, purchase intention has been used to
predict actual behavior (Ajzen & Fishbein, 1980). According to Peter & Olson, customer
as a decision maker probably assumes that options such as products or services are their
problem solving. The steeps of consumer purchasing process are problem recognition,
search for alternative solution, evaluation of alternatives, purchase, and post purchase and
reevaluation of chosen alternative (Blackwell, 2006)

Figure 3: Kollat and Blackwell model of buying process (Blackwell, 2006)

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The five steps are included in decision making process are described as below:
1. Problem recognition:
In this stage, customers realize the difference among his or her actual state and
what the ideal state should be. Customers are continuously stimulated to various
information of products such as advertisement on television, magazine, social media,
(Blackwell, 2006)

2. Information search:
Customers select and store information which is consistent to their beliefs and
attitudes. Since they get exposed to various stimuli, they would use their basement
knowledge of the products or services from memory of past experience to continue
evaluating process. Therefore, some information that does not fulfill their need will be
rejected (Blackwell, 2006)

3. Alternative evaluation:
On this stage, alternative brands will be evaluated. The way of evaluating process
depends on their goals, motives and personality. This is the time customers create their
determination among different brands. In the case that customer is not sure whether to
buy, they would turn back to Information search stage (Blackwell, 2006)

4. Choice:
On this stage, customer choice is decided by anticipated circumstances and
normative compliance such as friends and family members saying (Blackwell, 2006)

5. Outcome:
The outcome expresses the result of whole process which can be positive or
negative (Blackwell, 2006)

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The purchasing behaviors of customers are strongly influenced by the information


and the services that are provided by website (Taecho Hong 2011). Taeho Hong used
customer segmentation methods to establish different strategies to maximize customers
value.

2.3. Technology Acceptance Model (TAM)

According to Fishbein and Ajzen (2002), individual behavior is driven by


behavioral intentions. They developed the theory of Reasoned Action in which consumer
behavior is highly focused. They want to identify some factors would affect customer
behavior during using an innovation which is determined by their intention to use it

Specifically, the behavioral intention is affected by attitude towards act or


behavior and the subjective norm surrounding. Finally, the performance of behavior
which is the actual use of an innovation is determined by their intention to use it. The
Attitude towards an act or a behavior is defined as personals feeling toward performing
behavior which can be positive or negative. It can be seen as their beliefs whether he or
she should or should not perform that behavior (Sin, 2012). Subjective norm is defined as
an individuals perception of whether people important to the individual think the
behavior should be performed (Venkatesh & Morris, 2000)
To simplify the definition, a persons volitional (voluntary) behavior is predicted
by his or her attitude toward that behavior and how he or she thinks other people would
view them if they performed the behavior.

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Figure 4 : Schematics of the theory of reasoned action (TRA)


(Fishbein & Ajzen, 2002)
However, the theory has some limitation included there are relationships among
attitude and norm that attitude can establish norm and vice versa that could not be seen as
two separated factors. Secondly, there are some other factors of environment that can
affect intention to behave such as ability, time, environmental or organizational limits, or
habbits.

Therefore, Davis proposed Technology Acceptance Model (TAM) which is based


on TRA and assuming that individuals behavioral intention is determined by two major
variables which are perceived usefulness and perceived ease of use. The main purpose of
TAM is to examine the impact of external variables on internal beliefs, attitudes and
intentions.

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In this research, TAM is the major framework using to examine those factors
affecting college student online purchase intention. The two main variables include
Perceived Ease of Use and Perceived Usefulness. Subjective norm was added in the
research model as and additional variable.

Figure 5: Framework of the Technology Acceptance Model (TAM)


(Davis, 1989).

2.3.1. Perceived Usefulness


Perceived Usefulness is defined as the degree to which a person believes that
using particular system would enhance his or her job performance (Davis, 1989).
According to Davis, when people first meet a new technology, they tend to use or not use
an application to the extent they believe it will help them perform their job better. This

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determinant is first used by Schultz and Slevin in 1975 on interpreting the effectiveness
of managers job performance with the help of new technology.
There are three main clusters in perceived usefulness group including job
effectiveness, productivity and time saving, and how important of the system to ones
job. More specifically, job effectiveness is described by level of performance, level of
effectiveness after using the technology. Productivity and time saving include level of
time saving, how quick the job can be done, number of tasks accomplished, unproductive
time cut. Finally, how important of the system to ones job is expressed by the jobs
difficulty without that system, how the system could help on deciding critical thing, how
the system could make purchasing process seems easier.

2.3.2. Perceived Ease of Use


This is the second variable in the research model which refers to the degree to
which a person believes that using a particular system would be free of effort (Davis,
1989). After the user believe the application is useful, they may perceive that system is
too hard that they have to make huge effort which can be more than their performance
benefit.
The three main clusters in perceived ease of use group are physical effort, mental
effort and how easy a system is to learn. Physical effort can be described as the flexibility
of the system, the level of customers controllability during using. Mental effort includes
the level of confusing, level of frustrating, and level of understandable during using the
system. Finally, how easy a system is to learn can be seen as the level of customers
dependence, ease of remembering, and how helpful is the guidance.
2.3.3. Subjective Norm
Subjective Norm is the third variable of proposed research model. It was derived
from TRA. According to Venkatesh and Morris, subjective norm or social influence is

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the degree of a persons perception that people who are important to him or her think he
or she should or should not perform the behavior in question. The theory predicts
intention to perform a behavior by consumers attitude toward that behavior rather than
by consumers attitude toward a product or service. Also, a consumers intention to
perform a certain behavior may be influenced by the normative social beliefs help by the
consumer (Hansen, 2004). Subjective norm can be seen as the influence of members of
family, or friends, or acquaintances on consumer purchase intention. According to the
survey of eMarketer posted on January 2014, there are 68% of people among 18-34 year
olds were influenced to buy goods or services what is posted buy their friends.
2.4 eWOM in Social media website
No one can deny the impact of Word of mouth on customers trust on a firm and
its product. It can be seen clearly in your daily life, when a customer gives a positive/
negative comment on a product would influence other customer decision on whether to
buy that product. According to See-To and Ho research in 2014, e WOM can affect
purchase intention through several channels, including direct impact, moderates by
different aspects of trust (institutional-based trust and trusting beliefs); and moderates by
the value co-creation process. Moreover, they also suggest that the message source of
eWOM in SNS fans pages also moderates the impact of eWOM on the constructs
mentioned

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Figure 6: E.W.K See-To and K.K.W. Ho model, 2014

This research adapt a part of See-To and Ho model that eWOM in Social network sites
has direct impact on customer purchase intention. According to prior studies result, it is
suggested that when a potential consumer noted that there is a large quantity of positive
eWOM about the product sold by a rm, she will developa positive expectation about the
quality of the product and the service to be provided by the rm. This positive
expectation will lead her to feel condent to purchase this product from that rm. Thus,
consumers trust on a product generated by eWOM leads to an increase of purchase
intention (Gefen, Karahanna, & Straub, 2003; Kim, Ferrin, & Rao, 2009; Sia, 2009)
Purchase Intention

eWOM

Figure 7: eWOM effects on Purchase Intention

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Figure 8: Conceptual Framework

2.5. Hypotheses and Research Model


H1: There is a positive relationship between Perceived Ease of Use and Purchase
Intention through social media websites

H2: There is a positive relationship between Perceived Usefulness and Purchase


Intention through social media websites

H3: There is a positive relationship between Subjective Norm and Purchase


Intention through social media websites

H4: There is a positive relationship between eWOM and Purchase Intention


through social media websites

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CHAPTER 3

RESEARCH METHODOLOGIES

In this part, researcher would like to state out the process, approach and design
of the research before moving to sampling selection and data collection method session
3.1. Research Process

Figure 9: Research Process


The research process commonly starts with stating research aim and objectives
before heading to the stage of literature review where the supportive theories and related

20

knowledge will be studied and used to conduct the research. After designing stage, data
collection is on. It is processed based on two main phases which are also three research
objectives
-

To accomplish the objective of exploring the overall usage of social media

websites among young customer, the qualitative approach is used via in-depth interview
with young customer
-

To evaluate the impact of different factors on young customers purchase

intention use both quantitative and qualitative approach. The in-depth interview will be
conducted after finding result from quantitative method with 10 students and officers to
get their personal opinion.
-

With the support from SPSS software and other evaluation method, data

will be well analyzed before moving to the step of giving conclusion about customer
purchase intention. Finally to enhance the effectiveness of each factor to customer
purchase intention, the research will give some related recommendation.

3.2. Research Approach


Both Qualitative and Quantitative approach are used in this study. However
quantitative is the main approach because the purpose of this research is to examine those
factors affect young customers purchase intention via social media websites.
Qualitative: using group focus method with about 10 students and officers to
understand some main factors are affecting college student purchasing intention when
they visit to social media websites
Quantitative: using survey to figure out the level of each factor would affect to
young customers purchase intention via social media website.

21

Population: young customer in Ho Chi Minh City, who already had account on
one of popular social media website such as Youtube, Facebook, or Zing me.
Survey: 200 people
Qualitative: using in-depth interviews with 10 students and officers from the
focus group to understand individual perception those main factors finding from
quantitative method
Model of Research Approach

Figure 10: Research Approach

3.3. Research Design


To achieve the objectives of this research, exploratory and descriptive are applied.
Exploratory study is the design in which the major emphasis on gaining ideas and
insights (Sreejesh, Sanjay & Anusree, 2013). This study is used under the form of
reviewing literature and in-depth interview with some students to develop a better
understanding of the research subject and collect information to design questionnaire.
Descriptive study emphasis on determining the frequency with which something
occurs or the extent to which two variables co-vary (Sreejesh, Sanjay & Anusree, 2013).
Therefore it should be considered as the main way to collect primary data. Data collected
will be then processed by Statistical Package for Social Sciences (SPSS) software.

22

3.4 Quantitative approach


3.4.1. Data Sampling
Target population:
In order to examine factors affecting young customers online purchase intention,
survey would be conducted college student which are diversely chosen following these
criteria:
-

People who live in Ho Chi Minh City

Both male and female

Young customer with age from 18 to 35 years old

Already used social media websites or have at least an account on social media
websites
Sampling Method:
With an expectation of obtaining information quickly, inexpensively and as

accurately as possible and due to difficulty of developing a sampling frame, nonprobability sampling is chosen to avoid the cost and hidden bias responses. Mixedsampling procedure may be applied to gain the most efficient data collection.
Interviewees are strictly in the target population. They may recommend others which
satisfy the sample criteria. However, quota sampling is preferred to make sure that the
chance of being interviewed among college student is equal. Due to the differences in
size between those universities, the number of interviewee is spread among these
universities and places depending on its size in number of students. In specific, the
distribution of students from universities interviewed is as follow:

Students in four universities namely International University, Foreign Trade


University, University of Science and University of Economics and Law: 150 surveys

23

Office staff from two companies, namely Bibica corporation and Phuong Bac Ltd
and sale person in two supermarket including big C Hoang Van Thu, Coop mart Cong
Hoa: 60 surveys.
The interviewer approached respondents and requested them to participate
voluntarily int the survey.

Sample size
According to Hair (1998), to conduct exploratory factor analysis (EFA), it should
be collected 5 samples for each item which means that N=5*x (N: sample size, x: number
of items). This research includes 34 items so the minimum sample size is 170 to
implement regression analysis in the best way. Besides, according to MacCallum, the
adequacy of sample size might be evaluated very roughly on the following scale: 50-very
poor, 100-poor, 200-fair, 300-good. Therefore, depend on researcher time and finance
also, the acceptable sample size for this research is 200. Moreover, in order to avoid some
invalid survey, the researcher plans to spread out 210 surveys
In a total 210 surveys were distributed. The interviewer received back 210 results
(100%). However, after serious consideration, there are 10 surveys was invalid and
deleted due to missing data or illogical answers. Finally, there are 200 usable
questionnaires that were using to conduct further analysis.

3.4.2 Data collection


Phase 1: Pilot interview
Before spreading out the questionnaire, researcher used pilot test in order to find
out any mistakes or respondents misunderstanding of the questionnaire. The test has
been conducted with the sample of 10 students at International University. This small size
is suggested by Fink 2003 and Saunders et al 2006 that the minimum of ten members for
pre testing is adequate. After the test, the final questionnaire has been constructed with

24

good layout, easy to understand, non-offensive and logical items, and able to elicit
willingness to answer in respondents.

Phase 2: Questionnaires
On the next stage, the researcher implemented questionnaire by two ways
including giving out directly to respondents and indirectly by email and Facebook. The
questionnaire was carried out to universities and companies from April 1 st to April 12th,
2014. With the direct questionnaires, by using self-administrated survey that the
respondents complete the questionnaire on their own to ensure the validity of each
answer and eliminate the bias from interviewees response. Besides, with the indirect
questionnaires, the researchers used Google documents to create e-form which has eyecatching layout and easy to understand structure. After that, the researcher posted the link
of e-form to Facebook or sent it via email. By this way, the respondents were voluntarily
doing the survey that enhances the validity of results.

Phase 3: Final in-depth interview


The interview is conducted to validate findings from survey analysis. Research
had an interview with 5 random customers to get the insight for each factors

3.4.3 Measurement scale

The study is conducted to examine the relationship among factors of social


network sites and purchase intention that adapted from See Siew Sin study. Therefore,
the measurement scale using in this research mainly based on measurement scale of See
Siew Sin (2012). The items are mainly taken from the origin study in TAM and TRA
model of Davis (2008) and add in some other items based on the result of pilot interview,
in order to suit with specific situation of researching place and time. 5-point Likert scale

25

is used to measure the different impact of each items on customer perception (1 =


strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, 5 = strongly agree). The
respondents are asked to indicate the level of agreement with a series of short statement
on a given five point range (Bouma & Atkinson, 1995).

From the literature review, the research conceptual framework state out 4
factors affecting young customer purchase intention namely Perceive Usefulness (PU),
Perceive Ease of use (PE), Subjective norm (SN), and eWord Of Mouth (WM)

Table 1: Coding variables


Coding

Content

PERCEIVED USEFULNESS
PU1

Social network sites (SNSs) improve my purchasing decision making


process

PU2

I find it is effective (less effort) to purchase things on SNSs

PU3

The quality of the product is better when using SNSs for purchasing
compare to physical store

PU4

The price of the product is more reasonable when using SNSs for
purchasing compare to physical store

PU5

When using SNSs for purchasing, I can easily compare the offerings
among similar products to have the best decision

PU6

SNSs offer me more sale promotions than going to the physical store

PU7

SNSs is easier to make transaction compare to physical store

PU8

SNSs save my time choosing and ordering products

PU9

SNSs respond quickly to customer requests or questions

PU10

I am able to track my order status on SNSs

PU11

SNSs make me feel more comfortable than physical store

26

PERCEIVED EASE OF USE

PE1

SNSs are easy to interact with (login, create account)

PE2

It is easy to search items I want on SNSs

PE3

The advertisements on SNSs are always understandable

PE4

SNSs provide adequate information for customer to make purchase (the


way of transaction, contact detail)

PE5

SNS provides me relevant information about each product (size,


quality, price, color)

PE6

Sites design is attractive

PE7

SNSs provide me with better customer service (greetings, product


consultation, customer supports and timely response to inquiries)
compare to physical store

PE8

SNSs protect my personal information (address, phone, bank account


number)

SUBJECTIVE NORM

SN1

Members of my family think that it is a good idea to buy things from


SNSs

SN2

Most of my friends think that buying things from SNSs is a good idea

SN3

Most of my colleagues think that buying things from SNSs is a good


idea

SN4

Members of my family expect me to buy things from SNSs

SN5

My friends expect me to buy things from SNSs

SN6

My colleagues expect me to buy things from SNSs

EWOM

27

WM1

I tend to purchase things from SNSs after reading good comments from
products fanpage

WM2

From the products fanpage, I can see how the company cares and
interested in customers well-being that create my trust about the
product

WM3

I always read comments of other users on products fanpage before


purchasing a product

WM4

I always be attracted by my friends commenting/sharing about a


product on SNSs that affect my trust about the product

INTENTTION TO PURCHASE

PI1

I consider using SNSs for purchasing things

PI2

I willing to use SNSs for purchasing things

PI3

I prefer to use SNSs for purchasing things

PI4

I intent to purchase on SNSs

PI5

I intent to introduce SNSs to someone else I know

3.4.4 Data analysis


In the research, researcher used Statistical Package for Social Sciences (SPSS)
20 software to quantitatively analyze data. It consists of five analyses including:
Descriptive statistics, Reliability test by Cronbachs Alpha, Exploratory Factor Analysis,
Hypothesis testing with Pearsons correlations, and Regression Analysis.

3.4.4.1 Descriptive statistics


In order to describe the basic feature of data, descriptive statistics has been
applied in this study. Using numerical and graphic procedures, it summarizes a vast of

28

data in clear and understandable way. Researcher focused mainly on mean and standard
deviation to figure out the center value of distribution and dispersion level of data.

3.4.4.2 Reliability test


Reliability test is evaluated by Cronbachs Alpha to study the properties of
measurement scale and the items under that scale. According to Cavana et al. (2001), it
demonstrated the degree to which a test is consistent and stable in measuring intended
variables. The coefficient values vary from 0 to 1. Since Nunnally (1978) suggested that
if the Cronbachs Alpha is 0.6 or over is acceptable, the factor is kept, which stated the
research is reliable. However, if the value is below 0.3, the factor is removed, or some
variables must be deleted to increase its Cronbachs Alpha value.

3.4.4.3 Exploratory Factor Analysis


Factor analysis is a collection of methods for explaining the correlations among
variables in term of more fundamental entities called factors (Robert Cudeck, 2000). The
two most important indexes are the loading value of each item and Varimax rotation.
3.4.4.4 Pearsons Correlation
Pearsons Correlation is used to measure the relationship of two random
variables including independent factor and dependent factor as well as the relationship
among independent factors. The domain is [-1,1].

3.4.4.5 Regression analysis


Multiple Linear Regression analysis is a statistical tool to measure the
relationship among dependent variable and several independent variables. It also show
how much the dependent variable able to explain the dependent variable

29

CHAPTER IV

DATA ANALYSIS & FINDING

After collecting the data through questionnaire, the next stage is to analyze and
conclude those data. In this part, researcher aims to show the overall demographic of the
sample and overall usage of social media websites at first then follow up with analysis of
each factors. The main finding is to measure the relationship between those factors
provided.

4.1 Sample demographic


From 210 surveys had been given out, there are 200 valid one could be used to
process the analysis. Therefore, the usable response rate to the research interview was
95.23%. The samples demographic can be described in four categories including gender,
age, occupation, and income.

4.1.1 Characteristic of the sample


a. Gender
As showing in the table below, our sample have 123 females and 77 males among
200 valid results. The number of male is accounted for 38.5% and female is 61.5 %.
Meanwhile, the gender distribution among respondents was not evenly that female
significantly overweighed male.

30

Table 2: Summary of Respondents Gender

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Male

77

38.5

38.5

38.5

Female

123

61.5

61.5

100.0

Total

200

100.0

100.0

Percentage of sample's Gender

38%

Male
Female

62%

Figure 11: Summary of Respondents Gender

b. Age
With regard to respondents Age, researcher divided young customer target into
three categories including from 18 to 24 years old, from 25 to 29 years old, and from 30
to 35 years old. According to the table below, the vast majority is people from 18 to 24
years old accounting for 73.5%. A significantly 22% of people are from 25 to 29 years
old and a small minority of 4.5% are from 30 to 35 years old

31

Table 3: Summary of Respondents Age


Frequency Percent

Valid Percent Cumulative


Percent

Valid

18 24 147

73.5

73.5

73.5

25 29 44

22.0

22.0

95.5

30 35 9

4.5

4.5

100.0

Total

100.0

100.0

200

Percentage of sample's Age


9%
18 24

21%

25 29
30 35
70%

Figure 12: Summary of Respondents Age

c. Occupation
There were four groups of occupation including student without part-time job,
student with part-time job, Officer, and Other. The table bellows indicated that 45% of

32

respondents are student without part-time job, 32% of respondents are student with parttime job, 21% of respondents are Officer and others type of job accounting for 2%.

Table 4: Summary Respondents Occupation


Frequency Percent

Valid Percent Cumulative


Percent

Student

without

part-

90

45.0

45.0

45.0

64

32.0

32.0

77.0

Officer

42

21.0

21.0

98.0

Other

2.0

2.0

100.0

Total

200

100.0

100.0

time job
Student with part-time
Valid job

Percentage of sample's
occupation
2%

Student without parttime job

21%
45%

Student with part-time


job
Officer

32%
Others

Figure 13: Summary of respondents occupation

33

d. Income
Regarding to the income of sample, it is divided separately among five categories
namely under VND 1,000,000; from VND 1,000,000 to VND 2,000,000; from VND
2,000,000 to VND 5,000,000; from VND 5,000,000 to VND 7,000,000, and over VND
7,000,000. The percentages were 29.5% equally for both under VND 1,000,000; from
VND 1,000,000 to VND 2,000,000 groups. Subsequently, it were just above one tenth for
from VND 2,000,000 to VND 5,000,000; from VND 5,000,000 to VND 7,000,000
groups and approximately 19% of respondents have income over VND 7,000,000.

Table 5: Summary of Respondents Income


Frequency Percent

Valid Percent Cumulative


Percent

< VND 1,000,000


V
VND 1,000,000 2,000,000
a
VND 2,000,000 5,000,000
l
VND 5,000,000 7,000,000
i
> VND 7,000,000
d
Total

59

29.5

29.5

29.5

59

29.5

29.5

59.0

22

11.0

11.0

70.0

23

11.5

11.5

81.5

37

18.5

18.5

100.0

200

100.0

100.0

34

Percentage of sample's Income


< VND 1,000,000
19%
VND 1,000,000
2,000,000

29%

VND 2,000,000
5,000,000

12%

VND 5,000,000
7,000,000

11%
29%

> VND 7,000,000

Figure 14: Summary of respondents Income

4.1.2 Overall usage social network website among respondents


In this part, researcher aims to understand deeply the behavior of young customer
when using SNS for purchase things as well as fulfill the first research question: What is
the overall usage of social media websites among young customer in Ho Chi Minh
City?. The overall finding could give researcher better knowledge about sample, support
much for the conclusion and recommendation part and express the various of data among
different group of target customer.

a. Purchase Intention
Showing as the table below, with regard to the question Have you ever purchase
things on social network sites (Facebook, Twitter, Zing ) on the questionnaire. Among
200 random respondents, the vast majority of respondents give the answer Yes that was
accounted for 83% and only 17% respondents replied No.

35

Table 6: Summary of Respondents Purchase Intention on


buying things on SNS

Frequency Percent

Valid Percent Cumulative


Percent

No
Valid Yes
Total

34

17.0

17.0

17.0

166

83.0

83.0

100.0

200

100.0

100.0

Purchase Intention
17%

Yes
No

83%

Figure 15: Summary of Respondents' Purchase Intention

b. SNS usage overall

36

In respect to SNS usage among young customer, almost 200 respondents has used
facebook, google+ is ranked second with 37.5% people using. Twitter, Zing me,
Instagram is well-known for 23.5%, 20%, 16.5% respectably. Subsequently, just 5% of
respondents are using other types of SNS.

Social media websites


98

37.5
23.5

20

16.5
5.5

Fb

Google+

Twitter

Zing me

Instagram

Other

Figure 16: Percentage of Social network sites usage

c. Types of products purchasing on SNSs


Fashion is the most popular product purchased by customers via SNSs following with
cosmetic, decorating things, hand-made things, second hand things, electronic, and others

37

Types of product
120
100

97

80
60

51
40

40

31

24

23

21

20
0
Fashion

Cosmetic Decorating Handmade Second Electronic


things
hand things

Others

Figure 17: Types of products selling on SNSs

4.2 Descriptive Statistic


Descriptive Statistic in this study is used to show general observation of respondents
views toward purchasing things via SNS. The two most important values in this analysis
are Mean and Standard deviation. Mean would show the statistically center value of each
variable and standard deviation refer to the dispersion level of data. On the other hand, it
could be understand as the distance among mean value to entire set of data of each factor.
(The summary of coded variables in the questionnaires on appendix d)

On this part, researcher could give sufficient answer for the second research
question: What are determinant factors that affect young customers purchase
intention via social media websites?. Those variables among five main factors: PU
(Perceived Usefulness), PE (Perceived Ease of Use), SJ (Subjective Norm), WM (eWord

38

of Mouth) had been determined with relevant minimum value, maximum value, mean
value, and standard deviation.

4.2.1 Perceived Usefulness


Regard to Perceived Usefulness, the average value is 3.15 which tend more to
agree side. On the other hand, young customer feel satisfied while purchasing on SNS
because of its usefulness including improve purchase decision, less effort, reasonable
price, sale promotion, ext. The variable has highest mean value is SNSs save my time
choosing and ordering products that was accounted for 3.52 compare with the lowest
value is 2.67 since young customers dont agree with The quality of the product is better
when using SNSs for purchasing compare to physical store.

Table 8: Descriptive Statistics of Perceived Usefulness


N

Min

Max

Mean

Std. De

200

1.00

5.00

3.19

.959

PU2 (less effort)

200

1.00

5.00

3.51

.987

PU3 (quality better)

200

1.00

5.00

2.67

.833

PU4 (reasonable price)

200

1.00

5.00

3.11

.845

PU5 (easy to compare)

200

1.00

5.00

3.47

.971

PU6 (sale promotions)

200

1.00

5.00

3.22

.941

200

1.00

5.00

3.00

.948

PU8 (save time)

200

1.00

5.00

3.52

.934

PU9 (respond quickly)

200

1.00

5.00

3.17

.972

PU10 (able to track order)

200

1.00

5.00

2.88

.874

PU1 (improve purchasing


decision)

PU7

(easy

to

make

transaction)

39

PU11 (feel comfortable)


Valid N (listwise)

200

1.00

5.00

200

Average

2.92

.826

3.15

4.2.2 Perceived Ease of Use


The overall result for perceived Ease of Use factor is quite high satisfaction
among young customer that achieved the average mean value is 3.36. On this factor,
researcher tried to measure the leave of controllable, understandable and dependence
among young customer while using SNS. The significantly high mean value belongs to
PE1 (SNSs are easy to interact with (login, create account)) which accounted for 3.63.
In contrast, the ability to protect customer private information through SNSs is quite poor
which causes a the lowest mean value (2.87)

Table 9: Descriptive Statistics of Perceived Ease of Use


N

Min

Max

Mean

Std. De

PE1 (easy to interact)

200

1.00

5.00

3.63

.947

PE2 (easy to search)

200

1.00

5.00

3.57

.948

PE3 (understandable)

200

1.00

5.00

3.40

.902

PE4 (adequate information)

200

1.00

5.00

3.50

.913

PE5 (relevant information)

200

1.00

5.00

3.22

.983

PE6 (attractive)

200

1.00

5.00

3.43

.894

PE7 (good customer service)

200

1.00

5.00

3.27

.934

200

1.00

5.00

3.35

1.041

PE8

(protect

information)
Valid N (listwise)
Average

personal

200

3.36

40

4.2.3 Subjective Norm


There are six variables in measuring subjective norm. In general the mean value
are below the average (2.86) that indicated family, friends and colleagues of target
customer do not really satisfied with purchasing thing on SNSs. Meanwhile, only two
variable has mean value equal or above average which are SN2 (Most of my friends think
that buying things from SNSs is a good idea) and SN3 (Most of my colleagues think that
buying things from SNSs is a good idea). In contrast, the very low values belong to
family variables groups who can be seen as old generation and quite not support for
purchasing things on SNSs.

Table 10: Descriptive Statistics of Subjective Norm


N

Min

Max

Mean

Std. Dev

SN1 (family preference)

200

1.00

5.00

2.73

.847

SN2 (friends preference)

200

1.00

5.00

3.10

.870

SN3 (colleagues preference)

200

1.00

5.00

3.00

.792

SN4 (family expectation)

200

1.00

5.00

2.64

.924

SN5 (friends expectation)

200

1.00

5.00

2.92

.820

SN6 (colleagues expectation) 200

1.00

5.00

2.82

.761

Valid N (listwise)
Average

200

2.86

4.2.4 eWord of Mouth


Regard to eWOM dimension, there are four variables as showing in table below.
In overall, the average mean of this factor is quite high (3.6) which shows young
customer really care about those commenting and sharing of other user about product

41

selling on SNSs. More specifically, WM3 (I always read comments of other users on
products fanpage before purchasing a product) was accounted for the highest mean value
(3.85) and others variables vary from 3.4 to 3.6.

Table 11: Descriptive Statistics of e Word of Mouth

WM1

(reading

good

comments)
WM2 (cares and interested in
customers well-being)
WM3 (read comments of
other users)
WM4 (be attracted by my
friends commenting/sharing)
Valid N (listwise)
Average

Min

Max

Mean

Std. Dev

200

1.00

5.00

3.56

.793

200

1.00

5.00

3.43

.871

200

1.00

5.00

3.85

.922

200

1.00

5.00

3.59

.946

200

3.6

4.2.5 Purchase Intention


The overall view of customer about purchasing things on SNSs is above the
average level (3.23). Meanwhile, the values of purchase intention vary from 2.8 to 3.5.
Specifically, many people agree with PI1 (I consider using SNSs for purchasing things)
that was accounted for highest mean value 3.47. On the other hand, customer still prefer
to use the traditional shops than SNSs for purchasing process which cause the low mean
value of PI3 (I prefer to use SNSs for purchasing things)

42

Table 12: Descriptive Statistics of Purchase Intention


N

Min

Max

Mean

Std. Dev

PI1 (consider using)

200

1.00

5.00

3.47

.795

PI2 (willing to use)

200

1.00

5.00

3.23

.782

PI3 (prefer to use)

200

1.00

5.00

2.81

.791

PI4 (intent to purchase)

200

1.00

5.00

3.37

.791

PI5 (intent to introduce)

200

1.00

5.00

3.28

.846

Valid N (listwise)
Average

200

3.23

4.3 Reliability test of measurement scale by Cronbachs Alpha coefficient

In this section, researcher would like to test the reliability and validity of
measurement scale base on Cronbachs Alpha coefficients. The range of Cronbachs
Alpha is from 0 to 1.00. According to George and Mallery (2003), a rule-of-thumb for
evaluating Cronbachs Alpha coefficients: over 0.9 is excellent, over 0.8 is good, over
0.7 is acceptable, over 0.6 is questionable, over 0.5 is poor, and less than 0.5 is
unacceptable. Therefore the criteria for reliability test in this research are:

Keep factors that have Cronbachs Alpha greater than 0.7 (Sharma, 1996)

Delete factors that have Crobachs Alpha smaller than 0.5

Delete variables whose Corrected item Total Correlation are below 0.3

Delete variables which contribute positively to the total Cronbachs Alpha

4.3.1 Purchase Intention

43

Table 13: Reliability Statistics of Purchase Intention


Cronbach's Alpha

N of Items

.837

Table 14: Item-total statistics of Purchase Intention


Scale

Mean Scale

if

Item Variance

Corrected
if Item-Total

Cronbach's
Alpha if Item

Deleted

Item Deleted Correlation

Deleted

PI1 (consider using)

12.7000

6.683

.590

.818

PI2 (willing to use)

12.9400

6.509

.656

.800

PI3 (prefer to use)

13.3650

6.605

.617

.811

12.8050

6.298

.710

.785

12.8900

6.350

.627

.809

PI4

(intent

to

purchase)
PI5

(intent

introduce)

to

The Cronbachs Alpha of Purchase Intention factor is showed in the above table is
0.837. Therefore, measurement scale for Purchase Intention is reliable

4.3.2 Perceived Usefulness

Table 15: Reliability Statistics of Perceived Usefulness


Cronbach's Alpha

N of Items

.828

11

44

Table 16: Item-total statistics of Perceived Usefulness


Scale Mean if Scale
Item Deleted Variance

Corrected
if Item-Total

Cronbach's
Alpha if Item

Item Deleted

Correlation

Deleted

31.4900

31.196

.515

.813

PU2 (less effort)

31.1750

29.070

.714

.793

PU3 (quality better)

32.0150

31.774

.551

.810

PU4 (reasonable price)

31.5700

31.844

.533

.811

PU5 (easy to compare)

31.2150

31.054

.521

.812

PU6 (sale promotions)

31.4650

31.426

.505

.813

31.6800

31.656

.477

.816

PU8 (save time)

31.1650

32.490

.402

.823

PU9 (respond quickly)

31.5150

32.874

.343

.829

31.8000

32.101

.482

.816

31.7600

32.615

.460

.817

PU1

(improve

purchasing decision)

PU7 (easy to make


transaction)

PU10 (able to track


order)
PU11

(feel

comfortable)

According to table above, Cronbachs Alpha for Perceived Usefulness is 0.828


(greater than 0.7). Therefore, the measurement scale for Perceived Usefulness is reliable.

45

4.3.3 Perceived Ease of Use

Table 17: Reliability Statistics of Perceived Ease of Use


Cronbach's Alpha

N of Items

.786

Table 18: Item-total statistics of Perceived Ease of Use


Scale Mean if Scale
Item Deleted Variance

Corrected
if Item-Total

Cronbach's
Alpha if Item

Item Deleted

Correlation

Deleted

PE1 (easy to interact)

23.2850

18.758

.404

.777

PE2 (easy to search)

23.3400

17.824

.531

.756

PE3 (understandable)

23.5150

18.593

.458

.768

23.4100

17.761

.569

.751

23.6950

17.007

.617

.741

23.4800

18.311

.505

.761

23.6400

18.181

.491

.763

24.0400

18.571

.369

.784

PE4

(adequate

information)
PE5

(relevant

information)
PE6 (attractive)
PE7 (good

customer

service)
PE8 (protect personal
information)

For Perceived Ease of Use, Cronbachs Alpha result was good at 0.786 which means the
scale is well designed and has strong internal consistency.

46

4.3.4 Subjective Norm

Table 19: Reliability Statistics of Subjective Norm


Cronbach's Alpha

N of Items

.871

Table 20: Item-Total Statistics of Subjective Norm


Scale Mean Scale
if

Item Variance

Corrected
if Item-Total

Cronbach's
Alpha if Item

Deleted

Item Deleted

Correlation Deleted

SN1 (family preference)

14.4950

11.296

.591

.863

SN2 (friends preference)

14.1250

10.773

.674

.849

14.2250

10.849

.748

.837

14.5900

10.746

.624

.859

SN5 (friends expectation) 14.3050

10.927

.698

.845

11.158

.716

.843

SN3

(colleagues

preference)
SN4 (family expectation)

SN6

(colleagues

expectation)

14.4100

As can be seen in table above, no deletion of variables could increase the


Cronbachs Alpha which is already has high value 0.843. Therefore, researcher keeps all
five variables to maintain a strong and consistent scale for Subjective Norm factor.

4.3.5 e Word of Mouth

47

Table 21: Reliability Statistics of e Word of Mouth


Cronbach's Alpha

N of Items

.838

Table 22: Item-Total Statistics of eWord of mouth


Scale Mean if Scale
Item Deleted Variance

Corrected
if Item-Total

Cronbach's
Alpha if Item

Item Deleted

Correlation

Deleted

10.8800

5.342

.675

.796

interested in customers 11.0050

5.100

.658

.801

10.5900

4.836

.680

.791

friends 10.8450

4.755

.678

.793

WM1

(reading good

comments)
WM2

(cares

and

well-being)
WM3 (read comments
of other users)
WM4 (be attracted by
my

commenting/sharing)

With a high Cronbachs Alpha for the last factor eWOM factor (0.838), the
measurement scale is reliable, and consistent with totally 34 items has been kept and
ready for the next test.

48

4.4 Factor Analysis


Factor analysis test is used to reduce a large number of variables to a smaller set
of underlying factors that summarize the essential information contained in the variables.
The criteria

The value of KMO is consider as below


KMO0.90 is very good, KMO0.80 is good, KMO0.6 is so so,
KMO0.5 is bad, and KMO<0.5 is unacceptable (Kaiser, 1974)

In Barletts Test of Sphericity, the significant must be below 0.05 (sig. <
0.05)

Eigen values need to be greater than 1 and The Total Variance Explained
over 50%

The loading value of each variable must be greater than 0.5 and the
different between loading values of each variable must be greater than 0.3

4.4.1 Factor Analysis for dependent variable


In this research, Purchase Intention is the dependent variable. From the KMO and
Bartletts Test, the KMO index is quite high 0.828 which consider as good and the
significant is 0.000 (lower than 0.05) that indicated variables are correlated with each
other. The cumulative of extraction Sums of Squared Loadings is 51.13% which means if
1 factor are extracted, 51.13 percent of the variance would be explained

Table 23: KMO and Bartlett's Test for dependent variable


Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
Bartlett's
Sphericity

Test

of

.828

Approx. Chi-Square

363.170

Df

10

Sig.

.000

49

Table 24: Total Variance Explained


Factor Initial Eigenvalues
Total

Extraction Sums of Squared Loadings

of Cumulative

Variance

3.037

60.747

60.747

.629

12.589

73.336

.553

11.053

84.389

.447

8.942

93.331

.333

6.669

100.000

Total

2.557

%
Variance

51.132

51.132

Extraction Method: Principal Axis Factoring.

Table 25: Factor Matrixa


Factor
1
PI4

(intent

to

purchase)
PI2 (willing to use)
PI5

(intent

to

introduce)

.798
.733
.698

PI3 (prefer to use)

.683

PI1 (consider using)

.654

Extraction Method: Principal


Axis Factoring.

50

of Cumulative

a.

factors

extracted.

iterations required.

4.4.2 Factor Analysis for independent variable


4.4.2.1 First round of factor analysis for independent variables

Table 26: KMO and Bartlett's Test for independent


variables
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
Bartlett's

Test

of

Sphericity

.849

Approx. Chi-Square

2554.074

Df

406

Sig.

.000

According to the KMO and Bartletts Test for independent variables, the KMO
value is 0.849 and sig. is 0.000 < 0.05. Therefore, the data set is suitable for factor
analysis

Table 27: Rotated Factor Matrixa for independent variables


Factor
1
SN3 (colleagues preference)

.773

SN6 (colleagues expectation)

.753

SN5 (friends expectation)

.717

SN4 (family expectation)

.703

.311

51

SN2 (friends preference)

.697

SN1 (family preference)

.592

WM3 (read comments of other


users)
WM4 (be attracted by my friends
commenting/sharing)
WM1 (reading good comments)
WM2 (cares and interested in
customers well-being)

.747

.715
.703
.669

PU2 (less effort)


PU1

(improve

.798
purchasing

.626

decision)
PU3 (quality better)

.571

PU4 (reasonable price)

.480

PU5 (easy to compare)

.441

PE5 (relevant information)

.653

PE7 (good customer service)

.617

PE6 (attractive)

.597

PE8

(protect

personal

.533

information)
PE4 (adequate information)

.498

.358

PU9 (respond quickly)


PE1 (easy to interact)

.309

PU11 (feel comfortable)

.611
.507

PU7 (easy to make transaction)

.595

PU8 (save time)

.453

PU10 (able to track order)

.321

52

.375

PE2 (easy to search)

.317

PU6 (sale promotions)


PE3 (understandable)

.372
.310

53

.676
.426
.371

Table 29: Total Variance Explained


Factor

Initial Eigenvalues

Extraction

Sums

Squared Loadings
Total

of Cumula Total

Variance tive %

of Rotation Sums of Squared


Loadings

of Cumulati Total

of Cumulati

Varianc ve %

Varianc ve %

6.552 31.201

31.201

6.074

28.926

28.926

3.253

15.492

15.492

2.395 11.403

42.604

1.940

9.237

38.163

2.640

12.570

28.061

1.796 8.552

51.156

1.335

6.356

44.518

2.445

11.645

39.707

1.617 7.700

58.857

1.087

5.177

49.695

2.098

9.989

49.695

.917

4.366

63.223

.878

4.182

67.405

.839

3.994

71.399

.795

3.785

75.184

.721

3.435

78.619

10

.661

3.146

81.765

11

.566

2.697

84.462

12

.500

2.379

86.842

13

.435

2.072

88.914

14

.424

2.018

90.932

15

.353

1.679

92.611

16

.344

1.636

94.247

17

.333

1.588

95.835

18

.287

1.368

97.203

19

.220

1.046

98.249

20

.195

.926

99.176

21

.173

.824

100.00
0

54

From the result above, all variables are divided into seven factors that SN mainly
in factor 1, WM mainly in factor 2, PU mainly in factor 3, and PE mainly in factor 4. In
order to keep just four factors, researcher deleted the items that: (1) belong to other factor
beside 4 main factors, or (2) have different between two loading value smaller than 0.3.
In addition, for the first criteria, there were 4 items were deleted including PU9, PU11,
PU7, and PU8. Moreover, for the second criteria, items PE1, PU10, PE2, and PE3 were
deleted.

4.4.2.1 Second round of factor analysis for independent variables


After deleted eight items from the first round, it remained twenty one items for
the next round of factor analysis test.

Table 30: Rotated Factor Matrixa for independent variables


Factor
1
2
3
4
SN6 (colleagues
.770
expectation)
SN3 (colleagues
.758
preference)
SN5 (friends
.732
expectation)
SN2 (friends
.680
preference)
SN4 (family
.676
expectation)
SN1 (family
.598
preference)
PU2 (less effort)
.866
PU3 (quality better)
.598
PU4 (reasonable price)
.563

55

PU1 (improve
.557
purchasing decision)
PU5 (easy to compare)
.544
PU6 (sale promotions)
.509
WM1 (reading good
.755
comments)
WM3 (read comments
.718
of other users)
WM2 (cares and
interested in
.698
customers well-being)
WM4 (be attracted by
my friends
.667
commenting/sharing)
PE7 (good customer
service)
PE6 (attractive)
PE5 (relevant
information)
PE8 (protect personal
information)
Extraction Method: Principal Axis Factoring.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.

56

.642
.618
.599
.513

Table 28: KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .833
Approx.
Chi-Square
Bartlett's Test of Sphericity

1884.800

Df

210

Sig.

.000

As showing in the table above, the KMO is 0.833 with sig. 0.000 < 0.05. Meanwhile, if 4
factors are extracted, nearly 50 percent of the variance would be explained that is suitable
for the research. Moreover, all of the loading factors are above 0.5 as the requirement of
the test

After having EFA test, researcher returned back to Reliability Test with those factors had
changing in items including Perceived Usefulness and Perceived Ease of Use. The result
is showed as table below that Cronbachs Alpha value of those factors still greater than
0.5. Therefore, the measurement scale is still reliable and consistent

Table 31: Cronbachs Alpha after Factor Analysis of Independents Factor


Cronbachs Alpha
Perceived Usefulness

0.815

Perceived Ease of Use

0.765

4.5 Model Revision


After proceeding Cronbachs Alpha reliability test and EFA test, 21 variables are grouped
in 4 factors including Perceived Usefulness, Perceived Ease of Use, Subjective Norm,
and eWord of mouth. Table below shows groups of factors and remaining items

Table 32: Revision variables code


Factor

Code

Main content

Perceived

PU1, PU2, PU3, PU1: Improve purchasing decision

Usefulness

PU4, PU5, PU6,

PU2: effective (less effort)

57

PU3: better quality


PU4: reasonable price
PU5: easy to compare
PU6: sale promotions
PE4: adequate information
PE5: relevant information
Perceived Ease

PE4, PE5

of Use

PE6, PE7, PE8

PE6: attractive
PE7: good customer service
PE8: protect personal information
SN1: family preference
SN2: friends preference

Subjective

SN1, SN2, SN3

SN3: colleagues preference

Norm

SN4, SN5, SN6

SN4: family expectation


SN5: friends expectation
SN6: colleagues expectation
WM1: reading good comments
WM2: cares and interested in customers well-

eWOM

WM1,

WM2, being

WM3, WM4

WM3: read comments of other users


WM4:

be

attracted

commenting/sharing
PI1: consider using
PI2: willing to use
Purchase

PI1, PI2, PI3,

Intention

PI4, PI5

PI3: prefer to use


PI4: intent to purchase
PI5: intent to introduce

58

by

my

friends

4.6 Pearson Correlation


Pearson Correlation test aim to test the relationship among independent and
dependent variables. In this research, Pearson Correlation test was used before multiple
regressions in order to test whether there is linear relationship between independent
variables and dependent variable. According to rule of thumb to measure the value of
correlation, in this research, if Pearson Correlation (PC) is equal to 0.4 to higher, it
expresses strong positive relationship, if PC is from 0.3 to 0.39, it shows moderate
positive relationship, if PC is from 0.2 to 0.29, it indicates weak positive relationship.
Besides, the significant must be lower than 0.05

Table 33: Correlations between independent factors and dependent factor

Pearson
Correlation
PE

Pearson
Correlation

WM

PI

PU

.339**

.364**

.252**

.431**

.000

.000

.000

.000

200

200

200

200

200

.339**

.339**

.449**

.358**

.000

.000

.000

Sig. (2-tailed)

.000

200

200

200

200

200

.364**

.339**

.522**

.422**

Sig. (2-tailed)

.000

.000

.000

.000

200

200

200

200

Pearson
WM

SN

Sig. (2-tailed)
N

SN

PE

Correlation

200

59

Pearson
PI

.252**

.449**

.522**

Sig. (2-tailed)

.000

.000

.000

200

200

200

200

200

.431**

.358**

.422**

.443**

Sig. (2-tailed)

.000

.000

.000

.000

200

200

200

200

Correlation

Pearson
Correlation
PU

.443**
.000

200

**. Correlation is significant at the 0.01 level (2-tailed).


As can be seen from the table above, the significant level is all 0.000 < 0.05 which can
show that the independent variables have relationship with dependent variable. More
specifically:
There is a correlation and linear relationship between Perceived Ease of Use and
Purchase Intention (PC = 0.252)
There is a correlation and linear relationship between Subjective Norm and
Purchase Intention (PC = 0.449)
There is a correlation and linear relationship between eWord of Mouth and
Purchase Intention (PC = 0.552)
There is a correlation and linear relationship between Perceived Ease of Use and
Purchase Intention (PC = 0.443)

4.7 Regression Analysis


Regression Analysis is an extension of bivariate correlation. The result of this test
is an equation that represents the best prediction of dependent variable from several
independent variables. In this research, Multiple Regression Analysis is conducted for
four groups of independent variables with Purchase Intention (dependent variable). The
table below represents the result of final test.

60

Table 34: Model Summaryb


Mode R

R Square Adjusted

l
1

.625a

.391

R Std. Error of

Square

the Estimate

.379

.49210

a. Predictors: (Constant), PU, SN, WM, PE


b. Dependent Variable: PI

According to Model Summary table, value R Square is 0.391 which means the
independent variables can explain nearly 40% variance of dependent variable. Although
this value is not very high, it is still acceptable. Furthermore, researcher conducted a
qualitative approach after having analysis results to figure out the 60 percent remaining
factors affected dependent factors variance.

Table 35: ANOVAa


Model

Sum

of df

Mean

Squares

Sig.

31.315

.000b

Square

Regression 30.333

7.583

Residual

47.222

195

.242

Total

77.555

199

a. Dependent Variable: PI
b. Predictors: (Constant), PU, SN, WM, PE

Regard to ANOVA table, the significant level of this model is 0.000 < 0.05.
Therefore, researcher can conclude that the model using in this study is significant.

61

Table 36: Coefficientsa


Model

Standardized T

Coefficients

Coefficients

Std. Error

.909

.229

SN

.257

.060

WM

.310

PE
PU

(Constant
)
1

Unstandardized

Sig.

Beta
3.967

.000

.269

4.315

.000

.055

.361

5.619

.000

-.061

.059

-.067

-1.042

.299

.209

.062

.223

3.354

.001

a. Dependent Variable: PI
From Coefficient table, regard to significant level less than 0.05, there are three
factors (Subjective Norm, Perceived Usefulness, and eWord of mouth) have strong
relationship with purchase intention. Besides, factor Perceived Ease of Use had negative
coefficients and p-value = 0.299 > 0.05. Therefore, it can be concluded that Perceived
Ease of use has no impact on Purchase Intention. This result will be explained deeply in
qualitative approach in the next part. In summary, the linear equation is given base on
coefficients value is showed as below
Y = 0,09 + 0.257*Subjective Norm + 0.31eWord of Mouth + 0.209*Perceived
Usefulness 0.61*Perceived Ease of Use

Table 37: Ranking of main factors in the research


Factors

WM

Standardized

Significant

Coefficients

(p-value)

0.361

0.000

62

Ranking

Result

Impact

SN

0.269

0.000

Impact

PU

0.223

0.01

Impact

PE

-0.61

0.229

Not Impact

Figure 18: Final model with coefficient

Hypothesis testing result


H1: There is a positive relationship between Perceived Usefulness and Purchase
Intention through social media websites

H2: There is a positive relationship between Subjective Norm and Purchase


Intention through social media websites

63

H3: There is a positive relationship between eWOM and Purchase Intention


through social media websites
4.8 Qualitative analysis and findings
4.8.1 Qualitative analysis for first in-depth interview
On this stage, with the basic model TRA of Davis, including three main factors:
Perceived Usefulness, Perceived Ease of Use, and Subjective Norm, researcher had an in
depth interview with group of randomly 6 college students and 4 officers. This interview
aimed to contribute on developing suitable questionnaire as well as find some else factors
affected Purchase Intention indeed. The results of this test were the adding of one more
factor eWord of Mouth (which is also adapted from Eric and Kevin 2014 model).
Moreover, researcher also modified some variables from TRA model to be relevant with
target customer namely below:

Perceived Usefulness
- The price of the product is more reasonable when using SNSs for purchasing
compare to physical store: the price on SNSs usually are seen as less as on traditional
stores
- When using SNSs for purchasing, I can easily compare the offerings among
similar products to have the best decision: with the variety of different products size and
color that is more visible for customer and easy to compare between several product
types.
-SNSs offer me more sale promotions than going to the physical store: There are
some special types of promoting on SNSs such as sharing this advertise and tag five of
your friends, we will pick up five lucky customers to receive our free combos

64

- SNSs respond quickly to customer requests or questions: one advantage of SNSs


is the two way conversation, where seller can reply customer at any time and in anyplace
just by a clicking mouse.
- I am able to track my order status on SNSs: it could be a problem of SNS since
customer can not control the flow of their product delivery

Perceived Ease of Use


- Sites design is attractive: the friendly and eye catching theme of SNSs can be
also a strong factor to influence customer Purchase Intention.
- SNSs provide me with better customer service: service is also a very important
factor creating gratefulness when customer using a product.
- SNSs protect my personal information: there were some cases that the seller
may use private information from customer for other reasons which cause spam on their
mail box or annoying messages.

4.8.2 Qualitative analysis for final in-depth interview


On this stage, researcher had private interview with four people including Mr.
Nguyen Thanh Luan (21 year-old, student of Technology University), Ms. Quynh (25
years-old, officer of Phuong Bac ltd company), Ms. Ngan (27 years-old, sale person at
Big C Hoang Van Thu supermarket) and Ms. Vu Kim Vy (21 year-old, comestic seller on
facebook) (The Interview conversations are in Appendix). The main purposes of the
second in-depth interview are to
(1) Find some reasons made Perceived Ease of Use did not impact on Purchase
Intention and
(2) Suggest those other factor that might explain the 60 percent remaining
variable of Purchase Intention

65

Find some reasons made Perceived Ease of Use did not impact on Purchase
Intention
According to the interviews, firstly, the SNSs are originally created as a
communication space that the main reason for young customer to use it is to
communicate not to purchase products. Moreover, its function is not very difficult to
customer. The process of logging in and creating account is very familiar with young
customers who are exposed to the Internet for long period ago. Therefore, using social
network site can be seen as a hobby and young customers do not have to make great
effort to go on it. In the other word, for this new type of technology for selling social
network sites, customers are already having their ease of use even have no intent to
purchase things on it. This is also an advantage for seller on SNSs since their customers
are already available and ease to see the product advertisement. Therefore, perceived ease
of use has no impact on purchase intention via social network sites

Suggest those other factor that might explain the 60 percent remaining variable
of Purchase Intention
Perceived Risks: Many people purchased via SNSs and received bad quality
product or even lose money. According to Ms. Quynh who bought cosmetic from
Facebook said: The product was not from a popular brand name so I could not be sure
about the effect it might have on my skin, I just take risk to buy it because of some
illustrative advertisements. In fact, the buying process via SNS is very convenient and
the sellers can distract some costs such as renting cost or tax. However, the selling on
SNSs therefore is not managed by any official corporation who will be responsible for
any problem happened.
Brand Awarness: According to Aaker (1996) The stronger presence the brand
has in the customers memory, the sturdier brand awareness with the customer has. In
the other words, nowadays, with abundant developing of fake online products, customers

66

are more careful when making decision on purchasing products. A product that has strong
brand awareness could gain better purchase intention. In fact, according to Mr. Luan said
I usually just buy clothes via SNSs since I have known about it before through buying
from brick and mortal shop. Specifically, SNSs are just a second way of selling product
that could not replace the traditional selling way which creates better brand awareness.

67

CHAPTER V

CONCLUSION AND RECOMMENDATION

5.1 Summary of research findings


In summary, the research contain four main objectives defined at the beginning
including (1) to examine the overall usage of social media websites among young
customer in Ho Chi Minh City, (2) to find out factors that affect young customers
purchase intention via social media websites, (3) to evaluate the impact of different
factors on young customers purchase intention via social media websites, and (4) to
propose recommendations for companies to increase young customers purchase
intention through social media websites.
This research is conducted for three months, from 7th February to 7th May, 2014
with 200 target respondents are people from 18 to 35 years old who live in Ho Chi Minh
City. Giving on the literature review part, some main concepts, theories, and relating
research had been reviewed namely the concept of purchase intention, concept of social
network sites, TRA model, TAM model, and concept of eWOM. On this study,
researcher adapted model TRA built by Davis (1985) and added in one more factor
eWOM of Eric & Kevin (2014) model to create the final model using throughout this
research. Researcher applied both quantitative and qualitative approach in order to gain
some main findings and answers to the four objectives

From descriptive analysis and some quantitative tests with the aim of finding the
impact of four factors Perceived Usefulness, Perceived Ease of Use, Subjective Norm,
and eWord of Mouth on customer Purchase Intention via SNSs, the study figure out that
there are three factors Perceived Usefulness, Subjective Norm, and eWord of Mouth that

68

have positive impact on customer purchase intention via SNSs. Customers are quite
satisfied with product sold on SNSs due to the average mean values of all factors are
higher than average level which is 3.0. Additionally, the variables of each factor are
assessed base on five-point Likert scale to qualify the impact of each variable on
customer purchase intention. Among four independent variables, eWord of mouth has the
greastes impact on customer purchase intention while Subjective Norm ranked second
and Perceived Usefulness is the lowest one. However, Perceived Ease of Use doesnt
have impact on customer Purchase Intention due to some reason stated in the previous
chapter.

However, there are still some problems that company should pay attention on
when selling via SNSs to increase their loyal customer as well as attract new one. Those
recommendations are discussed in the following part.

5.2 Recommendations
5.2.1. Perceived Usefulness
Regard to this factor, although perceived usefulness shows positive impact on customer
purchase intention, it should be still come up with the following recommendation to make
the product better

Nowadays, products on SNS still do not have good quality on customer mind. For
that reason, seller should make effort in increasing the quality as what is
promoting on advertisement to be successful and stand out from various kind of
product.

Price is also an important factor considered by customers. Since selling on SNSs


could distract some cost for the seller, the buyers also expect a lower price of
product online than on physical store. Therefore, seller should set reasonable price

69

(usually lower than market price) or launch some promoting campaign to meet
customer expectation

The process of buying things also can be improved via SNSs base on
questionnaire results. Thanks to the visible images of products on social network
pages, customer can easily compare among different types, size, and color of
product and make the final decision that meet their favor. Understanding this
advantage, seller on SNSs should manage the group of images on different
albums with specific name and relevant information of each product. The more
visible these image to customer, the more chance of buying.

5.2.2 Subjective Norm


Subjective Norm ranked second on affecting customer purchase intention. There
are some important points for company or organization should concentrate on while
selling via SNSs

Customers are easily influenced by other people commendation especially their


friends (which has mean = 3.1 on descriptive statistic test). Because they are the
same generation with similar interest as well as lifestyle. Being known about the
impact of that factor on customer purchase intention, seller on SNSs should give
some posts about already-used users recommendation on the fan page usually.
More specifically, a short message from the customers about their gratefulness
when using the product could really gain attention from others people. Moreover,
one of a function on Facebook that notices to other users when one of their friend
like or follow a page that create huge attention from the others.

5.2.3 eWord of Mouth


eWOM is the factor which has largest impact on Purchase Intention (p-value =
0.361). Since SNSs is ordinary a place of creating conversation and showing ideas, it is a
advantaged environment for company to understand customer insight. When creating a

70

page on social network site, seller will start with 0 viewers. Therefore, the first important
task is to create fan page that attract as many like or follower as they can (usually more
than 1000 likes to be work effectively). With this good basement of viewer, the spreading
of their messages will be more efficient which means could gain double or triple viewer
than their intrinsic consumer. It can be known as the impact of eWord of mouth. There
are some attention that seller should care about when start selling via SNSs

In reality, customer usually read comments of other users before making decision
on purchasing a product. The comments can be right on the product fan page or
other users posts that link with the fan page name. Company should have an
online marketing group that manage those comments such as delete spam, reply to
customer questions, give solution for customers complaints, note down
customers willing, etc.

From the analysis result, one of the important factors of eWord of mouth is the
perceiving of customer about companys attention on customers well-being.
Besides selling product with suitable price and quality, company should be able to
provide demanding products that timely response to customer changing taste, and
the ability to give good after services. Moreover, the information provided by
customers should be protected firmly by the company without any affection on
their privacy or interest.

71

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behavior
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satisfaction and purchase intentions: Evidence from Chinese online visitors
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London: Routledge.
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Qualitative and Quantitative Methods. Melbourne: John Wileys & Sons
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Acceptance Model to evaluate the innovative potential of e-learning systems
-D11.3:

Economic

aspects

of

mobility

and

identity.

Retrieved

from

http://www.fidis.net/resources/fidis-deliverables/mobility-and-identity/intd11100010/doc/23/
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deployments. Communication technologies in Latin America an Africa: A
multidisciplinary perspective
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social network sites: The role of electronic Word-of-Mouth and trust A
theoretical analysis
-Evert Gummesson (2008). Total Relationship Marketing
-Fred D. Davis (1989). Perceived Usefulness, Perceived Ease of Use, and User
Acceptance of Information Technologgy
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shopping in Malaysia. Journal of Social Sciences, 15(5), 232-242.

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acceptance model in explaining effects of image interactivity technology on
consumer responses
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brand loyalty
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purchasing intention in China. Journal of Information Systems and Technology
Management 4(3), 269-286.
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Debate.
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Tools, and Strategies for Business Success by Lon Safko and David K. Brake
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young consumers online purchase intention in social media websites
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the Web. Information & Management, 41(3), 351-368.
-Munchuta Suadmalai (2006). How has consumerism affected the lifestyle and
consumption of female university students in Bangkok with the case study of
fashion
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shopping takes off in Asia. The New York Times. Retrieved from
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72.html.
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-Taeho Hong, Eunmi Kim (2012). Segmenting customers in online stores based on
factors that affect the customers intention to purchase
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strategies within social marketing programs: use of Web 2.0 social media.
-Torben Hansen, Jan Moller Jensen, Hans Stubbe Solgaard (2004). Predicting online
grocery buying intention: a comparison of the theory of reasoned action and the
theory of planned behavior
-Using

Internet

among

Vietnamese.

Retrieved

from

http://support.vnn.vn/VN/Index_detail.aspx?lang=1&Object=4&newsid=936
-Vietnamese social networks. Retrieved from http://vtown.vn/news/mang-xa-hoi-o-vietnam.html
-Vietnamese survey. Retrieved from http://www.vietnamsurvey.com
-Vietnam

Internet

Network

Information

Center

VNNIC.

Retrieved

from

http://www.vnnic.vn/en?lang=en
- Zarella, 2010; Kaplan & Haenlein, 2009; Weinberg, 2009. Impact of social media on
consumer behavior

74

LIST OF APPENDIX
APPENDIX A
QUESTIONNAIRE
(ENGLISH VERSION)
SECTION 1: GENERAL INFORMATION
1. Do you use social network sites (Facebook, Twitter, Zing )
Yes
No
If yes, please answer below questions
2. Which of following social media sites you are using (You can choose more than one
answer)
Facebook
Twitter
Google+
Zing me
Others.
3. Have you ever purchase things on social network sites (Facebook, Twitter, Zing )
Yes
No
If yes, please answer below questions
If no, please move to question 8
4. How many times did you purchase things on social network sites
Never
1 5 times
5 10 times
> 10 times
5. Which item do you usually purchase on social network sites (Facebook, Twitter, Zing
) (can choose more than one)
Fashion (Clothes, jewelry, accessories such as belt, watches, glasses)
Cosmetic (Lipstick, skin whitening cream, mixed cream)
Electronic (USB, games)
Decorating things
Handmade (dream catcher, bracelet)

75

Second hand things


Others ..
6. How much money do you usually spend for each time purchasing things from social
network sites (Facebook, Twitter, Zing )
< VND 100,000
VND 100,000 VND 500,000
> VND
500,000

7. How often do you purchase things from social network sites (Facebook, Twitter, Zing
)
Less than twice per month
2 4 times/ month
5 7 times/ month
8 10 times/ month
More than 10 times/ month
8. Have you ever intent to purchase things on social network sites (Facebook, Twitter,
Zing )
Yes
No

SECTION 2: CUSTOMER EVALUATION


Please indicate the extent to which you agree with the statement by marking from 1 to 5
[1] Strongly disagree
[2] Disagree
[3] Neither agrees nor disagrees
[4] Agree
[5] Strongly Agree

76

77

[5] Strongly Agree

[3] Neither agrees nor


disagrees
[4] Agree

[2] Disagree

[1] Strongly disagree


Perceived Usefulness
Social network sites (SNSs) improve my purchasing
decision making process
I find it is effective (less effort) to purchase things on
SNSs
The quality of the product is better when using SNSs for
purchasing compare to physical store
The price of the product is more reasonable when using
SNSs for purchasing compare to physical store
When using SNSs for purchasing, I can easily compare
the offerings among similar products to have the best
decision
SNSs offer me more sale promotions than going to the
physical store
SNSs is easier to make transaction compare to physical
store
SNSs save my time choosing and ordering products
SNSs respond quickly to customer requests or questions
I am able to track my order status on SNSs
SNSs make me feel more comfortable than physical store
Perceived Ease of Use
SNSs are easy to interact with (login, create account)
It is easy to search items I want on SNSs
The advertisements on SNSs are always understandable
SNSs provide adequate information for customer to make
purchase (the way of transaction, contact detail)
SNS provides me relevant information about each
product (size, quality, price, color)

Sites design is attractive


SNSs provide me with better customer service (greetings,
product consultation, customer supports and timely
response to inquiries) compare to physical store
SNSs protect my personal information (address, phone,
bank account number)
Subjective Norm
Members of my family think that it is a good idea to buy
things from SNSs
Most of my friends think that buying things from SNSs is
a good idea
Most of my colleagues think that buying things from
SNSs is a good idea
Members of my family expect me to buy things from
SNSs
My friends expect me to buy things from SNSs
My colleagues expect me to buy things from SNSs
Ewom
I tend to purchase things from SNSs after reading good
comments from products fanpage
From the products fanpage, I can see how the company
cares and interested in customers well-being that create
my trust about the product
I always read comments of other users on products
fanpage before purchasing a product
I always be attracted by my friends commenting/sharing
about a product on SNSs that affect my trust about the
product
Intention to use
I consider using SNSs for purchasing things
I willing to use SNSs for purchasing things
I prefer to use SNSs for purchasing things
I intent to introduce SNSs to someone else I know
I intent to use SNSs to purchase products
Anything you think SNSs can improve?

78

.
A. Your Gender
Male
Female
B. Your Age
18 24

25 29

C. Your occupation
Student without part-time job
Student with part-time job
Officer
Others
D. Your Income
< VND 1,000,000
VND 1,000,000 1,999,000
VND 2,000,000 4,999,000
VND 5,000,000 7,000,000
> VND 7,000,000

79

30 35

APPENDIX B
QUESTIONNAIRE
(VIETNAMESE VERSION)
Kho st nhng yu tt tc ng n d nh mua hng ca gii tr thng qua cc
trang mng x hi ph bin (Facebook, Twitter, Zing me)
Thn cho anh/ch
Em l Nguyn Ngc Thanh Trc, sinh vin nm cui i hc Quc T - i hc Quc
gia TP.HCM. Hin em ang thc hin mt cuc kho st v nhng yu t tc ng n
d nh mua hng ca gii tr thng qua cc trang mng x hi ph bin (facebook,
twitter, zing me) vi mc ch phc v nghin cu lun vn tt nghip
Knh mong anh/ch dnh cht thi gian, cung cp thng tin mt cch khch quan gip
vic nghin cu ca em t c kt qu phn nh ng n thc tin v d nh mua
hng ca gii tr thng qua cc trang mng x hi hin nay. Nhng thng tin anh/ch
cung cp s c gi b mt v ch phc v cho mc ch nghin cu
Lu : ti nghin cu ca em l v vic bn hng, to fanpage trn cc trang mng x
hi nh facebook, twitter, zing me, google +. Khng bao gm nhng trang mng
(website) c lp ra chuyn bn hng hay ca ring tng thng hiu
Xin chn thnh cm n!
PHN 1: THNG TIN CHUNG (nh du (X) p n m bn la chn)
1. Bn tng s dng mng x hi (Facebook, Twitter, Zing ) cha?
C
Khng
Nu c, vui lng tr li tip nhng cu bn di

80

2. Bn hin ang s dng trang mng x hi no? (C th chn nhiu hn 1 )


Facebook
Twitter
Google+
Zing me
Khc (vui lng ghi r).
3. Bn tng mua hng qua nhng trang mng x hi (Facebook, Twitter, Zing )
cha?
C
Khng
Nu c, vui lng tr li tip tc cu bn di
Nu khng, vui lng chuyn n cu 8
4. S ln mua hng qua nhng trang mng x hi trong vng 1 nm gn y ca bn l?
0
1 5 ln
5 10 ln
Trn 10 ln
5. Bn thng mua nhng mt hng no trn mng x hi? (c th chn nhiu hn mt
)
Thi trang (Qun o, trang sc, ph kin nh ng h, dy nt, mt king)
M phm (Son mi, kem dng trng da, kem trn)
in t (USB, games)
Vt trang tr
Handmade (dream catcher, vng eo tay)
Sn phm second hand
Sn phm khc (vui lng ghi r).
6. Bn thng s dng bao nhiu tin cho mi ln mua hng trn mng x hi?
Di VND 100,000
VND 100,000 VND 500,000
Trn
VND 500,000
7. Trong vng mt thng, bn mua trn mng x hi khong bao nhiu ln?
t hn 2 ln/ thng
2 4 ln/ thng
5 7 ln/ thng
8 10 ln/ thng
Nhiu hn 10 ln/ thng

81

8. Bn tng c nh mua hng qua nhng trang mng x hi (Facebook, Twitter,


Zing ) cha?
C
Khng

Nhn thc v mc hu ch
Mng x hi (MXH) h tr quyt nh mua hng ca
ti
Ti nhn thy vic mua hng trn MXH khng tn
nhiu cng sc
Cht lng sn phm trn MXH tt hn so vi trong
ca hng
Gi c sn phm trn MXH hp l hn so vi trong ca
hng
Khi mua hng trn MXH, ti d dng so snh gia
nhng mt hng khc nhau a ra la chn tt nht
MXH mang n nhiu chng trnh khuyn mi hn
so vi ca hng
Giao dch trn MXH d dng hn so vi ca hng
Mua hng trn MXH tn t thi gian hn so vi ca
hng

82

(5) Hon ton ng

(4) ng

(3) Trung lp

(2) Khng ng

nh du X vo p n bn la chn

(1) Hon ton khng ng

PHN II. NH GI CA KHCH HNG


nh du X vo th hin s ng tnh ca bn theo tng mc
(1) Hon ton khng ng
(4) ng
(2) Khng ng
(5) Hon ton ng
(3) Trung lp

MXH hi p nhanh hn nhng cu hi v yu cu ca


ti
Ti theo di c qu trnh giao nhn hng trn MXH
MXH khin ti cm thy thoi mi khi s dng hn so
vi ca hng
Nhn thc v mc d s dng
Ti d dng tng tc (to ti khon, ng nhp) vi
MXH
Ti d dng tm kim sn phm mong mun trn MXH
Qung co trn MXH lun lun d hiu
MXH cung cp y thng tin giao nhn hng
(phng thc thanh ton, thng tin lin h)
MXH cung cp y thng tin v sn phm (kch
thc, cht lng, gi, mu sc)
Thit k trang mng bt mt
MXH cung cp dch v khch hng (cho hi, t vn v
sn phm, h tr khch hng, p ng yu cu khch
hng) tt
Mng x hi m bo b mt thng tin c nhn (a
ch, s in thoi, s ti khon) ca ti
Nhn thc v mc nh hng ch quan
Thnh vin trong gia nh ng h ti mua hng trn
MXH
Bn b ng h ti mua hng trn MXH
ng nghip ng h ti mua hng trn MXH
Thnh vin trong gia nh mong mun ti mua hng trn
MXH
Bn b mong mun ti mua hng trn MXH
ng nghip mong mun ti mua hng trn MXH
Nhn thc v mc truyn ming
Ti c xu hng mua hng trn MXH sau khi c bnh
lun tch cc v sn phm
Qua trang fanpage ca sn phm , ti nhn thy s quan
tm ca cng ty i vi s thch khch hng t to s
tin tng ca ti i vi sn phm
Ti lun lun c bnh lun v sn phm trn MXH
trc khi quyt nh mua
Ti lun lun b thu ht vi nhng bi ng ca bn b
trn MXH v sn phm t to s tin tng ca ti i

83

vi sn phm
nh hng s dng
Ti xem xt v vic s s dng MXH mua hng
Ti sn lng s dng MXH mua hng
Ti thch s dng MXH mua hng hn n trc tip
ca hng
Ti c nh mua hng trn MXH
Ti c nh gii thiu MXH n ngi khc
kin ng gp thm ca bn v vic bn hng trn MXH hin nay?

.
A. Gii tnh
Nam
N
B. tui
18 24
Ngoi 35

25 29

C. Ngh nghip
Sinh vin khng c vic lm thm
Sinh vin c vic lm thm
Nhn vin vn phng
Khc, vui lng ghi r
D. Mc thu nhp hng thng
Di VND 1,000,000
VND 1,000,000 1,999,000
VND 2,000,000 4,999,000
VND 5,000,000 7,000,000

84

30 35

Trn VND 7,000,000

Appendix C
In-depth Interview stage 2
Mr. Nguyen Thanh Luan
(21 years-old, student of Technology University National University)
Vic nhn thc mc hu ch ca mng x hi (Perceived Usefulness) nh hng
nh th no n d nh mua hng ca bn?
Mnh thng s dng mng x hi, thng l facebook mua hng v n kh tin li v
d s dng. So snh vi vic n ca hng th ngi nh, la chn sn phm v giao
dch online l iu mnh thy c bit ca hng ha trn mng x hi
Vic nhn thc kin khch quan ca ngi thn v bn b (Subjective Norm) nh
hng nh th no n d nh mua hng ca bn?
Ba m mnh khng quan tm n vic mua hng trn mng x hi, h thng n tn ca
hng mua. Nhng ngi bn mnh quen bit thng gi thng tin v trang web ca
sn phm v nh mnh like, nhng ln mnh cng c s quan tm n sn phm
Vic nhn thc thng tin truyn mng qua mng x hi (eWord of Mouth) nh
hng nh th no n d nh mua hng ca bn?

85

nh hng kh ln. Trc khi mua hng trn mng x hi mnh thng ln wall ca
trang sn phm xem xt kin ca nhng khch hng trc. Nu kin l tt mnh c
xu hng ngh sn phm tt
Nhng yu t khc nh hng n d nh mua hng qua mng x hi?
Mnh thng ch mua hng trn mng x hi vi nhng thng hiu mnh bit trc
sau nhiu ln mua hng ca hng. Bi v nh th mnh mi m bo c cht
lng ca mc hng. Hng trn mng x hi trn lan v thng khng m bo v cht
lng.
Ms. Lu Thi Phuong Quynh
(25 years-old, officer of Phuong Bac ltd company)
Vic nhn thc mc hu ch ca mng x hi (Perceived Usefulness) nh hng
nh th no n d nh mua hng ca bn?
Hu ch ca mng x hi l nhanh chng, tin li v a dng sn phm
Vic nhn thc kin khch quan ca ngi thn v bn b (Subjective Norm) nh
hng nh th no n d nh mua hng ca bn?
ng nghip trong c quan ch thng tag ch vo nhng sn phm m h quan tm. Nu
l nhng kin tt ch s tin n l tt v ngc li.
Vic nhn thc thng tin truyn mng qua mng x hi (eWord of Mouth) nh
hng nh th no n d nh mua hng ca bn?
Nhng sn phm kem dng trn mng x hi thng khng thuc nhn hiu ni ting,
v vy ch khng chc chn v tc dng ca n i vi da, nn thng ch c liu m mua
i v gi r v c kh nhiu comment tt
Nhng yu t khc nh hng n d nh mua hng qua mng x hi?

86

Sn phm trn mng x hi theo ch thy kh c v bt mt, thng l theo xu hng.


V d nh trong mt b phim Hn Quc c mt b o ca nhn vt chnh khin cc bn
tr a chung. Mng x hi lun c nhng sn phm trc, nhanh hn so vi ca
hng.

Ms. Nguyen Thi Ngc Trn


(27 years-old, sale person at Big C Hoang Van Thu supermarket)
Vic nhn thc mc hu ch ca mng x hi (Perceived Usefulness) nh hng
nh th no n d nh mua hng ca bn?
Do phi i lm c ngy nn ti khng c nhiu thi gian mua sm. Nh c mng x hi
m ti c th tn dng thi gian sau khi i lm v mua nhng mn u thch. Nhng
nhiu lc khng c Internet cng khng th mua hng c, l ci bt tin
Vic nhn thc kin khch quan ca ngi thn v bn b (Subjective Norm) nh
hng nh th no n d nh mua hng ca bn?
Bn b hay gia nh ti khng c nhiu gp trong vic ti mua hng ha trn mng x
hi
Vic nhn thc thng tin truyn mng qua mng x hi (eWord of Mouth) nh
hng nh th no n d nh mua hng ca bn?
Nhng thng tin i vi ti l hu ch. Tuy nhin cng kh trnh trng hp ngi
bn hng ngy to thng tin gi hay xa i nhng kin phn bc. Nn ti khng tin
tng vo n tuyt i

87

Nhng yu t khc nh hng n d nh mua hng qua mng x hi?


Gi c, cht lng sn phm v phng thc thanh ton. C nhiu sn phm yu cu phi
thanh ton qua credit card nhng ti khng c nn kh bt tin.

Ms. Vu Kim Vy
(21 years-old, student and seller on facebook)
Vic nhn thc mc hu ch ca mng x hi (Perceived Usefulness) nh hng
nh th no n d nh mua hng ca bn?
Mnh thng mua hng trn facebook v cng l ngi bn m phm trn facebook.
Mnh thy facebook tin li, mnh c th online mi lc mi ni bng in thoi hay
laptop. Vi nhng trang sn phm mnh like th khi h c sn phm mi, h thng
tag mnh vo hay thng tin y xut hin trn wall ca mnh. Nh th mnh cp nht c
nhng xu hng thi trang hin nay hay nhiu chng trnh khuyn mi khc
Vic nhn thc kin khch quan ca ngi thn v bn b (Subjective Norm) nh
hng nh th no n d nh mua hng ca bn?
Ba m mnh phn i mnh mua m phm trn mng x hi v c nhiu v ng trn bo.
Tuy nhin i lc mnh cng mua m khng cho h bit.
Vic nhn thc thng tin truyn mng qua mng x hi (eWord of Mouth) nh
hng nh th no n d nh mua hng ca bn?

88

Nhng sn phm c a chung thng s c nhiu lt like hoc share, nh vo m


mnh ch hn n sn phm. N nh hng kh ln n d nh mua hng ca mnh
Nhng yu t khc nh hng n d nh mua hng qua mng x hi?
Nhng chng trnh khuyn mi ca hng trn mng x hi thng nhiu hn ca hng,
v th mnh thch mua hng trn mng x hi. Bn cnh , nu hng ha c ting tm
cht th mnh s tin tng m s dng hn

Appendix D
Table 7: The summary of coded variables in the questionnaires
Factor

Code

Main content

Source

PU1: Improve purchasing


decision
PU2: effective (less effort)
PU1, PU2, PU3, PU3: quality

Perceived

PU7,

PU8, better

PU11

PU7:

Davis (1989)
easy

to

make

transaction

Usefulness

PU8: save time


PU11: feel comfortable
PU4: reasonable price
PU4, PU5, PU6,
PU9, PU10

PU5: easy to compare


PU6: sale promotions

89

Modified
interview

after

PU9: respond quickly


PU10: able to track order
PE1: easy to interact
PE2: easy to search
PE1, PE2, PE3,
PE4, PE5

PE3: understandable

Davis (1989)

PE4: adequate information


Perceived Ease

PE5: relevant information

of Use

PE6: attractive
PE7:
PE6, PE7, PE8

good

customer

protect

personal

service
PE8:

Modified

after

interview

information
SN1: family preference
SN1, SN2, SN3

SN2: friends preference


SN3:

colleagues

Subjective

preference

Norm

SN4: family expectation


SN4, SN5, SN6

Hansen (2004)

SN5: friends expectation

Added

after

colleagues interview

SN6:
expectation
WM1:

reading

good

comments
eWOM

WM1,

WM2, WM2:

WM3, WM4

cares

and Eric and Kevin

interested in customers (2014)


well-being
WM3: read comments of

90

other users
WM4: be attracted by my
friends
commenting/sharing
PI1: consider using
PI2: willing to use
Purchase

PI1, PI2, PI3,

Intention

PI4, PI5

PI3: prefer to use


PI4: intent to purchase
PI5: intent to introduce

91

Davis (1989)

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