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INTERNATIONAL UNIVERSITY
SCHOOL OF BUSINESS
_____________________
_____________________
_____________________
Nguyen Thi Huong Giang, MBA
_____________________
Charles Leonard Wilson, Ph.D
_____________________
Nguyen Quang Trung, Ph.D
THESIS COMMITTE
ii
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.
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.
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
ii
iii
LIST OF TABLES
iv
LIST OF FIGURES
vi
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.
vii
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.
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)
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.
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 4: What are some recommendations for some companies that
advertise on social media websites to increase their customers purchase intention,
especially young consumer?
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
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.
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.
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
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.
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.
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,
10
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.
11
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)
12
13
14
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.
15
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.
16
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
17
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
18
19
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
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
-
websites among young customer, the qualitative approach is used via in-depth interview
with young customer
-
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.
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
22
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:
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.
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.
25
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)
Content
PERCEIVED USEFULNESS
PU1
PU2
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
PU8
PU9
PU10
PU11
26
PE1
PE2
PE3
PE4
PE5
PE6
PE7
PE8
SUBJECTIVE NORM
SN1
SN2
Most of my friends think that buying things from SNSs is a good idea
SN3
SN4
SN5
SN6
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
WM4
INTENTTION TO PURCHASE
PI1
PI2
PI3
PI4
PI5
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.
29
CHAPTER IV
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.
30
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
38%
Male
Female
62%
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
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
21%
25 29
30 35
70%
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%.
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%
21%
45%
32%
Others
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.
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
29%
VND 2,000,000
5,000,000
12%
VND 5,000,000
7,000,000
11%
29%
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
Frequency 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%
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.
37.5
23.5
20
16.5
5.5
Fb
Google+
Zing me
Other
37
Types of product
120
100
97
80
60
51
40
40
31
24
23
21
20
0
Fashion
Others
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.
Min
Max
Mean
Std. De
200
1.00
5.00
3.19
.959
200
1.00
5.00
3.51
.987
200
1.00
5.00
2.67
.833
200
1.00
5.00
3.11
.845
200
1.00
5.00
3.47
.971
200
1.00
5.00
3.22
.941
200
1.00
5.00
3.00
.948
200
1.00
5.00
3.52
.934
200
1.00
5.00
3.17
.972
200
1.00
5.00
2.88
.874
PU7
(easy
to
make
transaction)
39
200
1.00
5.00
200
Average
2.92
.826
3.15
Min
Max
Mean
Std. De
200
1.00
5.00
3.63
.947
200
1.00
5.00
3.57
.948
PE3 (understandable)
200
1.00
5.00
3.40
.902
200
1.00
5.00
3.50
.913
200
1.00
5.00
3.22
.983
PE6 (attractive)
200
1.00
5.00
3.43
.894
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
Min
Max
Mean
Std. Dev
200
1.00
5.00
2.73
.847
200
1.00
5.00
3.10
.870
200
1.00
5.00
3.00
.792
200
1.00
5.00
2.64
.924
200
1.00
5.00
2.92
.820
1.00
5.00
2.82
.761
Valid N (listwise)
Average
200
2.86
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.
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
42
Min
Max
Mean
Std. Dev
200
1.00
5.00
3.47
.795
200
1.00
5.00
3.23
.782
200
1.00
5.00
2.81
.791
200
1.00
5.00
3.37
.791
200
1.00
5.00
3.28
.846
Valid N (listwise)
Average
200
3.23
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 variables whose Corrected item Total Correlation are below 0.3
43
N of Items
.837
Mean Scale
if
Item Variance
Corrected
if Item-Total
Cronbach's
Alpha if Item
Deleted
Deleted
12.7000
6.683
.590
.818
12.9400
6.509
.656
.800
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
N of Items
.828
11
44
Corrected
if Item-Total
Cronbach's
Alpha if Item
Item Deleted
Correlation
Deleted
31.4900
31.196
.515
.813
31.1750
29.070
.714
.793
32.0150
31.774
.551
.810
31.5700
31.844
.533
.811
31.2150
31.054
.521
.812
31.4650
31.426
.505
.813
31.6800
31.656
.477
.816
31.1650
32.490
.402
.823
31.5150
32.874
.343
.829
31.8000
32.101
.482
.816
31.7600
32.615
.460
.817
PU1
(improve
purchasing decision)
(feel
comfortable)
45
N of Items
.786
Corrected
if Item-Total
Cronbach's
Alpha if Item
Item Deleted
Correlation
Deleted
23.2850
18.758
.404
.777
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
N of Items
.871
Item Variance
Corrected
if Item-Total
Cronbach's
Alpha if Item
Deleted
Item Deleted
Correlation Deleted
14.4950
11.296
.591
.863
14.1250
10.773
.674
.849
14.2250
10.849
.748
.837
14.5900
10.746
.624
.859
10.927
.698
.845
11.158
.716
.843
SN3
(colleagues
preference)
SN4 (family expectation)
SN6
(colleagues
expectation)
14.4100
47
N of Items
.838
Corrected
if Item-Total
Cronbach's
Alpha if Item
Item Deleted
Correlation
Deleted
10.8800
5.342
.675
.796
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
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
Test
of
.828
Approx. Chi-Square
363.170
Df
10
Sig.
.000
49
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
(intent
to
purchase)
PI2 (willing to use)
PI5
(intent
to
introduce)
.798
.733
.698
.683
.654
50
of Cumulative
a.
factors
extracted.
iterations required.
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
.773
.753
.717
.703
.311
51
.697
.592
.747
.715
.703
.669
(improve
.798
purchasing
.626
decision)
PU3 (quality better)
.571
.480
.441
.653
.617
PE6 (attractive)
.597
PE8
(protect
personal
.533
information)
PE4 (adequate information)
.498
.358
.309
.611
.507
.595
.453
.321
52
.375
.317
.372
.310
53
.676
.426
.371
Initial Eigenvalues
Extraction
Sums
Squared Loadings
Total
of Cumula Total
Variance tive %
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.
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
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
0.815
0.765
Code
Main content
Perceived
Usefulness
57
PE4, PE5
of Use
PE6: attractive
PE7: good customer service
PE8: protect personal information
SN1: family preference
SN2: friends preference
Subjective
Norm
eWOM
WM1,
WM2, being
WM3, WM4
be
attracted
commenting/sharing
PI1: consider using
PI2: willing to use
Purchase
Intention
PI4, PI5
58
by
my
friends
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
60
R Square Adjusted
l
1
.625a
.391
R Std. Error of
Square
the Estimate
.379
.49210
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.
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
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
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
63
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
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
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.
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.
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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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
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
76
77
[2] Disagree
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
81
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
(4) ng
(3) Trung lp
(2) Khng ng
nh du X vo p n bn la chn
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
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
87
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
Appendix D
Table 7: The summary of coded variables in the questionnaires
Factor
Code
Main content
Source
Perceived
PU7,
PU8, better
PU11
PU7:
Davis (1989)
easy
to
make
transaction
Usefulness
89
Modified
interview
after
PE3: understandable
Davis (1989)
of Use
PE6: attractive
PE7:
PE6, PE7, PE8
good
customer
protect
personal
service
PE8:
Modified
after
interview
information
SN1: family preference
SN1, SN2, SN3
colleagues
Subjective
preference
Norm
Hansen (2004)
Added
after
colleagues interview
SN6:
expectation
WM1:
reading
good
comments
eWOM
WM1,
WM2, WM2:
WM3, WM4
cares
90
other users
WM4: be attracted by my
friends
commenting/sharing
PI1: consider using
PI2: willing to use
Purchase
Intention
PI4, PI5
91
Davis (1989)