INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ASSURANCE QUALIFIED THESIS Student’s Name: Nguyen Thanh Trung Hieu Student ID: MBA05010 Title of Thesis: EXPLORING THE FACTORS AFFECTING PURCHASE INTENTION OF SMARTPHONE: A STUDY OF OFFICE WORKERS IN HOCHIMINH CITY, VIETNAM Advisor: I assure that the content of this thesis has been qualified all requirements for a research paper and able to participate in the final thesis defense Approved by Dr Pham Hong Hoa EXPLORING THE FACTORS AFFECTING PURCHASE INTENTION OF SMARTPHONE: A STUDY OF OFFICE WORKERS IN HOCHIMINH CITY, VIETNAM In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In Marketing By Mr Nguyen Thanh Trung Hieu ID: MBA05010 International University - Vietnam National University HCMC September 2014 EXPLORING THE FACTORS AFFECTING PURCHASE INTENTION OF SMARTPHONE: A STUDY OF OFFICE WORKERS IN HOCHIMINH CITY, VIETNAM In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In Marketing by Mr Nguyen Thanh Trung Hieu ID: MBA05010 International University - Vietnam National University HCMC September 2014 Under the guidance and approval of the committee, and approved by all its members, this thesis has been accepted in partial fulfillment of the requirements for the degree Approved: -Chairperson Advisor: Dr Pham Hong Hoa - Committee member -Committee member Committee member Committee member Acknowledge This study would not have been completed without the kind guidance and the support of my supervisor, my family and friends First of all, I would like to express my profound gratitude and appreciation to my supervisor Dr Pham Hong Hoa for her valuable guidance, advices and recommendations throughout this research Thank you for your kind support every time I am in need for consultation I would like to express my great appreciation to all the teachers of the Master‟s program in the International University, who imparted their knowledge and experience to me during the past two years I would like to give special thanks to my beloved family which has been my inspiration throughout the past time and always been the endless source of joy in my life It is also my pleasure to have the opportunity to study with classmates from MBAIU05 who have shared with me their impressive knowledge and skills during the challenging courses of the MBA program Finally, I would like to thank the members of the Examination Committee for taking time and giving valuable comments so that I could improve this thesis Plagiarism Statements I would like to declare that, apart from the acknowledged references, this thesis either does not use language, ideas, or other original material from anyone; or has not been previously submitted to any other educational and research programs or institutions I fully understand that any writings in this thesis contradicted to the above statement will automatically lead to the rejection from the MBA program at the International University – Vietnam National University Ho Chi Minh City Copyright Statement This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author‟s prior consent © Nguyen Thanh Trung Hieu/MBA05010/2011-2014 Table of Contents Chapter Introduction 1.1 Research Background 1.2 Research Problems 1.3 Research Questions 1.4 Research Objectives 1.5 Research scope and limitation 1.6 Significant of the Research 1.7 Research Methodology 1.8 Structure of Research 1.8.1 Chapter One: Introduction 1.8.2 Chapter Two: Literature review 1.8.3 Chapter Three: Research Methodology 1.8.4 Chapter Four: Data Analysis and Findings 1.8.5 Chapter Five: Conclusion Chapter Literature Review 2.1 Dependent Variable 2.1.1 2.2 Purchase Intention Error! Bookmark not defined Independent variable 2.2.1 Price 2.2.2 Brand 10 2.2.3 Compatibility 10 2.2.4 Product Feature 11 2.2.5 Relative Advantage 12 2.2.6 Social Influences 13 2.3 Review of relevant theory 13 2.3.1 Diffusion of innovations 13 2.3.2 Social Identity Theory 15 2.3.3 Theory of Materialism 15 2.4 Proposed Theoretical Framework 17 2.5 Hypothesis Development 17 Chapter Methodology 19 3.1 Research design 19 3.2 Data collection methods 19 3.2.1 Primary data 19 3.2.2 Secondary data 20 3.2.3 Sampling design 20 3.2.4 Sampling Technique 21 3.2.5 Research instrument 22 3.3 Data analysis 26 3.3.1 Descriptive statistics 26 3.3.2 Reliability test 26 3.3.3 Exploratory factor analysis (EFA) 27 3.3.4 Pearson Correlation Coefficient Test 27 3.3.5 Multiple regression analysis 27 Chapter DATA ANALYISIS AND Findings 29 4.1 Sample description 29 4.1.1 Sample 29 4.1.2 Demographic profile 29 4.2 Descriptive statistics 33 4.3 Cronbach’s alpha reliability test 36 4.4 Exploratory Factor Analysis (EFA) 39 4.5 Pearson Correlation Coefficient 43 4.6 Multiple Regression Analysis 45 4.7 Test of Hypothesis 47 Chapter CONCLUSION 51 5.1 Conclusion 51 5.2 Practical implication 53 5.3 Limitation and further recommendation 53 Table - Coded items of measurement scale 26 Table - Rules of Thumb about Correlation Coefficient 27 Table - Demographic of Respondents 30 Table - Crosstab between age and average income of respondents 32 Table – Descriptive statistics of respondents 34 Table - Cronbach's Alpha rule based on George and Mallery 36 Table - Reliability test for consumer‟s Purchase Intention on smartphone 37 Table – Reliability test of Brand (1st run) 38 Table - Reliability test of Brand (2nd run) 38 Table 10 - Reliability test of Brand (3rd run) 39 Table 11 - The final table of Cronbach‟s alpha reliability test 39 Table 12 – Exploratory Factor Analysis (EFA) for independent variables 41 Table 13 – Group of EFA 42 Table 14 – Exploratory Factor Analysis (EFA) for independent variables 43 Table 15 - Pearson Correlation Testing 44 Table 16 - Multiple regression testing 47 Table 17 - Reliability Test of Respondents 71 Figure - Diffusion of innovations model Rogers, E.M (1995) 14 Figure - Conceptual model: Factors affect Purchase Intention of smartphone 17 Figure - Sex of Respondents 30 Figure - Age of Respondents 31 Figure - Average income of respondents 31 Abstract In a world of digital devices, people require more convenient and powerful gadgets on hand to support for their daily works as well as their need for entertainment Smartphone is invented to fulfill those demands, furthermore, provided a most compact assistant in the pocket While replace some simple task of work from the traditional computers, smartphone also play a vital role in people‟s lifestyle This leads to a booming in the smartphone industry while more and more people want to own one smartphone Nevertheless, it is a fact that there are too many brand of smartphone found at the current, making the process of choosing a smartphone become more complicated The study aim to explore the factors affecting Purchase Intention of smartphone among the office workers in Hochiminh City The initial factors include: Price, Brand, Relative Advantage, Compatibility, Product Features, Social Influence and Purchase Intention 218 respondents have provided data for the study The process of collecting is online surveys via the Qualtrics electronic form using likert scale The data was analyzed through SPSS 20 The results of this research were unhide base on answering the research questions Monk, A., Hassenzahl, M., Blythe, M., & Reed, D (2002) Funology: designing enjoyment proceedings of Conference on Extended Abstracts on Human Factors in Computer Systems, 924 Monroe, K.B (2003) Pricing: Making Profitable Decisions Satisfaction: A Behavioral Perspective on the Consumer (3rd ed) Boston: McGraw-Hill Nagle, T.T., and Holden, R.K (2002) The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making, 3rd ed., New Jersey: Prentice-Hall, Inc Nebenzahl I.D., and McLeod L.E (2005) Adolescent brand consciousness and product placements: awareness, liking and perceived effects on self and others International Journal of Consumer Studies, 29(6),515-528 Osman, A., Sabudin, M., Osman, A., & Shiang-Yen (2011) Consumer Behaviors toward Usage of Smartphone in Malaysia International Conference on Software and Computer Applications, 9, 158-164 Oulasvirta, A., Wahlstrom, M and Ericsson K A (2011) What does it mean to be good at using mobile device? 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Nam Nữ Vui lòng cho biết thu nhập hàng tháng anh (chị)? Dưới 8,000,000 đồng Từ 8,000,000 đồng đến 12,000,000 đồng Từ 12,000,000 đồng đến 18,000,000 đồng Từ 18,000,000 đồng đến 25,000,000 đồng Nhiều 25,000,000 đồng 65 66 Vui lòng cho biết tuổi anh (chị)? Dưới 22 tuổi Từ 22 đến 29 tuổi Từ 30 đến 39 tuổi Từ 40 đến 49 tuổi Hơn 50 tuổi Các yếu tố ảnh hưởng đến định lựa chọn mua smartphone Các câu hỏi phần đề cập đến yếu tố gây ảnh hưởng đến định chọn mua smartphone anh/chị Xin anh chị vui lòng cho biết ý kiến dựa đánh giá theo thang điểm từ đến mà đưa [(1) = Hoàn toàn phản đối, (2) = Phản đối, (3) = Trung lập (Khơng có ý kiến), (4) = Đồng ý, (5) = Hoàn toàn đồng ý] Vui lòng khoanh tròn lựa chọn theo ý kiến anh/chị Mã PR1 PR2 PR3 PR4 PR5 GIÁ CẢ Giá yếu tố quan trọng chọn mua smartphone Tôi mua smartphone chương trình giảm giá Tơi so sánh giá nhãn hiệu cửa hàng trước mua Tơi mua smartphone thực đáng giá dựa giá thành chất lượng mang lại Các smartphone giá rẻ tạo cho cảm giác khơng an tồn chất lượng thấp 67 Hồn toàn phản đối Phản đối Trung lập Đồng ý Hoàn toàn đồng ý 5 5 Mã BR1 BR2 BR3 BR4 BR5 THƯƠNG HIỆU Thương hiệu yếu tố quan trọng chọn mua smartphone Tơi thích chọn thương hiệu smartphone biết đến tồn cầu Tơi thích chọn thương hiệu smartphone tin cậy Tơi thích chọn thương hiệu smartphone theo sở thích Tơi sẵn sàng chọn thương hiệu smartphone đáp ứng tiêu chí tơi Mã SỰ PHÙ HỢP CM1 Smartphone phù hợp cho nhu cầu cần điện thoại Smartphone phù hợp với sống hàng ngày công việc tơi Smartphone phù hợp với thói quen sử dụng điện thoại CM2 CM3 CM4 CM5 Mã PF1 PF2 PF3 PF4 PF5 Mã Smartphone thay đổi xứng đáng cho điện thoại truyền thống Smartphone đảm bảo cho nhu cầu cần sử dụng TÍNH NĂNG Tơi thích khả chụp ảnh/quay phim smartphone Smartphone có nhiều games chất lượng cao Smartphone có nhiều ứng dụng hữu ích Smartphone dễ dàng kết nối internet (wifi, 3G) Tôi dùng smartphone thích hệ điều hành (iOS, Blackberry OS, Android, Windows Phone, …) LỢI THẾ SO SÁNH 68 Hoàn toàn phản đối Phản đối Trung lập Đồng ý Hoàn toàn đồng ý 5 5 Hoàn toàn phản đối Phản đối Trung lập Đồng ý Hoàn toàn đồng ý 5 5 Hoàn toàn phản đối Phản đối Trung lập Đồng ý Hoàn toàn đồng ý 5 5 Hoàn toàn Phản đối Trung lập Đồng ý Hoàn toàn đồng ý phản đối RA1 RA2 RA3 RA4 RA5 Mã SI1 SI2 SI3 SI4 SI5 Smartphone tiện lợi, đáng tin cậy hữu ích điện thoại thông thường Smartphone thời trang, phong cách thời thượng Smartphone tương thích với nhiều thiết bị kỹ thuật số khác Màn hình bán phím lớn smartphone giúp cho việc sử dụng tính dễ dàng Smartphone giúp tơi giải cơng việc nhiều tình TÁC ĐỘNG XÃ HỘI Gia đình bạn bè chọn mua smartphone giúp Tôi hỏi ý kiến bạn bè người thân mua smartphone Bạn bè, người thân phần lớn sử dụng smartphone Bạn bè, người thân tơi tin smartphone hữu ích cho họ Tôi tham khảo thông tin diễn đàn mạng xã hội mà tham gia mua smartphone 69 5 5 Hoàn toàn phản đối Phản đối Trung lập Đồng ý Hoàn toàn đồng ý 5 5 Dự định mua smartphone Các câu hỏi phần đề cập đến ý định mua smartphone anh/chị Xin anh chị vui lòng cho biết ý kiến dựa đánh giá theo thang điểm từ đến mà đưa [(1) = Hoàn toàn phản đối, (2) = Phản đối, (3) = Trung lập (Khơng có ý kiến), (4) = Đồng ý, (5) = Hoàn toàn đồng ý] Vui lòng khoanh tròn lựa chọn theo ý kiến anh/chị Mã câu hỏi Ý ĐỊNH MUA PI1 Tôi tiếp tục sử dụng smartphone PI2 PI3 Tơi có ý định mua smartphone Tơi có ý định mua smartphone tốt sử dụng PI4 PI5 Tôi kể với bạn bè, người thân smartphone sử dụng Tôi khuyên bạn bè đồng nghiệp mua smartphone Hoàn toàn phản đối Phản đối Trung lập Đồng ý Hoàn toàn đồng ý 5 5 XIN CHÂN THÀNH CẢM ƠN SỰ HỖ TRỢ CỦA QUÝ ANH/CHỊ 70 Table 17 - Reliability Test of Respondents Reliability Statistics Cronbach's Alpha N of Items 713 Item-Total Statistics PR1 PR2 PR3 PR4 PR5 Scale Mean if Item Deleted 15.20 15.39 14.78 14.66 15.02 Scale Variance if Item Deleted 4.583 4.202 4.470 4.714 4.244 Corrected ItemTotal Correlation 429 561 502 458 423 Cronbach's Alpha if Item Deleted 682 628 654 672 692 Reliability Statistics Cronbach's Alpha 702 N of Items Item-Total Statistics BR1 BR2 BR3 BR4 BR5 Scale Mean if Item Deleted 15.91 15.89 15.68 15.89 15.87 Scale Variance if Item Deleted 4.108 3.588 3.839 4.052 4.494 71 Corrected ItemTotal Correlation 425 636 586 388 286 Cronbach's Alpha if Item Deleted 666 574 601 684 720 Reliability Statistics Cronbach's Alpha 742 N of Items Item-Total Statistics CO1 CO2 CO3 CO4 CO5 Scale Mean if Item Deleted 16.13 16.04 16.24 16.14 16.16 Scale Variance if Item Deleted 4.125 4.104 3.703 3.957 4.329 Corrected ItemTotal Correlation 500 631 602 443 392 Cronbach's Alpha if Item Deleted 699 661 658 725 738 Reliability Statistics Cronbach's Alpha 732 N of Items Item-Total Statistics FE1 FE2 FE3 FE4 FE5 Scale Mean if Item Deleted 16.11 16.40 16.04 15.89 16.17 Scale Variance if Item Deleted 3.549 3.560 4.141 3.545 3.656 Corrected ItemTotal Correlation 590 465 426 603 414 Cronbach's Alpha if Item Deleted 649 699 711 645 722 Reliability Statistics Cronbach's Alpha N of Items 745 Item-Total Statistics RA1 RA2 Scale Mean if Item Deleted 15.89 15.94 Corrected ItemScale Variance Total if Item Deleted Correlation 5.385 565 5.075 526 72 Cronbach's Alpha if Item Deleted 680 697 RA3 RA4 RA5 15.67 15.75 15.71 6.018 5.229 5.987 476 553 440 714 684 725 Corrected ItemTotal Correlation 481 604 428 567 487 Cronbach's Alpha if Item Deleted 711 656 724 680 703 Reliability Statistics Cronbach's Alpha 741 N of Items Item-Total Statistics Scale Mean if Item Deleted 14.55 13.87 13.49 13.45 13.37 SI1 SI2 SI3 SI4 SI5 Scale Variance if Item Deleted 5.742 5.167 6.970 6.442 6.482 Reliability Statistics Cronbach's Alpha N of Items 765 Item-Total Statistics Scale Mean if Item Deleted 15.67 15.32 15.56 15.94 15.97 PI1 PI2 PI3 PI4 PI5 Scale Variance if Item Deleted 5.549 5.906 5.547 5.406 5.594 Reliability Statistics Cronbach's Alpha 720 N of Items 73 Corrected ItemTotal Correlation 531 606 486 556 521 Cronbach's Alpha if Item Deleted 724 707 742 715 728 Item-Total Statistics Scale Scale Cronbach's Mean Variance Corrected Alpha if if Item if Item Item-Total Item Deleted Deleted Correlation Deleted 11.97 2.759 520 652 11.95 2.454 675 554 11.74 2.738 584 616 11.94 3.103 297 786 BR1 BR2 BR3 BR4 Reliability Statistics Cronbach's Alpha 786 BR1 BR2 BR3 N of Items Item-Total Statistics Scale Scale Cronbach's Mean Variance Corrected Alpha if if Item if Item Item-Total Item Deleted Deleted Correlation Deleted 8.05 1.574 573 765 8.03 1.419 680 647 7.82 1.588 625 710 74 ... the above reasons, I have chosen the topic: EXPLORING THE FACTORS AFFECTING PURCHASE INTENTION OF SMARTPHONE: A STUDY OF OFFICE WORKERS IN HOCHIMINH CITY, VIETNAM The study is to clarify the factors. . .EXPLORING THE FACTORS AFFECTING PURCHASE INTENTION OF SMARTPHONE: A STUDY OF OFFICE WORKERS IN HOCHIMINH CITY, VIETNAM In Partial Fulfillment of the Requirements of the Degree of MASTER OF. .. complicated The study aim to explore the factors affecting Purchase Intention of smartphone among the office workers in Hochiminh City The initial factors include: Price, Brand, Relative Advantage,