VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS COLLEGE STUDENTS’ ATTITUDE TOWARD ONLINE SHOPPING OF APPAREL PRODUCTS IN HO CHI MINH CITY In Partial Fulfillment of the Requirements of the Degree of BACHELOR OF ARTS in BUSINESS ADMINISTRATION Student’s name: HUYNH THAI DUONG (BAIU09115) Advisor: VO TUONG HUAN, LLM Ho Chi Minh City, Vietnam 2013 COLLEGE STUDENTS’ ATTITUDE TOWARD ONLINE SHOPPING OF APPAREL PRODUCTS IN HO CHI MINH CITY APPROVED BY: Advisor Vo Tuong Huan, LLM ACKNOWLEDGEMENTS My thesis is completed with many contributions and support from many people around They are the biggest support for me to overcome many struggle and finish this thesis First of all, I want to give my deepest gratitude to my advisor, Mr Vo Tuong Huan for his enthusiasm and kindly support me during the thesis process His advices are not only useful for me when doing the research but also for my life after graduation Thank you Secondly, I want to thank staffs in International University for helping getting the useful material and literature related to my research I also want to thank my friends who also doing thesis in this time for give sharing me the knowledge and advice Thank you for all the lecturer and students that help me complete my survey collection, their help for stranger person is a huge contribution for the complete of this thesis Finally, it is my family, my brother, sister who give me metal support during the hard times Thank you so much Table of Contents ACKNOWLEDGEMENTS iii Table of Contents iv LIST OF TABLE vii LIST OF FIGURE viii ABSTRACT ix CHAPTER I INTRODUCTION 1.1 Introduction 1.2 Research purpose 1.3 Research objective 1.4 Research questions: 1.5 Rationale of the research 1.6 Significant of the research 1.7 Limitation Chapter II LITERATURE REVIEW 2.1 Term and definition: 2.2 Online shopping 2.3 Attitude toward online shopping of apparel products 2.4 College students ‘attitude 2.5 Related research in student’s attitude 2.6 Hypothesis and research model 11 2.6.1 Hypothesis development 11 2.6.2 Research model 16 CHAPTER III 18 METHODOLOGY 18 3.1 Research design 18 3.2 Literature review 18 3.3 Sampling: 19 3.4 Pilot study 19 3.5 Data collection 20 3.6 Questionnaire design 20 3.7 Data analysis 21 3.7.1 Descriptive Statistics 21 3.7.2 Reliability Statistic 22 3.7.3 Exploratory Factor Analysis 22 3.7.4 Correlation Testing 23 3.7.5 Regression Analysis 23 3.8 Measurement scale 23 CHAPTER IV 26 DATA ANALYSIS & RESEARCH RESULT 26 4.1 Final sample 26 4.2 Characteristics of sample 26 4.2.1 Consumer factors: 32 4.2.2 Marketing factors 34 4.2.3 Technology factors 35 4.2.4 4.3 Students’ attitude 36 Reliability test 38 4.4 Exploratory Factor Analysis 42 4.4.1 Exploratory factor analysis for independent variables 42 4.4.2 Exploratory Factor Analysis of Dependent Variable 46 4.4.3 Revision of hypotheses and research model 47 4.5 Correlation testing 48 4.6 Regression analysis 49 4.7 Hypothesis testing result 51 CHAPTER V 52 CONCLUSION & RECOMMENDATIONS 52 5.1 Conclusion 52 5.2 Recommendation 54 5.3 Further research: 57 Reference 59 APPENDIX A – RESEARCH QUESTIONAIRE 62 Questionaire ( Vietnamese version) 62 Questionnaire (English version) 67 APPENDIX B – COMPONENT MATRIX 71 LIST OF TABLE Table 1: List of Hypothesis 17 Table 2: Measurement statement & scale 23 Table 3: the Characteristics of the Samples 26 Table 4: Descriptive statistics of Consumer factors 32 Table 5: Descriptive statistics of marketing factor 34 Table 6: Descriptive statistics of Technology factors 35 Table 7: Descriptive statistics of Students’ Attitude 36 Table 8: Reliability statistics of Consumer factors 38 Table 9: Reliability statistics of marketing factor 39 Table 10: Reliability statistics of Technology factors 40 Table 11: Reliability statistics of Students’ Attitude 41 Table 12: KMO and Bartlett’s Test for Independent Variables 42 Table 13: Total Variance Explained 42 Table 14: Component matrix of independent variables 43 Table 15: Rotated Component Matrix of Independent variables 44 Table 16: KMO and Bartlett's Test of Dependent variable 46 Table 17: Component matrix of Dependent variable 46 Table 18: Correlation Testing 48 Table 19: Model Summary 49 Table 20: ANOVA 49 Table 21: Coefficients 50 Table 22: Hypothesis testing result 51 Table 23: Component 53 LIST OF FIGURE Figure 1: Factors affect attitude, intention and four groups of consumers 10 Figure 2: Research model 16 Figure 3: Allocation of students’ gender 29 Figure 4: Allocation of students’ rank 29 Figure 5: Allocation of students’ living location 29 Figure 6: Allocation of frequency of using internet by students 30 Figure 7: Allocation of private vehicle using by students 30 Figure 8: Allocation of monthly income of students 31 Figure 9: Allocation of employment status among students 31 Figure 10: Allocation of respondents for using online shopping of apparel products before 32 Figure 11: Revised research model 47 ABSTRACT E-commerce is deal with purchasing products through internet Internet shopping make it more convenient to people to give them the ability to buy the product without actually going to the store or market, not to mention the benefit of available of information which make it more easier to compare the product and carry out decision E-commerce industry in Vietnam began in 1993 but suffer from long time of no significant development; however there seem to be an upward trend in recent year in this market Despite the high number of Internet users, internet shopping still not fully reach its potential from many drawbacks in payment method and maintain trust between supplier and buyers With the economic development in Vietnam which raises the standard of living, the demand on clothing has risen significantly in quality and famous brand name With the help of technology, customer can easily to purchase their desired product without the limitation of distance This encourages the fashion retailer and brands to promote their online shopping channel to get in touch with their customer more easily College students have been long time considered as very potential target segment for online shopping due to high rate of internet using However, their different in characteristics compare to other segment that make the marketing strategies of internet retailer still not full reach this segment To ensure the success of online business, it is important for the retailers to understand their targets customers The aim of this study examines factors belong to online shopping of apparel products and their impact on student’ attitude A five-level Likert scales was used to determine students’ attitudes towards online shopping of apparel products A self-administered questionnaire based on prior literature was developed and total 266 post graduate students were selected The regression analysis demonstrated the determinant of impact of different factors on student’s attitude, and from that conclusion and recommendation is given for online retailer of apparel products CHAPTER I INTRODUCTION The first chapter provides a general introduction for study: the current situation of online shopping in Vietnam, the college student segment and online shopping of apparel products This chapter presents background of this research, the research purpose and objectives of this research After that, the limitation will be mentioned 1.1 Introduction Online shopping has appeared in Vietnam since 1993 However, it is still very new form of shopping Vietnam has ranked on 17st in top countries of Internet users in 2008 According to a survey of McKinsey in January 2012, Vietnamese people spend on online shopping per year about billion VND, which is much lower than other neighbor countries like Thailand or Malaysia The result of this survey also indicates that just 13 percent of Vietnamese Internet users believe that buying products online is trustfully Consequently, McKinsey stated in their report that e-commerce in Vietnam is still an untapped market with high potential for growth Furthermore, there are few local firms which have their own official online stores to sell goods directly to customers Almost online stores are originated from goods exchange website or forum such as eBay.com and amazon.com College students bring $200 billion a year in buying power to the US market, with the average college student’s available discretionary spending totaling $287 each month (Gardyn, 2002) Because of their power in the market place, it is important for retailers and consumer behavior educators to better understand this population’s attitudes toward shopping through traditional formats, such as local stores, and new, emerging formats, such as the internet Furthermore, 90 percent of college students access the internet daily Reference ACNielsen (2005) Global consumers attitudes towards online Online Shopping Retrieved from http://www2.acnielsen.com/reports/document/2005_cc_onlineshopping.pdf 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service European Management Journal, 18(1), 85-92 61 APPENDIX A – RESEARCH QUESTIONAIRE Questionaire ( Vietnamese version) Bảng khảo sát thái độ sinh viên mua sắm thời trang qua mạng Chào bạn, Dương, sinh viên năm cuối đại học Quốc Tế - Đại học quốc gia thành phố Hồ Chí Minh Mình tiến hành nghiên cứu thái độ sinh viên mua sắm thời trang qua mạng Để hoàn thành nghiên cứu cách tốt nhất, thật mong muốn nhận đánh giá chân thành bạn bảng khảo sát Mình cam kết giữ bí mật sử dụng chúng nhằm mục đích nghiên cứu Cám ơn bạn nhiều Giới tính bạn  Nam  Nữ Là sinh viên năm  Năm  Năm hai  Năm ba  Năm tư Nơi bạn  Nội thành ( Q1, Q3, Q4, Q10, Q Bình Thạnh, Q Phú Nhuận, Q Tân Bình)  Ngoại thành ( khu vực lại ) Sử dụng internet:  Hiếm  Thỉnh thoảng  Bình thường 62  Thường xuyên  Rất thường xuyên Sử dụng phương tiện cá nhân  Có  Khơng Thu nhập tháng  triệu  2- triệu  3- triệu  triệu tình trạng cơng việc  Đã làm  Chưa làm Bạn có mua hàng thời trang qua mạng  Có  Khơng 63 Hãy cho biết suy nghĩ bạn mua hàng thời trang trực tuyến cách điền X vào ô bên với câu hỏi phù hợp với bạn Hồn Khơng Trung Đồng Hồn tồn đồng ý tồn khơng đồng ý Nhân tố Mua hang trực tuyến dễ thực khách hàng Có thể mua hàng trực tuyến thời điểm Các website mua sắm cung cấp đầy đủ cho nhãn hiệu thời trang khác mà tơi mong muốn Mua hàng trực tuyến an tồn cho người sử dụng thẻ tín dụng Mua hàng trực tuyến tao hoạt động xã hội mua sắm cửa hàng Nhân tố Giá mua hàng trực tuyến rẻ Marketi cửa hàng ng Mua hàng trực tuyến giúp mua sản phẩm không dễ tìm kiếm mua hàng bình thường Mua hàng qua mang cho thêm nhiều lựa chọn mua sắm Những chương trình khuyến 64 lập ý đồng ý banner quảng cáo, giảm giá quà miễn phí hấp dẫn tơi Phí vận chuyển hợp lý Giao hàng thường không thời gian Trả hàng mua trực tuyến khơng dễ gửi trả hàng mua từ cửa hàng Của hàng trực tuyến cung cấp dịch vụ khách hàng tốt mong muốn Nhân tố Thông tin sản phẩm thường đủ cho công cân nhắc trước mua nghệ Hình ảnh sản phẩm thời trang thường khơng giống với hình ảnh tơi nhìn thấy trang web Chất lượng sản phẩm thời trang không tốt thông tin nhận trang web Thái độ Tơi có đánh giá tốt nhân tố liên quan tới khách hàng ( bảo mật, tiết kiệm thời gian, thuận tiện sử dụng, thoải mái thích thú, đầy đủ nhãn hiệu thời trang) Các nhân tố liên quan tới marketing ( giá cả, tính đa dạng sản phẩm, chế độ đổi trả, dịch vụ vận chuyển, dịch vụ 65 khách hàng) hấp dẫn đến với mua hàng thời trang qua mạng Các nhân tố liên quan tới cơng nghệ ( thơng tin đa dạng, hình ảnh sản phẩm) hữu ích cho tơi mua hàng thời trang qua mạng Tơi có cảm xúc chung tích cực mua hàng thời trang qua mạng Chân thành cám ơn cộng tác bạn ! 66 Questionnaire (English version) SURVEY ABOUT COLLEGE STUDENTS’ ATTITUDE TOWARD ONLINE SHOPPING OF APPAREL PRODUCTS I’m a student from Ho Chi Minh International University, a member of National University I’m conducting research about college students’ attitude toward online shopping of apparel products To complete the research, I hope to receive your honest evaluation through this survey All the information you provide here will be keep confidentially and use for research purpose only Thank for spending time to answer this question table Your gender  Male  Female Your student rank  Freshman  Sophomore  Junior  Senior Location where you living  Urban  Suburban How usually you use the Internet  Seldom  Sometimes 67  Often  Frequently  Very frequently Private vehicle using  Yes  No Monthly income  Below million  – million  – million  Over million Employment status  Employed  Unemployed Purchase apparel products by online shopping before  Yes  No Please tell me your evaluation on these items by fill X on the box below strongly disagree Consumer it's easy to conduct online factors shopping of apparel products 68 disagree neutral opinion agree strongly agree online shopping can be conducted at anytime online shopping website bring enough different brands I desire online shopping is safe for credit card user online shopping cannot create social activities like shopping at retail store Marketing Price of online shopping is lower factors than retail store Online shopping help me look for products which aren't easy to find by normal shopping Online shopping bring me more merchandise option Online promotion like banner advertising, sale or voucher attract me delivery fee is reasonable Delivery is often late It’s not easy to return product as from retail store online shopping don’t provide customer service as I expect Technology Information about products are factors often sufficient for me to consider 69 Products' quality isn’t as good as I read on the website Image of product isn’t the same as I see on the website Attitude I have good evaluation toward factor related to customer ( security, time saving, convenience, enjoyment, fashion brand) Marketing factors (price, product variety, promotion, delivery, return policy, customer service) attract me to online shopping of apparel products Technology factors( information, representativeness) is useful for me when consider making actual online purchase of apparel products On overall, I have positive opinion about online shopping of apparel products Thank you very much for your cooperation! 70 APPENDIX B – COMPONENT MATRIX Component matrix of independent variables Component Matrix Component MF3 919 MF4 916 MF6 911 MF2 906 MF1 847 CF1 553 413 CF4 506 389 -.417 CF2 500 325 -.491 TF2 680 573 TF1 657 451 337 388 CF5 575 606 -.334 TF3 -.355 602 455 CF3 386 596 Extraction Method: Principal Component Analysis a components extracted Rotated Component Matrix of Independent variables Rotated Component Matrix Component MF6 970 71 MF1 927 MF3 917 MF2 915 MF4 910 CF5 871 CF4 743 CF2 742 CF3 724 CF1 664 TF2 908 TF1 806 TF3 805 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations Component matrix of Dependent variable Component Matrix Component SA2 844 SA3 812 SA1 776 SA4 705 72 Eigenvalue 2.472 % of Variance 61.793 Cumulative % 61.793 Extraction Method: Principal Component Analysis component extracted 73