ThAi nguyen University Socialist Republic of Vietnam Southern luzon STATE University Republic of Philippines INFLUENCES OF PERSONALITY, PSYCHOLOGY FACTORS AND MARKETING MIX ON THE CONSUMPTION OF FOREIGN FAST-FOOD BRAND IN HA NOI, VIET NAM (Summary) Advisor : Dr Alice T Valerio Name of Student : NGUYEN THI THANH HUYEN English Name : TULIP Date of Birth : 02-12-1976 Course : SLSU-DBA1 Hanoi, 2013 ABTRACTION It is common to encounter familiar images of families shopping, entertainment and dining at fast food outlets A serving of Coca cola water, a sandwich, fries, salad, fried chicken… with the average price of 10$-20$ to become the favorite of not only children but also parents Or instant coffee in paper cups, cold meat loaf sandwiches are common dishes in the staff office Simple meals, while maintaining compact power supply for working days, to help office workers have more time relaxing instead of noisy crowded restaurant popular in the streets Lotteria, a Korean fast food brand appeared in Vietnam in 2004, and was able to get 140 fast food restaurants In 2011, Lotteria has had 100 restaurants in Vietnam for years and did not conceal ambitions raise the number to 200 in the next years (2016) Also in Vietnam early in 1997, currently at Jollibee Foods (Philippines), also has dozens of restaurants in Vietnam In 2009, Jollibee has 14 restaurants after only years and has ambitions to open more restaurants in Vietnam anymore Baskin Robbins (U.S.) in Vietnam early in 1994 but then stopped trading due to import tariffs rising raw material and decided to come back early 2012 In the next years, Baskin Robbins will open 32-50 restaurants in Vietnam The foreign fast food brands can reduce losses and still be profitable to compete, so are there marketing solutions that can help them? To reply for this question, I want study factors influence on consumer’s behavior, and investigate how the relative importance of that factors influence on consumer from buying fast-food Can businesses to provide fast-food after the pioneering brand which join in Hanoi potential market through agents of the marketing mix system? The previous foreign studies about fast food mentioned issues:  The effects of fast-food consumer health  Customers will be loyal to the fast-food brands if certified to ensure quality standards  A more reasonable price for each packaging with different capacity, and the rewards that customers receive will encourage more consumer products  Advertise attractive, logical and effective known combination will attract the consumer's purchasing power for fast-food… The previous Vietnam studies about fast food mentioned issues:  The journal articles introduce the strategic expansion of the store brand strength in Vietnam  Magazine articles about the changing trends of the consumption habits of the younger generation of food fit their lifestyle  The journal article analyzes the impact of using lot fast foods, especially for children, and analysis of common diseases using this kind of food… The research problem addressed in my thesis is: How relative factors (personality, psychology, marketing-mix) influence on consumer’s purchasing intention of fast-food in Hanoi? Personality factors conclude: + Demographic (Age, occupation, education, average monthly income) + Lifestyle, + Emotion Psychology factors conclude: + Frequency of fast food intake, + Money spent on fast food intake per month, + Awareness of brand, + Awareness of items of fast food, + Attitudes towards healthy Marketing – mix factors conclude: + Product: quality product, and quality service, + Price: rebate period, and sets of fast food, + Place: shopping malls/ supermarkets, and outlets in major streets + Promotion: Type of media, and message advertisement Statement of the problem What are relationship between personal factors and psychological factors influence on customer’s decision buying fast food? What are relationship between personal factors and marketing-mix factors to influence on consumers’ purchasing fast-food? What are relationship between psychological factors and marketing-mix factors influence on customer’s decision buying fast food? Do some variables of marketing-mix factors influencing on consumer’s decision to purchase fast food? Objectives of study To identify some variables of demographic characteristics (personal) to be relative with some variables of psychology factors that encourage consumers’ decision buying fast-food in restaurants To describe some variables of demographic characteristics (personal) to be relative with some variables of marketing-mix influencing consumers’ purchasing fast-food To describe the relationship some variables of psychology factors with marketingmix influencing consumers’ purchasing fast-food To describe some variables of marketing-mix influencing directively on consumer’s decision to purchase fast food Method To collect the data this research used self administered survey by following convenient sampling on various fast food restaurants consumers in center districts in Hanoi, Viet Nam However, this research utilized convenience sampling over random sampling due to practical reasons In this study researcher’s surveyed respondent from the fast food outlets customers’ from different places like shopping centers, large shopping malls, supermarkets… for getting the maximum respondents Other case is outlets fast food in the major streets, in the interaction… in center districts Hanoi n= N Ne 1,039 ,087 1,039 ,087 * (0,05 ) 399 98 400 (populations) (Ba Dinh: 87; Hoan Kiem: 57; Dong Da: 142; Hai Ba Trung: 114) The questionnaire consisted of 29 closed-ended questions: 11 ranking questions and 11 questions that used a Likert-type scale Limitations:  The time to collect the data for the research was less  These researches are more focused in certain places at Hanoi (only districts) A Hanoi population is different compared to others locations  Because of the limited understanding about the dummies in the construction of statistical functions to test the problem posed Therefore, I did not use mathematical formulas to present statistics in my research The accuracy of the inspection fieldwork, maybe not fully justified Findings Hypothesis about relationship between personality, psychology and marketingmix with consumers’ purchasing fast food were accepted in this study Frequency using fast food With 31,8% participants in districts is often use fast food with 2-3 times/month; 33% with at least times/month; 27% with less than times/month and 8,2% 8-12times/month Average monthly income females with 350$-500$ (34,8% ÷ n=32) were not only ready but also ability to consume at least times/month With age 36-45 years old (57,4% ÷ n=54) consumed the most Offices/public authorities occupation (50,3% ÷ n=74); level of education is tertiary with (39,3% ÷ n=57) were customers who visit to outlets fast food at lease times/month Higher age, higher income, well educated, good career will option factors in consumption of fast food often or not Amount of money spent on fast food per month There was not significant percentage between level of amount of money spent on fast food per month: less than $10 ÷ 23,8%; $10-$20 ÷ 25,7%; $20-$30 ÷ 27,8%; more than $30 ÷ 22,5% in participants in districts, Hanoi But female with style of dynamic, creative persons (63,2% ÷ n=55) were ready to pay more than $30/month and style of fresh; style of like exchange persons (66,7% ÷ n=38) paid $20-$30 for buying fast food Female with peaceful, stability lifestyle (38,2% ÷ n=52) paid $10-$20/month, it was low amount of money spent on fast food The higher average monthly income, the more female ready to pay higher amount of money spent on fast food Female with 250$-350$/month income (32,8% ÷ n= 59) and 350$-500$/month income (34,0% ÷ n=37) spent $20-$30 for buying fast food per month Attitude towards health The most participants were 30,6% (n=118) to be worried with percentage of fat, the second was nutrient 25,9% (n=100) The most participants worried about overweight (52% ÷ n=200), the second was diabetes (30,2% ÷ n=116) People who with higher or higher income monthly age were worried diabetes, participants of higher education level worried with concerned about all types of disease Consumers in 30 – 45 year cared about percentage of fat (28% ÷ n=30) which courses of overweight; above 45 year concerned with preservatives (45% % ÷ n=19) which courses of diabetes Percentage of fat was cared by both of monthly income 250$-350$ (34,8% ÷ n=31) and 350$-500$ (32,9%% ÷ n=57), tertiary education participants All of participants worried about percentage of fat in fast food Quality fast food, quality service relate to frequency of fast food intake There was 85% replies (mean = 1,99) impacted to frequency buying fast food by quality (taste, flavor, delicious…); 67% replies (mean = 2,64) influenced by quality service; 75% replies impacted by located outlets in shopping malls Price, adverts and located outlets relate to awareness of foreign brands of fast food Consumers have known foreign brands fast food in Vietnam: the first rank was KFC (23,7% ÷ n=94), the second rank was Lotteria (19,4%% ÷ n=77), the third was BBQ (17,6% ÷ n=70), the fourth was Pizza Hut (14,9 % ÷ n=59), Al Fresco (12,6% ÷ n=50) ranked fifth, after was Pepperonis (11,4% ÷ n=44) With mean = 2,43, there was 72,8% participants have been impacted by located outlets on streets where easily to look up and eye-catching With mean = 2,87, there was participants have been impacted by rebate period 24,2% (n=97) people was always to buy fast food by adverts impaction; 37,8% (n=151) participants were sometime to buy them, 22,2% (n=89) female seldom bought fast food with cause of adverts; 15,8% (n=63) women was never Person who consumers often come along with, amount of money spent per month relate to reasons for buying fast food The first rank reason people bought fast food has been time limitations (26% ÷ n=103), the second rank was taste (23,8% ÷ n=95), the third rank was can’t cook (20,2% ÷ n=81), the fourth rank was convenience (14,0% ÷ n=56) But there was no significant different between ranks in the top first The most female spent $20-$30 per month for fast food (46,7% ÷ n=49) with can’t cook reason, 38,1% (n=40) for taste reason The most female spent more than $30 per month for fast food (26,5% ÷ n=26) with due to friends/family reason, 25,5% (n=25) for can’t cook reason Reason time limitations for buying fast food with 54,7% (n=64) woman often came to outlets with friends With 39,6% (n=74) woman came to outlets fast food with member family with reason can’t cook Demographic factors with items of fast food The first rank item of fast food was fried chicken, the second was pasta and the third was concluded: drilled chicken, pizza and burger because of having been near about the same percentage The most of: 28,6% (n=6) participants age of 18-25; 22,2% (n=51) women age of 26-35 and 18,7% (n=20) female age of 36-45 were interested in fried chicken The most of: 23,5% (n=4) participants with no schooling education level would like drilled chicken; 38,8% (n=26) women with high school were interested in pasta; 25,4% (n=48) female with tertiary used pizza; 24,5% (n=25) participants with other education bought dried chicken The most of: 51,7% (n=45) female dynamic/creative style was interested in pasta; 28,1% (n=16) women fresh, like exchange style would like salad; 35,3% (n=48) participants peaceful/stability bought pizza, 20,8% (n=25) women favorite innocation, adventure used fried chicken Demographic factors with sectors marketing-mixed of price, food quality, located outlets and advert With “mean = 3,25” shown that 50,5% participants were not interested in sets of fast food With “mean = 2,58” shown that 79% participants were impacted by fast food outlets which have been decorated with eye-catching, consistent/ polite/ elegant looking There was not different age period (n=390), not different education level (n=328), not different lifestyle (n=390) with above 30% participants (n=310 about age; n= 301 about education; n=310 about lifestyle) to select “strong agree” with decorated outlets, quality of food and outlets located in streets which factors have influence on buying fast food Above 25% participants have selected “somewhat agree” with factors have influence their behavior buying fast food Near about 25% participants have selected “neutral” (n= 230 with age; n=218 with education; n=230 with lifestyle) Marketing factors influencing in consumer’s purchasing fast food With mean = 1,87, there was 91,8% participants to buy fast food coursed of quality fast food improving in future There was 80% participants to be influenced by quality service which is improving better in the future (mean = 2,34) There was 79,5% participants to be influenced by reducing price in the future (mean = 2,51) There was 71% participants to be influenced by massage media changing (mean = 2,73) Conclusion Frequency of using fast food was 2-3 times/month with participants of age 26-35 year; small business or office occupation; tertiary education, 250$350$ average monthly income and amount of money spent on fast food per month $20-30$ Participants worried with types of common diseases through near about the same percentage statistic (when have used much fast food) This showed that people have concerned with healthier meals However, consumers still have focused on diabetes and overweight Customers cared very much about the rebate period to show that the current price maybe has been higher than the per capita income of citizen Adverts such as interior outlets, design menu, bill-board, and journal articles… were very useful in stimulating fast food consumption Eye-catching bill-board in the outlets on the streets or at the amusement parks or shopping centers has made consumers to be awareness of foreign fast food brands Top brands in Hanoi, Vietnam were: KFC, Lotteria, BBQ and Pizza Hut The main reason for buying with participants who have had average income $ 250 $ -350 often to eat fast food with friends is "time limitation" Age 2-35 year and above 35 year came to outlets with family for “can’t cook” reason Other participants would explore foreign fast food because of “taste” reason Item choices at outlets with ranked respectively: Fried chicken, pasta, all of pizza, burger and dried chicken 40,5% soft drink choices; 28,8% flavored water choices; 17,8% fruit juice choices; 13% pure water choices If consumers bought fast food affected by product quality, service quality and price; it means that they will buy fast food if all of these factors are being improved in a positive direction Participants bought fast food were influenced by adverts; it means that they will buy fast food because of media massage Recommendation - The first conclusion: Frequency of using fast food was 2-3 times/month with participants of age 26-35 year; small business or office occupation; tertiary education, 250$-350$ average monthly income and amount of money spent on fast food per month $20-30$ This result shows that there may be potential for exploitation, customer’ spending can be more than their average income for fast food every month - The fourth conclusion: Adverts such as interior outlets, design menu, bill-board, and journal articles… were very useful in stimulating fast food consumption - The sixth conclusion: The main reason for buying with participants who have had average income $ 250 $ -350 often to eat fast food with friends is "time limitation" Age 2-35 year and above 35 year came to outlets with family for “can’t cook” reason Recomendation: Adverts and message media should be focused on public relation (PR) activities  Organize contests with bonus for children and teenager such as: drawing competition, answer the questions to find out about its history and fast food brand development…  Implement sponsored activities for children’s or teenager’s entertainment shows on television such as: “Đồ rê mí”, “The voice kids”…; sponsor for competition of sports for youth  Organize charitable programs for children today, tomorrow the world which reduces malnutrition percentage of children… Recomendation: Quality service should be improved Customers had been being satisfied with the attitude and style of the current serving staff in the fast food restaurants This proves that they have been trained and trained well (Vinareaserch, 2012) But now the main reason which customers are not satisfied is it takes long time from ordering to getting fast food dishes Especially it is significant on holidays This can be improved by strengthening the kitchen equipments and hire more chefs to serve faster multiple orders at once With pizza, it is very easy and convenient to order for home delivery service, other kind of fas food has found that to be not easy The main reason for buying with participants often to eat fast food with friends is "time limitation" to suggest that supplier should use more service and quickly - The fiveth conclusion: Eye-catching bill-board in the outlets on the streets or at the amusement parks or shopping centers has made consumers to be awareness of foreign fast food brands Top brands in Hanoi, Vietnam were: KFC, Lotteria, BBQ and Pizza Hut - The thirth conclusion: Customers cared very much about the rebate period to show that the current price maybe has been higher than the per capita income of citizen The price of the products depends on many factors cost It is worthwhile to mention such the cost of goodwill space locations, convenient on major streets, food hygiene and safety for ensuring quality, store decorations… Recomendation: Mining sites in the high-rise apartment buildings, not necessarily the location on the main street costly expenses After dominating market share, are people aware of the brand, the business can exploit these locations are not sold in the major streets, which can focus on the highrise apartment buildings Because apartment buildings have been built more, it includes the overall performance: schools, supermarkets, amusement parks, and offices for rent - The second conclusion: Participants worried with types of common diseases through near about the same percentage statistic (when have used much fast food) This showed that people have concerned with healthier meals However, consumers still have focused on diabetes and overweight Recomendation: Quality fast food should be improved  Commitment to customers to use fresh chicken material Build a chicken farm where enterprises support of technical caring, epidemic prevention and quarantine Because if chickens are flu infected this will make the price of raw chicken increases, while output prices can not be immediately increased Raw material would not be imported can reduce production costs This model likes Vinamilk company has successfully developed dairy farms  Commitment to customers to use fresh vegetables Fresh vegetables farms will help consumers avoid common diseases such as diabetes, cancer But they have to be built with supporting the same with chicken farm  Experiment processing of fast food meals to suitable with Vietnamese’ tastes 10 For example, hamburger (burger) is a food with ground meat (usually beef), little lettuce and onion in the middle of soft round bread Suppliers could get ground pork, or liver pate, or grilled pork bacon substitute for ground beef; sliced cucumber could be substitute for onion… Pineapple is a fruit now used mainly for baking pizza, but the manufacturers may use different types of vegetables such as peas, corn, white beans, red beans Additional many different types of salad for diversity with various mixed vegetables Those kinds of food will be suitable for the older and people who care about healthier meal Vegetarian pizza and vegetarian pasta sauce would be good choices too This way can reduce production costs Output price could be decreased to encourage more consumption fast food Limitations and further research The scope of my thesis is study in districts of Hanoi, rather than a large scale in whole Vietnam country Therefore, the study results also need to be tested further in other areas Because of differences in climate, lifestyle, consumption habits between North and South Vietnam Therefore, the need for further research on the factors affecting on customer’s decision to purchase fast food In addition, studies are only of describing the statistical relationships between variables to identify customer concerns for fast food, the author not to mention the weight of each factor affecting purchase behavior Because of authors lack of knowledge of using dummy variables to build a set of regression factors affecting the fast food purchases This maybe to test in the future 11 [...]... study in 4 districts of Hanoi, rather than a large scale in whole Vietnam country Therefore, the study results also need to be tested further in other areas Because of differences in climate, lifestyle, consumption habits between 2 North and South Vietnam Therefore, the need for further research on the factors affecting on customer’s decision to purchase fast food In addition, studies are only of describing... addition, studies are only of describing the statistical relationships between variables to identify customer concerns for fast food, the author not to mention the weight of each factor affecting purchase behavior Because of authors lack of knowledge of using dummy variables to build a set of regression factors affecting the fast food purchases This maybe to test in the future 11 ... Additional many different types of salad for diversity with various mixed vegetables Those kinds of food will be suitable for the older and people who care about healthier meal Vegetarian pizza and vegetarian pasta sauce would be good choices too This way can reduce production costs Output price could be decreased to encourage more consumption fast food Limitations and further research The scope of my thesis...For example, hamburger (burger) is a food with ground meat (usually beef), little lettuce and onion in the middle of soft round bread Suppliers could get ground pork, or liver pate, or grilled pork bacon substitute for ground beef; sliced cucumber could be substitute for onion… Pineapple is a fruit now used mainly for baking pizza, but the manufacturers may use different types of vegetables such