ABSTRACT:
The recent decades has witnessed the significant increase in a range of online shopping industries. The E-tailing has influenced how customers purchase in the market. Several researches highlighted that the Internet shopping is one of the most preferences to many people. Associated with this trend, the online retail market for textiles is very potential in Vietnam. Young Vietnamese customers seem to purchase products such as textiles on the Internet in a comparison with the physical stores. The main purpose of the research examines which factors impact on Vietnamese consumer behavior to purchase online.
Keywords: Online behavior, Vietnam, purchasing.
Internet shopping issues are getting popular among the business and researchers. Several studies highlighted that the Internet shopping has been improving and popular to the world. It is noteworthy that the Internet shopping has increased in developing nations and developed counties such as Europe. Specifically, the value of Internet shopping of UK and France increased by 15.8% and 16.6% respectively (warc.com, 2014). In Asia, the capacity of Chinese Internet transactions increased from RMB 261 billion in 2009 to 523billion RMB in 2010 (Jun, 2011). Associated with the global trend, Vietnam is forecasted to be the potential nation in aspect of online shopping. The globalization and Internet growth transform the way Vietnamese doing business.
2. Literature review
2.1. Online decision-making
Internet purchasing behaviour is the procedure of buying products and services through the Internet (Moshreft Javadi et al., 2012). Claudia (2012) states that online purchasing process includes three stages such as pre-purchase stage, purchase stage and post-purchase stage. The online buying process is indicated that the Internet purchasing behaviour experiences six stages including problem recognition, information search, evaluation, decision-making, purchase and post-purchase.
Furthermore, the role of customers is highlighted in functional theory and the functional theory. From the consumer behavior perceptiveness, trust is the main issue to forecast the purchasing behavior. Some debates argue that the significant difference between online and offline behaviour is individual behaviour (Lee et al., 2002). The online products also generate some factors including financial or product risk, product variety and information sources.
2.2. E- marketing strategy
The marketing concept indicates as one driver of Internet purchasing behaviour since it influences the consumer behaviour transformation. The marketing paradigm, in turn, transforms itself in online retailing. According to Booms and Bitner (1981), the 4Ps paradigm transforms into 7Ps. In some aspects, Internet could reflect the marketing aspect. The new development of IT, technology and computing power are challenging to understand consumer behavior through the marketing strategy (Robins, 1991). Specifically, previous studies advocate that the marketing transformation factor generates new ways in reflecting Internet behaviour (Koufaris, 2002).
First and foremast, the traditional marketing (4Ps) fails to persuade online shoppers since some products could be services or “online product experiences” (Chaffey and Smith, 2008, pp. 49-55). Furthermore, because of the Internet, the marketing concept converts into online marketing that optimizes interactive information. From some perspectives, they are revolutionary and worthy of a new characterization into the e-marketing delta to the traditional marketing mix (Kalyanam and McIntyre, 2002).
2.3. Factors influence on online shopping behaviour
2.3.1. Product information
While traditional shoppers need to travel to physical stores to gain information about products, cyberspace offers useful information of products (Chailom and Mumi, 2012). Specifically, clear product description and the consideration of product fit are key elements which customers focus on prior purchasing (Kim & Eom, 2002). Noted by Lim and Dubinsky (2004), Internet sellers should offer clear product information; thus, online customers pay more attention on information needs (Keency, 1999). If customers expectations of product performance increase, the potential for product performance problem also increases (Bhatnagar et al., 2000). Unless information meets customer anticipation, it will disappoint Internet purchasers (Liu and Guo, 2008).
2.3.2. Product outlook
Consumer behavior is also impacted by the accuracy of the products displayed. Varying technology may make it difficult to represent the true colors or dimensions of a product. This distortion made consumers uneasy about making an online purchase therefore, negatively affecting online shopping behaviour (Eroglu, Machleit & Davis, 2003).
Online products, furthermore, contain potential risks of purchasing and it seems the main pitfall for Internet shoppers. There are some main pitfalls when customers purchase products online. These issues are derived from product performance risk, which impacts on customer decision (Forsythe and Shi, 2003). As a result, selling online could expand the risk of buying and it is likely to form a barrier wall between the sellers and customers. However, the creation of technology decreases the risk and to some extent eliminates the obstacle (Chailom and Mumi, 2012).
2.3.3. Product features
These products that require experiences are not preferred to purchase online. Advocated by Lynch et al. (2001), high touch products are essential to examine before customers purchase. Customers raise awareness of purchasing sensory products through online channels (Goldsmith and Flynn, 2005) since online environment limits in touching and inspecting product features (Comegys et al., 2009). Additionally, the customers expect the good quality and expected standards of products which are similar to traditional commerce. However, some authors suggest that product quality is core feature of products which persuade customers to purchase online. As noted by Ahn et al. (2004), those customers tend to find an Internet stores with the high quality. If the actual functionality of online products satisfies their expectation, they will prefer online shopping and continue in the future.
2.3.4. Price comparison
Price is one central factor of the consumers decision-making process both in online markets and physical stores; nevertheless, Internet retailers offer customers a range of price comparisons. When customers compare different products, online consumers may use price as an indicator of their decision-making (East et al., 2008, p.197). It, additionally, offers more opportunities to customers to examine price from various websites and find the products with reasonable prices than purchasing from local traditional stores (Lim and Dubinsky, 2004). Customers could figure out price discrimination quickly over the world since suppliers provide various pricing sites based on different nations (Chaffey, 2004).
2.3.5. Cheap price
The Internet price is low and competitive, which attracts customer attention because of many reasons. While the physical stores pay the overhead cost, rental cost, the e-stores yield cost saving in maintaining web stores which will transfer to consumers savings (Abramson and Hollingshead, 1999). As online shopping customers are often gained a better deal, they can get the same product as they buy at store at a lower price (Rox, 2007). It offers more opportunities to customers to examine price from various websites and find the products with reasonable prices than purchasing from local traditional stores (Lim and Dubinsky, 2004).
2.3.6. Money and time saving
Time and money are factors which motivate customers to shop online. According to Chiang and Dholakia (2003), customers save time and cost when they access to the Internet to purchase. Specifically, busy purchasers gain saving time instead of travelling to physical stores (Verhoef & Langerak, 2001). Therefore, Internet users are more comfortable to shop online (Smith and Rupp, 2003). Suggested by Morganosky and Cude (2000), time is the most valuable aspect which impacts on online purchasing behaviour, accounted for 50% of their respondents.
Apart from time, it reduces cost for travelling to physical stores and waiting in traffic jam (Childers et al., 2001). They can purchase products online and they do not go to physical stores (Kotler, 2003). This advantage offers cost savings and economic control, which are considered the positive relationship with Internet shopping behaviour (Charney and Greenberg, 2001). Contrary, these findings from Khalifa and Limayem's (2003) study highlighted that these variables do not influence significantly on online decision-making.
2.3.7. Availability
Since the online retailers offer no time limitation and virtual environment, it is suggested that the purchasing process experienced through the Internet network (Chailom and Mumi, 2012). Specifically, online stores offer consumers a great deal of products without time limitation (Lim and Dubinsky, 2004). These Internet agencies include search engines and online portals to motivate customers to purchase. Since the online retailers offer no time limitation and virtual environment, it is suggested that the purchasing process experienced through the Internet network (Chailom and Mumi, 2012).
2.3.8. Delivery time
It creates order assembly and transportation costs that are not incurred in traditional retailing (Rosen & Howard, 2000). According to the Chartered Institute of Marketing (2009), place is to distribute products at right time, right place and convenient to purchasers. Therefore, correct time for delivery could be essential factor of online purchasing behaviour.
2.3.9. Online discount
By leveraging online sales promotion, the new customers who are not purchasing products before will make their decision for e shopping in short term. Therefore, the online channel can reach the new customers utilizing online products (Markkinointi, 2008). Through power of online promotion and discounts, customers will place an item in their cart since those goods are on sale or the site is offering another type of price promotion, such as a code-based promotion.
The online customers can gain benefits from web-group purchasing. Since they offer e-voucher and online sales promotions such as discounts or free delivery, it could motivate customers to purchase products. Therefore, online discounts “offered on retailing websites would increase consumers' involvement and interaction with those websites” (Khare, 2012).
2.3.10. Community factor
The Internet purchasers seem to consult with family members and friends to determine appropriate decisions (Park and Cho, 2012). Customers have non- experience in purchasing online, the community plays the important role (Taylor and Todd, 1995). It could be the groups such as companies, advertising, social media, or relatives, children and friends and personal influence (Verbeke and Vackier, 2005).
Furthermore, as online social network is the foundation of word of mouth, retailer could optimize this resource. According to Singh and Kaur (2010), the reflection of celebrities demonstrates public awareness which is on the behalf of customer viewpoints. Thus, it is vital to analyze which groups such as family, friends, social network and celebrities are the main divers in online purchasing behavior of clothes in Vietnam.
2.3.11. Website quality
The web quality is from the physical evidence which indicates the ease of utilizing online sites. According to Moorthi (2002), the demand of physical evidence is quite high in searching products. The visual presentation of the e-store is vital to shape customers perceptions (Denis et al., 2004). Web design is consisted of various parts but the most important factors are presentation quality, style (Constantinides, 2004) which includes animation, sounds effects and clarity and readability of the text (Madu & Madu, 2002).
2.3.12. Security trust
Vietnamese customers have some concerns regarding security aspect since there is lack of effective legal framework and accurate policy, which protects benefits of online customers. Stated by Koufaris (2004), the information of customers are probably to be stolen or hacked while transmitting through the Internet. “If a virtual store is not able to effectively demonstrate its commitment to superior data security technologies, few consumers will feel comfortable entrusting the virtual store with their sensitive information” (Chen & Tan, 2004, p.78). Consequently, consumers cannot collect money back since the transaction security is damaged.
2.3.13. Privacy trust
The customer trust is the factor determining business participation and also online shopping behavior since it represents the acceptance of risks such as transaction with e retailers (Reichheld et al., 2000). Furthermore, personal issues could be hacked highly in the online system. Mosuwe et al. (2004) assumes that because of risk in transaction, it is hard that customers could secure against hackers stealing private information on the Internet. Thus, using web to carry out transactions, customers face security, encryption, and transactional privacy issues” (Grewal et al., 2004). Those issues are contributing to the e- trust of customers which influences online purchasing decision.
3. Research methodology and results
It highlighted findings and analysis of the online survey. The questionnaires were delivered to 140 customers; however, 81.4% (114 respondents) accomplished the web survey; 14.2% (20 questionnaires) did not respond and 4% was invalid with errors and typographical problems. The summary of the respondents profile was demonstrated in table 3.1. Then, the descriptive statistics including frequency counting, percentage, mean and standard deviation examines customer demographic factor and general view of online marketing as well as trust aspect. The Pear correlation was used to examine relationship among independent variables (E-marketing and online trust) and depend variable. The following table highlights the respondent profile. (Table 3.1)
The total of valid 114 respondents participated in the survey, which can classify into non- online shoppers and online shoppers. Though customer profile is not the main issue in the study, demographic data reflect general characteristics of e-customers, which impacts on research findings. The sample illustrates that more female purchased online than the number of male (57% and 43% respectively). Broadly speaking, the age and gender of these online shoppers are based on the young and female respondents. This section reflected quantitative correlation following statistical table of consumer profile and mean as well as standard deviation of factors. This analysis delivers the relationship between independent variables and dependent variable. (Table 3.2)
The target of hypothesis is to interpret the strength of relationship between two variables (Zou et al., 2003). Specifically, the correlation among E-marketing aspect (product information, product outlook, product quality, price comparison, cheap price, time and money saving, deliver, online discount, web quality), trust (insecurity trust, privacy trust) and online purchasing intention has been demonstrated in the table. Based on the results, product information reveals strong impact on online purchasing intention (0.35) whereas delivery, security trust and privacy trust influence on Internet purchasing negatively (-0.215, -0,389 and -0,202).
The correlation figure proves that the more delayed delivery they have, the less intention these customers purchase online. Furthermore, online marketers should pay attention to online trust since Internet consumers have limitation in physical contact and services. Furthermore, the insecurity trust and privacy issue impact significantly negative on web quality (-0.598 and -0.315). It indicates that the results come from web quality service. The more qualified web improved, the less insecurity and privacy customers believe in online system. The negative figure of insecurity trust and privacy trust reflect customers concerning on buying products on the Internet while these two independent variables are derived from e-marketing aspect (web quality).
4. Conclusion
This study offers the model of factors which encourage or discourage online purchasing intention. Firstly, it agrees that online marketing is essential to motivate customers to shop online. These factors such as product information, product feature, quality and saving time positively impact on customer intention. One main feature which customers raise awareness on is product features. Similarly, the study supports that customer expectations of product performance increase; therefore, the potential for product performance problem also increases. Unless information meets customer anticipation, it will disappoint Internet purchasers. This different result may explain by time the development for online retailing sector.
Looking precisely at location, recommendation could be offered to online marketing strategy. This research conducted survey in Ho Chi Minh City which has good Internet broadband quality in Vietnam. However, other cities such as Can Tho, Da Nang do not have qualified Internet broadband which may lead to different theories and concepts. From theoretical aspects, future research could mention location as one critical factor of online purchasing behaviour in Vietnam. The online strategy will be synthesized in this trend. Apart from location determinant, culture concept could be established which is impacted by location. Particularly, people tend to be young and open minded in Ho Chi Minh City, residents are more traditional and conventional in Hanoi where people have dissimilar behaviour as in the finding part. Therefore, the future research could collect data in some selected cities where they can make comparisons for online purchasing phenomenon in Vietnam .
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NGHIÊN CỨU CÁC YẾU TỐ ẢNH HƯỞNG ĐẾN HÀNH VI MUA SẮM ONLINE TẠI VIỆT NAM
Ths. Phạm Ngọc Thu Trang
Trường Đại học Ngân hàng Thành phố Hồ Chí Minh
TÓM TẮT:
Những thập kỷ gần đây đã chứng kiến sự gia tăng nhanh chóng trong ngành công nghiệp mua sắm trực tuyến. E-tailing có ảnh hưởng trên thị trường. Một số nghiên cứu nhấn mạnh rằng, xu hướng mua sắm trên Internet là ưu tiên nhất hiện nay, trong đó thị trường bán lẻ hàng may mặc trực tuyến đang rất tiềm năng. Mục đích chính của nghiên cứu là xem xét các yếu tố ảnh hưởng đến hành vi của người tiêu dùng Việt Nam để mua hàng trực tuyến.
Từ khóa: Tiêu dùng trực tuyến, Việt Nam, mua sắm.
Xem tất cả ấn phẩm Các kết quả nghiên cứu khoa học và ứng dụng công nghệ số 5 + 6 tháng 4/2018 tại đây
