The purchase intention of Vietnamese consumers living in Ho Chi Minh City towards a global brand from the US versus domestic brands of Vietnam

ABSTRACT:

This study explores influence of several factors on the purchase intention of young consumers living in Ho Chi Minh City towards products of Calvin Klein and domestic brands. Based on the cognitive-affective model of buying intention, this study examines the correlation among the need for uniqueness characteristics of Vietnamese consumers, elements (perceived quality, emotional value) and the purchase intention of Vietnamese consumers. This study was conducted with 172 valid answers from young customers aged 18 to 35, living in Ho Chi Minh City. By using the Structural Equation Modeling (SEM), this study finds that there is a positive and significant correlation between Vietnamese needs for uniqueness and attitudes toward American products. In addition, the study’s findings show that there are an insignificant correlation between the attitudes towards American goods and the perceived quality and an insignificant correlation between the consumer emotional value towards domestic brands. Meanwhile, this study reveals a positive and significant correlation among the attitudes towards American goods and the perceived quality and the consumer emotional value for the Calvin Klein brand. Furthermore, the study finds that the emotional value has a positive and significant relationship with the purchase intention for both Calvin Klein and domestic brands.

Keywords: Consumers, purchase intention,global brands, local brands.

1. Introduction

Customers choose one product based many criteria as emotional value (display of wealth, status, prestige), benefits they get (high quality, low price, discount). Consumers in developing countries tends to get a life that is similiar to some developed countries (America, United Kingdom,…) this leads to the purchasing of foreign brands (Kinra, 2006). The disparities between high income and lower income and the validity of status exist in almost developing countries. As the result of this, the purpose of using foreign brand is showing the social standing (Kottak, 1990).

There have been several studies on Vietnamese consumers attitude on the foreign brands (To Linh Nhan, Minh Tinh Le, 2019; Hai Chung Pham and Barry Richards, 2015). This study is aimed at the Vietnamese customers purchase attention in relation to U.S. brands and local brands.

2. Literature Review

2.1. Need for uniqueness

Synder & Fromkin (1980) uniqueness theory illustrated that people aspire to reach a mild degree of similarity with others. Jane E. Workman, Laura K. Kidd (2000) illustrated that the need for uniqueness is expressed publicly and in observable behaviors of self- designed to create a moderate sense of difference, the actions are verifiable as being measurable.

2.2. Perceived quality

According Joseph Yu et al (2005), perceived quality is the only mechanism that affects consumer service in a constructive and clear way.

2.3. Emotional value

Emotional value tests the supposed utility that consumers equate with a product or service's potential to arouse emotions or affective states (Sheth et al, 1991). Sheth et al also illustrate that goods and services are also socially sensitive such as an romantic dinner with rose, the fear feelings appear when watching horror movie. Emotional reactions are conditioned by the rewards of a product or service a customer receives from (Sweeney, J. C. & Soutar, G. N., 2001).

2.4. The cognitive-affective model

According to Li et al. 1994, cognitive-affective causes influence on purchase intention.. The model shows that not only the cognitive element (perceived quality) but the affective factor (emotional value) directly or indirectly influence on the willing to pay.   

  Figure 1: Conceptual Model

2.5. Customers’ need for uniqueness influences on attitudes toward American products

The concept of the need for uniqueness in consumers derives from the philosophy of uniqueness by Snyder and Fromkin (1977). Following Kelly Tepper Tian, William O. Bearden, and Gary L. Hunter (2001), the need for uniqueness of consumers is characterized as the characteristic of seeking distinction in relation to others by purchasing, using and disposing of summer goods in order to establish and enhance one's self-image and social image. According to Fromkin (1970), each individuals have a need for uniqueness (or can call it as sepearate identity).

H1: Vietnamese (Ho Chi Minh city) consumers get high positive attitudes towards American products as the need for uniqueness increases.

2.6. Attitudes toward American products impact on percieved quality and emotional value

Pereived quality was recognized as a cognitive response to a goods, that strongly influences product purchase intention according to cognitive – affective model of Kamar (2009). The country of origin gets direct effect on customer’s evaluation of the products (Peeter W.J. Verlegh, 2001. According to To Linh Nhan and Minh Tinh Le (2019), young customers in Vietnam appriciate the quality of products originated from Western. Moreover, Hai Chung Pham and Barry Richards (2015) finds that Vietnamese youth prefers Western brands than domestic brands.

H2a: Attitude toward American product grows, Vietnamese customers perceive U.S. brand to achieve high quality.

H2b: Attitude toward American product grows, Vietnamese customers perceive local brand to achieve low quality.

Kinra (2006) found that in some of developing country, customers link global brands with some positive sympothic meanings as wealth, status, health that can increase customer emotional value

H3a: The attitudes toward U.S. products increase, Vietnamese customers perceive a U.S. brand to have high emotional value.

H3b: The attitudes toward U.S. products increase, Vietnamese customers perceive a local brands to have low emotional value.

2.7. Perceive quality and emotional value affect on customers purchase intention

By the model framework, both perceived quality and emotional value affect on consumers’ purchase intention.

H4a: The perception of American products quality enhances, Vietnamese customers grow their purchase intention to U.S. brands.

H4b: The perception of local products quality enhances, Vietnamese customers grow their purchase intention to the local brands.

Besides the high products’ quality, the brands have to concern to the emotional value as well for increasing the number of consumers.

H5a: The perception of American brands’ emotional value of customers increases, the increasing in purchase intention to U.S. brands of Vietnamese.

H5b: The perception of local brands’ emotional value of customers increases, the increasing in purchase intention to local brands of Vietnamese.

3. Methodology

The study includes U.S. and local clothing brands.Participants were people from 18 to 35 years old in a variety of majors in Ho Chi Minh City. The sample size is measured at least 150 usable responses because of Roger (2006), the sample size at least is equal to five multiplies with the questions in the survey. This study uses 172 acceptable responses.

The U.S. apparel brand is Calvin Klein, as focus group interviews revealed that Calvin Klein was popular brands for Vietnamese.

The measurement of individual characteristics and brand specific variables including the need for uniqueness, behavior and attitude toward products, perceived quality, emotional value, purchase intention. Each was put on a 5-point scale ranging from strongly disagree and strongly agree.

The item “Need for uniqueness” scales are based on the model and scale of Tian et al. (2001). They identified three dimesions, which can estimate the level of “Need for uniqueness” of customers, namely in the study is the Vietnamese consumers, that are creative choice counter conformity, and avoidance of similarity. The item “Attitudes toward American products” scale is built following to the model of Shimp and Sharma (1987), “Perceived quality” from the model of Dodds et al. (1991) and the item “Emotional value” from model of Sweeney and Soutar (2001). In addition, the measurement for “Purchase intention” includes two items: the intention to buy brand frequently, and planning to buy brand more often.

4. Data Analysis and Results

4.1. Reliability test

The result shows that the Cronbach’s Alpha of all factors is almost higher than 0.7.

4.2. KMO and Barlett’s test

The EFA test for independent variables includes the following indicators:

The condition for KMO is that 0.5 <KMO <1, the result is KMO = 0.781. That means the real data fits with the EFA.

The Bartlett test has Sig = 0.000 which is lower than 0.05, which means the observed variables have a linear relationship with the representative factors.

Total Variance = 75.157 then the percentage of variance of the data is 75.157%.

4.3. Confirmatory factor analyses (CFA)

CFA analysis results show the figures that: CMIN / df = 2.682; CFI = 0.865; TLI = 0.844; RMSEA = 0.099. As the result of this, the model is not appropriate for practical data in the market.

Using software-based calculation of CR and AVE values shows that the PIB value has not reached the convergence value and in which PIB4 observations are reported to be removed in order to get a good value. And also in this run, the author has joined the covariance to increase the model's compatibility and the results are as follow:

        Figure 2: CFA in AMOS model (the second time)

The analysis results which shown in figure 3 illustrate that: CMIN / df = 1,412; CFI = 0.969; TLI = 0.963; RMSEA = 0.05, as the results of this, the model is comformable for the figures and the data in reality of the market.

4.4. Structural Equation Modeling (SEM) analysis

                                        Figure 3: SEM model in AMOS

Based on the SEM model, the results include: CMIN/df = 1,567; CFI = 0.956; TLI = 0.950; RMSEA = 0.075 therefore, the model is favorable for data in the practical market.

Table 1: The estimation results (Estimated Coefficients - r)

4.5. Hypotheses testing

From the results above, the study supports H1, H2a, H3a, H4b, H5a, and H5b; however, the study doesn’t support H2b, H3b, and H4b.

It means the study finds out a positive and significant relationship between Vietnamese (Ho Chi Minh city) consumers ‘attitudes towards American products and their need for uniqueness. The study also finds out some positive and significant relationships: the attitude toward American product grows and Vietnamese customers perceive U.S. brand to achieve high quality; the attitudes toward U.S. products increase and Vietnamese customers perceive a U.S. brand to have high emotional value; the perception of local products quality enhances, Vietnamese customers grow their purchase intention to the local brands; the perception of American brands’ emotional value of customers increases and the increase in purchase intention to U.S. brands of Vietnamese; the perception of local brands’ emotional value of customers increases and the increase in purchase intention to local brands of Vietnamese customers. The study doesn’t find out significant relationships: the attitude toward American product grows and Vietnamese customers perceive local brand to achieve low quality; the attitudes toward U.S. products increase and Vietnamese customers perceive a local brands to have low emotional value; the perception of American products quality enhances and Vietnamese customers grow their purchase intention to U.S. brands.

5. Conclusion and Recommendation

This research demonstrates the impact of both affective components and cognitive elements influence on the Vietnamese purchase intention of two brands that are local brand and Calvin Klein that using cognitive-affective model. In addition, this study also is a response to the study on need for uniqueness of Workman and Kidd (2000). Besides, this study also illustrates that the need for uniqueness has the affect on the Vietnamese attitude toward American products.

 

REFERENCES:

1. Chwo-ming Joseph Yu, Lei-yu Wu, Yu-ching Chiao, Hsing-shia Tai. (2005). Perceived quality, customer satisfaction, and customer royalty: the case of Lexus in Taiwan. Total quality management, 16, 6, 707-719.
2. David Garvin. (1984). What does “product quality” really mean? Slogan management review.
3. Dodds WB, Monroe KB, Grewal D. (1991). Effect of price, brand, and store information on buyers' product evaluations. Journal of Marketing Research, 28(307), 19.
4. Fromkin, H. L. (1970). Effects of experimentally aroused feelings of undistinctiveness upon valuation of scarce and novel experiences. Journal of Personality and Social Psychology, 16(3), 521-529
5. Hai Chung Pham, Barry Richards. (2015). Western brands in the minds of Vietnamese consumers. Journal of Consumer Marketing, 32, 5.
6. Jane Workman, Laura K. Kidd. (2000). Use of need of uniqueness scale to characterize fashion consumers group. Clothing and textiles research journal, 18.
7. Kelly Tepper Tian, William O. Bearden, Gary L. Hunter. (2001). Consumers’s need for uniqueness: Scale and validation. Journal of Comsumer Research, 28, 50-66.
8. Kinra N. (2006). The effect of country-of-origin on foreign brand names in the Indian market. Marketing Intelligence & Planning, 24(1),15-30.
9. Kottak CP. (1990). Prime Time Society. CA: Wadsworth.
10. Li W-K, Monroe KB, Chan DKS. (1994). The effects of country of origin, brand, and price information: A cognitive-affective model of buying intentions. Advances in Consumer Research, 21, 449-57.
11. Neelam Kinra. (2006). The effect of country-of-origin on foreign brand names in Indian market. Marketing Intelligence & Planning, 24(1), 15-30.
12. Peeter W.J. Verlegh, Jan-Benedict E.M. Steenkamp (1999). A review and meta analysis of country-of-origin research. Journal of Economic Psychology, 20(5), 521-546.
13. Sheth, J. N., Newman, B. I., & Gross, B. L. (1991). Why we buy what we buy: A theory of consumption values. Journal of Business Research, 159-170.
14. Snyder, C. R., & Fromkin, H. L. (1977). Abnormality as a positive characteristic: The development and validation of a scale measuring need for uniqueness. Journal of Abnormal Psychology, 518-527.
15. Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77(2), 203-220.
16. Terence Shimp, Subhash Sharma. (1987). Consumer Ethnocentrism: Construction and Validation of the CETSCALE. Journal of Marketing Research, 24(3), 280-289.
17. To Linh Nhan, Minh Tinh Le (2019). Western fashion brand in the eyes of Vietnamese millennials. JÖNKÖPING International Business School.
18. Workman JE, Kidd LK. Use of the need for uniqueness scale to characterize fashion consumer groups. Cloth Text Res J 2000,18(4), 227-36.

 

Ý ĐỊNH MUA HÀNG CỦA KHÁCH HÀNH THÀNH PHỐ HỒ CHÍ MINH ĐỐI VỚI THƯƠNG HIỆU TOÀN CẦU (HOA KỲ) VÀ THƯƠNG HIỆU NỘI ĐỊA

TS. CAO MINH MẪN

Khoa Quản trị Kinh doanh,

Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

TÓM TẮT:

 Nghiên cứu được tiến hành trên những khách hàng trẻ tại TP. Hồ Chí Minh. Nghiên cứu tìm hiểu ảnh hưởng của một số yếu tố đến ý định mua đối với thương hiệu Calvin Klein và thương hiệu nội địa. Căn cứ vào mô hình ảnh hưởng nhận thức của ý định mua, nghiên cứu kiểm tra mối quan hệ giữa nhu cầu của khách hàng về những đặc điểm riêng biệt, những nhân tố (như: chất lượng cảm nhận, giá trị cảm xúc), và ý định mua của họ. Nghiên cứu sử dụng 172 câu trả lời hợp lệ của những khách hàng trẻ trong độ tuổi từ 18 đến 35, đang sinh sống tại TP. Hồ Chí Minh. Sử dụng SEM (mô hình phương trình cấu trúc), nghiên cứu tìm ra mối quan hệ thuận chiều, đáng kể giữa nhu cầu của khách hàng về những đặc điểm riêng biệt và thái độ của họ đối với hàng hóa Mỹ. Thêm vào đó, nghiên cứu cũng tìm ra mối quan hệ không đáng kể giữa thái độ đối với hàng hóa Mỹ và chất lượng cảm nhận, cũng như giá trị cảm xúc của người tiêu dùng đối với thương hiệu nội địa. Trong khi đó, nghiên cứu tìm thấy mối quan hệ thuận chiều và đáng kể giữa thái độ đối với hàng hóa Mỹ và chất lượng cảm nhận, cũng như giá trị cảm xúc của người tiêu dùng đối với thương hiệu Calvin Klein. Hơn nữa, nghiên cứu tìm ra giá trị cảm xúc có mối quan hệ thuận chiều và đáng kể với ý định mua đối với thương hiệu Calvin Klein và thương hiệu nội địa.

Từ khóa: Người tiêu dùng, ý định mua hàng, thương hiệu toàn cầu, thương hiệu nội địa.

[Tạp chí Công Thương - Các kết quả nghiên cứu khoa học và ứng dụng công nghệ,

Số 19, tháng 8 năm 2020]