Embed Size (px)
DESCRIPTION
In order to give description and measurement of the factors influencing consumers’ purchasing intention toward online group buying, this study tries to identify and measure the factors from not only economic perspective, e.g. price related factors, but also other perspectives such as network effect, conformity, trust, etc.
Citation preview
FACTORS INFLUENCING CONSUMERS’ PURCHASING INTENTION
TOWARD ONLINE GROUP BUYING IN HO CHI MINH CITY
December 2013
Overview
¨ Business background ¨ Research objec6ves ¨ Methodology ¨ Results ¨ Conclusion & Recommenda6ons
2
Business background 3
Online group buying model 4
¨ Win-‐win situa6on ¤ Consumers can buy low price products ¤ Businesses can introduce products to more customers ¤ Group buying website can earn revenue
Vouchers Ad
Discounts
Offer products/services
Redeem products/services with vouchers
Suppliers Consumers Group buying website
Demand & supply in Vietnam 5
¨ Demand
83%
44% 29% 52%
17%
56% 71% 48%
HCM Ha Noi Da Nang Total
Rate of awareness about online group-‐buying
No
Yes 60%
11% 35% 42%
40%
89% 65% 58%
HCM Ha Noi Da Nang Total
Rate of buying vouchers
No
Yes
¨ Supply ¤ 100 websites ¤ 15 popular websites ¤ Leading market: NhomMua, HotDeal, MuaChung, CungMua
¨ Target customers ¤ Frequently use Internet ¤ Interested in promo6onal products ¤ Young (16 – 35 years old) ¤ Major ci6es
¨ Poten6al customers ¤ Frequently use Internet ¤ Rarely used online shopping ¤ Have shopping demands ¤ Urban ci6es
Source: FTA report (2011) Source: FTA report (2011)
Trend 6
¨ Online group buying becomes a new trend in shopping
¨ Increase of smartphone usage ¨ Emergence of secondary market ¨ Unless online group buying websites make difference and find out their own way, it’s tough to gain market share & be profitable
Research objec6ves 7
Problem statement 8
¨ Consumers’ economic perspec6ve ¤ Online group buying provides compe66ve discounts
¨ Concerns and disappointments ¤ Difficul6es of usages ¤ Disqualified quality of goods ¤ Delay of deliveries
¨ This study examines the factors influencing customers’ purchasing inten6on toward online group buying. ¤ Economic, social, psychological perspec6ve
Objec6ves 9
¨ To iden6fy the key factors influencing consumers’ purchasing inten6on toward online group buying
¨ To examine how these key factors influence consumers’ purchasing inten6on toward online group buying
¨ To give recommenda6ons to online group buying enterprises for improvements to increase opportuni6es of purchasing from users
Methodology 10
Proposed conceptual model 11
IntenXon Price consciousness
Price sensiXvity
Conformity
Network effect
A[tude SubjecXve norm Trust
H1a
H1b
H2
H1c
H3a H3b H3c
Economic perspec,ve
Social perspec,ve
Psychological perspec,ve
Shih-‐Ming et al (2011) Fishbein & Ajzen (1975, 1980)
Variables (1) 12
Variables DefiniXon Source
Economic perspec6ve
Price sensi6vity Responses to changes or differences in prices for products or services.
Shih-‐Ming et al (2011)
Price consciousness
Resistance to pay a higher price for a product or focusing on seeking lower prices.
Shih-‐Ming et al (2011)
Network effect A phenomenon in which a perceived value of a product or service increases when more people use it.
Shih-‐Ming et al (2011)
Social perspec6ve
Conformity A change in aktudes, beliefs, or behaviors to fit into group norms.
Shih-‐Ming et al (2011)
Variables (2) 13
Variables DefiniXon Source
Psychological perspec6ve
Trust Confidence that an individual has when the individual expects others will do what they expected.
Shih-‐Ming et al (2011)
Aktude Individual's beliefs about the behavior (behavioral beliefs) and individual's beliefs about the outcomes of performing the behavior (evalua6on of behavioral outcomes).
Fishbein & Ajzen (1975, 1980)
Subjec6ve norm
Individual's norma6ve beliefs and mo6va6on to comply with beliefs.
Fishbein & Ajzen (1975, 1980)
Inten6on Individual's readiness to perform the behavior. Fishbein & Ajzen (1975, 1980)
Hypotheses 14
No. Hypothesis
H1a Consumers’ price sensi6vity is posi6vely associated with consumers’ purchasing inten6on toward online group buying.
H1b Consumers’ price consciousness is posi6vely associated with consumers’ purchasing inten6on toward online group buying.
H1c Network effect is posi6vely associated with consumers’ purchasing inten6on toward online group buying.
H2 Consumers’ conformity is posi6vely associated with consumers’ purchasing inten6on toward online group buying.
H3a Consumers’ trust on the online group buying website is posi6vely associated with consumers’ purchasing inten6on toward online group buying.
H3b Consumers’ aktude about online group buying is posi6vely associated with consumers’ purchasing inten6on toward online group buying.
H3c Consumers’ subjec6ve norm for online group buying is posi6vely associated with consumers’ purchasing inten6on toward online group buying.
Qualita6ve research 15
¨ Focus group ¤ 9 par6cipants ¤ Loca6on: Ho Chi Minh City ¤ Age: 20 – 35 ¤ Gender: 3 males, 6 females ¤ Occupa6on: student, engineer, secretary, func6onal manager
¤ Have bought goods/services by online group buying ¨ Discussion
¤ Share and discuss their experiences regarding to online group buying
¤ Why they decide or deny to purchase
Quan6ta6ve research 16
¨ Target samples ¤ Gender: Male / Female ¤ Age: 16 – 45 ¤ Area: Ho Chi Minh City ¤ Condi6on: Have visited online group buying
websites ¤ Size: 300
¨ Ques6onnaire ¤ Filter respondents by age, loca6on, and condi6on
of visi6ng online group buying websites ¤ Get further informa6on about of gender,
occupa6on, and income ¤ Collect informa6on to measure the variables
(Likert scale) ¨ Convenience sample method ¨ Publish ques6onnaire on Google Drive, link was
sent through mailing lists and social network websites
Results 17
Qualita6ve research – Result 18
¨ Economic perspec6ve ¤ Have possibility to change purchase inten6on if recognized that price is significantly changed
¤ Have stronger inten6on to purchase if they saw that there were more other people are also purchasing or using the same product
¤ Wouldn’t purchase high-‐end products or services ¨ Social perspec6ve
¤ Searching for such product was some kind of hobby ¨ Psychological perspec6ve
¤ Thought online group buying is good and useful ¤ Thought friends’ recommenda6ons were trustworthy ¤ Didn’t have the absolute trust toward online group-‐buying
Sample descrip6ve sta6s6cs 19
12%
86%
2% Age
16 -‐ 25
26 -‐ 35
36 -‐ 45
47%
53%
Gender
Female
Male
80%
6%
2% 8% 4%
Occupa6on
Employee
Self-‐employee
Employer
Student
Re6red/Unemployed
16%
12%
43%
29%
Monthly income
< 5 MVND
5 -‐ 10 MVND
10 -‐ 20 MVND
> 20 MVND
90%
10%
Internet access
Many 6mes /day
Once /day
Constructs descrip6ve sta6s6cs 20
Rank Construct Mean
1 PRS (Price sensi6vity) 3.4210
2 PRC (Price consciousness) 3.4117
3 TRU (Trust) 3.4024
4 ATT (Aktude) 3.4011
5 SUN (Subjec6ve norm) 3.3997
6 CON (Conformity) 3.3971
7 NEE (Network effect) 3.3944
PUI (Purchase inten6on) 3.3772
Regression analysis – Result 21
Coefficientsa Model Unstandardized
Coefficients Standardized Coefficients
t Sig.
B Std. Error
Beta
1
(Constant) -‐5.675E-‐019 .032 .000 1.000 PRS .223 .063 .223 3.523 .001 PRC .172 .057 .172 3.032 .003 NEE .127 .061 .127 2.092 .037 CON .140 .062 .140 2.253 .025 TRU .008 .061 .008 .129 .898 ATT .179 .058 .179 3.096 .002 SUN .133 .054 .133 2.480 .014
a. Dependent Variable: PUI
Model Summary Model R R Square Adjusted R
Square Std. Error of the Es6mate
1 .863a .745 .738 .51201780 a. Predictors: (Constant), SUN, TRU, PRC, ATT, NEE, CON, PRS
The model explains 73.8% of change of
dependent variable of purchasing intenXon
Trust on the website (p > 0.05) has no
significant impact on purchasing intenXon
Result model 22
IntenXon Price consciousness
Price sensiXvity
Conformity
Network effect
A[tude SubjecXve norm Trust
+ 0.223
+ 0.172
+ 0.140
+ 0.127
(ns) +0.008 + 0.179 + 0.1333
Economic perspec,ve
Social perspec,ve
Psychological perspec,ve (ns) non-‐significant
Results of hypothesis tes6ng 23
No. Hypothesis p value Result
H1a Consumers’ price sensi6vity is posi6vely associated with consumers’ purchasing inten6on toward online group buying. P < 0.05 Supported
H1b Consumers’ price consciousness is posi6vely associated with consumers’ purchasing inten6on toward online group buying. P < 0.05 Supported
H1c Network effect is posi6vely associated with consumers’ purchasing inten6on toward online group buying. P < 0.05 Supported
H2 Consumers’ conformity is posi6vely associated with consumers’ purchasing inten6on toward online group buying. P < 0.05 Supported
H3a Consumers’ trust on the online group buying website is posi6vely associated with consumers’ purchasing inten6on toward online group buying.
P > 0.05 Not supported
H3b Consumers’ aktude about online group buying is posi6vely associated with consumers’ purchasing inten6on toward online group buying.
P < 0.05 Supported
H3c Consumers’ subjec6ve norm for online group buying is posi6vely associated with consumers’ purchasing inten6on toward online group buying.
P < 0.05 Supported
Conclusion & Recommenda6ons 24
Conclusion 25
Rank Factors
1 Price sensi6vity
2 Aktude
3 Price consciousness
4 Conformity
5 Subjec6ve norm
7 Network effect
Trust on the website has no significant
impact on purchasing intenXon
Managerial recommenda6ons 26
¨ Adapta6on of consumers’ price sensi6vity ¨ Understanding consumers’ aktude about online group buying
¨ Sekng price policy based on consumers’ price consciousness
¨ Enhancing conformity ¨ Delivering posi6ve informa6on to subjec6ve norm for online group buying
¨ Enlarging network effect
Thank you
