UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business

Nguyen Thanh Huong

KEY FACTORS AFFECTING
CONSUMER PURCHASE INTENTION
A STUDY OF SAFE VEGETABLE IN
HO CHI MINH CITY, VIETNAM

ID: 60340102 MASTER OF BUSINESS (Honours)
SUPERVISOR: Dr. Dinh Cong Khai
Ho Chi Minh City – Year 2012 ACKNOWLEDGEMENT

First, I would like to express my gratitude and deepest appreciation to my research
supervisor, Dr. Dinh Cong Khai for his intensive support, valuable suggestions, guidance and

This research is to find out the key factors affecting consumer purchase intention for safe
vegetable product and result shows that the reason is because of safe vegetables’ price and
consumers’ trust for this product. Consumers perceive safe vegetable as high price product as
well as they don’t fully trust in safe vegetable product and that lower their purchase intention
for this product.
Keywords: Safe vegetable, purchase intention, trust, price perception, Ho Chi Minh City,
Vietnam
LIST OF FIGURES
Figure 1. Research model 14
Figure 2. Research process 16
LIST OF TABLES
Table 1. Hypothesis summary 15
Table 2. Masurement scales for trust 16
Table 3. Measurement scales for price perception 17
Table 4. Measurement scales for appearance 17
Table 5. Measurement scales for purchase intention 18
Table 6. Sample specification 21
Table 7. Data coding 22
Table 8. Cronbach’s alpha result 24
Table 9. EFA result of independent variables 25
Table 10. EFA result of dependent variables 26
Table 11. Regression analysis for gender, Income and purchase intention 27
Table 12. Compare mean of purchase intention for income 28
Table 13. Compare mean of purchase intention for gender 29

3.2.3 Measurement scale for safe vegetable’s appearance 18
3.2.4 Measurement scale for consumers’ income and consumers’ gender 18
3.2.5 Measurement scale for consumer purchase intention for safe vegetable 18
3.3 QUALITATIVE RESEARCH 19
3.4 QUANTITATIVE RESEARCH 19
3.4.1 Sample for research 20
3.4.2 Data collection 20
3.4.3 Data analysis 21
CHAPTER 4. RESEACH RESULT AND FINDING DISCUSSION . 22
4.1 SAMPLE SPECIFICATION 22
4.2 DATA CODING 23
4.3 EVALUATION OF MEASUREMENT SCALES 24
4.3.1 Reliability evaluation – Cronbach’s alpha 24
4.3.2 Exploratory Factor Analysis (EFA) 25
4.3.2.1 Exploratory Factor Analysis for measurement scales of independent
factors (trust, price perception, appearance) 26
4.3.2.2 Exploratory Factor Analysis for measurement scales of dependent
factor (purchase intention) 27
4.4. REGRESSION ANALYSIS 28
4.4.1. Testing the impact of demographic factors (gender, income) 28
4.4.2. Testing relationship of trust, price, appearance and purchasing intention . 30
4.4.4. Regression analysis results 33
4.5 FINDING DISCUSSION 33
CHAPTER 5. CONCLUSION, IMPLICATION, LIMITATION AND
FUTURE RESEARCH 36
5.1. CONCLUSION 36
5.2. IMPLICATION 36

knowledge or for their own interest overuse pesticides or non-origin pesticides. A
study reported that Mekong Delta farmers do not only overuse pesticides but also
abuse several banned or restricted products in their vegetable weeding (Nguyen and
Tran, as cited in Luke and Steffanie, 2007, p.1).
Food safety issue becomes more and more serious. Reported by Samira (2012) that
there were 51 death cases from 175 food poisoning cases in Vietnam in 2010 in which
33,2% is from micro organization, 25,2% is from toxin, 10.4% is from chemical and
31.2% is unknown. It is also advised by a hospital in Ho Chi Minh city that 30% –
35% of the hospital’s cancer victims is from food poisoning.
The large numbers of food poisoning cases throughout years in Vietnam together with
the citizen’s increasing standard of living as well as the more concern about their
health, quality and safety of the food they eat create a strong demand of safe vegetable
product. That the demand for safe vegetable is growing rapidly over years creates
huge market opportunities for safe vegetable.
Student: Nguyen Thanh Huong Supervisor: Dr. Dinh Cong Khai
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1.2 PROBLEM STATEMENT AND RESEARCH OBJECTIVE
Understanding the huge opportunities of safe vegetable market; many investors have
begun their investment to this market, however, a surprising reality shows that
investors are facing much difficulty in finding the output for this market, especially in
the context of safe vegetable supply has not met the demand. About supply and
demand of safe vegetable, The Fruit and Vegetable Research Institute reports that
despite the high demand for safe vegetable, there is only small portion of safe
vegetable production compared with ordinary vegetable. In 2009, safe vegetable
production area only accounted for 8.5% of the total area under vegetable production
in Viet Nam which absolutely could not meet consumers’ demand. Added in The
Vietnamplus (“high demand but still low consumption”) that the current productivity
of safe vegetable can only meet 20% of consumers’ demand, however, consumption is
very unstable and especially with low speed in profuse harvest. In the context of

as expand their business and market for safe vegetable. Hence, it is really necessary
that investors as well as the government should understand those factors for their
problem solving.
1.4 RESEARCH METHOD AND STRUCTURE
This research employs a combined method comprising 5 steps:
• Step 1: Review the literatures on determinants of consumer purchase intention
with special attention to those conducted in the context of safe vegetable in
Vietnam. From this, define a list of possible determinants as well as hypotheses
and research model.
• Step 2: Define measurement scales for the research concepts.
• Step 3: Perform qualitative research to evaluate measurement scales
• Step 4: Perform official quantitative research.
• Step 5: Code and analyze data
Student: Nguyen Thanh Huong Supervisor: Dr. Dinh Cong Khai
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Corresponding to this process below structure is proposed for this research:
• Chapter 1: Introduction to introduce research background, research problem,
research objective, research question as well as benefit of the research.
• Chapter 2: Literature review. This chapter reviews theories and selects the
research’s factors as well as formulates the research hypotheses and model.
• Chapter 3: Research methodology. This chapter provides general idea how the
research is designed and implemented.
• Chapter 4: Data analysis, result and finding discussion. This chapter translates
data collected from survey, analyses data as well as discusses the result finding
in connection with theory.
• Chapter 5: Conclusion, implication, limitation and future research. This
Chapter concludes the research finding, provides implication, further
suggestion as well as research limitation.
Student: Nguyen Thanh Huong Supervisor: Dr. Dinh Cong Khai

Student: Nguyen Thanh Huong Supervisor: Dr. Dinh Cong Khai
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Ajzen (1991, p.188) defines attitude toward the behaviour as “the degree to which a
person has a favourable or unfavourable evaluation or appraisal of the behaviour in
question”. A person will hold a favourable attitude toward performing the behaviour if
he or she believes that positive outcomes will be mostly achieved if performing a
given behaviour and vice versa (Sudin et al., 2009, p.68). The more favourable
attitude toward performing a behaviour a person is holding, the stronger intention he
or she will make to perform the behaviour (Ajzen, 1991, p.181 ). Sudin et al. (2009,
p.68) terms the beliefs that underlie a person’s attitude toward the behaviour are
behavioural beliefs.
Ajzen also refers subjective norm as “the perceived social pressure to perform or not
to perform the behaviour” (Ajzen, 1991, p.188). Teresa, Bonnie and Yingjiao (2005,
p.407) makes more explanation for subjective norm as “a function of an individual’s
beliefs that specific individuals or groups think he/she should or should not perform
the behaviour”. Added by Sudin et al. (2009, p.68) that “ a person who believes that
most referents with whom he is motivated to comply think he should perform the
behaviour will receive social pressure to do so”.
In another way, the TRA says that the more favourable attitude a person is holding
toward performing behaviour, the higher intention he or she will perform it. Or the
more a person perceives social pressure to perform behaviour, the more likely his or
her intention to perform it will increase.
However, the TRA also has its limitation to explain why in some case, a person holds
a very favourable attitude toward performing behaviour as well as perceives a very
strong social pressure to perform the behaviour; he or she still does not have intention
or holds a very low intention to perform the behaviour.
To solve the TRA’s limitation, Ajzen develops another theory called Theory of
Planned Behaviour. “Theory of Planned Behaviour (TPB) is an extension of the
theory of reasoned action (TRA) made necessary by the original model’s limitations in

neglected or not included in the research model. This could be because of its low
impact on consumer’s organic food purchasing behaviour. Same in this research for
consumer purchase intention of safe vegetable, we also neglect subjective norm in our
research model.
Student: Nguyen Thanh Huong Supervisor: Dr. Dinh Cong Khai
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2.2 PREVIOUS RESEARCHES REVIEW AND HYPOTHESES
In Hsiang-tai, Stephanie and Alan (2000)’s study about factors that influence the
purchasing decision for fresh potatoes of consumer in the New England market, the
researchers proposes a model of eight key factors affecting consumer purchase
decision for fresh potatoes which are: (1)Appearance of the potatoes, (2)Price, (3)Size
of the potatoes, (4)Region where the potatoes were grown, (5)Type of potatoes,
(6)Product inspection certification on the bag, (7)Prior experience with the product,
(8)A money back guarantee if not satisfying. Besides that, demographic factors as
consumer’s age, sex, income and household size are also included in his model. In
general, the research results confirm that product appearance is the most influential
characteristic, then types of potatoes and size receive high important rating. Price is
moderately important but less crucial than appearance, size and type However, the
importance rate of those most influential factors is different among respondents’
gender, age, income (Hsiang-tai et al., 2000, p.51-52). Other researches proposes more
factors as degree of knowledge of product, purchase place, degree of trust in product
certification, price perception, trust in product, product information, package
information, brand awareness that could affect purchase intention for a specific
product.
In Andrew (2006)’s research about “quality and safety in the traditional horticultural
marketing chains of Asia”, he concludes appearance is one of the most important
factors affecting consumer purchase (Andrew, 2006, p.21). A small survey for
consumers in Ho Chi Minh City, Vietnam also conducted by Andrew says that
consumers do have intention to purchase safe vegetable; however, consumption of

to every Vietnamese family’s meal and consumers can not stop consuming vegetable.
However, in Vietnam the food safety issue is extremely alerting consumers currently
that causes a strong demand for safe vegetable. Many cases of food poisoning caused
by insecticide inside vegetable or high concentrate of existing growth stimulating
substances in vegetable. According to Young, Miri & Junghoon (2008, p.168) that
“after facing serious food safety incidents, consumers have become increasingly
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concerned with quality and safety of foods they eat”, they will try to look for
sufficient information before making food purchase decision. Consumers will look at
purchasing branded, quality insurance for their risk reducing strategies in their
purchasing. However, resource of information of safe vegetable in Vietnam is
currently so limited that makes consumers very confused when purchasing this
product. Most of safe vegetable products do not have any certification that causes
losing consumers’ trust. Currently, only 20% of safe vegetable is sold in
supermarkets and safe vegetable shops, the majority is sold in traditional markets in a
jumble with ordinary vegetable. There is no special figure to distinguish between safe
vegetable and ordinary vegetable except that safe vegetable is well packed in nylon
pack and labelled with name of production companies. There is no figure other than
that to convince consumers about safe vegetable is really safe and that make them
really worried when purchasing this product. Stated by Ms. Nguyen Thanh Tam, a
consumer in Ho Chi Minh city, that “I usually buy food, vegetable in a traditional
market nearby my house, there they are also selling vegetable called safe vegetable
packed in nylon pack with label and producer name but I still do worry if they are
really safe vegetable. I still buy this product only by placing my confidence in the
seller’s honest”. From this review, we may assume that consumers are holding an
unfavourable attitude for safe vegetable product, they don’t really trust in safe
vegetable product and that lowers their purchase intention for this product.
From literature review together with the current status of safe vegetable in Viet Nam,

intention for a product.
According to Bich Diep (2012), average income of Vietnamese is 1300 USD/year in
2011 that can be considered low. And with the saving habit of the Vietnamese, it is
easily to understand that the majority of Vietnamese tend to pay much consideration
in their spending. And that safe vegetable’ price is always high, especially much more
expensive than conventional vegetable can make it really sensitive to consumers and it
could be rated as one of the major obstacle to their purchase intention for this product.
Andrew (2006, p.22) also reports in his study of consumers in Ho Chi Minh city,
Student: Nguyen Thanh Huong Supervisor: Dr. Dinh Cong Khai
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Vietnam that one of the reasons declared by consumers of not buying safe vegetable
product is because of its high price.
However, consumers have their different price perception (Ehrenberg, as cited in
Terasa et al., 2005, p.408). This could be understood in the way that some consumers
when they have limited financial resources, price is their first priority and they may
tend to consider safe vegetable as expensive, therefore, that would lower their
purchase intention for safe vegetable. However, others may think that the
expensiveness of safe vegetable is worthy in return for its quality and consequently,
they don’t perceive safe vegetable is expensive product.
In general assumption for Vietnam, safe vegetable’s high price can be an obstacle to
consumer purchase intention. However, it is incorrect to mean that consumers
perceive safe vegetable as expensive product. Every consumer has his or her
individual price perception for safe vegetable. This leads to assumption that if
consumers perceive safe vegetable as expensive product, they will lower their
purchase intention for it and vice versa. With this assumption, we propose hypothesis
as following:
H2. There is a positive relationship of consumers’ price perception for safe vegetable
and consumer purchase intention. The positive relationship is defined in the way that
the more inexpensive consumers think safe vegetable is, the more likely they will

From the literature review and research hypotheses, the model is as follows:
Figure 1. Research model
In which:
Trust: consumers’ trust for safe vegetable
Price perception: consumers’ price perception for safe vegetable whether safe
vegetable is inexpensive or not.
Appearance: safe vegetable appearance according to consumers’ perception.
Income: consumers’ income
Gender: consumers’ gender
Purchase intention: consumer purchase intention for safe vegetable.

Appearance Purchase intention
Price perception

Trust
H1 (+)
H2 (+)
H3 (+)

steps: step (1) defining measurement scales, step (2) performing qualitative research
and step (3) implementing quantitative research.
3.1 RESEARCH PROCESS
This study is conducted with process is as follows: Problem
definition
Literature
review
Hypotheses
& Model
Measurement scale
in English
Measurement scale
in Vietnamese
Qualitative research
(to validate
measurement scale
in Vietnamese
)
Final measurement
scale in Vietnamese
Questionnaire
forming
Sampling
Data collection
Data analysis
Managerial
implications