INTERNATIONAL UNIVERSITY
SCHOOL OF BUSINESS

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

ASSURANCE QUALIFIED THESIS

Student’s Name:

Nguyen Thanh Trung Hieu

Student ID:

MBA05010

Title of Thesis:

EXPLORING THE FACTORS AFFECTING PURCHASE
INTENTION OF SMARTPHONE: A STUDY OF OFFICE
WORKERS IN HOCHIMINH CITY, VIETNAM

Advisor:

I assure that the content of this thesis has been qualified all requirements for a
research paper and able to participate in the final thesis defense.

Approved by

Dr. Pham Hong Hoa


Approved:

---------------------------------------------Chairperson

--------------------------------------------Advisor: Dr. Pham Hong Hoa

----------------------------------------------

---------------------------------------------

Committee member

---------------------------------------------Committee member

Committee member

--------------------------------------------Committee member


Acknowledge
This study would not have been completed without the kind guidance and the support
of my supervisor, my family and friends.
First of all, I would like to express my profound gratitude and appreciation to my
supervisor Dr. Pham Hong Hoa for her valuable guidance, advices and
recommendations throughout this research. Thank you for your kind support every
time I am in need for consultation.
I would like to express my great appreciation to all the teachers of the Master‟s
program in the International University, who imparted their knowledge and
experience to me during the past two years.
I would like to give special thanks to my beloved family which has been my


1.1

Research Background....................................................................................................... 1

1.2

Research Problems .......................................................................................................... 2

1.3

Research Questions ......................................................................................................... 3

1.4

Research Objectives ......................................................................................................... 3

1.5

Research scope and limitation ......................................................................................... 3

1.6

Significant of the Research .............................................................................................. 4

1.7

Research Methodology .................................................................................................... 4

1.8


2.1.1
2.2

Purchase Intention ...................................................... Error! Bookmark not defined.

Independent variable ....................................................................................................... 8

2.2.1

Price............................................................................................................................ 8

2.2.2

Brand ........................................................................................................................ 10

2.2.3

Compatibility ............................................................................................................ 10

2.2.4

Product Feature ....................................................................................................... 11

2.2.5

Relative Advantage .................................................................................................. 12

2.2.6


3.1

Research design ............................................................................................................. 19

3.2

Data collection methods ................................................................................................ 19

3.2.1

Primary data ............................................................................................................. 19


3.2.2

Secondary data......................................................................................................... 20

3.2.3

Sampling design ....................................................................................................... 20

3.2.4

Sampling Technique ................................................................................................. 21

3.2.5

Research instrument ................................................................................................ 22

3.3


4.1.1

Sample ...................................................................................................................... 29

4.1.2

Demographic profile ................................................................................................ 29

4.2

Descriptive statistics ...................................................................................................... 33

4.3

Cronbach’s alpha reliability test .................................................................................... 36

4.4

Exploratory Factor Analysis (EFA) .................................................................................. 39

4.5

Pearson Correlation Coefficient ..................................................................................... 43

4.6

Multiple Regression Analysis ......................................................................................... 45

4.7

Table 11 - The final table of Cronbach‟s alpha reliability test ......................................... 39
Table 12 – Exploratory Factor Analysis (EFA) for independent variables ...................... 41
Table 13 – Group of EFA ................................................................................................. 42
Table 14 – Exploratory Factor Analysis (EFA) for independent variables ...................... 43
Table 15 - Pearson Correlation Testing ............................................................................ 44
Table 16 - Multiple regression testing .............................................................................. 47
Table 17 - Reliability Test of Respondents....................................................................... 71

Figure 1 - Diffusion of innovations model. Rogers, E.M. (1995) .................................... 14
Figure 2 - Conceptual model: Factors affect Purchase Intention of smartphone .............. 17
Figure 3 - Sex of Respondents .......................................................................................... 30
Figure 4 - Age of Respondents ......................................................................................... 31
Figure 5 - Average income of respondents ....................................................................... 31


Abstract
In a world of digital devices, people require more convenient and powerful gadgets on
hand to support for their daily works as well as their need for entertainment.
Smartphone is invented to fulfill those demands, furthermore, provided a most
compact assistant in the pocket. While replace some simple task of work from the
traditional computers, smartphone also play a vital role in people‟s lifestyle. This
leads to a booming in the smartphone industry while more and more people want to
own one smartphone. Nevertheless, it is a fact that there are too many brand of
smartphone found at the current, making the process of choosing a smartphone
become more complicated.
The study aim to explore the factors affecting Purchase Intention of smartphone
among the office workers in Hochiminh City. The initial factors include: Price, Brand,
Relative Advantage, Compatibility, Product Features, Social Influence and Purchase
Intention. 218 respondents have provided data for the study. The process of collecting
is online surveys via the Qualtrics electronic form using likert scale. The data was

factors influencing the Purchase Intention of smartphone.

1


1.2

Research Problems

Recent market research by Google has indicated that there are about 17 million
Vietnamese had been using smartphone (GlobalWebIndex, 2013). The figure is
counted as approximately 20% of Vietnam population. In this emerging market, there
is still lot of potential for mega smartphone manufacturers as Samsung, LG, and
Apple as well as Chinese or Vietnamese ones. Especially, in the group of office
workers, who are in the raising of income and spend on hi-tech products frequently.
According to Gartner (2013), trend of using smartphone and tablet to improve
productivity as well as to provide more entertainments might be required by half of
office workers in 2017.
Despite the dramatic increasing of smartphone sales in Vietnam, there are not many
researches on the consumer's perception of purchasing smartphone, and there are no
static evidences to provide a better understanding between the enterprises and the endusers

Purchase

Intention.

Thus,

it



Regarding to the research problems above, question has been raised for the research
as below:


Which factors will affect the consumer's Purchase Intention of smartphone?



Which factor will most influence the consumer‟s Purchase Intention of
smartphone?

1.4

Research Objectives

At first, the research is aimed to identify the factors affecting to the office worker's
Purchase Intention of smartphone in Hochiminh City. To be more detailed, the
research is to manage these tasks:


To build a conceptual model for the research base on the previous researches
and literatures



To explore the factors affect the Purchase Intention of smartphone




at the end of this research. From the results, more appropriate marketing tactics might
be used as to persuade the consumers in terms of their social relation‟s affection.
Finally, results of this thesis might be a reference for further research on the same
topic, especially to researchers who might want to explore those issues in a larger
scope or with different samples.
1.7

Research Methodology

Literature reviews are performed at first, based on these precious theories, conceptual
model would be made. Quantitative research method would be applied to design
questionnaire implementing in convenient sampling method. Data would be gathered
and analyzed with SPSS for further static findings. Since then, conclusions and
recommendations would be conducted.

4


5


1.8

Structure of Research

The research consist of five following chapters:
1.8.1

Chapter One: Introduction




CHAPTER 2. LITERATURE REVIEW
Critical points of current knowledge will be presented in this chapter. The purpose is
to provide substantive findings as well as theoretical and methodological which to
contribute to the topic research process. Meanwhile, the literature reviews are also
considered as prestige secondary sources, which do not present any new research
information
2.1
2.1.1

Dependent Variable
Purchase Intention

Defining as a plan to purchase certain good or service in the future, Purchase
Intention does not always confirm should the plan implement as it is also affected by
ability to perform (Warshaw & Davis, 1985). We could also consider the Purchase
Intention as what the consumers think and will buy (Blackwell, Miniard, & Engel,
2001). Furthermore, Purchase Intention could be useful by understand the possibility
of a customer on that lead to a purchasing action, which can be understand that the
stronger the Purchase Intention is, the higher possibility to purchase particular product
or service occur (Schiffman & Kanuk, 2000). Through a process of consumer
behavior toward buying a product or a service, the consumer‟s purchasing intention
might formed by recognition, information seeking, alternative products evaluating,
purchasing behavior and post-purchase step of mind (Schiffman & Kanuk, 2000)
The Purchase Intention should also be considered as consumers‟ tendency on an
object, often measures the intention to buy of consumers (Kim & Kim, 2004). Final
cognitive step in decision making process is also the intention to purchase towards
particular products or services, according to Han (1990), Pecotich, Pressley and Roth
(1996). Furthermore, it is also a favorable topic in the marketers‟ side as its ability to


8


products in terms of price par value. Thus, consumers would chose a low-priced
brand product or looking for and subtitled one for the best value (Kunal et al., 2010).
As a result, Rao and Monroe (1988) indicated that consumers have a tension to
separate the higher price with higher quality and the lower price with inferior quality.
Etgar and Malhotra‟s (1981) found consensus to claim that high price goods and
services are equals to high quality in most of consumers‟ perception. Therefore, if the
quality or features are comply to the consumers‟ expectation, they should accept a
price level at peak to fulfill their demand; the consumers might consider the price at a
fair deal and willing to pay at a higher price if they could be deserved by what quality
and service they expect (Monroe, 2003)
More than dozen of mobile brands could be found in today‟s market, with plenty of
series, which offer different price levels. On the website of thegioididong.com, the
largest mobile phones retailer in Vietnam, consumer may find 14 various brands of
smartphone, this leads to wide range of price for each segment of products. The strong
brand may be an advantage to encourage the consumer choosing one product.
Nowadays, people sometimes does not consider price at the most important element.
There is a trend of consumers who might be willing to pay high price for their
smartphone and receive a higher quality or services. There is about 38.81%
Vietnamese consumers who ever own a smartphone believe that Iphone, a luxury
product, is the best smartphone they ever wanted (Jana, 2014 – Smartphone
preference and spending). According to the research, Vietnamese consumers also
acquire more on quality and higher level of services.

9




10


might match with a product and service, we approve that they are highly compatible
(Joep W, Ruud T and Tammo H, 2011). It is believed that demand and Purchase
Intention of consumers is significantly affected by the compatibility (Gatignon and
Robertson, 1991). While product compatible is put at a high priority, consumers‟ ideal
and expectation is getting closer to a product. Since then, more profit could be
generated due to a raise in demand, which has been affected by satisfying the
consumers before.
2.2.4

Product Features

When buying or consuming a product, the consumers may be satisfy with a product‟s
attribute, which might be a connection with their needs or demand, this attribute is
called a feature (Kotler, 2007). There is no doubt that various features might offer
different perception towards smartphone. Nowadays, Smartphone is considered to be
stand for a sustainable connection with internet, surfing the web, useful software,
ability to manage files, recording photos and videos, entertainment tools, bulky
memory of storage, GPS, navigation and large screen with high density of display
(Oulasvirta, 2011). Gowind (2010) also stated that operation system and camera were
two of the most favorite features consumers required from a smartphone. Meanwhile,
iOS, Android, Windows Phone and Blackberry OS are the most concerned operating
systems. Nevertheless, it is hoped to recognize that each of them has its own
characteristics and foundation (Chang and Chen, 2005).
It is also stated that products are chosen by their specific benefits created from
attributes, which might be usable to personal value (Wickliffe and Psyarchik, 2011).
At the current, mobile applications are introduced everyday, help the consumers to


12


2.2.6

Social Influences

There are researches to confirm the relationship between virtual communities, an
important sources of social influences, with Purchase Intention (Bickart & Schindler,
2001). It is noted that persons‟ choice, behaviors and belief may affect to others, this
theory can be found in most social sciences. People try to understand, relate to others
and be themselves; hence, influence motives appear with one person might change
their perception of an issue, product or brand. Up to date, the most important motive
has been researched is the expectation of one person to keep their value reference
aligned with his or her groups, as well as to be differentiated from devalued ones
(Asch, 1951)
Raising in trend of using SNS (Social network sites) as Facebook, Instagram has been
found in smartphone recently. GlobalWebIndex (2014) announced that up to 20
percent of Vietnamese use their social accounts on smartphone, especially, Facebook
gained the largest population of 95% of smartphone users. It is a nature that
smartphone users find more convenient in keeping relation with their friends,
colleagues and families in social network sites. Since then, user is probably affected
by their friends, colleagues and families somehow in their decision of buying a
product or service. A person can be gratefully influenced by the social, particularly
when they are in a community with same thought, attitude, feeling or behavior
(Rashotte, 2007)
2.3
2.3.1


Social identity express the idea that persons from a particular social group need to
match with the conditions of those group in order to avoid of discrimination.
Furthermore, those persons in group self-categorize themselves in the ways conform
to their group norms or do things to gain the group‟s favor (Tajfel and Turner, 1979).
Individual think, feel and action to his personal, family and so on might be affected by
different social contexts, according to the social identity theory (Turner, 1982; Jane
and Peter, 2000).
In the context of smartphone, if most persons in a particular group adopted the
smartphone, the rest who not yet adopt might be considering of an adaptation. Those
thoughts comes from an intention to be categorized into this group and being a part of
them (Jane & Peter, 2008)
2.3.3

Theory of Materialism

People are affected by materialism in their lives, they gain happiness in the possession
of particular luxury product, and hence they trend to persuade them different ways.
Materialistic persons are matched with desires and goals to achieve wealth, so that
they could own certain luxury products in order to take the senses of social
recognition (Tim, 2002; Yusuf & Abdullah, 2003)
According to Vitzthum (1995) and Lange (1925), consumers might experience high
value on luxury product, this include new technology as well as innovative product, as
those products are always at a higher price, and those situations define the theory of
materialism. To be detail, high price product like smartphone might influence the
consumer‟s Purchase Intention, however, it is a normal sense if the purchasing power
in general increases, opening chances for more people to own ones, then the social

15