Thesis Exploring the factors that affect customer’s intention to purchase a dog.doc

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VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY
INTERNATIONAL UNIVERSITY
SCHOOL OF BUSINESS
THESIS
Topic: EXPLORING THE FACTORS THAT
AFFECT CUSTOMER’S INTENTION TO
PURCHASE A DOG
Student’s name:Phan Gia Khoa
Student ID:BABAUI 12256
Advisor:MR. Nguyen Van Ngai
April, 2016, Ho Chi Minh City

ACKNOWLEDGEMENTS
First of all, I would like to sincerely thank all the teachers, especially the
teachers in International University - Ho Chi Minh City facility for delicately teaching
and conveying knowledge as well as valuable experience for me over the last four
years.
In particular, I would like to express my deep gratitude to Mr. Nguyen Van
Ngai who gave me such useful guidance and feedback for this project. It is his
valuable support in terms of knowledge, experience and spirit that has helped me with
ideas and strength to implement this report better.
Finally, I am grateful to my family, friends and all those who have
encouraged me in the process of studying and internship.
April, 2016, Ho Chi Minh City.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................1
1.1.Background:...............................................................................................................1
1.2 Source:.....................................................................Error! Bookmark not defined.
1.3 Project Statement.......................................................................................................2
1.4.Research questions: ...................................................................................................3
1.5.Research objective.....................................................................................................3
1.6.Research subjects and scope......................................................................................4
1.6..Subjects...................................................................Error! Bookmark not defined.
1.6.2 Research scope .....................................................Error! Bookmark not defined.
1.7 Significance ...............................................................................................................4
1.8.Layout ....................................................................Error! Bookmark not defined.
CHAPTER 2: THEORETICAL BASIS, RESEARCH MODEL AND
METHODOLOGY..........................................................................................................6
2.1..Theoretical basis:....................................................Error! Bookmark not defined.
2.1.1. Shopping behavior theory......................................................................................6
2.1.2.Factors influencing customers’ behavior toward dog purchase...........................10
2.1.2.1.Cultural factors ..................................................................................................10
2.1.2.2.Social Factors.....................................................................................................10
2.1.2.3.Personal factors..................................................................................................12
2.1.2.4.Psychological factors.........................................................................................13
2.1.3. Vietnamese pet owners survey............................................................................16
2.1.4. Most popular dog breeds .....................................................................................20
2.1.4.1. Siberian Husky .................................................................................................20
2.1.4.2. Alaska...............................................................................................................21
2.1.4.3. German Shepherd:............................................................................................22
2.1.5. Customers’ reasons to purchase a dog in Ho Chi Minh City..............................22
2.1.5.1. Benefits:............................................................................................................22

2.1.5.2. Drawbacks ........................................................................................................23
2.1.6. The necessaries and meanings of developing pet purchase service....................23
2.2.Research Models .....................................................................................................27
2.2.1.Theory Of Reasoned Action – TRA Model .........................................................27
2.2.2.Theory Of Planned Behavior – TPB ....................................................................27
2.2.3.Conceptual model of the effect of price, brand name, and store name, on product
evaluation ....................................................................................................................29
2.2.4. Signaling theory model........................................................................................30
2.2.5. Other studies........................................................................................................30
CHAPTER 3: METHODOLOGY.................................................................................32
3.1. Research process: ...................................................................................................32
3.1.1. Preliminary research............................................Error! Bookmark not defined.
3.1.2. Official research ..................................................Error! Bookmark not defined.
3.2. Information collecting methods..............................................................................33
3.2.1. Secondary information collecting methods.........................................................33
3.2.2. Primary information collecting methods.............................................................33
3.2.3. Proceed method ...................................................................................................34
3.2.4. Questionnaire content (Addendum 1) .................................................................34
3.2.5. Interview subjects................................................................................................34
3.3. Proposed research model........................................................................................34
CHAPTER 4 : DATA ANALYSIS AND RESULTS...................................................40
4.1. Sample preparation.................................................Error! Bookmark not defined.
4.1.1. Sampling method.................................................Error! Bookmark not defined.
4.1.2. Sample characteristics .........................................Error! Bookmark not defined.
4.2. Descriptive Statistics ..............................................Error! Bookmark not defined.
4.2.1. The factor of interest awareness..........................Error! Bookmark not defined.
4.2.2. The factor of perceived risks ...............................Error! Bookmark not defined.
4.2.3. The factor of health awareness............................Error! Bookmark not defined.
4.2.4. The factor of convenience ...................................Error! Bookmark not defined.
4.2.5. The factor of purchasing intention ......................Error! Bookmark not defined.
4.3. Consistency check ..................................................Error! Bookmark not defined.

4.4. Exploratory factor analysis (EFA)..........................Error! Bookmark not defined.
4.4.1. Exploratory factor analysis EFA of independent variablesError! Bookmark not
defined.
4.4.2. Exploratory Factor Analysis of dependent variables ........ Error! Bookmark not
defined.
4.5. REGRESSION ANALYSIS...................................Error! Bookmark not defined.
CHAPTER 5: CONCLUSION AND RECOMMENDATION... Error! Bookmark not
defined.
5.1. Conclusion..............................................................Error! Bookmark not defined.
5.2. Theoretical values...................................................Error! Bookmark not defined.
5.3. Practical values.......................................................Error! Bookmark not defined.
5.3.1. The convenient system ........................................Error! Bookmark not defined.
5.3.2. To businesses :....................................................Error! Bookmark not defined.
5.4. Limitations..............................................................Error! Bookmark not defined.
5.5. Recommendation for future studies........................Error! Bookmark not defined.
REFERENCES..............................................................Error! Bookmark not defined.
APPENDIX ...................................................................Error! Bookmark not defined.

LIST OF FIGURE
Figure 2.1: Decision making process of consumer buying diagram...............................6
Figure 2.2 Maslow’s hierarchy of needs .......................................................................14
Figure 2.3: Theory of Planned Behavior (TPB)............................................................28
Figure 2.4: Factors affecting consumer trend on baby food powder ............................31
Picture 3.1: Research process........................................................................................32

LIST OF TABLE
Table 4.1 Research sample characteristics ....................Error! Bookmark not defined.
Table 4.2: Descriptive statistics of interest awareness factor..... Error! Bookmark not
defined.
Table 4.3: Descriptive statistics of perceived risk factor ............ Error! Bookmark not
defined.
Table 4.4:Descriptive statistics of health awareness factor......... Error! Bookmark not
defined.
Table 4.5: Descriptive statistics of convenience factor.Error! Bookmark not defined.
Table 4.6: Descriptive Statistics of pet purchasing intention factor ..Error! Bookmark
not defined.
Table 4.7: Exploratory factor analysis...........................Error! Bookmark not defined.
Table 4.8. EFA result of dependent variables ...............Error! Bookmark not defined.
Table 4.9 : Regression analysis of factors that influence customers’ intention to
purchase dogs in HCMC market ...................................Error! Bookmark not defined.
Table 4.10: F-Test result................................................Error! Bookmark not defined.
Table 4.11 : Pearson’s correlations between dependent and independent variables
.......................................................................................Error! Bookmark not defined.
Table 4.12: multicollinearity test...................................Error! Bookmark not defined.
Table 4.13 : Multiple regression analysis......................Error! Bookmark not defined.

LIST OF CHART
Chart 4.1: Subjects’ Gender ..........................................Error! Bookmark not defined.
Chart 4.2: Subjects’ Age................................................Error! Bookmark not defined.
Chart 4.3: Amount of money spent for pets ..................Error! Bookmark not defined.
Chart 4.4: Dog owning time ..........................................Error! Bookmark not defined.
Chart 4.5: How often playing with the dogs .................Error! Bookmark not defined.

LIST OF ABBREVIATION
ABBREVIATION EQUIVALENCE
HCMC Ho Chi Minh City
CEO Chief Executive Officer
VND VietNam Dong
TPB Theory Of Planned Behavior –
TRA Theory Of Reasoned Action –
EFA Exploratory Factor Analysis
ANOVA Analysis of variance

1
CHAPTER 1: INTRODUCTION
1.1 Background:
The market now provides food to a majority of pets that are imported from
overseas. Considered to have a great potential in Vietnam, pet industry is gradually
developing and attracts many foreign companies’ investment. According to Mr.
Wayne Capriotti – the market research specialist in pet industry from the Digi-escape
Co., visitors at the Dog Show, pet industry market in Vietnam has a great potential as
in the past 5 years, the number of pet owners is increasing and they start to consider
their pets as family members. Many of them, especially the young ones, are willing to
buy commercial food for their pets to ensure the best development for their dogs and
cats. The growth of pet food purchase is mainly limited within big cities such as Ho
Chi Minh, Ha Noi, Da Nang, Hai Phong and Can Tho. Many foreign manufactures of
pet food like Invivo NSA, Smart Deart, Royal Canin… are focusing on building
products distribution systems in Vietnam to improve sale performance through retailer
stores and veterinary clinics to meet the increasing demand of customers. There are
more and more foreign pet food manufacturers invest in producing dog and cat food in
Vietnam day by day, Invivo NSA (France) as example. “With over 70% of population
still live in rural areas, develop handicrafts industry who are an abundant low-cost
labor resource, Vietnam is very potential for high-end brands of food and non-food
production to export to large markets in pet industry like other parts of Asia, North
America and Europe. Vietnam is also seen as a low-cost pet food production source as
there is a rich source of meat, seafood, rice, fruit and vegetable (basic components of
pet food) here.”, Mr. Wayne Capriotti said.

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Nowadays, pet trend which many people of all ages are fond of is growing
worldwide. According to the researchers, those who have experience with pet all get
both physical and mental benefits. The pet owners would have lower stress level than
those who do not have a pet. Usually, people start to suffer health problem after the
age of 65, but a study found out that if you have a pet, you would reduce it 30% than
those who don’t. (HT, according to HMU)
In Ho Chi Minh City, on the main streets such as Tran Hung Dao, Phan Dang
Luu, Cong Hoa…, pet stores start to appear. Each brand has its own strength to satisfy
the customers. Most of the stores locate in spacious intersection in order to be easily
seen and catch customers’ attention more affectively. Vietnam, with over 90 million
inhabitants of which 65% are young people under the age of 35 and the rate of
economic growth expected to up to 8.5 in 2016, is an attractive market to companies
that supply products, caring services for pets of which dogs are the most popular for
their loyalty, intelligence and suitable shape for individual as well as family.
Therefore, the theme “Exploring factors that affect customer intention to purchase
a dog” at Ho Chi Minh City market is important and necessary.
1.2 Project Statement
In Vietnam, the quantity of buyers increases mostly in urban areas, especially
in HCMC where people have higher living condition. This reflects the overall growth
and the fact that lives improve thanks to economy development.
According to a pet dog market survey in large cities of the Market Research
Online W&S Co. announced at the end of 2014, Alaska, Japeke (a cross between
Japanese chin and Pekingese), Tiny Poodle, Miniature Pinscher, Chihuahua… are the

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most popular breeds of dog in Vietnam. The survey result of 272 people at the age of
more than 20 shows that they come to pet store and veterinary clinic at least once per
month. Among them, the group at the age from 24-29 has the highest pet buying rate.
Following the general development, pet trend will continue to grow in the coming up
period of time, especially in the young. These figures have showed the strong growth
of the pet market, the number of sellers as well as buyers is increasing rapidly.
Currently, pet market in Vietnam in general and in HCMC in particular, there
are a lot of individual purchases, stores and farms which are not actually on a large
scale. In order to find a new solution for Vietnam enterprise in pet dog market, this
report would perform the “Factors affecting purchasing pet dog in HCMC market”
research based on the study of services and products shopping behavior that have been
implemented by many authors in the world and also announce some models related to
pet dog shopping behaviors as well as some studies that have been done in Vietnam.
1.4 Research questions:
In order to achieve fore-mentioned objectives of the study, research questions
have been posed as the following:
(1) What are the factors that affect to pet dog shopping behaviors of customers in
HCMC?
(2) How are the impacts of these factors on pet dog shopping behaviors of
customers in HCMC?
(3) Which model can demonstrate these factors on pet dog shopping behaviors of
customers in HCMC?
1.5 Research objectives

4
To clarify the main objective of the study, the research has carried on two detail
objectives
(1) Identify factors that affect pet dog shopping behaviors of customers in
HCMC?
(2) Exampling factors that affect pet dog shopping behaviors of customers in
HCMC.
(3) Business implication for animal markets
1.6 Research scope
Research subjects: Factors affecting pet dog shopping behavior of customers in
HCMC.
Survey object: students, young people that have purchased pet dog in the period
of 12 months from 1/2015 to 1/2016 in HCMC.
Area: HCMC market
Time: 04/2016.
1.7 Significance
Through the study of pet dog purchasing behavior, the result provides some
practical meanings:
- This research based on study models of shopping behavior, through which we
could find out factors that affect to the idea of buying a dog in Vietnam market.
- Therefore, this research could become a reference for the future on customer
shopping behavior related to pet dog purchasing.
- Through the identification of factors affecting buying pet dog trend, the
research would help service providers in Vietnam understand customer needs

5
better in order to develop sales strategy more effectively, and find a solution to
improve the quantity of the pet dog buyers.
1.8 Thesis structure
The report is organized into 5 chapters. The first one provides general
information about the topic, author’s reasons for choosing this topic, issues and the
research objectives, the meaning and limits of the research. Chapter 2 introduces the
theoretical basis as well as study model of customers’ decision making and factors
affecting pet dog shopping behaviors in HCMC. The previous studies on factors
affecting pet dog shopping behaviors by customers on domestic and foreign markets
combining with the business situation in HCMC pet market, I would like to propose
my research model and hypothesis.
The third one presents the methodology and the way this report verifies models
as well as the research hypotheses. Chapter four discusses and provides an explanation
for the research methodology and data analysis used in the report. This chapter also
explains how research data handled and results analyzed. The last chapter analyzes the
results of the research, the contribution as well as the practical significance of the
subject and proposes some solutions to apply the research result into practice and puts
forward further research topics.
.

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CHAPTER 2: THEORY AND RESEARCH MODEL
2.1. Theory
2.1.1 . Shopping behavior theory
Consumer behavior is a process that involves purchasing personal choice,
service, idea, or the experience to meet and desires of themselves (Solomon, 1998).
Consumers are defined as any individual, of all ages, participate in the process above.
According to Solomon (1998), purchasing behavior of consumers occurs when a
consumer decides to buy a product. It is a process of internal thought (often referred to
the buying process), and it starts when consumers recognize a need or a desire to buy
something, enquire about the elements before purchase, and includes post buying
action when consumers consider the experience before deciding whether to use the
product/ service again in the future or not (Destiny, Cheuk Man LUI, 2012).
The theory of five-step purchase decision process that is most widely used is the
one developed by Kotler. According to it, behavior of the buyer is a fairly linear
process with a clear beginning and end point, as shown in Figure 2.1. This process
helps people who work in marketing understand customers as well as their behavior
better.
Figure 2.1: Decision making process of consumer buying diagram
(Source: Kotler và Keller, 2005; by Charles Comegys et al., 2006)
Problem
Recognition
Post-Purchase
Evaluation
Purchase
Decision
Information
Search
Evaluation of
Alternatives

7
Research on consumer decisions in the traditional way can help people
understand the consumer behavior as well as reasons for their purchasing decisions
better. This is also important for marketers to understand the decision making process
of online consumers. Consumers expect different online services at different stages,
for example, collecting information about the store, comparing products/ services and
online customers support services.
Online shopping decision-making process can be divided into three main
stages: building trust, online shopping experience and post-purchase needs. The entire
decision-making process of one customer consists of five main phases, which are issue
recognition, information collection, alternative options evaluation, purchase decision
and repurchase consideration. In this research, the first four main phases will be
mainly discussed, which means this research aims to investigate online consumer’s
intention and attitude. The final phase, which is repurchase consideration, will not be
discussed in detail.
(1) Issue recognition
The propensity of consumption is to solve a problem depending on the
difference between desire and related situation. Issue recognition might be the reason
which is caused by intrinsic factors of a consumer such as financial situation or
perhaps advertisement. Internet advertisement can be used to initiate a customer’s
need. Therefore, online seller can appeal potential consumer in this stage by
forecasting consumer’s demand as well as their problems.
(2) Information collection

8
When the consumers have needs, they will begin to collect necessary
information. This action is very important to online sellers because it helps them to
know and understand online shopping decision-making process and can concentrate on
appealing customers and provide the necessary information. Previous studies have
mentioned that using Internet can positively initiate online shopping intention of
customers (Dennis C., Harris L. and Sandhu B., 2002). Potential online customers will
use Internet as a tool to collect information and they tend to have positive perspective
toward online shopping. Citrin and colleagues’ research (2000) also assumes that a
creative customer will apply their tendency directly on online shopping. As a result, in
this collection stage, the creativity of consumers and their Internet usage affect
positively online shopping attitude of customers (Tak Kee HUI and David WAN,
2004).
(3) Alternative options evaluation
When necessary information for purchasing is collected, customers will
evaluate different options by using collected information to make the decision.
Regarding conventional purchasing decision, the customer will evaluate alternative
options by evaluating product or service’s working effectiveness, considering
purchasing expenses, other related factors such as social standards, relationship with
other people and how a product affect them (Jobber D., 1998). When evaluating
alternative options in online shopping process, the safety of each transaction is also
important and affect customer’s decision.
(4) Purchasing decision

9
After evaluation stage, consumers have ranked all the options. There are two
factors between evaluation stage and purchasing decision stage. The first factor is
other people’s opinion. Relatives, friends, colleagues can make the customer change
the option ranks even when the customer already have the buying intention. The
second factor is unexpected incident which is directly related to the product. However,
online shopping decision is usually made in a private environment so other people’s
effects can be reduced at the point of sale. Even when the customer has determined
which product they want to purchase, there are still a few additional decisions in
purchasing conducted. Additional decisions consist of price range, sale location, sale
time, sale amount and payment method.
Although all the theories such as demand recognition, information collection
and evaluation are the foundation for purchasing decisions, there are still situations
that those mentioned theories cannot be applied. This phenomenon is called
unintentional purchasing. Unintentional purchasing happens when the consumer
decide to buy the product based on their impulsive emotions. Personal standards that
the consumers made for themselves are factors affecting purchasing decisions. If the
consumer establishes specific goal and standard, they will know exactly what they
want. Subsequently, they have less chance to purchase unintentionally. The next factor
is self-control. The final and the most important factor is that consumers’ need
changes. Even when two previous factors do not affect, if they change their demand,
they will change their decision.

10
2.1.2. Factors influencing customers’ behavior toward dog purchase
2.1.2.1. Cultural factors
Culture: Culture is the most fundamental factor affecting a person’s desire
and behavior. A human inherits from family and society a range of different
values, including traditions, perceptions, interests, and behaviors. For example, a
person growing up in America would have a sense of: success, productivity,
freedom, individualism, realism, and humanism.
Subculture: Within a culture, a subculture is a group of people that have
values and norms differentiating itself from the parent culture to which it belongs.
Marketer often design products and commercials based on sub-cultural factor to
target different groups of customers
Social Class: A social class is a group of individuals occupying a similar
position in social and economic system. It is determined by a combination of
different aspects, including occupation, income, education, interests, and
behaviors.
2.1.2.2. Social Factors
Customer behavior is affected by social factors, such as reference groups,
families, and social status
Reference groups: A reference group includes people who have direct or
indirect influences on a person’s behaviors. The groups that have direct influence
are called membership groups. In fact, families, friends, neighbors, colleagues are
categorized as primary groups which involve regular and informal interactions.
On the other hand, secondary groups show more formal contacts and require less

11
direct interactions, such as religious groups or unions.
People are influenced by reference groups in three ways. The reference
groups will expose individuals to the groups’ behaviors and living styles, which,
as a result, influences individuals’ attitudes and perceptions,
Families: Family members are the most important reference group for a
person. There are two types of families: family of orientation and family of
procreation. Family of orientation refers the family that a person is born into and
raised in. Therefore, parents have an effect on their children’ orientation toward
religion, politics, economics, self-ambition, and love. Even when a person does not
live with their parents anymore, their behavior is still affected by their parents. In
countries that parents and adults living together, the influence is significant.
Family of procreation, on the other hand, refers to the family that a person
creates when getting married and having or adopting children. Marketers believe
that the purchasing behavior is strongly influenced by a person’ spouse and
children. Usually, wives purchase household and clothing products, while
regarding expensive products, husbands and wives both share responsibilities. The
marketers’ role is to identify which members in the family would make the buying
decision on which kinds of products.
Roles and status: A person holds different position in different groups that
they involve - family, associations, and organizations. Their position in a group is
reflected via their roles and status in that group. Similarly, people will choose
products that reflect their roles and status in the society.

12
2.1.2.3. Personal factors
Buying behavior is also influenced by personal factors, especially age, life
cycle stage, occupation, financial condition, lifestyle, personality, and self –
perspective
Age and life cycle stage: Purchasing behavior is established differently in
each stage of a person’s life cycle. Moreover, within the same group of life cycle
stage, changing in lifestyle as well as psychological well-being could also lead to
the shift in their purchasing behavior.
Occupation: Different occupational groups express different needs. For
example, compared to a regular worker, a CEO would buy more luxury clothes,
and travel by airplane more often. Marketers’ responsibility is to identify which
occupational groups have special interest on their products and services so that
they can modify the products’ features to match the target groups’ demands.
Economic Situation: Product selection is affected by a person’ financial
condition. Economic circumstance includes income, expenses, savings,
properties, debts, borrowing capacity, and more importantly, their expense and
saving management. As a result, marketers often review these economic
indicators in order to be able to re-price or relocate their products to reach the
most potential group of customers.
Lifestyle: It is not surprised that people who have the same culture, social
class and occupation could have totally different lifestyles. A person’s lifestyle
reflects their personalities, interests, opinions, and their relationship with the
surrounding environment. .

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Personality and self-concept: Each individual possesses a unique
personality which influences their purchasing behavior. Personality, making up of
patterns of thoughts, feelings, and behavior, arises from within the individual and
remains fairly consistent throughout life. Self-concept, on the other hand, refers
the individual’s thoughts and feelings having reference to himself as an object.
Personality and self-concept are useful elements for marketers to analyze
customers’ behavior on product or brand selection.
2.1.2.4. Psychological factors
There are four psychological factors that affect customers’ behavior, namely
motivation, perception, learning, and belief and attitudes
Motivation: need becomes a motive when it reaches to a sufficient level of
intensity. There are physical needs or psychological needs. In order to sustain
lives physically, people need such things as food, water, and shelter. On the
psychological side, people have needs as self-esteem, understanding, inspiration,
self-expression, respect, and so on. In fact, there are three human needs theories,
which are Sigmund Freud’s, Abraham Maslow’s, and Frederick Herzberg’s. In
this thesis, Abraham Maslow’s theory is applied. (Destiny, Cheuk Man LUI,
2012).
Maslow’s theory of motivation: the theory tried to answer the question of “what
really motivate people?”. He stated that people are motivated to achieve certain needs,
and these needs are put in hierarchy. Maslow’s hierarchy of needs is portrayed in Figure
2. A person will first try to satisfy their most basic needs (biological and psychological
needs). When one need is fulfilled, a person will seek to fulfill the next one, and so on.

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Figure 2.2 Maslow’s hierarchy of needs
Maslow’s theory has helped marketers understanding target customers’
demands more deeply in order to develop products and services suitable to these
needs.
Perception: A motivated person is ready to act. However, how the person
actually acts is affected by his or her perception of the situation. Perception is the
process of recognizing and interpreting information to form a meaningful picture
of the world. It is believed that perception is more important than motivation,
since perception can vary widely among individuals exposed to the same reality.
We learn information by five senses: sight, hearing, smell, taste, and touch.
However, each person will select, organize, and interpret the sensory information
in their own ways. People may perceive the same object differently due to the
differences in three perceptual processes: selective attention, selective distortion,
and selective retention (Philip Kotler, 2005).
Selective attention: people are exposed to uncountable number of stimuli

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every day. As a result, a person cannot possibly pay attention to all of these
stimuli, but rather, they are screened out in a process called selective attention. The
real challenge is how to explain which stimuli people will notice. People are more
likely to notice stimuli that related to their current needs and those that they
anticipate.
Selective Distortion: Even noticed stimuli are not always perceived in the way
the senders intended. Selective distortion is the tendency in which people interpret
information in the way that fit their preconceptions.
Selective retention: people are more likely to remember facts, thoughts,
incidences, and messages that are consistent with their interests, values, and beliefs,
selecting what to keep in the memory.
Learning: Learning is defined as changes in people’s behaviors due to their
long term memory and experience. Learning occurs as a result of a combination of
drives, stimuli, cues, response, and reinforcement (Philip Kotler, 2005). A new
company entering the market can use the same drives as its competitors to appeal
customers, because customers tend to shift their loyalty among similar brands rather
than a completely new brands and products.
Belief and attitude: Through doing and learning, people acquire beliefs and
attitudes which influence their buying behavior. Marketers pay close attention to
customers’ beliefs, because beliefs make up products and brand images that
determine customers’ behavior. Attitude is a settled way or tendency to respond
positively or negatively towards a certain idea, object, person, or situation. The
attitude is expressed by evaluating a particular entity with some degree of favor or

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disfavor. Attitudes are difficult to change, so it is advised that marketers should try
to make their products fit existing attitudes rather than try to change customers’
attitudes.
2.1.3. Vietnamese pet owners survey
In August 2013, Company W&S undertook a brief survey on 337 members in Vietnam
about the role of pet in family and how they take care of their pet. According to the
survey, dogs are the most common pet, followed by cats, birds, and fish.
70% of the participants have a dog. These participants stated that they love dogs
and spend a lot of time with their pet which play a special role in their lives.

17
Among 337 participants, 64.7% of them bought their dogs for under 500.000 VND.
Do you know?
Most Vietnamese pet owners use leftovers as the main source of food for their dogs
(account for 52.7%).

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Canned dog foods are not common in Vietnam, and only make up a small percentage,
about 13.0%.
Although pet products in Vietnam have grown in popularity in recent years, most pet
owners only buy the most necessary things, including collars and leads, medications,
food and water bowls.
“Affordable price” is the most important criteria when buying pet products, accounting
for 67.3%. Pet owners usually shop for pet products at pet stores (60.3%),

19
supermarkets (51.1%), and pet clinics (34.6%). In addition, online pet shops are
becoming popular for owners who do not have time to go to the stores (19.5%).
61.0% of people surveyed stated that they spend less than 200.000 VND/month on pet
care and products.
Among 10 people surveyed, 5 of them would go to a vet clinic when their pet are sick,
while 3 of them would use vet house call service.

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When choosing vet clinics, “prestige” and “dedication” are elements the owners
concerned the most, accounting for 65.4% and 48.2% respectively, followed by
“reasonable cost” at 46.7%..
2.1.4. Most popular dog breeds
2.1.4.1. Siberian Husky
The Siberian Husky originated in north-eastern Siberia. The original dog was
developed about half a million years ago by the Chukchi people w ho used the dogs to
assist them hunting and pulling heavy sleds over long distances in extremely cold and
harsh environment of Siberia. It is characterized by medium size, quick, strong, and
flexible. It is a beautiful breed with a thick furred double coat that can withstand very
cold temperatures as low as -50 degrees Celsius.

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2.1.4.2. Alaska
The Alaska was first domesticated by Malamute people living in Alaska. Later, they
were trained by Eskimo people for sledding like other arctic breeds. The original
Alaska dog was the same size as the Husky; however, people have tried to breed
different breeds with Alaska dogs to have a bigger, stronger, and more flexible dog.
Because of their incredible characteristics, explorers often chose them to bring with
them during their exploration of the world.

22
2.1.4.3. German Shepherd:
The German Shepherd has been well known for its’ strength, versatility, as well
as intelligence and easy training. It is medium size dogs, weighting from 20 to 40 kg
with a height around 55 – 65 cm, originated from Germany in 1899. It is considered
one of the newest breeds and was used as livestock guards in the past. Later, the dogs
are trained for police and military work.
2.1.5. Customers’ reasons to purchase a dog in Ho Chi Minh City
2.1.5.1. Benefits:
- Studies showed that pet owners have lower blood pressure, cholesterol and
triglyceride levels leading to a lower risk of cardiovascular disease than people
who do not own pets.
- Reducing depression: Pets, especially dogs, are very loyal and offer
unconditional love than can very helpful to people with depression.
- Reducing stress: it seems that pet owners indicate lower stress level than people
who do not have a pet. Cuddling pets pleasure people’ senses, which helps
release stress.
- Increasing socialization: When taking a dog for a walk, the possibility that a
person will socialize with others is high, increasing their chance of starting
conversation and making new friends.
- Improving learning disabilities: People who experience autism and people with
learning disabilities find that it is easier to connect with pets than with people.
The pets help them keep calm, stay conscious, increase their self-esteem, reduce

23
disappointment when dealing with obstacles, and finally, improve
communicational skill and learning abilities.
2.1.5.2. Drawbacks
- Some people are allergic to dog hair or feathers, causing health problems.
- Some pet illnesses can be transmitted to people, such as ringworm, Lyme
disease, salmonella, and leptosipirosis.
- Owners can be bitten by the pets.
- The pet make noise, affecting the neighborhood.
2.1.6. The necessaries and meanings of developing pet purchase service
Due to globalization, modernization, as well as economic and technological
development, the living standard has reached to a new level causing “Westernization”
trend in Vietnamese purchase behavior, especially among young people. As a result,
owning pets is becoming more and more popular. Pet owning solution, on the other
hand, is an indicator of a developing society. Pet owning help enhance socialization:
When walking with a pet, the chance of communicating and meeting new people will
increase. Playing with pets stimulates people’s brain to release serotonin and dopamine
which make people feel happy, calm, and relaxed. Financial condition of many
Vietnamese families (especially those in big cities) allow them to have the opportunity
to choose and satisfy their personal interests and demands in which pet purchase is one
of the option.

24
2.2Referenced studies
According Rajesh Panda’s study of “Shopper Buying Behaviour in terms of
‘Selection of Retail Outlets’ and the ‘Impact of Visual Merchandising’’ in 2011 in
India, there are five factors influence customer behavior regarding selecting retail
outlets:
+ Merchandising
+ Status/ Shopper Image
+ Convenience/ Location
+ Service
+ Availability
Among the five factors, “Merchandising” and “Convenience” had the most
significant effects on shopper buying behavior.
In terms of studies conducted in South East Asia – whose cultures are quite
similar to Vietnam’s, there is one study that was considered: “Factors Affecting
Customers Using Modern Retail Stores In Bangkok.” In this study, the author
emphasized six factors:
+ Distance
+ Purchase intention
+ Customer loyalty
+ Perceived value
+ Store assortment
+ Income

25
The study’s result showed that “purchase intention” had the strongest effect on
customer’s process of selecting retail stores, followed by “Income” and “Distance”.
The third study that was used for reference is “Factors Affecting Customer’s
Behavior toward Convenience Store Chains.” There were eight factors mentioned
in the study, including: stores’ creditability, perceived quality, perceived price,
distribution, perceived risk, health awareness, interest awareness, and social impact.
According to the study, in terms of social impact on customers’ behavior,
there was a higher rate of customers following the crowd’s behavior in Hanoi market
compared to that of in HCMC market. They asked friends and family members
before make buying decision.
Besides, the research “An empirical research of the factors determining
customer behavior in food retail stores” presented a model of store atmosphere:

26
(Source: Donovan & Rossiter (1982))
Figure 7 : Model of store atmosphere
Another study in customers’ behavior is “Applying the Theory of Planned
Behavior (TPB) to Explain the Motives of Fish Consumers in Nha Trang City"(MA.
Ho Huy Tuu, Faculty of Economics – Nha Trang University). This study utilized the
theory of planned behavior in order to predict and explain customers’ motives for
making decision.
The last study that was taken into consideration is "Model of the Factors
Affecting the Intention to Use Internet Banking Services in Vietnam Market"(Le Thi
Kim Tuyet, Da Nang University of Economics, 2008) published on the 6th
edition of
“Student Research Conference” report collection . The study applied TAM model to
Environmental
stimuli at the store
Accessibility
Orderliness in the
interior
Parking
Trolleys
Interior design
Number, range, quality
and display of products
Display of prices
Well-arranged shelves
Orientation in the store
Staff
Customers
Human factors
Advertising in the store
Scent, lighting
Cleanliness
Temperature
Music
Babysitting service
Standard of services
Cashier zone
Acceptance or
avoidance reaction
by the customer
Enters the store or
refuses completely
Finds the necessary
product in the store
or fails to
Communication needs
satisfied or not
Planned time and
money spending
strategy realized or not
Emotional state
of the customer
Pleasure
Excitement
Dominance

27
explain and predict customers’ acceptance and usage toward a technological product.
The author applied different models from several countries in the study and explained
how these models, namely TRA, TPB, and TAM fit the author’s study.
Although all the studies mentioned above do not have the same objective with that
of my thesis, they have helped me in the process of establishing research design and
building research model. These studies are all related to customers’ behavior and have
been either approved or published in scholarly journals.
2.2. Research Models
2.2.1. Theory Of Reasoned Action – TRA Model
According to TRA (Fishbein, M. & Ajzen 1975), subjective norms and attitude toward
behavior both influence behavioral intention, which directly influences actual behavior.
An attitude is a person’s perception (favor or disfavor) toward an object (person, place,
thing, or event), whereas a subjective norm is defined as a perceived social pressure that
a person should or should not perform a behavior.
2.2.2. Theory Of Planned Behavior – TPB
Dogs are smart, loyal, and active. They are the most common and friendly pet. Dogs
have great memory and can distinguish a wide range of sound that humans’ ears can
not detect. A lot of studies have proved that owning dogs help improve both physical
and mental well beings.

28
Figure 2.3: Theory of Planned Behavior (TPB)
The Theory of Planned Behavior (TPB) is the successor of the TRA model. There are
situations in which behavior appears not to be voluntary and under control. In these
cases, “attitude” and “subjective norm” components are not sufficient to explain
behavior. As a result, Ajzen added the “perceived behavioral control” to TPB model to
fully predict behavior.

29
2.2.3. Conceptual model of the effect of price, brand name, and store name,
on product evaluation
According to Zeithaml’s model (1998), price and brand are the most essential elements
that have positive effect on customer purchase behavior. In 1991, Dodds, Monroe, and
Grewal reported a study of the effects of price, brand, and store information on buyers’
perception of product quality and value, as well as their willingness to buy.
This study showed the importance of customers’ perceived value which can promote or
prevent customers from buying products from a brand, since it is the result of customers’
perceived quality and cost.

30
2.2.4. Signaling theory model
According to Erdem and Swait (1998), when imperfect and asymmetric information
characterizes a market, firms use brand’s credibility and clarity as signals of product
positions to increase perceived quality, decrease perceived risk and information costs, as
a result, increase customer expected utility.
2.2.5. Other studies
Huynh Thi Kim Quyen, 2006 – Factors affecting consumer’ behavior towards baby
food powder: The author’s research model included: (1) Brand image, (2) Perceived
risk, (3) Brand Credibility, (4) Perceived Value, (5) Perceived price, (6)
Distribution, and (7) Promotion. 1,3,4,5,6 (bold) are important factors emphasized in
the study.

31
Figure 2.4: Factors affecting consumer trend on baby food powder
In 2009, there is an author doing research on factors influencing consuming trend on
fresh food in Ho Chi Minh City. The model in this research included: (1) Brand Image,
(2) Perceived Risks, (3) Brand Credibility, (4) Perceived Quality.

32
CHAPTER 3: RESEARCH DESIGN
3.1. Research process:
Figure 3.1: Research process
Preliminary qualitative research is conducted to build framework. Preliminary
qualitative research is conducted in Ho Chi Minh City in December 2014 by in-depth
interview method with 20 consumers who bought a pet within 12 months from the
time of the interview. This research aims to investigate, adjust and add more observed
Official
research
Quantitative research: collect primary data by
questionnaire interview
Proposed model
(1)
Rationale
Qualitative research:
- Group discussion
- Specialist consulting
Model adjustment
(if necessary)
Model and scale
(2)
Questionnaire
Accredit the scales.
Model adjustment. (if
necessary)
Cronbach’s Alpha test
Exploratory factor analysis
Accredit theoretical model Accredit the adaptation of the model by multiple
regression

33
variables to measure research concept. In-depth interview questionnaire is displayed in
addendum.
Official research is conducted with quantitative method and through interview
questionnaire. The number of expected samples is 200. Official research is conducted
in Ho Chi Minh City in August 2015.
Observed variables in the questionnaire use Likert 5 point scale with 1 point
means “completely disagree” and 5 point means “completely agree” to investigate the
level of agreement of customers regarding online shopping behavior. The
questionnaire is displayed in the addendum of this quantitative research aims to
accredit used scales and concept model. The research used SPSS 16.0 software to
accredit used scales with Cronbach Alfa index. After the results of Cronbach Alfa
analysis, appropriate scale will be subsequently accredited through explore factor EFA
analysis to adjust. Analyzing determined factor CFA method is used in this research to
accredit scales and analyzing linear structural model SEM method is used to accredit
the adaption degree of concept model and theories.
3.2. Information collecting methods
3.2.1. Secondary information collecting methods
Related documents, reports, recruitment reports, articles which contain necessary
information.
3.2.2. Primary information collecting methods
Address the concept of interview questions.
Establish questionnaire.
Address interview subjects.

34
Distribute interview templates.
Accredit the number of returned interview templates.
Process numbers with SPSS and software such as Excel, Word.
Conclude and recommend.
3.2.3. Proceed method
Conducting information collection through 2 methods:
- Direct interview and record.
- Distribute questionnaire to subjects, giving instruction and collect.
3.2.4. Questionnaire content (Addendum 1)
3.2.5. Interview subjects
Young adults in Ho Chi Minh City
3.3. Proposed research model
_ “A Study of Shopper Buying Behavior in terms of' Selection of Retail Outlets' and
the'Impact of Visual Merchandising'' (scientific research in India Rajesh Panda)
 "Factors Affecting Customers Using Modern Retail Stores In Bangkok"
 "Factors affecting Consumer’s Behavior toward Convenience Store Chains"
 "Applying the Theory of Planned Behavior (TPB) to Explain the Motives of Fish
Consumers in Nha Trang City"(MA. Ho Huy Tuu, Faculty of Economics – Nha
Trang University)
 "Model of the Factors Affecting the Intention to Use Internet Banking Services in
Vietnam Market"(Le Thi Kim Tuyet, Da Nang University of Economics)
As well as basing on the opinions and views of experts in the field of
economics and research, I notice that most of the previous public studies and recent

35
ones have concluded that the behavior predicting model TRA (Theory of Reasoned
Action) is a sufficient ground to conduct research on the behavioral tendencies of
customers.
Accordingly, inheriting from the research work related to customer behavior
by authors and scientists, after analyzing the relevant models as TRA, TPB, TAM, I
find TRA model quite suitable for not only the research reality but also its size. Thus, I
decide to choose Theory of Reasoned Action TRA as a model for the subject of this
study.
Research hypothesis:
H1 – Interest awareness affects similarly and directly toward pet buying intention of
HCM customers.
H2 – Perceived risk affects contrariwise and directly toward pet buying intention of
HCM customers.
Interest awareness
Perceived risk
Health awareness
Convenience
Buying dog intention

36
H3 – Health awareness affects similarly and directly toward pet buying intention of
HCM customers.
H4 – Convenience affects similarly and directly toward pet buying intention of HCM
customers.
Observed variables table
No. Explanation Variable Content
1
Interest
awareness
TT1 Dogs help me release stress
2 TT2 Dogs help me improve health
3 TT3 Dogs brings me excitement and happiness
4 TT4 Having a dog helps me save money and time
5 TT5 Dogs bring me more friends
6
Perceived
Risks
RR1 Dogs spread bacteria and germs
7 RR2 Dog hygiene is not ensured
8 RR3 Owing a dog is stressful, time consuming
9 RR4 Owing a dog is expensive
10 RR5 Owning a dog causes family and friends
much emotional upset
11
Health
awareness
SK1 Owning a dog has negative effects on my
health
12 SK2 Owning a dog is a waste of time and health
13 SK3 Owning a dog makes me stress
14 SK4 Owning a dog could cause long term
damage on my brain

37
15 SK5 Owning a dog have negative effects on my
respiratory system
16
Convenience
TTIEN1 I can easily buy a pet at stores.
17 TTIEN2 The pets’ shape and size are attractive.
18 TTIEN3 Dogs are easy to travel with
19 TTIEN
4
I can buy dog food easily at stores.
20 TTIEN
5
The dog helps me control my mind.
21
Purchasing
intention
YD1 The opinions of my family, friends, and
colleagues affect my decision of buying a
dog
22 YD2 Payment method and form obstruct my pet
purchasing decision
23 YD3 I will continue buying dogs
24 YD4 I will recommend others to buy a dog
25 YD5 I think my friends, colleagues and relatives
should buy a dog.
Data processing is performed on the data processing program SPSS 16.0 by 3
following stages:
Stage 1: Verify the reliability of the test scales through Cronbach’s Alpha tool.

38
Criteria:
 The total correlation coefficient (Corected Item – Total Correlation) >= 0.3
(Nannally & Bernstein, 1994; quoted by Nguyen Dinh Tho, 2013)
 Cronbach’s Alpha coefficient >= 0.6
Through Cronbach’s Alpha tool, observed variables with Cronbach’s alpha
coefficient less than 0.6 are removed (the survey is completely new to the
respondents (Hoang Trong and Chu Nguyen Mong Ngoc, 2008)
Stage 2: Analyze Exploratory Factor Analysis (EFA) to set up a set of observed
variables in research model. The observed variables with Loading Factor less than 0.5
will be rejected (Othman and Owen, 2002; quoted by Hoang Trong and Chu Nguyen
Mong Ngoc, 2008). Criteria:
The significance of Bartlett’s test of sphericity (to verify the Ho hypothesis that
the variables do not have any relation in the overall, in other words, correlation matrix
is the idempotent matrix that all values on diagonal are equal to 1 and to 0 for those
outside the diagonal): sig. <= 0.05 means H0 hypothesis of the research is rejected, or
using factor analysis is appropriate.
Use Eigenvalue to perform factor analysis: >1 and Varimax rotation (to
minimize the number of variables that have large coefficient at the same factor,
enhance the ability to explain the factors)
 Factor loading >= 0.5
 0.5<= KMO (Keiser – Meyer – Olkin) <= 1
 Percentage of Variance >= 50%
Stage 3: Analyze linear regression to know the impact magnitude of the independent

39
variables on the independent ones. Thence, we could not only test the appropriateness
of the model and the hypotheses but also build a multiple regression model. The
accepting and interpreting the regression results issues are considered in relation to the
research hypothesis. Thus, the group regression analysis involves the regression
hypothesis test. If these assumptions are violated, the parameters estimated result of
regression does not achieve reliable values.

40
CHAPTER 4 : DATA ANALYSIS AND RESULTS

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