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1. 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

2. 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.

3. TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION ..........................................................................................1
1.1.Background: .......................................................................................................................1
1.2 Project Statement ...............................................................................................................2
1.3 Research questions: ...........................................................................................................3
1.4.Research objectives ...........................................................................................................4
1.5.Research scope ...................................................................................................................4
1.6 Significance ........................................................................................................................4
1.7 Thesis structure ..................................................................................................................5
CHAPTER 2: THEORY AND RESEARCH MODEL.......................................................6
2.1.Theory ................................................................................................................................6
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 ...........................................Error! Bookmark not defined.
2.1.3. Vietnamese pet owners survey ..............................Error! Bookmark not defined.
2.1.4. Most popular dog breeds ........................................Error! Bookmark not defined.
2.1.4.1. Siberian Husky .....................................................Error! Bookmark not defined.
2.1.4.2. Alaska ....................................................................Error! Bookmark not defined.
2.1.4.3. German Shepherd:................................................Error! Bookmark not defined.
2.1.5. Customers’ reasons to purchase a dog in Ho Chi Minh City....Error! Bookmark
not defined.
2.1.5.1. Benefits:.................................................................Error! Bookmark not defined.
2.1.5.2. Drawbacks.............................................................Error! Bookmark not defined.
2.1.6. The necessaries and meanings of developing pet purchase service ..............Error!
Bookmark not defined.
2.2. Research Models.........................................................Error! Bookmark not defined.

4. 2.2.1. Theory Of Reasoned Action – TRA Model .........Error! Bookmark not defined.
2.2.2. Theory Of Planned Behavior – TPB .....................Error! Bookmark not defined.
2.2.3. Conceptual model of the effect of price, brand name, and store name, on product
evaluation ...........................................................................Error! Bookmark not defined.
2.2.4. Signaling theory model...........................................Error! Bookmark not defined.
2.2.5. Other studies.............................................................Error! Bookmark not defined.
CHAPTER 3: RESEARCH DESIGN .............................Error! Bookmark not defined.
3.1. Research process:........................................................Error! Bookmark not defined.
3.2. Information collecting methods ................................Error! Bookmark not defined.
3.2.1. Secondary information collecting methods..........Error! Bookmark not defined.
3.2.2. Primary information collecting methods ..............Error! Bookmark not defined.
3.2.3. Proceed method .......................................................Error! Bookmark not defined.
3.2.4. Questionnaire content (Addendum 1)...................Error! Bookmark not defined.
3.2.5. Interview subjects....................................................Error! Bookmark not defined.
3.3. Proposed research model ...........................................Error! Bookmark not defined.
CHAPTER 4 : DATA ANALYSIS AND RESULTS ...Error! Bookmark not defined.
4.1. Sample..........................................................................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.

5. 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. The convenient system...............................................Error! Bookmark not defined.
5.3. Business implication: .................................................Error! Bookmark not defined.
5.4. Limitations...................................................................Error! Bookmark not defined.
5.5. Recommendation for future studies..........................Error! Bookmark not defined.
REFERENCES
APPENDIX

6. LIST OF FIGURE
Figure 2.1: Decision making process of consumer buying diagram..................................6
Figure 2.2 Maslow’s hierarchy of needs .........................Error! Bookmark not defined.
Figure 2.3: Theory of Planned Behavior (TPB) .............Error! Bookmark not defined.
Figure 2.4: Factors affecting consumer trend on baby food powder ..Error! Bookmark
not defined.
Picture 3.1: Research process ...........................................Error! Bookmark not defined.

7. 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.

8. 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.

9. 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

10. 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.

11. 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

12. 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.
1.3 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?

13. 1.4 Research objectives
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
1.5 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.
1.6 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.

14. - Through the identification of factors affecting buying pet dog trend, the
research would help service providers in Vietnam understand customer needs
better in order to develop sales strategy more effectively, and find a solution to
improve the quantity of the pet dog buyers.
1.7 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.
.

15. 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

16. 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

17. 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

18. 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.

19. 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

20. 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.

21. 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
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