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MINISTRY OF EDUCATION UNIVERSITY OF ECONOMICS HO CHI MINH CITY -------------- Nguyen Thu Thuy PERSONAL VALUES IN SERVICE CONSUMPTION: AN EXPERIMENTAL STUDY IN VIETNAM Major: Commercial Business Code: 9340121 SUMMARY OF PHD THESIS Ho Chi Minh City - 2019 This thesis is made at: University of Economics Ho Chi Minh City Professional advisor: Asso.Prof., PhD, NGUYEN DINH THO PhD, TRIEU HONG CAM Critic 1: Critic 1: Critic 3: This thesis will be presented to the Thesis Committee at At …, the day month This thesis can be found in library: year 1 INTRODUCTION 1. Rationale for the study Rokeach (1973) officially defined 'personal values' as a part of the broader concept 'human values'. Sequently, a number of scientists have developed the concept of 'personal values' and built up many measurement systems based on Rokeach value scale (1973). The concept of ‘value’ was set by Rokeach (1973) in relation to 'attitude' and 'behavior'. Whereby, many scientists have also proposed a system of 'value – attitude – behavior' to study human behavior (specifically in consumption). The most typical one is the 'value – attitude – behavior' system of Homer and Kahle (1988). The concept of 'personal values' and the system of 'value – attitude – behavior' have been studied and developed by many scientists around the world, resulting in forming logically a chain of scale systems for 'personal values'. The systems start from: The Rokeach Value system – RVS (Rokeach, 1973); The List of Values – LOV (Kahle, 1983); Schwartz Value Survey - SVS (Schwartz, 1990). Along with these measurement systems, many studies on social behavior and consumer behavior have been conducted in many countries around the world, including Vietnam. Therefore, the author identifies the research problem as 'Personal values in service consumption'; and determines the including contents: (i) adjusting the 'personal values' scale to adapt the research environment in Vietnam; (ii) testing the concept of 'personal values' corresponding to specific model of service consumption behavior in Vietnamese market. These contents corresponds to 2 stages of the study. 2. Objectives of the study The study must achieve specific objectives: 1. Adjust the scale of 'personal values', then find what aspects of 'personal values' are relevant to the current market in Vietnam. 2. Testing the concept of 'personal values' as well as its aspects corresponding to the behavioral model in some typical service industries in Vietnam. 3. Check the reliability of the research model used in testing 'personal values' with service consumption behavior. 3. Research problem and scope of the study - Research Problem: The concept of 'personal values', particularly the concept of 'personal values' with the decision to service consumption. - Scope of the study: 2 + Selected subject: Vietnamese citizens. + Spatial scope of the study: Vietnamese research market. + Temporal scope of the study: From 2011 to 2017. 3. The novelty and contribution of the study 3.1. The novelty of the research results The novelty of the study can be listed specifically as follows: 1) Scale 'personal values': the current research results are relevant to Vietnamese research market and have scientific contribution in perfecting the studies on consumption behaviors in Vietnam. 2) Testing the concept of 'personal values', corresponding to the behavioral model: Consumption behavior service model is a combination of two classic models of VAB (Value - Attitude - Behavior) and TRA (Theory of Reasoned Action) to confirm the role of 'personal values' in the decision to service consumption in Vietnam. At this point, no research has been conducted yet. 3) The behavioral model in this study is based on the concept of 'behavior' which was measured by observing directly the variables. 3.2. The contribution of the research results The study has resulted in a complete 'personal values' scale that is relevant to the research field of service consumption in Vietnam. Thus, the research results have the following specific contributions: To researchers: 'personal values' may be one of the significant concepts that need to be considered in order to know what attracts consumers to a certain service. By using the 'personal values' scale (adapted to Vietnamese market), they may consider the relationship between 'personal values' and the choice of service. The research results may be used by consumption behavior researchers as a reference scale for the concept of 'personal values' in research models of various fields. To executives: The aspects of the 'personal values' scale are the basis for building marketing strategies, as well as business strategies in the service delivery. 3 CHAPTER 1 THEORETICAL BACKGROUND AND RESEARCH MODEL OF PERSONAL VALUES IN SERVICE CONSUMPTION 1.1. Literature review 1.1.1. The development of the concept of 'personal values' - human values The concept of 'human values' (including 'personal values') was defined by Rokeach as: ‘A value is an enduring belief that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.’ (Rokeach 1973, p.5). 'Personal values' was derived from Rokeach's concept of 'human value' and has the meanings as the five assumptions given by Rokeach (1973, p. 3): 1) The total number of values that a person possesses is relatively small. 2) All men everywhere possess the same values to different degrees. 3) Values are organized into value systems. 4) The antecedents of human values can be traced to culture, society and its institutions, and personality. 5) The consequences of human values will be manifested in virtually all phenomena that social scientists might consider worth investigating and understanding. With these five assumptions, we can understand that the forming of an individual's 'personal values' (in 'human value') is based on his or her personality, habitat, beliefs (assumption 4) - is not due to economic conditions. At the same time, 'personal values' are the desires in individual life (as defined by Rokeach) and are the same among individuals but do not have similar significances (assumption 2). Rokeach's assumptions show that the concept of 'personal values' exists in every human being, regardless of their living conditions (rich or poor in material and mental...) and can be measured (assumptions 1, 3 and 5). From Rokeach's (1973) proposition of 'human value', and with five specific assumptions, the concept and scale of 'personal values' are developed as the following diagram (Figure 2.1): 4 Figure 2.1: The development of 'personal values' According to the diagram above (Figure 2.1), the researcher made a statement that the process of forming and developing the scale of 'personal values' went through the following periods: - The Rokeach Value system - RVS consists of two kinds: (i) instrumental values (18 observable variables): moral values and competence values; (ii) terminal values (18 observable variables): personal values and social values. - The List of Values - LOV scale (9 observable variables) is applied in the marketing field and is formulated by reducing the variables of the RVS to 9 (Nguyen Xuan Lan et al., 2011, p.274). LOV was created before Zeithaml's theory of cognitive structures (1988). - The Schwartz Value Survey - SVS (56 observable variables) consists of components derived from Rokeach's instrumental values and is a psychological scale (Nguyen Xuan Lan et al., 2011, p. 273). In addition, Yi, Hong & Yue (2012) have affirmed the relationship of scale systems: first of all is Rokeach’s with 18 observations of the value components obtained in Rokeach value system - RVS. The LOV - Kahle value system is widely used because it is simple and easy to use; and this system is also based on Maslow, Rokeach and Feather theories. 1.1.2. Assess some current 'personal values' scales There are quite a number of scales for the concept of 'personal values'. On a general scale, there are: the Rokeach Value System - RVS (1973); Schwartz Value Survey- SVS (1990). On the scope of consumer analysis, there are: Vinson et al. (1977); The List of Value - LOV of Kahle (1983); Values and 5 Lifestyles - VALS by Mitchell (1983) and Durgee Value System (1996) (Lages & Fernandes, 2005). In Vietnam, the concept of 'personal values' which is used by scientists in studying service consumption behavior is measured by the SERPVAL scale - a study by Thuy & Hau (2010, 2011), but has not put into the specific behavior model yet. Although in the study by Mai & Svein (2015), 'personal values' have been placed in the relationship of 'value-behavior-attitude' - the VAB model, the field of study is not service consumption. At the same time, when SERPVAL scale was used in Vietnamese research market, quite a number of observable variables were excluded from the measurement model. Therefore, the author finds that there must be a complete scale to measure the concept of 'personal values' in the field of service consumption, and 'personal values' must be tested in specific service consumption behavior. 1.2. The concept of 'personal values' in the behavioral model 1.2.1. 'Personal values' in relation to 'attitudes' and 'behaviors' Since the conceptualization, 'personal values' has been placed in relationships with 'attitudes' and 'behaviors' (Rokeach, 1973). In line with the development of the concept of 'personal values', Kahle successfully built the LOV scale - a list of values, and set it in a specific consumption scope, along with the clear formation of the system of 'value - attitude - behavior '- VAB (Homer & Kahle, 1988). The VAB - 'value - attitude - behavior' model shows that the 'personal values' will influence specific behaviors through mediating factors (attitude, intention or motivation) (Vaske & Donnelly, 1999). Values may also have a direct impact on behavior (Homer & Kahle, 1988). In Vietnam, the concept of 'personal values' was introduced by Thuy & Hau (2010, 2011) to the system of 'personal values - satisfaction - loyalty'. Meanwhile, the study by Vu Van Hiep & Nguyen Thu Thuy (2015) which was conducted with a behavioral model demonstrated the 'value-attitude-behavior' relationship in dormitory choice decision of students. All conducted studies have used the SERPVAL scale developed by Lages & Fernandes (2005). The study uses a model of relationship between the three factors in 'personal values - attitude - behavior' system as the basis to build up its research model. Figure 1.1: Theoretical model – VAB 6 Researchers found that the theoretical model (Figure 1.1) had two variables (attitudes and behaviors) similar to a cognitive behavioral model Theory of Reasoned Action (TRA) . (Figure 1.2) Figure 1.2: Theory of Reasoned Action (TRA) (Source: Ajzen & Fishbein, 1980) 1.2.2. A research model for testing the aspects of 'personal values' in Vietnam In order to test the aspects of 'personal values' in service consumption in Vietnamese market, the researcher chose the theory model of VAB – 'personal values - attitude - behavior'. But the researcher also revised the objective of the study: testing the aspects of 'personal values' in different environments (sectors) of service consumption in Vietnam, specifically the relationship with the other two elements (attitude and behavior). Then the researcher considered that the TRA model is quite appropriate because it has been used by scholars in studying consumption behavior in many markets as well as many different fields. At the same time, the TRA model also shows the other two concepts ('attitude' and 'behavior') in 'personal values-attitudebehavior' system, and the model has already had a scale system for hidden and simple variables when analyzing data. In addition, Mai & Svein (2015) also refered to the combination of VAB and TPB models (Ajzen's planned behavior) – which were developed from the TRA model by adding 'behavioral control' variable when analyzing the impact of 'personal values' on behavior. The combination of the concept 'personal values' and the behavioral model was used by Sheng et al. (2017) in the study of holiday behavior among Australian students. Sheng et al. built the model based on how 'personal values' affects variables in Ajzen's TPB model. At this point, the researcher found evidences to prove that the impact of personal values on the behavioral model was the TPB model. And there was no impact of personal values on the TRA model (Reasoned Action). 7 Thus, the researcher decided to combine the VAB model (Personal Values - Behavior – Attitudes) and the TRA model (Reasoned Action) in the process of testing the aspects of 'personal values' on consumption behaviors in Vietnamese market. It means building a causal relationship between the concept of 'personal values' and its impact on 'attitude' on two grounds: (i) the theoretical model of the study has defined the causal relationship between 'personal values' and 'attitude' of consumers; (ii) Yuanfeng & Randall (2012) used the behavioral model in studying the small-scale shopping behavior in China and Thailand, taking into account the impact of 'personal values' and 'attitude' of customers. The research model is specifically shown in Figure 1.3: Figure 1.3: Research model of personal values in service consumption in Vietnam 8 CHAPTER 2 RESEARCH METHODS 2.1. Research process To achieve the objectives, the study was conducted in two phases: - Phase 1: to adjust the scale - Phase 2: to test the scale with behavioral model. 2.1.1. The necessity for two phases in the study The research needs to be conducted in two phases because: 1) Currently in Vietnam, in many studies of 'personal values' in service consumption, scientists are using the SERPVAL scale - the Service Personal Values (Lages & Fernandes, 2005). Lages & Fernandes (2005) have confirmed that the SERPVAL scale is a scale that reflects the notion of 'personal values' in the service field. But the author approached the SERPVAL scale through Zeithaml string theory (1988). Meanwhile, a List of values - LOV of Kahle (1983) were approached through the theory of Maslow's hierarchy of needs (1943) ( William & Richard, 1999). This shows that SERPVAL scale reflects only 'personal values' in the narrow range of consumers - consumers of services. Indeed, when building SERPVAL scale, Lages & Fernandes conducted direct surveys of customers who were using the service mobile networks in Portugal. Maybe that’s why when Thuy & Houston (2010, 2011) used SERPVAL in research for various types of services in Vietnam, this scale showed the inconsistencies (many observable variables were excluded from the measurement model after analyzing data). Thus there must be a more appropriate scale to measure the concept of 'personal values' in researching about consumer service. That is why the author finds that it’s necessary to have Phase 1 - to adjust the existing 'personal values' scale. 2) When the 'personal values' scale has been adjusted to fit the research environment, it is necessary to include it in the consumer behavior model to test the compatibility of the new scale, and to test the impact of scale’s aspects to consumption behavior. That is the second phase of the study. 2.1.2. Research process of the study To complete the research and achieve the objectives, the research was conducted with two studies corresponding to two phases: Phase 1: adjusting the 'personal values' scale to fit the research environment in Vietnam. Phase 9 2: testing the 'personal values' scale with the consumer behavior model in different service fields in Vietnam. On the basis of well-defined that the study needs to be conducted in two phases associated with two studies, and also based on the process of developing and evaluating the scale of Gilbert & Churchill (1979) and Nguyen Dinh Tho (2011), the author built a more detailed research process that was appropriate for current research. Specifically (Figure 1): Figure 1: Research process of the study 2.2.2. The process of conducting research in phase 1 While conducting the study, the author refered to the Lages & Fernandes (2005) methods used to create the SERPVAL scale – personal value in service. Thus, the 'personal values' scale was defined by the researcher as a second-order scale - similar to the SERPVAL scale of Lages & Fernandes (2005) (SERPVAL scale generation is the basis reference of the researcher). 10 Sampling method According to the whole research process (Figure 1), the first phase consists of two steps: Qualitative research: The researcher established two discussion groups. Group 1: - The exploration group: The objective of the group is to discuss the definition of 'personal values' in service consumption and to identify the factors that make up 'personal values', also to build the scale for the concept. Interviewees are people from all walks of life, so that there are many opinions from different perspectives. Thus, the researcher selected the objects as teachers, office workers, managers, general laborers, small business operators .... Group 2 - control group: The objective of the group is to test the results of group 1 discussions and to adjust. Interviewees are teachers who are colleagues of the researcher. They are experienced university lecturers, so they are able to understand and identify the problem of the research. Quantitative research: - The objective is to have a 'personal values' scale that has been adjusted to fit Vietnamese environment through market data. Observed objects are Vietnamese people between the ages of 25 and 60 (people who are in working age, have career orientation, have full capacity of behavior, have enough ability to feel about life and themselves). Sampling period is the end of 2013. Data processing methods Data analysis steps in quantitative studies: (i) Exploratory factor analysis - EFA; (ii) reliability testing; (iii) Confirmatory factor analysis - CFA. 2.2.3. The process of conducting research in phase 2 The behavioral model used in the research is a combination of two theoretical models of Personal Values – Attitudes – Behavior (VAB) and TRA (Theory of Reasoned Action). The consumer domain was identified as service consumption. (Figure 1.3) Hypothesis: Hypothesis 1: The adjusted 'personal values' scale that consists of 5 components and 15 observational variables are preserved through data analysis process (Cronbach Alpha - EFA - CFA). Hypothesis 2: The aspects of the concept of 'personal values' that exist in the testing model are statistically significant ('personal values' impacts on 'attitudes toward behavior'). 11 Hypothesis 3: Variables in research model about the consumption service behavior have a causal relationship (the non-zero path coefficient is significant). The researcher expect these three hypotheses to be supported by market data. Sampling method Researchers select three service sectors to test the 'personal values' scale. They are tourism service, passenger transport service and fitness service. Particular observed objects are: Observation representative for tourism services: domestic tourists to Nha Trang. Sampling period is on the holiday of 30 April - 1 May, 2015. Observation representative for passenger transport service: are rail passengers and airline passengers (from Nha Trang to Hanoi and from HCM City to Hanoi). Sampling period is from March to May 2015. Observation representative for fitness service: are the guests at the gymnasium in Nha Trang city. The sampling period is May 2017. Data processing methods Data analysis with statistical tools: + Cronbach Alpha Factor. + Exploratory Factor analysis - EFA. + Confirmatory Factor analysis - CFA. + Structural Equation Model - SEM. 12 CHAPTER 3 RESULTS OF DATA ANALYSIS 3.1. The research results of phase 1 - adjusting the 'personal values' scale to fit Vietnamese market Qualitative research After conducting group discussion and retrieval of all measurement variables of the current scale systems (SERPVAL, LOV, RVS), the composite scale was formed (Table 3.2). Table 3.2: Composite scale for the concept of 'personal values' 0 N Content N0 Content 1 Tranquility 15 More freedom to act Better communication with 2 Family security 16 others 3 Harmony and stability in life 17 Self-respect 4 Fun and enjoyment in life 18 Sense of accomplishment 5 Respect from others 19 Self fulfilment Feeling that the world is more 6 20 Sense of belonging agreeable 7 Social recognition 21 A world of beauty 8 Status 22 Equality Stimulating and adventurous 9 23 Happiness life 10 Higher integration in my group 24 Mature love 11 Better relationships 25 National security Strengthen my friendship 12 26 Salvation relationships Strengthen my family 13 27 True friendship relationships 14 More comfort in my life 28 Wisdom Quantitative study (sample consists of 319 observations) After carrying out the data analysis sequence: EFA Exploratory Factor Analysis → Cronbach 'Alpha Reliability Test → Confirmatory Factor Analysis CFA. The results of the 'personal values' scale for the research environment in Vietnam are as follows: 13 Table 3.5: Result of personal value scale in Vietnamese market Factors Value Contents Notes SERPVAL Value1 I have a tranquil life. Lages & Peaceful life Value2 My family is secure. Fernandes, Value4 I am pleased with my life. 2005 Value23 I am happy. RVS Sentiment Value24 I have mature love. Rokeach, 1973 Value27 I have true friendship. SERPVAL Value5 I am respected by the others. Social Lages & Value7 My society recognizes me. recognition Fernandes, Value8 I have a high social status. 2005 Value17 I am self-respecting. LOV Consciousness Value18 I have sense of accomplishment. Kahle, 1983 Value19 I fulfill myself. Value10 I highly integrate into my group. SERPVAL I have good relationships with the Value11 Social Lages & others. integration Fernandes, I strengthen my family 2005 Value12 relationships 14 Figure 3.1: CFA model with standardized results 3.12. The research results of phase 2 - testing of the 'personal values' scale with the service consumption behavior model The measurement model in the 'personal values' scale – adjusted with the components of the service consumption behavior model for three areas of tourism service, passenger transport service and fitness service, as follows (Tables 3.8, 3.13, 3.18): 15 ATTITUDE PERSONAL VALUES Tables 3.8; 3.13; 3.18: Measurement model in testing 'personal values' scale with service consumption behavior model Hidden Measurement variables variables V1 I have a tranquil life. V2 My family is secure. V3 I am pleased with my life. V4 I am happy. V5 I have mature love. V6 I have true friendship. V7 I am respected by the others. V8 My society recognizes me. V9 I have a high social status. V10 I am self-respecting. V11 I have sense of accomplishment. V12 I fulfill myself. V13 I highly integrate into my group. V14 I have good relationships with the others. V15 I strengthen my family relationships Tourism Passenger Fitness service service (sample Transport service (sample - 339 - 408 (sample - 372 observations) observations) observations) Traveling is a Taking a plane Exercise at the GYM V16 good idea. (train) is a good idea. is a good idea. Traveling is an Taking a plane Exercise at the GYM V17 enjoyable (train) is a good idea. is a good idea. experience. Traveling Taking a plane Exercise at the GYM V18 benefits me. (train) benefits me. benefits me. Taking a plane Exercise at the Traveling is V19 (train) is GYM is necessary necessary to me. necessary to me. to me. Taking a plane Exercise at the Traveling is V20 (train) is GYM is important important to me. important to me. to me. BEHAVIOR INTENTION SUBJECTIVE NORM 16 My family My family support V21 support me to me to travel by travel. plane (train). My friends My friends support V22 support me to me to travel by travel. plane (train). My colleagues My colleagues support me to V23 support me to travel by plane travel. (train). People around People around me me think that think that V24 travel is traveling by plane essential. (train) is essential. Sometimes I Sometimes I think V25 think I should I should take a travel. plane (train). I am intending to I am intending V26 travel by plane to travel. (train). I have had a plan to I have had a plan V27 travel by plane to travel. (train). Sometimes I Sometimes I travel V28 travel. by plane (train). I travel I frequently travel V29 frequently. by plane (train).. On average, On average, how how many times many times a a year do you year do you travel V30 go traveling: by plane (train): times/year times/year My family support me to exercise at the GYM. My friends support me to exercise at the GYM. My colleagues support me to exercise at the GYM. People around me think that exercise at the GYM is essential. Sometimes I think I should exercise at the GYM. I am intending to exercise at the GYM. I have had a plan to exercise at the GYM. Sometimes I exercise at the GYM. I frequently exercise at the GYM. On average, how many times a week do you exercise at the GYM: times/week 17 At the end of the analysis process, the final result is: Figure 3.3: Standardized SEM model for travel behavior model Figure 3.5: Standardized SEM model for passenger behavior model 18 Figure 3.9: Standardized SEM model for GYM exerciser behavior model At the end of the testing process of 'personal values' scale – adjusted with service consumption behavior model, the results from data showed that the three research hypotheses are fully supported. The specifications of the models are satisfactory. The relevance of the model to the value data does not exceed the threshold. Load coefficients and path coefficients are statistically significant.
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