Fc
ThAi nguyen University
Socialist Republic of Vietnam
Southern luzon STATE University
Republic of Philippines
INFLUENCES OF PERSONALITY, PSYCHOLOGY FACTORS AND
MARKETING MIX ON THE CONSUMPTION
OF FOREIGN FAST-FOOD BRAND IN HA NOI, VIET NAM
Advisor
:
Dr. Alice T. Valerio
Name of Student
:
NGUYEN THI THANH HUYEN
English Name
:
TULIP
Date of Birth
:
02-12-1976
Course
:
SLSU-DBA1
Hanoi May, 2013
ii
ACKNOWLEDGMENT
To having completed this thesis within period of time had had tried my best,
the first, I have would like to express our most sincere thanks to the Management
Board of the Southern Luzon State University, Thai Nguyen University, teachers of
the universities have helped me facilitate the learning process throughout.
The second, I have would like to express sincere gratitude and profound Dr.
Alice T. Valerio, enthusiastic teacher who have dedicated guidance, encouragement,
spending time and exchange orientation for me during this research.
The third, I have would like to thank Mr Ngo Anh Cuong (English name:
Smile) in this class who helped me to support statistics professional SPSS, thank my
best friends who have helped and encouraged me to complete this thesis.
Finally, I sincerely thank Management Board of Hanoi community college
(HCC), colleagues in HCC, (where I work) helped and left conditions for me to
complete the research.
iii
DEED OF DECLARATION
I, Nguyen Thi Thanh Huyen (English name: Tulip), hereby submit my thesis
for oral examination, entitled “Influeneces of personality and psycholofy factors
and marketing mix on the consumption of foreign fast food brands in Hanoi,
Vietnam”, truthfully declare that the said paper is a product of my original research
investigation.
NGUYEN THI THANH HUYEN
DBA Candidate
iv
CONTENTS
ABSTRACT .................................................................................................................vii
Table list........................................................................................................................ xi
Figure list .....................................................................................................................xii
Figure list .....................................................................................................................xii
Illustration List ............................................................................................................xiii
CHAPTER 1 .................................................................................................................. 1
INTRODUCTION ......................................................................................................... 1
CHAPTER 2 ................................................................................................................ 22
1. Review of related literature .................................................................................. 22
1.1. Litreratures of personal factor influence on customer‟s decision
purchasing fast food ......................................................................................... 22
1.2. Litreratures of pshychology factor influence on customer‟s decision
purchasing fast food ......................................................................................... 24
1.3. Litreratures of marketing-mix factor influence on customer‟s purchasing
fast food ........................................................................................................... 28
2. Theoretical framework ......................................................................................... 35
CHAPTER 3 ................................................................................................................ 40
1. Research design ................................................................................................... 40
2. Sampling plan ...................................................................................................... 41
3. Field work ............................................................................................................ 42
4. Data processing method ....................................................................................... 43
5. Research instruments ........................................................................................... 45
6. Statistical treatment .............................................................................................. 45
5. Limitation ............................................................................................................. 46
CHAPTER 4 ............................................................................................................ 48
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA ................... 48
1. Scale value test ..................................................................................................... 48
2. Hypothesis test ..................................................................................................... 50
2.1. To identify some variables of demographic characteristics (personal) to be
relative with some variables of psychology factors that encourage consumers‟
decision buying fast-food in restaurants (H1 – Objective No 1) ..................... 50
v
2.2. To describe some variables of demographic characteristics (personal) to
be relative with some variables of marketing-mix influencing consumers‟
purchasing fast-food (H2 – Objective No 2).................................................... 58
2.3. To describe the relationship some variables of psychology factors with
marketing-mix influencing consumers‟ purchasing fast-food ( H3 – Objective
No 3) ................................................................................................................ 66
2.4. To describe some variables of marketing-mix influencing directively on
consumer‟s decision to purchase fast food (H4 – Objective No4) .................. 72
CHAPTER 5 ................................................................................................................ 78
SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ........... 78
1. Summary .............................................................................................................. 78
2. Findings................................................................................................................ 81
3. Conclusions .......................................................................................................... 85
4. Recommendation ................................................................................................. 86
APPENDIX A QUESTIONNAIRE TO CUSTOMER............................................... 90
APPENDIX B PLACE.COM.VN............................................................................... 95
REFERENCES ............................................................................................................ 99
vi
ABSTRACT
The fast food outlets continuous development with brands like Lotteria, KFC,
BBQ, Pizza Hut ... and there are many predictions about the presence of the following
brands such as McDonald's in Vietnam. Brand Lotteria – Korean, strength of fried
chicken owning over 60% market share, while 60-70% Lotteria hamburger and the
rest divided among brand pizza, spaghetti. No other names less competitive, Jollibee
(fast food brand famous Philippines) also recently opened the 20th outlet in Vietnam.
Fast food and accelerating investment accounts positions "strategy" in the city. So far,
Lotteria has 50 outlets across the country. In addition to capital for investment in
strategic positions, they also focus on training human resources management,
business, sales...
It is confirmed that the consumption trend in the supermarket, convenience
store, fast food restaurant has created a vibrant and fast growth of the markets in
processed foods and in Vietnam today and future. Food supply, food safety quite
effectively this will gradually replace the habit of using the street food of the majority
of the urban population. However, there are also concerns the use of fast foods will
increase the weight as much protein, fat, low-fiber meals in family tradition as both
the lack of the same is customary accustomed to fast food restaurants ... But in
modern society, consumer culture, the growing balance of values in life will not be
too difficult for everyone.
The intense competition among foreign fast food brands in Vietnam economic
context recession will make them expand outlets in the locations be goodwill, but high
rents in many years.
vii
What are factors influences on consumer‟s behavior purchasing fast food? Are
there marketing solutions for brands to reduce losses and improve its not only imagine
but also position?
Objectives: To determine fast food patterns; identify personality, psychology and
marketing-mix factors effect on foreign fast food; find out the influence of marketingmix on utilizing fast food enterprises in Hanoi, Vietnam.
Method: A descriptive, cross-sectional study was taken, using validated questionnaire
to elicit the characteristics of the study population in 4 center districts in Hanoi,
Vietnam.
In this thesis, Chi-square was most used in the processing of statistical data to
determine the relationship between two variables. Sometime Kendall‟s tau_b was
used as tool supporting for test two variables being tightly bound or loose, Gamma
was used to support for test two variables being positive or negative (Kendall‟s tau_b
and Gamma were suitable with ranked questions only). Cronbach‟s Alpha was used to
test reasonable and logical scale of ranked questions.
Results:
With 31,8% participants in 4 districts is often use fast food with 2-3
times/month; 33% with at least 4 times/month; 27% with less than 2 times/month and
8,2% 8-12times/month. The higher average monthly income, the more female ready
to pay higher amount of money spent on fast food.
Female with 250$-350$/month income (32,8% ÷ n= 59) and 350$-500$/month
income (34,0% ÷ n=37) spent $20-$30 for buying fast food per month. The most
participants were 30,6% (n=118) to be worried with percentage of fat, the second was
nutrient 25,9% (n=100). The most participants worried about overweight (52% ÷
n=200), the second was diabetes (30,2% ÷ n=116).
viii
Consumers have known foreign brands fast food in Vietnam: the first rank was
KFC (23,7% ÷ n=94), the second rank was Lotteria (19,4%% ÷ n=77), the third was
BBQ (17,6% ÷ n=70), the fourth was Pizza Hut (14,9 % ÷ n=59), Al Fresco (12,6% ÷
n=50) ranked fifth, after was Pepperonis (11,4% ÷ n=44).
The first rank reason people bought fast food has been time limitations (26% ÷
n=103), the second rank was taste (23,8% ÷ n=95), the third rank was can‟t cook
(20,2% ÷ n=81), the fourth rank was convenience (14,0% ÷ n=56). But there was no
significant different between 4 ranks in the top first.
The first rank item of fast food was fried chicken, the second was pasta and
the third was concluded: drilled chicken, pizza and burger because of having been
near about the same percentage.
There was not different age period (n=390), not different education level
(n=328), not different lifestyle (n=390) with above 30% participants (n=310 about
age; n= 301 about education; n=310 about lifestyle) to select “strong agree” with
decorated outlets, quality of food and outlets located in streets which factors have
influence on buying fast food.
There was 91,8% participants to buy fast food coursed of quality fast food
improving in future; 80% participants to be influenced by quality service which is
improving better in the future; 79,5% participants to be influenced by reducing price
in the future; 71% participants to be influenced by massage media changing.
Conclusion:
There was relationship between personality and psychology factors:
determined frequency of fast food consumption; their amount of money spent on fast
food per month; their attitudes towards heath.
ix
There was relationship between personality and marketing-mix factors:
determined consumers‟ reasons for frequency of fast food consumption; their
awareness of foreign brands fast food.
There was relationship between personality and marketing-mix factors:
determined consumer‟s specific item fast food choices; their positive behavior on
quality food and quality service, located outlets, price and adverts.
Finally, marketing mix factors (quality, price and message media) influenced
on consumers‟ purchasing fast food.
x
Table list
Table 1: Statistics on population in 4 center districts in Hanoi .................................. 41
Table 2: Summary of the number of fast food outlets in 4 center districts in Hanoi ... 43
Table 3: Likert’s Scale with ranked question ............................................................. 45
Table 4: Layout of the questionnaire .......................................................................... 45
Table 5: Over view of common statistical treatment ................................................... 46
Table 6: Cronbach's Alpha was tested 7 questions in part III ..................................... 48
Table 7: Cronbach's Alpha was tested 4 ranked questions in part IV ......................... 49
Table 8: Demographic variables and frequency of fast food intake ........................... 51
Table 9: Personality variables, frequency of fast food intake and money spent on fast
food per month ............................................................................................................. 53
Table 10: Demographic factors and attitude towards health ...................................... 57
Table 11: Mean of C17_quality of food, C18_quality service, C19_outlets in the
shopping malls ............................................................................................................. 58
Table 12: Both quality of food and service, outlets located and frequency of fast food
intake ............................................................................................................................ 59
Table 13: Outlets located, rebate period and adverts impacted on awareness of
foreign fast food brands in Vietnam............................................................................. 63
Table 14: Reasons for buying fast food and 2 items of psychology factors ................. 65
Table 15: Demographic (age, education, lifestyle) with decorated fast food outlets and
quality of food .............................................................................................................. 71
Table 16: Quality of fast food relates to quality will be improved .............................. 73
Table 17: Quality of service relates to quality service will be improved..................... 74
Table following shows result of test 2 loose or tight variables related with Kendal‟ll
tau_b and 2 positive or negative variables related with Gamma. ................................ 75
Table 18: Debate of period relates to price will be reduced ....................................... 76
Table 19: Adverts influence on consumers’ purchasing fast food ............................... 77
xi
Figure list
Figure 1: Factors influence on decision process of consumers buying ....................... 36
Figure 2: Overall Framework: Effects of personality, psychology and marketing-mix on
the consumers’ buying behavior in fast food ................................................................. 37
Figure 3: Specific Framework: Effects of personality, psychology and marketing-mix on
the consumers’ buying behavior in fast food ................................................................. 38
Figure 4: Research design ............................................................................................ 40
xii
Illustration List
Illustration 1: Demographic fators and 4 types of common disease ............................ 56
Illustration 2: Demographic fators and 4 nutrition ingredients in fast food................ 56
Illustration 3: Relationship between agreed levels from the highest to the lowest level
about frequency of fast food intake .............................................................................. 60
Illustration 4: Foreign brands of fast food ranked in Vietnam .................................... 62
Illustration 5: Place and price factors impacted on areweness International brans of
fast food in Vietnam ranked ......................................................................................... 64
Illustration 6: Reasons for buying fast food ................................................................. 66
Illustration 7: Item fast food choices with 3 features of personality factor
(demographic factors) .................................................................................................. 67
Illustration 8: Items of drink choices ............................................................................ 68
Illustration 9: Scale of demogaraphic (age, education, and lifestyle) with decorated
outlets, quality food and located oulets in the streets .................................................. 72
xiii
CHAPTER 1
INTRODUCTION
Background
According to the Euro monitor 2011 exam has 146 outlets Lotteria, KFC 134
stores, this are the 2 leading foreign brands fast food in Vietnam. Tuyen Nguyen,
reporter of VietQ.vn, mentioned that: revenue of fast food in Vietnam 2009 year was
about 25,000,000$, it was about 43.450.000$ in 2011 year.
Less than 10% of Vietnam's population has a habit of using fast food (fast
food) - still a modest figure, but with the growth of the economy and increasing
consumer demand for modern life, fast food market Vietnam is really fertile land,
great potential for investors. The target customers, who fast food enterprises have
aimed, are 17 – 29 years old and family has children. Those products have been
consumed by pupils and students. 78% people with income of 100$ per month have
been being used fast food.
It can be seen fast-food outlets usually located in city centers, supermarkets,
large commercial centers.
It is common to encounter familiar images of families shopping, entertainment
and dining at fast food outlets. A serving of Coca cola water, a sandwich, fries, salad,
fried chicken… with the average price of 10$-20$ to become the favorite of not only
children but also parents. Or instant coffee in paper cups, cold meat loaf sandwiches
are common dishes in the staff office. Simple meals, while maintaining compact
power supply for working days, to help office workers have more time relaxing
instead of noisy crowded restaurant popular in the streets.
1
Besides the convenience of fast food such as saving time, enough energy, it
also became the choice of cuisine menu for a fairly obvious reason: Fast food is a
maximum limit poisoning hazard food poisoning.
Solutions in fast-food aspects of social life that is growing, the economic
potential of many Vietnamese families, especially in big cities allows them to have
the opportunity to choose and satisfy demand personal preference but fret not attempt
to cost more. It is not merely a diet guaranteed life that has been raised to the culinary
arts and enjoy. Therefore, the fast-food outlets are regularly modern, spacious and
quite luxurious even.
Hanoi has been 17 BBQ outlets (kinhdoanh.vnexpress, 2013), 7 outlets KFC,
16 outlets Lotteria (vuimoingay.com, 2013), 27 outlets Pizza‟s Hut (Gafin.com,
2013)… Hanoi has been potentional market for international bands of fast food to
expand business and other investors in to this place.
Vietnam has taken part into international links as the WTO, ASEAN ...
Businesses have more opportunities to develop production and business. Pressure on
as much work as the social development, women in the family does not have much
time for cooking from fresh food every day. Fast-food is also one of the options of the
housewives.
Food items imported from abroad into Vietnam as well a lot. This is an
opportunity to change consumer food habits. The young are ready to explore new
tastes with new experience.
The household median income rather, who lives in the apartment, tends to
engage in entertainment venues, shopping malls, supermarkets on the weekend or
holiday.
2
I assume that there are two main groups of factors affecting consumer‟s
behavior (personality and psychological) and the fast-food company's business
overseas can use Marketing tools to promote change consumption habits of the
Vietnam.
For success of the business goal is to introduce products into existing markets
or new markets, manufactures always are awareness of the important role of
understanding factors which influencing on customer‟s behavior. After that, producers
will design Marketing campaign to reach to customer‟s aspiration.
Consumer behavior is the act of individuals in obtaining and using goods &
services. Consumer purchases are likely to be influenced by physiological,
psychological & sociological factors (Joshi, 1993). Function that links the consumer,
customer and public to the marketer through information, which used to identify and
define marketing opportunities and problem (Kotler, 1994). To catch efficiently
competitive market, manufactures have to produce goods based on customer needs
(Tafley, 2004). Factors of awareness, knowledge, education, personality, motivation,
life style… influence on customer‟s behavior (Kotler, 2004). An organization can
continue to survive if it understands a comprehensive consumer needs and demands
(Hawkins et al, 2006). Consumers' level of awareness and information towards the
studied certification systems is rather low especially for the system of integrated
management products (Botonaki, 2006). An organization can deeper understand
customer‟s purchasing, provides information about consumer behavior (Nesai, 2009).
Food buying behaviors checked up as part of a “cultural ideology,” that can be
prejudiced by material and social requirements, dependent more on history, routine,
disinterest, and an visual sensibility to form consumption patterns (Anand, 2011). Not
only adults but children had been fonder of going to the fast food restaurants for
3
having fun on occasions like birthdays, results and even get together parties. Fast
foods taste good to those youngsters, which make them believe that fast food is quick,
easy and satisfying as fast food centers had been making “value” meals for children
that are increased in portion sizes and becoming a fashion, as customers are not only
eating but enjoying the environment. Goyal and Singh (2007) have culminated that
the young consumers visit fast food channels for fun and change.
Cross-cultural and economic cooperation between the countries have made
consumers much greater access to new products. Fast-food restaurants are more
popular because of its price, quick services, convenient, entertainment and
promotion… that can influence customer‟s perceptions. The emerging market in
Vietnam but fast-food was quick to change their habits and tastes of consumers.
Besides fast food brand has operated overseas for many years, the fast-food market in
Vietnam is quite exciting start with the emergence of fast food brands as well as
domestic investors other than preparing to enter the Vietnam market.
The rate of growth in consumer expenditures on fast food has led most other
segments of the food-away-from home market for much of the last two decades, since
1982 (D. Jekanowski, 1999). The United Nations Economic and Social commission
for Asia predicted that by 2020 fifty percent of total population would be urban; half
of that population would be from Asia. So fast food organization had been taking it as
an opportunity to serve Asian developing countries like Viet Nam that had considered
as an attractive segment of market. “Food in a globalized world” has concluded that
food is a means of life but it has become meaningful investment for business
(Ragavan, 2003). There are some famous foreign brands, such as: Kentucky Fired
Chicken (KFC), MC Donald‟s (McD), Subway, Pizza Hut, Get Stuff‟s and more.
4
The customer‟s motivation can be change if they are higher in knowledge,
education, living conditions; sensitive to new social trends… marketers should
consider theirs‟ customer requests, intakes and buying behaviors (Kotler, 2009).
Behavioral and psychosocial factors impact on fast-food restaurants choice (French
SA, 2001).
The more economy develops, the more customer consider carefully about the
health, the hygiene and safety food. Physical risk pertains to perceived threats the
product poses to the health of the consumer, while psychological risk refers to
perceived worries or concerns of the consumer regarding the safety of a product.
Performance risk relates to the risk associated with the product not reaching
consumer expectations in terms of taste, nutrition or value for money (Mahon D,
2004). But in an unhealthy way, as there is a potential link between fast food intake
and weight gain (Sigman-Grant M, 2003; Maddock J., 2004; Bowman SA, 2004;
Schröder H, 2007). Understanding consumer perception of risk and impact on
purchase behavior is a key issue for the mutual benefit of both consumers and food
industry (Yeung, 2001).
To meet the consumer‟s changed needs, what do manufactures can do?
Producers have to find out what the strongest, the deepest factors influence on
consumer‟s purchasing. Agent of the marketing mix system is not only the factors
impact on customer, but also is important tool for enterprises perform strategic plan
and long-term adjustment to suit the needs of consumers (Kotler, 2009). Influence of
perceived fast-food quality of intrinsic attributes (e.g. colour, flavour, smell,
appearance) and extrinsic attributes (e.g. brand, denomination of origin, and image of
traditional product) on consumer satisfaction, loyalty and purchasing intention
(Espejel, 2007). Consumer interest in certified products meet quality standards, this
5
condition will encourage consumption about fast-food (Botonaki, 2006). Price serves
as a powerful indicator of quality and leading brands; there is the relationship
between pack size, price and purchasing behavior (Gabor, 1979). Customer will have
motivations in impulse buying behavior, if they are provided hedonic rewards
(Hausman, 2000). Labeling and value size pricing at fast-food restaurants can
encourage consumer perspective (O‟Dougherty M, 2006). A key factor of consumer
loyalty and buying intention is food protected designation of origin (Espejel, 2008).
Consumer‟s purchasing fast-food is more influenced by internet advertisement,
commercial advertisement and print advertisement (Ahasanul, 2009). Manufactures
can use marketing instrument to attractive youth consumption fast-food (L. Harris,
2010). Three dimensions (service and delivery dimension, product dimension, and
quality dimension) are identified based on factor affecting the choice of fast food
outlets by young consumers (Goyal, A., 2007).…
There is a lot of traditional fast-food products present in Hanoi. Hanoi
consumers focused on taste, they come with fast food is mainly due to good food,
suitable to the taste. Fast food market is becoming bloated and filled with fertile, but
the market share of the Vietnamese brand too little. The fast-food brand is continuing
international penetrate the mass market Viet Nam stores were opened in a short time,
the government no longer around Hanoi or Ho Chi Minh City which spread to the
provinces. The two "giants" large fast food industry is available in Viet Nam is KFC
and Lotteria just completed the opening of 100th store. When commenting on these
figures, representatives of KFC and Lotteria acknowledge "everything seemed faster
than expected." Mr Il Sik Rho, general manager Lotteria Southeast Asia, said in the
original plan units only expected 79-80 outlets, the outlet 100th birth before the end of
2011 were very optimistic that the market offices. The Lotteria has built in chain
6
outlets across the province from Hai Phong, Hanoi, Da Nang…, has been present in
many locations in the commercial center, entertainment. Price serves as a powerful
indicator of quality and leading brands; there is the relationship between pack size,
price and purchasing behavior (Gabor, 1979). Customer will have motivations in
impulse buying behavior, if they are provided hedonic rewards (Hausman, 2000).
Other than feeling "luxury" 10 years ago, to today's youth Vietnam entered a
fast food restaurant like KFC, Lotteria, have become familiar with, not strangers.
Getting involved in Vietnam market in 1997 with its first restaurant in the
heart of downtown Saigon Super Bowl Trade Center in Ho Chi Minh City, the current
KFC (U.S.) has been present in 19 provinces across countries, with more than 100
outlets fast food at the end of 2011.
Under the plan, will open 116 KFC restaurants in Vietnam by the end of 2012
and increase the number of fast food restaurants KFC on the number 200 in 2015.
Lotteria, a Korean fast food brand appeared in Vietnam in 2004, and was able
to get 140 fast food restaurants. In 2011, Lotteria has had 100 restaurants in Vietnam
for 6 years and did not conceal ambitions raise the number to 200 in the next 5 years
(2016).
Also in Vietnam early in 1997, currently at Jollibee Foods (Philippines), also
has dozens of restaurants in Vietnam. In 2009, Jollibee has 14 restaurants after only 2
years and has ambitions to open more restaurants in Vietnam anymore.
Baskin Robbins (U.S.) in Vietnam early in 1994 but then stopped trading due
to import tariffs rising raw material and decided to come back early 2012. In the next
5 years, Baskin Robbins will open 32-50 restaurants in Vietnam.
7
Pizza Hut in Vietnam in 2005 and after a period of exploration, they opened
the first restaurant in Ho Chi Minh City in 2007 and as of late 2011, Pizza Hut has 19
restaurants and will not stop that number.
Subway also is striving to open 10 restaurants in 2013. BBQ Chicken (South
Korea) in Vietnam in late 2006, now it has 15 restaurants in Hanoi next year and is
expected to open 8-10 restaurants.
McDonald's and Burger King (USA) is preparing to Vietnam. The number of
restaurants will be opened in Vietnam were not disclosed, but Burger King is planning
to open 1 outlet/160.000 the population and if this is true, the Burger King fast food
restaurants in Vietnam will be terrible ."Our goal is to open as many stores as quickly
as possible," said Elias Diaz Sese, president of Berger King Asia Pacific reply
Vietnam newspapers recently.
Thus, if briefly, Vietnam will have tens of thousands of fast food restaurants
across the country, mainly in the big cities like Ho Chi Minh City, Hanoi, Hai Phong
... in the next few years. With this density, the prospect of 2015, the Vietnam
experience into the streets, fast food is not ambiguous. However fast food companies
will not easily make their plans in the context of difficult economic and consumer
psychology of Vietnam (Nguyen Hung, 2012).
Although if people use much fast food, it will be bad for health, even causing
a directive cause of obesity, diabetes, cardiovascular. But there is a significant trend
that is easy to recognize the younger generation preferred fast food as a way to show a
new style, youthful and dynamic. Whereas in the U.S. and other western countries, the
major reason due to use of fast food is convenience when carried away by the public
transportations or cars. In addition, Vietnam's economy has been in a recession
according to the implications of the global economy. This makes more difficult for
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