Tài liệu Study on the elements that affect the buying decision of milk bottle dr. brown in new generation company limited

RESEARCH PROJECT (BMBR5103) STUDY ON THE ELEMENTS THAT AFFECT THE BUYING DECISION OF MILK BOTTLE “DR. BROWN” IN NEW GENERATION COMPANY LIMITED Research Proposal STUDENT’S FULL NAME : Ly Vinh Kien Huynh Pham Ngoc Lam INTAKE : May 2012 ADVISOR’S NAME & TITLE : Dr. Ut Tran October 2013 ID# 2448464 ID# 2448452 Business Research Method Open University Malaysia HUTECH Campus Instructor: Dr. Ut Tran Advisor’s assessment .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... .................................................................................................................................................................... Advisor’s signature Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 1 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran STUDY ON THE ELEMENTS THAT AFFECT THE BUYING DECISION OF MILK BOTTLE “DR. BROWN” IN NEW GENERATION COMPANY LIMITED Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 2 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran EXECUTIVE SUMMARY: ........................................................................................... 4 I. INTRODUCTION ..................................................................................................... 5 1.1. Research Background. ............................................................................................................ 5 1.2. Problem Statement .................................................................................................................. 5 1.3. Research Objectives and the Scope of the Research ............................................................... 6 II. LITERATURE REVIEW .......................................................................................... 7 2.1 Research definition (operational definition of key words) ........................................................... 7 2.2 Related research .......................................................................................................................... 10 2.3 Related Model in an analysis ...................................................................................................... 13 III. CONCEPTUAL FRAMEWORK ............................................................................ 15 IV. HYPOTHESIS AND OPERATIONAL DEFINITION .............................................. 16 V. Methodology ....................................................................................................... 17 1. Type of research choice ............................................................................................................ 17 2. Research design ........................................................................................................................ 18 3. Estimated budget of the research .............................................................................................. 21 4. Activity plan: ............................................................................................................................ 22 5. Conclusion ................................................................................................................................ 22 REFERENCES ........................................................................................................... 23 Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 3 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran EXECUTIVE SUMMARY: Due to the economic recession, all enterprises are facing with the income and benefits, our company also face those problems too. We would to make research on “The elements that affect the buying decision of milk bottle “Dr. Brown” in New Generation Company Limited” to discover the elements and give the solutions for those problems. The research is processed by 2 phases: preliminary research with the peer interview to discover the elements affecting on Dr Brown milk bottle buying decisions and the official research with the 100 samples to find out the elements. in addition, we can use more descriptive statistics, EFA, Cronbach alpha to make our research more clearly .In the limitation of research, the researchers are only the references and it also helps to find solutions of business activities and distribution products efficient. The research will be arranged as following EXECUTIVE SUMMARY: I. INTRODUCTION II. LITERATURE REVIEW III. CONCEPTUAL FRAMEWORK IV. HYPOTHESIS AND OPERATIONAL DEFINITION V.METHODOLOGY REFERENCES APPENDICES Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 4 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran I. INTRODUCTION 1.1. Research Background. The world economy has tendency of being in risk. The weaker domestic demand and slower growth in several countries cause the import and export to slow down. The New Generation Company is an importer of milk bottle products from USA which were also affected by those changes in the world economy today. The sales situation of this product line is being decreased since the first quarter this year while inventory increased. There must be several key reasons for that. Therefore, this research will be focused solely on identifying the causes of that situation, and then offering some suggestion to overcome the difficulties and get the business back on track. 1.2. Problem Statement 1.2.1 Main Problem The sales volume status and profit of this milk bottle product “Dr. Brown” are decreasing since 1st quarter 2013. It caused the company fail to obtain the goals. 1.2.2 Sub –Problems: a. The price of Dr. Brown milk bottle is no match against competitors. It is quite high in comparison with the other milk bottle products in the market. According to Mankins (2005) concluded that the quantity demanded falls when the price rises and the quantity demanded rises if the price falls, and the quantity demanded is negatively related to the price. He also proposed the law of demand “Other things equal, when the price of a good rises, the quantity demanded of the good falls” b. Brand awareness: More competitive products with unknown origin appear on the market which affected the customer’s brand awareness against the milk bottle products of New Generation Co., Ltd. Brand awareness has great influences on buying purpose from the customers who intend to pay money for well-known product (Keller, 1993; Macdonald & Sharp, 2000). c. Advertising is not good and attractive. Due to the change of advertising budget, the advertising methods are changing so much, the managers does not make advertisement in the retail shop, but they did in the small website column . Mohamad et al (2013) used the multiple regression analysis and applied Pearson correlation to examine the connection Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 5 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran between the advertising and buyer decision making, and they conclude that there is relation between two variables. d. Customer satisfactions play an important role in the business. The customers feel that the new milk bottle 240 ml is not satisfied because there is leak of milk from the milk bottle neck and the customers feel very annoying when they feed the milk to their babies and they expect that the milk bottle will be design better at the milk bottle’s neck. Besides, Murekio (2010) uses the revenue data, and customer satisfaction survey data in ten retails center in Nairobi, she concludes that there is significant relationship between the customer satisfaction and the revenue in 10 retail center. e. Personal factors: The current economic recession is presently a source of concern for marketers’ attempts to determine the current buying behaviors of the consumers, consumers are changing their buying behaviors and greatly decreasing there overall spending. According to Armstrong & Kotler (2009) proposed that if economic indicators point to a recession, marketers can take steps to redesign, and reprise and their product closely, they also concludes that a person’s economic situation such as personal income, savings, and interest rates will influence their product choices in the store. If not being reviewed and reacted properly, this problem may get worse: -“Dr. Brown” milk bottle manufacturing line may have to declined or shut down due to overstock -Inventory of milk product increases and unusable. -Workers of this manufacturing line might lose their jobs, increase unemployment -The company competitive position will suffer damage. 1.3. Research Objectives and the Scope of the Research 1.3.1 Research Objectives This research is to identify the important aspects which affect the buying decision of milk bottle’s consumers within Ho Chi Minh City area, Vietnam, in 2013. Base in the information found, we will suggest the solutions for improving buying decisions and the sales revenue of Dr. Brown milk bottle product in New Generation Company Limited. Despite some limitations, the study results are considering valuable references; we would like to offer useful solutions to enhance the product recognition and its sales. 1.3.2 The scope of the proposed research? Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 6 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran The research is intended of making the research of the element affecting on buying decision in New Generation Company and finding the solution to resolve the low sale and profit 1.3.3 Limitation of the research The proposed research is limited on the mother and children shops in Ho Chi Minh City area, we also narrow the target customers’ income to over 7 million VND, assuming the retailers average purchase volume is 10 million VND per month. The research is conducted within Ho Chi Minh City, so the result is not intended to be used and compared in any other areas due to geographic differences. The research is limited to baby product market in Ho Chi Minh city, Vietnam. It will only look at the market share and competitions that may affect Dr.Brown milk bottle product directly. It may use other similar products such as baby care, toys, baby medical products etc. as references for analysis, but should not consider them as key factors for comparison. It also should not refers and mention other product lines of New Generation Co., Ltd. 1.3.4 Research significance Once completed, the research can help the management of New Generation Co., Ltd realizing the situation and prepare a clear strategy for future business of this milk bottle product line. It also may help the consumers to be aware of how important it is to choose an appropriate baby product. II. LITERATURE REVIEW 2.1 Research definition (operational definition of key words) 1. Consumer behavior: Cook (2009) conclude that consumer behavior is described in this way: set of activities is directly achieved, use and disposal of goods and services. 2. Buying decision process: Engel et al., (1986) suggest that high involvement with a product results in which starts with problem recognition, an information search, alternative evaluation, purchase, and post purchase activities. 3. Customer satisfaction: According to Blackwell, Engel & Miniard (2006), there are three major factors of satisfaction such as product performance, consumption feelings, and Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 7 Business Research Method Open University Malaysia HUTECH Campus Instructor: Dr. Ut Tran expectations. The study showed that building customer satisfaction resulted in better returns to companies (Reichheld, 1996) 4. Price acceptability: Herrmann, Huber & Wricke (2001) and Homburg, Hoyer & Koschate (2005) stated that consumer satisfaction has a positive relationship with price acceptability and readiness to pay. From that research, these author want to say that higher consumer satisfaction will make higher price acceptance and readiness to pay and low price sensitivity appear. In contrast, a low consumer satisfaction will affect price acceptance and readiness to pay positively, and make price sensitive in high level 5. Advertising: Moschis and Mitchell proposed that the effect of TV advertising and interpersonal influences and social structured on family consumption decisions. Batra et al. (1995), the effectiveness of advertising is considered for the effects on sales in the short term. 6. Brand awareness: Brand awareness is essential because consumers remind the brand in the time of a specific product, and the brand will be a part of the mindset. Awareness can also effect on consumer decision making by influencing brand associations that create the brand image (Keller, 1998). A brand name gives a characteristic which leads the retailers and consumers to find out service providers and expect the outcomes of the services. Kan (2002) suggests the brand awareness can make to increased profitability evaluation. Brand awareness has great influences on buying purpose from the customers who intend to pay money for well-known product Keller (1993); Macdonald & Sharp (2000). Addition, Nazia et al (2011) use the regression to test on 200 retailers on two brands i.e. L’Oreal and Ganiers with 3 variables brand awareness and perceived quality, customer loyalty. They concluded that the study was brand awareness significantly influences the profitability. 7. Personal factor: Linehan and Cadogan (2000) conclude that personal factors influence buying decisions such as economic, age, gender, occupation, and lifestyle. Armstrong and Kotler also has similar opinions and argued that if people with a good secure job and income, have the tendencies of buying more expensive and even luxury product, where people with less income and less secure jobs tend to buy cheaper products. 8. Brand loyalty: Chaudhuri & Holbrook (2001) said that brand loyalty has the relationship with brand price. In addition Aaker (1996) shows that price is the first sign of brand loyalty. In addition, Aaker also emphasized that Price premium is distinguished as a customer is willing to pay for the brand loyalty in comparison with another brand which Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 8 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran bring the same benefits, but the benefit can be bad or good factors which are dependent on the 2 brands in a group of comparisons. 9. Package design: According to Stewart (2007), packaging design skill is communicating design thinking effectively. He defines the elements of design as: material choices, color, text, photography and illustration. According to Sustainable Packaging Coalition (SPC), strategies for sustainable packaging design are: package Design for sustainability , transport environmental best practices . However, Soroka (2002) proposed that packaging is the combination of the science, technology, art and fashion to protect and keep the products to customers. Variawa (2010) analyzed the effects of packaging on decision making process of Consumer Goods in retail shopping. 10.Supplier : Keeping good relationships with suppliers is recognized as an impressive factor in sustaining a competitive advantage (Stevenson 2009:525). 11. Buying decision: Sproles and Kendall (1986) proposed that buying decision is also having related a confused over choice form the customers. They feel very confusing when they choose suitable product because it’s over choice. 12. Supplier-manufacturer relationship: Michael Maloni and W.C. Benton (1999), in their research stated that the power source of the supplier, once overrun the manufacturer, could affect their relationship and damage the business of the manufacturer. 13 Mothers’ communication orientation and consumer socialization: Carlson, Grossbart and Walsh (1990) explored that mothers’ communication orientation and consumer socialization have the close relationship tendencies on buying decision 14. Need Recognition: Neal and Questel (2006) stating that need recognition occurs due to several factors such as personal, professional and lifestyle which ead to formation of idea of purchasing. 15. Information search: Schiffman and Kanuk (2007) stated that consumer finds information related to desired product 16. Evaluation of alternatives: Kotler and Keller (2005) consider this stage as one of the important stages as the consumer considers when they take into account the factors such as size, quality and price. 17. Purchase decision made: Kacen (2002) stated purchasing decision can be divided into planned purchase Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 9 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran 18. Post-purchase evaluation: Neal et al (2004) proposed that the important process in the consumer decision making process when it makes the influences on the consumers’ purchases of the same product or service from the same supplier 19. Internal search refers to the process where consumers rely on their personal experiences and believes (Rose and Samouel, 2009). 20. Life style: Due to Morganosky (1986). He states that Life style in relation to the purchase of different consumer products, shopping behavior, retail behavior and online purchasing behavior were also found in the consumer literature 21. Self-concept: Self-concept is another factor affecting consumer decision-making. It is defined as “the totality of the individual’s thoughts and feelings having reference to him/herself as an object (Rosenberg, 1979) 22. Social factor : Kim et al (2002) concluded consumers product choice for a brand are affected by a social influence, and Linehan and Cadogan (2000) proposed that social factor also influence on consumers behavior, like family, peer group 23. Psychological factor: Armstrong & Kotler (2009) proposed that person’s buying decisions are influenced by motivation attitude and perception. 24. Personal value: Rokeach (1973) and Kahle (1983) proposed that a personal value is an enduring belief that a specific end-state of existence or specific mode of conduct is preferred over others. 25 Purchasing strategy segments: Blattberg, Gary, and Joshua (1981) conclude purchasing strategy segments based on three purchase areas: brand loyalty (single brand many brands), type of brand preferred (national, national and private label), and price sensitivity (regular price, deal price). 2.2 Related research 2.2.1 Kotler’s Consumer decision -making process In the process of buying decision, Kotler (2003) stated that the consumers always go through 5 steps: problem recognition, information search, and evaluation of alternative, purchase decision, post purchase evaluation. It showed that the process of buying has been formed for a long time and it also stretches for long time after the customers sell the products Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 10 Business Research Method Open University Malaysia HUTECH Campus Problem recogniti on style Information search style Instructor: Dr. Ut Tran Evaluation of alternative Purchase decision Post purchase evaluation Figure 1 Kotler’s Consumer decision -making process From this model, it implies that the buyers must go through 5 steps when they buy the products. Actually, it is not true in real life; the buyers can eliminate one steps or steps when buying the goods 2.2.2 Kotler's model of stimulus response of buyer behavior Figure 2 Kotler's model of stimulus response of buyer behavior The consumer’s personal characteristics will illustrate in order to stimulate the buying decision and help the company classifying the buyers due to the way of buying, and assist the marketing ways implementing better. The characteristics include: -Social: family and reference groups -Personal: age & lifecycle stage, economic circumstances and lifestyle -Psychological: Beliefs, perception, attitudes and motivation 2.2.3 Sproles and Kendall research Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 11 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran Sproles and Kendall concluded that the decision making is the basic consumer personality. The model is consisted of 8 elements: Perfectionism consciousness, brand consciousness, novelty and fashion consciousness, recreational and hedonistic consciousness, price and value consciousness, impulsiveness and carelessness, confused by over choice, habitual and brand loyal Perfectionism consciousness Brand consciousness Novelty and fashion consciousness Consumer decision making style Recreational and hedonistic consciousness Price and value consciousness Impulsiveness and carelessness Confused by over choice Habitual and brand loyal Figure 3 Sproles and Kendall‘s Consumer decision making style Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 12 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran 2.3 Related Model in an analysis 2.3.1 Model of Phuoc’s research proposal According to Bharadwaj (2004), there are 4 elements which effects on buying decision such as quality, delivery, price, service. In addition, Nguyen Kim Phuoc (2007) analyses the research of Lehman and O’Shaughnessy (1974). Kelly and Coaker (1976), Demssey (1978), he concluded with four criteria: delivery – quality – price, guarantee system, technology ability, implementation ability which are popular and analyses and validated in the past research. From that synthesis, Phuoc uses them into applying his research proposal on the topic: the elements affecting buying decision of A4 printing paper in the state enterprise, private enterprise, foreign company in Ho Chi Minh City. In her research, she does not pay much attention quality of A4 Printing Paper; the quality also plays an important factor which causes the effect of buying decision. Delivery Quality paper Price paper Buying decision of A4 printing paper Guarantee paper system Technology ability to make good paper Figure 4 Phuoc’s model of buying decision of A4 printing paper 2.3.2 Kwan’s model research proposal Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 13 Business Research Method Open University Malaysia HUTECH Campus Instructor: Dr. Ut Tran Besides, according to Kwan Chui Yan (2006) , she made the PhD thesis on the factor affecting young Chinese consumers’ decision making behaviors towards casual wear purchase to observe the decision making styles existing in young Chinese choices of casual wear and check the relationship between decision making styles and the others factors. In addition, she gives the model which comprises of 4 major elements including consumer individual characteristic (personal values, life style characteristics, selfconcept, and fashion involvement), environmental characteristics (social factor and culture factor, clothing choice criteria and consumer decision-making styles To me, the research of Kwan Chui Yan has limitations which he choose the area of research so large and diversifies, because the Hong Kong, Taiwan and China also share the same culture, but taste of life style are also different due to the different incomes in 3 areas. To my research, I would like to make the limitation; I only focus on the Ho Chi Minh City with average income customers. Individual characteristics: Environmental characteristics: Personal values Social factor Lifestyle characteristics Cultural factor Self-concept Fashion involvement Clothing choice criteria Consumer decision making styles Figure 5 Kwan’ model of Consumer decision making styles Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 14 Business Research Method Open University Malaysia HUTECH Campus Instructor: Dr. Ut Tran III. CONCEPTUAL FRAMEWORK The model is designed on the retail buying theory and former research at 2.3 about the elements affecting on buying decision and the distinguished elements of baby products such as milk bottle, we will process the model as follow Customer satisfaction The H1 Price H2 buying decision milk of bottle Suggested solutions “Dr. Brown” Advertising H3 H4 Brand awareness in New Generation Company Limited Dependent Variable H5 Personal factors Independent Variables Figure 6: The Theoretical Framework buying decision of milk bottle “Dr. Brown” in New Generation Company Limited The model is consisted of 5 basic elements: Customer satisfactions, Price, advertising, Brand awareness, and Personal factors. They are considered as independent variables. The core component and the major dependent variable of the framework is the last componentconsumer decision making. The purpose of the study (as mentioned above) is to find out the relationship between independent variables and dependent variable. Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 15 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran IV. HYPOTHESIS AND OPERATIONAL DEFINITION Operational definitions are instrumental in determining the exact process by which research data should be collected and processed. Because operational definitions outline how data will be measured, we can know the elements that affect the buying decision of milk bottle “Dr. Brown” in New Generation Company. In addition, we would like to give the definition of 6 variables. According to Wikipedia; all the definitions are given as following: Customer satisfaction, a term used in marketing, is a measurement of how products and services supplied by a company adapt and give to customer expectation. Price refers to the quantity of payment settled by a seller of goods or services, rather than the eventual payment amount Advertising or advertising is a form of communication for marketing and used to encourage, support, an audience such as viewers, readers or listeners; a specific group to continue some new action. Brand Awareness is the extent which a brand is known by potential customers, and is associated with a distinguished product. Personal factors help us understand the buying tendencies and spending actions of consumers. The following hypothesis was tested in this study as following: Hypothesis 1: There is a positive relationship between customer satisfaction and the buying decision of Dr.Brown milk bottle product Hypothesis 2: There is a positive relationship between Price and the buying decision of Dr.Brown milk bottle product Hypothesis 3: There is a positive relationship between Advertising and the buying decision of Dr.Brown milk bottle product Hypothesis 4: There is a positive relationship between Brand awareness and the buying decision of Dr.Brown milk bottle product Hypothesis 5: There is a positive relationship between Personal factors and the buying decision of Dr.Brown milk bottle product Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 16 Business Research Method Open University Malaysia HUTECH Campus V. Instructor: Dr. Ut Tran Methodology 1. Type of research choice There are three types of research design, describing their purpose very well. The Exploratory research is to discover ideas, information and insights. Descriptive research is usually to describe a population with respect to important variables. Causal research is used to establish cause – and - effect relationships between variables. Since we are dealing with the elements affecting on buying decision of milk bottle Dry Brown In New Generation Company Limited, the method used in this research should be Descriptive. In the process of making the questionnaire, we will use the Linker for 5 related variables such as customer satisfaction, price, advertising, brand awareness, personal factors. Those variables reflect the important observations in the process of buying milk bottle. Here is the diagram to be followed in the research. RESEARCH PROBLEMS Researching on the elements affect the buying decision of milk bottle “Dr. Brown” in New Generation Company LITERATURE REVIEW Using buying decision theory from Kotler, Sproles and Kendall research and Phuoc’ master thesis model and Kwan’ PhD thesis model QUALITATIVE APPROACH Making peer interview with 7 correspondents PRETEST OBSERVATION Adjusting the interview draft, the sample is 30 retail shops QUALITATIVE RESEARCH Making observations on retails shops in HCM City Coding and putting the data Refresh the data Analyzing ANOVA, Cronbach’Alpha, etc. Writing the research and making a deep interview in some case Figure 7: Research Process Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 17 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran 2. Research design a. Data collection (Secondary and Primary data collection). Primary data is information which the author gather by himself and secondary data is information gathered by others sources such as scientists or institutions (Andersen, 1998). In this research, the primary data consists of interviews with the retailers, and questionnaire in the retail shops and customers which I have chosen to investigate. In the secondary data, the author use to gather data and facts about the retailers and retailers’ customers and markets from different websites, retail stores. b. Data analysis: The questionnaire is processed by the pretest interview with 30 samples to distinguish and discover the mistakes and unclear elements so that we can adjust the mistakes and adjust them.  Qualitative approach: our qualitative approach is to identify the elements affecting on buying decision of DR Brown milk bottle in the New Generation Company. From the qualitative information, we can create the suitable questionnaire. The peer interview is rather good and suitable because we can use the face to face method to gather information and collect the data from the correspondents. The chosen people are seven such as sale person, shop owner, customers in the retail store. The highest age is 50, and the lowest age is 22, and the peer interview is processed from 02/07/2013 to 25/09/2013. All participants’ information will be recorded and classifies to determine the elements affecting on buying decision of milk bottle in New Generation LTD. This data and literature review will be synthesized in the preliminary interview. From the preliminary interview, we will make the official interview sheet  Quantity approach: this method permits us measure and analysis the data in the real number. Basing on the quantity research method and literature review, we can adjust the preliminary model and give the suitable model, questionnaire, and scales in the official research.  The statistical results will help determine the level of loyalty and accepting among Vietnamese consumers. Furthermore, the survey with retailers will help determine the Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 18 Open University Malaysia HUTECH Campus Business Research Method Instructor: Dr. Ut Tran type of measurement they use on determining customer’s loyalty. By reviewing the positive and negative points, it is hoped that the researcher can conclude the reasons for Dr.Brown milk bottle’s product declining and from that find possible solutions for improving the situation  Assumptions : - That the 100 milk bottle customers will represent the total number of customers. - The 10 stores responses will represent the total number of retailers. - Those 90% respondents will answer the questionnaires truthfully. - Those results will reveal the factors of why Dr.Brown milk bottle product buyers decrease their purchases and go to substitute or competition’s products  The questionnaire is designed: The questions related to the elements affecting buying decision of milk bottle from the customers and retailers shop owner include Customer satisfactions, Price, advertising, Brand awareness, and Personal factors. In addition, the deep information relating to the buyers, the product efficient, the price, the distribution, the buying capacity, etc. will be mentioned  Individual research: the customers and owners of shop retailers buying and selling Dr Brown milk bottle and others milk bottle in the area of HCM city  Sampling: The respondents of the study will consist of consumers of New Generations and its retailers/distributors. The reason for this is to determine that they have enough time experience to evaluate the milk bottle product, whether they have satisfied with it and, if not, what are the reasons. The retailers/distributors to be surveyed, on the other hand, should have knowledge about consumers’ complains and customer satisfaction of the product. They should be aware of what is usually being complained and being praised, as well as what makes consumers happy about the product or what are their substitute’s products. According to Hair & CTG (1998), we should use at least about 100 samples or 150 samples if we use SEM. Besides, Hoelter (1983) proposed that we also need 200 samples. Meanwhile, Hatcher (1994) suggested that the samples can be multiplied 5 times by the variables, or there must be 100 samples. From that reason, we will take 100 samples for our research. Students: Lý Vinh Kiên Huỳnh Phạm Ngoc Lâm Class : OUM MBA 0512-1C Page 19