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Contents

1. Chapter 1: Introduction .................................................................................................................3


1.1. Statement of the problem .......................................................................................................3
1.2. Significant to knowledge .........................................................................................................4
1.3. Research purposes and objectives .........................................................................................4
1.4. Scope of study ..........................................................................................................................5
1.5. Methodology ............................................................................................................................6
1.6. Research Structure..................................................................................................................6
2. Chapter 2: Literature Review And Current Situation ................................................................7
2.1. Definition of terms and concept .............................................................................................7
2.2. The Consumer Decision making process ..............................................................................7
2.2.1. Need recognition ..............................................................................................................8
2.2.2. Information Search .........................................................................................................9
2.2.3. Evaluation of Alternatives ..............................................................................................9
2.2.4. Buying decision ............................................................................................................. 10
2.2.5. Post purchase behavior ................................................................................................ 10
2.3 Factors influencing buying decision ................................................................................... 11
2.3.1 Perceived Quality (PV) ................................................................................................ 11
2.3.2 Perceived Value (PV) ................................................................................................... 11
2.3.3 Perceived Risk (PR) ..................................................................................................... 12
2.3.4 Country of origin (COO) ............................................................................................. 13
2.4 Models related to Buying decision ...................................................................................... 14
2.5 The model analyzing factors influencing buying decision of Made in Thailand product
in Hanoi ............................................................................................................................................. 15
2.5.1 Proposed Research Model ........................................................................................... 15
2.5.2 Hypothesis ..................................................................................................................... 16
2.6 Current Situation of Made in Thailand products consumption in Hanoi....................... 17
Chapter 3: Research Design and Methodology ................................................................................. 20
3.1 Research Process ........................................................................................................................ 20
3.2 Data Collection Method ............................................................................................................. 20
3.2.1 Primary Data ....................................................................................................................... 21
3.2.2 Secondary Data.................................................................................................................... 22
3.3. Questionnaire Design ................................................................................................................ 23
3.3.1 Measurement Scale ............................................................................................................. 23
3.3.2. Sampling Techniques ......................................................................................................... 27
3.3.3 Sample Size .......................................................................................................................... 27
3.4 Research Instrument.................................................................................................................. 28
3.4.1 Data Collection Instruments .............................................................................................. 28
3.4.2 Data analysis instruments................................................................................................... 29
3.5 Data processing method............................................................................................................. 30
3.5.1 Descriptive analysis ............................................................................................................. 30
3.5.2 Reliability Analysis.............................................................................................................. 30
3.5.3 Exploratory Factor Analysis (EFA)................................................................................... 30
3.5.4 Ordinary least squares (OLS) regression.......................................................................... 31
Chapter 4: Analysis and finding ......................................................................................................... 34
4.1 Data Descriptive Analysis .......................................................................................................... 34
4.2 The reliability test ...................................................................................................................... 39
4.3. OLS Regression ......................................................................................................................... 43
4.3.1 Correlation analysis ............................................................................................................ 43
4.3.2 OLS regression. ................................................................................................................... 45
4.4. ANOVA analysis ....................................................................................................................... 47
4.5 Discussion.................................................................................................................................... 50
1. Chapter 1: Introduction
1.1. Statement of the problem

Consumer purchasing decisions are influenced by many factors, not only the personal
factors of each consumer, but also the influence of many external factors (from the
environment, social, enterprises). In the age of globalization in which challenges and
competition are increasingly harsh, it is vital that businesses adopt the most appropriate
development strategies to engage consumers in their products or services. In Vietnam,
in recent year, capital from regional neighbors (for example, Thailand) into Vietnam is
increasing, in form of Foreign Direct Investment and Mergers and Acquisition. As
Thailand companies gradually expand their presence in the country, Vietnamese
products are facing fierce competition from Thailand imports in the local market

According to the latest statistics released by the Ministry of Industry and Trade
(2016), the volume of imported products originating from Thailand (in terms of
quantity), are ranked second, only behind China. Currently, garments and household
appliance products supplied by Thailand have been presented in nearly 9,000 traditional
markets across the country. Thailand electronic and electrical products currently account
for 70 per cent of the market share. More importantly, despite Vietnam's strength in fruit
production, nowadays, fruits from Thailand now account for about 40% market share.
According to the data from the General Statistics Office, in the first 6 months of 2016,
Vietnam ran trade deficit of 2.13 billion USD from Thailand and in 2015 Vietnam also
recorded trade deficit from this market at $ 5.11 billion. With the general situation when
demand for Thailand goods is increasing sharply, it is estimated that the quantity of
goods imported from Thailand is still increasing.

Although Vietnam had officially implemented its commitments to regional and


international integration, the fact that large supermarkets (such as Metro, BigC) have
been acquired by the Thailand retail giants, together with a dramatically increase in the
amount trade deficit are posing a considerable threat for the retail market and Vietnamese
businesses. Many Thailand products such as shampoos, shower gel, cosmetics, fashion,
electronics, etc. are being trusted by many consumers. According to the survey, Thailand
goods are present in most distribution systems, from supermarkets (Parkson, Sapomart,
Fivimart ...), commercial centers, to convenience stores like Vinmart, etc.many small
and big markets. Moreover, there are also shops specializing in selling Thailand goods
in Hanoi with various products and designs.

In the face of the pressure to boycott Chinese goods, consumers are more and more
careful with product selection. They have tendencies to choose the products which are
affordable, high quality ... and especially imported goods. Thailand goods targeted the
consumer mentality and quickly gained the trust of Vietnamese consumers. The
penetration of Thailand goods is putting Vietnamese businesses ahead of the significant
challenges. Consequently, consumer behavior research is especially important for every
business if it wants to survive and grow.

Therefore, the implementation of the project "Factors affecting consumers' buying


decision of Thailand products in Ha Noi" is to understand and measure the impact of the
factors affecting purchasing decisions in Ha Noi. Thailand consumer goods are an urgent
issue. From there we will have a more general and realistic view of the major factors
affecting the current status of consumers who tend to use Thailand goods, its impact on
businesses Vietnam, from which conclusions, insights and implications for domestic
enterprises in the process of integration and competition.

1.2. Significant to knowledge

The research results will give an overview of factors influencing the consumer
buying decision of Thailand products in Ha Noi. The study will also test the difference
in the level of influence of the factors based on gender characteristics. It is expected to
help managers better understand the buying decision of consumers toward Thailand
product, recognizing the most noticeable factors affecting consumer purchasing
decisions; help local firms to segment their markets, plan strategies, propose solutions to
attract and meet the demands of consumers.

1.3. Research purposes and objectives


Overall objective: To study the factors influencing consumers' decision to
purchase goods in Hanoi

Specific objectives are as follows:

(1) Determining the factors influencing the decision to purchase made in Thailand in
Hanoi.
(2) Measuring the impact of factors affecting the buying decision of made in
Thailand product in Hanoi
(3) Propose solutions to Vietnamese enterprises in order to attract consumers to
select domestic products and recommendations to support Vietnamese
enterprises in the process of competition.

In order to achieve these goals, this topic is intended to address the following
research questions:

(1) What are the factors that affect the decision to buy made in Thailand
products in Hanoi?
(2) How the level of influence of factors affecting the buying decision of is
made in Thailand in Hanoi?
(3) What are the solutions and policies for Vietnamese enterprises to attract
consumers to choose products of domestic enterprises?
1.4. Scope of study

Subjects of the study: Factors influencing the buying decision of made in Thailand
products in Hanoi.

Subject of investigation: Consumers aged 18 and older who have already bought
Thailand products

Place: in order to carry out the research conveniently as well as highly practical,
the topic of research focus in Hanoi, which has a fast economic growth rate and also has
extensive and diversified penetration of Thailand's clothing; where consumers are
sensitive to the latest consumption trends.
Time: 1 months, from

1.5. Methodology

The thesis has used the combination of qualitative and quantitative method through
preliminary research and formal research. Group discussion and expert interviews were
used to develop questionnaires. Then surveyed subjects are consumers aged 18 and older
who have bought Thailand products and the data was processed by quantitative method
with sample n = . Use SPSS 22.0 and AMOS software to test the scale and test the
suitability of market data for the research model and hypotheses.

Combining two research methods is necessary to help the author make conclusions
that are accurate and stick to reality.

1.6. Research Structure

The main contents of this thesis are structured into 3 main parts

Chapter 1: Introduction

Chapter 2: Theoretical background and Current situation

Chapter 3: Research design and methodology

Chapter 4: Research results and discussion

Chapter 5: Conclusion and Implications


2. Chapter 2: Literature Review And Current Situation
2.1. Definition of terms and concept

Thailand products: In this study, made in Thailand products are all commodity
products of various categories originating from Thailand. The perceptible sign for
consumers when buying a product is the packaging printed the place of origin. (For
example: Product of Thailand, Made in Thailand).

"Origin of goods" means a country or a territory where such goods has been
wholly obtained or where the last substantial processing operation has been carried out
when more than one country and/or territory are concerned in the production of such
goods. (According to Point 1, Article 3, Decree 19/2006 / ND-CP dated 20 February
2006 on detailed regulations on commercial law on goods origin).

Buying decision: According to Peter and Olson (2004), the key process in
consumers decision making is the integration process by which knowledge is combining
to evaluate two or more alternative behavior and select one. Most of the large company
research consumer buying decision in increasing detail to answer question about what
consumer buy, where they buy, how and how much they buy, when they buy and why
they buy (Kotler et al., 2005).

2.2. The Consumer Decision making process

According to Charles W. Lamb, Joseph F. Hair and Carl McDaniel (2000),


consumer behavior describes how consumers make buying decisions and how they use
and dispose of the purchased goods or services. The study of consumer behavior also
includes an analysis of factors that influence buying decisions and product use

Before seeking external sources of information regarding a given consumption


related need, the consumer usually revives his or her memory (the psychological field).
Past experience acts as an internal source for the consumer to reach a decision. Many
consumer decisions are based on a combination of past experience, marketing and non -
commercial information (Schiffman&Kanuk, 2004). According to Jeff Bray (2008),
customer buying behavior can be modeled on the EKB model (Engel, Blackwell and
Minard), suggesting that the purchasing decision process is a continuous process from
the pre-purchase to post-purchase phase.

Evaluation
Need Information Purchase Postpurchas
of
recognition Search Decision e Behavior
Alternatives

Figure 1: Buyer decision process


(Source: Philip Kotler)
As shown in Figure 2.1, buyer decision process consists of five stages; namely
as: need recognition, information search, evaluation of alternatives buying decision, and
post purchase behavior. Apparently, the buying process starts long before actual
purchase and continues long after. Marketers need to focus on the entire buying process
rather than on just the buying decision. The figure implies that consumers encounter all
five stages with every purchase. However, in reality, consumers often skip or reverse
some of these stages (Armstrong & Kotler, 2003).

2.2.1. Need recognition


This is the first stage of the buyer decision process where consumers realize that
they are in desperate need and desire. A need can be triggered by internal stimuli as well
as external stimuli (Armstrong & Kotler, 2003). Whenever a need arises, individuals
always need to satisfy it. Thus, it is the task of marketing managers to determine the
needs and wants of a particular product, what to do to satisfy the needs and wants of
consumers, how a new product could be developed. In order to do so, marketing
managers should understand what types of needs consumers may have. A well-known
classification of needs was developed many years ago by Abraham Maslow, including
physical needs, safety needs, belonging needs, esteem needs, and self-actualization
needs It is likely that consumer loyalty will be greater if they satisfy lower-level needs
(Peter & Donnelly, 2001).
2.2.2. Information Search
After consumers recognize the need and desire to get a product, information
related to it will be collected. Information search includes listing the "list of options"
(product, brand, company, etc.) and identifying the characteristics of each option for
future analysis.

The information which act as a basis for consumers to list the options can be
collected from inside or outside. The inside information is derived from consumer
shopping experience such as contact, survey and use of the product. The outside
information is obtained from commercial sources such as advertising, offering,
packaging, display. The information from friends, the press, etc. is also a great reference
source for consumers to form a "select list". Provided that the consumers drive is strong
enough and satisfying product is near at hand, the consumer is likely to buy it then. If
not, the consumer may store the need in memory or undertake an information search
related to the need (Armstrong & Kotler, 2003). Information provided by marketers is
invariably favorable to the product and/or brand. Consumers are especially likely to note
the negative information and to avoid products or brands that receive negative evaluation
(Shiffman & Kanuk, 2004).

2.2.3. Evaluation of Alternatives

Evaluate or judge competing alternatives in terms of salient beliefs about relevant


consequences and combine this knowledge to make a choice (Peter & Olson, 1999). The
marketer needs to know about alternative evaluation. That is how the consumers process
information lead to brand choices. Evaluation process is complicated and individual
consumer in different buying situation will have different evaluation of purchase
alternatives. However, consumer behaviors are all based on the basis of rationality:
product is viewed as a set of attributes which can provide a level of satisfaction.
Consumers will choose the product that they think provides the highest level of
satisfaction for coin they spend. Selected products are products with outstanding
characteristics according to the consumer assessment. (Armstrong & Kotler, 2003)
2.2.4. Buying decision
On the condition that no other factors intervene after the consumer has decided on
the brand that is intended for purchase, the actual purchase is a common result of search
and evaluation. After selecting the product that best suits their expectations, consumers
will make the decision to buy. At this stage, there are three important factors that can
influence a shopping action: the place of purchase, the form of payment, and the
availability of the selected product.

Consumers choose where to buy based on influencing factors such as


convenience, reputation,.of the store.
Form of payment also affects the buying decision. For example, low-income
people prefer their payment method.
Availability of the item demonstrates the readiness of the consumer. This feature
is highly dependent on storage and transport capabilities.

In this stage we need to distinguish between buying intention and buying decision.
Buying intentions are often influenced by other people's views or unexpected
circumstances. Rather than buying, the consumer may make a decision to modify,
postpone, or avoid purchase based on an inhibitor to purchase or perceived risk. The
perceived risk literature emphasizes that consumers generally try to reduce risk in their
decision making. This can be done by either reducing the possible negative consequences
or by reducing the uncertainty (Peter & Donnelly, 2001)

2.2.5. Post purchase behavior

The marketers job does not end when the product is bought. After purchasing,
the consumer will be satisfied or dissatisfied with the product and will engage in post
purchase behavior of interest to the marketer. If the features and uses of the product best
meet customers expectations, they will totally satisfied and it may result in repetitive
purchases and further introduction to others about the product This suggests that sellers
should make product claims that faithfully represent the products performance levels to
boost consumer satisfaction with the product. Thus, consumers feel at least some post
purchase dissonance for every purchase (Armstrong & Kotler, 2003).

2.3 Factors influencing buying decision


2.3.1 Perceived Quality (PV)

Perceived Quality (PQ): Perceived quality is a decisive factor for consumer


decision making; consequently, consumers will compare the quality of alternatives with
regard to price within a category. According to Davis et al. (2003), perceived quality is
directly related to the reputation of the firm that manufactures the product. However,
National Quality Research Center or NQRC (1995) defined perceived quality as the
degree to which a product or service provides key customer requirements
(customization) and how reliably these requirements are delivered (reliability). Whereas
Aaker (1991) and Zeithaml (1988a) said that perceived quality is not the actual quality
of the brands or products, rather, it is the consumers judgment about an entitys or a
services overall excellence or superiority.

Consumers often judge the quality of a product or service on the basis of a variety
of informational cues that they associate with the product. Some of these cues are
intrinsic to the products, whereas others are extrinsic. As defined by Zeithaml (1988),
cues that are intrinsic concern physical characteristics of the products itself, such as
products performance, features, reliability, conformance, durability, serviceability and
aesthetics. On the other hand, extrinsic attributes are the cues that are external to the
products itself, such as price, brand name, brand image, company reputation,
manufacturers image, retail store image and the country of origin. Perceived quality has
direct impact on customer buying decision and brand loyalty, especially during the time
customers have less or no information of the products that they are going to purchase
(Aaker, 1991; Armstrong and Kotler, 2003)

2.3.2 Perceived Value (PV)

Perceived Value (PV): The term value used in this study refers to a judgment
of preference by consumers. According to Cronin et al. (2000) and Zeithaml (1988b),
perceived value is the customers overall assessment of the utility of a product based on
perceptions of what is received and what is given. Sweeney and Soutar (2001) and
Woodruff (1997) define customer value as a customer-perceived preference for and
evaluation of, product attributes, attribute performance and consequences in terms of the
customers goals and purposes. Stonewall (1992) defined value as function of product
features, quality issues, delivery, service and price. He also added that value is always
determined by consumer, in his or her own terms, timing and testaments and that value
is a perception, a view, or understanding made up of measurable components. Perceived
value is a comprehensive form of customer evaluation of service. According to Rust and
Oliver (1994), value can be conceptualized as the overall evaluation of the service
consumption experience and can be encounter specific or a more enduring global
evaluation. Value perception may also differ according to the usage situation (Anckar
and DIncau, 2002). Value is a function of the overall quality and price of the firms
products and services compared to the competition (Mokhtar et al., 2005).

2.3.3 Perceived Risk (PR)

Perceived Risk (PR): Perceived risk is defined as the uncertainty that consumers
face when they cannot foresee the consequences of their purchased decision. This
definition highlights two relevant dimension of perceived risk: uncertainty and
consequences. When a consumer make a buying decision, risk implies great
consequences of making a mistake and degree of inconvenience of making a mistake,
perceived risk will typically influence early stage of consumer buying process. Besides
that, Dowling and Staelin (1994) define risk as a consumer perception of uncertainty and
adverse consequences of engaging in an activity. The notion of perceived risk as a key
antecedent to consumer behavior has been establish in the past and may be factor
influencing the purchased decision to buy a car. In others words, company will put more
effort on measuring the inherent risk associated with the buying decision-making
process.
According to Mitchell (1992), perceived risk influences the five stages of the
consumer decision making process, which will influence customer buying decision
towards made in Thailand products. Risk may manifest itself in a variety of way such as
fear that a product may not possess desirable attributes, uncertainty regarding product
performance or a sense that the purchase of a particular brand may invite social
disapproval. Although risk can be include many types (i.e., performance, financial,
social, time and safety), Dunn et al. (1986) found that the first two type performance and
financial risk were the most closely associated with the buying decision.

According to Durovnik (2006), consumers are less interest on purchasing the


product that is considers being risky endeavors. He also says that consumer will try to
reduce the risk of using more time to survey and paying something. For instance,
consumer would find out about the quality of a product from those who have firsthand
experience.

2.3.4 Country of origin (COO)

Country of origin effect is concern with the customers perceptions that how they
perceives products from certain country and COO is the overall perception consumers
form of products from a particular country, based on their prior perceptions of the
countrys production and marketing strengths and weaknesses (Roth &Romeo, 1992).
Based on Ahmed et al. (2002), consumer infers attributes to the product based on country
stereotype and experiences with a product from the country. Consumer may perceive
less risk in purchasing product from the countries with a good image .According to Kinra
(2006), country of origin is an important differentiating factor in consumer attitudes to
foreign and local brand names. Her study held that country of origin credibility of foreign
brands was a significant factor influencing consumer attitudes and preferences as it was
correlated highly with quality and status and esteem. The study by Opoku and Akorli
(2009) suggested that country of origin is more important than price and other product
attributes. According to their study, the Ghanaian consumer holds the 'Made in Ghana
label in low regard relative to foreign labels. Superior quality and consumer taste were
the two most important reasons for the Ghanaian consumers preference for foreign
apparel products. Cordell (1992) found that U.S. consumers perceive products originated
from industrialized countries such as England and Canada of higher quality than those
from less developed countries such as Indonesia and Bolivia. Another study conducted
by Schooler (1965) in Guatemala revealed that products made in less developed
countries were not evaluated as quality products. Consumers were biased against
products from a less developed country. Cyril et. al. (2012) explored the role that
country-of-origin cue plays on Malaysian consumers product evaluation as well as
purchase intention of a low involvement product i.e. toothpaste. Findings revealed that
Malaysians generally preferred products from developed nations as opposed to those
made locally or imported from less developed countries. In general, for consumers in
less developed countries, country of origin or attitude toward a country plays a
significant role in influencing their purchase behavior (Lin and Sternquist, 1994). One
explanation cited is that consumers in less developed countries do not have enough
information and experience with purchasing foreign brands (Zhang, 1996).

2.4 Models related to Buying decision

Elif and Handan (2010) had researched on consumer buying decisions for Turkish
products with three product lines (apparel, chocolate and personal care products). The
study looked at a survey of 600 consumers aged 15 to 60 at three major shopping centers
in Istanbul, Turkey. The research results show that there are 5 factors that affect the
purchase of foreign products by consumers in Istanbul: (1) perceived quality, (2)
perceived value, (3) Perceived brand Prestige and (4) The influence of others (Figure
2.6). In that study, separate hypotheses about the influence of these factors on the
different product lines were examined. For the clothing line, the "Perceived brand
Prestige factor of the product has the strongest impact on the consumer's "decision to
buy" foreign products. Meanwhile, for the chocolate and personal care products, "quality
feel" has the strongest impact on "buying intentions."
Perceived Quality

Perceived Value
Buying decision of
foreign product
Perceived brand prestige

Influence of others

Figure 2: Model analyzing factors influencing buying decision of foreign


products in Istanbul, Turkey

(Source:)

In Viet Nam, Le Chi Hai has done research on factors affecting Vietnamese
peoples decision on Chinese goods purchase by two explanatory variables; the country
of origin and the products properties and via two products; mobile phones and T.V. sets
made in China. The research show that country of origin and the products properties has
significant impact on mobile phones purchasing decision, while TV buying decision is
barely not impacted by country of origin but products properties

2.5 The model analyzing factors influencing buying decision of Made in


Thailand product in Hanoi
2.5.1 Proposed Research Model

Proposed framework of the research intend to examine the relationship of perceived


quality, perceived value and perceived risk towards the buying decision of made in
Thailand products. The perceived quality, perceived value, perceived risk and country
of origin as independent variables while the buying decision is the dependent variable in
this model. The greater the perceived quality, perceived value and perceived risk will
directly have significant positive effect towards the buying decision. The relation of the
independent variable and dependent variable are linked with four hypotheses
respectively.
Perceived Quality

Perceived Value
Buying decision
Perceived Risk

Country of Origin

Figure 3 Proposed Model


(Source: Authors synthesis)
2.5.2 Hypothesis

Recently, Richardson et al. (1996) cues usage in product evaluation, perceived


quality, perceived risk and perceived value as factors influencing buying decision. Then,
studies showed that manufacturers as nowadays are successful in convincing consumers
that absolute levels of real quality differ or that variation in quality presents consumers
with risk. (Hoch and Banerji, 1993; Richardson et al., 1996). Therefore, this study intent
to know whether consumers perceived quality will affect their buying decision towards
made in Thailand products Thus, the first hypothesis would be:

H1 - There is a significant association between perceived value and purchase


decision of made in Thailand products.

As suggested by Groth (1995), perceived value is important factor in purchase or


consumption decisions. According to Heskett et al. (1997), customers buying decision is
affected by the value offered by product or service. Customers are interested to know
what kind of benefit or values they can obtain from the products; buying decision is
affected by the perceived value (Leung and Li, 1998). Based on the statement by
previous researchers, this study would like to know whether perceived value would have
positive effect towards customer buying decision. Thus, the second hypothesis would
be:
H2 - There is a significant association between perceived quality and purchase
decision of made in Thailand products.

Many studies attempted to measure risk perception in a broader marketing context


where the risky or uncertain outcome in a buying decision is that a product does not
perform according to perception. Such research focuses on outcomes that are more
disappointing than they are threatening to consumer welfare; more to do with a product
underperforming than being unsafe. The consumer may be unhappy but is not necessarily
exposed to a hazard (Ruth and Joe, 2001). Based on the statement by previous
researchers, this study would like to investigate whether perceived risk would have
negative effect towards customer buying decision. Thus, the third hypothesis would be:

H3 - There is a significant association between perceived risk and purchase


decision of made in Thailand products.

The information of the country that where product is made has been an important
factor in product purchasing decision of customers. Studies have shown that COO effects
the customers in number of ways and can influence their purchasing intentions Bilkey
& Nes (1982) study of COO effects on product evaluations and reported that COO is an
important factor in purchasing decision. In this study, the effect of COO on three
different products will be checked

H4 - There is a significant association between country of origin and purchase


decision of made in Thailand products.

2.6 Current Situation of Made in Thailand products consumption in Hanoi

The continuous development of the economy has significant impact on the trend
of consumption. Consumers are increasingly interested in choosing the best products to
satisfy their needs and expectations. Of which, in Hanoi in particular, the tendency to
choose made in Thailand products are popular consumers; currently, made in Thailand
products have been present in every corner of the country, from grocery stores to
markets, supermarkets, even appeared in places where Vietnamese goods have not been
available. Specifically, clothing and household articles made in Thailand are available
in nearly 9,000 markets nationwide and dominate those imported from other countries.
At wholesale markets, particularly in wholesale distribution such as Dong Xuan (Hanoi),
many small traders have shifted from Chinese products to Thailand ones. While Chinese
apparels seem to be more eye-catching than Thailand, they are cheaper than Thailand's
10-20%, but consumers now prefer Thailand goods because of less imitation, better
quality and durability. . In addition, Thailand fruits are imported into Vietnam in
increasing numbers in stalls, Thailand fruits account for 40%. According to the latest
statistics of the Center for Information and Statistics (under the Ministry of Agriculture
and Rural Development), the total import value of fruits in the first three months of 2017
is estimated at 164 million USD, of which Thailand fruits account for 50%, not to
mention the large amount of Thailand fruits are entering Vietnam day by day by
unofficial trades. For cosmetics, household goods and foodstuffs originating in Thailand,
several years ago, they were only present in border markets, however now they have
penetrated deeply into the Vietnamese market. In modern distribution channels, Thailand
goods account for a high proportion; because supermarkets see the increase in the trend
of Thailand products consumption, they shift to importing many kinds of Thailand goods
with various brands, and prices are virtually the same as Vietnamese goods. Meanwhile,
in the electronics and refrigeration market, Thailand products are occupying more than
70% of the market share because a number of well-known brands in the world such as
Sharp, Philips, Panasonic, Sanyo ... all have factories in Thailand. Other technical items
such as motorcycles, equipment, car accessoriesare appreciated and choose by many
consumers.

According to the report of Hanoi Statistics. (2015), total import turnover of


enterprises in the city in the first 6 months reached 15,878.4 million, up 12.1%. Of which,
imports from the Thailand market accounted for 6.5%, up 18.2%. At present, Thailand
goods enter Vietnam by many different ways such as: unofficial, unregistered, smuggled,
portable. It is noteworthy that although Thailand goods are developing well in Vietnam,
the government is continuing to implement a strategy to support businesses moving into
Vietnam.

With outstanding features and branded foreign goods, Thailand goods easily gain
the trust of Vietnamese consumers. In the situation when domestic goods are lack of
quality improvement, Chinese goods lose credibility, the penetration of Thailand goods
is inevitable result, which puts Vietnamese enterprises under threat of losing a large share
of market share. While Thailand goods are of high quality and stable, the weakest point
of Vietnamese goods is the unstable quality which leads to loss of consumer confidence.
Chapter 3: Research Design and Methodology
3.1 Research Process
There are two ways to approach a research, namely that quantitative (deductive)
approach and qualitative (inductive approach).

The process is conducted based on research process model of Creswell


educational research panning conducting and evaluating quantitative and qualitative
research 4th edition, 2012 with a few edit to fit this study.

Identyfying a Research Initial


Reviewing the
Research Method Measurement
Literature
Problem Selection Scales

Final
Final Initial
Pilot Test Measurement
Questionnaire questionnaire
Scales

Analyzing and Reporting and


Sample Design
Collecting Data Interpreting Evaluating the
Selection
Data Research

3.2 Data Collection Method


Data collection is a phase that plays an important role in academic studies
(Saunders, et al. 2009). In order to accomplish the research objectives and to address the
research question this dissertation draws on both primary and secondary data collection
methods. In the primary data analysis, qualitative and quantitative methods applied.
According to Guba and Lincoln (Guba & Lincoln, 1994), qualitative and quantitative are
appropriate for any research model. Quantitative data can be raw, they have very little
meaning before being processed and analyzed. Therefore, a process is needed to turn this
data into information and be useful (Saunder et al, 2009). Secondary dara also provide a
useful source to answer the research question (Saunders et al, 2009; 256). Furthermore,
secondary data allows understand the topic area while informing the primary research
design.

3.2.1 Primary Data


Primary data is data collected directly from the research subject under the control
and supervision of investigator. In this research, the subject is the consumer, in
particular, the consumer who have bought Thailand products in Hanoi. Primary data is
also called raw data, which is normally collected the first time and not processed. So, the
primary data helps the researcher go through the research object, find out the motives of
the customer, detect the relationships between research objects. Primary data is valid and
trustworthy, it also reveals problems for which timely remedial measures may be
instituted. However, primary data collecting is time consuming and costly to collect. The
following are some of the primary collection methods used by the topic

3.2.1.1 Focus group


A focus group is a group interview of approximately six to twelve people who
share similar characteristics or common interests. A facilitator guides the group based
on a predetermined set of topics. The facilitator creates an environment that encourages
participants to share their perceptions and points of view. Focus groups are useful to get
more in-depth information on perception, insights, experiences or beliefs from key
stakeholders. Group focus is one of the most important qualitative research methods
being widely used in marketing research.

This study includes focus group of 10 consumers who is currently living in Hanoi
and have already bought made in Thailand products. Data were collected on the
consumers perceptions about the reason of buying made in Thailand products, the factor
differentiate Thailand products with domestic ones and the factors impact their buying
decision of Thailand products The focus group helps researchers determine their scales
to conduct quantitative surveys and measure scales as well as study models through multi
regression analysis. Results of this group discussion also aim to test hypotheses
appropriation on the impact of perceived quality, perceived value, perceived risk and
country of origin on the customer purchase decision of made in Thailand products. The
following is the group interview process that the researcher conducted:

3.2.1.2 Survey data collection


A survey is a research method for collecting information from a selected group of
people using standardized questionnaires or interviews. While many people think of a
questionnaire as the survey, the questionnaire is just one part of the survey process.
Surveys also require selecting populations for inclusion, pre-testing instruments,
determining delivery methods, ensuring validity, and analyzing results. In this study, the
survey was conducted by designing an online questionnaire, followed by a combination
of face-to-face and internet interviews (Google Doc, Facebook, Email, LinkedIn and
Google Plus).

To ensure the reliability of the survey data, the study will exclude all survey
responses which do not match the requirement: Respondents do not live in Hanoi,
respondents never buy made in Thailand products, answer sheets lack of answer or have
the same choice for all questions. Before carrying out data analysis, the data should be
re-filtered, duplicate answer will be eliminated. The completed answered sheet will all
question answered and not subject to removal will be use as a basis for processing data
and analyzing survey results.

3.2.2 Secondary Data


Secondary resource provides initial insight into the research problem and include
both raw data and published summaries, sources such as articles, books and journals. In
the context of this essay, the secondary information required is the result of the research
of related projects on the factors influencing purchase decision of imported products,
statistics on habits, characteristics of buying behavior, and shopping behavior of made
in Thailand products. This information was collected in order to identify factors
influencing the purchase of made in Thailand products of consumer in Hanoi, from
which the research model and research hypothesis were established.
Data sources that contain information to be collected include related research
works; magazines include Cantho University Scientific Journal, International Journal of
Business and Administration, European Journal of Business and Management and
Internet. Secondary data is used between 2013 and 2016.

Secondary data was collected by table-based information gathering, mainly


conducted with the Google search engine and searched by book codes and magazines in
the Hanoi Foreign Trade University library.

3.3. Questionnaire Design


3.3.1 Measurement Scale
The scale in this study is based on fundamental theory and scales widely used by
many authors in the world. Bases on the results of in-depth interview techniques
(Appendix 1a, page ii and appendix 1c, page ix), they are adjusted to fit with consumers
in Vietnamese market There are five research concepts used in this study: (1) Perceived
quality (PQ), (2) Perceived value (PV) (3) Perceived Risk (PV), (4) Country of origin
(COO), (5) Decide on purchase of Thailand (PD). Each factor has 3 items to evaluate
following Likerts Scale with the scale from 1 to 5 represent for.
Table 1 Measurement scale following Likert's Scale (1932)

1 2 3 4 5

Strongly Neither agree


Disagree Agree Strongly Agree
Disagree nor disagree

The combined results of scales after qualitative research are presented in Table
3.1.

3.3.1.1 Perceived Quality


Consumers rely on different quality factors to evaluate quality of their foreign
products. The consumer perception about quality of a product or brand is considered to
be higher when the consumer perceives the value and usefulness it brings. Kirmani and
Baumgartner (2000) argue that consumers base more on the internal standards of the
product to evaluate the quality of a product or brand. When consumers are experiencing
high perceptions of product quality, they will have aggressive behavioral intentions to
purchase those products and brands and share experiences with others. . The Perceived
Quality (PQ) Scale consists of three variables, denoted by PQ1 through PQ3 (Table 3.1)

3.3.1.2. Perceived Value (PV)


According to the definition of Cronin et al. (2000) and Zeithmal (1998), perceived
value is a general assessment of the consumer for the utility based on their perception of
what they get and what is offered from a particular product. According to research by
Dodds and Monroe (1985), perceived value is a very important factor in the process of
buying and making a purchase decision. Consumers will buy a product they feel their
value is higher. Value perception is an important first factor affecting consumer buying
intent as it is the element of the transaction between the utility and the acquisition of the
utility (Thaler, 1985). After adjustment through qualitative research, the perceived value
(PV) scale consists of three observed variables, denoted by PV1 to PV3 (Table 3.1).

3.3.1.3 Perceived Risk (PV)


Perceived Risk is sacrificed value of customer when buying products as result
from selection until interpretation from alternative product. Perception of risk is seen by
consumers on negative values, related made in Thailand products. More precisely is the
consumer views on the weakness of environmentally friendly products (Yeung et al,
2010:306). Several dimensions to measurement of perception of risk, followings
financial risk (price, cost, funding), functional risk (needs, functions, beliefs), and
psychosocial risk (stress, dislike, refuse). After adjustment through qualitative research,
the perceived risk (PV) scale consists of three observed variables, denoted by PV1 to
PV3 (Table 3.1).

3.3.1.4 Country of Origin (COO)


Consumers often use the source country of a product or brand as an extrinsic
information cue when making purchasing decision. Consumers make decisions about the
quality of products based on a systematic process of acquisition, evaluation and
integration of product information or cues. Maheswaran (1994) argued that COO is used
in product evaluation as a stereotyping process that allows consumers to predict the
likelihood of a product manufactured in a certain country having certain features;
generally, consumers will evaluate a product more favorably if it has a favorable COO.
This process affects product decision in three ways. First, COO acts as a signal;
consumers have prior perceptions of the general quality of products from particular
country, and they use these perceptions to infer the ratings of other product cues (for
example: quality, reliability) and thus the overall product evaluation. (Hong and Wyer,
1989). Second, COO can be an independent cue, used along with other cues for products
evaluation. (Hong and Wyer, 1989). Third, COO can be used as a heuristic to simplify
the product evaluation process, even though other available product cues may be more
useful. This often occurs when there is too much product information, or when
consumers are unfamiliar with the products. After adjustment through qualitative
research, the country of origin (COO) scale consists of three observed variables, denoted
by COO1 to COO3 (Table 3.1).

3.3.1.5 Purchasing Decision (PD)


Consumer behavior depends on the product or service that they purchase, so
different factors will have different effects on consumers depending on the product or
service (Hasslinger et al., 2007). According to Kotler, the purchase decision is the result
of an evaluation of the choice based on solving the problem of customer demand and
solvency, and balancing the total benefit or value of the customer received. From that
product or service to the total cost they have to pay for that product and service and
against other suppliers. The scale is based on studies by Sahar Karimi (2013), Ajzen and
Fishbein (1975), Le Thi Thu Trang and Tran Nguyen Toan Trung (2014). After adjusting
based on qualitative research, the Thailand products purchasing decision scale consists
of three variables, symbolized PD1 to PD3.

PQ1 In my opinion, made in Thailand products are reliable.


Quality (PQ)
Perceived

PQ2 I believe that made in Thailand products are being of higher quality
than local products.
PQ3 I realize that made in Thailand products are highly durable.

Perceived Value PV1 I suppose that made in Thailand product satisfy the value expected by
(PV) consumers.

PV2 I feel comfortable when using made in Thailand products.

PV3 I realize that the value of made in Thailand products is worth the cost.

COO1 If I have to choose between made in Thailand product and domestic


one, I will choose made in Thailand product.
Country Of Origin

COO2 I can accurately grasp the characteristics of made in Thailand products


(COO)

with information on the packaging

COO3 I often find the origin of the product and assume that it is a good
product if it comes from Thailand

PR1 I find that made in Thailand products are usually counterfeited,


Perceived Risk

imitation or of poor quality


(PR)

PR2 My family will not like made in Thailand products.

PR3 Made in Thailand products may be a threat to life and health

PD1 I will buy made in Thailand products within the next 30 days.
Purchase Decision

PD2 I am very pleased to introduce to made in Thailand products to


(PD)

everyone.

PD3 When I have to buy something, I will choose made in Thailand


products.

PILOT TEST

This research adds pilot test and launched on a small scale of target respondent
with 10 people. They worked independent with the guidance of researcher. The purpose
of this satge is to ensure that there are no mistakes of grammar, spelling errors and have
clear logic of questions. Moreover, this stage can help team members gathering
experience for the official survey.

After gather advice of 15 respondents, the questions have been fixed. There are
no complaints of logic, grammar, spelling errors. Then the official questionnaires are
prepared and presented in appendix.

3.3.2. Sampling Techniques


According to Saunders et al (2003), sampling techniques offer a list of method
used to help research reduce the overload collected information by gather date from sub-
group rather than all possible case

Hari (2010) cited that there are two categories in sampling methods including
non-probability and probability. Non-probability samples are chosen from the total
population that is not informed and it is difficult for answering research questions or
solving objectives, which require researchers to conjecture numerical data about
characteristics of the population. Within the scope of this research, there is not an
exhaustive population list available or customer database. Therefore, non-probability
sampling method is selected and applied in this research.

In this study, non-probability with convenience sampling technique is used to


collect information. The convenience sampling estimates cannot be calculated so this
method could be lack of sampling accuracy. Therefore, the data may not reliable for
research about a wider target population and cannot generalize to the target population
(hair et al. 2010; services 2012). However, this sampling method may help researchers
get a large number of respondents in a short time with a fit budget.

The target respondents in this study is the consumers who live in Hanoi, mostly
aged 18 to 45 years old with monthly income ranging from 5 million to 20 million per
month and have bought at least 1 made in Thailand product

3.3.3 Sample Size


One issue of selecting a sample is to determine the sample size for the study.
There are many formulas used to determine sample size, in which two formula estimated
minimum sample size are compulsory to estimate sample size in accordance with
Exploratory Factor Analysis (EFA) and Multivariate regression.

For Exploratory Factor Analysis (EFA): The study by Hair, Anderson, Tatham
and Black (1998) refer to the expected sample size. Accordingly, the minimum sample
size is five times the total number of observation variables. This is the appropriate sample
size for the study using factor analysis.

N=5xm

N: sample size

m: number of questions interviewedyigqQ

For multiple regression analysis: the minimum sample size is calculated by the
formula:

N = 50 + 8 * m

- m: number of independent factors

On that basis, the subject collected data with a sample size of 120. The sampling
method was conducted in a convenient, randomized and comparable manner as required
for research purposes. Data collection methods are group interviews, direct personal
interviews and online questionnaires.

3.4 Research Instrument


3.4.1 Data Collection Instruments
Interview: The interview is an alternative method of collecting survey data.
Rather than asking respondents to fill out surveys, interviewers ask questions orally and
record respondents answers. This type of survey generally decreases the number of do
not know and no answer responses, compared with self-administered surveys.
Interviewers also provide a guard against confusing items. If a respondent has
misunderstood a question, the interviewer can clarify, thereby obtaining relevant
responses (Babbie, 1992). As noted previously, personal interviews are a good way to
gather information from community leaders, particularly those who might be unwilling
or too busy to complete a written survey

Questionnaire: Questionnaire is one of the most popular and widely used


techniques of data collection. A questionnaire is a form containing a series of questions
and providing spaces for their replies to be filled in by the respondent on their own. The
response quality depends on the trust of the respondents feel for the research, the topic,
the manner in which the questions are worded and arranged. In this study, the author
used Google Drive tool to create an online questionnaire and share the survey link below
the form panel for surveyors.

3.4.2 Data analysis instruments


The study uses a combination of qualitative and qualitative research methods. In
quantitative research, software for processing and analyzing information is very
important. Therefore, the researcher used SPSS version 16.0 software to perform these
operations.

SPSS (Statistical Product and Services Solutions) is essentially a statistical


software, commonly used in social research, especially in psychology, marketing and
sociology. SPSS is also used in market research. SPSS provides a data management
system and statistics analysis capabilities with a user-friendly interface, using descriptive
menus and simple dialogs. Its main functions are data entry and cleaning, variable
processing and data management, summary, synthesis and presentation of data in chart
form, analysis and calculation of statistical parameters and interpretation of results.

With SPSS, researchers can analyze the situation, find out the factors that have
significant influence, predict the following trend, and as a results, it allows problems to
be solved quickly, improved considerably results precise.
3.5 Data processing method
3.5.1 Descriptive analysis
Descriptive statistics are used to described the basis features of data in term of
valid and invalid respondents percentage, mean, mode, variance of variables by using
frequency and descriptive. It provides simple main feature of the samples and measures.

3.5.2 Reliability Analysis


Variables derived from test instruments are declared to be reliable only when they
provide stable and reliable responses over a repeated administration of the test (Santos,
1999). The reliability of the responses from the multi-point formatted questionnaires or
scales (e.g. rating scale: 1 = poor, 5 = excellent) can be checked by Cronbachs Alpha
which ranges from 0 to 1 (Santos, 1999). It is suggested to be carried out first to remove
garbage items, which help to prevent artificial factors in the next step of Exploratory
Factor Analysis (Churchill, 1979). Nunnaly (1978) indicates 0.70 to be an acceptable
reliability coefficient which is also the threshold used in this research.

3.5.3 Exploratory Factor Analysis (EFA)


Exploratory Factor Analysis (EFA) attempts to bring inter-correlated variables
together under more general, underlying variables. The goal of EFA is to reduce the
dimensionality of the original space and to give an interpretation to the new space,
spanned by a reduced number of new dimensions which are supposed to underlie the old
ones (Rietveld & Van Hout, 1993). EFA, therefore, offers not only the possibility of
gaininga clear view of the data, but also the possibility of using the output in subsequent
analyses (Rietveld & Van Hout, 1993; Field, 2000). In this thesis, (EFA) is employed to
determine the factors representing the independent variables and dependent variable.

There are five factors that will be taken into consideration in this step:

(1) Eigenvalues: According to Rietveld & Van Hout (1993), the number of
positive eigenvalues determines the number of dimensions needed to represent a set of
scores without any loss of information. Thus, the number of positive eigenvalues
determines the number of factors to be extracted. The construction of the factor itself is
then calculated via a transformation matrix that is determined by the eigenvectors of the
eigenvalues. After constructing the factors, it is possible to determine the factor loadings
simply by calculating the correlations between the original variables and the newly
obtained factors. If eigenvalues are larger than a conventional threshold of 1, it means
factors are remained for further analysis.

(2) Factor loading: Practical significance of factor loading is suggested by Hair


et.al. (1998) are:

Factor loading > 0.3: Accepted minimal

Factor loading > 0.4: More Important significance

Factor loading > 0.5: Practical Significance

(3) Cumulative %: the cumulative proportion of discriminating ability of more


than 50% is applied as the minimum acceptance criterion, which clarifies how many
percentage the new factor can explain the variance of variables

(4) KMO: the Kaiser-Meyer-Olkin measure of sampling adequacy (KMO-test) is


used to check whether the sample is big enough. The sample is adequate if the value of
KMO is greater than 0.5 and less than or equal one (0.5 KMO 1).

Furthermore, SPSS can calculate an anti-image matrix of covariance and


correlations. According to Field (2000), all elements on the diagonal of this matrix
should be greater than 0.5 if the sample is adequate.

(5) Significance: the inter-correlation can be checked using Bartletts test. This
test is significant with Significance <0.05, which means the observed variables are
correlated with each other in general. Multicollinearity can be detected via the
determinant of the correlation matrix. If the determinant is greater than 0.00001, there is
no multicollinearity (Field, 2000).

3.5.4 Ordinary least squares (OLS) regression


This study tested the hypotheses using Ordinary least squares (OLS) regression
with IBM SPSS 2.0 Program. As mentioned by Pohlman & Leitner (2003), OLS
regression in its various forms (correlation, multiple regression, ANOVA) is the most
common linear model analysis in the social sciences. OLS illustrates the relationship
between a dependent variable and a collection of independent variables.

The regression coefficients are interpreted as the change in the expected value of
the dependent variable associated with a one-unit increase in an independent variable,
with the other independent variables held constant.

Before conducting OLS Regression, the linear correlation relationship among


reported variables will be tested. If there exists a correlation between the independent
variables and dependent variable, further steps of OLS Regression will be carried out.
Pearson product-moment correlation coefficient is employed as the measure of the linear
correlation between two independent variables and dependent variable, whose value is
between +1 and 1 inclusive. Positive values denote positive linear correlation while
negative values denote negative linear correlation.

A value of 0 denotes no linear correlation. The closer the value is to 1 or 1, the


stronger the linear correlation is. Correlation is significant at the 0.01 level (2-tailed).

In analyzing OLS Regression, the thesis uses the following figures:

(1) R Squared: a number that indicating the proportion of the variance in the
dependent variable that is predictable from the independent variable. The higher the R-
squared statistic, the better the model fits the data

(2) Analysis of variance (ANOVA): a particular form of statistical hypothesis


testing used in the analysis of experimental data. A test result is called statistically
significant if it is deemed unlikely to have occurred by chance, assuming the truth of the
null hypothesis: there is no relationship between independent variable and dependent
variable. A statistically significant result, when a probability (p-value) is less than a
threshold of 0.05, justifies the rejection of the null hypothesis, but only if the a priori
probability of the null hypothesis is not high.

(3) The Durbin-Watson statistic: a number ranging from 0 to 4 that tests for
autocorrelation in the residuals from a statistical regression analysis. A value of 2
indicates no autocorrelation is found in the sample. Values approaching 0 mean positive
autocorrelation and values toward 4 shows negative autocorrelation.

(4) Variance Inflation Factor (VIF): VIF larger than 10 is a sign of multicollinearity.
The threshold of this figure in the thesis is lower than 2.0.
Chapter 4: Analysis and finding
The survey was concurrently conducted by online and offline interview through
questionnaire. Data was collected from direct respondents.

The total data for survey were 200 respondents but after the process of filtering
the database, 8 invalid samples have been removed so the database using in this analysis
includes 192 samples and the result of research will rely on xxx valid samples. Here are
some statistic about gender, age, education, occupation and income by using Frequency
Analyze in SPSS.

4.1 Data Descriptive Analysis


Gender

Following the Figure xx, it can be seen that 76% of responders are female and 24
are male. The difference in frequency of appearance of male and female is pretty much
(about 50%). It indicates that gender ratio of Thailand products consumers is titled in
favor of female.

Gender

Male
24%

Female
76%

Male Female

Figure 4.1: Frequency of Gender

Age
Respondents with age from 18 to 25 is occupy mostly among 192 responses, up
to 59 % with 113 people. People who are 26-35 accounted for 24% and 36-45 is 14% of

Age

3%
14%

24% 18-25
59%
26-35
36-45
>45

total respondents. Especially there are only 6 responder more than 45 years old. If we
calculate the total number of under 35 people, it can be seen clearly that under 35 buyer
accounted for large percentage with 83%. We may conclude that consumers who have
bought Thailand products are mostly young people who are always interested in try and
exploring new things.
Figure 5: Frequency of Age

Education

There are 9 respondents are high school graduates occupy the level of 5%, 166
respondents having college degrees with 86%. Post-graduate respondents accounted for
9% with 17 people (Appendix 2c, page xvii).
Education

High School
Post Graduate
9% 5%

High School
College
College Post Graduate
86%

Figure 6 Frequency of Education

Income

There are 178 responses with income less than 20 million VND, this prove that
price of made in Thailand products is suitable for mostly consumer in Hanoi.

Income
> 20 million
10-20 million

< 5 million
< 5 million
5-10 million
5-10 million
10-20 million
> 20 million

Figure 7 Frequency of Income

Occupation

The result of occupation shows that there are 83 people doing the survey are
categorized into group 1 (Student), make up 43%. Meanwhile, 67 persons doing the
research survey are put into group 2 (Office worker), they represented 35% in total.
Then, 29 respondents are classed as group 3 (Businessman) with 15% and 13 people
chose others occupations, taking 7% in total

Occupation

7%
15%
43% Student
Office Worker
Businessman
35%
Other

Figure 8 Frequency of Occupation

Purchasing habit of respondents

According to research result, the most popular group of product selected by


consumers are cosmetic with 129 buyers in total 192 people. Thailand is also a tropical
country with the weather is quite similar to Vietnam, so the skin care products from
Thailand can quickly won favors of Vietnamese consumers. To use a Thai cosmetic,
consumers do not need to spend too much money: only 90-180.000 VND for a full color
lipstick, from 150.000 VND for a white skin shower cream, and about 500.000 VND for
a box of brightening cream, made in Thailand cosmetics are so affordable and most
popular by young people with average income.

Cosmetic group is followed by the fashion item group with 92 buyers. Made in
Thailand clothing are famous for diverse design, high quality material while the price is
only a little higher compare to made in China or made in Vietnam products.

Next, 85 respondents have purchased made in Thailand food items. One of the
reasons for the surge Thailand food items consuming is that Thailand retailers have
bought two of the largest retailers in Vietnam: Big C and Metro in 2015 and 2016. In
addition, in 2015, Vietnam has eliminated nearly 100% of tariffs on conventional imports
from Thailand, so fruit and confectionery Thailand benefits from this policy. Among
made in Thailand food products consuming in Vietnam, fruits are considered the most
popular one. There are many reasons why made in Thailand fruits and vegetables are
strongly to Vietnam market. Firstly, there are many kinds of Thai fruits such as mango,
longan, rambutan, mangosteen, etc. Meanwhile, the agriculture products from Thailand
are strictly inspected and adhered to international standards.

Technology items have been bought by xx respondents, accounting for xx% and
the remain xx percent belong to other product groups (Appendix xx, page xx)
Figure 9 Category of Made in Thailand products purchased by consumers in Hanoi

140 129
120

100 92
85
80

60

40 32 30

20

0
Cosmetic Fashion Food Technology other
4.2 The reliability test
The reliability of reported variables and their dimensional items is tested using
Cronbachs Alpha and presented in these following tables.

Independent variable Perceived Value

Cronbachs Alpha of Perceived Value is 0.815, which is higher than the threshold
0.70. Therefore, Perceived Value is considered to be an acceptable reliability coefficient
to use the research. The "Cronbachs Alpha if item deleted" values of PV1, PV2, PV3
are smaller than the overall Alpha, so all of them are reliable to measure Perceived Value.

In more details, "Cronbachs Alpha if item deleted" estimates what Cronbach's


Alpha will be if the research get rid of a particular item. For example, the number for
PV1 is 0.739. It means Cronbach's Alpha of this scale would drop from 0.815 to 0.739
if the thesis got rid of Q13.1. Because a higher Cronbach's Alpha indicates more
reliability, it would be a bad idea to omit Q13.1.

Reliability Statistics

Cronbach's Alpha N of Items

.815 3

Item-Total Statistics

Scale Mean if Scale Variance Corrected Item- Cronbach's Alpha if


Item Deleted if Item Deleted Total Correlation Item Deleted

PV1 7.35 2.940 .673 .739

PV2 7.27 2.837 .692 .720

PV3 7.33 3.059 .635 .778

(Source: Synthesized by the author, 2017)


Independent variable Perceived Quality

Cronbachs Alpha of Perceived Quality is 0.769, which is higher than the


threshold 0.70. Therefore, complementary assets is considered to be an acceptable
reliability coefficient to use the research. The "Cronbachs Alpha if item deleted" values
of PQ1, PQ2, PQ3 are smaller than the overall Alpha, so they are reliable to measure
Perceived Quality.

Reliability Statistics

Cronbach's Alpha N of Items

.769 3

Item-Total Statistics

Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha


Item Deleted Item Deleted Total Correlation if Item Deleted

PQ1 7.18 2.799 .609 .692

PQ2 7.15 2.998 .682 .598

PQ3 6.97 3.748 .537 .760

(Source: Synthesized by the author, 2017)

Independent variable Country of Origin

Cronbachs Alpha of Country of Origin is 0.797, which is higher than the


threshold 0.70. Therefore, complementary assets is considered to be an acceptable
reliability coefficient to use the research. The "Cronbachs Alpha if item deleted" values
of COO1, COO2, COO3 are smaller than the overall Alpha, so they are reliable to
measure Country of Origin.

Reliability Statistics

Cronbach's Alpha N of Items

.797 3

Item-Total Statistics

Scale Mean if Scale Variance if Corrected Item-Total Cronbach's Alpha if


Item Deleted Item Deleted Correlation Item Deleted

COO1 7.24 2.633 .651 .713

COO2 7.21 2.585 .679 .681

COO3 7.30 2.955 .595 .770

Independent variable Perceived Risk

Cronbachs Alpha of Perceived Risk is 0.788, which is higher than 0.70.


Therefore, complementary assets is considered to be an acceptable reliability coefficient
to use the research. The "Cronbachs Alpha if item deleted" values of PR1 PR2, PR3 are
smaller than the overall Alpha, so they are reliable to measure Perceived Risk.

Reliability Statistics

Cronbach's Alpha N of Items

.788 3
Item-Total Statistics

Scale Mean if Scale Variance if Corrected Item-Total Cronbach's Alpha if


Item Deleted Item Deleted Correlation Item Deleted

PR1 4.70 2.576 .686 .651

PR2 4.72 2.704 .600 .743

PR3 4.85 2.680 .602 .742

(Source: Synthesized by the author, 2017)

For dependent variable Purchasing Decision

Cronbachs Alpha of Purchasing Decision is 0.818, which is higher than the


threshold 0.70. Therefore, complementary assets is considered to be an acceptable
reliability coefficient to use the research. The "Cronbachs Alpha if item deleted" values
of PD1, PD2, PD3 are smaller than the overall Alpha, so they are reliable to measure
Purchasing Decision.

Reliability Statistics

Cronbach's Alpha N of Items

.818 3

Item-Total Statistics

Scale Mean if Scale Variance if Corrected Item-Total Cronbach's Alpha if


Item Deleted Item Deleted Correlation Item Deleted

PD1 7.22 2.782 .699 .722

PD2 7.05 3.301 .639 .783


PD3 7.24 3.021 .681 .740

(Source: Synthesized by the author, 2017)

First and foremost, table 4.8 presents the adequateness of factor analysis for both
of the dependent variable (Purchasing Decision), which is proved by KMO (0.907 >0.7)
and results from Barletts test (significant at 1 percent level), and the independent
variable (Perceived Value, Perceived Quality, Country of Origin, Perceived Risk), with
KMO of 0.713>0.7 and significant Barletts test at 1 percent level. In other words, data
from the survey results used to conduct EFA are entirely appropriate for inclusion in the
regression model and criteria observed are correlated with each other in general.

KMO and Bartlett's Test

Dependent Independent
Variable Variable

Kaiser-Meyer-Olkin Measure of Sampling


.907 .713
Adequacy.

Approx. Chi-Square 1072.709 200.747


Bartlett's Test of
df 66 3
Sphericity
Sig. .000 0

(Source: Synthesized by the author, 2017)

4.3. OLS Regression


4.3.1 Correlation analysis
Before conducting OLS regression, the author investigated the correlation
between independent variables: Perceived Value (PV), Perceived Quality (PQ),
Perceived Risk (PR), Country of Origin (COO) and the dependent variable: Purchasing
Decision (PD) through the standard deviation, the reliability, bivariate correlations, and
Pearson correlation coefficient. The results is summarized at the table 4.9 and table 4.10:
Correlations

PD PQ PV PR COO

Pearson Correlation 1 .493** .719** -.548** .673**

PD Sig. (2-tailed) .000 .000 .000 .000

N 192 192 192 192 192

Pearson Correlation .493** 1 .597** -.462** .487**

PQ Sig. (2-tailed) .000 .000 .000 .000

N 192 192 192 192 192

Pearson Correlation .719** .597** 1 -.538** .707**

PV Sig. (2-tailed) .000 .000 .000 .000

N 192 192 192 192 192

Pearson Correlation -.548** -.462** -.538** 1 -.555**

PR Sig. (2-tailed) .000 .000 .000 .000

N 192 192 192 192 192

Pearson Correlation .673** .487** .707** -.555** 1

COO Sig. (2-tailed) .000 .000 .000 .000

N 192 192 192 192 192

**. Correlation is significant at the 0.01 level (2-tailed).

(Source: Synthesized by the author, 2017)


Results from correlation matrix show that there are considerable relationships
between the independent variables and dependent variable, as well as among each
dimension of product differentiation with each other. Pearson correlation coefficients
showing the correlation among them are at a high level, ranging from -0.55 to +0.71.
Specifically, correlations are significant at the 0.01 level (2-tailed).

4.3.2 OLS regression.


Results of the ordinary least square (OLS) regression analyses of the primary data
with the participation of the control variables show that Perceived Value, Perceived
Quality and Country of Origin have a significant positive relationship with purchasing
decision of made in Thailand products of consumer in Hanoi, while Perceived Risk has
a significant negative relationship. For hypothesis 1 (H1), it can be interpreted that when
Perceived Quality is increased by 1, Purchase Decision will be increased by 0.487. For
hypothesis 2 (H2), when Perceived Value is upgraded 1 point, Purchasing Decision of
made in Thailand products improves 0.878 point. Finally, for hypothesis 4 (H3), when
firms boost capability to create unique product features 1 point, firm performance rise
0.892 point. All regression models are statistically significant at 1 per cent level, and
have no multicollinearity with VIF < 2.

H1: There is a significant association between perceived quality and purchase


decision.

According to Table 3, significant value for perceived quality is 0.000 ( = 0.487),


which indicates that perceived quality towards purchase decision is more than 99.99%
(p-value<0.01). Therefore, H1 is supported and this indicates that Perceived Quality has
direct association with Purchase Decision when customers want to purchase made in
Thailand products. This mean if customers perceived quality on products is higher,
purchase decision will be higher and will have high intention to purchase.

H2: There is a significant association between perceived value and purchase


decision.
According to Table 3, significant value for perceived value is 0.000 ( = 0.730),
which indicates that perceived value towards purchase decision is more than 99.99% (p-
value<0.01). Therefore, H2 is supported, which indicates that perceived value has direct
association with purchase decision when customers want to purchase made in Thailand
products mean that, if customers perceived value products is higher, purchase decision
will be higher and they will have high intention to buy.

H3: There is a significant association between perceived risk and purchase


decision.

According to Table 3, significant value for perceived risk is 0.000 ( = -0.581),


which indicates that perceived risk towards purchase decision is more than 99.99% (p-
value<0.01). Therefore, H3 is supported, which indicates that perceived risk have
association with purchase decision when customers want to purchase made in Thailand
products.

H4: There is a significant association between country of origin and purchase


decision.

According to Table 3, significant value for perceived risk is 0.000 ( = 0.714),


which indicates that country of origin towards purchase decision is more than 99.99%
(p-value<0.01). Therefore, H4 is supported, which indicates that country of origin have
association with purchase decision when customers want to purchase made in Thailand
products.
Coefficientsa

Hypothesis Coeficients(Std. Error) Sig. R Square VIF

H1: 0.487***
.000 .243 1.00
Perceived Quality -> Purchasing Decision (.062)

H2: 0.730***
.000 .516 1.00
Perceived Value -> Purchasing Decision (.051)

H3: -0.581***
.000 .300 1.00
Perceived Risk -> Purchasing Decision (.064)

H4: 0.714***
.000 .453 1.00
Country of Origin -> Purchasing Decision (.057)

(Source: Synthesized by the author, 2017)

4.4. ANOVA analysis


In this research, ANOVA analysis is used to study about the impact of
demographic variables on purchasing decision of made in Thailand products.

Because of this aim, three following hypothesis are formed:

H5: There is difference in purchasing decision by gender

H6: There is difference in purchasing decision by age

H7: There is difference in purchasing decision by income

One way ANOVA analysis is used to testing these hypotheses separately.

Gender
First of all, Homogeneity of variances is checked by using Levene Stistic. This
test helps examine whether variances of Female and Male are equal or not.

Test of Homogeneity of Variances

Levene Statistic df1 df2 Sig.

3.740 1 190 .055

That Sig. = 0.055 is higher than 0.05 so at the reliability of 95% the variances of
Female and Male are equal. It is satisfied the condition for doing ANOVA analysis

ANOVA

Sum of Squares df Mean Square F Sig.

Between Groups .621 1 .621 .893 .346

Within Groups 132.212 190 .696

Total 132.833 191

Sig. of ANOVA analysis is 0.346>0.05. Therefore, with observational data, it is


not eligible to affirm that there is a difference in purchasing decision between Female
and Male. H5 is rejected.

Age

Sig. of Lenvene =0.605 > 0.05. The variances of age group are so equal so the
results of the ANOVA can be used

Test of Homogeneity of Variances

Levene df1 df2 Sig.


Statistic
.616 3 188 .605

Sig. = 0.293 > 0.05 so it can be concluded that the difference in age groups have
no effect on purchasing decision of made in Thailand products. Hence, H6 is rejected.

ANOVA

Sum of df Mean Square F Sig.


Squares

Between
2.599 3 .866 1.250 .293
Groups

Within Groups 130.234 188 .693

Total 132.833 191

Income

Sig. of Lenvene =0.675 > 0.05. The variances of income group are so equal so the
results of the ANOVA can be used

Test of Homogeneity of Variances

Levene df1 df2 Sig.


Statistic

.511 3 188 .675

Result of ANOVA analysis shows that sig. = 0.293> 0.05. Therefore, with
observational data, it is not eligible to affirm that there is a difference in purchasing
decision of made in Thailand products between income groups. Hence, H7 is rejected.
ANOVA

Sum of df Mean Square F Sig.


Squares

Between
1.551 3 .517 .740 .529
Groups

Within Groups 131.282 188 .698

Total 132.833 191

In conclusion, the result of ANOVA Analysis shows that purchasing decision of


made in Thailand products is not influenced by gender, age and income

4.5 Discussion
The research result reveal relatively sharp differences in the impacts of perceived
quality, perceived value, perceived risk and country of origin though perceived value
features stand out to have the largest influence with the coefficient at 0.730,followed by
perceived risk, country of origin and perceived quality rank last to effect purchase
decision with the coefficient at 0.487.

According to the research result, perceived value has the strongest influence on
purchasing decision. Consumers are always buying products and services that offer the
highest perceived value. This means that they always reflect on the benefits and costs
they pay for each brand. They do not quite pick the lowest priced brand when the benefits
it brings are not much. Conversely, they are willing to accept a high price for using
reputable products. Firms should focus on improving the perceived quality and value of
their brands, as this influences their buying decisions. In addition, value and quality can
help businesses sell products at higher prices as well as make it easier for companies to
bring new product lines into the market. To do this, manufacturers must constantly
improve product quality as well as maintain this high quality stability for any product
line to market.

The risk of failed purchase which accompanies consumers, if it is only perceived


by them, constitutes an important determinant of making purchase decisions. The
research results showed that consumers associate certain level of perceived risk in
making decision of made in Thailand products. This result is not surprising giving the
fact that made in Thailand products were manufactured outside the border of Vietnam,
and in case of deficit, it will be difficult to make a claim to the producer. Compared to
products produced in developed countries such as US, Canada, Japan, made in Thailand
products are often evaluated less assurance, which certainly increases the perceived risk
and reduces their likelihood of purchase. The worry of counterfeit or low quality
products is also a problem that lead to the decrease in the probability of purchase
decision.

The results of the study show that country of origin is considered as information
that affects consumers purchasing decision in terms of their perception toward the
products attributes as well as their overall evaluation of the product. Consumers are
generally felt to perceive Thailand products as good-quality, and to associate "made in
Thailand" labelling with value pricing, skilled labor and good materials. Consumers are
also of the opinion that COO information helps them to choose the best product available
in a product class and consider the new product to make a more informed decision. The
national brand name, or "Made in country", is probably a ticket to many businesses
without knowing how good the product is. So every country wants to improve this image
in the minds of consumers.

The results show that the perceived quality factor strongly influenced consumers'
purchase decision of made in Thailand products. As the economy integrates, consumers
have more and more information and choices, they pay more attention to the selection
of products satisfying their needs, in which the quality factor is one of the top concerns.
Therefore, Vietnamese manufacturing enterprises should pay attention to improving
product quality and creating credibility in order to provide consumers with the most
desired perceived quality through solutions such as: pay more attention to input material
quality, applying modern technology in manufacturing, improve quality of human
resources.
Implication based on impact of Perceived Quality on Purchasing Decision of Made
in Thailand product

The research results indicate that the Perceived Quality has significant impact on
the decision of buying made in Thailand products of consumers in Hanoi. Recently,
achieving customers attention is becoming more and more difficult as the product is
continually improved, and to make consumers purchase your products, these following
aspects are worth paying attention to:

Focusing on raw material.

This is one of the difficult stages of Vietnamese enterprises today, most of the
small and medium enterprises have not really paid adequate attention to and invest in
input material, albeit for some items businesses Vietnam is heavily dependent on foreign
suppliers, so ensuring good quality raw materials for production is a matter of concern.
Raw material is the most important factor determining the quality of the product.
Vietnamese enterprises must first invest in raw materials in a serious and regulated way
such as active raw materials, properly check the input material. This will ensure the
quality of the output product, which will help customers feel the quality of Vietnamese
products more actively and gradually move the trend to use Vietnamese goods.

Enhancing product design.

Most of Vietnamese enterprises are small and medium enterprises with limited
resources. Therefore, they only invest in quality and aim at reduce price of products.
They have not invested sufficiently in improving their designs, and designs of their
products often depend on foreign order. Many businesses have copied the code of other
enterprises, unknowingly reduced the creativity and attractiveness of their products.
Today, along with the social and economic development, product design and styles are
becoming an important part of consumers preference of product. The market is flooded
with similar products, and the only thing that differentiates one brand of a particular good
from another is its design. While products have always served a function, they are more
and more carrying meaning. It is the role of good product design to effectively
communicate that meaning to the consumer. Societal pressure based on economical,
ecological, and technological preferences is constantly altering how people feel about
products. It is vital for businesses that want to do well to listen to and respond to the
needs and desires of consumers, providing creative and innovative product design. An
aesthetic and unique design is necessary to stimulate domestic consumers to pay more
attention to and use domestic goods. Only by adequate investment in products design,
Vietnamese enterprises can improve the competitiveness of their goods.

Applying strict quality management system

Made in Vietnam products have to be compliance with the quality specifications


and no special error. This can be considered as the most important requirement of a
product, because a good quality product, then consumers trust and use as well as loyalty
to that product. Quality assurance streamlines production and helps to ensure that the
final products meet the companys quality criteria. It ensures that the processes used to
design, test, and produce products will be done correctly. In manufacturing, quality
assurance approaches, like ISO 9001, help manage and improve many processes,
including: acquiring raw materials; purchasing third-party components and sub-
assemblies; designing and using inspection procedures; complying with production
processes and responding to defects. For every business, quality assurance is different.
However, ISO 9001 works for businesses both large and small and can be adapted for
most any need. It provides the means for creating a lasting quality assurance program,
ensuring that everything, from raw materials to inspection procedures are of the highest
quality. Issues and defects from poor quality materials or third-party components are all
but eliminated.

Improve the quality of human resources in production.

The quality of products depends on the quality of human resources in production,


the team of skill and high technical level will bring good quality products to enterprises,
so enterprises need to enhance the qualifications and competences of employees through
many internal and external training programs. Domestic companies also change the
management policy to encourage their employees to accumulate new knowledge and
skills, share them into their colleagues through bonus or awards. This solution is deemed
as fundamental approach to encourage innovation and differentiation in firm level.

Implication based on impact of Perceived Value to Purchasing Decision of Made in


Thailand products

Research results show that the perceived value factor strongly influenced
consumers' buying decisions in Thailand (standardized weighting was ). Meaning that
when consumers are aware of the value they can get in line with their expectations when
deciding to buy the product, they will intend to buy it. Consequently, businesses need to
have strategies and actions that affect consumer perceptions, giving them a sense of high
product value, satisfying their need which lead to behavioral intention.

Paying attention to brand building

Businesses need to pay attention to building value can be based on the basis of:
products brand, corporate brand, reasonable price level in line with the quality of
products and the expectations of consumers. Previously, most of the small and medium
enterprises in Vietnam have not really paid attention to building their own brand identity,
so the competition process has many influences such as consumers We do not know
exactly what the product brand of each company is, or the perception and understanding
of the brand is low, or it can be exploited to label bad products to reduce consumer
confidence right. Branding does not just focus on the "body" but it is important to pay
attention to the "soul" of the brand itself. Strong brand is the precondition for business
position and stability in the consumer market today. Consumers will feel the best value
from the product through a strong and reputable brand, which leads to behavioral intent
and decision to buy the product.

In order to create a strong brand, Vietnamese enterprises are trying to improve


product quality and find ways to reduce product cost. Businesses have spent a lot of
effort and money to achieve the quality certificate. Improving quality and reducing costs
will create competitive advantage of enterprises in the market. However, these
advantages do not guarantee the acquisition of a strong brand.

Firstly, businesses always believe that a good quality product will be highly
appreciated by consumers. Businesses can use quality criteria to evaluate products, but
consumers evaluate products by looking at their own. By the experience, knowledge,
information and needs that each person completely different evaluation. A good quality
product measured in the factory is not necessarily a good product in the eyes of the
consumer. Enterprises need to pay attention to the needs and level of understanding of
consumers for products and services. A product or service that consumers value for
quality will increase the value of the brand. Along with flourish of technology and
citizens are more educated than before, most of the customers have more product
knowledge and more sources of information. Hence, they have more rigorous and harsh
requirement to consider before they make a decision in purchasing any products.
Therefore, in making purchasing decision, most of the customers will consider what
value the product can offer to them in terms of money, personality, status and lifestyle.
Customers will think of the value that can provided by a particular product in term of
status, personality and lifestyle. They want to have higher status, unique personality and
better lifestyle by using a product. Thus, probability to purchase made in Vietnam
products will be higher if the Vietnamese enterprises able to provide such value.

Due to this, Vietnamese enterprises should further strengthen the value to their
products. In advertisement they should emphasize the value that the products can give to
their user. They need to educate their customers that what kind of status, personality and
lifestyle will be if they use those products. Besides that, Vietnamese enterprises should
have value added services for their customers. They must considering organizing a week
of consumer gratitude with goods and services sale off must be of clear origin, quality
standards and safety to consumers, clearly listing information related to products and
goods. At the same time, gratitude programs to consumers such as repair support, free
warranty maintenance for expired warranty product, increased warranty time for the
products sold during the event, organization of gratitude gifts, discounts for customers,
set up a hotline to support inquiries for consumers should also deployed and listed.

Second, businesses often assume that consumers will choose products and
services at lower prices. Consumers are always comparing the values they receive with
the costs they pay. Low prices will promote product selection as they evaluate the
benefits that products and services bring. Theoretically, lower prices will bring greater
value to consumers, but in practice low prices can make consumers feel "their money"
and not appreciate the quality. The amount of product and consequence is not appreciated
by the brand. Price is a factor that consumers care about but value perception leads to
their behavior. Enterprises should not determine the price but should determine the value
of their products and services.

Implication based on impact of Perceived Risk to Purchasing Decision of Made in


Thailand products

Customers will consider some risk when they want to purchase consumer goods
because consumer good is one of the most frequently used products and most of the
consumer perceive that they should be long lasting. Therefore, they face uncertainty if
they purchase the unsuitable products that result in poor performance, embarrassment,
poor self-image and unsafely, which cause them lost in financial risk, physical risk,
social risk and performance risk. The results of this study help Vietnamese businesses
consider the possibility of creating credibility for buyers based on the ability to minimize
the risk level, thereby attracting more customers, making the customer feel safe and
reliable when buying Vietnamese goods. Therefore, Vietnamese businesses should
consider the following suggestion.

Struggles to combat counterfeit products

One of major causes of financial risk to consumer is counterfeit good and it need
to be seriously treated to lessen consumer perceived risk on made in Vietnam products.
In reality, the widespread appearance of Chinese goods labelled made in Vietnam made
the consumers loose trust in Vietnamese enterprises and also made in Vietnam genuine
products. The counterfeits and the risks they pose had ruined Vietnamese company's
reputation, damage its goodwill, and cause potentially costly litigation when one of the
counterfeits fails catastrophically. These following steps can help Vietnamese
enterprises to protect their brand and gain the loyal of the customer. Firstly, they may
must pay attention to registration of trademarks. It is an important step in protecting their
brands. Federal registration allows them to enforce their trademarks anywhere in the
Vietnam and provides constructive notice to the public of their claim of ownership of
the marks. However, just protecting intellectual property rights is not sufficient.
Vietnamese enterprises then have to take all of the necessary steps to enforce their rights.
Periodically monitor the sales of goods both online and by retailers to verify that
the products being sold are, in fact, genuine products. Three simple factors to examine
include the price, the packaging, and the location where the product is being sold. In case
enterprises find counterfeit goods, they should take the appropriate legal steps to stop
the counterfeiters. This could be as simple as sending a cease and desist letter or could
require a civil litigation. An important part of enforcement is taking immediate action.
Delaying litigation could hurt the ability to seek injunctive relief and, if unreasonable,
could prevent Vietnamese enterprises from filing a lawsuit. Technology is becoming an
important tool in protecting your goods from being counterfeited. In addition to these
above methods, anti-counterfeit stamps have recently been introduced to help
Vietnamese enterprises deal with counterfeit products. Applying code scanning
technology QR Code 2D and 3D can help consumers quickly check the information and
origin of products to ensure that they do not buy counterfeit products. Providing
customer with detailed product description

To ensure the quality of goods delivered to customers exactly as promised, thhe


information about the product should be published accurately and clearly on the
company's media such as website, catalog, label, promotions for customers reference,
evaluation and selection of products. Providing product information with full features,
product specifications through images, specifications, description, video ... and detailed
product instructions, customers will feel more confident when making a purchase.
Moreover, when provided with accurate and complete information, customers will
understand and feel better about the product, avoid the situation of buying counterfeit of
low quality products due to lack of knowledge of the product.

Ensuring safety for consumers with quality certification

Consumers always tend to purchase products that value for money. Thus,
Vietnamese companies should use advertising to convince their customers that the risks
(in term of performance and safety) for purchasing their products are much lower than
others. They can emphasize on their high quality production process or high quality raw
material. Moreover, they can stress on quality assurance certificate in order to reduce
perceived risk of customers. In case the consumers encounter any problems with the
products, they need to know where to claim and how to assure their rights and benefits,
and thus Vietnamese enterprises should consider extend the warranty period of their
products in order to reduce the risk bear by customers.

Developing after-sale services

A clear policy of compensation and solving customer complaints is also need


developing. Compensation policies with goods must have specific conditions for
references. Where compensation is to be made, including non-compensated faults, it
should be clearly defined for. Complaints of customers need to be resolved quickly and
reasonably, ensuring satisfaction for customers. Complaints and grievances solving
require human resources that are professionally trained and strictly adhered to in
company policy, avoiding inconvenience to the buyer.

Implication based on impact of Country of origin to Purchasing Decision of


Made in Thailand products
Using patriotism marketing

Besides that, Vietnamese companies should position them as a higher status brand
to convince people that they will not felt embarrass by using their products. A high
quality made in Vietnam product must be treated equally with the same quality foreign
products. Vietnamese enterprises may consider using patriotism to boost customers
confidence in their products. Many consumers allow their sense of national pride
influence their purchasing habits, thus using patriotic messages in marketing effort
would be an effective way. Companies that share their values and organizations that
demonstrate patriotism in their marketing efforts are highly appreciated by consumers
with a strong sense of national pride. While using patriotic marketing strategies can be
very effective, it's vital to maintain the proper tone to avoid sending inappropriate
messages. Improperly mixing humor with patriotic messages, for example, is a
marketing blunder that can easily backfire. If Vietnamese enterprises are planning to
utilize patriotic images in their marketing messages, they must make sure everything
they do remains in good taste and conveys the proper measure of respect for their
country.

Actively involved in Vietnamese priotize made-in-Vietnam goods campaign

The project Vietnamese priotize made-in-Vietnam goods aims at building a


consumer culture based on patriotism and national pride in the long term. In addition,
the program aims to develop the domestic market, to meet the needs of producers and
consumers, to promote the development of distribution systems (with domestic
enterprises as the core) to facilitate the bringing of local goods to the hands of consumers
to enhance purchasing power, stabilise market and improve peoples lives.

In the past 7 years, several measures have been taken to bring the best
performance for the campaign. Particularly, due attention has been paid to combating
smuggling, fake goods, intellectual property violations and illegal business behaviour.
This has made a fundamental change in the management of goods circulated on the
market, protecting consumers and Vietnamese businesses.
The domestic market development plan also offered four groups of measures
which should be taken as following: helping change the perception and behavior of the
community towards domestic goods; supporting the sustainable distribution system of
Vietnamese products; enhancing competitiveness of Vietnamese enterprises,
cooperatives, small businesses in trading activities; improving the effectiveness of the
inspection and control of the market and protecting consumers' rights.

On the task of developing sustainable distribution system of goods with a priority


for Vietnamese goods, it is crucial to study and propose policies to strengthen and expand
the distribution system, to build modern distribution channels for Vietnamese goods, to
diversify forms of distribution, to set a sustainable retail system for Vietnamese goods.
Conclusion

Based on the theoretical basis of previous studies and primary data collected in
March-April 2017, the study looked at the factors affecting the purchasing decision of
made in Thailand products of consumers in Hanoi. Perceived quality, perceived value
perceived risk and country of origin are used as independent variables, while buying
decision is employed as only dependent variable in the theoretical framework with four
hypotheses. The results showed that the three factors of use of perceived quality,
perceived value and country of origin had positive effects while perceived risk had
negative effect on the purchasing decision of made in Thailand products in Hanoi market.

During the implementation, due to time constraints and other conditions the
subject has certain limitations. First, the subject focus on studying the factors that affect
the decision to buy made in Thailand products in Hanoi, mainly based on the Theory of
Reasoned Action model and Theory of Planned Behavior accompanied with inheritance
the results of previous studies. Therefore, when applied in Vietnam market, more
appropriate adjustments need to be made in order to grasp the most general behavior of
buying made in Thailand products. Second, the study was conducted only with
consumers in Hanoi. The results can represent the market if the study was conducted in
many other provinces in the country. Thirdly, the sample is chosen in a convenient
manner with a non-probability sampling mode, although it is guaranteed according to
the sampling theories, however the generalizability of the study is not high. Fourthly,
this study only considers attitudinal factors, perceived quality, perceived value,
perceived risk and country of origin. In addition to these factors, there may be other
factors influencing the consumer's intention to purchase and decide to purchase made in
Thailand consumer products that this study has not addressed. Fifth, the proposed
solutions of the author are personal based on the results of research, the practical
application will also depend on type of individual business and its current situation.

Based on the limitations of this research topic, the authors point out the following
research implication: First, theoretical models included should be combined adjusted to
the realities of market and the scope of research. Second, a more extensive research
should be conducted in other provinces across the country. Third, the following studies
may choose a larger sample with a probabilistic approach to make the result more
generalize. Fourth, many other factors may be included to ensure a more precise study.
Finally, the next topic can choose a specific field or sector to study consumer purchasing
decisions. For example, the factors that affect consumers' decision to buy made in
Thailand product in the FMCG sector, technology - food, etc.