VIETNAM NATIONAL UNIVERSITY – HOCHIMINH CITY

INTERNATIONAL UNIVERSITY
SCHOOL OF BUSINESS

BUSINESS RESEARCH METHOD

GROUP REPORT

Responsibility in
Student Name Participation %
Assignment

Truong Thi Hoang Long Literature Review

50%
BABAIU13136 Methodology

Ho Diep Nhu Quynh Introduction

50%
BABAIU13381 Methodology

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The effects of Hallyu on purchasing behavior and intention
to buying Korean product

CHAPTER I:
INTRODUCTION

1/ Research Background

Like so many other Asian countries, South Korea is a country with a lot of typical

culture itself. Rich and unique in the fields of culture such as cuisine, arts, literature, movies

or music ... that very famous is “Korean culture wave” which is promoted very strongly over

the years. Many people have obsessed with films or Korean singers, all is due to the

dynamism of this country in promoting the country’s image with the whole world. Through

the culture promotion ways, they also show us the everyday culture of the people here. And

so we know the culture of the people in daily activities. The culture is also reflected in

people’s consumption trait. There are many cultural factors which have an impact on trait like

neighboring Asian countries such as shopping several times a week and use fresh products.

But there are unique features and characteristics of the Korean people as various style of the

merchandise selection, the use of domestic goods instead of foreign goods and brands.

It is found that Korean’s culture and TV series are widely consumed around the world

(Jung, 2006), (Samuel Seongseop Kima etal, 2007) investigated the effects of Korean drama

on country’s image, (Sora Park, 2010) endeavored to prove the relationship of cultural flows

and customer’s perception. The Hallyu wave has been contributing significantly to promote

the tourism industry (Yu etal, 2012). The culture trends give tremendous impact on the

market share reorganization (Hirschman, 1990). On the one hand, people believed that the

Korean Wave also has positive effects on Korean exports tourism field (Pang et al., 2007).

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On the other hand, researchers claimed that the adoption of the Korean Wave can directly

influence the purchase of Korean products. The consumer products related to Korean culture

such as tourism, contents, cosmetic products can be influenced (Yu et al., 2012). Lee (2007),

Kim and Park (2004) found the positive and significant relationship between the Korean

Wave and attitude toward Korean products. Foreign consumers who are familiar with

Korean culture are likely to have a more positive attitude toward Korean products and have

more intention to purchase them.

In summary, although there are differences in the direction of research, but limited

general studies is lacking ahead and systematic synthesis. The majority of these studies reach

Hallyu only in some areas such as music, movies, TV series, while in Vietnam, other sectors

such as cosmetics, Korean language, cartoon, online games, Korean-style cafe, K-mart

supermarket ... are creating a new wave, but they are discussed not so much.

3/Problem Statement

The influence of Korea’s entertainment has become the subject of concern and

criticism throughout the world especially Aisa. Most of suppliers catch the trend and make

their products hit right to customers desire in order to expend profit.

This study will investigate the aspects that Korea entertainment products effect

Vietnamese customer consumption decision and whether we can apply this influence in

Vietnamese market.

4/ Research objectives

From cultural approach and sociological study, we want to find out the influence of

Hallyu in changes of cultural, social, cognitive and lifestyle of the Vietnamese. At the same

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time, the view from economics approach, we also understand the economic value that Korea

has brought up the Vietnamese.

Hallyu fields are selected for analysis can be divided into four areas: general culture

(pop, game show, movie, drama, and cultural characteristic), unique culture (language and

cuisine), modern culture (online games, animation, and comics), the cultural industry (fashion,

cosmetics, electronic products)

Thus, with the goal of research wants to answer three questions.

First, the emergence of Korean history in Vietnam?

Second, the influence of Hallyu in Ho Chi Minh City today likes?

Third, the impact of each sector up to purchasing behavior?

5/ Significance and implications

It is indicated that the future development of Hallyu tendency in Vietnam will grow

stronger in fashion, cosmetics, the entertainment television shows... And especially the

intrusion of Hallyu through consumption products "made in Korea" or “similar to Korea” as a

passionate admiration for Korea and will entail in a new trend in shopping. It can be said, in

recent years, Hallyu has experienced strong growth in Vietnam.

For the producers company:

They will know exactly what their customers like or dislike, what customers need

when they purchase a good such as its design rather than its quality. Base on that they can

design proper strategies to gain market share and maximize profit. They can also apply the

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research not just to catch customer interest but also to avoid the product’s characteristics that

make customers have negative perception on it.

For the customers:

When customers are well equipped with knowledge how they are influenced by

Korean film and music, they would carefully consider their decisions of purchasing whether

that is what they want and need to buy or whether it is just the effect of influence aspects.

People are rebellious, once they know they are being controlled or affected by something,

normally they will go against it or become more aware.

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 CHAPTER II:
LITERATURE REVIEW

This chapter presents details of the review of related studies. All concepts and
definitions of the research objectives are represented with one subtopic in the study for a
clearer explanation of each variable of the research. The reviewing similar previous
researches and proposing the theoretical framework related to are also included.

1. Hallyu

1.1 The concept of Hallyu

The term Hallyu – “Korean cultural wave” refers to the spreading of Korean cultural
influence in Asia and beyond. Hallyu includes K-pop (pop music), TV dramas, movies (K-
dramas, K-movies), and lifestyle with Korea’s high technology and also means the growing
aspiration to know more about Korean culture worldwide, being enjoyed around the world.
Firstly appeared with the export of dramas to China around the middle of 1999. Today, the
popularity of Hallyu is everywhere and mainly led by TV dramas and K-pop. K-pop stars are
also rising as representative cultural ambassadors of Korea.

1.2 Hallyu in Vietnam

In the beginning of 21st century, Korean Wave has started to become a global
phenomenon, especially Asian countries and focused on young people. A series of events
taken place in Vietnam in recent times are considered as the lively evidences of the import
and the flourishing of Hallyu in Vietnam. Central and local TV channels continuously
broadcast the outstanding words K-movies and K-pop. Most Vietnamese people keep in heart
a special feeling to “Dea Jang Gum”, “Winter Sonata”, “Jumong”, etc… or an enthusiastic
behavior toward K-pop stars “Bi Rain”, K-pop band “Big Bang”, “Super Junior”, “2NE1”…

K-pop, K-drama and K-star are popular in Vietnam because of their fashion,
hairstyles and lifestyles of South Korean. Vietnamese audiences are attracted to these modern
images and appearances and considered their favorites stars as idol. Young people tried to
look like their idol by buying clothes, cosmetics, shoes, or even phone or hairstyle. This is

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also the reason why there are many foreign corporations that intend to build brand in Vietnam
in order to take profits from the Korean Wave.

2. Purchase intention

Spears and Singh (2004) defined purchase intention as an individual’s plan to buy a
particular product. Many researches proved that the Korean Wave also has positive effects on
exports of Korean products and increased tourism (Pang et al., 2007). They insist that the
adoption of the Korean Wave can directly influence the purchase of Korean products. The
consumer products related to Korean culture such as tourism, contents, cosmetic products can
be influenced (Yu et al., 2012). Foreign consumers who are familiar with Korean culture are
likely to have a more positive attitude toward Korean products and actually purchase them.

3. Cultural factor

Culture is defined in many different ways. Kroeber and Kluckholn (1952) defined
culture as pattern, implicit and explicit, of and for acquired behavior and transmitted by
images, On the other way of definition by Hofstede (1980), culture if the collective
programming of the mind which distinguishes the individuals from one group or category of
people from another. Culture is a comprehensive concept, concludes nearly everything that
affect individual’s buying decision and behaviors (Ahmad Chaudhry, 2014). Cultural factors
have influence on an individual’s buying decision. (Kotler and Armstrong, 2007).

4. Social factor

Social factors play a vital role in influencing consumer buying decisions. Consumer
purchasing decisions are influenced by reference groups, person’s family, roles and status in
society.

 Reference groups

Consumers usually try to coordinate their purchase behavior with their perceptions of
the value of their reference group. Celebrities or Korean stars are considered as example of
intellectual and opinion leaders, and in the form of a reference group is able to direct
preferences of consumers toward a specific product or brand (Solomon et al., 2002)

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  Family
Family members can strongly influence purchaser behavior. The impact of
relatives on decision is also huge even in some case they do not live with their
parents. The buying intentions of a specific item are almost influenced by spouse,
husband and youngsters.
 Roles and status
Activities and behavior which decide the position of an individual is called
role. Positions of people when they attend to clubs, organizations can be dealed
with in term of role and status. For instance, a lady is a mother of her daughter at
home, yet in the workplace her role is an account manager. Each of roles has an
impact on behavior of consumers. Every role performs a stratus within the society.

5. Credibility

Credibility positively influences consumer attitudes toward brand and purchase

intention (Lafferty and Goldsmith, 2004). Daneshvary & Schwer (2000) stated that an
individual accepts the impact of the source not only because it offers a solution to a problem
but also due to the source’s own credibility. Therefore, the endorsement of a product by a
reliable source may have an effect on consumer’s behavioral intention. Sliburyte (2009) also
insisted that there is a strong relationship between the credibility of celebrity endorser and the
purchase intention of consumers.

4. Attractiveness

Recent years, using idol stars and celebrities as part of marketing strategy is not a new
concept. Most of corporation use their gorgeous image in order to create interest and attract
consumer attention. The celebrities have better impact on the desires and feelings of target
audience than normal people. (Till, 1998). The voice of attractive and young Korean stars can
have positive in the mind of consumers. The visual elements of an ad create a sense of
attractiveness and develop a positive attitude towards purchase attention (Clow, James et
al.2006). As stated by Till & Busler (2000), purchase intention for brand will be greater when
endorsed by an attractive spokesperson. Hence, attractiveness plays an important role on
influencing consumer buying intention.

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 The Conceptual Research Model

H1: Cultural factor has positive impact on purchase intention

H2: Social factor has positive impact on purchase intention

H3: Credibility of Korean star has positive impact on purchase intention

H4: Attractiveness of Korean star has positive impact on purchase intention

CULTURAL
FACTOR

H1

SOCIAL
FACTOR H2

PURCHASE
H3
INTENTION

CREDIBILITY
H4

ATTRACTIVENESS

Figure 1: Conceptual Model

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 CHAPTER III:
METHODOLOGY
1. Research Process

Besides utilizing the flexible and fully integrated approach document on social

networking sites like facebook, google, and academic research have been published etc .., we

also combine methods of sociological surveys include fieldwork, survey questionnaires,

interviews vv.. Finally, the investigation focused on the Ho Chi Minh City.

In order to understand the customers’ decision to buy under Hallyu effects, the

research will be approached quantitative method. Quantitative is based on the quantitative

measurements of some characteristics. It is applicable to phenomena that can be expressed in

terms of quantities.

Exploratory is used to understand the nature of the problem, construct a suitable

conceptual framework, and define primary data based on prior researches. Descriptive

research design is used to collect primary data to know about the consumers’ evaluation

about the factors affecting customers’ decision to buy.

2. Sampling selection

- Primarily apply quantitative method, also use qualitative for details as result support

- Proportion about the importance of each factor and customer information

- Use questionnaires-survey send to 300 customers both male and female from 15 to 40

years old in Ho Chi Minh City

- Pick real stories and experiences from customers to redefine result by interview

- The outcome is to measure consumer behavior, knowledge and perception

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 3. Data collection method

Based on the research’s purpose, questionnaire survey is designed into three main

factors.

 The first of questionnaire: basic questions about Korean Wave to find out the impact

of Hallyu on young people in Ho Chi Minh City.

 The second part: main questions about cultural factors, social factors, credibility,

attractiveness and purchase intention toward Korean product by using Likert Scale.

 The final part: personal questions about individual information, education, gender,

income and marriage status.

This research uses two main sources of data: primary and secondary data. Primary

data is collected from survey questionnaire. Survey is transferred to respondents in both paper

form and online form. Online survey link can be distributed through email and different

channels of communication such as Facebook, Google Plus, etc. Besides, secondary data is

collected from customer’s database, customer’s evaluation, and customer’s comment and

feedback by using appropriate support software.

4. Measurement Scale and Coding

This questionnaire use the Likert Scale with 5-points of evaluation

1. Strong Disagree

2. Disagree

3. Neutral

4. Agree

5. Strongly Agree

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 VARIABLES CODE MEASUREMENT STATEMENTS

Korean culture affects purchase decision to

CUL1
Korean product

CULTURAL Purchase Korean product due to the similar

CUL2
FACTORS between Vietnamese – Korean culture

I enjoy Korean music, dramas, food , fashion

(CUL) CUL3
and culture

CUL4 Korean lifestyles attract me

Purchase Korean product because of increase

VSF 1
of using Korean product trend

VSF 2 Korean products are trusted in Vietnam market

SOCIAL FACTORS
VSF 3 Korean products are suitable for middle class

(VSF) Purchase Korean products because someone

VSF 4
recommend or use before

Ideas of family, friend, people around are

VSF 5
important to decide to buy Korean products

Purchase Korean product because it is

KAT1
endorsed by my favorite Korean star

Korean products with Korean star are more

ATTRACTIVENESS KAT2
favorable

(KAT) I am willing to pay more for Korean product

KAT3
because of its celebrity

KAT4

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 When I confuse buying Korean product, I can
KCE1
trust Korean star

KCE2 Korean star always presents a reliable image

CREDIBILITY
I think the information about the product
(KCE)
KCE3 which is endorsed by Korean star is

dependable

KCE4

PURCHASE PI1 I want to purchase Korean product

INTENTION PI2 I have intention to purchase Korean product

(PI) PI3 I will purchase Korean product

Table 1: Measurement Table

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 References

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