Antecedents and Consequences of Status Consumption Avidence From Vietnam Luan Van Thac Si Vo Thi Thu Trang Nguoi Huong Dan Nguyen Thi Mai Trang

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business

------------------------
Vo Thi Thu Trang
ANTECEDENTS AND CONSEQUENCES

OF STATUS CONSUMPTION:
EVIDENCE FROM VIETNAM
MASTER OF BUSINESS (Honours)
Ho Chi Minh City - Year 2014

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------
Vo Thi Thu Trang
ANTECEDENTS AND CONSEQUENCES

OF STATUS CONSUMPTION:
EVIDENCE FROM VIETNAM
ID: 22120078
MASTER OF BUSINESS (Honours)

SUPERVISOR: Dr. NGUYEN THI MAI TRANG
Ho Chi Minh City - Year 2014

CONTENTS
ABBREVIATION ................................................................................................................5
ACKNOWLEDGEMENT ....................................................................................................6
ABSTRACT..........................................................................................................................7
CHAPTER 1 - INTRODUCTION ...........................................................................................8
1.1 Background to the research ............................................................................................8
1.2 Research problem ...........................................................................................................9
1.3 Research objectives...................................................................................................... 12
1.4 Methodology ................................................................................................................ 13
1.5 Research Structure ....................................................................................................... 13
1.6 Research scope ............................................................................................................. 14
CHAPTER 2 - LITERATURE REVIEW AND HYPOTHESES......................................... 15
2.1 Literature review .......................................................................................................... 15
2.1.1 Collectivism and Individualism ............................................................................ 15
2.1.2 Materialism ............................................................................................................ 17
2.1.3 Status Consumption ............................................................................................... 18
2.1.4 Life satisfaction ..................................................................................................... 19
2.2 Research hypotheses .................................................................................................... 19
2.3 Conceptual model ........................................................................................................ 23
2.4 Summary ...................................................................................................................... 24
CHAPTER 3 - METHODOLOGY ....................................................................................... 25
3.1 Research design ........................................................................................................... 25
3.1.1 Research process ................................................................................................... 25
3.1.2 Measurement scales ............................................................................................... 26
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3.2. Measurement refinement ............................................................................................ 29
3.3 The quantitative study.................................................................................................. 30
3.3.1 Sampling and data collection ................................................................................ 30
3.3.2 Data analysis.......................................................................................................... 30
3.4 Summary ...................................................................................................................... 30
CHAPTER 4 - DATA ANALYSIS AND RESULTS .......................................................... 32
4.1 Data collection ............................................................................................................. 32
4.2 Respondents’ demographics ........................................................................................ 32
4.3 Descriptive statistic ...................................................................................................... 34
4.4 Confirmatory factor analysis (CFA) ............................................................................ 34
4.4.1 CFA for the first-order constructs ......................................................................... 35
4.4.2 CFA for second-order construct ............................................................................ 39
4.4.3 CFA for the final measurement model .................................................................. 40
4.5 Structural equation modeling (SEM) ........................................................................... 44
4.6 Bootstrap method ......................................................................................................... 47
4.7 Discussion .................................................................................................................... 48
4.8 Summary ...................................................................................................................... 53
CHAPTER 5 CONCLUSION, IMPLICATIONS, AND LIMITATION ............................. 55
5.1 Conclusions about hypotheses and research problem ................................................. 56
5.2 Implications for theory and managerial implications .................................................. 60
5.3 Limitations and further research .................................................................................. 62
REFERENCES .................................................................................................................. 64
APPENDICES ................................................................................................................... 69
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LIST OF FIGURES
Figure 1.1 Population Pyramid of Vietnam .......................................................................... 11
Figure 2.1 Conceptual model ................................................................................................ 23
Figure 3.1 Research process .................................................................................................. 26
Figure 4.1 CFA model of collectivism .................................................................................. 36
Figure 4.2 CFA model of individualism ............................................................................... 36
Figure 4.3 CFA model of life satisfaction............................................................................. 37
Figure 4.4 CFA model of status consumption ...................................................................... 37
Figure 4.5 CFA model of materialism .................................................................................. 39
Figure 4.6 Final measurement model .................................................................................... 43
Figure 4.7 Structural results (standardized estimates) .......................................................... 45
LIST OF TABLES
Table 4.1 Source of data collection ....................................................................................... 32
Table 4.2 Respondents’ characteristics ................................................................................. 33
Table 4.3 Descriptive statistic: Eliminated items.................................................................. 34
Table 4.4 Summarized of pvc and pc (first order constructs) ................................................. 38
Table 4.5 Summarized of pvc and pc (second order construct) .............................................. 40
Table 4.6 Correlations (of Materialism)................................................................................ 40
Table 4.7 Summary of pvc and pc (final measurement model)............................................... 41
Table 4.8 Correlations (final measurement model) .............................................................. 42
Table 4.9 CFA Summary of eliminated item ........................................................................ 42
Table 4.10 Unstandardized structural paths .......................................................................... 44
Table 4.11 Measurement validation ...................................................................................... 46
Table 4.12 Regression Weights (bootstrap standard errors) ................................................. 47
Table 4.13 Removed items .................................................................................................... 53
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LIST OF APPENDICES
Appendix A List of in-depth interviews’ participants .......................................................... 69
Appendix B In-depth Interview’ refinement measurement scale ......................................... 69
Appendix C Questionnaire (English Version) ...................................................................... 73
Appendix D Questionnaire (Vietnamese Version) ............................................................... 78
Appendix E Descriptive statistics ......................................................................................... 83
Appendix F Summarized results of Confirmatory factor analysis........................................ 84
Appendix G Standardized Regression Weights (Final measurement model) ....................... 89
Appendix H Final measurement scales ................................................................................. 90
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ABBREVIATION
CIEM Central Institute for Economic Management

CFA Confirmatory Factor Analysis
GDP Gross Domestic Product
GSO General statistics Office of Vietnam
LS Life satisfaction
MAT Materialism
Ministry of industry and trade of the socialist republic of
MOIT
Vietnam
MVS Material values scale
RS Gross retail sales of goods and services
SC Status consumption
SEM Structural equation modeling
SPSS Statistical Package for the Social Sciences
TE Transitional economy
VAMA Vietnam Automobile Manufacturers' Association
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ACKNOWLEDGEMENT
At first, I would like to express my deep gratitude to my supervisor Dr. Nguyen Thi
Mai Trang for her professional guidance, dedicated support, valuable suggestions,
instructions, and encouragements during the time of doing my research.
Secondly, I would like to express my appreciation to Prof. Nguyen Dong Phong,
Prof. Nguyen Dinh Tho, Dr. Tran Ha Minh Quan, Dr. Nguyen Phong Nguyen, and Dr. Tran
Phuong Thao for their valuable time as the members of the ISB research committee. Their
comments and meaningful suggestions are significantly contributed to this research
completion.
Finally yet importantly, my sincere thanks are given to all of my teachers at
International Business School – University of Economics Ho Chi Minh City for their
teaching and guidance during my Master course.
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ABSTRACT
In the Vietnam context after Doimoi, Vietnam was one of the TEs nations strongly
affected by culture transitions, young population, economic and population growth. The
author uses research methods in marketing with an expectation of at first, investigating the
influence of following factors: collectivism, individualism, and materialism on the
consumption behavior – status consumption and the life satisfaction; secondly,
strengthening evidence in Vietnam; thirdly, pointing out useful practical and managerial
implications, which support the nation and enterprises to understand consumers’ needs.
Using the data collection of 427 respondents, the author found that life satisfaction is
motivated by status consumption, which is motivated by collectivism, individualism, and
materialism. Furthermore, the results indicated that collectivism and individualism have a
positive influence on materialism and coexist in Vietnamese consumers. These findings
suggest that the companies should carefully consider the culture elements of their products
or services, in order to segment the customers and to plan an adequate strategy. Besides, the
policy markers should state out the policies, which based on the real demand of status
consumption in Vietnam market, in order to increase the life satisfaction of their citizens.
Key words: status consumption, collectivism, individualism, materialism, life satisfaction
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CHAPTER 1 - INTRODUCTION
1.1 Background to the research

From Doimoi (Economic Renovation) policy of government in 1986, the new
components of economy have formed. Hence, the role of organizations and individuals in
providing goods and service is continuously developing. The open-door policy attracts huge
amount of investment from another developed country (Central Institute for Economic
Management, 2012). The new economic reformation in Vietnam has dramatically changed
the retailing industry. A retail sale of goods and services is an important indicator of GDP
and is the motivation of Vietnam economy. This indicator also reflects the consumption
capability of domestic customers. Along with economic reformation, in 2008, Vietnam
became a lower-middle-income economy and retail sales index rapidly grew up from 0.7
bill VND in 1985 to 2325 bill VND in 2012 (General Statistic Office of Vietnam, 2012).
Total retailed sales of consumer goods and services in the first nine months of 2014 rose by
11.1% from the same period in 2013. If the factor of inflation was excluded, it would be 6.2%.
Totally, retailed sales of goods went up by 10.7%, accommodation and catering services by
11.9%, traveling service by 17.4% (General Statistic Office of Vietnam, 2014) and other
services by 12.5%. This was resulted from many factors, such as the increase in population
(up to 1% per year), the young population of "golden age", the growing proportion of
middle class, government open-door policies, the increasing of foreign investments, and
social exchange resulting in social-psychology shift on consumer values, attitudes and
behaviors (Phương Dung, 2013). In depth, some of these change values are materialism,
self-perception (individualistic self and collectivistic self), sense of life satisfaction, and
status consumption.
Many studies, which are related to materialism, have been investigated all over the
world, essentially the relationship between materialism and consumption behavior; the
differences of materialism either between collectivistic culture and individualistic culture;
or between various demographic variables (age, gender, generation, etc.) (Flynn et al., 2013;
Otero-Lopez et al., 2011; Olivia et al., 2012; Sharma, 2011…). Among consumption
behaviors, previous studies explore the impact of materialism on compulsive consumption
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(Rasool et al., 2012; Xu, 2008); consumer involvement (Browne & Kaldenberg, 1997);
consumer ethic (Olivia et al., 2012); addictive buying (Otero-Lopez et al., 2011); value
consciousness (Sharma, 2011); brand engagement (Flynn et al., 2013).
As defined by Richins and Dawson (as cited in Richins, 2004), materialism is an
over design for material goods and includes three components: success, centrality, and
happiness. The cultural differences of materialism have been researched by various
economists. Watchravesringkan (2012) points out the dissimilarity of materialism in many
countries. The exploration of United State-individualistic culture displays higher degree of
overall materialism than Thailand-collectivist culture does, he concludes that American
participants tend to regard materialism as a sign of success and central to their lives more
often than their Thai counterparts do while participants from both cultures tend to view
materialism as the pursuit of happiness. In like manner, Ogden and Cheng (2011) points out
that a high individualism (low collectivism) score is associated with a high materialism
level and the Chinese are likely more interested in acquiring possessions to display wealth
(MAT-success dimension) and to find happiness (MAT-pursuit of happiness dimension)
than the Canadians. In addition to this, many researches about the effects of MAT on
children and adolescents are progressed due to an apparent shift in social value orientation
in Asian countries such as Hong Kong, China, Singapore, and Thailand (Chan, 2003; Chang
& Wang, 2006; Durvasula & Lysonski, 2010; Ferle & Chang, 2008). The same as MAT,
many studies are interested in status consumption and life satisfaction especially in
transitional economies (TEs), due to their potential markets.
1.2 Research problem

In the past, Vietnamese could have happy life without paying attention on material
values. However, in 21st century, Vietnam is a country which undergoing rapid change. The
rate of population in urban and rural has significant changed from 19/81 in 1986 to 32/68 in
2013, which causes tangible and intangible shifts in economy. Likewise, average monthly
earning of wageworkers has rapidly increased from 206 (000s VND) in 1995 to 4335 (000s
VND) in 2014. Especially in urban area, the shifts of average monthly earning is from 452
(000s VND) in 1995 up to 5119 (000s VND) in 2014. In 2012, about 47.5 percent of the
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population in Vietnam is younger than 30 years old and 29.3 percent in the group age from
30 to 50 years old (General Statistic Office of Vietnam, 2014). In 2014, according to the
population pyramid in Figure 1.1, which illustrates the age and sex structure of a Vietnam's
population in 2014, the rate of population younger than 30 years old is 50.7 percent and the
rate of group age from 30 to 50 years old is 29.3 percent (The world factbook, 2014). These
statistic numbers may provide deep insights about political, social stability, and economic
development, as well as an evidence of high potential market. The younger tend to be more
sensitive to status products or brand names, and they like to talk about their consumption
experiences: what kind of status products they used, how these products look like, what its
utilization is. Additionally, Vietnam has undergone the rapid economic development over
recent years, which results in the different lifestyle of the young Vietnamese from those of
their parents and grandparents. In consequence, it may lead to the more important role of
material possessions to many people. A study of Nguyen (2012) shows that Vietnamese
consumers’ judgment of overall life satisfaction is significantly explained by “defining
success”, “acquisition centrality” and gender. Perhaps, the same as what happened with
China, under the effects of globalization of business and telecommunication and the shift of
Vietnam to a more free-market economy, Vietnam’s values are beginning to change (Ogden
& Cheng, 2011). Furthermore, according to market survey of Taylor Nelson (TNS) the
typical group people, who afford to purchase luxury and expensive products, are in the
group age of 35-54 years old (40%) and have income per month higher than 8.5 million
VND (Sức hút thị trường “hàng hiệu” tại Việt Nam, 2013). Thus, the researcher consider
the group age below 30 years old and high-income group of people from 30 to 50 years old
as potential customers of status consumption field.
As mentioned above, retail sales index grow up rapidly in 2012 and keep rising up to
2014 with the increasing rate of 11.1%. In July 2014, quantity of less than 9-seats used car
are imported into Vietnam’s market with an increment of about 45 percent compared with
those from previous year (Ministry of Industry and Trade, 2014). All of well-known luxury
car brand such as Lexus, Rolls-Royce, Bentley, and Lamborghini… or high-class sport cars
like Mercedes-Benz, Porsche, and Audi… report a stable development in yearly financial
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statement with rate of increasing about 10-15 percent per month. Vietnam Automobile
Manufacturers' Association predicts that the volume of car would be sold in 2014 is about
120,000; there is an increase of 9% compared with 2013 (2014 auto sales likely to rise 9%
year on year, 2014). According to the reports of Ministry of Industry and Trade of the
Socialist republic of Vietnam, under the controlled imported goods, which include luxury
goods, gems, jewelry, mobile, cars… in eight beginning months of 2014 are 3.77 (billion
USD) (increase 12% compared with previous year) (Ministry of Industry and Trade, 2014).
Especially, the first-seven-month import turnover of gems and rare metal was 348.61
million USD, which rises up to 30.21 percent. Hence, Vietnam market is a potential market
for status products, despite the difficult period of economy.
Figure 1.1 Population Pyramid of Vietnam

Source: The world factbook, 2014
In general, customer behavior is a driver of many consuming decisions. For

marketers, a better understanding of how and why people value their possessions would
enable them to serve customers in a better way and a good marketing mix management
helps them maximize value of the customer while provide profit to the firm. Up to present
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time, although many researches have been investigated in both Western and Asian
countries, very few studies explore the perceptions of consumers in Vietnam in terms of the
self-perception (collectivism, individualism), materialism, status consumption, life
satisfaction, and their mutual relationship; and they mostly show these concepts separately
(Nguyen, 2012; Nguyen & Tambyah, 2011; Truong, 2014). Accordingly, this study
attempts to expand the understanding in customer behavior field through examining the
mutual impacts of self-perceptions, materialism, and status consumption on life satisfaction
in Vietnam market. The paper also investigate the relationship between two domains of self-
perceptions (adopted from Singelis 1994 & Singelis et al., as cited in Nguyen & Tambyah,
2011), and three domains of materialism as developed by Richins & Dawson (as cited by
Richins, 2004) separately in combination with status consumption, life satisfaction in
general, and with several domains of life. In addition, it contributes a richer understanding
of internal and external effects on consumer behavior in TEs market, especially those
related to consumption for the sake of status.
1.3 Research objectives

The overall objective of this study is to examine some antecedences and
consequences of status consumption in the Vietnamese context. Specifically, it investigates:
- The relationship between self-perceptions (collectivism and individualism) and status
consumption;
- The relationship between materialism (success, centrality, and happiness) and status
consumption;
- The relationship between status consumption and life satisfaction;
In addition, it examines:
- The relationship between self-perceptions (collectivism and individualism) and
materialism;
- The relationship between materialism (success, centrality, and happiness) and life
satisfaction;
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1.4 Methodology
In this research, two phases of study are undertaken: a qualitative study and a
quantitative study. The questionnaire is translated from English into Vietnamese. Through
qualitative study, in-depth interviews with six people are conducted in order to modify and
revise all observations and to make the improvement for the official questionnaire. In the
quantitative study, the author collects data and tests the measurement models and structural
models.
Due to limited time, the researcher uses a convenient sampling approach. The
method of self-administered survey is employed in this study. In order to obtain a sample
size of about 300, both indirectly method via electronic mail and Google surveys and
directly one via hard copies are used to deliver 550 questionnaires to participants. SPSS 20
and Amos 20 are used to test the model. The researcher uses CFA in order to test the
reliability and validity. Then, SEM is used to test the hypothesized model.
1.5 Research Structure

This thesis includes five chapters:
Chapter 1: Introduction
Chapter 1 presents background to the research, as well as, research problems, research
objectives, research methodology, and structure of thesis.
Chapter 2: Literature Review and Hypotheses
In this chapter, the author reviews the conceptual/theoretical dimensions of the literature
and presents the fundamental ideas about: self-perceptions (collectivism and individualism),
materialism, status consumption, and life satisfaction. Based on the literature review and
research problems, this chapter also describes research model and proposed hypotheses.
Chapter 3: Methodology
This chapter introduces research design, research methodology, and the process of doing the
research to test the hypotheses.
Chapter 4: Research Results
Chapter 4 is designed to present patterns of results and to analyse them for their relevance to
the research questions or hypotheses.
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Chapter 5: Conclusions, Implications and Limitations
The last chapter remarks conclusions about research hypotheses, conclusions about the
research problems, implications for theory, implications for policies and practices.
Accordingly, the limitations are presented to lead to further research.
1.6 Research scope

The findings suggest that current theoretical models tested in developed markets need
considerable modifications when applied in emerging markets context. Therefore, further
researches are required to develop a congruent framework in developing market contexts. In
order to collect data from participants in Ho Chi Minh City, the method of self-administered
survey with the convenience sampling approach was employed for this study. However, the
rate of Vietnam’s population in urban and rural is 32/68 in 2013, which means that not only
urban area, such as Ho Chi Minh City, Hanoi Capital, Da Nang City… but also rural area
can be the potential markets for consumption, especially for consumption based on the
expectation of improving social standing. Thus, status consumption’s prevalence should be
noticed in all areas of Vietnam with wider scope of research and larger sample size. The
convenience sampling which was applied in this research was non-probability sampling. To
increase the generality of sample, the author should consider the probability sampling in
future researches.
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CHAPTER 2 - LITERATURE REVIEW AND HYPOTHESES
This chapter mainly introduces the theories, which are proposed by many scholars in
academic field and are related to all the concepts and research model. Firstly, the author
introduces the definition of collectivism, individualism, materialism, status consumption,
and life satisfaction in sequence. Next, the previous research of these concepts and their
related discussion are mentioned. Finally, based on these theories and the relation of
previous research, the hypotheses of relationship among these constructs and a conceptual
model are proposed.
2.1 Literature review
2.1.1 Collectivism and Individualism

O’Cass and Frost (as cited in Nguyen & Tambyah, 2011) note that different self-
perceptions influent to purchase behaviors and help explain how and why consumers use
products to communicate their image to others. Nguyen and Tambyah (2011) display
Singelis’s argument that two aspects of the self: the independent self and the interdependent
self, which have also been called the individualistic and collectivistic self-concepts, can and
do coexist in individuals.
Geert Hofstede, who had a notable work in culture dimension theory, indicates that
individualism is the concept in which a person conceives him or herself as being separate,
autonomous, and distinct from others, whereby individuals consider his or her interests
more important than those of the group. The individualistic culture orientation is toward
oneself and internal attributes. In an individualist culture, an individual expresses the
independence through acquisition possessions, such as style choices and indicators of
success such as the quantity and quality of one’s possessions. The collectivist individual, on
the other hand, has a lower need for individual recognition. Success for the collectivist is
measured by group success; individuals show a lower tendency to stand out from the group.
Thus, high individualism scores are associated with high materialism both overall and in all
its components (Ogden & Cheng, 2011).
Western cultures such as the United States tend to be more individualistic, whereas
Asian cultures tend to be more collectivistic (Singelis et al., as cited in Le & Stockdale,
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2005). In general, the most apparent difference between Western and Eastern cultures is the
influence of the social expectation on individual development. Matsumoto and Kupperbusch
(as cited in Lee et al., 2010) state that, Western (individualistic) cultures tend to emphasize
independent relationships, personal goals, autonomy, and individual competence and
Eastern (collectivistic) cultures, on the other hand, tend to emphasize interdependent
relationships, group goals, group cohesion, and community cooperation. These two cultural
orientations could influence the developmental process of individuation (Le & Stockdale,
2005).
Although individualism embraces the attitude of autonomy while collectivism
highlights the idea of conformity, most cultures and societies still value some balances of
both autonomy and conformity, though they may prioritize them differently (Lee et. al,
2010). Moreover, in this era of globalization it is hard to conceive that individuals in highly
populated urban areas can be exclusively classified as either collectivistic or individualistic.
Therefore, Lee et al. (2010) suggest that it is more accurate to assess each individual’s
cultural value orientation directly rather than to assume that everyone has the same cultural
value orientation based on his or her regional residency. Given the typical sample sizes and
convenience samples conducted by most researchers, Menon (2004) points out common
inconsistent results that even if one country scores high on a particular dimension, there
could be a wide variation at the individual level. He also alerts to the possibility of within
country differences.
Vietnam is considered a fairly collectivist culture. Because of Confucian roots,
Vietnamese culture as some other Asian culture is strongly orientated around family and
community. Family comes before oneself. Therefore, the Vietnamese tend to value the
group rather than the individual. To bring pride to one’s family or community is the
ultimate goal. However, due to the economic transition, it has been suggested that varying
levels of individualism and collectivism could coexist in Vietnamese consumers (Nguyen &
Tambyah, 2011). As managers from Western countries come to countries with Asian
cultures, such as Vietnam, in order to avoid communication problems and
misunderstandings deriving from these differences, they have to understand the insight
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domestic culture and research Vietnam’s culture at both national level and individual level
thoroughly before embarking on business ventures (Kohl, 2007; Kobayashi et al., 2010).
Besides, the Vietnamese government has to understand inside out the culture orientation of
their citizens to be clear about the domestic market and to state out the adequate policies.
Accordingly, the necessity of expanding researches related to the effect of culture is noticed.
To measure collectivism and individualism, Hofstede’s model (as cited in Ogden &
Cheng, 2011) with its four cultural dimensions, has been widely used to explain many
characteristics across cultures and may apply in this study. However, in accordance with the
research of Nguyen and Tambyah (2011), which is conducted in Vietnam’s market, the
author uses a scale of 14 items (seven items to measure collectivism and seven items to
measure individualism) adopted and modified from the self-construal scale developed by
Singelis (1994) and Singelis et al. (1995). Hence, it is possible to make the comparison
among these studies and increase the strength of evidence.
2.1.2 Materialism
Goldsmith (2012) states that studying consumer motivation is important, due to it
provide the basis for understanding many subsequent consumer behaviors. One of the most
important consumer motives, which attracts a great deal of attention, is an over desire for
material goods. Under perspective of personality trait, Belk (1985) defines materialism as
“the importance a consumer attaches to worldly possessions. At the highest levels of
materialism, such possessions assume a central place in a person’s life and are believed to
provide the greatest sources of satisfaction and dissatisfaction” (p.265). Belk’s scale of
materialism consists of three dimensions: possessiveness, envy, and non-generosity (Belk,
1985). Under perspective of consumer value, Richins and Dawson (as cited in Richins,
2004) develop material values scale (MVS) to examine materialism as a “facet of consumer
behaviors.” Although these two perspectives of materialism have some common items,
Richins and Dawson (as cited in Belk, 1996) defines materialism as “an enduring belief in
the desirability of acquiring and possessing things” and consisting of three components:
acquisition centrality, the role of acquisition in happiness, and the role of possessions in
defining success.
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Unifying these three components, Richins and Dawson (as cited in Richins, 2004)
produce a description of materialism that rests on the two processes of acquisition and
possessions, which organize and guide the materialist’s plans and behaviors under the
expectation of particular consequent end states. In this sense, acquisition and possessions
can be considered as a value structure that is framed in accomplishment, esteem, and life
satisfaction (Hunt et al., 1996). Although materialisms between countries are different due
to the varied cultures (Caldas, 2010; Ger & Belk, 1996; Minkov & Hofstede, 2011), MVS is
already examined the reliability and validation through countries, which are different from
cultures (individualist and collectivist cultures, materialist and non-materialist countries)
(Eastman et al., 1999; Ogden, 2003; Ogden & Cheng, 2011; Ogden & Venkat, 2001;
Watchravesringkan, 2012). In Nguyen’s study (Nguyen, 2012; Nguyen & Tambyah, 2011),
the MVS, which is developed by Richins and Dawson, is used to investigate materialism in
Vietnam market.
2.1.3 Status Consumption

Status consumption is the motivational process by which individuals strive to
improve their social standings through the conspicuous consumption of consumer products
that confer and symbolize status for both the individual and surrounding significant others.
This consumption related need for status is the “tendency to purchase goods and services for
the status or social prestige value that they confer on their owners” regardless of income or
social class level. By another expressing, individuals communicate meaning about
themselves to their reference group by using status goods as symbols (Husic & Cicic, as
cited by Eastman & Eastman, 2011). Investigating by many researchers, status consumption
is positively related to concepts of materialism (Eastman & Eastman, 2011).The period of
transition from centrally planned economy to a market system has provided Vietnamese
consumers with motivations and opportunities for involving in status consumption (as cited
in Nguyen, 2012). Similarly to urban consumers in other TEs, such as Chinese, Thailand,
and Indian, urban Vietnamese consumers, now tend to more desire in luxury goods and
services consumption, and in well-known imported brands owning for an image of status
(Ogden & Cheng, 2011; Shukla, 2010; Truong, 2014).
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2.1.4 Life satisfaction
There are three well-known theories of happiness: Set-Point Theory, Comparison
Theory, and Affect Theory (Veenhoven, as cited in Aydin, 2012). While Comparison
Theory expresses happiness as a continuous judgment process involving the comparison of
our life as it relates to a perceived “ideal life,” Affect Theory defines happiness as an
emotion determined by the subjective assessment of how people feel after considering
everything. Veenhoven (2006) combines the Comparison and Affect theories in order to
define overall happiness. Overall happiness is defined as “the degree to which an individual
judges the overall quality of his life-as-a-whole favorably.” After Doimoi, the living
standard of Vietnamese has been continuously increasing (Phương Dung, 2013), which
might lead to the increasing of life satisfaction (Aydin, 2012). In 2008, Vietnam became a
lower-middle-income economy, which changed life circumstances for ordinary Vietnamese
in a vast number of ways. Policy brief of 2012 reported that in Vietnam, income has a
strong and positive effect on happiness. In the richest income deciles, 70 percent of
respondents are “rather” or “very” pleased with their lives. In the poorest deciles, the
corresponding number is less than 40 percent (Markussen et al., 2012).
2.2 Research hypotheses

Materialism has been recognized as being of primarily cultural in origin. This is not
surprising as culture encompasses so much of life. Van de Vliert (as cited in Ogden &
Cheng, 2011) describes culture as a “rich complex of values and practices passed on and
changed from generation to generation,” a complex that includes language, morals,
religions, and economics and these cultural elements affect how people value their
possessions. An examination of cultural variables might shed some light on the nature of
materialism. First, individualism has been characterized by emotional detachment from in-
groups, primacy of personal goals over in-group goals, competition, and individual
achievement. These values correspond to the goal of conspicuous consumption, which is the
very "public" nature of luxury consumption as a reflection of one’s success and
achievement. Second, collectivism has been described by the attributes of family integrity,
self-definition through social roles, hierarchical social structures, and strong in-group/out-
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group distinctions. In the same way, these values could correspond to the primacy of
personal relationships over "things" and physical possessions. Therefore, individualists are
likely to invest more emotions/self-identities in things, be highly competitive, and value
their own achievement and success. They may also value their possessions more for their
public meaning. On the other hand, collectivists are likely to value things that enhance their
relationships with others within the social in-groups but elevate their social status to
members from these out-groups. As a result, they may value a possession due to its private
meaning (Wong, 1997). Similarly, a study of Ogden and Cheng (2011) indicates that high
individualism scores are associated with high materialism both overall and in all its
components. Thus, the author hypothesizes:
H1: Collectivism is negatively related to Materialism
H2: Individualism is positively related to Materialism
Vietnam is considered potential market, with a population of 93 million and the retail
sales index keeps going up by 11.1% per year. In 2014 July, imported volume of gems, rare
metal, and jewelry grows up by 28%, those number are 22.6% for the mobile, and 77.4% for
less than 9-seats used car. The same with Indian, Vietnamese focus on “success” of MAT as
status component, and this component has most significant link to status consumption
compared to two others components “happiness” and “centrality” (Nguyen & Tambyah,
2011). In model of Nguyen (2011), examining the relationship of status consumption and
materialism, the three components of materialism are separately treated. In another research,
Shukla (2010) addresses the similarities and differences between the status consumption
behaviors among British and Indian consumers (individualist Western developed nations
versus collectivist Eastern emerging nation). He states that consumers from collectivist
culture (Indian) focus on others self-concept, while consumers from individualistic culture
(British) focus on actual self-concept. In the same manner, Wong (as cited in Nguyen &
Tambyah, 2011) argues that the values of individualism correspond to the goal of SC. The
reverse relationship is suggested for collectivism. Nevertheless, in the study of Nguyen and
Tambyah (2011), the proposed hypothesis: “the collectivistic self is negatively related to
SC” has been rejected. Contrary to expectation, the self of collectivism displays a positive
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despite insignificant effect on SC. In the manner of Bagozzi (as cited in Nguyen &
Tambyah, 2011), a possible reason is related to the motivation for SC that could be
‘standing out to fit in’ (the bandwagon effect) or ‘fitting in by standing out’ for consumers
holding collectivistic values. Thus, it is possible that both the individualistic self and
collectivistic self could have a positive impact on SC, but with different motivation
strategies. Therefore, there is the need of investigating the relationship between
individualism, collectivism, and status consumption in order to separate social-driven
consumption (consumption based on collectivism self) from individual-driven consumption
(consumption based on individualism self).
As mentioned above, in this thesis the researcher expects to explore the relationship
among MAT, collectivism, individualism, status consumption and life satisfaction in
Vietnam’s market in period of golden age, potential consumption ability, emergent middle
class and up, and social-culture shift. Moreover, consumers’ motivations in TEs are going to
be explored. In order to support an evidence for status consumption and the impact of
collectivism, individualism, and materialism on status consumption in transitional economy,
especially Vietnam, the researcher hypothesizes:
H3: Collectivism is positively related to Status consumption
H4: Individualism is positively related to Status consumption
H5: Materialism is positively related to Status consumption
A series of researches have been conducted in order to investigate the antecedents of
life satisfaction and their influences. One of these antecedents that attract attention of
researchers is materialism. Many respondents have been involved in the studies of
answering the question: “Are materialists happy?” In most of previous researches, a
negative relationship between materialism and life satisfaction are determined. Kassar (as
cited in Ogden & Cheng, 2011), describing his own work and the research of many others,
reports that people who have a strong materialistic orientation tend to be less happy than
those who do not. He also reports links to such conditions as narcissism, depression and
anxiety, decreased life satisfaction, decreased in the quality of relationships with others, and
even various physical ailments. Jo-Ann et al. (2014) indicates that materialists have
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unrealistically high expectations for the satisfaction that material goods will bring them.
However, the acquisition of possessions is unable to meet expectations, leading to a decline
of positive emotion. In order to maintain positive emotions, materialists may therefore need
to continually search for new purchases, resulting in a chronic dissatisfaction. Analysis
results of Nguyen’s study (2012) as an evidence in Vietnam, points out the similarities, that
the summed measure of materialism is negatively correlated with the overall life satisfaction
but the correlation is quite weak and insignificant. With expectation to strengthen the
evidences of relation between materialism and life satisfaction in Vietnam, the author
predicts the following:
H6: Materialism is negatively related to Life satisfaction
The Vietnamese living standard such as income per month has been improved
recently. This is one of the reasons, which helps to increase Vietnamese life satisfaction.
The rising number of retail sales index reflects the more “generous” consumption behavior
of Vietnamese, which is different from the traditional consumption behavior. Furthermore,
as a consumption trend of young people, the expressions of the uniqueness, personality and
experience through the status products are noticed. As mentioned above, status consumption
is the “tendency to purchase goods and services for the status or social prestige value that
they confer on their owners” regardless of income or social class level (Husic & Cicic, as
cited by Eastman & Eastman, 2011). No matter what motivate consumer purchase status
goods, either social-driven consumption (consumption based on collectivism self) or
individual-driven consumption (consumption based on individualism self), as the status
products purchasing is done, means that the need of enhancing and strengthen consumer’s
status is satisfied, might lead to the satisfaction with life as a whole.
As opposed to the proposed relationship of materialism and life satisfaction,
consumers may still keep positive emotions about their status consumption experience,
although they are seeking for new status products purchases. The over desire for confirming
social status motivates consumers to look forward the status products, which might also
make them temporarily satisfied. Hence, it is expected that the effect of status products on
life satisfaction is positive. In the previous research, through status product ownership and
Page | 22
status consumption satisfaction, status consumption was found to be indirectly positive
related to life satisfaction (Nguyen, 2012). With expectation to extend existing research in
Vietnam, the author examined the direct relationship between status consumption and life
satisfaction, which follow hypotheses:
H7: Status consumption is positively related to Life satisfaction
2.3 Conceptual model
Figure 2.1 Conceptual model

H1: Collectivism is negatively related to Materialism
H2: Individualism is positively related to Materialism
H3: Collectivism is positively related to Status consumption
H4: Individualism is positively related to Status consumption
H5: Materialism is positively related to Status consumption
H6: Materialism is negatively related to Life satisfaction
H7: Status consumption is positively related to Life satisfaction
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2.4 Summary
In summary, according to theoretical points, which are stated in the previous
research, the researcher wants to figure out the research objectives in chapter one in the
Vietnamese context. Adopted by Ogden and Cheng (2011) and Wong (1997), high
individualism scores are associated with high materialism both overall and in all its
components, the author hypothesizes that H1: “Collectivism is negatively related to
Materialism” and H2: “Individualism is positively related to Materialism.” Based on the
study of Nguyen and Tambyah (2011) that indicates the positive influence of collectivism
on SC, the author hypothesizes H3: “Collectivism is positively related to Status
consumption.” In other side, as Wong’s argument (as cited in Nguyen & Tambyah, 2011)
that the values of individualism correspond to the goal of status consumption, the author
suggests H4: “Individualism is positively related to Status consumption.” Adapted from
investigating by many researchers that status consumption is positively related to concepts
of materialism (Eastman & Eastman, 2011) and materialists are less happy than those who
do not, the author hypothesizes H5: “Materialism is positively related to Status
consumption” anh H6: “Materialism is negatively related to Life satisfaction” In order to
confirm the study of Nguyen (2012), the author predicts H7: “Status consumption is
positively related to Life satisfaction.” The conceptual model with all seven hypotheses are
shown in Figure 2.1.
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CHAPTER 3 - METHODOLOGY
In this chapter, whole procedure of research, including qualitative and quantitative

studies, is described. In order to modify and refine the measures, the qualitative phase
involves in-depth interviews. Through the modified questionnaire survey, the data
collection of quantitative survey is used to test the measurement and structural models.
Chapter 3 is a description of research design, research process, sampling method, data
analysis, measurement scale, and the modification.
3.1 Research design
3.1.1 Research process

Two phases of the study were undertaken in this research: a qualitative study and a
quantitative study. Based on the previous research and the Vietnamese context, the draft
questionnaire consisted of five measurement scales, which were collectivism, individualism,
materialism, status consumption, and life satisfaction. Then, the draft questionnaire was
translated from English into Vietnamese. Through the qualitative study, in-depth interviews
with six people were conducted in order to modify and revise all observed items of the draft
questionnaire to make improvement for the official questionnaire. In the quantitative study,
the author used adjusted questionnaire to collect data and test the measurement models and
structural models. Due to the limit of time, the method of self-administered survey with the
convenience sampling approach was employed for this study. In order to obtain a sample
size of about 300, both indirect method via electronic mail and Google survey and direct
one via hard copies were used to deliver 550 questionnaires to participants in Ho Chi Minh
City.
SPSS 20 and Amos 20 were used to test the model. For the reliability and validity,
the researcher tested by running CFA. Then, SEM was used to test the hypothesized model
(see Figure 3.1).
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Figure 3.1 Research process
3.1.2 Measurement scales
As mentioned above, the draft questionnaire consisted of five measurement scales:
collectivism, individualism, materialism, status consumption, and life satisfaction.
Status consumption
For status consumption, Eastman et al.’s (1999) measure was used to measure the
motivation to consume for status. This scale included five items, which exam the customers’
level of seeking for status. The more consumers seek status, the more he would engage in
behaviors, such as the consumption of status goods, which increased his status (Eastman et
al., 1999).
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Status Consumption (adopted from Eastman et al., 1999) Coding
1. I would buy a product just because it has status. StatusC1
2. I am interested in new products with status. StatusC2
3. I would pay more for a product if it had status. StatusC3
4. The status of a product is irrelevant to me. (r) StatusC4
5. A product is more valuable to me if it has some snob StatusC5
l
Collectivism and individualism
To measure the two aspects of self (the collectivistic self and the individualistic self),
the author used a scale of 14 items (two subscales) adopted and modified from the self-
construal scale developed by Singelis (1994) and Singelis et al. (1995) (as cited in Nguyen
& Tambyah, 2011).
Collectivism (adopted from Singelis 1994 and Singelis et al., as
Coding
cited in Nguyen and Tambyah, 2011)
1. It is important for me to maintain harmony within my group. Col1
2. My happiness is influenced by the happiness of those around
Col2
me.
3. I will sacrifice my self-interest for the benefit of the group I
Col3
am in.
4. I often have the feeling that my relationships with others are
Col4
more important than my own accomplishments.
5. It is important to me to respect decisions made by the group. Col5
6. I will stay in a group if they need me, even when I am not
Col6
happy with the group.
7. Even when I strongly disagree with group members, I avoid
Col7
an argument.
Individualism (adopted from Singelis 1994 and Singelis et al., as
cited in Nguyen and Tambyah, 2011)
1. I prefer to be straightforward when dealing with people I
Ind1
have just met.
2. I enjoy being unique and different from others in many
Ind2
respects.
3. Speaking up in public is not a problem for me. Ind3
4. Being able to take care of myself is a primary concern for Ind4
me.
5. My personal identity independent of others is very important
Ind5
to me.
6. Without competition, it is not possible to have a good
Ind6
society.
7. I enjoy working in situations involving competition with
Ind7
others.
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Materialism
Measurements of overall materialism and three components of Materialism were
based on the short version of Richins and Dawson (as cited in Richins, 2004) scales. The
scale consisted of 15 items. As being mentioned in chapter 2, three components of
materialism were treated as a whole of materialism. Instead of six and seven items as used
widely in literature as recommended by Richins (2004), both “success” and “centrality”
were measured by five items. While “success” reflected the use of possessions to judge the
success of others and oneself, “centrality” meant the position of possessions in a person’s
life. “Happiness,” which expresses the belief that possessions and their acquisition lead to
happiness and life satisfaction, was measured by five items scale (Richins, 2004).
Materialism (adopted from Richins and Dawson (1992) and
Coding
Richins (2004))
Success
1. Some of the most important achievements in life include
MatSucc1
acquiring material possessions.
2. I admire people who own expensive homes, cars, and MatSucc2
clothes.
3. I don’t place much emphasis on the amount of material
MatSucc3
objects people own as a sign of success.(r)
4. The things I own say a lot, about how well I am doing in life. MatSucc4
5. I like to own things that impress people. MatSucc5
Centrality
1. I try to keep my life simple, as far as possessions are
MatCen1
concerned.(r)
2. The things I own aren’t all that important to me.(r) MatCen2
3. Buying things give me a lot of pleasure. MatCen3
4. I like a lot of luxury in my life. MatCen4
5. I put less emphasis on material things than most people I
MatCen5
know.(r)
Happiness
1. I have all the things I really need to enjoy life.(r) MatHap1
2. I wouldn’t be any happier if I owned nicer things.(r) MatHap2
3. It sometimes bothers me quite a bit that I cannot afford to
MatHap3
buy all the things I would like.
4. My life would be better if I owned certain things I do not
MatHap4
have.
5. I would be happier if I could afford to buy more things. MatHap5
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Life satisfaction
Five items, which were modified and refined by Nguyen (2012), were used to
measure life satisfaction. These five items would indicate respondents’ level of agreement
with the statements relating to satisfaction with their life as a whole and three individual
‘life domains’ including family, friends, and living standard (Nguyen, 2012). The validity
and reliability in Vietnam concepts had been tested by Nguyen (2012).
Life satisfaction (adopted from Nguyen and Tambyah, 2011) Coding
1. Generally, I’m satisfied with my life as a whole LifeS1
2. Generally, I’m satisfied with my family life LifeS2
3. Generally, I’m satisfied with my relationships with friends LifeS3
4. Generally, I’m satisfied with my standard of living LifeS4
5. In general, I can say I have a good life. LifeS5
In this study, all 39 items of 07 factors were measured by a seven-point Likert scale
from “1 = strongly disagree” to “7 = strongly agree”.
3.2. Measurement refinement

In qualitative study, all observed items of draft questionnaire were translated into
Vietnamese. The representative respondents were chosen from varied demographic
characters, in order to make sure the official questionnaire survey was easy to understand by
most of participants. Accordingly, the in-depth interviews with six participants were
undertaken with draft questionnaire. List of participants is descripted in Appendix A. All the
comments and recommends are taken note in the Appendix B. Changes for the Vietnamese
version were made for the purpose of accuracy and clarity. Although most of the scales
were used widely in the previous research, this study was important before launching the
quantitative survey due to the differences in the research setting: applying in the Vietnamese
context. In the end of this study, the modification and revision of questionnaire survey are
noticed in Appendix B. The official questionnaire surveys are shown in Appendix C for
English version and Appendix D for Vietnamese version.
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3.3 The quantitative study
3.3.1 Sampling and data collection

Due to limited time, the convenience sampling approach was conducted in Ho Chi
Minh City. The method of self-administered survey was employed for this study, which
consisted of 07 factors and 39 variables. Thus, the minimum sample size was determined by
equation: n=39*7=273 observations. With expectation to obtain a sample size of about 300,
about 550 questionnaires were delivered to participants.
3.3.2 Data analysis
Both SPSS 20 and Amos 20 were used to test the model. The author ran Amos 20 for
CFA and SEM with purpose of enhancing the value of the model. The CFA results would
indicate the model fit if CMIN/DF was less than 3 with p-value larger than 5%, GFI, RFI,
and CFI were larger than 0.9, and RMSEA was smaller than 10%. Based on composite
reliability (CR), the author evaluated the measurement scale’s reliability and used average
variance extracted (AVE) to conclude the convergent validity and the correlation between
items (r) to identify the discriminated validity. Then structural equation modeling (SEM)
was used to test the hypothesized model and was applied to estimate path coefficients for
each proposed relationship in the structural model. Finally, bootstrap was used to re-test the
suitable and reliability of our model.
The seven constructs of this study were Collectivism, Individualism, MAT-Success,

MAT-Centrality, MAT-Happiness, Life satisfaction, and Status consumption. As Life
satisfaction, Status consumption, and all components of MAT were endogenous variables,
Collectivism and Individualism were exogenous ones. The next chapter would present data
analysis results of quantitative survey.
3.4 Summary
In summary of chapter three, questionnaire survey was designed based on previous
measurement scales. Specifically, scales of collectivism and individualism consisted 14
items adopted from Singelis 1994 and Singelis et al. (as cited in Nguyen & Tambyah,
2011). Scale of status consumption included 05 items, which adopted from Eastman et al.
Page | 30
(1999). Scale of materialism consisted of 15 items based on scale of Richins and Dawson
(1992) and Richins (2004), and scale of life satisfaction was made up of 05 items from
research of Nguyen and Tambyah (2011). Modifications for the Vietnamese version and
English version of questionnaire were conducted due to the necessary of accuracy and
clarity. Totally, measurement scales included 39 items had been used to formulate the
questionnaire survey, which had been delivered to 550 respondents.
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CHAPTER 4 - DATA ANALYSIS AND RESULTS
Chapter 4 presents the analysis results, which included respondents’ demographics,

descriptive statistic, confirmatory factor analysis, structural equation modeling, bootstrap
method, and the explanation for the finding results. While respondents’ demographic made
the review of sample’s characters, the descriptive statistic tested the normal distribution of
variables. Then, CFA examined the reliability and validity of the first order constructs, the
second order construct and the final measurement model. SEM was used to test the
conceptual model and bootstrap method was used to measure the parameter estimates.
Based on the analysis’s results, the explanation for finding research was discussed.
4.1 Data collection

After data collection, total 463 responses were collected; the response rate was
approximately 84 percent (Table 4.1). Then, total 26 questionnaires were eliminated
because they were invalid (respondents just chose one option for all questions or their
answers were implausible). Finally, 427 questionnaires were used as valid data for this
research. In comparison with minimum sample size, this number of data was satisfactory.
Table 4.1 Source of data collection

Source Distributed Collected Response rate Eliminated Valid
Paper 120 114 95% 22 82
Google survey 430 349 81% 4 345
Total 550 463 84% 26 427
4.2 Respondents’ demographics

Total 427 responses were used for data analysis. The collected data was analyzed by
using the SPSS – Statistical software package. This part aims to provide the general
information of respondents. The results of descriptive statistic of data are summarized in
Table 4.2. Initial analysis of data indicated that gender was close to the balance between
female (52.7 percent) and male (47.3 percent). The same with gender, marital status had a
half-half ratio for single (50.4 percent) and married (48.0 percent). Divorce was a very small
part of marital status with 1.6 percent of respondents. Therefore, it was not worth to be
Page | 32
considered. The equal ratio of gender and marital status helped to avoid bias of analysis
results. Age group from 24 to 30 years old was dominant with 41.5 percent of total sample.
Age ranged from 18 years old, with 18.3 percent of the respondents was between 18 and 23
years old, 32.6 percent was from 31 to 40 years old, 5.2 percent was from 41 to 50 years
old, and 2.6 percent was older than 50 years old. Specifically, 74.1 percent of respondents,
who were from 24 to 30 years old (41.5 percent) and 31 to 40 years old (32.6 percent), were
representative for 8-x generation. 8-x generation was considered the innovation group, who
very fast caught up the trend of consumption from all over the world. The differentiation
among age groups might affect the result of data analysis.
Income per month was investigated within five groups. Most of respondents came
from income group from 05 to 10 million VND per month (36.1 percent). In the second
place, group of below 05 million VND seized 23.4 percent of respondent. 17.8 percent of
respondents revealed that their income ranged from 10 to 15 million VND and 15.0 percent
earned above 20 million VND every month. The last portion with the lowest percentages
(7.7 percent) was the respondents with the income fluctuated from 15 to 20 million VND
per month. Average income per month of urban community in Vietnam was about 5 million
per month (General Statistic Office of Vietnam, 2014). Thus, below 5-million-group (23.4
percent) and from 05- to 10-million-group were considered the low-income and average
income. Almost people in these groups firstly concerned about basic needs (food, clothing,
shelter…) before moving their attention to another stage of needs, except people who were
living with their parents and relatives. Hence, this might affect the affordability of buying
status products and on the sense of life satisfaction. Moreover, these income groups might
not reflect the whole picture. Due to cultural behaviors, respondents might intentionally
understand the phrase “income” as their wage but not their “total inflow of asset.”
Table 4.2 Respondents’ characteristics

Demographic profile Category Frequency Percentage (%)
Male 202 47.3
Gender Female 225 52.7
Total 427 100
Single 215 50.4
Marital status
Married 205 48.0
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Divorce 7 1.6
Total 427 100
18 – 23 78 18.3
24 – 30 177 41.5
31 – 40 139 32.6
Age group
41 – 50 22 5.2
Over 50 11 2.6
Total 427 100
Below 5 100 23.4
5 – 10 154 36.1
Income per month 10 – 15 76 17.8
(million VND) 15 – 20 33 7.7
Above 20 64 15.0
Total 427 100
4.3 Descriptive statistic
Descriptive statistic was run to test whether variables distribute in normal
distribution or not. The values of Kurtosis and Skewness equal or smaller than |2| were
considered well. Examining the individual factor as shown in Appendix E, items Col1 and
Col2 had values of Kurtosis and Skewness larger than |2|, so they were excluded from the
analysis (see Table 4.3). The rest 37 of 39 observed items were moved to the next step of
analysis.
Table 4.3 Descriptive statistic: Eliminated items

Stage No. of Name of items Note
items
Descriptive 02 Col1: It is important for me to maintain harmony Kurtosis
statistic within my group and
Col2: My happiness is influenced by the happiness of Skewness
those around me >|2|
4.4 Confirmatory factor analysis (CFA)
Amos 20 ran for CFA with purpose of testing the reliability and validity of
measurement model. The CFA results indicated the model fit if CMIN/df was less than 3
with p-value larger than 5 percent. The goodness of fit index (GFI) was a measure of fit
between the hypothesized model and the observed covariance matrix. The GFI ranged
between 0 and 1, with a cutoff value of 0.9 generally indicating acceptable model fit. The
comparative fit index (CFI) analyzed the model fit by examining the discrepancy between
Page | 34
the data and the hypothesized model, while adjusting the issues of sample size inherence in
the chi-squared test of model fit, and the normed fit index. The non-normed fit index
(NNFI; also known as the Tucker-Lewis index-TLI) resolved some of the issues of negative
bias, though NNFI values may sometimes fall beyond the 0 to 1 range. Values for both the
NFI and NNFI should range between 0 and 1, with a cutoff of .95 or greater, indicating a
good model fit. A CFI value of 0.90 or larger was generally considered to indicate
acceptable model fit. The root mean square error of approximation (RMSEA) avoided
issues of sample size by analyzing the discrepancy between the hypothesized model, with
optimally chosen parameter estimates, and the population covariance matrix. A value of
0.06 or less was indicated an acceptable model fit. Based on composite reliability (CR), the
author evaluated the measurement scale’s reliability. According to CFA results, average
variance extracted (AVE) was used to conclude the convergent validity and correlation
between items (r) was used to identify the discriminate validity. Then, structural equation
modeling (SEM) tested the hypothesized model and estimated path coefficients for each
proposed relationship in the structural model. As we mentioned above, six measurement
scales, which were sufficient for convergent and discriminant validity, were analyzed by the
Confirmatory factor analysis before the hypothesized model was tested by SEM. The first-
order constructs were collectivism, individualism, life satisfaction, and status consumption.
The second-order construct was materialism, which consisted of three sub-components:
success, centrality, and happiness.
4.4.1 CFA for the first-order constructs

After eliminating two observed items Col1 and Col2, collectivism was measured by
5 items. For the first run of CFA, the CFA model of collectivism fitted the data well.
However, the factor loading of Col7 was not significant (.379 < 0.5). The author removed
Col7 and re-tested the constructs. In consequence, as shown in Figure 4.1, the research had
the model fit (Chi-square=1.713; df=1; Chi-square/df=1.713; P=.191; CFI=.998; TLI=.987;
NFI=.995; RMSEA=.041).
Page | 35
Figure 4.1 CFA model of collectivism
For the first run of CFA, standardized regression weights of Ind1, Ind 2, Ind3, and
Ind4 were lower than 0.5 (0.29, 0.33, 0.41 and 0.21 in sequence). After removing items one
after another from the smallest factor loading, the model of individualism was measured by
three items: Ind5, Ind6, and Ind7. Although factor loading of Ind5 was smaller than 0.5, the
author decided not to eliminate Ind5 to retain the content validity of construct. Figure 4.2
and Appendix F displayed the result of CFA analysis.
Figure 4.2 CFA model of individualism

The same as collectivism, the model of life satisfaction did not fit the data for the
first running (Chi-square/df = 7.444 largely higher than 3). After addressing the largest
modification indices, CFA model of life satisfaction had a good model fit. The factor
loading of all observed items of life satisfaction were significant (>0.6). Figure 4.3
displayed the model fit of life satisfaction.
Page | 36
Figure 4.3 CFA model of life satisfaction
In the common with collectivism and life satisfaction, the author noticed the largest
modification indices of status consumption model. Then, the data set of status consumption
fitted the model well (Chi-square=3.071; df=3; Chi-square/df=1.024; P=.381; CFI=1.000;
TLI=.999; NFI=.994; RMSEA=.007) (see Figure 4.4).
Figure 4.4 CFA model of status consumption

For each construct, the author tested the reliability and convergent validity by
calculating composite reliability and averaged variance extracted values based on items’
standardized regression weight. Composite reliability of Collectivism, Status consumption,
and Life satisfaction were larger than 0.7, while the value of Individualism was larger than
0.68. Thus, reliability of first order constructs was acceptable.
Page | 37
Table 4.4 Summarized of pvc and pc (first order constructs)
Standardized
pc pvc
regression weight
Col4  COL 0.72 0.76 0.44
Col3  COL 0.61
Col5  COL 0.62
Col6  COL 0.70
Ind6  IND 0.57 0.68 0.45
Ind5  IND 0.39
Ind7  IND 0.93
StatusC1  StatusC 0.69 0.76 0.39
StatusC2  StatusC 0.70
LifeS5  LifeS 0.77 0.86 0.56
LifeS4  LifeS 0.76
Except the averaged variance extracted value of Life satisfaction was high (pvc
=0.56), value of the rest first order constructs were acceptable (>0.39). In summary, the
CFA model of the first-order constructs including collectivism, individualism, life
satisfaction, and status consumption fitted the data well. All the data analysis is presented in
Table 4.4 and Appendix F.
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4.4.2 CFA for second-order construct
Figure 4.5 CFA model of materialism

The second-order construct was materialism, which measured by three sub-
components: Materialism-Success, Materialism-Happiness, and Materialism-Centrality. For
the first run of CFA model, the data did not fit the model and standardized regression
weight of MatCen5 was smaller than 0.5. After removing MatCen5 and addressing the
largest modification indices, the model fitted well with the dataset (Chi-square=159.39;
df=65; Chi-square/df=2.452; P=.000; CFI=.954; TLI=.935; NFI=.926; RMSEA=.059) and
all of the items had significant factor loading (>0.54) (see Figure 4.5). Examining the
reliability of materialism, the composite reliability (pc = CR) values of MatSuc and MatHap
were high (>0.80) and MatCen’ one was acceptable (=0.65). About the convergent validity,
the averaged variance extracted (pvc = AVE) value of three materialism’s subcomponents
were acceptable (>0.32). The correlation between the components of construct, together
with their standard errors, noticed that they were significant less than unity. These findings
Page | 39
supported reliability, convergent validity, and within-construct discriminant validity. (See
Table 4.5, Table 4.6, and Appendix F)
Table 4.5 Summarized of pvc and pc (second order construct)

Standardized
pc pvc
regression weight
MatSucc5  MatSuc 0.72 0.80 0.44
MatSucc4  MatSuc 0.62
MatCen4  MatCen 0.59 0.65 0.32
MatCen3  MatCen 0.58
MatHap5  MatHap 0.74 0.83 0.50
MatHap4  MatHap 0.72
Table 4.6 Correlations (of Materialism)

Estimate
MatSuc  MatCen .853
MatSuc  MatHap .627
MatCen  MatHap .852
4.4.3 CFA for the final measurement model

Running the CFA for the final measurement model, the author considered to retain Ind5,
MatCen1, and MatCen2 in the manner of content validity, their factor loadings were lower
than 0.5 though (0.441, 0.472, and 0.488 in sequence). The factor loadings of the rest items
were significant and substantial (>0.5, p<0.001) (see Table 4.7).
Page | 40
Table 4.7 Summary of pvc and pc (final measurement model)
Standardized
regression pc pvc
weight
Col6  COL 0.566 0.76 0.44
Col5  COL 0.809
Col4  COL 0.533
Col3  COL 0.719
Ind7  IND 0.834 0.68 0.43
Ind6  IND 0.625
Ind5  IND 0.441
StatusC5  StatusC 0.676 0.78 0.42
LifeS5  LifeS 0.745 0.86 0.56
MatCen4  MatCen 0.553 0.60 0.27
MatSucc5  MatSuc 0.676 0.78 0.41
MatHap5  MatHap 0.749 0.83 0.49
Except average variances extracted value of Materialism-Centrality was passable

(=0.27), values of the rest scales were averagely high (≥0.41). Besides, the composite
reliabilities of almost scales were high (≥0.71), except tolerable values of Individualism and
Materialism-Centrality (see Table 4.7). These findings indicated that all scales measuring
the first-order constructs and the components of the second-order construct were uni-
dimensional (Fornell and Larcker, as cited in Nguyen, 2007) and within-method convergent
Page | 41
validity was achieved (Steenkamp & Van Trijp, as cited in Nguyen, 2007). Moreover, the
correlations between constructs indicated that they were significantly less than unity (see
Appendix F). These findings again confirmed within-construct discriminant validity. Table
4.9 expresses the summary of items, which had been removed in confirmatory factor
analysis due to factor loading smaller than 0.5. All of the rest observed items were run as a
whole for the final measurement model. The Figure 4.6 displays the final measurement
model, which also achieved a good fit to the data. Table 4.11 summarizes the results of
measurement validation, and Appendix G presents the standardized item loadings.
Table 4.8 Correlations (final measurement model)

Estimate
COL  IND .382
COL  StatusC .286
COL  LifeS .182
COL  MAT .210
IND  StatusC .339
IND  LifeS .330
IND  MAT .272
StatusC  LifeS .228
StatusC  MAT .488
LifeS  MAT .118
Table 4.9 CFA Summary of eliminated item

No. of
Stage Name of items Note
items
First order 05 Col7: Even when I strongly disagree with group
construct members, I avoid an argument.
Ind1: I prefer to be straightforward when dealing
with people I have just met.
Ind2: I enjoy being unique and different from Factor
others in many respects loading < 0.5
Ind3: Speaking up in public is not a problem for
me
Ind4: Being able to take care of myself is a
primary concern for me
Second order 01 MatCen5: I put more emphasis on material things Factor
construct than most people I know loading < 0.5
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Figure 4.6 Final measurement model
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4.5 Structural equation modeling (SEM)
The structural equation modeling results indicated that the theoretical model had a fit
to the data: χ2 [406] = 798.654 (p = 0.000); CFI=.912; TLI=.900; NFI=.839; RMSEA=.048.
The results supported five of seven hypotheses. All of regression weight values were
positive, thus H1 and H6 were not supported by the data set of research (H1: Collectivism is
negatively related to Materialism, H6: Materialism is negatively related to Life
satisfaction). Hence, H1 and H6 should be rejected. The unstandardized estimates are
presented in Table 4.10, and the standardized estimates are in Figure 4.7.
Table 4.10 Unstandardized structural paths

Hypotheses structural paths Testing result Est.(se) CR p-value
Collectivism is negatively related to
H1 Not supported 0.15(0.075) 1.956 0.050
Materialism
Individualism is positively related to
H2 Supported 0.32(0.102) 3.162 0.002
Materialism
Collectivism is positively related to Status
H3 Supported 0.15(0.063) 2.349 0.019
consumption
Individualism is positively related to Status
H4 Supported 0.24(0.086) 2.835 0.005
consumption
Materialism is positively related to Status
H5 Supported 0.38(0.062) 6.104 ***
consumption
Materialism is negatively related to Life
H6 Not supported 0.01(0.063) 0.113 0.910
satisfaction
Status consumption is positively related to
H7 Supported 0.24(0.074) 3.274 0.001
Life satisfaction
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Notes: p<0.1: (+), p<0.05: (*), p<0.01 (**), p<0.001 (***)
Figure 4.7 Structural results (standardized estimates)
In summary, based on the results above, the theoretical model was fitted to the data.
Measurement validation is shown in Table 4.11. Hypotheses H2, H3, H4, H5, and H7 were
all supported and H1 and H6 could not be accepted by the data set in the research. The
discussion is mentioned in the next part.
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Table 4.11 Measurement validation
Constructs Dimension Correlation r(se) pc pvc
Collectivism: χ2[1] = 1.71 (p > 0.191); CFI=.998; TLI=.987; NFI=.995; RMSEA=.041 0.76 0.44
Life satisfaction: χ2[3] = 1.29 (p > 0.273); CFI=.999; TLI=.997; NFI=.996; RMSEA=.026 0.86 0.56
Status consumption: χ2[3] = 1.024 (p > 0.381); CFI=1.000; TLI=.999; NFI=.994; RMSEA=.007 0.76 0.39
Individualism: χ2[1] = .22 (p > 0.636); CFI=1.000; TLI=1.012; NFI=.999; RMSEA=.000 0.68 0.45
Materialism-Success (MatSuc) MatSuc  MatHap 0.50(0.070) 0.80 0.44

Materialism: χ2[65] = 2.45 (p = 0.000);
CFI=.954; TLI=.935; NFI=.926; Materialism-Centrality (MatCen) MatSuc  MatCen 0.62(0.083) 0.65 0.32
RMSEA=.030
Materialism-Happiness (MatHap) MatCen  MatHap 0.78(0.103) 0.83 0.50
Final measurement model Correlation r(se)
χ2[404] = 776.89 (p = 0.000); CFI=.917; Collectivism  Materialism 0.164(0.050)
TLI=.904; NFI=.843; RMSEA=.047 Collectivism  Individualism 0.210(0.049)
Collectivism  Status consumption 0.205(0.050)
Collectivism  Life satisfaction 0.133(0.044)
Individualism  Materialism 0.179(0.048)
Individualism  Status consumption 0.204(0.047)
Individualism  Life satisfaction 0.203(0.046)
Materialism  Status consumption 0.418(0.068)
Materialism  Life satisfaction 0.102(0.050)
Life satisfaction  Status consumption 0.182(0.048)
Notes: r(se): correlation (standard error); pc = composite reliability; pvc = average variance extracted
Page | 46
4.6 Bootstrap method
The bootstrap method with 500 of bootstrap samples was used to estimate the
parameter of model and to find approximate standard errors, which were used to measure
the reliability of the parameter estimates. As shown in Table 4.12, the variations between
Bias and SE-Bias were small and critical value ratios were suitable (|t| ≤ 2). In special,
almost parameters have significant critical value ratios (|t| ≤ 1) except the relation between
COL and MAT, StatusC and MAT, StatusC and LifeS. Accordingly, it could be concluded
that estimated results in the research model could represent for overall.
Table 4.12 Regression Weights (bootstrap standard errors)

SE-
Parameter SE SE-SE Mean Bias t = Bias/SE-Bias
Bias
MAT  COL 0.111 0.004 0.141 -0.007 0.005 -1.40
MAT  IND 0.134 0.004 0.325 0.004 0.006 0.67
StatusC  COL 0.081 0.003 0.152 0.003 0.004 0.75
StatusC  IND 0.099 0.003 0.245 0.003 0.004 0.75
StatusC  MAT 0.067 0.002 0.373 -0.006 0.003 -2.00
LifeS  MAT 0.083 0.003 0.008 0.001 0.004 0.25
LifeS  StatusC 0.088 0.003 0.233 -0.008 0.004 -2.00
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4.7 Discussion
According to the literature and recent empirical research, the author defined two
variables (Collectivism and Individualism) that impact on Materialism, three variables
(Collectivism, Individualism, and Materialism) that has influences on consumers behavior
to purchase status goods or services (Status consumption), and two variables (Materialism
and Status consumption) that impact on Life satisfaction. However, the study findings
suggested that the proposed negative relationship of Collectivism and Materialism and the
anticipated negative impact of Materialism on Life satisfaction were not confirmed, which
were against with hypotheses H1 and H6. This meant that either the individualists or the
collectivists had over desire for material goods and considered acquisition possessions as
their measure of success, centrality, and happiness. Besides, materialism was noticed not to
be related to the life satisfaction. These findings were different from the results from
previous empirical studies (Caldas, 2010; Nguyen, 2012; Ogden & Cheng, 2011; Jo-Ann et
al., 2014; …).
Regarding this finding, in order to explain and confirm these outcomes in practice,
the author considered the bias possibility of collected samples and the suggestion based on
previous research and theories was identified. Furthermore, in order to explain and confirm
these outcomes in practice, the author also conducted the in-depth interviews with 06
respondents about the reasons why collectivism had the positive effect on materialism and
the irrelevance of materialism and life satisfaction. These respondents were people who
involved in qualitative study and had a basic knowledge about the research concepts and
items. Surprisingly, respondents’ answers in in-depth interviews represented the practical,
positive, and varied views. In contrast with a proportion of press shifting the responsibility
to the “keeping up with the Joneses” routine of young generations. The detailed discussions
were presented as follow:
Hypothesis H1: Collectivism is negatively related to Materialism
In the contrast to proposed hypothesis, the positive effect of collectivism on
materialism was identified. A possible reason for this could be explained by concepts of
Maslow’s theory of needs: the low self-esteem needs respect from others, the needs for
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status, recognition, fame, prestige, and attention, and the high self-esteem need for self-
respect, the needs for strength, competence, mastery, self-confidence, independence, and
freedom (Maslow, 1987). Vietnamese as collectivists, who tend to have low self-esteem,
need to be recognized and respected by others. Collectivist societies such as Vietnam indeed
tend to produce more stable social relationship and to seek the approval of others. By
acquisition possessions, Vietnamese consumers could gain attention from the others in order
to protect and augment their face, honor, and public reputation (Ahuvia, 2002). It is like two
sides of a coin where individualist and collectivist have over desire for material goods for
varied purposes. In countries with transitional economies, such as Vietnam, coexist of
traditional culture-collectivism and western culture-individualism and the importance of
acquisition possessions could be noticed.
In 2014, according to population pyramid in Figure 1.1, which illustrates the age and
sex structure of a Vietnam's population in 2014, the rate of population younger than 30
years is 50.7 percent and the rate of group age from 30 to 50 years old is 29.3 percent (The
world factbook, 2014). As analyzed in chapter three, 74.1 percent of respondents, who were
from 24 to 30 years old (41.5 percent) and 31 to 40 years old (32.6 percent), were
representative for 8-x generation. 8-x generation was considered the innovation group, who
very fast caught up the trend of consumptions from all over the world. 74.1 percent of
young respondents might result in the positive effect of collectivism on materialism.
Besides the effect of globalization, the development of information technology, internet,
and social networks such as Facebook, Twitter, and blogs… had significant influences on
young generations. They became more individualism by personality and more collectivism
through the division of social group by the similarities. Through social groups, young
people tried to build and show up their uniqueness and their experience, which were visible
as the over desire for material goods. The younger tend to be sensitive to status products or
brand name, they like to talk about their consumption experience, such as what kind of
status products they used, how these products look like, what its utilization is (Cá nhân hóa
và tăng tính trải nghiệm cuộc sống, 2012). Acquisition possessions such as acquisition
status products were displayed as an indicator and an icon of young generations to
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demonstrate their personality, uniqueness, and experience. In other words, young people
expressed their personality by their individual choice based on social trend and based on the
impact of the others (such as communities, groups, clubs, and social networks).
Furthermore, the rapid economic development, which Vietnam has undergone over recent
years, means that the young Vietnamese have different lifestyle from those of their parents
and grandparents. In consequence, it may lead to the more important role of material
possessions to young generation in satisfying their intrinsic goals (self-acceptance, self-
regard, autonomy…) but not extrinsic goals (social recognition, maintaining face, social
prestige…) as their older generation. However, this result was against the finding of
Watchravesringkan et al. (2013), which indicated a negative relationship between
materialism and collectivism in both Thai and Chinese samples, despites the non-
significant. Hence, it is necessary to deeply investigate in future research.
According to the record of in-depth interview, the respondents thought that the
research result: collectivism had the positive effect on materialism was derived from the
following. Firstly, Vietnam was a developing country; many things were “borrowed” from
others, so the culture was also easily affected by outside factors. As the consequence of the
economic reformation, Vietnamese people were individualizing as well as collectivizing
through the division of small groups, they paid more attention to individuals and
families/relatives, or social networks such as Facebook, Twitter, and blogs, than the society
and community, and they considered these groups are a part of them. Especially, due to the
new lifestyle, many urban children were attended carefully. Living in a wealthy life makes
the risk of personally experiencing serious poverty seem small (Ahuvia, 2002), so that the
urban children usually had the enjoyment trend, the simpler, and the more selfish thought.
Secondly, almost respondents said that there was nothing like the complete innocent
sacrifice for communities. Consumers always make their decisions based on their own
values and benefits while at the same time, they want to make people think that they are
living because of others. Moreover, particular circumstances and conditions would affect
the consumers’ choices. Finally, some respondents also noticed the “free choice right”. In
like manner, Ahuvia (2002) stated that economic development increases subjective
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wellbeing (life satisfaction) by creating a culture environment where individuals make
choices to maximize their happiness rather than meet social obligations (p. 25). Gradually,
people would live for their own thoughts, which might not be affected by society pressure
and norms. They appreciated the right to choose lifestyles, to demonstrate their personalities
based on either social needs or individual needs. Therefore, it is positively encouraged to
explore the “free choice right” side of customer behavior in the Vietnam context in future
research.
Hypothesis H6: Materialism is negatively related to Life satisfaction
In contrast to research from affluent economies, in the Vietnamese context, finding
of this research found some differences as the same as finding by Nguyen (2012). In
Nguyen’ study (2014), although the summed measure of overall materialism was negatively
correlated with the overall life satisfaction but the correlations were quite weak and
insignificant. The finding pointed out the insignificant positive relationship of materialism
and life satisfaction. Based on Maslow’s theory, Caldas (2012) states that for poor
consumers (developing countries), any improvement in their income levels will result in
more happiness, up to a point where satisfaction of basic needs gives away to other
priorities. Hence, in Vietnam, a developing country, the event of becoming a “lower-
middle-income economy” leads people to a higher sense of happiness and satisfaction with
life, up to a point where all basic needs are sacrificed. In detail, basic needs include
physiological needs and safety needs. For the most part, physiological needs are tangible;
they are the basic requirements for human survival. Except of air, water, food, clothing, and
shelter, which are metabolic requirements for survival and necessary protection from
environment, the safety needs, such as personal security, financial security, health, and well-
being… are the priorities for one person. Although the Vietnam economy has rapidly
changed in recent years, the living standard in Vietnam has still not gotten to the average
level compared to other countries. Hence, Vietnam is on the way to achieve the life
satisfaction with basic needs, which results in the positive relation between materialism and
life satisfaction. In like manner, in the meta-analysis about the relationship of materialism
and life satisfaction, Schudson (as cited in Newell et al., 1993) argued that possessions
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could be a source of genuine meaning for consumers regardless of their social stratum, for
ownership could produce pleasure that lead to satisfaction and psychological well-being.
Therefore, consumers can receive satisfaction from their possessions. However, in
consequence of economic development, one part of Vietnamese may have a strong
materialistic orientation, which makes them tougher to become satisfied and tend to be less
happy. Thus, the balance between positive and negative effects of materialism on life
satisfaction may not be clear in the Vietnamese context, and Vietnamese may on the both
side, which are tilted in positive one.
Considering respondent’s characteristics, most of respondents come from income
group from 05 to 10 million VND per month (36.1 percent) and group of below 05 million
VND (23.4 percent). Average income per month of urban community in Vietnam was about
5 million per month (General Statistic Office of Vietnam, 2014). Thus, below 5-million
group (23.4 percent) and from 05- to 10-million group were considered the low income and
the average income, correspondingly. Most people of these groups firstly concerned about
basic needs (food, clothing, shelter…) before shifting their attention to another stage of
needs, except people who already had a basic living standard or a grant from their parents…
Moreover, due to cultural behaviors, respondents might intentionally understand the phrase
“income” as their wage but not their “total inflow of asset.” For instance, respondents might
express their wage as 5 million VND per month instead of total income, which included
additional salary, bonus, commission, part-time job salary… Hence, this might have
influences on research finding about relationship of materialism and the sense of life
satisfaction (hypothesis H6). This issue should be considered in the future research.
As the result of in-depth interview with six respondents, regarding the relation
between materialism and life satisfaction, at first, correspondents thought that they were
uncorrelated, but after in-depth interview, they emphasized that the answers depend on the
objects because each person had their own definition about “life satisfaction” and many
other things. Some thought that this relation was negative because materialists found it more
difficult to satisfy material needs, which kept them far from the life satisfaction. However,
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others had the over desire for material goods and satisfied with the recent life, this was
partly similar to the opinion about “free choice right” as mentioned above.
In brief of hypotheses H1 and H6, based on a study of Ahuvia (2002), the
relationship among collectivism, materialism, and life satisfaction can result in a vicious
circle. Revolving around gaining face, honor, and public reputation, the collectivists have
over desire for material goods in order to achieving their extrinsic goals, which often
conflict with the desire to follow one’s own inner compass, such as happiness. To be against
with the outcome of hypotheses H1 and H6, the empirical results supported hypotheses H2,
H3, H4, H5, and H7. Hypothesis H1 confirmed the relation between individualism and
materialism. Hypotheses H3, H4, and H5 noticed the positive effect of collectivism,
individualism, materialism on consumers’ decision-making process of purchasing status
products (status consumption). The last hypothesis, H7, which was also accepted by the
data, implied that status consumption was relevant with sense of happiness in life (life
satisfaction).
4.8 Summary
In summary, this chapter presents data analysis results of measurement scales,
research model, and hypotheses. Total 08 of 39 items of theoretical measure scales were
eliminated after data analysis (see Table 4.13) and total retained 31 of 39 items measured 07
constructs (see Appendix H). Considering the conceptual meaning of the final measurement
constructs, all of constructs had within constructs relevance. Results of CFA indicated that
most measurement scales were suitable for measuring each construct. The elimination of
measurement items could due to wording problems, conceptual appropriateness, differences
in individual level, or the uniqueness of Vietnamese culture.
Table 4.13 Removed items

Stage No. of Name of items Note
items
Descriptive 02 Col1: It is important for me to maintain harmony within Kurtosis
statistic my group and
Col2: My happiness is influenced by the happiness of Skewness
those around me >|2|
First order 05 Col7: Even when I strongly disagree with group members, Factor
construct I avoid an argument. loading <
0.5
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Ind1: I prefer to be straightforward when dealing with
people I have just met.
Ind2: I enjoy being unique and different from others in
many respects
Ind3: Speaking up in public is not a problem for me
Ind4: Being able to take care of myself is a primary
concern for me
Second 01 MatCen5: I put more emphasis on material things than Factor
order most people I know loading <
construct 0.5
Total 08
Regarding the SEM results, there were totally five of seven hypotheses, which were
supported. Specifically, materialism had a statistically significant effect on status
consumption (β =0.41, p=0.000), individualism had a positive effect on materialism at
significant level (β. =0.23, p=0.002), status consumption had a positive effect on life
satisfaction (β. =0.24, p=0.001). However, H1 and H6, which hypothesized a negative
impact of collectivism on materialism and a negative impact of materialism on life
satisfaction, could not be accepted by the data set in the research. The next chapter would
summarize all discussions and conclusions of this study, as well as its implications and its
limitations.
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CHAPTER 5 CONCLUSION, IMPLICATIONS, AND LIMITATION
Based on literature reviews, theoretical models and hypotheses, and analysis results
in previous chapters, chapter five displays the conclusion for overall process, the
implication of its results, and the limitation for future researches.
Overall, in the customer behavior field, the necessity of understanding needs, wants,
and demands of customers through the antecedences and consequences of customer
behaviors is the strategic key for both managers and government. Based on the whole
picture of chapter one and chapter two, from Doimoi 1986 Vietnam economy has kept
changing, which results in social-psychology shift on consumer values, attitudes and
behaviors. With expectation to investigate the customer behaviors, author conducted the
research to examine the antecedents and consequences of status consumption through
exploring customer motivations: materialism, collectivism, and individualism. In detail, the
motivation of materialistic is a desire for material goods (Goldsmith, 2012); motivation of
collectivistic focuses on others self-concept (how consumers think others see him/her);
motivation of individualistic is about actual self-concept (how the consumer views
him/herself) (Shukla, 2010). Moreover, cultural elements also affect how customers value
their possessions (Ogden & Cheng, 2011). Either the differences of culture influent at
national level or the dissimilarities of culture influent at individual level on customer
behavior are recorded. Thus, the motivation of consumers is changeable and need to be
explored from time to time.
Besides the problem mentioned above, the studies, which explore the perceptions of
consumers in Vietnam about materialism, collectivism, individualism, status consumption,
life satisfaction, and their mutual relationship, have not widely conducted in Vietnam
market and they mostly show these concepts separately. Hence, based on conceptual
framework of previous research, the author formulates the measurement and structural
models with seven hypotheses. Among hypotheses, H1 and H2 are about the relationship of
culture elements and materialism, hypotheses H3, H4, and H5 suppose the antecedents-
collectivism, individualism, and materialism of status consumption. In addition, to propose
Page | 55
the connection of materialism and status consumption with life satisfaction, hypotheses H6
and H7 are formulated.
In chapter three, measurement scales included 39 items have been used to formulate
the questionnaire survey, which have been delivered to 550 respondents. The final 427
questionnaires are used as valid data for this research. Both SPSS 20 and Amos 20 are run
in chapter four to test the measurement and theoretical model. The analysis results are
discussed in chapter five.
5.1 Conclusions about hypotheses and research problem

The results of structural equation model had proved the positive impact of
collectivism, individualism, and materialism on status consumption (H3, H4, and H5 are
supported), the positive impact of individualism on materialism (H2 is supported), and the
positive impact of status consumption on life satisfaction (H7 is supported). Besides, H1,
and H6, which hypothesized a negative impact of collectivism on materialism and a
negative impact of materialism on life satisfaction, could not be accepted by the data set in
the research.
Hypothesis H1: Collectivism is negatively related to Materialism
As opposed to theoretical background of hypothesis H1, that high individualism
scores are associated with high materialism (Ogden & Cheng, 2011; Wong, 1997), in
Vietnamese context, collectivism has been found the positive relation with materialism at
significant level. In order to explain the finding dissimilarity, the author conducts in-depth
interviews with 06 respondents. Besides the mentioned issues in chapter one and chapter
four, interviewees indicate new points of view, which focus on the enjoyment and the “free
choice right.” Whatever the need of group or the need of oneself is based on, the consumers
are supposed to emphasize their uniqueness, freedom, and personality through their choice.
In addition, the over desire for material possessions may be the motive of collectivistic, as
he/she needs respect from others. Acquisition possessions become a manner through that the
collectivistic satisfies the need of status, recognition, fame, prestige, and attention.
Vietnamese with collectivism-based culture value their possessions as social recognition
and emphasizes on how others see him/her. The reverse relation of collectivism and
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materialism needs to be considered in further researches not only in the Vietnamese context
but also in other TEs countries’ contexts.
Hypothesis H2: Individualism is positively related to Materialism
As the same with the previous research, individualism self plays an important role in
individual who motivates for desire of material goods. The significant relation between
individualism and materialism notices that the perception of Vietnamese consumers about
this relationship is the same with that in other countries. However, considering the numbers
of eliminated measurement items, the adopting of other collectivism and individualism
measure scale such as scale of Hofstede is suggested. The need of respect for either oneself
or society is mainly reflected on the side of success and happiness of materialism.
It means that both collectivism and individualism have a positive influence on
materialism and supports for the theoretical point that these self-perceptions coexist in
Vietnamese consumers. While individualistic values their possession as their individual
recognition, collectivistic values their possessions as social recognition. It is like two sides
of a coin, thus, individual has over desire for material goods for varied purposes. In
countries with transitional economies, such as Vietnam, the mixture of traditional culture
and Western culture may display the both positive relation of collectivism and
individualism with materialism. Hence, the importance and acquisition of material
possessions are minded more than previous centuries.
Hypothesis H3: Collectivism is positively related to Status consumption
Once again, in contrary to the previous research from other countries, this study
especially supports for study of Nguyen and Tambyah (2011). The positive impact of
collectivism on status consumption at significant level is indicated. This hypothesis
confirms the uniqueness of consumers’ behaviors in Vietnam. Suggestions are based on
Maslow theory and a theoretical concept of status consumption, Vietnamese as collectivist,
who tend to have low self-esteem, need to be recognized and respected by others. This kind
of need is a motivator, by which individuals try to improve their social standing through the
conspicuous consumption of consumer products that confer and symbolize status for
surrounding. In another point of view, a possible reason may be related to the motivation for
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status consumption that could be “standing out to fit in” (the bandwagon effect) or “fitting
in by standing out” for consumers holding collectivistic values.
Hypothesis H4: Individualism is positively related to Status consumption
In the same manner with the previous research, the finding in the Vietnamese context
confirms the common that the value of individualism corresponds to the goal of status
consumption. Although the effect of individualism on ostentatious purpose of status
consumption is noticed in the Vietnamese context, the Vietnamese’s “individualism” varied
from the individualism characteristic of other countries due to the elimination four of seven
measurement items, the low reliability and the low convergent validity. To summarize H3
and H4, beside of coexist of collectivism and individualism in individuals, both the
individualistic self and collectivistic self are the indicators for status consumption in the
context of Vietnam, but with dissimilarity motivation. The Vietnamese consumers may
acquire status products to state their both individual and social recognition.
Hypothesis H5: Materialism is positively related to Status consumption
This finding is consistent with the investigation by many researchers that status
consumption is positively related to concepts of materialism. Once again, it indicates the
over desire for material goods as an important factor contributing to the prevalence of status
consumption. Consumers indicate their happiness and success to others through acquisition
possessions with expectation of improving their social standing. Nevertheless, the
correlations within materialism measurement scale are quite high. In detail, the correlations
of Materialism-Centrality with the others components: Materialism-Success and
Materialism-Happiness are close to 0.9. It suggests that, nowadays, the boundary among
success, happiness, and centrality of materialism is not as clear as before. Considering the
positive point of view, the convergence of materialism into using of possessions to judge the
success and the belief that possessions and acquisition lead to happiness may be a
convenience for managers to determine the strategy, tactics, and concrete missions for the
services or products related to status consumption.
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Hypothesis H6: Materialism is negatively related to Life satisfaction
Contrary to most researches in Western, in the perception of collectivistic society,
materialism is found to be positively related to life satisfaction, though not significant.
Moreover, the finding is varied from Nguyen’s study (2012), which is conducted in the
Vietnamese context. The reasons of the within country dissimilarity and the bias of
respondents’ demographic, especially group of income, have been noticed. As stated in
chapter four, the balance between positive and negative effect of materialism on life
satisfaction may not be clear in the context of Vietnam, and Vietnamese consumers may on
the both side, which are tilted in positive one. It needs further investigations.
Hypothesis H7: Status consumption is positively related to Life satisfaction
The previous research emphasizes the phrase “regardless of income and social class
level” as defining status consumption. Thus, consumers, who are in different income groups
or social class levels, have different desire stage of improving their social standing. In 2008,
Vietnam became a lower-middle-income economy, which systematically changed social
standing and consumption behaviors of customers. In this study, status consumption is
found to be significant positive related to life satisfaction for all respondents, not only for
certain groups of consumers as supposed by Nguyen and Tambyah (2011). Due to
collectivistic based culture, a Vietnamese tend to purchase based on how he/she thinks
others see him/her. However, the culture shift also may motivate Vietnamese consumers to
obtain status products based on how they view themselves. The show off or ostentatious
behaviors may be the reason, as if consumers are recognized by community through status
consumption, they would retain positive emotion and fell satisfying with their life.
In brief, this study confirms the similarity and dissimilarity of status consumption’s
antecedents and consequences in varied countries. Under the effects of culture elements, the
relationship among materialism, status consumption, and life satisfaction displays
differently, which not only at national level but also at individual level. Hence, this study
notices the necessity of expanding research related to the effect of culture. Firstly, at
national level, considering the motivation of status consumption in Western countries and
Vietnam, in Western countries, the values of individualism correspond to the goal of status
Page | 59
consumption and reverse relationship is suggested for collectivism; in Vietnam, both
individualism and collectivism have positive relation with status consumption at the
significant level. Hypothesizing the same oriented relation of cultural variables and
materialism as in Western countries, the result of analyzing in the Vietnamese context
indicates both significant positive relations though. Secondly, as individual level, on the
contrary of previous researches in Vietnam (Nguyen & Tambyah, 2011; Nguyen, 2012),
which displays the insignificant positive effect of materialism on the life satisfaction, this
research notices the converse insignificant result. Thirdly, as the same as results of previous
research (Eastman & Eastman, 2011), materialism is found to significantly related to status
consumption. Finally, considering two antecedents of life satisfaction, although materialism
is not significant related to life satisfaction, relation of status consumption and life
satisfaction is meaningful one. All above statements help to expand the study in TEs
market, especially in the Vietnamese context.
5.2 Implications for theory and managerial implications

Implication for managers and marketers
As managers from Western countries invest to countries with Asian culture, such as
Vietnam, in order to avoid communication problems and misunderstandings deriving from
these differences, the managers have to understand the insight culture elements at both
national level and individual level thoroughly before embarking on business ventures. In
addition, managers should consider the uniqueness of Vietnamese consumers while
developing a strategy in this country. For marketers, a better understanding of how and why
people values their possessions and how would enable them to provide better services for
their customers by managing the marketing mix to maximize value of the customer while
provide profit to the firm.
As mentioned above collectivism and individualism have a positive influence on
materialism and coexist in Vietnamese consumers, though the individualistic has stronger
desire for material goods. Accordingly, Vietnamese consumers tend to use possessions to
judge the success of others and their-self and they believe that possessions and their
Page | 60
acquisition lead to happiness and life satisfaction. This finding supports managers in varied
field.
Based on research findings status consumption of Vietnamese consumers initiates
from real demand, which affected by traditional-collectivism culture and western-
individualism culture. Hence, Vietnam is a potential market of status consumption with the
stable development. In the marketing campaign, marketers should carefully consider the
culture elements of their products or services, in order to plan an adequate advertisement
and PR to target customers. In addition, it helps managers segment their customers, to serve
them better and to fix with company’s capabilities. In detail, to answer the questions, what
tendency of given decisions of collectivism-based Vietnamese and individualism-based
Vietnamese are, which group of consumers goes along with the values of products or which
products fix with existing groups of consumers.
Currently, consumption segments in Vietnam have not been clearly distinguished,
except a small proportion of wealthy consumers. For instance in 2013, only 1.67% of
consumers, whose averaged salary is above 8.5 million VND per month, afford to buy
luxury goods (Sức hút thị trường “hàng hiệu” tại Việt Nam, 2013). However, in the trend of
individualism and collectivism, through the division of small groups as mentioned in
chapter 4, Vietnam will be a country with varied consumption segments. Although
possessions, gender, and age have still played an important role in these segments,
consumers may approach the more complicated ones, which must create a more diverse
market. For instance, based on the research result, there may be four segments: social-
driven consumption, individual-driven consumption, status-driven consumption, and
material-driven consumption. This will affect the advertisement development, market
solutions, especially, the strong development of products and consuming promotion.
Implications for policy markers

Based on the developing real demand of status consumption in Vietnam market,
especially, the positive mutual relationship among collectivism, individualism, materialism,
and status consumption and the positive effect of status consumption on life satisfaction,
policy makers should consider the constructive side of status consumption. The research
Page | 61
findings support government and policy makers to state out the policies, which firstly
protect consumers from fake products and the disparity in prices. Status products are usually
expensive and luxury goods and services bringing consumers high material and spiritual
values (self-assertion), so they need the reliability. The nature of fake-product fight is
assuring the quality or the value a product brings to consumers to encourage the
consumption. Satisfying consumption needs in domestic market means helping domestic
consumers improve their life satisfaction. Secondly, policies aim to protect proper
contributors and companies from the illegal companies, which distribute smuggled goods or
evade paying tax by creating a competitive and transparent market and encouraging the
development of legal businesses. Thirdly, there should be policies regarding the domestic
industry support to build famous brands with suitable statuses, which approach the
appropriate status consumption. Vietnamese people are famous with diverse and unique
handicrafts, if there are suitable development and strategic orientations, we can produce
many status products, which attract not only Vietnamese but also foreigners.
Implications for other discipline/fields
Besides supporting other studies in customer behavior field, this research may be
helpful in other disciplines such as psychological which investigates individualism,
collectivism, materialism, or sociological which explores elements of life satisfaction, and
the various trend of society.
5.3 Limitations and further research

Although, this study has a good contribution to research background of Vietnam, its
limitations should be explored in future researches. At first, all issues mentioned above need
to be considered in further researches not only in the Vietnamese context but also in other
TEs’ contexts. For instance, the reverse positive relation of collectivism and materialism
and the irrelativeness of materialism and life satisfaction may due to wording problems,
conceptual inappropriateness, the differences at individual level, the cultural values such as
humility, or Vietnamese consumers’ awareness. Hence, it needs to expand the investigation
to strengthen these hypotheses. Secondly, the findings suggest that current theoretical
models tested in developed markets need considerable modifications when applied in
Page | 62
emerging markets context. Therefore, further researches are required to develop a congruent
framework in developing market contexts. Thirdly, the rate of Vietnam’s population in
urban and rural is 32/68 in 2013, which means that not only urban area, such as Ho Chi
Minh City, Hanoi Capital, Da Nang City… but also rural area can be the potential markets
for consumption, especially for consumption based on the expectation of improving social
standing. Thus, status consumption’s prevalence should be noticed in all areas of Vietnam
with wider scope of research and larger sample size. Finally, convenience sampling which
was applied in this research was non-probability sampling. To increase the generality of
sample, the author should consider the probability sampling in future researches.
Page | 63
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APPENDICES
Appendix A List of in-depth interviews’ participants

No. Full name Age Job title
(years old)
1 Bui Nam Phuong 35 Civil engineer
2 Nguyen Thi Minh Ha 29 Pharmaceutical representative
3 Nguyen Hoang Nam 22 Last year Student (Raffles College of
Higher Education - Singapore)
4 Vo Ha Trung 22 Master of Engineering (Vietnamese-
German University VGU)
5 Ha Le Viet Dung 31 Pharmacist
6 Bui Thi Mai Huong 32 Chief of accountant
Appendix B In-depth Interview’ refinement measurement scale

Respondents' Original Final measurement
Comments
information measurement scales scales
Status consumption
Respondent suggest that
Bui Nam Phuong, 35 I would buy a product replace “just because” by
I would buy a product
years old, professor of just because it has “based on” to make
based on their status
civil engineer status. statement more acceptable n
Vietnamese context
Respondent suggests
exchange "irrelevant to me"
Nguyen Thi Minh Ha,
The status of a by "reflect my personality" The status of a
29 years old,
product is irrelevant to to make content more product reflects my
pharmaceutical
me. (r) understandable. The personality
representative
sentence should be reversed
to make it clearer
Materialism - Success
Respondent recommends I admire people who
I admire people who
Nguyen Hoang Nam, adding “luxury cars” and own expensive homes,
own expensive homes,
22 years old, student. “branded clothes” to make luxury cars, and
cars, and clothes.
this statement clearer. branded clothes.
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Vo Ha Trung, 22
years old, last year
student.
I don’t place much
Bui Nam Phuong, 35 All interviewees I consider that the
emphasis on the
years old, professor of recommended to reverse the amount of material
amount of material
civil engineer, sentences to avoid objects people own is
objects people own as
Nguyen Thi Minh Ha, misunderstood a sign of success
a sign of success
29 years old,
pharmaceutical
representative
Vo Ha Trung, 22 To emphasis on the
years old, last year The things I own say a important of "success", The things I own say a
student. lot, about how well I replace "how well I'm doing lot about my endeavor
Ha Le Viet Dung, 31 am doing in life. in life" by "my endeavor in in life.
years old, pharmacist life"
To adapt with Asian culture
Bui Thi Mai Huong, and make the content
I like to own things I like to own things
32 years old, chief of positive thinking, should
that impress people. that attract people
accountant change the word "impress"
into "attract"
Materialism - Centrality
In Minh Ha’s opinion, the
Nguyen Thi Minh researcher should change all
Ha, 29 years old, I try to keep my life reverse statements to avoid
I usually concern
pharmaceutical simple, as far as the bad habit of
about acquisition
representative possessions are respondents. According to
possessions in life
Ha Le Viet Dung, 31 concerned.(r) Viet Dung, the statement
years old, pharmacist should be conversed to
make it clearer
Nguyen Hoang Nam, Buying things give me With the experiment in Purchasing things give
22 years old, student. a lot of pleasure. English, Nam suggests to me a lot of pleasure.
Page | 70
change “buying” to
“purchasing”.
Nguyen Thi Minh Ha, In her opinion, the

The things I own The things I own are
29 years old, researcher should change all
aren’t all that all that important to
pharmaceutical reverse statements to avoid
important to me.(r) me
representative the bad habit of respondents
Nguyen Thi Minh Ha, I put less emphasis on In her opinion, the I put more emphasis
29 years old, material things than researcher should change all on material things
pharmaceutical most people I reverse statements to avoid than most people I
representative know.(r) the bad habit of respondents know.
Materialism - Happiness
Nguyen Thi Minh Ha,
I have all the things I Inverse the statement will I have not had all the
29 years old,
really need to enjoy help the all questions of this things I really need to
pharmaceutical
life.(r) scale unifying. enjoy life
representative
Bui Thi Mai Huong,
32 years old, Should reverse this
I wouldn’t be any
accountant statement to make the I would be happier if I
happier if I owned
Nguyen Thi Minh Ha, meaning more owned nicer things
nicer things.(r)
29 years old, understandable
pharmacist
Collectivistic self
To make the content My happiness is
Bui Nam Phuong, 35 My happiness depends
positive thinking, should influenced by the
years old, professor of on the happiness of
replace "depends on" by "be happiness of those
civil engineer those around me.
influenced by" around me.
Individualistic self
I prefer to be direct Due to the same meaning of I prefer to be
Nguyen Hoang Nam, and forthright when “direct” and “forthright”, straightforward when
22 years old, student. dealing with people I respondent recommend dealing with people I
have just met. conversing into have just met.
Page | 71
“straightforward” to make
statement be shorter
Life satisfaction
All statements are
understandable clearly by
respondents
Page | 72
Appendix C Questionnaire (English Version)
Dear sir/madam
I am Vo Thi Thu Trang, a student of Master Program of University of Economics Ho Chi
Minh City. I am undertaking a research to investigate the relationships between customer’s
behavior and status consumption. For this purpose, I kindly request you to complete the
following short questionnaire regarding your attitude about collectivism, individualism,
materialism, status consumption, and life satisfaction. It should take you no longer than 10
minutes to complete the questionnaire. Although your response is significantly important to
my research, your participation in this survey is voluntary.
Your personal information will not be disclosed without your permission. If you have
concerns or questions over this study, please contact me via email address:
mrs.vothithutrang@gmail.com, or phone number: +84 938842208.
I. Section A
This section helps you to be clearer about status products and status consumption.
Status consumption is the “tendency to purchase goods and services for the status or
social prestige value that people confer on their owners” regardless of income or
social class level. In other words, individuals communicate meaning about
themselves to their reference group by using status goods as symbols.
Page | 73
II. Section B
This section explores your attitude and perceptions regarding status consumption, life
satisfaction, collectivism, individualism, and materialism.
To what extent do you agree with each of the
following statements, please indicate your
Neither agree nor disagree

answer using the following 7-point scale where:
Somewhat disagree
Strongly disagree
Somewhat agree
1 = Strongly disagree
Strongly agree
Disagree
2 = Disagree
Agree
3 = Somewhat disagree
4 = Neither agree nor disagree
5 = Somewhat agree
6 = Agree
7 = Strongly agree
Question
Your attitude and perceptions regarding status consumption
1 I would buy a product based on their status. 1 2 3 4 5 6 7
2 I am interested in new products with status. 1 2 3 4 5 6 7
3 I would pay more for a product if it had status. 1 2 3 4 5 6 7
4 The status of a product reflects my personality. 1 2 3 4 5 6 7
5 A product is more valuable to me if it has some

1 2 3 4 5 6 7
snob appeal.
Your attitude and perceptions regarding materialism
6 Some of the most important achievements in life

1 2 3 4 5 6 7
include acquiring material possessions.
7 I admire people who own expensive homes,
1 2 3 4 5 6 7
luxury cars, and branded clothes.
8 I consider that the amount of material objects
1 2 3 4 5 6 7
people own is a sign of success.
9 The things I own say a lot, about my endeavor in
1 2 3 4 5 6 7
life.
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10 I like to own things that attract people. 1 2 3 4 5 6 7
11 I usually concern about acquisition possessions in

1 2 3 4 5 6 7
life
12 The things I own are all that important to me 1 2 3 4 5 6 7
13 Purchasing things give me a lot of pleasure. 1 2 3 4 5 6 7
14 I like a lot of luxury in my life. 1 2 3 4 5 6 7
15 I put more emphasis on material things than most

1 2 3 4 5 6 7
people I know
16 I have not had all the things I really need to enjoy
1 2 3 4 5 6 7
life
17 I would be happier if I owned nicer things 1 2 3 4 5 6 7
18 It sometimes bothers me quite a bit that I cannot

1 2 3 4 5 6 7
afford to buy all the things I would like.
19 My life would be better if I owned certain things I
1 2 3 4 5 6 7
do not have.
20 I would be happier if I could afford to buy more
1 2 3 4 5 6 7
things.
Self-perception (individualistic self and collectivistic self in life)
21 It is important for me to maintain harmony within

1 2 3 4 5 6 7
my group.
22 My happiness is influenced by the happiness of
1 2 3 4 5 6 7
those around me
23 I will sacrifice my self-interest for the benefit of
1 2 3 4 5 6 7
the group I am in.
24 I often have the feeling that my relationships with
others are more important than my own 1 2 3 4 5 6 7
accomplishments.
25 It is important to me to respect decisions made by
1 2 3 4 5 6 7
the group.
26 I will stay in a group if they need me, even when I
1 2 3 4 5 6 7
am not happy with the group.
27 Even when I strongly disagree with group
1 2 3 4 5 6 7
members, I avoid an argument.
Page | 75
28 I prefer to be straightforward when dealing with
1 2 3 4 5 6 7
people I have just met.
29 I enjoy being unique and different from others in
1 2 3 4 5 6 7
many respects.
30 Speaking up in public is not a problem for me. 1 2 3 4 5 6 7
31 Being able to take care of myself is a primary

1 2 3 4 5 6 7
concern for me.
32 My personal identity independent of others is very
1 2 3 4 5 6 7
important to me.
33 Without competition, it is not possible to have a
1 2 3 4 5 6 7
good society.
34 I enjoy working in situations involving
1 2 3 4 5 6 7
competition with others.
Life satisfaction
35 Generally, I’m satisfied with my life as a whole 1 2 3 4 5 6 7
36 Generally, I’m satisfied with my family life 1 2 3 4 5 6 7
37 Generally, I’m satisfied with my relationships

1 2 3 4 5 6 7
with friends
38 Generally, I’m satisfied with my standard of living 1 2 3 4 5 6 7
39 In general, I can say I have a good life 1 2 3 4 5 6 7
III. Section C – Background information

This section of the questionnaire refers to background or biographical information. The
information will allow me to classify and compare groups of respondents.
1. Gender
Male; Female
2. Age group in years
18 – 23; 24 – 30; 31 – 40; 41 – 50; > 51
3. Income (I) per month (1,000,000vnd / month)
I <5; 5≤ I <10; 10≤ I <15; 15≤ I <20; I ≥20
Page | 76
4. Marital status
Single; Married; Divorce
5. Job title
Student; Officer; Worker;
Business/Manager; Others
6. Career fields
Finance/ Banking/ Insurance; Education/ Training;
Tourism/ Hospitality/ Restaurant; Transport;
Science/ Technology; Information/ Communication;
Health care; Others
Once again, thank you for your co-operation in completing this questionnaire!
Page | 77
Appendix D Questionnaire (Vietnamese Version)
PHIẾU KHẢO SÁT
Kính chào Anh/Chị, tôi tên Võ Thị Thu Trang, hiện đang là học viên cao học của trường
Đại học Kinh tế Tp.HCM. Tôi đang nghiên cứu một số yếu tố tác động lên thái độ và hành
vi của người tiêu dùng trong việc mua (hoặc lựa chọn) hàng hóa (hoặc dịch vụ) và mối liên
hệ với sự hài lòng trong cuộc sống. Rất mong Anh/Chị dành ra khoảng 5 đến 10 phút để nói
lên quan điểm của Anh/Chị đối với những phát biểu được đề cập trong Phiếu khảo sát.
Những ý kiến của Anh/Chị sẽ giúp đóng góp nên thành công của nghiên cứu.
Phiếu khảo sát hoàn toàn dựa trên tinh thần tự nguyện và thông tin cá nhân của Anh/Chị sẽ
được giữ bí mật hoàn toàn. Nếu Anh/Chị có bất kỳ thắc mắc nào, xin vui lòng liên hệ qua
địa chỉ email: mrs.vothithutrang@gmail.com, hoặc số điện thoại: +84 938842208.
I. Phần A
Phần này giải thích rõ thêm về hành vi mua (hoặc lựa chọn) hàng hóa (hoặc dịch vụ) dựa
trên hình ảnh và giá trị xã hội (status consumption):
Status consumption là khuynh hướng mua (lựa chọn) hàng hóa (dịch vụ) dựa vào
hình ảnh thể hiện (hoặc biểu tượng đại diện) của hàng hóa (dịch vụ/nhà cung ứng)
hoặc dựa vào giá trị xã hội và uy tín trong xã hội mà một người muốn thể hiện, phụ
thuộc vào thu nhập và địa vị xã hội của người đấy.
Nói cách khác, đó là việc một người muốn thể hiện bản thân (thu nhập, địa vị xã hội,
giá trị xã hội, tính cách,..) thông qua việc mua những hàng hóa hoặc dịch vụ thể hiện
hình ảnh hoặc biểu tượng mà người đó muốn hướng tới.
Status là một hình ảnh đại diện, hoặc ý nghĩa xã hội, hoặc biểu tượng mà một người
muốn hướng tới thông qua cách người đó lựa chọn và mua sắm các sản phẩm hàng
hóa/dịch vụ.
Các sản phẩm/dịch vụ có thể là:
- mua xe hơi, quần áo, mỹ phẩm, nước hoa, trang sức, đồ công nghệ (điện thoại,
laptop, máy tính bảng, ps4…),
- thuê dịch vụ bảo vệ, dịch vụ bác sĩ gia đình, dịch vụ làm vườn, thuê người làm,
- uống beer, đi bar/pub, chơi bowling, chơi đánh golf,
- đi nghỉ nước ngoài, nghỉ ở resort, nghỉ ở khách sạn cao cấp…
Page | 78
- xây nhà, xây biệt thự,…
Với mong muốn giữ được ý nghĩa gốc của các khái niệm, tôi xin được giữ “status”
bằng tiếng Anh trong bản câu hỏi này, mong các Anh/Chị/Các bạn đồng thuận.
II. Phần B
Phần này thể hiện thái độ và cách nhìn nhận của Anh/Chị về hành vi mua (hoặc lựa chọn)
hàng hóa (hoặc dịch vụ)
Xin cho biết mức độ đồng ý của Anh/Chị với
Trung dung/ không có ý kiến

các phát biểu sau đây bằng cách đánh dấu vào
Hoàn toàn không đồng ý
Không đồng ý một phần

ô tương ứng, với:
Hoàn toàn đồng ý

Đồng ý một phần
1-Hoàn toàn không đồng ý
Không đồng ý
2-Không đồng ý
Đồng ý
3-Không đồng ý một phần
4-Trung dung/ không có ý kiến
5-Đồng ý một phần
6-Đồng ý
7-Hoàn toàn đồng ý
Câu hỏi
Thái độ và cách nhìn nhận về hành vi mua sắm dựa trên biểu tượng/hình ảnh và giá trị xã hội của
sản phẩm
1 Tôi sẵn sàng mua một sản phẩm dựa trên status
1 2 3 4 5 6 7
mà sản phẩm đó đem lại
2 Tôi quan tâm đến những sản phẩm mới có status 1 2 3 4 5 6 7
3 Tôi sẽ chi tiêu hào phóng hơn cho một sản phẩm
1 2 3 4 5 6 7
nếu có status
4 Status cúa sản phẩm mà tôi sử dụng thể hiện được
1 2 3 4 5 6 7
tính cách của mình
5 Tôi cho rằng, một sản phẩm sẽ có giá trị hơn nếu
1 2 3 4 5 6 7
có kiểu dáng ấn tượng hơn
Thái độ và cách nhìn nhận về Chủ nghĩa vật chất (Materialism)
6 Sở hữu của cải vật chất là một trong những thành

1 2 3 4 5 6 7
công trong cuộc sống
7 Những người sở hữu nhà, xe hơi và quần áo đắt
1 2 3 4 5 6 7
tiền thường khiến tôi thán phục
Page | 79
8 Tôi cho rằng số tài sản vật chất mà một người sở
1 2 3 4 5 6 7
hữu là dấu hiệu thành công của người ấy
9 Những thứ tôi sở hữu phản ánh được nhiều những
1 2 3 4 5 6 7
nỗ lực của tôi trong cuộc sống.
10 Tôi thích sở hữu những thứ thu hút mọi người 1 2 3 4 5 6 7
11 Cuộc sống của tôi luôn lo lắng bởi lo toan vật chất 1 2 3 4 5 6 7
12 Những thứ tôi sở hữu đều quan trọng đối với tôi 1 2 3 4 5 6 7
13 Mua sắm thường đem lại cho tôi nhiều niềm vui
1 2 3 4 5 6 7
và thú vị
14 Tôi thích một cuộc sống giàu sang 1 2 3 4 5 6 7
15 So với những người tôi quen biết, tôi hướng đến

1 2 3 4 5 6 7
yếu tố vật chất nhiều hơn họ
16 Tôi chưa có đủ tất cả những thứ cần thiết để tận
1 2 3 4 5 6 7
hưởng cuộc sống
17 Nếu tôi có được những thứ tốt đẹp hơn, tôi sẽ
1 2 3 4 5 6 7
hạnh phúc hơn
18 Đôi khi tôi buồn vì không đủ khả năng mua tất cả
1 2 3 4 5 6 7
những gì mình thích
19 Cuộc sống sẽ tốt hơn nếu tôi có được những thứ
1 2 3 4 5 6 7
còn thiếu
20 Tôi sẽ vui hơn nếu có đủ khả năng để mua sắm
1 2 3 4 5 6 7
nhiều hơn
Thái độ và cách nhìn nhận về Chủ nghĩa tập thể và Chủ nghĩa Cá nhân
21 Duy trì sự đồng thuận trong tập thể là việc quan

1 2 3 4 5 6 7
trọng
22 Hạnh phúc của những người xung quanh có tác
1 2 3 4 5 6 7
động đến hạnh phúc của tôi
23 Tôi sẽ hy sinh sở thích cá nhân cho lợi ích của tập
1 2 3 4 5 6 7
thể
24 Tôi cảm giác rằng mối quan hệ với người khác
1 2 3 4 5 6 7
quan trọng hơn thành tích cá nhân của tôi
25 Tôn trọng quyết định của tập thể là việc quan
1 2 3 4 5 6 7
trọng đối với tôi.
Page | 80
26 Cho dù tôi không vui, tôi vẫn sẽ ở lại với tập thể
1 2 3 4 5 6 7
nếu họ cần tôi
27 Ngay cả khi tôi hoàn toàn không đồng ý với các
thành viên trong nhóm, tôi vẫn tránh các cuộc 1 2 3 4 5 6 7
tranh cãi
28 Tôi thích thẳng thắn khi làm việc với người mà tôi
1 2 3 4 5 6 7
mới gặp
29 Việc tôi là duy nhất và khác lạ với mọi người dưới
1 2 3 4 5 6 7
nhiều phương diện khiến tôi thích thú
30 Phát biểu trước đám đông không phải là việc khó
1 2 3 4 5 6 7
khăn đối với tôi
31 Nâng niu, chăm sóc cho bản thân là quan tâm
1 2 3 4 5 6 7
chính của tôi
32 Đặc điểm cá nhân độc lập (không giống) với
1 2 3 4 5 6 7
người khác là điều quan trọng đối với tôi
33 Không có sự cạnh tranh thì không thể có một xã
1 2 3 4 5 6 7
hội tốt.
34 Tôi thích giải quyết các công việc và tình huống
1 2 3 4 5 6 7
có tính thử thách và cạnh tranh
Thái độ và cách nhìn nhận về sự Hài lòng Cuộc sống
35 Nhìn chung, tôi hài lòng với cuộc sống của mình 1 2 3 4 5 6 7
36 Nhìn chung, tôi hài lòng với cuộc sống gia đình
1 2 3 4 5 6 7
của tôi
37 Nhìn chung, tôi hài lòng với quan hệ bạn bè của
1 2 3 4 5 6 7
mình
38 Nhìn chung, tôi hài lòng với mức sống của mình 1 2 3 4 5 6 7
39 Nói chung, tôi có một cuộc sống tốt đẹp 1 2 3 4 5 6 7
III. Phần C – thông tin cá nhân

Anh/Chị vui lòng cung cấp một số thông tin sau để phục vụ cho việc phân loại và so sách
các nhóm đối tượng khảo sát.
1. Giới tính
Nam; Nữ
Page | 81
2. Nhóm tuổi
18 đến 23; 24 đến 30; 31 đến 40; 41 đến 50; trên 51
3. Thu nhập (TN) trung bình tháng (1.000.000vnđ/tháng)
TN <5; 5≤ TN <10; 10≤ TN <15; 15≤ TN <20; TN ≥20
4. Tình trạng hôn nhân
Độc thân; Đã lập gia đình; Ly dị
5. Nghề nghiệp của Anh/Chị (Job title)
Sinh viên; Nhân viên văn phòng; Công nhân; Doanh nhân/Nhà quản lý; Khác
6. Lĩnh vực làm việc
Tài chính/ Ngân hàng/ Bảo hiểm; Giáo dục/ Đào tạo;
Du lịch/ Khách sạn/ Nhà hàng; Giao thông/ Vận tải;
Khoa học/ Công nghệ; Thông tin/ Truyền thông
Y tế/ Chăm sóc sức khỏe; Khác
Page | 82
Appendix E Descriptive statistics
Mean Std. Deviation Skewness Kurtosis
Statistic Statistic Statistic Std. Error Statistic Std. Error
StatusC1 4.2529 1.68164 -.481 .118 -.729 .236
StatusC2 4.7330 1.63985 -.670 .118 -.455 .236
StatusC3 4.2319 1.71574 -.364 .118 -.955 .236
StatusC4 4.4356 1.78214 -.354 .118 -.939 .236
StatusC5 5.6347 1.31353 -1.300 .118 1.683 .236
MatSucc1 5.1546 1.43710 -.864 .118 .272 .236
MatSucc2 4.2670 1.61243 -.392 .118 -.742 .236
MatSucc3 4.5199 1.50942 -.594 .118 -.326 .236
MatSucc4 5.3841 1.27730 -.999 .118 .920 .236
MatSucc5 4.3302 1.68425 -.212 .118 -.889 .236
MatCen1 4.0820 1.65734 -.283 .118 -.841 .236
MatCen2 5.2553 1.42346 -.874 .118 .402 .236
MatCen3 4.9649 1.50934 -.599 .118 -.378 .236
MatCen4 5.5012 1.29712 -.952 .118 .750 .236
MatCen5 3.2155 1.57010 .353 .118 -.755 .236
MatHap1 4.8759 1.58812 -.714 .118 -.041 .236
MatHap2 4.7916 1.67588 -.672 .118 -.327 .236
MatHap3 4.4169 1.78531 -.434 .118 -.902 .236
MatHap4 5.0234 1.60528 -.876 .118 .077 .236
MatHap5 5.0398 1.53696 -.897 .118 .196 .236
Col1 5.9696 1.12651 -1.880 .118 4.949 .236
Col2 5.4520 1.28531 -1.356 .118 2.427 .236
Col3 4.8852 1.32099 -1.028 .118 1.023 .236
Col4 4.7166 1.42637 -.677 .118 -.023 .236
Col5 5.4239 1.16308 -1.083 .118 1.421 .236
Col6 5.0890 1.43122 -.982 .118 .565 .236
Col7 4.3607 1.68983 -.314 .118 -.977 .236
Ind1 5.4239 1.26368 -1.041 .118 1.098 .236
Ind2 4.0515 1.69012 -.143 .118 -.914 .236
Ind3 4.5667 1.61336 -.495 .118 -.700 .236
Ind4 4.6159 1.44947 -.462 .118 -.428 .236
Ind5 4.2529 1.54334 -.337 .118 -.682 .236
Ind6 5.8829 1.04381 -.959 .118 1.068 .236
Ind7 5.4333 1.15149 -1.013 .118 1.305 .236
LifeS1 5.2131 1.29608 -1.214 .118 1.408 .236
LifeS2 5.4028 1.30790 -1.263 .118 1.571 .236
LifeS3 5.2927 1.21841 -1.225 .118 1.581 .236
LifeS4 4.7354 1.43489 -.706 .118 -.281 .236
LifeS5 5.2834 1.21485 -1.093 .118 1.494 .236
Page | 83
Appendix F Summarized results of Confirmatory factor analysis
Table F.1 CFA for first-order construct: collectivism
Table F.1.1 Correlations among exogenous variables
Estimate
e3  e5 -.347
Table F.1.2 Standardized Regression Weights
Estimate
Col4  COL .719
Col3  COL .606
Col5  COL .622
Col6  COL .704
Table F.2 CFA for first-order construct: individualism

Estimate
Ind6  IND .634
Ind5  IND .457
Ind7  IND .774
Ind1  IND .298
Ind2  IND .444
Ind3  IND .422
Ind4  IND .297

Estimate
Ind6  IND .572
Ind5  IND .392
Ind7  IND .929
Page | 84
Table F.3 CFA for first-order construct: life satisfaction
Estimate
e37  e36 .254
e38  e36 -.203

Estimate
LifeS5  LifeS .765
Page | 85
Table F.4 CFA for first-order construct: status consumption
Estimate
StatusC1  StatusC .693

Estimate
e32  e33 .225
e30  e34 -.207
Table F.5 CFA for second-order construct: materialism

Estimate
MatSucc5  MatSucc .613
MatCen4  MatCen .567
MatHap5  MatHap .775
Page | 86
Table F.5.2 Correlations
Estimate
MatSucc <--> MatCen .853
MatSucc <--> MatHap .627
MatCen <--> MatHap .852
e15 <--> e13 -.154
e16 <--> e14 -.129
e12 <--> e10 -.216
e22 <--> e21 .275
e19 <--> e18 .188
e9 <--> e8 .135
e10 <--> e9 .210
e12 <--> e8 -.247
e12 <--> e11 -.269

Estimate
Page | 87
Table F.6 Standardized Regression Weights
Estimate
MatCen  MAT 1.125
MatHap  MAT .760
MatSuc  MAT .863
Col6  COL .577
Col5  COL .806
Col4  COL .534
Ind7  IND .838
Ind6  IND .623
Ind5  IND .438
MatSucc5  MatSuc .670
Page | 88
Appendix G Standardized Regression Weights (Final measurement model)
Estimate
Col6  COL .570
Col5  COL .814
Col4  COL .528
Col3  COL .701
MatSucc4  SUC .605
Ind2  UNI .622
MatHap5  HAP .728
StatusC1  SC .696
LifeS5  LS .766
LifeS4  LS .746
LifeS3  LS .619
LifeS2  LS .782
LifeS1  LS .824
MatCen2  SUC .616
MatCen4  HAP .631
Ind5  UNI .853
Ind6  COM .626
Ind7  COM .838
Page | 89
Appendix H Final measurement scales
No. of
Measure scale Name of items
items
Collectivism 04 Col3: I will sacrifice my self-interest for the benefit of the group I am in.
Col4: I often have the feeling that my relationships with others are more
important than my own accomplishments
Col5: It is important to me to respect decisions made by the group
Col6: I will stay in a group if they need me, even when I am not happy with
the group
Individualism 03 Ind5: My personal identity independent of others is very important to me
Ind6: Without competition, it is not possible to have a good society
Ind7: I enjoy working in situations involving competition with others
Success 05 MatSuc1: Some of the most important achievements in life include
(Materialism) acquiring material possessions
MatSuc2: I admire people who own expensive homes, luxury cars, and
branded clothes
MatSuc3: I consider that the amount of material objects people own is a
sign of success
MatSuc4: The things I own say a lot, about my endeavor in life
MatSuc5: I like to own things that attract people
Centrality 04 MatCen1: I usually concern about acquisition possessions in life
(Materialism) MatCen2: The things I own are all that important to me
MatCen3: Purchasing things give me a lot of pleasure.
MatCen4: I like a lot of luxury in my life
Happiness 05 MatHap1: I have not had all the things I really need to enjoy life
(Materialism) MatHap2: I would be happier if I owned nicer things
MatHap3: It sometimes bothers me quite a bit that I cannot afford to buy
all the things I would like
MatHap4: My life would be better if I owned certain things I do not have
MatHap5: I would be happier if I could afford to buy more things
Status 05 StatusC1: I would buy a product based on their status
consumption StatusC2: I am interested in new products with status
StatusC3: I would pay more for a product if it had status
StatusC4: The status of a product reflects my personality
StatusC5: A product is more valuable to me if it has some snob appeal
Life 05 LifeS1: Generally, I’m satisfied with my life as a whole
satisfaction LifeS2: Generally, I’m satisfied with my family life
LifeS3: Generally, I’m satisfied with my relationships with friends
LifeS4: Generally, I’m satisfied with my standard of living
LifeS5: In general, I can say I have a good life
Total 31

Antecedents and Consequences of Status Consumption Avidence From Vietnam Luan Van Thac Si Vo Thi Thu Trang Nguoi Huong Dan Nguyen Thi Mai Trang

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Antecedents and Consequences of Status Consumption Avidence From Vietnam Luan Van Thac Si Vo Thi Thu Trang Nguoi Huong Dan Nguyen Thi Mai Trang

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

Vo Thi Thu Trang

ANTECEDENTS AND CONSEQUENCES

MASTER OF BUSINESS (Honours)

Ho Chi Minh City - Year 2014

Vo Thi Thu Trang

ANTECEDENTS AND CONSEQUENCES

MASTER OF BUSINESS (Honours)

Ho Chi Minh City - Year 2014

CHAPTER 1 - INTRODUCTION ...........................................................................................8

1.1 Background to the research ............................................................................................8

1.2 Research problem ...........................................................................................................9

1.3 Research objectives...................................................................................................... 12

1.4 Methodology ................................................................................................................ 13

1.5 Research Structure ....................................................................................................... 13

1.6 Research scope ............................................................................................................. 14

CHAPTER 2 - LITERATURE REVIEW AND HYPOTHESES......................................... 15

2.1 Literature review .......................................................................................................... 15

2.1.1 Collectivism and Individualism ............................................................................ 15

2.1.2 Materialism ............................................................................................................ 17

2.1.3 Status Consumption ............................................................................................... 18

2.1.4 Life satisfaction ..................................................................................................... 19

2.2 Research hypotheses .................................................................................................... 19

2.3 Conceptual model ........................................................................................................ 23

2.4 Summary ...................................................................................................................... 24

CHAPTER 3 - METHODOLOGY ....................................................................................... 25

3.1 Research design ........................................................................................................... 25

3.1.1 Research process ................................................................................................... 25

3.1.2 Measurement scales ............................................................................................... 26

3.3 The quantitative study.................................................................................................. 30

3.3.1 Sampling and data collection ................................................................................ 30

3.3.2 Data analysis.......................................................................................................... 30

3.4 Summary ...................................................................................................................... 30

CHAPTER 4 - DATA ANALYSIS AND RESULTS .......................................................... 32

4.1 Data collection ............................................................................................................. 32

4.2 Respondents’ demographics ........................................................................................ 32

4.3 Descriptive statistic ...................................................................................................... 34

4.4 Confirmatory factor analysis (CFA) ............................................................................ 34

4.4.1 CFA for the first-order constructs ......................................................................... 35

4.4.2 CFA for second-order construct ............................................................................ 39

4.4.3 CFA for the final measurement model .................................................................. 40

4.5 Structural equation modeling (SEM) ........................................................................... 44

4.6 Bootstrap method ......................................................................................................... 47

4.7 Discussion .................................................................................................................... 48

4.8 Summary ...................................................................................................................... 53

CHAPTER 5 CONCLUSION, IMPLICATIONS, AND LIMITATION ............................. 55

5.1 Conclusions about hypotheses and research problem ................................................. 56

5.2 Implications for theory and managerial implications .................................................. 60

5.3 Limitations and further research .................................................................................. 62

CIEM Central Institute for Economic Management

Key words: status consumption, collectivism, individualism, materialism, life satisfaction

1.1 Background to the research

1.2 Research problem

Figure 1.1 Population Pyramid of Vietnam

In general, customer behavior is a driver of many consuming decisions. For

1.3 Research objectives

1.5 Research Structure

1.6 Research scope

2.1 Literature review

2.1.1 Collectivism and Individualism

2.1.3 Status Consumption

2.2 Research hypotheses