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Bachelor of Arts (Hons)

Business Administration
(In collaboration with UCSI
University)

Assignment Cover Sheet


No Student’s Name Student’s ID

01 PHẠM TRUNG TÍN 1002060895

02 NGUYỄN NGỌC TRÀ MY 1002060887

03 NGUYỄN TẤN VỸ 1002060923

04 PHẠM THÀNH ĐẠT 1002060872

05 MAI KỲ ANH 1002060871

Module/Subject Information

Subject Code BM301

Subject Name RETAIL MARKETING

Lecturer/Tutor Assoc.Prof, Dr. , Ph.D. Đặng Văn Mỹ

Submission 16/04/2022
Date
Assignment FINAL ASSIGNMENT
Title/Topic
Word Count 4553

Lecturer’s Grade/Marks/Notes
Signature
Contents
INTRODUCTION................................................................................................................... 3
Question 1............................................................................................................................... 4
Question 2............................................................................................................................... 9
Question 3............................................................................................................................. 13
REFERENCE........................................................................................................................ 22
INTRODUCTION

Mobile World Investment Joint Stock Company is currently the No. 1 retailer in
Vietnam in terms of revenue: profits with nearly 4000 stores throughout the territory
of Vietnam. Currently, MWG is operating retail chain brands including The Gioi Di
Dong, Dien May Xanh, Bach Hoa Xanh, Bluetronic, etc.
At the end of 2010, another member of Mobile World Investment Joint Stock
Company was born, which is an electronics retail system with the brand name
Dienmay.com Supermarket.
Since its inception, Dienmay.com Supermarket has developed rapidly when
continuously opening new supermarkets. Until April 2012, that is, within a year and a
half, Dienmay.com Supermarket had 12 supermarkets, present in 9 provinces.
On May 4, 2015, the Dienmay.com supermarket system was officially renamed to
DienMayXanh supermarket system.
The company promotes the development of a network of Dien May Xanh stores to
create an image of a brand associated with every home.
From a rookie in the electronics retail industry, DienMayXanh Supermarket has
continuously improved and transformed to become more optimal and widely accepted
by customers.
Up to now, DienMayXanh has 190 supermarkets in all 63 provinces and cities across
the country with selected electronic, household, and digital products for the benefit of
customers with a team of trained staff. well and imbued with a culture of putting
customers at the centre of all our thoughts and actions.
Question 1.

The operation of retailers is influenced by critical environmental factors, including the


macroenvironment and the microenvironment. The macro-environment contains
technological, social, and ethical/legal factors. The retailer’s microenvironment
focuses specifically on its competitors and customers (Levy et al., 2013). In this
question, we will discuss each of these factors.
1. Macro-environment
1.1. Technology factor
According to statistics of VnEconomy (2021), Vietnam has 73% of the population
owning and using a smartphone to access the internet. For Ho Chi Minh city
specifically, 60% of the people are smartphone users (ThanhNien Newspaper, 2019).
The statistics of APPOTA in 2018 also pointed out that Vietnam has 72% of the
population owning a smartphone, 68% using a smartphone to access the internet.
With the increasing number of people having smartphones and access to the internet, it
is a great opportunity for Dien May Xanh Supermarket to enhance its Internet
Retailing Channels, especially the mobile channel.
People nowadays are using Augmented reality or AR more than ever. It can be
found mostly in Snapchat or Instagram filters. However, AR can also be a futuristic
technology helping the business of Dien May Xanh Supermarket. Augmented reality
can help in describing products that are hard to present with photos and videos. Ikea,
for instance, applied this technology in their "Place" mobile app. It enables consumers
to test digital replicas of Swedish furniture in the comfort of their own homes. You do
this by selecting them from a catalogue and moving them into the desired place with
your finger (DMEXCO, 2018). Dien May Xanh Supermarket can adapt this
technology to their mobile app available on Google Play and Apps Store. It might
require a lot of effort and expense from the company, but it will bring consumers a
unique purchasing experience.

1.2. Social factors


According to Levy et al. (2013), four social factors indirectly impact retailers by
influencing consumers' buying process, namely, the economy, family, reference
groups, and culture.
● The economy: Ho Chi Minh City, also known as Vietnam's economic and
financial center, experienced 1.88 percent growth in the first quarter after shrinking
by 11.6 and 25 percent in the last two quarters (VnExpress, 2022). This post-
pandemic recovery is expected to have significant effects on the way people buy.
Better economic conditions result in more spending and vice versa. Hence, in the
near future, the demand for more “high price - high quality” or luxury goods might
increase.
● Family: According to statistical data from the Vietnamese GENERAL
STATISTICS OFFICE, the average annual household growth rate from 2009-to
2019 was 1.8%, 1.2 percentage points lower than that of the 1999-2009 period. The
last decade saw the lowest household growth rate in the last 40 years. Moreover, on
average, each household had 3.5 persons, 0.3 persons per household fewer than in
2009. With that decreasing household size and number, in the future, consumers
might buy fewer family-oriented products. For example, in the future, consumers
might need smaller refrigerators or washing machines because of fewer family
members.
● Reference groups: A consumer might have several different reference groups,
such as family, friends, celebrities, and opinion leaders. Consumers rely on these
groups’ information to conduct their buying behaviors. Social media sites such as
TikTok and Facebook make sharing ideas, ratings, reviews, and likes even easier.
The number of social network users in Vietnam in 2021 is 72 million, an increase of
more than 7 million people within 1 year (ĐẢNG BỘ THÀNH PHỐ HỒ CHÍ
MINH, 2021). The number of consumers joining online reference groups grows
together with the ubiquity of social media. Levy et al. (2013) suggested retailers
identify and reach out to those in a reference group who act as store advocates and
actively influence others in the group.
● Culture: Strong power distance, high collectivism, moderate uncertainty
avoidance, and high context are all characteristics of Vietnamese culture (Hofstede
Insights, 2021). People in Vietnam prefer and are at ease in groups. They frequently
regard themselves to be as a member of a group and form opinions that benefit the
group rather than their interests. Vietnamese people are also known for extremely
risking cautious. When decision-makers are uncertain, they tend to postpone or
avoid making difficult and immediate decisions. They are uncomfortable with
"abnormal" thoughts and behaviors (Nguyen et al., 2013).

1.3. Ethical and legal factors


Ethics are the guiding principles that guide individuals and businesses in determining
suitable behavior and identifying what is right and wrong. These factors affect the
profitability of the firms and the satisfaction of their customers. However, identifying
the principles can be challenging because what one person considers ethical may be
considered unethical by another (Levy et al., 2013). In Vietnam, the common belief on
business ethics maintains largely as complying with the laws and regulations.
Intellectual property rights, consumer rights, product and service quality and safety,
and corporate social responsibility have all become increasingly prominent as a result
of the "Doi Moi" strategy, as have the principles of business ethics.

2. Micro
2.1 Customers

Customers are an important factor and the main goal of creating profits for the
business, besides, it is also used to evaluate the development level of the business in
the market. Customers are defined as people who have the intention to buy from the
business and have the ability to pay, also with another form called potential
customers, our customers who have a good impression of the business and have
plans to buy in the future.

To be able to satisfy the needs of customers including many factors, these factors
include friendly employees, courteous employees, knowledgeable employees,
helpful employees, the accuracy of billing, billing timeliness, competitive pricing,
service quality, good value, billing clarity, and quick service
In this case, Dien May Xanh operates as a store that usually has a wide range of
customers with no restrictions on gender or age, however, the need to use specific
types of equipment must also be based on the wishes and needs of customers

Finally, businesses also need to know the level of management, interaction with
customers and knowing the wishes of customers, which leads to the customer
relationship management (CRM) process needing attention. The process of
relationship marketing is defined as attracting, maintaining, and enhancing
customer relationships, especially in today's competitive market, competing for
customers by attracting their attention is the primary target that needs to be focused
on to bring more profit to the business.

This is currently being applied by Dien May Xanh through customer consultation
programs and customer care programs, especially increasing the level of
professionalism and sales significantly, as well as the loyalty of customers.

2.2 Competitor
Since the establishment of a chain of retail stores. Dien May Xanh has always faced
many challenges and competitors for many years with the same aim of satisfying
the same targeted customers. Samsung is a long-standing chain of stores, so Dien
May Xanh is also the most worrisome. In terms of other formidable competitors, it
is impossible not to mention Nguyen Kim and HC Dien May because these are two
long-standing businesses in the retail market.

Detailed information about Dien May Xanh's competitors in recent times.

Company Founded year The distribution of retail chain

Samsung Samsung was founded by In Vietnam, Samsung has 6


businessman Lee Byung- factories and is building a research
chul in 1938 as a small and development center. Samsung
trading company. The latter has invested more than 17.7 billion
is a longtime retailer with USD in Vietnam and currently has
Nguyen Kim. 110,000 officers and employees
with export turnover worth more
than 56 billion USD in 2020.

Nguyen Kim Established in 1992 from


The company has expanded 70
an Electrical-Electronics-
stores over Vietnam.
Refrigeration Store,
developed into Vietnam's
first electronics center in
1996. As one of the oldest
retailer in Vietnam

HC Dien May One of the first electronics HC system has 35 branches in Viet
supermarket systems was Nam.
established in Hanoi in
2006, specializing in
trading in Electronics,
Refrigeration, Household
appliances, Information
Technology, Telephones &
Digital Entertainment
Equipment.
Question 2.

 Identify competition
Along with the development in the 4.0 technology era, followed by the strong
development of the electronics industry and AI artificial intelligence. Modern
electronic devices were born based on the progress of science and technology to
improve quality and efficiency in labor and production. Because of that, the
electronics retail industry was born and is available in the retail market of each
country.

Due to the expansion of automated systems in the industry and the continued
trend of technological innovation, the labor market in Vietnam is experiencing
a scarcity of human resources in the Electronics industry. Workers in the
electronics industry have low professional credentials, according to a report by
the Ministry of Labor, War Invalids, and Social Affairs. Where up to 68.75% of
workers lack credentials or degrees, the majority of them are manual laborers
who assemble and operate machines and equipment.

Currently, the Vietnamese electronics sector is growing mostly as a result of


global firms such as Korea and Japan investing in the field of electronic
component manufacture. Therefore, more and more electronic device retailers
aim to support and always have replacement electronic devices for users' needs.
Like a car must have an electronic chip, a computer must have a CPU,...

● Types of electronic and telecommunications retailers


Due to the strong development of technology, the retail stores of electronic
devices are more and more abundant. Moreover, there are many types of retail
stores in Vietnam. Everyone knows that Dien May Xanh is a retail supermarket
for electronic equipment, but besides that, many retail stores can still meet the
needs of customers. Currently, Ho Chi Minh City has 3 types of retail stores for
electronic devices, respectively Department Stores, Specialty Stores, and
Supermarkets.
o Department Stores
Consumers are always attracted to department stores because they
experience shopping in a nice environment, excellent service and a wide
variety of items. They sell both soft and hard goods (durable items like
appliances, furniture, and consumer electronics). Today, most
department stores focus almost entirely on low-priced goods. The main
divisions include everyday items such as pants, clothes, life support
equipment,... Each business division has its own sales area and customer
service workers.

For example, Gearvn and Phong Vu are two brands that specialize in
selling electronic devices such as computers and phones. Most of the
products here are for gaming and working. More variety of electronic
items.

o Specialty Stores
Specialty Stores is a retailer that has to sell different items, but products
are manufactured under the same brand. In other words, a specialty store
is only selling the specialty of a brand. Specialty stores concentrate on a
small number of closely connected product categories while providing
excellent service. Specialty retailers tailor their retail approach to very
specific market segments by offering extensive but limited assortments
and sales associate experience.

For example: Samsung


Samsung also sells items such as TVs, washing machines, and
refrigerators. Samsung stores only sell products of each of its own
brands and there is no existence of other items without the same brand.
o Supermarket
Supermarkets are modern stores, synthetic or specialized businesses,
with a rich, diverse, high-quality, and high-quality goods structure,
meeting the standards of business areas and equipment art and
management level, business organization; there are civilized service
methods, making it convenient to meet the needs of shoppers' goods.
Diverse things like food, tools, and equipment and so on are not standard
for this kind of item, allowing buyers to buy another item in addition to
their first pick. For example, Big C and Coop Mart.

On the competitiveness of different types of retail stores. Each retail store has its own
charm and different disadvantages. Talking about different types of retail stores for
electronic devices, DienMayXanh is also a great choice for customers. However, each
customer always has different needs, especially in terms of electronic equipment.
Therefore, DienMayXanh becomes very difficult when facing the competition of other
retail stores.

Department Stores is a store that sells one type of item but will aggregate many
different brands. For example, customers have a need to buy a computer and they need
to buy a good computer that can both play games and work. Customers feel that the
place they need to go is like Gearvn rather than DienMayXanh because customers
coming to Department Stores like Gearvn will have more choices and specialized care
for a product they need. In this case, DienMayXanh is not a reasonable choice to meet
the needs of customers.

Specialty Stores is a store that sells only one brand product. The level of competition
in this retail store also worries DienMayXanh. For example, a customer is
knowledgeable about the use and technology of an electronic device. Customers will
compare electronic devices of brands such as Samsung and Dien May Xanh. They
want to buy a washing machine and they will learn the technology and features of
washing machines from 2 different brands.
The supermarket is a shopping mall with a large area and many choices and a variety
of goods. Regarding the retail store with DienMayXanh, the competition is not
significant. Moreover, DienMayXanh is a supermarket specializing in equipment, so
for customers who want to buy equipment and want to buy other items, DienMayXanh
is also a great choice.

Evaluation of Dien May Xanh Supermarket competitiveness


DienMayXanh operates as a Supermarket, which means customers coming here can
often choose from a variety of items distributed by many different businesses, along
with a variety of models and different prices. Unlike most other stores, the
DienMayXanh retail division is also known for its store popularity through its many
stores scattered throughout many cities and urban areas, which also attracts many
investment establishments creating diverse warehouses for sale
DienMayXanh are often customers whose purchasing criteria are more concerned with
quality and price with many types of onions from different brands to be able to
compare, which also attracts customers who focus on efficiency rather than specific
brands
Question 3.

7P Marketing strategies

1. Product:

1.1. Core Products:

Trading services of electrical appliances, high-tech goods and household appliances.


Product at DienMayXanh Supermarket are extremely diverse, from large and modern
groups of goods such as TVs, Refrigerators, Washing Machines, Refrigerators, etc. to
Household products such as Rice cookers, Gas Stoves, Stoves, Electromagnetic, etc.
DienMayXanh also trades in items such as Phones, Tablets, Laptops, Accessories, etc.

1.2. Services:

● Traditional sales: Goods at DienMayXanh store are arranged and displayed by


shelves, by product type and by price segment. This is considered one of the
marketing activities, marketing at the store to sell. Electronics, home appliances and
technology products are sold items, which must be tried and touched before customers
can feel how good the product is, good and durable or not. Therefore, boosting the
purchasing demand of customers.
● Buying online at DienMayXanh websites
● Quick search when knowing the product name: the customer enters "Product
name" in the search box, the system will suggest the correct or closest product name
currently sold at DienMayXanh.
● In addition, DienMayXanh Supermarket also provides customers with 2
flexible purchase methods: "Buy now, deliver to your door" (See goods at home, don't
like - don’t buy) and "Go to the supermarket to see the goods" (keep the goods in
advance) , go to the supermarket to see and buy goods.
1.3. Store: DienMayXanh Supermarket is designed according to the mini model of
generation 4.0, "The warehouse in store". To do this, new shelf frames will be erected.
The items on display will be layered to take advantage of the space, similar to the
display model of a warehouse. Large items such as washing machines are also
arranged in two floors to optimize space.

1.4. Quality: DienMayXanh Supermarket cooperates with many big partners all over
the world namely Samsung, Panasonic, Sony, Hitachi, Daikin, Sanyo, LG, and
Mitsubishi Electrics, Toshiba to ensure the best experiences on the real products.
Therefore, purchasing in DienMayXanh Supermarket is safer than other small retailers
because of its credibility.

1.5. After-sales services:

● Genuine warranty, home exchange: All products of these categories are


imported directly from famous domestic and foreign brands, committed to the
accuracy and honesty of origin, materials, and designs. Therefore, when customers
buy goods at DienMayXanh Supermarket, the products are guaranteed genuine from
the manufacturer and thoughtful service policies
● Any damage, change it immediately or Refund with 50% off the fee.
● Warranty staff: DienMayXanh believes that service quality is the most
important factor for survival and sustainable development. Therefore, DienMayXanh
Supermarket always gives customers professionalism and dedicated service at every
stage: Advice on purchasing, choosing the right product, installing to start using,
guiding care product care, warranty, maintenance ... during the time of using the
product. Especially the policy: Having staff come to the house to warranty.
● Refund

2. Price

Besides providing quality products from reputable brands, and ensuring genuine
products, DienMayXanh Supermarket also builds thoughtful service policies with the
criterion of always prioritizing the interests of customers, improving the shopping
experience of Vietnamese consumers.

Discount: The company must keep up great commerce relationships with other brands
around the world to induce engaging cost approaches. Customers have experienced a
number of discount events with great benefits: “Grand TV Party 100% Gift offered
when purchasing”, Super sale at the weekend: household products are shockingly
discounted up to 50%, etc.

In the current electronics and technology market, the products of the electronics retail
chains on the market today do not have too much difference in product quality and
product brands, mainly products from foreign countries such as Japan and Korea.
Because products in the industry do not have too many differences in quality, design,
and product brand. Second, the market is competitive with many other businesses, so
the price of products of electronics retailers is almost the same.

→ For the above reasons, the enterprise has decided to use its product pricing method
as the "current price method", which means that the price of the enterprise's product is
similar to the price of the competitor's product or there is a difference in price ( 0.3% -
2% ) for each product line.

Besides, providing a wide range of products, DienMayXanh Supermarket also


supports customers with the following services:

● Air conditioner, washing machine, fan cleaning service


● Delivery service, electrical installation
● Electrical authorized repair and warranty service
● Electrical repair and maintenance services

3. Place

Dien May XANH has just marked a remarkable journey when it officially announced
that it has surpassed 1,000 supermarkets in its 10-year journey.
Location: The large and mini DienMayXanh stores are now present in all central cities
of the provinces. The system currently has 300 stores according to the large model,
with an area of 800 - 1,000 m2. Stores are mostly located in developed, densely
populated cities. These things create favorable conditions for DienMayXanh to
develop quickly and attract customers.

Distribution coverage: Growing rapidly, becoming the first electronics retail system in
Vietnam, covering 63/63 provinces and cities, DienMayXanh Supermarket has always
been a leader in serving customers the best.

Distribution channel: DienMayXanh Supermarket operates mainly by selling products


directly to consumers through stores. The sales range of each DienMayXanh store is
about 40-50km, there will be another store.

Picture 1: Distribution channel of DienMayXanh Supermarket


4. Promotion:

4.1. Social Media:

● Take advantage of Fanpage pages with members who can create trends, along
with using images of green people in combination with emerging trends to spread
content on social networks.
● Live images with the green legion. The presence of the Dien May Xanh army
and the haunting song stirred the community and the media. They continue to build
programs on special occasions of the year with the brand's blue legions and bring joy
to everyone. Fanpage pages continuously create minigames, gift-giving contests, etc.
to increase interaction with customers.

4.2. Advertising:

Dien May Xanh's advertising campaign, which started in 2016, was considered a
"bump" in the gloomy market of the advertising industry in Vietnam at that time. The
viral advertisements of Dien May Xanh caused a fever on social networking sites, and
are paying attention to the branded promotional videos that focus on "bombing" on
traditional TV channels, gaining a significant number of followers and followers.
attract a large number of customers. Using TVC to catch the trend is also an effective
Marketing strategy for DienMayXanh. Taking advantage of the heat of the trend,
DienmayXanh has launched extremely successful "trend-catching" TVCs. For each
advertising campaign and advertising objective, Dien May Xanh will offer different
TVCs such as:

● “You want to buy a television” – TVC launching


● “It's too hot” – Air-conditioned TVC
● “Why are you so tired if you want clean clothes” – TVC washing machine
● The corporate made a TVC called "Dien May Xanh" with a straightforward and
amazingly infectious ensemble: "If you need to purchase TV, air conditioners or
washing machines, let's go to Dien May Xanh..." and featured numerous individuals
wearing a fascinating blue bodysuit and a TV-formed cap to act in the video. The TVC
was believed to be the most obsessive advertisement that year and everybody knows
about their service.

Picture 2: Thống kê số lượng người dùng mua hàng điện máy tại điện máy xanh.
(Source: Marketing AI)

4.3. Personal selling:

● Flash Mobs made by blue dancers in the most central locations, such as Nguyen
Hue Pedestrian Street, AEON Mall, NOWZONE, Crescent Mall, BITEXCO
FINANCIAL TOWER, have attracted a large number of audiences and have raised
brand awareness among the people.
● These representatives reach the customers and create awareness among them
about a new product or service and sell the products to the customers. These
representatives build relationships with the customer and promote the product to
different customers within the regions they work.

4.4. Sales promotion:

● Businesses often organize purchase promotions, discounts when buying many


items at once, promotions such as: Buy from 3 to 4 different household items, 5% off
the total payment. Buy 5 to 9 different household items and get 10% off the total
payment
● Return policy: Warranty and return policy apply to all items purchased at store
and in accordance with the store's rules. For example, when you buy a washing
machine “Panasonic 9kg NA-F90A4GRV” for 6,390,000 VND, you will be refunded
after 30 days.
● Delivery policy: Depending on the product, product face value and
geographical distance DienMayXanh Supermarket will support delivery and have
different costs.

Picture 3: Sales promotion of DienMayXanh. (Source: Dienmayxanh website)

5. People:
● Commitment: DienMayXanh Supermarket always attaches great importance to
the development of human resources because for them, people are an important factor
determining the success and development of the Company. DienMayXanh has
appropriate and competitive remuneration and remuneration policies to help attract,
retain and motivate employees.
● Attitude: Dien May Xanh has created trust, and prestige, built loyalty with
customers, reflected in sales and activities of Dien May Xanh and an increasing
number of customers. Dien May Xanh operates with the criteria of being friendly, easy
to use, and fully updated with information to support the shopping and reference
process on the phone as well as online for customers.
● Training: Employees at DienMayXanh Supermarket are trained to work
together to be more perfect, especially to satisfy customers, give customers a feeling
of professionalism, comfort, and comfort and always want to cooperate with the
company.
● Appearance: Currently, the company's sales department and DienMayXanh's
direct sales staff are employees with rich work experience, all of whom have
university degrees, and graduated in marketing. Young, dynamic, and creative.

6. Physical evidence
6.1 Environment
-Color
take blue as the main color for every tvc and mv of the store make an impression and
create associations for customers, make customers aware of the store's brand
-Noise level
The store continuously plays the store's songs to create habits and behaviors for
customers passing by or coming to the store
stuff
continuously to the latest products for customers and all store chains of green
electronics

6.2 Facilitate goods


The first electronics retail system in Vietnam covering 63/63 provinces and cities,
Dien May Xanh Supermarket is always the leading unit in serving customers the best.

6.3 Tangible clues


Distribution channel: Dien May Xanh supermarket operates in the form of selling
products directly to consumers through stores. The sales range of each Dien May
Xanh store is about 40-50km, there will be other stores.

7. Process
7.1 Policies
At that time, Dien May Xanh stores had nationwide coverage, surpassing all other
stores, the Marketing department was responsible for increasing brand awareness. And
the main goal is to help customers think of "Dien May Xanh" when they are intending
to buy electrical appliances. It can be said briefly that this is very unique, when in the
past, advertisements always sneakily took advantage of products, and “Dien May
Xanh” just needed to let people know that they sold electric machines, no need to say
good stuff, good service, ..

7.2. Employee discretion


DienMayXanh Supermarket always gives customers professionalism and dedicated
service at every stage: Advice on purchasing, choosing the right product, installing to
start using, guiding care product care, warranty, maintenance ... during the time of
using the product. Especially the policy: Having staff come to the house to warranty.

7.3. Customer involvement


After more than two months of launching TVC, the total interaction reached
1,349,777.
The presence of the Dien May Xanh army and the haunting song stirred the
community and the media. Green people gather on the most special occasions of the
year such as Christmas and New Year and bring joy to everyone, especially families
with young children, through humorous performances that anyone can dance to.

7.4. Flow of activities


At the end of 2017, Dien May Xanh continued to produce TVCs for the promotion
program "Buy Panasonic to win Iphone X" and TVC for Tet Binh Tuat to thank
customers. This Campaign continues to attract a fair share on social media.
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