23 SALES ACCOUNTING AND DETERMINING BUSINESS RESULTS IN VINATECH MECHANICAL TELECOMMUNICATION CO , LTD

MINISTRY OF FINANCE
ACADEMY OF FINANCE
--------------------

STUDENT: HOANG

THI VAN ANH

GROUP: CQ55/51.06

GRADUATION THESIS
TOPIC

SALES ACCOUNTING AND DETERMINING BUSINESS
RESULTS IN VINATECH MECHANICAL
TELECOMMUNICATION CO., LTD

Major

: English for Finance and Accounting

Student code

: 17522202010165

Supervisor

: MA. TRUONG THI MINH HANH

Hanoi – 2021

Graduation thesis

Academy of Finance
DECLARATION

I hereby declare that the research results in my thesis, the data and results stated in
the thesis are honest, derived from the actual situation at Vietnam Tataci Joint Stock
Company.
Hanoi, May 22 th 2021
Student

Vu Thi Kieu Chinh

Student: Vu Thi Kieu Chinh

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Class: CQ 55/51.06


Graduation thesis

Academy of Finance
ABSTRACT

The study researched factors that influence customers' decisions at Vietnam Tataci
Joint Stock Company. Qualitative research methods combined with quantitative
research are used. The research model consists of six factors that affect a customer's
decision to buy a home: design, financial situation, public utilities, company

reputation, location and marketing. The results of the study identified four factors
that influence the decision to buy a house in an important order: marketing;
location; public utilities and company reputation.

Student: Vu Thi Kieu Chinh

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Graduation thesis

Academy of Finance
ACKNOWLEDGMENTS

My thesis would not have been a success without the extraordinary support of
amazing peoples around me. I would like to extend my deep gratitude to my
lectures, colleagues, friends and family who helped and gave me helpful advice in
this process.
First of all, I would like to express my great thanks to my supervisor, Dr. TRUONG
THI MINH HANH, lecturer of Academy of Finance, for her guidance. I appreciate
her help once again because without her guidance and suggestions, this thesis would
not have been as completely as it is today.
Secondly, I want to show my appreciation to all the teachers at Academy of Finance
for teaching me extremely useful knowledge in 4 years so that I can take advantage
of that knowledge for my thesis and using that knowledge for my future work.
Thirdly, I would like to thank my colleagues at Vietnam Tataci Joint Stock
Company for sharing my job skills and helping me a lot so that I can finish my job
in the best way.

Lastly, I would like to send my gratitude to my family, who have always silently
supported me and encouraged me. Last but not least, I also place on record, my
sense of gratitude to one and all, who directly or indirectly, have lent my hand in
this thesis.

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Academy of Finance
LIST OF ABBREVIATIONS

Tataci., JSC

: Vietnam Tataci Joint Stock Company

HCM

: Ho Chi Minh City

TRA

: Theory of Reasoned Action

TAM

: Technology Acceptance Model

TPB

: Theory of Planned Behavior

Dep

: Department

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Academy of Finance

LIST OF TABLES, FIGURE AND DIAGRAM

TABLE

Table 2.1: Qualifications.................................................................................26
Table 2.2: Report on operating results over the years.....................................29
Table 2.3: Business results of Vietnam Tataci Joint Stock Company.............33
FIGURE

Figure 0.1: Organizational structure of Vietnam Tataci Joint Stock Company.....24
DIAGRAM

Diagram 1.1: Model of stages of the process through procurement decisions....12
Diagram 1.2: Steps to evaluate options to shopping decisions.......................15
Diagram 1.3: Model of TRA...........................................................................18
Diagram 1.4: Technology Acceptance Model (TAM 1989)............................19
Diagram 1.5: Theory of Planned ehavior (TPB).............................................19
Diagram 1.6: Theory of Perceived Risk (TPR)...............................................21
Diagram 1.7: E-Commerce Adoption Mode...................................................22

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Academy of Finance
TABLES OF CONTENTS

DECLARATION................................................................................................I
ABSTRACT.....................................................................................................II
ACKNOWLEDGMENTS...............................................................................III
LIST OF ABBREVIATIONS..........................................................................IV
LIST OF TABLES, FIGURE AND DIAGRAM..............................................V
TABLES OF CONTENTS...............................................................................V

INTRODUCTION.............................................................................................1
1. Rationale of the study....................................................................................1
2. Aims of the study...........................................................................................2
3. The scope of the study...................................................................................2
4. Methods of the study.....................................................................................2
5. Organization of the study..............................................................................3
CHAPTER I: LITERATURE REVIEW...........................................................4
1.1 Personal value.............................................................................................4
1.1.1 The theory of comfortable life values......................................................9
1.1.2 The theory of the value of peaceful life...................................................9
1.1.3 Theory of social recognition value.........................................................10
1.1.4 The theory of social integration..............................................................11
1.2 Consumer procurement decisions.............................................................12
1.3 The link between personal value and consumer procurement decisions...16
1.4 Some theoretical models related to factors in which the decision to buy. 17
1.4.1 Theory of Reasoned Action ( TRA).......................................................17
1.4.2 Technology Acceptance Model (TAM)..................................................18
1.4.3 Theory of Planned Behaviour (TPB)......................................................19

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Academy of Finance

1.4.4 Theory of Perceived Risk (TPR)............................................................20
1.4.5 E-commerce Adoption Model (E-CAM)................................................21
CHAPTER II: THE STUDY...........................................................................23
2.1 Company overview...................................................................................23
2.1.1 History of formation and development..................................................23
2.1.2 Company structure and resources..........................................................24
2.1.3 Business situation of the company.........................................................27
2.2 Situation of factors affecting customers' decision to buy a house at
Vietnam Tataci Joint Stock Company.............................................................30
2.2.1 Consumer characteristics of home products at Vietnam Tataci Joint
Stock Company...............................................................................................30
2.2.2 Consumer demand for home products...................................................34
2.2.3 Development trends of the real estate market........................................37
2.2.4 Development trends of the real estate market........................................41
CHAPTER III: RECOMMENDATIONS.......................................................45
3.1 Overview of factors affecting home purchase decisions...........................45
3.2 Recommendations and solutions at Vietnam Tataci Joint Stock Company. 47
3.2.1 On the price of buying a house...............................................................47
3.2.2 About trust when buying a home............................................................48
3.2.3 Improving the quality of consumer home purchase services.................49
3.2.4 Enhancing consumer loyalty..................................................................50
CONCLUSION...............................................................................................51
REFERENCES................................................................................................52

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Academy of Finance
INTRODUCTION

1. Rationale of the study
Housing is one of the essential needs of all classes of people, an important premise
contributing to raising living standards, social stability, positively impacting the
construction and development of the country. From 2016 to now, Vietnam's real
estate market is warming up. In particular, land and housing transactions are quite
affordable in both the central and suburban areas. Housing prices have all recorded
very high increases within 1 year. According to the Vietnam Real Estate Association
by the end of 2020, real estate inventories have decreased compared to the same
period of 2019. Summing up the beginning of 2021, real estate business activities in
Vietnam increased by 30-50% compared to the same period last year. The price of
land and housing products increased from 40-60%, especially with the project
increasing to 100% (Pham Tam and Kim Khanh, 2019). In addition, Vietnam also
focuses on developing housing for workers in key industrial parks. In the near
future, Vietnam's real estate market has also shifted to the tourism real estate
product line, partly with more new projects with key and convenient locations. Not
only encapsulated in the product of subdivision – the main product of the market so
far, but investors also develop ready-built housing products. With the current
competitive real estate market, understanding the wants, needs and factors that
influence customers' decision to buy a home is an important issue for real estate
businesses. Therefore, it is necessary to study to identify what factors affect the
choice of accommodation in new urban areas, new residential areas are built from
which there are policies, in order to meet the needs of each group of subjects in the
most effective way.
Vietnam Tataci Joint Stock Company works in the following fields: construction,

architectural design of civil and industrial works, real estate business, etc.
However, from the end of 2020, the purchasing power of housing in Vietnam has
decreased sharply, especially in residential areas of businesses in general and

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Academy of Finance

Vietnam Tataci Joint Stock Company in particular, partly due to the impact of the
covid-19 epidemic. The house can also be a place of residence or spiritual refuge,
home can be related to a state of being in shelter or convenience. From that practice,
the research topic is necessary to identify the factors that influence the decisions of
customers, based on which gives management implications for good efficiency in
the decision to buy a house. I chose the topic " Factors influencing consumer buying
intention for housing at Vietnam Tataci Joint Stock Company " as a research topic.
2. Aims of the study
Identify personal value factors affecting the decision to buy a house of customers in
Tataci., JSC.
Determine the impact of each value factor affecting the decision to buy a house of
customers in Tataci., JSC.
Suggest some implications drawn from the research results to increase policies for
managers to attract more customers and increase revenue for businesses.
3. The scope of the study

As mentioned above, the thesis concentrates on factors of personal value affecting
the decision to buy a house by a customer of Tataci., JSC. It focuses on collecting
and analyzing the figures from the accounting department of the firm within three
years from 2018, 2019 to 2020.
4. Methods of the study
The study uses a combination of qualitative research methods with quantitative
research. Qualitative research is conducted through group discussions and expert
opinion (01 lecturers on Marketing research; 04 managers who are knowledgeable
about the real estate market) to identify factors influencing a customer's decision to
buy a home; determine the research model and adjust the preliminary scale suitable
for the research area (the scale in the study inherits the scales that have been tested
in previous studies). The results of the qualitative study have also agreed to use the
research model of the company and proposed adding the company's reputation

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Academy of Finance

factor to the proposed research model. Next, quickly interview 20 customers by
convenient sampling method to check the preliminary questionnaire, adjust the
scales to suit the practice and test the reliability, the results of the official
questionnaire to use for official research. Quantitative research helps to quantify the
relationship between factors through the application of statistical analysis tools,

using a 5-point Likert scale to measure the value of observed variables.
5. Organization of the study
The thesis includes the following contents:
Chapter 1: LITERATURE REVIEW
Chapter 2: THE STUDY
Chapter 3: RECOMMENDATIONS

Student: Vu Thi Kieu Chinh

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Class: CQ 55/51.06


Graduation thesis

Academy of Finance
CHAPTER I: LITERATURE REVIEW

Chapter 1 introduces some basic theoretical foundations of consumer behavior and
customer buying behavior. I choose the model combining TAM, TRA, TPB and TPR
as the basis for my research on the factors affecting the decision to buy a house.
From there, I give the factors that affect the decision to buy a house and the
intermediate relationship between the factors of customer satisfaction and loyalty
that affect the next purchase decision of consumers.
1.1 Personal value
Value is a standard principle that is widely and seriously applied. Values defined
below the three focuses are self-selection, value and action. The choice includes
freedom of choice, the selection from a variety of options and selections after a
thorough review of all options; appreciated means value; actions include actions

according to choice and repetitive actions; selection relates to the perception aspect
of the assessment, which must be done, if forced, the assessment will not occur;
Selection from a variety of options suggests that a person's state of mind can choose
from a variety of available sources, but if the right to choose is rejected or deprived,
the assessment is unfair; choosing after a thorough review of the choices will help
us make an informed choice. On the other hand, appreciation belongs to the
emotional aspect, it is simply to praise and recognize someone when they perform
well the assigned work. Finally, the action is tied to the aspect of behavior, which
means that we convey what we are thinking in our heads into action. It consists of
action along with choice, not just talking, the assessment must be carried out
regularly because an authentic value does not exist only for a short time.
According to Rokeach (1968, 1973), personal value is a belief that exists in the
individual or society in the appropriate way of behaving, clearly for things that are
contrary to the code of ethics in the way behavior exists in society.

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Academy of Finance

Individual values are generally accepted as a major influence on human behavior
and consumption patterns (Keng and Yang, 1993) and are used as a tool for
segmentation(Vinson and Scott, 1977. Schiffman and associates, 2003). Many
previous studies have suggested that personal values are useful in understanding

complex behaviors such as the selection of a particular brand in a type of product
label (Pitts and Woodside, 1983). It is incredibly important for the marketer to
capture cultural connections evoked by a brand and combine them more powerfully
with the personal values of a target audience (Miller, 1999).
Each person's personal value system is fundamental to that person's way of life, it
provides a reference framework for that individual to judge what is right or wrong,
which is important or not. In other words, according to Schwarts (1994), personal
values can be understood as "desirable goals, changes to become important, which
as the basic elements guide people how to live". And Anana and Nique (2007) argue
that personal values form in each person the standards and rules to direct his
behavior towards others or others. According to Schiffman and Kanuk (1997),
personal value is part of a personal belief consisting of 5 characteristics:
Relatively few in the crowd.
To guide the implementation of culturally appropriate behaviors.
Prolonged or difficult to change.
Do not be squeezed into a particular situation, and
Widely accepted by social members.
From a perception point of view, personal values prove the basis for an individual's
view and attitude to others or others. It is used to evaluate and compare one person
to another (Kamakura and Novak, 1992). Therefore, personal value is an inner
belief that exists within human life; They express expectations in human life and are
used as a court template for resolving conflicts, making decisions, awareness and
regulating personal and social relationships (Lages and Femandes, 2005).
According to Zeithaml (1988) means that the ending chain approach explains how
decentralization of an individual's perception throughout the process of

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Graduation thesis

Academy of Finance

consumption. To a lesser extent, he/she is interested in product/service
characteristics. The level of quality begins when the individual controls all these
perceptions in accordance with his/her initial expectations of that product/service. If
this level is successful, they continue to compare all products/services in terms of
the advantages that have been shown and the sacrifices necessary to get it. But in
general, purchasing decisions will depend on the responsivity of the product/service
or reflect one's individual values. Personal value allows a person to understand the
personal reasons for explaining why that product/service was selected. That is also
why it is so important to measure individual value.
Values have been understood as internal nature, long-term and relatively stable
beliefs in an individual's life, defined as psychological symbols of need, and used
by individuals as a common basis for conflict and settlement of decisions,
identification, regulation and modification of relationships between individuals,
organizations and society. A value is a long-term belief that particular management
or end-state of existence is more personally or socially appropriate for the opposite
management or vice versa to the end state of existence (Rokeach, 1973, p. 5).
According to Rokeach (1973), there are two types of values: object values and
individual values. The object value is related to the value of an object, achieved
through comparison with other objects, and turned into a payment amount when it is
purchased. The second type is related to the values of ownership of the individual. A
deeper understanding of these values can lead to a better understanding of object
values (Zeithaml, 1988; Feather, 1995). This study focuses on individual values,
also known as individual values. The impact of personal value on consumer

behavior has been profoundly explored (Beatty et al., 1985). One of the most
powerful ways to understand and reach out to consumers is by understanding their
values and the system of values (Durgee, 1996). Values are the norm, from which
beliefs, attitudes, therefore, behaviors are created (Posner and associates, 1987.
Madrigal and Kahle, 1994; Carlson, 2000). In this sense, individuals show their
value and lifestyle through the acquisition of products/services (Kahle, 1988).

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Academy of Finance

At the same time as their research, the authors have also given the impact of
individual value on purchasing decisions.
Impact of personal value

Study authors

to the purchase decision
Values are likely to provide strong explanations of (William, 1968).
human behavior because they undertake as
standards or ethical standards
Predict consumer behavior

Henry, 1976, Vinson and
Munson, 1976, Bekker and
Connor, 1981, Munson and
McIntyre, 1979, Schwartz

and Bilsky, 1987.
As a main theoretical foundation for psychological Kahle, Rose and Shoham,
research on consumer value systems

2000

Is "abstract ideal" that represents a person's Rokeach 1973, p. 10
"conception of desire"
Those are key factors in the structure of consumer Homer and Kahle, 1988
perception, which means that by understanding
and taking action on the personal values of
consumers, one can better understand consumer
behavior
A powerful tool for understanding and achieving Madrigal and Kahle, 1994
consumption habits, as they can criticize and
explain consumer attitudes and behaviors
Individual values are those that are selected from Wang 2006
social values and refer to the normal behaviors of
a person, reflecting an individual's choice away
from the different social values or value systems
that have shaped the specific behavior of the

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Academy of Finance

individual
Value is the moral and ethical standard that an Liao 2007
individual has learned under the cultural influence
and can help an individual to establish a set of
behaviors, attitudes and beliefs that are acceptable
to society
Profound personal value

Rosenberg and Fishbein

General consumption value
Product-related beliefs
The choice of individual values and how they are measured depends on the choice
of model (Agle and Caldwell, 1999). The model exists where the preferred dosing
approach, which comes from the principle of a set of individual values, is
established as a priority, which explains the behavior of the individual to a defining
problem. Along this line are included, from a general perspective, the Rokeach
Value Scale (RVS) (1973) and the Schwartz and Bilsky catalogs (1990). From a
consumer analysis perspective, we have the Vinson al set (1977) which means chain
ending model, (1983) list of values of Kahle (LOV), Mitchell values and lifestyle
(1983) (Vals) classification and Durgee (1996) list of values. If an advantage lies in
the ease of access to problems and analysis, the difficulty lies in two problems:

firstly, the selection of the right scale for use, and then an incorrect assessment of
the result if the responsible person puts on a set of pre-defined values that cannot be
completely related to the problems.
From the definitions of personal value, scholars have also studied and given
components of individual values. The table below presents different views of
scholars on the composition of personal values.
The components of the personal value are used to assess the impact on the decision
to buy.

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Academy of Finance

1.1.1 The theory of comfortable life values
Everyone strives to study, work, constantly improve themselves to have a more
comfortable life. When life is fully equipped, they will feel free in life, free to
accompany and confident in relationships with people around them.
According to Rokeach (1973), if a product increases the level of comfort in life,
brings or improves a greater sense of comfort, freedom and confidence in
communication and the user of that product realizes its value. In general, this
product can improve the comfortable life of users.
The theory of comfortable life values is associated with different attitudes of
customers between personal values and decisions to buy consumer products.

Comfortable life values help create trust and value that lead to customers' shopping
decisions.
From there, it is possible to hypothesized H1 as follows: The higher the value of a
comfortable life, the more it increases the shopping decisions of customers.
1.1.2 The theory of the value of peaceful life
Peacefully, if any person is asked if they want a peaceful life, make sure they
quickly and confidently answer that they truly want peace and happiness. Basically,
peace is no longer a requirement of humanity, but it becomes a fundamental human
right. Man is created, deserves to receive love, to receive happiness, and that
becomes the right of all. So the more each of us does the best, the easier it is to
achieve peace and happiness, and it is mental peace for the spirit to be serene.
Serenity is one of the basic human rights and the basis for people to desire a happy
life. People can't do something if they don't feel serene in their hearts. With a sense
of serenity, then everything is done miraculously and memorably, especially in
order to convey a sense of serenity to others directly or indirectly. Serenity is
necessary for the current life situation, people should have a sense of serenity, peace
of mind so that they can distinguish the good, the right, and then be able to act on
the right.

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Academy of Finance

According to Rokeach (1973), if a product increases the level of peace in life,
brings or improves the feeling of satisfaction, safety, peace of mind, and the user of
that product realizes its value. In general, this product can improve the peaceful life
of users, and protect consumers from intimidation or prevent pressure in their lives.
The theory of peaceful life values is associated with different attitudes of customers
between personal values and decisions to buy products of consumers. The value of a
peaceful life helps to create trust and value that leads to customers' shopping
decisions.
From there, it is possible to hypothesized H2 as follows: The higher the value of a
peaceful life, the more it increases the purchase decision of customers.
1.1.3 Theory of social recognition value
Used to analyze the nature of social recognition and react actions to test hypotheses
with different influences.
According to Stajkovic and Luthans (1998), social recognition includes the
charisma of the individual, the influence, transmission of the individual through
interest, acceptance from others and they appreciate the work of that individual
performing. While social workers do not show direct financial costs, it includes the
use of time, effort and interactive skills. Bandura (1986) argues that social
recognition is achieved from its own predicted value, not from the social reaction.
According to Stajkovic and Luthans (1998), people always want to be promoted,
rewarded and always want social recognition, with the correlation that those who
take positive action will receive worthy rewards, and so those rewards will become
the motivation for future action. Therefore, people will be in a good way to perform
behaviors that they believe will receive social recognition and avoid performing
behaviors that are not accepted by others.
According to Bandura (1986) also argued that the encouraging power of social
recognition is recognized by humans through their ability to perform careful
behavior. Based on receiving social recognition and then predictive behavior will be
carried out and action can be planned for the future.

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Graduation thesis

Academy of Finance

According to Stajkovic and Luthans (1998), the individual considers whether the
product is aimed at gaining respect from others, social recognition and social status,
as well as whether it allows achieving a more satisfying and enjoyable life. From
there will affect the behavior of that individual.
The theory of social recognition relies more on awareness than learning from
society and how to perform the behavior. The behavioral theory includes a
frequently repeated behavior system, which then expands on behavioral change.
Moreover, in the theory of social recognition, learning is seen as gaining knowledge
through the process of accepting information. In other words, in the theory of social
recognition, the "social" part is seen as the source of human actions and thoughts,
while the "recognition" section shows that the distribution of the recognition
process influences human actions and motives. For example, a lot of human
knowledge and behavior is generated from the organizational environment in which
they operate, or in other words, the participants of the organization will take action
based on different available information and on their personality.
On the basis of the stated theory, the H3 hypothesis is given as follows: The higher
the value of social recognition, the more it increases the purchasing decisions of
consumers.
1.1.4 The theory of social integration

There are at least three different ways to understand the concept of social inclusion,
among which includes equal goals, opportunities and rights for all. In this case,
becoming more integrated will show a higher chance of improving life. However,
for others, increasing integration can have negative implications, creating an image
of unwanted imposing on those who are unwilling to change. And there are also
some others who argue that this integration is neither a positive factor nor a
negative one, it is simply a way of describing human relationships in society. Social
integration as a goal is encouraged, obviously the more the goal is achieved through
a variety of policy methods. Many people around the world pay attention to the

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Academy of Finance

benefits they have available before, while others dislike or do not have benefits, and
they hope that if the policy is appropriately designed, this distinction will diminish.
According to Bandura (1986) and Stajkovic and Luthans (1998), consumers are
aware that a product will strengthen the relationship, help integrate the group, or
improve better relationships in the social, professional, or family domain, and this
product will help them contribute to social integration, and of course the individual
will notice the personal value in this product. From there they will make a decision
to buy and consume that product.
Development economists also argue that the development of the economy entails an

increase in the need for a personal place in society. Therefore, consumers in
developing countries tend to be interested in consuming products and brands that
can help them express their position in society. At the same time, consumer trends
will increase as consumers become aware that using the product enhances
relationships, helps to integrate the group, or improves better relationships in the
social, professional or family sectors, and this product will help them contribute to
social integration.
On the basis of that theory, the H4 hypothesis can be formed as follows: The higher
the value of social integration, the more it increases the purchasing decision of
consumption.
1.2 Consumer procurement decisions
According to Philip Kotler, the process of passing consumer procurement decisions
takes place through the following stages

Need
recognition

Information
search

Need
recognition

Option
evaluation

Purchase
decision

Post

purchase
evaluation

Diagram 1.1: Model of stages of the process through procurement decisions

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Graduation thesis

Academy of Finance

Identify your needs
The procurement process begins to occur when consumers are aware of their own
needs. According to Philip Kotler, the need arises due to internal six activity and
external six activity.
Internal stimulation is the usual human needs such as hunger, thirst, love, love,
admiration,... For example, a person who feels hungry wants to eat; feeling thirsty,
wanting to drink; if you feel hot, you want to go swimming.
An external stimulus such as time, change due to circumstances, environment,
consumer characteristics, social factors such as culture, reference gender,
requirements commensurate with personal characteristics, marketing s stimulation
of marketing workers,...
The problem at this stage is that the marketer has to anticipate what needs
consumers want to be satisfied? Why do they have that need? How will they want to
satisfy their needs? With what product? With what characteristics?...

Search for information
According to Philip Kotler, when demand is strong enough, it will form a motive
that motivates consumers to seek information to understand the product. The
process of searching for information can be "inside" or "external". However, if the
internal search is successful, there may not be a search for information from an
external source.
The sources of information consumers use to learn the product varies depending on
the product they want to buy and the characteristics of the buyer. It is possible to
divide consumer information sources into four groups:
- Source of personal information: information from family, friends, acquaintances,
neighbors.
- Source of commercial information: information received from advertisements,
sellers, written on the packaging, at fairs and exhibitions.
- Public information sources: objective information on the mass media, functional
agencies of the government, organizations.

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Academy of Finance

- Source of experience information: through direct learning such as contact, trial.
Each source of information takes on a different role to some extent affecting the
shopping decisions of consumers. For example, commercial information sources

undertake the notification function and sources of personal information that take on
the role of affirmation or evaluation. However, the number and impact of
information sources on shopping decisions vary depending on the type of product
and the characteristics of the buyer.
Evaluation of options
Before making a shopping decision, consumers process the information obtained
and make a value assessment of the competing brands. The normal assessment
process is carried out according to the following principles and order:
First, consumers consider each product to include a set of attributes. In particular,
each attribute is assigned to a useful function that the product can bring satisfaction
to consumers when owning it. Product properties are shown in the following
aspects:
- Technical characteristics: physics: formula, composition, color, size, gauge.
- Characteristics of use: duration of use, durability, specificity.
- Psychological characteristics: beauty, elegance, personality, comfort, pride in
ownership.
- Combined characteristics: price, brand, packaging.
Second, consumers tend to categorize attributes according to varying degrees of
importance based on their needs to be satisfied.
Thirdly, consumers tend to build themselves a set of beliefs in brands as a basis for
evaluation the properties of the product. The consumer's choice trend is that they
will choose which brands of goods they can bring them satisfaction from the
attributes of the product that interest them to the maximum. However, the results of
this assessment depend on the psychology, economic conditions and the specific
context in which the shopping behavior of the consumer takes place. Therefore, the
task of marketers is to understand how consumers evaluate brands to change and

Student: Vu Thi Kieu Chinh

14

Class: CQ 55/51.06


Graduation thesis

Academy of Finance

redesign the company's products with characteristics that consumers prefer;
depicting to make buyers pay more attention to the characteristics that their
products have the advantage of; change consumers' confidence about the important
characteristics of products they miss-evaluate.
Buying decisions
After evaluation, shopping intention will be formed for the brand that receives the
highest score and comes to the shopping decision. However, according to Philip
Kotler there are two factors that can be intermingled before consumers make the
following shopping decisions:

Attitudes of
others
Options
evaluation

Purchase
intention

Purchase
decision
Unexpected
situational

factors

Diagram 1.1: Steps to evaluate options to shopping decisions
The first factor is the attitude of relatives, friends, colleagues who support, or
oppose. Depending on the intensity and direction of these people's supportive or
objectionable attitudes, consumers make the decision to shop or abandon their
shopping intention.
The second factor is unexpected situational factors. Consumers form purchasing
intention on the certain basis such as; expected income, price, expected benefits,...
Therefore, when situations change the basis that leads to the intention to buy (for
example, the risk of losing a job; prices go up; products do not meet
expectations,...), they can change, even abandon the intention to shop.

Student: Vu Thi Kieu Chinh

15

Class: CQ 55/51.06


Graduation thesis

Academy of Finance

Therefore, consumers somehow reduce risks, such as avoiding buying decisions,
collecting news from friends, prioritizing big, warranty-guaranteed brands,....
Market people must now understand the factors that cause risk awareness where
consumers provide information, help consumers to reduce their risk of perception
and increase the chances of buying products and services of the business.
Post-purchase behavior

After purchasing, consumers may feel satisfied or dissatisfied to some extent about
the product and then take actions after purchasing or reacting to the product or how
to use it.
If the features and uses of the product best meet their wait, then consumers will be
satisfied. As a result, shopping behavior is repeated when they need it, or introduces
(advertises) to others. In the opposite case, they will be annoyed and establish a
psychological balance by turning to other brand consumption, and at the same time
it is possible that they will slander that product to others.
Therefore, the task of marketers is to monitor how consumers feel and handle
products to apply appropriate measures to take advantage of opportunities, or
minimize customer dissatisfaction after the purchase.
1.3 The link between personal value and consumer procurement decisions
As presented, there have previously been some studies that have suggested that
personal value influences consumer shopping decisions such as: Carman (1977);
Williams (1979); Kropp, Lavack va Holden (1999); Doran (2009). Consumer
behavior is seen as a means to achieve a final desired state or certain value, which
has been documented in documents (Gutman (1982), Reynolds and Gutman (1988),
Michon and Chebat (2004).
Although the value of customer perception is considered a trade-in between price
and quality (Sinha and DeSarbo, 1998), in fact, it is built in a more ambiguous and
abstract way, in which variables such as price perception, quality, benefits and
sacrifice can consider the impact on value perception (Holbrook, 1994; Sinha and
DeSarbo, 1998). While customer perception values have been identified and

Student: Vu Thi Kieu Chinh

16

Class: CQ 55/51.06

Graduation thesis

Academy of Finance

adjusted by a number of different researchers, the definition formulated by Zeithaml
(1988, p. 13) has been the most popular basis for value building awareness
customer research, which is: "a general consumer assessment of the use of a product
based on the perception of what is being received and what is what is given". The
basics of this definition point out that there is recognition of the benefits and
sacrifices necessary for the definition of valuable consumers. In the market context,
value is not limited to functional aspects of quality and price, but can also include
social, emotional and knowledge value components (Sheth et al, 1991.). In essence,
customer satisfaction is the reaction of the value received during the exchange
(Woodruff and Gardial, 1996). As a result, managers must first consider what is the
value of customers before they take measures to measure and monitor satisfaction.
The important prep behind this recognition is that value can be considered as a
perception assessment, while satisfaction in turn controls behavior.
1.4 Some theoretical models related to factors in which the decision to buy
1.4.1 Theory of Reasoned Action ( TRA)
The theory of reasonable action proposed by Ajzen and Fishbein (1975) is
considered one of the pioneering theories, being the most important foundation in
the study of socio-psychology in general and consumer behavior in particular
(Puschel and associates, 2010). According to this theory "designed to account for
general human behaviors". According to TRA, behavioral intention is affected by
two factors: individual attitudes and subjective norms of their behavior. An
individual's attitude is measured by a positive or negative consumer belief in the
attributes of the product. Meanwhile, subjective norms are affected by faith and
motivation (Ajzen and Fishbein, 1975). The TRA model and the factor relationships
are shown in Diagram 1.3

Student: Vu Thi Kieu Chinh

17

Class: CQ 55/51.06