Analyzing the impact of individual lecture factors on new product adopting behavior of consumers in hanoi

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CHAPTER 1. OVERVIEW OF THE STUDY
1.1. Reasons to choose the subject
New products are a vital part of the growth and the competitiveness strategy of
enterprises. In fact, a large percentage of the sales of the enterprises are obtained from
new products. In contrast, the experience of the world also indicates that many new
products are unsuccessful and not be accepted by customers. Therefore, the
knowledge of the behavior of new product adoption by consumers will be a key
factor in ensuring that the enterprises will develop new products successfully.
In the world, there have been a lot of studies on the behavior of new electronic
product adoption. Most of the studies have focused on the impacts of product
characteristics, demographic characteristics and innovativeness on new electronic
product adoption behavior that have missed one important factor, individual culture.
In fact, in recent years, personal culture has played a significant role in
promoting the behavior of new electronic product adoption by consumers in Vietnam.
It is evidence that the personal culture factors such as originality, difference,
individuality, stylish, self-disclosure, activeness, freedom of choice are often
emphasized in the advertising messages of the electronic products for personal use to
convince consumers. As a result, the sales of the electronic products in Vietnam in
recent years tend to increase, especially electronic products for personal use.
Therefore, a study to test whether the individual cultural factors really affect the
behavior of new electronic product adoption behavior is theoretically and practically
essential. With the reasons above, the study entitled “Analyzing the Impact of
Individual Lecture Factors on New Product Adopting Behavior of Consumers in
Hanoi; The Group of Consumer Electrical Goods" has been conducted.
1.2. Objectives of the study
Objectives of the study:
- Firstly, develop a scale of new electronic product adoption behavior
- Next, determine the impacts of factors such as individualistic-self,
collectivism, uncertainty avoidance, and innate consumer innovativeness on the new

electronic product adoption behavior.
- Finally, propose some solutions to accelerate new electronic product adoption
in Hanoi.

Research questions:
- What is the behavior of new electronic product adoption by consumers in
Hanoi urban area like?
- Do the personal cultural factors affect the behavior of new electronic product
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adoption? Level of impact?
- What are solutions to accelerate adoption of new electronic products?
1.3. Objects and scopes of the study
1.3.1. Objects of the study:
The objects of the study include:
- Behavior of adoption and scale of the behavior of new electronic product
adoption by consumers.
- Theory and Practice of the impacts of personal cultural factors on the
behavior of new electronic product adoption by consumers in Hanoi urban area.
1.3.2. Scope of the study:
• Product group of the study
To achieve the objectives of the study, the electronic products for personal use
(laptops, tablets, mobile phones) are selected to conduct research for the following
reasons:
- This is a group of high-tech and innovative products considered the
appropriate context for research on new product adoption behavior.
-

Key feature of electronic products for personal use is used for personal
purposes. Therefore, the selection and consumption can clearly reflects the personal

characteristics.

• Space of the study: Surveyed subjects are consumers in Hanoi urban area.
• Time of the study: The study is conducted in 2013.
1.4. New contributions of the study
1.4.1. In terms of theory
(i) The study has affirmed the impact of innovativeness on new electronic
product adoption behavior in Vietnam. Innovativeness has a positive and strong
impact (β = 0.169) on the new electronic product adoption behavior.
(ii)

The study has supplemented and proven 2 individual cultural factors
affecting the new electronic product adoption behavior in the context of economic
transformation of Vietnam to the system of elements mentioned in the previous
studies. These additional factors include individualistic-self and uncertainty
avoidance. The individualistic-self has a positive and strongest impact (β = 0.204),
while uncertainty avoidance has a negative and strong impact (β = - 0.178) on the
new electronic product adoption behavior.
(iii)

The study has developed a scale of the new electronic product adoption
behavior. It is the frequency of purchasing new consumer eletronics that shows level
3

of the behavior of new electronic product adoption by consumers in a certain time
period. This scale has not been mentioned in the previous studies.
1.4.2. In terms of practice
(i) The study has identified and specified the level of impact of each individual
cultural factor on new electronic product adoption behavior by consumers in Hanoi
urban area. Thereby, it has supported enterprises in controlling these factors to

increase the success of new electronic products.
(ii) The study has made recommendations for the enterprises manufacturing
electronic products for reference and use in the process of new product marketing.
1.4. Organization of the study
To present the entire contents of the study, it is organized into the following
five chapters:
Chapter 1: Overview of the study
Chapter 2: Rationale and model of the study
Chapter 3: Methodology
Chapter 4: Findings
Chapter 5: Discussion and recommendation

CHAPTER 2. RATIONALE AND MODEL OF THE STUDY
IMAPCTS OF SOME INDIVIDUAL CULTURAL FACTORS ON THE NEW
PRODUCT ADOPTION BEHAVIOR
2.1 Overview of the studies on the new product adoption behavior
2.1.1. Overview of the studies in the world
2.1.1.1. The concepts of the new product adoption behavior
Around the world, there are two concepts of new product adoption behavior.
One is that new product adoption is a process. Another is new product adoption is a
behavior (Rogers and Shoemaker, 1971; Hirschman, 1980, Midley and Dowling,
1978). The concept of new product adoption of Rogers and Shoemaker (1971) is used
more commonly.
2.1.1.2. Overview of factors affecting the new electronic product adoption behavior
From summary of the previous studies, it can be seen that the factors affecting
new electronic product adoption behavior have been identified and confirmed. These
factors can be divided into three groups. The first group presents demographic
characteristics. The second is psychological characteristics such as innate consumer
innovativeness and consumer attitude. The last one is the perception of the attributes
of the new products.

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Demographic characteristics
Most studies have confirmed that those adopting new electronic products are
generally male, having better jobs and higher income and education level (Dickerson
and Gentry, 1983; Wang, 2006; Venkatraman, 1991). In addition, Dickerson and
Gentry (1983), Wang (2006) and Im, et al. (2003) have demonstrated that the age has
negative impact on the behavior of new electronic product adoption while
Venkatraman (1991) has confirmed the opposite view point.
Psychological characteristics
In fact, the results of experimental studies inthe US, Europe and Asia on the
relationship between innate consumer innovativeness and the new product adoption
behavior have shown very different evidences, from a strong and positive relationship
(such as the studies of Foxall and Bhate, 1991; Goldsmith et al., 1995; Wood and
Swait, 2002; Paswan and Hirunyawipada, 2006; Ho and Wu, 2011), to a very weak
relationship (such as the studies of Im et al., 2003; Chao et al., 2010, 2012). In
addition, consumer attitudes have a significant impact on the new electronic product
adoption behavior (Wang, 2006).
Perception of the attributes of new products
Perception of the attributes of new products affects the new electronic product
adoption behavior (Paswan and Hirunyawipada, 2006; Ho and Wu, 2011);
Thus, the results of the studies in the world show a lack of studies explaining
the new electronic product adoption behavior in terms of culture.
2.1.2. Overview of the studies in Vietnam
Up to the completion of the study, in Vietnam, there is no official works with
similar or same contents as this study.
2.2. Theoretical foundations of the new product adoption behavior
2.2.1. Concepts
2.2.1.1. Concept of new products
According to Kotler (1994), new products may be new products, in principle,

improved from existing products or new brands as a result of research, design and
testing of enterprises (Kotler, 1994).
2.2.2.2. Concept of the behavior of new product adoption
According to Rogers and Shoemaker (1971) representing the behavior concept,
“The new product adoption behavior is the degree to which an individual accepts
innovation relatively earlier than other individuals in society."
According to this concept, the behavior of new product adoption not only
includes new product purchase but also relates the time of the new product adoption.
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2.2.2.3. Consumer electronics - CE
According to Webopedia, consumer electronics, referred to as electronic
products, include devices that contain electronic circuit boards designed for everyday
use. The electronic products include televisions, cameras, digital cameras, phones,
computers, camcorders, DVD, clocks, audio equipment, headphones and some other
products.
2.2.2. Measurement of the new product adoption behavior
2.2.2.1. Time of new product adoption
The new product adoption behavior by consumers is measured by the time of a
specific new product adoption over the time of adoption of other consumers (Rogers
and Shoemaker, 1971).
Advantages:
- The scale is based on the real behavior of new product purchase of customers.
- The scale is simple, easy to use.
Limitations:
- This scale only measures a single product and has been criticized for
sensitiveness and creation of biases in the study (Midgley and Dowling, 1978).
- The scale may be wrong due to the variable situations.
- Difficulties in the process of collecting the data because consumers are
required to memorize the time of new product purchase to answer the questionnaire.

2.2.2.2. Number of new products owned by consumers
The behavior of new product adoption by consumers is measured by the
number of new products owned by customers (Goldsmith et al., 1995). According to
this measure, researchers shall list new products at the time of the investigation, and
then ask the respondents on the number of new products in the list they own.
Advantages:
- The scale is based on the real behavior of new product purchase of customers.
- This scale refers to an overall behavior other than a specific product.
Limitations:
- This scale only provides the cross-sectional data.
- Researchers may have trouble listing new products at the time of the survey.
2.2.2.3. Intention to purchase new products
Thirdly, the behavior of new product adoption by consumers is measured by

intention of purchasing new products (Holak and Lehmann, 1990).
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If the first and the second scale represent the real behavior of new product by
consumers, the third scale shows the intention to purchase new products
2.3. Theoretical foundations of culture and individual culture
2.3.1. Concept of culture and levels of culture
2.3.1.1. Concept of culture
According to the simplest concept of Yeniyurt and Townsend (2003), "Culture
is seen as the shared trust and values."
According to Hofstede (2001),

"Culture is a system of shared values and ideas
that distinguish the members of one group with another group"
The common feature of these is that the culture represents spiritual values,
which converges in each individual as social perception and labor capacity.

2.3.1.2. Levels of culture
Culture is divided into 3 levels by Yan Luo (2009): Social culture; Communal
culture; Individual culture (Figure 2.16).
















Figure: Levels of culture

Source:

Yan Luo, 2009

Social culture
High Culture
Macro culture
Intermediary culture
Micro culture

Wide
cultural
environment
Narrow
cultural
environment
Communal
culture
Individual
Culture

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2.3.2. Structures of individual culture
In the field of research, there are many different theories focusing on the
identification of individual cultural factors including "Research on the values" of
Rokeach et al. (1931), "Individual Culture" of Mc. Clelland (1991), and "Individual
cultural structure" of Schwartz (1994). In particular, the theory of "Individual cultural
structure" of Schwartz (1994) is relatively comprehensive and most commonly used
in quantitative research.
This theory introduces 10 individual cultural values (see Table ). Each
individual cultural factor is determined based on the objectives that it aims to
(Schwartz et al., 2000). These values form two groups: (i) openness to change and
conservation, (ii) self-enhancement versus self-transcendence.
Table: Personal cultural structure of Schwartz (1994).
Individual
cultural
factors
Objective Value
Individualistic-

self
Think and act independently and
creatively
Creation, freedom, choice
of own goals, curiousness,
independence
Innate
consumer
Innovativeness

Be interested in novelty and challenge
in life.
Diverse, exciting and daring
life
Hedonism Joy and satisfaction of the senses. Joy, enjoying of life
Achievements
Success is based on the capacity under
social standards
Ambitious, successful,
capable, influential
Power
Social status and prestige, control or
domination of other people and
resources
Powers, wealth, social
power
Uncertainty
avoidance
Safety, harmony and stability in the
relationship, in itself and in society.

Social order, family
stability, national stability
Compliance
with social
norms
Limitation of actions, impulsive
tendencies which are capable of harm
others or violate the expectations or
social norms
Politeness, self-discipline,
obedience, respect for
parents and elders
Collectivism
Respect, commitment, adoption of the
customs and ideas of traditional
culture and religion.
Modesty, morality,
adoption of his position in
society and harmony.
Altruism
Protect and enhance the interests of
those who have a relationship with
yourself ("in the Group")
Support others, honesty,
selflessness, responsibility,
loyalty, sincere in
friendship, seriousness in
love.
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Individual
cultural
factors
Objective Value
Social
responsibility
Sympathy, recognition, tolerance, and
protection of the interests of all people
and nature.
Further thought, social
justice, equality,
environmental protection
2.4. Model and hypotheses of the study
2.4.1. Model and the variables in the model
Based on the individual cultural structure of Schwartz (1994) and the results of
the review of the previous studies, the author has proposed four individual cultural
factors namely individualistic-self, collectivism, uncertainty avoidance and innate
consumer innovativeness to the model (after controlling demographic factors such as
age, income and education level). The reason why these variables are considered
control variables is that based on the review from the previous studies, these variables
have statistic relationship with the dependent variables. To ensure the coherence of
the model, three demographic variables are included in the model as control
variables. All the variables and relationships between these variables are presented in
the following model:

Figure: Preliminary model of the study

New electronic product
adoption behavior

Intention of purchasing new
consumer electronics
(
Holak and Lehmann, 1990)




Uncertainty
avoidance
(Jung and Kellaris, 2004)


Collectivism

(
Nguyen Thi Tuyet Mai et al,
2003)
Innovativeness

(Manning et al, 1995)
+
-

-

+
Individualistic-self
(
Nguyen Thi Tuyet Mai et al,
2003)

Control Variables
- Age
- Income
-

Education

level

9

• Individualistic-self and collectivism
Individualistic-self includes independence, self-driven, freedom and confidence

in yourself while collectivism relates to dependence, towards other individuals,
harmony and similarity

(Hui, 1984; Triandis et al, 1988). [53]
In the context of Vietnam, scales of individualistic-self and collectivism of
Singelis (1994, 1995) have been developed by Nguyen Thi Tuyet Mai et al (2003) in
a comprehensive manner. Therefore, the cales of individualistic-self and collectivism
of Nguyen Thi Tuyet Mai et al (2003) will be used in this thesis.
• Uncertainty avoidance
Uncertainty avoicdance is the degree to which a person accepts or rejects risk
(the situation/environment unstable or unstructured)

(Hofstede, 2001; Mooij and
Hofstede, 2002; Veiga, 2001).
In recent year, Jung and Kellaris (2004) have focused on building the scaleof
uncertainty avoidance in terms of personal aspect. Therefore, the study uses the scale
of uncertainty avoidance of Jung and Kellaris (2004) instead of that of

Hofstede
although Hofstede's scale has been widely used in many studies.
• Innate consumer innovativeness
Innate consumer innovativeness is a general characteristic which is difficult to
observe and reflect innovativeness of a person, personality and cognitive style in
many different situations.
Innate consumer innovativeness is inherited and used the scale of Manning et
al. (1995). Innate consumer nnovativeness is measured through the demand for
searching information on new products.
• New electronic product adoption behavior: is measured by the intention of
purchasing new consumer eletronics (Holak and Lehmann, 1990).
• Control variables and measurement

Age of consumers is measured by the number of years from their birth. Income
of consumers is measured by the average monthly income (from all sources) of
consumers. Education level of consumers is represented by the secondary education
or lower, high school graduation, college/university graduation and post-graduation.
2.4.2. Hypotheses of the study
Hypothesis 1 (H1): Individualistic-self has positive impact (+) on the new
electronic product adoption behavior.
Hypothesis 2 (H2): Collectivism has negative impact (-) on the new electronic
product adoption behavior.
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Hypothesis 3 (H3): Uncertainty avoidance has negative impact (-) on the new
electronic product adoption behavior.
Hypothesis 4 (H4): Innate consumer innovativeness has positive impact (+) on
the new electronic product adoption behavior.

CHAPTER 3. METHODOLOGY
3.1. Qualitative study
3.1.1. Objectives of the in-depth interviews
- Test and screen independent variables as well as determine the relationship
between the variables in the research model.
- Adjust and supplement the scale for research concepts.
3.1.2. Method of the in-depth interviews
- Participants in-depth interviews (the respondent)
The in-depth interviews have conducted with 10 consumers in Hanoi urban
area. They owns new electronic products such as smart phone, tablet, camera
- Contents of in-depth interviews:
Basically, the interviews focus on the new electronic product adoption
behavior and other positive and negative factors.
- Collection and processing of information:

Data have been collected through direct interview technique. Then, the data
have been compared to synthesize the general concept for the study.
3.1.3. Results of qualitative study
- Test the independent variables: Preliminary research model is unchanged and
is regarded as the official model of the study.
- Assess the scales: The scales are unchanged in the questionnaire in
quantitative study after a few minor adjustments.
- Develop a scale of the behavior of new product adoption: Frequency of
purchasing new electronic products.
3.1.4. Official research model and scale 2
The study uses two scales of the new electronic product adoption behavior
(intention of purchasing new consumer electronics and frequency of purchasing new
consumer electronics). Therefore, the official model and hypotheses of the study are
as follows:
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Figure: Official model of the study
Official hypotheses:
Hypothesis 1a (H
1a
): Individualistic-self has positive impact (+) on the
intention of purchasing new consumer electronics.
Hypothesis 1b (H
1b
): Individualistic-self has positive impact (+) on the
frequency of purchasing new consumer electronics.
Hypothesis 2a (H
2a
): Collectivism has negative impact (-) on the intention of
purchasing new consumer electronics.
Hypothesis 2b (H
2b
): Collectivism has negative impact (-) on the frequency of
purchasing new consumer electronics.
Hypothesis 3a (H
3a
): Uncertatinty avoidance has negative impact (-) on the
intention of purchasing new consumer electronics.
Hypothesis 3b (H
3b
): Uncertainty avoidance has negative impact (-) on the
frequency of purchasing new consumer electronics.
Hypothesis 4a (H

4a
): Innate consumer innovativeness has positive impact (+)
on the intention purchasing new consumer electronics.

New electronic product
adoption behavior

Intention of purchasing new
consumer electronics
(
Holak and Lehmann, 1990)

Frequency of purchasing new
consumer electronics

Uncertainty
avoidance
(Jung and Kellaris, 2004)


Collectivism

(
Nguyen Thi Tuyet Mai et al,
2003)
Innovativeness

(Manning et al, 1995)
+
-

-

+
Individualistic-self
(
Nguyen Thi Tuyet Mai et al,
2003)

Control Variables
- Age
- Income
-

Education

level

12

Hypothesis 4b (H
4b
): Innate consumer innovativeness has positive impact (+)
on the frequency of purchasing new consumer electronics.
3.2. Quantitative study
3.2.1. Preliminary Qualitative Study
- Design the questionnaire: In addition to the introduction and management
part, the main contents of the questionnaire include questions about individualistic-
self, collectivism, uncertainty avoidance, innate consumer innovativeness of
consumers, the new electronic product adoption behavior and demographic

information (age, gender, income, education level ) and a number of questions
about the intensity and frequency of new electronic product adoption built by the
author.
- Sample size: n = 79.
- Method of data analysis: Cronbach's coefficient alpha.
- Results of a preliminary assessment of the scale: Removal of the two
observed variables NT5 and TK6. The remaining scales ensure reliability for use in
official quantitative research.
3.2.2. Official quantitative study
Sample size: 524 units
Sampling method: Stratified sampling by geographic criteria. The sample units
are selected by convenient sampling method.
Data collection: The data collection with the help of colleagues is taken place
at venues such as shopping centers, universities, hospitals, of the seven districts of
Hanoi.
Data analysis: EFA, Cronbach's Alpha, regression analysis.

CHAPTER 4. FINDINGS
4.1. The situation of new electronic product adoption behavior by consumers in
Hanoi urban area
4.1.1. Descriptive statistics of samples
After 700 questionnaires are sent out, 634 questionnaires have been collected,
in which 524 questionnaires ensure eligibility for analysis.
4.1.1.1. Descriptive statistics of samples according to demographic variables
Structure of research samples is built statistically in terms of gender, age,
income and education levels.
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(i) In terms of gender: 210 respondents are male, accounting for 40.1% and
314 remaining correspondents are women, accounting for 59.9%. The statistics show

that characteristic of the research samples in which the percentage of female is higher
than that of male is perfectly suited to the characteristic of the population of Hanoi
urban areas.
(ii) In terms of age: Respondents in the age group from 18 to under 25 account
for the largest proportion of 62.6%; followed by the age group from 26 to under 35
accounting for 26.0%; the age group from 36 to 54 accounts for 9.5%; and the age
group under 18 accounts for 1.1%; The remaining group from 55 and older accounts
for 0.8%. The average age of the sample is 25.67 years old.

(iii) In terms of income: 65.3% of respondents has incomes of less than 5
million dong/ month corresponding to 342 people; 20.2% has incomes from 5 to
under 10 million dong corresponding to 106 people; 6.9% has incomes from 10 to
under 15 million dong corresponding to 36 people; 3.4% has incomes from 15 to
under 20 million dong corresponding to 18 people and 4.2% has incomes of 20
million dong corresponding to 22 people. The average income of the sample is 5.6
million dong/ month (from all sources), which is higher than the average income of
the country.
(iiii) In terms of education levels: 45.8% of the respondents graduated from
College/ University (240 people), 37.8% of high school graduates (198 people),
15.6% of correspondents with postgraduate qualifications (82 people) and 8% of
correspondents has not graduated from high school (4 people). The education level of
the sample is high, which is consistent with the characteristics of consumers in Hanoi
urban area.
4.1.1.2. Desriptive statistics on individual cultural factors of the samples
The individualistic-self
and
innate consumer innovativeness

of the research
samples are higher than the average point (reaching 3.4835 and 3.4256 points on 5-

point Likert scale). Collectivism and uncertainty avoidance of the research samples
are relatively high (reaching 3.7306 and 3.7761 points on 5-point Likert scale)
4.1.2. Situation of new electronic product adoption
(a) Frequency of purchasing new consumer eletronics: New mobile phones are
purchased by consumers with the greatest frequency (average of 2.23 times/2 years),
followed by new laptops (average of 1.64 times/ 3 years) and new tablets (average of
1.18 times/ 2 years) (Table 4.7).
(B) Intention of purchasing new consumer eletronics: at the average score
(reaching 3.1 points on 5-point Likert scale).
(C) Time of purchasing new consumer eletronics: Most of respondents
purchase consumer electronics at the end of the year with a percentage of 47.3%,
14

corresponding to 248 people, 29.8% of respondents corresponding to 156 people
purchase products in mid-year and 22.9% of correspondents corresponding to120
people purchase at the beginning of the year.
(D) Occasions of purchasing new consumer eletronics: Consumers in Hanoi
urban area buy new consumer electronics on the occasions of promotions, discounts,
etc. Few people purchase new products as soon as manufacturers introduce them to
the market.
4.2. Results of evaluation on the official scale
4.2.1. Evaluation on distribution form of the official scale
Scales on individualistic-self, collectivitism, uncertainty avoidance, innate
consumer innovativeness, purchase intention and frequency of purchasing new
mobile phones all have normal distribution and ensure performance requirements of
the next tests. However, the frequency of purchasing new laptops is positively
skewed distribution with a long tail to the right. Therefore, Recenter technique which
is applied overcomes the situation of positively skewed distribution of variables and
satisfies requirements of the next tests.
4.2.2. Evaluation on value of the official scale

EFA results obtaining 26 observed variables are classified into 4 factors in
"Initial eigenvalues" >1. The total variance which can be explained when factor
groups are drawn is 55.808%. (> 50%) . Four factors which are individualistic-self,
collectivitism, uncertainty avoidance and innate consumer innovativeness are the
observed variables which download an independent factor corresponding to the value
of factor loading > 0.3.
4.2.3. Evaluation on reliability of the official scale
Table: Reliability of the official scale
No. Factor
Number of observed
variables
Cronbach's
Alpha
1 Individualistic-self 6 0.827
2 Collectivitism 7 0,868
3 Uncertainty avoidance 6 0.851
4 Innate consumer
innovativeness
7 0.853
5 Purchase intention 4 0.706

Total 30

Results of evaluation on reliability of the scale show that most of Cronbach's
alpha values are greater than the required value which is 0.7. Most of Cronbach's
15

Alpha values in the case of excluding variables are lower than Cronbach's Alpha
value. The values of item-total correlation are greater than 0.3. Therefore, the scales
used are highly reliable.

4.3. Results of tests on impacts of some individual cultural factors on the new
electronic product adoption behavior
This is an important phase of the theme that aims to answer the research
questions. To achieve results, multiple regression method is used to test the relation
of independent variables and dependent variable.
Because the act of new electronic product adoption is measured by two scales:
(i) Intention of purchasing new consumer electronics and (ii) Frequency of
purchasing new electronic products; therefore, multiple regression analysis is
conducted respectively with two models:
- Model 1: Testing the relation between four individual cultural factors and
intention of purchasing new consumer electronics, after the effects of age, education
level and income are controlled.
- Model 2: Testing the relation between four individual cultural factors and
intention of purchasing new consumer electronics, after the effects of age, education
level and income are controlled.

Regression results with Intention of purchasing new consumer electronics
Regression results show that the regression model with dependent variable
which is intention of purchasing new consumer electronics does not have statistical
significance. There are no adequate bases for accepting these hypotheses H
1a
,

H
2a
, H
3a

and

H
4a
.
Table: Regression results between some individual cultural factors and intention
of purchasing new consumer electronics

Equation

Variable
1
Beta
2
Beta
Control variables

Age -0.008 -0.007
Educational level -0.031

0.031
Income 0.032

0.039


Main variable

Individualistic-self -0.061
Collectivitism 0.083
Uncertainty avoidance 0.041
Innate consumer innovativeness 0.117

**

16


Adjusted R
2
-0.004 0.013
F 0.254

1.999
F change 3.304
*

N = 524; p ≤ 0.1;
*
p ≤ 0.05;
**
p ≤ 0.01;
***
p ≤ 0.001
All correlation coefficients are standardized
Regression results with the frequency of purchasing new consumer
electronics
There are two regression equations which are calculated for the dependent
variable (frequency of purchasing new electronic products) are detailed in the table
below. The first regression equation includes only control variables as independent
variables. The second regression equation is a full model including all control
variables and main variables which are included in the model simultaneously. In the
second regression equation, three control variables and four individual cultural

factors are regarded as independent variables.
The results show that both regression equation have statistical significance at p
<0.01. This confirms the correlation between the four individual cultural factors and
frequency of purchasing new consumer electronics with the reliability of 99%, after
factors such as age, education level and income of consumers are controlled. Thus, it
can be concluded that one of the four individual cultural factors has an impact on the
frequency of purchasing new consumer electronics of consumers. The second model
is suitable for data collection and it can be used.
The regression results also show that values of adjusted R
2
of both equations
are 0.038 and 0.162 respectively. It is seen that with this data set, control variables
(age, education, income) can explain 3.8% of the variation of frequency of
purchasing new consumer electronics if they stand alone, they can explain 16.2% of
the variation of frequency of purchasing new consumer electronics if they combine
with four individual cultural factors. In addition, the value of Fchange is 20.248 with
sig = 0.000.Therefore, it is possible to confirm that independent variables
(individualistic-self, collectivitism, uncertainty avoidance and innate consumer
innovativeness) which can explain additionally 12.4% of the variation of the act of
new electronic product acceptance (frequency of purchasing new electronic products)
have statistical significance after the effects of age, education and income are
controlled
.
This result also
confirms

that there are adequate bases for accepting these
hypotheses H
1b,
H

3b
, H
4b.
The individualistic-self and innate consumer innovativeness
have a positive impact on frequency of purchasing new consumer electronics, while
uncertainty avoidance has a negative impact on frequency of purchasing new
consumer electronics. Regression equation is expressed as follows:
NPA = 0,866

+ 0,204. CN

- 0,178.NT + 0,169.TK +

17

Table: Regression results between individual cultural factors and frequency of
purchasing new consumer electronics

Equation
Variable
1
Beta
2
Beta
Control variables

Age -0.030 -0.040
Educational level 0.171
***
0.151

***

Income 0.107
*
0.059

Main variable

Individualistic-self 0.204
***

Collectivitism 0.051
Uncertainty avoidance -0.178
***

Innate consumer
innovativeness
0.169
***


Adjusted R
2
0.038 0.162
F 7.863
**
15.439
**

F change 20.248

***

N = 524; p ≤ 0.1;
*
p ≤ 0.05;
**
p ≤ 0.01;
***
p ≤ 0.001
All correlation coefficients are standardized

4.3.3. Comparison of two research models
As above, the first model with dependent variable which is intention of
purchasing new consumer electronics does not have statistical significance. The
research has not found the correlation between individual factors and intention of
purchasing new consumer electronics. This result is entirely consistent with the
research context which is the new consumer electronics. Because of the fact that with
new consumer electronics in the future, consumers may not realize, understand and
may not be aware of new features of them. Hence, they find it difficult to imagine
new electronic products obviously. As a result, with the question on the intention of
purchasing new consumer electronics in the future, the answers of consumers are
often uncertain and neutral. This is the reason why the study has not discovered any
significant correlation between a number of individual cultural factors and intention
of purchasing new consumer electronics.
Meanwhile, the model 2 with the dependent variable which is the frequency of
purchasing new consumer electronics has statistical significance (p <0.01). In
18

addition, by the coefficient of determination which is adjusted R
2

, adding four
individual cultural factors in the model 2 helps explain additional 12.4% of the
variation of new electronic product adoption behavior (frequency of purchasing new
consumer electronics) after the effects of demographic variables are controlled.
Therefore, the regression model 2 with dependent variable which is frequency
of purchasing new consumer electronics is better suited to the fact of new electronic
production adoption by consumers in Hanoi urban area. The scale of frequency of
purchasing new products is more suitable and effective than intention of purchasing
new consumer electronics in the context of the dissertation.

CHAPTER 5. DISCUSSION AND RECOMMENDATION
5.1. Key findings of the study
Over the past half century, there have been many studies which contribute to
discover factors having influence on adoption behaviors towards new electronic
products within different contexts. These factors can be classified into two categories:
demographic characteristics including age, gender, income, education level and
occupation; and psychological characteristics such as innovative psychology of
consumers and consumption attitudes. In a meantime, observations in actuality
indicated that it is cultural values of individuals that exerted influence on the new
electronic product adoption behavior. Therefore, the study aims to brigde such
theoretical gap by explaining those behaviors from perspectives of individual cultural
factors, which have been specified by Schwartz (1994).
A combination of qualitative and quanitative investigation has been conducted
on the basis of surveying 524 consumers in Hanoi urban area to study on influence of
individual cultural factors towards their adoption behaviors. Thanks to that, the study
has drawn new and important conclusions.
The study results revealed that individualistic-self, uncertainty avoidance and
innate consumer innovativeness exert considerable influence on their new product
adoption behavior. These behaviors are observed by frequency of purchasing new
consumer electronics, which are most strongly driven by the individualistic-self (β =

0.204). This is the first time in this study that the relation betweenindividualistic-self,
uncertainty avoidance and new electric product adoption behaviors has been
discovered. However, the study could not figure out the relationships between several
cultural factors by individualistic-self and intention of purchasing new consumer
electronics as well as the relationship between collectivism and frequency of
purchasing new consumer electronics.


19

5.2. Discussion on study results
5.2.1. Influence of the individualistic-self
Hypothesis H
1b
“The individualistic-self has positive impact on new electronic
product behavior” is accepted.
As of the context in Vietnam, such results are absolutely consistent. Today,
Vietnam is a country whose the transformed economy, traditional values as well as
collectiveness still exist in parallel with modern cultural values. The individualistic-
self among such modern values, however, has been increasingly popular in Vietnam.
A majority of Vietnamese people, though brought up in a collective environment,
have changed their attitudes from “earn to survive” to another individualistic
viewpoint of “earn to enjoy” as a result of war effects and increasingly properous
living condions.
According to these results, individualistic consumers tend to focus on personal
goals and achievements while enjoying competition, proving themselves and their
own personality. New electronic products nowadays have gradually been innovated
in regard of technology for better performance in workplace (microprocessing unit
Core i3, i5, i7, smart phones, cameras, digital camera, etc.). Possession of such
innovative electronic (hi-tech) products enables individuals to gain achievements in

job performance as well as facilitate their expression of personality. This is also the
reason inducing their accepting behaviors towards innovative electronic products.
5.2.2. Influence of uncertainty avoidance
Hypothesis H
3b
“uncertainty avoidance has negative impact on new electronic
production adoption behavior” is accepted.
The discovery is absolutely in consistency with cultural characteristics of
Vietnamese consumers. According to survey results, Vietnamese consumers have a
relatively high level of uncertainty avoidance. It is because today we are facing a
market which is saturated with inadequate information from media and other non-
individual channels. Thus, personal information, and word of mouth cover mostly
these media.
Due to imperfect source of information about products in Vietnam, consumers
have to face a high level of risk when approaching a new product.
First risk is entailed in new introduction of the product itself. Due to its first
time of introduction in the market, consumers find it difficult to fully understand of
properties as well as comparison among previously accepted products, which results
in uncertainty of comparative advantages of a new product. It is their uncertainty that
entails worry and suspection among people afraid of risk. They even associate
products’ benefits with their negative impacts on their lives. Such embarrasment and
suspection of these people induce them to persist in usage of familiar products instead
20

of experiencing new ones. Consequently, risks posed by new introduction of products
inhibit new electronic product adoption behavior in Viet Nam.
Second, risk originates from time required to adapt. As we all know, a majority
of electronic products are fabricated thanks to advanced technology. When adopting a
new product, consumers are required to spend time learning new techonology and
softwares attached by the product. However, people who are afraid of risk and

changes tend to select products based on available knowledge of technology. In fact,
they often choose products that are not too innovative to mitigate such risks,
assuming that new electronic products are of equal quality.
Third is economic risk. When introducing new electronic products into the
market, producers usually set a high price before decreasing their value sharply even
within 2 months. Consumers, as a result, face with pricing risk, which to some extent
hinders acceptance of new electronic products.
5.2.3. Influence of innate consumer innovativeness
Hypothesis H
4b
“Innovative psychology has positive effects on accepting
behavior towards new electronic products” is accepted.
According to Manning and his assistant (1995), innovative consumers are those
who enjoy experiencing new things, as well as searching information of new
products, and regularly visiting places exhibiting new products to gain experience.
They also tend to positively adapt to new products because of their appealing
benefits, applications, styles, colors. Furthermore, they are always actively search
information about products and become pioneer in consumption of newly introduced
products. As a pioneer, consumers will become consultant of surrouding people on
product information, which in turn promotes their social status to some extent.
Accordingly, innovators are those who proactively search information and
become interested in product innovation. Compared with other individuals, they are
the ones who know new products and new technology earlier, and more easily adopt
new electronic products.
5.2.4. Answers to research questions
(1) What is the behavior of new electronic product adoption by consumers in
Hanoi urban area like?
Answer: Consumers in Hanoi urban area purchase new mobile phones with the
highest frequency (2.23 times/2 years on average), followed by new laptops (1.64
times/3 years on average) and new tablets (1.18 times/2 years on average). Thus,

Consumers within of Hanoi urban area purchase new mobile phones more regularly
than tablets and laptops.
(2) Do individual cultural factors affect the behavior of new electronic product
adoption?Level of impact?
21


Answer: The individualistic-self has strong and positive effects on new electric
product adoption behavior (β = 0.204). Innovative attitudes also have significant
effects on new electric product adoption behavior products (β = 0.169), meanwhile,
uncertainty avoidance entails profound but negative impacts on such behaviors (β = -
0.178).
(3) What are solutions to accelerate adoption of new electronic products?
Answer: Based on study results of the dissertation, the author proposes several
solutions such as individualization, application of individual cultural factors in
advertisements of consumer electronics; minization of risks to new products by
focusing on customers as a target of innovation, utilizing media for provision of
information on differences of new and old products; changing pricing strategy for
new products; and proposing several media for marketing such offerings.
5.3. Implicit proposals to administrators
Individualization of consumer electronics
New consumer electronics should be individualization
Effects of individual cultural factors should be applied in marketing electronic
products
Minimizing risks posed to new electronic products
Consumers should be considered as a target of innovation. Accordingly,
enterprises should conduct refrom driven by simplification of complex technology,
making them as friendly and easy to use as possible to ordinary users. They aslo
should help customers understand new technology and overcome temporary barriers
for acceptance.

In addition, in order to mitigate technical risks and risks from certain time
required to adopt products posed to potential consumers, producers should utilize
media in a diverse manner to comfront possible disparities between old and new
products.
What is more, pricing strategy for new electronic products should also be
altered. Instead, the strategy should be incorporated with several free services to
encourage consumption of electronic products.
Communication campaign for new electronic products
In today digital era, enterprises commercializing technology products should
pay much emphasis on new information channel such as E-Marketing.
5.4. Limitations of the study and direction of following research
Limitations of the study
22

- The study has made every possible effort to introduce 4 out of 10 individual
cultural factors into the study model (Schwartz, 1994) to explain new electronic
product adoption behavior. However, such independent variants only worked for
12.4% of variation in new electronic product adoption behavior. It is due to the fact
that such individual cultural factors are only indirect contributant to consumer
behaviors (Nguyen Thi Tuyet Mai, 2003). In other words, there are many other
factors that the study models can not genreralize thoroughly.
- Although the study has controlled impacts of demographic variants such as
age, income, and education level, another significant factor of gender in adoption
behavior has not been under control.
- Study samples are not diverse enough. Samples only focus on age group of 28
- 35; females account for 59.9% while males make up 40.1%. This limitation can
bring adverse effect to the study results, which should be mitigated in the next
research.
Direction for upcoming researches
- Consideration of indirect impacts of several individual cultural factors

towards new electronic product adoption behavior which can be revealed through
consumer’s attitudes.
- Revision of study model of several individual cultural factors that affects new
electronic product adoption behavior for further investigation on other electronic
products within a different context.