online buying

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TABLE OF CONTENTS
Contents
TABLE OF CONTENTS……………………………………………………………......................
ACKNOWLEDGEMENT…………………………………………………………….....................
ABSTRACT……………………………………………………………............................................
CHAPTER 1: INTRODUCTION ………………………………………………………………...
1.1. Background and rationale ……………………………………………………………….….......
1.2. Definitions of terms…………………………………………………………………….…….....
1.3. Scope of the study ………………………………………………………………….……….......
1.4. Literature review ……………………………………………………………………..…….......
CHAPTER 2: METHODOLOGY ……………………………………………..………………...
2.1. Research design…………………………………………………….………………….……......
2.2. Subjects of the research …………………………………………………………………….......
2.3. Research questions ………………………………………………………………..…….….......
2.4. Method of collecting data ……………………………………………………….…………......
CHAPTER 3: FINDINGS AND ANALYSIS………………………………………..…………...
3.1 Findings ……………………………………………………………............................................
3.2 Analysis ………………………………………………………………….………………….......
CHAPTER 4: CONCLUSION AND RECOMMENDATION…………………………………
4.1. Conclusion …………………………………………………………………………………...
4.2. Recommendation……………………………………………………………………………...
BIBLIOGRAPHY……………………………………………………………………..…………...
APPENDICES……………………………………………………………………………………...
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ACKNOWLEDGEMENT

In the process of writing this research, we have incurred many debts of gratitude.
We would like to thank all the survey participants for their support in answering the
interviews, surveys and free short talks. Without them, we could not collect the useful data,
reach and understand profoundly this topic.
A lot of thanks are also sent to our instructor, Ms Tran Thi Thu Trang, the lecturer of
Faculty of Foreign Languages, National Economics University, for her beautiful lectures,
advices and enthusiastic supports. She inspires us the love with English and writing as well as
helps us improve skills in report writing – one of the most important skills for the jobs in
future.
The last thanks are for my dear friends who share with us many interesting ideas and
suggestion and for all the readers who spend their precious time to read and give comments to

this research.
A great love for all,
Dao Trong Truong.
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ABTRACT
To ensure the success in online business, it is important for retail businesses to understand
their target customers. The previous studies about online business stated that customers will have
different attitudes and different behaviors to online sales. This research has two main
objectives. First, this research is considered the importance of customer attitudes toward online
shopping. Second is also considered two main trends of online shopping that are buying common
goods and special ones. Based on previous researches and based on a survey group of 137 students
working and living in Hanoi, who were randomly selected. All studies have found significant
results in terms of the attitude of customers toward online shopping as well as the differences
between customers in the two trends in terms of time, convenience, and customer service and price
factors toward online shopping.
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CHAPTER 1
INTRODUCTION
1.1. Background of the research
Nowadays, the rapid development of science and technology, especially the booming of
information technology and the Internet in recent years has helped people remove the barriers of
time, distance. For a business, Internet is an indispensable means in each of their business plan,
marketing plan, it is also an effective means in dealing with customers in the global
market. According ACNielsen, there are more than 627 million people in the worldwide online
shopping (ACNielsen, 2007). The studies of Rester (2008) are also predicted that by 2010, the total
sales of electronic commerce will reach $ 316 billion, account for 13% of the total retail sales.
A study of GSO Vietnam (General Statistic of Vietnam) indicated that the future of online
shopping in Vietnam looks promising and bright. Vietnam is in the transition of the application of

information technology and Internet in all areas. According to statistics of the GSO Vietnam, in
2008, 23% of the Vietnamese population using the Internet and this number is increasing
rapidly. This development created a huge opportunity for Vietnam retailers to develop business
based on online shopping.
According to GSO Vietnam, the number of Internet users purchase online via the Internet only
approximately 8.2%. Of these, the majority of people shopping online are relatively young, high
educated or high social status. Moreover, a study of online shopping website (www.ttvnol.vn)
states that shopping online is quite popular in Vietnam, in which 37% of online shoppers buy
clothes, shoes and other personal items; 22% buy the DVD, CD or films; 21 % interest in mobile
phones, computers; 20% remaining interest in the other items (Report from www. ttvnol.vn, 2008).
However, considering shopping online in Vietnam, it is still in development stage. This
research was established to study on customer attitudes toward online shopping. The fact, the
attitude of customers to affects strongly to the sales of online retailers. Through the motivation and
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perception, the attitudes of customers will be formed to make a purchase decision. Thus, the
attitude of the customer impacts strongly to their purchase decisions.
Besides, the consideration to trends of customers in shopping online also helped retail
businesses consolidate their business strategies. There are many online shopping trends, however,
this study just reviewed two trends of retail shopping, based on the products that customers
typically purchase. From that, I divide the two types of customers which are: the normal-product
customers that purchase normal goods and the special-product customers that purchases special
goods. Based on the division of two shopping trends, the research will analyzes additional factors
such as time, price, and convenience, etc. to clarify the distinction between two types of
customers.
1.2. Definitions of terms
Electronic commerce (E-commercial): According to www.wikipedia.com, E-commercial
shall be interpreted in many different definitions. However, considering the scope of research,
electronic commerce in the strict sense is understood that the purchase of goods and services
through electronic means, especially through Internet and other networks. According to the World

Trade Organization, WTO, "Electronic commerce includes the production, advertising, sales and
distribution of products sold and the payment on the Internet, but assigned to receive a tangible
way, both products as well as delivery of digital information via the Internet.”
Web shops: The term 'web shop' has a number of meanings. An online retailer may be called
a 'web shop'. Web development, hosting and other web-related activities can be called 'web shops.'
Buying online grew because, over time, transportation costs went up and telecom costs went down
and access to the Internet became commonplace. Online shopping offers a larger selection of goods
and services and thus greater choice at optimal prices. The problems with online shopping are that
you cannot smell, touch, taste or try what you are buying.
Normal goods: In the economic sense, normal goods are realized when demand increases
income increases, all other things being equal. However, as considered within the scope of the
research, normal goods usually refers to goods and items needed in the daily life such as personal
items, electronic products necessary for the life and work.
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Special goods: In the scope of the research, special goods are the products that are unique or
hard to find in the outside market. For example: the ancient watch or camera, some hand-made
products, etc.
1.3. Scope of the research
The location of the research is concentrated in Hanoi. Hanoi is the capital and the center of
economics, politics, and culture of Vietnam. With the population of more than 11 million people
(2009), Hanoi is considered a huge market of diversified class of customers and the destination for
a lot of manufacturers and distributors. People here can access from tiny wet markets to splendor
commercial centers, along with approaching various types of marketing and advertisement
everywhere and every day. In addition, the GDP of more than US$1500/capita in Hanoi make this
market advantageous to test the shopping behavior.
This research is conducted in the nearest 3 years from 2007-2010 – the booming period of
online shopping in Vietnam. Also, data were also obtained from the survey results as done on a
group of randomly chosen students from many universities in Hanoi. Thus, the results of this
research are objective and applicable.

1.4. Literature review
• In terms of consumers’ online buying behavior:
Some researchers have conducted their researches in their efforts to consider the online buying
behavior of consumers. For example, Bellman et al (1999) investigated different ways to predict
whether an individual will purchase online. The authors concluded that demographic variables
such as income, education and age, have a modest impact on the decision of buying online, while
other important determinants of purchase previous online shopping behavior, as previous online
purchase. This is consistent with Forrester Research that has demonstrated the demographic factors
do not have a high impact on technology as consumers’ attitude (Modahl, 2000). Kotler and
Armstrong (2000) pointed out that the buying choice influence more by four important
psychological factors: motivation, perception, learning and beliefs and attitudes. Steinfield and
Whitten (1999) suggested that the combination of the Internet combined with physical presence,
providing more opportunities to capture more business than online presence only, since they can
provide better before purchase and after sales services to reduce transaction costs and building
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consumer trust in online stores. However, it is worth mentioning that beliefs and attitudes that are
found in the stage prior to the adoption of e-commerce are different to those in the “post-adoption”
stage (Gefen et al, 2003; Venkatesh and Brown, 2001; Yu et al, 2005).
• In terms of the factors affect to customer’s purchase decision
Concerning factors that affect online shopping, Ernst and Young (2000) reports that Internet
users bought online by choosing a good product, competitive price, and easy to use, but was
concerned about transportation costs, lack of opportunity to test before the product, as well as, the
confidentiality of credit card and personal information. Know and Lee (2003) to explore that
consumers’ concerns about the payment security and its relationship to online shopping attitudes
and actual purchase. They observed a relationship between negative attitudes to online shopping
and concerns about online payment security. Consumers with a positive attitude seemed less
concerned about payment security. Similarly, popular literature cited the shopping comparison
such as low price, timely delivery, convenience, saving time, lower shipping costs, customer
service improved, tax-exempt status e-mail and respond quickly, as the primary reasons for the

increase in online shopping (Lorek, 2003; Magee, 2003; Maloy, 2003; Retail Merchandiser, 2003).
In additions, Karayanni (2003) observed that online shopping tends to avoid the availability of
shopping on the basis of 24 hours and time efficient. A study conducted by Monsuwe et al (2004)
provide the general reviews of all relevant literature on the factors driving consumers to shop
online. Furthermore, this research also includes the reviews of literature on the advantages,
difficulties and expectations of consumers shopping online, and considers the perceptions of
adopters of online shopping compared to Internet users who prefer the traditional way of shopping.
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CHAPTER 2
METHODOLOGY
2.1. Research design
The original purpose of this research is to assess the attitudes of customers toward the
shopping online way. Also, it is to identify the main purchasing trends of customers involved in
online shopping. Therefore, the following six hypotheses are reviewed and examined through the
entire process of the research to find out what hypotheses can be accepted or rejected.
By definitions, the qualitative research approach fits the most with descriptive studies in order
to quantify data that are immeasurable, such as feelings, beliefs, and thoughts. A qualitative
research includes examining and reflecting on perceptions in order to gain an understanding of
social and human psychological behavior. This study employs qualitative research method, since
its aim is to find and build theories that can explain the relationship among different variables
through qualitative elements. They do not have standard measurements; instead, they are
behaviors, attitudes, opinions, and beliefs. Thus, the goals of qualitative research are primarily to
advance new theories, to interpret individual events’ significance and to give voice to particular
groups.
In addition, the quantitative research method is also compatible with the study because it
allows researchers to conduct the research problem in specific and set terms. Besides, quantitative
research method also distinctively specifies both the independent and the dependent variables
under the investigation. This study applies experimental research design. The above literature part
mentions some previous researches whose topic is as nearly as our topic. After many years, those

previous results may not be accurate and appropriate for every day - changing economy. Therefore,
we set up hypotheses based on previous researches and conduct the survey to retest those
hypotheses.
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2.2. Subjects of the research
2.2.1. Data
In Vietnam, online shopping is a very new field, and in particular, it is often applied to the
target customers that are young, highly educated and easy to access to the Internet. Therefore, this
research is intended to focus on students in several universities in Hanoi such as National
Economics University, Hanoi University of Technology or Vietnam National University, etc. This
method makes the collected data more accurate and useful.
2.2.2. Classification of Students
The university students are the main subjects of this research. Their typical features are
financial dependence on family and limited spending budgets. Sometimes, their items are bought
by their parents or relatives. It is thus difficult to accurately determine trends and attitudes
shopping with online sales if we do not narrow down the research scope. Thus, to make data more
accurate, this research is focused on the student having income or allowance from over 1 million
per month and they themselves go shopping to buy goods without receiving additional benefits
from their parents, relatives or someone else (assumption). These students are called “student
online shoppers”. I expected to collect data on over 120 students that qualify
assumptions. Although the number researched is small, but it is enough to avoid unnecessary
errors.
2.3. Research Questions
• Customers' attitudes toward online shopping:
1. How do customers think about the substitution of online shopping methods to the
traditional shopping methods?
2. How do the customers think about the retailer trademark in shopping online?
• Online Shopping Trends:
3. Which type of customers in the two types is affected more by the time factors?

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4. Which type of customers in the two types is affected more by the convenience
factors?
5. Which type of customers in the two types is affected more by the price factors?
6. Which type of customers in the two types is affected more by the customer service
factors?
The following table shows the variables measured in specific hypotheses along with their data
types. These hypotheses correspond to the above research questions:
Hypoth
eses
Variable Measured Measurement
Scales
Sample
Question Number
H1 Customers tend to substitute
the online shopping method to the
traditional shopping method.
Multiple Choice
From Q3 to Q7
H1 The retailer trademark is not
important in shopping online field.
Multiple Choice
Free response
H3 The normal-product customers
are affected more by the time factor
than the special-product customers.
Multiple Choice
Ranking
Free response

From Q 7 to
Q13
H4 The normal-product customers
are affected more by the
convenience factor than the special-
product customers.
Multiple Choice
Ranking
Free response
H5 The normal-product customers
are affected more by the price
factor than the special-product
customers.
Multiple Choice
Ranking
Free response
H6 The normal-product customers
are affected more by the customer
service factor than the special-
product customers.
Multiple Choice
Ranking
Free response
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The questions were categorized to prove the hypotheses taken up for the research. Following
measurement scales were used in making the survey. This survey with 13 questions has 2 main
parts which are the individual information part (2 questions) and the investigated issues part (11
main questions). The survey is attached in the appendix.
• Multiple choice—single & multiple responses

• Ranking Scale
• Free Response
2.4. Method of collecting data
In this method of data collection, it is the responsibility of the researchers to question the
subjects and record the respondents’ response by personal or impersonal means so that the data
could be used as a basis for testing the hypothesis by using various statistical tools.
In this research, I use two main sources of data including: primary source and secondary
source. In the primary sources, there are two methods of collecting data: online survey and
interview. The sample size of the primary source for online surveys is expected 120 students that
have the budget over 1 million per month.
2.4.1. Primary sources
2.4.1.1. Online surveys
Create online questionnaire on the Internet is a simple way that can collect the necessary
information at low cost. Besides, this method also helps researchers save time for the same time;
the survey can be completed by more people (compared with the data collection methods such as
interviews ....). This kind of collecting data is known as online surveys and nowadays, it’s
becoming more and more popular all over the world. Due to those purposes, the online survey was
created at the following link />sid=8i94hwyt9eak0fm763686 . Through this survey, more than 120 responses of students in
different universities in Hanoi were sent back and allow researchers creating a large amount of data
for analysis to serve researching purposes.
2.4.1.2. Interview
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Through this way of collecting data, researchers can have the more accurate information. The
direct interaction between the interviewer and interviewee will make all the questions and
problems easier to understand. Moreover, the sensitive questions in this field will also be addressed
through the interview. The process of choosing interviewees is carried out randomly by personal
approach. I have interviewed about 20 students from University of National Economy as those
who are potential customers. I also interviewed three directors of the companies and online
shopping website host specializing in online business which are Vietapps Company, ttvnol.vn

website and enbac.vn website.
2.4.2. Secondary sources:
2.4.2.1. Literature review
2.4.2.2. Internet
The Internet is a useful tool for finding information related to online shopping. Examples are:
the General Statistic Office (GSO) of Vietnam provides detailed information on the using rate of e-
commerce in Vietnam in the retail business field in recent years.
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CHAPTER 3
FINDING AND ANALYSIS
3.1. Findings
After the survey was delivered to the shoppers, we collected 137 responses. The questionnaire is
shown in the appendices.
3.1.1. Customers' attitudes toward online shopping:
H1 - Customers tend to substitute the online shopping method to the traditional shopping
method.
To test this hypothesis, the shoppers are asked 2 questions which are Q4 and Q5. The questions
were designed to figure out whether the traditional trading way can be substituted by the online
shopping way.
Q4: Do you think that the shopping online can be substituted the traditional trading?
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More than 70% of the students asked believes that shopping online can substitute the most the
traditional trading (it can substitute 30-60% the traditional trading method). The number of
students launches the extreme points of view with total yes or no covers small percentages of over
8% and 4%. There is over 15% of student’s state that online shopping just substitute a part of the
traditional trading method. The remaining account for over 2% is the “not sure” ones.
Q5: How often do you joining online shopping?

There is over 43% of student respondents stated they regularly use online shopping method (50-
89% of the shopping time is done online.) In contrast, only 3% of students never go shopping
online. There is more than 15% of students use only the online shopping method. This figure is
greater than the number that roughly 13% said they rarely shop online.
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H2 - The retailer trademark is not important in shopping online field.
Q6: What do you think about the brand issues in shopping online?
The largest part, over 30% of student respondents stated that brand is sometimes necessary,
sometimes not. Besides, there are more than 26% and 16% of the students point out that the brand
is important and extremely important in the online business. In contrast, approximately 19% of
students stated the brand is not really necessary and over 8% said that they do not care about brand
issues when shopping online.
 Through these figures, we can see that customers expressed an open way toward
online selling. This is a new method; it has many advantages compared to traditional
sales methods. These figures show that university students tend to replace the
traditional way by online purchasing methods; they spend lots of time for shopping in
this way. Moreover, within the scope of the research, brand here is only evaluated by
the credibility of the online business, not considering the products brand. Moreover,
the results are quite similar to the survey results of the traditional shopping methods.
However, in comparison with the traditional sales methods, the retail business or the
new company has more opportunities in the field of online business.
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I can see that customers expressed very positive attitudes to the online shopping.
Although there is a part of customers incompletely support this way of selling or just
consider it an alternative of the traditional sales methods, the number of customers
account for only a small portion of total customers. Furthermore, it is also found that
the opportunities for retail businesses and new companies in the field of online
business are quite a lot

3.1.2. Online Shopping Trends:
Q7: What are the main reasons that let you join in shopping online? (5 is the most important,
1 is the least important)
In column 5 points, over 60% of student respondents said that they join online selling because they
find like the product. In column 4 points, more than 43% of students stated that saving time is a
2nd important factor after the product criterion. In column 3 points, more than 43% of students
said that the convenience factor is 3nd important. The two remaining factors of price and customer
service in turn ranked at No. 4 and No. 5.
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