ThAi nguyen University
Socialist Republic of Vietnam
Southern luzon STATE University
Republic of Philippines
INFLUENCES OF PERSONALITY, PSYCHOLOGY FACTORS AND
MARKETING MIX ON THE CONSUMPTION
OF FOREIGN FAST-FOOD BRAND IN HA NOI, VIET NAM
(Summary)
Advisor
:
Dr. Alice T. Valerio
Name of Student
:
NGUYEN THI THANH HUYEN
English Name
:
TULIP
Date of Birth
:
02-12-1976
Course
:
SLSU-DBA1
Hanoi, 2013
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ABTRACTION
It is common to encounter familiar images of families shopping, entertainment
and dining at fast food outlets. A serving of Coca cola water, a sandwich, fries, salad,
fried chicken… with the average price of 10$-20$ to become the favorite of not only
children but also parents. Or instant coffee in paper cups, cold meat loaf sandwiches are
common dishes in the staff office. Simple meals, while maintaining compact power
supply for working days, to help office workers have more time relaxing instead of
noisy crowded restaurant popular in the streets.
Lotteria, a Korean fast food brand appeared in Vietnam in 2004, and was able to
get 140 fast food restaurants. In 2011, Lotteria has had 100 restaurants in Vietnam for 6
years and did not conceal ambitions raise the number to 200 in the next 5 years (2016).
Also in Vietnam early in 1997, currently at Jollibee Foods (Philippines), also
has dozens of restaurants in Vietnam. In 2009, Jollibee has 14 restaurants after only 2
years and has ambitions to open more restaurants in Vietnam anymore.
Baskin Robbins (U.S.) in Vietnam early in 1994 but then stopped trading due to
import tariffs rising raw material and decided to come back early 2012. In the next 5
years, Baskin Robbins will open 32-50 restaurants in Vietnam.
The foreign fast food brands can reduce losses and still be profitable to
compete, so are there marketing solutions that can help them? To reply for this
question, I want study factors influence on consumer’s behavior, and investigate how
the relative importance of that factors influence on consumer from buying fast-food.
Can businesses to provide fast-food after the pioneering brand which join in Hanoi
potential market through agents of the marketing mix system?
The previous foreign studies about fast food mentioned issues:
The effects of fast-food consumer health.
Customers will be loyal to the fast-food brands if certified to ensure quality
standards.
A more reasonable price for each packaging with different capacity, and the
rewards that customers receive will encourage more consumer products.
Advertise attractive, logical and effective known combination will attract the
consumer's purchasing power for fast-food…
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The previous Vietnam studies about fast food mentioned issues:
The journal articles introduce the strategic expansion of the store brand
strength in Vietnam
Magazine articles about the changing trends of the consumption habits of the
younger generation of food fit their lifestyle
The journal article analyzes the impact of using lot fast foods, especially for
children, and analysis of common diseases using this kind of food…
The research problem addressed in my thesis is:
How do relative 3 factors (personality, psychology, marketing-mix) influence
on consumer’s purchasing intention of fast-food in Hanoi?
Personality factors conclude:
+ Demographic (Age, occupation, education, average monthly income)
+ Lifestyle,
+ Emotion.
Psychology factors conclude:
+ Frequency of fast food intake,
+ Money spent on fast food intake per month,
+ Awareness of brand,
+ Awareness of items of fast food,
+ Attitudes towards healthy.
Marketing – mix factors conclude:
+ Product: quality product, and quality service,
+ Price: rebate period, and sets of fast food,
+ Place: shopping malls/ supermarkets, and outlets in major streets.
+ Promotion: Type of media, and message advertisement.
Statement of the problem
1. What are relationship between personal factors and psychological factors influence
on customer’s decision buying fast food?
2. What are relationship between personal factors and
marketing-mix
factors
to
influence on consumers’ purchasing fast-food?
3. What are relationship between psychological factors and marketing-mix factors
influence on customer’s decision buying fast food?
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4. Do some variables of marketing-mix factors influencing on consumer’s decision to
purchase fast food?
Objectives of study
1. To identify some variables of demographic characteristics (personal) to be relative
with some variables of psychology factors that encourage consumers’ decision
buying fast-food in restaurants.
2. To describe some variables of demographic characteristics (personal) to be
relative with some variables of marketing-mix influencing consumers’ purchasing
fast-food.
3. To describe the relationship some variables of psychology factors with marketingmix influencing consumers’ purchasing fast-food.
4. To describe some variables of marketing-mix influencing directively on consumer’s
decision to purchase fast food.
Method
To collect the data this research used self administered survey by following
convenient sampling on various fast food restaurants consumers in center 4
districts in Hanoi, Viet Nam. However, this research utilized convenience sampling
over random sampling due to practical reasons. In this study researcher’s surveyed
respondent
from
the
fast
food
outlets customers’ from different places like
shopping centers, large shopping malls, supermarkets… for getting the maximum
respondents. Other case is outlets fast food in the major streets, in the interaction… in 4
center districts Hanoi.
n=
N
1 Ne 2
1,039 ,087
1 1,039 ,087 * (0,05 ) 2
399 .98
400 (populations)
(Ba Dinh: 87; Hoan Kiem: 57; Dong Da: 142; Hai Ba Trung: 114)
The questionnaire consisted of 29 closed-ended questions: 11 ranking questions
and 11 questions that used a Likert-type scale.
Limitations:
The time to collect the data for the research was less.
These researches are more focused in certain places at Hanoi (only 4 districts).
A Hanoi population is different compared to others locations.
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Because of the limited understanding about the dummies in the construction of
statistical functions to test the problem posed. Therefore, I did not use
mathematical formulas to present statistics in my research. The accuracy of the
inspection fieldwork, maybe not fully justified.
Findings
Hypothesis about relationship between personality, psychology and marketingmix with consumers’ purchasing fast food were accepted in this study.
Frequency using fast food
With 31,8% participants in 4 districts is often use fast food with 2-3
times/month; 33% with at least 4 times/month; 27% with less than 2 times/month and
8,2% 8-12times/month.
Average monthly income females with 350$-500$ (34,8% ÷ n=32) were not
only ready but also ability to consume at least 4 times/month. With age 36-45 years old
(57,4% ÷ n=54) consumed the most. Offices/public authorities occupation (50,3% ÷
n=74); level of education is tertiary with (39,3% ÷ n=57) were customers who visit to
outlets fast food at lease 4 times/month.
Higher age, higher income, well educated, good career will option factors in
consumption of fast food often or not.
Amount of money spent on fast food per month
There was not significant percentage between level of amount of money spent
on fast food per month: less than $10 ÷ 23,8%; $10-$20 ÷ 25,7%; $20-$30 ÷ 27,8%;
more than $30 ÷ 22,5% in participants in 4 districts, Hanoi.
But female with style of dynamic, creative persons (63,2% ÷ n=55) were ready
to pay more than $30/month and style of fresh; style of like exchange persons (66,7% ÷
n=38) paid $20-$30 for buying fast food. Female with peaceful, stability lifestyle
(38,2% ÷ n=52) paid $10-$20/month, it was low amount of money spent on fast food.
The higher average monthly income, the more female ready to pay higher
amount of money spent on fast food. Female with 250$-350$/month income (32,8% ÷
n= 59) and 350$-500$/month income (34,0% ÷ n=37) spent $20-$30 for buying fast
food per month.
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Attitude towards health
The most participants were 30,6% (n=118) to be worried with percentage of fat,
the second was nutrient 25,9% (n=100). The most participants worried about
overweight (52% ÷ n=200), the second was diabetes (30,2% ÷ n=116).
People who with higher or higher income monthly age were worried diabetes,
participants of higher education level worried with concerned about all types of disease.
Consumers in 30 – 45 year cared about percentage of fat (28% ÷ n=30) which
courses of overweight; above 45 year concerned with preservatives (45% % ÷ n=19)
which courses of diabetes. Percentage of fat was cared by both of monthly income
250$-350$ (34,8% ÷ n=31) and 350$-500$ (32,9%% ÷ n=57), tertiary education
participants. All of participants worried about percentage of fat in fast food.
Quality fast food, quality service relate to frequency of fast food intake
There was 85% replies (mean = 1,99) impacted to frequency buying fast food
by quality (taste, flavor, delicious…); 67% replies (mean = 2,64) influenced by quality
service; 75% replies impacted by located outlets in shopping malls.
Price, adverts and located outlets relate to awareness of foreign brands of fast food
Consumers have known foreign brands fast food in Vietnam: the first rank was
KFC (23,7% ÷ n=94), the second rank was Lotteria (19,4%% ÷ n=77), the third was
BBQ (17,6% ÷ n=70), the fourth was Pizza Hut (14,9 % ÷ n=59), Al Fresco (12,6% ÷
n=50) ranked fifth, after was Pepperonis (11,4% ÷ n=44).
With mean = 2,43, there was 72,8% participants have been impacted by located
outlets on streets where easily to look up and eye-catching. With mean = 2,87, there
was participants have been impacted by rebate period. 24,2% (n=97) people was always
to buy fast food by adverts impaction; 37,8% (n=151) participants were sometime to
buy them, 22,2% (n=89) female seldom bought fast food with cause of adverts; 15,8%
(n=63) women was never.
Person who consumers often come along with, amount of money spent per month
relate to reasons for buying fast food
The first rank reason people bought fast food has been time limitations (26% ÷
n=103), the second rank was taste (23,8% ÷ n=95), the third rank was can’t cook
(20,2% ÷ n=81), the fourth rank was convenience (14,0% ÷ n=56). But there was no
significant different between 4 ranks in the top first.
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The most female spent $20-$30 per month for fast food (46,7% ÷ n=49) with
can’t cook reason, 38,1% (n=40) for taste reason. The most female spent more than $30
per month for fast food (26,5% ÷ n=26) with due to friends/family reason, 25,5%
(n=25) for can’t cook reason.
Reason time limitations for buying fast food with 54,7% (n=64) woman often
came to outlets with friends. With 39,6% (n=74) woman came to outlets fast food with
member family with reason can’t cook.
Demographic factors with items of fast food
The first rank item of fast food was fried chicken, the second was pasta and the
third was concluded: drilled chicken, pizza and burger because of having been near
about the same percentage.
The most of: 28,6% (n=6) participants age of 18-25; 22,2% (n=51) women age
of 26-35 and 18,7% (n=20) female age of 36-45 were interested in fried chicken.
The most of: 23,5% (n=4) participants with no schooling education level would
like drilled chicken; 38,8% (n=26) women with high school were interested in pasta;
25,4% (n=48) female with tertiary used pizza; 24,5% (n=25) participants with other
education bought dried chicken.
The most of: 51,7% (n=45) female dynamic/creative style was interested in
pasta; 28,1% (n=16) women fresh, like exchange style would like salad; 35,3% (n=48)
participants peaceful/stability bought pizza, 20,8% (n=25) women favorite innocation,
adventure used fried chicken.
Demographic factors with 4 sectors marketing-mixed of price, food quality, located
outlets and advert
With “mean = 3,25” shown that 50,5% participants were not interested in sets of
fast food. With “mean = 2,58” shown that 79% participants were impacted by fast food
outlets which have been decorated with eye-catching, consistent/ polite/ elegant
looking.
There was not different age period (n=390), not different education level
(n=328), not different lifestyle (n=390) with above 30% participants (n=310 about age;
n= 301 about education; n=310 about lifestyle) to select “strong agree” with decorated
outlets, quality of food and outlets located in streets which factors have influence on
buying fast food. Above 25% participants have selected “somewhat agree” with 3
factors have influence their behavior buying fast food. Near about 25% participants
have selected “neutral” (n= 230 with age; n=218 with education; n=230 with lifestyle).
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Marketing factors influencing in consumer’s purchasing fast food
With mean = 1,87, there was 91,8% participants to buy fast food coursed of
quality fast food improving in future. There was 80% participants to be influenced by
quality service which is improving better in the future (mean = 2,34). There was 79,5%
participants to be influenced by reducing price in the future (mean = 2,51). There was
71% participants to be influenced by massage media changing (mean = 2,73).
Conclusion
Frequency of using fast food was 2-3 times/month with participants of age
26-35 year; small business or office occupation; tertiary education, 250$350$ average monthly income and amount of money spent on fast food per
month $20-30$.
Participants worried with 4 types of common diseases through near about the
same percentage statistic (when have used much fast food). This showed that
people have concerned with healthier meals. However, consumers still have
focused on diabetes and overweight.
Customers cared very much about the rebate period to show that the current
price maybe has been higher than the per capita income of citizen.
Adverts such as interior outlets, design menu, bill-board, and journal
articles… were very useful in stimulating fast food consumption.
Eye-catching bill-board in the outlets on the streets or at the amusement parks
or shopping centers has made consumers to be awareness of foreign fast food
brands. Top 4 brands in Hanoi, Vietnam were: KFC, Lotteria, BBQ and Pizza
Hut.
The main reason for buying with participants who have had average income $
250 $ -350 often to eat fast food with friends is "time limitation". Age 2-35
year and above 35 year came to outlets with family for “can’t cook” reason.
Other participants would explore foreign fast food because of “taste” reason.
Item choices at outlets with ranked respectively: Fried chicken, pasta, all of 3
pizza, burger and dried chicken. 40,5% soft drink choices; 28,8% flavored
water choices; 17,8% fruit juice choices; 13% pure water choices.
If consumers bought fast food affected by product quality, service quality and
price; it means that they will buy fast food if all of these factors are being
improved in a positive direction. Participants bought fast food were
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influenced by adverts; it means that they will buy fast food because of media
massage.
Recommendation
- The first conclusion: Frequency of using fast food was 2-3 times/month with
participants of age 26-35 year; small business or office occupation; tertiary education,
250$-350$ average monthly income and amount of money spent on fast food per month
$20-30$. This result shows that there may be potential for exploitation, customer’
spending can be more than their average income for fast food every month.
- The fourth conclusion: Adverts such as interior outlets, design menu, bill-board, and
journal articles… were very useful in stimulating fast food consumption.
- The sixth conclusion: The main reason for buying with participants who have had
average income $ 250 $ -350 often to eat fast food with friends is "time limitation".
Age 2-35 year and above 35 year came to outlets with family for “can’t cook” reason.
Recomendation: Adverts and message media should be focused on public relation (PR)
activities
Organize contests with bonus for children and teenager such as: drawing
competition, answer the questions to find out about its history and fast food
brand development…
Implement sponsored activities for children’s or teenager’s entertainment shows
on television such as: “Đồ rê mí”, “The voice kids”…; sponsor for competition
of sports for youth.
Organize charitable programs for children today, tomorrow the world which
reduces malnutrition percentage of children…
Recomendation: Quality service should be improved
Customers had been being satisfied with the attitude and style of the current
serving staff in the fast food restaurants. This proves that they have been trained and
trained well (Vinareaserch, 2012). But now the main reason which customers are not
satisfied is it takes long time from ordering to getting fast food dishes. Especially it is
significant on holidays. This can be improved by strengthening the kitchen equipments
and hire more chefs to serve faster multiple orders at once.
With pizza, it is very easy and convenient to order for home delivery service,
other kind of fas food has found that to be not easy. The main reason for buying with
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participants often to eat fast food with friends is "time limitation" to suggest that
supplier should use more service and quickly.
- The fiveth conclusion: Eye-catching bill-board in the outlets on the streets or at the
amusement parks or shopping centers has made consumers to be awareness of foreign
fast food brands. Top 4 brands in Hanoi, Vietnam were: KFC, Lotteria, BBQ and Pizza
Hut.
- The thirth conclusion: Customers cared very much about the rebate period to show
that the current price maybe has been higher than the per capita income of citizen. The
price of the products depends on many factors cost. It is worthwhile to mention such
the cost of goodwill space locations, convenient on major streets, food hygiene and
safety for ensuring quality, store decorations…
Recomendation: Mining sites in the high-rise apartment buildings, not necessarily the
location on the main street costly expenses
After dominating market share, are people aware of the brand, the business can
exploit these locations are not sold in the major streets, which can focus on the highrise apartment buildings. Because apartment buildings have been built more, it includes
the overall performance: schools, supermarkets, amusement parks, and offices for rent
...
- The second conclusion: Participants worried with 4 types of common diseases
through near about the same percentage statistic (when have used much fast food). This
showed that people have concerned with healthier meals. However, consumers still
have focused on diabetes and overweight.
Recomendation: Quality fast food should be improved
Commitment to customers to use fresh chicken material
Build a chicken farm where enterprises support of technical caring, epidemic
prevention and quarantine. Because if chickens are flu infected this will make the
price of raw chicken increases, while output prices can not be immediately
increased. Raw material would not be imported can reduce production costs. This
model likes Vinamilk company has successfully developed dairy farms.
Commitment to customers to use fresh vegetables
Fresh vegetables farms will help consumers avoid common diseases such as
diabetes, cancer... But they have to be built with supporting the same with chicken
farm.
Experiment processing of fast food meals to suitable with Vietnamese’ tastes
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For example, hamburger (burger) is a food with ground meat (usually beef),
little lettuce and onion in the middle of soft round bread. Suppliers could get ground
pork, or liver pate, or grilled pork bacon substitute for ground beef; sliced cucumber
could be substitute for onion…
Pineapple is a fruit now used mainly for baking pizza, but the manufacturers
may use different types of vegetables such as peas, corn, white beans, red beans...
Additional many different types of salad for diversity with various mixed
vegetables. Those kinds of food will be suitable for the older and people who care
about healthier meal. Vegetarian pizza and vegetarian pasta sauce would be good
choices too. This way can reduce production costs. Output price could be decreased
to encourage more consumption fast food.
Limitations and further research
The scope of my thesis is study in 4 districts of Hanoi, rather than a large scale
in whole Vietnam country. Therefore, the study results also need to be tested further in
other areas.
Because of differences in climate, lifestyle, consumption habits between 2
North and South Vietnam. Therefore, the need for further research on the factors
affecting on customer’s decision to purchase fast food.
In addition, studies are only of describing the statistical relationships between variables
to identify customer concerns for fast food, the author not to mention the weight of
each factor affecting purchase behavior. Because of authors lack of knowledge of using
dummy variables to build a set of regression factors affecting the fast food purchases.
This maybe to test in the future.
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