Study on the elements that affect the buying decision of milk bottle DR. Brown in new generation company limited

Business Research Method

Open University Malaysia
HUTECH Campus

Instructor: Dr. Ut Tran

Advisor’s assessment

....................................................................................................................................................................
....................................................................................................................................................................
....................................................................................................................................................................

RESEARCH PROJECT

....................................................................................................................................................................

(BMBR5103)

....................................................................................................................................................................
....................................................................................................................................................................
....................................................................................................................................................................
....................................................................................................................................................................

STUDY ON THE ELEMENTS THAT AFFECT THE BUYING

....................................................................................................................................................................

DECISION OF MILK BOTTLE “DR. BROWN” IN NEW

....................................................................................................................................................................

GENERATION COMPANY LIMITED

....................................................................................................................................................................
....................................................................................................................................................................

Research Proposal
....................................................................................................................................................................
....................................................................................................................................................................
....................................................................................................................................................................

STUDENT’S FULL NAME

: Ly Vinh Kien
Huynh Pham Ngoc Lam

ID# 2448464

....................................................................................................................................................................

ID# 2448452

....................................................................................................................................................................

INTAKE

: May 2012

....................................................................................................................................................................

ADVISOR’S NAME & TITLE

: Dr. Ut Tran

....................................................................................................................................................................
....................................................................................................................................................................
....................................................................................................................................................................

Advisor’s signature

October 2013
Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 1


Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

EXECUTIVE SUMMARY: ........................................................................................... 4
I. INTRODUCTION ..................................................................................................... 5
1.1.

Research Background. ............................................................................................................ 5

1.2.

Problem Statement .................................................................................................................. 5

1.3.

Research Objectives and the Scope of the Research ............................................................... 6

II. LITERATURE REVIEW .......................................................................................... 7
2.1 Research definition (operational definition of key words) ........................................................... 7
2.2 Related research .......................................................................................................................... 10
2.3 Related Model in an analysis ...................................................................................................... 13

III. CONCEPTUAL FRAMEWORK ............................................................................ 15
IV. HYPOTHESIS AND OPERATIONAL DEFINITION .............................................. 16
STUDY ON THE ELEMENTS THAT AFFECT THE BUYING DECISION OF MILK

V. Methodology ....................................................................................................... 17

BOTTLE “DR. BROWN” IN NEW GENERATION COMPANY LIMITED
1.

Type of research choice ............................................................................................................ 17

2.

Research design ........................................................................................................................ 18

3.

Estimated budget of the research .............................................................................................. 21

4.

Activity plan: ............................................................................................................................ 22

5.

Conclusion ................................................................................................................................ 22

REFERENCES ........................................................................................................... 23

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 2

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 3

Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

I. INTRODUCTION
EXECUTIVE SUMMARY:

1.1.

Due to the economic recession, all enterprises are facing with the income and
benefits, our company also face those problems too. We would to make research on “The
elements that affect the buying decision of milk bottle “Dr. Brown” in New Generation
Company Limited” to discover the elements and give the solutions for those problems.

The world economy has tendency of being in risk. The weaker domestic demand and
slower growth in several countries cause the import and export to slow down. The New
Generation Company is an importer of milk bottle products from USA which were also
affected by those changes in the world economy today.

The research is processed by 2 phases: preliminary research with the peer interview to
discover the elements affecting on Dr Brown milk bottle buying decisions and the official

research with the 100 samples to find out the elements. in addition, we can use more
descriptive statistics, EFA, Cronbach alpha to make our research more clearly .In the

Research Background.

The sales situation of this product line is being decreased since the first quarter this
year while inventory increased. There must be several key reasons for that. Therefore, this
research will be focused solely on identifying the causes of that situation, and then offering
some suggestion to overcome the difficulties and get the business back on track.

limitation of research, the researchers are only the references and it also helps to find
solutions of business activities and distribution products efficient. The research will be
arranged as following

1.2.

Problem Statement
1.2.1 Main Problem
The sales volume status and profit of this milk bottle product “Dr. Brown” are

EXECUTIVE SUMMARY:

decreasing since 1st quarter 2013. It caused the company fail to obtain the goals.
I. INTRODUCTION

1.2.2 Sub –Problems:

II. LITERATURE REVIEW
a. The price of Dr. Brown milk bottle is no match against competitors. It is quite high
III. CONCEPTUAL FRAMEWORK

in comparison with the other milk bottle products in the market. According to Mankins

IV. HYPOTHESIS AND OPERATIONAL DEFINITION

(2005) concluded that the quantity demanded falls when the price rises and the quantity

V.METHODOLOGY

demanded rises if the price falls, and the quantity demanded is negatively related to the price.
He also proposed the law of demand “Other things equal, when the price of a good rises, the

REFERENCES

quantity demanded of the good falls”
APPENDICES

b. Brand awareness: More competitive products with unknown origin appear on the
market which affected the customer’s brand awareness against the milk bottle products of
New Generation Co., Ltd. Brand awareness has great influences on buying purpose from the
customers who intend to pay money for well-known product (Keller, 1993; Macdonald &
Sharp, 2000).
c. Advertising is not good and attractive. Due to the change of advertising budget, the
advertising methods are changing so much, the managers does not make advertisement in the
retail shop, but they did in the small website column . Mohamad et al (2013) used the
multiple regression analysis and applied Pearson correlation to examine the connection

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 4

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 5


Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

Open University Malaysia
HUTECH Campus

between the advertising and buyer decision making, and they conclude that there is relation
between two variables.

Business Research Method
Instructor: Dr. Ut Tran

The research is intended of making the research of the element affecting on buying
decision in New Generation Company and finding the solution to resolve the low sale and

d. Customer satisfactions play an important role in the business. The customers feel
that the new milk bottle 240 ml is not satisfied because there is leak of milk from the milk

bottle neck and the customers feel very annoying when they feed the milk to their babies and

profit
1.3.3 Limitation of the research

they expect that the milk bottle will be design better at the milk bottle’s neck. Besides,

The proposed research is limited on the mother and children shops in Ho Chi Minh

Murekio (2010) uses the revenue data, and customer satisfaction survey data in ten retails

City area, we also narrow the target customers’ income to over 7 million VND, assuming the

center in Nairobi, she concludes that there is significant relationship between the customer

retailers average purchase volume is 10 million VND per month.

satisfaction and the revenue in 10 retail center.

The research is conducted within Ho Chi Minh City, so the result is not intended to be

e. Personal factors: The current economic recession is presently a source of concern

used and compared in any other areas due to geographic differences.

for marketers’ attempts to determine the current buying behaviors of the consumers,
consumers are changing their buying behaviors and greatly decreasing there overall spending.
According to Armstrong & Kotler (2009) proposed that if economic indicators point to a
recession, marketers can take steps to redesign, and reprise and their product closely, they
also concludes that a person’s economic situation such as personal income, savings, and

The research is limited to baby product market in Ho Chi Minh city, Vietnam. It will
only look at the market share and competitions that may affect Dr.Brown milk bottle product
directly. It may use other similar products such as baby care, toys, baby medical products etc.
as references for analysis, but should not consider them as key factors for comparison. It also
should not refers and mention other product lines of New Generation Co., Ltd.

interest rates will influence their product choices in the store.
If not being reviewed and reacted properly, this problem may get worse:

1.3.4

Research significance

Once completed, the research can help the management of New Generation Co., Ltd
-“Dr. Brown” milk bottle manufacturing line may have to declined or shut down due
to overstock

realizing the situation and prepare a clear strategy for future business of this milk bottle
product line. It also may help the consumers to be aware of how important it is to choose an

-Inventory of milk product increases and unusable.

appropriate baby product.

-Workers of this manufacturing line might lose their jobs, increase unemployment
-The company competitive position will suffer damage.

II. LITERATURE REVIEW
1.3.

Research Objectives and the Scope of the Research
2.1 Research definition (operational definition of key words)

1.3.1 Research Objectives

1. Consumer behavior: Cook (2009) conclude that consumer behavior is described in
This research is to identify the important aspects which affect the buying decision of

this way: set of activities is directly achieved, use and disposal of goods and services.

milk bottle’s consumers within Ho Chi Minh City area, Vietnam, in 2013. Base in the
information found, we will suggest the solutions for improving buying decisions and the sales
revenue of Dr. Brown milk bottle product in New Generation Company Limited.
Despite some limitations, the study results are considering valuable references; we
would like to offer useful solutions to enhance the product recognition and its sales.

evaluation, purchase, and post purchase activities.
3. Customer satisfaction: According to Blackwell, Engel & Miniard (2006), there are
three major factors of satisfaction such as product performance, consumption feelings, and

1.3.2 The scope of the proposed research?
Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

2. Buying decision process: Engel et al., (1986) suggest that high involvement with a
product results in which starts with problem recognition, an information search, alternative

Class : OUM MBA 0512-1C
Page 6

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 7


Business Research Method

Open University Malaysia
HUTECH Campus

Instructor: Dr. Ut Tran

Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

expectations. The study showed that building customer satisfaction resulted in better returns

bring the same benefits, but the benefit can be bad or good factors which are dependent on

to companies (Reichheld, 1996)

the 2 brands in a group of comparisons.

4. Price acceptability: Herrmann, Huber & Wricke (2001) and Homburg, Hoyer &

9. Package design: According to Stewart (2007), packaging design skill is

Koschate (2005) stated that consumer satisfaction has a positive relationship with price

communicating design thinking effectively. He defines the elements of design as: material

acceptability and readiness to pay. From that research, these author want to say that higher

choices, color, text, photography and illustration. According to Sustainable Packaging

consumer satisfaction will make higher price acceptance and readiness to pay and low

Coalition (SPC), strategies for sustainable packaging design are:

price

sustainability , transport environmental best practices .

sensitivity

appear.

In contrast, a low consumer satisfaction will affect price

acceptance and readiness to pay positively, and make price sensitive in high level

package Design for

However, Soroka (2002) proposed that packaging is the combination of the science,

5. Advertising: Moschis and Mitchell proposed that the effect of TV advertising and

technology, art and fashion to protect and keep the products to customers. Variawa (2010)

interpersonal influences and social structured on family consumption decisions. Batra et al.

analyzed the effects of packaging on decision making process of Consumer Goods in retail

(1995), the effectiveness of advertising is considered for the effects on sales in the short term.

shopping.

6. Brand awareness: Brand awareness is essential because consumers remind the
brand in the time of a specific product, and the brand will be a part of the mindset. Awareness
can also effect on consumer decision making by influencing brand associations that create the
brand image (Keller, 1998).

10.Supplier : Keeping good relationships with suppliers is recognized as an
impressive factor in sustaining a competitive advantage (Stevenson 2009:525).
11. Buying decision: Sproles and Kendall (1986) proposed that buying decision is
also having related a confused over choice form the customers. They feel very confusing

A brand name gives a characteristic which leads the retailers and consumers to find

when they choose suitable product because it’s over choice.

out service providers and expect the outcomes of the services. Kan (2002) suggests the brand

12. Supplier-manufacturer relationship: Michael Maloni and W.C. Benton (1999), in

awareness can make to increased profitability evaluation. Brand awareness has great

their research stated that the power source of the supplier, once overrun the manufacturer,

influences on buying purpose from the customers who intend to pay money for well-known

could affect their relationship and damage the business of the manufacturer.

product Keller (1993); Macdonald & Sharp (2000). Addition, Nazia et al (2011) use the

13 Mothers’ communication orientation and consumer socialization: Carlson,

regression to test on 200 retailers on two brands i.e. L’Oreal and Ganiers with 3 variables

Grossbart and Walsh (1990) explored that mothers’ communication orientation and consumer

brand awareness and perceived quality, customer loyalty. They concluded that the study was

socialization have the close relationship tendencies on buying decision

brand awareness significantly influences the profitability.
7. Personal factor: Linehan and Cadogan (2000) conclude that personal factors
influence buying decisions such as economic, age, gender, occupation, and lifestyle.
Armstrong and Kotler also has similar opinions and argued that if people with a good secure
job and income, have the tendencies of buying more expensive and even luxury product,
where people with less income and less secure jobs tend to buy cheaper products.

14. Need Recognition: Neal and Questel (2006) stating that need recognition occurs
due to several factors such as personal, professional and lifestyle which ead to formation of

idea of purchasing.
15. Information search: Schiffman and Kanuk (2007) stated that consumer finds
information related to desired product
16. Evaluation of alternatives: Kotler and Keller (2005) consider this stage as one of

8. Brand loyalty: Chaudhuri & Holbrook (2001) said that brand loyalty has the
relationship with brand price. In addition Aaker (1996) shows that price is the first sign of
brand loyalty. In addition, Aaker also emphasized that Price premium is distinguished as

the important stages as the consumer considers when they take into account the factors such
as size, quality and price.
17. Purchase decision made: Kacen (2002) stated purchasing decision can be divided

a customer is willing to pay for the brand loyalty in comparison with another brand which

into planned purchase

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 8

Class : OUM MBA 0512-1C
Page 9

Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

Business Research Method

Open University Malaysia
HUTECH Campus

Instructor: Dr. Ut Tran

18. Post-purchase evaluation: Neal et al (2004) proposed that the important process in
the consumer decision making process when it makes the influences on the consumers’
purchases of the same product or service from the same supplier

Problem
recogniti
on style

Information
search style

Evaluation
of
alternative

Purchase
decision

Post
purchase
evaluation

19. Internal search refers to the process where consumers rely on their personal
experiences and believes (Rose and Samouel, 2009).
20. Life style: Due to Morganosky (1986). He states that Life style in relation to the

Figure 1 Kotler’s Consumer decision -making process

purchase of different consumer products, shopping behavior, retail behavior and online

From this model, it implies that the buyers must go through 5 steps when they buy the

purchasing behavior were also found in the consumer literature

products. Actually, it is not true in real life; the buyers can eliminate one steps or steps
when buying the goods

21. Self-concept: Self-concept is another factor affecting consumer decision-making.
It is defined as “the totality of the individual’s thoughts and feelings having reference to

2.2.2 Kotler's model of stimulus response of buyer behavior

him/herself as an object (Rosenberg, 1979)
22. Social factor : Kim et al (2002) concluded consumers product choice for a brand
are affected by a social influence, and Linehan and Cadogan (2000) proposed that social
factor also influence on consumers behavior, like family, peer group
23. Psychological factor: Armstrong & Kotler (2009) proposed that person’s buying

decisions are influenced by motivation attitude and perception.
24. Personal value: Rokeach (1973) and Kahle (1983) proposed that a personal value
is an enduring belief that a specific end-state of existence or specific mode of conduct is
preferred over others.
25 Purchasing strategy segments: Blattberg, Gary, and Joshua (1981) conclude
purchasing strategy segments based on three purchase areas: brand loyalty (single brand
many brands), type of brand preferred (national, national and private label), and price
Figure 2 Kotler's model of stimulus response of buyer behavior

sensitivity (regular price, deal price).

The consumer’s personal characteristics will illustrate in order to stimulate the buying

2.2 Related research

decision and help the company classifying the buyers due to the way of buying, and assist the

2.2.1 Kotler’s Consumer decision -making process

marketing ways implementing better. The characteristics include:

In the process of buying decision, Kotler (2003) stated that the consumers always go
through 5 steps: problem recognition, information search, and evaluation of alternative,
purchase decision, post purchase evaluation. It showed that the process of buying has

-Social: family and reference groups
-Personal: age & lifecycle stage, economic circumstances and lifestyle
-Psychological: Beliefs, perception, attitudes and motivation

been formed for a long time and it also stretches for long time after the customers sell

2.2.3 Sproles and Kendall research

the products
Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 10

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 11


Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

Sproles and Kendall concluded that the decision making is the basic consumer personality.
The model is consisted of 8 elements: Perfectionism consciousness, brand consciousness,

Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

2.3 Related Model in an analysis
2.3.1 Model of Phuoc’s research proposal

novelty and fashion consciousness, recreational and hedonistic consciousness, price and value
consciousness, impulsiveness and carelessness, confused by over choice, habitual and brand

According to Bharadwaj (2004), there are 4 elements which effects on buying decision

loyal

such as quality, delivery, price, service. In addition, Nguyen Kim Phuoc (2007) analyses
the research of Lehman and O’Shaughnessy (1974).

Perfectionism
consciousness

Kelly and Coaker (1976), Demssey (1978), he concluded with four criteria: delivery –
quality – price, guarantee system, technology ability, implementation ability which are

Brand consciousness

popular and analyses and validated in the past research. From that synthesis, Phuoc uses
them into applying his research proposal on the topic: the elements affecting buying
decision of A4 printing paper in the state enterprise, private enterprise, foreign company

Novelty and fashion
consciousness

Consumer decision making style

in Ho Chi Minh City. In her research, she does not pay much attention quality of A4
Printing Paper; the quality also plays an important factor which causes the effect of
buying decision.

Recreational and
hedonistic consciousness
Delivery

Price and value
consciousness
Quality paper

Impulsiveness and
carelessness

Price paper

Buying decision of A4
printing paper

Guarantee paper
system

Confused by over choice

Technology ability to
make good paper

Habitual and brand loyal

Figure 4 Phuoc’s model of buying decision of A4 printing paper
Figure 3 Sproles and Kendall‘s Consumer decision making style

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 12

2.3.2 Kwan’s model research proposal

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 13


Business Research Method

Open University Malaysia
HUTECH Campus

Instructor: Dr. Ut Tran

Besides, according to Kwan Chui Yan (2006) , she made the PhD thesis on the factor

Business Research Method

Open University Malaysia
HUTECH Campus

Instructor: Dr. Ut Tran

III. CONCEPTUAL FRAMEWORK

affecting young Chinese consumers’ decision making behaviors towards casual wear

The model is designed on the retail buying theory and former research at 2.3 about the

purchase to observe the decision making styles existing in young Chinese choices of

elements affecting on buying decision and the distinguished elements of baby products such

casual wear and check the relationship between decision making styles and the others

as milk bottle, we will process the model as follow

factors. In addition, she gives the model which comprises of 4 major elements including
consumer individual characteristic (personal values, life style characteristics, selfconcept, and fashion involvement), environmental characteristics (social factor and

Customer satisfaction

culture factor, clothing choice criteria and consumer decision-making styles

The
H1

To me, the research of Kwan Chui Yan has limitations which he choose the area of

research so large and diversifies, because the Hong Kong, Taiwan and China also share

Price

H2

Minh City with average income customers.

Advertising

H3

H4
Individual characteristics:

Environmental characteristics:

Personal values

Social factor

Lifestyle characteristics

milk

of
bottle

Suggested solutions

“Dr. Brown”

the same culture, but taste of life style are also different due to the different incomes in 3
areas. To my research, I would like to make the limitation; I only focus on the Ho Chi

buying

decision

Brand awareness

in

New

Generation
Company
Limited
Dependent Variable

H5

Cultural factor

Self-concept

Personal factors

Fashion involvement
Independent Variables

Figure 6: The Theoretical Framework buying decision of milk bottle “Dr.
Clothing choice criteria

Brown” in New Generation Company Limited

The model is consisted of 5 basic elements: Customer satisfactions, Price, advertising, Brand
awareness, and Personal factors. They are considered as independent variables. The core

Consumer decision making styles

Figure 5 Kwan’ model of Consumer decision making styles

component and the major dependent variable of the framework is the last componentconsumer decision making. The purpose of the study (as mentioned above) is to find out the
relationship between independent variables and dependent variable.

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 14

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 15


Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

IV. HYPOTHESIS AND OPERATIONAL DEFINITION

Business Research Method

Open University Malaysia
HUTECH Campus

V.

Instructor: Dr. Ut Tran

Methodology

Operational definitions are instrumental in determining the exact process by which
research data should be collected and processed. Because operational definitions outline how

1. Type of research choice

data will be measured, we can know the elements that affect the buying decision of milk

There are three types of research design, describing their purpose very well. The

bottle “Dr. Brown” in New Generation Company. In addition, we would like to give the

Exploratory research is to discover ideas, information and insights. Descriptive research is

definition of 6 variables. According to Wikipedia; all the definitions are given as following:

usually to describe a population with respect to important variables. Causal research is used
to establish cause – and - effect relationships between variables.

Customer satisfaction, a term used in marketing, is a measurement of how products
and services supplied by a company adapt and give to customer expectation.

Since we are dealing with the elements affecting on buying decision of milk bottle
Dry Brown In New Generation Company Limited, the method used in this research should be

Price refers to the quantity of payment settled by a seller of goods or services, rather
than the eventual payment amount

Descriptive. In the process of making the questionnaire, we will use the Linker for 5 related
variables such as customer satisfaction, price, advertising, brand awareness, personal factors.

Advertising or advertising is a form of communication for marketing and used to
encourage, support, an audience such as viewers, readers or listeners; a specific group to

Those variables reflect the important observations in the process of buying milk bottle. Here
is the diagram to be followed in the research.

continue some new action.
RESEARCH PROBLEMS
Brand Awareness is the extent which a brand is known by potential customers, and is

Researching on the elements affect the buying decision of milk bottle
“Dr. Brown” in New Generation Company

associated with a distinguished product.
Personal factors help us understand the buying tendencies and spending actions of
consumers.

LITERATURE REVIEW
Using buying decision theory from Kotler, Sproles and Kendall research
and Phuoc’ master thesis model and Kwan’ PhD thesis model

The following hypothesis was tested in this study as following:
Hypothesis 1: There is a positive relationship between customer satisfaction and the buying
decision of Dr.Brown milk bottle product
Hypothesis 2: There is a positive relationship between Price and the buying decision of

QUALITATIVE APPROACH
Making peer interview with 7 correspondents
PRETEST OBSERVATION
Adjusting the interview draft, the sample is 30 retail shops

Dr.Brown milk bottle product
Hypothesis 3: There is a positive relationship between Advertising and the buying decision
of Dr.Brown milk bottle product
Hypothesis 4: There is a positive relationship between Brand awareness and the buying
decision of Dr.Brown milk bottle product
Hypothesis 5: There is a positive relationship between Personal factors and the buying

QUALITATIVE RESEARCH
Making observations on retails shops in HCM City
Coding and putting the data
Refresh the data
Analyzing ANOVA, Cronbach’Alpha, etc.

Writing the research and making a deep interview in some case
Figure 7: Research Process

decision of Dr.Brown milk bottle product

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 16

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 17


Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

type of measurement they use on determining customer’s loyalty. By reviewing the

2. Research design

positive and negative points, it is hoped that the researcher can conclude the reasons

a. Data collection (Secondary and Primary data collection).

for Dr.Brown milk bottle’s product declining and from that find possible solutions for

Primary data is information which the author gather by himself and secondary data

improving the situation

is information gathered by others sources such as scientists or institutions (Andersen,



1998). In this research, the primary data consists of interviews with the retailers, and

Assumptions :

questionnaire in the retail shops and customers which I have chosen to investigate. In the

-

That the 100 milk bottle customers will represent the total number of customers.

secondary data, the author use to gather data and facts about the retailers and retailers’

-

The 10 stores responses will represent the total number of retailers.

customers and markets from different websites, retail stores.

-

Those 90% respondents will answer the questionnaires truthfully.

-

Those results will reveal the factors of why Dr.Brown milk bottle product buyers decrease

b. Data analysis:

their purchases and go to substitute or competition’s products

The questionnaire is processed by the pretest interview with 30 samples to distinguish
and discover the mistakes and unclear elements so that we can adjust the mistakes and adjust
them.




The questionnaire is designed:

The questions related to the elements affecting buying decision of milk bottle from the
Qualitative approach: our qualitative approach is to identify the elements affecting

customers and retailers shop owner include Customer satisfactions, Price, advertising, Brand

on buying decision of DR Brown milk bottle in the New Generation Company. From

awareness, and Personal factors. In addition, the deep information relating to the buyers, the

the qualitative information, we can create the suitable questionnaire. The peer

product efficient, the price, the distribution, the buying capacity, etc. will be mentioned

interview is rather good and suitable because we can use the face to face method to



gather information and collect the data from the correspondents. The chosen people

Individual research: the customers and owners of shop retailers buying and selling Dr
Brown milk bottle and others milk bottle in the area of HCM city

are seven such as sale person, shop owner, customers in the retail store. The highest
age is 50, and the lowest age is 22, and the peer interview is processed from



Sampling: The respondents of the study will consist of consumers of New

02/07/2013 to 25/09/2013. All participants’ information will be recorded and

Generations and its retailers/distributors. The reason for this is to determine that they

classifies to determine the elements affecting on buying decision of milk bottle in

have enough time experience to evaluate the milk bottle product, whether they have

New Generation LTD. This data and literature review will be synthesized in the

satisfied with it and, if not, what are the reasons. The retailers/distributors to be

preliminary interview. From the preliminary interview, we will make the official

surveyed, on the other hand, should have knowledge about consumers’ complains and

interview sheet

customer satisfaction of the product. They should be aware of what is usually being
complained and being praised, as well as what makes consumers happy about the





Quantity approach: this method permits us measure and analysis the data in the real

product or what are their substitute’s products. According to Hair & CTG (1998), we

number. Basing on the quantity research method and literature review, we can adjust

should use at least about 100 samples or 150 samples if we use SEM. Besides, Hoelter

the preliminary model and give the suitable model, questionnaire, and scales in the

(1983) proposed that we also need 200 samples. Meanwhile, Hatcher (1994)

official research.

suggested that the samples can be multiplied 5 times by the variables, or there must be

The statistical results will help determine the level of loyalty and accepting among

100 samples. From that reason, we will take 100 samples for our research.

Vietnamese consumers. Furthermore, the survey with retailers will help determine the
Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 18

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 19


Open University Malaysia
HUTECH Campus



Business Research Method
Instructor: Dr. Ut Tran

Collect data: We will handle 100 samples which are given to the customers and the
owners of retail shops. The samples must be obligated the rules in the questionnaires

Business Research Method

Open University Malaysia
HUTECH Campus

Instructor: Dr. Ut Tran

Example: Which brand of soft drink do you like best?
a.Pepsi

b.Coca-Cola

c. Chuongduong

d. 7-up

and all the respondents should answer all the questions in the questionnaire. The



sample choice must be process by the convenient method and secure the average

Frequency determination questions: are the types which suggest the respondents to

ration in the term of income and attitudes

choose one answer about the frequency

Analyze data: after collecting the data, the question and interview must be observed
and we also delete the data which is not attained the demands. Next, the variables will

Example: How many times do you drink soft drink a week?
a.1 time

b. 2 times

c. 3 times

d.over 3 times

be coded and, input, refreshed with 11.5 SPSS version.


Checklist questions: are the types which suggest the respondents to choose many
Instruments used: We use the questionnaire, interview to analysis the data through

answers in the questionnaire

115.5 SPSS updated version
Example: Where do you find the information the mass media?
Personal interview: is the form of direct communication which an interview will ask the
interviewees by using face to face methods, the most unstructured interviews are

a.

processed by face to face. Through the interview, we can clarify the doubts and reconfirm

Newspaper

b. Internet

c. Television

d. Radio

Scales: it is about the extent of agreement questions

the questionnaire are clearly understood but the interviewees. Besides, we can receive the
value information from the respondents which is very precise in our future study. In

Example: What extent do you agree with the price of soft drink?

contrast, it costs so much when we move to many places to receive the informant on, and

a.

Strongly agree

b.

Agree

c.

Neutral

d.

Disagree

e.

Strongly agree

some interviews might unreleased to answer some personal questions relating to them.
Questionnaire: is a form of descriptive and opinion related survey. In this research we
would like to use the self-administered questionnaire which the respondents is suggested
to complete the questions in his time. We use 3 main kind of phrasing questions:
Determinants choice question: are the types which suggest the respondents to choose

3. Estimated budget of the research

one answer, response from several possible answers

The cost for each respondent answer, including printout, transportation, time, gas will
be 50,000 VND x 210 = 10,100,000 VND (a)
Cost per person process, based on Vietnamese law average salary:
10,000 VND (b)
Number of person processing: 03 persons (c)
Total time is 4 months x 26 days x 40 hour = 4,160 hours (d)
Total cost for the research = (a) + (b) x (c) x (d) = 134,900,000 VND

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 20

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 21


Business Research Method

Open University Malaysia
HUTECH Campus

Instructor: Dr. Ut Tran

Instructor: Dr. Ut Tran

Aaker, David (1996). Building Strong Brands. Free Press: New York.

Primary research will begin on July through September 2013.

1

Business Research Method

REFERENCES

4. Activity plan:

No

Open University Malaysia
HUTECH Campus

Research Process

Days

End

Start

Research Proposal

19

03/07

23/07

Introduction

10

03/07

13/07

Literature review

9

14/07

21/07

Research Methodology

3

8/08

11/08

Survey Design

7

12/08

19/08

10

19/08

29/08

Statistic result

2

29/08

31/08

Situation Analysis

3

01/09

04/09

Conclusion

3

04/09

07/09

07/09

10/09

Batra R., Lehman D.R., Burke J., Pae J. (1995), «When does advertising have an impact, A

Study of Tracking Data», Journal of Advertising Research, 35, 4.
Blackwell, RD, Engel, JF & Miniard, PW 2006, Consumer Behavior (10th ed.) Thomson
South-Western. USA

2

Survey sent to sample and
make the surveys

3

Blattberg, Robert, Gary Eppen and Joshua Liebermann (1981), "A Theoretical
And Empirical Evaluation of Price Deals in Consumer Nondurable”, Journal
Of Marketing, 45 (winter), 116-129.
Carlson, Les, Sanford Grossbart and Ann Walsh (1990), “Mothers Communication
Orientation and Consumer-Socialization Tendencies”, Journal of Advertising, 19
(3), 27-38.
Chaudhuri, A., & Holbrook, M. B. (2001), “The chain of effects from brand trust and brand
affect to brand performance: The role of brand loyalty”, Journal of Marketing,

Final reflection

3

First draft

4

11/09

15/09

Final dissertation

3

17/09

20/09

65(2), 81-93.
Cook, D.T. (2009). “Knowing the child consumer: historical and conceptual insights of
Qualitative children’s consumer research”, Young Consumers, Vol. 10, No. 4, pp.
269-282.
Engel, J. F., Blackwell, R. D., and Miniard, P. W. (1986), “Consumer Behavior, 5th ed.,

5. Conclusion

Dryden

In this baby product business, brand loyalty, price and quality are crucial factors

Hair & Ctg (1998), Multivariate Data Analysis, Prentice-Hall International, Inc.111

leading to buying decision. However, people have different perception of satisfaction because
of culture. Although Dr.Brown is an USA brand, while selling in Vietnamese market, it has
to adapt the culture and demand of the local consumer. There are several research on

Hatcher, L. (1994). A Step-by-Step Approach to Using the SAS® System for Factor Analysis
and Structural Equation Modeling. Cary, NC: SAS Institute, Inc.

customer satisfaction and brand loyalty occurs in Asia in related fields, however, for the

Herrmann, A, Huber, F & Wricke, M 2001, “Customer Satisfaction as an Antecedent of

specific Vietnamese area, this research results will reveal important characteristics on how

Price Acceptance: Results of an Empirical Study‟, Journal of Product & Brand

Vietnamese consumers accepting baby product such as Dr.Brown milk bottle. Based on

Management, vol. 10, no. 3, pp. 160-169.

found result, the researchers suggest that the company should change product and package
Retrieved 28 September 2013

design and improve customer service quality.

28 September 2013
Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 22

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 23

Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

Business Research Method

Open University Malaysia
HUTECH Campus

Instructor: Dr. Ut Tran

Macdonald, E. K., ＆ Sharp, B. M. (2000). “Brand awareness effects on consumer decision

Retrieved28 September 2013

making for a common, repeat purchase product: A replication”. Journal of

awareness, Retrieved 28 September 2013

Business Research, 48, 5-15.
Retrieved 28 September 2013
Morganosky, M.A. (1986) “Cost versus convenience oriented consumers: demography. Life
Hoelter, D. R (1983). The analysis of covariance structures: Goodness-of-fit indices,

style and value perspective.” Psychology and Marketing, Vol3 (1), PP 35-46

Sociological Methods and Research, 11, pp. 325–344
Neal, C., Quester, P. and Pettigrew, S. (2006) “Consumer Behavior: Implications for
Homburg, C, Hoyer, WD & Koschate, N 2005, “Do satisfied Customers Really Pay More? A

Marketing Strategy” (5th edition) Berkshire: McGraw-Hill

Study of the Relationship between Customer Satisfaction and Willingness to Pay‟,
Reichheld FF, 1996, The Loyalty Effect, Harvard Business School Press, Boston, MA

Journal of Marketing, vol. 69, pp. 84-96.
Kacen. J. J. and Lee. J. A., (2002) “The influence of culture on consumer impulsive buying
behavior”, Journal of consumer psychology. 12(2), pp. 163-174.

Rosenberg, Morris (1979). Conceiving the Self, New York: Basic Books, Inc.
Schiffman, S. L, Hansen H. and Kanuk L. (2007) “Consumer Behavior: A European

Kan, W. H. (2002). The Study of Relation between Product Value, Brand Trust, Brand Affect
and Brand Loyalty. Unpublished master thesis, Tamkang University, Taiwan.
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand
equity. Journal of Marketing, 57(1), 1-22.

Outlook”, London: Pearson Education
Spoles, G.B & Kendalle, E.L. (1986) « A Methodology for profiling consumers’ decision
making styles », Journal of Consumer Affairs, Vol.20 (2), PP 267-279
Stewart, B. (2007). Packaging Design. Published by Laurence King Publishing Ltd, England

Keller, Kevin (1998) Strategic Brand Management. Building, Measuring, and Managing
Brand Equity. Prentice Hall: Upper Saddle River.

Underwood, Mick. (2004). The Linkert Scale. In Communication Studies, Cultural Studies,

Media

Kim Phuoc, Nguyen (2006). Buying decision of A4 printing paper. Unpublished master

Studies

(CMMS)

Infobase.

Available

at:

[www.cultsock.ndirect.co.uk/MUHome/cshtml/index.html]. Accessed: [15/01/04].

thesis.Ho Chi Minh city Open University
Commonwealth of Learning. (2000). Manual for Educational Media

Researchers:

Knowing your Audience. Vancouver, Canada: Commonwealth Educational Media
Centre for Asia (CEMCA).
Kwan Chui Yan (2006). The factor affecting young Chinese consumers’ decision making
behaviors towards casual wear purchase. Unpublished PHD thesis.Hongkong
Technology University
Lehmann, D.R., and J. O’Shaughnessy. 1974. Difference in attribute importance for
Different industrial products. Journal of Marketing 38 (April):36–42.

Students: Lý Vinh Kiên

Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 24

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 25


Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

2. If you were not totally satisfied with the customer service, please describe the reasons for

APPENDICES

your dissatisfaction.

Part 1 Pretest questions
We would like giving those questions for our pretest.

3. Was the process for getting your question resolved?

1. Have you used DR Brown bottle for your baby?
2. According to you, what are the elements affecting on your buying decision?
3. Would you like mentioning the main characters affecting on your buying decision?
4. To you, what is the most important service when you buy the Dr Brown milk bottle?

a. Excellent
b. Good
c. Average

5. Who will decide to buy the Dr Brown milk bottle if the needs are raised?
6. What do you think about the close relationship among customer satisfaction, price,
advertising, brand awareness, personal factors with buying decision making?

d. Poor
e. Very poor

7. Where do you like to buy Dr Brown milk bottle?
8. How can you find information on Dr Brown milk bottle?

4. If you were not totally satisfied with the process of getting your problem resolved, please

9. What brands do you like to use except Dr Brown milk bottle?

describe the reasons for your dissatisfaction.

10. What characteristics don’t you like when you use Dr Brown milk bottle?

5. Would you say the value of the Dr.Brown, as compared to its price?
a. Excellent

Part 2 Questionnaire on customers
Dear our value customers,

B. Good

We are making the research on the topic “The elements that affect the buying decision of
milk bottle “Dr. Brown” in New Generation Company Limited” for our company. We are
wondering would you mind using your precious times to response this questionnaire on that

c. Average
e. Poor

research. Through that research, it is very useful for you in term of buying and using Dr
f. Very poor

Brown milk bottle.
1. In thinking about your most recent experience with New Generation Co Ltd, was the
quality of customer service you received:

6. The customer service representative was very courteous.
a. Strongly Disagree

a. Excellent

b. Somewhat Disagree

b. Good

c. Neutral

c. Average

d. Somewhat Agree

d. Poor

e. Strongly Agree

e. Very poor

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

7. The customer service representative handled my call quickly.

Class : OUM MBA 0512-1C
Page 26

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 27

Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

Open University Malaysia
HUTECH Campus

a. Strongly Disagree

e. Pest

b. Somewhat Disagree

f. Other

c. Neutral

Business Research Method
Instructor: Dr. Ut Tran

11. The main reason you choose Dr.Brown brand is because:

d. Somewhat Agree

a. It is known for high quality

e. Strongly Agree

b. It used good material which is safer for my baby

8. The customer service representative was very knowledgeable.

c. It is recommended by my friends or family members

a. Strongly Disagree

d. It is cheaper than other brands

b. Somewhat Disagree

e. It is looks nice

c. Neutral

f. I just buy it randomly

d. Somewhat Agree

12. All things considered, over the next 12 months how likely are you to replace your
Dr.Brown milk bottle product?

e. Strongly Agree
9. Consider the total package of New Generation Co Ltd including customer service, features
and benefits, and cost. How satisfied are you with the New Generation Co Ltd Company?

a. Certain
b. High Chance

a. Strongly Disagree

c. Not sure

b. Somewhat Disagree

d. Low Chance

c. Neutral

e. Never

d. Somewhat Agree

13. If you are looking to replace Dr.Brown, what are your reasons?

e. Strongly Agree

14. Please indicate the approximate total amount your family spent on Dr Brown within the

10. If the Dr.Brown were no longer available, what would you replace it with?

a. 1-2 millions

a. Dr brown

b. 3-4 millions

b. Pigeon

c. Over 5 millions

c. Event

f. Don't know/Not sure

d. Kuku

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

last month. (Individual buyers)

Class : OUM MBA 0512-1C
Page 28

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 29


Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

Open University Malaysia

HUTECH Campus

15. Please indicate the approximate total amount your family spent on Dr Brown within the

a. Totally agree

last month. (Retailer buyers)

b. Agree

Business Research Method
Instructor: Dr. Ut Tran

c. Neutral

a. 10-20 millions

d. Disagree

b. 30-40 millions

f. Totally disagree
20. Dr Brown is obvious different than others……

c. Over 50 millions

a. Totally agree

f. Don't know/Not sure

b. Agree
16. How many times have you purchased from New Generation’s product in one year?

c. Neutral
d. Disagree

a. 1-2

f. Totally disagree
b. 3-4

21. Which brand do you know in your mind?

c. More than 5 times

e. Dr brown

d. Don't know/Not sure

f. Pigeon

17. In your opinion, the price of Dr. Brown milk bottle is

g. Event

a. Higher than other brands

h. Kuku

b. Acceptable

e. Pest

c. Lower than other brands

22. Select the TWO retailers you always buy the Dr Brown milk bottle.

18. I can mention a couple of features of Dr Brown.

a. Mass Retailer

a. Totally agree

b. Baby Specific Store

b. Agree
c. Online website

c. Neutral
d. Disagree

d. Supermarket

f. Totally disagree
23. Dr Brown you use for your baby's or are you willing to try new milk bottle products?
a. I try a new product if it costs less
b. I try a new product if I receive a sample
19. I think I know Dr Brown well.
Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

c. I try a new product if a friend suggests me
Class : OUM MBA 0512-1C
Page 30

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 31


Open University Malaysia
HUTECH Campus

Business Research Method
Instructor: Dr. Ut Tran

d. Once I find something that works, I'm sticking to it
24. You currently use Dr Brown for your baby products, how did you find out about them?
a. Friend or Family member told me
b. Advertising on TV or in a magazine
c. Found the product in a retail store or supermarket
d. Found the product at online website
25. What kind of advertising do you like best in accordance to Dr Brown milk bottle
a. TV advertisement
b. Newspaper advertisement
c. Columns advertisement on internet
d. Leaflet
e. Others

Students: Lý Vinh Kiên
Huỳnh Phạm Ngoc Lâm

Class : OUM MBA 0512-1C
Page 32