Thesis summary: Determinants deciding the attraction of department store: The case of Ho Chi Minh city

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HCMC

DINH TIEN MINH

DETERMINANTS DECIDING THE ATTRACTION OF
DEPARTMENT STORE: THE CASE OF HO CHI MINH CITY

Major: Trading
Code: 62.34.01.21

THESIS SUMMARY

HO CHI MINH CITY – 2016


The thesis was completed in: University of Economics HCMC
Tutors:
1. Ph.D Ngo Thi Ngoc Huyen
2. Ph.D Trieu Hong Cam
Opponent 1:
Opponent 2:
Opponent 3:
The thesis will be protected in front of the Council at:
At

h,

, 2015

This thesis can be found at:

CHAPTER 1: OVERALL INTRODUCTION
1.1 Urgency of the topic
In the context of international integration of Viet Nam (VN),
almost all business sectors are more or less affected which is
impossible to not mention the domestic retail sector. So far, the
retail sector has experienced strong transformation from state
owned economic sector to market-oriented competition since
1995. Total retail sales of goods and services in real prices of all
country steadily increased between 1995 and 2014, from
approximately VND 122,000 billion to nearly 2,945,000 billion
VND (GSO, 2014). The growth was also reflected in the strong
growth of number of markets, supermarkets and department
stores, from a few hundred markets, 10 supermarkets and 2
department store in 1995 to 8,547 market , 659 supermarkets and
115 department stores in 2012 (GSO, 2013). Beside that, the
system also has major department stores like the Lion Corporation
(Malaysia) with 9 Parkson Department stores; Vingroup with
seven department stores and 2 Mega mall; AEON Corporation
(Japan) with 2 department stores. Besides, other department stores
are still operating as Diamond Plaza, Nowzone, Pandora, Cresent
mall, Zen Plaza ... The foreign retailers who are very famous in
the world are also showing their great interests to VN market in
the future as Walmart (USA), Auchan (France), Carrefour
(France), Tesco (UK), South Investment (Singapore) and E-Mart
(South Korea). According to the forecast until 2020, VN will have
1,200 supermarkets and 180 department stores. The proportion of
retail sales through supermarkets and department stores will
account for about 45% of total retail sales of merchandise and

service revenues for the whole country (MTI, 2013).
An increase in the number of trading centers results in the fact
that the shopper tend to select more. They prefer returing the
department stores who knows how to attract them, with many
diverse and numerous stores, many types of goods soled, suitable
to their preferences. However, it is the fact that department store
can attracts such buyers, but can not attract other buyers because
each customer has different characteristics and then of course
their behaviours are not the same. Therefore, the department store
managers need to know what aspects which a department store
should attract shoppers to come to them (Wong et al, 2001).
Given the strong growth and the increasingly fierce competition
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of this kind of department stores in VN on the path of
international integration, understanding the factors that attracting
customers to the department stores becomes an essential and
important issue not only for managers but also bring practical
sense to the process of local development in improving the living
standards of the people and to attract more companies engaged in
this business sector.
In addition, in terms of academic review, the researches in the
world related to the retail industry in general and department store
model in particular are rich and diverse in topics, from
understanding the factors that make the image of a small shop, the
shopping motivation of customers, intentions and behaviors of
their visit to the elements that make up the attraction of retail
model whether it is located near or far from the residential areas ...
In VN, there are many studies related to the retail industry,

particularly the supermarket model, while the department store
model is quite modest. The studies focused largely on evaluation
of customer loyalty, customer satisfaction, the required attributes
of a retail store or even the articles in order to build the macro
operating management policies in retail sector. The review on
such theory has inspired the author, besides the practical problems
mentioned above in the selection of topics about factors attracting
shoppers in department stores to make his thesis with the desire to
contribute to the treasury of world experimental studies a typical
case of emerging countries such as VN.
1.2 Objectives of the study and research questions
Objectives of the study
Discover how to understand the attraction of department stores
under perspective of shoppers, rather than from the perspective of
operators of department stores. Since then, seeks way to measure
it.
Discover the determinants of customer attraction of the
department stores under the perspectives of shoppers, measure the
impact of these factors to the attractiveness of the department
stores.
Conduct shopper segmentation based on their expectations for
factor of attraction of going department stores.

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Research questions
What is the attraction and how to measure? For department
store model, how to understand the attraction? Do factors such as
human servicing, products for sales, pricing policies, promotion

programs or services have an impact on attracting customers to a
department stores or not? In addition to the above factors, the
comfort, the convenience of shopping or space of a department
store create more positive effects in attracting of a department
store or not? How is the influence and impact of these factors to
the attractiveness of the department store? Are there differences in
the intention and behavior among diverse customers of
department stores on demographic matter? The group of
customers may have to a department store model?
1.3 Subjects of study and research scope
Subjects of research: The attraction of a department store.
Research scope: On the research subjects, this study focuses
only to a target group of shoppers; About retail model, this
research limits in type of department store; Regarding the scope
of space, this study only examines the department stores in HCM
City market; Regarding the scope of time, this study conducted a
survey and market observation for a period from January 2013 to
June 2015 or in other words the content shown as an overall
picture taken back in distance that time.
1.4 Research Methodology
This research project is conducted by mix-method: Qualitative
research is conducted through in-depth interviews with experts
and managers in the retail sector and group interviews with
regular customers to department stores. Quantitative research is
conducted through individual interviews form of questionnaires
with minimum sample size of 700 people aged 15 and older.
1.5 Practical significance of research
This study will contribute to generalize theory of consumer
behavior. Results will well serve a very important business sector
of the economy- the retail sector in the context be understood as

conversion economies like VN. Research also helps department
store managers to seize is the determining factor of the attraction
of a department store, which factors are most important and less
important in courts the customer's shopping. Since then,
administrators will develop appropriate business strategies to
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attract the right customer segments they want to target, satisfy
their needs and better focus for the planning, service improvement
and distribution of resources. Finally, this research also
contributes to the worldwide experiment research collections on
the attractiveness of the department stores, but in a transition
market like VN. Also, this can also be used as a reference for
academic research in the next research in the fields of retail, for
university lecturers, students and fellows in commercial business
sector.
CHAPTER 2: THE THEORETICAL BASIC AND
RESEARCH MODEL
2.1 The theoretical basic
2.1.1 Theory of Motivation
The motivation has long been regarded as the main cause for
the personal behavior. The nature of the motivation derived from
the needs and satisfaction of human. Can understand the motivatio
as the answer to the question "Why do we do and what we do?"
From that perspective, many researchers have developed many
different theories to explain more to this motivation theory and
every theory that only focus on a limited field.
Motivation theory is divided into two branches: the first branch
concerning the internal forces within the human that is the drive

reduction theory of Clark L. Hull (1935), Arousal Theory of
Motivation of Kendra Cherry (2015) and Instinct Theory of
William McDougall; the second branch relating to external forces,
such as the encouragement theory of BF Skinner (1953). Besides,
there are many theories about the contents of the motivation as the
theory of system need level of Abraham Maslow (1943), twofactor theory of Fredrick Herzberg (1959), the theoretical model
of Clayton ERG P. Alderfer (1969) and the need theory David
McClelland (1961).
Within the scope of this study, the relevant theories focuses on
branch one and branch two. This is the theoretical foundation as a
basis for the explanation of human behavior to satisfy their
diverse needs.
2.1.1.1 Drive-reduction Theory of Motivation, Clark L. Hull
1935
Drive-reduction theory became popular in the 1940s and 1950s
as a way to explain the behavior, learning and motivation. This
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theory was developed by Clark L. Hull and further developed by
his colleagues. He developed a theory around the idea that the
active body to maintain a state of balance or equilibrium. Hull
used the term "drive" to just stress, discomfort or stimulating
demand caused by biology or physiology, and it should be
reduced.
2.1.1.2 Arousal Theory of Motivation, Kendra Cherry, 2015
Arousal theory shows that people can have certain actions, or
reduce or increase the level of stimulation level to maintain
optimal levels of mental arousal. For example if the level of
stimulation of a too low, they can be considered to watch an

action movie or jogging. If the level of excitation is too high, they
will find ways to relax such as meditating or reading a novel.
2.1.1.3 Instinct Theory of Motivation, William McDougall
This theory suggests that all behavior is motivated by instinct.
Instinct is innate behavior and target oriented, rather than the
result of learning or experience. For example, children have an
innate reflexes help them to find the nipple and nutrients from the
mother, while the birds have an innate to build nests or migrate in
winter.
2.1.1.4 Incentive Theory of Motivation, B.F. Skinner, 1953
Incentive theory shows that behavior is motivated by the desire
for reward. Fundamental rule of economics that increased or
decreased physical motivation will control human behavior.
People want to do something to increase material reward.
However, people want to decrease something, just do so costs
increased by the rules or penalties.
2.1.1.5 Maslow’s Hierarchy of Needs Theory, 1943
Maslow said that human behavior is derived from the demand
and the needs of the people arranged in a priority order from low
to high importance. Accordingly, the demand at higher levels
wants to appear, the demand at lower levels must be satisfied
before. The higher demand will arise and desire to satisfy more
intense when all basic needs in low importance have been met
adequate.
2.1.2 Factors attracting customers to department stores
In the world, there are plenty of authors focused on the retail
market but due to the complex nature of its appeal. By
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chronological order, we may list the typical authors such as
Martineau (1958), Lindquist (1974), Bellenger et al (1977),
Howell & Rogers (1980), Nevin & Houston (1980), Gautschi
(1981), Finn & Louviere (1990, 1996), Bloch et al (1994),
Wakefield & Baker (1998), Wong et al (2001), Sit & et al (2003),
El-Adly (2007), Diana et al (2011), Rasa & Sonata (2013) ... All
of them focus attention on the problem to find out the factors that
build up the image of a retail model, the determinants attract
customers to the retail model to that adopted the measure by
different criteria.
For example, Wong et al (2001) developed a SCATTR tool to
assess the attractiveness of the shopping center under the
management of the joint enterprise. SCATTR Tools include
twenty properties divided into five factors: location, quality and
diversity, popularity, service and sales incentives. Sit & et al
(2003) synthesized 14 different studies of many authors from
1977 until 2001 and made seven groups typical image of a
shopping center which are considered important by customers in
attracting them. They are commodity, accessibility, service and
atmosphere like the previous author. Also, Sit & et al first added
three images related group entertainment needs of customers, the
demand for food and safety in the mall. El-Adly (2007) in the
UAE - a country of many nationalities and multiculturalism
discovered seven key factors to attract customers to the shopping
center, there are: comfort, leisure activities , the diversity, the core
characteristics of shopping centers, convenience and appearance.
In summary, the differences between these studies are
attributes never grouping in the same way. They can be separated
individually but can also be combined with other attributes. It all
depends on the characteristics of consumer consumption in that

country from which they lead to different behaviors, different
assessment models for the department stores.
2.1.3 The attractiveness of the department store
The attraction is the researchers interpreted in two ways.
Firstly, in terms of physics, it is understood like gravity theory
developed by Isaac Newton in 1680. By this view, there are some
pioneering studies of Huff (1964) and Nakanishi & Cooper (1974)
applying to the retail sector. Second, in terms of social
psychology study, which is the attraction, passion, willingness to
overcome geographical distances and a certain amount of time to
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come up with something or somewhere That (Cliquet, 1997).
Applications in the retail sector, the attraction is divided into two
phenomena, one is the presence of a selling point to attract almost
a natural way most customers, the other attraction is due from the
efforts of the media program or the trade policies of point of sale
(Cliquet, 1997).
Summary of multiple studies show that the attractiveness of
the department store is measured through many different ways,
from intent to customer behavior. Maenpaa et al (2008) measured
the lure past the average frequency of visits by customers for a
department store in a determined time period. Howell & Roger
(1980) measured by the number of trips a department store in a
determined time period and the average frequency of visits by
customers to a department store. Wakefield & Baker (1998) and
Wakefield & Blodgett, (1994), the environmental explore
department store affect desire to stay and come back next time of
purchase. Sit & et al (2003) was first one to add entertainment

elements in attracting customers of department stores represented
by deciding department stores...
In terms of psychology, the attraction is also defined by
scientists as the ability to activate the wake or the desires of
customers, leading them to act in order to meet the individual
needs as well as meet social needs (Kendra Cherry, 2015; Russell
& Pratt, 1980). Ying & Cheng (2006) suggested that the wake has
an impact on perceived service quality and satisfaction in the
service environment to enjoy, but there is no environmental
impact of utility services. Department store is a service
environment to enjoy, the managers always try to evoke the wake
of our customers through a variety of factors such as space,
decorate, display, merchandise, and senses ... make them go there
for shopping, entertainment, stress, regain balance in your life, or
at least find inspiration in life.
2.1.4 Segmenting shoppers
Segmenting shoppers through image properties with very
thorough look and feel throughout the characteristics of each
customer because individual consumers are heterogeneous in
seeking benefits when shopping. Each shopper is interested in
various image attributes (Steenkamp and Wedel, 1991). Several
academic studies have explored the contribution of image
attributes for customer segmentation in the department stores.
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Pioneering works were done by Bellenger et al (1977) as
identifying two segments of the shoppers because it is economical
and shoppers because of entertainment. Dennis et al (2001)
clasified image area of four properties (goods, accessibility,

service and atmosphere) to recognize two customer segments in
the shopping center as "shop" shopper and "service" shopper ".
2.1.5 The concept of retail operations and department store
model
2.1.5.1 The concept of retail operations
Retailing is all activities related to the direct sale of products or
services to end customers, serving the needs of individuals or noncommercial (Philip Kotler & Gary Armstrong, 2012). Sales in this
manner is characterized by goods traffic off the field and into the
consumer sector, the value and use value of goods was done.
Retail activities are varied in size and form from the hawkers,
traditional markets to grocery stores, supermarkets, department
stores, department stores, convenience stores, direct sales online,
television sales, telephone sales and growing sales appear new
ways as sales through vending machines and retailers at home or
MLM.
2.1.5.2 Model of Department store
According to the decision 1371/2004/QD-BTM of the Minister
of Trade of VN (now the Ministry of Industry and Trade) signed
September 24, 2004 promulgating the Regulations on
Supermarkets, Department stores, "Department store is type of
business organization of modern, multifunctional trade business,
including a combination of the type of stores, facility services,
halls, meeting rooms, offices for lease ... layout set medium,
uninterrupted in one or several adjacent buildings to meet the
standards of business space, technical equipments and
management skills, business organization. Having served the
civilized methods, conveniently meet the development needs of
business operations and satisfying the demand for goods and
services of customers."
2.2 Design research model

2.2.1 Designing qualitative research
This study was conducted to collect qualitative data by direct
observation techniques in twelve department stores selected in
HCMC, which are Diamond District 1, Nowzone District 1,
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Unionsquare D.1, Vincom Center Dong Khoi District 1, Parkson
SGN District 1, Parkson Cantavil District 2, Parkson Hung Vuong
Street District 5, Crescent mall District 7, Parkson Le Dai Hanh
District 11, Parkson Tan Son Nhat Tan Binh Dist (CT Plaza),
Pandora City Tan Phu District and AEON Celadon Tan Phu
District. The process of observing a department store will record a
lot of data from external data, such as distance from the
department store to downtown, the main roads leading to the
department stores, capable traffic congestion during peak hours in
the road... to internal data and how to manage the car in park,
walkways from parking inside the department store, the signage,
the number and location location of elevators / escalators, security
staff on duty, the activities of customers to a department store, the
layout of the floor space, the number of booths in each floor,
value added services in a department store... On average, each
department store is performed twice observations at two different
times (in weeks/weekends, during office hours and evening) by
moving all the stories, take notes, take pictures (if possible), ask at
reception and customers right there, or sit at the dining booths in a
department store and observe.
Combined with observation techniques, qualitative research
conducted with three experts discussed in the retail sector, which
are Ms. Tran Thi Bich Tram - Deputy Manager in Retail Division

of Crescent Mall, Mr. Nguyen Quoc Trung - Assistant Floor
Manager at Diamond and Mr. Tran Khac Kinh - Price
Management and data Analysis of Big C VN and group
discussion with twenty different objects, including regular
customers coming in many department stores of age (pupils,
students, office workers, business owners), owner of the booth,
salesman, guard at a department store. The combination method,
has recently confirmed discovery used in group discussions.
2.2.2 Results of qualitative research
Combining records on actual observations and the results of
discussions with experts and twenty three subjects show that the
typical customers are interested in twelve different elements of a
department store, which is: Space, Commodities, Facilities,
Personnel, Safety, Price, Value Added Services, Convenience,
Advertising, Location, Entertainment and ONE NEW FACTOR is
the Management.
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Besides, the results of further discussions showed ONE NEW
POINT in demonstrating the attractiveness of the department
stores, which is when it is considered in terms of psychology. It
can be understood as the gaining sympathy and trust of those who
have to or even less than that ever. It is the impact entice them
towards department store, feels first impression, stimulate
curiosity, interest and desire to explore the customer and the
customer is shown by the attitude very concretely in the positive
direction. New findings are completely matching with Motivation
Awaking theory of Kendra Cherry (2015) and Theory of Needs of
Abraham Maslow (1943).

CHAPTER 3: STUDY DESIGN
3.1 Study model

Twelve hypothesis from H1 to H12 are: There is a positive
relationship between Xi (i=1:12) and customer attractiveness of
department stores.
3.2 The process of study and the process of sampling
Study process is designed to conduct in three phases: (1)
discussion with experts and group discussions (qualitative); (2)
preliminary investigation (quantitative); (3) official survey
(quantitative).
The process of sampling is divided into five steps: (1) Identify
the research crowd, (2) Identify the paradigm, (3) Determine the
sample size, (4) Select the sampling method, (5) Progress
selection.

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3.3 Method of testing research models
Main testing method used in this research is multiple linear
regression, namely considering the impact of these factors
contributing to the attraction (Xi) to the attraction (Y) Meanwhile,
the study also tested the model through the effect of moderator
variables. These variables will affect the quality of the
relationship between the independent variables Xi and the
dependent variable Y and enhancing the scope of the regression
model. In this study, K-means analysis is used to segment
customers according to the observed variables of the factors of
attraction. After the clusters have been formed, the next step will

be to interpret and describe the customer segments according to
the demographic characteristics and their behavior in the
department stores. The difference between the segments is
considered significant at a significance level of less than 0:05
(Litwin, 1995)
3.4 Scale of study model
A measurement scales for these concepts were also developed.
Specifically, the scale of the factors of attraction includes twelve
ingredients: Space (8), Commodities (5), Comfort (4), Staff (4),
Safety (4) , Prices (3), Additional services (3), convenience (4)
Advertising (3), Places (4), Leisure (3) and Quality management
(3); Scale the results of the attraction include two components:
Intent and behavior (3) and Psychological status (5). A total of 56
observed variables.
3.5 Preliminary investigation on assessment of scales
The survey was conducted directly with lecturers of HCM City
Economics University, students of International Trade and
Commerce K39 of HCMC Economics University, students of
Diploma in Accounting 2 of HCM Economics University of
Economics, staff of VN Collagen Drink Co., Ltd - HCMC
Branch, and persons doing morning exercise at Tao Dan Cultural
Park. Number of questionnaires provided 180 and collected of150
satisfactory sheets. Time of survey conducted to from March 01st
2015 to March 20th 2015. Results evaluating the reliability of the
scale achieved from 0.779 to 0.956.
Scale of "The factors of the attraction": There are SEVEN
factors extracted with the total variance is 71.17%> 50%. The
variations in the scales are load factor> 0.5. However, in the
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original built model, the determinants of the attraction of
department stores include TWELVE factors but here on extracted
by SEVEN. This difference can be explained by reasons of too
small sample size (n = 150) in the preliminary investigation
because of saving time and costs. In theory study, for small
samples, we can solve by evaluating concepts together in pairs
(Nguyen Dinh Tho, 2013). However, this method takes too much
time when the number of concept study in this case is quite large
(k = 12). Therefore, it takes about 66 pairs. Therefore, with the
desire to better demonstrate the suitability of the model compared
to market data in HCMC, formal quantitative research still keeps
TWELVE elements for verification steps but the sample size is
larger many times (n = 700).
Scale of "attraction": There is ONE factor may deduct the total
extraction variance is 77 004%> 50%. However, in the original
built model, the attraction is argued and measured at TWO
aspects intention - mental behavior, but here only extract one
factor. This shows the results of the preliminary investigation of
market data showing no difference versus content and theoretical
overview and qualitative results presented in chapter two. Because
of this difference, with the desire to better demonstrate the
suitability of the model compared to market data in HCMC,
formal quantitative research will be conducted to test the more
obvious with larger sample sizes many times (n = 700).
CHAPTER 4: ANALYSIS OF RESULTS AND MODEL
ACCREDITATION
4.1 How to select respondents and approaches of respondents
Option 1: Direct in twelve department stores (n1=411):
Twelve interviewers allocated to twelve department stores

according to criteria of close to their habitat convenient for travel
because under the assignment of coordinators, they must continue
access to respondents (shoppers) at the department store by day
(time) and hours (time) of the week flexibly. These shoppers were
interviewed by a convenient method and judgment (non
probability). Statistics reality reach respondents. In terms of
gender, with 137 out of 411 respondents were male (33.3%) and
274 out of 411 respondents were female (66.7%). In terms of age,
the results are as follows: Boomers Group (1944-1961) were 21
people, Generation X group (1962-1982) with 70 people and
Generation Y group (1983-2000) with 320 people.
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Option 2: Direct in enterprises (n2=146): Ten interviewers
conducted the data collection in ten organizations and various
enterprises in HCM City, where they are working. Statistics
reality reach respondents. In terms of gender, 30 of 146
respondents were male (20.5%) and 116 out of 146 respondents
were female (79.5%). In terms of age, the results are as follows:
Boomers Group (1944-1961) with one person, Generation X
group (1962-1982) with 79 people and Generation Y group (19832000) with 66 people.
Option 3: Indirect via Internet (Google Docs) (n3=164): Forty
clues respondents are chosen based on the experience and
relationships of the study. After answering the online
questionnaire, the clue respondents by their personal relationship
with their work or in society continue to choose the next
respondents to members asking them to answer. Statistics reality
accessible online respondents. Regarding gender, male, 47 of 164
respondents (28.7%) and 117 women out of 164 respondents

(71.3%). In terms of age, Generation X group (1962-1982) has 64
people and Generation Y group (1983-2000) with 100 people.
4.2 Characteristics of respondents
In terms of gender, in total 721 respondents, with 214 male and
507 female. In terms of age, 78.9% of respondents fall in the
group aged 15 to 35 years old. Regarding education, the
outstanding proportion are undergraduate and graduate students
with the absolute number at 582/721 who responded, equivalent
to 80.7%. Regarding income, 391 respondents have monthly
income from VND 7.5 million to VND 30 million. Career with
71.4% of respondents to the employee. They are public servants
and office workers. The second largest amount of respondents are
students and students, accounting for 15.4%. The rest are
freelancers, housewives or the retired accounted for 13.2%.
4.3 Rating reliability and value scales
With the evaluation method of scale reliability and variable
testing principle as described in Section 3.6.1, thirteen scales used
to measure thirteen concepts in the research model will be
evaluated again but with a much larger sample (n = 721)
compared with the preliminary investigative steps (n = 150). The
results of this assessment will serve as a basis for evaluating value
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scale and testing research model. Results evaluating the reliability
of the scale achieved from 0.684 to 0.901.
Scale of "The factors of attraction": Results EFA showed
NINE factors extracted with the total variance extracted is
63.927%> 50% (Gerbing & Anderson, 1988). However, in the
rotation matrix, with some variables lies in many factors

simultaneously, as well as lower weighted factors. Therefore,
these variables must be in turn removed. Particularly some
variable weighted factor of 0.4 to 0.5 was achieved can be
considered depending on the value retains its contents if it makes
sense in the present scale (Nguyen Dinh Tho, 2011 ). EFA final
results showed NINE factors deducted the total variance extracted
is 67.847%, which means that it explains 67.847% market data. In
terms of value scales, nine factors demonstrate the convergence
value and differentiate its value pretty well and almost reached
three quarters compared with the pattern coincident research.
Scale of “Attractiveness”: Results EFA showed that one factor
may deduct the total variance extracted is 59 185%> 50%. Despite
the larger number of samples (n = 721), the attractive even at
angles intention - behavior or psychological state perspective also
be a factor criticized. That means that the official investigation
results from market data showing no difference as content
expressed in the overview section theory and qualitative results in
chapter two. Therefore, the scale of the new attraction was named
the overall attraction (THTT).
4.4 Testing research model by model of multiple linear
regression (MLR)
The test results show that the correlation value Sig. are less
than 0.05. Therefore they are statistically significant. Also, the
relationship between the factors attracting nine of agents of
attraction are positively correlated with each other and quite tight.
Specifically, the correlation coefficient between THTT and
Management was the highest (0.608), followed respectively
Convenience (0.533), staff (0.533), Goods (0.519), Safe (0,500),
Program for customers (0.497), space (0.490), Advertising (0.423)
and position (0.400). Results will be used to step linear regression

analysis multiples. In this model, the coefficient of determination
Adjusted R Square (R2adj) is 0.488. This means that models
multiple linear regression was developed in accordance with the
data set to the extent of 48.8% or in other words, approximately
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48.8% of the variation of attractiveness may be explained by
differences of nine components, namely: Commodities, space,
staff, Safety, Advertising, Location, Convenience, Customer
Program and Management. The remaining 51.2% of the variation
is explained by other variables.
Overal Attraction = 0,557 + 0,133 Commodities + 0,053 Space
+ 0,085 Staff + 0,079 Safety + 0,020 Advertising + 0,105
Location + 0,096 Convenience + 0,060 Customer Program +
0,301 Management
The regression coefficients are positive factors demonstrate the
regression model positive influence on attracting customers to the
shopping center of commerce. However, of the nine components
of the attracting factors mentioned above, there are six
components achieved significance level Sig. 0.05 as statistically
significant. They are Commodities, Staff, Safety, Location,
Convenience and Management. Remaining space, Advertising and
Customer Programs (CTKH) with significance level greater than
0.05 so this relationship is not statistically significant. The
hypothesis H1, H3, H4, H6, H7, H9 accepted and H2, H5, H8
rejected. Continue remove three variables as Space, Advertising
and Customer Programs. The model was run with six variables in
the second time with Commodities, Staff, Safety, Location,
Convenience and Management. The result of the second time

(Appendix 20 - 2nd Regression) has changed slightly compared
with the one in the coefficient of determination Adjusted R
Square (R2adj),, namely R2adj = 0.485 and significant changes in the
coefficients regression (β) of six independent variables.
Overall Attraction = 0,607 + 0,161 Commodities + 0,098 Staff
+ 0,089 Safety + 0,109 Location + 0,120 Convenience + 0,332
Management
4.4.1 Analysis of multiple linear regression with moderator
variables
4.4.1.1 Far- Near matter
Calculate the distance of a near department stores is measured
through space criteria: Group 1 is the respondents chose answers
from 10km or less and 2 are respondents selected answers from
10km or more. Results showed that most respondents tend to
choose answers below 10km compared to where they came from.
This number reached over 721 616 people. The remaining 105 out
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of 721 people selected to go beyond 10km. Comparing three
linear regression model: (1) regression model overall appeal, (2)
regression model overall attractiveness, but only consider the case
of one group, (3) tissue regression overall attractiveness, but only
consider the case of two groups. Results showed that when
looking at the environment in the 10-kilometer distance, the linear
regression model building multiple matching datasets market
reached 62.8. The number of factors that have a statistically
significant (Sig. <0.05) makes the draw of each model is not the
same. The regression coefficient β not standardized, which also
changes but not many. Thus, we can conclude that the moderator

variables As far near plays an important role in attracting
customers to a department store. The department store far should
focus on factors such as the convenience and quality of
management. In other words are fun activities, eating, watching
movies, or how to organize operation of managers are essential in
attracting customers willing to travel long distances to get to a
department store. A common point of all three models is always
the variable appearance Management β coefficient is almost the
largest.
4.4.1.2 Demographic Characteristics
The features will be considered, including gender, age and
income. Statistical results showed that respondents were women
(70.3%). The remainder of men (29.7%). Under 30 with 422
people out of 721 people (58.5%). The proportion remaining
respondents aged over 30 (41.5%). Monthly income from under 5
million to 15 million with 490 people (68%), the remaining 231
who have a monthly income of over 15 million (32%).
Gender (Group 1: The respondents are South; Group 2: The
respondents are Women): Comparing three linear regression
models: (1) regression model for overall attraction, (2) regression
model overall attractiveness, but only consider the case of group
one, (3) tegression model overall attractiveness, but only consider
the case of group two. The results show consistent coefficient R2
differ between cases in which, R2 of the three is the highest case
0.540 compared to 0.495 and 0.412 of a case of two cases. The
number of significant factors are not the same statistics.
Specifically, the six elements of a model reduced to a model of
two and even three years of modeling. A big surprise is for men
almost nothing attracts them except for external factors. We can
16

say this is also very true to reality because they make fewer
shopping alone (22%), which mostly go with family (61.7%),
friends (56.5%) or lover (27.6%). While, for women, there are
many factors that attract them more, such as commodities, space,
location, convenience and manageability. A new point in
women's models is the presence of elements of space, meaning
that they are also interested in the atmosphere, beautiful views of
a department store. Finally, similar to the case of variable on farclose, a common point of all three models is always the presence
of Management variable with the greatest β.
Age (Group 1: Respondents aged under 30; Group 2:
respondents aged over 30 years): Comparing three linear
regression models: (1) regression model for overall attraction, (2)
regression model overall attractiveness, but only consider the case
of group one, (3) tegression model overall attractiveness, but only
consider the case of group two. The results show consistent
coefficient R2 differ between cases in which, R2 of the two cases is
the highest 0.528 versus 0.495 and 0.456 of a case of three cases.
The number of significant factors are not the same statistics.
Specifically, the six elements of a reduced model of the model
year and only two third of three models. We did find it interesting
that for those under 30 years of age, factors such as convenient
opening hours of the department store, the recreation activities in
which occupies the second position after management elements .
However, over 30 years old group more interested in merchandise
and location. Also, a common point of all three models is always
the presence of Management variable at the greatest coefficient β.
Income (Group 1: Respondents with incomes below 15 million
per month; Group 2: The respondents earning over 15 million per

month): Comparing three linear regression models: (1) regression
model for overall attraction, (2) regression model overall
attractiveness, but only consider the case of group one, (3)
tegression model overall attractiveness, but only consider the case
of group two. The results show consistent coefficient R2only
major changes between one case and three cases (0.495 versus
0.532). This shows that when considered in a new environment is
income, the linear regression model building fit multiple data sets
to a 53.2% market for those with monthly income from 15 million
or more. It is the object to which the department store regularly
addressed, the potential shoppers. A special thing of this group is
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that they only care about the three elements as Commodities,
Customer programs and Management. In addition, the common
point of all three models is always the presence of Management
variable at the greatest coefficient β.
4.5 Segment shoppers
Analytical results for K-Means (K = 3) under the principle of
seed clusters updated and changed during clustering shows two
clusters with the largest number (322 subjects, ~ 44.66% ),
followed by a cluster (247 subjects, ~ 34.26%) and cluster
numbers of at least three (152 subjects, ~ 21.08%).
Segment 1: Customers are pragmatic and demanding (n =
247): This group of customers rated capacity management and
administration of a department store, safety during shopping tour
and promotional programs. In particular, they love the department
store is located conveniently close to where they live. More than
half (126) of the selected segment of the department store under

five kolimet distance and only takes ten minutes to accept twenty
minutes to move to that alone (113). Each department store when
they usually go with my family (158), like food services at (201),
supermarkets (119) and household appliances (96). So their
average time in which is also quite long, from two hours to three
hours (114). The money spent for shopping between two million
and three million is the largest in this segment (31 versus 23 and
12 of the segment 2 segment 3). Most customer segments are
those from thirty years and above (101), married (118), working
(175), retired or homemakers (22). Income of customers in this
segment primarily under fifteen million per month (172).
However, there are also some people with very high monthly
income, more than forty-five million (10). The sex ratio of female
customers and male customers of this segment was 65% and 35%.
In addition, customers in this segment also appreciate the
convenience of a department store (mean = 6.47). They are more
interested in the food area, game area for kids and reasonable
arrangement elevators and escalators there.
Segment 2: The customers are relaxed and entertaining (n =
322): This is a customer segment with the largest number, the
subject most often take department store (accounting for 44.66%
of respondents) and merchandise is something that can attract
their strongest side management issues . They are willing to go
beyond 5 kilometers and accept leeway than twenty minutes to go
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to a shopping mall area. Each department store when they usually
go with friends (216), like food services at (253), cinema (161)
and buy clothes shopping (159). So their average time in which is

also quite long, from two hours to three hours (140), even over
three hours (46). However, their spending amounts usually below
one million (193). Most of this customer segment is young people
under thirty years of age (196), unmarried (183), the students (50)
or working (231), earning less than fifteen million each month
(219). However, there are also some people with very high
monthly income, more than forty-five million (9). The sex ratio of
female customers and male customers of this segment was 70%
and 30%. About goods, customers in this segment are very high
concern to the department store has many famous brands (mean =
5.54), diverse merchandise categories (5.52) and eye-catching
display (5.37). When shopping they prefer to pay by credit card
bank (6.00). Regarding the criteria of convenience, because
customers often go with friends to the food area is also where
indispensable so they can just enjoy the food while chatting
together. The variety of food stalls have a great influence to the
desire to stay in a department store of the customer (Wakerfield &
Baker, 1998).
Segment 3: Customers are enthusiasts but apathetic (n = 152):
This is the segment with the least number (accounting for 21.08%
of respondents). However, the third customer segment is very
similar to the second customer segment at several points: In terms
of the factors of the attractiveness, merchandise and management
of department stores are the two factors that affect the ability
attract them; Shopping behavior, customer segmentation is also
willing to go further and accept taking longer than segment one to
go to a shopping mall area. Each department store when they
usually go with friends (97), like food services at (108), movies
(83) and shopping for clothes (75). Their average time in which is
also quite long, from two hours to three hours (70). The amount

spent by them usually under one million (86); Regarding
demographic characteristics, the majority of this customer
segment is the youth under thirty years of age (90), unmarried
(84), the students (21) or working (109). The vast majority
(96.05%) of the segment customers with monthly income up to a
maximum of thirty million. Different points of third customer
segment compared to the first customer segment and the second
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is: The sex ratio of female customers and male customers of this
segment is quite varied, namely 80% and 20% , different from the
segment was 70% two - 30% and 65% one segment - 35%;
Management factors most strongly impact to attract them to the
regression coefficient β is very high (0.39) not considering the
regression coefficients of the other elements in the same segment,
but also with the regression coefficients of the elements belonging
to the first customer segment and the second segment; Advertising
factors not only affect them, but even reverse the regression
coefficient β less than 0; The degree of emphasis of the elements
that make up the center of attraction in their trade despite above
average but still lower than the level of all of the customer
evaluation of the first segment and the second segment two. We
can say they are quite indifferent customer group with the
attributes of a department store.
CHAPTER 5: CONCLUSIONS AND IMPLICATIONS OF
MANAGEMENT
5.1 New contributions of research
Regarding research methodology, this study contributes to the
characteristics of the measurement scale of factors of attraction

and the results of the attraction in the retail business in an
economy in transition like VN. Moreover, the system of this scale
can also be used as a basis to form the unified system scales in the
multinational study on the retail sector for the economy
transformation. On the results of the research, this study identified
the determinants of attracting customers of the shopping center
trade: the case Ho Chi Minh City. In particular, most notably
confirmed the quality management element of an operating
department store most important role in attracting customers (the
largest βQuanly) besides other common factors. This is the
difference and also the new point of this study compared with
previous studies. In addition, this study also built attraction scale
not only through intention and behavior of consumers as the
author before, but measurement in their psychological
perspective, namely the heat blood enthusiasm, the exuberant joy
or excitement excitement. This is also the DIFFERENCE of this
study. Finally, SPECIAL CONTRIBUTION point of this research
is already segment customers shopping at the department stores
into three different groups of customers according to their buying
behavior. These are (1) pragmatic and demanding customer, (2)
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relaxed and entertaining customer, (3) passion but apathetic
customer.
5.2 The implication for managers
5.2.1 Executive Quality Management
The difference among today's department stores is not only
attributed to spatial, architectural design or sale of goods but also
due to marketing programs, sales programs launched by the

department stores. The operation of center by administrators is the
utmost importance. It covers from the marketing to attract tenants’
booth (tenant), signing and monitoring contracts with them, to
organize cooperation programs, with their diverse events to entice
customers to shopping more and more frequent winter. Therefore,
managers should focus on quality management elements
operating. It will be the key to success in the fierce competition to
win customers on their side. This is also demonstrated by the
regression of this study when βquanly achieves maximum value
(0.332). To do so in a professional and creative, administrators
should closely from the selection, negotiation and management
activities input object is the stall holders (tenant) to meet, agree
meets the needs and pleasing objects output are its customers.
5.2.2 Diversity and updating of commodity
One of the reasons that customers return to the department
stores are the shopping needs even though they really are not sure
whether they will buy when they come there. We can see this by
observing when most customers have a habit of walking around
the booth. From there, impulsive buying behavior (impulse
buying) can occur. This is why managers need to pay attention to
the diversity of goods and updates. Goods sold shall be exhibited
beautiful, elegant, eye-catching, guaranteed origin, good quality,
there are many famous brands for customer thinks department
stores where elegance, class level and their belief in that is higher
than the supermarket or other store types. Regression coefficient
of this factor is second management element ((βhanghoa = 0.161).
The good grasp trends, customer preferences will help department
store can be a good commodity policy. From that will create
confidence, support, satisfaction, comfort when shopping, as well
as forming a thought in them that this is the best place to shop.

Administrators need to understand that the goods today not only
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meet the physical value of the consumers but also on moral values
and culture as well.
5.2.3 The more convenient for customers
Managers need to focus their attention on the convenience
factor for customers in the department stores. It means that they
are not just coming to buy physical products (clothes, shoes,
cosmetics, bags ...) but also consumer services (catering, event,
experience games, movies ...) Therefore, the administrator either
by manually deploy or combine with other partners to enrich these
services. The survey results show that customers often return
department store remains largely young, single or married, with
the average income fairly. Besides shopping reasons, they also see
a department store is the ideal place to entertain and gather their
friends. food court, game parks or cafes are what customers are
interested. Meanwhile, they have been satisfying the needs of
procurement, has been satisfying entertainment. The regression
coefficients of the third element after element management and
merchandise.
5.2.4 Location of department stores
Ho Chi Minh City has more and more people, the population
density is increasingly denser, increasingly heavier environmental
pollution, the higher and higher risk when moving outside... In
addition, the number of deaths each year for traffic accidents in
VN are very high, around 9,000 people, roughly the number of
deaths due to the war in a Middle Eastern country (Dinh La
Thang, 2015). Therefore, restricting travel by private vehicles off

the road are considered by many people. From anxiety, select a
department store to visit is always considered by many people at
its location, far or near, long or short ... Survey results of this
study showed very clearly their willingness to move to a favorable
department store is usually only 15 minutes to 20 minutes. Hence,
investors should note that this factor when selecting construction
sites. Near the city center, close to densely populated areas or near
downtown is what needs to be considered very meticulously,
scientifically and practically. Regression coefficient of factors
came fourth after factors of management, commodity and
convenience (βvitri=0.109).

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5.2.5 Quality of service staff at department store
Staff factor has weak linear regression relation (βnhanvien=0,098)
but the skills, attitudes, knowledge and behavior of staff of a
department store with great impact to customer’s feelings then, it
affects their intentions and behavior in the future and far beyond
the impact on the business performance of the department store at
aspects to attract customers. Therefore, coaching staff from
security, parking, cleaning staff to sales, customer care,
receptionist ... should be invested and maintained by the managers
regularly in order to improve services, strong competition with
other department stores, particularly the department stores which
are adjacent geographic with same customer segment.
5.2.6 The absolute safety for customers
Life today is too much risk of stalking as serious illness,
unknown disease, accident, theft, natural disasters ... so did people

become more concerned for the lives and well-being of himself.
Therefore, even a significant factor not the most one
(βantoan=0,089), the security to clients inside and outside the
department store also are mentioned. They always want to be safe,
or at least feel safe for their lives and property and those who
accompany them. They will be more secured when seeing the
security guards on duty, showing all the professionalism of
security matters through the camera system, fire alarm or wide
exits. All these things need to get the attention of investors to
build a department store and management of the operation while
operating a department store.
5.2.7 The other implications for managers
First, managers should focus to make a difference for your
department store, avoid customers feeling bored. Such as free WiFi system, stylish design and decoration, the way to choose the
color or the full and clear instructions to save time while
shopping. In parallel, other features outside the centers such as
signs, billboards, light should also be emphasized. The design
matches the tastes, habits of customers is essential because it will
create the friendly, close, comfortable and good impression to
visitors from which to make up their engagement. Second,
develop a variety of marketing programs but create an interaction
between consumers and retailers. Information technology is
growing strongly and quickly. The department stores can apply it
23