Factors affecting online shopping behavior on apparel products of mid-range fashion brands in Nanoi

Nội dung text: Factors affecting online shopping behavior on apparel products of mid-range fashion brands in Nanoi

1. FACTORS AFFECTING ONLINE SHOPPING BEHAVIOR ON APPAREL PRODUCTS OF MID-RANGE FASHION BRANDS IN HANOI Assoc. Prof. Nguyen Thuong Lang – Mai Duc Toan – Ly Phuong Anh Nguyen Duy Cuong – Ta Thi Thuy Nga – Tuong Thi Phuong Thao Abstract: The study discusses the factors affecting online shopping behavior apparel products of mid–range fashion brands of consumers in Hanoi city based on Theory of planned behavioral (TPB), Technology acceptance model (TAM) and Theory of perceived risk (TPR). The survey is sent to objects that investigate over the Internet and questionnaires live streaming. After 2 months of collecting results, a total of 346 valid survey votes are included in the analysis. The data is analyzed by the process from the reliability testing to the factor analysis, correlation analysis and regression analysis. The result shows that the brand value awareness is the strongest impact factor. In particular, perceived risk in the context of product and perceived risk in the context of online transaction has a negative effect on buying decisions. Keywords: mid–range fashion brand, online shopping behavior, perceived brand value, perceived risk, technology acceptance model. 1. THE RATIONALE OF THE STUDY According to the report from Vietnam E–commerce Association (VECOM, 2018), recently the online retail model has experienced strong growth and is one of several fields that have the largest growth rates with 35% in 2018. One of the most chosen products for online shopping is clothing, footwear, and cosmetics (The White Book, 2019). Up to 61% of people surveyed said that they used to participate in online shopping for clothes. According to the General Statistics Office of Vietnam, if in the 2008–2017 period, GRDP Hanoi achieved an average growth of 7.41%/ year, that of 2019 would increase by 7.62% with a scale of 971.7 trillion VND, Hanoi's annual revenue per capita is over 120 million VND. Increasing living standards leads to the demand for purchasing high–quality, valuable, and aesthetic products, especially fashion products. Consumers begin to select products with higher prices, better quality, diverse designs, names, and clear origins – apparel products of mid–range fashion brands. The change in shopping trends requires retailers to develop online sales channels to attract customers and identify factors that affect online shopping behavior to devise appropriate marketing programs. There are many abroad studies about online shopping intention or behaviors in general and clothing online shopping in particular, such as research of Kim & Lennon (2000); Kim Youn–Kyung et al. (2003); Hirst & Omar (2007); Napompech (2014); and Vietnam has some studies on the online shopping behavior: Nguyen Huynh Nhat Ha (2019), Le Kim Dung (2020). However, research on online shopping behavior for a specific item is relatively limited, especially for apparel products. Delafrooz et al. (2010) argued that online shopping still needed more thorough research in specific contexts in different countries. Consumers' shopping habits are remarkably influenced by the impact of 835
2. science and technology (Yửrỹk et al., 2011). Research on online shopping behaviors of consumers in Hanoi not only has a practical meaning but also contributes to and supplements the results of the previous researches. From the above reasons, the authors select the topic “Factors affecting online shopping behavior on apparel products of mid–range fashion brands in Hanoi” for researching. 2. OBJECTIVES The study evaluates factors affecting online shopping behavior on apparel products of mid–range fashion brands in Hanoi, proposes online business solutions to mid–range fashion brand enterprises in Hanoi. Specific objectives include: – Presenting the theoretical basis of online shopping behavior. – Proposing the theoretical model, testing the research hypothesis about factors affecting consumers' online shopping decisions. – Proposing orientations and solutions to promote online retailing of mid–range fashion brand enterprises in Hanoi by 2025. 3. THEORETICAL FOUNDATIONS AND RESEARCH HYPOTHESES Consumers’ behavior is the direct behavior of individuals involved in the recall, use, and disposal of goods and services (Engel et al., 1986). According to Schiffman et al. (1997), “Consumer behavior is a dynamic interaction of factors affecting perceptions, behaviors and the environment through which people change their lives”. The authors inherit appropriate variables from precede models in the research process: Perceived Behavioral Control (Ajzen, 1991); Perceived Usefulness (Fred Davis, 1985, 1989); Perceived Ease of Use (Fred Davis, 1985, 1989); Social Influence (Subjective Norms) (Ajzen, 1991). Besides, the proposed study model also combines the Theory of Perceived Risk (Bauer, 1960) and adds two factors: Online Shopping Experience and Perceived Brand Value. Previous studies changed the Subjective Norms into Social Influence such as Edwards & Eriksson (2014); Venkatesh et al. (2003) since it includes the Subjective Norms. Besides, these studies also show that Social Influence has a positive impact on the intention to buy online apparel. On that basis, the proposed hypothesis is: H1: Social Influence has a positive impact on online shopping behavior on apparel products of mid–range fashion brands. Perceived Behavioral Control is defined as an individual's perception of how easy or difficult it is to conduct a behavior (Ajzen, 1991). Perceived Behavioral Control describes consumers' ability to perceive the availability of the necessary resources, knowledge, skills, and opportunities to shopping online. If consumers perceive a high ability to control their behaviors, they will find it possible to well control their options and vice versa (Barkhi et al., 2008). On that basis, the proposed hypothesis is: H2: Perceived Behavioral Control has a positive impact on online shopping behavior on apparel products of mid–range fashion brands. Technology Acceptance Model (Davis, 1985) proves the degree to which a person believes that using a particular system would enhance his or her job performance. In other words, Perceived 836
3. Usefulness is a factor that helps consumers improve productivity in completing online shopping goals. On that basis, the proposed hypothesis is: H3: Perceived Usefulness has a positive impact on online shopping behavior on apparel products of mid–range fashion brands. Perceived Ease of Use is the degree to which a person believes that using a particular system would be free from effort (Davis, 1989). Innovative technology systems that are considered easier to use and less complex will be more likely to be accepted and used by potential users (Davis, 1989). A clear and multi–functional website design assists consumers to find, compare, and select products easily. On that basis, the proposed hypothesis is: H4: Perceived Ease of Use has a positive impact on online shopping behavior on apparel products of mid–range fashion brands. Bauer (1960) argues that Perceived Risk is a major factor in consumer behavior, influencing the transition from the web browser to the actual buyers, including two factors: Perceived risk in the context of products/services (PRP) and Perceived risk in the context of online transaction (PRT). When dealing online, customers may face risks related to confidentiality, security – authentication, non– repudiation, overall perceived risk on online transactions. All of which reduce consumers’ confidence in online shopping. On that basis, the proposed hypothesis is: H5: Perceived Risk has a negative impact on online shopping behavior on apparel products of mid–range fashion brands. Customers’ online shopping experience is related to skills and internet access time, knowledge of how to order, pay, buy, and sell on the website. It plays a key role in predicting whether they buy online or not. Therefore, those who already have an online shopping experience have a higher probability of re–buying, and the number of times and the number of purchases will increase in comparison with inexperienced ones. On that basis, the proposed hypothesis is: H6: Online Shopping Experience has a positive impact on online shopping behavior on apparel products of mid–range fashion brands. Perceived Brand Value is a psychological preference for famous brand goods (Sproles & Kendall, 1986; Zhang & Kim, 2013). As living standards continue to rise, consumers' brand perceived is further enhanced (Ahmed et al., 2013). Actual consumers tend to choose reputable brands. The product quality of the two brands are equivalent, however, the brand with more reputation will augment their customer satisfaction for the product (Veloutsou et al., 2004). In the e–commerce field, Perceived Brand Value is a major factor in consumption. On that basis, the proposed hypothesis is: H7: Perceived Brand Value has a positive impact on online shopping behavior on apparel products of mid–range fashion brands. 837
4. Picture 1. Proposed study model Social Influence H1+ Perceived Behavioral Control H2+ Perceived Usefulness H3+ Online H4+ Shopping Perceived Ease of Use Behavior H5- Perceived Risk H6+ H7+ Online Shopping Experience Perceived Brand Value Source: Authors (2020) 4. RESEARCH METHODS 4.1. Qualitative research Qualitative research aims to test the model and adjust the wording and style as well as add observed variables to suit the scope of the study. To achieve this goal, there are ten in–depth interviews in the form of semi–structured interviews with customers living and working in Hanoi, who are knowledgeable about fashion and have experience in online shopping apparel products of mid–range fashion brands. The results of qualitative research show that eight factors affecting online shopping behavior on apparel products of mid–range fashion brands are approved and no new factor is discovered. Besides, Online Shopping Experience is added to an observed variable, whereas other scales are accepted. 4.2. Quantitative research 4.2.1. Preliminary quantitative research Preliminary quantitative research is conducted by direct interviews with 30 people. They accepted the survey. 4.2.2. Research sample and data collection The survey is conducted in Hanoi in the first quarter of 2020. People surveyed are online shoppers having experiences on apparel products of mid–range fashion brands, mostly concentrate on the age of 18–45. The data are collected by online and direct surveys. After eliminating invalid votes, 346 questionnaires are officially included in the analysis. The sample has the following features: 838
5. Table 1: The features of research sample (n=346) Feature Numbers Ratio (%) Gender Male 131 37,9 Female 215 62,1 Age 18 – 25 170 49,1 26 – 30 109 31,5 31 – 35 48 13,9 35 – 40 11 3,2 > 40 8 2,3 Education Graduated from High school 143 41,3 Graduated from College 41 11,8 Graduated from University 142 41,0 Post–graduate 20 5,8 Income Under 10 million dong 206 59,6 Over 10 million dong 140 40,4 Source: Authors (2020) 4.2.3. Data analysis method Data are processed by SPSS version 22. Data from independent variables are analyzed through the following steps: reliability analysis (Cronbach's Alpha), Exploratory factor analysis EFA, correlation analysis, and linear regression analysis. 5. RESEARCH RESULTS 5.1. Reliability analysis (Cronbach's Alpha) All the scales have Cronbach’s Alpha greater than 0,6 and Corrected item – Total correlation values are over than 0,4; so no items were removed, the scales guaranteed reliability. 5.2. Exploratory factor analysis 5.2.1. Exploratory factor analysis for independent variables The results of EFA factor analysis for the scale of factors affecting online shopping behavior show that 7 factors are extracted at the Eigenvalue of 1,240 and extract variance is 69,728%. KMO coefficient = 0,852> 0,5 so EFA is suitable with the data. Besides, the Factor Loading> 0,5 so the observed variables are important and meaningful. Sig statistics. (Bartlett’s Test) = 0,000 <0,05 proves 839
6. that the observed variables are correlated with each other on the whole. However, after analysis, the 7 scales of the Perceived Risk converge into two different factors, so the authors decide to separate Perceived Risk into two new factors, namely Perceived Risk of Product and Perceived Risk of Online Transaction. Thus, the adjusted study model of independent variables consists of 8 factors with 33 observed variables. 5.2.2. Exploratory factor analysis for online shopping decision scale The results of EFA factor analysis for online shopping decision scale show that the four scales converge into one factor. KMO coefficient = 0,761> 0,5 so EFA is suitable for the data. Besides, the Factor Loading is bigger than 0,5, so the observed variables are important in the factors and all have practical significance. Sig statistics. (Bartlett’s Test) = 0,000 <0,05 proves that the observed variables are correlated with each other on the whole. 5.2.3. Adjusted study model Picture 2. Adjusted study model Social Influence Perceived Behavioral Control H1 H2 ((((++ Perceived Usefulness H3+ + Perceived Ease of Use H4 Online + Shopping H5 Perceived Risk of Products - Behavior H6 Perceived Risk of Online Transaction - H7 + H8 Online Shopping Experience + Perceived Brand Value Source: Authors (2020) 5.3. Correlation analysis All Pearson coefficients between variables ranged from –0,551 to 0,548, shows that the relationship between dependent variables and independent variables is statistically significant (Sig. <0,05). On the other hand, the magnitude of the correlation coefficients ensures no multi–collinearity. Thus, other statistics can be use to test the relationship between variables. 5.4. Regression analysis Results of regression analysis show that standardized Beta coefficients of 8 independent variables are: Social Influence (0,092), Perceived Behavioral Control (0,104), Perceived Usefulness (0,248), 840
7. Perceived Ease of Use (0,198), Perceived Risk of Products (–0,193), Perceived Risk of Online Transaction (–0,114), Online Shopping Experience (0,174), and Perceived Brand Value has the strongest impact (0,268). Besides, adjusted is 67.9%, indicating that 67.9% of online shopping decision is explained by 8 independent variables. With significance levels smaller than 0.05, all hypothesis are accepted. 6. CONCLUSIONS AND PROPOSALS The results of the study found that eight factors affect the online shopping behavior on apparel products of mid–range fashion brands, the most powerful of which is the Perceived Brand Value. This proves that fashion customers are mostly interested in brands as they can help them to prove and locate themselves. The study shows the potential of online apparel enterprises of mid–range fashion brands because consumers’ choice is gradually inclined to this segment. Simultaneously, the research points out that the trend of traditional stores is the place to experience space, brands, and shopping services; meanwhile websites and applications are the main shopping places owing to various incentives and other utilities. However, there are some outstanding issues in the online shopping process such as product risks when receiving goods, inappropriate reviews from previous purchasing customers, or virtual account reviews, rampant and unrealistic promotional information. In order to raise customers' perceived brand value, enterprises need to enhance the building and promotion of their brands through exploiting the influence of entertainment celebrities for the brand ambassador position. Simultaneously, businesses should choose Vietnamese models to take advantage of their similarities in physique and divine. Regardless of the risks, providing thorough information and true advertising images of the products; strengthening policy, aftermarket, and warranty; developing professional consultant teams is of paramount importance. Enterprises should link with reputable banks, together with building a highly–secured payment system. For Ease of Use, the design interface needs to be convenient for product search, order, payment, etc by reasonably arranging products, having filter mode based on certain criteria; moreover, the highlight products should be prioritized in the first position on the search toolbar to stimulate customer’s curiosity. Furthermore, it is required to regularly update the remaining merchandise and add "cart" for customers to save their favorite products or relocate the viewed products. 7. CONTRIBUTIONS Theoretically, the study identifies factors affecting online shopping behavior on apparel products of mid–range fashion brands in Hanoi. Otherwise, the authors add two factors affecting consumers' online shopping decisions: Online Shopping Experience and Perceived Brand Value. Besides, the study develops some scales to match the research context in Hanoi. This can help mid–range fashion brand enterprises properly orient ways to reach online customers. Practically, the study has useful implications for enterprises in the field of online retailing of fashion apparel products. With the results of the analysis, the study offers a number of proposes and solutions for researchers, State agencies, online retailing marketers in general and online retailing of mid–range fashion enterprises in particular so as to improve limitations, develop solutions, business strategies with a view to meet the mass demands of people; promote the role of control, assistance and 841
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