Factors Influencing Young People's Purchase Intention in HCM City On Shopee
Factors Influencing Young People's Purchase Intention in HCM City On Shopee
Along with digital technology that is constantly developing today, online shopping is
increasingly popular and promises to be a vibrant market and bring high revenue for
businesses selling goods. With the desire to deeply analyze the factors affecting the
purchasing behavior of customers, the author has studied the purchasing behavior of young
customers living in HCMC. This study focuses on measuring the factors affecting the online
shopping behavior of young people in Ho Chi Minh City. Based on qualitative and
quantitative research methods, refer to and adjust relevant theories to come up with an
appropriate research model to assess the impact of factors on the online shopping intention
of young people. Research results with a sample size of 150 young people in Ho Chi Minh
City show that there are 7 important factors affecting students' online purchasing behavior :
(1) Attitude towards online shopping; (2) Buying impulse; (3) Subjective norms; (4) Self-
efficacy in online stores; (5) Perceived behavioral control; (6) Compatibility with online
shopping; (7) Personal Innovation in IT, Compatibility with online shopping From there, the
authors provide administrative implications for businesses to refer to come up with business
and marketing strategies for online sales, while simultaneously improving young people’s
online shopping behavior pellets.
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Introduction
Since the development of technology in recent years, industry and machines are also
gradually becoming more modern, and human needs are therefore increasing. E-commerce
has become an essential need of retailers around the world. Modern life has helped
customers have a much more convenient and convenient online shopping experience.
With the current development, the Internet has become an important part of the shopping
activities of many consumers. Information technology has been widely applied by people in
many entertainment jobs around the world, including global economic activities and online
shopping, also known as online shopping, has become a popular and growing shopping
method in the world (Ramachandran et al., 2011).
Shopee saw a notable surge in growth in 2021, with 40 million new digital users in
Southeast Asia. First-time Shopee customers place one out of every six orders in the region.
With about 73% of the total sales of 4 floors, or roughly 91 trillion, Shopee is currently the
most popular e-commerce platform in Vietnam, according to the Metric research on the e-
commerce market in 2022. Shopee held the biggest market share in Vietnam from November
2021 to May 2022, with sales reaching 43,118 billion VND (72% market share).
According to statistics of VNETWORK as an information technology company in 2020,
there are currently 68.17 million people using internet services in Vietnam, in January 2020.
From 2019 to 2020, Vietnam's overall population using Internet-related services grew by
around 6.2 million (+10.0%). Furthermore, as of January 2020, the percentage of
Vietnamese people who utilize the Internet as a whole is 70% (Vnetwork. vn, 2020). Online
purchasing systems are becoming more and more diversified, so transaction activities are
gradually attracting and heating up day by day, the system is upgraded and improved to
expand the scale and quality of products. Products. Especially young people (students,
students...) nowadays always prefer this type of online shopping. Because young people are
always the pioneers in grasping and quickly understanding new types of technology.
Therefore, this is an opportunity for businesses in the field of online shopping. Users have
connected and interacted with their favorite vendors on Shopee Live for over 37 million
hours, including Shopee company in 2022, to learn more about the products they are
interested in before placing an order. Numbers are also becoming more proactive when
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shopping online. Additionally, as Vietnamese consumers become more adept at using digital
services, the market for online shopping will continue to expand in 2023. Young people are
becoming the primary demographic of digital users due to the rise in the use of digital
consumer services in tiny provinces. Those between the ages of 18 and 34 make up the most
active user base. As previously mentioned, consumers in this group place 1.5 times as many
orders as the typical Shopee user in 2022. From that, the author has identified the target
customer group. Therefore, the author has chosen and researched the topic "Factors
influencing young people's purchase intention on Shopee in Ho Chi Minh City".
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II.Literature Review
2.1 The concept of consumer behavior
Peter D. Bennet (1988), "Consumer behavior is the behavior that consumers show in
searching, buying, using, evaluating prices of products and services that they expect will
satisfy their individual needs”. Lamb et al. (2000), “consumer behavior is a process that
describes the way in which consumers make decisions about the selection and abandonment
of a product or service”. Philip Kotler (2000) consumer behavior is defined as: “Customer
behavior is the specific behavior of an individual when making decisions to purchase, use
and dispose of a product or service”. Therefore, a consumer's actions, reactions, and
thoughts during a purchase are collectively referred to as consumer behavior. This behavior
begins when the consumer feels compelled to take action after making a purchase. It is
referred to as the customer buy decision process. Definitions of consumer behavior typically
focus on the elements of the consumer's decision-making process: awareness, information
search, buy evaluation, purchase, and post-purchase response. clients, as well as how that
process interacts with other factors that affect it both directly and indirectly.
2.2 Hypotheses development
2.2.1. Attitude toward online shopping (ATT)
An attitude is a person's feelings, actions, or perceptions of a situation or object. In their
book "Marketing Management 14th edition," Kotler and Keller also demonstrate how
attitude influences how much individuals like or despise an object, which in turn influences
how they interact with or avoid it. Attitude toward action has a significant and positive
impact on intention to act. Attitudes are characterized as customers' ideas and opinions
regarding the use of social commerce, and they have an impact on the impulsive purchases
made by young people through this platform.
Attitudes can be influenced when psychological needs are satisfied, despite the fact that they
are hard to alter because they are taught and developed over time. (Cao and Lin, 2014)
Inspiration. More precisely, attitudes evolve throughout time as people learn more about the
idea or object they are assessing (Shaouf et al., 2016). (Allport, 1935) asserted that attitude
plays an important role in determining one's tendencies and that it positively influences
behavior. According to (Fishbein, Ajzen, 1977), it is the degree to which a person rates a
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behavior positively or negatively. According to research by Andrews and Bianchi (2013), in
this study, attitude is understood as consumers' evaluation of shopping at online retailers.
According to TRA, attitude toward a certain activity determines intentions: One is more
likely to intend to engage in something if they have a good attitude toward it (Amaro,
Duarate, 2015). If customer reviews for online purchase are favorable, it is therefore
anticipated that customers’ desire to make purchases from online retailers will rise. As a
result, the second research hypothesis is advanced, and the impact of culture on moderation
is also examined.
H1. One's perspective about e-commerce has a favorable influence on the urge to make an
online purchase.
2.2.2 Buying impulse (BI)
Impulse purchase is part of a larger psychological purpose, such as self-regulatory behavior.
Individuals with a strong tendency for impulsive buying tend to purchase items that catch
their eye without further consideration. Individuals are unconcerned with owning or
purchasing identical items (Verplanken, Sato, 2011). According to (O'Cass & Fenech ,
2003), TV information is e-commerce's forerunner (Donthu, Gilliland, 1996) found that
impulsivity was one of the key distinctions between viewers of TV infomercials and those
who did not. Users of the infomercial channel had greater levels of impulsivity than non-
users, with the purchase urge being IT acceptance. It is presently expected that the inclusion
of buying impulse in this research model's proposal will theoretically advance the study of
consumer behavior, especially the adoption of new technology to support spending habits.
Impulse purchases could have more pleasurable components than rational ones (Rook,
1987). Following this line of reasoning, this research defines the term "buying impulse" and
makes the following hypothesis regarding how it will affect consumers' online purchase
behavior.
H2. Impulsive purchases have an active influence on the propensity to shop online.
2.2.3 Subjective norms (SN)
Subjective norms due to people's perceptions of what to do and shouldn't do correspond to
possible rewards or punishments for performing the buying behavior, based on the research
by (Kim et al, 2013), the subjective norm identified in this study is the motivation of
consumers receive from family, friends, and coworkers to make online purchase. (Sandve
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and Øgaard, 2014), according to Schepers and Wetzels (2007), people are more concerned
with their propensity to behave as their role models want them to... Studies on factors
influencing individuals to make online purchases are limited (Andrews, Bianchi, 2013);
however, studies like (Nor, Peasron, 2008) show that friends', families, and coworkers'
subjective standards have a favorable impact on online shopping. It has been suggested that
consumers' intent to make online purchases will be stronger if they think their peers will
support them. According to Schepers and Wetzels (2007), subjective norms assume that
consumers’ behavioral intentions result from real or imagined social constraints; people who
believe in the significance of subjective norms are more likely to act as their peers would
like them to. People in collectivist societies are consequently expected to exhibit greater
subjective norms than in individuals’ cultures in order to fit in (Choi et al, Geistfeld, 2004).
H3. Subjective norm positively affects the propensity to make an online purchase
2.2.4 Self-efficacy in online stores (SE)
Bandura (1986) defines self-efficacy as an individual's self-assessment of their ability to
organize and take necessary actions to achieve expected results. In subsequent research,
Bandura (1991) pointed out how effective a person has confidence in their behavior, as well
as the choices, calculations, and expectations they make when facing difficulties and
challenges in the process of action, to provide the necessary effort and perseverance When
taking specific actions, personal ability should be considered as one of the decisive factors
affecting personal thinking and external environmental calculations. In e-commerce, the self-
efficacy of online factors plays the most important role in influencing trust and intention in
online purchases (Kim et al, 2013). The powerful direct impact on user trust when using
mobile applications for transactions also proves the role of self-efficacy.
H4. The effect of self-efficacy in online stores on online purchase intention.
2.2.5 Perceived behavioral control (PBC)
Perceived behavioral control (PBC), a new construct added to the theory of planned behavior
(TPB), is established as the factor that distinguishes between intentions and actual behavior
(Ajzen, 2002). Consequently, a person with no one who has power over a problem may not
want to get involved in it. The degree of control a customer feels they have over external
factors when completing an online purchase is known as PBC (Amaro & Duarate, 2015). E-
commerce may represent a sense of losing control of the situation because of the
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unpredictable nature of the intangible environment. (Dabholkar, Sheng, 2009). Answering is
thus a crucial component that needs to be looked upon.
H5 in this study is perceived control. EOU of online shops influences opinions of e-
commerce
favorably
2.2.6 Compatibility with online shopping (CWOS)
When describing compatibility with online purchase, (Vijayasarathy, 2004) defined it as
“the extent to which a consumer believes that shopping online fits/ matches his/her lifestyle,
needs and shopping preference” (p.750). Due to the same type of technology being
researched in this work, the definition from (Vijayasarathy, 2004) has been accepted.
According to (Amaro & Duarate, 2015), because it is expected that customers will find it
easier to take action if they find that the online purchase does not conflict with their interests
and tastes, compatibility with e-commerce has a direct impact and a substantial association
with behavior intentions in an online environment.
According to (Vijayasarathy, 2004), Depending on current values, compatibility with online
purchases will vary. Because culture has been defined as the set of values and symbols that a
group of people shares, among other factors, it can be argued that compatibility with online
purchase may differ based on the values of each cross-cultural study sample. However, the
relationship between online shopping compatibility and desire to make an online purchase
varies significantly between the categories. Compatibility will be examined in this study as a
factor influencing the intention to purchase online in accordance with the following
hypothesis.
H6. Compatibility with online shopping has positively affected online purchase intention.
H1+
==+
H2+
H3+
Online purchase
Intention
H5+
H6+
H7+
5
Attitude
Buying impulse
III.Research methodology
3.1 Target population
Subjective norms
The subjects of this study are young people in Ho Chi Minh City, where the
H4+
country's largeSelf-Efficacy
human resources are concentrated. In Ho Chi Minh City, there
are 53 universities and 49 colleges, accounting for 22.17% of the country (there are 460
PBC
universities and colleges in the country - including 224 universities and 236 colleges). where
more than 70% of domestic enterprises are located. This is the "cradle" to training and
Compatibility
developing human resources for the city, the region, and the country. However, the number
PIIT
of respondents is not uniform in terms of age, income, and gender…… So, this study uses a
non-probability sampling method.
3.2 Measures, questionnaire design, and data collection
Since the survey provides research data based on real-world observation, data for this study
is being collected via a Google Form, it becomes more suitable than other types of survey in
researching “Factors influencing young people's purchase intention on Shopee in Ho Chi
Minh City” (Pena García et al., 2020) All questionnaire items were revised and updated from
previous research based on the results of an extensive literature review to ensure content
validity. After then, a group of professionals assesses the chosen things to confirm their
accuracy. Initially, the survey was translated into Vietnamese after the questionnaire was
altered from earlier English-language study. As follows: Personal Innovation in IT(PIIT) is
adopted from (Pena García et al., 2020). Self-efficacy (SE) is adopted from (Pena García et
al., 2020) and Buying Impulse (BI) is adopted from (Pena García et al., 2020). The term
attitude (ATT) is taken from (Pena García et al., 2020), the term “Subjective norms” (SN) is
used from (Pena García et al., 2020),. Compatibility (COWS) is adopted from (Pena García
et al., 2020).,Online Purchase intention (OPI) is taken from (Pena García et al., 2020),.
Furthermore, the 5-point Likert scale was chosen to measure because of its advantages,
including the dispersion increase and the neutral- response decrease; the range from (1)
strongly disagree to (5) strongly agree. As a result, the minimum sample size required is 10
× 8 = 80. On the other hand, according to the statistical software G*Power version 3.1, for
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an effect size, f2 = 0.15, probability of error, α = 0.05 and power level, (1- β) = 0.80 and the
number of predictors = 11, a minimum sample size of is 123 recommended.
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research have found that a scale is considered good when the Cronbach's Alpha index falls
between 0.8 and almost 1 (Nunnally and Bernstein, 1994). A useful range for the Cronbach
Alpha index is 0.7 to 0.8 (Peterson, 1994). As a result, we draw the conclusion that the
following suggested scales satisfy the requirements and are statistically significant: ATT,
BI,SN,SE, PBC, SWOS, PIIT, and OPI. All of the observed variables' correlation
coefficients are larger than or equal to 0.479, according to the findings of the Cronbach's
Alpha analysit. Cronbach's Alpha scale reliability coefficient of ATT, BI, SN, SE, PBC,
CWOS, PIIT, OPI >0.6 and all observed variables correlation - total Corrected Item - Total
Correlation) >0.3
Table 2. Dependent variable & Independent variable
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PIIT4
Independent variables
1 Online purchase 1 OPI 1 0
Intention OPI2
Component
1 2 3 4 5 6
ATT2 .830
ATT3 .817
ATT1 .779
CWOS4 .680
CWOS1 .629
CWOS3 .535
OPI1 .532
SN2 .735
SN3 .727
SN1 .706
PIIT3 .639
CWOS2 .554
OPI2 .543
SE2 .810
SE3 .806
SE4 .778
SE1 .736
SE5 .526
SE6 .513
BI3 .903
BI2 .873
BI4 .861
BI1 .776
PIIT4 .869
PIIT1 .815
PBC2 .811
PBC3 .762
PBC1 .522
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Test results show: (1) KMO = 0.913 > 0.5 and (2) sig Bartlett's Test = < 0.000 > 0.05. Thus,
good kernel analysis to explore EFA is appropriate
Hair et al. (2010), Multivariate Data Analysis, excellent quality observed variable has a
factor loading of 0.5; the minimum should be 0.3.
Factor Loading at ± 0.3: The bare minimum required to preserve the observed variable.
•Factor Loading at ± 0.5: There is strong statistical significance in the observed variable.
•Factor Loading at ± 0.7: The statistical significance of the observed variable is excellent.
The test results show that: There are 8 factors extracted based on the Eigenvalue criterion
greater than 1. Thus, these 3 factors best summarize the information of the 28 variables
included in the EFA. The total variance of these 8 factors is 75.668% > 50%. Thus, the 8
extracted factors explain 75.668% of the data variation of the 28 variables observed in the
EFA.
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Table 4. Correlations
CWO
OPI ATT S SN SE BI
OPI Pearson 1 .664** .741** .602** .595** .308**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000
N 160 160 160 160 160 160
ATT Pearson .664** 1 .766** .587** .600** .379**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000
N 160 160 160 160 160 160
CW Pearson .741** .766** 1 .734** .696** .473**
OS Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000
N 160 160 160 160 160 160
SN Pearson .602** .587** .734** 1 .571** .527**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000
N 160 160 160 160 160 160
SE Pearson .595** .600** .696** .571** 1 .344**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000
N 160 160 160 160 160 160
BI Pearson .308** .379** .473** .527** .344** 1
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000
N 160 160 160 160 160 160
PIIT Pearson .624** .492** .600** .632** .552** .511**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 160 160 160 160 160 160
PBC Pearson .552** .620** .660** .570** .630** .321**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 160 160 160 160 160 160
It is possible that two independent variables are essentially one variable or one concept if
there is a very significant connection between them. There is virtually little chance of
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collinearity between two independent variables if there is no correlation between them (sig
larger than 0.05). The likelihood of collinearity between two independent variables is rather
high if they are correlated (sig less than 0.05) and the correlation coefficient's absolute value
is higher than 0.7 (Carsten F. Dormann et al., 2013). According to the analysis results: OPI,
ATT, CWOS, SN, SE, BI, PIIT, PBC all sig < 0.05
Table 5 .Coefficientsa
Standardiz
ed Collineari
Unstandardized Coefficien ty
Coefficients ts Statistics
Std.
Model B Error Beta t Sig. VIF
1 (Consta .334 .244 1.36
.174
nt) 5
ATT .180 .072 .197 2.51 .013 .388 2.581
5
CWOS .394 .096 .407 4.12 .000 .245 4.080
0
SN .033 .065 .040 .504 .615 .377 2.654
SE .037 .070 .039 .523 .602 .439 2.280
BI -.105 .040 -.158 - .009 .661 1.512
2.63
6
PIIT .328 .075 .304 4.40 .000 .502 1.991
1
PBC .031 .074 .030 .425 .671 .477 2.096
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Sig > 0.05: Adopt the HO hypothesis, which states that the variable Xi has no effect on the
dependent variable and that its regression coefficient is statistically significantly equal to 0.
H2 Supported
Buying impulse ( BI) Online purchase intention
H3 Unsupported
Subjective norms (SN) Online purchase intention
H4 Unsupported
Self-efficacy in online stores (SE) Online purchase intention
H5 Unsupported
Perceived behavioral control Online purchase intention
H6 Supported
Compatibility with online shopping (COWS) Online purchase intenti
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Conclusion
This study aims to provide a better picture of the variables that influence the purchase
intention on shoppe of young people in Ho Chi Minh City. Specifically, purchase intention
is based on factors such as: Attitude towards online shopping, buying impulse, Subjective
norms, Self-efficacy in online stores, perceived behavioral control, Compatibility with
online shopping, Personal Innovation in IT. Based on the proposed model of the relationship
between the constructs, the statistical results support most of the proposed hypotheses.
Therefore, this study is very useful in clarifying the intention to buy on the shopee floor of
young people and it can pave the way for future research on this topic. There are the
following factors affecting the intention to buy: Attitude towards online shopping (ATT)
shows the convenience of online shopping, for young people and working people who do not
have much time, ordering online creates speed and convenience. Therefore, shoppe is a large
trading floor with almost all items and reasonable prices. In addition, shoppe is a large and
reputable trading site, so it receives the trust of most young people. For Buying impulse (BI),
when we see the factors on the shopee floor such as: prepaid service, mid-month
discount, .... Creating a feeling of excitement for customers to buy even though the need to
use is not necessary, this factor has affected the intention to buy of young people. In
addition, the Compatibility with online shopping (COWS) factor, the suitability and ability
to meet customer needs with affordable, diverse, easy-to-choose and easy-to-use items, helps
this factor impact customers' purchasing intentions. Finally, Personal Innovation in IT (PIIT)
accesses modern technologies, methods applied when purchasing to enjoy preferential
benefits. In addition, for businesses operating only in the electronic market, the website is
their only means of promotion and the quality of the website and app is extremely important.
Therefore, companies should exploit the navigation, usability and design of the website to
increase customer trust. At the same time, creating a secure system and reliable payment
mechanism to reduce the risk of online shopping is essential for online retailers. In addition,
this study measures the intention of shopping behavior on Shopee of young people in Ho Chi
Minh City. It should focus on surveying the 18–30-year-olds.
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Factor Items
Buying I'm the "I buy it when I see it. " kind of person. (Pena García
Impulse (BI) et al., 2020)
"Buy now, think later" sums up who I am.
Self-efficacy I could search the Web on my own to find online retailers. (Pena García
(SE) et al., 2020)
Within the following 30 days, I could purchase something from an
internet store if I wanted to.
I'm sure I could purchase something in the upcoming 30 days from an
internet retailer if I wanted to.
Online retail shopping is appealing
Subjective People who have influence over me advise me to shop online (Pena García
norms (SN) et al., 2020)
People whose opinions I value prefer that I purchase from online
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retailers
I would be able to shop online using the Internet.
Perceived
control I have full control over whether I use the Internet to make purchases
behavior (Pena García
(PCB) I have the means, expertise, and understanding necessary to make an et al., 2020)
online transaction.
Shopping online would be convenient for all facets of my life
I can foretell future purchases I should make from an internet retailer. (Pena García
et al., 2020)
I will probably soon make a purchase from an internet business.
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