STUDY OF FOREIGN BRANDED DAIRY PRODUCTS

DM VIETNAM
Nguyen Hai Ninh'

Abstract
In Vietnam. Ihe revenue of foreign branded dairy product counts for V, of total
revenue ofthe dairy markei (around 200 million USD/year). However, it is noticeable
that most daily market share in Vietnam is now belonging to foreign enterprises P0%
ofthe whole market). This image of market share has been existed for several years
Therefore, this research aims at understanding Ihe satisfaction level, the consumption
trend and finding testing the factors that influence consumers' choice of foreign
branded dairy products Research applied the convenient sampling method with 198
sampling units who are experienced customers with foreign branded dairy products
The collected dala was cleaned and analyzed by staislical sofiwware SPSS 20, The final
results showed ihat the Vietnamese consumers have posiiive behavior towards foreign
branded dairy products and Iheir behavior are affected by some key factors as:
customers' satisfaction, trust and experience of customers Besides the customers'
satisfaction was determined by branding strategy, country of origin and advertising

Keywords: consumer behavior, customer salisfaction, dairy products, foreign

brantied products,
I. Overview of Research
Widl die total population of over 90 million and die increment of income per
capita, die demand for food and healdi products are constandy increasing in recent years
(about 20%) (Viemam Dairy Association, 2015). Datty products are becoming die most
regular dishes in diet of eveiy Viemamese family. Hence, Vietnam is die potential
market for dairy products, hi 2014, it is stated diat each Viemamese people consumes
abom 16 kg of milk per year, comparing to only 0.47 kg in 1990 (Do, 2015). Marketing
• Nguyen Hai Ninh, PhD, Hanoi Foreign Trade University.
BnsinKses

24H (2013) stated that while the domestic firms hold over 80% of n i ^ e t share, fffipj
milk (equivalents to 1 billion US Dollar), the situation is completely oppo^te
foreign branded dairy products (Gafm, 2014).
Cunwitly, according to (Bizlive, 2014); tiieis arembbut'3Q ente^3^Sds-from
domestic and foreign competing for the m^ket ^lare of dairy producte. It is coi
for a quarter of total revenue in the dairy industry; in 2012, the revenue of poi
milk market was 2,359 billion VND, it increased at 2,800 billion VND in 2013, ani
expected to excess 4,800 billion VND in 2017. Foreign branded dairy product coi
of both imported brands (Nan, Meiji, Galiia..) and the local - based foreign 5]
(Nestle, Mead Johnson, Dutch Lady..). According to statistic date^pubHshed by Mmisdy
of Industry and Trade (2012), 70% ofthe market shares are held by foreign enterpmesj
with big brand names such as: Abbott, Mead Johnson, Dutbh Lady, Dumex, Nestifi,
Meiji, XO,... The outstanding domestic brand iKimes - Vinamilk holds 24.6% of total
market share for dairy products. However, it is noticeable that nearly 70% of dairy '
jwoducing materials of Vinamilk are imported, due to the shortage of domestic supplies ^
so it is quite correct when conclude that: "foreign brands dominate the Vietnamese dany 1 ! !
market . t

The actual market situation leads to die need of an empirical r^eafch f b t t ^ ^ ^

on testing the satisfaction level and acmal behavior of customers tovrards foira^M '
branded dairy products in Viemam market. Hence, it would be a valuable s o u r c e ^ ' ^
dairy companies to have a clearer and precise view on customers' ojHnion, attitude aCd
behavior. On that basis, the research would like to provide firms' orientation to approach tj ' '
and satisfy their customers in the most effective and Scientific way. ' " . I "
2. Theoretical Framework '^
Consumer behavior or so-called consumer purchasing beHaVicrf is sucfi'a ; : :
complex research field but it helps to identify and predict the attitudes, actions #•
reactions of consumers. By understanding those elements^ managers could make^i^ttB, ,
build and change strategy to have the most efficient and effective buSness p f a f o n u a g ^ 11
in tenn of defining what is "consumer behavior", theorists and researehers h a v e t l ^ ^ '• '•
different defmitions about it. ' .^^ ':'.'.

i
 ^^^y^ff^r^'S" Branded Dairy Products in Vietnam

Schiffinan ef A (200») defined consumer behavior as "TTie behavior that

consumers display in searching-for, purchasing using evaluating, and disposing of
products and services Ihat they-^cpecl WiU satisfy Iheir needs ".

From the more detailed perspective, Kotler and Keller (200fi) considered ttie
study of consumer behavior is 'The study of individuals, groups, or organizations and
the processes they use to select, secure, and dispose of products, services, experiences,
orideas to satisfy needs and the impacts that these processes have on the consumer and
soeiety". According to die two authors, consumer behavior is die actual actions of
consmner before, between and afier dieir consmnption; it is die process of evaluating,
selecting, purchasing and disposmg of goods and services. The behavior of consumer
may change dues to the change in dieir demands and willingness to buy, or in ottier
word we can say consumer behavior depends on consumer attimde.

However, die study of consumer behavior is not limited in researching of a

single act which is performed during die consumption period, it is broaden into die
study of attimde. Therefore, in ttus research, die auttior will focus on finding botti the
trend of consumer attitude, particularly customer satisftction and consumer behavior of
Viemamese customers towards die foreign branded dairy products.
The research of Nagyova et al. (1998) indicates 8 mam factors being used to
predict die purchasmg of dairy product: taste, healdi, habit, availability, wide utilization
in household, gender, brand, quality, price, package and advertisemem... Moreover, die
resuh of Kresic et al. (2010) stated diat consmner's behavior and motive for selection of
dairy beverages mosdy affected by sensory appeal, brand, origin, healdi aspects and
weight conti-ol. Besides, Bonaventure and Umberger (2012) added die location, label
information to die group of dairy purchasing behavior' influence factois. Especially, die
research done by Tuan et al. (2013) witti group of consumer in ttie soudiem cities of
Viemam reveals die fact diat the consumers are influenced by brand, advertisement,
country of origin and income when decide to purchase dairy products. Besides, Minh
(2015) proved that customer satisfaction towards fresh milk for babies is deteimined by
promotion, distiibution, and advertising and the nutrition.

After reviewing these above research models and comparing to die real situation
of dairy industry in Vietnam, die audior buih a new research model of factor affecting
consmners- behavior towaids foreign branded dairy products in Vietiiam. Reseaich
model is formed of two parts. The first part indicates die relationship between customer

53
satis&ction and 7 different factors which are (1) Btand awareness, (2) Coinitiy5(|
origm. (3) Price. (4) Nmrition. (5) Taste, (6) Promotion and (7) Disttiimtion. The s
part is die assumption ttiat (8) Trust. (9) Experience and (10) Customer satis&ction havs
impact on die behavior of consumers in choosing foreign branded dairy products.
The demographic variables including age. gender, occupation and die number, of
family members also are considered as the control variables ofthe research model.
Figure 1: Suggested Research Model

Btand Awareness

Customers' behavior
Customer satisfaction

Distribution! Demographicai variables

Whereas:
- Brand awareness: Accordmg to American Marketing Association (AMA). brand
awareness is a marketing concept diat "enables marketers to quantify levels and trends
in consumer knowledge and awareness of a brand's existence". K is the degree to which
consumers con-ecUy associate die brand widi die specific product or service, hi die
short-tenn concept, biand awareness is die primary goal of all promotion stiategies. It is
very importance to have a brand identity in consumers' memory, so Uiat ttiey can
recognize a particular product in different conditions. Moreover, by die findings of Ninh
(2015), brand awareness has positive influence on the customer satisfaction witti baby's
fresh milk. Hence, the first hypottiesis of research is:
HI. Brand awareness positively influence on customer satisfaction.
 j j g j y of Foreign Branded Dairy Products in Vietnam

- Countiy of origin: According to Johansson et al. (1985), smdies in industrial

purchasing have found eountiy of origm to be a saliem cue in buyem' perceptions of
quality. Countiy of origin is die extemal signal to generally evaluate die mtemal value
ofa product. The second hypodiesis is:
"^: Country of origin offoreign branded dairy products positively influence on
customer satisfaction.

- Price: Kodcr (2012) defmed thm -Price is the amount of money customers must pay to
obtain Ihe product. " Price is one of four elemem in the Marketing mix model which is a
major concepts in modem marketing. The opinion abom price is varied between
differem customers. Some customeis are price-mtensive bm some are not. Some of
them consider "high price means high quality of product or sendee". Research comes to
the hypothesis that:

H3: Price of foreign branded dairy products positively influence on customer

satisfaction.
-Nuti-ition: Daily product is considered as ttie high nuttitional contem product which is
necessary and suitable for infants, kids, pregnant women, midemourished people.
Hence, die nuti-ition ingrediem of dairy product is very important and could be die
dominant factor to be considered in selection process.
H4: Nutrition of foreign branded dairy products positively tnfluence on
customer satisfaction.
- Taste: is an elemem belongs to characteristic of a dairy product. The feelmg and
evaluation abom taste of product will be made after die use of diese products. Taste is
the fimdamenml factor determining customers' favorites. According to Namkung &
Jang (2007), taste of food really impact on die customer satisfaction, that die hypodiesis
is;

HS: Taste of foreign branded dairy products positively influence on customer

satisfaction.
- Promotion: is another elemem of 4Ps in marketing mix concept. Promotion means
activities that communicate die merits of die product and persuade target customers to
buy h (Kotler, 2011). Promotion is the process that brings die product to its targeted
customers, makes diem diink abom or react to die existence of ttiat product. It leads to
the hypottiesis that:
H6: Promotion of foreign branded dairy products positively mfluence on

55
 ^'jiytn'i to i

customer satisfaction -i^w

- Distribution: is "An organized network (system) of agencies imdin^tu^msyvMii
combination, perform all the functions required to link producers, with e^msmtn
accomplish the marketing task" (American M a r k e t i n g A s s o c i a t i o n dictic8Qai^)s--!'
availability of a product or service may affect c u s t o m e r a t t i m d e t o w a r d s tills p r o d j i e t d
service. The ease in accessing product can lead to the satisfaction o f customers,.'

H7: Distribution of foreign branded dairy products positively influenceiieof-

customer satisfaction. • i '^'f^Sto
-Customer satisfaction: Hansemark and Albinson (2004) defined "Satislfectioa i ^ ^
overall customer attitude or behavior t o w a r d s a service provider- o r a n e m j i t % ^ i
reaction towards the difference between w h a t c u s t o m e r s expect a n d What itheyreceiait^
regarding the fulfillment o f some desire, need or goal". M o r e o v e r , N i n h (201S) ^sos
showed that Vietoamese consumers tend t o have positive b e h a v i o r toward fee^ -m^
incase they satisfy with them, so research has hypothesis: , . ,v::
H8: Customer satisfaction towards the foreign branded dairy products positt^^i
influence on consumer behavior. •,, -r.^ [ri '•
- Credibility: Credibility is that perceived sense or feeling of trust o r b d i e f base^ienf
mainly the delivered qualities of product. The research of S w e e n e y a n d Swait,.(20Qj&)i
proved the strong relationship between the credibility o f brand and die consumer
behavior so research has hypothesis.
H9: Credibility towards the foreign branded dairy products positively injkience
on consumer behavior.
-Experience: Brand trust evolves i r o m past experience and prior mteraction (G^bariiM^
and Johnson, 1999). The experience and existed evaluation t o w ^ d s a brand, a p t o d W
or a service may have impact on the decisions of consumers in the present. The \ss^
hypothesis is:

HW: Experience towards the foreign branded dairy products positive^

influence on consumer behavior. .',
3 . Research M e t h o d o l o g y , ,3^
Fu-stly, this research mainly applied quantitative research m e t h o d s W i ^ tm
collection and analysis o f acuial data. Botii secondary and primary dat?, were vsed^%-
assure the accuracy of information about dairy industry in V i e m a m . ci^t^^j
satisfaction and consumer behavior towards foreign branded daily products. Secondary
data is adopted reports of market research institutes or organizations. O n die otiier h a n ^ M
S6

.1
 j j g ^ ef F o r e ^ Branded a u r y Products in Vietnam

pnmary data - die main datasomse for analysis is collechxl from questionoaiie. Fiisdy,
die survey was sent randomly to 300 people who proposed to consume foreipi branded
dairy products. However, after collecting and filtering, diere are only 198/300 surveyed
participants have already bought and used die foreign bianded dahy pniducts. Then,
research decided to used 198 convenient sampling unit for detailed research Their
consumption and experience may increase die credibUity of Uie research's results.
Research uses botti ttle paper fonn and onlme fonn of questionnaires to survey die
respondents, Tliis process was conductedfi-omJanuary to February 2015.
The questionnaire consists of 4 main parts widi 56 questions: (1) Analyzing ttie
foreign bianded daily products' consumption habits of Viemamese consumers; (2)
Evaluating customer satisfaction and fiictors affecting customer satisfaction towards,
foreign branded dairy products in Viemam market; (3) Exploring die acmal behavior
and factors affecting ttiose behavior of Viemamese consumers towards foreign branded
dairy products and (4) Peisonal infonnation.
4. Research Results
4.1. Descriptive Analysis
Gender: Among 198 respondents, 31.55% is male and die female counting for
68.45%.
Age: One-diird of respondents are under 23 years old while 56 of diem are at die
age of 23-35 years old and only 11 respondents are ftom 36 to 55 years old.
Occupation: Out of 198 respondents, 53 people are working m a state-owned
company or organization, 25 are employees in private company and only 19 of
diem are doing personal business. Meanwhile, 101 respondents (over 50%) said
that they have other occupations.
Number of famdy members: Most of respondents are living in a family wiUl
from 3 to 5 membets, 16 respondents are die member of big family with more ttian 5
people and 19 of die respondents live alone or widl only one odier member.
4.2. Foreign Branded Dairy Products Usage Status of Vielnam Customers
Country of origin: Being ask about the origin of often-used foreign branded
dairy products, around 70% of respondents have purchased botti types - ttle local- based
foreign brands while around 13% and 17% are die proportion of respondents choose
only imported ones and local- based ones.
Mondily expense for foreign branded dairy product: Foreign branded dairy
product is special for just some special consumers, it seems diat Vietiiam families only
spend a littte amount money on foreign bianded dairy product. 118 of respondents
spend less ttian 500 ttiousands VND on consuming Foreign branded dairy products and
 only 10 of tiiem pay more tiian 1.5 million VND per montii. It is 42 and 28 r
respectively for the expenditure on Foreign branded dairy producte of SO&;®l
1,000,000 VND and 1,000.000 - 1,500,000 VND monthly.
Brands: At firet, it is clearly that Viemam consimiers tend to switt^ e
different kinds of dairy products of botii imported brands and local-bf^ed fore^^,
brands. 74 respondents have bought and/or used foreign branded dairy producte^ig!
Abbott. In term of domestic and joint venture brand, 113 respondents often useproiiaf
of Dutch Lady, tiie number is 79, 70. 67 and 53 for Nutifood, Nestle' and Fie^fiS
Capina and other brands respectively.
Distiibution: It is shown that the most preferable channel for plirchasing foMi|S
branded dairy products in Vietoam are fi'om the supermarket and grocCTy store. 4$
respondents often come to the supermarket and grocery store to buy fereipi bfaided
dairy product, 91 of them only respect the genuine dealers for tiie guarfflitee of rai^v
The rest choose both of these above options. •' v
4.3. Evaluating customers satisfaction towards foreign branded dairy products '^' '>•
4.3.1. Customer salisfaction towards foreign branded dairy products • \^
Research conducted questionnaire included 3 observed variables lelatir^ to
customer satisfaction in 5 level of Likert scale. The mean value indicates the average
value of customer satisfaction of all 198 respondents. In the table 1 below, it showra t l ^
mean of total three variables are over 4, or in other words, Viemamese customers ate
quite satisfied with die existing foreign branded dairy product in the market.
Table 1; Customer satisfaction towards foreign branded dairy products
Cronbach Cronbach
Mean
N Minimum Maximum Mean Std. anpha if anpha of
ofCS
Deviation deleted CS Scale
Scale
item
CSI IV8 2 5 4.23 0.787 0.711
CS2 198 3 5 4.15 0.709 4.21 0.803 0.81? '
CS3 198 3 5 4.25 0.764 0.728
Valid N 198
(listwise)

Whereas:

CSl is: In general, I'm delighted with foreign branded dairy products I've used

CS2 is: I'm satisfied widi die utility of foreign branded dairy products I've used

S8
 j j g ^ o f Foreign Branded Dairy Products in Vietnain

CS3 is: I appredffle die effecis of foreigi branded daily produrts I've used

4.3.2.Faclors affecting customer siMsfiiction bnvards foreign branded dairy products

Cronbach's Alpha Analysb:

Seven factors equivalent fo seven measurement scales to be predicted ttiaf cdtdd lave .
unpact on customer satisfaction. They are: btand awareness (BAl-7). country of origin
(COl-4), price (Pl-4), nutiition (Nl-4), tilstc (TI-3), promotion (PRl-5) and^
distiibution (DI-4). Cronbach's Alpha test will remove die faetiir witti general:
! Cronbach's Alpha smaller ttian 0.6 and remove die variable which has item-total'
con-elation smaller dian 0.4 and the Cronbach's Alpha if item deleted greater Oian =
origmal Cronbach's Alpha. The resuh came out diat variables BA3, BAS, C04. PI, N4. \
T3 and D4 are omitted from die model and all seven fiictors are reliable.

Factors Observed variables Cronbach's Alpha

Brand Awareness 5 0.683
Country of origin 3 0.771
Price 3 0.742
Nutrition 3 0.808
Taste 2 0.870
Promotion 5 0.761
Distribution 3 0.741
—
Customer satisfaction 3 0.708

Exploratory Factor Analysb (EFA):

After doing reUability test, 24 observed variables are remained and were pm on EFA
testing process. Firsdy, KMO statistic was conducted to measure die adequacy ofthe
sample and test tile suitable of EFA. The KMO statistic equals to 0.647 shows die good
adequacy conelation between variables in die dataset. In the next stage, principal
componem analysis witfi Varimax rotiition mettiod and factor loading > 0 5 bid romted
omitted and grouped items into 5 new groups of components, maintained only 17
observed vanables, the detail is shown in the table 3 below.

59
 Table 3: Exploratory Factor Anatysis Resul t -t . t •.
" • ' 'l
[terns New group CompoBe^t^.^.^ 1 ..i«i
of
component 1 2 3 ,4
s
J
D2 - Foreign branded dairy products
are sold at almost supermarkets and
convenient stores

D3 - Foreign branded dairy products

are placed in easy-to-see positions in
sK)res or supennarkets
Branding
strategy
(BS)
.792

.756
^
'1
BA6 - Foreign branded dairy "J r
products I've bought are from famous .731
and popular brands
BA7 - 1 only buy foreign branded
dairy products of reputed and long-
historv brands
.713
11
Dl - Dairy companies have a wide
distribution system in the country
.589
-4
PRI -Advertisements of foreign
branded dairy products on public
,r^> H
channels are colorfiil and/or with .500
catchy music

PR4 - Foreign branded daiiy Advertising

companies often launch promotion (AD) .832
events with free samples

PR3 - It is easy to try/test any foreign

branded dairy products in milk testing .772
stalls in the supermarket.

PR5 - Social activities or projects

launched by foreign branded dairy
companies have distributed into .764
society's sustainability

Nl - Foreign branded dairy products

are suitable for nutrition
replenishment
Nutrition
(NU) .941 ;1
N3 - Each foreign branded dairy
products has different nutritional

•'1
.757
ingredients for different people
60

1
 j g ; j y B f Foreign grandcd Dairy Frodiicts in Vidnam

N2-Niitritional ingredients of •
foreign branded daity products are .728
veiy good for human healdi.

COI - All foreign branded dairy Origin

products in die market have clear (OG)
origin .835

C03 - Information about origin in

foreign branded dairy products' labels
are reliable .789

,C02 - Countiy of origin infomiation

IS clearly andfiillyprinted in foreign
.691
branded dairy products' labels
TI -Taste of foreign branded dairy Taste
products I've drunk are very delicious (TA) .833-,
T2 - Foreign branded dairy products
I've used have a good taste .829 ;

-According to ttiese f t o r s analysis, five groups of components were ereatedi

instead of seven as the original. Therefore, die components were renamed to be more-
suitable and relevant (as shown in table 3). In addition, diose components created five,
new measuremem scales, which were tested again die reliability of diese scale. The
result shows that, ail of them are reliable witti high new general Cronbach's Alpha value-
as:

• Branding strategy: 0.S28

Advertising: 0.779
Nutrition: 0.808
Origin: 0.771
Taste: 0.870
Correlation Analysb:

After exploratory factor analysis, new model were built, it was supposed ttiaf
Brand Sttategy (BS); Advertisint (AD); Nuttition (NU); Origin (OG) and Taste (TA) of
foreign branded dairy products could affect Viemamese customer satisfaction
Regression analysis and regression model was used to mdicate die correlation between
five indepcndem variables (BS, AD, NU, OG and TA) and dependem variable -

61
customer satisfaction (CS). hi order to assure fliat tiiere is cojiclatiQn,
dependent variable and independent variables, correlate test was made. It €££me'Om
correlation of CS and BS. AD, NU, OG, TA is significant atflje.O.Q.Usyel(sJg Ysiii
0.000). On the other hand, tiie cross correlation between five dqiendeht variables ^ o V ^
all significant value < 0.05, it means that there is no multi-coUinearity in flie %JC^° '.
Therefore, the condition to run regression analysis is satisfied.
Regression anafysis:
The first time running regression analysis using SPSS software made flie resuft
that NU and TA would be removed from regression model because they cannot ineet ftfe
significant level of 0.05.
Table 4: Customer Satisfaction - Regression Analysis T ^ t , ,
Model Unstandardized Standardized t Sig. ColIinea#':-'lj
Coefficients Coefficients Statistics - -

B Std. Beta Tolerance - -Wff^

Error

(Constant) .506 .231 2.190 .030

BS .439 .062 .492 7.108 .000 .620 1.612 i

AD .148 .043 .211 3.443 .001 .788 U6?,,
NU .028 .047 .036 .597 .551 .805 1.242
OG .295 .044 .428 6.674 .000 .724 1.381 i

TA -.063 .045 -.098 .165 .600 1.667 i

1.394
J

The adjusted regression model contains three dependent variables which are BS, AD
and OG. The detail of regression analysis is illusti-ated in the following tables.
Table 5: Regression model summary of CS
Model R Square Adjusted R Std. Error ofthe
Square Estimate

a. Predictors: (Constant), OG, BS, AD

 j^^^jyofgoreigi Brandeii Dairy Products in Vietnam

Coefficientsa
1
Model Unstandardized" Standardized f ' Sig. CdKihearity
Coefficients Coefficients Statistics
B Std. Beta Tolerance VIF
Error
(Constant), .565 .216 2.621 .010
, BS .392 .049 .439 7.941 .000 .975 1.025 •
AD .155 .042 .221 3.667 .000 .823 I.2I5
OG .286 .041 .414 6.958 .000 .840 1.190 1
a. Dependent Variable: CS

The regression model of CS and OG. BS, AD has R-Square equals 0.512, means
that die model can explam abom 51.2% the correlation of independent and dependem
vanables. Aldiough h is not a veiy high proponion. it is still acceptable and considered
valuable.

The significant index of diree indepcndem variables Brand Stiategy, Advertising

and Ongin are 0.00, this is very ideal. The model shows die positive relationship
between those variables with Custiimer Satisfaction. The regression equation can be
d,emonsttated as follow:

CS = 0.565-I-0.392 BS-f 0.155 AD + 0.286 OG

As can be seen ftom die model. Branding Stiategy has die strongest impact on
Customer Satisfaction, followed by Origin of products produetii. Advertising activities
of compames affect affectively die satisfaction of Viemamese customers bm at a smaU
level.

4.3.3. Customers-Purchasing Behavior towards Foreign Branded Dairy Producb

From the statistic results of die table below, Viemamese consumers tend to do
positive behavior towards die foreign branded dairy products with die Mean of seale
equals to 4.07 m whieh the CBI variable has the highest level of agreemem (4 40) that
Vietnamese consmner love to buy Ih general, Vietnamese customers are quite satisfied
with the existing foreign branded daily product in the market and most of diem choose
tiie acuon of recommending for their relations. This proves the facts of Vietnamese
 ;'!'!« M

consumers'ttend but it is such a bad signal for die local enterprises. ,.^-^
Table 6: Customer Behavior towards Foreign Branded Paity P r i i 8 n ^
Crtmbach C n i d i ^
Mean
Std. aoptiaif anpha,.^i
N Minimum Maximum Mean ofCB
Deviation deleted CS Scale'
Scale
item.
CBI 198 3 5 4.40 0.624 0.841
CB2 198 3 5 4.35 0.711 4.07 0.775 0;»n L
CB3 198 2 4 3.48 0.689 0.671 1 '•
Valid N
198
(listwise) .,., J ;

CBi is: 1 probably continue purchase foreign branded dairy products in tlK^ne)^
buying time
CB2 is: 1 will recommend my relations to buy foreign branded dairy products . U.-:^P
CB3 is: 1 will join in promotion campaign organized by foreign branded dairy ^
enteiprises ,^^ •

4.3.4. Factors affecting consumers' purchasing behavior towards the foreign bran^"
dairy products

From the suggested research model, the purchasing behavior of Vietnamese consumers
may affected by three main factors: Trust, Experience of consumer and the Custofit^'l;
satisfaction so in the next part, research will do some analysis procedures as K'A aniJ'
regression to look for the trend.

Exploratory Factor Analysis (EFA):

Doing similarly witii tiie previous part, 11 observed variables are put into die EFA
testing procedure. The KMO statistic = 0.728 proves that tiie dataset is accepted. Va&
EFA test witii principal component analysis and Varimax rotation method was med fii^,
this step. The factor loading > 0.5 had rotated, omitted and grouped items into 3 §
of components as following.
 J 5 5 l ^ £ £ o r ^ f c a a d e d Dairy Prtidncb in Vietnam

Table 7: Rotated Component Matrix'

0imponent

l™an'h°Mim'''"°"'"' ^''^ ''"^"'"^ '^ absolutely sale for

TR3 - The ingredients of foreign branded daily products are
•aBaflZiBprovelunder advice of doctor and pmf«.n.
J|Ll£g':!!glj™ded dairy products arereputedin general.
-—-— .^— —J ^.—„>.M n.v ni(^utcu III general
^ ^ ^ ^ ^ d e d daio- products always guarantee for
S ^ " J ^ ' " ° '" "'^'"g'-i* different foreign bianded
BX4 - I can make advise for oUieis about foreign bianded
dairy products
EX2 -1 am able to evaluate and test the quality of foreioi
oranded tfatiry products
EXl -1 have much experience on purchasing foreign
branded dairy products
CSl - In general, I'm delighted with Foreign branded dairy
ptoducts I've used. 0.806
CS2 - I'm satisfied widi die utihty of Foreign branded dairy"
products I've used
CS3 - I appreciate die benefit ot Foreign branded dairy
products I've used.

The regression in which consmners' pmchasing behavior is dependem variable and

Trust. Expenence and Custiimer Satisfaction are duee indepcndem variables is used to
mvestigate die correlation of diose variables.
Table 8: Model Summary of CB

R Square Adjusted R Square Std. Error ofthe

Estimate
.549
a. Predictors: (Constant). CS. TR, EX

As bemg indicated m die above table, dnee indepcndem variables can explain about
54.9% for die change of dependem variable Consumes' acmal behavior as R-square
value is 0.549, which is greater dian 0.5 to be appropriate.
 Model Unstandaidized Standardized t Sig. CoUtnearify ,
Coefficienls CoefUcients Statistics

B Std. Beta Tolerance v^

Error
...•:
(Constant) .152 .230 .663 .508

.300 .045 .381 6.656 .000 .839 l-iK

1 ™
EX .324 .048 ,390 6.807 .000 .838 I.I94.
CS .380 .054 .372 7.075 .000 .992 l.*!i

a. Dependent Variable: CB
Accoiding to the above results table, regression mode! of CS and TR, EX and CS are
significant (sig. = 0.000).
CB = 0.152 + 0.3 TR + 0.324 EX + 0.38 CS
Three factors have a positive impact on Consumers' purchasing Behavior.
Customer satisfaction has die greatest impact, followed by Experience and dien TrdS,;
In details, if customeis are satisfied widi foreign branded dairy products, fliey intend to:
pick foreign branded dairy products when buying dairy ones. Similarity, when fliey
have good experience of purchasing and using foreign branded daily products^ diey
would like to keep choosing foreign branded dairy products whenever they want to buy
milk. On the other hand, if customers believe that foreign branded dairy compani^
offer fliem good or even the best quality dairy products which are nuuritious and safe
for human, they will prefer choosing foreign branded dairy products.
I-
4.3.4. Impacts of Demographic Variables on Consumers' Purchasing Behavior
The smdy checked the relationship between demographic variables with fliTj
buying behavior of consumers for foreign branded dairy products. Verificatioo"' '"•••
procedures ANOVA in SPSS 20 software was used to conduct this analysis wifli flife
hypothesis: •'.
ttu. I here is difference in behavior of consumers when there are differences ih jjjjj
demographic characterislics (gender, age. occupation, numbers of family
members).

• HI: There is no difference in behavior of consumers when there ttrx

 j ! ; j y ^ Foreign Branded Dairy Products in Vietnam

differences tn demographic characterislics (gender, age, oca^xdion,

numbers of family members).
Hereinafter is flie cross-tabulation resuh of demogmphic variables and consmner
behavior variable

Table 8: Relationship between demographic variables and consumers' actual

behavior

Sig. (p-value)
Gender * Consumers' actiial behavior
0.238
Age • Consumers' achial behavior
0,584
Occupation * Consumers' actiial behavior
0.122
Number of family members • Consumers' achial behavior 0.073

Accordmg to die amdysis of cross-tabulation, ttie indexes of Sig (p-value) are

greater flian 0.05 (95% significance level) leads to flie rejection of hypodiesis HO TOs
means diat the purchasing behavior of Viemamese customer towaids foreign bianded
dairy products are nm subjected to any influence fiom differences in gender age
occupation or number of family members of this customer.
5. Conclusion and Implications
Viemamese consmners love foreign branded dairy products regaidless diey have
been produced locally or imported from foreign countiies. However, due to flic lack of
economic ability, almost sm^eyed respondents spend less dian 500.000 VND/monfli for
foreign branded dairy products. Dutch Lady - a local-based foreign brands stands for die
number one position in die selection of consmners and most of people choose flie super
market and conveniem sRires to buy the foreign branded dairy products
Besides, by die evidence of die findings, it is die fact d«t Viemamese consmners have
positive behavior and satisfaction towards foreign branded dairy products wid, die
average levels of tivo scales are more dian 4 over 5. This is good news for foreign dairy
enteipnse and vice vema bad news for Viemamese local dairy enteiprises. Hence in
order to catch up die foreign brands, Viemamese dairy bmnds should pm fliese
following implications iota consideration:
(i) Except die limitation of brands' txiuntry of Origin, Viemamese entetprises may

67
 boost the customers' satisfaction by focusing on developing good I
strategies and enhancing the quality and the coverage df «lvertiai^-
campaigns; jj
(ii) (ii) Organizing events and to develop the brand awareness p£uaUd witii r ^ | g J
the use experience for consumers; and ^
(iii) All information and indications of products must be truthfully aatj
transparently. ;-.
Moreover, in order to support domestic enterprises and boost Vietnamese consumers to't.
change from using imported products to the local ones, govemment and d^
assoications should:
(i) Strictly require the local enterprises providing transparent and truthful products'
informalion, ingredients on product labels;
(ii) (ii) Encourage local brands in social activities; Organize seminas trainingSJitSi"
study tours for farmers to help tiiem increase the quality of fresh milk (the
essential input ingredient for the powdered milk products); and
(iii) (iii) Abandon the trade and using unquailified products from uncertified
unquailified sources.
References

1. Bizlive (2014), Doanh nghiep Viel dimg a ddu tren thf tri/dng sira bQt, (Onlme)*
Available at: httD://bizlive.vn/thuonB-truone/doanh-nghieD-noi-dung-dau-ti^n-thi';
truone-sua-bot-238078.html. [Accessed on 2/1/2015]
2. Bonaventure, B., Umberger, W. (2012), Factors Influencing Malaysian Consumer's
Consumption of Dairy Products (Online), Available at:
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[Accessed on 23/11/2014]
3. Do, L. (n.d.). Vienamses Milk Markei Report. (Onlme), Available at:
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4. Gafin (2014), Doanh nghiep npi dung dau tren thi tnrcmg sua bpt? Bao Dau Tu,
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truong-sua-bot-3123276 [Accessed on 25/11/2014]
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