Sei sulla pagina 1di 157

VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS

HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS IDENTIFYING FACTORS AFFECTING THE LEVEL OF IMPULSE

IDENTIFYING FACTORS AFFECTING THE LEVEL OF IMPULSE BUYING IN FASHION MALLS IN HO CHI MINH CITY

In Partial Fulfillment of the Requirements of the Degree of BACHELOR OF ARTS in BUSINESS ADMINISTRATION

Student’s name: TA BAO TRAN (BABAIU11081) Advisor: BUI QUANG THONG, Ph.D.

Ho Chi Minh City, Vietnam May, 2015

i

IDENTIFYING FACTORS AFFECTING THE LEVEL OF IMPULSE BUYING IN FASHION MALLS IN HO CHI MINH CITY

APPROVED BY: Advisor

Bui Quang Thong, Ph.D

APPROVED BY: Committee

Nguyen Minh Tuan, MBA

Le Nhat Hanh, Ph.D

Nguyen Ngoc Duy Phuong, Ph.D

THESIS COMMITTEE

ii

ACKNOWLEDGEMENT

F irst and foremost, it is a pleasure to express my sincere gratitude to many people

who made this thesis possible. I wish to give my deepest gratitude and appreciation to my profound advisor, Dr. Bui Quang Thong, for his continuous support and encouragement. This thesis would not have been completed without his help. Throughout my thesis-writing period, he encouraged me whenever I encounter problems with careful and inspiring advice, good teaching and lots of interesting ideas. His extensive knowledge in marketing as well as deep understanding in business research has given me invaluable experience in conducting scientific study in marketing field. Especially in the data analysis, thanks to his useful tutorials and recommendations, I had overcome the difficulties of statistic process and software. In short, it is an honor for me to be instructed by Dr. Bui Quang Thong who never accepted less than my best efforts. Additionally, I would like to thank Dr. Le Van Chon for supporting me in raising

the thesis’s topic and widening useful knowledge through the Business Research Method course. His instructions and advices are valuable to me. My gratitude also goes to all professors in International University, especially professors and staffs in School of Business Administration, who always do their best to make all thesis procedures as convenient to students as possible. A word of appreciation must go out to all of my close friends who aided and supported me during the time conducting this thesis, Mr. Le Minh Khoa, Mr. Nguyen Trung Hung, Ms. Banh Ngoc Nhu and Ms. Nguyen Phuong Hoang Cuc. Without their cooperation, I could not have accomplished my thesis. Last but not least, I am appreciate to those who spent time on spreading and completing my questionnaire. Their responses are the valuable information and big encouragement for me in private and for those who want to have further investigation in this research topic in general.

iii

Finally, my beloved family deserves a special mention for their unconditional love and support throughout the whole research study. To all of them, I dedicate this thesis.

Ho Chi Minh, January, 2015.

iv

Table of Contents

ACKNOWLEDGEMENT

 

III

LIST OF TABLES

VIII

LIST OF FIGURES

X

ABSTRACT

XI

ABBREVIATIONS

XIII

CHAPTER I

14

1.1. RESEARCH BACKGROUND

14

1.2. RESEARCH OBJECTIVES

17

1.3. RESEARCH QUESTIONS

17

1.4. SIGNIFICANCES OF THE RESEARCH

18

1.5. RESEARCH SCOPE AND LIMITATIONS

19

 

1.5.1. Research

scope

19

1.5.2. Research

limitations

19

1.6. RESEARCH STRUCTURE

 

19

1.7. THESIS TIMELINE

20

CHAPTER II

22

2.1.

DEFINITION OF TERMS

22

2.1.1. Optimum Stimulation Level

22

2.1.2. Hedonic Purchase

 

23

2.1.3. Consumer’s Need for Uniqueness

23

2.1.4. Novelty- Fashion Consciousness

26

2.1.5. Consumers Self- Spending Control

26

2.1.6. Level of Impulse

Buying

27

2.2.

RESEARCH HYPOTHESES

28

2.2.1. Relationship between Optimum Stimulation Level and Level of Impulse Buying

28

2.2.2. Relationship between Hedonic Purchase and Level of Impulse Buying

28

2.2.3. Relationship between Consumer’s Need for Uniqueness and Level of Impulse Buying

29

2.2.4. Relationship between Novelty Fashion Consciousness and Level of Impulse Buying

30

2.2.5. Relationship between Consumer Self-Spending Control and Level of Impulse Buying

30

2.3.

RESEARCH MODEL

32

CHAPTER III

 

34

3.1. NATURE OF THE RESEARCH

34

3.2. RESEARCH METHOD

34

3.3. DATA COLLECTION METHOD

36

3.4. RESEARCH DESIGN

 

36

3.5. SAMPLING DESIGN

38

3.5.1.

Sample Size

38

3.5.2 Sampling Technique

38

3.5.3.

Sampling Locations

38

v

3.6.

QUESTIONNAIRE DESIGN

39

3.7. PILOT STUDY

44

3.8. DATA COLLECTION PROCEDURE

44

3.9. DATA ANALYSIS METHOD

46

 

CHAPTER IV

48

4.1.

SAMPLE DEMOGRAPHIC

48

4.1.1. Response Rate

48

4.1.2. Demographic Analysis

48

 

4.1.2.1. Gender

49

4.1.2.2. Age

50

4.1.2.3. Occupation

51

4.1.2.4. Income

52

4.2.

DESCRIPTIVE STATISTICS

52

4.2.1. Descriptive Statistics of Optimal Stimulation Level

53

4.2.2. Descriptive Statistics of Hedonic Purchase

53

4.2.3. Descriptive Statistics of Consumer’s Need for Uniqueness (in sub -dimensions)

54

4.2.4. Descriptive Statistics of Novelty Fashion Consciousness

56

4.2.5. Descriptive

Statistics

of Consumer Self-Spending Control

57

4.2.6. Descriptive Statistics of Level of Impulse Buying

58

4.3.

EXPLORATORY FACTOR ANALYSIS (EFA)

59

4.3.1. Reliability

Analysis

59

4.3.2. Factor Analysis

64

 

4.3.2.1 Independent Variables

EFA

for

65

4.3.2.2 Dependent Variable

EFA

for

68

4.4. DETECTING MULTIVARIATE OUTLIERS

70

4.5. CONFIRMATORY FACTOR ANALYSIS (CFA)

73

4.5.1. Check for Model fit

76

4.5.2. Check Convergent Validity

83

4.5.3. Check Reliability

86

4.5.4. Check Discriminant Validity

89

4.6.

STRUCTURAL EQUATION MODELING (SEM)

90

4.6.1. Check for Model Fit

92

4.6.2. Hypotheses Testing in SEM

107

4.6.3. Revised Research Model

108

 

CHAPTER V

111

5.1.

CONCLUSION

111

5.2.1. Recommendations for Retailing Strategies

113

5.2.2. Recommendations for Future Research Study

114

5.3.

LIMITATIONS

115

REFERENCES

117

 

APPENDIX A

127

QUESTIONNAIRE IN E NGLISH UESTIONNAIRE IN ENGLISH

127

QUESTIONNAIRE IN V IETNAMESE UESTIONNAIRE IN VIETNAMESE

130

vi

APPENDIX B

135

APPENDIX C

141

APPENDIX D

143

APPENDIX E

151

vii

LIST OF TABLES

Table 1: Research Timeline

21

Table 2: Measurement Items for the Research Model

40

Table 3: Valid Response Rate

48

Table 4: Demographic Information

48

Table 5: Descriptive Statistics of Optimum Stimulation Level

53

Table 6: Descriptive Statistics of Hedonic Purchase

53

Table 7: Descriptive Statistics of Consumer's Need for Uniqueness's sub-dimensions

55

Table 8: Descriptive Statistics of Novelty-Fashion Consciousness

56

Table 9: Descriptive Statistics of Consumer Self-Spending Control

57

Table 10: Descriptive Statistics of Level of Impulse Buying

58

Table 11: Rules of Thumb for Evaluating Cronbach's Alpha

59

Table 12: Corrected Item-to-Total Correlation and Cronbach's Alpha (First Round)

60

Table 13: Rotated Component Matrix of Independent Variables

65

Table 14: KMO and Barlett's Test of Independent Variables

67

68

Table 16: Component Matrix of Dependent Variable

69

Table 17: KMO and Bartlett’s Test of Dependent Variable

69

Table 18: Total Variance Explained of Dependent Variable

69

Table 19: Observations Farthest from the Centroid (Mahalanobis Distance)

70

Table 20: Criteria for Measurement Model

74

Table 21: Model Fit of CFA (First Round)

76

Table 22: Modification Indices Value and Questionnaire Per Items

78

Table 23: Model Fit of CFA (Final Round)

83

viii

Table 24: Regression Weights: (Group number-Default model)

84

Table 25: Standardized Regression Weights

85

Table 26: Composite Reliability and Extracted Variance of Each Factor

87

Table 27: Correlations (CFA)

89

Table 28: Model Fit of SEM (First Round)

92

Table 29: Regression Weights of SEM Testing: (Group number 1-Default Model) (First

Round)

92

Table 30: Covariance: (Group number 1-Default model) (First Round)

95

Table 31: Model Fit of SEM (Second Round)

100

Table 32: Covariances (Group number 1: Default model) (Second Round)

101

Table 33: Regression Weights of SEM Testing (Group number 1-Default) Round)

Table 34: Regression Weights of SEM Testing (Group number 1-Default model) (Third

(Second

101

Round)

103

Table 35: Model Fit of SEM (Third Round)

106

Table 36: Covariances: (Group number 1-Default model) (Third Round)

106

Table 37: Standardized Regression Weights

107

Table 38: Hypotheses Testing in SEM

108

ix

LIST OF FIGURES

15

Figure 2: Research Model

32

37

Figure 4: Gender Percentage

49

Figure 5: Age Group Percentage

50

Figure 6: Occupation Percentage

51

Figure 7: Income Percentage

52

Figure 8: First Measurement Standardized Modelling

76

Figure 9: Final Measurement Standardized Modelling

83

91

99

105

Figure 13: The Revised Research Model

109

x

ABSTRACT

Impulse buying is a major research concern among researchers due to its pervasive aspects of consumer behavior as well as its mystery in the marketing world. As counted, impulse buying has a long story of being taken into research for the past sixty years since 1950 by Clover until the recent research paper conducted in by Chang et al. in 2011. Thus, factors affecting impulse buying have long been explored with diverse aspects, which associates with shopping atmosphere, shopper’s personal characteristics, the various demographic and socio-cultural features as well as product itself. However, in general view, most of the study on impulse purchase concentrated on the external features impulse buying. For instance, Abratt and Goodey (1990) indicated that in-store environment such as Point- of- Purchase (POP) posters can stimuli the impulse purchase. Next, the early work of Rook discovered the fundamental nature of impulse buying (Rook, 1987) and later explored the normative influences effect on it, where extrinsic impacts were highlighted. (Rook and Fisher, 1995). In 1998, Jones and Beatty continuously proposed that impulse buying is probable to impact on individuals across circumstances. After that, Zhou and Goong (2003) re-confirmed that impulse buying could be influenced by retail store stimuli such as POP. Recently, the study of Chang et al. (2011) contributed some direct and indirect influences of retail environmental traits on impulse purchase. However, most of these researches has not brought a fully concept of impulse buying. Perhaps, they did lots of investigation on external variables affecting impulse buying behavior while fail to provide internal variables, which also caused impact on this consumer behavior. Besides, results from past studies shows that the extrinsic variables did not support much to the increasing of impulse buying of consumers. As a result, it is necessary to explore more important internal variables which are expected to cause stronger effect on impulse buying to provide a better understanding of the impulse buying concept and assist more appropriate marketing decisions in the

xi

field of marketing activities. Thus, the objective of this research is not out of investigating factors affecting level of impulse buying, which not only examines new intrinsic variables influencing on impulse purchase but also check their level of effect. In this study, to measure the level of impulse buying of factors, a research study was formed and presented clearly in the methodology chapter. Target populations are those living in Ho Chi Minh City and did make impulse purchases in the past or at the time they were asked. In general speaking, data was collected from 355 respondents in total by questionnaires at some famous fashion malls in Ho Chi Minh City as well as other offline and online channels which will be well discussed later. The findings of the data were assessed in terms of the level of effect on impulse buying of factors compared to those conducted in many previous research papers. Although the research study hypothesized five independent factors causing influences on impulse buying, which were optimum stimulation level, hedonic purchase, consumer’s need for uniqueness, consumer’s self-spending control as well as novelty-fashion consciousness, however, it was found that only optimum stimulation level, hedonic purchase and consumer’s need for uniqueness had positive impact on the level of impulse buying while consumer’s self – spending control was pointed out having negative effect on the dependent factor. Novelty-fashion consciousness was explored to have no impact on impulse buying as concluded by the result from data analysis. Thus, it will be much valuable for both overseas and local fashion brands/ retails to implement the results and turn into practical marketing activities to attract more impulse buyers. Besides, it also useful for the researchers to develop the theoretical frameworks and replicate in other industries. Key words: impulse buying, impulsiveness, consumer behavior, fashion brands, retailing, hedonic consumption, optimum stimulation, novelty-fashion consciousness, consumer’s need for uniqueness, consumer self –spending control. Paper type: Research paper

xii

ABBREVIATIONS

AVE: Average Variance Extracted CFA: Confirmatory Factor Analysis CNFU: Consumer’s Need for Uniqueness CSSC: Consumer Self-Spending Control CSI: Consumer Style Inventory EFA: Exploratory Factor Analysis HP: Hedonic Purchase IB: Impulse Buying NFC: Novelty Fashion Consciousness OSL: Optimum Stimulation Level POP: Point of Purchase

xiii

CHAPTER I

INTRODUCTION

This chapter provides information about the rationale of this paper. From that background, research problems are stated and research objectives are set in order to solve such problems. Furthermore, scope and limitations as well as implications of this study are discussed. Lastly, the overall structured of the whole research has been taken into consideration. 1.1. Research Background Shopping has long been explored as an endless demand for human being, which was proved that can bring the joyfulness as well as satisfaction for the buyers. Thus, it is commonly understand that people are easily to fall into impulse purchase when they do not even tend to buy these products, or do not need as a must-have-item in the shopping list. Most of them only recognized how overspending they were when they went home, however, they may continuously made spontaneous decisions many times later when seasons sales came or new collections arrived. It has been reported that the number of shopaholics is increasing remarkably in developed countries, especially women, and most of them are called as slaves to fashion and debt. (Moussa, 2007). Nevertheless, under the point of view of fashion brands/ retailers, it is a good news due to the growing sales when more and more people are impulse buyers. The power of impulse buying has been accredited by marketing practitioners and researchers through various statistical data sources from past studies. In 1978, Bellenger et al. has reported that about 40% of annual volume from department stores is generated by impulse purchases. Mogelonsky (1998) also gave more evidence on the power of impulse buying by showing that around $4.2 billion of total revenue gained in fashion stores originated from impulse buying. In particular product categories, impulse

14

purchase takes a percentage of 80% among consumers buying behavior. (Smith, 1996; Abraham, 1997). This denotes that impulse buying has strong effects on consumer behavior, which is worth to be conducted in research paper in every aspects. However, most research paper conducted has origin from developed countries such as United States, the United Kingdom (McConatha, Lightner, and Deaner, 1994; Dittmar, Beattie, and Friese 1995; Bayley and Nancarrow, 1998) and Singapore as Shamdasani and Rook (1989). Almost no previous research study about impulse buying has empirically examined in developing countries before, thus, this study is conducted in Vietnam the promising developing countries to find out the level of impact of factors on impulse buying, then give implications managements for both local and international firms.

As reported in 2014, Vietnam has a population of over 90 million, which ranked 14th in the list of countries by population. Besides, Vietnam has higher population density in urban areas, especially in big cities such as Ho Chi Minh City, Ha Noi or Da Nang. (Statistics reported from General Statistics Office of Vietnam). Furthermore, GDP per capita kept increasing steadily with the latest record around US $1,030 in 2014.

increasing steadily with the latest record around US $1,030 in 2014. Figure 1: Vietnam GDP Per

Figure 1: Vietnam GDP Per Capita from 2006 to 2014

15

(Sources: www. tradingeconomics.com) As reported by Vietnam General Statistics Office, in 2014, GDP per capita of Vietnam reached to US $1,030. Furthermore, total personal disposable income of Vietnam was US$127 billion in 2013. Next, the total consuming volume of Vietnamese consumers was about US$111 billion in the same year (Deloitte). Continuously reported by Deloitte, Vietnam’s retail sales, which already reached to US$53.9 billion in 2011 in total volume, is forecasted to grow up to 109 billion USD in 2017. Especially Ho Chi Minh City the most dynamic city as well as the economic central of Vietnam, had the retail’s sales up to US$28.9 billion in 2013 (cited by Deloitte in Retail in Vietnam, Emerging Market, and emerging growth). Since Vietnam’s retailing industry was ranked at 14th out of 30 countries, it can be said in confidence that Vietnam is worth to be invested and conducted many researches on consumer behavior. Thus, Ho Chi Minh City, especially fashion malls in this city, were chosen as sampling locations to conduct this research paper. Ho Chi Minh City is not only the most dynamic city of Vietnam but also the economic central, accordingly, impulse buying is expected to occur in these potential locations. In particular, the underlying purpose of this research is to explore more stimuli behind the decisions of buying spontaneous within a physical shopping circumstances like fashion malls in Ho Chi Minh City. Fashion industry always takes central stage all over the world compares to other industries, however, this industry has not received equals treat for its development among countries when in some countries, fashion industry is still in low consideration. In Vietnam, fashion industry is moving to the development phase, which is recognized as “slowly marches ahead” by Fibre2fashion News Desk India. Currently, foreign and local retailers are competitively fight for a share in this promising market. While high- income customers are aimed to be targeted by foreign investors, local competitors identify an increasing needs for clothing from the low and middle income customers, thus, they invested in casual clothing products for this group at the affordable prices. In

16

2011, the largest categories in Vietnam clothing market are women outerwear and footwear, which is highlighted for the development in this type of clothing products. (Cited by Euromonitor, “Vietnamese consumers find their passions for fashion). The study’s conclusion can be useful for marketing practitioners and merchandisers in improving the sales of clothing products in fashion malls by implementing the advantages of impulse buying. However, it should be taken into consideration since the increasing sales from impulse purchasing will harm to consumers’ financial budgets and cause negative consequences in post-purchase feelings, social responses as well as decrease overall self-esteem. (Rook 1987; Rook and Hoch 1985).

1.2. Research Objectives

The purpose of this study, as mentioned above, is to investigate how optimum stimulation level, hedonic purchase, consumer’s need for uniqueness, novelty fashion

consciousness and consumer self-spending control affect the level of impulse buying in fashion malls. Thus, to achieve this goal, the research objectives are stated as follows:

- Identifying factors affecting the level of impulse buying in fashion malls in Ho Chi Minh City.

- Examining the level of influence of each factor on the level of impulse buying in fashion malls.

- Providing practical recommendations for fashion brands and retailers in increasing impulse purchase behavior of consumers, especially those living in Ho Chi Minh City.

1.3. Research Questions To reach the research objectives, the questions were formed as below:

- What are factors that affect the level of impulse buying in fashion malls in Ho Chi Minh City?

- In what level does each factor affect the level of impulse buying in fashion malls in Ho Chi Minh City?

17

- What aspects of fashion brands or retailers need to be improved to increase the level of impulse purchase of consumers? 1.4. Significances of the Research Although there has many researchers conducted research about impulse buying behavior and the factors affecting on this consumer behavior, in developing countries, the research studies are hard to be found. In other words, the level of impulse buying and the factors affecting on this level has never been conducted before in an official way in developing countries, or Vietnam market in particular. Thus, this study aims to provide supports for the value of measuring the level of impulse buying in fashion malls with clothing products. The outcome of the research would provide manager and researcher a conceptual framework to describe the relationships between the level of impulse and variety seeking and the factors affecting on them. Thanks to that, business owners in fashion industry can be able to target at the right customers and link these factors with their present business situation in order to revise their current marketing strategies and plans for better improvement. Besides, the scientific recommendations from this research are well discussed and this can be used as a good solution for the business owners on the way of reaching the business’s objectives. Last but not least, thanks to this study, the business owners can understand the level of influence that each factor contributes to the level of impulse buying. Therefore, they can focus on the factors which have the greatest influences to the level of impulse purchase in order to increase sales and develop their businesses and utilize their resources in the most effective way. Finally, this study can serve as a reference for those who wish to study about impulsive behavior in Vietnam. The results from this study are also significant points that can add value to further researches about Vietnamese consumer attitude in particular and Vietnamese consumer behavior in general afterwards.

18

1.5. Research Scope and Limitations

1.5.1. Research scope

Ho Chi Minh City was chosen to be a scope of this research paper thanks to its convenience and higher rate of impulse buyers. Ho Chi Minh City is not only the economic center of Vietnam but also is the most modern and dynamic city. Besides, it has lots of shopping malls and famous fashion brands to attract a huge of impulse buyers every day. Thus, it was believed to have a good sample size which suitable with the research’s purpose. In short, the paper mainly focuses on consumers having impulse

purchase toward clothing products as perceived by people in Ho Chi Minh City.

1.5.2. Research limitations

The major limitation of this study was the undiversified sample not a representative population due to the limited geographic accessibility capacity (All surveys were delivered and collected around Ho Chi Minh City). Therefore, the result of the study only helped explain partly the concept of impulse buying and its factors.

1.6. Research Structure The study was designed with five main parts placed in five chapters as

following:

Chapter I: Introduction This chapter will explain why it is necessary to conduct this paper. Moreover, the introduction also provides the overall background, research objectives and research questions, research scope and limitations as well as the structure of this study. Chapter II: Literature Review The second chapter mainly focuses on reviewing the important concepts, definitions used and previous researches associated with the problem addressed in this study. Most importantly, the theoretical framework and hypotheses are proposed in this chapter based on the research questions. Chapter III: Research Methodology

19

This chapter gives the detailed information about the research process, research design and research procedure as well as data analysis. Besides, the criteria for selecting research sample and data collecting process are provided. Additionally, chapter 3 shows the questionnaire items in details as well as describes the survey development. The statistical SPSS programs used in the research study is also mentioned and discussed. Chapter IV: Data Analysis and Findings Chapter 4 will provide the research results of the data analysis obtained from the collected data through the main surveys. Besides, this chapter aims to give clear explanation and recommendation of the statistic numbers as well as present the results of the proposed research model after being tested. Chapter V: Conclusion and Recommendations The final chapter will summarize the findings, offer the discussion for practical implications as well as give recommendation for further research. Lastly, the limitation of the study is also provided. 1.7. Thesis Timeline Thesis Duration: 6 months (10/11/2014 18/5/2015) (including Tet Holiday)

20

Table 1: Research Timeline

No

Activities

Nov

Dec

Jan

Jan

14

Feb

22

Mar

Mar

Mar

7 Apr

May

10

19

26

30

08

01

29

30

18

1

Register for thesis topic

                   

2

Apply for approval

                   

3

Oral defense for thesis

                   

proposal

4

Design questionnaire

                   

5

Pilot test for questionnaire

                   

6

Distribute and collect

                   

questionnaires

7

Mid way report

                   

8

Collect data and start

                   

analyzing

9

Write thesis

                   

10

Submit thesis

                   

21

CHAPTER II LITERATURE REVIEW

In this chapter, 5 hypotheses are proposed. The first four hypotheses concern direct impacts of optimum stimulation level, hedonic purchase, consumer’s need for uniqueness and novelty fashion consciousness respectively on the level of impulse buying. The final hypothesis proposes the negative relationship between the consumer self-spending control and the level of impulse buying. 2.1. Definition of Terms 2.1.1. Optimum Stimulation Level According to Wilhelm Wundt founder of experimental psychology, Optimum Stimulation Level (OSL) can be understood as a level of arousal, which produces a positive feeling or an optimal level of sensation (cited by Soares & Maria, 2004). Raju (1980), OSL was defined as a general personality trait that characterizes individual in terms of their response to environmental stimuli. Due to dissimilar responses to stimulation from different kinds of people, there is a diverse OSL reaction with regard to cognitions, perceptions, attitude and behavior. Accordingly, those who have low OSL can comfortably satisfy with commonplace situation while individuals having high OSL can easily have negative feelings in a steady and usual environment since they have higher propensity to discover latest inducement to fulfil their demand on stimulations. (Kish & Donnenwerth, 1972; Raju, 1980). In addition, new experiences tends to be accepted straightforwardly by group having high OSL (Aluja et al.,2003; Vries et al.,2009) and thus they are more engaging and willing to check out new products, services and brands (Raju 1980; Steenkamp & Burgessm, 2002). High-OSL persons also prefer a wide variety of usage of different products and services or brands

22

having common classification, (Menon & Kahn, 1995) and those products and services are put on use creatively (Mittelstaedt et al., 1976; Raju, 1980).

2.1.2. Hedonic Purchase

According to Bhatnagar (2004), hedonic purchase refers to “emotional needs of individuals for enjoyable and interesting shopping experiences”. As discussed by Holbrook & Hirschman (1982), hedonic buying motive relates to emotional arousal, which happens while carrying out purchasing process. In other words, hedonic purchase occurs in a high-involvement situation, where any single individual has a deep fall into a consumption event (Hopkinson & Pujari, 1999). For example, shoes’ consumers with higher hedonic purchase level will have interest in tracking shoes’ sales off event more often than normal consumers. Therefore, the changing levels of involvement have a positive influence on the level of hedonic purchase. The level of hedonic purchase is estimated to be higher in high involvement consumption situations and vice versa.

2.1.3. Consumer’s Need for Uniqueness

Consumer’s Need for Uniqueness (CNFU) was early defined as “the need to differentiate one-self and competes with other motives in situations that threaten the self- perception of uniqueness (i.e., situations in which individuals see themselves as highly similar to others in their social environment)”. (Snyder & Fromkin 1970, 1972). Accordingly, the level of sensitivity to similarity and the desire to be different to others will tend to be higher in those people who have stronger needs for uniqueness (Snyder, 1992). In a study implemented by Tian et al. (2001), CNFU was re-defined as “the trait of pursuing differences relative to others through the acquisition, utilization, and disposition of consumer goods for the purpose of developing and enhancing one’s self-image and social image. Therefore, CNFU is claimed to be associated with products which have some symbolic meanings to enhance individual’s self and social image as an expression of uniqueness. (Tian et al., 2001; Tian and Mckenzie, 2001). Also, since individuals may complete their aspiration to be unique in various ways such as possession displays (Belk, 1988), style of interaction in communication between people (Maslach, Stapp, and

23

Santee, 1985), or the domains of knowledge in which they initiate competence (Holt, 1995). They are probable to be dissimilar in their ways to fulfill their uniqueness aspiration through consumer behaviors and possessions. Based on the previous research on need for uniqueness and the nonconformity in consumer behavior, the conceptualization of consumers need for uniqueness is divided into three behavioral dimensions. Each will be defined in turn as follows. Creative Choice Counter -Conformity. Creative choice counter-conformity demonstrates consumers’ attempt to pursue the distinction from most others, however, these selections made by one consumer can be contemplated as a good decision by others (Tian, et al., 2001). As explained by Knight. & Kim (2007), in creative choice counter -conformity, goods are purchased by consumers must be unique and approved by most of people in society in order to express consumers’ uniqueness. Accordingly, brand names that satisfy this type of consumer must have some distinguishing characteristics such as exclusiveness, prestige and unique features.

For example, limited edition of Gucci’s hand bags is one kind of product that not only expresses the exclusiveness, prestige but also the uniqueness since these hand bags of Gucci are produced with very limited items. Besides, Gucci is one of the most famous fashion brands all over the world which was known for hundred years, thus, their products can satisfy the need of being praised by most of people of those having creative choice counter-conformity. In short, people who want to be unique and recognized by society for their choices will tend to buy products with limited edition but still luxury and good looking under the view of others. Unpopular Choice Counter -Conformity. Unpopular choice counter-conformity mentions about the preference or usage of products and brands that diverge from normal standards of society, therefore, it can cause high risk of being disapproval from most of people. However, these purchaser cannot resist their desire to be different from others, accordingly, they still want to be

24

unique in this way. In comparison to the aspect of creative choice counter-conformity, unpopular counter- conformity may terminate in a common image and encourage the improvement of self-concept. In short, people following this type of uniqueness are considered as rules breakers. However, according to Heckert (1989), through times, such choices can gain social approval and individuals who used to be viewed as “rules breakers” before can now become fashion leaders. In other words, it cost a lot of time for these individuals to be viewed as “fashionista” and be recognized by society that they are not that weird. Thus, according to Simonson & Nowlis (2000), these consumers are not worried about others’ criticism; in fact; the most concerns them is to make purchase decisions that might be viewed as bizarre from others. For example, blue jeans one kind of clothes that are too famous for not only young people but also for the whole fashion industry and society, used to be viewed as “abnormal clothing” in the 19 century. At that time, people who wore jeans to seek for new image and enhance self-concept were easily considered as weird people. Until later of 1990s, jeans were recognized by most of people, especially celebrities, jeans became famous and those wore jeans before had become fashion leaders. Avoidance of Similarity. Avoidance of similarity refers to individual’s effort to avoid the similarity by losing interest and discontinue using popular products. In other words, avoiding similarity also involves with the devaluation and avoidance of some kinds of products or brand that are considered to be well – recognized. However, since the consumer’s success in trying to differentiate themselves to others by creating distinctive self-images and social images doesn’t last long, they tend to discontinue to use or purchase products which can cause the similarity. Therefore, these individuals tend to purchase goods that are not widely accepted by most of people, and able to distinguish them from others. (Knight. & Kim, 2007). For example, these customers will find items which have origin from less popular brands such as local brands or unknown products to avoid the similarity from

25

others. Besides, they may stop using products that were widely used by many people. In summary, different from creative choice conformity and unpopular choice conformity, these kinds of customers are not trying to be unique in an outstanding way that can make people remember them longer than others or call them as fashion leaders, the only thing they need is to be different from others by using non-popular products or stop using products that is becoming popular.

2.1.4. Novelty- Fashion Consciousness

Consumer Style Inventory (CSI) was conceptualized by Sproles and Kendall (1986), which is an early effort to systematically measure shopping orientations by applying decision-making orientations. It was originally contained 50 items to measure the general customer’s orientations towards shopping, and later, thanks to Sproles and Kendall, the CSI was developed in a short-form scale with 40 items which validated from a sample of US high school students. Novelty fashion consciousness is one in eight dimensions, together with Perfectionism (high-quality consciousness), Brand consciousness, Recreational (hedonistic shopping consciousness), Price consciousness, Impulsiveness and Confusion from over choice. As defined by Sproles and Kendall (1986), Novelty -Fashion Consciousness (NFC) is a characteristic that describes individuals who are fashionable with novelty conscious and love to experience new things. These customers always seek for new fashions and fads with excitement and pleasure. For them, it is necessary to be up-to-date with styles and be trendy.

2.1.5. Consumers Self- Spending Control

According to Haws and Bearden (2010), consumer self- spending control describes individuals having ability to regulate themselves from spending, or self- regulations in other words. Therefore, self-spending control relates to the consumers’ decision of controlling their financial budget and can be explained in terms of some responses such as thoughts (e.g. by discarding undesirable thoughts or putting oneself into concentration), altering emotions, control over impulsiveness and changing performances. However, there has an example of a person which self -control is high

26

finds difficulties in regulate spending while another person with average self-control could become an extremely well-managed financial. That can only be explained in the way consumers’ decision on self-allocating their financial budget. 2.1.6. Level of Impulse Buying Early marketing literature defined impulse buying in a simple way as unplanned purchasing (Cobb and Hoyer, 1986). However, as discussed by Rook (1987), impulse buying occurs when a consumer experiences a sudden, often powerful and persistent urge to buy something immediately”. In other words, impulse buying can be understood as an immediate and sudden purchase behavior with no thoughtful or future implications before. Also, impulse buyers are claimed to have unreflective thinking, which is prompted by physical proximity to a desired product, dominated by emotional attraction to it, and absorbed by the promise of immediate gratification”. (Hoch and Loewenstein, 1991; Thompson, Locander, and Pollio, 1990). Therefore, these kinds of consumers are likely to act without carefully hesitation in mind and have quick response to their impulse purchase. In negative speaking, impulse buying can be almost entirely driven by stimulus, which is translated directly into an unconditional response. Regarding above definition of terms, it can be seen that it was expected to have relationships between impulse buying and the other independent factors such as optimum stimulation level, hedonic purchase, consumer’s need for uniqueness, novelty- fashion consciousness and consumer self-spending control. However, there was no previous theoretical framework that transform these independent factors above into the proposed framework, which cause direct impact on the impulse buying. In this case, only exhibiting definition was not enough to create rational writing and propose hypotheses. Therefore, next part will focus on discussing the relationships between independent and dependent factors before proposing a theoretical framework for this research study.

27

2.2. Research Hypotheses

2.2.1. Relationship between Optimum Stimulation Level and Level of Impulse

Buying

As discussed by Raju, (1980), Steenkamp and Baumgartner (1992), individuals with high Optimum Stimulation Level (OSL) have lower arousal level which encourages them to seek for activities in order to reach their desired stimulation level. Thus, individuals having low arousal level will tend to have indulgence in impulse buying since the extra stimulation that high OSL individuals need to achieve their OSL would be provided. It is consistent with the general theory of Eysenck (1993) that inconsiderate, impatient, risk-taking, sensation-seeking and pleasure seeking are some attributes that describes an individual with low arousal level (Dickman, 2000). Lastly, almost all of the purchasers’ characteristics related to impulse buying or optimum stimulation level (Baumgartner and Steenkamp, 1996) are likely to derive from isolated personal attribute defined as impulsivity (Eysenck, 1993) or impulsive sensation seeking (Zuckerman, 1993). Therefore, this research expects OSL to have a great impact on impulse buying, which means individuals with higher OSL will have higher possibility of falling into impulse purchase. A review of relative literature led to the subsequent hypothesis:

H1: Optimum Stimulation Level has significant positive influence on Level of Impulse Buying.

2.2.2. Relationship between Hedonic Purchase and Level of Impulse Buying

As Engel and Blackwell (1982), impulse buying is described as an action undertaken without having consciousness or intention before entering the store. As defined by Bayley and Nancarrow (1998), “hedonic purchase is marked with pleasure; in contrast to the utilitarian behavior where the shoppers seek for functional benefits and economic value in the shopping process”. In addition, a research conducted by Sharma et al. (2010) classified impulse buying as a hedonic behavior that is incorporated with feelings and psychosocial incitements without concentrating on functional benefits.

28

Based upon the different description, we conclude that impulse buying involves hedonic purchase decisions which are made inside a store and excludes the reminder purchasing activities. Besides, research by Beatty and Ferrell (1998) demonstrates that impulse purchasing is incorporated with sensory stimulation and hedonic motivation. Recently, as suggested by Yu and Bastin (2010), shopping value of a person result in impulse purchase and are inseparably associate with each other. Thus, thanks to the support from relevant literature, we suggest the hypothesis as follows:

H2: Hedonic Purchase has significant positive influence on Level of Impulse Buying. 2.2.3. Relationship between Consumer’s Need for Uniqueness and Level of Impulse Buying As Tian et al. (2001), “Consumer’s need for uniqueness (CNFU) allows individuals to enjoy improved self- and social-image”. Besides, “consumers’ image is enhanced internally and externally through the use of products when they recognize some symbolic meanings in these products(Tian and Mckenzie, 2001). Moreover, as cited by Dee& Eun Young (2007), new products or brands can be acquired more rapidly by purchasers, who have greater demand of distinction, comparing with those who have that demand at a lower level. This means that these kinds of customers do not hesitate to spend money on seeking items which can differentiate them from others. Since it may cost lots of time to find stuffs with unique features, these customers may fall into impulse purchase whenever they find suitable accessories that best suit for their clothes. Besides, people with high need for uniqueness may purchase more new arrivals than others. In short, it can be inferred that consumer’s need for uniqueness has a positive relationship with impulse buying, which individuals having higher need for uniqueness will have higher level of impulse buying in other words. Thus, the study proposes H3 as follows:

H3: Consumer’s Need for Uniqueness has significant positive influence on the Level of Impulse Buying.

29

2.2.4.

Relationship between Novelty Fashion Consciousness and Level of

Impulse Buying As simply defined by Bae (2004), Novelty fashion consciousness describes a shopper who is always aware of new styles while impulse buyers are labeled as individuals’ tendency to have spontaneous, unreflective, immediate and kinetic buying motives. As fully stated above, buyers with high level of impulse will have faster approach to buying ideas and have “opening” shopping lists at any time. Thus, it can be inferred that buyers with novelty-fashion consciousness are likely to experience impulse purchase. Additionally, in 1986, Sproles and Kendall together developed a consumer decision-making style inventory (CSI), which helps define and evaluate eight mental traits of consumer in decision making. Among eight consumer’s characteristics, novelty fashion consciousness and impulsiveness are mentioned as traits which have greater impact towards consumption. Accordingly, it could be said that there has a positive relationship between Novelty Fashion Consciousness and Level of Impulse Buying, which consumers who have high novelty and fashion consciousness will easily get involves with impulse buying and vice versa. Therefore, this study proposes H5 as follows:

H4: Novelty Fashion Consciousness has significant positive influence on Level of Impulse Buying.

2.2.5. Relationship between Consumer Self-Spending Control and Level of

Impulse Buying Previous studies suggested that the concept of self-control affects the level of impulse buying, which its central theme underlies impulse buying on many recent research (Baumeister 2002; Faber and Vohs, 2004). Additionally, research by Youn and Faber (2000) also demonstrates that impulse buying has its origin from purchaser characteristic; for instant, impulsiveness and optimum stimulation level, shopping enjoyment, or lack of self-control. Originated from the survey of self-control issue and failure conducted by

30

Baumeister et al. (1994), development of the characteristic measurement for self-control has been carried out by Tangney and Baumeister (2001). For those researchers attracted by the first phase of analysis and evaluation of how self-control forecast purchaser reactions, it is considered as a supportive instrument for a variety of assessment from adjusting emotions, tracking and administering performances as well as impulses, sustaining self-control, escape from inadequate practices, and the like. As discussed by Romal and Kaplan (1995), individuals having greater self-control administer their finance more appropriate than the others as well as preserving more and expending less. Regarding above differences, the ability of being able to receive stimuli to various kind of marketing strategies can be forecasted by self-control. Individuals having low self-control is unprotected to be attracted by the moment, and a sales pitch focusing on instantaneous satisfaction would be engaging. On the other hand, individuals having greater self-control persuasively consider long-term value and advantages before purchasing. Low self-control person tends to respond in a way as “You will look and feel great in this car”. Conversely, “This car will be reliable and durable and will have a high resale value” tends to be the consideration of people having high self-control. Thus, impulse buying occurs when the desire of customers for a product beats their intentions to avoid purchasing. This indicates that the need to purchase and the capability of self- control are two discrete procedures taken into account with impulse buying. In summary, the purchaser having low self-control tends to have impulse buying practice, and vice versa. Accordingly, for those who have lower purchaser self- control, a conclusion can be withdrawn that those individual will repeat impulse buying practice, having high optimum stimulation level and the requirement for being distinct as well as hedonic purchase behavior. Therefore, we can come up with the following hypothesis is proposed:

H5: Consumer’s Need for Uniqueness has significant negative influence on Level of Impulse Buying.

31

2.3. Research Model To sum up, all of the hypotheses above will be presented in the theoretical

framework for this study which is shown in the figure below:

framework for this study which is shown in the figure below: Figure 2: Research Model H1:

Figure 2: Research Model

H1: Optimum Stimulation Level has significant positive impact on Level of Impulse

buying.

H2: Hedonic Purchase has significant positive impact on Level of Impulse buying.

32

H3: Consumer’s Need for Uniqueness has significant positive impact on Level of Impulse buying. H4: Novelty Fashion Consciousness has significant positive impact on Level of Impulse buying. H5: Consumer Self-Spending Control has significant negative impact on Level of Impulse buying.

33

CHAPTER III RESEARCH METHODOLOGY

This chapter aims to present about the research design that consist of research approach, questionnaire design and sampling technique. Moreover, data analysis method is also explain in details in this chapter.

3.1. Nature of the Research

According to Strauss and Corbin (1998), an academic research can be approached by various methods. However, this section tends to introduce briefly about some well-known methods and explain for the methods used in this study research. There are two different kind of research, which are inductive and deductive research. If the process of inductive research starts with the gathering data, then looking for patterns in the data and end up with developing a theory that could give explanations on these patterns, researchers that apply deductive research begins examining a pre-

existing theories and testing its association with data. In other words, while inductive research goes from data to build theories, deductive research involves with investigating data and testing hypotheses derived from existed theories. Accordingly, this research study applies deductive research.

3.2. Research Method

As stated by Spencer, Ritchie and O’Connor (2004), there are two kinds of methodologies used in study research to gain knowledge in social contexts which are qualitative and quantitative research method. While quantitative research is expounded as

a set of statistical and numerical data and is explained based on research with a wide range of variables on a large number of factors, qualitative methodology deals with non- numerical data. These methodologies are used with purpose of achieving “a better

34

understanding of the surrounding society as well as better comprehension of how individuals, groups and institutions act and influence one another”. (Sogunro, 2001). Qualitative research is mainly viewed as exploratory research. It is applied to achieve an understanding of casual reasons, ideas and stimuli. It delivers perceptions into the problem or supports to develop hypotheses for prospective quantitative approach. Besides, it is used to discover trends in thought as well as opinions, and provides researchers a deeper look into problems. Thus, the main purpose of this method is to gain “a deeper understanding of a specific phenomenon” instead of “drawing general conclusion about the situations” (Lundahl and Skärvad, 1999; Strauss and Corbin, 1998). Qualitative research mainly concentrates on quality and prejudice a social practices. Some common methods of qualitative research can be listed as focus group (or group discussion in other words), individual interviews and participant observations. Moreover, the sample size to conduct qualitative research is usually small and the respondents are well designated to satisfy a given quota. Comparing to qualitative method, quantitative method is more formalized, and is utilized to measure to measure with regard to the quantity of the issue by initiating numerical data or data which can be transfigured into usable statistics. Besides, it also used to measure attitudes, viewpoints, behaviors and other determined variables, then results from a greater sample population. Facts and exposed models in research can be formulated by measurable data utilized by quantitative research. Additionally, collection methods of quantitative data are more organized in a close order compared with qualitative data collection methods. On the other hand, quantitative data collection methods incorporate with a wide variety of surveys, from online and paper surveys to mobile and kiosk surveys, as well as direct interviews or telephone interview, long- distance studies, website interceptors, online polls, and structured monitoring. To sum up, in quantitative method, few variables are examined on a greater number of entities (Neuman, 2006).

35

In summary, for the purpose of getting solutions from enquiry hour numerical proof, quantitative research should be applied; on the other hand, for the aim of clarifying the occurrence of particular event, or explain the reason of any particular phenomenon, then qualitative research may applied.

3.3. Data Collection Method

There are two ways to collect data: primary and secondary sources. While primary data is defined as original data that collected first hand for a specific study research; secondary data is data that already existed and accumulated for another uses before conducting the study research. (Tull and Hawkins, 1993; Yin, 1994). Saving cost and time are the two biggest advantage of secondary data in the process of data collection in comparison with primary data. Nevertheless, since secondary data has been gathered for various different purposes, its content might not well suitable with the current requirements of the researchers (Hair et al., 2003; Yin, 1994). Thus, regarding above reasons, this study is conducted by collecting data from primary source.

3.4. Research Design

In this part, the process chart will be used to summarize the main steps of research design. There has 8 steps in total, which starts from Data collection and ends up in Data analysis.

36

Data Collection Research Question Research Model Sampling Design Questionnaire Design Pilot Test Data Procedure
Data Collection
Research Question
Research Model
Sampling Design
Questionnaire Design
Pilot Test
Data Procedure
Data Analysis
Data Analysis

Figure 3: Main Steps of Research Design

37

3.5. Sampling Design

3.5.1. Sample Size

Exploratory Factor Analysis is applied in this research study, thus, variables should follow the standard ratio which is 5:1 (with 5 respondents answering for 1 item) in

EFA (Gorsuch, 1983 and Hatcher, 1994). This questionnaire consists of 39 items, thus, the sample size must reach at least 195 to be qualified. Furthermore, as proposed by Comfrey and Lee (1992), the sample size of 50, 100, 200, 300 can generate a very poor, poor, fair and good research outcomes correspondingly. Accordingly, the sample size of 320 is chosen to ensure the good result for the research study.

3.5.2 Sampling Technique Due to the lack of time, budget and human resources, non probability sampling was chosen among the sampling methods. Specifically, there are two kinds of sampling technique applied that are convenient sampling and snowball sampling. As defined by Cooper and Schindler (2006), convenient sampling is a “non-probability sampling where researchers use any readily available individuals as participants”. It is obvious that using convenient sampling is a reasonable and practical choice of investigators to approach the objects. Besides, snowball method is also applied in this study thanks to its convenience in reaching a large sample of respondents regardless of limited time, which mostly based on the researcher’s relationship or acquaintances. In other words, this method allows researchers utilized their network relationship to reach a wider target participants in order to gain more unbiased results.

3.5.3. Sampling Locations

Since the research topic covers the impulse buying in fashion malls in Ho Chi Minh City, it is a must to collect data in shopping malls to ensure the quality of the data

as well as avoid bias. Besides, almost buyers couldn’t remember whether they did make an impulse purchase or not if they weren’t at shopping malls at the time they were asked, thus, most of the data should be collected in hand at the malls. However, due to the limit of time and geographical barriers, four well-known shopping malls were chosen as

38

sampling locations, which are Diamond Plaza, Vincom Center, Parkson Hung Vuong and Cresent Mall. These fashion malls not only have ideal geographic locations but also are famous for the huge attraction of shopping buyers every day. While Diamond Plaza and Vincom Center are placed at the most crowded streets in District 1 the central business district of the city; Parkson Hung Vuong is in the center of District 5, which is one of the most districts have highest population in Ho Chi Minh city. Besides, Cresent Mall in District 7 is considered as the most potential shopping malls among all since it was built in the high standard of residential area (Phu My Hung metropolitan) where concentrates most of the senior classes of the society. Most of people living in District 7 have high to very high income, thus, they are believed to be indulged in hedonic consumption as well as impulse buying. In short, fashion malls are the most suitable choices to conduct research toward impulse buying among consumers, especially those living in such a dynamic and modern city like Ho Chi Minh City. Exact number of data collected will be well- discussed in the Data collection procedure. The next part will mention about the Questionnaire Design. 3.6. Questionnaire Design According to Churchill and Iacobucci (2006); Hair et al. (1998); Hair et al. (2006), there are 3 most widely used measurement scale in social sciences, including nominal, ordinal, interval or ratio. Apart from the nominal scales or demographic questions in other words, interval scales are mainly adapted in this research study since this scale is common applied in the field of academic marketing research thanks to its optimization in multivariate statistical techniques (Hair et al. 1998; Tull and Hawkins 1993). Besides, due to its fitness, Likert scale (Rensis Likert, 1932) is adopted for this research.

“The Likert Scale, developed by Rensis Likert, is the most frequently used variation of the summated rating scale”, cited by Cooper et al. (2006). In the Likert scale, if the scale is too small or too large, the differences may not be seen clearly or

39

respondents may find it difficult to discriminate, respectively. Thus, various discussions have been carried out to decide the optimal number to best classify for the Likert scale. As argued by Green and Rao (1970), six or seven point scale is acceptable. Conversely, Ghiselli (1955) stated that we should develop the scale based on the diverse sets of circumstances. In this research study, a five-point scale (from 1 = Totally Disagree to 5 = Totally Agree) is applied in which the participants are required to give their level of agreement among these 5 scales. Besides, the questionnaire consists of two main parts. The first part focuses on the groups of factors which are 5 independent variables and 1 dependent variable. The second part concentrates on demographic questions to gather personal information of impulse buyers. As presented clearly above, all items were measured by a five-point Likert scale, anchored by 1: totally disagree and 5: totally agree. Table 2: Measurement Items for the Research Model

Construct

Sub- Scale

Item

Measurement

Reference

   

OSL1

I

like to experience novelty

 

and change in daily routine.

Baumgartner

OSL2

am continually seeking new ideas and experiences.

I

and

OPTIMUM

Steenkamp,

STIMULATION

OSL3

like continually changing activities.

I

(1996)

LEVEL

OSL4

When things get boring, I like to try something different.

   

HP1

Shopping to me is truly a joy.

 

HP2

I

shop not because I have to,

40

     

but because I want to.

 

HP3

The time spent in shopping is truly enjoyable to me.

HP4

I

enjoy being immersed in

Babin et al.

exciting new products while

(1994).

shopping.

HP5

I

enjoy shopping for its own

sake and not because of that I

need to purchase something.

HEDONIC

HP6

While shopping I can feel the excitement of the hunt.

PURCHASE

HP7

While shopping, I am able to forget my other problems.

HP8

While shopping I feel a sense of adventure.

HP9

Any shopping is a very nice time out to me.

 

Avoidance

CNU1

stop wearing fashions when they become popular with the general public.

I

 

CNU2

dislike brands bought by everyone.

I

of

similarity

   
 

CNU3

When a sport-wear brand becomes too popular, I wear it less.

Snyder and

Fromkin

 

CNU4

I

look for one-of-a-kind

(1977)

CONSUMER’S

products to create my own

41

NEED FOR

   

style.

 

UNIQUENESS

Unpopular

CNU5

The thing that I buy shapes a more unusual personal image.

choice

CNU6

I

buy unusual brands to

 

create a more distinctive personal image.

Creative

CNU7

An important goal is to find a brand that communicates my uniqueness.

choice

CNU8

The brands that I like best are the ones that express my individuality.

   

NFC1

I

usually have one or more

 

NOVELTY

outfits of the very newest style.

 

Sproles

FASHION CONSCIOUSNESS

(1985) &

NFC2

keep my wardrobe up to- date with the changing fashions.

I

Kendall

 

(1986)

NFC3

Fashionable, attractive styling is very important to me.

NFC4

To

get

variety,

I

shop

different stores and choose different brands.

   

CSC1

am able to work effectively toward long term financial

I

 

42

   

goals.

 

CSC2

carefully consider my needs before making purchases.

I

CSC3

often delay taking action until I have carefully

I

 

Kelly L.

CONSUMER SELF - SPENDING CONTROL

Haws,

considered the consequences

William O.

of

my purchase decisions.

 

Bearden and

 

CSC4

When I go out with friends, I keep track of what I am spending.

Gergana Y.

Nenkov

(2010)

CSC5

I

am able to resist temptation

in

order to achieve my

 

budget goals.

 

CSC6

I

know when to say when

 

regarding how much I spend.

CSC7

In social situations, I am generally aware of what I am spending.

CSC8

Having objectives related to spending is important to me.

 

IB1

When go shopping, I buy

 

things that I had not intended

to

purchase.

IMPULSE BUYING

IB2

am a person who makes unplanned purchases.

I

IB3

It

is

fun

to

buy

Beatty and

spontaneously.

 

Ferrell

43

IB4

When I bought (the item), I felt a spontaneous urge to buy it.

(1998)

IB5

When I saw (the item), I just couldn't resist buying it.

3.7. Pilot Study

According to Cavana et al. (2001), a pilot test should be conducted with a reasonable sample size to test the comprehensiveness and possibility of the survey. Thus, 90 respondents including teaching assistants and staff at ILA an English center in Ho Chi Minh City as well as a part of International University’s students were invited to participate in this pilot test. In specific, 15 out of 90 surveys were given directly to the ILA’s teaching assistants during two weeks, then 10 of them were continually delivered to the staffs working at this center in the next weekends. At the same time, the data were collected in the two Psychology classes of Dr. Bui Quang Thong on Tuesday and Thursday, which the main respondents are International University’ students and the number of surveys returned was 43. The rest questionnaires were 22, and it were given face-to-face to the students of Organizational Behavior class on Friday of Dr. Mai Ngoc Khuong. The process of collecting data for doing pilot test ended up at 90 respondents. Although this sample size was not large enough to run the main data analysis, it still brought an overview of how the questionnaires were designed and check the level of understanding of respondents. In other words, it cannot deny that the result of the pilot test not only pointed out misunderstandings in questionnaires but also showed partly of

the result of the upcoming test. Thanks to that, the questionnaire can be designed again to avoid ambiguity or confusion caused from respondents in a more convenient way.

3.8. Data Collection Procedure

This study aims of targeting the potential consumers toward clothing products, especially who did have impulse purchase in the past. Since the consumer’s buying

44

behavior is complicated, the research targets this group of respondents with purpose of having better understanding on this segmentation as well as giving suitable implication management for fashion industry. As presented clearly above, in order to avoid bias, questionnaires were spread out mostly in the fashion malls. By giving directly to respondents and asking for fulfilling the paper questionnaire, there are 196 out of 355 surveys were delivered in these four fashion malls in total. Specifically, 35 data were collected in Diamond Plaza, 42 in Vincom Center, 58 in Parkson Hung Vuong and 61 data went from Cresent Mall. The respondents from this channel varies from students to executives, but most of them were planning to buy clothing products or related accessorizes at the time they were asked. Thus, this method of collecting data can be said in confidence that it has brought an objective result toward consumer buying behavior. However, to reach the target sample size, data has to be gathered via online channel and some other offline locations apart from shopping malls. Thus, 159 surveys left had been collected from online channel and other offline approaches. Firstly, for the online approach, Google Form was used to build online survey. The researcher can distribute this online survey via social networks or emails then collect data from the “View Response” column. In details, there were 100 responses within a week after spreading out the online questionnaires. Obviously, the rest of surveys went from other offline channels besides the fashion malls which will be discussed clearly as below.

About the respondents’ occupation, in specific speaking, the total of respondents for both online and offline channels was 355, and 210 out of them were students from Vietnam National University such as University of Technology, University of Social Sciences, University of Social Sciences and Humanities, University of Economics and Laws as well as International University. Constantly, 74 data were collected among students from other universities and colleges such as Foreign Trade University, RMIT University, Hoa Sen University and the National College of Education

45

of Ho Chi Minh City. As can be recognized, most of respondents in this study were college and university students, which also were the young people with high fashion consciousness and high frequency of visiting shopping malls. Thus, students are the main respondents of this research paper, which were approached equally by both online and offline channels. Besides, offline participants also reached to office workers, housewives and executives (teachers, doctors, engineers, etc.). Apart from respondents reached through fashion malls, the researcher also sought for more in other offline sources. Firstly, since the researcher both have mother and father working as teachers in Nguyen Tri Phuong secondary high school and Tran Boi Co secondary high school, 23 paper questionnaires were delivered face-to-face to their colleagues within 4 days. Lastly, 48 surveys left went to parents who currently have students studying in ILA English center. The very small part of them are executives while almost they are working as office worker in companies or housewives/ retailers. In short, it took more than half of two weeks to complete collecting data from these participants. Generally, the whole data procedure needs nearly a month to be finished. Exact figures will be calculated and presented clearly in descriptive statistics part in the following chapter, thus, the next section will introduce about how the data were analyzed. 3.9. Data Analysis Method SPSS statistical software was used to analyze collected data in this research. Analyzed contents were categorized into descriptive statistics, reliability, validity, correlation, and AMOS model testing. With the usage of SPSS software, a two-step approach in structural equation modeling (SEM) was employed to analyze the data (Anderson and Gerbing, 1988) by using AMOS (adds-on SPSS). Beside, to test the validity and reliability of the data, Cronbach’s Alpha was applied also. Additionally, we ran Factor analysis (Exploratory Factor Analysis EFA) to attain the amount of factors that would give explanation on the maximum variance in the data. Lastly, Confirmatory factor analysis (CFA) was performed to validate the measures

46

and SEM was used to test the theoretical model. As explained by Anderson and Gerbing (1988), CFA should be adapted firstly to check the quality of the measurement structure. It could be inferred that any measurement problems existing in the measurement model would be leftover to avoid impact on the overall model fit in SEM. Then, SEM analysis was used to estimate the fitness of the desire model. Moreover, this research utilize the demographic analysis and descriptive statistics.

47

CHAPTER IV DATA ANALYSIS AND FINDINGS

4.1. Sample Demographic

4.1.1. Response Rate

In this study, there has 355 responses were approached directly through online surveys and paper questionnaires. However, there were 320 out of 355 returned with acceptable and valid quality after deleting 35 unreliable answers from respondents. It also means that among 355 respondents, there were 320 of them qualified the criteria to become right subjects for this study. Invalid responses are excluded since the respondents had misunderstanding with reversed scale questions or left blank the require questions. As a result, the response rate is about 90% in which the analysis based on.

Table 3: Valid Response Rate

 

FREQUENCY

PERCENTAGE

INVALID

35

9.86

VALID

320

90.14

4.1.2. Demographic Analysis

In this part, the data of respondent profiles were summarized into important categories such as gender, age, occupation and monthly income with purpose of

classifying the group of customers. Table 4: Demographic Information

 

DETAIL

FREQUENCY

PERCENTAGE

 

Male

111

34.7

GENDER

Female

209

65.3

48

 

15

18

7

2.2

AGE

19

30

302

94.4

31

40

9

2.8

> 40

2

0.6

 

Students

266

83.1

Office Executive

36

11.3

Retailer/ Housewife

2

0.6

OCCUPATION

Executive (Engineer, Doctor, Teacher)

5

1.6

Others

11

3.4

 

<3 million VND

194

60.6

INCOME

3 7 million VND

79

24.7

8 15 million VND

31

9.7

> 15 million VND

16

5

4.1.2.1. Gender

8 – 15 million VND 31 9.7 > 15 million VND 16 5 4.1.2.1. Gender Figure

Figure 4: Gender Percentage

49

The pie chart indicates about the ratio of the two gender among the respondents in this study. It can be seen clearly that the percentage is higher in female buyers with nearly 65.4% while it only takes approximately 34.7% in male. Obviously, it can be concluded that female customers more potential than male since they have strong interest in fashion industry as well as impulse buying in the field of this research study. 4.1.2.2. Age

buying in the field of this research study. 4.1.2.2. Age Figure 5: Age Group Percentage The

Figure 5: Age Group Percentage

The diagram shows the percentage of respondents’ age group. According from this, the highest percentage of the age group lies in the range from 19 30 years old with the proportion up to 94%. As can be explained, 19 30 is the age group that buyers are usually concerned about fashion trend and easily have impulse purchase based on their financial budgets. Besides, 3% are buyers at the age of 31 40, 2% from 15 18 years old and there is only 1% of buyers with age over 40.

50

4.1.2.3. Occupation

4.1.2.3. Occupation Figure 6: Occupation Percentage Figure 6 demonstrates the percentage of occupation of the respondents.

Figure 6: Occupation Percentage

Figure 6 demonstrates the percentage of occupation of the respondents. There are 83% are students, 11% of office executive (including ILA’s staffs and other officers), 2% are retailers and housewives, 1% are executives which are engineers, doctors, teachers and the others job accounts for 3%.

51

4.1.2.4. Income

4.1.2.4. Income Figure 7: Income Percentage Generally, the lower – middle income accounts for 60% of

Figure 7: Income Percentage

Generally, the lower middle income accounts for 60% of the total respondents and is the highest income among the 3 groups. It can be explained that the students are the largest respondents, thus, the income level of these students usually ranges from under to 3 million VND. Besides, middle income level (3 7 million VND) takes the second place with 25%, upper middle income level (8 15 million VND) lies in third place with 10% and the high income level (> 15 million VND) has the lowest proportion with only 5%. 4.2. Descriptive Statistics To gain a preliminary understanding about the data, Descriptive statistics are used as the first statistical step that must be conducted. In the descriptive statistics table, min, max, mean and standard deviation are calculated to describe the characteristics of collected data. While mean helps reveal the central tendency of distribution, standard deviation is a measure of dispersion in a frequency distribution. Therefore, according to the definition, a low standard deviation means that most of the numbers are very close to the mean, and vice versa.

52

4.2.1.

Descriptive Statistics of Optimal Stimulation Level

Table 5: Descriptive Statistics of Optimum Stimulation Level

 

Mean

Std.

Average

Deviation

Mean

OSL1 (I like to experience novelty and change in daily routine).

3.96

0.91

 

OSL2 (I am continually seeking new ideas and experiences).

3.97

0.89

3.83

OSL3 (I like continually changing activities).

 

3.41

0.96

OSL4 (When

things

get

boring,

I

like

to

try

3.99

0.85

something different).

 

Valid N (listwise): 320

       

The table shows that the average means among these items of Optimum Stimulation Level ranges from 3.41 to 3.99. Therefore, the means in these items are very close to each other. The item OSL1, OSL2 and OSL4 with the very high means value which are 3.96, 3.97 and 3.99 respectively shows that the customers’ opinions towards these 3 items are quite similar. Although the OSL3 (I like continually changing activities) gains the lowest mean value among the three, its mean value still is an average value compares to the standard. Finally, the average mean of all items is 3.83, which is very high reveals that most of respondent agree with all the items of Optimum Stimulation Level.

4.2.2. Descriptive Statistics of Hedonic Purchase

Table 6: Descriptive Statistics of Hedonic Purchase

Mean

Std.

Average

Deviation

Mean

53

HP1 (Shopping to me is truly a joy).

3.91

1.03

 

HP2 (I shop not because I have to, but because I want to).

3.19

1.18

HP3 (The time spent in shopping is truly enjoyable to me).

3.71

1.1

HP4 (I enjoy being immersed in exciting new products while shopping).

3.48

1.22

HP5 (I enjoy shopping for its own sake and not because of that I need to purchase something).

2.92

1.18

3.35

HP6 (While shopping I can feel the excitement of the hunt).

3.73

1.05

HP7 (While shopping, I am able to forget my other problems).

3.05

1.22

HP8 (While shopping I feel a sense of adventure).

2.98

1.17

HP9 (Any shopping is a very nice time out to me).

3.22

1.19

Valid N (listwise): 320

     

In general, it could be concluded that the respondents hold a neutral attitudes toward this factor due to the average mean value of total items (3.35). In specific, all of the items of Hedonic Purchase have mean values ranging from 2.92 to 3.91, which means there has a huge gap among variables. While HP1 (Shopping to me is truly a joy) stands out as a promising item with highest mean value (3.91), HP5 (I enjoy shopping for its own sake and not because of that I need to purchase something) does not receive many agree answers from respondents when having the lowest mean value (2.92). 4.2.3. Descriptive Statistics of Consumer’s Need for Uniqueness (in sub - dimensions)

54

Table 7: Descriptive Statistics of Consumer's Need for Uniqueness's sub- dimensions

 

Mean

Std.

Average

Deviation

Mean

CNU1 (I stop wearing fashions when they become popular with the general public).

2.64

1.14

 

CNU2 (I dislike brands bought by everyone).

2.76

1.16

CNU3 (When a sport-wear brand becomes too popular, I wear it less).

2.75

1.14

CNU4 (I look for one-of-a-kind products to create my own style).

3.13

1.16

CNU5 (The thing that I buy shapes a more unusual personal image).

3.17

0.99

CNU6 (I buy unusual brands to create a more distinctive personal image).

2.85

1.12

CNU7 (An important goal is to find a brand that communicates my uniqueness).

3.34

1.09

3.02

CNU8 (The brands that I like best are the ones that express my individuality).

3.52

1.04

Valid N (listwise): 320

     

Table 7 continually gives us information about descriptive statistics of 8 items in Consumer’s Need for Uniqueness. The item CNU8 (The brands that I like best are the ones that express my individuality) achieves the highest mean value with 3.52 and is considered as the most agreeable item by respondents. In contrast, the item CNU1 (I stop wearing fashions when they become popular with the general public) reaches the lowest

55

value for mean (2.64). Finally, the average mean (3.02) proves that the consumers have the neutral attitude towards this factor. 4.2.4. Descriptive Statistics of Novelty Fashion Consciousness Table 8: Descriptive Statistics of Novelty-Fashion Consciousness

 

Mean

Std.

Average

Deviation

Mean

NFC1 (I usually have one or more outfits of the very newest style).

2.87

1.12

 

NFC2 (I keep my wardrobe up to-date with the changing fashions).

2.78

1.11

3.05

NFC3 (Fashionable, attractive styling is very important to me).

3.05

1.16

NFC4 (To get variety, I shop different stores and choose different brands).

3.49

1.11

Valid N (listwise): 320

     

There are 4 items in the Novelty fashion conscious (NFC) and this table presents the result of NFC dimensions after running descriptive statistics calculation. In general speaking, there is a huge gap between the highest and the lowest mean value. According to the result, item NFC4 (To get variety, I shop different stores and choose different brands) reaches the highest mean value with 3.49 among all items. On the contrary, the lowest one is NFC2 (I keep my wardrobe up to-date with the changing fashions) with 2.78. The next two mean values are 2.87 and 3.05 which go to item NFC1 (I usually have one or more outfits of the very newest style) and NFC4 (To get variety, I shop different stores and choose different brands) respectively. In short, it can be seen clearly that consumers care most about the variety in expressing their novelty fashion consciousness but care less about changing their wardrobe up on fashion trend.

56

4.2.5. Descriptive Statistics of Consumer Self-Spending Control Table 9: Descriptive Statistics of Consumer Self-Spending Control

 

Mean

Std.

Average

Deviation

Mean

CSC1 (I closely monitor my spending behavior).

3.49

0.98

 

CSC2 (I am able to work effectively toward long term financial goals).

3.35

1.01

CSC3

(I

carefully

consider

my

needs

before

3.76

0.94

making purchases).

 

CSC4 (I often delay taking action until I have carefully considered the consequences of my purchase decisions).

3.61

0.96

3.49

CSC5 (When I go out with friends, I keep track of what I am spending).

3.36

1.04

CSC6 (I am able to resist temptation in order to achieve my budget goals).

3.32

1.11

CSC7 (I know when to say when regarding how much I spend).

3.12

1.14

CSC8 (In social situations, I am generally aware of what I am spending).

3.74

0.86

CSC9 (Having objectives related to spending is important to me).

3.69

0.88

Valid N (listwise): 320

       

In general speaking, the mean values of all items of Consumer Self Spending Control are in the ranges from 3.12 to 3.76 which proves that the level of agreement from respondents is quite high. In specific, the highest mean value equals 3.76, which belongs to item CSC3 (I carefully consider my needs before making

57

purchases) and the lowest one equals 3.12 which goes to item CSC7 (I know when to say when regarding how much I spend).Therefore, it can be concluded that these items are important to the respondent. 4.2.6. Descriptive Statistics of Level of Impulse Buying Table 10: Descriptive Statistics of Level of Impulse Buying

 

Mean

Std.

Average

Deviation

Mean

IB1 (When go shopping, I buy things that I had not intended to purchase).

3.28

1.04

 

IB2

(I

am

a

person

who

makes

unplanned

2.85

1.15

purchases).

 

IB3 (It is fun to buy spontaneously).

 

3.39

1.1

3.2

IB4 (When I bought (the item), I felt a spontaneous urge to buy it).

3.43

1

IB5 (When I saw (the item), I just couldn't resist buying it).

3.03

1.03

Valid N (listwise): 320

       

Table 10 presents the descriptive statistics of level of impulse buying. Overall, 3.2 is the average mean value among these 5 items. The most agreeable items from respondents goes to item IB4 (When I bought (the item), I felt a spontaneous urge to buy it) thanks to the highest mean value (3.43). The least agreeable one is recorded for the item IB2 (I am a person who makes unplanned purchases) with lowest mean value (2.85). In short, the items of Level of Impulse buying receive high level of agreement from respondents due to the high average mean value. To sum up, all the means have the average value ranging from 2.51 to 3.83. Thanks to the descriptive statistics, the research paper can reveal partly the level of

58

agreement among respondents in HCMC which is illustrated in the Likert scales. Moreover, the standard deviation among these items ranges from 0.85 to 1.22, shows that the gap between them is quite small and very close to the mean. 4.3. Exploratory Factor Analysis (EFA) Exploratory factor analysis is a statistical method needed to determine underlying constructs for a large set of measured variables and identify the relationships among them. Besides, EFA can suggest some new possibilities of the output for further analysis. (Field, 2000; Rietveld & Van Hout, 1993). In reliability test, there are two factors needed which are: Item-to-total correlations and Cronbach’s alpha. Each will be explained in turn below. Next, underlying pattern of factors is determined in the EFA test. Furthermore, to check whether the correlations among the observed variables exist or not to run factor analysis, the significant level must be lower than 0.5 according to the Barlett's Test of Sphericity (Tabachnick & Fidell, 2007). Moreover, Kaiser-Meyer-Olkin (KMO) is used as a criterion to weight the EFA’s appropriateness and to ensure the satisfactory analysis, the KMO index should be achieved in the range of 0.5 and 1 (Kaiser, 1974). Finally, according to Hair et al. (1998), factor loading should be considered as a criterion to make sure the EFA’s practical significance, and the minimum level of factor loading is over 0.3. To be more detailed, the factor loading will be seen as significant if it is greater than 0.4 and practical significant if is larger than 0.3. 4.3.1. Reliability Analysis Reliability test is performed to measure the internal consistency of the construct. In other words, testing for reliability is to discover and remove failures before conducting factor analysis. Internal consistency is measured by Cronbach’s alpha, which is the most widely used method. According to George and Mallery (2003), the rule for Cronbach’s Alpha is stated as follows:

Table 11: Rules of Thumb for Evaluating Cronbach's Alpha

Cronbach’s Alpha < 0.5

Unacceptable

59

0.5

< Cronbach’s Alpha < 0.6

Poor

0.6 < Cronbach’s Alpha < 0.7

Acceptable

0.7

< Cronbach’s Alpha < 0.8

Good

Cronbach’s Alpha > 0.8

Excellent

However, Slater (1995) reported that Cronbach’s Alpha is acceptable when equals to 0.6. Besides, the rules have stated that if Cronbach’s Alpha if Item deleted is greater than the overall Cronbach’s Alpha and Corrected Item - Total Correlation is less than 0.3, the variable should be deleted from the list. The table below shows the results after conducting reliability test. Table 12: Corrected Item-to-Total Correlation and Cronbach's Alpha (First Round)

 

Before removing inappropriate items

 

No.

Factor

Initial

Corrected Items Total Correlation

Cronbach’s

Cronbach’s

Alpha If

Alpha

Items Deleted

Optimum Stimulation Level

 

1

OSL1 (I like to experience novelty and change in daily routine).

 

0.712

0.716

2

OSL2 (I am continually seeking new ideas and experiences).

0.648

0.748

3

OSL3 (I like continually changing activities).

0.808

0.588

0.779

4

OSL4 (When things get boring, I like to try something different).

0.557

0.790

Hedonic Purchase

 

60

5

HP1 (Shopping to me is truly a joy).

 

0.730

0.913

6

HP2 (I shop not because I have to, but because I want to).

0.747

0.911

7

HP3 (The time spent in shopping is truly enjoyable to me).

0.768

0.910

8

HP4 (I enjoy being immersed in exciting new products while shopping).

0.922

0.808

0.907

9

HP5 (I enjoy shopping for its own sake and not because of that I need to purchase something).

0.695

0.915

10

HP6 (While shopping I can feel the excitement of the hunt).

0.749

0.911

11

HP7 (While shopping, I am able to forget my other problems).

0.650

0.918

12

HP8 (While shopping I feel a sense of adventure).

0.610

0.920

13

HP9 (Any shopping is a very nice time out to me).

0.743

0.911

Consumer’s Need for Uniqueness

 

14

CNU1 (I stop wearing fashions when they become popular with the general public).

 

0.612

0.880

15

CNU2 (I dislike brands bought by everyone).

0.695

0.872

16

CNU3 (When a sport-wear brand

0.726

0.869

61

 

becomes too popular, I wear it less).

0.889

   

17

CNU4 (I look for one-of-a-kind products to create my own style).

0.706

0.871

18

CNU5 (The thing that

I buy

0.633

0.878

shapes a more unusual personal image).

19

CNU6 (I buy unusual brands to create a more distinctive personal image).

0.731

0.869

20

CNU7 (An important goal is to find a brand that communicates my uniqueness).

0.638

0.878

21

CNU8 (The brands that I like best are the ones that express my individuality).

0.561

0.885

Novelty Fashion Consciousness

 

22

NFC1 (I usually have one or more outfits of the very newest style).

 

0.674

0.787

23

NFC2 (I keep my wardrobe up

0.782

0.738

to-date with

the

changing

0.835

fashions).

 

24

NFC3 (Fashionable, attractive styling is very important to me).

0.665

0.791

25

NFC4

(To

get

variety,

I

shop

0.548

0.841

different stores different brands).

and

choose

62

Consumer Self-Spending Control

 

26

CSC1

(I

closely

monitor

my

 

0.645

0.867

spending behavior).

 

27

CSC2

(I

am

able

to

work

0.629

0.869

effectively

toward

 

long

term

financial goals).

 

28

CSC3 (I carefully consider my needs before making purchases).

0.668

0.866

29

CSC4 (I often delay taking action until I have carefully considered the consequences of my purchase decisions).

0.882

0.692

0.863

30

CSC5

(When

I

go

out with

0.609

0.871

friends, I keep track of what I am

spending).

 

31

CSC6

(I

am

able

to resist

0.663

0.866

temptation in order to achieve my budget goals).

32

CSC7 (I know when to say when regarding how much I spend).

0.573

0.875

33

CSC8 (In social situations, I am generally aware of what I am spending).

0.644

0.868

34

CSC9 (Having objectives related to spending is important to me).

0.556

0.875

Level of Impulse Buying

 

35

IB1 (When go shopping, I buy

 

0.672

0.796

63

 

things that I had not intended to purchase).

     

36

IB2 (I am a person who makes unplanned purchases).

0.838

0.632

0.808

37

IB3

(It

is

fun

to

buy

0.670

0.796

spontaneously).

 

38

IB4 (When I bought (the item), I felt a spontaneous urge to buy it).

0.654

0.802

39

IB5 (When I saw (the item), I just couldn't resist buying it).

0.576

0.822

As can be seen clearly in the table 12, within the initial reliability analysis, the Cronbach’s alpha of all the items above are higher than 0.8 and the item-to-total of correlation of all variables are higher than standard level (0.5), which means that all the scales have high internal consistency reliability. To be specific, the initial cronbach’s alpha of Optimum Stimulation Level, Hedonic Purchase, Consumer’s Need for Uniqueness, Novelty Fashion Consciousness, Consumer Self-Spending Control and Level of Impulse Buying are 0.808, 0.922, 0.889, 0.835, 0.882 and 0.838 respectively. Thus, there is not necessary to remove any items to help increase Cronbach’s alpha value for any factors. It can be claimed that the scales are well design and the respondents have clear understanding about the questions. 4.3.2. Factor Analysis After completing the reliability test, Factor analysis will be conducted to demonstrate the scale’s validity. In this study, Principal Component Analysis is used as a means of compressing and classifying data through Varimax rotation in the sample of observations. This method is able to make higher factor’s loadings become much higher and lower factor’s loadings become much lower. Besides, variables will be deleted if its loading is under 0.3. Furthermore, in case that items are loaded in many components, the

64

difference between them must be greater than 0.3 or they will also rejected. Next, second round of factor analysis will be run in order to define the new model structure. Additionally, the total variance extracted has to be equal or greater than 50%. In short, Kaiser-Meyer-Olkin and Barlett’s test with Varimax rotation and Principal Component Analysis extraction method will be conducted in this part. 4.3.2.1 EFA for Independent Variables Table 13: Rotated Component Matrix of Independent Variables

65

66
66

Table 14: KMO and Barlett's Test of Independent Variables

Table 14: KMO and Barlett's Test of Independent Variables As can be seen clearly from Table

As can be seen clearly from Table 13 that all the items are loaded on 5 columns with no items are on the same components. Moreover, the KMO value from Table 14 equals 0.891 (> 0.6) and the Bartlett test is significant (sig = 0.000). Thus, it can be concluded that the EFA is applicable.

67

Table 15: Total Variances Explained of Independent Variables

Table 15: Total Variances Explained of Independent Variables According from the table of Total Variance Explained,

According

from

the

table

of

Total

Variance

Explained,

the

result

of

Cumulative Rotation Sums of Squared Loadings equals 60.425% > 50%, which means that 5 extracted components may explain 60.425% of total variance in the 34 variables. 4.3.2.2 EFA for Dependent Variable

68

Table 16: Component Matrix of Dependent Variable

Table 16: Component Matrix of Dependent Variable According from the table 16, there is only one

According from the table 16, there is only one component extracted. Table 17: KMO and Bartlett’s Test of Dependent Variable

. Table 17 : KMO and Bartlett’s Test of Dependent Variable Table 18: Total Variance Explained

Table 18: Total Variance Explained of Dependent Variable

. Table 17 : KMO and Bartlett’s Test of Dependent Variable Table 18: Total Variance Explained

69

As can be seen clearly from the table 17, the KMO is 0.809 which greater than

0.5. Besides, total variance explained for the dependent variable equals 60.811% in Table

18 indicates that Cumulative explain 60.811% of total variance in 5 variables. With no

doubt, EFA is appropriate.

In conclusion, after running EFA, there is no items are eliminated from the

list. Next, before coming to Confirmatory Factor Analysis (CFA) to test the model

structure, it is important to detect potential outliers since they may indicate bad data and

reduce the quality of the model testing. However, multivariate outliers need to be

detected by specifying the numbers of suspected outliers exactly. Thus, the following part

will describe carefully how multivariate outliers were detected.

4.4. Detecting Multivariate Outliers

As defined by Sharif (2013), Multivariate outliers refer to sets of data points

that do not fit the standard sets of correlations exhibited by the other data points in the

dataset with regards to your causal model. By removing outliers, the results of data

analysis can change in a better way. Multivarite outliers can be detected by Mahalanobis

distance, which is described as a distance of a data point from the calculated centroid of

the other cases where the centroid is calculated as the intersection of the mean of the

variables being assessed”. (Mahalanobis, 1936).

As the rules of detecting outliers, high Mahalanobis d-squared values with

both p1 and p2 equal .000 and .000 are potential of outliers (then related cases may be

considered for deletion). Therefore, according from Table 19, cases 178, 179, 72, 182,

12, 208, 318, 169, 130, 197, 107, 275 were excluded at the same time. In total, there was

12 items that were deleted from the data file. Thus, the total responses left was 308.

Table 19: Observations Farthest from the Centroid (Mahalanobis Distance)

Observation number

Mahalanobis d-squared

p1

p2

178

92.963

.000

.001

179

91.538

.000

.000

72

90.567

.000

.000

70

Observation number

Mahalanobis d-squared

p1

p2

182

85.592

.000

.000

12

80.226

.000

.000

208

79.836

.000

.000

318

79.686

.000

.000

169

79.062

.000

.000

130

78.151

.000

.000

197

77.071

.000

.000

107

76.889

.000

.000

275

75.526

.000

.000

45

74.270

.001

.000

235

74.184

.001

.000

315

73.044

.001

.000

50

71.822

.001

.000

134

71.363

.001

.000

78

71.159

.001

.000

170

70.225

.002

.000

229

69.273

.002

.000

112

68.242

.003

.000

257

67.256

.003

.000

210

66.741

.004

.000

85

66.215

.004

.000

187

66.116

.004

.000

294

65.777

.005

.000

136

65.135

.005

.000

163

64.590

.006

.000

37

64.466

.006

.000

307

63.950

.007

.000

296

62.829

.009

.000

212

62.346

.010

.000

80

61.874

.011

.000

154

61.531

.012

.000

217

61.158

.013

.000

145

60.475

.015

.000

203

60.045

.017

.000

34

59.997

.017

.000

48

59.626

.018

.000

71

Observation number

Mahalanobis d-squared

p1

p2

153

59.550

.019

.000

177

59.453

.019

.000

133

59.193

.020

.000

41

58.854

.022

.000

120

58.684

.022

.000

109

58.035

.025

.000

181

57.966

.026

.000

155

57.925

.026

.000

9

57.845

.026

.000

226

57.741

.027

.000

99

57.442

.029

.000

106

57.029

.031

.000

101

56.321

.036

.000

119

55.758

.040

.000

232

55.588

.041

.000

295