Factors affecting Vietnamese consumers intention to purchase domestic product, in HOCHIMINH city - A case study in household electrical appliances industry

Abstract

The advent of globalization and integration creates lots of opportunity for Vietnamese economy’s development. However, because of the intensive competition of imported goods from reputed firms with famous brand-name and many Vietnamese government’s’ supports, the domestic product currently seem to be extremely hard to earn market shares. Therefore, it is necessary to investigate the factors influencing Vietnamese consumers’ purchase domestic products intention. The research was conducted in Ho Chi Minh City and in range of household electronic appliance industry to narrow the scope and lower the consumer’s bias of different kinds of products. Based on theories of customers’ behavior and previous researches, six independent variables including Patriotism, Nationalism, Animosity, Cultural openness, Perceived quality of imported products and Perceived price of domestic products; two mediators including Consumers’ Ethnocentrism and Perceived value of domestic products were taken to measure Vietnamese consumers’ purchase domestic products intention. However, the EFA step grouped Patriotism, Nationalism into the same component named Attitude towards Nation. At confidence level 90%, the finding also showed that Perceived price of domestic products is the most important factor affecting local consumers’ intention in buying Vietnamese products. Consumers’ Ethnocentrism and Perceived value of domestic products do well their responsibilities in building indirect relationships independent variables to dependent variable and had significant predictor and strong contribution for measuring consumers’ purchasing intention. This result is useful for domestic organizations to be conscious of the importance of factors affecting their customers’ intention and from that, marketers implement their marketing strategies. Keywords: Patriotism, Nationalism, Animosity, Cultural openness, Perceived quality of imported products, Perceived price of domestic products, Attitude towards Nation , Consumers’ Ethnocentrism and Perceived value of domestic products, Vietnamese consumers’ purchase domestic products intention.