Factors That Influence on the Purchase Intention of Samsung Smartphones in Vietnam

Contents

Literature draft:        2

Topic:        2

Introduction:        2

Objective:        2

Research questions:        2

Literature review:        2

Purchase intention:        2

Product feature:        3

Price:        3

Brand image:        4

Social influence:        5

Hypothesis:        6

Hypothesis 1:        7

Hypothesis 2:        7

Hypothesis 3:        7

Hypothesis 4:        7

Conceptual framework developed for the research purpose:        7

Research methods:        8

References        9

Literature draft:

Topic: Factors that influence on the purchase intention of Samsung Smartphones in Viet Nam.

Introduction:

This thesis paper main research purpose on understand what are the element that affects consumer in Viet Nam when it comes to buying a Samsung smartphone.

Objective:

To analyse on the significant relationship of Samsung smartphone product price, brand image, peer influence and product features, as well as how they greatly influence the purchase intention of Samsung smartphones consumer in Viet Nam.

Research questions:

What are the factors of Samsung smartphones that greatly influence on the purchase intention of consumer in Viet Nam? (Factors: Product features, Brand image, social influence, pricing).

Literature review:

Purchase intention:

Purchase intention is defined as the willingness and possibilities of consumer when they decide to purchase a product or service (Richard, Loury & David 2013). Purchase intention is defined as the consumer intention toward buying a particular product service that they decided to purchase after their evaluation of the product and service (Laroche et al.1966). According to Fishbein & Ajzen,1975 consumer purchase intention is built from the consumer’s attitudes, evaluation and external factors, that is why purchase intention is important when it come to predicting consumer behaviour. The higher the consumer perceive valued is, then the desire to purchase service or product of consumer is high as well (Zeithaml,1988). According to Phillip et al.,2002 the purchase intention can also define as consumer’s intention to repurchase and purchase. Advertising endorser’s with attractiveness, popularity, professional can attract consumer for a small amount of time and help increase the consumer purchase intention (Chi, et al., 2009).  Currently there are various of smartphones brand in the market that can satisfy the consumer wants and needs. That is why, consumer with different tastes will have different preferences. Therefore, consumer intentions to purchases depending on characteristics such as: quality, Social influences, brand name, Price, Product feature. This thesis main study is to examine the five variables such as: social influence, brand image, product features, product sacrifices and their relationship with each other in forming consumer purchase intention.

Product feature:

Product is consider to be anything that are offered to a market for, owning, attention, use, and consumption that could satisfy consumer needs and want (Philip, Armstrong, Gary and Kotler,2007).According to many researchers, Features is a characteristic of a product to accommodate the consumer’s satisfaction level of wants and needs, over owning the product, utilization and the usage of that product (Philip, Armstrong, Gary and Kotler,2007). A smartphones products features are their characteristic such as its appearance, component, capabilities. Smartphones features are made up of hardware and software. Hardware is the physical appearances, feature that can be touch such as: display, colour, size and weight, however software is refer to non-physical form such as: the operating system of that smartphones, in Samsung smartphones its uses Android OS. According IDC statistics research on the global smartphone market share in 2018, Samsung currently at the top in the world-wide smartphone market share regardless of 10.3% reduction from last year in shipments.  Also according to Statista research in November 2018, Samsung is currently the leading the global smartphone vendor with shipment amounted to 71.5 million units in the second quarter of 2018.

Price:

Pricing is a crucial factor that is unavoidable in deciding a product and service relative price. Price is the amount of money that a customer is willing to give out in exchange to obtain the benefit of the product or Service owning (Kotler & Armstrong,2010). According to Kotler & Keller,2012 there are various of product pricing methods such as: target return pricing, perceived value pricing, going rate pricing, mark-up pricing. Everyone perception on price values varies differently, therefore some may think that its rational to pay high price for high product values while some think that’s it’s wasteful to paying high prices as the product and services are not worth it. According to research by Monroe,2003 this leads to a situation that higher prices mean that the products have high quality and consumers are willing to purchase the product and service.

The pricing of a service or product can have two-way effect, this mean that it can be both disadvantageous and advantageous, it’s depended on the products type and how it is portrayed. There two mains type of pricing, one is premium pricing and low pricing. Premium pricing or high pricing can have a positively affects on the consumers purchase decision as researched by Erickson and Johansson 1985. The researched found out that when a product price is high, it’s influences the consumer purchase intention directly (Tellis & Gaeth 1990).   From these previous researched we could see that when a product price is high, it will produce a positive effect on the product purchase. One good example of this is the Samsung flagship smartphones, even though the smartphones price is high, it leaves the consumer a luxury and rich perception about the smartphones.  This is because of the perception that high quality product tends to have higher priced. However, products that have high priced forced into them will leave a disastrous effect. According to Dickson and Sawyer 1990 quote that:” what is clear that shoppers are very heterogenous in terms of their attention and reaction to price and promotions”, this quote mean that products with same functionality and are not recognizable tend to have a negative effect when the price is high. So to deal with this problem, most organization tend to manufacture the products and with the least costs in order to compete with other organization.