Consumer Buying Behavior on H&M Online Shopping (Vietnam) Dissertation

This dissertation investigates the factors influencing consumer buying behavior on online shopping at H&M in Da Nang, Vietnam. It begins with an introduction outlining the rise of online shopping and the popularity of H&M. The research explores key concepts like online shopping behavior, ...Read More

Dissertation
Topic: Factors that influence consumer buying
behavior on online shopping at H&M in Da Nang
citizens (Vietnam)

Contents
Introduction.................................................................................................................................................3
1. Background......................................................................................................................................3
2. Research question...........................................................................................................................5
Literature review.........................................................................................................................................6
I. Conception..........................................................................................................................................6
1. H&M................................................................................................................................................6
2. Online shopping behavior................................................................................................................6
3. Emprical studies...............................................................................................................................6
4. Factors influencing the online shopping behavior...........................................................................8
a. The shopping attitude..................................................................................................................9
b. Subjective norms.........................................................................................................................9
c. Perceived behavior control........................................................................................................10
d. Perceived usefulness.................................................................................................................10
e. Consumer’s trust.......................................................................................................................10
5. Theoretical Framework..................................................................................................................12
Methodology.............................................................................................................................................12
I. Research method...............................................................................................................................12
1. Research approach........................................................................................................................12
2. Research ethics..............................................................................................................................13
3. Data collection...............................................................................................................................14
4. Research Instruments....................................................................................................................14
5. Data analysis..................................................................................................................................16
Result.........................................................................................................................................................17
1. Descriptive analysis........................................................................................................................17
2. EFA analysis...................................................................................................................................17
3. Independent sample T-test............................................................................................................17
4. One-way ANOVA............................................................................................................................17
Disscusion..................................................................................................................................................17
1. Results summary...........................................................................................................................17
2. Implication.....................................................................................................................................17
3. Limitation.......................................................................................................................................17
4. Suggestions for future research.....................................................................................................17

Conclusion.................................................................................................................................................17
References.................................................................................................................................................17
Appendix...................................................................................................................................................23
Appendix 1: Consent form.....................................................................................................................23
Appendix 2: Survey................................................................................................................................24
Appendix 3: Spss Analysis......................................................................................................................24
Figure I.1: Proposed research model (HA, 2021).........................................................................11

Introduction
1. Background
In recent years, online buying has become one of the most popular purchase methods, thanks
to the advancement of technology and media (Lim, 2016). The need for online shopping in the
world is growing by the day, which brings with it a plethora of new ideas. Over the years, the
number of online shoppers and online sales have steadily risen (Wu, 2011). The Internet's one-
of-a-kind and revolutionary breakthrough, "online shopping," has become a source of
increasing competition for traditional shopping channels such as retail stores, mail, and
catalogues, particularly those connected to product categories such as books and music.
Consumers are getting more comfortable with internet buying and, in many circumstances,
prefer it over in-store purchasing, therefore it has cannibalised in-store shopping (Wall, 2011).
Despite the significant and optimistic expansion of online commerce, buying on the Internet is a
multifaceted phenomenona. While internet shopping is thriving in the Western world,
particularly in nations such as the United Kingdom and the United States, it has not experienced
the same level of development in countries such as China and India. More than 80% of global
customers will buy online by 2020, with South America and Asia leading the way with almost
90% each. North America has the smallest market share, accounting for little more than three-
quarters of all online purchases. Amazon.com is the world's most popular internet shop. As of
November 2020, an estimated 60% of US customers stated that Amazon was their favourite
online store, making it the most popular e-commerce site for online purchasing. With less than
15%, Walmart's online store comes second. Amazon has a clear preference among both male
and female customers in the country (Department, 2021). Although European customers still
prefer to buy in physical stores, the number of people who shop online every week has not
decreased: in Germany, for example, over two-thirds of consumers have already shopped
online. In May 2021, you can purchase online once a week. During that month, slightly more
than seven out of ten German customers went to physical stores on a weekly basis. Finland has
the lowest proportion of weekly internet buyers among the nations examined (Tighe, 2021).

Over the next several years, the value of Southeast Asia's internet economy is expected to
treble, with e-commerce accounting for the lion's share of the total. Only Indonesia, Thailand,
and Singapore will have a larger e-commerce market than Vietnam by 2020. The current digital
population in Vietnam, as well as expanding internet penetration, offer good conditions for the
establishment of e-commerce enterprises. As a result, e-proportion commerce's of overall retail
sales in the country is fast increasing, and online channels have exceeded traditional retail
channels in terms of FMCG growth. During the epidemic, an increasing number of Vietnamese
customers are willing to purchase online for necessities and fresh vegetables. As a result,
compared to brick-and-mortar retail locations, online food shopping has seen the most
utilization increase (Nguyen, 2021).
Shopping may be thought of as a type of enjoyment. People consider shopping to be an
essential part of their lives; they consider it to be entertaining. And when internet purchasing
becomes available, it is considered as considerably aiding customers. People can buy more
easily and without leaving their houses. As a result, internet buying may be considered a major
business, and more and more firms are resorting to online shopping (Tsai, 2010).
In this study, H&M is the targeted brand. The key to H&M's success is fast fashion, which is
marketed towards youthful, fashion-conscious urban consumers. Their items are stylish and
inexpensive, verging on disposable. Fast fashion retailers make money by having a high
turnover of inventory and continuously refilling the product pipeline is up to date with the
newest trends. While H&M is not the only quick fashion retailer, the Swedish company has a
unique business approach. In contrast to Zara, H&M does not produce its products in-house,
instead outsourcing them to approximately 900 independent suppliers worldwide, primarily in
Europe and Asia, who are monitored by 30 strategically situated monitoring offices. In this post,
it is focus on investigate the elements that influence customer decisions at H&M in order to
enhance branding by presenting evidence of how those aspects effect. H&M can then devise
methods to further develop its brands.
The author focuses on the factors impacting customers' online market purchasing intentions at
H&M Vietnam. The reason H&M was chosen for the study is because H&M is a famous brand

and has great potential when developing in Vietnam, where young people always love fast
fashion and branded items. With the current Covid epidemic situation, Online shopping has
grown in popularity among all clients worldwide. This report will help H&M find new factors to
attract customers for online shopping. In addition, it also wants to propose a trust factor to
determine consumers' perception of intention to buy online
The purpose of this study is to discover the elements that influence consumers' purchasing
intentions at H&M. Businesses can understand and perceive the factors through this report to
gain a deeper understanding of these factors. From there, they can develop policies and find
gaps to fix the solution and they can keep the trust with their loyal customers.
2. Research question
Based on client behavior when purchasing online, it is required to analyze and answer the
following questions in order to fulfill the practical urgency:
 What factors influence customers' online shopping behavior?
 What solutions to enhance and attract customers when shopping online in Da Nang?
 How to create trust and loyalty with loyal customers?
Literature review
I. Conception
1. H&M
H&M, or Hennes & Mauritz, is a Swedish apparel shop that was founded in 1947 and has since
evolved to become one of the most well-known names in the fashion business. H&M has
approximately 5,000 stores worldwide and employs 120,000 people. H&M is a multinational
Swedish clothing retailer headquartered in Stockholm. It is famous for producing fast-fashion
apparel for men, women, adolescents, and children. As of November 2019, H&M is present in
74 countries, with over 5,000 shops operating under several brand identities and 126,000 full-
time equivalent employees (TUN, 2021).

2. Online shopping behavior
Prior to delving into the elements that impact online purchasing, it is critical to define the
scientific approach to online shopping. Customers can use the Internet to search or seek the
proper goods (CHENG, 2012). When consumers want to purchase online, they utilize the
Internet to obtain relevant information (Kotler, 2016). The term "consumer purchase intention"
refers to the decision-making procedure and the actual environment activity that customers
engage in while assessing, purchasing, using, or disposing of products and services. However, it
does not end with the purchase of a product or service; It also examines the factors that have
an influence on that aim (Khuong, 2016). Companies can construct variables based on client
demands from these influencing elements in order to make online purchase intention.
3. Emprical studies
No
.
Article Methodology Variable/Factor Findings
1 Factors
Influencing
Consumer
Purchase
Intention in
Online Shopping
(Fachmi, 2019).
SPSS 22.0 was used
to perform Multiple
Regression Analysis.
Consumer
purchasing decisions
at online stores are
influenced by trust,
advertising, and e-
service quality.
Trust, advertising, and all of
these factors have a favorable
and significant impact on
online shopping decisions.
According to the study's
findings. Customers will select
Tokopedia, Bukalapak, and
Shopee if they have a high
level of trust, appealing
promotions, and good e-
service quality.

2 Factors
Influencing
Online Purchase
Intentions: An
Case Study in
Vietnam (Khanh,
2014).
Survey
questionnaire,
regression analysis,
regression
assumptions before
utilizing the OLS
method to conduct
a regression,
hierarchical multiple
linear regression,
and hypothesis
testing.
Perceived economic
benefits (PEB),
perceived
merchandise
benefits (PM),
perceived ease of
use (PE), perceived
payment benefits
(PPB), and online
shopping behavior
(B).
The primary goal of this
research is to look into the
elements that influence
customer online purchasing
behavior, which might be one
of the most important topics
in the e-commerce and
marketing fields. However,
little research has been
conducted on online
consumer behavior since it is a
complex socio-technical
phenomena with simply too
many variables.
3 The Influence of
Attitude,
Subjective Norm,
and Website
Usability on
Online Purchase:
Behavior Among
Malaysian Youth
(Nurul Aqila
Hasbullaha.,
2016).
Statistical studies
such as
demographic
profiles, descriptive
analysis, reliability
analysis, correlation
tests, and
regression tests are
all available.
Attitude, subjective
norm, website
usability, and
purchasing purpose
while buying online.
The findings supported the
The Theory of Reasoned
Action (TRA) proposed a
connection between attitude
and behavior. A previous
research also supported this
claim. The study's findings
found that website usability
was seen as the most
important factor, with other
factors having just a minimal
impact on customers'
proclivity to purchase online.
The outcomes of the study
should aid the online business
industry, particularly online
merchants, in acquiring and
retaining clients.
4 Acceptance of
Information
Technology by
Users, Perceived
Utility, and Ease
of Use (Davis,
Analysis of
regression and
measurement
scales.
The perceived utility
and simplicity of
usage.
In all trials, usefulness
correlated with usage
behavior much more than
simplicity of use. According to
regression analysis, rather
than being a parallel, direct

1989). driver of system use,
perceived ease of use may be
a causal antecedent of
perceived usefulness.
Implications for future user
acceptability research are
derived.
5 Consumer Trust
in a Website:
Moderating Effect
of Online
Shopping
Attitudes (Martin,
2008).
Sample and data
collection, as well as
variable
measurement
Standards for
warranty, security,
and privacy service
quality, interactive
experience, web site
design, trust, and
happiness are all
major factors.
The moderating impacts of
customers' reasons and
impediments to purchase
online. According to the
findings, past purchase
happiness, the most important
indicators of trust are website
security and privacy rules, as
well as service quality.
Furthermore, the causes and
barriers that customers feel
while shopping online
influence the kind of signals
they consider trustworthy.
4. Factors influencing the online shopping behavior
Many variables impact a consumer's propensity to use internet shopping to buy items and
services. In this part, we suggest numerous hypotheses on consumers' adoption of online
shopping depending on each construct derived from previous studies. For this study, we
suggest the following conceptual model:
a. The shopping attitude
One of two elements influencing customer purchasing behavior is shopping intention. It is a
criterion used to forecast future behavior (Blackwell et al., 2001). One of the driving elements
that pushes one individual to do action is intent. Meanwhile, it contends that intention is a
separate goal of customers while performing one or more acts. Consumers may have a range of
motives, including the desire to shop. A consumer's purchase intention is a plan for where they
will buy their goods. It defines online purchasing intent as the fervor with which a buyer intends

to engage in a given buying activity on the internet (Delafrooz, 2011). In the context of online
purchase, attitude refers to overall client emotions of favorability or disfavorability toward
purchasing things from retail websites via the internet (Lim, 2016). The mindset of the
consumer determines their aim (Fishbein, 1975). Customers' buying attitudes have been proven
to have a favorable relationship with their purchasing intention in the context of online
shopping. As a result, the following theory is proposed:
 Hypothesis 1: Online shoppers' buying attitudes influence their purchasing behavior
positively
b. Subjective norms
Individual views of society pressure to do or refrain from performing a behavior are referred to
as subjective norms (Ajzen, 1986). There is no direct significant relationship between subjective
norm and consumer behavior, and Ajzen (1991) shown that personal considerations exceed the
influence of subjective normBefore actual purchases are completed, the majority of research
on perceived norms is mediated by purchasing intentions (Jamil, 2011). According to Jamil and
Mat (2011), subjective norm has a profoundly significant influence on online purchase intention
but has little effect on real internet purchases. According to the findings, family, friends, and
the media have just a modest impact on actual internet purchases. Following perceived
behavioral control, subjective norm was the second most important factor influencing online
purchase intention (Orapin, 2009). Third-party recommendations (subjective norm) were
predicted to have a substantial influence on client purchase intentions. The bulk of studies
show that subjective norm has a direct and significant effect on purchase intention for online
purchases (Letchumanan, 2013). Therefore, the second proposed hypothesis is:
 Hypothesis 2: Consumer subjective standards have a favorable influence on their
online buying behavior
c. Perceived behavior control
According to Ajzen and Madden (1986), by integrating a new concept termed "perceived
behavioral control" as a predictor of both intention and conduct, the TRA was changed into the
Theory of Planned Conduct (TPB) (Ajzen, 1986). Consumers' beliefs of their capacity to execute

a certain activity are referred to as perceived behavioral control. TPB predicts behaviors over
which persons do not have total volitional control. Perceived behavioral control reflects views
about internal (self-efficacy) and external (resource availability) restrictions on behavior. It has
been discovered that planned behavioral control (PBC) has a direct impact on internet purchase
behavior. (George, 2004) and this has a direct relationship to genuine Internet purchasing
(Khalifa, 2003). As a result, the third proposed theory is:
 Hypothesis 3: Perceived behavioral control influences their online buying behavior
positively
d. Perceived usefulness
Customers' intents are impacted by their perception of usefulness, according to Davis (1989).
The degree to which a person feels that utilizing a certain system would improve his or her
performance is known as perceived usefulness (Davis, 1989). Perceived usefulness may
alternatively be described as a person's belief that implementing a system would increase work
performance (Davis, 1989). Someone who feels that using a system would improve job
performance may also convey perceived usefulness (Kim, 2010). Customers must be given a
range of facts and high-quality product descriptions to help them make an educated decision
(Chen, 2002). As a result, the fourth hypothesis suggested is:
 Hypothesis 4: Perceived utility influences online purchasing behavior positively
e. Consumer’s trust
Consumer trust in online buying is influenced by a variety of variables. One of these is the
buyers' proclivity to trust in general, which is a personality factor. The consumer's
predisposition to trust is an important aspect in determining trust. Trust proclivity is considered
as a feature that is consistent across contexts and contributes to attitude development. A
person's trust proclivity is likely to have a substantial impact on their first trust. However, if a
buyer has had some online buying experience, the proclivity to trust becomes less essential. As
a result, Trust proclivity is no longer as important as it previously was in assessing the level of
trust in internet purchases (Wang, 2009). When it comes to online shopping, It believes that
trust may be described as either the willingness acceptance of vulnerability (risks) from online

retail websites after gathering knowledge about them, or ready to accept vulnerability (risks) in
order to deal with online merchants (Lee, 2001). In trade partnerships, trust is critical
(McKnight, 2002). Furthermore, a component that has a substantial influence on customer
behavior in both online and conventional buying (Ha, 2019). Trust is especially important in the
online purchasing context since the consumer's assessment of transaction risk in the online
world is greater when the buyer does not have direct contact with the vendor or the items they
seek to purchase (Hong, 2011). According to previous research, consumer confidence in one
retail website is a key component that increases buy intent, and one of the primary causes is a
lack of faith that customers avoid internet purchasing (Ha, 2014). As a result, the final
hypothesis suggested is:
 Hypothesis 5: Customers' online buying behavior is influenced positively by their faith
in one retail website.
5. Theoretical Framework
Figure I.1: Proposed research model (HA, 2021).

Methodology
I. Research method
1. Research approach
According to Leedy and Ormrod (2001), research technique is "the general plan the researcher
employs in carrying out the research activity." (Williams, 2007). Quantitative research is
gathering data so that information may be quantified and statistically treated in order to
support or deny "alternative knowledge assertions." (Creswell, 2003). The goal of this part is to
provide the research technique for this quantitative grounded hypothesis investigation on:
"Factors that influence consumer buying decision on online shopping at H&M in Da Nang
citizens".
A quantitative research approach, in particular, manages to measure and dissect variables to
obtain findings; This indicates that it entails the use and assessment of mathematical data using
explicit statistical processes to handle concerns such as who, how much, what, and so on
(Rashid, 2021). There are two important advantages to using a quantitative technique such as a
survey. For starters, it is simple to administer and analyze. There is no need to spend time at
the organization before delivering the survey, and the results may be calculated in a short
period of time. Second, numerical data generated through this method allows for comparisons
between organizations or groups, as well as evaluation of the degree of agreement or
disagreement among respondents (Yauch, 2003). Furthermore, when statistical tools such as
SPSS are used, data analysis takes less time than sampling usual (Dixon, 2012). Quantitative
methods just provide general representations of the variables, deeper underlying meaning and
explanations cannot be found (Queirós, 2017).
2. Research ethics
Individuals' lives and independence may be jeopardized as a result of research articles. With the
purpose of preventing this from happening in the future, there were formed research morality
norms and guidelines. Certain moral criteria should be included in the dissertation writing.
These include obtaining informed consent from responders in the examination project,

protecting their privacy and confidentiality, and limiting the risk of harm to members. Allowing
participants to leave the assignment at any time and prohibiting the use of deceptive practices.
Ethical approval was performed to guarantee that this dissertation adhered to the moral
requirements (Kjellström, 2010).
Based on the consent form and participant information, this paper has been ethically approved
(Appendix 1). The framework contained information on the study and its objective, as well as
data and contact information for the researcher and mentor, information usage and insurance
data, as well as a permission form All of the data was collated to ensure that respondents
understand the research in which they are engaging, how long it will take, what will happen
with their information, and that they can withdraw at any time throughout the project.
Furthermore, it was explicitly emphasized that the information obtained is anonymous and
secret, and that no people will be named in any reports. Data was safely saved and will be
deleted after this operation is performed.
3. Data collection
For data gathering, an online questionnaire technique was employed. Participants were first
requested to fill out informed consent forms. The questionnaire was then given to the
surveyors using office 365 forms, which was subsequently utilized for evaluation and task
completion. The survey comprises seven one-choice questions, five things scored on five-point
Likert scale as well as two multiple-choice questions. The information is gathered from
centralized participants who live and work in Da Nang. Furthermore, each respondent has a
unique perspective on internet purchasing. This adds variety and originality to survey
responses. For example, housewives, students, students and young people tend to prefer
online shopping nowadays. Respondents can work in any job and be of any age, which will
classify them into distinct generations. The researcher chose the aforementioned fields since
they are getting increasingly popular. The data collection period is expected to take 1 week
from December 12 to December 19, 2021.

4. Research Instruments
The survey included six variables: one dependent variable (online purchasing decision) and five
independent factors inclue (shopping attitude, subjective norms, perceived behavior control,
perceived usefulness, and consumer trust). To analyze the relationship between such
parameters, many items were employed. In the questionnaire, the Linkert scale, with a rating of
1 = Strongly Disagree to 5 = Strongly Agree, was utilized in the questionnaire to examine all of
the criteria supplied. The Cronbach alpha coefficient was also used to assess variable
consistency by the researcher (reliability scale).
Online Shopping Behavior
This factor indicates that online shopping behavior is a kind of overall perception and
evaluation of each individual. products or services in the process of online shopping may lead to
bad or good results. The four items included in this scale were adapted from javadi (2012). The
items are:
- "I Like shopping on the internet."
- “Online shopping malls are a fit means to buy products.”
- “I will frequently shop online in the future.”
- "I will strongly recommend others to shop online."
The Linkert scale is used to measure this factor. The Cronbach Alpha of this variable is equal
to ..
Online Shopping Attitude
This factor indicates that online shopping attitude refers to the psychological state of
consumers about buying goods on the Internet. The fifth items included in this scale were
adapted from Lim (2012). The items are:
- "I am comfortable to shop from online shopping sites."
- “I like to purchase what I need from online shopping sites.”

- “I like to seek for product information from online shopping sites.”
- "I feel happy when I do my shopping online."
- "I feel shopping online is a wise choice."
The Linkert scale is used to measure this factor. The Cronbach Alpha of this variable is equal to..
Subjective norms
In this variable, subjective norms are determined by perceived social pressure from others on
an individual to behave a certain way and their motivation to conform to the views of others.
The influence of subjective norms on intention formation has been shown to be weaker in
previous studies than the effect of attitude. The items included in this scale were adapted from
Halim (2020). The Cronbach Alpha of this variable is equal to..
Perceived behavioral control
In this variable, perceived behavioral control denotes "people's perception of the extent to
which they can, or have control, perform a certain behaviour". Controlling behavior will help
make online shopping choices better. The items included in this scale were adapted from
Giantari (2013). The Cronbach Alpha of this variable is equal to..
Perceived usefulness
In this variable, perceived usefulness is the subjective perception of users when they believe
that using certain technologies can improve their job performance. This performance is focused
on benefits through the adoption of Internet purchases minus conventional retail. The items
included in this scale were adapted from Lim (2012). The Cronbach Alpha of this variable is
equal to..
Consumer’s trust
In this variable it is shown that consumer's beliefs and perceived values have a positive and
significant impact on consumers' e-commerce purchasing decisions on social networks partly

and simultaneously. The first three items included in this scale were adapted from Giantari
(2013). The items are:
- "I believe that the security of online shop."
- "I believe the brand."
- "I believe the quality of products in the purchase via online."
Meanwhile, three next items were adapted from another source from Nica (2015). These are:
- "I believe this vendor’s website provides reliable information."
- "I believe this vendor’s website keeps promises and commitments."
The Linkert scale is used to measure this factor. The Cronbach Alpha of this variable is equal to..
5. Data analysis
SPSS is the most often used data analysis program for quantitative analysis. The information gathered
from the online poll will be put into SPSS for analysis. On the Likert scale, responses were
recorded as mathematical replies ranging from 1 to 5, with 1 strongly opposing and 5 highly
agreeing. Demographic data will be split down according to frequency, and the results of the
factors will be provided as a description with the mean, median, and standard deviation for
each factor. Cronbach Alpha will then be used to assess the dependability of each element.
Following that, an EFA analysis will be undertaken, allowing the research to determine which
variables should be removed and whether or not the model should be revised.

Result
1. Descriptive analysis
2. EFA analysis
3. Independent sample T-test
4. One-way ANOVA
Disscusion
1. Results summary
2. Implication
3. Limitation
4. Suggestions for future research
Conclusion
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Appendix
Appendix 1: Consent form

Appendix 2: Survey

Appendix 3: Spss Analysis