HOCHIMINH CITY UNIVERSITY OF FOREIGN LANGUAGES

INFROMATION TECHNOLOGY

DEPARTMENT OF INTERNATIONAL BUSINESS ADMINISTRATION

**********

SCIENTIFIC RESEARCH

ANALYZING THE ONLINE SHOPPING BEHAVIOR OF STUDENT IN HO

CHI MINH CITY FROM 2018 TO 2019

PRESENTED BY

NGUYEN THI THUY TRANG

STUDENT ID: 17DH489330

December,15, 2019
 Table of Content
Content Page
Chapter 1: INTRODUCTION....................................................................................
1.1. Rationale of the study................................................................................................
1.2. Aims of the study......................................................................................................
1.3. Scope of the study.....................................................................................................
1.4. Significance of the study ..........................................................................................
Chapter 2: LITERETURE REVIEW.......................................................................
2.1. Theories.....................................................................................................................
2.1.1. E-commerce.........................................................................................................
2.1.1.1.What is E-commerce?......................................................................................
2.1.1.2.Type of E-commerce models............................................................................
2.1.1.3. Benefit of E-commerce...................................................................................
2.1.2. Customer behavior...............................................................................................
2.1.2.1. What is customer behavior?............................................................................
2.1.2.2. Consumer decision making process.................................................................
2.1.3. Online shopping...................................................................................................
2.1.3.1. What is Online shopping?...............................................................................
2.1.3.2. Pros and cons of online shopping versus traditional shopping........................
2.2. Previous studies.........................................................................................................
Chapter 3: METHODOLOGY AND MATERIALS..............................................
3.1. Methodology.............................................................................................................
3.2. Material.....................................................................................................................
Chapter 4: FINDINGS AND DISCUSSION............................................................
4.1. Gender (Question 1)..................................................................................................
4.2. Age (Question 2).......................................................................................................
4.3. The number of students who participated in online shopping (Question 3)...............
4.4. Online shopping needs of students (Question 4).......................................................
4.5. Average time of internet use in 1 days (Question 5) .................................................
4.6. Student impact factor online shopping (Question 6).................................................
4.7. Types of items that students often shop online (Question 7).....................................
4.8. Monthly spending for students’ online shopping (Question 8)..................................
Chapter 5: CONCLUSION & RECOMMENDATION.........................................
5.1. Conclusion................................................................................................................
5.2. Recommendation.......................................................................................................
REFERENCES.............................................................................................................
 ABSTRACT
This research helps us to better understand student shopping habits, why online
shopping is gradually becoming a trend and one of student's habits. This paper uses a
primary research method for all students attending HUFLIT University in Ho Chi
Minh City. According to the data, online shopping is more common among women
who have frequent internet use, the selected items are the ones that buy the most
jewelry, clothes, cosmetics and the greatest strength of online shopping is delivery.
Since then, encourage businesses to focus on customer psychology thereby bringing
appropriate business strategies such as fast delivery within 2 hours, payment on
delivery and checking the goods.
Keywords: Online Shopping, Consumer Behavior, Students Shopping Online, Ho Chi
Minh City
Chapter 1: INTRODUCTION

1.1. Rational of the study

When a business wants to enter a certain market, it must know exactly what that
market needs, the demand and the supply of that market. In recent years, when
information and communication technology have become more and more popular and
developed with a strong boom, it has greatly affected to the economy and especially in
purchasing activities. Shopping online are organized really methodically with
investment and gradually become an indispensable part for young people especially
students. Despite appeared in Vietnam for a few years, it has developed extremely
strong, quick and gives benefits both sellers and buyers and the Vietnamese economy
in general. Therefore, to understand more about why online shopping is so popular
and popular and the benefits of online shopping so much, I chose this topic to
research.

1.2. Aims of the study

The more we learn about Student's online shopping behavior, the better we will
understand about students' hobbies, shopping habits and standards. Will know what
are the advantages and disadvantages of online shopping and direct shopping. Why do
online shopping stores give students priority? Why don't students choose to go
directly to the store but choose to shop online? The convenience that online shopping
brings to you students. We make this topic to better understand those things.

1.3. Scope of the study

This study was conducted in Ho Chi Minh City from 2018 to 2019 with the main
object is the student, especially the students studying at HUFLIT University. 2018 -
2019 is the most suitable year to carry out this research in detail and update the latest
information. Why do we choose students? Because young people in general and
students in particular are the objects which tend to use smartphones and social
networking sites most of their time. That’s the reason why these objects have more
chances to do online shopping. And for shopper, they also focus on young customers.

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So, this research will most focus on students.

1.4. Significance of the study

If you have an idea to do business in your mind, especially for the first time, this
research can help you understand a certain market in general and especially the
trading market in particular. Thanks to this research, you can better understand the
needs and demands of young people, follow advantages and trends, understand what
young people need to be able to provide the best and special service which can bring
the greatest business benefit to you. Moreover, you can compare the benefits of online
and offline shopping, from which you will draw the necessary experience in the
business and choose the right business direction for yourself.

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Chapter 2: LITERATURE REVIEW

2.1. Theories
2.1.1. E-Commerce
2.1.1.1. What is E–commerce?
E-commerce is a form of trading business through the field of electronic
technology. In simple terms, e-commerce is the exchange of purchases and
services between sellers and buyers through online means. All these transactions
are made by methods such as advertising, ordering, payment methods,
delivery, ... (Rouse, 2019)
E-commerce is referring to the mode of business transactions through
online axis website. E-commerce includes activities such as online sales, online
payment and online ticket purchase. (Markus, 2019)
E-commerce is a type of business that allows businesses or individuals to
exchange goods for sale and purchase through the online website.
Business to Business (B2B).
Business with Customers (B2C).
Customer with Customer (C2C).
Customer to Business (C2B).
E-commerce is done on computers or phones. From there consumers can
search for purchases through e-commerce. This is considered to be the most
advanced technology available today. (Bloomenthal, 2019)

2.1.1.2. Type of E-Commerce models

The e-commerce model simply means that organizations or individuals are
involved in the transaction. Therefore, the e-commerce model consists of 4 basic
models as follows:
Business to Business (B2B)
This is an online business transaction model among businesses. So,
online business transactions here take place between manufacturers,
retailers, agents ...

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 Business with Customer (B2C)
This is the most common and most used linear business transaction
model. Here, businesses will exchange purchases with consumers.
Consumers will visit businesses' websites to see if they have items, product
information, references and reviews. After that, consumers will order the
product and at the same time the business will deliver the product to the
buyer.
Customers with Customer (C2C)
This is a fairly common transaction model, where consumers will trade
with each other without having to go through any business. This trading
model makes it possible for people to sell the goods and assets they have to
people in need.
Customer to Business (C2B)
This business model will be understood simply that consumers will
create value and will sell it to businesses. This business model will be in
contrast to B2C, where consumers are allowed to do business in providing
products and services to businesses.
(Electronic Commerce, n.d.)

2.1.1.3. Benefit of E-Commerce

Benefit for Businesses
Low cost: E-commerce is the starting place for a website to sell goods
cheaper than traditional stores. Online businesses do not need to pay for rent and
staff. At the same time the cost of investing in advertising and marketing
strategies is very low but highly effective.
Flexible and fast: An enterprise can easily open an online store in just a few
days while opening a traditional store needs premises, business licensing
procedures as well as building interior design to open a store. While online stores
only need to set up an e-commerce website, businesses can start their business
without spending too much time like opening a traditional store. Therefore, in

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terms of flexibility and speed of an e-commerce website, no traditional store can
beat this, which is considered to be the main benefit of e-commerce.
Accelerate sales: When customers intend to shop, they need to plan a
shopping trip, then the benefit of e-commerce is to accelerate the purchase
process. Instead of having to go to a traditional store that takes a lot of time, for
online stores, they can buy products anywhere just by visiting the website that
sells the product and choosing to buy the product. They need then the product they
buy will be delivered to the place they are received.
Unlimited time: Business activities through the website are available 24/7 to
help businesses serve customers anytime and anywhere.
Product description: Customers who visit the shopping site can easily find
the product they are looking for by visiting the product catalogs already listed to
help customers choose. Besides, customers can read about the product's
ingredients as well as collect basic information about the products. Even online
websites are equipped with product ratings and feedback from users who have
used the product to help customers better understand the product on the market.
This is also one of the main benefits of e-commerce.
Tracking customer shopping habits: Observing statistics on customer
satisfaction and dissatisfaction thereby analyzing the frequency of customers who
have purchased products and tracking customer behavior to get tailor the service
to each customer.
Save on inventory management costs: E-commerce helps stores save time
and reduce inventory costs compared to traditional goods. E-commerce will
introduce a system of features through the website that businesses can automate
and manage inventory easily, thus reducing operating costs.
Motivate customers to buy products: Online stores will track information
about customers' buying habits and will make statistics of items that are of interest
to consumers, thus there will be some chapters. The promotion program for each
product will motivate customers to buy this product, which will help the seller to
sell more products and at the same time help the buyer to buy the product at a
reasonable price.

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 Effective customer service: The benefits of e-commerce for customer service
make it possible for online businesses to trade with buyers at any time. E-
commerce has paid special attention to customer service. The website will
regularly update new product and service information to customers so that
customers can easily track and accompany fast delivery service.
( Bhasin, 2019)

Benefit for Consumers

Lower Price: According to the research, the price of selling in the direct
store will be cheaper than the price of traditional stores. Why are prices in online
stores cheaper than traditional stores? Because online stores do not have to pay
cash in the same way as traditional stores and do not have to spend too much on
staffing and security costs.
Faster and Easier Buying: Instead of having to arrange a time to get to the
store, instead of just sitting anywhere accessing the e-commerce website, you can
order the product or service you need and The goods will also be delivered to your
destination, which is extremely easy and convenient.
Availability 24/7: This is one of the most useful features of an online store
that allows customers to access the website anytime they want to shop or use the
service without having to worry about opening times. Doors and closures are like
traditional shops.
Availability of Information: Product sales information is provided by the
website with detailed information about each product, information about the store
and how to buy products to help customers easily shop.
A Wide Range of Good and Service: Compared to traditional stores, online
stores often contain many types of items as well as the same items but many
different brands compared to traditional stores to help consumers freely choose. In
addition, customers can also compare prices that are one of the utilities that e-
commerce gives consumers to help consumers make smarter choices.
(“Benefits of E- Commerce for Businesses ,” 2019)

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2.1.2. Customer Behavior
2.1.2.1. What is Customer Behavior ?
According to Kotler, Wong, Saunders & Armstrong (2005) "The buying
behavior of consumers is the decision to purchase goods and services for personal
and family consumption." According to consumer behavioral research, who is
who they are? What do they buy? Where do they buy it? And buy for what? The
shopping behavior of customers is often affected by friends or individuals or
family or organization groups.
At the same time, the buyers here are not obliged to be consumers.
According to Kotler, Wong, Saunders & Armstrong (2005) stated that consumers
are "people who use products or services", and for shoppers as "people who buy
products but they may not be online" continue using products and services.
“Consumer behavior is the study of a customer's need for shopping or use of
a service to satisfy their needs and desires. ” (Solomon et al,. 2006)
“Consumer shopping behavior refers to the process by which individuals,
households or groups of organizations choose to use, purchase goods or services
to meet their needs and desires.” (Kotler & Keller, 2006)
“Consumer behavior is clearly demonstrated through the purchase, use, and
evaluation of products that they expect to meet their needs.” (Schiffman, Hansen
& Kanuk, 2007)
“Consumer behavior is the study of the purchase and use process of an
individual or an organization group to satisfy their needs and desires.” (Solomon,
1995)
“Consumer behavior is the specific act of deciding to buy, use or abandon a
product or service.” (Kotler, 2000)

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 2.1.2.2. Consumer decision making process
The process of making consumer decisions depends on many factors that
influence consumers' purchasing decisions. When buying a product, consumers
usually undergo 5 basic steps as follows:

Figure 2.1: Consumer Decision Process Source?

Need Evaluation Post -

Information Purchase
Recognition of Purchase
Search Decision
Alternatives Evaluation

Step 1 Need Recognition:

Signs of demand occurs when consumers identify the needs and wants of
himself. This time, consumers will start shopping with the reason many
different reasons, this is called internal stimuli. Therefore, companies often
take advantage of opportunities for advertising, promotion stimulates the
shopping needs of the customer to accelerate sales for the company. (Kotler
et al., 2005)

Step 2 Information Search:

During the period in which consumers make purchase decisions,
immediately step search for information would appear to meet the demand.
Consumers will look for the information of each product from which they
will select suitable products and make purchasing decisions. (Kotler et al.,
2005)

Step 3 Evaluation of Alternatives:

This step, referring to the assessment of alternatives of different products
available on the market with quality products. Then consumers will think

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 choosing products to suit them. To assess a consumer goods brand to brand
concerned that they love they have used before or the impact from certain
objective factors. (Kotler et al., 2005)

Step 4 Purchase Decision:

After the consumer evaluation step has been passed, the decision to
make a final purchase is here but there are some other factors such as
unexpected situation or some reason here. “A consumer decision can be
changed or postponed at any time due to certain effects.” (Kotler et al.,
2005) So the level of risk depends on price, confidence and some consumers
not sure yet.

Step 5 Post – Purchase Evaluation:

Purchasing behavior is "The final step in the buying decision process of
customers, in which customer behavior after purchasing the product is based
on their satisfaction or dissatisfaction"(Kotler et al., 2005). If the customer is
satisfied, they feel happy, have a long-term connection with the product, and
moreover, they can introduce their friends or relatives about the product that
makes them happy. As for dissatisfaction, they will feel disappointed, they
can return the item, even say bad things about the item to others.
After-purchase behavior is very important, businesses need to pay
attention to retain customers.

2.1.3. Online Shopping

2.1.3.1. What is Online Shopping?
Shopping online is the behavior of consumers buying goods or services
through an online store or website that uses online trading. (Haubl & Trifts, 2000)
Online shopping is the act of purchasing goods and services of consumers
through access to such websites called online shopping. Direct shopping attracts a
large number of consumers by the convenience that online shopping offers to
consumers. ( “Online Shopping”, 2017)

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 Online shopping is when customers buy a product through an online store,
instead of going to a media store, this is called online shopping. ( “What is Online
Shopping?” 2006)

2.1.3.2. Pros and cons of online shopping versus traditional shopping

Online shopping
Pros of Online Shopping:
Save time and money.
Compare prices of goods easily.
Feel free to buy the product at any time.
Can send gifts easily.
Product diversity.
Calculate spending easily.

Cons of Online Shopping:

Goods shipping delay.
You can’t try it on.
Risk of fraud.

Traditional Shopping
Pros of Traditional Shopping :
Customers are exposed to the product.
Receive the product after you have paid.
There is no risk of fraud.
Save on freight costs.

Cons of Traditional Shopping:

Waste time.
Limit on the time of purchase.
It is hard to compare prices of products.
( “ Online Shopping versus Traditionnal Shopping,” 2016)

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2.2. Previous Study
Forsythe, Liu, Shannon & Gardner (2006) argues that through researching,
evaluating and measuring the scale including the benefits of online shopping and the
risk of purchase. For the benefit of shopping is the convenience that online shopping
brings, the ability to choose to buy products through online stores, the comfort of
buying products through electronic stores and satisfaction. when buying the product.
And for risk factors when buying goods are financial risks, transit time and goods.
Truong Sanh (2019) suggests that according to statistics from the Department of
E-Commerce and Digital Economy, from 2016 - 2018, the growth rate of Vietnam's e-
commerce has been over 25%. Google Temasek predicts e-commerce growth will
grow to 43% and will become the leading group in Southeast Asia.
Dang Thuy Ha (2019) suggests that e - commerce will become a daily habit for
consumers in the next 5 years, now there are 56 million internet users are fixed and
there are about 55 million social networking accounts, indicating that consumers User
is connected everywhere, every region of the country. (“Báo cáo khảo sát về hành vi
mua sắm online của người tiêu dung Việt Nam,” 2019)
Hoang Son (2019) suggests that according to Picodi's data, it shows that
Vietnamese women (60%) shop more than men (40%), the difference is 20%.
According to statistics, nearly half of online shoppers are people aged 25-34 years old,
accounting for 49%, 18-24 year olds accounting for 28% and 10% over 35 year olds.
Nielsen (2019) report that top 5 product groups that Vietnamese consumers prefer
include cosmetics (46%), fashion (44%), personal electronics (43%), body care
products (41%), and food (38%). Besides, Vietnamese consumers are also very
interested in high-end products because of product quality (65%) and superior use
(58%). Notably, according to the survey, more than half of people are willing to pay a
higher price to buy products with environmentally friendly materials (55%) or
finished products made from nature (52%).

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Chapter 3: METHODOLOGY AND MATERIALS

3.1. Methodology
In this paper, I use the method of primary research. The reason I chose the
primary research method was because I wanted to survey and learn more about online
shopping behavior of students in Ho Chi Minh City.
I have investigated and decided to use quantitative methods for my research.
Through quantitative methods, I will use the method of questioning to conduct large-
scale surveys. First, I will ask a survey question to determine the amount as a
percentage of products or services that students shop online. It will then be easy to
identify which products or services attract and account for the majority of students'
online shopping. Finally, the information will be collected from the form of a
questionnaire survey, which will be displayed in a chart with a convenient percentage
to classify and analyze online shopping behavior of students.
Through posting online via the Facebook tool, the questions were given to
students after the survey was completed within the time I set out to be 4 days, the next
I will be able to statistics. habits and factors influencing online shopping for students
in Ho Chi Minh City. This survey was conducted with the participation of more than
100 students of HUFLIT University.

3.2. Materials
After the survey, I received complete information of the survey. According to the
statistics, there were 103 students participating in the survey, including 75 females, 25
males and 3 other genders. The number of females taking part in the survey was
higher than that of males, most of whom were aged 18 - 21 years old, accounting for
92.2%. This study provides information about students as well as their online
shopping needs. This study was used by Google Doc questionnaire. All survey
questions in the research are closed and can be used for both English and Vietnamese.
In the survey, the question is divided into 2 parts: The first part is personal
information including age and gender. The last part is research information including
6 questions. The questions I ask will help you understand the students 'information

12
and online shopping needs, so it will be easier to see your students' online desires and
ambitions.

13
Chapter 4: FINDINGS AND DISCUSSION

4.1 Gender (Question 1)

Figure 4.1. Gender
2,9%
Gender

24,3%
Female Male

Others
72,8%

After completing the survey, I counted the number of participants of 103

students, including 75 women accounting for 72.8%, 25 men accounting for 24.3%
and 3 sexes others accounted for 2.9%. In general, more women participated in the
survey than the other 2 sexes.

4.2. Age (Question 2)

Figure 4.2. Age
Age 5,8% 1,9%

18 - 21

22 - 25

Others
92,2%

According to statistics, between the ages of 18 and 21, there are 95 people
accounting for 92.2%, ages 22 - 35 have 6 people accounting for 5.8% and other ages

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have 2 people accounting for 1.9%. In general, the age group of 18 - 21 years old
participated in the survey more than the other age group.

4.3. The number of students who participated in online shopping (Question 3)

Figure 4.3. The number of students who participated in online shopping

Have you ever purchased goods or services online?

1,9% Regular

98,1%
Sometimes

According to the statistics from the survey, I found that the number of online
shopping users was 101, accounting for 98.1% and the number of unused online
services or shopping accounted for 1.9%. In general, the number of people who have
used online shopping is more than the number of people who have not used online
shopping, showing that students are very interested in online shopping.

4.4. Online shopping needs of students (Question 4)

Figure 4.4. Online shopping needs of students
Do you often online shopping?
1,9%

32% Regular

Sometimes

66%
Never

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 Based on the statistical chart, the percentage of occasional occupies 66%, the
regular level accounted for 32% and the never accounted for 1.9%. In general, the
frequency of occasional online shopping is higher with frequent and never-ever
percentage, suggesting that students are also very interested and wishing to shop
online.

4.5. Average time of internet use in 1 day (Question 5)

Figure 4.5 Average time of internet use in 1 day
Average of 1 day of your internet usage?
2,9%

36,3% 25,5% 1 - 2h 2 - 4h

4 - 6h More 6h

36,3%

For online shopping, time spent on internet is very important. Based on the
chart, students spend 2 - 4 hours on the internet, accounting for 25.5%, 4 - 6 hours,
accounting for 36.3%, over 6 hours, accounting for 35.3% and 1-2 hours accounting
for very little percent. This shows that students are the potential audience of the online
shopping market.

4.6. Student impact factor online shopping (Question 6)

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 Figure 6: Student impact factor online shopping
What makes you choose to shop online?
1% 5,8%

16,5% Prices Promotion

22,3%
Save time Products quality

Delivery A lot of options

28,2%
21,4%
Others

4,9%

Based on the chart we can see an overview of the factors that influence students'
online shopping decisions. According to the results of home delivery services
accounted for 28.2%, promotional elements accounted for 22.3%, time-saving factors
accounted for 21.4% and the remaining factors were 16.5%, 5.8%, 4.9% and 1%
respectively. This shows that the delivery, time-saving and promotion factors directly
impact student purchasing decisions compared to the rest.

4.7. Types of items that students often shop online (Question 7)

Figure 7: Types of items that students often shop online
Which goods or services do you usually buy online?

3,9%4,9%
1,9%
Clothes, Shoes and Cosmetics

Food and Drink

Hotel and Tour Reservations

34% 55,3%

Technology and Electronics

Book Air and Train Tickets

As a result, we can see a specific overview of the item structure that students
often shop online. In particular, clothes, shoes and cosmetics accounted for 55.3%,

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food and beverages accounted for 34% and the remaining items accounted for 4.9%,
3.9% and 1.9% respectively. It shows that students spend a lot on clothes, shoes and
cosmetics, in addition students with demand for food and beverage services also
account for a high proportion. This proves that students are very interested in these 2
types of items.

4.8. Monthly spending for students' online shopping (Question 8)

Figure 8: Monthly spending for students' online shopping

How much do you spend every month on online shopping?

14,6%

Less than 1 million

10,7%

From 1 million to 2 million

74,8%
More than 2 million

As the chart shows, the shopping spending level of students in Ho Chi Minh
City is mainly less than 1 million, accounting for 74.8% of the remaining spending.
This makes it clear that students are willing to spend for online shopping at less than 1
million without much consideration compared to the remaining price.

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Chapter 5: CONCLUSION & RECOMMENDATION

5.1. Conclusion
Women always love beauty and are influenced by beauty, so images of clothes,
shoes or anything can excite girls. Men are not very picky or demand too high for
clothes, they prefer to go directly to the store to buy, because the number of women
involved in online shopping is superior to men. Young people today are the age group
with the most exposure to social networks, as well as the most exposed to technology
so customers of online shopping are often young people, especially students.
However, they do not always buy online, based on the survey, sometimes students
come to online shopping, they prefer to go directly to the store to check the quality of
the item they want to buy.

5.2. Recommendation
After this research, I have advice for online sellers if I am an online seller,
when I first start in this market, I will examine the weak market of students. Where is
the tablet now?, What's the new trend now? and ways to attract students to online
shopping websites. When we find out, from there we will have a suitable choice of
goods, making a lot of difference to attract students. Can produce products that do not
harm the environment, instead using paper bags with cute drawings. In addition, you
can combine other promotions such as buying 10 get 1 free, or invoices over
1,000,000 VND can be discounted 10% for the next bill. From there, students can
choose to buy direct instead of direct purchase pages. Also, a very important part is
the meaning of online shopping, which is online delivery. You must have a fast
delivery system, 6-hour delivery services for the most needy customers, and especially
a payment service after receiving goods. Thus, when the product error occurs due to
shipping problems, we can easily handle everything with customers from there and
more comfortable. Buying and selling online is also a service industry. If you consult
enthusiastically and understandably, customers will be sympathetic and come back
next time. Therefore, service attitude is extremely necessary.

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 Besides, it is advisable to create surveys on popular websites such as Facebook,
Instagram to understand customers' weaknesses, as well as customer needs for
products. In addition, invest more programs to run ads efficiently, high productivity to
increase the level of your interaction on social networks. People will see you more,
visit your site to search for more products.
It is possible to offer promotions such as if check-in on the page will be
discounted from 5% -10% or buy 3 get 1 free. Create promotions, prices of products
as well as earn points for loyal customers, will help them come back more. Actively
replying to messages as well as friendly advice will be an integral part of increasing
your revenue.

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