Applying exploratory factor analysis (EFA) in analyzing factors affecting the intention to choose traditional markets for buying fresh food: A case study in southern central coastal region, Vietnam
Nguyen Ha Thanh Thao, Tran Minh Dao/ MICA 2018 Proceedings
International Conference on Marketing in the Connected Age (MICA-2018), October 6th, 2018
Danang City, Vietnam
Applying Exploratory Factor Analysis (EFA) in Analyzing
Factors Affecting the Intention to Choose Traditional Markets
for Buying Fresh Food: A Case Study in Southern Central
Coastal Region, Vietnam
Nguyen Ha Thanh Thaoa*, Tran Minh Daob
aQuy Nhon University, 170 An Duong Vuong, Quy Nhon, Binh Dinh, Vietnam
bNational Economics University, 207 Giai Phong Street, Hai Ba Trung District, Hanoi, Vietnam
A B S T R A C T
Since renovation, the structure of shopping venues of Vietnamese consumers have changed rapidly. The
system of modern shopping centers such as megamall, mart also are growing rapidly. However, that does not
mean the system of traditional market will be replaced in the future.These two systems will continue to
coexist and become competitors in the development of the market economy.To improve competitiveness the
system of traditional markets contributed to the construction of civilized trade system in Vietnam. This study
is aimed at applying EFA method in analyzing some factors affecting the consumers’ intention to choose
traditional markets for buying fresh food. The data for the study were collected from consumer surveys in
three grade 1 cities representing the southern central coastal region of Vietnam, namely Da Nang City, Quy
Nhon City, Nha Trang City. Research results have shown that convenience, product quality, product selling
price, consumer buying habits, and traditional market management are factors that strongly influence the
choice that traditional markets are the place to buy fresh food in the Southern Central Coast of Vietnam.
Thereby, the author has proposed some suggestions to help suppliers to be able to attract more consumers to
buy fresh food at traditional markets.
Keywords: Intention to buy; fresh food; consumers; traditional markets; South Central Coast Region.
1. Introduction
After more than thirty years of reform, the Vietnamese economy has made great achievements in both
economic development and social change. Along with the current flow and the process of rapid integration, the
system of modern shopping places has appeared more and more rapidly in the urban areas of Vietnam. This
system has strongly influenced the psychology and behavior of Vietnamese consumers. A large proportion of
Vietnamese consumers show quick adaptation to the system. This has changed the structure of Vietnamese retail
trading system, in terms of economic composition, level of civilization and consumer’s trust. However, a large
part of consumers still choose traditional markets as the place to buy fresh food because of the distinct features
that modern shopping places do not have. This seems indispensable even for countries with modern market
economies. Traditional markets and modernization shopping venues system are coexist and became direct
* Corresponding author. E-mail address: nguyenhathanhtha[email protected]
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Nguyen Ha Thanh Thao, Tran Minh Dao/ MICA 2018 Proceedings
competitors.To promote the overall development of the market economy and improve the civilization of retail
trade,every nation must enhance competitiveness of both systems, especially the traditional market system.
What's set up going on is more and more urgent for Vietnam.
In addition to economic contribution, traditional markets also have many cultural and social values: cultural
marks, soul of Vietnam reflected in the transaction and in the market culture (Linh Anh, 2012). Consumers who
come to a local market often want to buy a traditional local product, so this is also a good channel for promoting
and selling Vietnamese goods. (Ha Anh, 2013).
In addition, the results of the review show that, previous studies conducted in Vietnam in general and in the
South Central Coast in particular have focused relatively heavily on the location of the Modern shopping such as
supermarkets, online shopping channels ... Therefore, in the view of the authors, the implementation of research
with shopping venues as traditional markets, The type of shopping product that is fresh food is essential and
ensures novelty for research.
Therefore, studying the factors influencing the intention to choose traditional market as place to buy fresh
food in the southern central coastal region is necessary to answer the question: why consumers do not quit
purchasing fresh food at traditional markets to transfer to shopping at modern trading centers?
2. Research overview
Behavior and behavioral intentions involve choosing where to shop of some domestic and international
scholar’s attention and development of different research directions. Among them, can be mentioned the
following:
The study by Masayoshi Maruyama and Le Viet Trung (2006) suggested that the choice of supermarkets for
buying fresh food of Hanoians was influenced by: personal factors, product factors, and location factors. Of
personal factors, family income plays the most important role; the higher the family income is, the more they
want to buy fresh food at supermarkets. For product factors, safe products, fresh products, quality products with
clear origin, well-known brands, product diversity are important factors in determining consumers’ intention to
by fresh food at supermarkets. The higher levels of these factors are, the more consumers want to buy fresh food
at supermarkets. The location factors show that the closer to a home a supermarket is and the more convenient it
is to buy fresh food, the more consumers come to buy fresh food.
Also, research by N.Chamhuri & P.J. Batt (2010) shows that the key factors that attract Malaysian consumers
to buy fresh food (namely, fresh meat products) at supermarkets include product factor, price factor, and location
factor. Product factors refer to fresh products, quality products, product diversity; the price factor includes low
prices. The more satisfactory these factors are, the more people choose supermarket when buying fresh food. For
location factors, the convenience and the environment of where to buy fresh food are the advantages for
supermarkets to attract consumers.
Another study in the Chinese market, which has a relatively similar culture to Vietnam - study by Zhou et al.
(2003) found that the factors influencing the decision to choose supermarket channel when buying fresh food
included product factor, and location factor. In particular, the product factors including safe food, good quality,
fresh products, good packaging positively influence the decision to choose the supermarket channel when buying
fresh food, which means that the more satisfactory these factors are, the more people choose supermarket as
fresh food channel. For the location factor refers the distance from home to the supermarket; the farther it is, the
more people choose supermarkets.
Whereas, Goldman et al. (1999) argue that although modern supermarkets “grow” a lot in Asian countries
like China, Indonesia, Japan, Singapore, Taiwan, etc., the supermarket system cannot dominate the fresh food
line to attract consumers for such reasons as in traditional markets, retailers can supply different quantities and
quality of products as required. Namely, for fish or meat products, when consumers want to buy products that are
alive, the modern system such as supermarkets or other convenience stores cannot meet the requirements.
Therefore, both traditional markets and modern ones will coexist.
In Vietnam, also analyzing the factors affecting the selection of fresh food, Chu Nguyen Mong Ngoc, Pham
Tan Nhat (2013) used supermarket channels for the purchase of products. More specifically, the aim of the
research was to understand the relationship between the factors and the decision to choose supermarket channel
of consumers in HCM city when buying fresh food. The research analysis were conducted on 120 samples; the
research results showed that the factors affecting the decision to buy fresh food at the supermarket channel
included those related to products, form of packaging, price and location, whereas the factors related to
marketing did not show clear impact on the decision to buy fresh food at the supermarket.
Based on the research overview, the variables were synthesized as follows:
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Table 1. Variables and basis for variable selection
Variables
Basis for
variable
selection
Product quality
CL1. I think the food at traditional markets are fresh, delicious (quality assurance)
CL2. The quality of fresh food in traditional markets is better than in other places
CL3. The quality of fresh food at traditional markets does not cause any health risk
CL4. The origin of fresh food in traditional markets is clear
CL5. I know that fresh food at traditional markets is not as good as in supermarkets but I still
decide to buy.
Norshamliza
Chamhuri and
Peter J. Batt
(2013)
Price
GC1. The sale price of fresh food in traditional markets is reasonable
GC2. The price of fresh food at traditional markets is cheaper than in other markets
GC3. I am willing to pay high prices when buying fresh food at traditional markets
GC4. I can bargain when buying fresh food at a traditional market
GC5. I can easily compare the prices of fresh food in traditional markets with other places
GC6. I am offered a discount for being a patron
Norshamliza
Chamhuri and
Peter J. Batt
(2013)
GC7. At the traditional market I can buy on the nod for my acquaintance with the seller
Advantages
TL1. At traditional markets, fresh food is very diverse
TL2. At traditional markets, fresh food is clearly classified
TL3. Traditional markets are open daily
Norshamliza
Chamhuri và
Peter J. Batt
(2013), Chu
Nguyen Mong
Ngoc et al
TL4. Traditional markets open very early
TL5. Traditional markets offer a variety of fresh products to choose
TL6. Traditional marketsare near home and convenient
TL7. Just call an order, the seller will bring home
(2013)
TL8. It is easy to change the items you have bought
TL9. It is convenient for parking when buying fresh food at traditional markets
TL10. Payment at the traditional market is favorable/familiar
Sellers
BH1. Sellers are funny, enthusiastic and friendly
BH2. Sellers know very well about the products
Norshamliza
Chamhuri và
Peter J. Batt
(2013), Tinnie
(2011)
BH3. Familiar sellers do not cheat about the quality of the product.
BH4. I have a good relationship with a seller at traditional market
BH5. I go to the traditional market because I have an appointment with a seller
BH6. I go to the traditional market because I like talking to sellers
BH7. Familiar sellers do not need to bargain
Habits
TQ1. I choose traditional markets because this is a beautiful local culture of the Vietnamese.
TQ2. I go to traditional markets as a habit of my family
TQ3. I have no other choice than traditional markets to buy fresh food
TQ4. I go to the traditional market because my family cooks regularly at home
TQ5. I often go to the traditional market early in the morning after doing morning exercise
TQ6. I often go to the traditional market early in the morning before going to work or school
TQ7. I often go to the traditional market on my way home from work or school
TQ8. I usually go to the traditional market to meet my friends, acquaintances to exchange and
talk
Teynamphet
(2013)
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Nguyen Ha Thanh Thao, Tran Minh Dao/ MICA 2018 Proceedings
Traditional market management
QL1. The market has full rules, regulations and promotes good effects
Nguyen Tri
Vu (2017)
QL2. The market management goes smoothly, and effectively
QL3. Stalls are well designed and well-equipped to do business
QL4. Service quality provided at the market is good
QL5. Market land use and prices are cheap
QL6. Market management board coordinates with stakeholders to well serve consumers and
traders.
Source: The author’s synthesis
3. Research methods
3.1. Data collection
Primary data was collected from consumer interviews - Fresh food buyers in traditional markets or
in supermarkets - using standardized questionnaires with a 5-point Likert scale to measure the
perception of the respondents by the level from 1 to 5 corresponding from strongly disagree to
strongly agree with the opinion given in the questionnaires.
The author conducted a survey for 990 consumers - those who buy fresh food at traditional markets
in three cities: Quy Nhon City - Binh Dinh Province, Da Nang City and Nha Trang City, Khanh Hoa
province
990 questionnaires were distributed equally to three localities:
330 questionnaires in Binh Dinh Province
330 questionnaires in Da Nang city
330 questionnaires in Nha Trang city, Khanh Hoa province
Duration of the survey: from August 2017 to the end of December 2017.
Consumers selected for survey according to the convenient sampling method are those who have
been carrying out fresh food shopping at traditional markets of Nha Trang, Da Nang and Quy Nhon.
After gathering information, the author cleaned the data; in the event that the number of samples
after cleaning was not enough to ensure the minimum number of samples, the author conducted further
interview to ensure the sample size to meet the minimum requirement for statistical analysis.
With 990 questionnaires distributed, the author collected 936 questionnaires. After inserting the
data, some survey questionnaireswere not satisfactory, the author eliminated those. Then, there
remained 906 satisfactory questionnaires. For the convenience of data processing, the author selected
900 among those questionnaires, inserted data into the exel software and performed the analysis with
the help of SPSS software 20.0.
3.2. Data analysis
The EFA method was used to analyze a number of factors affecting the intention to choose
traditional markets for fresh food in the South Central Coast region of Vietnam with the help of SPSS
software 20.0.
4. Research results
In order to perform the exploratory factor analysis (EFA), firstly the author conducted Cronbach’s alpha
testing to verify the reliability of the scales. The test results removed some of the unreliable scales; the others are
used to perform exploratory factor analysis.
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Table2. Reiability Statistics
Reliability Statistics
Product quality
Cronbach's Alpha
N of Items
5
0,836
Price
Cronbach's Alpha
0,847
N of Items
7
Advantages
Cronbach's Alpha
0,842
N of Items
10
Seller
Habits
Cronbach's Alpha
.763
N of Items
7
Cronbach's Alpha
.720
N of Items
8
Traditional market management
Cronbach's Alpha
.760
N of Items
6
Source: The analysis results are based on the survey data
Then, the author conducted the KMO and Bartlet’s tests to check whether the data set was suitable for the factor
analysis or not; the results are shown as follows:
Table 3. KMO and Bartlett’s test
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
,854
1847,044
10
Bartlett's Test of Sphericity
Approx. Chi-Square
Df
Sig.
,000
Source: The analysis results are based on the survey data
From the table above, we see KMO = 0.854; Bartlett test statistic Sig. = 0.000 <0.05. This indicates that the
observations are correlated to each other with a significance level of 99%. So the research model of the author is
appropriate.
Then, the author performed factor analysis with Eigenvalues> 1; 7 groups of factors extracted with
explanation level of 68.612%
Thereby, the matrix rotates the extracted factors as follows:
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Table 4. Roteted component matrix
Rotated Component Matrixa
Component
1
2
3
4
5
6
7
TL10
TL5
TL9
TL7
TL4
TL8
TL6
TL3
TL1
TL2
GC2
GC5
GC7
GC6
GC3
GC1
GC4
BH7
BH6
BH2
BH1
BH5
BH3
BH4
QL4
QL5
QL2
QL3
QL1
QL6
TQ8
TQ6
TQ2
TQ5
TQ1
TQ3
TQ7
TQ4
TD5
TD1
TD4
TD3
TD2
CL3
CL2
CL4
CL5
CL1
,886
,872
,869
,865
,863
,850
,848
,837
,801
,782
,854
,840
,839
,819
,799
,782
,758
,875
,846
,839
,811
,798
,793
,764
,912
,885
,881
,852
,850
,819
,876
,875
,796
,775
,736
,725
,687
,518
,856
,795
,787
,750
,695
,755
,746
,745
,737
,718
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
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Source: Analysis results of the author based on survey data
Table 3 shows that the first factor consists of 10 scales and is named as convenience factor group in which
the scale with the greatest impact score is TL10 - Payment at the traditional market is favorable/familiar - with
the impact score of 0.886; the lowest impact factor is TL2 - At traditional markets, fresh food is clearly classified
with the impact score of 0.782.
FAC1 = 0,886TL10 + 0,872TL5 + 0,869TL9 + 0,865TL7 + 0,863TL4 + 0,85TL8 + 0,848TL6 + 0,837TL3 +
0,801TL1 + 0,782TL1
The research results of the author are consistent with the reality, as compared with other modern shopping
places, queuing up and waiting to pay the food often cause negative psychology to consumers, especially in rush
hours. The convenience in payment is also highly appreciated by the survey respondents.
The second factor is made up of seven scales:
FAC2 = 0,854GC2 + 0,84GC5 + 0,839GC7 + 0,819GC6 + 0,799GC3 + 0,782GC1 + 0,758GC4
The second factor is named as the price factor group in which the scale with the greatest impact score is GC2
- The price of fresh food at traditional markets is cheaper than in other markets - with the impact score of 0.854.
The lowest impact factor is GC4 - I can bargain when buying fresh food at a traditional market – with the impact
score of 0.758. Price is always a competitive factor for suppliers to attract customers; the more competitive the
price is, the better advantages the sellers have.
The third factor is the sellers, which is made up of seven scales, namely:
FAC3 = 0,875BH7 + 0,846BH6 + 0,839BH2 + 0,811BH1 + 0,798BH5 + 0,793BH3 + 0,764 BH4
The scale with the greatest impact score is BH7 - Familiar sellers do not need to bargain with the impact
score of 0.875. The lowest impact factor is BH4 - I have a good relationship with a seller at traditional market –
with the impact score of 0.764.
The fourth factor is traditional market management with six scales in which the scale with the greatest impact
score is QL4 - Service quality provided at the market is good - with the impact score of 0.912.
FAC4 = 0,912QL4 + 0,885QL5 + 0,881QL2+ 0,852QL3 + 0,85QL1 + 0,819QL6
The service quality is always the priority and gets the attention of consumers/ customers; the service quality
will better attract customers.
The fifth factor is the consumer’s habits:
FAC5 = 0,876TQ8 + 0,75TQ6 + 0,796TQ2 + 0,775TQ5 + 0,736TQ1 + 0,725TQ3 + 0,687TQ7 + 0,518TQ4
The consumer’s habit factor includes 8 scales in which the scale that has greatest impact score is TQ8 - I
usually go to the traditional market to meet my friends, acquaintances to exchange and talk- with the impact
score of 0.876. The lowest impact score is TQ4 - I go to the traditional market because my family cooks
regularly at home- with the impact score of 0.518.
The sixth factor is the product quality:
FAC6 = 0,755CL3 + 0,746CL2 + 0,745CL4 + 0,737CL5 + 0,718CL1
This factor includes 5 scales in which the scale that has greatest impact score is CL3 -The quality of fresh
food at traditional markets does not cause any health risk - with the impact score of 0.755. The health of family
and relatives is always the biggest concern of consumers; therefore, the product’s quality assurance to avoid
health risks for consumers is considered as the greatest influence of this variable. It is also consistent with the
increasing demand of consumers in terms of product quality beside product design.
In the scope of this study, the author does not focus on analyzing consumer behavior variable (TD).
Results of statistical analysis using data from the survey showed that the factors with the influence of different sizes in
the view of the object to be examined are consumers buy fresh food at traditional markets in the South Central Coast.
Research’s results have shown with different groups of factors that influence the level of the scale according to the
consumer are different corresponding to that is expressed through the impact point is different.
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Based on the analysis of the study, the authors make recommendations that contribute to further enhancing the level of
" coverage " of traditional markets with consumers through recommendations in turn relating to each group of factors
from price , convenience, product’s quality, traditional market management, ...
5. Recommendations
First, further improve the quality of products in order to ensure the origin and freshness of products, meeting
the increasing demand of consumers.
Second, ensure that the product prices are competitive in comparison with other suppliers of the same
product. Also, there should be a price list to avoid fraud that affects the prestige of the traditional markets.
Third, rearrange stalls to make it attractive and convenient for consumers when choosing to purchase goods
at a traditional market; ensure that consumers can easily find the products they need.
Fourth, it is necessary to further enhance the responsibility of sellers with their products to consumers; the
sellers themselves must really understand the products to be able to introduce to consumers.
And finally, ensure security in the market area, creating the feeling of safety and trust for consumers when
shopping.
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